© Gimbal Canada Inc., 2013
Lean and Legal
Process Improvement
An Introduction to Lean for Lawyers
Ottawa U Faculty of Law,...
© Gimbal Canada Inc., 2013
Agenda
■ The context for process
improvement
■ Introduction to Lean
■ The eight wastes
■ DMAIC
...
© Gimbal Canada Inc., 2013
3
A Little Icebreaker...
© Gimbal Canada Inc., 2013
■ Applying proven business tools and strategies to
■ lower your overhead - whether you’re in-ho...
© Gimbal Canada Inc., 2013
What Do We Mean by
Going Lean? 5
The result?
A productive, competitive,
profitable practice
© Gimbal Canada Inc., 2013
Trends in
Law Today
Globalization
Commoditization
Excess capacity
DIY law
6
© Gimbal Canada Inc., 2013
The Result:
More competition
Lower fees 7
© Gimbal Canada Inc., 2013
What is Lean Six Sigma? 8
© Gimbal Canada Inc., 2013
■ An answer
■ to current trends
■ A tool box
■ of practical metrics and tools to make your prac...
© Gimbal Canada Inc., 2013
■Add value
The Essence of Lean 10
■Eliminate waste
© Gimbal Canada Inc., 2013
■ Three key value criteria
■ does your work move the matter forward?
■ is it what the client wa...
© Gimbal Canada Inc., 2013
■ Anything that doesn’t add value is waste
■ And it’s really annoying!
Eliminate Waste 12
© Gimbal Canada Inc., 2013
13Lean’s Classic Wastes
Eight Wastes
Defects
Inventory
Transport
Non-
utilized
talent
Waiting
O...
© Gimbal Canada Inc., 2013
14D O W N T I M E
■ Defects / mistakes
■ missing a filing date
■ incomplete forms
■ bad drafting...
© Gimbal Canada Inc., 2013
15D O W N T I M E
■ Over-production
■ starting work before clearing conflicts
■ preparing an inv...
© Gimbal Canada Inc., 2013
16D O W N T I M E
■ Waiting / delays
■ people late for meetings
■ documents waiting to be worke...
© Gimbal Canada Inc., 2013
17D O W N T I M E
■ Non-utilized talent
■ under-using talented paralegals
■ partners doing work...
© Gimbal Canada Inc., 2013
18D O W N T I M E
■ Transportation (of things)
■ sending documents via courier rather
than emai...
© Gimbal Canada Inc., 2013
19D O W N T I M E
■ Inventory / work-in-progress
■ unanswered emails & voicemails
■ files sittin...
© Gimbal Canada Inc., 2013
20D O W N T I M E
■ Motion (of people)
■ unnecessary travel for meetings
■ too many keystrokes ...
© Gimbal Canada Inc., 2013
21D O W N T I M E
■ Extra processing
■ too much research
■ triple-checking
■ over-staffing a file...
© Gimbal Canada Inc., 2013
Why Worry About Waste?
■ Because waste
■ makes you less effective and efficient
■ reduces your fi...
© Gimbal Canada Inc., 2013© Gimbal Canada Inc., 2013
Where’s the Waste in Law
School? 23
© Gimbal Canada Inc., 2013
Lean Tools
!
DMAIC (the framework)
Process optimization
Other tools 24
ponsulak / freedigitalph...
© Gimbal Canada Inc., 2013
Define
Measure
Analyze
Improve
Control
25
DMAIC:
A Framework for Improvement
© Gimbal Canada Inc., 2013© Gimbal Canada Inc., 2013
Outputs Tools To Get You There
Define 1. Project charter
2. Project pl...
© Gimbal Canada Inc., 2013
The right resources
in the right place
at the right time
!
What is Process Optimization?
27
© Gimbal Canada Inc., 2013
Process Optimization
28
■Maximize the value you deliver
■ lower overheads and faster completion...
© Gimbal Canada Inc., 2013
■ Optimized processes cost you less
■ faster, better delivery of your services
■ smooth flow of ...
© Gimbal Canada Inc., 2013
To make process improvement work,
you need to see the process in your art
But We Don’t Make Wid...
© Gimbal Canada Inc., 2013
Client calls
Client Intake/
Conflicts Check
Negotiate LOI
Senior
Finalize LOI
GC
Draft letter of...
© Gimbal Canada Inc., 2013
Commercial Lending in a Map 32
© Gimbal Canada Inc., 2013
© Gimbal Canada Inc., 2013
33
You’ve Got a Map, Now What?
Process improvement
Business development
Consistency
Knowledge c...
© Gimbal Canada Inc., 2013
34
Capturing Your Greatest Asset
!
Knowledge capture
Training
Legacy
© Gimbal Canada Inc., 2013
35
Image by adamr / FreeDigitalPhotos.net
Win-Win Pricing
!
Know your margins
Respond to RFPs
O...
© Gimbal Canada Inc., 2013
Standard Work…uh…Pork
A game about the value of standardization 36
stuart miles / freedigitalph...
© Gimbal Canada Inc., 2013
But What
Can I Do?
I need an articling
position, not a Lean
toolkit…
37
© Gimbal Canada Inc., 2013© Gimbal Canada Inc., 2013
Get organized with 5S
38
© Gimbal Canada Inc., 2013
39
Does This Look Familiar?
Image © Karen Dunn Skinner
© Gimbal Canada Inc., 2013
40
Image © Joe DeStefano
© Gimbal Canada Inc., 2013© Gimbal Canada Inc., 2013
When Lean Goes Bad…
41
© Gimbal Canada Inc., 2013
What Else?
42
Think about the process
Look for waste
Create personal checklists
Standardize you...
© Gimbal Canada Inc., 2013
Examples of Lean in Action
■ Borden Ladner Gervais has mapped 30 processes
(from litigation to ...
© Gimbal Canada Inc., 2013
■ See the context for change in the legal profession
■ Understand the benefits of process improv...
© Gimbal Canada Inc., 2013
45
Additional Resources
!
Books on Lean Six Sigma
See our website for recommendations:
www.gimb...
© Gimbal Canada Inc., 2013
46
It is not the
strongest of the
species that
survives, nor the
most intelligent that
survives...
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An Introduction to Lean and Legal Process Improvement, University of Ottawa, January 2014

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Why are lawyers starting to think about Lean? Because process improvement helps attorneys cut costs, increase productivity, and become more competitive. This slideshow presents the context for Lean and how lawyers can use it to increase value to clients, and decrease the waste in their practice.

Published in: Business, Technology

An Introduction to Lean and Legal Process Improvement, University of Ottawa, January 2014

  1. 1. © Gimbal Canada Inc., 2013 Lean and Legal Process Improvement An Introduction to Lean for Lawyers Ottawa U Faculty of Law, 2014
  2. 2. © Gimbal Canada Inc., 2013 Agenda ■ The context for process improvement ■ Introduction to Lean ■ The eight wastes ■ DMAIC ■ Process mapping ■ Standard work ■ What can a law student do? ■ 5S ■ Think about value ■ Look for waste 2
  3. 3. © Gimbal Canada Inc., 2013 3 A Little Icebreaker...
  4. 4. © Gimbal Canada Inc., 2013 ■ Applying proven business tools and strategies to ■ lower your overhead - whether you’re in-house or in private practice ■ improve turnaround times ■ increase client satisfaction (internal or external) ■ price more accurately ■ free up limited resources for other valuable work What Do We Mean by Going Lean? 4
  5. 5. © Gimbal Canada Inc., 2013 What Do We Mean by Going Lean? 5 The result? A productive, competitive, profitable practice
  6. 6. © Gimbal Canada Inc., 2013 Trends in Law Today Globalization Commoditization Excess capacity DIY law 6
  7. 7. © Gimbal Canada Inc., 2013 The Result: More competition Lower fees 7
  8. 8. © Gimbal Canada Inc., 2013 What is Lean Six Sigma? 8
  9. 9. © Gimbal Canada Inc., 2013 ■ An answer ■ to current trends ■ A tool box ■ of practical metrics and tools to make your practice more productive, competitive and profitable ■ A framework ■ for continuous improvement Lean Is A Solution 9 A Way to Deliver More For Less
  10. 10. © Gimbal Canada Inc., 2013 ■Add value The Essence of Lean 10 ■Eliminate waste
  11. 11. © Gimbal Canada Inc., 2013 ■ Three key value criteria ■ does your work move the matter forward? ■ is it what the client wants and is willing to pay for? ■ is your work done right the first time? Add Value 11
  12. 12. © Gimbal Canada Inc., 2013 ■ Anything that doesn’t add value is waste ■ And it’s really annoying! Eliminate Waste 12
  13. 13. © Gimbal Canada Inc., 2013 13Lean’s Classic Wastes Eight Wastes Defects Inventory Transport Non- utilized talent Waiting Over- production Extra processing Motion
  14. 14. © Gimbal Canada Inc., 2013 14D O W N T I M E ■ Defects / mistakes ■ missing a filing date ■ incomplete forms ■ bad drafting ■ data-entry errors Image by marin / FreeDigitalPhotos.net
  15. 15. © Gimbal Canada Inc., 2013 15D O W N T I M E ■ Over-production ■ starting work before clearing conflicts ■ preparing an invoice in advance ■ printing too many hard copies ■ cc’ing too many people
  16. 16. © Gimbal Canada Inc., 2013 16D O W N T I M E ■ Waiting / delays ■ people late for meetings ■ documents waiting to be worked on ■ warm-up times for printers ■ interruptions ■ late responses from clients/counsel Image by ambro / FreeDigitalPhotos.net
  17. 17. © Gimbal Canada Inc., 2013 17D O W N T I M E ■ Non-utilized talent ■ under-using talented paralegals ■ partners doing work that should be done by associates ■ external counsel doing work that is best done by the client Image from RickMercer.com
  18. 18. © Gimbal Canada Inc., 2013 18D O W N T I M E ■ Transportation (of things) ■ sending documents via courier rather than email ■ multiple deliveries to one client ■ cheques rather than direct deposit ■ too many handoffs or approvalsImage by emptyglass / FreeDigitalPhotos.net
  19. 19. © Gimbal Canada Inc., 2013 19D O W N T I M E ■ Inventory / work-in-progress ■ unanswered emails & voicemails ■ files sitting on your desk awaiting work ■ overflowing stationary cupboards ■ conflicts awaiting clearance Image by nuttakit / FreeDigitalPhotos.net
  20. 20. © Gimbal Canada Inc., 2013 20D O W N T I M E ■ Motion (of people) ■ unnecessary travel for meetings ■ too many keystrokes to find documents ■ poor office layout stuart miles / freedigitalphotos.net
  21. 21. © Gimbal Canada Inc., 2013 21D O W N T I M E ■ Extra processing ■ too much research ■ triple-checking ■ over-staffing a file ■ too many turns of a documentImage by teerapun / FreeDigitalPhotos.net
  22. 22. © Gimbal Canada Inc., 2013 Why Worry About Waste? ■ Because waste ■ makes you less effective and efficient ■ reduces your firm’s competitiveness ■ annoys your clients ■ interferes with your workflow 22 Because reducing waste will have an immediate impact on your bottom line!
  23. 23. © Gimbal Canada Inc., 2013© Gimbal Canada Inc., 2013 Where’s the Waste in Law School? 23
  24. 24. © Gimbal Canada Inc., 2013 Lean Tools ! DMAIC (the framework) Process optimization Other tools 24 ponsulak / freedigitalphotos.net
  25. 25. © Gimbal Canada Inc., 2013 Define Measure Analyze Improve Control 25 DMAIC: A Framework for Improvement
  26. 26. © Gimbal Canada Inc., 2013© Gimbal Canada Inc., 2013 Outputs Tools To Get You There Define 1. Project charter 2. Project plan 1. Process Grids 2. Voice of the client tools Measure 1. Data, metrics and list of resources 2. Detailed, annotated current state process map 1. Process mapping 2. Waste walks and spaghetti diagrams (recall DOWNTIME) Analyze 1. List of potential root causes of inefficiency/waste 2. Ideal/future state process map 1. Brainstorming 2. 5 whys 3. Process mapping (again) Improve 1. Prioritized list of improvement opportunities 2. Improved/optimized process 3. Revised process documentation, including the new map 1. Brainstorming (again) 2. PICK chart 3. Improvement events 4. 5S Control 1. A system for monitoring and periodic validation 2. Project close out and final report 3. Implementation plan 1. Project management (ongoing implementation) 2. Training 3. Monitoring 4. Communication and culture
  27. 27. © Gimbal Canada Inc., 2013 The right resources in the right place at the right time ! What is Process Optimization? 27
  28. 28. © Gimbal Canada Inc., 2013 Process Optimization 28 ■Maximize the value you deliver ■ lower overheads and faster completion ■ more efficient workflow and a focus on value- adding work ■ better resource allocation (human, financial and technological)
  29. 29. © Gimbal Canada Inc., 2013 ■ Optimized processes cost you less ■ faster, better delivery of your services ■ smooth flow of work ■ improved allocation of scarce resources ■ You can market your efficiency to your clients Why Do It? 29
  30. 30. © Gimbal Canada Inc., 2013 To make process improvement work, you need to see the process in your art But We Don’t Make Widgets... 30
  31. 31. © Gimbal Canada Inc., 2013 Client calls Client Intake/ Conflicts Check Negotiate LOI Senior Finalize LOI GC Draft letter of intent Junior LOI Title Review and Due Diligence Jr / Paralegal DD Checklist Draft Title & DD Report Jr / Paralegal DD Report Review LOI Senior Draft Purchase Agreement Purchase Agmt Senior Junior Negotiate Purchase Agreement Senior GC Vendor/Counsel Closing and Registration Junior Vendor/Counsel GC What’s a value stream? 31
  32. 32. © Gimbal Canada Inc., 2013 Commercial Lending in a Map 32 © Gimbal Canada Inc., 2013
  33. 33. © Gimbal Canada Inc., 2013 33 You’ve Got a Map, Now What? Process improvement Business development Consistency Knowledge capture Training Legacy Project management Pricing
  34. 34. © Gimbal Canada Inc., 2013 34 Capturing Your Greatest Asset ! Knowledge capture Training Legacy
  35. 35. © Gimbal Canada Inc., 2013 35 Image by adamr / FreeDigitalPhotos.net Win-Win Pricing ! Know your margins Respond to RFPs Offer AFAs with confidence
  36. 36. © Gimbal Canada Inc., 2013 Standard Work…uh…Pork A game about the value of standardization 36 stuart miles / freedigitalphotos.net
  37. 37. © Gimbal Canada Inc., 2013 But What Can I Do? I need an articling position, not a Lean toolkit… 37
  38. 38. © Gimbal Canada Inc., 2013© Gimbal Canada Inc., 2013 Get organized with 5S 38
  39. 39. © Gimbal Canada Inc., 2013 39 Does This Look Familiar? Image © Karen Dunn Skinner
  40. 40. © Gimbal Canada Inc., 2013 40 Image © Joe DeStefano
  41. 41. © Gimbal Canada Inc., 2013© Gimbal Canada Inc., 2013 When Lean Goes Bad… 41
  42. 42. © Gimbal Canada Inc., 2013 What Else? 42 Think about the process Look for waste Create personal checklists Standardize your work freedigitalphotos.net
  43. 43. © Gimbal Canada Inc., 2013 Examples of Lean in Action ■ Borden Ladner Gervais has mapped 30 processes (from litigation to M&A) and now uses its maps for training, KM and marketing ■ A Virginia firm saved 30 hours and $21,000 by reducing set-up time in one afternoon, in the very first process they looked at ■ The Hunoval Law Firm reduced its timeline on foreclosure filings by a whopping 94% and landed a huge new mandate as a result 43
  44. 44. © Gimbal Canada Inc., 2013 ■ See the context for change in the legal profession ■ Understand the benefits of process improvement can bring to lawyers and clients ■ Recognize waste so you can start to eliminate it and deliver better value Takeaways from Today 44
  45. 45. © Gimbal Canada Inc., 2013 45 Additional Resources ! Books on Lean Six Sigma See our website for recommendations: www.gimbalcanada.com/bookstore/ ! Twitter - consider following: @jordan_law21 @gnawledge @valoremlamb @slaw_dot_ca @LeanLawStrategy @RiverviewLaw @KarenSkinner @DavidFSkinner ! ! Useful Apps and Productivity Tools Cardmunch SmartTimer Feedly and Mr. Reeder Evernote ! Blogs - consider following: www.law21.ca www.adamsmithesq.com www.thoughtfullaw.com www.blogs.hbr.org www.gimbalcanada.com/blog/ www.attorneyatwork www.penningtonhennessy.com/blog/
  46. 46. © Gimbal Canada Inc., 2013 46 It is not the strongest of the species that survives, nor the most intelligent that survives. ! It is the one that is most adaptable to change. ! —Charles Darwin
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