11:30 - 12:30 - Breakouts
Small Firms, Big Markets
SPEAKER
Mary Vandenack
Vandenack Williams LLC
17007 Marcy Street, Suite 3
Omaha, NE 68118
Phone: 402-504-1300
FRIDAY
AUGUST 12
Mary E. Vandenack is founding and managing partner of Vandenack Williams LLC in Omaha,
Nebraska. Mary practices in the areas of tax, trusts and estates, asset protection planning,
business succession planning, and tax-exempt entities. Mary is a member of the American Bar
Association Real Property Trust and Estate Section (currently Vice Chair of the Small Firms
Committee), Taxation Section, and Business Section. Mary regularly writes and speaks on tax,
asset protection planning, and estate planning topics as well as on law practice technology,
management, and the future of the profession. Mary is a member of the American Bar Association
Law Practice Division, is a regular contributor to and on the editorial board of the Law Practice
Magazine, serves as Vice Chair of the Futures Initiative, Vice Chair of Resolutions and is on
Executive Council. Mary was the winner of the 2015 James I. Keane Memorial Award, presented
at the 2015 Tech Show. Mary was featured in the September 2015 issue of Fortune Magazine.
SMALL FIRMS - BIG MARKETS
SHIFTING FROM A TAXICAB MENTALLY TO AN UBER STRATEGY
1. The Taxicab Law Firm From the Consumer Perspective
 How do I know the attorney I am hiring has the skillset I need?
 Will I be able to communicate with this attorney?
 Is there a reason you can’t tell me how the process will happen and how long it will
take?
 What do you mean you can’t tell me how much it will cost?
2. An Uber Law Firm
 Attorney information and consumer satisfaction ratings are readily available.
 The process is made clear.
 Timing of the process is explained before the engagement is final.
 Pricing methodology is clear.
BIG DATA ISN’T ONLY FOR BIG FIRMS – SMALL FIRMS CAN USE BIG DATA TO
GAIN A COMPETITIVE ADVANTAGE
1. What is Big Data?
 Generally, Big Data is used to refer to the significant volume of unstructured data
that is available to law firms.
 More technology results in more data.
 The Four V’s of Big Data
o Volume
o Velocity
o Variety
o Veracity
2. The Value of Big Data
 Better decision-making can be made based on well-organized data.
 Even small law firms struggle to share data throughout the law firm.
 Creating a Strategy to organize and use data creates the “uber” advantage.
 Look at more data as more opportunity rather than more work.
3. Possible Uses of Big Data For Law Firms
 Predictive Analysis
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o Link together cases of like kind to predict possible outcomes and
profitability.
 Pricing
o Use data to develop price strategy.
o How many times have you handled a certain type of case?
o What were the outcomes?
o What was the cost to the client?
o What were the internal costs and thus profitability to the law firm?
 Capturing Contacts
 Review Documents and Emails to ensure that you have captured contacts into
your database and contacts.
 E-discovery – helping you find what is important
 Case Reviews to Determine How Certain judges have typically ruled (Judge
Analytics software such as Ravel Law and Lex Machina)
 Examine Opposing Counsel’s History
 Support for decision-making regarding a settlement offer
 Determining whether a contract clause is standard for contract type/industry
 Capturing Client Reactions to Communications, Bills, Services
 Accumulating Unique Drafting
 Accumulating Provisions you like from other lawyer’s documents
 Identifying That Which Can be automated
o The mindless tasks typically that result in high turnover rates of associates,
paralegals and administrative staff can be identified for automation. (Is
anyone in your office still manually entering data that can be imported?
Then – stop it.)
4. Big Data Strategy
 Have a Clear Strategy
 The data is endless (and mining it can be expensive) so selectively choose a use
of data that comports with your strategic plan and goals.
5. How Can Small Law Firms Take Advantage of Big Data Opportunities
 Implement a Knowledge Management Strategy
KNOWLEDGE MANAGEMENT STRATEGY
1. Knowledge Management Strategy (as distinguished from knowledge management
itself) is becoming one of the most valuable and strategic resources for law firms.
2. Knowledge Management Strategy is an approach to knowledge management that
aligns knowledge management with business goals.
3. Develop a Knowledge Management Strategy appropriate for your firm size and
practice type.
 Knowledge is the most strategically important resource and learning the
most strategically important capability for law firms.
 Knowledge Strategy requires that you can articulate the link between
knowledge and strategy.
4. Aspects of Knowledge Management Strategy
 Capturing Processes
 Developing new ways to support capture, storage, retrieval, and distribution
of an organization’s knowledge.
 Capturing Knowledge that exists within peoples’ heads
5. Be Clear About Business Strategy (law is a business!)
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
Consider a SWOT analysis to identify the firms’ strengths and weaknesses.
(Every law firm says it has experience and great client service. Determine
what your true competitive advantage is and if you don’t have one, create
one.)
o What are industry opportunities?
 Underserved, overcharged markets
 New legal services
 Milennials
 Aging Baby Boomers
o What are industry threats?
 Alternative legal providers
 Legalzoom
 Artificial Intelligence
o What particular skills does your firm have to take advantage of
opportunities? What skills are needed to overcome threats?
o How can you strategically position your firm? How can you take
advantage of internal resources?
6. Once you have a business strategy, design a knowledge management strategy
that supports the business strategy.
 Example: You decide that you are particularly situated to provide start-up
services to entrepeneurs. Your knowledge management strategy might
include:
o Creating checklists outlining the process for forming various types of
entities.
o Automated Forms to readily create the documents needed to support
entity formation and the related needs of a new business. This will
allow rapid response, accuracy, and a cost effective fee structure.
o Keep up to date research resources available with information that
will be useful to entrepeneurs or to the attorneys supporting the
entrepeneurs.
 Create a habit of saving information on resources for capital, information
about start-ups in different industries, valuation information for different
industries, regulatory issues encountered by particular industry types,
available federal and state tax credits related to capital expenditures or
hiring employees.
 A small firm may not have a librarian so the small firm has to have all
lawyers and staff engaged in the process of knowledge management. Make
it easy.
o Create a section in your document management system that is just
for your firm library. Divide the section into major categories and
subcategories. Structure the system in a way that avoids duplication
of efforts.
o Develop a memo that explains the system.
o Train attorneys and staff.
o Have someone designated as the knowledge management police
person.
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TURN YOUR WEBSITE INTO A CLIENT TOOL
1. Many law firm websites are simply a repository for attorney profiles and services
of the law firm.
2. Turn your website into a tool that clients engage with.
 Different consumers want different types of information. Deliver the same
information in different ways – a scholarly article for the retired professor, a
one minute video for the short video consumer, blogs for those who are
somewhere in between.
 Create secure client portals that clients can access through your website.
 Allow clients to upload documents to you through your website. (They have
their own login and password to do this.)
 Allow clients to initiate legal processes through your website. Do so with
intake forms. Most attorneys have an intake form for most services they
provide. Put it on your website.
 Create a blog and connect the blog to your website. You can still set up
blogs for free using wordpress and other similar providers.
USE ALTERNATIVE FEES AND MAKE THEM PROFITABLE
1. TYPES OF ALTERNATIVE FEES
 Flat/Fixed Fee – A specific amount is quoted for an identified service (e.g.
trust, power of attorney, contract review). A flat fee can also be provided for
segments of total services. A flat fee can be combined with hourly or
contingent fees.
 Percentage Fee – A percentage fee is based on a percentage of an amount
involved in the project. For example, it is fairly common to see probate
attorneys charge a percentage based on value of estate. Some attorneys
charge a percentage based on transaction size for real estate transactions
or a bond issue.
 Fee Range – A fee range is provided that includes a minimum and
maximum. This type of fee may still rely on billable hours but provides the
client information about the expected cost. A fee range should clarify what
will result in the fee being on the lower or higher end of the range. It is
important to let clients know where they can take action that will help control
their own costs. It is also important to be clear what would be outside the
scope of services provided in the fee range and that separate fees would
be quoted for those additional services.
 Fee caps – Hourly rates are charged up to an agreed maximum. This
arrangement creates the risk of diminishing the quality of service when
maximum is exceeded but some firms consider this an important approach
in obtaining certain types of work.
 Blended Hourly Rate – Rather than using a different hourly rate for all
providers, one rate applies for all hours billed to a matter. (This is more
typically an approach found in large firms.)
 Task Based Fee – The task based fee is essentially a variation of the flat
fee but takes a complex project involving many steps and breaks the project
down into tasks and assigns a fee to each task in the process.
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Availability Retainer - This is typically a set amount (often paid monthly) for
which the attorney agrees to be available to handle certain types of issues.
This type of retainer is sometimes used to provide a base level of certain
human resource services.
Pure Contingency Fee – Law firm receives a fixed or scaled percentage of
a recovery in a lawsuit. A contingent fee may be combined with a flat fee.
Partial Contingency/Success fees – Firm receives a base amount of fees
that is not subject to contingency and the balance of the fee is dependent
on success. Such fees can be used in a lawsuit or in relation to a business
transaction.
Risk Collars – Hourly billing arrangement is used but bonus is paid to law
firm for being under budget. Client receives a discount if firm goes over
budget.
2. HOW TO MAKE ALTERNATIVE FEES PROFITABLE
 Have a Strategic Plan
 Understand Client Perception of Value
 Connect Client Perception of Value to Fees Charged
 Know Your Business. Know your Competitive Advantage
 Take Steps to Increase Your Value
 Know Your True Cost Relative to Each type of Legal Service you provide
 Develop tools that break down the processes for your services.
 Use your billing system to capture data.
 Engage In Knowledge Management
 Look for Opportunities to Automate
 Price Less Cost = Profit
 Break Out and Value Each Aspect of a Legal Project.
 Develop Niche Practice Areas.
 Automate Commodity Services. (or don’t do them)
 Improve Realization Rate.
 Reduce Cost per unit of service.
CONSIDER ONLINE DELIVERY OF LEGAL SERVICES
1. Your clients ARE using legalzoom and other such services.
2. You can choose to let that happen or get in the game.
3. To successfully offer some services online, you must:
o Have a clearly defined laid out process for the particular service to be delivered
online.
o You must have automated forms.
4. Once you have that, you can allow clients to enter the information for the documents
online, have a simple program written to link the data entry to your automated document
system and have the documents land in your paralegal’s inbox.
5. When adding an online presence, distinguish yourself by a touch of personal service that
your clients can’t get from legalzoom.
BE A LEGAL DISRUPTER
1. Constantly Question. What are the assumptions that drive the way we practice? How can
we disrupt them?
2. Be Future Oriented. Constantly consider what is next. Refuse to be complacent.
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3. Defy Tradition. Innovate. Innovate. Innovate. What can you do to make your law firm
uniquely successful?
4. Adopt a Start-up Mindset. Seek unconventional solutions assuming limited resources.
5. Push Boundaries. Consider significant transformations.
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