ERM: Firms Leverage Innovative Technology

Pre-existing relationships ' whether with clients, former colleagues, or law school classmates ' are every law firm's number-one source for new client development. As large firms know firsthand, the strength of having a vast network is offset by the struggle to effectively search and access those relationships. Sheppard, Mullin, Richter & Hampton is a full-service AmLaw 100 firm with 1000 employees in nine nationwide offices. To support our business development and marketing efforts, we must be able to leverage our strong network of contacts and immediately identify everyone within our firm who has a valuable pre-existing relationship and can make an introduction.

In the past, to prepare for a prospect meeting, attorneys sent out an all-lawyer e-mail blast or walked the halls asking if anyone knew the company in question. We knew this approach did not fully leverage our firm's relationship capital. Another common step was checking the CRM system. We have a very successful CRM implementation and one of the highest attorney-adoption rates, but a few lawyers choose not to participate, and others fall behind entering their contacts ' even if their assistants are doing much of the work.

So if e-mail blasts are not the solution, and CRM systems will never have all relationships, what alternatives are available? After a broad market review, we concluded that an Enterprise Relationship Management (ERM) solution would provide our firm with an automated and efficient way to access and leverage all of our relationships, without requiring our attorneys to spend time manually entering and updating data. We evaluated each ERM solution on the market, and we share our review of the solution we have implemented: Con-tactNet from Contact Networks.

Based on our business-development goals and knowledge of our culture and employees, we developed six key product evaluation criteria:

• Automated Data Capture. Abso-lutely no manual data entry, upkeep or cleansing could be required by lawyers, assistants, or data stewards. ContactNet met this criterion because it uses search technology to analyze existing data repositories, including electronic address books, e-mail traffic patterns, CRM system, and others. It automates the data capture process without interfering with lawyers' work or requiring a change in behavior.
• Comprehensive Database of Re-lationships. The solution had to be complete enough that users would trust it over their current ad-hoc approach of checking the CRM system, blasting e-mails, calling close colleagues and wandering the halls. With ContactNet, everyone in the firm can be included in the data capture, even those that are not avid CRM users. With a combination of automatic data capture and increased privacy protection, the solution includes all of their valuable relationships, not just those that they contribute to the CRM system.
• Strength of Relationship. CRM systems can't distinguish a strong relationship from a non-relationship. All contacts look equal. We want to use our strongest relationships, and understand how our relationships to clients and prospects change over time. ContactNet uses 37 variables to measure relationship strength. The strongest relationships appear at the top of the ranked list of search results, so our users immediately know which colleagues can provide the most meaningful information or introductions.
• Privacy. A key factor in our evaluation was respect for user privacy. This is an ethical consideration, as well as a practical one because it greatly impacts participation and adoption. ContactNet offered a full spectrum of configuration options and helped us to select the configuration appropriate for our culture. For firms that have already developed a strong culture of sharing, the system can be very transparent, revealing detailed contact data. For more private firms, the system can be adjusted to be much more opaque, requiring contact with the attorney who owns the relationships. In the latter case, gaining access to contact details requires approval of the contact owner and can be done via e-mail requests tracked by the software.
• Integrated and Intuitive. The solution had to be integrated into our workflow. We wanted a solution that was easy to use in order to ensure adoption. ContactNet is integrated into our intranet (and our upcoming SharePoint portal). The Google-style user interface is familiar for users and doesn't require end-user training. Implementation required little IT time and resources.
• Data Security. Due to the privileged nature of client communications, we have to ensure that no one outside the firm is able to access our data. ContactNet is enterprise software, and maintains all data and applications within our firm's secure firewalled infrastructure.

The decision process at Sheppard Mullin was managed jointly by the firm's marketing, Knowledge Manage-ment (KM) and IT staff, with input and feedback from attorneys. After evaluating each vendor, we selected Contact Networks' solution as the best fit for our firm's needs. Other solutions solve the same business need, but use a different approach.

We installed ContactNet in Spring 2006 and integrated it with our corporate intranet to make it easy for our employees to access. There was no
manual data input required to get the solution up and running. Once installed, ContactNet automatically started capturing, analyzing and scoring relationship data. The data set continues to grow as relationships are strengthened, new relationships are developed, and new attorneys join and bring with them a new network of relationships.

Because there is no training required, ContactNet is launched to the firm via an e-mail. Now, employees spread over offices throughout the U.S. can easily search for, and identify, valuable relationships with prospective clients. With a simple search, our marketing and business-development staff, and any attorney, can pinpoint the strongest relationships to any target person or company.

As you evaluate ERM solutions for your firm, consider which approach best meets your criteria. Ask for multiple references and ask your peers at other firms about their experiences. Benefit from the experience of others and learn some best practices for launch and adoption.

ERM solutions better answer the all-important question: 'Who do we know?' If your firm is serious about leveraging its relationship capital, I highly recommend exploring Enterprise Relationship Management.

Tom Baldwin serves as Chief Knowledge Officer at the 500-lawyer, Los Angeles-based firm of Sheppard Mullin Richter & Hampton, LLP (www.sheppardmullin.com), and also consults to the in-house legal departments of the firm's clients. He may be reached at [email protected].

Pre-existing relationships ' whether with clients, former colleagues, or law school classmates ' are every law firm's number-one source for new client development. As large firms know firsthand, the strength of having a vast network is offset by the struggle to effectively search and access those relationships. Sheppard, Mullin, Richter & Hampton is a full-service AmLaw 100 firm with 1000 employees in nine nationwide offices. To support our business development and marketing efforts, we must be able to leverage our strong network of contacts and immediately identify everyone within our firm who has a valuable pre-existing relationship and can make an introduction.

In the past, to prepare for a prospect meeting, attorneys sent out an all-lawyer e-mail blast or walked the halls asking if anyone knew the company in question. We knew this approach did not fully leverage our firm's relationship capital. Another common step was checking the CRM system. We have a very successful CRM implementation and one of the highest attorney-adoption rates, but a few lawyers choose not to participate, and others fall behind entering their contacts ' even if their assistants are doing much of the work.

So if e-mail blasts are not the solution, and CRM systems will never have all relationships, what alternatives are available? After a broad market review, we concluded that an Enterprise Relationship Management (ERM) solution would provide our firm with an automated and efficient way to access and leverage all of our relationships, without requiring our attorneys to spend time manually entering and updating data. We evaluated each ERM solution on the market, and we share our review of the solution we have implemented: Con-tactNet from Contact Networks.

Based on our business-development goals and knowledge of our culture and employees, we developed six key product evaluation criteria:

• Automated Data Capture. Abso-lutely no manual data entry, upkeep or cleansing could be required by lawyers, assistants, or data stewards. ContactNet met this criterion because it uses search technology to analyze existing data repositories, including electronic address books, e-mail traffic patterns, CRM system, and others. It automates the data capture process without interfering with lawyers' work or requiring a change in behavior.
• Comprehensive Database of Re-lationships. The solution had to be complete enough that users would trust it over their current ad-hoc approach of checking the CRM system, blasting e-mails, calling close colleagues and wandering the halls. With ContactNet, everyone in the firm can be included in the data capture, even those that are not avid CRM users. With a combination of automatic data capture and increased privacy protection, the solution includes all of their valuable relationships, not just those that they contribute to the CRM system.
• Strength of Relationship. CRM systems can't distinguish a strong relationship from a non-relationship. All contacts look equal. We want to use our strongest relationships, and understand how our relationships to clients and prospects change over time. ContactNet uses 37 variables to measure relationship strength. The strongest relationships appear at the top of the ranked list of search results, so our users immediately know which colleagues can provide the most meaningful information or introductions.
• Privacy. A key factor in our evaluation was respect for user privacy. This is an ethical consideration, as well as a practical one because it greatly impacts participation and adoption. ContactNet offered a full spectrum of configuration options and helped us to select the configuration appropriate for our culture. For firms that have already developed a strong culture of sharing, the system can be very transparent, revealing detailed contact data. For more private firms, the system can be adjusted to be much more opaque, requiring contact with the attorney who owns the relationships. In the latter case, gaining access to contact details requires approval of the contact owner and can be done via e-mail requests tracked by the software.
• Integrated and Intuitive. The solution had to be integrated into our workflow. We wanted a solution that was easy to use in order to ensure adoption. ContactNet is integrated into our intranet (and our upcoming SharePoint portal). The Google-style user interface is familiar for users and doesn't require end-user training. Implementation required little IT time and resources.
• Data Security. Due to the privileged nature of client communications, we have to ensure that no one outside the firm is able to access our data. ContactNet is enterprise software, and maintains all data and applications within our firm's secure firewalled infrastructure.

The decision process at Sheppard Mullin was managed jointly by the firm's marketing, Knowledge Manage-ment (KM) and IT staff, with input and feedback from attorneys. After evaluating each vendor, we selected Contact Networks' solution as the best fit for our firm's needs. Other solutions solve the same business need, but use a different approach.

We installed ContactNet in Spring 2006 and integrated it with our corporate intranet to make it easy for our employees to access. There was no
manual data input required to get the solution up and running. Once installed, ContactNet automatically started capturing, analyzing and scoring relationship data. The data set continues to grow as relationships are strengthened, new relationships are developed, and new attorneys join and bring with them a new network of relationships.

Because there is no training required, ContactNet is launched to the firm via an e-mail. Now, employees spread over offices throughout the U.S. can easily search for, and identify, valuable relationships with prospective clients. With a simple search, our marketing and business-development staff, and any attorney, can pinpoint the strongest relationships to any target person or company.

As you evaluate ERM solutions for your firm, consider which approach best meets your criteria. Ask for multiple references and ask your peers at other firms about their experiences. Benefit from the experience of others and learn some best practices for launch and adoption.

ERM solutions better answer the all-important question: 'Who do we know?' If your firm is serious about leveraging its relationship capital, I highly recommend exploring Enterprise Relationship Management.

Tom Baldwin serves as Chief Knowledge Officer at the 500-lawyer, Los Angeles-based firm of Sheppard Mullin Richter & Hampton, LLP (www.sheppardmullin.com), and also consults to the in-house legal departments of the firm's clients. He may be reached at [email protected].