IT @ Lovells

Harnessing IT to Manage Growth

It is one thing to recognize the importance and potential benefits of implementing a CRM strategy. It is quite another to choose and implement the right technology for your firm. Ed Dean, Head of IT at Lovells describes his experience of their new CRM package including the firm’s initial requirements, the system installation and the consequent results for the firm’s productivity.

At Lovells, our relationships with clients, intermediaries, referrers and others count amongst our most valuable assets. When we were smaller, managing relationships was a relatively simple endeavour. However, today we are one of the largest law firms in the world, with more than 1,350 lawyers in 26 locations.

Lovells was among the first firms to understand the importance of centrally managing contact data. In the early 1990s we developed our own centralised marketing database. The problem, however, was that this system was developed for use mainly by the central Business Development Department. It couldn’t easily be used by the partners and other lawyers firm-wide and, as a result, lawyers were setting up their own private little databases. Finding out basic information – such as who in the firm knew whom – was very difficult. It was rarely accurate in the sense of comprehensive and up to date and, because the lawyers could not easily update the system, information was becoming progressively less reliable.

Restoring Order

We needed new software that would allow our lawyers and staff to access and update contact information directly. However, we didn’t realise at the time that what we were looking for was becoming recognized as a client relationship management (CRM) package.

We assembled our IT requirements and commenced searching. Our criteria were straightforward. First, the system had to fit into our networking structure. We are on a Microsoft platform running Elite’s practice management system, Hummingbird’s PC Docs, GroupWise for email (soon to be Outlook), RightFax faxing software and Carpe Diem for time entry. Our preferred database platform is SQL 7. We’ve developed our own Intranet based knowledge management system called Total Access.

Our Business Development Department also had requirements. The system had to manage mailings and keep contact lists intact while avoiding duplication. It would also be used to organise seminars and other programs, as well as provide marketing analysis, event and reporting support.

Additionally, we had numerous wider user requirements. Lawyers would need access to mailing lists and the ability to easily enter contact data themselves. They’d need access from other applications such as Microsoft Word, GroupWise (and Outlook). The new system would also need to have acceptable security and data access controls.

We arrived at a short list: Interface Software’s InterAction; Cole Valley’s MarketEase; and Elite’s practice management system. A group of us, including Michael Belford, our Head of Business Development, undertook a technical evaluation of each product. Because usability and outreach in the firm were our main criteria, InterAction appeared to be the best choice.

We also spent time in the US visiting various users of the three products. It was quite an eye-opener talking to customers and seeing what they thought of the products. InterAction clearly represented the best fit to our requirements.

Implementation

The first step in implementation was migrating the data from our proprietary system to InterAction. This was a fairly straightforward process that involved cleansing the legacy data, eliminating duplicates, and converting the data into a suitable format for import into the system.

Having populated InterAction with data we set up a trial user group, which consisted of three areas – Business Development, Information Technology and our Insurance and Reinsurance practice group.

We discovered some configuration changes were necessary. For instance, we set up folders in InterAction – subsets of contacts that can be created for any purpose – that corresponded with how lawyers organise their data.

We also built certain reports in InterAction that our lawyers were familiar with in order to ease the transition to the new system. These included contact reports, label reports and the like.

We then rolled out to the entire firm installing the product to all practice areas across all jurisdictions, supporting the process with various user manuals we produced in-house, based on Interface Software-provided templates. We also produced a series of training courses for partners and other lawyers using an Education Toolkit provided by the vendor.

Lawyer Acceptance

InterAction was well received. One way we were able to measure its success was by the vast improvement in the quality and quantity of our relationship intelligence. Michael Belford explains: “The number of contacts in our system have gone up from roughly 40,000 a year ago to approximately 100,000 today. That’s all updated information – high quality data we didn’t have before.”

On a more qualitative basis, we’ve received considerable feedback that the system is assisting fee earners to manage relationships more effectively. For instance, John Powell, a partner in our insurance and reinsurance group, frequently meets clients and prospective clients worldwide. He reports: “Recently I was looking at a list of people who will attend a cocktail party we’re hosting. One attendee I did not know. I learned through the system’s ‘Who Knows Who’ feature that he knows one of my partners in New York. I called that partner to get some background information on this person, and am now much better prepared to meet with him at the event and discuss business.”

Facilitating Mergers

The new system has also been helpful as the firm’s expansion has continued. For example when we merged with Boesebeck Droste, we wanted all of our contacts to receive proper notification from us, before hearing the news elsewhere. Business Development set up a mailing list folder within InterAction for this project. We emailed all the fee earners, notifying them that they should add contacts that should receive the announcement into the InterAction mailing list, which they could easily do from their desktop. Over one weekend we distributed announcements to over 53,000 recipients. Without this system, it would have taken weeks.

InterAction also helps us give new lawyers a wider view of our relationships, crossing practice area and geographic boundaries. They can check the extent of joint contacts, which helps develop strong relationships.

Michael Belford reports that a financial partner uses the system to manage complicated transactions. “When he starts a transaction, he sets up a folder containing all contacts related to that transaction. He can then easily communicate with any or all of these contacts simply by sending out an email, fax or mail merge letter. He can also access all the contacts’ related details and activities. It has been very useful with a geographically dispersed team.”

Return on Investment

In these difficult economic times, emphasis is being placed on return on investment. While we haven’t done any formal analysis, we have experienced substantial savings and productivity gains as a result of using the new system.

As discussed, the use of the system for the German merger announcement mailing saved the firm approximately two person weeks of work compared to our previous system. Michael Belford says that he uses the system for the rest of our firm’s publications and mailings. “We have some 20 to 30 regular newsletters, as well as client notes that get mailed out.” If you extrapolate the savings for each of these mailings over time, you have a substantial number.

The system also helps track and manage some 40 in-house events in Europe, the US and Asia. This includes developing the invitation selection criteria, tracking attendance, and follow up activity. Belford explains: “Before using the system we would have had to hire two to three temporary staff for each event. Now all these activities are automated. At approximately forty events per year, we probably save a count of one full time person a year just from the event side.”

The next step? Integrating InterAction into LovellsNet the firm’s Intranet. We see it as another product that will fit under our portal, allowing partners and other lawyers to access this information from their Web browsers.