Legal Practice Management ATP 106

• Course instructor: Ms. Margaret Mounde.
• Subject area: Legal Practice Management ATP 106.

Purpose of the Subject

• Develop skills and tools to establish and manage a law practice.

Core Reading Materials

• Legal Practice Management by Kimari Mary (2019), LawAfrica Publishing (K) Ltd., Nairobi, Kenya.
• Accounting for Lawyers by Kimari Mary (2015), Law Africa Publishing (K) Ltd., Nairobi, Kenya.
• Business Accounting, (Volume I) 12th Edition by Frank Wood (2012), Prentice Hall is a vital resource.
• Office Practice Management by Kimari Mary & Carol Mureithi (2014), LawAfrica Publishing (K) Ltd, Nairobi, Kenya.

Key Reference Materials

• Kashindi’s Digest of Employment Cases by Kashindi, G. & Kashindi, I. (2020), Flamekeepers Publishing Limited.
• Financial Accounting by Kimuda, D. (2008), East African Publishers, Nairobi, Kenya.
• Basic Financial Accounting by Nzomo, N.D. (2002), Kenya Literature Bureau, Nairobi, Kenya.
• Accounting Theory and Practice by Glautier, M.W & Underdown, B. (2011), Trans-Atlantic Publications, 8th edition.
• Cyber ​​Lawyer: Impact of the Internet on Law Practice by Mc Cauley, J. (2005) is available online .
• Ogembo, G.’s Employment Law Guide for Employers (2017), LawAfrica Publishing (K) Ltd, Nairobi, Kenya.
• LSK - Law Firm Management Manual 2018

Why Legal Management

• Majority of mistakes that advocates make are linked to management errors.
• Legal management is study of law and management.
• Furnishes you with the necessary skills that will allow for effective office management

Key components of the subject

• Office Administration and Management.
• Human Resource Planning and Management.
• Conceptual Framework of Accounting.

Aspects of Law Practice Management

• Management of a law firm/organization as a business, also known as law office management.
• Management of Legal work product and service delivery makes advocates managers.
• Acquisition and mastery of professional skills for advocates to improve managerial skills, for managing oneself as a professional.
• Management is key to success, effective practice managers are more likely to be successful.

By the end of this Subject, students will:

• Manage a general law practice.
• Comply with regulatory requirements for law practices.
• Apply various statutes related to business admin & management.
• Implement proper organizations structures and systems.
• Apply business analysis and accounting skills.

Evolution of Management

• Evolved due to events, initiatives, discoveries, and research.
• The start of management can be traced back to the early days of humans.
• Organization started, as people saw the need to live in groups.
• Distribution was proportional to ability/skill at the time, but now, the focus is chasing money

Office Administration & Management

• Includes Office Standards, Policies, and Procedures
• Manage Information and Communication Technology
• Manage risk with Safety, Security, and Disaster plans
• Maintain front office services and record management
• Handling procurement and avoid discrimination or harassment in the workplace

Human Resource Planning and Management

• Job Analysis and Design
• Recruitment and Selection
• Placement, Induction and Socialization
• Training and Development
• Career Development and Management
• Internal Mobility and Separation

Conceptual Framework of Accounting

• Book Keeping and End-of-Year Adjustments
• Preparation of Final Accounts
• Bank Reconciliation Statements.
• Cashflow Statements Analysis
• Advocate and Partnership Accounts
• Cost Accounting and Budgeting

Science of Management

• It is better to work smarter instead of harder.
• Frederick Winslow Taylor and associates observed the work process from a scientific perspective and their work is a scientific movement.
• Though it was widely practiced, Taylorism eventually fell out of practice.
• Taylorism positively contributed to analysis, synthesis, logic, rationality, empiricism, work ethic, efficiency and waste elimination plus standardization.

Classical Theory of Management

• The industrial revolution significantly impacted management through capital raising, organization of labor, and alignment of production.
• Charles Babbage urged manufacturers to use math/science instead of guesswork.
• Robert Owen introduced employee welfare and trade unions.
• Job content, labor division, standardization and management were emphasized by Emerson, F.W. Taylor, and H.L Grant.

Neo-Classical Theory or Behavior Approach

• Focus more on employee relations in the work environment.

Bureaucratic Model of Max Webber

• Max Webber advocated for the aggregation of rules, labor division by employee niche, legal authority acceptance, power and hierarchy of authority recognition.
• Management is always evolving.
• Task: Come up with your firm’s name, vision, mission and objectives

Important Organizations

• The historical perspective of legal firms dates back to the 19th -century.
• Examples include American Bar Association (USA), the Law Society (solicitors, UK), and the Bar Council (barristers, UK).
• The Law Society of Kenya was formed in 1948 by section 3 of the Law Society of Kenya Ordinance, 1949 and later repealed.
• There were traditional systems in place before colonialism that governed communities.

Nature of Law Firms

• Advocates think about how organizations offering legal services may be organized.
• Winslow stated that advocates adopted Ronald Coase's perspective when they interpret the nature of law firms.
• Legal Education in Africa has existed because of the provision of legal education, after the Denning Committee report in 1960
• The University of East Africa was established as an independent college, after independence.
• 1970, the setup resulted in the creation of UoN, Makerere University and Dar-es-Salaam.
• Before this Law Graduates went straight into KSL from form four, regarded as being second tier

Role of Office

• Fulfilling subordinate organizational functions for routine work.
• Complementary: Requires a factory with an office to maintain record
• It is a controlling function.
• Any place set aside for clerical, administrative, or communicative work
• Provides planning and efficient management
• Relevant records are prepared, handled and preserved.
• Section 35 of the Advocates Act require that instruments drawn by an advocate be endorsed with the name and address of the advocate failing leads to a statutory penalty

Office Functions

• Clerical (basic/routine)
• Administrative functions

Administrative Functions

• Safeguarding company assets.
• Performing personnel functions.
• Creating/enforcing policies/procedures.
• Office Management requires selecting office appliances.
• Preparation of financial and cost accounts and developing budgets and forecasts.
• Office management is planning, organizing co-ordinating and controlling.
• Elements include purpose, environment, personnel, and means.

Types of Business Organizations for Law Firms

• Sole Proprietorship
• the trading business is owned by one singular person.
• Partnership

Requirements for Starting a Sole Proprietorship

• Business must have a name.
• Nature of the business
• gender
• Registered with the Kenya Authorities.
• Requirements including, an ID or Passport

Key Steps to Starting a Business

• Incorporate social health Insurance
• Register KRA
• Register Authority

Types of Partnership

• The partnership exists to raise capital for profits as explained in [Section 2 of the partnership act 2012].
• See Bakery Ltd v Wangoe.
  • v National Contractors.
• General partnership: Simplest and easiest to form/dissolve.
• Limited partnership
  • offers protection as partner takes liability.

LLP

• Registration is required
• Involves aspects of body corporate
• It has the downsides of an incorporation
• All Partners have limited liability
• Partners can have independent structures

Things to Note In Registration

• Statement of particulars including: business names, details of partners, and manager details Registration is done at Limited Liability.
• Sections 16 to 23

Important Partnerships Deed Contents

• Terms of each partner and ratios, inspection duties and rights including capital
• Admission procedures

Other Things to Note With Partnerships

• Must submit firms cert to the Kenya Law society
• Debt and equity must be maintained as most cost-effective
• Partnerships must be submitted with registrar papers for inspection

What is A Company

• Associate of people with common goals
• Objects can be beyond profit making

Organization Structure

• Element in management involves clustering activities.
• Better Organization structures improve mandated roles.
• Dividing workers establishes sections and departments.
• Obtaining, recording, analyzing information, planning activities.
• All include Communications for those concerned.
• Proper Layout and Sufficient services.
• The flow of authority from top to bottom
• Describes the various departmental function.

Charts

• Visual/ Diagram representation -aka an organogram- usually a one page document

Type of Chart

• Military
• Military line
• Function
• Matrix
• Committee
• Vertical- Hierachillal
  • horizontal/ flat- left to right
    • spherical

Organization Characteristics

• Unity of Objectives/ goals across the company
• Division of labour
• Clear Communication chain of command.
• Well-defined roles and clear objectives.

Benefits of organization

Effective Administration

• Effective specialization
• Boost Worker Morale
• Good Communication with all Members
• Promotes Productivity

Problems in Organization

Corruption

• Delays
• The poor quality of labour
• Unequal delegation
• Clerical Errors.

Steps of re-Organization

Prepare an Objective

• Restructure team to align with objectives
• Communication with Staff to reduce resistance.

Requirements for safe workplace

Proper layout

• Good location -Office Supplies

Functions of Office

• Communication Centre
• Information Nerve Centre
• Intermediary
• Control
• Record Keeping

Office Locations

• Urban
• Rural
• Factors in Layout,
• Space, Communication
• Access

Layout components

Security and Physical

• Air and Water
• Noise Management

Type of layout

• Freehold Ownership- Design and modification.
• Ownership- Good in terms of rent as the owner does not have to pay, and has more freedom.

Downsides

• Cost of Rates
  • Tax of Construction and Tenants rights

Leasing a building

• No Capial required and its flexible but lease and rentals often high
• Lack tenants rights.

Considerations for space

• Town or urban area
• Office Planning -Consider component and equipment location

Office Components

Good furniture for comfort

• Lighting and cleanliness Noise Reduction Ventilation and temperature

Different Types of Office Spaces

• Co work - shared access and equipment
• State of the art
• Enterprise Suite- Managed custom Office Space
• Flexible

Offices To Consider

• Managed home office
• Virtual Office Service desk and Address
• Private and rental Spaces

Open Plan Office

• Great communication
• Shared tools - limited privacy

Work station

• Better communication
• Greater Security

Limited Communication

Openness

• Team Clusters.

Procedures In Office

• Ensure good procedures by having them Articulate and Follow the Law
• Follows procedure by identifying need,
• Define the scope and get to work

Standards

• General Written Limits _ follow law

Constitution

• The Legal Mandate
• For standards
• Procedures for safety -Legal Provisions

Elements To Protect.

Good Records, Protect data

Filing

• File correctly and neat
• Punch Cards
• Proper Records Disposal by shredding

Good Records

• Good Index

Type Of Index

• Easy look up.

Factors Guiding IT

• Legal, Penal Code
• Cyber Crime
• Security Act.

Emerging IT issues

• Law Society has online advertising
• Admissibility

Key Legal IT Elements

• Protection
• Automation.