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THE IMPORTANCE OF CENTRAL DATABASES TO THE LAW FIRM

Much is written about information overflow in the modern law firm and corporate legal department. Increasingly, the firm or department has an abundance of significant information available somewhere, but finds that it is difficult as a practical matter to access and use the information to manage the firm or department or to gain an advantage in some area of substantive practice.

Consider the typical situation where information about clients and matters is maintained in a variety of paper and digital forms, ranging from desk calendars, traditional paper files, word processing files, information in computer databases such as accounting, calendaring, billing systems, document generators, real estate forms managers, litigation support programs and other typical forms. The attorney or paralegal searches through these many separate locations to get to critical information, with the result that use of data is inconsistent and time consuming. This not only wastes time in the performance of required tasks, but acts as a deterrent to using the firm's information in a more efficient and strategic manner.

I. The Solution - Consolidating Information into a Centralized Networked Database

The value of consolidated information is most clearly illustrated by use of a consolidated database of information concerning clients, their matters, and other firm / department information. Why is this the case?

  1. All law firms and legal departments have clients.
  2. Service to those clients is ultimately central to the success of the firm / department.
  3. Firms and legal departments deal with a great deal of information about clients on a daily basis.
  4. Quickly available information which can be used for a wide variety of purposes creates a qualitative competitive edge.
  5. Consolidation permits rethinking and rationalizing of case management and workflow (often referred to simplistically as paperwork or paperflow reduction). Intelligent, data-based revision of workflow can lead to more efficient and effective procedures, often dramatically so.
  6. Consolidated databases permit the system-based imposition of practice rules controlled by the practitioner. These rules may help to manage and control deadlines, case function assignments, filings, document production, and numerous other information-related case functions.

Access to, and use of, information about the client and the firm or department's internal information is made easier and clearer. The single most significant factor in gaining that clarity is that centralization permits relatively uniform methods of entry and view of information. This makes the system friendlier and easier to learn, lowering error rates and user frustration. The effect on the organizational maintenance of the system is dramatic as well, allowing the system to be operated by non-programmers. Note that this does not mean that such users need not be educated; training is still a key to successful system implementation of any kind.

The easy, practical use which is enabled through these techniques makes the system exponentially more useful to the firm or legal department as a whole. Further, experience indicates that there is a certain critical mass beyond which the system gains strategic significance, and can be used to gain substantive advantage, both in terms of enhancement of the practice and superior positioning for client marketing.

II. The Vital Role of Centralized Databases in Modern Law Offices

LAN technology has become affordable as it has matured, enabling law firms and legal departments of all sizes to obtain its benefits. Combined with the fact that PC's have grown so powerful so quickly, consolidated, powerful data handling has become a practical reality in the relatively recent time period.

One of the most compelling reasons for a LAN is to obtain the power and capability of a consolidated firm / department database. Because centralized databases must be closely aligned with the practice structure and rules, design and implementation are critical. The resulting consolidation, properly established, can lead to lower data maintenance costs, less redundant and more efficient use of client and internal information, the enabling of more efficient workflow patterns, and the intelligent use of information for strategic advantage in the law practice.

By the late 1980's, and certainly by the turn of the decade, a law practice could not operate effectively without computerized word processing. Competition, client expectations and internal pressures to use time and resources more efficiently make the move to network-based, centralized databases at least as compelling in the mid-1990's.

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