CASH REGISTERS

Sometimes, the work of a chief information officer can be like conducting a musical ensemble — figuring out how to integrate disparate “instruments” to get the very best results. In the fall of 2009, I found myself enduring a particularly discordant management committee meeting where we struggled to address collections.

Ulmer & Berne is a full-service firm, with 180 lawyers and 200 support staff. We operate from three offices in Ohio and a fourth in Chicago. Typically, our lawyers are effective bill collectors — when they make the calls. But it was difficult to get them to bring up the subject with clients, even when we provided accounts receivable information generated from our Aderant Expert time-and-billing system — via lists, reminders, and other notification systems.

Our delayed realization was becoming a significant problem, so our IT team began brainstorming about how we could use our technology to help the firm. That’s not our normal agenda; our IT staff usually focuses on reducing overhead costs or trimming the time it takes for our users to conduct tasks.

We identified two technologies that we believed were underused: our Cisco Systems CallManagerVoIP (voice over internet protocol) telephone system and our client relationship management (CRM) software, ContactEase from Cole Valley Software.

We had been collecting phone call data and using Legal55 software to bill back “found time” (billable hours not previously accounted for). But we had not exploited the full potential of our software, especially considering that our phones were integrated with Microsoft Outlook on our users’ desktops.

Our client relationship management system was running smoothly, but we were primarily using it for marketing — for little more than managing invitation lists and holiday cards. We struggled to justify the cost of the software to firm management.

Our collections problem brought a new focus to our analysis. The question was, “We’ve been delivering collections data to the attorneys all along — why isn’t it working?” Then it hit us: Why not try to deliver the data when they needed it most and in the normal flow of their work — when the client calls.

So in July 2009 we set out to test the theory. The trick would be to integrate our VoIP technology with our client relationship management data — and with our time and billing system. Because ContactEase is integrated with everyone’s Microsoft Outlook, many of the incoming calls have a “hit” with a phone number in ContactEase.

Then we could take the corresponding company name from ContactEase and look it up in Aderant Expert and get the financial data.

Our programmer, Brad Logozar, created an application that brought all this information together in one view. When a call comes in to a lawyer, information from the client relationship management system and from time and billing pops up on his or her computer screen — before the phone rings a second time.

Our new system is set so that data can been seen only by specific, permissioned individuals (e.g., the responsible attorney) — and only under certain circumstances (for example, if the client has a balance that is more than 60 days past due).

In September 2009, we ran a pilot test with our intellectual property lawyers. They wanted the ability to pull up more accounts receivable (AR) data in case the clients had detailed questions, so we added a direct link to our Aderant AR reporting module. As the system evolved, we added links to our homegrown alternate fee arrangement software, and our new client intake form.

We implemented the new system firmwide in late November 2009, without fanfare or training. The results weren’t perfect, but they didn’t need to be. There wasn’t a match for every incoming call. A few lawyers complained about the frequency of the pop-up, but after collections started coming in, that problem took care of itself.

The best part was that no training or support was necessary — it’s a passive system. We even had six lawyers who reduced the amount of time to receive payments by 30 days or more.

Perhaps the most important lesson learned was that the data did not have to be perfect. Some of our CRM contact files had missing company names or phone numbers. But rather than spend time worrying about what it couldn’t find, we let it display what it could.

And we learned to triage. Now, when we clean up our CRM contact listings, we focus on the records of the clients with the biggest collection problems — to be sure that their incoming calls are more likely to get a “hit.”

The project did not require a cash investment, because we leveraged existing systems and data — the only major investment was staff time. We devoted about four months of our developer’s time, with collaboration from Shawn McCullough, administrator of our phone and CRM system, and Jeff Olson, who oversees the accounting system.

In the first year the system was in operation, we reduced our AR days outstanding from 92 days in 2008 to 86 days in 2009. Our second year of operation proved even more fruitful: in 2010 we collected $2 million more than we had expected by Dec. 31, and we reduced our AR days outstanding to a mere 76.

Our lawyers are now enthusiastic participants. Partner Wayne Serra, of our Cleveland office, said the application exceeded his expectations: “When I first saw this tool, it was apparent that it could be useful — but the real power becomes more apparent when it’s used,” he said. “Having a concise summary of current billing and collections information presented immediately when clients call helps to both control the growth of receivables and more importantly improve relations with clients by helping to avoid billing surprises.”

Since the launch, we’ve created another custom tool that “shows without asking” — a thermometer-like view that displays the attorney’s progress toward both his or her individual billing goal and the firm’s overall progress toward financial targets.

By integrating our telephone, accounting, CRM, and e-mail systems, we put four strong components in harmony — making a melodious whole that is greater than the sum of its parts.

For more information or to schedule a demo, contact sales@colevalley.com.

Reprinted with permission from the April 2011 edition of Law Technology
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