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64 Legal Industry Update National Focus NATIONAL NOT-SO-FRINGE BENEFITS: PRACTICE MANAGEMENT LESSONS FROM THE FINANCIAL CRISIS By: Marcy Ford, Jeffrey Raff and Jeffrey Weisserman, Trott Law ese days it seems like any conversation with someone who has been in the default servicing world for any significant length of time inevitably turns to a discussion about how much things have changed in the industry. As we all know, there is compliance piled upon compli- ance, local rules on top of federal rules, and new regulatory mandates that now microman- age nearly every step of the default mitigation process–and all of that is in addition to the frustration and complexity surrounding revenue, profits, share prices, and other financial and operational details. With that in mind, it really isn't all that surprising that many servicers, lawyers and investors feel beaten down by the weight of the fast, relentless, and significant change. But at the risk of being labeled a Pollyanna, are there not some significant benefits from having worked through (and survived) the mountain of changes that have taken place in the legal default industry? We firmly believe that there are. Here are the not-so-fringe benefits that made our list, and we challenge you to make your own. First, we know the legal side of our business better than we ever have before. Out of both necessity and desire, firm partners routinely participate in audits, weekly client calls, team meetings, process and technical development meetings, as well as actively contribute to local bar seminars and national task forces. In the interests of communicating clearly and consis- tently, and learning from each other as much as possible, we make it a priority to visit with each other on a regular basis, and we pay closer attention to discussions at the proverbial water cooler. Friday golf is a thing of the past (as is our handicap), and we always lean towards embrac- ing participation rather than delegation. Second, we absolutely know the non- legal side of our business better—perhaps better than ever. We freely admit that it was much more pleasant when volumes made it easier to not worry about "the spend." And while it is vitally important to track our time and our effort, we are also much more in tune with tracking the dollars and cents, as well. From paper sources, to technology costs, insurance and other vendors, we know where to find the best value. As partners working as a cohesive team, we meet frequently, get daily financial reports, and work closely together as needed to make accurate, realistic and achievable financial predictions. ird, the mandated rigor and internal over- sight that is now expected of default law firms has created another benefit: the development of attorney and operational leadership, in addition to strong partner/owner involvement. Managing a default law firm can no longer be a one-(wo) man show. In our firm, we have asked oth- ers—and many have answered the call—to step up to leadership and embrace innovation. What works and what does not work is no longer asked and answered exclusively in a boardroom. It may happen at any time, and anywhere—and great ideas are no less valuable whether they originate in a corner office or in a cubicle filled with Star Wars action figures. Fourth, while it takes time, energy and expertise to strike a successful and sustainable balance between automation and human effort, we have learned to appreciate and monitor our reliance on both operational assets. Walking that tightrope demands finding that optimal balance point and checking it frequently in order to optimize efficiencies and prevent a system breakdown. It seems funny in retrospect, but we recall when we first envisioned our own case management system, our goal was to be able to take an employee "off the street" and have them processing files later that day. Even in a less regulated environment, you might say we were overly optimistic (and that's being kind). An in- depth review of both the benefits and limitations of automation has paid dividends. We have suc- cessfully avoided the issues that may flow from relying exclusively on technology, which may be as detrimental as those caused by resistance to automation. is approach results in taking full advantage of the efficiencies and protections afforded by automation, while at the same time recognizing its limitations. e bottom line is that as frustrating and challenging as the last few years have been, we are a better organization—and a better indus- try—as a result of the hard work we have done to adjust and adapt to new realities. Call us a group of incurable optimists, but we think these challenges have made us better than ever. And, that very well may be our silver lining and our last lesson: never pass up a silver lining.