E-discovery state rules

I attended a seminar last week regarding the latest updates on Massachusetts laws surrounding eDiscovery.  The speaker was an attorney with extensive technical background and expertise in the eDiscovery field.  The seminar was presented by the Massachusetts Defense Lawyers Association, so much of the discussion was geared directly to that audience.
The speaker touched on an interesting theme that has implications on the future role of eDiscovery.  He said there is no such thing as eDiscovery.  Instead, there was simply discovery, a part of which entails electronic evidence.  I thought this was well put, as there is often this idea that eDiscovery is expensive and its place in the legal space is still undetermined.  In fact, eDiscovery is a necessary litigation tool, as much of the data needed in litigation stems from electronic sources, or solely resides electronically.
Another theme of the seminar was how to manage eDiscovery with opposing counsel.  The emphasis was on getting a game plan ahead of time, with both parties working for the mutual interest of making the eDiscovery process as least cumbersome as possible.  Whether it is choosing a vendor or vendors to work with, or realizing the scope of the data needed, talking through the process with both parties beforehand can make the eDiscovery process managable.
In regards to the overall theme, federal regulations versus Massachusetts eDiscovery rules, it is clear that the commonwealth, like many other non-federal governing bodies, still has a ways to go in terms of defining eDiscovery's role in litigation. 
The seminar was helpful in understanding some areas of eDiscovery, but the overall message I received was that eDiscovery is an evolving space and what is up ahead will be determined by laws and regulations, advances in the industry, and fiscal concerns. 

Themes and Thoughts from Legal Tech

There was enthusiasm and excitement in the air at Legal Tech, not only because the weather was unseasonably nice.  New companies have sprouted to existence, bringing new ideas and upgrades on some old ones.  Long standing vendors have added a new spin to their products, with new features being all the rage.  You couldn't go anywhere without seeing something about predictive coding, or some of the other buzz products.
A few companies were displaying some Project Management software to aid either vendors, corporations, or law firms in managing their eDiscovery data.  There were also some innovative time tracking products, with advanced features and an ability to track and review metrics on the go.
Another buzz word around the conference was transparent invoicing.  This, of course, relies heavily on transparent pricing from the onset.  The client wants to know more about where their eDiscovery spend is going, to assure they are getting value, but also to be able to adequately negotiate future work with vendors.  Many vendors still have to deal with a reputation in the industry of out of control pricing and lack of consistency between vendors to make an adequate comparison.  While this may be out of a desire to confuse the client into paying more, it is more a result of vendors wanting to invoice clients in a manner consistent with the value of the work performed.  Per GB pricing is still used in many areas of the eDiscovery world, and it works for simplicity, but certainly does not always bring the best value for the vendor of the client.
Relying on a more complex pricing model can be beneficial for the client, but only if they can understand what is going on.  For many in the field, the EDRM is something that is naturally understood - a natural progression of data passing through stages.  The client, however, is looking at it from a different perspective - concerned more about the end product than what it took to get there.  Having an understanding of client expectations is the first step to truly transparent invoicing. 
Along with meeting great people in the industry, Legal Tech is a great time to see what people are excited about, whether it be vendors, clients, or others interested in the field. 

The Wild West of E-Discovery Billing

As Electronic Discovery struggles to find its identity in the legal technology world, one of the largest struggles companies have is standardizing processes and metrics.  Likewise, in E-Discovery billing, we see a wide range of ways in which E-Discovery service providers invoice the client.  Some vendors provide custom information on their invoices, while others provide one line item for a bulk of services performed, especially if the client agreement is for flat pricing.
The Legal Electronic Exchange Standard Oversight Committee has made a stab at creating a standardized set of E-Discovery billing codes, but this only touches the surface on the lack of standardization within the revenue capturing process of E-Discovery.  Additionally, LEDES relies on the industry to lead, not the other way around.
The first step to creating a standardization is understanding pricing models and how they apply to unique situations.  When an E-Discovery service provider is looking to stay competitive for a project bid, often they will bend their pricing models to fit comfortably with the client's expectations, even if it may end up to be a higher cost for the client.  Understanding how particular pricing models work effectively for the client can change the approach from bending to what the client is used to, to creating new expectations for the client.  In this Wild, Wild West of E-Discovery billing, the service provider can use their pricing models as an effective tool to stand out amongst competitors.  Therefore, it is important to be able to answer the following questions:

• Why do we use these pricing models?  Is it easier for our systems or does it best accommodate our target audience?
• What are the consequences of creating a new pricing model on the fly?  Are internal reporting systems designed for the change?  If not, will this ultimately cause more problems for the client than adjusting to an existing pricing model?

Sometimes it is unavoidable to change the way you price a project - the client will demand it in order to even begin negotiations.  It is important, however, to get back to the root of why a particular way of pricing works for you and change it only if you are able and willing to accept the consequences of this change.

It may be some time still before E-Discovery revenue professionals have a standard way to go about pricing models.  Until then, don't let the lack of standardization in the industry translate to a lack of good internal standardization.

Better invoicing, happy clients

Electronic Discovery requires custom attention and individual care.  No two cases are alike.  The revenue cycle is no different in this regard.  Each law firm, corporate client and vendor requires unique processes to account for different pricing models and scope of work.
Addressing the unique needs begins with a strong foundation.  Accurate metrics gathering at each stage of the Electronic Discovery Reference Model spectrum is imperative to presenting the client with a defensible invoice.  In addition to having metrics to accommodate present pricing models, considering futiure client needs can save time and resources down the line.
Having a strong foundation also means having a sensible timekeeping policy.  Entering billable time is a tasked often loathed by operational staff, but it is critical to ensuring clients are invoiced in a timely and accurate manner.  Using a timekeeping system that works for your target audience is important as well - most timekeeping systems have similar backend functionality, but having a frontend interface that your team is comfortable working in will make compliance easier.
A strong foundation also relies on flexibility.  E-Discovery is a fast moving field, so having the ability to collect revenue metrics accurately for new products or pricing models with relative ease can make a difference in preventing revenue leakage.
The goal for any E-Discovery revenue professional should be to deliver a transparent and defensible invoice to the client.  Depending on the business model of the individual E-Discovery provider, many hands may touch the revenue figures before they end up on a client invoice.  This requires a crisp audit trail to allow a smooth review process.  No matter what systems are used, the underlying figures need to be reliable.  Effective client invoicing relies on everyone else doing their jobs well - from project managers to operational staff to developers.  Ideally, invoicing requires putting these pieces together and overseeing the flow of numbers, not struggling with finding the right data.