Law and Management

Innovation at times can go very wrong but as often as not the problem lies in Project Management and not with innovation. As a bit of a departure from the Corporate side and over to Government, there are very real examples of innovation, but innovation gone wrong through either a poorly conceived Business Case or in the Implementation Plan execution.

Take the example of the Gun Registry in Canada as an innovative strategic initiative geared to improving public safety. Now, it may not represent an example of a corporate catastrophe, but a catastrophe nonetheless and some lessons learned. How about some data to start with?

Handgun registration has been a federal Law since 1934. About 1000 people die in Canada every year from gunshot wounds. 80% are suicides, 5% are accidents and 15% are homicides. Still, Gun Registry represented an important Federal Government initiative for the Liberal Party.

Canadian taxpayers, for the past 14 years have paid over $2+ Billion to fund the failure of the Gun Registry Project with no improvement to public safety whatsoever. In the corporate sector there would have been Project Management Methodology to usher the Gun registry through to a successful conclusion and make key course corrections at each critical juncture with an ongoing focus on execution and cost containment benchmarks. Would it have been a far more cost effective project to exclude the long guns – rifles and shotguns? Absolutely.
Is that type of modification possible in the Canadian Parliamentary system? No, not with a minority government and not with a four party system in Canada that will forever prevent the possibility of majority government that has the power to make the changes required to a Bill passed by a party that is no longer in power. Although let’s also agree it represented both a poor Political decision as well as a classic example of project mismanagement.

How about another Government project gone wrong in Canada – this time in Ontario. In 2002 the Ontario Government decided to convert Ontario residents’ health records to electronic format. In a world where the electronic formatting of data is commonplace one would suspect that there would be very little downside risk to the project. Right? Unfortunately, innovation once again gone wrong. In an excerpt from an April 3, 2009 Toronto Star article, the plan has been abandoned at a reported waste of $642 Million in Ontario taxpayer money. The idea or concept of Ontario Health care records in electronic format was well founded; the execution or project implementation was abysmal.

These are two examples of severe project mismanagement at a total cost to taxpayers of $2.642 Billion at the time of a deep world recession when capital in all its forms is in extremely short supply.
In both Government and the Corporate sector there are some very simple rules to follow that would help ‘Recession Proof’ a business. The following is a simple set of rules that apply specifically to Information Technology (IT) Systems that are being considered for your organization.

o In the evaluation of a new IT system, never rely on a demonstration disc (demo disc) as the sole basis for the system selection.
o Never be the first organization to implement the newly developed system – far better to be at least the second organization or even third. User testimonials are a critical success factor and invaluable project research.
o Red Flag: any portion of the system functionality that is still ‘under development’ probably means your organization will become both the development and the test site.
o Go and see the system at a live site where it is actually operation.
o Be sure to discuss with any of the existing users the differences between their IT application and the application planned for your organization. Document and quantify the differences. They may be a deal breaker.
o Be sure your IT Project Manager is experienced in Project Management of the type and scope planned for your organization. Make the IT Project their full time responsibility.
o Within the IT implementation plan be sure to ‘Chunk It’ or break the project into manageable pieces with selected ‘check points’ for Senior Management and ‘go-no go’ provisions.

Research and Project Management is not the exclusive domain of the IT world – they obviously apply across all aspects of corporate endeavor.

The current recession is worldwide. It affects business and business decisions on an international, national, regional and local scale. It has often been argued however, that in recessionary times opportunities are at their zenith. Why? Some of the competition will fail; many will cut back or retrench. Almost all will become internalized and focused on the ‘now’ business.

The best advice is: don’t make any mistakes, none. Eliminate the words ‘I think’ and ‘I hope’ from the decision making process. Those words have unfortunately been followed some time later by ‘it seemed like a good idea at the time. Sound familiar?

Follow sound business process management guidelines in project or product research. The disciplines of Strategic Planning, Business Case Methodology, Product Development and Project Management templates are essential. It can be an exciting time and a great ride.

Retirement of a senior partner can be a major blow to a firm. The practice loses a source of legal wisdom, and clients are unhappy with the loss of a familiar face. In order to prepare for a smooth transition, firms must use the latest tools, including law firm accounting software and law practice management software, to create a strategic plan to handle succession.

Define Partner Roles

The first step in creating a succession plan is to document the roles and responsibilities of each of the partners. When a partner exits the practice, it becomes obvious what gaps will appear in the firm and the other partners can formulate a plan to redistribute these roles to existing partners, or to find someone to fill the position.

The duties laid out on paper may not be how the firm actually operates. Law practice management software can be helpful in this aspect because it tracks each attorney’s workload and ensures the defined roles are accurate. If a partner frequently operates outside of defined limits, either the partner needs to be corrected or the roles need to be redefined. In either case, an accurate picture of the division of labor in the practice will make succession planning easier.

Scout New Leaders

Many firms choose to recruit new partners after finding out a current partner is leaving. If no suitable talent exists within the practice, they are left to compete for the free agents in the job market or at a competing firm. This is a shortsighted and inefficient method.

Instead, law practices should be scouting for new partners from within their ranks. Grooming today’s junior attorney to be tomorrow’s partner is a process that can take six to ten years, so it needs to be started well in advance. Law firm accounting software gives the partners detailed reports on how individual attorneys are performing, showing who is getting more done with less, and how much revenue is being generated for the organization. Law practice management software allows senior attorneys to easily delegate duties to these rising stars, giving the junior attorneys the skills they will need to later succeed as a partner.

Compensation and Retirement Plans

Successful compensation plans reward existing attorneys for delegating their duties appropriately, which leads to more efficient operation, better training throughout the firm and building better client relations. Law firm accounting software tracks compensation and productivity, showing who is meeting company goals.

Retirement plans assist partners in the transition between active work and eventual retirement. It is common for “retired” partners to continue to provide services to the firm to help with the transition and with client retention. Law practice management software tracks these activities to ensure all parties are getting the most out of the arrangement.

As part of a firm’s succession strategy, all of these processes – the defining of partner roles, grooming of new talent and review of retirement and compensation plans – should be analyzed and updated annually so they always reflect the current state of the firm. Where possible, these processes should be integrated with the organization’s law practice management software for ongoing tracking and evaluation of the various elements of the succession plan.