Law Practice Management
Encyclopedia
Law practice management is the management
of a law practice. In the USA, such practises are operated as independent business
es and so must be efficient and financially sound to be successful. Law practises in this country must therefore attend to business-like activities such as workload
and staff management
; financial management
; office management
; and marketing
.
The legal profession therefore had a head start on management theorists
in the ordering and running of their own affairs. A law firm is a professional services business and must be set up and managed as such if it is to operate efficiently and at a profit. There is a debate however within the legal community as to whether the practice of law is a "business" or a "profession". Some legal commentators believe this false choice is one of the reasons most American law schools exclude law practice management from the standard curriculum.
which publishes Law Practice Magazine
. Many private organizations exist also to supplement the substantive legal training lawyers receive in law school and in most CLE programs. The focus of most of these private organizations is to provide additional training to equip lawyers for the profitable management of a law firm as the majority of lawyers licensed to practice law in the United States today are solo practitioners or owners of small (five or fewer) law firms.
Some of the elements of LPM include:
is at the very crux of efficient LPM implementation, but it is a foundation and not the entire structure.
Picking the "best" software for a law office can be difficult, but not impossible. Some general-purpose software available on an open GNU license can (with some expertise) be modified to work well with law office requirements. For example, CiviCRM offers a highly-customizable, open source engine core that, along with its free modules for such things as clients lists, mailing, billing, etc. permit an attorney knowledgeable in coding the opportunity to establish a sophisticated software solution on a shoe-string. However, the more sophisticated the practice area, the more difficult it becomes to self-code. Thus, highly integrated software for niche practices usually does all that is needed but comes at a price. For example, Microsoft touts its online law office suite for its cost-cutting, general purpose solutions, while, at the extreme of niche specialization, the American Academy of Estate Planning Attorneys performs everything for estate planning
lawyers from generating Living trusts, Will (law)
, a Power of attorney
and even Thank you letters. Somewhere in between these extremes is something that will fit almost every lawyer's budget.
, Personnel Retention
, Legal Compliance, Employee Benefits, Compensation Plans, Dispute resolution
, Financial Management
, Law Office Management Procedural Systems, Law Office Personnel Systems and Employee Training and development
. Each of the subtopics could easily constitute a separate article and in some cases do.
Management
Management in all business and organizational activities is the act of getting people together to accomplish desired goals and objectives using available resources efficiently and effectively...
of a law practice. In the USA, such practises are operated as independent business
Business
A business is an organization engaged in the trade of goods, services, or both to consumers. Businesses are predominant in capitalist economies, where most of them are privately owned and administered to earn profit to increase the wealth of their owners. Businesses may also be not-for-profit...
es and so must be efficient and financially sound to be successful. Law practises in this country must therefore attend to business-like activities such as workload
Workload
-An amount of labor:While a precise definition of a workload is elusive, a commonly accepted definition is the hypothetical relationship between a group or individual human operator and task demands....
and staff management
Staff management
Staff management is the management of the subordinates in an organisation. In large organisations, many of these functions are performed by a specialist department such as Personnel or Human Resources, but all line managers are still required to supervise and administer the activities and...
; financial management
Managerial finance
Managerial finance is the branch of finance that concerns itself with the managerial significance of finance techniques. It is focused on assessment rather than technique....
; office management
Office management
Office manager is a profession related to office supervisory positions.People that hold office management positions conduct special studies and based on the results of these special studies, they develop reports. Apart from developing reports, they also provide input to management on the...
; and marketing
Marketing
Marketing is the process used to determine what products or services may be of interest to customers, and the strategy to use in sales, communications and business development. It generates the strategy that underlies sales techniques, business communication, and business developments...
.
History
Lawyers started practicing some millennia ago, and even law firms as an institution date back to the nineteenth century.The legal profession therefore had a head start on management theorists
in the ordering and running of their own affairs. A law firm is a professional services business and must be set up and managed as such if it is to operate efficiently and at a profit. There is a debate however within the legal community as to whether the practice of law is a "business" or a "profession". Some legal commentators believe this false choice is one of the reasons most American law schools exclude law practice management from the standard curriculum.
Available resources
Practically every bar association has an LPM section and many bars permit non-attorney membership in the LPM section due to the technical (e.g., non legal) basis of law office management . The largest organization dedicated to law practice management is the Law Practice Management Section of the American Bar AssociationAmerican Bar Association
The American Bar Association , founded August 21, 1878, is a voluntary bar association of lawyers and law students, which is not specific to any jurisdiction in the United States. The ABA's most important stated activities are the setting of academic standards for law schools, and the formulation...
which publishes Law Practice Magazine
Law Practice Magazine
Law Practice Magazine is a legal magazine published six times per year by the Law Practice Management Section of the American Bar Association . It claims, as editorial purpose, to be "dedicated to helping legal professionals master all aspects of the business of practicing law"...
. Many private organizations exist also to supplement the substantive legal training lawyers receive in law school and in most CLE programs. The focus of most of these private organizations is to provide additional training to equip lawyers for the profitable management of a law firm as the majority of lawyers licensed to practice law in the United States today are solo practitioners or owners of small (five or fewer) law firms.
Elements of law-practice management
There are four principal elements of law practice management: People, Plant, Processes and Money. People includes clients, staff and don't forget to take vendors into account. Physical plant includes the space where the work gets done and all required equipment including software to run it. Processes refer to how the business functions and include policies, procedures and documentation so you're not re-inventing the wheel every time. And last but not least is the money which includes how the firm gets paid, budgeting, financial controls, payroll and of course client property (IOLTA) trust account management. (Source: Excerpt from a speech by Lawyer and Law Practice Management Advisor RJon Robins)Some of the elements of LPM include:
Software management
Software applications form the basis of today's office and this axiom does not exclude a law office. Thus Law practice management softwareLaw practice management software
Law Practice Management software is software designed to manage a law firm's case and client records, billing and bookkeeping, schedules and appointments, deadlines, computer files and to facilitate any compliance requirements such as with document retention policies, courts' electronic filing...
is at the very crux of efficient LPM implementation, but it is a foundation and not the entire structure.
Picking the "best" software for a law office can be difficult, but not impossible. Some general-purpose software available on an open GNU license can (with some expertise) be modified to work well with law office requirements. For example, CiviCRM offers a highly-customizable, open source engine core that, along with its free modules for such things as clients lists, mailing, billing, etc. permit an attorney knowledgeable in coding the opportunity to establish a sophisticated software solution on a shoe-string. However, the more sophisticated the practice area, the more difficult it becomes to self-code. Thus, highly integrated software for niche practices usually does all that is needed but comes at a price. For example, Microsoft touts its online law office suite for its cost-cutting, general purpose solutions, while, at the extreme of niche specialization, the American Academy of Estate Planning Attorneys performs everything for estate planning
Estate planning
Estate planning is the process of anticipating and arranging for the disposal of an estate. Estate planning typically attempts to eliminate uncertainties over the administration of a probate and maximize the value of the estate by reducing taxes and other expenses...
lawyers from generating Living trusts, Will (law)
Will (law)
A will or testament is a legal declaration by which a person, the testator, names one or more persons to manage his/her estate and provides for the transfer of his/her property at death...
, a Power of attorney
Power of attorney
A power of attorney or letter of attorney is a written authorization to represent or act on another's behalf in private affairs, business, or some other legal matter...
and even Thank you letters. Somewhere in between these extremes is something that will fit almost every lawyer's budget.
Personnel management
The broad subject of personnel management is one laden with both social and governmental issues and, at the very least includes the following subtopics: Personnel RecruitmentRecruitment
Recruitment refers to the process of attracting, screening, and selecting qualified people for a job. For some components of the recruitment process, mid- and large-size organizations often retain professional recruiters or outsource some of the process to recruitment agencies.The recruitment...
, Personnel Retention
Retention
Retention may refer to:* Retention, in learning, the ability to retain facts and figures in memory ** Selective retention* Cultural retention* Customer retention...
, Legal Compliance, Employee Benefits, Compensation Plans, Dispute resolution
Dispute resolution
Dispute resolution is the process of resolving disputes between parties.-Methods:Methods of dispute resolution include:* lawsuits * arbitration* collaborative law* mediation* conciliation* many types of negotiation* facilitation...
, Financial Management
Managerial finance
Managerial finance is the branch of finance that concerns itself with the managerial significance of finance techniques. It is focused on assessment rather than technique....
, Law Office Management Procedural Systems, Law Office Personnel Systems and Employee Training and development
Training and development
In the field of human resource management, training and development is the field which is concerned with organizational activity aimed at bettering the performance of individuals and groups in organizational settings...
. Each of the subtopics could easily constitute a separate article and in some cases do.