ACCOUNTABILITY, METRICS & CHANGE

Transcription

1 LI ACCOUNTABILITY, METRICS & CHANGE Legal administration in the perpetual new normal BY ARI KAPLAN 40

2 When my son was 2 ½, he started asking about going to Walt Disney World. With a new baby sister at home, we promised that when she turned four, we would take them both to the Magic Kingdom. Every few months, he would ask about the trip, and I reminded him that when his sister turns four, we would be off to Florida. After about six months, he responded: It is taking her a really long time to turn four! Despite his frustration, he continued to ask and in doing so, he held us accountable. And, of course, almost to the day of his sister s fourth birthday, we were on a flight to Orlando. In an era of heightened accountability where law firms are struggling with resource constraints, elevated client expectations and calls for greater efficiency, their leaders are looking to legal administrators to help navigate this new environment. In reality, though, it is only new briefly before changing again requiring a modern-day chameleon, rather than a traditional manager, at the helm. Welcome to the perpetual new normal. Those who lead successfully focus on creating a culture of accountability, value momentum over perfection and measure meaningful milestones. MAINTAIN MOMENTUM Amanda Davis, CLM, the Firm Administrator for 16-attorney Fields, Howell, Athans & McLaughlin in Atlanta and President of the city s ALA chapter tracks her time with Excel. It serves as a reference point, she said. It helps her evaluate her progress on various initiatives, as well as gauge her level of efficiency given the diversity of issues that disrupt her daily routine. This process stemmed from an inquiry from one of the partners at the firm who wanted to know how often she was interrupted during the day. Now she is able to let any of them know what specifically occupies her time. The ultimate job is to get the work done whether billing, installing new technology or an office move, Davis said. My role is always changing and expanding; we are always evolving. In an effort to maintain momentum, she speaks with the partners weekly and attends monthly partner meetings. She notes that whether the issues are credit line renewals, medical insurance plans or new space options for expansion, We are accountable to one another; always checking in and making sure we are moving forward. LEGAL MANAGEMENT SEPTEMBER

3 Paula Barnes, ALA President-Elect and Office Administrator, Burr & Forman The role of the legal administrator has evolved to become much more leadership, talent and strategy-focused. We are recognized as professionals who think strategically and impact the bottom line; we have earned our seat at the table. USE METRICS TO TELL A STORY That sense of a shared mission resonates throughout the legal community. Kevin Richardson, CLM is responsible for the worldwide billing function at 2,400-plus-lawyer Jones Day. The Director of Billing, Collections and Client Services based in Cleveland, who has a master s degree in law firm management from George Washington University, focused his capstone research on alternative fee arrangements and their impact on a global law firm. The demands that clients are making on us is forcing us to focus inward to bring more efficiency and effectiveness in our billing and collection function, he said. Clients are more sophisticated and concerned with how they are controlling their legal spend. As a result, It is important to be responsive and accountable. That said, The accountability factor hasn t changed that much, it is just a challenge to manage the different components of the job itself, particularly in this era of constantly redefining roles. Richardson notes that in addition to redefinition, there are always new metrics to consider. His team focuses on the average number of days unbilled and the average number of days uncollected, among others. We use metrics to help us tell a story, he said. I need to be looking down to specific metrics and looking to specific team members. Ultimately, however, his progress is measured by how effective his team is with the firm s billing and collections. Less tangible is how to measure buy-in, he notes. We have hundreds of partners at Jones Day and we need their buy-in and support to the idea of change itself, he said, noting that your effectiveness in engaging others to proceed in a new direction is critical. HARNESS HOLISTIC REVIEWS Even subtle changes in direction could have a material impact. While Fields Howell conducts annual reviews of its practicing and non-practicing staff, Davis is hoping to implement a more holistic review process in the near future by sharing her evaluation of the work as well. I think it will turn into a self-review annually, she said. Lisa Sterritt has already initiated that practice. The Office Administrator for 165-attorney Schwabe, Williamson & Wyatt s Seattle office has been conducting a 360-degree review on her performance since she arrived at the firm two years ago. As part of the process, she asks all 60 employees in her office for comments via Survey Monkey and incorporates them into her annual performance review. It gives them a chance to provide sincere feedback and ensures accountability. I don t think anything is done well in a vacuum or a silo, she said. When you are a nonbilling person in a billable world, you are working hard to justify your existence every day. Describing her clients as everyone within the firm, Sterritt said, I need to make sure that I am doing everything I can to keep our billable people billable. To ensure this operational efficiency, she attends all practice group meetings to identify any administrative challenges or to offer suggestions for support. In this environment, if you are not constantly pushing yourself and demonstrating your value, it will show up pretty quickly. She engages the managing shareholder for the Seattle office daily and with the chief operating officer in Portland on a weekly basis. I feel fortunate because it is open and honest communication that is very candid. ACTIVELY ADAPT That nature of that communication is changing rapidly alongside the job description. Scott Dressler has been the Office Administrator for 22-attorney Ezra Brutzkus Gubner LLP since In the last five years, things have evolved significantly, particularly because of the downturn, he said. My role has changed, there are less support staff, more hands-on responsibilities and expectations are higher, he said. I have been in this position for two-and-a-half years and it changes every day, echoes Richardson. 42

4 Kevin Richardson, Director of Billing, Collections and Client Services, Jones Day The demands that clients are making on us is forcing us to focus inward to bring more efficiency and effectiveness in our billing and collection function. Clients are more sophisticated and concerned with how they are controlling their legal spend. The role of the legal administrator has evolved to become much more leadership, talent and strategy-focused, said Paula Barnes, ALA President-Elect and Nashville Office Administrator for nearly-300-lawyer Burr & Forman. We are recognized as professionals who think strategically and impact the bottom line; we have earned our seat at the table. From a technology standpoint, the firm Ezra Brutzkus implemented a paperless process in May of 2012 to eliminate redundancies, moving to an electronic profiling procedure using the firms document management system. In addition to going paperless, Ezra Brutzkus began using MyPaperLessHR, a software program that includes payroll and benefit management, but also electronically converts HR files. The firm is adapting, Dressler said. In addition to working closely with the firm s managing partner on daily operations, he distributes a year-in-review memo that sets forth goals, including those related to technology, space, and hiring, to reflect and plan. We set goals for the firm and try to meet them throughout the year, but you have to flexible with what is going on, he said. LEGAL MANAGEMENT SEPTEMBER

5 Lisa Sterritt, Office Administrator, Schwabe, Williamson & Wyatt In this environment, if you are not constantly pushing yourself and demonstrating your value, it will show up pretty quickly. The responses in a social era are immediate, and if you don t change, you will sit and watch the world pass you by. We all need to reinvent ourselves constantly so if we don t become agents of change, we will not move our firms forward and will just become irrelevant. That flexibility is the result of a more expansive set of responsibilities. Dressler notes that technology, particularly social media and broad search capabilities, has changed the administrator s role. It is now an on-demand position since people expect you to have answers immediately. BECOME AN AGENT OF CHANGE That level of responsiveness reflects a broader shift in the way firms operate. When Sterritt began working as a law firm administrator almost 20 years ago, she recalls that lawyers saw non-billable staff as a necessary evil; we were order takers. In the last years, however, she highlights that law firms have started to embrace the reality that they need to run a business that attracts and retains the best talent. The firms are starting to run themselves like their clients do, she said. As part of this process, firm leaders are inviting administrators to contribute to the strategic vision and participate in critical conversations. They are routinely listening to the business people that they have hired to run their firms. That listening is critical, advises Sterritt, because legal professionals receive constant feedback. The responses in a social era are immediate, and if you don t change, you will sit and watch the world pass you by, she said. We all need to reinvent ourselves constantly so if we don t become agents of change, we will not move our firms forward and will just become irrelevant. Barnes notes that that law firms must now run more like businesses, highlighting that many law firms are hiring leaders from outside of the legal community in management positions. She suggests starting by reviewing the firm s strategic plan and financial goals (either quarterly or semi-annually) utilizing benchmarks or status updates. If you can t confirm forward progress, you are stagnating or even moving backward, she said, referencing the dramatic changes in the economics, structure and business of law over the past four years. EMBRACE HOLISTIC ACCOUNTABILITY We are entering an era of holistic accountability. If we are involved in strategic issues and integral to the strategic plan, as well as helping to influence the direction of the firm, we are accountable to more than just our direct reports, said Barnes. Our accountability has moved beyond that of general business operations and is now at a heightened level, she said. If firm leaders are placing their trust in us and giving us a seat at the table, we must accept a broader set of responsibilities and offer strategic leadership. Honoring that accountability builds an important level of trust, with both attorneys and staff. Our jobs are not going to get any easier, said Barnes. We will continue to shoulder more responsibility and more accountability as we move into the future our clients are driving it, our shareholders expect it, and, therefore, we must provide it. As a result, she encourages administrators to look ahead to the future, rather than linger in the past. We must be looking forward to find where we can provide broad and relevant information that will impact the direction of our firms, looking for that next bend in the road because that change is neverending, she said. About the author Ari Kaplan, an attorney and Fastcase 50 honoree, is the author of Reinventing Professional Services: Building Your Business in the Digital Marketplace (available in the ALA Bookstore). He has had the privilege of speaking at events for legal administrators in the United States, Canada, the U.K. and Australia. For a copy of his tip sheet on how administrators can attain and keep their seats at the table, feel free to him at [email protected]. 44