Originally shared on digitorylegal.com. Digitory Legal is now BigHand Impact Analytics. Learn more here.

Digitory Legal and Husch Blackwell discuss how actionable cost data is changing legal pricing and practice management

Video Transcript:

Catherine Krow:
Today my co-presenters and I will be talking about how actionable cost data is changing the game for legal project management and pricing, not just generally, but specifically at Hush Blackwell.

I want to define that operative term actionable because not all data is created equal. What we're talking about is data that is granular, task-level, and well-labeled. So it shows you value and scope. Accurately and consistently coded so it tells the truth. And connected to context, the why behind the numbers? That's what Digitory delivers. That's what we're talking about today, and that's what law firms need to truly level up their gain in pricing and project management.

It is my pleasure to introduce my co-presenter, Lann Wasson, and I do it with this Galileo quote because Lann has an extensive background in data science and process and workflow engineering, and has devised a data strategy for Hush Blackwell that allows them to make measurable what is not so and with the technology assist from Digitory, to do that at scale.

Lann Wasson:
As Hush Blackwell, we understand the importance of having a data strategy that reflects the transparency and predictability that our clients need to run their businesses. For many years now, the firm has provided its clients with financial data on a next-day basis and we have put in place a number of data hygiene practices to ensure the accuracy and timeliness of this information. And while we believe these practices work, it's a heavy lift on our lawyers and a challenge to scale across our platform.

So when we engaged Digitory in a proof of concept, one of our aims was to see how well our guidelines performed compared to what Digitory sees in the industry. So we shared with them a set of matters that spanned a number of years and Digitory used its technology to code the time and its team to analyze the results. And from those results, we learned a couple of things.

In the short term, we learned that consistent reinforcement of our guidelines does make a difference. It makes a difference to write out examples and show where they should be coded, to emphasize the importance of time narratives and team meetings, and to bring new timekeepers up to speed quickly. These practices raise the quality of our narratives and coding well above the industry norms. But we also learned that we still have a ways to go because some of our narratives still reflect the practice of block billing, or are just too vague to consolidate time into the unit costs of a matter, such as the cost of a particular deposition or expert testimony. It's this level of granularity that aids in the development and management of a matter and budgets, especially when that matter does not go according to plan.

So in the long run, we recognize that machines will do most of the coding and that our attorneys must write the narratives so that the machines can perform those tasks affect. And justice, like the machine learning tools that we use in the contract review space, this technology has progressed much faster than we expected and is already able to perform tasks in a number of service areas. So we are taking a fresh look at our data strategy with an eye to the future when our lawyers never have to code again. We are looking forward to the day when we can scale these practices across our platform and serve clients in virtually every practice area.

Catherine Krow:
Ask a lawyer what a complex matter will cost, and the answer is probably going to be some version of it depends. I call that the snowflake problem because of the deeply ingrained belief held within the profession that because each matter is unique, like a snowflake, it's just too hard to really predict the cost. Today, extraordinary professionals like Jenny Brown are applying their financial expertise to quantify the unquantifiable, and Jenny will share with you how leveraging data to find the patterns in those legal snowflakes, is changing the game for her and her firm.

Jenny Brown: 
When we consider what data can do for us and our clients, there really are a multitude of benefits. At a very high level, we want to win the business. We need to manage the business and we want to improve how we do business going forward. With precise data and scoping, the often challenging RFP process changes. We become better equipped to differentiate ourselves, differentiate our services, and our value from our competitors. Rather than a vague number or a concept we can provide precise information and insight that is grounded in data.

Now we're giving the client the why to our numbers. Why does our number have value and just consider the impact that has on a client that's evaluating multiple firms? So now more than ever, clients need certainty. But we know that legal work is largely uncertain. Data gives us the ability to answer questions with the precision that was just not achievable before.

Things change during a matter life cycle, so how can we manage it? Through our project with Digitory, we were able to drill down below task code level to see how those lower-level activities really drive a matter in various directions. Having this technology and being able to provide accurate and timely adjustments, whether it's related to time or budget on the scope. It drives the confidence in the overall process and management of the matter because there is data to support the numbers.

In a space where answers are difficult to find, we need to be able to provide answers quickly. We know that strategic decisions have consequences. If our client calls and wants to add a counterclaim, for example, we should be able to tell them how much that's going to cost. Being able to respond to these questions without simply picking a number out of thin air. It requires data and it is critical for doing my job and responding to the needs of the lawyers and their clients.

Upon completion of the matter, the data will show what went well and where there are opportunities for improvements. Our experience with Digitory and viewing our data in a different way really gave us the opportunity to evaluate and quantify strategic decisions. Was it really a good deal? Is it something we want to pursue with additional clients in the future?

The data helps us understand why budgets ran over and give us direction on how to adjust for that or account for that as we price future matters. Back to that high-level view, we want the business, and we manage the business, but did it work? Data tells the story.

Catherine Krow: 
Measure what is measurable and make measurable what is not so, because that which can be measured can be managed. It can be predicted and it can be improved.

We hope that you vote for Team Data, but whatever the outcome, it has been our pleasure to speak with you today.