Measure to Manage: Understanding and Using Data to Affect Firm Change and Client Relationships

PZ: Technology vendors need to claim responsibility when it comes to meeting firms' client demands. How can we leverage technology to contribute to overall client efficiency and what are some proven, objective metrics that can help create win-win-win scenarios?

Benchmarking and Measuring the Basics

JH: From the law firm perspective, one of the most interesting things about what's going on in the landscape of metrics is that while there is ample ability to measure big data and analyze the complexities of enormous data sets, many firms are overlooking the mundane repetitive tasks which, if optimized, can have a big impact in terms of cost efficiency. For example, at KYL, we look at usage across all applications and can determine who is using which applications, how much, and how well. If our attorneys are knee-deep in a specific set of applications, we can custom tailor training to ensure that they are using those technologies to the greatest effect, often resulting in certification. Instead of relying on perceptions, we can use this new data reality [what's actually happening vs. where usage and productivity should be based on client expectations] and develop a measured action plan. This “360 perspective” really provides a clear picture and road map ahead. So, even though there are a lot of really fancy tools we can use and amazing things we can do with metrics and data analysis, there is considerable value to be had from just measuring baseline technology use and maximize usage and effectiveness.

For us, it goes beyond investing in technologies that our clients want us to use and into listening to recent client feedback (via RFP's, Outside Counsel Guidelines, and one-on-one conversations) focused on increased technology proficiency. Progressive clients expect us to validate that our attorneys have the requisite skills to effectively leverage the best technology available, and now we're seeing client-driven technology audits similar to risk assessments focused on an objective confirmation that our timekeepers are making the grade.

Designing to Measure

PZ: As a legal technology company, the focus on metrics has affected change for our clients, preceded by how our clients interface with our technology. Here's some reverse engineering logic to help explain: The metrics are really a derivative of good data and good data is the derivative of good quality input by users which in turn is the result of good UI/UX user experience.

As illustrated by this example, the needs of the law firm and how they will interact with specific technologies are vital aspects to product development. Essentially that's what brought along our latest next generation timekeeping software. We had to consider the various consumer-centric user personas right from the beginning so that we could develop technology that would not only address firm timekeeping productivity needs but also provide value to the law firm-client relationship in the form of metrics and KPIs that demonstrate billing transparency and accountability. Getting back to the reverse-engineering paradigm, we had to start at the user engagement level ' how would each user interact with the application, on which platform? This goes back to creating the appropriate UI/UX which in turn prompts engagement which prompts good data and accurate metrics. Now, law firms can take these accurate metrics directly to their clients and demonstrate their service commitment and focus on transparency.

We have learned over time that proper metrics measurement relies heavily on knowing your audience, how they consume information and in turn delivering it in the proper format.

In the old days, consumption was easy. You would print out a report and put it on someone's desk and that was the route to transmitting information and creating specific action. Today, you have a smorgasbord of endpoints that can be leveraged when looking to engage your users, so the $64,000 question becomes: “what are the 5-10 most popular endpoints and how can we create a user experience that drives firm staff engagement?”

Impactful Law Firms Metrics

JH: The most important thing when you're trying to determine where to improve operations is starting with a real-time picture of where you are. Once you can get deep into the data, you can confirm suspicions as well as learn new things that maybe you didn't know before about usage patterns and the direct correlation between things like realization rates and billing hygiene or technology proficiency. From there, it is important to create transparency so that you connect the dots between what's in the best interest of the client, which is objectively the most important thing, and what the end users are doing. In terms of users' technology expertise, you can allow people to develop their own path to get to where they should be or you can help them do that with very personalized one-on-one training. Ultimately, it goes back to the same theme of “if you don't measure, you don't know.”

Metric Futures

We strongly believe in a “back to the basics” approach when it comes to determining where to start with data analysis and measurement. Don't get blinded by shiny metrics and complex analytics at the expense of missing the mundane but major “low hanging fruit”; current behavior and engagement patterns that with moderate tweaking of technology, processes and training, can yield significant gains. In a critical application area like timekeeping, it might come down to providing firm users with an application interface that best corresponds with how they work and interact with technology, ultimately leading to better quality time data. For an MS Office power-user, it could mean a targeted training regiment focused on maximizing productivity based on how they are currently using specific features and functions.

The same approach is equally effective in the areas of e-discovery and knowledge management. Effective use of these common apps increases quality and consistency and reduces overall cost to the client. From a technology development standpoint, this requires understanding user personas; user engagement and how our consumer-driven professionals will best interact with specific applications. None of this is possible without measuring the baseline, in order to determine where firm users are and how technology, processes and common sense can take them to the next level.

Justin Hectus is the director of information at Keesal, Young & Logan, where he oversees a variety of operational functions including the direction of the firm's IT vision, strategy and execution. A member of this newsletter's Board of Editors, Hectus is a two-time ILTA Distinguished Peer Award winner. Peter Zver is the president of Tikit North America and has been serving the legal technology market for over two decades. His background in information systems and finance and his experience running technology companies have enabled him to collaborate with law firms globally on delivering time and knowledge management solutions to users.