Legal matter resourcing trends with Dave Cook


Dave Cook, Global Director - Resource Management at BigHand, analyzes the emerging trends in legal resourcing.

What you need to know

  • 43% of firms highlight career development as a priority.
  • 55% of firms have no or partial data on opportunities for associates.
  • Implement a data-driven approach to resource allocation, including reviewing historical utilization and ensuring visibility of lawyer skills and availability.
Transcript

Resource management expert Dave Cook gives his thoughts on the data from the latest BigHand research report, Emerging Trends in Law Firm Talent Management.

 

Law firms are using lawyers for more pro bono and secondment work during less busy periods. What does this trend mean for lawyer utilization?

Pro bono opportunities are always a fantastic opportunity for associates, maybe to get more experience of key areas to support their career development in a slightly safer environment than client chargeable work. It means that firms are able to put forward their commitment to pro bono matters and their pro bono strategy overall. So a positive message from the firm, whilst also giving the associates some positive experience.

The secondment side of things we've always seen happening in the legal market. There has been an increase due to the fluctuating volumes of client work that's coming through. But the opportunity for associates to go across to clients, to be based within the client environment, on a secondment basis, is an extremely positive experience for the associate, but really helps law firms to strengthen those relationships when there is far more of a competitive market underway at the moment. So a positive shift, in my view, from law firms to address fluctuation in utilization.

Do I see it continuing? Very likely, yes. It will always depend on the volume of client chargeable work that's coming through and how firms are utilizing their associates or managing their associates to make sure that client chargeable work is being done, but also they've got different outlets for associates to ensure they're adding value, and they are busy enough for the firms to remain profitable.

 

How can firms adapt to improve attorney development opportunities in a hybrid working environment?

I definitely agree that firms have seen that flexible working has a positive impact on staff loyalty. We do see issues for some of those firms that are taking a slightly harder stance on return to work policies, or the amount of days that attorneys need to be based in the office themselves. Having that flexible working structure in places is definitely a positive for the associates who are used to working in a slightly different way.

It does create those challenges in terms of the development of attorneys, and we're seeing firms approach that in a variety of different ways. There isn't an easy or quick or perfect solution that fits the needs of every firm and what we're seeing is that even practice groups within the same firms are taking slightly different approaches to how they're supporting that.

Some firms are taking an approach where they have set days where there are more senior individuals in the office, and encouraging the more junior associates to come in to spend physical time with those more senior individuals so that they can learn on the ground, in person, they can be part of the same calls, part of the same meetings, and ensuring that they're getting that knowledge transfer from those senior folks within the firm.

Others are taking an approach where they're shifting their online learning strategies so that they are taking more of a feed from the associates to understand what is it exactly that you need? What are the gaps that can be created by not having that physical interaction or office interaction with more senior individuals, and how can they tailor some of their learning programs to support that so there isn't a one size fits all in terms of getting that career development in place, or keeping that career development and progression in place.

But firms are reacting and trying a variety of different things to ensure that there is that knowledge transfer, and people are getting either the face time they need or the access to learning and development that will support them

 

How can law firms leverage key data on lawyer skillsets and availability to optimize resource allocation and ensure profitability?

I think there is definitely a far more competitive market at the moment, clients are demanding more from their law firms for less, and they're reviewing how they're interacting and how many firms they're interacting with. As a result of that, there has been a shift in terms of client attrition, or client changes and the volume of client work that's coming through. The fact that only 34% of firms review matters with with a focus on profit is a surprise in a market where there isn't the volume of client work coming through that they've experienced in more recent years.

The focus on profitability is absolutely essential for law firms to make sure they're maximizing every matter that's coming through, every opportunity to work with clients in terms of how firms are addressing that. There is a focus on making sure that they've got the visibility and, importantly, the data around individual lawyer skill sets, individual availability, so that they can really think about how they're structuring the resource profiles are on each and every matter for each and every client.

As a result of that, firms are able to look at increasing leverage on matters by making sure that they've got the right levels of associates that are working on on individual matters, and making sure that they've got the opportunity to allocate work based on experience, skill sets, and importantly, career development needs from a lawyer's perspective as well.

From an availability standpoint, we see law firms looking backwards in terms of historical utilization to plan for the future, and firms are realizing now that they need that forward looking view around availability so that they can plan more effectively and more efficiently for individual lawyers that have the right level of capacity as well as the skill sets to be able to deliver the client work that's coming through.

So we are seeing a shift, but the processes and the constant practices around reviewing matters based on profit and having that visibility around skill sets and availability to proactively plan for resource allocation, there's still some work to do in relation to that.

 

What advice would you offer firms as they adopt resource management technology?

The fact that law firms are now looking at work allocation and resource management technology to support how they're operating on a day to day basis is extremely positive. We've seen more and more firms really addressing that as priority and having the information and data available to make sure they're managing their resources as efficiently as possible and with client delivery absolutely front of mind.

What we do find in the market is that resource management technology in isolation and without an expectation or addressing the fact that there is some change management required when introducing this technology is something that we would always make sure that is front of mind for firms.

Typically, when you're introducing resource management technology, there is a little bit more of an ask from associates to provide the information that's important to run that technology efficiently. It's the same with any technology that's introduced, where there is that need for engagement, adoption and information to be put into the system, and that's something that we always advise firms to to get ahead of that.

So making sure there is the right communication strategy to the associates, to the partners, making sure that they're aware of what the benefits are to them individually, by putting in the minimal effort. It's not usually very much effort that's required to just make sure that the right information is in the technology so it can be utilized efficiently for the benefit of everyone that's introduced.

My advice to firms would be to choose the right technology that's going to have minimal impact on individuals administration time, but always make sure that there's an appreciation for the change management that's associated with the introduction of that technology.

About BigHand Resource Management

BigHand Resource Management is a legal work allocation tool that allows law firms to identify resources, forecast utilisation, manage workloads and add structure to career development for lawyers. The solution delivers real-time visibility of team availability, improved profitability on matters and supports DEI goals and equitable allocation of work.

BigHand Resource Management