Outsourcing Options and Opportunities - Part 2: The Evolution of Law Firm Outsourcing

The goals of outsourcing include improving efficiency, reducing costs and gaining a competitive advantage. As a result, it shouldn't be too surprising that law firms have been experimenting with outsourcing for decades, according to some sources as early as the 1960s. The most common legal services that law firms have attempted to outsource have been agency work, document review, legal research and writing, drafting of pleadings and briefs and patent services. Firms have been even more open to outsourcing their non-legal work such as IT support, finance and accounting and helpdesk operations.

As a result, companies hoping to capitalize on these trends have established themselves in several countries including India, the Philippines, Israel, China and Latin America, among others. This type of outsourcing to countries outside the US has been termed ‘offshoring.’ The offshoring of legal services has met with mixed success due to obstacles such as language barriers, time differences, quality concerns and ethical issues.

More recently, a new trend has developed. Sometimes termed ‘onshoring,’ a few large law firms with bases of operations in high-cost major metropolitan areas have begun relocating a variety of their back-office or support operations and employees to less expensive US markets with lower costs of living and wages as well as access to communities of potential new hires. Some firms have even created new tiers of lawyers such as 'career associates' in these markets. The evolution of legal outsourcing  will likely continue because it clearly can provide benefits for firms - when done correctly…   

Outsourcing Options and Opportunities - Part 1: Outsourcing Can Make Your Firm More Competitive

A recent article in the ABA Journal proclaimed, “Boom years for law firms were an aberration.” The article quotes information from a 2013 Client Advisory report from Hildebrandt Consulting and Citi Private Bank which predicts that the double-digit rate increases that occurred from 2001 to 2007 are over.

As proof, the article summarized information in the report confirming that “productivity is down among income and equity partners, expenses are up, clients are demanding and getting discounts.” As a result, future law firm success will likely be measured by “profit growth in the single digits.”

To succeed going forward, the article suggests law firms are going to have to do things like develop a growth strategy, practice good leadership, focus on key Clients, practices or industries and seek Client feedback. (I would add, “act on it!” to that last one.)

These are all radical concepts, I know. But the article also suggests that, to stay competitive, firms may need to rethink their business models to focus on efficiency, and to do this they may want to consider their outsourcing options.

This makes perfect sense. How many tasks are the firm’s key marketing and other professionals currently working on that are keeping them from their most important jobs of crafting and executing the firm’s strategy and helping the attorneys to develop business? The good news is that now there are some options to help law firms save time and money – and free up key staff members for more important and strategic pursuits… 

Your CRM Journey - Part 7: Rest Stops

Sometimes, when you are trying diligently to get to your ultimate CRM destination, the temptation can be to really ‘put the pedal to the metal’ and try to get there as quickly as possible. The problem is that when you do this, you may end up running out of gas before you get where you want to go– or you may find your team’s motivation levels 'on empty.'  

So slow down there, lead foot. CRM isn't a race. It's not about getting to the finish line as quickly as possible – especially since the journey is never really finished. CRM isn't a project or an initiative: it’s a fundamental change in the way your firm manages and leverages relationships. It’s a tool you will utilize well into the future to improve firm communication and coordination and enhance business development. So give yourself a break.

It’s important that you take a few rest stops during the rollout to get your bearings. Things sometimes change along the way that you may need to react to. New challenges or opportunities develop that were not anticipated when you originally planned the trip. Potholes may appear in the road. There may be mountains or valleys that you didn't anticipate during planning. When these things happen, you can't accelerate through them. Instead you need to pull over and just break out the roadmap again so you can plot a different route. 

Your CRM Journey - Part 7: Points of Interest

While focusing on your ultimate CRM destination is, of course, important, it can also be beneficial to check out the scenery along the way. You need to take a little time to smell the CRM ‘roses’ and relish your successes to ensure the journey is sweet.  

There are a lot of points of interest that can be…well, interesting. You may even want to plan in advance what sites you want to see. Think about what made you want to embark on the journey in the first place. What were your goals for this journey? What landmarks did you hope to see en route? Where did you hope to end up?

For instance, are there certain levels of adoption you want to reach? Are you interested in improving mailing lists or event management? Do you hope to be able to identify a certain number of relationships to enhance business development? Do you need to improve data quality as you move forward?

All of these are sites worth seeing. And when you arrive at one of these important points, you will want to memorialize the achievement by sending a postcard, so to speak. Communicate the successes with others at the firm to let them know that you have all worked together to reach a crucial milestone. 

Your CRM Journey - Part 6: Your Compass

Sometimes when you are on your CRM journey, you may get turned around.  You may even feel like you have lost sight of your destination. It can seem as though you’ve passed the same landmarks over and over again without making any real progress. You may even get so dizzy or disoriented that you don't know which way to go next.

At times like these, one of the things that can really help you stay on the right path is a good compass. By this I mean someone who you can turn to for guidance along the way. Your compass is the person who can point you in the right direction, even when you have gotten completely turned around.

This person could be a director or supervisor who sees where the firm is trying to go and who understands how CRM can help to get there. It could be a mentor at another firm or within the industry who has already blazed a similar trail. It could also be a consultant with significant experience and expertise who can help you create the roadmap and plot your course. 

No matter who you decide to turn to for direction, it’s essential that you find a compass who can help you to locate your ‘True North’ - CRM success.

Your CRM Journey - Part 5: Winding Roads

You may initially think that a CRM implementation or rollout would be straightforward. So many firms have gone down this road before that you wouldn't expect to have to blaze a new trail. 

But what you will often discover is that you may have to drastically alter both your expectations and your course. You might start out planning to go in one direction initially, but soon find out that you are moving in a completely different direction - or even doing a complete 180.

With CRM, one minute can seem like smooth sailing. The next, you may find yourself caught in a whirlwind just trying to stay afloat. At times like these, it’s easy to feel like bailing. But don't. Before embarking on your CRM journey, you need to understand that achieving CRM success can be a long and winding road. That path can be filled with peaks and valleys and littered with roadblocks.

This is because the goal of CRM is to help the firm achieve key objectives, and these are often affected by the winds of change. Things like variable market conditions, economic upswings or downturns and increased competition can cause a firm to require a course correction. And as that course changes, sometimes the CRM implementation needs to change to support the new direction. But for firms that stay the course and are able to change gears and get things moving in the right direction again, the CRM journey can end up being incredibly rewarding and can take them to places they didn't even have on their original itinerary. 

Your CRM Journey - Part 4: The Map

If you don't know where you are going, how in the world will you know when you get there? This is some sage CRM success advice. This is also the reason that for every CRM journey – from international adventures such as a full-scale firm-wide roll-out, to simpler treks like CRM enhancements, upgrades or data projects – you are going to need a good map.

Of course, because CRM is a journey - and one that never really ends - you can't really ever hope to 'get there.’ But without a map, you won't even know whether you are making progress. In fact, you might not even be aware if you are covering the same ground multiple times – or even going in circles.

Your CRM plan is your map. Before embarking on any CRM journey, you need to really think about where you want to go and the best way to get there. Because CRM often requires consensus building and behavior change, you may find out that the best way to get from point A to point B is not actually a straight path, but rather a winding road. You may also learn that because things are always changing, even the best maps often have to be revised. Heck, 29 new countries have come into existence since the 90s. (Really, how many people have even heard of Turkmenistan - forget about finding it on the globe?) 

You will also want to consider points along the way where makes sense to stop, rest, regroup – and plan your next move forward.