DEFINITIVE GUIDE TO Legal Document Automation.

For Law Firms Legal document automation is not scary. Automating the creation of documents is not intended to replace, minimise Why should or threaten what lawyers do. Lawyers always have been, and always will be, the guardians of the legal documents that form the basis of all business; but by automating certain parts of the process, they can be liberated to focus I read this? on elements of the role that add real value. But where to start? Document automation can bring speed, efficiency, consistency, less risk and lower costs — but how do lawyers, whether in house or in private practice, start to realise those benefits? How do we define the key terms, how does the process work, and which documents are suitable? What can we learn from the early adopters about getting buy-in, implementing solutions and measuring ROI?

This guide will demystify document automation, helping lawyers to understand how to be ready for automation — and make a measurable success of it when it’s time to implement.

1 Contents

What is document automation and how is it used? Part 1 What is document automation? Part 2 Automation in practice at law firms

Key considerations Part 3 Document automation: a law firm buyer’s guide Part 4 Measuring document automation ROI in law firms

Getting started Part 5 Influencing key law firm stakeholders Part 6 Making the case for document automation Part 7 Successful implementation of document automation Part 8 Successful change management within law firms

Conclusion

2 PART ONE What is document automation?

3 PART 1 | WHAT IS DOCUMENT AUTOMATION?

What is document automation?

Document automation means The purpose is to automate the repetitive process of building a document from scratch each time you need a creating automated templates, new contract. In practice, many contracts are extremely similar, with just a few variations. So, for example, once using software, for legal you create an NDA template, the next time you need an documents (such as contracts). NDA, you can generate it much more quickly using the questionnaire. The completed questionnaire will enable Once the templates are created, the system to dynamically create the document, selecting and inserting clauses throughout based on answers given. users of the software usually The software also persists all formatting, numbering and answer questionnaires. Once it document styles as per your requirements which saves even more time. has this information, the software Some solutions enable users to create a suite of related can instantly generate the documents based on the same data input. For example, a real estate lawyer could generate a lease, a rent deposit contract, and you’re done. deed and a licence for property alterations without having to repeat the data entry.

Automating the creation of complex documents can dramatically reduce the human effort, time and costs involved in drafting. It also helps to reduce risk as once the initial template build is done, the opportunity for human error to creep into the drafting process is dramatically reduced.

Finally, law firm clients can be provided with direct access to automation services as a key element of the service offered by the law firm. This can add significant value to the overall customer offering, and allows firms to partner even more closely with their clients.

4 PART 1 | WHAT IS DOCUMENT AUTOMATION?

Document Document automation – automation – when when to automate. not to automate.

Consider document automation if your documents or Document automation may not be suitable for: processes are: –– New areas of legal practice with processes and –– High risk and require consistent inputs and outputs documents that are still to be settled across a standalone document or a broader suite –– Unique or non-repeatable tasks and bespoke matters, –– Done repeatedly, using well-established documents and done on an ad hoc basis processes –– Matters with frequently changing requirements –– Tedious or time consuming to complete manually –– Documents that are not in Word format –– Done on a fixed-price basis and/or with low profit margin If automation is not the right solution, consider other ways to improve matter management, such as task management –– Of a type that could benefit from clients or a third tools and process mapping. party inputting data or participating directly in matter workflows.

5 PART 1 | WHAT IS DOCUMENT AUTOMATION?

Dictionary Generated document Jargon buster – The generated document (or documents) is the Each template within a document automation output of document automation — this is the terms you need system has a dictionary. The dictionary is a document that your questionnaire page generates description of all variables and business rules or assembles. Its fields will have changed to to know. contained in that template. It contains all aspects reflect the names, dates and other variables that of the variables, including names, type and how are specific to the transaction in question. questions should be asked on the questionnaire. It will only include those clauses that pertain to During discussions about document automation platforms Dictionaries can be specific to each template, the answers you gave to the questionnaire. you may encounter some unfamiliar technical terms. and included as part of that template’s document, Explained here are some of the most important words or used by multiple templates, in which case Guidance and phrases. they are placed in a separate document called an Document automation tools allow you to add external dictionary. Content Management System (CMS) guidance to questionnaires, to help users fill in the correct data. Guidance can contain A Content Management System (CMS) is a eSignature hyperlinks to other pages on the internet or to computer application — often cloud-based — An eSignature or electronic signature is a means your company’s intranet. used to manage digital content. You can use it to by which a person can indicate their agreement add, edit or delete content for publishing on an with the content of a document or set of data. Questionnaire external website, or an internal intranet. A CMS Like its handwritten counterpart in the offline The questionnaire is what the user of the can also be known as a Document Management world, an electronic signature is a legal concept document automation software interacts with, System. capturing the signatory’s intent to be bound by in order to generate the finished document. the terms of the signed document. Decision tree Questionnaires are very flexible: the number of pages, their branding, the amount of guidance A decision tree is a diagram, which a user can Field and hyperlinks, the text of the questions and page follow to employ and automate the processes, A field or variable is an area of the document and group headings can all be customised. expertise, reasoning and decision-making that being automated that must be able to change would usually require a human subject matter with each transaction or usage of the document. Template expert. A questionnaire in document automation These could be things like the party name, a date, A template is a document you create in the software can act as a dynamic decision tree, a monetary value, a registered address, automation software that includes all possible guiding the user through data to produce and so on. clauses and scenarios. You then apply mark-up repeatable legal advice. to the template to give details of which clauses should be used in which circumstances.

6 PART 1 | WHAT IS DOCUMENT AUTOMATION?

Variable –– File upload – A path to a document to be Variables are containers for data in the uploaded and re-generated. document. This data could come from different –– Whole number – A variable that contains a places: it could be acquired through answers whole number only. to the questionnaire; it could be calculated –– Decimal number – A variable that can contain with reference to numbers entered in the a whole number or decimal number. questionnaire; or shorthand terms that pull –– Date – Contains a date. more substantial data from the dictionary. –– Time – Contains a time. Variable types –– Computable – Contains a calculation or Every variable has a type which determines what business rule. Such a variable won’t be ‘asked’ kind of data it is holding, and which functions can on the questionnaire, as it will be calculated be applied to it. Some types of variable within a from other inputs. document include:

–– Text – A single line of text containing any alpha-numeric characters. –– Multiline text – Any number of lines of text, including alpha-numeric characters and line breaks. –– Yes/No – A variable that only contains a yes or no answer. –– Text selection – A variable that has many choices. This can be a multi-select checkbox question or a single-choice dropdown.

7 PART 1 | WHAT IS DOCUMENT AUTOMATION?

How are others using document automation?

What documents are being automated?

Share Purchase Agreements 23%

Employment Contracts 22%

Commercial Agreements 21%

Leases and Licenses 21%

Facility/Loan Agreements 16%

In which practice area?

24% 23% 17% 17% 15% 15%

*Respondents to the survey questions were able to select multiple answers meaning the total response percentages exceeds 100%.

8 PART 1 | WHAT IS DOCUMENT AUTOMATION?

Key benefits of automation.

Other benefits –– Increase matter velocity for more predictable and more profitable Alternative Fee Arrangements –– Capture and codify lawyers’ expertise –– Leverage workflows to develop new business Improved consistency Reduced risk Saved time and faster models with clients & standardisation turnaround times –– Win new clients with better business development

Reduced costs Allows lawyers to Improved client focus on higher relationships value work

9 PART TWO Automation in practice at law firms.

10 PART 2 | AUTOMATION IN PRACTICE AT LAW FIRMS

Case studies.

“The key value is efficiency … our lawyers get to a “The more we use it, the more our lawyers come up with first draft quicker.” even better ways of using it.”

Clifford Chance: Management Specialist at Clifford Chance, Pinsent Masons: from their inbox. Firstly, this frees up time Clifford Chance was one of the magic explains the difference: “our lawyers need Pinsent Masons is renowned as one of the for them to take on more high-value, circle’s earliest adopters of document to answer just a single set of questions to most technologically advanced law firms strategic, value-added work. Secondly, automation, implementing automated get their new variation of the document. in the UK, winning several awards for Pinsent Masons found that lawyers templates in 2001. As one of the UK’s As well as the obvious time savings for innovation and embracing new solutions started to find innovative ways to use the as a way to distinguish their client service automation technology itself; for example, biggest firms, its document volume was them, there is more richness and value levels. That ethos is driven by clients, says creating ‘self-serve’ solutions for clients, huge, but reliant on a system of manual to the templates rather than managing David Halliwell, Director of Knowledge and so they could generate common contracts templates that created inefficiency and multiple versions”. Innovation Delivery at Pinsent Masons. themselves, without needing to instruct risk. Templates were slow to build, and “We’re under pressure from our clients to counsel each time. “Once we shifted A key benefit for a firm of Clifford Chance’s the number of variations and versions change the way we’re doing legal services people into a different mind-set, they’ve size is version control. The number of was difficult to maintain. The struggle today,” he explains. Clients’ businesses taken that and run with it in so many templates in a given area could be reduced to keep both the templates — and are increasingly digital in nature, and different ways,” says Halliwell. potentially hundreds of lawyers’ use of from 6 or 7 down to 1, reducing the they expect the external providers they them — consistent raised the possibility of burden and risk of errors when updating use to reflect this transition. Document unacceptable risk in the contract workflow. templates. The risk when generating automation is a key part of delivering contracts from the template is also that value. The firm implemented an automation reduced — there’s less scope for errors solution to reduce risk and bring efficiency when contracts come from one source Pinsent Masons faced a common issue with the implementation of document to the process. Lawyers ‘teach’ the solution instead of several. Now, in 2018, document automation: initial resistance from lawyers. an agreed template, from which a robust automation is standard for Clifford Chance “They couldn’t understand that their work, contract can be generated by answering and key to its delivery of an exceptional which they’d seen as beautifully crafted, a questionnaire. The template allows service level. “The key value is efficiency,” was just a process,” explains Halliwell. enough flexibility for variations, but says Swaffield. “Our lawyers can get to a Educating lawyers about this point is ensures the principles and foundations of first draft quicker, and both they and our crucial: instead of side-lining lawyers, the document don’t change due to manual document specialists are free to focus on in practice, document automation removes human error. Gail Swaffield, Knowledge more interesting and more valuable work.” low-value, high-volume document creation

11 PART 2 | AUTOMATION IN PRACTICE AT LAW FIRMS

Case studies.

“Our client can generate compliant contracts on a “We want to draft quicker, improve the quality and self-service basis.” consistency, and reduce costs.”

Radiant Law: basis and don’t need to involve lawyers Kerman & Co: The firm made simple estimates of time in every transaction — and importantly, spent drafting manually, versus the Radiant Law is a relatively new firm that the legal team know that sales can only Kerman & Co has around 50 fee-earners automated process, and mapped the embraces technology, both for its clients generate agreements which are compliant spread across its London and Dublin numbers against partners’ billable rates, and for its own lawyers, as a key enabler with corporate policy.” Radiant is able to offices, serving a client base that includes generating dramatic savings that are in delivering award-winning service levels facilitate robust legal documents for its many small and mid-sized publicly- shared through a report with the wider to clients. Document automation has been client, but also stay out of its way, and listed companies. In such a highly team. Document automation has proved so a key piece of the puzzle since the firm empower it to serve itself, seeing the law competitive area of the market, speed of successful and intuitive that the firm even launched in 2011, with many of its hires firm as a genuine business partner. turnaround and cost-effectiveness are key sends questionnaires directly to clients to coming from firms that were early adopters “The role of document automation in differentiators: “we wanted to provide a fill in themselves, cutting costs on both of automation solutions. helping us do that is very important,” more efficient and responsive service to sides and achieving precious efficiency says Hamilton. our clients,” says Martin O’Donoghue, gains. “Document automation allows us The firm uses document automation both Partner at Kerman & Co. This led the firm to quicken the pace at which we produce for internal document assembly, as well “Our core focus is helping our clients get to explore document automation. documents while maintaining quality and as client-facing self-serve. A client needs better contracts in place faster and that mitigating risk,” says O’Donoghue. to draft large volumes of commercial The firm started by automating basic means getting rid of unnecessary steps, “We can produce draft documents quicker, contracts; Radiant uses automation engagement letters, to prove the speeding up the process and making sure improve the quality and consistency of solutions to build templates for them, concept to the firm’s corporate group. that they feel fully in control of what’s our service as a whole and, in the process, optimising the language and structure This gradually expanded to include share going on. All of these are assisted by reduce costs.” through the firm’s technical expertise. automation and workflow products so purchase agreements, confidentiality Clients are then empowered to generate clients can actually see what’s happening agreements, and a range of other day-to- commercial contracts, which meet on their matters. One of our clients once day documents that represent a significant Radiant’s high standards, on demand. described the impact as freeing up 30% portion of the volume of a firm of Kerman’s of their lawyers with the same budget to size. Using clause management with Alex Hamilton, CEO of Radiant Law, actually do more strategic deals.” document automation, the firm’s lawyers explains how document automation helps can drop clauses in and out to generate Radiant to add value for a top-tier client: bespoke variations, without straying from “the sales team are able to generate the foundations of the templates that the compliant contracts on a self-service partners approved.

12 PART THREE Document automation: a law firm buyer’s guide

13 PART 3 | DOCUMENT AUTOMATION: A LAW FIRM BUYER’S GUIDE

Appearance and user interface Ability to ‘suite’ documents Ability to build in approvals Buyer’s guide. First impressions count when it together and workflow comes to new tools. Lawyers have Some solutions let users create The best document automation Here’s everything you need to consider to be impressed by a software a suite of related documents solutions include governance and when choosing a document automation solution to stop it becoming based on the same data input. workflow in their questionnaires. solution. First, consider internal use and shelfware. You can’t compromise For example, a real estate This means senior lawyers can adoption, and secondly, external use by on this due to price — there’s no lawyer could generate a lease, embed best practice and advice your clients. value at all in cheaper software a rent deposit deed and a into the workflow, allowing junior that goes unused because licence for property alterations lawyers to train at the point of Internal use at your law firm lawyers hate its look and feel. without having to repeat the need, and generate best-in-class Find an interface that excites data entry. This saves time documents at a much more Ease of use your users. and drives efficiencies across a competitive margin. You need quick adoption to prove range of areas, like construction Senior lawyers can sign off with ROI, so the solution needs to be Ability to gather data appointments and warranties, smart workflow configuration. easy to use. Aim for a solution Smart law firms offer clients or business restructuring suites of that integrates with the platforms management information administrator sale documents. where its users currently live, gathered from their contracts like Microsoft Word. And data. Pulling data on the most Integrations aim to select a supplier that negotiated clauses, or proportions Save time by finding a solution provides flexible services and of different types of document, that can speak to existing support options that meets your can help clients to reduce risk and systems. Look for a product with requirements. For example, you ultimately save money. It’s a great an open API so you can build may wish to create questionnaires way for firms to differentiate their connections with your existing and draft documents yourself, or service from competitors. technologies if integrations do may decide you prefer the supplier not come out of the box. to do that on your behalf.

14 PART 3 | DOCUMENT AUTOMATION: A LAW FIRM BUYER’S GUIDE

External use by your clients Ability to build in approvals and Getting started workflow Researching the available products with Fee models for client-facing Clients often use document these features will enable you to choose functionality automation to help with internal the right solution for your firm’s needs, Law firms might want to allow governance between their and those of your client. clients and third parties direct business and their legal team. access to the questionnaires, The inclusion of certain values Next, build your business case. either to add value or for or parties in a document might business development. trigger the involvement of the –– Scope the low-hanging fruit that you’d This might attract an extra cost legal department for senior automate first from the software vendor — sign-off, for example. Make sure –– Calculate the time savings that would clarify this and include it in your your solution has workflow you bring ROI for document automation. business plan. can easily implement, rather than –– Make sure you clarify how you’ll creating a capacity issue resource the project — whether that’s Customisable client areas for the in-house team. If clients log in directly, their in-house, an outsourced provider, or a workspace must be secure and Reporting capability combination of the two. separate from other clients, Clients would benefit from –– Sense-check your plan with peers at so your solution must let you data — preferably in accessible other law firms. What did they choose? create sub-sites. You will want dashboards — that help them How was the roll out and would they to customise these with client improve the efficiency of their make the same choice again? branding to make them feel at contracting, just like law firms. home when they use the tool. Discerning clients have started Once you’re satisfied, request a pilot to demand this feature — make period with your chosen provider. sure you choose a solution that Choose a discrete area with a high volume delivers. of similar documents, like real estate, and gather feedback from lawyers. If it goes well you can proceed to launch. It’s worth branding your solution with one name so that post-launch, lawyers all call it the same thing, rather than confusing each other talking about ‘document assembly’ and ‘contract automation’ when in fact it’s the same thing.

15 PART FOUR Measuring document automation ROI in law firms.

16 PART 4 | MEASURING DOCUMENT AUTOMATION ROI IN LAW FIRMS

It’s no secret that law firms are under Turning to technology, automation is considered a staple For each document type you look to automate, you pressure from their clients to deliver more part of the law firm toolkit to drive down the cost of delivery should be creating a benchmark. How long does it take for legal services, increase margin, create consistency, your lawyers to draft these documents manually from creative and cost-effective billing solutions. and improve risk management for the firm. Those that the existing MS Word precedents? How often are these These pressures are driving law firms to have ventured down the path of implementing document document types being drafted each month? Once your think differently about their services, the automation report that implementing the software content is automated, take these measurements again. way their firms are run and the solutions positively affects profitability and productivity in the firm. How has the drafting time decreased? How does this Which begs the question, how are firms truly quantifying improve the margins on this particular type of transaction? they can leverage to give them the edge over this in order to justify the investment in these technologies? their competition. Quantifying time savings in practice To help demystify, we’ve broken down the main approaches For law firms, ROI can be established through close into 3 key steps to demonstrate an ROI from your monitoring of monthly statistics for each practice area, automation solution. and each individual precedent.

To calculate the ROI for each automated precedent, 1 2 3 the document’s manual drafting time is recorded. The automated drafting time is then subtracted from the manual drafting time to give the raw time saving.

Monthly usage statistics for each precedent show how many of each precedent have been generated.

Multiplying the raw time saving by the number of times 1. Measure a document was produced, and then by the average Users report up to 82% time savings in generating drafts fee-earner’s hourly rate gives the basic saving provided of legal documents with automation. This type of ‘time by document automation. taken’ measurement is the most common way firms using document automation quantify the results of automating a particular precedent. How they achieve this is all about measurement. Delivering an indicative ROI lies in the power of your reporting. To understand how automation can positively impact your drafting process, you need to Manual Automated drafting time drafting time time saving understand what the current picture looks like. The key areas to understand are the frequency of use of a document and the time taken to draft a document.

Monthly saving

17 ((Raw time saving x No documents produced) Average billable rate) PART 4 | MEASURING DOCUMENT AUTOMATION ROI IN LAW FIRMS

“Document automation allows 2. Maintain 3. Manage us to quicken the pace at A lesser considered by-product of precedent automation is Two frequently referenced benefits that automation consolidation of existing templates. Many firms consider brings to a firm are improved quality of output, and an which we produce documents their precedent bank to be a key competitive differentiator, improved client experience. From an ROI perspective, while maintaining quality and so of course great investment is made in ensuring that these are qualitative and more difficult to assign a mitigating risk.” these are maintained. number to, but are absolute critical factors for a firm’s commercial success. “We can produce draft Many precedents are variants on a single document type with variations to handle specific circumstances or even documents quicker, improve the clients’ own preferred wordings and terms. Each of these quality and consistency of our variants have to be individually maintained and updated as any changes are introduced. For the purposes of service as a whole and, in the automation, these documents will typically be consolidated process, reduce costs.” into one document containing all the possible variants. Questionnaire Generates documents This significantly reduces the overall time spent having to Martin O’Donoghue, Partner at Kerman & Co maintain document templates.

For example, there may be up to 16 variant documents of a commercial lease. Through automation this is consolidated Managing your brand into one master document template. When legislation From a branding perspective, consistency in terms of changes and citations need to be updated within quality of service impacts the client’s overall perception documents, the document owner now only needs to update of the firm’ brand. As such standardisation of documents one single document, representing a significant decrease in is a key initiative for many firms. If firms believe that costs for maintaining documents. their own precedent bank offers significant competitive As part of the automation process, a record should be kept advantage, it makes sense to standardise this across the of any document consolidation. A benchmark figure for board and ensure that everyone is delivering the same each document set should be fixed as an estimate for the high-quality service. Automation is a key facilitator to time currently spent maintaining the individual documents. ensuring that this happens. Inherent with that is risk Going forward, future maintenance on the single or management. Through the use of automation, the risk reduced precedent suite can then give an indication of the of errors and subsequent time and resource costs are efficiencies and cost savings delivered. significantly reduced.

18 PART 4 | MEASURING DOCUMENT AUTOMATION ROI IN LAW FIRMS

Manage your client relationships In practice: innovative legal service Enhancing client relationships and delivering the best delivery client experience is without a doubt the top driver for any Clifford Chance Dr@ft is an automated document law firm. Considering drafting efficiencies, if a fee earner assembly system, based on Contract Express software. can respond to a client request within hours — generating Clifford Chance Dr@ft allows Clifford Chance clients to, a document that might take the best part of a day without quickly and independently, generate tailor-made and automation — there’s no doubt the client will be impressed house-styled documents within the secure Clifford Chance with that level of service delivery. Dr@ft private cloud. There is also a case to say that by introducing efficiencies in drafting, fee earner time is freed up to provide additional value add services to the client. In certain transaction types “We’ve approached Clifford it may also enable the department to be able to handle an Chance Dr@ft like a start-up increased number of transactions and therefore increase revenue, or indeed add new revenue streams that would venture and are pleased with previously have been deemed too unprofitable. how quickly we are able to

On the more innovative side of legal service delivery, generate the interest of our client clients could be provided with access to automation with this product and we can services directly which will add value to the overall service now start scaling it. Revenue offered by the law firm. from our new incomes streams is small in comparison to our Commercial success overall revenue but within a In the current competitive marketplace, driving cost relatively short period of time efficiencies is a key initiative for firms. Document we’ll be able to grow this type of automation can deliver cost savings through efficient drafting and reduced ongoing document maintenance, business and when we get right which can be easily evidenced through robust reporting up to scale I’m quite sure it will and measurement. Automation also helps to drive be an interesting income stream.” cost savings in risk and brand management. But its value proposition extends beyond a simple cost saving. Bas Boris Visser, Global Head of Innovation. Leveraged to its full extent, it can provide new commercial Clifford Chance. opportunities with new and existing clients, and can drive delivery of exactly the kind of creative and innovative legal solutions that clients seek.

19 PART FIVE Influencing key law firm stakeholders.

20 PART 5 | INFLUENCING KEY LAW FIRM STAKEHOLDERS

Influencing key law firm stakeholders.

If you’ve decided that you need The Finance Director 3. Managing risk The IT Director document automation, then Here’s how to address your Thorough, transparent planning and Here’s how to address your IT Finance Director’s chief concerns. proper scope should allay the fears director’s chief concerns. you’ve made an important step here, but it’s also worth considering towards faster, more efficient factors like how much training is client service. But your decision 1. Business growth and profitability required, how long will implementation 1. The right tech at the right time Make clear to your finance director the Make sure you have a solution that alone is unlikely to be enough. take, what are the security standards return on investment (ROI) they can of the tool, and will there be a pilot integrates with everything else you There are other key stakeholders expect from the solution. You can use scheme prior to full adoption? currently use. Find out how much in the firm who’ll be affected an ROI calculator to quantify both the Consider each of these carefully to ease upgrades and maintenance cost. If any by, and have an interest in, your time and cost savings, and demonstrate your finance director’s concerns. of these raise red flags, you might have how these metrics impact the firm’s the wrong solution. decision to implement a new bottom line. 4. Staying competitive solution. Here are their main Find out which other firms use 2. Can you deliver on time and on 2. Efficiency document automation, and what for: do budget? concerns, and how to address Document automation ultimately Check that you have the bandwidth in IT them. they enable PSLs to handle low-value lets junior lawyers and PSLs generate work? Do they create self-serve portals for a change project of this size. Starting documents based on the templates for their clients? Do they target their with a small use case and a pilot, rather created by senior lawyers. Fast, best-in- efficiency savings at a particular team, than taking the risk of committing to a class documents that don’t compromise or a particular client sector? Work out huge implementation, will make buy in on quality, but aren’t constrained by where document automation would be easier for your IT director. resources, are a huge efficiency gain. a competitive advantage and make the 3. Security and data privacy case to your finance director. Make sure your IT director is part of conversations with your supplier early on to address any concerns about security and privacy. This saves time being wasted pursuing a solution that’s ultimately non-compliant.

21 PART 5 | INFLUENCING KEY LAW FIRM STAKEHOLDERS

The Managing Partner 2. Employee engagement She or he shares many Deployed correctly, new technology concerns with the IT and can revitalise employees, liberating finance director, around growth, them from mundane work so they can staying profitable, and staying focus on high-value tasks. Make sure competitive. However, she or the solution is communicated in this he will have their own way, so lawyers don’t feel they’re being specific concerns. automated out of a job. 3. Company reputation 1. Client satisfaction Beyond competitive advantage, Any managing partner will focus heavily a managing partner will consider how on how a new way of working affects new technology affects their perception the client experience. It’s important in the market. Will document to position automation as a benefit to automation increase the firm’s profile clients too, in terms of the turnaround as an innovative, cutting-edge provider? time and quality of work they receive, This can be a powerful message to rather than as an efficiency that they bring a key stakeholder on side. ultimately perceive as a cost-cutting exercise that doesn’t benefit them.

22 PART SIX Making the case for document automation.

23 PART 6 | MAKING THE CASE FOR DOCUMENT AUTOMATION

Making the case for document automation.

You’ve now identified that your The key business considerations in more Executive sponsorship and Training detail: change management law firm can benefit from legal Identify your target audience for document automation and have Plan your business change the initial phase. What training Business application evaluated your automation roadmap. Identify what the and briefing requirements will overall plan and direction of the audience have and what options. The next step is to start Set your strategy. What is the firm trying to achieve, what are the travel is for transforming the way internal resources will be required building a business case. specific goals and objectives and in which your business currently to support the training process? how will you measure the success works and what the new model of Some training examples include: of this initiative? working will be. Identify your key training to understand the To help you build your case we’ve identified executive sponsors and change automation engagement process, some key business considerations your champions who will help you basic training on using the business case should address: Documents and document templates promote the programme and solution. –– Why the business should automate and solution internally. Determine what will the return on investment be You have a set of standard your project team and steering Evaluation and success –– That the appropriate resources required precedent templates and have group structures. What resources Clearly define evaluation are available, or the costs are included identified a strong business need are required? criteria for an initial proof of in the business case to automate them. Do you have final versions of your documents? concept/small scale roll out. –– The impact of change and a plan on Communications Are your documents in the best Schedule regular sessions to how to manage it condition possible — up-to-date Map out a clear communications review progress against goals –– What a successful implementation content, language, house style plan including timelines and and objectives and implement looks like. and cross references? delivery channels to support roll changes to process where out and internal promotion of the required. solution. Define any key activities that might need to take place, To help get you started we’ve such as internal case studies, developed a business case demonstration events and template which broadly covers roadshows. the topics mentioned above.

24 PART SEVEN Successful implementation of document automation.

25 PART 7 | SUCCESSFUL IMPLEMENTATION OF DOCUMENT AUTOMATION

We’ve all been witness to it before. The Project Team Project Manager – The key project “It’s important A new initiative, programme or tool. The following roles are recommended for overseer who will work with the Solutions Promising to revolutionise the way we the implementation project, multiple roles Suppliers in delivery and report up to the to have a sound work. A big launch announcement. A week may be fulfilled by one person. Seniors and Sponsors. They will be needed of internal promotion. And then we never to draw together the various document idea, but the hear of it again as it dies a slow death due Central Project Team and stakeholder elements from the law to poor implementation. Business Sponsor – A senior or executive firm for the project. really important member of the organisation who can Implementation of document Communications Manager – Responsible provide global authority and support. thing is the automation solutions is no different. for approving and confirming Successful implementation is essential Author(s) – The central interface with communications around the project implementation.” to automation being fully adopted and individual practice area leads. Responsible are appropriate and ensuring a launch utilised by the business. Many automation for liaising with practice area groups to communications plan is in place. — Wilbur Ross solutions have failed to be fully utilised select, prepare and automate precedents Typically combined with the project across the contract lifecycle simply due to and prepare for launch. Will also be manager role. implementation issues. required to engage with the Solutions Supplier for feedback during the Once you have selected your vendor and migration project. have been through any pre-implementation activities, you will start the implementation Administrators – Individuals responsible project. Document automation for the configuration and maintenance of implementation is a very collaborative effort, the system. This is not an IT role, but for involving a number of key stakeholders elements of data draw from other systems from the business as well as the solution requires interfaces to technical teams. supplier. Each supplier will often offer their own project plan. But to help you better Senior Technical – Provides a central understand the steps you need to take and interface to infrastructure and integration who from the business has a role to play, resources. Manages feedback from the we’ve outlined a list of general key project Project Manager on technical projects. roles and implementation project milestones.

26 PART 7 | SUCCESSFUL IMPLEMENTATION OF DOCUMENT AUTOMATION

Acceptance Testers – Individuals from Services Project Manager – A senior Project roles. practice areas who will provide feedback service delivery consultant who will on outputs for the Authors. project manage, plan and document the Practice Area Project Team automation, configuration and deployment Technical Liaisons – For deployment requirements. The below roles will be held by many requirements or integrations provides individuals over the course of the project technical expertise and ensures local Automation Consultants – Team members as different practice areas are included in action delivery where a practice area has responsible for delivering automation and the roll out. For each target practice area, specific requirements. any further automation services required, we recommend an automation steering and configuration during the project. group is formed of these core roles to Solutions Supplier – roles and ensure each practice area is enabled for responsibilities Systems Engineer – Responsible for automation. They may, during their area’s These are roles/expertise that you should the deployment and technical guidance implementation, attend either weekly look out for at your chosen supplier. around the system and its integrations. catch ups, or specific area calls. This expertise is required to support a Integration Advisor – Provides initial successful implementation. Document Owners – (Knowledge guidance and ongoing advice to parties Lawyers/PSL) For the current document/ Account Director – Provides supplier developing integrations with the document practice area, individuals able to provide oversight and an escalation point for the automation system. legal expertise (document, process and law firm around any element of project reporting) and output review. Prepares delivery. document briefs and liaises with the Authors. Customer Success Manager – Provides overarching project success and Practice Area Partner – For the current departmental criteria management. document/department an individual able Will work with the senior team at the law to provide sign off on the final agreed firm as a point of product and account template for automation and final output responsibility. Provides support and for release to users. best practice in elements of change management and communications planning.

27 PART 7 | SUCCESSFUL IMPLEMENTATION OF DOCUMENT AUTOMATION

Weeks: 1–4 As part of this process we will identify the Key implementation milestones. Stakeholders: Central Project Team core project team, timelines for delivery and perform a risk analysis. This is also During the project kick off we will work The implementation schedule and stages can vary, depending on the solution provider, the stage to identify and scope any with you to understand the core objectives size of the firm or organisation and complexity of the document process being automated. customisations or design features required of your project, the project team involved With that in mind, we have included a sample Thomson Reuters Contract Express in the technical implementation and agree and the resources available. We will implementation time-line. We recommend checking with your shortlisted suppliers to see best approaches to achieving this. We like look to understand the initial practice what implementation guidance they provide. to work collaboratively with our clients areas you are looking to target and the as each firm is structured differently and Project kick off documentation you need to automate. has different challenges and objectives to Key tasks: Document current draft process, business process review, time to complete achieve. We view this stage to be one of initial draft, precedent review, template housekeeping and consolidation. the most critical to the success of the project overall.

Site configuration Key tasks: Configuration and workflow design, user access. Weeks: 5–7 Stakeholders: Project Manager, Senior Technical

This phase will be managed between the solutions supplier and the law firm or organisation’s technical teams. The design requirements identified as part of the kick off will be implemented into the system configuration to provide access to the automation software.

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Template authoring/training and The recommended skill profiles are: During this phase the Author will be Launch automation required to assist the document owners Key tasks: Launch communications, –– Document knowledge: Lawyer or PSL Key tasks: Identifying resources, author with preparing the document briefs launch activities, value delivery and who has intimate knowledge of the training, document authoring. and acting as a point of liaison between measurement activities. document and how it should work from Weeks: 8–11 the Solutions Supplier and the firm Weeks: 15–17 a legal perspective. Stakeholders: Author, Administrator or organisation for completion of the Stakeholders: Central Project Team –– Word Knowledge: Paralegal, PA/ automation. Training is delivered to two main user Secretary or Word Processor who After launch, you should schedule types, Authors and Administrators. understands Word and Word styles Automation review and testing regular check-in calls with appropriate (including house styles if these are to Key tasks: Testing, template amendments, stakeholders to monitor progress of Authors – These are template creators; be used). upload and sign off. the implementation through to agreed they design the questionnaire and mark Our recommendation for planning this Weeks: 11–14 acceptance date. Initially these should up the documents to turn them into training would be a phased roll out, Stakeholders: Authors, Document Owners, take place weekly to provide support automated templates. Typically, these identifying the key individuals for the Acceptance Testers to the Authors during the template are small groups of users who are either stages of project delivery and ensuring that development phase. These calls will subject matter experts or have links to the During this phase, Authors will share they have the appropriate knowledge at reduce in frequency in later stages of the experts that they can use to manage the the output of their automation with the the early stage. project. A date tracker should be created content. Typically, author training covers Acceptance Testers for testing. Users will to ensure that key milestone dates are basic authoring skills, through to building Authoring test both the questionnaire and the output being achieved to ensure that the key more advanced functionality. of the document to ensure that it correctly Key tasks: Preparing document briefs. objectives are achieved within the initial produces the right document for different implementation period. During these Administrators – These are the privileged Weeks: 8–11 scenarios. This may result in feedback catch-up calls the Solutions Supplier and users who manage the system and site Stakeholders: Authors, Document Owners, and improvements to be made by the firms or organisations should review data at the application level. They can affect Project Manager Author. Timelines and number of rounds collected against the key objectives. what templates are available, create During this phase, the newly-trained of feedback should be agreed to keep the This information can be used to create and manage workflows, and affect what Authors will be applying their skill to project running to schedule. project review reports and to evaluate users can see and do in the system automated precedents which have been best practice approaches going forward. itself. Administrator training covers the identified for initial launch. The duration core elements of templates and site of this phase will vary depending on the Post-launch Communications Plan management. objectives of the launch, the number and In addition, we recommend you develop the complexity of documents identified for a strong launch communications plan the initial launch. to drive positive adoption and design evaluation and feedback mechanisms to ensure ongoing success post launch.

29 PART EIGHT Successful change management within law firms.

30 PART 8 | SUCCESSFUL CHANGE MANAGEMENT WITHIN LAW FIRMS

Change management consultants identify four principles rest of the firm, visibly tying adoption to success. Successful change as essential for success: If employees see colleagues at their peer level achieving relatable success with the new tool or system, they’re much more likely to adopt too. management. 1. Employees who see the point of the change,

and agree with it, are more likely to get on board Law firms need to focus on all these aspects to make Change starts with the individual — not management, Changing how a law firm creates contracts a success of a transition to document automation. the department or the team. If the individual doesn’t means a huge shift in mind-set for some Mischcon de Reya made sure they had buy in at the top believe in the overall purpose of the change, level, and then trained specialists in the information lawyers, and getting this right is crucial the mismatch in their beliefs and actions will lead services team to work with professional support for document automation to succeed. to conflict and inaction. Make goals explicit and lawyers in automating the templates. Kate Higgins, measurable, reinforce them, and help people Change like this doesn’t just happen; Legal Director at Mischon de Reya, instituted a change understand the role they play in achieving change. it needs a strategic approach and buy in programme that involved fee earners in early testing to from stakeholders. 2. Accompany the new behaviour with recognition make sure that key stakeholders had sight of the end and reward systems goal at an individual level. She also advised focusing on You need both the carrot and the stick. The latter is no easy wins to start with, to show the benefits to those yet problem for law firms to implement, but the former to adopt, and worked on a one-to-one basis with those takes work. Making explicit the change’s rewards and less willing; but ultimately her advice was to “jump in personal benefits for individuals — such as new skills, and keep the faith”. opportunities for advancement and participation in strategic goals — will make that change more likely to Similarly, Pinsent Masons was one of the first UK firms happen. to implement document automation. Sarah Wilson, a manager in legal knowledge engineering at the firm, 3. Prioritise the skills employees need to adapt to found that “best way of introducing change is to let the the change fee earners see the product in action (live demos rather The law firm must invest time and resources into than slides) and to ensure that there is involvement from training employees in the right skills to adapt to the the lawyers in developing and tweaking the product. change. Without the skills required to maintain the new Ensuring that there is buy in at a very senior level is also way of working, employees will inevitably default to very important so that a clear message can be delivered what they did before. as to the objectives of the firm and how the new tool will meet those objectives.” She also encouraged the use of 4. Role models within the organisation also need to commercial language — talking about the new solution display the new behaviour in terms of time saved and gross margin — to make sure Change champions are a must at every level: employees that users see the commercial value of the change. who ‘walk the talk’ have to act as role models for the

31 PART 8 | SUCCESSFUL CHANGE MANAGEMENT WITHIN LAW FIRMS

Key change management take-aways Core activities that are key to The four common responses to change Change management is understood ensuring delivery to be a critical success factor in any –– Identifying and mapping software implementation. Many firms stakeholders: Assess the nature of each and organisations may face challenges in stakeholder’s influence and importance. implementing such a solution, particularly where business areas perceive it will result –– Define internal value proposition: in an increased workload. Map business strategy and objectives to strong, meaningful internal value We recommend investment in a proactive proposition. plan for communicating change and –– Guiding change leaders: Identify key managing stakeholders throughout the sponsors and compile sponsor toolkit. firm or organisation. In addition to defining –– Champion programme: Best and ensuring adoption of new processes, practice guidance and structures for positive messaging and support will be implementing business champion critical to cultural acceptance of the new programme. solution. –– Communications delivery plan: Top tips to help people become navigators Map best resources and available channels (case studies, emails etc.) to a detailed delivery plan with assigned responsibility and ownership.

32 Conclusion.

33 CONCLUSION

Conclusion.

As you now know, legal document To keep up to date with document automation helps you automate the automation, make sure you visit our creation of complex legal documents, online Definitive Guide to Legal dramatically reducing the effort, time and Document Automation, which offers costs involved with drafting — improving additional video and interactive content consistency, reducing risk and allowing as well as industry insights, expert lawyers to focus on higher priority tasks. opinions and additional case studies. Legal document automation is no longer only for the exclusive few, it’s now a crucial For more information on Thomson tool for both in house and private practice, Reuters’ document automation solutions, no matter their size. visit legal-solutions.co.uk.

With this guide, we hope that we’ve demystified document automation and provided valuable information, tools and guidance to help you along your document automation journey, from understanding the benefits and jargon through to purchasing and implementing a document automation solution.

34 PART 9 | DEFINITIVE GUIDE TO LEGAL DOCUMENT AUTOMATION FOR LAW FIRMS Definitive guidance. Definitive experts.

For over 200 years Thomson Reuters has been advancing the art and science of law. Whether Catherine Bamford Catherine Kidd through the most up-to-date legal content, CEO and Founder, Client Relationship Manager, driving innovative legal technology, or ground- BamLegal Thomson Reuters breaking legal insight, Thomson Reuters provides legal professionals across the world with the technology, intelligence and human Andy Wishart Sam Steer expertise they need to find trusted answers. Global Head, Product Management – Director, Large Law, Drafting and Automation, Thomson Reuters Thomson Reuters The Thomson Reuters Definitive Guide to Document Automation was developed through the collaboration of a number of document automation and legal experts. Rob Martin Chris Boulter Head of Software Solutions – Director, Product Management Drafting and Automation, Thomson Reuters

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