This article appeared in the January 31, 2001 edition of the INDIANA LAWYER.

 

Office consultant focuses on needs of smaller firms

By Kelly Lucas

E-mail: mail@ibj.com

Advances in computer technology and office automation have helped to bridge the resource gap between large and small law firms. Many of the office systems and legal resources once considered cost-prohibitive to smaller law firms are now attainable for most.

While size doesn’t necessarily matter when it comes to running a law firm, experience does. Today. computer networks, billing programs and electronic communication are an integral part of office administration. Law offices must not only he able to afford these new tools of the trade. attorneys must be able to use them.

"With today’s low computer prices and the use of the Internet, even the smallest firm can afford to be technically competitive with the large firm," said Indianapolis attorney and law office administrator Robert Badger. "The problem is that the competition in the computer industry, both with hardware and software, is so fierce that attorneys new to this type of technology do not know where to begin."

While Badger agrees that most lawyers are bright enough to read through the plethora of magazines and newspaper articles and make an intelligent decision about technology, he questions whether doing so is the most cost-effective way to do business. If that lawyer is billing at $150 per hour, he asks, how much money is lost in those hours of reading?

Badger has made a career out of helping law firms integrate automation into the practice of law. His resume includes tenures with the Indianapolis offices of Baker & Daniels, Hill Fulwider McDowell Funk & Matthews, and Rubin & Levin P.C.

"The one thing they don’t teach in law school is how to run a law firm administratively." Badger explained: "If they have a good practice, they don’t have the time to do the administrative part."

That is where Badger comes in. In January 2001. he launched Professional Office Consulting, an administrative consulting firm geared specifically to firms of I5 attorneys or less.

While small firms dominate the legal landscape. the majority of law firm administrators are employed by larger offices. According to the Association of Legal Administrators, two-thirds of the association’s 9.333 members work for firms of 15 attorneys or more.

Integrating technology and finding the software that is right for different practice areas is one of the newest challenges facing law office administrators. But it is just one of many tasks on the administrators plate.

Indianapolis attorney Gordon Tabor brought Badger in to help his seven-attorney firm evaluate its administrative operation.

Bringing an outsider in who had experience in law firm administration brought an objective informed voice to the process, he said.

"We reviewed our salaries, medical benefits and pension plan to determine if we were competitive in the marketplace with our staff, Tabor explained. "With health insurance, for example. there are a lot of options out there and exploring them takes time away from the practice of law. It is more efficient for us to concentrate on practicing law and to get advice from an outsider like Bob, an attorney and experienced administrator, who has extensive knowledge in these areas.

Tabor sought Badger’s expertise on other issues, including the drafting of a partnership agreement and. of course, efficient computerization of the law office.

"The amount of time required of any law operation to stay abreast of computer programs available in your practice area is substantial. Tabor added. "Bob had numerous ideas on how to more efficiently run a personal injury practice with computer programs, and he knew the right programs to recommend. -

Indianapolis attorney George Rubin is used to having Badger around the office. While Badger will no longer serve as Rubin & Levin’s in-house administrator, he is continuing to work with the firm on a consulting basis.

"Someone like Bob takes the day-to-day administration of the firm out of the attorneys’ hands, allowing the lawyers to practice law," Rubin said. In the absence of an administrator, Rubin estimates that he would spend close to one-third of his time on administrative tasks.

In addition to benefit packages and computer needs, administrative duties may include payroll, purchasing procedures, bookkeeping and accounting, time and billing, hiring and termination procedures, telephone systems, Web-page design, and interoffice and electronic communication.

Serious mistakes can occur, Badger cautions, when an attorney gets busy with the practice and overlooks administrative details.

One of the biggest mistakes the attorney/administrator sees lawyers commit is the co-mingling of funds. While most know that they must set up a trust account to hold a clients retainer, he explains, some forget or just get busy and may deposit those in the firm’s general checking account.

Another unfortunate situation he sees firms dealing with is employee theft. In both cases, he said, there are simple practices that can be set up to protect the firm, lawyers and employees.

In 25 years you learn this stuff,’ Badger said. "but you don’t learn it overnight. Mv value is that I have the resources in all facets of administration to know who to call, if a specialist is needed, and how to get the job done.’.