Stay Connected
Once the confetti is cleared off the floor and champagne flutes are discarded after the go-live party, be ready to stay closely connected with the service provider. The first “problem” is likely to arise within hours.
Someone in the business will be confused about the new outsourced process, and complaints will begin. Understand that complaints about any change are natural and not a sign of failure. In fact, consider preparing a survey for key stakeholders within the business who will be using the newly outsourced service. Track those survey results and identify patterns.Most importantly, do not blame the service provider for failures when there is a good likelihood that the client had something to do with the issues that arise. Do post mortem reviews and alter direction as needed. Be agile and open to critical feedback. Work through problems with the service provider as one unified team, and over time, the relationship will yield results beyond those anticipated.
The law firms also provide their perspective in the challenges that law firms face as they try to move in this direction.
While the rewards are great, the “change curve” will be steep. For those law firms looking to offer managed services, there are at least a few key challenges to overcome:
1. Mindset shift. Law firms (and their finance departments) need to reassess how they measure “profitability”. For almost all firms, this means focusing less on hours-based realization and near-term profits and more on guaranteed revenue and long-term sustainable relationships. Still, successes with great clients (including projects generating substantial fees on a recurring basis) pave the way for additional innovation by and within our law firm. There is nothing like a client win to get the attention, interest and support of our partners.
2. Delivery. Implementing a managed service will require a significant investment in operational and technological efficiencies, which quickly distinguish between legal/non-legal work and “triaging” matters as (a) standardized; (b) specialist; (c) bespoke so assigned appropriately at the outset. This is particularly critical for recruitment/retention because good lawyers don't want repetitious low-level work.
3. Sourcing. To be agile to client's needs, law firms will need to establish a flexible approach to multi-sourcing through a combination of both legal and non-legal personnel such as project managers, paralegals, consultants (flexible resource) or external specialists (e.g. tech partners).
4. Measuring success. Finally, for any managed services project to be successful, both partners need clear objectives and incentives. At the outset, law firms and clients should not be afraid to discuss the metrics of success and what the rewards will be (for both parties).
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