The Bottom Line

June 1999 Vol. 20, No. 4

Statements or expressions of opinion or comments appearing herein are those of

the editors or contributors, and not necessarily those of the association or section.

Contents

* "Good Start": Finding legal management resources on the Internet

* From the incoming chair

* The virtual law firm

* Crazy times, crazy clients

Opinions about the products discussed in this issue are strictly those of the authors. Their opinions do not constitute endorsement or recommendation by the Illinois State Bar Association.

"Good Start": Finding legal management resources on the Internet

By Debra L. Rhodunda and Alan R. Olson
© 1999 Altman Weil, Inc., The Leader in Management Consulting

It's easy to spend hours "surfing the Web." The Internet contains voluminous resources, on an accelerating variety of topics. However, lawyers often do not have the luxury of spending time sorting through the thousands of "hits" they receive when looking for a law firm management topic through a "generic" search engine. To save time, this introductory overview describes a few sources and sites for legal management information. Descriptions were compiled directly from the Web sites.

The Law Practice Management Section, American Bar Association
http://www.abanet.org.lpm

This site features online issues of the ABA Law Practice Management Section's widely-acclaimed magazine Law Practice Management, which covers the management aspects of practicing law. It's a monthly publication focusing on the latest issues in law practice management--including human resources, marketing, best practices, the effective use of technology and much more. In addition to this particular publication, this site contains a wide range of source material devoted to law office management. The LPM section site offers descriptions and information relating to relevant articles, books and publications, and is home to a half-dozen newsletters. Lawyers will find a broad spectrum of practice management material on this site alone.

Altman Weil, Inc. The Leader in Management Consulting
http://www.altmanweil.com

The authors have decided (proudly, rather than shamelessly) to insert information about our site, which contains substantial materials specifically geared to assist lawyers and administrators with law firm and corporate law department planning and management. Excerpts from AW's leading annual economic and financial surveys are available online, as well as access to numerous articles, books and loose-leaf services, covering law firm and corporate law department administrative management, practice management, outsourcing, alternative billing, technology, marketing, strategic planning, profitability and financial management, compensation systems, human resources, and organizational psychology. Two monthly newsletters are available for subscription: Report to Legal Management, focusing on law firms' issues and In-House Practice & Management, aimed at corporate law departments.

The Institute of Management and Administration
http://www.ioma.com/industry/law/index.shtml

This site offers information and newsletters on a variety of management topics for a variety of industries. Four legal-specific newsletters are available for subscription:

Compensation and Benefits for Law Firms. Directed at law firms' needs to offer competitive employee benefits packages while containing costs.

Controlling Law Firm Costs. Addresses the person responsible for the day-to-day management of a law firm; gives information on budgets, purchasing, and management responsibilities for the firm's support staff, office facilities, equipment, and insurance.

Law Office Management and Administration Report. Provides law firm managing partners and administrators with innovative strategies and tools necessary for meeting the challenge of running today's law firm.

Partners' Report for Law Firm Owners. Keeps partners up-to-date on salary guidelines and benefits. Gives tips on increasing profit margins and exercising leadership skills.

Law News Network.com, The American Lawyer
http://www.lawnewsnetwork.com

Law News Network is a national daily newspaper for and about the legal profession. Law News Network states it is the most current and comprehensive legal news source on the Internet, for lawyers and others who need to keep abreast of the latest legal developments affecting their industries. The site brings together all the national legal news articles from American Lawyer Media's 20 print newspapers and journals around the country. In addition to news, Law News Network offers Open Court, an Op-Ed section, featuring provocative and irreverent commentary (and occasional satire) on a wide range of hot-button issues. Other features include practice centers that showcase information regarding specialty areas, legal developments at the state level, and employment opportunities. A wealth of news and information here.

Hieros Gamos
http://www.hg.org

Otherwise known as the comprehensive legal and government portal, this site contains three main sections as described below:

Section I: The Global Bar has 12 directories that includes information on governments, associations, law schools, law firms, publishers, services, vendors, law sites, legal education, mediators and online services.

Section II: The World-Wide Practice of Law includes information on over 200 subject areas, approximately 300 discussion groups, and 50 guides to doing business.

Section III: Resources includes information and numerous links regarding law study, employment, law library, live news, seminars, legal guides and law journals.

This site provides a national and global look at the various aspects of the legal profession and integrates other industry information as well. Section III is dedicated to resources providing information and numerous links to newsletters, journals and other such legal resources.

Online Newsletters from Leader Publications
http://www.ljx.com/newsletters

Leader Publications, an affiliate of Law Journal Extra, provides access to five online newsletters at this site. They include:

The Computer Law Strategist. Get expert advice in areas as diverse as licensing, copyright, software patents and computer crime. The Computer Law Strategist states that it is the authoritative monthly report for lawyers handling computer law problems.

E-Securities. More than just a monthly roundup, this newsletter and update service helps you stay on top of this fast-growing area. Along with e-mail updates between issues, it includes such features as: Web Site/Chat Room/Bulletin Board Watch, Enforcement Update (Federal, state, SEC, and NASD), Regulatory Roundup, Dispatch from Europe and Dispatch from Asia, Capital Raising Roundup, and Online Resources, plus the latest court decisions, legislation, and other unique columns and services not available elsewhere.

The Corporate Counselor. This newsletter is designed especially for lawyers practicing in corporate law departments. It is a concise publication which analyzes management issues and presents practical advice on how to deal with them.

Y2K Counselor. This newsletter is aimed at legal and business professionals trying to plan realistically for the Year 2000. It states that it is a practical, hard-hitting Y2K newsletter that goes beyond simply reporting the latest cases, statutes, and regulations to tell you how the Year 2000 affects you and what steps you can take.

The Internet Newsletter: Legal and Business Aspects. This newsletter puts the expertise of Internet specialists and the real world experience of practicing attorneys at your fingertips. Some sections of the monthly issues include: pointers and advice on how to use time efficiently on the Internet, track references to your firm and your clients online, and improve your online presence. In addition, it provides information regarding the newest sites containing legal content in many practice areas - corporate, tax, litigation, etc.

Although the above described sites are only a few "drops in the bucket" in relation to all the resources on the Internet, we believe they are a good start to locating what is going on in the area of law firm and corporate law department management, and can streamline the search for relevant legal management information.

_______________

Debra L. Rhodunda is a consultant working out of the firm's headquarters outside of Philadelphia, PA. She can be reached at (610) 359-9900. Alan R. Olson is a principal of Altman Weil working out of the firm's midwest regional office, located near Chicago. He can be reached at (414) 427-5400.

 

From the incoming chair

By Paul Bernstein
paulbern@interaccess. com
www.paulbernstein.com

As we approach the 21st century, we lawyers see more and more challenges to our positions in society and our professional opportunities. I am hereby asking not only members of the Law Office Management and Economics (Standing Committe on) ("LOE") to suggest topics we should focus on this year, but I am asking every member lawyer of the Illinois State Bar Association and every lawyer in the United States of America to send me e-mail to express their concerns. Here are a few of mine:

1. Ownership of law firms: Lawyers hold a very special, well-deserved, place of trust and confidence with clients; however, the American Bar Association is considering a rule that would allow, for example, large accounting firms to practice law. This surely represents a threat to the economics of law practice.

2. Value billing: It seems to me that our authorities have been much too much consumer oriented. Surely, adult consumers do and can enter into meaningful and well understood contracts with attorneys. Yet, we often hear about complaints being made about attorneys making "unconscionable" legal fees. And, this in an age when Michael Jordan made $32,000,000 for playing basketball (not counting endorsements), and who would say Michael wasn't entitled to that and more?

3. Focus on prevention and not punishment: Over the years, the practice of law has become what it never should have become, and that's competitive. This has caused many lawyers to take on too many cases, and yes, to be sure, once in a while all of us I suspect, fail to return a client's call in 3 1/2 minutes. Why then do we get pinned to the wall because of alleged "neglect" of our clients' matters? Would not a better approach be a dialog with the ARDC and the implementation of education, training and automation techniques so that lawyers would be better able to cope with a growing volume of clients, brought about by other changes in our society?

4. Who's the lawyer anyway?: In my experience over the years, I found that the most intelligent clients "used" their lawyers as business "weapons"....particularly with the threat of litigation, threatened or actual. However, today, many businesses are telling their lawyers how to practice law: how many depositions to take; whose depositions to take; what kinds offers to make in cases; how much to spend in discovery, and to make it worse, having law firms engage in "beauty contests" to win their corporate business. When I started to practice law in 1959 and well into the 1970s, we lawyers were taught that ethical lawyers never take business away from another lawyer and that lawyers never, ever, use price to win clientele....that it's our ability and talent as lawyers that allow us to grow our practice. I think it is time for the legal profession to take a hand in determining who is the lawyer and who is to make legal decisions.

5. What is the practice of law?: Nolo Press and other software vendors have been providing "Do-It-Yourself" software for years and it is only in recent years that lawyers in the state of Texas have tried to do something about it. These products have some very good qualities and seem to service a segment of society that, without their products, would not be able to have "legal documents'' prepared for them. What should our views be on this and related topics, where nonattorneys are performing services for consumers that lawyers cannot afford to take on or just will not take on for whatever reasons?

6. Technology and the practice of law: The industrial revolution changed society forever and we are now in another revolution....that of the Internet and information. How has the Internet and technology changed the practice of law? How must lawyers change? How should the Illinois State Bar Association and the ARDC change, if at all?

It is in many ways "the best of times and the worst of times." Lawyers are a hearty and innovative group. We are zealous advocates for our clients and have always had a strong leadership role in American society. Now is the time, I believe, for lawyers to take the high ground and start the up-hill fight to regain that well deserved prominence and understood importance that we have always had in this country.

How we should communicate

I am hopeful that with the make-up of LOE that we can experiment with the use of technology to pursue and enhance our opportunities on behalf of the Law Office Management and Economics (Standing Committe on) Council of the Illinois State Bar Association. Although I understand the value of Internet-based "ListServ" technology, in my view such technology is grossly inadequate for our interests, areas of focus and concerns. Accordingly, I will strongly urge us to use Internet based technologies of the "Clubs" on Yahoo (www.yahoo.com) and forums on Delphi (www.Delphi. com), both of which are free resources, in order to discuss these topics. I would like committee members to consider opening these discussion groups up to all ISBA members, and others, so that we may exchange views with many others, in addition to section members.

In conclusion

I am honored to be the chair of LOE this coming year and will do all in my power to see to it that LOE has a most productive and important year.

 

The virtual law firm

By Paul Bernstein, Esq.

The virtual law firm is upon us. Basic to the virtual law firm is the use of Internet resources. Before getting down to details, first you must have some background and understanding of the philosophy of a "virtual law firm" and how the Internet provides this resource for all lawyers.

Computers and computer-based programs are complex

Have you ever had your Windows-based computer lock up on you? Have you ever upgraded a software program only to find that other programs that used to work before these courageous efforts no longer work? Do you find operating a case management software program or database program easy? Technology for lawyers should be easy to use, and it should make our lives less, rather than more, complex. Information is a zero-sum commodity – the more time a lawyer has to spend learning to use technology tools, the less he or she has to practice law, or to enjoy life.

The fact is that the Internet has revolutionized communications, publishing and the way law will be practiced in the next century, now just about upon us.

First, some computer basics.

The technology – What is an intranet/extranet?

An "intranet" is a private internal network that is accessed via a Web browser application, such as Netscape Navigator or Microsoft Internet Explorer. It is conceptually no different from a typical office network – it is a means by which members of the firm share common electronic information. The difference, however, between the two is that an intranet operates on the very same "open standards" technology that supports the World Wide Web. This means that an intranet can be accessed from anywhere, as long as the person accessing it has a computer with an Internet connection and a Web browser. Using an intranet is as easy as surfing the Web, without the chaos.

Information typically found in a law firm's intranet includes: firm policies and manuals, calendars and schedules, announcements, newsletters, work product banks, technical support, directories, conflict checking and marketing information, and firm library catalog, i.e., any information the firm normally distributes or shares internally. Many firms also set up an Internet research launch site on the intranet, where links to useful World Wide Web sites can be organized and updated for quick access.

But a well-designed firm intranet offers more: It can serve as a platform for group collaboration. For example, a group of attorneys working together on a case might set up a virtual conference room containing threaded electronic discussions organized by topic. Rather than having to coordinate schedules and meet to share perspectives on strategy, those attorneys can share thoughts via the electronic conference, at times most convenient to them, from virtually anywhere. (This, I believe, will become one of the most valuable uses of this technology in the law firm or in any business for that matter. The ability to record wisdom and information and to track discussions of tough problems to a conclusion, and the ability to retain that recorded wisdom for "reuse" and future inquirers is truly a most valuable resource.)

While an "intranet" refers to the portion of the network cordoned off for internal use, a firm's "extranet" is the vehicle for communicating with "outsiders." The difference is only a matter of access rights. An extranet account can be set up for anyone with whom the firm needs to communicate electronically. The beauty of the extranet is its ease of use – because users access it via conventional Web browsers. For example, extranet accounts can be set up for clients, co-counsel, suppliers, opposing counsel, and perhaps even courts as electronic filing becomes available. (The importance of "ease-of-use" cannot be overstated. In my experience, most software products overwhelm lawyers. And, even as to those products lawyers use, 99% of the lawyers use only 10% to 15% of a software product's capabilities and resources. But, with browsers, because they are so very easy to learn to use and to use in practice, lawyers take to the use of a browser like the proverbial duck takes to water.)

The key to a well designed extranet is that it provides users access only to that information to which he or she is assigned rights. The assignment of rights should be tightly controlled. Further, extranets, with proper monitoring technologies, can serve as a means to verify that participants have accessed data and important case information.

Collaboration and communication facilitated

One of the most effective use of extranets is as a vehicle for client communication and especially as a way to manage client expectations. Via an extranet, clients can receive correspondence, documents, billing information, newsletters and other critical information. As a way of managing client communication, an extranet makes an attorney more accessible to the client, yet provides the attorney with some cushion to manage the communication.

For example, a retired client in Phoenix, Arizona, wishes to ask a question of her attorney in Chicago. Rather than worrying about time zones and having to deal with "phone tag," the client can post the question on the secure extranet.

The attorney, who has set aside time at regular intervals throughout each day to manage client communications on the extranet, finds the question, sends the client a message that he is working on a response and begins to formulate an answer. When ready, the attorney posts the answer to the client's question. The answer might be a simple message, or it might be a detailed memo, including electronic links to other sources. The client need not worry whether the attorney is in. The attorney need not constantly call in to check messages. Neither one need deal with interruptions to their schedules. The extranet allows both client and attorney to communicate effectively and efficiently.

In addition, extranets enable attorneys from different offices to collaborate securely and efficiently, regardless of where they may be. For example, several different attorneys in several states may each have product liability actions against the same defendant. Such attorneys may wish to share depositions of experts or other documents. An extranet is an ideal vehicle for that kind of collaboration. Many smaller law firms already network extensively with similar firms in other geographic areas. Extranet technology allows such firms to strengthen those networks and enjoy the benefits of closer collaboration with similarly situated and like-minded colleagues.

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