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Case
Management: Why Doesn't Every Law Firm Use It?
Criteria for Use, Success and Failure
Author: Matt Ryan,
Senior Consultant
Copyright © 2008 Legal Files Software, Inc.
Contents:
Executive Summary
Case Management Defined
Is There An Incentive To Be Efficient?
ROI Difficult to Quantify
Earliest Versions Lacked Sophistication
Five Not-So-Easy Pieces
You Need A Hero
Conclusion
Executive
Summary
Legal case management software programs have been around since the early
1980s. In the years since then, thousands of law firms and other legal
offices have purchased a variety of case management systems with expectations
of improving information sharing among staff, increasing work process
efficiencies and providing better client service. Success stories which
demonstrate the benefits of implementing case management are widely available
and well documented.
Still, for some law offices, using a case management system is something
they have either investigated (and rejected) or have never even considered.
While virtually every firm claims to be a technology leader these days,
what is it about case management that, for some, falls short of its promise?
Have the experiences of those who tried and failed caused others to be
cautious? Or are there other concerns that stand in the way of case management’s
acceptance?
This white paper explores the reasons some law offices have yet to adopt
case management systems despite overwhelmingly positive and obvious results
experienced by other firms. Additionally, the paper will examine the criteria
for a successful case management implementation, pointing out the common
pitfalls that can hamper the roll out of case management or any technology
system.
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Case Management Defined
When people talk about legal case management, they may also use the terms
matter management or practice management. These are simply three different
definitions for the same thing: a firm-wide, office-wide, inter-departmental
and intra-departmental system to easily create, track, store and review:
• Case information of any kind
• Contacts and involved parties
• Documents and mail
• E-mail
• Notes and phone calls
• Appointments, tasks and deadlines
• Time, billing and expenses
• Research and other work product
• Reports and other metrics
In many ways, case management can be compared to some customizable knowledge
management systems, but with the added advantage of having some structure
already built in (e.g., ways to show which contacts have been involved
in which cases), established links to other popular programs and a relational
database for easy reporting.
For purposes of this paper, case management is not meant to describe programs
like Summation or CaseMap, which are handy tools for trial preparation
or storing information on a single case. True case management, as most
commonly defined, provides a centralized repository of all a firm’s
cases. In effect, case management creates an electronic equivalent of
the paper (or physical) file and provides firm management and staff both
quick access to case-level details and a big-picture perspective on trends,
caseloads and other productivity metrics.
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Is
There An Incentive To Be Efficient?
The early adopters of case management systems were those law firms that
billed on contingency or flat fees. They clearly understood that automating
routine tasks and being more organized would allow them to handle more
cases in less time, and in some situations, with fewer staff. These efficiencies
quickly translated into a more profitable practice.
Interestingly, and perhaps unexpectedly, these case management pioneers
also experienced side benefits beyond an improved the bottom line. As
it turns out, case management programs are equally effective as client
and staff management systems.
For instance, quicker access to case-related information, knowing a case’s
status in a matter of seconds, the ability to review correspondence history
at a glance, and being able to recount details of the last contact any
staff member has had with the client makes one appear very well informed.
Clients think the attorney (or any staff member) has their file open right
there every time they call, while in reality the physical file is in a
cabinet or drawer somewhere. As a result, each interaction with the firm
strengthens the client relationship and reaffirms the client’s decision
to choose the firm in the first place.
Further, many firms use the workflow features of a case management system
to develop and document accepted or preferred ways of handling certain
matters or issues, including precedents. These guidelines may be the same
for the entire firm, but more often will vary from one practice group
to another. Using a case management system as an integral part of a new
hire’s on-boarding experience provides an ideal and consistent framework
for training new associates, paralegals and support staff. Likewise, case
management workflow preserves and shares the vast and valuable knowledge
base the firm has accumulated over the years. This is especially vital
as lawyers leave the firm.
In the face of competitive pressures, law firms may espouse the virtues
of improving efficiencies, yet do nothing to change the status quo. Some
firms adhere to an “If it ain’t broke, don’t get case
management” philosophy. And if the firm generates the majority of
its revenue from hourly billed fees, where is the incentive to do a task
more quickly?
The answer begins and ends with the client. Today’s more tech-savvy
clients know law firms have access to process-improvement systems like
case management. Consequently, they expect and demand efficiencies. The
point is delivering better client service is how law firms will attract
and retain clients.
Continuing to operate under a “business as usual” approach
is not an option.
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ROI
Difficult To Quantify
Law firm partners and managers will likely agree that whatever the firm
can do to improve client service ultimately makes sense for the firm’s
bottom line. Yet, they will argue that an investment in case management
is not worth the return, especially in the short term. Such thinking may
be shortsighted, but it is not without precedent.
History is full of examples where a change which ultimately provided quantum
productivity advances initially provided few short-term results. For example,
look at word processing. One would be hard pressed to find anyone today
who doesn’t think that word processing software provides a huge
improvement over the typewriter. But 20 years ago, a seasoned typist was
easily far more productive than someone just learning all the keyboard
commands which word processing required. Thankfully, most businesses could
see the long-term benefits that word processing would ultimately deliver.
Likewise, case management is not a one-time deployment that will perfectly
align everyone and every process overnight. Done properly, case management
creates a framework for the entire firm to operate as a more cohesive
and consistent organization. And over time, the system will mature to
become an indispensable tool for partners, associates and staff in their
daily work. Therefore, the ROI for case management can be measured according
to the following short-term and long-term benefits:
Short-term benefits:
• Providing access to all matter-related information and communications
in a central location from a single interface.
• Knowing at a glance which matters individuals (i.e., opposing
counsel, judges, witnesses, etc.) have been involved in and the current
status of those matters.
• Improving client satisfaction by providing more timely and substantive
communications.
• Simplifying the conflict checking process.
Saving time searching for documents ands other information.
• Capturing more billable time.
• Automating the new matter intake process.
• Alerting attorneys and staff when a new file has been assigned
to them.
• Creating customized workflows for each practice area.
• Automatically populating documents with key matter information.
Long-term benefits:
• Getting new employees up to speed more quickly.
• Protecting firm assets and institutional knowledge.
• Providing firm management with productivity metrics.
• Attracting and retaining the most desirable new clients and staff
based the firm’s reputation for outstanding client service.
Just as investing
in a 401(k) is a long-term strategy for a secure retirement, investing
in case management is an investment in a law firm’s future health.
And just because an endeavor doesn’t immediately yield 100 percent
of its results, it doesn’t mean that it isn’t worth doing.
The most beneficial aspects of case management only improve with time.
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Earliest
Versions Lacked Sophistication
As often happens with new product innovation, the initial incarnations
can be a little rough around the edges. And the first case management
systems experienced the same growing pains when introduced more than 20
years ago. The matter-centric concept was sound, but those early programs
lacked the polish and reliability of today’s more sophisticated
systems. Thankfully, the overall legal technology landscape has significantly
improved since then, most notably with the advent of browser-based applications.
While most case management roll outs were successful, some firms attempting
to use these “under construction” systems experienced frustration,
increased costs and productivity losses—just the opposite of the
benefits case management promised. Additionally, several early case management
software applications were designed by and around the needs of the solo
practitioner. As a result, these programs lacked scalability, which caused
them to fail miserably when implemented in larger offices.
Word of deployments gone awry quickly spread and acted as a warning to
other firms to not become another case management casualty. In fact, sales
of case management programs were virtually nonexistent in the mid-1990s.
This likely resulted from the combination of the product category’s
tarnished image and the legal profession’s slow migration from DOS
to Windows platforms, which delayed many other technology purchases, as
well.
The fall-out from those not-ready-for-prime-time programs lingers today,
even though case management systems have been used successfully at thousands
of law firms and relied upon by tens of thousands of law office staff.
This is not to say that all current case management programs are created
equal. Today, most technology analysts consider legal case management
a mature market, offering stable, full-featured products which are much
improved over earlier versions.
Beyond the increasing numbers of case management users, another indication
of the segment’s vitality is the reduction of the number of systems
available. At one time, there were as many as 50 different case management
programs from which to choose. That’s simply too many for the category’s
potential capacity. In the end, consumer preferences dictate product winners.
And normal survival-of-the-fittest market cycles have led to consolidation
in the case management field. As result, the less-able, weaker products
have gone away, and the better programs have remained.
And while product consolidation is ultimately a positive occurrence, it
has also negatively affected some law firms’ view of case management,
for two main reasons:
• As products fail and companies go out of business, law firms grow
concerned about any vendor’s financial strength and its ongoing
ability to support the product. This perception should be eased now that
it’s a mature market with stable players.
• When case management vendors are bought by larger companies, it
can shift the focus away from the case management program’s future
development as it becomes just one of the new owner’s product offerings.
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Five Not-So-Easy Pieces
When law firms do recognize the value of better organizing their businesses,
they often make an attempt to gather critical information together using
a variety of systems. In doing so, they create a sort of software smorgasbord,
which typically includes the following five pieces:
1. E-mail, Calendar, Tasks and Contacts
2. Document Management and Document Assembly
3. Client/Matter Database
4. Time and Expense Tracking
5. Workflow and Deadlines
Examining the components individually will help assess the value and function
each application provides.
E-mail, Calendar, Tasks and Contacts. Sometimes known
as “collaboration” software, Outlook, GroupWise and Lotus
Notes dominate this category. Whichever platform is chosen, it creates
the foundation for the firm’s communication infrastructure. It’s
an essential law office component. However, these products by themselves
lack a matter-centric view of critical information and activities. Some
firms attempt to overcome gap this by using case-specific public folders
and global contacts. This approach falls short because all the elements
cannot be cross-referenced, leaving no method for viewing all case-related
items in a single view. As a result, it is virtually impossible to do
a firm-wide conflict check, and firms sometimes end up purchasing a third-party
add-on application just for conflict checking. Likewise, programs like
Outlook do not provide a chronological view of all activities and communications
for a single case. Instead, it makes more sense for firms to integrate
Outlook, GroupWise or Notes with a case management system which already
has the file/case structure in place. By simply linking contacts/parties
and other information to matters, the firm has a built-in, office-wide
conflict checking system and a complete case “diary” accessible
to all staff working on a matter. Be sure to look for a case management
system that seamlessly integrates or synchronizes with these programs
to avoid duplicate data entry.
Document Management and Document Assembly. Law firms
know that keeping careful track of documents—both sent and received—is
vital to their business operations. Therefore, it’s undoubtedly
a good idea to use a document management system for greater organization,
search tools and security controls, which make it easier to collect research,
find work product and protect a firm’s intellectual capital. Additionally,
document assembly is a tremendous time saver for creating documents and
forms using fill-in or merge fields. Using these two functions will certainly
increase a firm’s productivity. That’s why the more robust
case management programs also include document management and document
assembly features, with the added benefit of collecting and storing the
client/matter information to more easily populate the required document
profile or merge data into boilerplate documents.
Client/Matter Database. Law firms often find that they
need to track more information about their clients and cases than what
programs like Outlook and a standalone document management system can
provide. Consequently, they turn to a variety of spreadsheets and databases,
such as Excel and Access for their ease of use, or a home-grown system
for handling more complex issues. This approach is well intended, but
when different solutions are selected or custom developed to meet the
needs of specific departments or practice groups, the end result is likely
scattered pockets of software and knowledge. Throw a CRM or some type
of marketing software into the mix, and the resulting environment is anything
but unified, which makes conflict checking, staff training and tech support
a nightmare.
Time and Expense Tracking. Legal accounting and billing
programs are mission-critical back-end systems which law firms rely upon
to run their businesses. They are another essential law office application.
The amount of billable time recorded can be improved, however, by shifting
the time capture component to a case management system which more easily
tracks case-related activities (i.e., phone calls, e-mails, document preparation,
etc.), then automatically sends the information back to the billing program.
In the same manner, case management programs can simplify expense tracking
for a wide range of activities and costs.
Workflow and Deadlines. Whether through a checklist of
critical items to be performed or calendar of court-based rules, a firm’s
workflow system is a valuable component to assure that relevant client
and case activities are completed on time by the right person. Any number
of off-the-shelf business project management software programs or specialized
legal applications can be purchased to handle these tasks and deadlines.
The key to making workflow systems work, just as with improved time tracking,
is to “push” the workflow process directly to the user through
an application, like case management, which is integrated with the staff
member’s daily activities (e-mail, document creation, correspondence
tracking, scheduling, etc.).
Law firms believe that purchasing these five components as separate pieces
will give them more choice and control to create a customized best-of-breed
system, and perhaps save money by only paying for what they need at the
time. However, more often, this approach results in a decentralized, non-secure,
non-backed up, technology environment. And firms frequently end up spending
more than they had budgeted for license fees, on top of considerable sums
spent to integrate these disparate systems.
Another approach to consider involves taking a step back to look at the
firm’s information needs from a strategic perspective. Rather than
having multiple user interfaces, multiple program license fees, multiple
points of data entry and multiple conflict search systems, a firm could
implement a highly flexible case management program as an end-to-end system
which includes all these components and acts as the hub of information
for all practice groups. If a firm currently has some information management
pieces in place, a case management system, with its established links
to those programs, can be used to connect the dots as well as save money
and time on custom programming. Either approach is a more cost-effective
alternative to adapting several separate pieces to copy the functions
a case management system already provides.
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You
Need A Hero
Without a hero, meaning an advocate at a firm’s management or partner
level, any case management implementation is likely to crash and burn,
if it ever gets off the ground in the first place.
In his article, Did You Buy the Wrong Case Management System Software?,
Andrew Z. Adkins III, the director of the Legal Technology Institute at
the University of Florida Levin College of Law, asks: Who within the firm
is in charge of the project? Do you have an internal project manager or
did you leave the project management entirely up to the developer? If
you’re using an internal project manager, is it someone who has
the knowledge of implementation, the respect of the firm, and the time
to do it right?
Based on his years of experience studying legal technology systems, Adkins
has documented that, if a law firm wants the case management implementation
to succeed, it needs someone to take ownership of the project. A cheerleader.
A champion. A salesperson.
Expecting a junior-level associate or legal assistant to drive the process
is shortsighted. They may be tech-savvy and interested in the topic, but
they lack the necessary clout to get buy-in from senior management. Staff
members with knowledge, energy and enthusiasm are valuable assets. Put
them to use on the project team. Just don’t put them in charge.
The person in the lead role must have the authority and influence to assure
that the project gets the attention it deserves, which includes performing
a thorough needs assessment, making an informed vendor selection and assembling
a team to promote to the program and its benefits to internal audiences.
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Conclusion
When properly implemented, legal case management systems deliver significant
productivity and client service benefits. However, many law firms are
not compelled to more efficiently leverage their human and technological
resources, or they find it hard to measure the short-term financial payback
on a long-term investment. Other firms still think of case management
as an immature solution and don’t acknowledge the sophistication
and success of contemporary systems. Or some create their own patchwork
of separate, unrelated programs in an effort to emulate the comprehensive
features case management provides. Finally, and perhaps most importantly,
many lack that senior-level “take charge” person who will
assume ownership of the project and help both management and staff embrace
the new system.
Historically, law firms have played a “wait and see” game
with breakthrough technology and over-scrutinized the cost recovery of
such investments to the point of inaction. That’s no longer an option.
The pressures of today’s increasingly competitive environment dictate
that law firms view case management as an essential Enterprise Resource
Planning (ERP) system, which integrates all the business’ important
information and processes.
This ability to unify and manage client and matter information makes it
possible for a law firm to more effectively run its business. Ultimately,
case management enables a law firm to build its practice by having the
resources in place to successfully attract and retain the most desirable
clients.
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