Utilise Project Plans in Your Complex Cases to Drive Improved Matter Management

Clause 7.1 of the Lexcel standard states that law firms must ensure the strategy for a matter is always apparent on the matter file and that, in complex cases, a project plan is developed.

I’m a huge fan of project plans in complex cases, and if done correctly, they will, in my experience, deliver several benefits to your firm. But are law firms approaching the mandatory Lexcel requirement for project planning correctly? And what about the thousands of non-Lexcel firms? Is project planning in complex cases part of their matter management culture or non-existent? In most cases, I suspect the latter.

The Lexcel standard does not define a complex case. Instead, it is left to each firm to decide, and there is no right or wrong answer. In my experience, law firms identify complex cases using different criteria. For example, where multiple areas of law are involved; where there are multiple defendants; where complex legal issues arise; the seriousness of the injury in personal injury and clinical negligence cases; and the value of the property or net assets in real estate and private client-type work.

Unfortunately, it is not uncommon for Lexcel law firms to approach the need for a project plan in a complex case as an administrative task, a tick-box exercise that must be completed for the benefit of the Lexcel assessor at the audit. Law firms that adopt this approach miss out on the clear benefits that a well-considered project plan can bring to a complex case.

In my experience, there are four main benefits from a well-thought-out project plan in a complex case, as follows:

1. Improved matter planning – Every now and again, the lawyer should take a step back from the matter and consider the future strategy. It will allow the lawyer to adopt a ‘helicopter view’ of the matter and plan future action to be taken. The future action should be broken down into bite-sized chunks. Establish 90-day priority planning within the project plan and set SMART targets as to what action is to be taken, by whom, and by when to ensure that the matter is driven forward during the 90-day period.
2. Improved client care – The action to be taken on the matter as set out in the 90-day priority planning in the project plan can be cut and pasted into a client update letter, ensuring the client understands what action is to be taken to progress the matter and thereby minimise the risk of a client complaint.
3. Improved risk management – Complex cases should be subject to a strict file supervision regime, with the project plan forming the basis of the file review, regularly updated so that it becomes a living document. There may be occasions when external third parties, such as insurers or regulators, will need to review a complex file. The project plan will aid this process by setting out the strategy for the matter and what has taken place without the need to seek further information from the fee earner.
4. Improved financial management – Complex cases are likely to carry significant levels of work in progress, particularly if funded by way of a CFA, for example in a serious personal injury or clinical negligence case. Such cases may take many years to resolve and carry £000’s of WIP. The Finance Team will want to know from a budgeting perspective the % chances of winning the matter; how much of the WIP will be recovered, when the matter is likely to settle, and when the cash will arrive? The project plan should contain this information, which should be shared with the Finance Team. Such financial forecasting information is essential for the preparation of future budgets and cashflow forecasts and the financial well-being of the firm.

Changing a cultural approach to project planning in complex cases in a law firm is not easy. In my experience, once the fee earner understands and buys into the importance of project plans from a matter, client, risk, and financial management perspective, the culture will start to change. Project plans will no longer be seen as an administrative chore by fee earners but instead as an essential management tool to ensure the progress of the matter and improved management of risk across the firm.

For further discussion on the themes covered in this article, contact me at ih@hopkinslegalconsulting.co.uk or 0791 666 9095.