Stephen Poor Quoted in Chicago Lawyer
"Under the Pressure of Cost Controls"

Stephen Poor was quoted in the article, "Under the Pressure of Cost Controls," which appeared in the April 2009 issue of Chicago Lawyer. The article provides an in-depth look at the pressures General Counsel are under to control their legal spend and highlights Seyfarth Shaw's use of Lean Six Sigma as one way to combat these pressures. According to Steve, leaders at Seyfarth Shaw a few years ago critically examined the traditional law firm billing model, which largely involves billing by the hour and passing escalating rates onto clients each year, and were left skeptical about how long that model could sustain itself as a primary pricing structure. He noted, "We also saw RFPs coming out that were starting to ask for different kinds of pricing structures." From that observation came the firm's own version of Lean Six Sigma business process management methodologies known as "Seyfarth Lean." In the article, Steve describes Seyfarth Lean as a "very structured, supported by data, analytical approach… that we think has gotten some traction with clients."

Steve also explained that "We've had to morph and change [Six Sigma] to fit how lawyers think, and how the legal process works. It's a data-driven, process-oriented way of looking at legal services that drives a very structured conversation between the firm and the client about efficiency, about quality, about how the legal services can be delivered at the lowest cost -- mapped to the value the client sees for that particular project." The article noted that since 2006, Seyfarth has been adopting Six Sigma methodologies in several practice areas, including commercial litigation, real estate, banking and finance, mergers and acquisitions, and immigration.

Steve continued by outlining the process at the highest level: "you take the particular legal process you're talking about -- maybe a deal; a piece of litigation -- and you map it out. Then, you pull data from similar projects you run and you begin to look for: where is the variability, and where is the cost?" For example he continued, "You learn, in a piece of litigation, how much more does it typically cost you to fight to discovery than settling early? It's creating a set of data off of which you can make better decisions." According to Steve, "The most important outcome it has is that it's a very transparent process with the client. You can find expenses you're incurring simply because of the way the client and law firm interact with one another. If you look at it holistically, you can drive cost -- time, which translates to cost -- out of the process."

He concluded that this still-evolving business model has law firm leaders re-examining such issues as staffing needs, compensation and reward systems, the skill level of the lawyers wanted on a project, and training. "It can't just be a pricing structure. It really has to embed itself in the way you operate and do your business. There's a long road ahead," Steve commented.