Partner Care

In an ever-increasing competitive environment, it becomes more and more difficult for law firms to distinguish themselves from their competitors. A quick scan of some of the better-known firm Web sites shows that many firms often look and sound alike. However, it is the quality and caliber of the attorneys that set the firms apart. Saying you're distinctive is much easier than proving it to the marketplace, your partners and staff. One area in which your firm can build distinction and establish itself as a leader is Partner Care.

The ability of a firm to attract and retain the best and brightest attorneys has been a proven path to growth, distinction and success. Partner Care is a combination of programs and technology that help to attract, retain and mentor partners. The number and variety of programs that are currently available for firms to offer their partners is great, and too many options can be as bad as too few. However, by examining your partners' professional and personal practice needs, Partner Care can be tailored to meet these demands successfully.

In addition, real financial benefits can be achieved from operating on a larger scale. For example, firms can help their partners secure life and property insurance more efficiently by harnessing the collective buying power of the partner group. Moreover, strategies can be implemented to make each partner's life a little easier, such as arranging for a partner's tax return preparation or providing assistance in gaining a club membership. A partner who feels his firm is looking out for him and striving to make his life easier is content and free to focus upon the work at hand. Partner Care is a win-win situation for all.

The Use of Technology in Partner Care

Most firms typically have a combination of programs already in place to look after their partners, but often fail to apply the use of technology to allow partners to access and understand the specific details of the various programs. An even smaller number of firms provide partners with their own individualized information in a highly accessible and technology friendly format. Firms can demonstrate a higher level of care than their competitors by simply making information that is already available more accessible to partners. This higher level of care will help create and demonstrate the firm's commitment to its partners and can contribute to the firm's desire to drive towards distinction.

Firms on the leading edge are already moving down this path, making individualized distribution, tax, financial and protective information available on a partner's desktop 24/7. Some firms are building the capability to extract data and information back from their partners. A smaller number of firms are moving beyond data distribution and gathering, and are providing partners with information to help them plan cash flow, health care, taxes and retirement. Imagine the peace of mind it would give a partner, and the hours he or she could turn into productive client time, by having individual tax, benefits, insurance and financial data available on a secure intranet site.

Currently, in most firms, partner information is typically distributed without the use of high-end technology. Distribution data, tax elections, K-1s and retirement information is manually distributed using paper. This makes the storage and retrieval of data time-consuming. What little time partners do have to pay attention to their personal financial affairs is often spent simply trying to keep track of the data and information, as opposed to really understanding the programs and benefits the firm offers and, more importantly, the planning of their financial future.

Moreover, the finance and human resource functions of a firm typically spend a large number of hours handling the collation, distribution and retrieval of data from partners. Due to the sensitive nature of partner data, distribution procedures are more secure and therefore often more complicated than for the distribution of general firm information. This effort is enormous and the cost associated with the manual operations and procedures is an area that many firms overlook when trying to identify potential efficiencies that can reduce costs.

Partner Intranets

All of this data, however, can be made available electronically. It is unclear why many firms have not yet harnessed the use of technology in this area to rid themselves of many of the manual processes that lead to cumbersome procedures, unproductive hours and unrecovered costs. For example, take the task of gathering composite tax elections from partners. Many firms still produce and send out paper elections to partners and then spend hours chasing down those elections. Simply keeping track of which partners have elected to participate in a composite return can often turn into a huge paper chase. By rethinking the current processes and applying technology, firms can eliminate the high cost associated with such necessary tasks and at the same time provide a much higher level of Partner Care.

Understanding and accessing what technology is available in the marketplace and that which is currently in place within the firm should be the starting point for developing a partner intranet platform. Basically, the partner intranet platform is a secure intranet site that can start with a single page and be expanded as additional information and data are connected with or deposited. Most often the firm will already have an existing intranet site in use for partners and staff, with security safeguards and protocols in place. These two elements are the essential building blocks from which most firms can move to utilize a greater level of technology in implementing a higher level of Partner Care.

Firms generally look to use their own infrastructure and technology resources to develop and maintain the partner intranet platform. While outsourcing is an option, many firms typically do not feel comfortable sharing their partner information outside the firm and, accordingly, utilize their own resources in building and maintaining their partner intranet platform.

In order to make the partner intranet platform as useful as possible, it is important for it to have the capability to not only send data out to the partners, but to also pull data back in from the partners. Building this pull capacity is critical to realizing many of the potential cost savings that a partner intranet platform can generate.

Document Identification

Once the platform is in place, identification of documents and data that are readily available in electronic form is the next step. Distribution and expense reimbursement data are typically available. Documentation on firm policies and practice, as well as retirement plan documents, are usually readily available and already on the firm intranet. Many firms produce statements explaining partner income and reconciling income to cash distributions. This data can be easily posted.

Other documentation can also be converted to an electronic format and posted on the partner intranet platform. For example, tax data ' such as Federal and State K-1s and tax-advisory letters ' can be converted and posted for current as well as prior years. In addition to these items, firms can create documents of their own to summarize many of the financial protection programs that are in place for their partners. Health care, disability and other insurance coverage can be summarized and posted. This is also a convenient place to show the partner his or her beneficiary choices under insurance coverage and their 401K and retirement savings plans. Building the technology to allow the partner to change his beneficiary directly from the partner intranet platform is another example of information pull, as well as an invaluable opportunity to ease a partner's life and also reduce paperwork. This ability, however, is more difficult to build. Usually the beneficiary information must be communicated to a third party outside the law firm. Getting the technology to link to the third-party provider takes time and effort, but offers a higher level of convenience to the partner group.

Retirement

It can also be difficult to make third-party data available to partners. For example, most firms utilize third-party administrators to manage 401k and other retirement funds. Getting data downloaded from these providers and uploading it to the partner intranet platform requires extra attention to security and data management. A firm needs to work closely with its third-party providers in making this work, and there is always a question about how often the data should be updated. The benefit to the partners, however, is huge as they are often hard pressed to understand the various retirement funds and benefits the firm offers and the manner in which they participate.

Once third-party retirement data is in place, a firm can display the data in a balance sheet format showing a partner his or her various assets, including capital accounts in the firm, offset by any capital loan data. The ability to track changes and display the data in alternative fashions, such as pie charts, can further aid a partner in understanding his or her financial picture as it relates to the firm.

The ability to help partners, however, only starts with data distribution and information gathering. Once a partner intranet platform is in place and populated with a sufficient amount of data, a firm should consider providing tools that would allow a partner to get a better handle on personal financial planning in areas such as cash flow or retirement. To reach this higher level of Partner Care, a firm should examine what information it needs from the partners to make its operations run smoother and more efficiently, and what information and programs the partners would like to see available on the intranet to make the use of their time more productive. This can be achieved through the use of short surveys tailored for partners and the different departments within the firm.

Partners can be given access to spreadsheets for a variety of tasks such as cash-flow planning. Here they can enter their individual data, or the spreadsheets can be pre-populated with the partner's individualized data. This tool would allow a partner to enter additional personal data, such as personal expenses, to round out the complete cash flow picture.

CLE

In many jurisdictions, meeting and keeping track of bar renewals and continuing legal education requirements can become a burdensome task for all involved. Many law firms use e-mails to notify partners of upcoming events where CLE credits can be earned. Often paper certificates are distributed to attorneys as proof of attendance. Documents such as these, the annual bar CLE requirements, and schedules of upcoming events can be built into a CLE section of the intranet platform, enabling partners to see their deficiencies and even book classes and self-study courses online. Information can also be pulled by back-office staff to ensure that credit requirements are met.

It is possible to develop similar tools to help a partner plan for his or her retirement. Again using a spreadsheet where a partner can enter information or using pre-populated partner data, a partner can get a handle on the financial consequences of retirement. Moreover, having this data in a flexible format allows for “what-if” planning.

The partner intranet platform can also be utilized to provide partners with short summaries on various financial topics. For example, the firm could provide partners with an explanation of the firm's distribution policies or an explanation of how the various retirement plans work together.

The next generation of partner intranet platforms will allow partners to use the technology as a repository for their own personal data. For example, a partner could store electronic copies of estate planning documents and insurance policies. This would help facilitate planning and provide a higher level of comfort to a partner that his or her personal affairs are well in order.

Despite all of these possibilities for a partner intranet platform, there is no doubt that a portion of a firm's partner population will not utilize the platform. It is not surprising however, with increasing numbers of technology savvy partners rising up through the ranks, the demand for more and better integration of electronically available information will continue to grow. Moreover, as a firm utilizes a platform to provide more routine data to their partner group, usage will increase.

Implementation

So how do you get started? Going through an initial assessment and analysis of available data makes the most sense. Consider the use of surveys to determine what information and systems the partners would like to see on their intranet, and what data collection mechanisms can be incorporated to satisfy back office needs. Next, develop a timeline that considers cost, resources and data coordination aligned with firm management to manage expectations. Most firms look to develop Partner Care and partner intranet platform in bite-size pieces over a reasonable period of two to three years. Your path may vary, but moving in this direction can help place your firm in front of the pack and on the road to distinction.

In an ever-increasing competitive environment, it becomes more and more difficult for law firms to distinguish themselves from their competitors. A quick scan of some of the better-known firm Web sites shows that many firms often look and sound alike. However, it is the quality and caliber of the attorneys that set the firms apart. Saying you're distinctive is much easier than proving it to the marketplace, your partners and staff. One area in which your firm can build distinction and establish itself as a leader is Partner Care.

The ability of a firm to attract and retain the best and brightest attorneys has been a proven path to growth, distinction and success. Partner Care is a combination of programs and technology that help to attract, retain and mentor partners. The number and variety of programs that are currently available for firms to offer their partners is great, and too many options can be as bad as too few. However, by examining your partners' professional and personal practice needs, Partner Care can be tailored to meet these demands successfully.

In addition, real financial benefits can be achieved from operating on a larger scale. For example, firms can help their partners secure life and property insurance more efficiently by harnessing the collective buying power of the partner group. Moreover, strategies can be implemented to make each partner's life a little easier, such as arranging for a partner's tax return preparation or providing assistance in gaining a club membership. A partner who feels his firm is looking out for him and striving to make his life easier is content and free to focus upon the work at hand. Partner Care is a win-win situation for all.

The Use of Technology in Partner Care

Most firms typically have a combination of programs already in place to look after their partners, but often fail to apply the use of technology to allow partners to access and understand the specific details of the various programs. An even smaller number of firms provide partners with their own individualized information in a highly accessible and technology friendly format. Firms can demonstrate a higher level of care than their competitors by simply making information that is already available more accessible to partners. This higher level of care will help create and demonstrate the firm's commitment to its partners and can contribute to the firm's desire to drive towards distinction.

Firms on the leading edge are already moving down this path, making individualized distribution, tax, financial and protective information available on a partner's desktop 24/7. Some firms are building the capability to extract data and information back from their partners. A smaller number of firms are moving beyond data distribution and gathering, and are providing partners with information to help them plan cash flow, health care, taxes and retirement. Imagine the peace of mind it would give a partner, and the hours he or she could turn into productive client time, by having individual tax, benefits, insurance and financial data available on a secure intranet site.

Currently, in most firms, partner information is typically distributed without the use of high-end technology. Distribution data, tax elections, K-1s and retirement information is manually distributed using paper. This makes the storage and retrieval of data time-consuming. What little time partners do have to pay attention to their personal financial affairs is often spent simply trying to keep track of the data and information, as opposed to really understanding the programs and benefits the firm offers and, more importantly, the planning of their financial future.

Moreover, the finance and human resource functions of a firm typically spend a large number of hours handling the collation, distribution and retrieval of data from partners. Due to the sensitive nature of partner data, distribution procedures are more secure and therefore often more complicated than for the distribution of general firm information. This effort is enormous and the cost associated with the manual operations and procedures is an area that many firms overlook when trying to identify potential efficiencies that can reduce costs.

Partner Intranets

All of this data, however, can be made available electronically. It is unclear why many firms have not yet harnessed the use of technology in this area to rid themselves of many of the manual processes that lead to cumbersome procedures, unproductive hours and unrecovered costs. For example, take the task of gathering composite tax elections from partners. Many firms still produce and send out paper elections to partners and then spend hours chasing down those elections. Simply keeping track of which partners have elected to participate in a composite return can often turn into a huge paper chase. By rethinking the current processes and applying technology, firms can eliminate the high cost associated with such necessary tasks and at the same time provide a much higher level of Partner Care.

Understanding and accessing what technology is available in the marketplace and that which is currently in place within the firm should be the starting point for developing a partner intranet platform. Basically, the partner intranet platform is a secure intranet site that can start with a single page and be expanded as additional information and data are connected with or deposited. Most often the firm will already have an existing intranet site in use for partners and staff, with security safeguards and protocols in place. These two elements are the essential building blocks from which most firms can move to utilize a greater level of technology in implementing a higher level of Partner Care.

Firms generally look to use their own infrastructure and technology resources to develop and maintain the partner intranet platform. While outsourcing is an option, many firms typically do not feel comfortable sharing their partner information outside the firm and, accordingly, utilize their own resources in building and maintaining their partner intranet platform.

In order to make the partner intranet platform as useful as possible, it is important for it to have the capability to not only send data out to the partners, but to also pull data back in from the partners. Building this pull capacity is critical to realizing many of the potential cost savings that a partner intranet platform can generate.

Document Identification

Once the platform is in place, identification of documents and data that are readily available in electronic form is the next step. Distribution and expense reimbursement data are typically available. Documentation on firm policies and practice, as well as retirement plan documents, are usually readily available and already on the firm intranet. Many firms produce statements explaining partner income and reconciling income to cash distributions. This data can be easily posted.

Other documentation can also be converted to an electronic format and posted on the partner intranet platform. For example, tax data ' such as Federal and State K-1s and tax-advisory letters ' can be converted and posted for current as well as prior years. In addition to these items, firms can create documents of their own to summarize many of the financial protection programs that are in place for their partners. Health care, disability and other insurance coverage can be summarized and posted. This is also a convenient place to show the partner his or her beneficiary choices under insurance coverage and their 401K and retirement savings plans. Building the technology to allow the partner to change his beneficiary directly from the partner intranet platform is another example of information pull, as well as an invaluable opportunity to ease a partner's life and also reduce paperwork. This ability, however, is more difficult to build. Usually the beneficiary information must be communicated to a third party outside the law firm. Getting the technology to link to the third-party provider takes time and effort, but offers a higher level of convenience to the partner group.

Retirement

It can also be difficult to make third-party data available to partners. For example, most firms utilize third-party administrators to manage 401k and other retirement funds. Getting data downloaded from these providers and uploading it to the partner intranet platform requires extra attention to security and data management. A firm needs to work closely with its third-party providers in making this work, and there is always a question about how often the data should be updated. The benefit to the partners, however, is huge as they are often hard pressed to understand the various retirement funds and benefits the firm offers and the manner in which they participate.

Once third-party retirement data is in place, a firm can display the data in a balance sheet format showing a partner his or her various assets, including capital accounts in the firm, offset by any capital loan data. The ability to track changes and display the data in alternative fashions, such as pie charts, can further aid a partner in understanding his or her financial picture as it relates to the firm.

The ability to help partners, however, only starts with data distribution and information gathering. Once a partner intranet platform is in place and populated with a sufficient amount of data, a firm should consider providing tools that would allow a partner to get a better handle on personal financial planning in areas such as cash flow or retirement. To reach this higher level of Partner Care, a firm should examine what information it needs from the partners to make its operations run smoother and more efficiently, and what information and programs the partners would like to see available on the intranet to make the use of their time more productive. This can be achieved through the use of short surveys tailored for partners and the different departments within the firm.

Partners can be given access to spreadsheets for a variety of tasks such as cash-flow planning. Here they can enter their individual data, or the spreadsheets can be pre-populated with the partner's individualized data. This tool would allow a partner to enter additional personal data, such as personal expenses, to round out the complete cash flow picture.

CLE

In many jurisdictions, meeting and keeping track of bar renewals and continuing legal education requirements can become a burdensome task for all involved. Many law firms use e-mails to notify partners of upcoming events where CLE credits can be earned. Often paper certificates are distributed to attorneys as proof of attendance. Documents such as these, the annual bar CLE requirements, and schedules of upcoming events can be built into a CLE section of the intranet platform, enabling partners to see their deficiencies and even book classes and self-study courses online. Information can also be pulled by back-office staff to ensure that credit requirements are met.

It is possible to develop similar tools to help a partner plan for his or her retirement. Again using a spreadsheet where a partner can enter information or using pre-populated partner data, a partner can get a handle on the financial consequences of retirement. Moreover, having this data in a flexible format allows for “what-if” planning.

The partner intranet platform can also be utilized to provide partners with short summaries on various financial topics. For example, the firm could provide partners with an explanation of the firm's distribution policies or an explanation of how the various retirement plans work together.

The next generation of partner intranet platforms will allow partners to use the technology as a repository for their own personal data. For example, a partner could store electronic copies of estate planning documents and insurance policies. This would help facilitate planning and provide a higher level of comfort to a partner that his or her personal affairs are well in order.

Despite all of these possibilities for a partner intranet platform, there is no doubt that a portion of a firm's partner population will not utilize the platform. It is not surprising however, with increasing numbers of technology savvy partners rising up through the ranks, the demand for more and better integration of electronically available information will continue to grow. Moreover, as a firm utilizes a platform to provide more routine data to their partner group, usage will increase.

Implementation

So how do you get started? Going through an initial assessment and analysis of available data makes the most sense. Consider the use of surveys to determine what information and systems the partners would like to see on their intranet, and what data collection mechanisms can be incorporated to satisfy back office needs. Next, develop a timeline that considers cost, resources and data coordination aligned with firm management to manage expectations. Most firms look to develop Partner Care and partner intranet platform in bite-size pieces over a reasonable period of two to three years. Your path may vary, but moving in this direction can help place your firm in front of the pack and on the road to distinction.