With Covid-19 continuing to change the way in which law firms operate, many are asking whether a reliance on fixed overheads should be shelved and instead replaced with increased flexibility that outsourcing can achieve. Andy Poole interviews Bill Kirby to explore why he is an advocate of the concept of outsourcing.
1. Before we turn to outsourcing, could you summarise your background and your involvement in the legal sector?
For the past 15 years, I have provided consultancy advice to law firms on strategy, business management, IT and business development. I also provide advice to law firms on selecting suppliers and am a non-executive director for law firms and suppliers to the sector. Prior to that for 10 years I was a Director at a UK leading software house for law firms covering Practice Management Software and Case Management Software. My experience in accounting, sales, marketing, general management/directorship in IT and general commerce (UK and International) and BA Hons in Business Finance, really helps me to deliver well-rounded commercially effective advice to law firms.
2. Why are you an advocate of outsourcing? What are the specific benefits that outsourcing might bring?
Law firms need to meet increased client demands. To do that, they need to have the necessary skills and resource availability and need to be business-savvy re delivering on their strategic objectives and their profitability and working capital targets. They therefore need flexibility, particularly in times of potential peaks and troughs. Outsourcing can provide the opportunity to meet varying demand in terms of timing, location and of skill-set/experience. In some cases skills and processes may be needed 24 hours a day for 7 days a week, and in other cases only for say 2 days a month. Outsourcing means that heavy overheads can be avoided when not needed all of the time.
3. What can be outsourced in a law firm?
Just about everything. Either 100% or in line with the business needs. Developments in technology now enables it far more than was previously the case. Examples include:
IT and telephony infrastructure to meet the demands of 24x7, flexible and remote working, security. Plus limited capital outlay, extended life for PCs and predictable costs per user per month.
Telephone answering – either all of it or to cover peaks and out of hours demands from clients – firms can no longer operate 9am to 5pm with an hour for lunch.
Document production – transcription and things like Excel/Powerpoint to meet client demands and expectations with faster turnaround. This can be a big time and cost saver.
Legal skills that do not exist sufficiently in the practice to enable a full service offering to clients.
Legal and support skills that are needed for peak work – this enables the firm to meet demands but also not over commit its own resources.
Part time Finance Directors can help to enable all firms to have sufficient strategic and financial skills - but without the full overhead.
Accounting and bookkeeping (all or part).
Non-Executive management skills for commercial strategy and management guidance - but without the full overhead.
Business development and marketing activities – all or part of the role but sufficient to produce and enact marketing plans for maximum effect on existing client development and new business generation.
Image and website content generation.
Inbound enquiry management and resourcing - meeting the need of clients and prospects when they want it and by willing and skilled participants, leaving fee earners to earn fees.
Website chat boxes – this is a newer craze and is fast growing.
4. What tips have you got for law firms looking to outsource?
Have a very open review between the business owners to consider the skills, resources and momentum within the firm to meet the strategic objectives and business demands.
Recognise the necessary shift in working practice and get people on board.
Recognise the significant benefits of paying for what you really need as you need it – shift as many fixed overheads into direct variable costs related to activity and revenue, thus protecting profit and cash flow.
Be careful when selecting suppliers – perform due diligence and check they have a legal track record and that they provide quality services in a compliant and secure manner.
