Contents Enquiries.......................................................................................................... 2 What is Lexcel? ................................................................................................ 3 How will my practice benefit? ................................................................................ 3 How does Lexcel work? ....................................................................................... 3 What are Practice Management Standards? ............................................................ 3 Lexcel: an effective risk management tool ................................................................ 4 Who can apply? ................................................................................................. 4 Lexcel assessment and certification ....................................................................... 4 Where do other quality standards fit in? .................................................................. 5 The Lexcel Practice Excellence Kit ........................................................................ 5 Preparing for certification ..................................................................................... 5 Applying for Lexcel Certification ........................................................................ 6 Introduction ....................................................................................................... 6 Lexcel Commitment Scheme ................................................................................ 6 Choosing an Assessment Body ............................................................................ 7 Preparing for assessment .................................................................................... 7 Confidentiality ................................................................................................... 7 Cost of assessment ............................................................................................ 8 Duration of assessment ....................................................................................... 8 Applying for assessment ...................................................................................... 9 The assessment process ..................................................................................... 9 The certification process ...................................................................................... 10 Annual maintenance visits ................................................................................. 10 Lexcel Assessment Bodies .................................................................................. 10 The Lexcel Practice Management Standards ........................................................ 11 Example self-assessment checklist ........................................................................ 19 Self-assessment checklist .................................................................................... 25 Publications and order form .................................................................................. 31 What is Lexcel? LEXCEL is the quality mark developed by the Law Society of England & Wales for practices and legal departments which have been independently assessed as having achieved the Practice Management Standards. The Law Society of Northern Ireland has negotiated a licensing arrangement with LSEW to market and assess LEXCEL as a Quality Mark to solicitors in Northern Ireland. No compulsion is involved, it is a matter for the individual practice whether to undergo assessment. How will my practice benefit? By investing in Lexcel, your practice is likely to benefit in a wide variety of ways: * Increased profitability * Reduced mistakes and effective risk management * Improved client care * Provides a competitive advantage * Improves marketability to prospective clients * Management efficiency * Excellence will become standard * Assistance with Best Value compliance for local authorities. Failures in administration and service delivery, rather than lack of legal knowledge, tend to lead to most complaints and claims against solicitors, particularly in the areas of casework and communication with clients. Lexcel will provide you with the framework to take preventative action and put systems and procedures in place which will help you to reduce mistakes. In times of increased competition and demand from clients for evidence of good value and quality service, Lexcel provides a competitive advantage and peace of mind for clients. The Lexcel quality mark is evidence of a well managed practice committed to a quality service. How does Lexcel work? Lexcel uses a simple and transparent process: * Independently assessed * Available to any size or type of practice (including in-house, local government and sole practitioners) * Flexible approach: specifies standards, but not procedures (what to do, not how to do it) * Three year validity, with annual monitoring visits * Option to combine assessment with other quality standards. What are Practice Management Standards? Revised in July 2000, the core Practice Management Standards (PMS) are the basis for the Lexcel assessment (see page 11). Developed by the Law Society as a management tool to address the particular business needs of legal practices, they have gained wide acceptance as an aid to effective practice management and improved client care. The Standards are categorised into six areas: * Management structure * Services and forward planning * Financial management * Managing people * Office administration * Case management Lexcel: an effective risk management tool Increasingly, indemnity insurers will be looking to see what risk management procedures practices operate. Lexcel provides the structure to do this since it not only covers the main causes of claims against solicitors, but also includes specific risk management systems and procedures. The Law Society of Northern Ireland in recognition of these benefits allows a 10% discount for Professional Indemnity Insurance contributions for firms who hold recognised LEXCEL or other quality standards, provided their premium contributions are not subject to loadings or penalties It is likely that those practices who achieve LEXCEL will gain an advantage in their dealings with major purchasers of legal services, including public bodies, the lending institutions and major corporate clients. Lexcel could help cut the cost of your indemnity insurance premiums. Six of the key areas of concern identified by our Brokers and Claims Handlers are covered by Lexcel: 1. Risk assessment and management responsibility 2. Understanding services offered and their delivery 3. Appropriate skills, knowledge and training 4. Supervision of staff 5. File management, diary control and conflict of interest 6. Terms of engagement and Rule 15 compliance. In addition, the need for good communication is essential (both internally and externally). What steps are you taking to ensure that you have sufficient systems in place to satisfy insurers? Who can apply? Lexcel can be achieved by any practice, regardless of size or type of work undertaken. The sole practitioner with little or no staff can benefit as can larger practices or legal departments. The Standards incorporate flexibility as they identify what areas must be covered, but leave practices free to choose procedures which are appropriate to their own circumstances. Local government and commerce and industry legal departments can also apply for certification, despite normally being part of a larger umbrella organisation. The umbrella organisation must give the authority for the department to apply, and the department must be able to show it is a sufficiently independent unit by meeting certain criteria which are set out in the Lexcel Assessment Guide (see page 31). It is recognised that some adaptation and interpretation of the Standards is necessary when applying Lexcel outside the private practice environment. This has been taken into consideration when developing the scheme, and additional guidance has been included in the Lexcel Assessment Guide. As a matter of policy, all offices or branches of a practice must apply for certification simultaneously. However, providing a number of criteria are met, separate branch assessments will be considered by the Lexcel Assessment Panel on a case by case basis. Please contact the Deputy Secretary. Please note that certification is not available in offices outside Northern Ireland. Lexcel assessment and certification The Lexcel assessment is carried out by our independent Assessment Bodies (see page 10) who are already accredited for the purpose of assessing either ISO 9000 or Investors in People. By having the assessments carried out by third parties on behalf of the Law Society, it ensures that the process is independent, objective and rigorously quality controlled. The Standard itself remains under the control of the Law Society. Only Assessors who have achieved certain qualifications, who have experience of the legal sector, and have undergone special training, are approved by the Law Society to take part in the scheme. The Assessors will seek to identify whether, and if so, by which procedures, the practice is working to the core requirements. The process will safeguard client confidentiality. Appropriate checks will be made on the practice's complaints, disciplinary and conduct records. This should be done prior to the assessment taking place and must be done before a certificate is awarded. A practice that has successfully completed the assessment will be awarded a certificate by the Law Society and granted the right to use the Lexcel quality mark on stationery and promotional material. The certificate remains valid for three years, subject to successful monitoring visits, which are conducted at the first and second anniversary to ensure that the Standard is still being met. After three years a full reassessment is required. Where do other quality standards fit in? By working closely with ISO 9000 and Investors in People assessment units the Lexcel scheme offers practices the opportunity to be assessed to Lexcel alone, or undertake a simultaneous assessment with one of these standards, thereby avoiding duplication of time and costs. It also acknowledges that practices which have ISO 9000 or IIP will have already satisfied some of the requirements of Lexcel and takes this into account on assessment. Something that has recently been checked will not normally have to be checked again in depth, thus reducing the cost and time of the assessment. A comparative table is included. The Lexcel Practice Excellence Kit For practices who require additional support to implement the Standard, comprehensive material has been prepared. The Lexcel Practice Excellence Kit comprises: * The Lexcel Assessment Guide - sets out the requirements for the Practice Management Standards, and explains further the process of Lexcel certification. * The Lexcel Office Procedures Manual - book and disk version: provides practices with a blueprint for their office manual offering a set of procedures which match the requirements for Lexcel, and can be tailored as an in-house office manual to suit the requirements of different firms. This edition has been updated to include more coverage of supervision, risk management and client care, and has a new section on procedures for electronic communication. Also available is Quality Management for Law Firms - a comprehensive guide to quality management processes, which has been written to complement the material available in the Lexcel Practice Excellence Kit. The publication can be purchased through the Law Society of Northern Ireland Library. An order form is enclosed. Preparing for certification If you are interested in gaining the Lexcel quality mark you can start preparing now by: * Assessing how much of the Standards you already have in place (see the self-assessment checklists from page 19) * Registering on the Lexcel Commitment Scheme (form enclosed) * Obtaining and reading the Lexcel Practice Excellence Kit * Reading about marketing, management, client care, IT (the Law Society Library for Publications) * Considering whether you need help from a consultant to implement the Standards. Applying for Lexcel Certification Introduction These guidance notes are for practices applying for assessment. More comprehensive guidance can be found in the Lexcel Assessment Guide (published as part of the Lexcel Practice Excellence Kit). An application pack can be obtained from the Lexcel Office. Lexcel Commitment Scheme Once your practice has decided to achieve Lexcel, return the Lexcel Commitment Scheme (form enclosed) to the Deputy Secretary and register your commitment as soon as possible. Choosing an Assessment Body Before you submit your application form, contact your chosen Assessment Body. If a practice intends to apply for Lexcel assessment only, it should make little difference which Assessment Body it chooses, as Lexcel will be assessed in a standard way. However, different Assessment Bodies have different fee structures and it is advisable to seek quotes. Choice of Assessment Body may be influenced by whether the practice already has the ISO 9000 or Investors in People quality mark, or plans to achieve either quality mark in the future, since simultaneous assessments can be arranged. As a result, the overlaps with the Lexcel requirements may be taken into account on assessment to reduce the time and cost involved. A full list of the Lexcel Assessment Bodies is included. Preparing for assessment Your practice is likely to already be meeting a number of the Lexcel requirements (especially if you have other quality standards in place). Before proceeding, practices will therefore find it useful to complete the Self-Assessment Checklist (see page 25). Any weaknesses identified should be corrected before assessment. An example of a completed Self-Assessment Checklist has been enclosed in this information pack (see page 19) to give an indication of how it should be completed. It may be necessary to repeat the self-assessment process a number of times before arriving at a satisfactory result. A practice should therefore make as many copies of the Self-Assessment Checklist as necessary, always keeping a blank to be completed when the self-assessment process produces an entirely satisfactory result. Electronic copies are also available from the Law Society by e-mailing sbryson@lawsoc-ni.org Further help with implementing the Lexcel requirements can be found in the Lexcel Practice Excellence Kit which contains the Lexcel Assessment Guide and the Lexcel Office Procedures Manual. Training is also available for internal advisers, such as quality managers or practice managers, who may be supporting their practices with the implementation of the Practice Management Standards. The training will ensure that they are familiar with the requirements of Lexcel and the assessment process. For further information on training, contact the Deputy Secretary. Whilst it is not necessary to use a consultant, some practices may choose to seek the help of a consultant. Training has been offered to consultants so that they are familiar with Lexcel and the assessment process and are kept up-to-date with any developments. Details of consultants who have attended the Law Society training courses are enclosed. Consultants who have attended a training course are issued with a certificate of attendance. Practices should ensure that the certificate relates to a recent course and that the consultant is up-to-date with the scheme. This is not a guarantee that a consultant has experience of the legal sector. A copy of a code of practice that you are recommended to follow when seeking consultancy advice is also enclosed. Confidentiality A number of the Lexcel requirements concern case file management and assessment of those requirements would normally include the Assessor gaining access to a sample of case files to gather evidence that the requirements are being met. Practices should take account of the full guidance on confidentiality set out in the Lexcel Assessment Guide and, where appropriate, should start to build up a body of case files that Assessors can have access to by writing to clients as soon as possible, advising them that the practice is seeking the Lexcel quality mark and seeking consent to disclose case files to the Assessor. This may be included as part of the client care letter for new clients instructing the practice. Seeking clients' consent will not only assist with the gathering of evidence for the assessment process but will also provide the practice with a valuable opportunity to promote to clients the practice's commitment to quality. The Law Society has a confidentiality agreement with the Lexcel Assessment Bodies, but practices will also want to ensure that any agreement entered into with the Assessment Body will cover a requirement to keep information confidential. In some circumstances practices may not be able to allow inspection of some or all case files. This may be because the client has refused to give consent, or in some cases the practice may exercise its judgement (as explained fully in the Lexcel Assessment Guide), and not seek a confidentiality waiver from clients, for example, in commercially sensitive matters. If the practice cannot allow access to case files, it will have to work with the Assessor to identify other ways in which satisfactory evidence can be established. This is likely to be done by the Assessor interviewing the fee-earner with conduct of the matter. This method may take longer, and may increase the cost of assessment. It is therefore advisable that the practice's approach to access to case files is discussed with the Assessment Body at an early stage. Cost of assessment There are two elements to the cost of Lexcel assessment: (1) An annual registration fee charged by the Law Society which goes some way to cover the scheme's administration costs. For the initial assessment, your practice will be invoiced by the Law Society after your application is received. Your practice will then receive a similar invoice after each annual maintenance visit. The initial and annual registration fees payable are: Private Practice:- Sole Practitioner £50.00 All Other Firms £25.00 per partner, e.g. a 5 partner firm - £125.00 Non private practice The registration fee will be commensurate with fees for private practice, but adjusted to take account of senior staff who are not admitted solicitors. Please contact the Deputy Secretary for further details. (2) An assessment fee charged by the Assessment Body for conducting the assessment. The cost of assessment and annual maintenance visits varies according to the size of the practice. Each Assessment Body will have its own charging structure and charges are likely to be based on day rates. Assessment Bodies are required to be open about their charges and provide quotes to practices enquiring about Lexcel assessment, based on the specifications of the individual practice. The daily rates may be in the region of £500-£650 which are the level of fees charged by Assessment Bodies to assess ISO 9000/Investors in People. Practices should enquire whether there will be any additional expenses on top of the fees quoted, such as for Assessor's expenses or work conducted off site. Duration of assessment When calculating the duration of the assessment, the main factor will be the number of fee-earners, though a number of other factors must be considered: * The number of support staff * The number and geographical location of offices * The number of different categories of law offered and work patterns * Whether a practice already has ISO 9000 or Investors in People * Whether the assessment is for Lexcel alone or combined with ISO 9000 or Investors in People. The following tables outline the likely duration of Lexcel only assessments for both single and multi-office practices. They are intended to give practices a rough guide as to how long an assessment may take, and therefore enable practices to work out the likely cost. The costs for annual maintenance visits are likely to be around half those of the full assessment. To calculate the likely duration of assessment for the practice, add the number of day(s) identified from table A below to the number identified from table B. For example: Practice A has one main office with 4 fee-earners and 2 support staff. Estimated duration of assessment is: 4 fee-earners @1 day + support staff @ 0-0.5 days. Total = 1-1.5 days. Practice B has a main office with 10 fee-earners and 6 support staff, and a branch office with 2 fee-earners and 1 support staff. Estimated duration of assessment is: main office @ 1.5-2.5 days + branch office @ 0.5-1 day. Total = 2-3.5 days. Applying for assessment Once your practice has satisfied itself that it meets the Lexcel requirements and has selected an Assessment Body, an Application Form should be submitted to the Lexcel Office at the Law Society. In addition to the Application Form, Status Enquiry Forms will need to be signed by all staff who are involved in earning fees in order to authorise the Law Society to check the practice's indemnity insurance and disciplinary records prior to the assessment taking place. The Application Form and Status Enquiry Forms are available on request from the Lexcel Office. Practices should take as many photocopies of the relevant Status Enquiry Forms as are necessary. With the completed Application Form, the practice should send to the Lexcel Office: * Some background information about the practice (ie a copy of the practice's brochure) * A copy of the completed Self-Assessment Checklist, in its final form * Full list of all employees - identifying fee-earners (stating admitted or non-admitted) and non-fee-earners * For non-private practices, a letter authorising the application * Signed Status Enquiry Forms for the practice and all relevant personnel. The Lexcel Office will provide your chosen Assessment Body with a copy of the Application Form and other relevant information. The status enquiry checks will be made at the outset so that if there is a problem, practices do not incur costs of Lexcel assessment unnecessarily. If the status checks reveal matters such as serious professional misconduct or fraud, the Law Society reserves the right to withhold, withdraw, defer or suspend certification. Such a decision will be made by the Lexcel Assessment Panel ( established by the Law Society to oversee the Lexcel scheme. The results of the status enquiry checks will not be revealed to the Assessment Body, which will only be informed whether the assessment may proceed or not. The status enquiry checks may take approximately four to six weeks depending on the volume of checks that are being made. The Law Society will notify the named person on the Application Form whether the assessment may proceed. Practices must inform the Law Society of any changes to the practice's disciplinary records after the approval to proceed to assessment has been given. The assessment process The process and assessment criteria are intended to be entirely transparent and full details are set out in the Lexcel Assessment Guide. This publication provides further guidance on the conduct of Lexcel assessments such as sample size guidelines for interviews and case files, guidance on non-compliances, and arrangements for Assessors to report to the practice and the Law Society. Assessment Bodies are responsible for ensuring that their nominated Assessors meet the Law Society's criteria for Assessors and attend the Law Society's training. They are also responsible for quality assuring the assessment process and the administration of that process. Any complaints about the assessment or the Assessor should be taken up with the Assessment Body direct. The Law Society will monitor complaints and may adjudicate over any complaints that cannot be resolved. You will be invoiced separately by your chosen Assessment Body for the relevant assessment costs. The certification process The Assessor will report to the Law Society on whether a practice has met the Lexcel requirements. The report will be reviewed by the Law Society and any queries arising from the report referred back to the Assessment Body. If the practice has met the requirements of the Standard, the Law Society will advise the practice and the Assessment Body of the outcome. If there are any doubts about whether the practice has met the Standard, the matter will be referred to the Lexcel Assessment Panel, and the practice and Assessment Body informed of the outcome. The Lexcel Appeals Panel will consider appeals against decisions taken by the Lexcel Assessment Panel. Annual maintenance visits To maintain the Lexcel certificate and ensure continuity, practices must undergo annual maintenance assessments, and after three years a full re-certification assessment. An annual registration fee is payable to the Law Society on each occasion. There will also be an assessment fee payable to the Assessment Body. Practices should inform the Law Society where necessary of any changes in personnel since the previous assessment and must complete Status Enquiry Forms for any new starters since the date of the previous assessment. In addition, the Society will carry out new Status Enquiry checks in relation to the practice. Lexcel Assessment Bodies The following ISO 9000 or Investors in People Assessment Bodies have been authorised to conduct Lexcel assessments on behalf of the Law Society (they can also answer technical queries about the Lexcel assessment process): Assessment Body Head Office Address Contact Details ISO 9000 Certificating Bodies SGS Yarsley ICS Ms Mary Norton International Certification Services Carnegie Building Library Hall 121 Donegall Road BELFAST BT12 5JL N Ireland Tel: 028 9024 0666 Fax: 028 9024 4206 www.sgs.co.uk mnorton@sgsgroup.com Investors in People Assessment Units Assessment North East Ltd Business & Innovation Centre Sunderland Enterprise Park Sunderland Tyne & Wear SR5 2TA Tel: 0191 516 6464 Fax: 0191 516 6470 E-mail: info@aneltd.co.uk The Lexcel Practice Management Standards The Lexcel Practice Management Standards (PMS) were revised in July 2000. Lexcel's Practice Management Standards provide a guideline against which practices can measure the way they currently manage themselves as well as a checklist for planning improvements and developments. The Standards do not prescribe procedures and systems in detail. Instead, they identify the key disciplines in which procedures and systems are needed that will suit the needs of both the practice and their clients. Sources of precedents and further guidance are suggested below. Compliance with the Solicitors Practice Regulations. All solicitors are subject to the general law, the Solicitors Practice Regulations, Solicitors Accounts Regulations, and other Society Regulations. These requirements are not repeated in these Standards. However, establishing systems and procedures as suggested by the Standards will assist practices in ensuring compliance. In order to achieve Lexcel: - practices must comply with all the core Practice Management Standards which are indicated by the words "will" and "must" and the use of bold type - while "should" indicates a recommendation - and the word "may" conveys discretion. A: MANAGEMENT STRUCTURE A1 Practices will have a written description of their management structure which designates the responsibilities of individuals and lines of accountability. There will be a named supervisor for each area of work (a supervisor may be responsible for more than one area). The supervisor must have appropriate experience of the work supervised and be able to guide and assist others. A1.1 The management structure should be appropriate for the partners, principals, and staff, the size of the practice, its location, and the type of work it does. A1.2 Practices should be able to explain their management structure, for example to incoming partners, principals or staff, and the written description may for example: a) List the designated responsibilities of individuals in the practice (including responsibility for adherence to these Standards) b) Name committees (if any) and summarise their terms of reference c) Describe reporting structures in the practice, for example by including a "family tree". A1.3 Supervisors should be able to describe their experience and the ways in which they guide and assist those under their supervision. B: SERVICES AND FORWARD PLANNING B1 Practices will document: a) Key objectives for 12 months and an outline strategy covering a further two years to provide a background against which the practice may review its performance and may take decisions about its future. Plans must identify the resources and skills necessary to deliver the strategy, with a finance plan and budget. Plans must include an information technology strategy b) The services they wish to offer; the client groups to be served; how services are to be provided; and the way in which services are designed to meet client needs c) Their approach to marketing d) Reviews of all elements specified in B1 at least every six months. Practices may choose the format and level of detail of documentation that suits them best. B1.1 This documentation need not be disclosed to third parties. Strategy B1.2 The strategy should be sufficient to provide a framework for decisions about, for example, capital expenditure (including computers), office location, staffing, strategic and business risks facing the practice, changes in the external environment and targeting new business, but need not be written in considerable detail. B1.3 Most practices will already have agreed annual budgets, financial targets etc. (as well as views about how the practice ought to develop) and these provide a useful starting point for strategy planning. A finance plan may consist of a projected profit and loss account in detail for one year and in outline for the subsequent two years. B1.4 Practices may wish to consider the following: a) Setting goals for the practice for the coming five years b) Adopting a "practice purpose statement" describing the long term aims of the practice. Services B1.5 How the practice provides services will depend upon its clients and services. Issues may include location of offices, physical access to the premises, languages spoken, facilities for clients, electronic communication etc. These issues should normally be addressed in the practice's strategy. Marketing B1.6 A marketing plan should form part of the practice's strategy. For those satisfied with their current quality and level of business, a marketing plan will need to be less detailed than for a practice wishing to expand, develop a new specialism, or uncertain about its future client base. For some areas of work, the plan may need to describe how to contain demand to an acceptable level (rather than how to encourage additional business), taking account of that work's profitability and the resources of the practice. B1.7 A marketing plan may: a) Describe the services to be provided and client groups to be served, how services will be delivered, and the practice's client care policy b) Describe the practice's resources including skills and knowledge c) Set out objectives for the clients or business to be developed, which should be measurable and related to a time frame d) Explain how the structure or personnel or organisation of the practice will need to develop if those objectives are to be attained e) Provide a timetable for marketing activities and a budget f) Allocate and describe appropriate individual responsibility for the marketing activities g) Describe arrangements for monitoring response to the marketing effort (for example recording sources of referrals etc). Non-discrimination B2 Practices will document procedures on non-discrimination, and have regard to guidance on non-discrimination in accepting instructions from clients and the provision of services issued by the Law Society from time to time. See also D8. ------------------------------------------------------------------------------------------------------------------------------------------- C: FINANCIAL MANAGEMENT Responsibility C1 Practices will document responsibility for financial affairs. Financial information C2 Practices will be able to provide documentary evidence of the following: a) Annual budget (including, where appropriate, any capital expenditure proposed) b) Quarterly variance analysis of income and expenditure against budget c) Annual profit and loss account d) Annual balance sheet e) Annual cash flow forecast f) Quarterly variance analysis of cash flow. C2.1 In addition, practices may find it helpful to maintain the following management information (but note that it will not be practicable to produce much of this in the absence of full computerisation): a) Separate capital expenditure budget b) Weekly or monthly aged list of debtors c) Analysis of the cost of services (including apportioned overheads) d) Analysis of cases by category e) Analysis of cases by client name f) Analysis of fees by fee-earner g) Analysis of fees by category or department h) Analysis of working capital. C2.2 Note that practices will not normally disclose financial information to third parties; but, for example, they may in appropriate cases instead make available an accountant's certificate that systems to provide the relevant information within the practice itself are in place. Computerisation C2.3 Implementation of a computerised accounting system will assist cost-effectiveness. It is unlikely that most practices could comply with these Standards in the absence of computerisation. Practices will note that B1a requires an information technology strategy. C2.4 Computerised accounting systems can maintain financial records as required by the Solicitors Accounts Rules and provide other reports and information as well. Details are given in the Law Society's directory publication: "The Software Solutions Annual Guide". C2.5 There is a significant cost in money and time attached to planning for development of information technology, including purchase of software, training and support following implementation. But, if properly planned, this investment will be worthwhile. Time recording C3 Practices will have a documented system that ensures that time spent on casework can be properly recorded and attributed. C3.1 The system may provide that some matters or types of matter need not be subject to time recording (for example, where a fixed fee has been agreed) and in that case time recording should be carried out on a sample basis. D: MANAGING PEOPLE Job descriptions D1 Practices will document the skills, knowledge and experience required of fee-earners and other staff, the tasks they are required to perform, usually in the form of a written job description; but employment contracts may reserve job flexibility. D1.1 Practices may prepare a personnel plan to help ensure that skills, knowledge and experience within the practice are developed to meet needs indicated in the forward planning documents (section B). Recruitment D2 Practices will have documented arrangements which evaluate the skills, knowledge and experience possessed by applicants for posts in the practice, and their integrity and suitability. D2.1 For example, applicants may be sent a copy of the job description and a form to complete; and the contents of completed applications may then be checked against the requirements in the job description; and questions at interviews may be related to the completed application and to the job description. New post-holders D3 Practices will have documented arrangements to provide an induction process for new post-holders. Objectives and performance appraisal D4 Practices will have documented procedures to: a) Record the responsibilities and objectives of each partner, principal, and member of staff in the practice b) Evaluate performance of staff at least annually against those responsibilities and objectives c) Record in writing the performance appraisal, the record to be kept confidential to the practice and to the post-holder. Training D5 Practices will have documented arrangements to ensure that: a) All partners, principals, and staff are trained to a level of competence appropriate to their work b) Training and development needs are assessed for each person against the objectives of the practice and are reviewed at least annually c) Skills and knowledge required for the management and organisation of the practice (as well as for legal practice) are provided for in training and development d) Appropriate written training records are maintained. D5.1 Practices should also ensure that for cost-effectiveness and to maximise development of the practice's own resources, skills and knowledge acquired by fee-earners and other staff are communicated within the practice through training in-house. Communications D6 Practices will have documented arrangements (informal or otherwise) which foster communication within the practice, and encourage suggestions for improvement. Supervision D7 Practices will ensure that there are appropriate documented arrangements for supervision (supervision of casework is the subject of F10). Equal opportunity D8 Practices will document procedures on equality of opportunity including recruitment and employment procedures and have regard to guidance on equality of opportunity issued by the Law Society from time to time. See also B2. E: OFFICE ADMINISTRATION Responsibilities E1 Practices will document the facilities needed to provide services including: a) Maintenance and support services b) Health and safety conditions c) Annual review of risk. E1.2 Issues addressed in the review of risk in relation to facilities should include health and safety considerations. Forms and procedures E2 Practices will maintain an Office Manual collating information on office practice, which must be available to all members of the practice. There will be documented procedures to: a) Note each page with the date and/or number of issue b) Review the Manual at least annually c) Update the Manual and record the dates of amendments. E2.1 Precedents for office forms and procedures are offered in the Law Society's Lexcel Office Procedures Manual. Legal reference material E3 Practices will have documented arrangements to ensure that: a) Fee-earners have ready access to up-to-date legal reference material for the areas in which the practice offers a service b) Fee-earners receive timely information about changes in the law, practice and procedure relevant to their work. F: CASE MANAGEMENT Systems F1 Practices will have documented arrangements to: a) Maintain an index of matters b) Facilitate identifying any conflict of interest c) Monitor the number and type of matters undertaken by each fee-earner to ensure that they are within his or her capacity d) Maintain a back-up record of key dates in matters e) Ensure proper authorisation and monitoring of undertakings given on behalf of the practice f) Ensure proper risk management procedures are in place, including: i. Appointing an overall Risk Manager for the practice ii. Maintaining information about the generic risks associated with the type(s) of work carried out iii. Listing and defining types of case which are likely to fall within acceptable risk levels iv. Listing and defining types of case which are likely to fall outside acceptable risk levels v. Implementing procedures to manage all cases which fall outside acceptable risk levels, including mitigating actions and contingency plans, where appropriate vi. Conducting an annual documented review of all risk assessment data generated within the practice. F2 Where required to do so by a third party funding the legal costs of a matter, or by a client instructing the practice in a number of matters, the practice will have a system which enables all relevant matters to be identified. Client Care F3 Practices will have written procedures to ensure compliance with the Solicitors Costs Information and Client Care Code 1999 and to provide for clear and regular communication with clients, third parties and the court as necessary in relation to costs. They must: a) Inform clients of the basis of charging b) Provide the client with advance costs information including: i. The best information possible about the likely cost, including a breakdown between fees, VAT and disbursements ii. Where time spent is a factor in the calculation of the fees, a clear explanation of the time likely to be spent in dealing with the matter iii. Agreeing a fixed fee; or giving a realistic estimate; or giving a forecast within a possible range of costs iv. Informing the client if any estimate or quotation is not intended to be fixed, and if charging rates may be increased v. Explaining to a private paying client that the client may set an upper limit on the firm's costs, which may be reached without further authority vi. Explaining to the client the reasonably foreseeable payments which may be required to be paid to the solicitor or to a third party, and when those payments may be needed vii. Arrangements for updating costs information and informing the client at regular intervals (at least every six months) viii. Whether the client may be eligible for any public funding, and if so, the costs implications for the client, particularly in relation to the statutory charge, where applicable ix. Whether the client's liability for costs may be covered by insurance or another party, e.g. a Trades Union x. Whether the client's liability for another party's costs may be covered by insurance. F3.1 Practices may use standardised checklists to ensure appropriate information is obtained and given at each stage of a matter. At the outset of a case F4 Practices will establish a documented procedure for taking instructions which will ensure that fee-earners: a) Agree and record: i. The client's instructions and objectives ii. A clear explanation of issues raised and the advice given iii. Action to be taken by the practice and likely timescale iv. Strategy decided upon and any case plan v. The name and status of the person dealing with the matter and the name of the person responsible for its overall supervision and whom to contact about any problem with the service provided b) Confirm these with the client (ordinarily in writing) c) Provide written information to the client about complaints procedures d) Identify key dates in the matter and record these in the file and in the back-up system e) Discuss with the client whether the likely outcome will justify the expense or risk involved, including, if relevant, the risk of having to bear an opponent's costs f) Consider whether there is any unusual degree of risk to the practice associated with the matter and record this on the office file g) Implement procedures to manage risk to the practice assessed at unacceptable levels in accordance with the practice's documented procedures. Progress of the matter F5 Practices will have documented procedures to ensure that: a) Information on progress of the matter (or reasons for lack of progress) is given to the client at appropriate intervals b) Information about changes in the action planned to be taken in the matter, strategy or case plan, its handling (including person with conduct), or cost, is given to the client promptly c) The client is informed in writing of any circumstances which will or may affect the degree of risk involved or cost benefit to the client of continuing with the matter d) A timely response is made to correspondence and telephone calls e) Information on cost, and in publicly funded cases, the effect of the statutory charge if any, is given to the client in writing at least every six months and timely reference is made to the client when an agreed limit on costs or stage in progress is approached f) In litigation matters information about adverse costs orders is given to the client immediately as payment may be required forthwith g) A case plan may also be prepared in a complex matter, agreed with the client, and periodically reviewed and updated. Documents etc. F6 Practices will have documented procedures to ensure that they are able to identify and trace all documents, correspondence and other information relating to a matter and that these are properly stored and are readily accessible. At the end of the case F7 Practices will have documented procedures to ensure that at the conclusion of the matter, the practice: a) Reports to the client on the outcome and explains any further action that the client is required to take in the matter and what (if anything) the practice will do b) Accounts to the client for any outstanding money c) Returns to the client original documents and other property belonging to the client if required (save for items which are by agreement to be stored by the practice) d) If appropriate, advises the client about arrangements for storage and retrieval of papers and other items retained (in so far as this had not been dealt with already, for example in terms of business) e) Advises the client whether they should review the matter in future, and if so, when f) Carries out a concluding risk assessment in relation to the case g) Notifies the practice's overall Risk Manager if the final assessment differs from the initial assessment, and provides a written explanation. Services from others F8 Practices will establish a documented procedure for using barristers, expert witnesses etc. in providing the practice's legal services which will include provision for the following: a) Use of clear selection criteria which should not discriminate in relation to gender, sexual orientation, race, disability or religion b) Where appropriate, consultation with the client in relation to selection, and proper advice to the client on choice of advocate c) Maintenance of records (centrally, by department, or by office) on barristers and experts used d) Giving of instructions which clearly describe what is required and which, in litigation matters, comply with the rules of court and any court orders e) Checking of opinions and reports received to ensure they adequately provide the information sought (and, in litigation matters, comply with the rules of court and any court orders) f) Payment of fees. File management F9 Practices will have documented arrangements to ensure that: a) The status of the matter and action taken can be easily checked by other members of the practice b) Documents are arranged in the file in an orderly way c) Key information is shown clearly on the file (for example at the front of the file) which will include details of any undertakings given on behalf of the practice. File review F10 Practices will have documented arrangements to supervise the conduct of casework, and these will include: a) Availability of a supervisor to guide and assist others b) Appropriate procedures to allocate work in relation to the qualifications and experience of fee-earners and their workloads c) Arrangements for the management of case-files to be reviewed periodically and the review will (except where there is only one fee-earner in the practice) be carried out by a fee-earner who has not been involved in the day-to-day conduct of the matter d) A record of the review to be kept on the case file and on a central record e) Arrangements to ensure that any corrective action identified is carried out promptly. F10.1 It will be a matter for each practice to determine the frequency of such reviews and whether all files are reviewed or a sample selected. F10.2 Practices may also adopt other arrangements to ensure appropriate supervision of casework. Options include: a) Checking incoming post b) Outgoing post signed by supervisor c) Regular review sessions with a supervisor, covering: i. New cases taken on, and discussion of "case plans" in complex cases ii. Progress review for current cases iii. Evaluation of outcomes of completed cases iv. Consideration of training needs in relation to legal knowledge and skills. Complaints F11 Practices will have documented arrangements for complaints handling, including: a) Definition of a complaint b) Making the complaints procedure accessible to all clients, and providing a copy of the complaints procedure on request c) Reporting and recording centrally every complaint made by a client d) Responding appropriately to any complaint within a defined timetable e) Identifying the cause of any problem of which a client has complained, offering any appropriate redress, and correcting any unsatisfactory procedures f) An annual documented review of any complaints to establish issues where client care may be improved, including clients' perceptions of the procedure itself. 3 Lexcel 2001 4 Lexcel 2001 5 Lexcel 2001