The article discusses a new paradigm for paperless client-matter life cycle management. 

In the software industry, we have seen over time that as markets mature, product offerings tend to consolidate. Sales, financial and accounting systems merged with support systems to become customer relationship management (‘CRM’) systems. More recently, document management systems were extended to include collaboration and portal capabilities, becoming collaborative content management (‘CCM’) systems. As the legal IT market matures, we will see a continued similar functional consolidation toward ‘systems of record’. The keystone that ties these disparate systems together is the client-matter lifecycle. 

In most firms today, the entirety of the matter throughout its lifecycle is represented by a paper file. The problem with such paper files today are obvious: file folders are not mobile and cannot be copied to a laptop and taken to court; physical folders are difficult to share, and in global firms, collaboration is impeded by use of paper folders. Contents of a paper folder also cannot be managed, as multiple people work on drafts or revisions to the same document without being aware of each other’s work. Finally, as e-mail has become the communication medium of choice, a significant portion of a firm’s correspondence about a matter is not being captured in the matter file today, despite rules or regulations in some instances that require all e-mail to be printed and copied to the matter file. 

From Paper Files to Electronic Records

Matter Centric Collaboration (‘MCC’), as a software solution, addresses these fundamental problems with today’s matter file. In the matter centric world, the paper-based matter file is replaced by an electronic set of files and folders. The electronic matter file marries content together in context. To be effective, it must be able to capture e-mail, voicemail, faxes and scanned documents; integrate with time and billing systems; and maintain contact information and other collaborative content such as tasks and calendars. An effective matter centric solution will not be a portal veneer draped over a set of disparate systems, but a way to integrate all information pertaining to the matter into one virtual file, which can be exposed through the extranet if necessary and accessed from anywhere. 

Today, 0.5% of law firm revenue is typically spent on maintaining paper records. This cost does not factor in additional expenses that are incurred, when paper records need to be transported by FedEx or courier from office to office. Converting to an electronic matter file reduces expenses, while preparing the firm for business continuity planning and moving towards a ‘one firm’ global strategy. Matter centric collaboration will not guarantee consistency or increased transparency across the organisation, but it is a foundation for such IT initiatives. 

Most important, the idea of matter centric collaboration comes out of studies of the matter life cycle in real firms today. As a consequence, it is more intuitive for lawyers than document management removed from context, because it is based on how lawyers really work. In terms of the evolutionary result of disparate software systems in today’s major law firms, matter centric collaboration is the logical end product. 

Matter Centric Collaboration Survey Results

Legal CIOs clearly perceive the value of matter centric collaboration for their firms. In particular, more than 81% expect matter centric collaboration to provide substantial help in enabling matters to be worked on across offices; and more than 70% anticipate an improvement in client service. 

The consensus is also strong in terms of the necessary features of a MCC system and electronic matter file. Automation and user convenience rank high, with 93% listing automated metadata inheritance as a critical feature; an overwhelming majority also cited the ability of users to share matter lists with others and subscribe to current matters. Every single respondent listed e-mail as a critical component of an electronic record file — even more than the 93% who listed matter documents and scanned images of paper documents. The survey results show matter centric collaboration to be on the verge of widespread adoption; although only 8% of CIOs reported that their MCC implementation was underway or already completed, more than 75% are planning to move to a MCC system within the next 18 months.

E-mail management is clearly a dominant theme in legal IT, with participants unanimously reporting a problem with e-mail overload. And no wonder: their firms receive an average of 100,000 e-mails per day. For 71% of firms, these e-mails account for more than 60% of matter-related communications (as compared with paper correspondence). Current practices for managing these e-mails are often inadequate at best; at one in three firms, the majority of users simply leave e-mails in their in-box. Recognising the e-mail management crisis, 92% of participants consider the growing amount of matter information communicated via e-mail a significant source of risk for their firm, with 96% of these CIOs actively seeking a solution to reduce these risks.