Clients may think that everything happening behind the scenes is a magical process that just churns out results. We know that's not true. But, how DO we do what we do?
It's an important, but daunting, question. When mapping out the processes we follow, we know we should write things down, but the task seems much too large of an undertaking.
Applying technology to an inefficient process will give you a net gain of zero. Throwing technology at a problem without first looking at the process will rarely ever fix it. It may likely exacerbate the problem by adding another layer of complexity to existing process challenges.
A great misconception about technology is that it is a quick fix for everything - a Band Aid of sorts. Often, lawyers uncover a problem in their firms and immediately seek to solve it with technology rather than examining their process first.
For example, lawyers frequently realize their firms are missing billing opportunities. As a solution, many choose more sophisticated software only to discover that the cause of the problem is process-related. There is a break in the process by which staff captures billable time and events. Here, the most effective solution would have been to refine the process.
Lawyers invest money in technology to improve their practices. Yet, if they don't begin by addressing the root of their problems, the result does not differ from throwing good money after bad. They must begin by addressing their process challenges. Then, they must look to their technology to play a supporting role.
HOW TO TACKLE PROCESS CHALLENGES
DEFINE THE PROBLEM
The first step to solving any problem is awareness. It is identifying what the problem is. Lawyers can't fix what they are unaware of. Talking to staff raises awareness. They are the ones doing the work. Getting a team together and including everyone who plays a role in the process is crucial to success of any process improvement initiative.
Often, during an improvement initiative, a lawyer discovers that his perception of the problem differs from reality; that his understanding of the problem is not aligned with the challenges faced by his staff. He may believe, for example, that the process used by his office for matter intake is efficient. He may uncover that, in reality, by making the process paperless and supporting it with the right technology, he can reduce the costs associated with that process by 50%.
MEASURE THE PROBLEM
Once the problem is defined, it must be measured. This involves observing what staff does and documenting it. It involves understanding the "why" behind everything they do. It is not uncommon for lawyers to discover that staff does things simply because that's the way they've always done it. In improving the process, changing that entrenched mentality is half the battle. Creating a cultural shift that embraces change is integral to process refinement.
A fundamental component of measuring the problem is identifying wasted resources. Signs of waste include mistakes that cause re-work, piles of files sitting on the floor or on desks, and long processing times. Waste leads to unnecessary costs and decreased profitability.
Lawyers can leverage their technology to eliminate waste. Paperless solutions are a perfect example of how technology can support a good process. Having sound process drives the work, while using the right technology allows lawyers to do that work within a paperless environment.
ANALYZE THE PROBLEM
The next step is to analyze what has been measured or observed. Flowcharts are an ideal analytical tool for this. The process should be mapped out so that waste can be identified and eliminated. Sometimes, simple changes that lead to a quick return on investment can be made. For example, emailing rather than mailing or faxing is a simple but effective way to cut costs.
Perhaps, the changes may be greater. There may be cases where frequent mistakes are made causing the need for re-work. Re-work is a form of waste. A client does not pay for a lawyer to re-do work. The cost of re-work comes out of the lawyer's pocket, and thus diminishes the lawyer's profit margin. Technology can be leveraged to help avoid mistakes in a process. Using pop-up windows is a perfect example of how technology can support your process by alerting staff to possible mistakes.
IMPLEMENT THE SOLUTION
Once the best solution has been identified, it must be implemented. One of the most important points to remember about implementation is training. Staff must be trained on any changes made to the process and to the technology. To properly train staff, the new changes must be documented in Standard Operating Procedures. Not only will this serve as a method of standardizing practices within the firm, it serves as a reference for existing and future staff.
MEASURE THE IMPROVEMENTS
Now that the best solution has been implemented, process improvements must be measured. The key to measuring the new process is to implement metrics. For example, if changes were made to the billing process to capture more billing opportunities, metrics should be implemented that track the new billable amounts. How much is being billed now in comparison with last month? The only way to confirm that improvements are working is to quantify the change. Metrics are fundamental to tracking return on investment.
GOOD TECHNOLOGY VS. RIGHT TECHNOLOGY
When lawyers consider which technology they should invest in, one of the most important questions they should ask themselves is "Does this technology support the way I do business? Does it support my process?" Just because technology is good does not make it the right technology for the way a particular lawyer does business. Lawyers should choose the technology that best supports their process.
In reality, not every lawyer is in the market for new technology. Not every lawyer should be. Frequently, the solution lies in a lawyer's existing system. Sometimes, it can be as simple as changing existing technology so it supports the firm's process. It is about turning existing technology into the right technology.
Each law firm has its own individual formula for achieving success. They hire the best lawyers and the best staff; they buy the best equipment and the best technology. For lawyers to take their practices to the next level, they must also remember to include good process and the right technology in their formula and leverage the relationship between the two. By addressing their process challenges and changing their technology so it supports the way they do business, lawyers can achieve greater efficiency and accuracy, which ultimately means a healthier bottom line.
Processing mapping is critical for all law firms and legal departments to manage growth, to scale operations and to prepare for evolving client demands. Join Affinity Partner Jeffrey S. Krause for this "How To" session on Thursday November 14 @ 1 PM EST.
To discuss mapping and improving your internal law firm processes, contact us any time. You can reach us at , or simply request a consultation.