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      Document Automation Platforms Today

      The case for document automation, key features of today's software, and of some of the prominent solutions

      Summary

      • Document automation is a wonderful way to ensure consistency in quality of your firm's legal output by digitizing precedent/model documents sitting in your document management system ("DMS")
        • The consistency extends not only to the quality of output, but also to the look and feel of the documents: by digitizing precedents, a consistency in the language used by the firm is maintained
      • Using these platforms also mitigates against significant risk by providing a clean, digitized precedent for your lawyers to work efficiently with
        • Many lawyers will simply search for a similar document used on another transaction to act as their starting point on their new deal which, for a senior lawyer, may be less risky. However, for junior lawyers who do not have the context of the previous matter, may not realize that significant portions of the document they are now using as their base was heavily negotiated in the previous matter
      • Repetitive, and perhaps form based tasks, such as Company Secretarial work, can be greatly enhanced by the use of these platforms. The efficiencies these tools can bring means that more can be done in much less time 
      • Your firm can also turn these platforms client facing, allowing you to quickly and effectively supply a digital service that your clients need
        • Enhance your "stickiness" with your clients by providing them with a service that is critical in their day-to-day operations. To learn more about how to begin these projects, book a consulting call with us
        • For more information on how to price solutions such, as client facing document automation, see our Legal Tech Insight Series on Pricing

      The Case for Automation

      • Drafting legal documents, whether simple or complex, is at the heart of any commercial legal practice. Law firms have been refining this process to ensure the highest standards of quality and to make it more efficient; document automation software is another evolution in this process
        • Traditionally, firms have created "model"/"precedent" documents to be used as gold standard starting points on matters. These documents would contain footnotes and annotations directing the user on how to use the various clauses and under what circumstances
        • These documents are wonderful educational tools for younger lawyers, and provide certainty that standards of quality and mitigate against risk borne of using similar documents from a previous matter
        • They aren't without their problems however: systemic use of precedent documents by the practice is a tough nut to crack. They also require regular maintenance to ensure that regulatory and market considerations are up to date

      It is common to find volumes of precedent documents in a firm's DMS which are out of date, out of use, and generally forgotten about. The maintenance required, the complexity surrounding some of the annotations and commentary, and the lack of easy access to these documents at the point of need, mean that widespread adoption of them is a real challenge. 

      • The need to be more efficient in producing key matter documents is driven, almost exclusively, by pressure on fees. On large matters with multiple practice groups providing advice, hours will be high and their accompanying narratives closely scrutinized by the client
        • Being more efficient generally leads to less scrutiny and consequently, less difficult conversations with clients around inefficient practices and waste on matters
      • Document automation solutions can provide an answer to some of the adoption issues and efficiency questions, by making these precedent documents easier to use, more accessible, and quicker to produce
      • They also provide a wonderful first avenue to supply on-demand digital services to your clients. By doing so, you dust off the precedents sitting in your DMS and make them profitable

      Document Automation as a Digital Service

      • Many firms are providing their clients with bespoke suites of documents which the client can generate on demand through cloud based document automation platforms
      • Some of the benefits for doing so are obvious:
        • Create a new a revenue stream from your precedent documents or from the client's own templates
        • Significantly enhance your relationship with your client
        • Remove tedious, repetitive drafting from your busy Associates desks, and allow them to work on higher value issues that will develop and enhance their legal skills

      By providing your clients with an on demand service, you greatly enhance your "stickiness" with that client: by providing an accessible service, critical to their day-to-day operations, it is much less likely for that client to switch to another law firm.

      • These projects are not simple to execute however, and significant consideration should be given to issues such as, work displacement, pricing, revenue distribution within the firm, maintenance, the terms and conditions attached to the service, insurance, and the type of documents you want the client to directly generate without your input. This list non-exhaustive, but should give you an idea of how complex creating this service can be
      • While the projects might be complex, they are worthwhile. Transitioning to a digital services model provides your clients with your services at the point of need, and accessible from anywhere

      How Document Automation Solutions Work

      • Today, these solutions are cloud based and accessed through an internet browser. Some do still offer an on-premise version, but these are generally being phased out and are less cost effective
      • Every precedent document has variable (name, date, etc.) and conditional (include this clause/wording when certain circumstances apply) elements, to be completed and addressed by the lawyer when using the precedent on a matter 
      • Document automation solutions allow users to "code" precedent documents for automation, so that these variable and conditional elements are accounted for by way of a question, which will be provided to the end user 
          • The coding generally takes place in Word by way of a plug-in. The classic process is to open the document you wish to automate in Word and select the plug-in from your Word ribbon and begin coding
          • In other platforms, the coding takes place in the Cloud, and so requires you to first upload the document to the platform

      Do not be put off by the use of the term "coding": it really does not refer to anything particularly complex to learn, and you are certainly not required to have a background in IT development. Instead, like any other tool you use day to day in your practice, these solutions have functionality that you are required to learn how to use. While the automation process is referred to as "coding", in reality it is a user using simple functions provided within the tool. 

      • These questions will form a questionnaire which the end user will be required to answer before a precedent is generated: for example "What is Part A's address?"
      • Most solutions will allow you to set thresholds for users to meet before a document is generated and to create workflows, for example for approval, before a document is generated 
        • Complex, lengthy precedents will require a significant amount of time to fully code, as well thorough review by practicing lawyers of both the questionnaire and coding

      • Once the coding is complete your users can access the solution and begin generating their agreements

      • Generally, these solutions will have robust reporting capabilities, providing you with insights on who generated what and when from the system

      • Similarly, as these are generally cloud based solutions you will enjoy best in class security, and flexibility around controlling access to the platform and templates within the platform

      • If you decide that you do not have the time or resources to automate your precedents but want to continue down the automation route, there are some vendors who provide a full service solution which includes coding your documents

        • These vendors provide a first class service and an excellent solution, however the costs can be high and moving to new platform later will be more difficult

      Implementation - How to START

      • We can't list out everything you will need to consider here, but instead provide some general considerations and we invite you contact us for further information: we can help!
      • First you need to consider whether this project will be internal, client-facing, or both

      Better to pick one of these options, as the considerations for an internal document automation implementation are quite different to a client facing solution, especially where you are developing a solution for a particular client or group of clients.

      • Next, determine who will make up the project team, what your internal governance structure for the solution will be, and identify the resources you will need from the practice
      • Build out your requirements list for the solution that you will purchase, and then extensively research the market of products
        • We can generally steer you towards products that can meet your needs
      • Once you have performed your research, received innumerable demonstrations, choose a product, or a couple of products if you have the time and resources, to pilot
        • Ensure that your pilot group is representative of the users of the solution - automator, approving lawyer, end user, etc.  
      • Make a decision and purchase the winning solution
        • This is where a lot of the hard work really begins around communication, adoption, maintenance, and governance

      Again, this section is very high level, however if you require guidance we can provide it through our consulting calls and START initiative.

      Available Solutions Being Used By Members

      • Below is a list of products and who from around the network are using them, as well as links to our knowledge base articles on the solutions (where available):