Project-based management gains ground in law firms

Law firms in Spain are starting to understand the benefits of the legal project management (LPM) methodology. This practice is widespread in legal circles in English-speaking countries, as well as in other sectors of the Spanish economy, including finance and architecture. For Spanish lawyers, however, LPM remains novel. Some law firms – especially international ones and big-name Spanish firms – have started implementing the method, with quite satisfactory results.

Clifford Chance has been using LPM for several years now. “With our model of continuous improvement in process management, we have become more efficient, and our customers can see the added value we provide,” commented Pilar Díaz, director of knowledge management at Clifford Chance. “The value that this model provides to customers is based on efficiency, cost-effectiveness and predictability,” commented Eugenia Navarro, Lecturer of Strategy and Legal Marketing at ESADE Law School. “To do this, you need a control model, and LPM makes this easier.”

Pros and cons of the project management model

José Luis Pérez Benítez, partner at the consulting firm Pérez Partners, observed that the LPM methodology is very recent and not yet consolidated. “It’s not always valid,” he noted. “All legal cases are projects, but not all of them need to be managed with LPM.” Mr. Pérez Benítez added: “If you devote a lot of resources to this, you might eat up the profit margin of each case, and you don’t want that.” He also noted: “LPM limits creativity, does not provide solutions for unstructured problems or for moments of uncertainty because of its excessive formality, and it also requires a firm of a certain size.” Nevertheless, Mr. Pérez Benítez noted some of the advantages of the system, including the value it delivers to customers and its ability to enhance a firm’s profits. He also mentioned other positive aspects of LPM: it helps firms identify and anticipate costs and fees at the start of each project; it implements an internal control system; and it fosters business development while reducing and controlling costs.

Daniel Marín, managing partner of the Barcelona office of Gómez-Acebo & Pombo, argued that LPM is necessary in cases involving complex activities. By way of example, Mr. Marín explained that his firm adopted LPM as part of an alliance formed by 32 independent law firms in 23 jurisdictions in order to provide consulting services to Nike. Thanks to the model, the firms were able to share risks, include all invoices in the same general budget, and share information and best practices easily.