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Exam Code: ALA CLM
Exam Name: Certified Legal Manager
Number of Questions: 125 (100 scored- 25 unscored pretest items).
Time Allotted: 3 hours.
Passing Marks: Determined by Angoff Method-based criterion-referencing (not a fixed percentage).

Financial Management 29%

A. General Accounting

- Knowledge of general accounting procedures- systems- terms- concepts and policies- including familiarity with general ledger- general journal entries- cost accounting- fixed asset accounting- accounts receivable and accounts payable.
- Knowledge of banking/investment policies- procedures and types of accounts.
- Knowledge of trust accounting procedures and regulations.
- Knowledge of U.S. federal payroll and employee benefit procedures- and tax and reporting requirements (e.g.- Internal Revenue Service Code).
- Knowledge of legal organization structures and the laws and regulations regarding accounting procedures for each structure- including tax reporting requirements.
- Knowledge of accounting for law firm/law office operations- including time and billing systems- billing methods- electronic billing- collection procedures- and cost recovery guidelines.

B. Financial Information and Analysis

- Knowledge of the content and structure of financial statements.
- Knowledge of financial controls (e.g.- division of responsibilities).
- Knowledge of methods of financial analysis (e.g.- calculating and interpreting various financial ratios- conducting profit analyses- analyzing comparative financial information across fiscal years).
- Knowledge of budgeting- financial reporting- cash flow analysis- model building and variance analysis.
- Knowledge of alternative fee arrangements (e.g.- bonus based- contingency- flat fee- task based- volume discounts).
- Knowledge of client matter budgeting as it relates to electronic billing and/or allocation of firm/law office time and resources.

Human Resources/Talent Management 31%

A. Employee Selection and Promotion

- Knowledge of procedures and tools for recruiting- selecting and promoting employees.
- Knowledge of U.S. federal employment laws (e.g.- Civil Rights Act of 1991- Americans with Disabilities Act [ADA]- Uniformed Services Employment and Reemployment Act [USERRA]).

B. Performance Management and Compensation

- Knowledge of U.S. federal employee benefit laws (e.g.- Consolidated Omnibus Budget Reconciliation Act [COBRA]- Fair Labor Standards Act [FLSA]- Family and Medical Leave Act [FMLA]- Health Insurance Portability and Accountability Act [HIPAA]- Employee Retirement Income Security Act [ERISA]).
- Knowledge of U.S. federal employment laws regarding harassment and discrimination (e.g.- Civil Rights Act of 1991- Americans with Disabilities Act [ADA]- Equal Employment Opportunity Commission [EEOC]).
- Knowledge of performance management systems and procedures (e.g.- performance appraisal- discipline- reporting- termination).
- Knowledge of workforce training and professional development systems and methods (e.g.- learning management systems- continuing education).
- Knowledge of employee motivational techniques.
- Knowledge of employee incentives/rewards systems (e.g.- compensation- employee benefits).

C. Organizational Development

- Knowledge of leadership styles- techniques and assessments.
- Knowledge of team development and management principles (e.g.- self-directed teams- team building).
- Knowledge of organizational development and change management techniques.
- Knowledge and skill in negotiation and conflict management techniques.
- Knowledge of American Bar Association principles and best practices for implementing and evaluating diversity and inclusion programs.
- Knowledge of process improvement methodologies and tools (e.g.- Legal Process Management).

Legal Industry/Business Management 17%

A. Legal Industry

- Knowledge of the American Bar Association Model Rules of Professional Ethics as it pertains to law firm management (e.g.- conflict of interest- advertising- client file management).
- Knowledge of professional liability issues.
- Knowledge of changes/trends in the legal industry.

B. Business Management

- Knowledge of business development and marketing techniques- including market analysis and business development tools (e.g.- social media- website design- search engine optimization [SEO]).
- Knowledge of laws and regulations regarding business insurance coverages.
- Knowledge of risk management and planning techniques (e.g.- disaster and business continuity planning).
- Knowledge of strategic business planning principles and techniques (e.g.- SWOT analysis- 5-year planning- succession planning).
- Knowledge of workforce demographics and trends.

Operations Management 23%
A. Technology

- Knowledge of the features and capabilities of hardware and software systems and applications.
- Knowledge of information technology security risks and mitigation techniques.
- Knowledge of information governance (e.g.- requirements for paper and electronic document management- record retention- discovery holds and requests).
- Knowledge of regulations and controls for cybersecurity- electronic privacy and confidentiality.

B. Operations

- Knowledge of facilities management procedures and techniques.
- Knowledge of leases and contract agreements- including financing options.
- Knowledge of project management- including tools and software.
- Knowledge of procurement and contract management procedures (e.g. developing requests for proposals- evaluating proposals- overseeing contractor performance).
- Knowledge of principles- laws- and/or programs related to workplace safety- health- and mental wellness (e.g. ergonomics- Occupational Safety and Health Act [OSHA]- Employee Assistance Programs [EAPs]).
- Knowledge of office space assessment- design and development strategies.
- Knowledge of techniques for implementing and maintaining employee well-being programs (e.g.- ergonomics; Employee Assistance Programs [EAPs]); financial- mental- and physical well-being; substance abuse).