Vol. 5, No. 4, Pg. 10. TQM-Ready or Not.

• Author: By W. Keith Shannon and Russell J. White

South Carolina Lawyer

1994.

Vol. 5, No. 4, Pg. 10.

TQM-Ready or Not

10TQM--Ready or NotBy W. Keith Shannon and Russell J. WhiteHave you ever had the dubious distinction of obtaining a stunning verdict on behalf of a client, only to have that client turn around and "bad mouth" you to friends and colleagues for the poor work you did on the case?

Have you ever suffered with the "client from Hell" and finally referred that client to a colleague, only to discover later that he or she had become a model client, loved by the lawyer and support staff alike?

Have you ever had a client show up unexpectedly in your office, screaming, "Nobody ever returns my calls! I want my file!!"

Have you ever been forced to reduce your bill on an hourly matter, despite your belief that the bill was fair and accurate, because the client "went ballistic" when he or she received it?

More to the point, have you ever said, only half jokingly, that it would be fun to practice law if it weren't for the clients?

Unfortunately, more and more lawyers are finding that they can answer yes to at least one of these questions. And some lawyers are beginning to realize that the key to escaping these dreaded questions may lie in posing another set of questions to themselves. These questions, which many lawyers have ignored until recently, include:

* What kind of service do my clients expect from me?

* How can I give them that service?

* How can I find out whether I am giving clients the type and quality service they expect?

* How can I systematize my practice to assure that all my clients will receive the service they want and deserve?

Client-centered Practice

These rather painful questions are being asked more and more today, as a growing number of firms explore an approach to law practice known as Total Quality Management (TQM)--or, as some firms call it, client-centered law practice. In its most simple terms, this approach to practice attempts to recognize the true needs of the client and to place those needs above the needs of individual lawyers or the firm.

A client-centered practice emphasizes consistent delivery of quality service in the most efficient and client-aware atmosphere possible. The results, as reported by many firms that are now using such an approach, can include happier clients, a less stressful work environment, increased revenues, a more productive staff and more satisfied lawyers.

"A client-centered practice emphasizes consistent delivery of quality service in the most efficient and client-aware atmosphere possible. The results, as reported by many firms that are now using such an approach, can include happier clients, a less stressful work environment, increased revenues, a more productive staff and more satisfied lawyers."

In a survey of law firms reported by Of Counsel magazine (Feb.15, 1993), one-third of 146 respondents were engaged in some type of TQM activity. Another study, conducted by legal consultants Altman, Weil, Pensa and reported in the May/June 1993 issue of Legal Management, revealed that although only 4% of the 142 major U.S. law firms surveyed had TQM programs currently in place, nearly two-thirds were either in the process of putting together a program, planned to implement a program within the next two years or were seriously considering its implementation. Interest in TQM has grown so intense that the American Bar Association Law Practice Management Section, in alliance with the Association for Legal Administrators, has formed a task force to conduct a demonstration study of the effect of TQM programs on 10 firms ranging in size from seven to 140 lawyers, including one firm in South Carolina.

Some firms that have instituted TQM say the process is paying off.

According to the May/June 1993 issue of Legal Management, a Dallas, Texas firm that began using TQM methods in 1992 has reported a "monumental" increase in revenues. Another firm profiled in the article reported that the emphasis on serving the firm's current clients, as opposed to constantly pursuing new ones, has resulted in a huge increase in referrals from existing clients, as well as happier clients and more enthusiastic lawyers and support staff.

Another firm, profiled in the January/February 1993 issue of Legal Management, reported that its TQM effort, begun as an outgrowth of its marketing department, had thus far resulted in a firm run more efficiently and more economically, with a more enjoyable workplace environment for lawyers and staff alike.

12 Why the Upsurge?

What has caused this upsurge of interest in TQM? No doubt many factors have played a part in its popularity. Among them are:

* An increasingly competitive market for legal services has resulted in clients who are more astute in their demands for quality service and fair billing practices. According to Legal Management, the legal services industry grew by an astounding 382% from 1977 to 1989, compared to the food and auto industries, which experienced growth of only 91% and 40% respectively. With more than 800,000 lawyers licensed in the United States in 1991, the supply is quickly out-distancing demand.

* Continued uncertainty about the long-term health of law firm economies has produced a more businesslike approach to law practice by firm managers and partners. The soft job market and resulting layoffs of the late '80s and early '90s taught many firms that they cannot continue to simply forge ahead with current practices but instead must be constantly ready to meet the challenges of a changing economic environment.

* Many industrial...