Reprinted from the September 2001 issue of "Lexpert, the business magazine for lawyers." Used with Permission

Internal extranets - a law department opportunity
by Dan C. Felean and Mario D'Amico  |  Printer Friendly Version

Of all the advancements in technology over the past few years, the Extranet holds the most promise to transform the lawyer-client relationship. An Extranet is a private Web site designed to be accessed by two or more organizations to communicate and collaborate with customers and suppliers. In a lawyer-client relationship, an Extranet can be the equivalent of having an extension to the lawyer's desk or a virtual private conference room that is always open and accessible to the client.

In an age where speed, responsiveness, communication and collaboration equate to higher perceived value, a properly designed Extranet can have a big impact on client relations. It can reduce or eliminate entire categories of cost; it can organize the exchange of information better than e-mail; it can leverage the lawyer's time, resources and expertise; and it can improve the delivery of legal services. Most importantly, an Extranet can answer every client's three fundamental questions (what has happened, what is happening and what is scheduled to happen) without the frustration of trying to personally reach the frequently unreachable lawyer.

Extranet Paradox
So, if an Extranet is so great, why isn't everyone beating down the doors to have one? For example, how do you reconcile the following?

In three recent, well-publicized North American surveys conducted by Altman Weil Inc., BTI Consulting, and Catalyst Consulting, the majority of general counsel respondents expressed a growing dissatisfaction with the service from outside counsel. The main causes given for general counsel dissatisfaction include: lack of responsiveness, failure to deliver beyond the minimum required, high fees and costs, the lack of results and the absence of client-focused relationship. Sounds like a good case for an Extranet.

Yet, in the recent annual AmLaw Tech Survey of the 100 top-grossing firms in the US, 77 per cent responded that they are running less than 20 Extranets for the entire firm. And 40 per cent are running less than five! When you consider that each of these firms probably has more than 50,000 active files, the level of Extranet participation by this group is almost negligible. While some smaller firms have been more active, it is apparent that the Extranet concept has yet to take hold on a large scale.

So how can the legal profession overcome the initial reticence and early-stage obstacles to create an effective collaboration workspace? Corporate law departments have an excellent opportunity to lead the way. In-house counsel and law department management may be better equipped, better oriented and better motivated to move to the forefront of practical innovation in Extranet collaboration. Let's look at some of the obstacles, and then see how the corporate law department is positioned to overcome them.

An Extranet Road Full Of Potholes
In the conservative legal profession there is a natural reluctance to adopt new, unfamiliar methods of working. Moreover, any new process that changes the delivery of services or affects the lawyer-client relationship is highly circumspect and has got to be bulletproof. Any new process cannot layer new tasks on busy lawyers, and it must fit the work patterns of the people involved. Lawyers who are not comfortable working with their own internal information systems will have great difficulty leaping forward to working on an Extranet.

Confidentiality and security of information is of paramount importance. Since sensitive or privileged information may be posted on the Extranet, there is no margin for error. Any new process involving access through the Internet will naturally give rise to increased anxiety and resistance. Yet, if security is too cumbersome, it can hinder access and discourage usage.

Then there is the question of reliability. If the Extranet is hosted within the law firm, who takes responsibility for ensuring 24/7 access and reliability for a diverse group of users? If the Extranet is hosted externally, through an ASP service, who takes responsibility for failure, exposure or loss of control?

Beyond security and reliability, there is the fundamental issue of usability. Since most law firm Extranets have been developed in the firm for a specific client or circumstance, they tend to reflect the complex thinking of one type of practice (deal-based), one group of lawyers or one particular lawyer championing the Extranet cause. Specialization may serve one user's needs, but inhibit access by most others having more widely divergent competencies and comfort levels with technology. Deal-based Extranets can be counter-intuitive and hopelessly complicated for an ordinary client or untrained lawyer.

Designing a site that is equally useful to lawyer and layman clients, technical and non-technical users, and fast and slow modem connections can be a real challenge. If the law firm tries to build a system without the assistance of development professionals, they usually end up with something chock full of intimidating features, but not very usable or inviting to average users.

As evidenced from usage surveys, the early attempts at creating ubiquitous Extranet workspaces have not been very successful. In addition, the process to post information and monitor Extranet activity is usually not part of the normal workflow and requires extraordinary effort to maintain. So, instead of freeing the lawyer's time and adding service, these Extranets often end up adding a new layer of work and anxiety to all involved.

The Law Department Laboratory
These obstacles are not insurmountable, but it appears that more experimentation is required to find the right blend of information, workflow and effectiveness. In fact, the early setbacks offer a tremendous opportunity for corporate law departments to take a leadership role in shaping the future of Extranet workspaces. Cost-conscious, overworked in-house counsel are uniquely qualified to lead the charge.

In-house counsel straddle a dual role, both as a consumers/managers of outside legal services and as a providers/facilitators of internal legal services. Often the greatest information demands and pressures on the law department come from the internal offices, divisions and departments that are its clients. So while most law offices think of an Extranet as a vehicle for working with outside counsel, it can be equally effective for working with inside clients. This group provides an excellent target audience for an Extranet.

Leveraging The Corporate Environment
By creating an Extranet workspace between the law department counsel and corporate clientele, the law department can achieve all the principal benefits of an Extranet, while avoiding many of the risks and obstacles inherent in external collaboration. An "internal Extranet" workspace built within an existing corporate Intranet allows the law department to leverage its existing information environment and address the major pressures (i.e. cost, speed, volume and quality). In this context, an Extranet can become strategic to helping the law department achieve its goals. It can help reduce overall costs, improve efficiency, increase collaboration and provide better internal client service by extending its reach through technology.

By its nature, an internal corporate Extranet avoids many of the problems and obstacles associated with an external platform. The certainty of the corporate infrastructure, while sometimes a straightjacket for the law department, can now be leveraged to its advantage. By using the corporation's existing Intranet and infrastructure, access and reliability is assured at little cost or complexity. Similarly, user security can be linked to the corporation's existing network security to avoid cumbersome barriers. Additional levels of security, by individual or role, can secure access to more sensitive information or personalize delivery of decision support information.

Typical Extranet issues concerning standardization and compatibility of applications, and formats can be avoided, since all corporate users share the same corporate standards.

With the cooperation of corporate IT, the law department should be able to overcome the biggest obstacle to Extranets by creating an easy method for each member of the department to contribute to the workspace. Content information can be mined from other law department systems for automated updates. An e-mail-to-Extranet gateway can permit each member of the department to easily post information as simply as sending a message, task, or calendar event to a folder.

A Relationship Workspace
Since the typical Extranet obstacles are circumvented, the law department can concentrate on the really important task of creating a "relationship workspace" that suits the broader needs of a lawyer-internal client relationship. Each organization must refine the scope of its Extranet activity, but most departments will have the following goals:

• Reduce costs and do more with less, such as through one-to-many delivery of information and advice.
• Leverage knowledge within the department and among regular clients, such as through expertise databases or forms libraries.
• Extend reach and access of the department by flattening hierarchy.
• Avoid repetitive service through preventive practices and assisted "self service."
• Leverage workflow so law department staff can take an active role in serving the client.
• Cultivate relationships and communities of interest to help understand business so the lawyer can also act as an advisor and business strategist.