July 2014

Capital Connection is published monthly for members of the Capital Chapter of the Association of Legal Administrators to provide information for the education and benefit of legal administrators, law office managers, managing partners of law firms, and other law related associations. Capital Connection is not engaged in rendering legal, financial, or tax counseling or advice through this publication.  The contents of all articles, letters, and advertisements published in Capital Connection should not be considered endorsements by the Capital Chapter of ALA nor the opinion expressed therein of any products advertised.   Contributing authors are requested and expected to disclose financial an/or professional interests and affiliations that may influence their writing position. Articles and materials accepted for publication are subject to editing by the editorial team and become property of the Capital Chapter of the Association of Legal Administrators. 

Editor: Paula Serratore; Cindy Conover   Contributing Editors: Joe Berger; Peter Balis; Tonia Gray; Richard Lane; Matt Levin; Jenna Carter; Beth L. Fowler, CLM; Melody Watson Newsletter Designed By: Scoti Dodson


In this issue:

President's Message

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As we so often hear from at least one credit card company, membership has its benefits. Perhaps that’s true but I can tell you one organization whose membership gives benefits to those in our profession—and that, of course is the ALA, and more specifically, the Capital Chapter.

If you are reading this, then you probably are already a member, but how many of your co-workers are eligible for membership but are not members? Or perhaps you know an administrator or manager at another firm who is not a member.  No matter how long you have been in the profession or how new you are to law firm administration, membership in the Capital Chapter has something to offer no matter what your experience level. The Chapter offers many opportunities for networking through its Monthly Lunch and Learns, Quarterly Networking Lunches, Happy Hours, and other similar activities. The Chapter has a network of committees that meet monthly to discuss and learn more about all aspects of law firm management, including IT, HR, branch office management, IP, and others. These meetings are a perfect opportunity to exchange ideas with others working in the same environment, while getting to know other Chapter members in a small, informal setting. The Chapter has probably the best educational programs you will find anywhere. Monthly we present some of the most qualified speakers in various fields relating to our profession and our personal professional development. And these are just a few of the many benefits of membership.

So look around and invite some of your co-workers and colleagues at other firms to join. Spread the word - membership has its benefits!

New ALA Capital Chapter Members


Nicole D. Rutherford
Human Resources Manager
Van Ness Feldman LLP
1050 Thomas Jefferson Street NW
Washington, DC 20007

Diana Nelson
Office Manager
Brown Rudnick LLP
601 13th Street NW
Suite 600
Washington, DC 20005

Regina Lynn Aikens
Administrative Liaison
Seward & Kissel LLP
901 K Street NW
Washington, DC 20001

Deborah Baldwin
Administrative Supervisor
Finnegan, Henderson, Farabow, Garrett & Dunner, LLP
901 New York Avenue NW
Washington, DC 20001-4413

Judy L. Raze
Administrator
Zuckert, Scoutt & Rasenberger, LLP
888 17th Street NW
Suite 700
Washington, DC 20006

Mrs. Tina D. Sampson
Secretarial Manager
Nixon Peabody LLP
401 Ninth Street NW
Suite 900
Washington, DC, 20004

Pamela Benson
Operations Manager
Creative Family Connections LLC
2 Wisconsin Circle
Suite 700
Chevy Chase, MD 20815

Sandra M. Lucian
DC Office & Government Relations Manager
Blank Rome LLP
600 New Hampshire Ave NW
Washington, DC 20037

DTI Spotlight: The Convergence of Managed Support Services

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By: Peter Balis 

World events and dramatic economic change since 2008 when the “Great Recession” of our time began, have impacted all sectors of the business world.  What was common practice and accepted as the ordinary way for law firms to run their businesses, has since become an exercise in reducing all possible fixed costs. Although this phenomenon has accelerated greatly for law firms in recent years, it has been the norm in the corporate world for the past few decades.  Just as with CEOs of large corporations, law firms now also recognize their fiduciary responsibility to manage their budgets as tightly as possible.

To reflect these changing circumstances, law firms are reducing costs through all possible means including a significant increase in the use of outsourcing.  The concept of outsourcing certain non-core functions is not new to law firms.  Back office administrative departments have been outsourced since the early 1980s.  However, recent events have driven law firms to look into new areas of outsourcing opportunity. The law firm client has changed the way they are acquiring legal services from outside counsel, and as a result, law firms have been compelled to reinvent the way they operate.

Areas like litigation support, IT, the document review process, and the middle office space, which includes legal support staff, word processing, and legal research, are now under the microscope. They are the new “green fields” for law firm cost control and savings initiatives; more and more firms are rethinking their positions in these areas.  Many are asking themselves if making capital investments in labor and technology infrastructure that changes so rapidly makes sense. They are reviewing their secretarial ratios and the way they measure support staff productivity, if at all.  In that regard, they are looking to benefit from labor arbitrage and space reclamation relating to their middle office support areas. Further, GC’s are no longer willing to pay high level billing rates for litigation document review by junior attorneys; they are looking at Legal Process Outsourcing (LPO) solutions instead.  In a few words, the game has changed dramatically.  Firms are finding it that much more difficult to recover their costs and are seeking new strategies from their business partners.

Many, if not most “FM” companies, have remained focused on the back office.  Historically their main source of value has been to lower a firm’s costs by providing an even lower paid employee for back office support.  The reality is there is very little cost savings opportunity in that area without significantly reducing services or risking quality.  Industry leaders like DTI are still bringing highest value and competitive costs in the back office; but are also bringing great value in terms of additional outsourcing opportunities for word processing, virtual legal assistants, legal research, litigation technology, litigation support, and other LPO functions such as document review and technology assisted review. Firms are clearly very interested in the additional opportunities for enormous savings combined with a variable cost methodology.

DTI’s infrastructure for managed litigation support services is second to none.  We are one of the top three E-discovery companies in the world, and continue to grow at a pace exceeding all those arriving late to the game.  Firms that desire to “unbolt” themselves from the fixed labor costs and expensive technology infrastructure associated with litigation support, look to DTI for a new path.

Our middle office business has proven it can save our law firm clients anywhere from 25% - 40% in document services’ fixed operational costs; accomplished through an on demand, or managed service outsourcing model.  We also provide contracted attorneys for document review and legal placement services for all job functions within law firms. Our legal placement business unit also provides outplacement services for displaced legal staff.  This is a huge differentiator when a firm is at the threshold of serious consideration for outsourcing middle office support functions.

Firms that are looking to reduce their annual fixed costs significantly must seek out business partners that have the infrastructure and the vision to move beyond traditional “Facilities Management.”  They need a business partner with a track record to execute on what they promise; paying for these services in a variable pricing model; and better recovering their operating costs. The best way to accomplish these goals is by forging a business partnership with a service provider and strategic partner that offers integrated managed services across many operational disciplines.  We believe DTI represents the future and hope you invest some time to get to know us.

Support the ALACC Foundation with Amazon Smile

Shop AmazonSmile and support the ALA Capital Chapter Foundation.   AmazonSmile offers the same great products, deals, and shopping experience as Amazon, the only difference is Amazon donates a portion of your purchase price to the charitable organization of your choice.  Simply visit smile.amazon.com you can log in using your email and password as if you were at amazon.com.   From there select ALA Capital Chapter Foundation as the charitable organization you would like to support, AmazonSmile will save that information and will make a donation every time you purchase through smile.amazon.com.

Step One: Go to smile.amazon.com log in using your email and password as if you were at amazon.com from there select a charitable organization you would like to support.

Step Two:  Select the ALA Capital Chapter Foundation.

Step Three: Shop! Amazon Smile will remember the charity you selected and will always donate 0.5% of your eligible purchases to that charity.

Space, The Next Frontier Recap

By: Tonia Gray

The only word to describe this event is “impressive.”  Actually, when describing Gunlocke’s impressive new showroom, the amazing food served, and all of the great services and products presented at this event, impressive is definitely an understatement.

The event provided an open floor tour of Gunlocke’s new showroom, with the opportunity to see the most innovative and newest office furniture available for any type of office move, total redecoration, or just a little sprucing up.  While leisurely roaming around the showroom, mingling with other ALACC members, possibly enjoying a great hand-tossed salad with jumbo shrimp (tossed by the chef himself), or a scrumptious ginger shrimp wrap, participants were able to speak with some of ALACC’s business partners who could provide any and everything a firm might need if they are looking to update or upgrade its space or office technology, move, or just save the firm some space and time.  If there was a need for it, there was someone there who could provide it.

Those not in attendance missed a great opportunity to see Gunlocke’s electric standing desk in action, and check out some of the other business partners’ newest office furniture and designs.  This was a one-of-kind event and, hopefully, the ALACC will do an encore so that everyone will have the opportunity to take advantage of the many services provided.  You won’t want to miss it!

West, Lane & Schlager Spotlight: DC Property Tax

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Back in December, we wrote an article on Creatively Attacking Pass-through Provisions and Other Tips for Saving Money. The focus was that during the first quarter of every year, tenants raise questions regarding the amounts they will be charged by their landlords for the operating expenses and real estate taxes incurred for the buildings in which they lease space.  And every year, tenants find the process of reconciling these expenses to be increasingly complicated.  These charges and taxes are often referred to in the leasing world as “pass through” expenses and they are inevitable costs above your standard rent.

Well, things in the District of Columbia just got a little more complicated when it comes to property taxes.

Effective January 1, 2015, the District of Columbia will be revamping the way commercial properties are assessed. Historically, the annual assessment methodology, or Income Approach, that evaluates buildings has included rent rolls, concessions, lease terms and occupancy rates. In a controversial decision, the District will change its methodology to a “market value” evaluation that puts less emphasis on the buildings actual situation and more emphasis on the market and what similar buildings are valued in the market.

As a rudimentary example, under the District’s new methodology a building that is 50% vacant could be assessed at the same value as a similar building that is 0% vacant. The key element missing is that the District will no longer be making assessment adjustments for vacancy and lease-up costs (such a vacancy). This leaves many of us in the industry scratching our heads and wondering why? For one, DC expects its commercial tax revenue will increase by over $10 billion in 2015 and two, the assessment process (according to DC) is expected to be streamlined causing less appeals and a smoother process for the appeals office.

At the end of the day, however, it’s the tenants who will foot the bill.

In a letter from the D.C. Building Industry Association, the largest association of building owners, to the Mayor earlier in the year, the association fervently protests the new methodology claiming that it is not only inequitable but actually against DC law. The letter provides some very good examples of actual situations: 1) 1717 Rhode Island Avenue, NW – the assessment is increasing from $65.3 million to $82 million (29%). At the time the property was almost 30% vacant, and 2) 2001 M Street, NW – assessment increased from $66 million to $94 million (42%). For the past two years the building has been vacant and is scheduled for demolition.

If you remember how “pass through” provisions work – tenants are responsible for their pro-rata share of increases in real estate taxes (and operating expenses) above its base year. A small 5,000 square foot law firm, as an example, who moved in to its new space in 2013 and has a 2013 base year for taxes – could be facing an enormous real estate tax pass through bill from its landlord. Hypothetically for the example, if the 2013 real estate tax base year was set at $8.00 per square foot and the building is assessed 30% higher in 2015 (per above) then the law firm would be subject to a $2.40 per square foot pass through charge in 2015 or $12,400 AND in each lease year thereafter. This can really add up.

Over the years, we at West, Lane & Schlager Realty Advisors (“WLS”) have challenged the “status quo” regarding operating and real estate tax pass throughs. We have consistently helped our client’s minimize their risk by introducing new and inventive concepts that have ultimately saved them precious dollars. If interested in learning more about the new D.C. tax assessment situation please feel free to contact us.


Richard I. Lane, Principal, Matthew D. Levin, SIOR, LEED AP, Senior Vice President with West, Lane & Schlager Realty Advisors, LLC (“WLS”), are the Chairs of WLS’s Law Firm Services Group. They collectively have over 45 years of related experience and are active members of ALA Capital Chapter. They specialize in tenant representation including financial and market analysis and long-term strategic planning. They have particular expertise in addressing the real estate needs of local and regional law firms and have worked extensively in the downtown Washington, DC office market.  For more information on WLS, please visit www.wlsrealty.com

ALA Business Partner Center

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Administrators Have Heart  

By: Beth L. Fowler, CLM

For the past eight years, the Capital Chapter has supported Lawyers Have Heart every June by staffing Water Station #2.  With a few exceptions, I have participated in this every year since we started, and it is one of my favorite Chapter activities.  Yes, you have to get up at O’Dark Hundred on a Saturday, and yes, it is usually incredibly hot, and yes, there are bugs.    However, the benefits definitely outweigh the inconvenience. 

First, we are supporting a great cause, and our efforts are really appreciated.  It is amazing how many runners say “thank you” or “thanks so much for doing this for us” as they grab the cup from your hand.  This was Scoti’s first year helping out, and she commented, “I have never felt so appreciated!” 

Second, there is a great feeling of accomplishment and teamwork and getting to know fellow administrators and business partners.  We start with a bunch of tables folded up, cups in boxes and big jugs of water, and end up with tables full of cups of water piled high ready for the first thirsty runner.  And in the process, we have bonded and gotten to know some colleagues we may not have known so well.  We hear from a lot of you that when you walk in to a networking lunch or other chapter meeting you feel out of place and don’t know anyone.  Guess what, activities like this, working together for a common cause, are how we got to know each other! 

Third, is the breakfast!  By 9:30, the race is over, the cups have been raked out of the street, and Water Station #2 is folded up, boxed up, and back on the truck.  We all head over to Old Glory, where a wonderful breakfast buffet awaits us, thanks to Paula and Scoti. Great food, great company, and then we all head off to our normal Saturday routines. 

So when the email comes out next year, I hope you will sign up and join me at Water Station #2.  I promise you, you will have fun and feel good.

Small Firm Section Update

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By: Melody Watson

Janet Clements and Niels Clegg of All Hazards Consortium presented for the Small Firm Management group a federally funded training program that uses a grassroots approach to engage people in their own emergency preparedness by providing education on effective shelter-in-place preparation.  The training session included realistic multi-hour sheltering scenarios and guided discussions regarding the importance of sheltering in place and preparing for emergencies which may require an extended period of time to shelter-in-place.  The goal of the training session was to provide information for administrators to use at their firm to make everyone in the workplace aware of issues that are critical to their protection in a shelter-in-place emergency, to stimulate their thinking about solutions that would work in their environment and to take responsibility and action of their own preparedness. 
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 Janet and Niels provided helpful tips on managing intense emotions; basic and medical needs that employees and employers can address to prepare for an emergency; and issues for everyone in the workplace to consider.  They provided an in-depth discussion on using the workplace emergency action checklist as an important tool/resource for preparing for a shelter-in-place emergencies.  Everyone found the tips and checklist to be very informative and helpful; attached is a copy of the workplace emergency action checklist.  Janet and Niels are available to present the training session to individual firms and can be reached at [email protected] and/or [email protected].    

Administrative Committees

Communications and Media Relations
As members of the Newsletter and Media Relations Committee, Chapter members participate in producing the award-winning Capital Connection. Members gather to brainstorm new ideas for editorial themes for upcoming editions. The newsletter reports Chapter business activities such as Section and Committee news and provides information about upcoming educational and other events. It also includes articles of interest to members and other legal management personnel, collected, authored and/or edited by members of the committee. This committee also works with other legal associations and the media to ensure that ALA and the Capital Chapter are represented in the legal industry. The Newsletter Committee welcomes new members.

Contact: Paula Serratore, [email protected]
Salary Survey
The Salary Survey Committee is responsible for maintaining, updating and running the local survey each year. They review the positions listed, the job descriptions, and the benefits questions to ensure that the survey remains relevant to the end users. The members of the committee also promote the survey within the Chapter to stimulate participation. In addition, the committee is tasked with selling the license to the survey software to other chapters within ALA for use in their locales. They also provide technical support and logistical guidance to those chapters who purchase and utilize our survey software.

Contact: Dina Dalecki (Chair), [email protected]; Janeanne Gorman (Co-Chair), [email protected]
Listserv: [email protected]

Educational Sections

Branch Office Administrators
The Branch Office Adminsitrators Section focuses on a broad range of topics of interest to local adminisraotrs who must coordinate with other officees of their firms. The Section's monthly luncheon meetings, held on the second Tuesday of the month, provide a venue for members to discuss issues of common interest, share ideas, and network. Members are encouraged to raise topics and to recommend speakers.

Contact: Richard Gibson (Chair), [email protected]; Wendy Iversen (Co-Chair), [email protected]
Listserv: [email protected]
Intellectual Property (IP)
The Intellectual Property (IP) Section focuses on all aspects of legal management as it pertains to the IP Administrator. The group discusses the complexity of the ever-changing IP environment and how to effectively create and apply IP specific, non-legal procedures in both boutique and general practice firms. The Section's monthly meetings, held the third Tuesday, are primarily lunch meetings and every third month is a dinner meeting. 

Contact: Kristine Miller (Chair), [email protected]; Dina Dalecki (Co-Chair), [email protected] 
Listserv: [email protected]
Human Resources
The Human Resources Section operates as a venue for educational information on global human resources topics and issues. While the Section comprises mostly HR professionals, any member is invited to participate. The Section meets the second Wednesday of every month and often has either industry speakers or roundtable discussions on topics such as recruiting, benefits, strategic planning, performance management, career pathing, retention and more!

Contact: Claudia Baragaño (Chair), [email protected]; Jane Schindler (Co-Chair), [email protected]
Listserv: [email protected]

Office Operations Management
The members of the Office Operations Management Section represent a cross section of legal expertise from functional administrators to branch office managers. The Office Operations Management Section (OOMS) meets on the fourth Tuesday of every month to discuss operation0related hot topics. We welcome all members to join the section, especially if you are an administrator in a small law office and you have to wear multiple hats. We can provide you with many best practices to run your operation smoothly.

Contact:  Gregory Fudge(Chair), [email protected]; Jeffrey Cole (Co-Chair), [email protected]

Listserv: [email protected]

Small Firm Management
The purpose of the Small Firm Management Section is to provide Administrators of law firms with 35 or fewer attorneys educational opportunities through vendor presentations, idea sharing and open forums specifically designed for those who work in smaller firms. The Small Firm Management SEction meets the 4th Tuesday of the month at host law firms.

Contact: Melody R. Watson (Chair), [email protected]; Emily Christianson (Co-Chair), [email protected]
Listserv: [email protected]

Technology
The Technology Section is looking for members to join the group for lively discussions about practical situations we all face daily in the information technology world. With ever-changing IT needs and issues, we will look at our firms' policies and procedures and help develop best practices and speak of the many concerns we all have. Even if you are not in the IT field,  your experiences and opinions will help us in bringing all departments of a law firm together and working on the same page.

Contact: Kenny Mitchell (Chair), [email protected]; Frank Schipani (Co-Chair), [email protected]
Listserv: [email protected]