Legal Operations

Legal Ops Pros: Keep A Finger On The Pulse Of The Industry

M&As in the legal software and services market are forcing the need for legal operations professionals to do their homework. Know who you are getting in bed with before you make a purchasing decision.

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In the past few years, we’ve seen a great deal of merger and acquisition activity among legal service providers. And we’ve seen it not just on the services side, but also in software. This can be great for business if you’re inclined to use vendors to supplement or manage your eDiscovery or litigation support services. Sometimes mergers result in the availability of additional services. But it can also wreak havoc on organizations that use a single vendor and who could wind up working with a vendor they have not previously worked with, or worse, one they specifically decided not to work with.

The bottom line is that most people who work on the vendor side, from the executive running to the company, to the salesperson who originates work, to the project manager who actually executes — are well-intentioned, hard-working people looking to deliver valuable services in exchange for a fair fee.

People make mistakes. Heck, companies make mistakes. If there is one thing I’ve learned about eDiscovery and litigation support, it is that mistakes are going to be made. You’re dealing with data and systems and people that are not perfect. Anyone who expects the delivery of legal support services or eDiscovery to be perfect is clearly working in the wrong business.

One way to stay on top of the latest developments in the legal software and support services industry is to attend trade shows and conferences. Given that the Summer is here, and the conference “season” is fast approaching, I thought it would make sense to highlight a few things to look for when faced with challenges in continuity among legal service providers.

First of all, consider whether the law firms your organization is working with are either able to handle your software and support needs, or whether they are able to leverage their relationships with third-party providers to ensure you receive the most value. Law firms offering software and services can provide a hedge against merger activity.

If your organization is among those that have already contracted with software or service providers, continue to assess whether you are getting the value and quality of service you need on a matter by matter basis.

Keep your finger on the pulse of the industry. We’ve seen a lot of price compression, particularly around processes involving eDiscovery. Make sure you are getting current pricing on project proposals.

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And understand the legal services market in general. Look beyond project proposals and costs and make sure you are getting quality services, that the management and ownership team at the software or service provider are attentive to your particular needs.

Demand things like solid project reporting, workflow metrics, and post-project reviews. It’s one thing to complete a project successfully; it’s another to have the comfort and knowledge that it was completed in the most efficient and cost-effective manner.

And lastly, have contingency plans. Given the merger and acquisition activity in the industry, make sure you have a plan should the vendor or software company you are using be acquired. Don’t put all your eggs in one basket, or at least have a backup plan if your favorite vendor suddenly no longer exists.

Many software and services providers are owned by investors, and investors are interested in securing a return on their investment. These interests may not be aligned with the objectives of your operations team. A firm understanding of the legal services market, greater emphasis on process and workflow metrics, and the development of contingency plans should help your organization weather any merger and acquisition storms.

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Mike Quartararo

Mike Quartararo is the managing director of eDPM Advisory Services, a consulting firm providing e-discovery, project management and legal technology advisory and training services to the legal industry. He is also the author of the 2016 book Project Management in Electronic Discovery. Mike has many years of experience delivering e-discovery, project management, and legal technology solutions to law firms and Fortune 500 corporations across the globe and is widely considered an expert on project management, e-discovery and legal matter management. You can reach him via email at mquartararo@edpmadvisory.com. Follow him on Twitter @edpmadvisory.

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