Australia: Waste not, want not – the modern lawyer: a garbage collector?

Last Updated: 16 March 2017
Article by Dean Cupac

In the second part of HBA Legal's three-part series, we take a look at the management philosophy Lean Six Sigma and how it can operate in law firms.

Henry Ford believed that "it is not the employer who pays the wages. He only handles the money. It is the product that pays the wages"1. Ford, who eponymously formed a manufacturing company in 1901, pioneered integrating an entire mass production process. After the Second World War, we saw a small auto manufacturer in Japan named Toyota transform its company into the largest car company in the world. 'Lean manufacturing', a management philosophy, is much of what was behind this change. In essence, Toyota separated every component of the manufacturing process to discover what could be streamlined or removed without diminishing its quality2.

This methodology is not alone. Six Sigma, the well known management strategy, also emphasises process quality and the removal of discrepancies and flaws from products and services3. Developed by Motorola in the mid 1980s, it was initially used in manufacturing before being tailored for use in many other industries over time. 'Lean Six Sigma' (or simply 'Lean') is the child of both Lean manufacturing and Six Sigma methodologies.4. It is both data and focus-driven and is well suited for the professional services industry such as law.

Eight Deadly Sins – A Legal Counterpart

Lean aims at enhancing process speed and quality by cutting back on process wastes. There are eight types of waste that can be cut-off from business processes to reduce costs and time: defects, overproduction, waiting, non-utilised talent, transportation, inventory, motion, and extra-processing. These wastes are collectively known as DOWNTIME5. Examples of some of these wastes as applied to a legal context are below:

  • Defects – Work that is defective is seen as waste. For example, work that has to be reworked because of errors or omissions.
  • Overproduction – Time is a lawyer's most limited resource. Doing more than what is needed can be a misuse of resources. For example, research undertaken on a legal issue that has already been covered in another matter would be seen as waste.
  • Waiting and Delays – Time lost when people, machines or information are waiting, idle, warming up, or awaiting processing is time wasted. This does not include interruptions that a lawyer may face on a day to day basis. Getting back up to speed is further time lost.
  • Non-utilised Talent – Failing to recognise the potential of all the people in a team is wasteful. So, too, is failing to assign work to the most suitable member. A Lean organisation uses the skills and talents at its disposal to the maximum.
  • Transportation – Transportation waste is significant in the legal profession. A lawyer can benefit from the digital transfer of information at times, reducing 'transportation costs' such as emails and electronic discovery.
  • Inventory – In a legal sense this is simply another word for WIP (work in progress). Excess WIP costs the firm money. It indicates ineffective workflows or staffing problems Effectiveness results in 'right sized resourcing'6.
  • Motion – Wasted motion is movement of people that doesn't add value. In a law firm this may be searching for a missing file, either hardcopy or digital due to poorly designed filing systems.
  • Extra-Processing – Some lawyers may do work on cases than their clients do not want. And the amount of work may be disproportionate to the value of the case, which burdens our legal system. Part of the solution is greater collaboration with clients to understand what they want and communicate back clearly how much it will cost to deliver the clients desired outcome.

So Why Do Lawyers Need It?

The intention of Lean is to remove the waste to focus on the processes that add value7. This ideology is the basis as to why Lean methodologies have been so successful in advancing business performance in a number of industries. Service providers that employ Lean see noticeable improvement throughout their business, including improved speed, quality and cost, improved client satisfaction and greater profit8. Law is a service and like all services, opportunities for waste flourish. Lean provides lawyers with an alternative for examining legal and business processes. Specifically, Lean affords lawyers a route to navigate the shifting legal market we face today.

Why Should Law Firms Care About Waste? We Are Not Garbage Collectors!

The legal industry faces an interesting predicament. We now live in an era where clients expect more for less from their lawyers, measuring performance based on value, rather than time 9. Lean may help align both client and lawyer interests. While the challenge for many firms is making the transition away from a traditional law firm culture ('OldLaw') the advantages of adopting new methodologies ('NewLaw') are clear and measurable. By applying Lean within the law firm, it can translate into more business, improved efficiency and productivity, lower costs and more profit. In turn, clients will see a better, faster, value-adding service, with reduced costs and more transparent billing, a greater predictability for their legal spend and improved communication and responsiveness10. It is more...for less.

This is part two of a three part series on innovation in the legal industry. Read parts one and three.

Footnotes

1 Steven Hoeft, "Stories from My Sensei – Learned Implementing Toyota Style Systems", page 97, 2009.

2 "A Brief History of Lean", http://www.lean.org/WhatsLean/History.cfm.

3 Freddie Pierce, "Motorola's Six Sigma Journey: In pursuit of perfection", 2011. http://www.supplychaindigital.com/procurement/2068/Motorolas-Six-Sigma-Journey:-In-pursuit-of-perfection

4 "What is Lean Six Sigma", https://goleansixsigma.com/what-is-lean-six-sigma/.

5 Ilina Rejeva, "Insiders' Views: How Lawyers Can Benefit from Lean Six Sigma", 2015. https://legaltrek.com/blog/2015/04/insiders-views-how-lawyers-can-benefit-from-lean-six-sigma/.

6 Right number, right experience and right advice.

7 Above n 4.

8 Kenneth Grady, "Lean Is The Path To The Perfect Legal Practice", 2016. http://www.legalbusinessworld.com/single-post/2016/10/30/Lean-Is-The-Path-To-The-Perfect-Legal-Practice-Part-2.

9 "Client Dynamics Driving Change in the Legal Profession", 2014. https://www.roberthalf.com/sites/default/files/Media_Root/Images/RHL-PDFs/RHL_FLO_2014_0.pdf

10 Above n 7

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
Dean Cupac
 
Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Related Topics
 
Related Articles
 
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
 
Email Address
Company Name
Password
Confirm Password
Position
Mondaq Topics -- Select your Interests
 Accounting
 Anti-trust
 Commercial
 Compliance
 Consumer
 Criminal
 Employment
 Energy
 Environment
 Family
 Finance
 Government
 Healthcare
 Immigration
 Insolvency
 Insurance
 International
 IP
 Law Performance
 Law Practice
 Litigation
 Media & IT
 Privacy
 Real Estate
 Strategy
 Tax
 Technology
 Transport
 Wealth Mgt
Regions
Africa
Asia
Asia Pacific
Australasia
Canada
Caribbean
Europe
European Union
Latin America
Middle East
U.K.
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.

Disclaimer

The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.

General

Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions