<b>Case Study:</b> Managing Risk by Improving the Intake Process

Law firms around the world are continually challenged with how to best manage information and business processes associated with clients, matters, conflicts of interest and new business intake while taking every precaution to mitigate risk and increase productivity. It's not an easy task, but with proper vision, along with the right team and systems in place, firms can meet evolving business needs and achieve optimal information management while enhancing risk management. Here is how we did it at Cadwalader, Wickersham & Taft.

It began in the early '90s when we joined forces with the co-founders of LegalKEY Technologies (now part of Open Text) to help design a conflicts checking and records management program for tracking and managing firm client matter data. When we met with the co-founders, we knew this technology would help enhance efficiencies and improve operations at our firm.

After reaping the benefits of the records and conflicts management systems, we expanded our deployment with the addition of an automated new business intake (“NBI”) workflow system. Today, a large degree of information management at Cadwalader has its genesis in the NBI workflow model that we have customized to incorporate many moving parts behind the scenes that activate other business processes once a conflicts check is initiated. The catalyst behind the development of the automated processes was improved risk management for the firm.

Laying the Foundation

The first order of business before implementing the automated NBI workflow application involved understanding the manual processes that were in place and evaluating their efficiencies and effectiveness. The goal was to capitalize on the efficiencies, be it reduction in personnel time or improvement in turnaround time, to realize a return on investment. We wanted to make sure we were not sacrificing efficiencies for the sake of automation. That was a major consideration.

Our manual NBI process covered all our risk management bases. However, the logistics of moving paper from one desk to the next and keying in data to make that information available electronically was labor intensive and fraught with the risk of human error. It was immediately apparent that with an automated system, we would be able to improve turnaround time, decrease manpower hours and minimize the potential for errors. With a clear vision of the goals that needed to be attained, the specifications for our automated workflow model were written.

The automated NBI workflow system enables us to easily manage very complex information. When an attorney wants to take on new business, he or she provides the names of potential new clients and adversary parties electronically to the conflicts department using the automated NBI workflow form. Conflicts checks are immediately performed and a pending new matter is created in the conflicts database for the purpose of identifying and reporting the potential new business should other conflict check requests involving the same parties be received. As the NBI form moves through the various steps of the workflow, the initial submission of information may be enhanced, if required, with more details concerning the new business. Ultimately, once conflicts are cleared, complete information is collected and required approvals, which are evidenced by electronic signatures, are obtained the pending matter is activated and automatically posted to our accounting system so that a billing account is established. This is a tremendous time saver because previously this required manual data entry.

Behind the Scenes

Multiple workflows operate during the NBI process depending on the step. For example, the program automatically creates client relations files (“CRF”) within our records management system. The CRF is where we house all the records and associated documentation that define a client relationship, including a copy of the final, executed NBI workflow form. The workflow application generates this document in a format that may be printed if necessary and saves it as an XML or HTML document. In addition, the CRF contains all of the other ancillary documents, such as conflicts reports, due diligence research, waiver letters, engagement letters, retention agreements, and notations between the conflicts department and the attorneys relating to conflicts resolution.

All of this information helps define the firm's relationship with the client. It exists electronically and it is posted automatically at the end of the NBI process. This is another tremendous time saver because this file was previously built by creating records manually in LegalKEY RM, scanning all the documents and linking their images to LegalKEY records. All of that is now automated.

Programs were also written using IntApp tools that allow data from LegalKEY to be integrated with Interwoven's FileSite, our document management (“DM”) system, to create client matter workspaces. The program mines new client matter information, interprets the areas of law involved, and selects appropriate templates for creation of client matter folders. DM matter workspace that includes the various folders are then generated. The integration automatically places these matter workspaces on the desktops of firm attorneys who are assigned to new client matters during the NBI process. The integration also monitors our time charge system for attorneys who are newly assigned to matters so that they too automatically receive the appropriate matter workspaces on their desktops.

Another component of NBI workflow that is critical to risk management and compliance is ethical walls. Often a client will agree to waive a potential conflict provided that the attorneys working on the matter do not have access to other matters. The process of constructing an appropriate ethical wall so that client confidentiality is maintained has been automated through LegalKEY and a third-party integrator.

Lessons Learned:
Managing Cultural Challenges

When introducing an automated process like this to a law firm, it is imperative that cultural issues be addressed. We needed to show users how the automated system would benefit them. During the specification phase, we designed the NBI form to be intuitive to minimize the level of training and difficulty in using an application like this. The form uses simple tools like drop-down menus and single- or multiple-choice answers. Throughout the application, we embedded help buttons, so if a user has questions, a help window provides additional information. The workflow form is logical, easy to follow, and user friendly.

For secretaries, we highlighted the various look-ups that are available. For example, if they want to open a new matter for an existing client, they can easily look up the client name and number. The look-up not only provides the information, but it populates the form.

We also gave secretaries the ability to replicate a form for a new matter. For instance, if they are going to prepare a new workflow form that is substantially similar to another, they can look up a previous submission, populate a new form, and edit it as appropriate for the new matter. The secretaries appreciate the simplicity and ease of using data that is already in the system.

Since many of the attorneys do not actually complete these forms (this task is usually handled by their secretaries), we highlighted the fact that the automated new business intake system would provide attorneys with the current status of their conflicts check requests and deliver conflicts reports via e-mail. The e-mail includes a link into the application, so they can readily see the conflicts reports that they need to review.

NBI Process Brings
Newfound Capabilities

The NBI process has facilitated several other improved efficiencies at Cadwalader, including a complete audit trail that captures all of the metadata associated with the creation and execution of our new business form. This audit trail tells us the date the form was created and by whom, how quickly we turned it around, when it went back to the attorney, when the attorney returned it to us, when it was first posted as a pending matter and when it was posted as an activated new client matter. This information allows us to analyze the process and identify where a problem may have arisen.

Other efficiencies resulting from the automated NBI workflow involve third-party integrations built between the accounting system, Elite, and our conflicts database, to ensure the two systems stay in sync. We also use the third-party integrator tool in connection with re-opening closed client matters in the accounting system. This process is monitored in real-time so if our attorneys begin billing time to a matter that is shown as closed in the conflicts database, it will immediately send an alert to the conflicts staff. This critical loophole was easy to overlook, but through automation, we have closed it and will avoid potential problems.

Our marketing department is another benefactor of our automated NBI workflow. Marketing needs to keep its client relationship management system up to date for client communications. With the automated workflow application, we are able to have the program generate a nightly e-mail to the marketing department. This e-mail contains a reference to each new matter and the relevant contact information. Since this is now an automatic process, it not only saves marketing a great deal of time, it also saves us hours of work in preparing information for them.

The NBI workflow opened the door for newfound capabilities to provide data in ways that we did not anticipate. When our Executive Director was informed about this nightly e-mail to marketing, he was also interested in seeing it, but with additional information, such as estimated fees, so he could assess the value of new business coming into the firm.

Conclusion

Overall, we have achieved our vision of establishing more efficient information management and improved risk management. Before implementing our automated NBI workflow system, it was common that proposed new business forms would be incomplete upon initial submission. Much time and effort would be wasted tracking down required information. Today, our automated NBI system will not permit submission of forms that include unanswered risk management questions. The results point to significant savings that ultimately flow directly to the firm's bottom line.

We process hundreds of new matters each month. Previously, for each of these matters someone needed to manually enter redundant information into various firm systems, print and scan documents, create PDF images and link them to our records management system. Now, all of that happens automatically at the push of a button without the risk of errors associated with manual processes and the need for significant amounts of clerical labor. It is estimated that the firm is saving approximately $85,000 per year in manpower costs since we implemented our automated NBI workflow. This is on top of the unquantifiable savings to the firm brought about by increased efficiencies and better risk management.

Law firms around the world are continually challenged with how to best manage information and business processes associated with clients, matters, conflicts of interest and new business intake while taking every precaution to mitigate risk and increase productivity. It's not an easy task, but with proper vision, along with the right team and systems in place, firms can meet evolving business needs and achieve optimal information management while enhancing risk management. Here is how we did it at Cadwalader, Wickersham & Taft.

It began in the early '90s when we joined forces with the co-founders of LegalKEY Technologies (now part of Open Text) to help design a conflicts checking and records management program for tracking and managing firm client matter data. When we met with the co-founders, we knew this technology would help enhance efficiencies and improve operations at our firm.

After reaping the benefits of the records and conflicts management systems, we expanded our deployment with the addition of an automated new business intake (“NBI”) workflow system. Today, a large degree of information management at Cadwalader has its genesis in the NBI workflow model that we have customized to incorporate many moving parts behind the scenes that activate other business processes once a conflicts check is initiated. The catalyst behind the development of the automated processes was improved risk management for the firm.

Laying the Foundation

The first order of business before implementing the automated NBI workflow application involved understanding the manual processes that were in place and evaluating their efficiencies and effectiveness. The goal was to capitalize on the efficiencies, be it reduction in personnel time or improvement in turnaround time, to realize a return on investment. We wanted to make sure we were not sacrificing efficiencies for the sake of automation. That was a major consideration.

Our manual NBI process covered all our risk management bases. However, the logistics of moving paper from one desk to the next and keying in data to make that information available electronically was labor intensive and fraught with the risk of human error. It was immediately apparent that with an automated system, we would be able to improve turnaround time, decrease manpower hours and minimize the potential for errors. With a clear vision of the goals that needed to be attained, the specifications for our automated workflow model were written.

The automated NBI workflow system enables us to easily manage very complex information. When an attorney wants to take on new business, he or she provides the names of potential new clients and adversary parties electronically to the conflicts department using the automated NBI workflow form. Conflicts checks are immediately performed and a pending new matter is created in the conflicts database for the purpose of identifying and reporting the potential new business should other conflict check requests involving the same parties be received. As the NBI form moves through the various steps of the workflow, the initial submission of information may be enhanced, if required, with more details concerning the new business. Ultimately, once conflicts are cleared, complete information is collected and required approvals, which are evidenced by electronic signatures, are obtained the pending matter is activated and automatically posted to our accounting system so that a billing account is established. This is a tremendous time saver because previously this required manual data entry.

Behind the Scenes

Multiple workflows operate during the NBI process depending on the step. For example, the program automatically creates client relations files (“CRF”) within our records management system. The CRF is where we house all the records and associated documentation that define a client relationship, including a copy of the final, executed NBI workflow form. The workflow application generates this document in a format that may be printed if necessary and saves it as an XML or HTML document. In addition, the CRF contains all of the other ancillary documents, such as conflicts reports, due diligence research, waiver letters, engagement letters, retention agreements, and notations between the conflicts department and the attorneys relating to conflicts resolution.

All of this information helps define the firm's relationship with the client. It exists electronically and it is posted automatically at the end of the NBI process. This is another tremendous time saver because this file was previously built by creating records manually in LegalKEY RM, scanning all the documents and linking their images to LegalKEY records. All of that is now automated.

Programs were also written using IntApp tools that allow data from LegalKEY to be integrated with Interwoven's FileSite, our document management (“DM”) system, to create client matter workspaces. The program mines new client matter information, interprets the areas of law involved, and selects appropriate templates for creation of client matter folders. DM matter workspace that includes the various folders are then generated. The integration automatically places these matter workspaces on the desktops of firm attorneys who are assigned to new client matters during the NBI process. The integration also monitors our time charge system for attorneys who are newly assigned to matters so that they too automatically receive the appropriate matter workspaces on their desktops.

Another component of NBI workflow that is critical to risk management and compliance is ethical walls. Often a client will agree to waive a potential conflict provided that the attorneys working on the matter do not have access to other matters. The process of constructing an appropriate ethical wall so that client confidentiality is maintained has been automated through LegalKEY and a third-party integrator.

Lessons Learned:
Managing Cultural Challenges

When introducing an automated process like this to a law firm, it is imperative that cultural issues be addressed. We needed to show users how the automated system would benefit them. During the specification phase, we designed the NBI form to be intuitive to minimize the level of training and difficulty in using an application like this. The form uses simple tools like drop-down menus and single- or multiple-choice answers. Throughout the application, we embedded help buttons, so if a user has questions, a help window provides additional information. The workflow form is logical, easy to follow, and user friendly.

For secretaries, we highlighted the various look-ups that are available. For example, if they want to open a new matter for an existing client, they can easily look up the client name and number. The look-up not only provides the information, but it populates the form.

We also gave secretaries the ability to replicate a form for a new matter. For instance, if they are going to prepare a new workflow form that is substantially similar to another, they can look up a previous submission, populate a new form, and edit it as appropriate for the new matter. The secretaries appreciate the simplicity and ease of using data that is already in the system.

Since many of the attorneys do not actually complete these forms (this task is usually handled by their secretaries), we highlighted the fact that the automated new business intake system would provide attorneys with the current status of their conflicts check requests and deliver conflicts reports via e-mail. The e-mail includes a link into the application, so they can readily see the conflicts reports that they need to review.

NBI Process Brings
Newfound Capabilities

The NBI process has facilitated several other improved efficiencies at Cadwalader, including a complete audit trail that captures all of the metadata associated with the creation and execution of our new business form. This audit trail tells us the date the form was created and by whom, how quickly we turned it around, when it went back to the attorney, when the attorney returned it to us, when it was first posted as a pending matter and when it was posted as an activated new client matter. This information allows us to analyze the process and identify where a problem may have arisen.

Other efficiencies resulting from the automated NBI workflow involve third-party integrations built between the accounting system, Elite, and our conflicts database, to ensure the two systems stay in sync. We also use the third-party integrator tool in connection with re-opening closed client matters in the accounting system. This process is monitored in real-time so if our attorneys begin billing time to a matter that is shown as closed in the conflicts database, it will immediately send an alert to the conflicts staff. This critical loophole was easy to overlook, but through automation, we have closed it and will avoid potential problems.

Our marketing department is another benefactor of our automated NBI workflow. Marketing needs to keep its client relationship management system up to date for client communications. With the automated workflow application, we are able to have the program generate a nightly e-mail to the marketing department. This e-mail contains a reference to each new matter and the relevant contact information. Since this is now an automatic process, it not only saves marketing a great deal of time, it also saves us hours of work in preparing information for them.

The NBI workflow opened the door for newfound capabilities to provide data in ways that we did not anticipate. When our Executive Director was informed about this nightly e-mail to marketing, he was also interested in seeing it, but with additional information, such as estimated fees, so he could assess the value of new business coming into the firm.

Conclusion

Overall, we have achieved our vision of establishing more efficient information management and improved risk management. Before implementing our automated NBI workflow system, it was common that proposed new business forms would be incomplete upon initial submission. Much time and effort would be wasted tracking down required information. Today, our automated NBI system will not permit submission of forms that include unanswered risk management questions. The results point to significant savings that ultimately flow directly to the firm's bottom line.

We process hundreds of new matters each month. Previously, for each of these matters someone needed to manually enter redundant information into various firm systems, print and scan documents, create PDF images and link them to our records management system. Now, all of that happens automatically at the push of a button without the risk of errors associated with manual processes and the need for significant amounts of clerical labor. It is estimated that the firm is saving approximately $85,000 per year in manpower costs since we implemented our automated NBI workflow. This is on top of the unquantifiable savings to the firm brought about by increased efficiencies and better risk management.