Dave Walton: I think the legal field is still in its infancy in terms of analytics and big data. We are still trying to understand that, and there is still a lot of consternation in some corners about what the analysis is? What does it mean to be a lawyer? Lawyers have this idea: «Well, my brain has been trained. My judgment is everything. My personal experience is everything. There`s no way a computer can ever do my job. That`s what they confuse analytics with AI with. Many lawyers don`t understand that it uses data to supplement your judgment, experience, and decision-making process, and perhaps see things you wouldn`t otherwise see because you have access to data analytics and data expertise. The possibilities for in-house lawyers to use data analytics are almost endless. The only limitation is the data you have at hand and your ability to imagine uses and questions. Opt for quick wins The smart game for those who start with the analysis of the data from the legal department is to go slowly and find the quick winnings.
No in-house lawyer has time or money yet. Start now with the available data, think about a few simple questions about measurement, and get into the rhythm of creating simple and useful reports. Share the results with the ministry to present the good and the bad. For example, if your average hourly rate for external consultants is very unbalanced, your team can help you reduce that number by working with external consultants. Transparency is good for any in-house legal department, even if it hurts. Legal consulting firms also work as companies and, in some cases, they work on their websites. Here`s an example of a descriptive measure: The Legal Department has set a goal of reducing the hourly rate it pays to external legal counsel by 10% from one year to the next. Next, look for the relevant billing data for the previous year and the current year. Run the analysis and compare the results. Is the average hourly rate for the current year 10% or higher than the previous year? If not, take steps to achieve your goal. Barnes & Thornburg advises commercial, institutional and organisational clients, in particular general counsel and senior executives, on a full range of corporate, restructuring and intellectual property matters using data analytics and artificial intelligence (AI) to justify legal solutions. Innovation and technical and research expertise enable us to use a full range of strategic analysis and reviews on corporate transactions, reorganizations and intellectual property initiatives of any size, size and sophistication.
We analyze intellectual property portfolios and monetization options such as licensing, distribution, acquisitions, portfolio gap analysis, and long- and short-term planning not only from a legal point of view, but also on the basis of concrete data. Clients rely on us for our extensive expertise in business consulting, mergers and acquisitions, compliance, privacy, data security, patents, copyrights, trademarks, designs, trade secrets, intellectual property litigation, open source and other contractual matters. If you`re dealing with a legal analysis, it`s risky because you don`t want to violate your ethical obligations and have an accidental disclosure from the client, which is a violation of a settlement agreement in one case. But if you take these concerns out of the equation for a minute, you could get data on the outcomes of cases for different types of civil cases. The power you could have with this data is immense, and we have the technology to do that. TimeSolv Legal Billing Software offers more than 30 reporting functions for law firms. With just a few mouse clicks, you can view valuable data about the company`s cases, watches, billing, and profits. Walton: Very rarely. I think your more advanced firms do, but you also encounter internal battles in law firms because lawyers tend to see IT as a panacea for everything related to technology, including analytics. Data science and computer science – it`s a different skill. It`s like being a tax lawyer and an advocate for bodily injury.
We`re both lawyers, but you wouldn`t want your tax lawyer to judge your bodily injury case, and you wouldn`t want your personal injury lawyer to do your taxes. The other problem is to think carefully about what you should and shouldn`t do with the data. In a sense, let`s go back to the ethical guidelines. There have been cases where companies have been a little too proactive. The example of Target is important. They proactively used the data to perform predictive analytics [for customer purchases]. But where is the fine line between the proactive use of this data and the «slippage» of the customer? There is not much analysis in the act at the moment. Data scientists are moving away from Silicon Valley because it`s so crowded and saying, «Where are the other possibilities?» I think the law is a prime opportunity. Legal practice is focused on facts and reasoning, so it`s surprising that more lawyers haven`t reaped the benefits of data analytics. Big Data is dramatically changing the way law firms do business. Small and large businesses can use this valuable information to make important decisions about their legal practice, especially when it comes to getting the most out of your marketing plan. However, in the modern context, data analysis generally refers to the application of these techniques to more qualitative data, particularly from social and economic systems for commercial or governmental purposes.
One example is «Sabermetrics,» the analysis of baseball statistics that helped the Oakland Athletics win 20 games in a row in 2002, and the theme of the movie Moneyball. Although the analysis of human actions is somewhat qualitative, sports statistics are still largely quantitative and therefore somewhat within reach. The analysis of legal data goes even further. Regardless of your company`s industry, data and analytics can support and enable your key initiatives. Ask business leaders, «What would you like to know?» Expand your influence by giving your leaders the answers in the form of data (and associated analytics) to support the decisions they make. What do you want to measure? Once you understand your data sources, your next challenge is to determine what you want to measure. The «what» is the fundamental goal of data analysis. Think about questions where the answers could cause the department to work more efficiently and/or more efficiently, or reduce the risk to the business. Not only will this lead to higher customer conversion, but it can also be considered one of the effective applications of big data. Attracting your ideal client depends largely on your law firm`s ability to create and distribute content that appeals to the interests of those clients and puts your firm in a positive light in the eyes of those clients.
The Internet has transformed the typical legal client into a demanding consumer who wants proven expertise from lawyers who differentiate themselves in the industry. Industry Data Analytics helps law firms identify trends and analyze markets. While the legal industry has stood the test of time, it is still important for successful lawyers to look to the future and identify opportunities for growth and increased profitability. Find all the data that is affected by the legal department. Here are some starting points: The days of shot-in-the-dark marketing efforts are over. Innovative law firms understand how data-driven marketing can better use their company`s money and resources to drive higher returns. To learn how TimeSolv provides the big data your law firm needs, click here for a free trial. For most legal departments, especially those new to data analytics, the best source of data is your e-invoicing system (or paper invoices) and factual management data (electronic or manual). From this kernel, you can start grabbing fruit at hand at no significant additional cost. Start small and simple, prove success, and then move on to more complex analyses. The knowledge management arm of our Customer Value and Innovation division also works closely with RIC in managing our online data subscriptions, which provide insights into everything from news aggregations to new litigation to competitive information about other companies. An example of a KPI you can use for your law firm is the number of client acquisitions per month.
This metric gives you insight into your company`s performance in attracting new customers.