shifting from a taxicab mentality to an … · 8/11/2016 1 by mary e. vandenack, founding and...

8/11/2016

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By Mary E. Vandenack, Founding and Managing Member Vandenack Williams LLC

vanwil.com [email protected]

SHIFTING FROM A TAXICAB MENTALITY TO AN UBER STRATEGY


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How do I know the attorney I am hiring has the skillset I need?

Will I be able to communicate with this attorney?

Is there a reason you can’t tell me how the process will happen and how long it will take?

What do you mean you can’t tell me how much it will cost?


Attorney information and consumer satisfaction ratings are readily available

The process is made clear

Timing of the process is explained before the engagement is final

Pricing methodology is clear


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BIG DATA ISN’T ONLY FOR BIG FIRMS SMALL FIRMS CAN USE BIG DATA TO GAIN A COMPETITIVE ADVANTAGE


What is Big Data?Generally, Big Data is used to refer to the significant volume of unstructured data that is available to law firms

More technology results in more

The Four V’s of Big Data


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The Value of Big DataBetter decision‐making can be made based on well‐organized data

Even small law firms struggle to share data throughout the law firm

Creating a Strategy to organize and use data creates the “uber” advantage

Look at more data as more opportunity rather than more work


Predictive AnalysisLink together cases of like kind topredict possible outcomes andprofitability

Possible Uses of Big Data for Law Firms


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PricingUse data to develop price strategyHow many times have you handleda certain type of case?What were the outcomes?What was the cost to the client?What were the internal costs andthus profitability to the law firm?



Capturing ContactsReview Documents and Emails to ensure that you have captured contacts into your database and contacts



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E‐discovery

Helping you find what is important



Case Reviews

Determine how certain judges have typically ruled



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Examine Opposing Counsel’s History

Support for decision‐making regarding a settlement offer

Determining whether a contract clause is standard for contract type/industry

Capturing client reactions to communications, bills, services



Accumulating unique drafting

Accumulating provisions you like from other lawyer’s documents

Identifying that which can be automated

Is anyone in your office still manually

entering data that can be imported?


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Big Data Strategy

Have a clear strategy

The data is endless (and mining can be expensive) so selectively choose a use of data that comports with your strategic plan and goals


Implement a Knowledge Management Strategy

Take Advantage of Big Data Opportunities


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KNOWLEDGEMANAGEMENT STRATEGYKNOWLEDGEMANAGEMENT STRATEGY

‐ as distinguished from knowledgemanagement itself ‐ is becoming one ofthe most valuable and strategic resourcesfor law firms

‐ is an approach to knowledge management that aligns knowledge management with business goals.


KNOWLEDGEMANAGEMENT STRATEGYKNOWLEDGEMANAGEMENT STRATEGYDevelop appropriate for your firm size

and practice type

is the most strategically important resource

ARTICULATE THE LINK BETWEEN KNOWLEDGE AND STRATEGY

KnowledgeLearning

Is the most important capability


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ARTICULATE THE LINK

KnowledgeStrategy



Capturing Processes

Developing new ways to support capture, storage, retrieval, and distribution of an organization’s knowledge

Capture knowledge that exists within peoples’ heads


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BE CLEAR ABOUT BUSINESS STRATEGY

Law is a business!



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Underserved, overcharged markets

New legal services

Millennials

Aging Baby Boomers


Alternative legal providers

Legalzoom

Artificial Intelligence


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What particular skills does your firm have to take advantage of

opportunities?

What skills are needed to overcome threats?


How can you strategically position your firm?

How can you take advantage of internal resources?


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Design a knowledgemanagement strategy that

supports your business strategy.


ExampleYoudecidethatyouareparticularlysituatedtoprovidestart‐upservices

toentrepreneurs


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Yourknowledgemanagementstrategymightinclude:


Create a habit of SAVING:

information on resources for capital

information about start‐ups in different industries

valuation information for different industries


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Create a habit of SAVING:

regulatory issues encountered by particular industry types

available federal and state tax credits related to available federal and state tax credits related to capital expenditures or hiring employees


Make it easy

A small firm may not have a librarian so the small firm has to have all lawyers and staff engaged in the process of knowledge management.


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Make it easyo Create a section in your document management system that

is just for your firm library. Divide the section into major categories and subcategories. Structure the system in a way that avoids duplication of efforts.

o Develop a memo that explains the system

o Train attorneys and staff

o Designate a knowledge management police person.


TURN YOUR WEBSITE INTO A CLIENT TOOL

Many law firm websites are simply a repository for attorney profiles and services of the law firm.


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Turn your website into a tool that clients engage with.

Differentconsumerswantdifferenttypesofinformation.


www.yourfirm.com

SECURE CLIENT PORTAL

BLOG AND CONNECT

INTAKE FORMS

CLIENTS UPLOAD

DOCUMENTS


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USE ALTERNATIVE FEES AND MAKE THEM PROFITABLE


Types of Alternative Fees Flat/Fixed Fee

A specific amount is quoted for an identified

service

Percentage Fee Based on a percentage of an amount involved in the project


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Types of Alternative Fees Fee Range

A fee range is provided that includes a

minimum and maximum

Fee caps Hourly rates are charged up to an agreed maximum


Types of Alternative Fees Availability Retainer

This is typically a set amount (often paid monthly)

for which the attorney agrees to be available to

handle certain types of issues

Pure Contingency FeeLaw firm receives a fixed or scaled percentage of a recovery in a lawsuit


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Types of Alternative Fees Partial Contingency/Success Fee Firm receives a base amount of fees that is

not subject to contingency and the balance

of the fee is dependent on success

Risk Collars Hourly billing arrangement is used but bonus is paid to law firm for being under budget


HOW TO MAKE ALTERNATIVE FEES PROFITABLE

Understand Client Perception of Value

Connect Client Perception of Value to Fees Charged

Know Your Business. Know your Competitive Advantage

Have a Strategic Plan

Take Steps to Increase Your Value

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Develop tools that break down the processes for your services

Use your billing system to capture data

Engage In Knowledge Management

Know Your True Cost Relative to Each type of Legal Service you provide

Look for Opportunities to Automate


Break Out & Value Each Aspect of Legal Project

Develop Niche Practice Areas

Automate Commodity Services (or don’t do them)

Price Less Cost = Profit

Improve Realization Rate

Reduce Cost per unit of service

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CONSIDER ONLINE DELIVERY OF LEGAL SERVICES

LEGALZOOM

USLEGAL

CORPNET

BIZFILINGS

ROCKETLAWYER

MYCORPORATION

LAWDEPOT


GET IN THE GAME

Have a clearly defined laid out process for the particular service to be delivered online

You must have automated forms


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When adding an online presence, distinguish yourself by a touch of personal service that your clients

can’t get from legalzoom

Make the personal phone call


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BE A LEGAL DISRUPTER


What are the assumptions that drive the way we practice?

How can we disrupt them?


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Constantly consider what is next

Refuse to be complacent


Be uniquely successful

INNOVATE

INNOVATE

INNOVATE


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Seek unconventional solutions assuming limited resources

Consider significant transformations


SUSTAINABLE LAW FIRMS*Strategic Planning

*Innovation*Workplace Structure*Diversity in Many Ways*Knowledge Management

*Value Identification*Technology

*Leadership Comfortable with Innovation
