The LPM Maturity Model

Five steps to transform your law firm into a client-focused business

Keith Lipman, presidentProsperoware

Founded 2009

Legal process experts

Deep understanding of Sharepoint, WorkSite and other DMS

Offices: Philadelphia, Chicago and London

Who is Prosperoware?

We solve problems

WorkSite add-ons

SharePoint

Information governance

Electronic file (Matter Centricity)

Remote access for email and DMS

Legal Process Management and Pricing

U.S. CUSTOMERS

40% are Prosperoware

customers

U.S. CUSTOMERS

31% are Prosperoware customers

Total customers

130+

A sampling of our partners

MILANOur WorkSite add-ons improve administration and empower users

ZONEEnjoy secure email management on your mobile device with the Zone Mail app; Zone Remote Access brings the FileSite experience to your web browser

ASCERAEasily integrate your DMS with your SharePoint intranet and extranet

UMBRIATransform your firm into a client-focused business through Legal Process Management

Four product families, four focus areas

A Roadmap for LPM and Pricing Success

Where is your firm or practice area?

The LPM Maturity ModelFive steps to transform your firm into a client-focused business

Drivers of change:

• Price, client, competition• Pressure maturity drives

maturity

Maturity will be different based on practice

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Step 1: Budget and Monitor at the Matter Level

Understand effort to cost

• Building a budget creates familiarity

• Addresses the problem that billing takes place a long time after work

• Budgeting avoids duplicative tasks

Step 1 – Building your budget

Opportunity or

matter

Top down – start with an

amountMonitor only – select a total dollar amount

per phase

Bottom up – start with

task or hours

• Lawyers typically quote in dollars

• Challenge is do not know many hours they get for the amount

• Need this data to know that they can deliver the work

• Building a template with resources makes this easy to determine

Start with top-down: amount budgets

Why is Step 1 budgeting important?

It raises awareness in your organization

• Builds familiarity with cost & effort

• Commonality of processes

• Use of personnel

• Measure it, manage it

Progress reports and KPIs

• At least weekly progress reports to measure against budget

• Minimum set of KPIs at matter level:

• Leverage (e.g. non-partner hours vs. partner hours)

• Realization ( achieved or target revenue ÷ hours at current rate)

• Matter profitability (e.g. cost per hour ÷ revenue per hour)

Step 2:Matter type and phase

development

Going deeper for monitoring and pricing

• First level of breaking down matter types and phases

• The most important step in LPM journey

Goals of Step 2

• More granular budgets and monitoring

• Leverage past experience for pricing future matters

• Two critical tasks:• Define the services the firm delivers• Define the discrete phases within each matter type• Matters can contain multiple services

Understand key metadata

Matter Types • Uber type of work

• Litigation, Transaction, Advisory, Regulatory

Area of law• Subject area• Employment, Finance, bankruptcy

Matter Sub-type• Specific work being performed

• Employment discrimination, M&A, Chapter 11

Breaking down to phases is critical

• ABA/UTMBS Codes are not rich enough

• Need break down the work so that you derive meaning

• Enables comparison of work and measure efficiency

• More effective monitoring

Step 3:Monitor and identify

your obvious inefficiencies

Paying attention pays off

Unmonitored, simple and complex issues can driveup the cost of a matter

• “Stupid stuff” or low-hanging fruit• More complex issues

• Consulting partner expansion of the scope

• Failure to assign tasks properly

Step 4:Identify common tasks

across matter types and build a budget using these tasks

• Define repetitive tasks across matter types and subtypes

• Answering a complaint• Taking a deposition

• Once steps in tasks are identified, quantify the amount of time each step should take

• Once you determine tasks & time, it is easy to build a budget from the bottom up

• Advanced task with significant payoff

Know your verbs

Step 5:Manage your matters

with checklists

Sweet spot of LPM process

• Build a plan. Deliver to plan.

• Phases and tasks are broken down

• Inefficiencies are gone and budget templates are built

• Use task templates to drive work process

• Level of detail allows continuous process improvement

• Multi-year process

• True competitive advantage

Tools to transform your firm into a client-focused business through Legal Process Management

Budget, Pricing, Experience, Analytics, and Monitoring

Links the budget of a matter to the cost of delivering the work

Questions?

Visit www.prosperoware.com/umbria

At ILTA 2014, visit us at booth 428

or Ryman Studio Q.