Consider outsourcing office management to expert

By Paul J. Sullivan

Most small firms handle the management functions of their practice themselves because they don’t want the expense of hiring someone to do it. In fact, management functions are probably ignored until there’s a crisis.

When crisis happens, something suffers: either the client gets less service because you’re working on your problem, or you neglect your problem for your client’s.

If only you could practice law and let somebody else do the office stuff, your life would be simpler and you’d be more productive.

In a properly managed law firm, lawyers focus on their practices, manage non-billable time (which is their investment in the firm’s future), build and enhance client relationships, plan for the future, and implement action-oriented strategies.

It’s nearly impossible to do these things while simultaneously keeping up with new law office technologies, dealing with employee issues, managing cash flow, and taking out the trash.

A larger firm actuallys hire somebody to do these and many other things. This person is typically a non-lawyer with a business background, or a lawyer who chooses to practice either not at all or very little.

The charge of this person will vary from one firm to another based on what responsibilities the owner lawyers choose to give up. He or she usually reports directly to a managing partner or a management committee within the firm.

What consultants can do

In the really large firm, the administrative area is a department unto itself. The administrator functions almost like a CEO and has middle managers in charge of human resources, accounting, facilities, marketing, and IS (information systems).

In the smaller firm, the law office manager almost always is a generalist: i.e., one with broad knowledge in many areas of law office operation.

Much of his or her time is spent not only managing office operations but actually keeping abreast of ever-changing needs and resources so the firm can provide the best services to its clients.

Even a firm with an in-house manager occasionally must go outside to get special expertise. This is done by employing third parties.

This author has employed them for our firm over the years. I regularly use a communications expert to evaluate the best use of our voice and data agreements with providers.

We have used management experts to evaluate specific offerings in litigation support programs, do client surveys, and conduct strategic planning sessions. We use a third party to install our major computer acquisitions and upgrades, and of course we employ the services of a CPA firm.

Even though much of my job is to keep up on office management issues and offer a vision to the firm for the future, I recognize that I can’t do it all myself. I sometimes need to bring in help.

The concept of using third parties should be familiar to any litigation lawyer. Use of expert witnesses is a common practice, and experts are nothing more than consultants in their fields of expertise.

If you’re too small or don’t wish to hire a staff manager, why not consider using an expert to help run your office? Answering the questions below can help you decide if you need one.

• Do you believe that performance could be better, but you’re not sure what to do about it?
• Do you lack the specific knowledge and skills to solve your problems?
• Do you have the knowledge but lack the time or personnel to solve your problems?
• Have you tried unsuccessfully to solve your problems?
• Do you want a third-party opinion to provide affirmation of a decision or offer alternatives?

Determining how to pay an expert to provide these services is similar to negotiating with a client. You decide on a mutually agreeable fee, outline the scope of work, monitor the progress, and regularly make necessary adjustments.

Choosing the expert

Selecting the right person or firm to provide these services is critical to your success. You wouldn’t go to a foot doctor for brain surgery or a bankruptcy lawyer for an injury claim.

In the management outsourcing field there are many prospects, but few provide services specific to law offices. Here are some areas where a law office management “specialist” can benefit you:

• Review and analyze your practices to assess your performance, profitability, long-term viability and competitiveness.
• Review and analyze your office systems and procedures, including financial controls, billing, accounts receivable, payables, cash flow and reporting compliance.

A manager can review office operations and procedures, including docketing, conflict checking, workflow and overall office efficiency, and review your office environment for image, layout, and best use of space, and assist in disaster planning.

• Review and analyze risk management, highlighting areas needing improvement to prevent accidents, mistakes or even malpractice.
• Evaluate law office technology, from selection to implementation, keeping in mind the special needs and available resources of your firm.
• Advise on staffing and human resource issues, including screening applicants, dealing with problem employees, creating employee incentives and benefits, and offering skill development.
• Help in developing a marketing program that includes client surveys, marketing plans, business identity plans, and Web site design and layout.

By using the Internet and telephone, a smaller firm can more affordably outsource management functions by eliminating one of the major expenses: travel. Even for a project that requires an on-site visit, the expense can be minimized by doing some of the work online or via the phone.

Can you afford not to?

Think it over. Almost all professional service firms in all fields employ professional management. Law firms are no exception.

Law office administration is one of the fastest growing professions today. Several universities offer curriculums in the field, and the Association of Legal Administrators has implemented a certification program for its members.

You could use an office administrator if you don’t have one. If you can’t justify having a full-time office administrator, consider outsourcing your management chores. The question is not whether you can afford one, but whether you can afford not to have one.

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Paul Sullivan, past chair of the ISBA Committee on Law Office Management and Economics, is office administrator for the Peoria firm of Quinn, Johnston, Henderson & Pretorius. He may be contacted at (309) 636-7252, or sullivan@qjhp.com for answers to management and economics concerns.