Metadata for decision-making: the link between knowledge and financial data

The term “Metadata” is typically only associated with advanced search engines in document management and eDiscovery systems.?

However, it is also a heavily underused resource for business decision-making.

This article outlines how metadata can be leveraged to empower greater insights and business decision-making.?

Metadata is defined as: “a set of data that describes and gives information about other data.” Metadata is effectively the labels for your information fields.?

Metadata in legal operations typically comprises three broad categories:?

1. Metadata needed to file and find documents (typically in a Document Management System) – document name, document type, document number, version, client, matter?
2. Metadata to manage matters (typically in a Practice Management System) – matter name, client name, client organisation, lawyer, matter status (open, closed, etc)
3. Metadata needed to populate agreements – parties to the agreement, term, jurisdiction, etc – often manually captured and entered via email correspondence??
4. Process and management metadata – information about the matter and agreements used to determine where the matter is in process, responsibilities, matter and agreement statuses, etc??

The biggest roadblocks to leveraging metadata are:?

• The metadata limits in your systems – i.e., not being able to house enough metadata in your system
• Different metadata in different systems – making getting a consolidated view of the world very difficult?
• Designing metadata requirements to include business management and not just getting the task done?

Your firm’s internal data is a rich source of insights regarding business profitability, clients, and team performance. Designing optimal metadata structures, and ensuring this useful data is captured in process, are the keys to unlocking this value.?

Combining metadata with financial data clarifies past performance drivers and the tools to improve future performance

Most law firms use financial data sourced from the Practice Management System to inform decision-making. Reports are built to show how much we billed, to whom, and when.

However, financial data reveals only surface-layer information about business performance. We may know which client relationships are the most profitable, but financial data often doesn’t provide the reasons why.?

Knowledge-driven metadata unlocks the next level of information by adding the context of how much effort went into each matter. This can be used to decide which client engagements to prioritise for maximum profitability, and improve planning for future work.?

By accessing the metadata of your firm’s knowledge files, you can?

• Report on the detail of the work being done, and identify the most resource-intensive tasks. Data captured on the time spent on particular files may reveal surprising sources of inefficiency. These insights can support re-designing a particular process, or investing in process automation.

? Use trend analysis to scale up teams for work we expect to do in the future. Metadata from previous engagements shows us the detail behind resources that were required for various types of matters. For example, how many associate-level hours do I need for a property acquisition matter, and how many managerial hours? This supports planning for teams and training for the future.

? Identify high performers and codify best-practice processes across the firm. Document and matter user data allows you to identify team members who consistently outperform the average pace. This ensures high performers do not go unnoticed, and their insights can be used to develop their peers.?

Keep metadata insights relevant with a dynamic data-capture system

Metadata insights are only as useful as they are relevant.?

Your business strategy and goals determine the data fields you choose to capture, and these goals can change year to year. Your metadata management system should allow you to change or add captured fields quickly and cheaply, without the need to engage third-party software engineers.?

Metadata adds a valuable layer of detail to business performance reporting, allowing for better decision-making

The insights generated can help you to identify bottlenecks, plan resources for the future, and codify best practices across the firm. As business reporting priorities evolve, ensure the solution you choose is equally flexibility.

If you have further questions about the use of metadata in your legal business, don’t hesitate to reach out.