New Paradigm Law Firm

Professional Office Consulting

Bob Badger

Traditional Law Firm

Partners

Associates Associates

Paralegals Paralegals Paralegals

Staff Staff Staff Staff Staff Staff Staff Staff

Pyramid

Associate-Driven Profits In Big Traditional Firm

2500 hours x $140/hour rate = $350,000/year (revenue/associate)

Firm cost/associate = $150,000 yr

Margin/associate = $200,000

Every additional associate on a case = $200,000/year (in bottom line profit)

Impact On Law Firms Of Associate-Driven ProfitsInexperienced new associates added 1998 Latham: 150 (20% of the entire firm) Cravath 76 (22% of the firm) Sullivan & Cromwell 99 (21% of the firm)

Result of these profit-driven policies 90% of all associates are “terminated” between 3-9

years and, just when they finally have experience, are replaced with completely inexperienced new associates

1/5th of all lawyers in the large pyramid firms thus have no experience

The Resulting Pyramid Structure Is Detrimental

To QualityThe important work is driven to these inexperienced associates That is where the margins/profits are

Large staffs resulting from profit motive fragment the knowledge of case Experienced senior trial lawyers are

insulated from the case by layers of inexperienced associates

Because profits come from hours billed, there is no incentive to use technology to increase efficiency

How Can Quality Be Improved?

Create incentives for assigning important work to experienced trial lawyers

Create incentives for training associates

Create incentives for extensive use of technology

How Can These Quality-Based Incentives Be Created?

Use result-based, non-hourly, billing

Law firm profits are then based on expertise, experience and results, not merely “hours expended”

New Paradigm Law Firmthrough Technology

Partners Partners Partners Partners

Associates Associates

Paralegals

Staff

Partners They do the Work

1. Partner have sole contact with clients.

2. Partners type there own letters and pleadings.

3. Partners do their own research.

4. Partners do their own depositions.

5. Partners go to trial alone or with one associate or paralegal.

AssociatesLearn to be partners

1. They work in the background with the mentor partner.

2. They assist the partner in a learning mode.

3. They may go to trial with the partner to assist and learn.

Paralegals

1. They are fewer in number and have a much lesser role that in the traditional law firm.

2. They work for the partner directly.

StaffNo Librarian. All research is done on line.

The Administrator purchases everything on line.

There is no file room as all paperwork is scanned into the server.

Filings and outside deliveries are reduced by e-mail, e-filings. Outside couriers are used when required.

Staffcontinued

With the partners, associates and paralegals doing there own typing, the ratio of of time keepers to secretaries can be kept to 8 to 1.

Most traditional law firm have a ratio of 2 to 1.

CostPersonnel cost is the highest part of operation the law firm.

The new paradigm significantly reduces the operating cost of the law firm and thus makes the potential profits to the partners very high.

Through careful analysis of the hours spent on many complex litigation cases, the firm can accurately predict the cost of litigation.

Costcontinued

This allows the new pyridine law firm to offer fixed pricing for complex litigation, and still provide a high profit margin to the partners.

If the client prevails in the complex litigation the firm receives a large bonus. This new concept is very appealing to many large corporations.

Concepts

Technology is used to the fullest extent.

All depositions, documents, letters, e-mails, drawings, photographs, videos and visuals are stored in a complex data base which is brought to the trial in a laptop computer.

All written material is OCR and indexed.

Conceptscontinued

When possible all letters and pleadings generated by the firm, are made from templates or forms.

This allows the client to be kept current on the case with minimum time and effort of the firm.

Conceptscontinued

Dates and notes are made and indexed on all documents and evidence.

This data can be retrieved instantly, printed, displayed for the jury.

Originals are kept for the duration on the trial in case there were a error made during scanning.

Conceptscontinued

All original documents are returned to the client after the trial.All scanned documents are treated as originals by the court and are archived on CD-ROM should there be an appeal.All contact with the client is made by e-mail. Phone calls are recorded and transcribed into the data base.

Conceptscontinued

Clients work very closely with the Partner, which improves the client/attorney relationship.Clients like knowing what complex litigation is going to cost before the case begins.Litigation cost 50 to 75 % of what the cost are with traditional law firm.

ProblemsWhy don’t more firms practice in this manner?Traditional law firms have many associates and partners who don’t type or believe in the use of technology.Every person in the firm must have complete confidence in technology and use it to the fullest extent.

Opportunities

With most of today’s graduating attorneys being computer literate and exposed to technology, they have the opportunity to start a new paradigm firm.

Available Software

PC Law Amicus Attorney Hot Docs Summation

PC Law Time and Billing

General Ledger

Conflict Search

General Account

Trust Accounts

Amicus Attorney Case Management Document Review E-Mails Phone Calls Scanned Documents

Hot Docs

Probate Documents

Repetitive Correspondence

Pleadings

Interrogatives

Summation Depositions Documents Correspondence Margin Notes Instance Search Capabilities

Summary

All of these software will make you work smarter , save time and make you more money. Call me.!!! I can make you more profitable and efficient.