Key Duties of a Law Firm Operations Manager
A law firm operations manager may be among the least understood or appreciated members of a law firm’s leadership team, yet performs an essential function in managing the organization’s operations. The scope of responsibilities attached to a law firm CCO can be vast, but in general its responsibilities include oversight of firm human resources, management of the firm’s facilities, and enhancing the recruitment and integration processes for personnel. Among the key duties and responsibilities that a law firm operations manager usually handles are:
Team Management
Among the most critical duties of a law firm CCO is supervising the work of executive team members in the human resources, facilities and administrative functions of the firm. This includes recruiting, interviewing and onboarding new staff members, performance management of existing staff, task assignment and oversight, as well as the management of employment-related legal issues . The firm’s CCO is one of the few management-level employees who will have a voice in almost all discussions and decisions relating to its staffing and personnel.
Workflow Optimization
The law firm CCO is also responsible for identifying and helping to implement process improvements within the firm’s operations. CCOs are often in charge of recommending software solutions, developing internal protocols and documenting existing and proposed workflows. A law firm’s CCO will likely also be tasked with communicating proposed changes to personnel and seeing to it that personnel are adequately trained on new procedures.
Resource Allocation
A law firm operations manager will also have a role in determining how firm resources are allocated and managed. This is true both in terms of financial resources, including a firm’s budgeting processes, but also in terms of human resources by training existing personnel and hiring new staff.
As noted above, every firm’s CCO will also have some role in a firm’s kite flying and forward looking functions.
Skills Needed to Succeed as an Operations Manager
A successful law firm operations manager embodies a diverse range of critical skills that enable them to proficiently manage the firm’s day-to-day operations. These encompass the following:
Organizational Capacity – A law firm operations manager must be the consummate organizer, holding the innate ability to prioritize responsibilities, tasks, and deadlines. This is crucial, as it enables the effective management of workflow and the timely completion of projects.
Leadership – An operations manager is charged with leading all aspects of law firm operations. In addition to possessing the ability to offer inspiration and direction to co-workers and staff members, a law firm operations manager must be adept at delegating necessary assignments and executing the supervisory task.
Communication – Law firm operations managers are responsible for liaising between the law firm and clients, overseeing all communications and messages. It is essential that operations managers possess exceptional verbal and written skills, and demonstrate clearly effective interpersonal aptitude.
Knowledge of Law Firm Processes – The operations manager is responsible for overseeing the work of the firm’s support staff, which includes paralegals and legal assistants. As such, it is essential that the manager possess extensive knowledge of law firm processes in order to supervise the quality of output and facilitate the completion of work assignments.
The ability to balance these vital skills will determine the effectiveness, professionalism, and overall quality of a law firm operations manager.
Common Issues for Law Firm Operations Managers
The ability to navigate the challenges of firm growth is a critical competency for the law firm operations manager. Growth can take many forms. For example, what if the firm decides to grow aggressively by entering into new markets? The operation manager will have a lot of work to do indeed. A number of new firm offices are likely to open in various locations in one fell swoop. It does not matter whether the office is in a different country or just down the street from the current headquarters. Many considerations will come into play that range from regulatory to cultural. Firm and IT cultures will have to be acclimated, or aligned. IT infrastructure, software applications, computer equipment and systems will have to be integrated and aligned. Inevitably, security and compliance issues will come into play. A new market will evoke changes to security protocols, IT testing, and management of personal information. When growth is of this type and magnitude, the operations manager has to think about how to give effect to the firm’s strategy and vision while also managing and actually accomplishing the consolidation of the operational infrastructure. Responsibility for organizing everything from the server farms to the fiber optic cables, from office move trailers to the onboarding of hundreds of employees in anticipation of future growth — all of these things traditionally fall or are made to fall on the operations manager’s shoulders.
Another important area where challenges will be faced in law firm operations is in the area of change management. Change management requires seeing the bigger picture and being aware of how proposed changes will affect the firm in its entirety. Most law firms are built on a series of institutionalized practices and procedures that developed over time. Employees become comfortable with them, often seeing them as critical to their continued productivity and the viability of their job function. Thus, getting change made can be a challenge. The operations manager must welcome the challenge and help sell the benefits of change to everyone in the firm. Compliance with the management’s agenda can be driven by building consensus for the change, i.e., helping people see the merits of the proposed change. The results will speak for themselves. In addition to selling the benefits of proposed changes, the operations manager is going to have to mitigate and manage resistance. He or she will likely need to develop strategies for addressing the lost productivity that follows moments of change. Even if the changes will only result in increased efficiency, account for the fact that when it comes to change, the rule of thumb is: slower at first and faster later. Another strategy for dealing with resistance to change is for the operations manager to take the time to motivate individuals who tend to shy away from it. The operation manager can do this by helping them see the value of the change to them personally in terms of their work processes, their efficiency or perhaps the bottom line. Essentially, what must be done is to help people realize that they can continue to be successful after change by mastering the new practice, process or procedure.
Operations Management in Law Firms and Technology
Technology can have a significant impact on the operations of a law firm, and it can greatly accentuate the role of the Director of Operations. Automation of administrative and basic legal services streamlines processes, saves time, and increases billing and collection efficiencies. The most important technological advances that the Director of Operations should track in an employment context are: the implementation of new legal software by the firm; the implementation of new technologies related to the protection of the firm’s data; the implementation of new technologies enhancing support of administrative functions.
The ability to track the metrics of the firm allows law firm management to make more informed data-based decisions. Technology has made paper invoices a thing of the past. All invoices are sent electronically, dramatically improving the collection of account receivables. Clients can even pay their invoices with the click of a button, in some cases with legal billing software allowing payment of retainers by the client before the engagement begins . Law firms should consider providing clients with online portals allowing them to interact with the firm, like getting copies of documents (opinion letters, for instance) or making payments online.
The implementation or change in client billing software can have a huge impact on operations and administrative departments, like accounting and human resources. Some engagement agreements require invoices to be sent within a certain number of days after work is completed. A change in client billing software may necessitate a change in several internal processes at the law firm. For example, the Director of Operations must ensure that administrative staff knows to change their process in order to meet the 30-day requirement (if that is the requirement) from the completed work to when the bill is sent. Failure to comply can require payment of interest to a client, which then is a cost to the law firm.
Law Firm Operations Management Best Practices
To maximize the effectiveness of law firm operations management, law firm operations managers can implement strategies and best practices that not only enhance efficiency but also contribute to a positive work environment. Here are several proven approaches for law firm operations managers:
- Streamline Processes: Operations managers can identify areas where processes can be automated or streamlined with technology, such as using document management software to reduce paper use and make it easier to find information when needed.
- Encourage Open Communication: Employees who feel as though they have input into their work environment will stay longer. By having an "open door" policy with employees, it allows for issues to be discussed before they become bigger. And lastly, this also opens up the dialog for those employees who may have an idea or suggestion they would like to offer to help bolster productivity.
- Continual Training: Laws and regulations are always changing, so your team should also be aware of how those changes will affect your practice from both a legal and an operational standpoint. Most state bar associations also offer seminars, workshops, and symposiums, some which allow your team to earn CLE credits.
- Foster a Supportive Work Environment: Everyone has a bad day or two throughout the course of a month, but it’s important to ensure that whatever is going on in your team member’s home life does not affect the work they perform for your practice because that will not only cause tension with others but also affects their productivity. You can reinforce the idea that we all have periods of poor production and that it’s important not to dwell on it if you haven’t had the same production as the previous months.
- Conduct Regular Evaluations: Whether it be quarterly or bi-annually, conducting evaluations offers an opportunity to gather feedback from employees on ways to improve efficiency. It also provides the employee an opportunity to speak their mind and offers a neutral platform for the employee to air their grievances. By creating this amicable relationship between the staff and management, you also give them a forum to bring up topics or ideas that may be of interest to the management team.
Implementing these strategies into your Law Firm Operations Management will ensure that the long-term health of your firm can be your central focus, whether that be in 3-6-12 months down the road.
Future Trends in Law Firm Operations Management
As the legal landscape continues to evolve, the role of the law firm operations manager is likely to be further transformed. Here are some possible trends that may impact law firm operational management in the coming years:
Growing Importance of Technology: As technology continues to advance and become more pervasive in the operations of law firms, the role of the law firm operations manager will likely require an even greater focus on technological familiarity and adaptability. Operational managers will need to stay ahead of the curve and be able to identify and implement new technologies that can enhance and streamline internal business processes. In addition, these decision-makers may also be tasked with scrutinizing the tools and applications attorneys use for research and drafting that create unnecessary overhead. Client Expectations and Relationship Management: The role of the law firm operations manager will likely intersect with client-focused activities including client reporting requirements and relationship management. Whether it’s a dashboard to track the productivity of outside counsel over time or periodic reports on the firm’s performance metrics, large clients are increasingly demanding data to improve the management of their legal portfolios. Law firm operations managers will be tasked with identifying and implementing new tools to provide these clients with relevant reports and information as easily as possible , while continually evaluating these tools against the competing products offered by law firms around the country. Generational Changes and Demographic Shifts: The ongoing demographic shifts occurring in the legal profession will create challenges for the law firm operations manager but will also give rise to new opportunities to engage with attorneys in novel ways. Law firms are increasingly using digital tools to streamline and automate routine tasks, and this trend will continue as younger attorneys demand these tools and practices. The law firm operations manager, in collaboration with other firm leaders, will need to proactively identify, adopt, implement, and support new technology in a way that accommodates (rather than alienates) the older, more traditional attorneys at the firm—often in a way that doesn’t interfere with the inherent tendency for younger attorneys to go it alone without using the available tools. Financial Considerations: Many law firms are exploring alternative fee arrangements in order to provide clients more certainty and predictability with their spending. However, implementing these pricing structures can be tricky, and there is no universal or consistent method used to define the scope of the value to be delivered in exchange for a fixed fee or success-based retainer. The law firm operations manager will need to be a key player in identifying what types of tasks will be subject to alternative pricing arrangements, how hourly rates are to be translated into fixed fees, and how the firm’s profitability is to be tracked for each case.