Digital White Papers

36 WWW.ILTANET.ORG | ILTA WHITE PAPER FINANCIAL MANAGEMENT Can We See What They See? A Preview of Law Department Analytics Tools and Metrics Law departments increasingly expect firms to be prepared with their own versions of annual performance scorecards, productivity metrics and intelligence tools. Law firms are recognizing that their law department clients are a step ahead, by using data and analytics tools to understand and compare firm performance. Conversely, many firms are in the "what you don't know you don't know" category, curious to understand what data law departments are measuring and which metrics are being prioritized. The rise of semi-annual business reviews between law departments and firms has improved transparency, opening the doorway for firms to learn what maers and begin the move into the "what you know you don't know" category. Law firms need to know what information their clients are gathering on them and understand their competitive standing among their peers. Firms can use and leverage proper data analysis to achieve good value, enhanced productivity, lower costs and positive results for their clients. The key objective is for law firms to know where the market is within a law department, to achieve a peer view into the law department domain. What Tools Are Being Used? Several analytic tools are rising to the challenge to deliver simple, yet sophisticated, solutions to help law departments and law firms centralize and measure these dimensions. Some are lawyer-focused, providing a user experience and interface designed to allow lawyers a self-serve approach to gathering intelligence. A few allow both in-house counsel and law firms to access analytics for real-time collaboration. A key differentiating factor of these analytics tools is that they come prebaked with the metrics that maer and the ability to configure additional intelligence based on the department's needs. HBR's CounselCommand and Elevate's Cael Vision are two law department analytics tools that provide law departments a balanced mix of centralized dashboards with categories including, but not limited to, demand, resourcing and spend across multiple areas of law, such as litigation, contracts and IP. Tools like Consilio's Sky Analytics, ELM's LegalVIEW, LexisNexis's CounselLink, Serengeti's Intelligence and HBR's CounselCommand serve as spend-related, market benchmarking tools used heavily by law departments to analyze and compare market-based rates and staffing. Niche analytics products are also available. These tools target specific legal business challenges. LexPredict is an innovative decision tool that helps lawyers analyze and predict outcomes of litigation maers. KMStandards is a contracts analytics tool that helps commercial lawyers model playbooks from existing agreements, audit contract sets and review incoming contracts. Cael OnRamp is a pre- and post-diligence analytics tool that helps corporate transactional groups assess risks with high-volume regulatory and revenue contracts. Lex Machina is a diversified legal analytics engine that focuses on providing market intelligence on securities, patents, copyrights and trademark litigation. Data from these tools can be used to increase accuracy, productivity and efficiency of the work being delivered. Some law departments are innovating and integrating their own intelligence solutions with tools like QlikView or Tableau, which provide an easy and configurable way to build and generate meaningful analytics. The only caveat is that in these cases, the law department must know:

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