17 September, 2009

I’ve been working for a while with clients and prospective clients on tailoring project management specifically for legal matters.  

Legal Project Management (LPM) is a new field. I started to write “emerging field,” but you have to first crack the eggshell before you can emerge. Currently there are a few North American firms poking about inside the shell, trying to decide if there’s life outside the safe confines of those calcium walls.

LPM, at least for firms serving corporate clients, is not about the practice of law per se, but about the mechanics of that practice. As such, it goes counter to almost all of what attorneys have learned at law school and in the practice of law since getting that precious JD:

1. I do whatever it takes for the client.
2. I do whatever the client asks. (Figure out if it’s legal, first. Unfortunately, recent stories point out a few attorneys who forgot that part.)
3. Partner profit is a function of one variable, hours billed.
4. I went to law school to practice law (and/or make a bunch of money), so don’t give me that project-manager &@&(!(#!^.
5. I solve my client’s legal problems, not their business problems.

To some extent, corporate clients have allowed these practices to take root and grow to full flower. If you don’t ask how much it costs, or better yet tell the firm how much you think a matter is worth, then why shouldn’t they spend freely in pursuing every thread, checking every possibility? If you negotiate only hourly rates, then the conversation is solely about money, not efficacy.

Corporate clients are now being pushed by the recession. (Which, by the way, ain’t over till it’s over, as Yogi says. Ask Warren Buffet, for example.) Finally, there are more than a handful that are putting at least a toe in the water of cost control, though very few have followed Cisco’s General Counsel Mark Chandler in diving in and swimming for it.

So the firms need to respond. Many are doing the obvious things: from cutting minor costs internally to delaying the hire of newly minted law-school grads to mass layoffs. Few of these thrusts will drive long-term profitability and stability, though they’ll increase partner payouts for a year or two.

Thus the smart firms are looking to LPM. Via LPM, they can take a new approach to the five “imperatives” I noted above:

1. Whatever it takes: I will ask the client what their goal is for this matter, what they and we need to do to be successful, and what they will spend to achieve that goal. I will ensure all work furthers that goal. I’ll still do whatever it takes, but only if it moves the ball toward the goal.
2. Whatever the client asks: I will partner with the client to ensure we see the same goal the same way. If the client asks for something that doesn’t support that goal, I will confirm with the client that (a) it’s a change in direction, with attendant consequences, or (b) we need to get back on the successful-outcome track.
3. Profit and billable hours: It’s a business, and like all businesses, profit = income – costs. My goal as a participant in the firm’s success — and as a current or future partner — is to increase income and/or reduce the costs of earning it. Efficiency beats racking up hours.
4. Not a project manager: The attorney shouldn’t become a project manager, either. However, there are some practical project-management techniques and tips that draw on and supplement what the attorney already knows. LPM draws them out and helps the attorney incorporate them easily.
5. Legal vs. business problems: My clients are businesses, and every problem is a business problem. I will use my legal skills to help the client strengthen the business, since that’s the client’s real goal, the true bottom line. I will remember that most clients not only are ethical themselves but understand that staying both legal and ethical is the best way to build a business and long-term success.

It’s a long, uphill climb. As I noted, a few firms are looking into it. Like all good project management, LPM will help them be more efficient and effective in reaching their goals — and building a business model for the long term.