Teaching an Old Dog New Tricks: Business Process Management and Law Firms

In order to fully grasp the capabilities of BPM, one must first understand the definition of a business process. According to Gartner, a business process “coordinates the behavior of people, systems, information, and things to produce business outcomes in support of a business strategy.”

Based on this definition, there is one key element of the business process that is often overlooked: the people who carry out the workflow.

In Stephen Covey's quintessential The 7 Habits of Highly Effective People, he reminds readers that one can be efficient with things, but they must be effective with people. In their drive to cut costs and wasted time, firms often think strictly in terms of efficiency, but neglect to consider the effectiveness of the business process. In their drive to improve a workflow, firms often don't consider the importance of the workflow itself.

For example, law firms often have records management procedures in place that include the creation of a physical client file when a new matter is opened. However, these same firms may be moving to a policy whereby the official client file is the electronic file.

Is the Creation of the Physical File a Process That Needs to Be Eliminated or Modified?

Not all firms are ready to eliminate physical client files, but given organizational strategy, firms should consider implementing workflows that stem the growth and long-term management of physical client files. By employing BPM, firms can allow end users to determine if the creation of a physical file is necessary. The result of this decision can be achieved using many different methods. Some have more obvious advantages. At present, many firms group end users in logical configurations (office, department, practice group, etc.) to define rules around the creation of physical files and their structure. However, this particular method does not provide an opportunity for end users to make actionable granular preferences and does not employ BPM's signature nimble, bottom-up philosophy. Instead, BPM would use a process by which end users have the agency to make decisions that best fit the particular situation.

Integration between a firm's new business intake software and records and document management systems should allow for this type of decision making.

Ideally, the decision to create a physical file and its structure will be made by the assigned attorney based on his or her personal or team preference. In addition to providing attorney-users with the means and tools to come to a unique result, it is important that those who are responsible for records management are providing adequate oversight to the process. Records teams should be empowered to challenge end users on the necessity of physical file requests. In this way, technology meets people by encouraging communication and continual adaptation. Using this example, it becomes clear how firms can refine their infrastructure using BPM to foster a reconceptualization of current workflows by managing the process and the people who complete these tasks.

BPM and Effective Strategy

When developing a law firm BPM strategy or evaluating a BPM software solution, firms should remember some key facets of an effective BPM strategy:

• Agility. Firms should develop a BPM strategy or choose solutions that allow them to adapt a workflow based on the unique factors surrounding a specific business process. They should be able to easily refine these processes without the help of IT.
• Enablement. Firms should empower employees to consider available options and make decisions to facilitate good processes.
• Enterprise-wide. In order to truly be effective in carrying out a firm's vision, a BPM strategy should be deployed firm-wide. All parts of the organization and all software must be considered and integrated during implementation.
• Measurable. The performance of different business processes should be tracked and measured so processes can continually evolve. Benchmarking paints a picture of progress, both in broad strokes and in detail. Deciding prior to BPM implementation what elements you want to evaluate in order to measure time and productivity, your team can focus in on exactly how the new strategy benefits the team and firm overall.

BPM and Employees

Charles Duhigg's Smarter Faster Better talks about employees being most motivated when they feel they are exercising their internal locus of control. The future of business process management lies in empowering front-of-the-line employees (those closest to a particular problem) to make decisions. BPM not only allows these employees to make decisions to exploit efficiencies in their work, but BPM solutions also tell the full story of how these efficiencies impact the rest of the firm. Implementing an agile BPM strategy will empower employees to consider current internal and external variables and respond quickly in a highly effective manner.

BPM and Client Audits

Responding to client audits is another opportunity for BPM. Security awareness programs can and should include developing a workflow protocol for responding to client audits. As these audits have become more stringent, workflows may need to include a review of a client's outside counsel guidelines (OCG) and, if applicable, any requirements set forth in the original Request for Proposal. Workflow should include review by general counsel and/or risk management professionals to acknowledge any changes in jurisdiction regarding data security laws.

For example, many states are requiring encryption for both data at rest and data in transit. Workflow should also include post-audit debrief to provide insight into lessons learned and possible modifications in workflows to improve audit response.

Conclusion

It's easy to get caught in the trap that describes how things have “always been done,” but professional practitioners should evaluate effectiveness and find ways to optimize time and energy to best align with a firm's strategy. To become and remain competitive through the iterative process of BPM gives firms a strategic advantage in client relationship management and ensures that even the oldest dog is well versed in new tricks.

*****
Zachary Beauchemin, Business Intelligence Analyst for InOutsource, helps law firms to create strategic solutions to leverage the full potential of their data, increase efficiency, reduce risk, and improve profitability. Alisha DiGiandomenico, information governance project manager for InOutsource, provides project management and IG consulting for FileTrail implementations.

Though traditionally considered laggards when adopting new technology, law firms have recently started to explore new tricks to fortify performance across their organizations. While this evolution is critical to a firm's survival, it's important that firm administrators understand that substantive improvements are only possible through multi-directional change. Some firms have begun to leverage cutting-edge technology, such as business intelligence solutions, to reveal stories within their data, craft strategy, and augment decision-making.

By understanding and monitoring the big picture, firms can enact change using a top-down method. However, one major area that can bring about progress from the bottom-up has yet to be optimized: the workflow.

Clients are increasingly putting pressure on firms to provide high quality and valuable legal services at a reasonable price, however, firms are struggling to make sure those high-caliber legal services also yield profits. In order to achieve profit goals while maintaining adequate management over personnel and resources, immense development in enterprise software has taken hold over the last decade to help firms optimize the workflow. This software falls under the alias of Enterprise Business Process Management (BPM).

In order to fully grasp the capabilities of BPM, one must first understand the definition of a business process. According to Gartner, a business process “coordinates the behavior of people, systems, information, and things to produce business outcomes in support of a business strategy.”

Based on this definition, there is one key element of the business process that is often overlooked: the people who carry out the workflow.

In Stephen Covey's quintessential The 7 Habits of Highly Effective People, he reminds readers that one can be efficient with things, but they must be effective with people. In their drive to cut costs and wasted time, firms often think strictly in terms of efficiency, but neglect to consider the effectiveness of the business process. In their drive to improve a workflow, firms often don't consider the importance of the workflow itself.

For example, law firms often have records management procedures in place that include the creation of a physical client file when a new matter is opened. However, these same firms may be moving to a policy whereby the official client file is the electronic file.

Is the Creation of the Physical File a Process That Needs to Be Eliminated or Modified?

Not all firms are ready to eliminate physical client files, but given organizational strategy, firms should consider implementing workflows that stem the growth and long-term management of physical client files. By employing BPM, firms can allow end users to determine if the creation of a physical file is necessary. The result of this decision can be achieved using many different methods. Some have more obvious advantages. At present, many firms group end users in logical configurations (office, department, practice group, etc.) to define rules around the creation of physical files and their structure. However, this particular method does not provide an opportunity for end users to make actionable granular preferences and does not employ BPM's signature nimble, bottom-up philosophy. Instead, BPM would use a process by which end users have the agency to make decisions that best fit the particular situation.

Integration between a firm's new business intake software and records and document management systems should allow for this type of decision making.

Ideally, the decision to create a physical file and its structure will be made by the assigned attorney based on his or her personal or team preference. In addition to providing attorney-users with the means and tools to come to a unique result, it is important that those who are responsible for records management are providing adequate oversight to the process. Records teams should be empowered to challenge end users on the necessity of physical file requests. In this way, technology meets people by encouraging communication and continual adaptation. Using this example, it becomes clear how firms can refine their infrastructure using BPM to foster a reconceptualization of current workflows by managing the process and the people who complete these tasks.

BPM and Effective Strategy

When developing a law firm BPM strategy or evaluating a BPM software solution, firms should remember some key facets of an effective BPM strategy:

• Agility. Firms should develop a BPM strategy or choose solutions that allow them to adapt a workflow based on the unique factors surrounding a specific business process. They should be able to easily refine these processes without the help of IT.
• Enablement. Firms should empower employees to consider available options and make decisions to facilitate good processes.
• Enterprise-wide. In order to truly be effective in carrying out a firm's vision, a BPM strategy should be deployed firm-wide. All parts of the organization and all software must be considered and integrated during implementation.
• Measurable. The performance of different business processes should be tracked and measured so processes can continually evolve. Benchmarking paints a picture of progress, both in broad strokes and in detail. Deciding prior to BPM implementation what elements you want to evaluate in order to measure time and productivity, your team can focus in on exactly how the new strategy benefits the team and firm overall.

BPM and Employees

Charles Duhigg's Smarter Faster Better talks about employees being most motivated when they feel they are exercising their internal locus of control. The future of business process management lies in empowering front-of-the-line employees (those closest to a particular problem) to make decisions. BPM not only allows these employees to make decisions to exploit efficiencies in their work, but BPM solutions also tell the full story of how these efficiencies impact the rest of the firm. Implementing an agile BPM strategy will empower employees to consider current internal and external variables and respond quickly in a highly effective manner.

BPM and Client Audits

Responding to client audits is another opportunity for BPM. Security awareness programs can and should include developing a workflow protocol for responding to client audits. As these audits have become more stringent, workflows may need to include a review of a client's outside counsel guidelines (OCG) and, if applicable, any requirements set forth in the original Request for Proposal. Workflow should include review by general counsel and/or risk management professionals to acknowledge any changes in jurisdiction regarding data security laws.

For example, many states are requiring encryption for both data at rest and data in transit. Workflow should also include post-audit debrief to provide insight into lessons learned and possible modifications in workflows to improve audit response.

Conclusion

It's easy to get caught in the trap that describes how things have “always been done,” but professional practitioners should evaluate effectiveness and find ways to optimize time and energy to best align with a firm's strategy. To become and remain competitive through the iterative process of BPM gives firms a strategic advantage in client relationship management and ensures that even the oldest dog is well versed in new tricks.

*****
Zachary Beauchemin, Business Intelligence Analyst for InOutsource, helps law firms to create strategic solutions to leverage the full potential of their data, increase efficiency, reduce risk, and improve profitability. Alisha DiGiandomenico, information governance project manager for InOutsource, provides project management and IG consulting for FileTrail implementations.