Digital White Papers

November 2015: Business and Financial Management

publication of the International Legal Technology Association

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ILTA WHITE PAPER: NOVEMBER 2015 WWW.ILTANET.ORG 16 recognize how these techniques will improve legal workflows and will provide them with the credibility to train others on implementation. For those lawyers and law firms willing to change and incorporate these tenets into their practice, the reward will not just be survival, but also greater market share, more reliable estimates of the cost of services, reduction of write-offs and write-downs, and — most important — increased client trust and resilience. If any of these variables are not present, legal project management techniques should be applied first to clarify the scope of the process to be improved. Lean tools include an "A3," which can also clarify the scope of the process. An A3 typically includes a problem statement, goal, identification of the team, description of the current state process and proposal for the improved future state process. OBJECTIVE 3: Create Additional Opportunities for Process Improvement Through Data Analysis (Six Sigma) Another valuable technique for legal process improvement tied closely to Lean is data evaluation through Six Sigma. Six Sigma requires reliable data to accomplish the following: • Measure a production process's adherence to quality standards • Quantify success • Identify controls that can ensure processes do not deteriorate over time The challenge with most law firms is that they lack good historical data on matter performance. Many firms are trying to remedy this problem by implementing phase and task codes for all time entry. If these codes are used correctly, they create a rich database of information, which can be used to identify the cause of deviations. While legal processes are dramatically different from the process used to create a tangible product like a car, Six Sigma techniques can be used to evaluate historical data related to like matters to identify trends and variables and develop methods to improve consistency. In order for a legal matter to benefit from a Six Sigma evaluation, a matter should exhibit the same characteristics required for Lean and should also have a sufficient data set of similar matters on scope and duration to reliably demonstrate deviations from the norm. Similar to LPM's project plan and Lean's A3, Six Sigma utilizes the DMAIC methodology as tactical steps to achieve greater quality and to set parameters on the process to be evaluated and improved. DMAIC is an acronym for define, measure, analyze, improve and control. GETTING STARTED Whether lawyers are willing to change or not, clients will continue to look for law firms with a commitment to legal process excellence. Firms ready to implement this type of program can start by investing in the training and/or certification of a team member in project management, Lean and Six Sigma. The team member selected for training should also have experience in the administration of legal processes, e.g., either a seasoned paralegal or a senior associate. A good foundation in legal process will permit the team member to quickly MAXIMIZING VALUE: ELIMINATING WASTE THROUGH LEGAL PROCESS EXCELLENCE

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