Saturday, March 30, 2013

Contemplating a New Project

Mr. Smith,


The technological product I am evaluating for our firm today is one that is being increasingly utilized in the legal community, Microsoft Project.  Microsoft Project is a project management software program designed to aid in the development of a plan, assigning resources to tasks, tracking progress, and analyzing workloads.  A recent survey by ALM legal intelligence reports that 56% of respondents were either currently using or seriously considering using professional project management software.  Among those surveyed, MS Project was the most popular selection with many citing their familiarity with Microsoft products as the impetus for purchase.  


It is true that in the past our attorneys have been resistant to the implementation of a project management software because of the increased scrutiny from being tracked and the level of detail they were required to disclose in order to properly delineate effective project milestones and planned completion dates.  However, the changing demands by clients for accountability and alternative fee structures makes a tool like Microsoft Project more relevant than ever.  The goal of our attorneys historically to increase billable hours has led to a philosophy that efficiency takes a backseat role to increasing the quantity of work done.  The emergence of alternative fee arrangements that cap billables, assign a flat payment, or penalize case resolutions past a specified deadline have created a very significant incentive for our firm to increase our productivity.  Micorsoft Project is a tool we should consider to increase our productivity and ability to work together as a cohesive office unit to fulfil client obligations in a tighter timeframe with set resource constraints.  


One of the benefits of using Microsoft Project as a project management solution is its integration with other products from the Microsoft product suite that we already employ, such as being able to easily transition data from Word or Excel into MS Project.  Additionally, Microsoft Project uses an interface very similar to its other programs such as the proprietary ribbon tool, which would make it easier to acclimate our administrators and lawyers to this new piece of software.  Having a tool in place to create case-specific project plans that fully illustrate what every portion of the case demands with regards to actual tasks and necessary resources could be a way for our firm to become better organized internally and possibly demonstrate the efficacy of our operations to our clients.  Also, using a program like MS Project would enhances communication and clearly depict a centrally managed schedule.  This collaborative and easily located schedule would be our alternative to relying on shared schedules through outlook and should generate greater overall efficiency in our case management.  


The cost of adopting Microsoft Project is relatively straightforward with the standard version costing $589.99 per installation and the Professional edition increasing to $1159.99.  Although in my previous technology recommendations I have generally opted for purchasing the Professional edition of products(Ubuntu Desktop for Business, professional premium themes for blogging, etc.), after analyzing the differences in the two programs I feel confident in saying that the features that accompany the standard product should satisfy our project management needs.  The capability to build scalable solutions or use enterprise outline codes to analyze time-phased data seems to be superfluous for our organization.  If we were to acquire licenses for all 20 of our employees it would sum to a total of $11,799.80.  Considering that managing attorney resources falls under the auspices of our current administrators, I do not feel it would be necessary to enlist outside help to manage Microsoft Project.  However, we should allocate 5 hours per administrator and attorney to become comfortable with the software and any new functions they would have to perform while using it.  With 11 combined paralegals, secretaries, and general office workers making an average of $16/hour that would create a cost of $880.  For our 9 attorneys who would potentially not be able to generate billable hours at  an average billable rate of $200 per hour would create a total cost of $9,000.  This brings the total cost for a Microsoft Project implementation to $21,679.80.


While this cost of adoption is significant, it is overshadowed by the potential income our firm could generate by creating greater efficiency in project management and the additional business we could attract by demonstrating to clients our firm’s ability to better meet deadlines with a more proper management of our resources.  If using a comprehensive project management tool could eliminate administrative redundancies in case management and scheduling to make our administrative staff overall 1% more efficient, our firm would maintain a savings of 0.01*288,000=$2,880 (11 workers at an average hourly rate of $16/hour for a combined 360 hours per week or 18,000 hours totalling 288,000).   Understanding that many of our clients such as school boards are dividing their work between us and our competitors and that they are under increasing pressure to only enlist the services of resource efficient firms that can effectively resolve cases in a minimal timeframe, if our dedication towards MS project could influence our clients to hire our firm for 125 more hours a year that would create revenue of 125 hours X $200/hour average billable rate=$25,000.  This sum estimated revenue of $27, 880 would be a recurring benefit each year, while the $21,679.80 would be a one time expenditure and loss of productivity that would be isolated to the date of implementation.  


The figures that I have postulated may be rough sketches as to how the adoption of MS Project would create a net benefit for the firm, but they also represent a significant and necessary shift in our operations to accommodate a shifting landscape.  As alternative fee assessments become more prevalent, it only creates a greater impetus for our firm to be able to have a streamlined project management system that could most greatly profit under a fixed fee or missed timeframe penalty fee structure.  I recommend that we begin acquiring the licenses and software for Microsoft Project and start to introduce our administrative staff to its interface.  Although there is always risk in integrating a new technical component into the daily responsibilities of our legal staff, this particular program will lead us towards being more cost, time, and resource effective, and ultimately of better service to our clients.


Thank you for your time and consideration.  



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