March 26, 2019
Automated Timekeeping
Thomas Reuters recently published an article on automated timekeeping, titled "Using AI for Time-Entry Analytics to Support Pricing Functions.” The article, by Keith Maziarek, Director of Pricing and Legal Project Management at Katten Muchin Rosenman LLP, discussing the new systems being used or developed to automate the narrative portion of timekeeping to save time, make the data more reliable and useable, and increase profitability for law firms. According to Mr. Maziarek there are three types of software models for automating timekeeping: “smart time-entry”, “Big Brother application” and “retroactive time-entry”.
The “smart time-entry” software works as a sort of autocorrect or auto-text system “that increases the precision and accuracy of the narrative being recorded… this approach relies on user-defined input. Provided the logic is accurate and the pool of terms and algorithms to identify them is deep, this approach can be helpful because the behavior change on the part of the lawyers is limited,” notes Mr. Maziarek.
The “Big Brother application” monitors, collects and stores meta-data from the timekeepers’ “computers and phones, watching and listening in on everything that happens throughout the day. The application then applies logic that attempts to re-create the activities of the day either explicitly as draft time entries, or as a more generic digest that can then be referenced to increase the accuracy of the time entries that will ultimately be entered, sometimes the old-fashioned manual way,” according Mr. Maziarek.
Finally, the “retroactive time-entry” uses computer “algorithms which categorize time entries into phases, tasks, and activities using the raw, unfiltered narrative entered by timekeepers. The objective of these tools is to be able to make analytical sense of work being done on a matter or a portfolio of work without requiring the lawyers to change their processes or behaviors,” notes Mr. Maziarek.
The advantages of these systems can be readily seen, as long as the data is actually useful and does not require additional manual manipulation. These systems can reduce write-offs, reduce invoice cycles, decrease time spent on data entry, and increase a firms’ ability to analyze workflow and profitability of matters. The issue is that many of these solutions are still be improved upon, however, Mr. Maziarek believes that some of these systems can make sense now, as long as you know what you’re buying. “While none of these products have reached full maturity yet, many can already deliver more than enough value to justify their expense. It is worth noting that the ones that have gained more attention in the market have improved dramatically in a short amount of time. This is an encouraging sign. As AI capabilities continue to mature, they can be applied to these products, promising an accelerated rate of evolution and functionality,” suggests Mr. Maziarek.
Key Performance Indicators
In an article published in Legal Management magazine, titled “Keeping on Track with Key Performance Indicators” written by Drew Amoroso, founder of DueCourse, the author discusses why firms should embrace Key Performance Indicators (KPIs). As the name implies KPIs are performance measurements that track a firm’s effectiveness. “Firms use KPIs at varying levels to measure performance and track statistical information that provides important insights into the current state of the firm and its processes, and to help make decisions about the direction in which it’s headed,” Mr. Amoroso notes.
What are KPIs? Common KPIs are revenue, conversion rate of sales, time to provide a service (and therefore cost), and client rate of satisfaction. KPIs can also be practice specific, “an immigration practice may want to know how long it takes for a particular visa to be approved so that they can decide how best to structure a payment plan for those clients. Or an estate planning practice may want to know when and why their clients are coming back for amendments so that they can try to anticipate that timing and target those individuals in future marketing,” suggests Melanie Leonard, an Efficiency Designer.
It's not good enough to track KPIs, you must also establish benchmarks. “For many firms, establishing a benchmark is challenging because it requires some initial guesswork and the process is often tied to goals your firm may not have set yet. Identifying KPIs is an excellent opportunity to have an open conversation about the key objectives the firm wants to achieve, which will lead to natural starting points for identifying indicators and their associated benchmarks,” states Mr. Amoroso.
Why track KPIs? “First, firms that engage in the measurement process learn the truth about the strength of their business and how it is functioning. Without measurable data, decisions are made based on intuition, past experience, best guesses or ‘gut feelings.’ Second, the data that comes from measuring KPIs arms you with the ability to make proactive decisions rather than constantly operating from a reactive posture. Third, KPIs allow your firm to refine its processes and procedures and make major decisions about the day-to-day operations as well as the long-term strategy of the firm,” notes Mr. Amoroso.
The New Lawyer Model
A recent article, published by Thomas Reuters, titled “Delta Model Update: The Most Important Area of Lawyer Competency — Personal Effectiveness Skills” written by Natalie Runyon, discusses the relationship competencies lawyers need to master to be effective in today’s changed legal market. “Many legal experts say the legal industry is at an inflection point because the pace of change is being driven by many factors — technology, client demand, disaggregation of matter workflow, the rise of Millennials approaching mid-career status, and the faster pace of business in general,” writes Ms. Runyon.
Due to changes in the legal market, lawyers need to expand their skillsets with regard to their “Emotional Intelligence (EI)” to better deliver services and maintain client relationships. EI is defined in the article as self-regulation, self-awareness and empathy. “With the pace of change and the center of power shifting to the buyers of legal services, the demand for improvements in how lawyers relate to clients has increased. And increased EI makes for better lawyers to act as trusted advisers for clients, notes Ms. Runyon.
The article highlights the new Delta Model 2.0 of lawyering. This model of an effective lawyer balances the need for technical competences in law and business with the personal effectiveness of relationship management, EI, Communication and entrepreneurial mindset. In a survey of legal service buyers and providers the developers of the Delta Model 2.0 found these results:
Thomas Reuters recently published an article on automated timekeeping, titled "Using AI for Time-Entry Analytics to Support Pricing Functions.” The article, by Keith Maziarek, Director of Pricing and Legal Project Management at Katten Muchin Rosenman LLP, discussing the new systems being used or developed to automate the narrative portion of timekeeping to save time, make the data more reliable and useable, and increase profitability for law firms. According to Mr. Maziarek there are three types of software models for automating timekeeping: “smart time-entry”, “Big Brother application” and “retroactive time-entry”.
The “smart time-entry” software works as a sort of autocorrect or auto-text system “that increases the precision and accuracy of the narrative being recorded… this approach relies on user-defined input. Provided the logic is accurate and the pool of terms and algorithms to identify them is deep, this approach can be helpful because the behavior change on the part of the lawyers is limited,” notes Mr. Maziarek.
The “Big Brother application” monitors, collects and stores meta-data from the timekeepers’ “computers and phones, watching and listening in on everything that happens throughout the day. The application then applies logic that attempts to re-create the activities of the day either explicitly as draft time entries, or as a more generic digest that can then be referenced to increase the accuracy of the time entries that will ultimately be entered, sometimes the old-fashioned manual way,” according Mr. Maziarek.
Finally, the “retroactive time-entry” uses computer “algorithms which categorize time entries into phases, tasks, and activities using the raw, unfiltered narrative entered by timekeepers. The objective of these tools is to be able to make analytical sense of work being done on a matter or a portfolio of work without requiring the lawyers to change their processes or behaviors,” notes Mr. Maziarek.
The advantages of these systems can be readily seen, as long as the data is actually useful and does not require additional manual manipulation. These systems can reduce write-offs, reduce invoice cycles, decrease time spent on data entry, and increase a firms’ ability to analyze workflow and profitability of matters. The issue is that many of these solutions are still be improved upon, however, Mr. Maziarek believes that some of these systems can make sense now, as long as you know what you’re buying. “While none of these products have reached full maturity yet, many can already deliver more than enough value to justify their expense. It is worth noting that the ones that have gained more attention in the market have improved dramatically in a short amount of time. This is an encouraging sign. As AI capabilities continue to mature, they can be applied to these products, promising an accelerated rate of evolution and functionality,” suggests Mr. Maziarek.
Key Performance Indicators
In an article published in Legal Management magazine, titled “Keeping on Track with Key Performance Indicators” written by Drew Amoroso, founder of DueCourse, the author discusses why firms should embrace Key Performance Indicators (KPIs). As the name implies KPIs are performance measurements that track a firm’s effectiveness. “Firms use KPIs at varying levels to measure performance and track statistical information that provides important insights into the current state of the firm and its processes, and to help make decisions about the direction in which it’s headed,” Mr. Amoroso notes.
What are KPIs? Common KPIs are revenue, conversion rate of sales, time to provide a service (and therefore cost), and client rate of satisfaction. KPIs can also be practice specific, “an immigration practice may want to know how long it takes for a particular visa to be approved so that they can decide how best to structure a payment plan for those clients. Or an estate planning practice may want to know when and why their clients are coming back for amendments so that they can try to anticipate that timing and target those individuals in future marketing,” suggests Melanie Leonard, an Efficiency Designer.
It's not good enough to track KPIs, you must also establish benchmarks. “For many firms, establishing a benchmark is challenging because it requires some initial guesswork and the process is often tied to goals your firm may not have set yet. Identifying KPIs is an excellent opportunity to have an open conversation about the key objectives the firm wants to achieve, which will lead to natural starting points for identifying indicators and their associated benchmarks,” states Mr. Amoroso.
Why track KPIs? “First, firms that engage in the measurement process learn the truth about the strength of their business and how it is functioning. Without measurable data, decisions are made based on intuition, past experience, best guesses or ‘gut feelings.’ Second, the data that comes from measuring KPIs arms you with the ability to make proactive decisions rather than constantly operating from a reactive posture. Third, KPIs allow your firm to refine its processes and procedures and make major decisions about the day-to-day operations as well as the long-term strategy of the firm,” notes Mr. Amoroso.
The New Lawyer Model
A recent article, published by Thomas Reuters, titled “Delta Model Update: The Most Important Area of Lawyer Competency — Personal Effectiveness Skills” written by Natalie Runyon, discusses the relationship competencies lawyers need to master to be effective in today’s changed legal market. “Many legal experts say the legal industry is at an inflection point because the pace of change is being driven by many factors — technology, client demand, disaggregation of matter workflow, the rise of Millennials approaching mid-career status, and the faster pace of business in general,” writes Ms. Runyon.
Due to changes in the legal market, lawyers need to expand their skillsets with regard to their “Emotional Intelligence (EI)” to better deliver services and maintain client relationships. EI is defined in the article as self-regulation, self-awareness and empathy. “With the pace of change and the center of power shifting to the buyers of legal services, the demand for improvements in how lawyers relate to clients has increased. And increased EI makes for better lawyers to act as trusted advisers for clients, notes Ms. Runyon.
The article highlights the new Delta Model 2.0 of lawyering. This model of an effective lawyer balances the need for technical competences in law and business with the personal effectiveness of relationship management, EI, Communication and entrepreneurial mindset. In a survey of legal service buyers and providers the developers of the Delta Model 2.0 found these results:
- 92% named “Relationship Management” as a top 10 competency. To underscore the point of relationship management, an in-house lawyer to who we spoke stated: “Even when you are in-house lawyer, you are still in client service, which I don’t think people realize. I still have clients and they get paid by the same company — they don’t pay you.”
- 83% named “Communication” as a top 10 competency, particularly knowing your audience. In fact, the Chief Human Resources Officer of an AmLaw 200 law firm indicated that it’s a top development area for the firm, framing communication as “understanding your audience and what is right for a particular client or a particular partner that a lawyer works with.”
- 75% named “EI” as a top 10 competency. A professional development director in an AmLaw 200 law firm said that the self-management part of EI is really critical. “Self-management is key, and the ability [for any lawyer] to take responsibility for their own behaviors and for their own wellbeing” at any level is a top 10 competency.
- 66% named “entrepreneurial mindset” as a top 10 competency. An in-house lawyer we spoke with provided her view of what this looks like by the willingness of a person to put “their hand up and say, ‘I see a problem and I have an idea of how to solve it’ or ‘I heard of this really great tool.’”
