publication of the International Legal Technology Association
Issue link: https://epubs.iltanet.org/i/231030
NEW DEVELOPMENTS IN NEW BUSINESS INTAKE DEFINING NBI Firms differ in how they define new business intake. The function frequently does not reside in a single organizational entity; it is at least divided between a conflicts team, finance and a number of review committees. Let's define the function by its objectives: Determine whether to accept a potential new client or matter. This "yes/no" determination includes many considerations. Does it fit with the firm's strategy? Does it pose an unresolvable ethical conflict? Does the deal structure make sense? Will the client pay? Resolve potential conflicts. If potential conflicts exist, secure the necessary waivers to move forward. Establish the client-attorney relationship. This includes the collection of documents (e.g., engagement letters and outside counsel guidelines) that formally lay out the terms of the relationship. Institute an acceptable deal structure. This can include the negotiation and approval of AFAs, rates, discounts, retainers and project budgets. Establish an accurate client record. Whether for billing, records, conflict searches or marketing, the quality of your client information is critical to the intake review, the accuracy of the first bill and many downstream activities. WHY NBI MATTERS Marketplace changes have forced an expansion of what needs to be accomplished during business intake. It is now about so much more than avoiding conflicts. Below are some of the areas in which the NBI capability influences firm performance: •Risk Management: As the gatekeeper to new clients and matters, NBI professionals coordinate the reviews necessary to identify and mitigate different types of risk: ethical risk (Does this create a conflict of interest?), economic risk (Will the client pay? Will the firm profit?) and strategic risk (Should the firm do this type of work?), to name a few. The quality of these various risk management decisions depends on the quality, accuracy and completeness of information provided to decision makers by NBI. •Client Satisfaction: Inefficient NBI can immediately start attorneys off on the wrong foot in building a trusted relationship with clients. Clients with pressing legal needs do not appreciate waiting for attorneys to receive approval before starting work. They can also be frustrated by not negotiating with the actual decision maker. •Revenue Realization: Poor NBI causes firms to forfeit revenue. I have worked with firms unable to bill matters for months because they were unable to get accurate invoices out the door. As invoices age, the likelihood that they get paid decreases dramatically. Furthermore, firms lose billable hours when attorneys lack a place to record time worked prior to matter approval. •Attorney Satisfaction: Attorneys recognize the importance of NBI but resent a process that is inefficient and opaque. At the practice group level, attorneys want to feel the process is tailored to their areas of law. (I often hear attorneys complain that their intake is too "litigation-driven.") IP practice groups within big law firms are perhaps the most challenging, and firms risk losing IP partners if a rigid intake process cannot accommodate their needs. MARKETPLACE TRENDS IMPACTING NBI For years, as law firms grew organically, so did the administrative functions that support their operations. Today, as firms make more dramatic changes, those functions can become misaligned