2009 Practice Management
Annual Conference
Leveraging the Value of LNTPA in a
Challenging Economy
Nancy Griffing
2009 Practice Management
Annual Conference
Nancy Griffing
• B.A. University of Delaware, Graduate work Widener
University
• Legal Technology Specialist since 1988 in Houston,
Texas
• Frequent presenter State Bar of Texas
• President of The Griffing Network a 12 person
consulting group located in Houston, Texas
• A Proud Member of 35-45 Group, LLC
2009 Practice Management
Annual Conference
Traditional Leverage and Law Firms
Leverage is the ratio between
Full Equity Partners ÷ (Associates + Non Equity Partners)
Conclusion: The higher the number of associates a firm
has relative to the number of partners, the more
leverage. More leverage translates to higher income
per partner. The larger the firm is, the higher the
leverage ratio. Clients accept the rates of Associates
and Non Equity Partners as a cost of doing business to
reach the talents of the Full Equity Partners.
2009 Practice Management
Annual Conference
ABA Journal
Law Practice Management
High Law Firm Leverage a ‘Combustible Combination,’ Expert Says
Posted Jan 5, 2009, 07:38 am CDT
By Debra Cassens Weiss
A law professor says changes in law firm structures are contributing to high labor costs and financial problems that are
causing some firms to crumble.
Law professor William Henderson of Indiana University told the Chicago Tribune that one problem is higher leverage. The
average large law firm has 4.3 associates and nonequity partners to every equity partner, an increase since 2000 when the
ratio was 3.65 to one. The ratio means high fixed labor costs and declines in revenue per lawyer, a “combustible
combination,” he told the newspaper.
Henderson also says the largest law firms often had only 500 lawyers 20 years ago, but now they may have up to 1,500
lawyers spread out across several offices. "You have pretty weak glue holding these bigger enterprises together,"
Henderson told the newspaper.
Henderson says large law firms are “immensely fragile institutions” and predicts that more will dissolve in 2009. The Tribune
article makes three other predictions for big firms. They are:
1. Law firms will continue to get smaller.
2. The “glory days” of lockstep pay hikes and bonuses will come to an end.
3. Firms will re-evaluate their capital structure. The move follows DLA Piper’s decision to invite non-equity partners to
become equity owners.
2009 Practice Management
Annual Conference
Economic Leverage and Law Firms
Leverage is utilizing any or all of the following:
• Experience of Similar Firms through Associations
• Outsourcing
• Flat Fee Billing
• Coaching and Mentoring to develop Leadership Talent
• Marketing Efforts Relationship
• Paralegals and Contractors
2009 Practice Management
Annual Conference
Economic Leverage and Law Firms
Leverage is utilizing any or all of the following:
. . . AND
• Technology
2009 Practice Management
Annual Conference
LNTPA – Leveraging Email
• Email Management using Outlook Link to LNTPA
• Synchronization of Outlook to LNTPA using Exchange
Synchronization
• Organization of Folders to accommodate automatic
filing
2009 Practice Management
Annual Conference
LNTPA – Leveraging Document
Management
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Formulas for saving documents carefully
Drag and drop Strategy
Validating linkage
Validating compliance
2009 Practice Management
Annual Conference
LNTPA – Leveraging Access to Data
3 Clicks or Less
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Power Views
Journal Views
Navigators
Management Information from PCLaw/Juris