Legal Knowledge Management (A Knowledge Manager’s Perspective)
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In a nutshell Legal Knowledge Management (LKM) refers to - the collection, organization, dissemination, and reuse of knowledge contained natively within documents and individuals’ minds. The term specifically includes the development of standard forms, tools, and templates to streamline the delivery of service. This definition is quoted from the LKM White Paper One entitled: “Legal Knowledge Management A Holistic Model” dated April 2003.
Introduction
In a nutshell Legal Knowledge Management (LKM) refers to - the collection, organization, dissemination, and reuse of knowledge contained natively within documents and individuals’ minds. The term specifically includes the development of standard forms, tools, and templates to streamline the delivery of service. This definition is quoted from the LKM White Paper One entitled: “Legal Knowledge Management A Holistic Model” dated April 2003.
In my experience talking to fellow Knowledge Managers and lawyers in Malaysia, the majority of law firms are generally unaware or have shown little interest in adopting LKM initiatives as part of their management milestone or overall management strategy. Perhaps this is because many within the Malaysian legal fraternity are oblivious or not yet completely convinced of the value in LKM initiatives. Possibly many are against adopting LKM initiatives due to the preconception that it is time consuming and “not billable”. To be fair, since salaries and bonuses in law firms and most other organisations are often based on achieving billing and collection targets, it would be difficult to convince employers to invest “valuable time’ in what they perceive as non-billable work.
Ironically however, law firms are highly dependent on two factors for survival i.e.:
(a) the amalgamated legal knowledge of the firm; and
(b) the ability of the firm to manage that knowledge and convert it into dollar and cents.
The time saved by the firm once the necessary LKM initiatives are up and running will allow employees to be more efficient and lawyers to have a shorter turn around time in producing their work thereby increasing their billable work. Preservation of knowledge is important since it ensures that crucial work products do not go to waste or vanish with employees that leave the firm but are stored for the benefit of continuing members of the firm and also serves as a resource to help new recruits to bring themselves up to speed more quickly with the firm’s work.
In recent years, some Malaysian firms have set up their own Knowledge Management Departments with the hope of following their foreign counterparts that have adopted LKM initiatives. Although this trend is encouragable, the mode and manner in which it is adopted locally may be questionable?
The LKM White Paper of 2003 indicates that most firms (the study did not cover firms in Malaysia since LKM is still at its infancy in Malaysia) launch a full-blown LKM initiative without a thorough understanding of Knowledge Management theories and how LKM will or should benefit the firm. These firms confine their Knowledge Management Department’s scope to conducting legal research and believe that by installing certain software program and creating a designated server to store precedents will solve all the firm’s ills. Frequently, when this approach is taken, employees are left isolated from the Knowledge Department and not provided adequate training and understanding to learn to use Knowledge Management tools effectively and understand the concept of LKM. Such practices are doomed for imminent failure. LKM is a synergistic concept that must be adapted in all the various departments in the firm, which includes finance, human resources, administration and not just the legal units of the firm.
LKM is not a marketing gimmick! It is a cultural change in the practice and management of legal services that must be embedded in and practiced by every employee of the firm. It has to start with the basics and in the absence of software-assisted programs.
Encapsulating the Firms Knowledge
Knowledge sharing is the root element to an effective LKM initiative. In Messrs Jayadeep Hari & Jamil (JHJ) information pertaining to management strategy of the firm is shared with all its employees. This includes billing and collection targets as well as detailed information on the actual revenue of the firm. The employees play a crucial role in the management of the firms’ clients and this is not reserved or limited to a Partner or a lawyer. We have taken such steps in JHJ to inculcate a common sense of ownership to the firm and to prevent the isolation of employees from the LKM initiatives. These steps help foster a sharing environment where lawyers are more willing to work together in teams and combine their knowledge for the benefit of the firm’s practice and its clients.
We do not profess to be experts in the implementation of LKM, nevertheless JHJ has taken some key initiatives to create and develop a knowledge sharing culture within the firm and these include:
(a) Ensuring relevant and pertinent information regarding clients are copied to all the employees of the firm to ensure that everyone is kept in the loop and is able to attend to the client in the absence of the person in charge [this is of course practiced with strict and due regard to clients confidentiality];
(b) Creating a central work product depository (i.e. a main server) which is a central location in which legal work product is accumulated, organized, and maintained;
(c) Every employee is involved and aware of the actual billings and collection of the firms [No one is left out and this creates a sense of ownership to the firm];
(d) Support staff’s are encouraged to mingle with the client’s support staff to create a better rapport between the firm and its client at all levels [This enables the employee’s of the firm to understand and appreciate the characteristic of every client and fulfill their needs];
(e) Providing training for all its employees on the value of LKM and the benefits it can reap if properly applied; [This creates an awareness and encourages employees to embrace the cultural change LKM promotes];
(f) Employees are required to be well informed about the firm’s clients. Whether they are corporations, small businesses or individuals, — understanding the client’s interests, positions and expectations is important. Maintaining an accurate client knowledge base portrays the importance the firm gives to the client and enhances a cordial relationship; and
(g) Circulating bi-monthly legal updates and bi-annual newsletters to clients for free with a goal of sharing our firm’s knowledge on the latest development of the law and at the same time educating clients.
Knowledge sharing is an idea that must be embraced through the appreciation and understanding of the benefits it can garner as opposed to a unilateral decision by the management to force it onto its employees. As such, LKM initiatives should never start of as a full-blown exercise but a carefully planned initiative that blends with the goals and motives of the firm.
The LKM needs of every firm is unique in its own way. However there are certain standard elements that should feature in a LKM initiative. The legal profession is synonymous to the business of selling knowledge.
To facilitate a smooth storage of the firms knowledge, the firm is required to come up with a LKM plan which incorporates best practices that include standard operating procedures of the various departments (this comprises of steps that begin with the opening of a new file to documents to be prepared and end with the closure of the file) and an employee handbook which regulates the conduct of employees from a human resource and administration standpoint of the firm. These processes are forms of tools that must be in place to ensure that the data and resources the firm produces is not put to waste but captured and catalogued and stored for future use.
Having a framework on a series of steps it takes to complete a project or accomplish a goal is necessary to ensure good organization and work quality. For instance in JHJ, we developed a Conveyancing Checklist for the various scenarios concerning the sale and purchase of a property and loan documentation which includes those properties with or without title, title with restriction or a charge attached etc. Under this checklist all the steps from the receipt of instructions to the final step of perfecting the transfer of a property is covered. A general timeline is also provided in an excel spreadsheet as a form of check to ensure that there is no delay and all the KIV’s concerning a matter is in place.
Technology and LKM
The use of technology in a LKM initiative is purely to enhance and computerize the existing processes, which can be otherwise done manually. It should not be seen as a replacement to the human element in LKM. Only a firm with an embedded knowledge sharing culture can find the embrace technology on a broad spectrum of their business and legal needs work to their benefit. Technological advances here would include storage of precedents, time and billing software, file management systems, contact information, document collections, the firm’s calendar system etc.
After the LKM plan is formulated and the firm has decided what data needs to be captured, the firm must decide what hardware and software are needed to implement the plan. The array of available legal technology packages is overwhelming. Some firms use a different application to handle each aspect of their KM needs. Others rely on one centralized product such as a case management or matter management package, and utilize add-on features as additional needs are realized. Employees are in a unique position to recommend or choose software applications since it is they that would be involved in the day-to-day operations of the firm.
Process management is accomplished with applications that keep track of tasks, dates and resource allocations. Office suites and case management programs usually come with a calendaring program or task manager adequate for small firms or individual use. There also are applications specifically used to manage projects from start to finish, including cost accounting, generating charts and reports on various aspects of the project, and the creation of a generic timeline so future projects can be planned based on the time required by previous projects. Process management, whether done with a hand-drawn flow chart or a sophisticated project management software program, requires a complete understanding of the logistics of the process, the resources needed to complete the project according to established deadlines, and the ability to plan for contingencies that might arise during the course of the project.
LKM initiatives are for firms with a progressive attitude and proactive management style. These firms are successful because they recognize that to stay competitive, they must adopt new systems and procedures that enhance the quantity of work produced without sacrificing the quality.
LKM: From Experience
Experience has thought us in JHJ that there are some factors that are apparent when it comes to making LKM workable in our firm. These include:
· Visible involvement of the Management – employees should be able to appreciate the seriousness the management has attached to LKM. It must be unequivocally made known that LKM is an integral part of the firm and that the failure to observe or adhere to LKM initiatives will only be futile;
· Aligning LKM initiatives with the standard operations of the firm encourage uniformity in policies with all departments.
· Including one KM-specific objective in annual, formal "Goals & Objectives" for each employee. (This includes "LKM" assessment in performance reviews and in compensation decisions)
· Incorporating LKM into the annual performance appraisal review and setting of goals/objectives.
· Providing professional Training & Development. - so that we can synergistically embed LKM values into new-hire orientation programs, and/or producing regular seminars for existing employees to develop and contribute to LKM initiatives;
· Not to be overly dependent on technology and to keep things as simple as possible
· Putting an individual who has real passion for LKM to be in charge of LKM initiatives, preferably a senior associate and one who has people skills, management experience, and credibility in the firm.
· Giving every department in the firm (be it legal or non-legal) a role in designing the LKM strategy suited for their department.
· Regularly auditing the success of LKM initiatives and reporting successes and failures. The process of improvement is always on going.
Conversely, we should stay clear from:
· Selfish attitude – internal knowledge sharing must not be avoided. No single person can claim ownership over a work product. It belongs to the firm and as such it as of right available to every employee.
· Assuming KM is about technology and let the IT department manage LKM initiatives;
· Expecting that people will "make time" for LKM. Either give them extra time, or specifically re-balance current responsibilities; and
· Being contented with the initial LKM Plan that has been put into place – initial initiatives will always give rise to teething problems and it is only with trial and error can LKM initiatives be improved if not perfected
Conclusion
In the three (3) years since we started our LKM initiative, we have found through feedback within and outside the firm that LKM correlates with the basic fundamentals of running JHJ. LKM is an exercise that can suit and benefit any law firm not just JHJ and it is not dependent on the size of the firm and the depth of its pockets. JHJ is a good example of a medium sized firm that embraced LKM to its benefit and to their clients benefit. Legal firms in Malaysia whether large or small should be encouraged to incorporate LKM as a culture within and as part of their day-to-day operations. Technology is only there to assist but not achieve a firm’s goals. All that is required as a start is the development of a knowledge sharing culture and manually creating processes and policies that encourages such a culture within the firm.
ABOUT THE AUTHOR: Aravindhran Balan
The author is the Knowledge Manager for Messrs Jayadeep Hari & Jamil. He has over 8 years experience in the field of legal research both in the public and private sector. He also worked as an Administrative & Diplomatic Officer for the Malaysian Government for three years drafting policies on aviation for the Ministry of Transport Malaysia with over 30 policy papers to his credit.
Copyright Jayadeep Hari & Jamil
More information about Jayadeep Hari & Jamil
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
In a nutshell Legal Knowledge Management (LKM) refers to - the collection, organization, dissemination, and reuse of knowledge contained natively within documents and individuals’ minds. The term specifically includes the development of standard forms, tools, and templates to streamline the delivery of service. This definition is quoted from the LKM White Paper One entitled: “Legal Knowledge Management A Holistic Model” dated April 2003.
In my experience talking to fellow Knowledge Managers and lawyers in Malaysia, the majority of law firms are generally unaware or have shown little interest in adopting LKM initiatives as part of their management milestone or overall management strategy. Perhaps this is because many within the Malaysian legal fraternity are oblivious or not yet completely convinced of the value in LKM initiatives. Possibly many are against adopting LKM initiatives due to the preconception that it is time consuming and “not billable”. To be fair, since salaries and bonuses in law firms and most other organisations are often based on achieving billing and collection targets, it would be difficult to convince employers to invest “valuable time’ in what they perceive as non-billable work.
Ironically however, law firms are highly dependent on two factors for survival i.e.:
(a) the amalgamated legal knowledge of the firm; and
(b) the ability of the firm to manage that knowledge and convert it into dollar and cents.
The time saved by the firm once the necessary LKM initiatives are up and running will allow employees to be more efficient and lawyers to have a shorter turn around time in producing their work thereby increasing their billable work. Preservation of knowledge is important since it ensures that crucial work products do not go to waste or vanish with employees that leave the firm but are stored for the benefit of continuing members of the firm and also serves as a resource to help new recruits to bring themselves up to speed more quickly with the firm’s work.
In recent years, some Malaysian firms have set up their own Knowledge Management Departments with the hope of following their foreign counterparts that have adopted LKM initiatives. Although this trend is encouragable, the mode and manner in which it is adopted locally may be questionable?
The LKM White Paper of 2003 indicates that most firms (the study did not cover firms in Malaysia since LKM is still at its infancy in Malaysia) launch a full-blown LKM initiative without a thorough understanding of Knowledge Management theories and how LKM will or should benefit the firm. These firms confine their Knowledge Management Department’s scope to conducting legal research and believe that by installing certain software program and creating a designated server to store precedents will solve all the firm’s ills. Frequently, when this approach is taken, employees are left isolated from the Knowledge Department and not provided adequate training and understanding to learn to use Knowledge Management tools effectively and understand the concept of LKM. Such practices are doomed for imminent failure. LKM is a synergistic concept that must be adapted in all the various departments in the firm, which includes finance, human resources, administration and not just the legal units of the firm.
LKM is not a marketing gimmick! It is a cultural change in the practice and management of legal services that must be embedded in and practiced by every employee of the firm. It has to start with the basics and in the absence of software-assisted programs.
Encapsulating the Firms Knowledge
Knowledge sharing is the root element to an effective LKM initiative. In Messrs Jayadeep Hari & Jamil (JHJ) information pertaining to management strategy of the firm is shared with all its employees. This includes billing and collection targets as well as detailed information on the actual revenue of the firm. The employees play a crucial role in the management of the firms’ clients and this is not reserved or limited to a Partner or a lawyer. We have taken such steps in JHJ to inculcate a common sense of ownership to the firm and to prevent the isolation of employees from the LKM initiatives. These steps help foster a sharing environment where lawyers are more willing to work together in teams and combine their knowledge for the benefit of the firm’s practice and its clients.
We do not profess to be experts in the implementation of LKM, nevertheless JHJ has taken some key initiatives to create and develop a knowledge sharing culture within the firm and these include:
(a) Ensuring relevant and pertinent information regarding clients are copied to all the employees of the firm to ensure that everyone is kept in the loop and is able to attend to the client in the absence of the person in charge [this is of course practiced with strict and due regard to clients confidentiality];
(b) Creating a central work product depository (i.e. a main server) which is a central location in which legal work product is accumulated, organized, and maintained;
(c) Every employee is involved and aware of the actual billings and collection of the firms [No one is left out and this creates a sense of ownership to the firm];
(d) Support staff’s are encouraged to mingle with the client’s support staff to create a better rapport between the firm and its client at all levels [This enables the employee’s of the firm to understand and appreciate the characteristic of every client and fulfill their needs];
(e) Providing training for all its employees on the value of LKM and the benefits it can reap if properly applied; [This creates an awareness and encourages employees to embrace the cultural change LKM promotes];
(f) Employees are required to be well informed about the firm’s clients. Whether they are corporations, small businesses or individuals, — understanding the client’s interests, positions and expectations is important. Maintaining an accurate client knowledge base portrays the importance the firm gives to the client and enhances a cordial relationship; and
(g) Circulating bi-monthly legal updates and bi-annual newsletters to clients for free with a goal of sharing our firm’s knowledge on the latest development of the law and at the same time educating clients.
Knowledge sharing is an idea that must be embraced through the appreciation and understanding of the benefits it can garner as opposed to a unilateral decision by the management to force it onto its employees. As such, LKM initiatives should never start of as a full-blown exercise but a carefully planned initiative that blends with the goals and motives of the firm.
The LKM needs of every firm is unique in its own way. However there are certain standard elements that should feature in a LKM initiative. The legal profession is synonymous to the business of selling knowledge.
To facilitate a smooth storage of the firms knowledge, the firm is required to come up with a LKM plan which incorporates best practices that include standard operating procedures of the various departments (this comprises of steps that begin with the opening of a new file to documents to be prepared and end with the closure of the file) and an employee handbook which regulates the conduct of employees from a human resource and administration standpoint of the firm. These processes are forms of tools that must be in place to ensure that the data and resources the firm produces is not put to waste but captured and catalogued and stored for future use.
Having a framework on a series of steps it takes to complete a project or accomplish a goal is necessary to ensure good organization and work quality. For instance in JHJ, we developed a Conveyancing Checklist for the various scenarios concerning the sale and purchase of a property and loan documentation which includes those properties with or without title, title with restriction or a charge attached etc. Under this checklist all the steps from the receipt of instructions to the final step of perfecting the transfer of a property is covered. A general timeline is also provided in an excel spreadsheet as a form of check to ensure that there is no delay and all the KIV’s concerning a matter is in place.
Technology and LKM
The use of technology in a LKM initiative is purely to enhance and computerize the existing processes, which can be otherwise done manually. It should not be seen as a replacement to the human element in LKM. Only a firm with an embedded knowledge sharing culture can find the embrace technology on a broad spectrum of their business and legal needs work to their benefit. Technological advances here would include storage of precedents, time and billing software, file management systems, contact information, document collections, the firm’s calendar system etc.
After the LKM plan is formulated and the firm has decided what data needs to be captured, the firm must decide what hardware and software are needed to implement the plan. The array of available legal technology packages is overwhelming. Some firms use a different application to handle each aspect of their KM needs. Others rely on one centralized product such as a case management or matter management package, and utilize add-on features as additional needs are realized. Employees are in a unique position to recommend or choose software applications since it is they that would be involved in the day-to-day operations of the firm.
Process management is accomplished with applications that keep track of tasks, dates and resource allocations. Office suites and case management programs usually come with a calendaring program or task manager adequate for small firms or individual use. There also are applications specifically used to manage projects from start to finish, including cost accounting, generating charts and reports on various aspects of the project, and the creation of a generic timeline so future projects can be planned based on the time required by previous projects. Process management, whether done with a hand-drawn flow chart or a sophisticated project management software program, requires a complete understanding of the logistics of the process, the resources needed to complete the project according to established deadlines, and the ability to plan for contingencies that might arise during the course of the project.
LKM initiatives are for firms with a progressive attitude and proactive management style. These firms are successful because they recognize that to stay competitive, they must adopt new systems and procedures that enhance the quantity of work produced without sacrificing the quality.
LKM: From Experience
Experience has thought us in JHJ that there are some factors that are apparent when it comes to making LKM workable in our firm. These include:
· Visible involvement of the Management – employees should be able to appreciate the seriousness the management has attached to LKM. It must be unequivocally made known that LKM is an integral part of the firm and that the failure to observe or adhere to LKM initiatives will only be futile;
· Aligning LKM initiatives with the standard operations of the firm encourage uniformity in policies with all departments.
· Including one KM-specific objective in annual, formal "Goals & Objectives" for each employee. (This includes "LKM" assessment in performance reviews and in compensation decisions)
· Incorporating LKM into the annual performance appraisal review and setting of goals/objectives.
· Providing professional Training & Development. - so that we can synergistically embed LKM values into new-hire orientation programs, and/or producing regular seminars for existing employees to develop and contribute to LKM initiatives;
· Not to be overly dependent on technology and to keep things as simple as possible
· Putting an individual who has real passion for LKM to be in charge of LKM initiatives, preferably a senior associate and one who has people skills, management experience, and credibility in the firm.
· Giving every department in the firm (be it legal or non-legal) a role in designing the LKM strategy suited for their department.
· Regularly auditing the success of LKM initiatives and reporting successes and failures. The process of improvement is always on going.
Conversely, we should stay clear from:
· Selfish attitude – internal knowledge sharing must not be avoided. No single person can claim ownership over a work product. It belongs to the firm and as such it as of right available to every employee.
· Assuming KM is about technology and let the IT department manage LKM initiatives;
· Expecting that people will "make time" for LKM. Either give them extra time, or specifically re-balance current responsibilities; and
· Being contented with the initial LKM Plan that has been put into place – initial initiatives will always give rise to teething problems and it is only with trial and error can LKM initiatives be improved if not perfected
Conclusion
In the three (3) years since we started our LKM initiative, we have found through feedback within and outside the firm that LKM correlates with the basic fundamentals of running JHJ. LKM is an exercise that can suit and benefit any law firm not just JHJ and it is not dependent on the size of the firm and the depth of its pockets. JHJ is a good example of a medium sized firm that embraced LKM to its benefit and to their clients benefit. Legal firms in Malaysia whether large or small should be encouraged to incorporate LKM as a culture within and as part of their day-to-day operations. Technology is only there to assist but not achieve a firm’s goals. All that is required as a start is the development of a knowledge sharing culture and manually creating processes and policies that encourages such a culture within the firm.
ABOUT THE AUTHOR: Aravindhran Balan
The author is the Knowledge Manager for Messrs Jayadeep Hari & Jamil. He has over 8 years experience in the field of legal research both in the public and private sector. He also worked as an Administrative & Diplomatic Officer for the Malaysian Government for three years drafting policies on aviation for the Ministry of Transport Malaysia with over 30 policy papers to his credit.
Copyright Jayadeep Hari & Jamil
More information about Jayadeep Hari & Jamil
View all articles published by Jayadeep Hari & Jamil
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
