A budget is an estimation of revenue and expenditures for a specific period of time.

By thoughtfully creating a budget ahead of the coming fiscal year, you can better align anticipated revenue and expenses with your law firm’s goals. Successful budgeting involves critically thinking about your financial expectations so that strategies can be implemented to promote greater profitability and prevent financial pitfalls.

Budgets also provide a measuring stick for periodic review throughout the coming year to determine whether desired milestones are being met and adjust as needed. With a comprehensive budget, you can be proactive in addressing your firm’s financial issues before they become serious problems. This will provide a bird’s eye view of financial performance on a monthly, quarterly, or yearly basis which will help facilitate adequate forecasting.

Therefore, law firms need a budget to help with managing, mitigating, and minimizing financial risk.

These nine tips will help you build a solid budget for your law firm as you wind down this year and prepare for 2022:

1. Remember Key Terms

2. Set Goals First

Setting goals is the first step in budgeting. Goals act as the benchmarks of every budget and dictate the allocation of firm capital. In an environment centered around putting out one fire after another, goals allow you to set your focus on something positive.

First, brainstorm all the goals you’d like the firm to achieve within a particular time frame. Classify them according to the following categories:

Make sure these goals are specific, measurable, and realistic to current circumstances. Keep these goals in mind as you create your law firm budget. Look for opportunities to further them, in addition to identifying potential pitfalls that may derail your progress. Also, don't forget to review your firm’s goals throughout the year, just as you would review the budget. This will help keep you focused and moving in the desired direction.

3. Identify Investment Opportunities

To grow, law firms must invest in areas like technology, people, marketing, and other revenue-building tools. Think about what your firm will need in the coming year to attract new prospects and continue providing high-level service to existing clients. Once you have identified those expenditures, include them in your budget.

4. Get Realistic With Your Revenue

Remember those realistic goals that we spoke about in tip #2? Well, the same concept applies to your revenue expectations.

Let’s start with what you should classify as revenue. First, there’s the revenue your firm will incur through daily operations before any deduction of related expenses. Then, there’s the revenue that remains after all expenses are deducted. This is your firm’s net income, otherwise known as profit or the bottom line.

Just like goal setting, start by thinking about an end result and what your firm will need to do in order to achieve it. For instance, how many clients will you need to service over the next three months to bring in the desired level of revenue?

One more point about revenue:  be sure to consider its seasonality, as different practice areas may incur more or less work at different times of the year. With that awareness, you can account for these business patterns and budget accordingly, so that necessary funds are still available during the less profitable months.

5. Make Profit the Benchmark

Keep your eyes on the prize - and the prize is always the profit margin. The profit margin is the main benchmark that indicates the wellness of your firm’s financial position. It measures the effectiveness of your firm’s income and expenses. It also points you in the direction of the most successful revenue streams and the most problematic expenses.

6. Calculate Costs and Spending

Every budget includes costs and spending - there’s no way around the fixed and variable costs of doing business. The goal is to tackle them in a way that makes the best possible use of revenue.

Fixed costs are expenses that remain somewhat consistent over time. These may include internet, telephone service, and software licenses.

Variable costs change depending on use and other factors. They may include travel costs, insurance premiums, marketing strategies, and continuing education fees. Incidental one-time expenses also fall under the variable costs. These are unexpected expenses that pop up from time to time, like equipment repairs or the cost of revamping your law firm website.

Both fixed and variable expenses should be factored into your 2022 budget.

7. Expect the Unexpected

If the past two years have taught us anything, it is to expect the unexpected. That’s why it’s necessary to budget up to 10% over the estimated figures for expenses and revenues. This will help ensure that your firm is adequately prepared for any unpredictable event that may occur during the coming year.

8. Consider Legal Budgeting Trends for 2022

The uncertainty of the times has resulted in some budgeting trends that reflect a legal environment still recovering from a pandemic. These include:

9. Take Charge of Readily Available Resources

In this digital era where information is just one click away, you’re never alone when it comes to accessing knowledge and expertise in areas that benefit your law firm. Numerous budgeting tools are readily available and specifically customized for the legal profession. Access these tools for assistance with the budgeting process or reach out to an accounting professional for help with creating a solid budget that will put your law firm in the best possible financial position for 2022.

What is legal operations?

Legal operations is everything that it takes to run a law firm aside from the actual practice of law. It encompasses strategic planning, legal project management, financial oversight, and legal industry expertise.

The goal of legal operations is to improve law firm performance. Legal operations experts cover a broad range of fields, including data analytics and reporting, engineering, finance, and marketing. Operations professionals work with law firm management to choose the right legal technology, identify and manage risks, and monitor compliance. And above all else, their goal is to deliver value, whether that’s through keeping costs down or increasing productivity and efficiency.[/vc_column_text][/vc_column][/vc_row][vc_row type="in_container" full_screen_row_position="middle" column_margin="default" scene_position="center" text_color="dark" text_align="left" overlay_strength="0.3" shape_divider_position="bottom" bg_image_animation="none"][vc_column column_padding="no-extra-padding" column_padding_position="all" background_color_opacity="1" background_hover_color_opacity="1" column_link_target="_self" column_shadow="none" column_border_radius="none" width="1/1" tablet_width_inherit="default" tablet_text_alignment="default" phone_text_alignment="default" overlay_strength="0.3" column_border_width="none" column_border_style="solid" bg_image_animation="none"][vc_column_text]The seemingly sage advice to “run your law firm like a business” misses the mark. Law firms are businesses. They exchange services (and sometimes goods if they’ve productized their services) for money. They also meet the standard definition of a “business,” which is an organization engaged in commercial or professional activities.

So why have so many law firms resisted the idea of acting like the businesses they are?

Some lawyers claim it’s because the law is a noble profession. But, it’s more likely that law school doesn’t teach them how to run a business. Many aren’t well-versed in financial principles. They don’t value measurements and metrics.

For too long, lawyers have focused on practice, not process. But in recent years, clients have forced law firms to take a hard look at the numbers, their productivity, and their operational efficiency. With competition at an all-time high and clients demanding better service at a lower cost, it’s essential for law firms to rethink their business model.

Enter legal operations.

How has legal operations evolved over the years?

In the late 1980s to early 1990s, legal operations was a fledgling concept among in-house counsel, with corporate legal departments primarily focused on managing outside counsel.

Over time, that focus shifted. By the mid-2000s, corporate law departments were starting to look to legal operations for strategic insights into their outside counsel spend and risk profile.

In the last 20 years, the role of legal operations has become much more prominent, helping organizations manage complex legal issues and retaining the services of legal service providers to drive efficiency and lower costs. These issues continue to be focal points today, along with one more: establishing a culture of continuous improvement.

Today’s clients continue to place pressure on law firms to deliver competitive pricing and better service. In response, firms are striving to maximize their resources so they can do more with less. Now, law firms have adopted much of this mindset, looking for ways to reduce costs, automate processes, and drive greater efficiencies.

What are the key functions of a legal operations role or team?

The Corporate Legal Operations Consortium (CLOC) has identified 12 key legal operations functions. Though CLOC envisioned these practices would be implemented by in-house legal teams, most apply to legal operations roles in law firms today.

Here is a list of the typical functions:

  1. Business intelligence: Using data to make better decisions, including using data analytics to identify opportunities to optimize firm processes and workflows and to focus the practice on understanding clients’ needs.
  2. Financial management: Developing budgets and forecasts to improve predictability and encourage the responsible usage of resources.
  3. Vendor management: Choosing and onboarding the right service providers, negotiating fair pricing models, and performing due diligence on prospective vendors.
  4. Information governance: Creating policies for sharing and retaining information, managing data security, and ensuring compliance.
  5. Knowledge management: Giving lawyers and staff access to accurate, up-to-date information for matters and firm business as well as capturing the knowledge of team members.
  6. Organization optimization and health: Creating a firm culture based on clear values, building a pipeline of leadership talent, and strengthening teams by creating a hiring strategy designed to recruit a mix of skills and perspectives.
  7. Practice operations: Assigning work strategically so everyone is using their skills and working at the top of their capabilities.
  8. Program/project management: Enabling the firm to lead firmwide initiatives, such as setting new policies or directing projects and programs, and managing change without distracting from the firm’s core work.
  9. Service delivery models: Creating a sourcing model that matches the right work to the right resource.
  10. Strategic planning: Prioritizing projects that align with market trends, client needs, and competitive forces.
  11. Technology: Transforming manual or repetitive processes with automation, finding new ways to solve problems, and integrating tools to improve client work and firm oversight.
  12. Training and development: Equipping employees for success with effective onboarding and engaging employees with continuing development opportunities.

All of these functions may be combined within a department, or they may be carried out separately under the oversight of a legal operations manager.

What challenges do legal ops professionals face? How can these be solved?

The biggest challenge that legal operations professionals face is change management. The law is a system based on precedent and law firms are no exception. Lawyers are generally change-averse and prefer to maintain the status quo. It’s hard to convince lawyers that they need to do something differently, especially if what they’ve always done seems to still be working.

Other challenges include budgeting and resource allocation. Law firm leaders are often reluctant to add budget items or headcount to new initiatives, especially if they’re still skeptical about the value that a legal operations team can provide.

Tackling these challenges will require you to establish a business case for a legal operations role or team. If you can quantify the payoff in terms of time saved (automating manual processes with technology), dollars saved (optimizing vendor pricing), and client satisfaction (knowledge sharing and more efficient staffing), you’ll be more likely to convince firm leaders that legal operations is worth the investment.

Recruiting a strong leader with a finance background, technological acumen, and legal experience, whether as a practicing attorney or as a leader in another firm, can lend the department credibility. And, of course, getting quick wins on small projects early can prove value and increase the likelihood of buy-in on more ambitious projects.

How does legal operations increase efficiency?

Legal operations helps law firms drive efficiency across the board.

Between timekeeping, billing, and accounting, law firms have a lot to manage financially. That’s not even including client demands for lower rates and alternative fee arrangements! Legal operations can help firms build financial models that help choose optimal fee arrangements that please clients while yielding a profit. They can also compare firm vendors and help structure competitively priced deals.

In other words, legal operations helps law firms create more value.

On the operational front, legal operations rescues overworked staff from a variety of tasks, including contract management, knowledge management, and data governance. Legal operations professionals can help firms choose the right solutions to capture and track information to ensure nothing falls through the cracks, empowering lawyers and other staff to do more with less.

Law firms are known for being reactive. But, legal operations allows firms to adopt a more proactive approach. For example, legal operations can use data analytics and reporting to predict the right course, set reasonable goals and metrics, and develop a long-term strategic plan to improve the firm’s market position.

Can legal operations software be used to improve performance?

Law firms often invest in solutions serially, looking to solve one problem at a time, but with legal operations software, the key is to find a comprehensive solution that can evolve along with your law firm.

Effective legal operations software for law firms should handle solutions such as e-billing, timekeeping, accounting, matter management, document management, reporting, and client portals. The more interconnected these systems are, the more intelligence they deliver, and the better your firm’s results will be. It’s even better if the legal operations platform integrates with other systems, allowing firms even greater insight into matters and projects while enabling seamless client service.

Comprehensive legal operations software solutions help law firms save time, reduce costs, and improve client service. Some of the ways that law firms can use legal operations software to enhance their performance include the following:

Strong law firms can use the efficiencies generated by legal operations software to differentiate themselves in a crowded market. With the right legal operations tools in place, firms can improve their client service and deliver greater value.[/vc_column_text][/vc_column][/vc_row]

Wellness is not an adjective often used to describe the legal community. Studies show that mental, emotional, and physical health issues have become more common among legal professionals as they struggle to deal with the demands of their chosen careers.

In 2019, The ABA and Hazelden Betty Ford Foundation conducted a national study on attorney substance abuse disorders. The project, which included 15,000 attorneys from 19 states, highlighted some shocking statistics among licensed, employed attorneys:

In comparison to other professions, lawyers are reportedly three times more likely to suffer from depression, according to the American Psychological Association. Additionally, the legal industry has the 11th-highest incidence of suicide among professions.

Why is Wellness a Problem Among Legal Professionals?

Legal professionals typically deal with numerous demands on any given day. The myriad of cases, clients, deadlines, and expectations seemingly never end.

When working in a stressful law firm environment, some attorneys feel they need to sacrifice their own self-care in order to succeed in their professions.  This decision can have detrimental effects on legal professionals, potentially leading to mental health challenges and substance abuse.

The entire legal industry is notorious for unhealthy work habits. It’s no secret that attorneys commonly clock 70-to-80-hour work weeks and these practices may extend to operations and support professionals like legal secretaries and paralegals. Working this many hours leaves little room for personal time, family, physical activity, or even sleeping. It also contributes to a pattern of poor eating choices and elevated stress levels.

Studies show that the stress of working too many hours raises cortisone levels within the body, increasing the risk of stroke, diabetes, and cancer. According to a study done by The University College London, the risk of heart disease increases by 67% for people who work long hours compared to people who work a standard eight-hour day.

Another report, published in the American Journal of Epidemiology, suggests that long work hours can lead to long-term brain damage or dementia. Researchers found that middle-aged workers who clock more than 55 hours a week develop diminished mental skills at a higher rate. These deficiencies show up as short-term memory loss and the reduced ability to recall words when compared to those working a standard 40-hour week.

The ABA has started to recognize how problematic the lack of attention to individual wellness has become. In 2017, the ABA House of Delegates approved Resolution 106 which amended the ABA Model Rule for Continuing Legal Education (CLE) to include at least one hour of mental health and substance abuse credit every three years. Several states have followed suit with mandatory mental health or substance abuse CLE courses.

Achieving Wellness Within the Legal Community

Wellness is not a one-size-fits-all concept because different people need different strategies to help them feel healthy and at their best. Wellness includes an improved work-life balance, better stress management, and a positive mindset that prioritizes self-care. Unfortunately, many law firm environments make it difficult for legal professionals to achieve a level of wellness. Demands for billable hours coupled with demands from numerous clients can make a work-life balance impossible.

The Individual Approach

For the individual, the path to wellness is a very personal journey. You may have to practice different strategies before finding a routine that builds positive habits within your life. There is no magic pill or secret recipe. Wellness requires a holistic approach that touches various aspects of your life to craft a more sustainable and healthy work-life balance. This may include some of the following elements:

The Law Firm Approach

Many law firms fail to classify employee well-being as integral to the firm’s existence, but the legal industry has a responsibility to promote wellness among its members and employees. Lack of transparency about wellness promotes the stigma that exists around attorney mental health. Firms are uniquely situated to address these issues by making wellness an aspect of their overall firm culture.

Wellness policies have become a common expectation among job seekers, so firms can better situate themselves competitively to attract new talent with these policies in place. They also promote a more enjoyable workplace, which can improve the firm culture.

Law firms need policies in place that include some of the following provisions:

10 Quick Strategies to Promote Wellness

In this digital age, technology has become essential to the delivery of legal services. Law firms use tech tools for a variety of reasons, including matter management, calendaring, client communications, and billing. While this reliance on technology has helped law firms improve client relations and the provision of services, it has also made the legal industry a common target for cybercriminals looking to steal valuable client data.

This increased risk has become all too apparent over the past few years, as several well-known law firms have been forced to deal with the disruptions of a cyberattack. The methods used by these criminals are becoming increasingly complex, which means that the frequency of law firm hacks will likely increase.

For this reason, law firm leaders and administrators must implement cybersecurity measures to fight this persistent threat. It is an ongoing battle that requires a consistent response.

Ransomware

Ransomware is often the weapon of choice for cybercriminals targeting law firms. With this type of hack, a third party takes control of a firm’s files by encrypting them and denying any access to firm members, unless a requested amount of ransom is paid.

A ransomware attack can leave an entire firm without the ability to work, which immediately decreases revenue. Additionally, the firm may face consequential damages, including:

Phishing

Another common type of cyberattack against law firms involves an email phishing scam, where hackers pose as firm clients or third parties to trick employees into disclosing sensitive data or transferring funds to fraudulent organizations. Attorneys are particularly susceptible to email fraud attempts due to the personal relationships that may have with their clients. A spot-on impersonation may lower a target’s defenses, leading to significant losses.

In one infamous New York case, a law firm was successfully sued for malpractice by a client after hackers impersonated one of the firm’s attorneys to secure a fraudulent $2 million wire transfer. The attackers were able to gain access to the attorney’s AOL email account and analyze previous interactions with the client to successfully carry out the impersonation.

As you likely gleaned from the above, the financial and professional consequences of both ransomware attacks and phishing scams can be detrimental to a law firm, so it is critical to take the necessary steps at your own firm to prevent such an occurrence.

Preventing a Law Firm Cyberattack

Preparation is the only adequate protection against a cyberattack. This starts with understanding the threat and the role that technology plays in reducing it. Attorneys have a duty to not only comprehend the practice law, but also the technology necessary to protect attorney-client privilege and sensitive client data. Most states specifically include this in their rules of ethics because the reluctance of attorneys to introduce technology tools into their law firms increases the chance for a breach.

By refusing to implement tech security measures, attorneys may be found in breach of their professional duty. In addition to ethical consequences, firms also face regulatory enforcement actions from the Federal Trade Commission when client data is not sufficiently protected.

However, there are steps that you can take to strengthen your firm’s protection against security hacks:

Educate Firm Members

Cybercriminals capitalize on limited knowledge and bad habits. Law firms that ignore best practices and utilize weak security systems are essentially opening the door for attackers to access valuable data.

One of the most effective steps a law firm can take is consistently educating and training employees. Human error accounts for a significant number of cyberattacks on businesses. Training sessions should occur on a regular basis to educate employees about their role in preventing breaches. Regular reminders should also be a part of the training plan to ensure that these important duties remain top of mind.

When armed with the right tools, educated employees provide law firms with a strong first line of defense. By acting in a responsible manner, they help close gaps of vulnerability and provide your firm with greater protection.

Perform an Audit

A detailed audit identifies weaknesses before a breach can occur. The first step of an audit should include an inventory assessment to help your firm understand where you stand with respect to technology products utilized.

Technology consists of both hardware and software, as well as data. Hardware includes the maintenance of all computers, servers, laptops, and printers within the firm. Smart devices should also be included with hardware because they are often the vehicle through which attorney-client privilege is breached.

Taking inventory of software products involves a review of all licenses, keys, and passwords. Firms also need to make sure that all software is updated on a regular basis with the most recent versions. Outdated software is more likely to lack sufficient protection against continuously evolving cyberattack techniques.

Data inventory requires the consistent monitoring of what data is stored and how it is maintained. Law firms should consider designating a data administrator who regularly audits the firm’s data for ethical and regulatory compliance.

The second layer of the audit involves answering numerous questions about the firm’s security, such as:

Answering these questions will give law firm leaders and administrators a clear view of where the firm stands with its technology and where it still needs to go.

The services of a security expert can be useful during an audit to ensure that firm networks adequately store firm data. If employing an expert is not an option, a security consultant can also be contracted to assist with the audit.

Establish a Security Plan and Budget

The bottom line: law firms need to craft a security plan and implement it. Basic tools, such as spam filters, anti-spyware, antivirus programs, and network security protocols should be implemented. But your responsibility does not end there.

Many law firms often neglect their first point of contact with the outside world, which is the firm website. When cyber attackers see an outdated website, they may target the law firm under the assumption that their inadequate security measures extend to the entire firm.

Document management is another important component of an effective cybersecurity plan. Law firms maintain countless documents and files that must be handled and stored correctly. A secure document management system prioritizes the protection of files while they are in storage, as well as during transmission. A comprehensive practice management system and email encryption are two tools that law firms can use for successful document management.

A reliable backup system must also be a part of a law firm’s security plan. Cyberattacks can interrupt business in an irreversible way. A backup system helps you get back to work quicker, even in the wake of a disruptive ransomware attack.

Some law firms hire a security consultant that specializes in cybersecurity. Others contract an outside security expert to guide auditing, consulting, and implementation. Firms should include this necessary expense in their annual budgets. Firm leaders and administrators may also consider the cost of purchasing a cyber liability insurance policy for the firm.

Vendors should also be included in law firm security plans. Firms use third-party vendors for a variety of services and products, but they often take for granted that these providers are employing adequate security practices. Firms should review the security certificates of every vendor to ensure that their security protocols are up to par. Law firm vendors need an understanding of the unique importance of protecting law firm data. Their commitment to the protection of client data should match, or exceed, that of the law firm.

Law Firms Must Take Steps to Minimize Cyber Threats

When law firm leaders fail to plan, implement, and enforce strict cybersecurity protocols, they are potentially exposing the firm to costly and damaging attacks. Though it will take some time and money to get adequate plans in place, when done correctly, it is one of the best investments a firm can make to deter fraudsters and keep client data secure.

DALLAS, TEXAS – November 5, 2021 – NetDocuments, the leading cloud content management platform where legal professionals do work, today announced the winners of their Inspire 2021 Partner Awards.

NetDocuments’ second annual Partner Awards recognize leading companies spanning the ISV network, implementation providers, international partner companies in Asia Pacific, EMEA, and Latin America, as well as partners across all NetDocuments business segments.

This year, the winner of the Inspire 2021 Partner of the Year Award was presented to Centerbase, a legal time & billing, accounting, and practice management platform. Centerbase is recognized for its relentless effort and understanding of the NetDocuments capabilities. Over the course of the partnership, Centerbase has been able to develop a superior integration with NetDocuments, supported by active and driven marketing of the integration, and has ultimately provided advertising of interactive updates and technical support to the thousands of NetDocuments customers. It is for these reasons that Centerbase was selected to be the recipient of this year’s award.

Rob Joyner, VP of Sales and Marketing at Centerbase, was virtually present to accept this prestigious award, “On behalf of the team at Centerbase, thank you to our friends at NetDocuments. Over the past five years, it has been an amazing partnership, we have been able to accomplish so much in the way of helping mid-size law firms. We are excited to continue the partnership and do great things in the future.”

Inspire 2021 is a virtual global conference designed for NetDocuments customers and partners. Tailored product and educational sessions; customer and partner case studies and innovation; and subject matter expertise are on display to showcase intentional innovation – innovation you can depend on and that’s inspired by legal teams around the world.

“The NetDocuments partner ecosystem has always been an integral part of our annual educational conference, and this holds true for Inspire 2021,” said Reza Parsia, VP, Strategic Partnerships, NetDocuments. “Our partners are constantly pushing the envelope to innovate and help our customers get the most out of their NetDocuments platform experience. Our second annual Partner Awards rewards this drive for “intentional innovation” and honors the ‘Partner of the Year’ across eight categories.”

The 2021 Inspired Award Winners, including all Partners of the Year, can be found online at www.netdocuments.com/inspire.

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About Centerbase
Centerbase is a cloud-based legal operations system that empowers midsize law firms to run their practice with confidence. It’s a highly scalable and configurable system that liberates legal teams from manual work by automating routine tasks and connecting them in a single collaborative workspace. Boasting a comprehensive feature set of billing, accounting, and practice management tools plus the ability to offer full-history data migrations, Centerbase has become the go-to solution for midsize law firms. For more visit centerbase.com.

About NetDocuments
Founded in 1999, with more than 3,400+ enterprise customers worldwide, NetDocuments is the legal industry’s most trusted cloud-based content services and productivity platform. Complete with state-of-the-art built-in security, compliance, and governance solutions, NetDocuments offers document management, email management, and collaboration technology complete with disaster recovery, enterprise search, and matter-centricity features. For more information about NetDocuments, please click here.

The landscape of law firm recruitment is changing dramatically. Whether seeking to attract new attorneys out of law school, entice lateral hires, or retain current members, law firms are taking unprecedented steps away from tradition in hopes of engaging and keeping top legal talent.

The Candidate Perspective

Over the past year, many law firms have sought to entice new firm employees with signing bonuses, but these financial incentives proved to be only one piece of evaluation criteria for candidates.

When considering a move to a new firm or the merits of staying put, candidates are basing their decisions on much more than the firm paying the biggest bonus.

Conventional considerations like compensation, promotion potential, and bonuses remain part of the equation, along with some new metrics of comparison:

Reputation

The social and financial challenges brought on by the pandemic created an environment where candidates are increasingly evaluating potential employers based on their reputations. They classify socially responsible firms as those that took steps to protect their employees during shutdowns. They may have cut partner compensation to maintain associate salaries or provided vast support for remote work.

Candidates view these actions as real-world examples of a law firm’s values and they factor them in when making employment decisions. They want more than a large paycheck. They want to work for law firms that align with their own values and beliefs.

Firm Culture

Law firm candidates have also become more cognizant of the culture that a firm offers. With the added stress of the last couple of years, candidates want an environment that makes them feel valued for more than their billable hours. They seek opportunities with firms that promote a healthy work-life balance and prioritize the mental health of firm members.

Today’s candidates do their homework, researching “Best Places to Work” lists and searching social media for insight into a firm’s culture. Working within a positive environment has become top-of-mind among law firm prospects. They have a new appreciation for the things they find most important and they are willing to hold out until they find them.

Flexibility

It took a global pandemic, but the legal industry has finally accepted the value of remote working arrangements, and even with the return of some sense of normalcy, many candidates are simply unwilling to return to a traditional office setting with traditional office hours.

According to an American Bar Association (ABA) survey, the vast majority of attorneys report feeling this way, with no desire for pre-pandemic office arrangements.

Of those lawyers surveyed, 36% stated their preference for the ability to set their in-office schedule from week to week. With this greater demand for remote work, candidates prefer law firms equipped with the technology to offer these options.

How Law Firms are Responding

Law firm leaders and administrators are taking note of these candidate expectations and are making adjustments to their recruitment and retention efforts. A look at trends in the general legal landscape reveals increased usage of the following strategies:

Flexible Work Arrangements

Even the most traditional of law firms have recognized how critical flexibility has become in attracting quality candidates. That does not mean that 100% remote options need to be made available for every candidate. Instead, firms can craft various hybrid options to meet this need, which might look like two days of remote work and three days in the office each week. It may also mean that some attorneys work mornings in the office and remotely every afternoon.

The traditional 9-to-5 has quickly become an unpopular option. Legal professionals have gotten accustomed to spending more time with their families and having more control over their work-life balance. By offering at least some level of flexibility, law firms better leverage initiatives to recruit and retain talent.

Flexibility offers an additional value. Remote working arrangements can substantially widen the candidate net for new hires. Geographic limitations are lessened so that firms can seek talent from broader markets with lower salary averages.

Diversity Initiatives

Corporations are not the only entities ramping up diversity efforts. Law firm leaders are also recognizing the value of these initiatives. Internally, it creates a more enjoyable workplace where attorneys from various races, genders, abilities, and sexual orientations feel valued. Externally, a significant percentage of candidates consider the diversity of a firm when making employment decisions.

The customary practice of solely recruiting from top law schools ignores a vast market for incredible and diverse talent. Along those same lines, it may not benefit firms to only seek lateral hires from the biggest law firms. Substantial talent can be found at legal practices of all sizes and law firms are beginning to recognize that fact.

Redefining Ideal Candidate Profiles

Law firms use Ideal Candidate Profiles (ICPs) to identify qualities, characteristics, and achievements they desire in a potential hire. These tools have been used for years, but recent changes within the legal recruitment realm have brought about a need for adjustments.

Law firm recruiters are taking a serious look at their current ICPs and making changes to meet this new normal. Consider criteria such as technical skills or a proven track record of success working virtually.

Make Mental Health a Priority

Stress, overwork, and burnout have long been associated with the legal community. While some industry conversations have taken place over the years about the dangers of these working habits, discussions about employee mental health really began to take center stage during the early days of the pandemic.

In response, many law firms have implemented programs aimed at preventing burnout and promoting mental wellness. Tools like regular check-ins, free access to mental health resources, and greater flexibility are being used to demonstrate a commitment to the emotional, wellness, and development needs of firm personnel. Recruiters should highlight these initiatives to attract potential candidates, and firms can leverage them to keep their top talent happy within the firm.

The Takeaway

In order to remain competitive in today’s legal recruiting environment, firms need to step outside of the traditional sign-on bonus and instead look at other benefits of interest.

By offering flexible work arrangements, improving diversity initiatives, reevaluating ICPs, and prioritizing mental health, you put your organization in the best possible position to attract and retain top talent.

Centerbase, a legal practice management software company that provides mid-sized law firms with a cloud-based platform to streamline operations, is pleased to welcome Bob Freeburg as Chief Technology Officer.

The hire follows Centerbase’s recent growth equity investment from Mainsail Partners and underpins the company’s commitment to aggressive growth and strategic expansion. Following a banner year in 2020 and ongoing momentum year-to-date, Centerbase has continued to invest heavily in its core product and its people while exploring feature and practice area specific integrations.

Those investments and enhancements are what attracted Freeburg to Centerbase. “It’s an exciting time to be joining the legal technology industry,” says Bob. “I look forward to learning more about the customers that trust Centerbase to run their firms, learn from them how we can do better, and continue moving the current Centerbase product features to the next level to serve our clients more efficiently.”

A performance-driven leader with over 25 years of innovative technology experience, Freeburg comes to Centerbase from Curantis Solutions, where he started as Chief Technology Officer in March 2017 before being promoted to Chief Operating Officer/EVP of Technology earlier this year.

At Curantis, a cloud-based hospice and palliative care management platform, Freeburg was responsible for technology, product delivery, operations, and account management functions. Bob was involved with filing four patent applications for newly developed technology. In the role, he implemented key processes gaining significant experience working with sensitive information in a cloud environment.

Similar to the legal industry Bob will be serving at Centerbase, he worked with clients at Curantis to deliver a modern cloud platform solution. “Although this can be challenging, (it) presents an opportunity to help clients achieve operational efficiency when this transformation is done right,” says Bob.

Prior to Curantis, Freeburg spent the majority of his career at Parago, a rewards-based incentives company. He served as a key member of Parago’s (Blackhawk Engagement Solutions) executive leadership team and was instrumental in growing the business from a startup to acquisition by Blackhawk Network in October 2014.

As Chief Operating Officer and Group Vice President for Technology at Blackhawk Engagement Solutions, Bob managed a technology and operational scope encompassing four incentive companies acquired by Blackhawk Network.

Parago was included on the Dallas Business Journal’s “Best Places to Work” list in 2009, in addition to the “Fastest Growing Businesses” list in 2010.

In 2010, Bob was also named a CIO 100 award winner for his achievements in delivering innovative technology solutions while improving client satisfaction.

Freeburg graduated from Baylor University with a B.A. in Computer Science, working in consulting and technology delivery roles at Arthur Andersen LLP, Excel Communications Inc., and Teleglobe Communications prior to joining Parago’s executive leadership team in 2000.

It has been a challenging couple of years for the legal industry, requiring law firms to make unprecedented administrative shifts.

For many firms, business interruptions resulted in financial challenges that left leaders hesitant to invest in additional technologies. Far too many uncertainties remain and leaders recognize a need to be cautious with spending decisions.

Even with this reluctance, you can leverage legal technologies to your advantage by taking a critical look at your current usage and assessing what will be needed in the foreseeable future.

Every firm, regardless of size, can maximize its current technologies, but it takes strategy and analysis to make that happen. With evaluation, training, identification, and planning, you can get the most out of your current systems.

Evaluation

The first step for maximizing your current law firm technology is an evaluation of existing systems and how they are benefitting your firm.

Many firms implement technologies with a “set-it-and-forget-it” mentality without an ongoing evaluation of utilization, but important questions need to be asked on a regular basis, such as:

Technologies like legal practice management and legal billing software offer users a variety of features related to various aspects of law firm management. They also routinely introduce new features as innovations develop. One legal practice management software may include more than 20 features relating to everything from timekeeping to document management. With so many options, it's quite possible that many law firms only use a portion of what these platforms have to offer.

You should review each of your current technologies and their individual features. That information should then be compared with your firm’s needs to ensure that each technology is being utilized to its fullest potential. Upon doing so, administrators may ultimately find no use for additional technologies.

Another boundary to maximizing current legal technologies is a lack of usage among law firm personnel. There can be any number of reasons behind these discrepancies, including a lack of proper training, discomfort with new technologies, or an unwillingness to change traditional processes. Whatever the cause, firms can maximize current technologies by identifying usage obstacles and addressing them.

A technology analysis may reveal that some platforms are no longer vital to a law firm’s success. For instance, a recently implemented software may offer a feature that law firms once relied upon another platform to provide, making the older software no longer necessary.

Analysis may also reveal that a firm is still paying for technology acquired years ago even though it is no longer being utilized by firm members. This may occur because payments are automated or the firm administrator may routinely approve payment with no knowledge that staff members have stopped using the system.

Under both of these circumstances, firms may be able to find substantial financial savings by leveraging the most useful software and ending subscriptions for unnecessary platforms.

Training

Inadequate training creates another impediment to maximizing legal technologies. Employees cannot effectively use technologies if they do not understand how to navigate them. Law firms need systems to evaluate the employee skill base for each of its technologies. When deficiencies are identified, a training strategy should be implemented that addresses the need in a way that empowers employees to leverage technologies.

One of the first determinations that a firm administrator should make is from what source the training will commence. That includes who will conduct the training, the time commitment, and how much money will be allocated. The most cost-effective and timely resources for employee training are often found with the technology provider, where employee training programs may be included within the subscription packages. This is a useful resource for training staff members on a specific technology platform.

Training takes time and, especially in a law firm setting, time is a precious commodity. Administrators need to determine how much time will be set aside for necessary training, as well as how it will be managed among employees. Firms must be cognizant of their members’ already-full plates and develop a training schedule that does not overwhelm employees. Details such as training techniques and rollout methods should also be considered under the training umbrella.

The final consideration for the training piece is the cost of the training. Firms must recognize this expenditure as a necessary expense for maximizing current technologies. It is an investment in the firm’s growth that pays off with greater efficiency and increased productivity.

Identification

Part of assessing current technologies is identifying trouble spots that may be getting in the way of full maximization. The problem may lie in employee training, but the following impediments may also be at play:

Firm administrators should acknowledge these concerns and find ways to address them. Messaging is key when dealing with this type of pushback. Leaders need to understand the benefits of legal technology and how it can better position the firm for financial success.

Planning for Future Needs

After completing a detailed assessment of current technologies, you will have a more accurate view of your firm’s needs moving forward. You may determine that weaknesses identified during the analysis are best handled through new technologies, or law firm forecasting may demonstrate a future need that will require a different tech specialty.

Armed with the information gathered from evaluation, training, and identification, you can thoughtfully plan and make decisions about moving forward while also maximizing the firm’s current technical resources.

As some semblance of normalcy returns to a legal industry forever changed, many law firm leaders are making long-term plans for their physical office spaces. In addition to traditional considerations about cost and location, safety considerations and potential business disruptions have been added to their long list of concerns.

At the height of pandemic shutdowns, virtual work became a widespread necessity, leaving thousands of expensive law offices empty. Many firm leaders began to question the value and role of the physical office space, choosing to either move to a 100% virtual business model, downsize considerably, or reconfigure the utilization of their spaces.

Law firms nationwide are redefining the traditional law office and here are some trends evolving out of these changes:

Moving to Virtual

In a virtual law firm setting, attorneys and staff perform all client and administrative services within a cloud-computing virtual environment. Tech tools, such as legal practice management software and conferencing platforms, allow firms to operate from any location without the need for a physical office.

While the virtual office has been a reality for many solo attorneys for more than a decade, more small and medium-sized firms are now moving in this direction for a variety of reasons:

Even with so many benefits, virtual office arrangements raise serious concerns about ethical compliance, client confidentiality, and the supervision of law firm staff members. In making this change, law firms must maximize their use of technology to effectively meet these demands.

Reducing the Financial Footprint

The explosive growth of virtual work arrangements has sparked conversations about the necessity of physical office spaces. Within an industry where large office buildings and prestigious addresses equate to status, law firm leaders began questioning whether a reduction in their real estate footprint could offset financial challenges brought on by the pandemic.

Even some of the nation’s largest law firms have considerably downsized their office space, doing away with expansive libraries, large corner offices, and expensive downtown views. These previous law firm norms are being replaced with standard-sized offices for all firm members regardless of seniority and the reduction of common spaces. Trendy collaboration areas and floating workspaces that entered the law firm environment in recent decades are becoming a thing of the past.

Hoteling is another office space management option garnering attention among law firms. Under these arrangements, instead of having assigned offices and workspaces, firm members schedule their use of shared workspaces such as desks, cubicles, and offices ahead of time. This technique essentially takes the finer points of residential hotels and applies them to an office setting for the benefits of a flexible workplace.

Some of the advantages associated with hoteling include:

While these tactics may result in some level of financial savings, serious questions have been raised about the long-term effects of downsizing efforts on the culture and cohesion of a legal practice. Particularly within a large firm, collaboration plays a major role in meeting client expectations, so firm administrators must weigh the potential loss of camaraderie that may result from these office decisions.

Promoting Flexibility

Flexibility has evolved from being an added bonus to an absolute necessity. As law firms redefine the physical law office, they do so with an eye towards the future and the potential for another business interruption in the months or years ahead. The pandemic has made it painfully clear that law firms need systems that allow for quick pivoting to meet unexpected circumstances.

Firms are accomplishing this goal in a number of ways, each requiring its own level of elasticity. A one-size-fits-all model does not exist because every firm has its own dynamics. Employee satisfaction, specific practice area needs, client expectations, technology, and policies all play a role in how firm leaders and administrators incorporate flexibility into their office planning.

Risk assessment is a standard aspect of practicing law, but that term has taken on a whole new meaning as a vital component of office decision-making. Leaders must assess potential hazards within the office and implement strategies to address them. That includes adding safety measures, such as more frequent cleanings and space dividers, to the office environment.

This also means evaluating the needs of individual firm members, especially those who are more vulnerable to illness due to age or underlying conditions. Within a flexible work environment, firms may allow these members to continue virtual work or implement other social distancing policies within the physical office.

Flexibility at your law firm should also include the ability to quickly pivot in the event of another shutdown or some other interrupting occurrence. This includes ensuring that the right technology is in place to support virtual law firm operations and that your employees are adequately trained in what steps to take should another interruption occur.

The Takeaway

Law office flexibility will require some experimentation as leaders struggle to adapt to evolving needs. Data analysis regarding space usage and employee feedback should be an ongoing part of the process.

Now, more than ever, it is important to be adaptable in all aspects of your business, including financially and operationally. The right legal technology tools can support virtual and hybrid work while ensuring both productivity and client confidentiality.

A successful attorney-client relationship begins with the client intake process. Not only does it formally introduce the client to the firm’s procedures and requirements, but it also helps firms identify potential issues that could cause delays during representation.

A lot of firms operate with unsystematic onboarding procedures that vary from one client to the next, and these bad habits can thwart successful client relationships.

Improving the client onboarding process requires both efficiency and simplicity.

With the right tools and the following tips, law firms can create a client onboarding experience that is quicker and hassle-free.

Pre-Screening Process

With a pre-screening process, law firms evaluate potential matters to identify any issues before the onboarding process even begins, saving valuable time and resources.

This can be accomplished in a number of ways, including:

Standardized Data Collection System

Organization is key to simplifying the onboarding process, so you need a standardized system that repeats the same general procedures for each client’s onboarding experience.

This may involve such tools as:

Remote Capabilities

While some clients may prefer to meet in person, others do not have the time or ability to come into the office for an intake meeting. Remote onboarding capabilities provide clients with the convenience and accessibility that they appreciate, demonstrating a commitment to client service and respect for your clients’ time.

You benefit from remote onboarding capabilities by starting the client relationship on a positive and efficient note. For example, when coming into the office for an intake meeting, a client may forget to bring important information that is needed for their case. However, when meeting remotely, they can participate from a location where they have access to all relevant documents and records, effectively avoiding potential delays in the initiation of representation.

Calendaring

No attorney wants to start their representation of a client by missing the first court appearance, but that is exactly what can happen as a result of inadequacies in the client intake process.

That is why calendaring should be a regular part of your onboarding process. When clients come in with court dates or deadlines already in place, those should be immediately added to the firm calendar to ensure that they are not missed while all onboarding forms are reviewed.

Tracking New Clients

Law firms need a practice management system that allows them to store all onboarding and client information in a centralized location that helps keep track of both new and existing clients.

These platforms help ensure that nothing falls through the cracks between onboarding and initiation of work. Consider the following:

Efficient client intake begins and ends with the systems and tools that law firms implement. The right legal practice management software can prove instrumental to handling this important start to legal representation, thereby enhancing clients’ experience at your firm.