The recession continues. Income is down and expenses are up, and we are still in a time of necessity and thus invention. Lawyers are no exception.

Attorney Greg Kim is Hawai'i's pied piper of virtual law firms — he is in the national firm of Virtual Law Partners, which has more than 40 partners, and no associates or offices, and is growing by between two and four lawyers per month. Greg works at home, hotspots or the Plaza Club.

Michael Steiner of Steiner and Associates is planning a conference with other local consultants this fall to talk about law firm virtualization. Their plans are optimistic — after all, there are 7,200 Hawai'i lawyers who might attend.

NOT FOR EVERYONE

A virtual firm doesn't have an office, and has only minimal administrative and support staff. It creates a space for its lawyers and staff to work together on the Web and by cell phone. Its expenses are way below conventional firms, and it can more easily change size.

Lawyers are generally conservative. Some simply want to work in the office, and may not be the best candidates for virtualization. Big clients prefer big conventional firms. They may not be good candidates either.

So far, the idea of virtual firms has not been embraced by the profession. But as time goes on, virtualization is likely to become more popular among both lawyers and clients, big and little.

VIRTUAL HYBRIDS

Virtualization doesn't have to be total — it can be hybrid. A conventional firm can create a virtual division to test and develop a model that might work on a larger scale.

A hybrid might have only a small office — a conference room and campus-style work areas for the lawyers and for scanning, copying and printing. The paralegal and admin staff would work at home. The files, forms, library and billing would be online. The firm would have a reliable Internet connection, digital storage and document management system.

One size doesn't fit all, and hybrid possibilities are unlimited. Every element must be designed for high leverage, with careful consideration not only of the way the firm is supposed to work now, but how it will work later.

WE HAVE THE TECH

The firm could use existing desktop software on a remote server through virtual network software or Software-as-a-Service applications through the Internet. With a virtual network, you can use Microsoft Office and Sharepoint to access data on the remote server. With the Internet, you can use Microsoft Office Live or Google Documents and other SaaS programs from any computer.

Conventional reception systems are outdated and cell phones can substitute for landlines. A remote live receptionist can take messages and redirect calls to voicemail or members of the firm anywhere. The Web is brimming with conference call and virtual receptionist services at minimal rates.

In a conventional firm, a lawyer spends more than half of his day paying for overhead. In a virtual firm, he spends much less time doing that, leaving him with more time to develop his practice, refine his specialties, provide general business guidance to clients and do community service.

FACE-TO-FACE

In a virtual firm people see each other less, so efforts must be made to keep them connected. Greg's firm has regular video and conference calls, a system of practice and support teams and a "firm culture" officer.

As with other professions, the legal profession will inevitably move toward virtualization. Lawyers have been reluctant to become virtual without a long-term proven model. Greg thinks that when that model is revealed, virtual practice will snowball. He says, "my personal hope is that my firm's model will help the legal profession in general and that other firms can embrace and benefit by it."