Document Assembly

This month I would like to begin a short series on the specifics of how document assembly programs should be used to make your law office more efficient. Document assembly, at the most basic level, is the creation of new, complete documents from the combination of 1) new, and 2) existing information. The latest computer programs are much more powerful than traditional document assembly techniques yet still work from inside the familiar WordPerfect or Word program.

The ability to efficiently and easily reuse existing information is the key to making document assembly (a/k/a document automation) computer programs cost-effective. Reusing existing information is more efficient than retyping the information into the computer. It is this basic concept that makes it so appealing to law firms.

Three Basic Options

There are three ways to place document assembly software into practice in your firm. First, you can use a standalone document assembly software. HotDocs is the most popular of the current crop of such software. This allows you to automate the firms documents but limits the true ability to reach the Mecca of one time data entry. While you can save the answers you provide to the questions for reuse in other documents, the problem stems from the inability to easily review the saved data for informational purposes. This usually necessitates re-keying the data into a second program for that purpose, or even worse, requiring you to handle the paper file every time you need any key information.

Second, you can purchase an integrated software which has both a case management and a document assembly component. Several case managers on the market have this capability. The information keyed into the case manager is reused to create documents without re-keying. This is a major improvement on the standalone document assembly option above. I can now look up a particular file, review or edit the key information in a convenient manner, and also send it down to assemble documents without any retyping. One time entry is a reality.

Last of all, you have non-integrated links between software programs. The most common case managers use this approach by utilizing the separate HotDocs software in lieu of building in a document assembly component. As far as the person creating the document is concerned, there is little difference between the integrated and non-integrated approach. However, the creation of the template is more complex, and more powerful, using a non-integrated approach.

While either of the case manager/document assembly options is superior to the standalone document assembly method, there are still real differences between them as well. The best way to analogize the difference is to look at the home stereo. I remember agonizing over the decision of whether to buy an integrated or component stereo system.

The integrated system had no complex connections to make, no compatibility concerns, it cost less and support all came from the same manufacturer. On the other hand, the component stereo had flexibility. I could mix and match my tape drive, CD changer, receiver, and even speakers to achieve a better system at a lower cost.

Now how can they both cost less? Because we’re talking apples and oranges. Integrated systems will have a lower price tag than non-integrated but neither will they be as powerful. In other words, the integrated system will have lower quality in some respects than the non-integrated system but it will cost less. Conversely, the non-integrated system will always cost less than the theoretically equivalent integrated system.

Another similarity between our topic and stereo systems is the brevity of the time period an integrated system will remain at the top of the game. The larger and more complex something becomes, the more difficult and costly it is to modify and improve. The component manufacturers require more technical knowledge at the user end in order to achieve compatibility. Since this cost is not borne by the manufacturer the product can respond to new technologies faster and with less cost.

For example, how many out there chose the integrated stereo with the state of the art record player (remember those?) only to find out a new needle technology now made the sound much better. Or that cassette tapes were now the fad. Or that this new thing called a CD was infinitely better than the record would ever be? Or that something called a DVD would appear on the scene? I guess you either had to remain with your old technology or continuously trade in your entire system while the component people merely traded in their record player for a CD and then a DVD. Of course, they had to figure out where to connect it to a system without a plug in for a CD or a DVD.

Exactly the same situation occurs with integrated and non-integrated case management. I’m not advocating either approach (although I do personally prefer the component approach) as they both have their drawbacks but it is important you are aware of what you are giving up when you make the choice.

Document Assembly Tools and Capabilities

There are two basic types of document assembly, document automation and form automation. Both use basically the same concept except that form automation is generally performed upon forms supplied by a third party whereas document automation is usually performed upon documents created by you. Each has its place in the modern law firm but certain types of practices will best utilize one or the other.

In document automation, the base document (the document you are using to create the new automated template from) is usually an existing document which is present in a word processor file format such as Word or WordPerfect. The variables are portions of text which are likely to change from client to client or document to document. During template creation the variable fields are inserted directly into the editable text of the document. Now, when assembling the document, the new information is placed directly into the word processor file replacing the variable. Voila! A new document!

In form automation, the base form is not in an editable format like Word or WordPerfect. It exists only as a picture or graphics file such as a fax or bitmap. This means that only the new information can be added or changed, it will not be possible to change any of the original text of the form. The program then places the new information on top of the picture instead of actually in the picture itself. This is called an overlay. Therefore, unlike an automated document, an automated form is actually two items placed on top of each other. Likewise, when an automated form is assembled and printed, the printer is actually simultaneously printing both items on the paper. This is unlike the automated document which only has one layer.

Automated documents typically include contracts, deeds, wills, letters, etc. Automated forms would include AOC cover sheets, SBI driving record forms, Federal Bankruptcy forms, etc. Of course, any form could be recreated in a word processor format but, if you have ever tried it, you know how difficult and time consuming it is. Form automation happily dispenses with that nightmare.

The process of inserting new information into an automated form or document to produce a completely new document is called "assembling" the template. This is because the new information which you provide and the original base template of unchanging information are put together or "assembled", thus creating an entirely new document.

The base template can be created in various ways but usually an existing document which is known to be valid is used. The information which changes from client to client or situation to situation is then identified. Then this information is replaced by variables. The variables are often represented by questions. When the questions are answered, these answers are inserted in the place of the variable. In this way, an automated document can be quickly created from an existing document. Form automation is similar except the variables are placed in the blank answer spaces provided on the form. Everything else works much the same. Let's look at an example of how this works.

Contract for the Sale of Goods

I, Joe Smith, the Seller do hereby agree to sell to Bill Brown, the Buyer, all of the goods described in Item I for the amount of Five Thousand Dollars and no cents ($5000.00) on this 3^rd day of January, 1998.

The underlined portions represent the changing information in this example. The rest of the example is unchanging and becomes the base template. We then replace the underlined portions with variables.

Contract for the Sale of Goods

I, «SellerName:Like This», the Seller do hereby agree to sell to «BuyerName:Like This», the Buyer, all of the goods described in Item I for the amount of «SalesPrice:Nine Dollars and twelve cents» ($«SalesPrice:9,999.00») on this «KExecDate:3rd day of June, 1990».

There are also questions for each variable. These questions will pop up for the assembler to answer. The answer provided will replace the variable in the finished document. For example:

Greater Power & Flexibility

In addition to these functions, other tools provide power and flexibility which places document assembly programs in an entirely different league than merge codes. The ability to replace text throughout a document by typing it in once is typical of most programs, i.e. typing in the Plaintiff’s last name – Smith – replaces it everywhere in the document it appears. However, not only do modern programs allow text, dates, and numbers (called variables) to be inserted, they also utilize multiple choice options and perform complex computations with the other variables.

Another function is the ability to insert conditional or logic statements. This feature allows the inclusion or exclusion of specific portions of text depending on whether the assembler tells the program to include it or not. This is very useful for documents such as a contract, will, or any type of document that uses standard clauses.

Other specific features of these programs are too numerous to cover here but two recent features must be mentioned because of their impact on the way law firms produce documents.

When a document is "assembled", the assembler is actually providing answers to the questions which represent the variables. Newer programs allow the answers to be saved to a file so that they may be reused in other documents! So the answers to the fee agreement can be reused in the representation agreement and again in the contract and again in the articles of incorporation, etc. This is a major advance in the preparation of documents. Now even the changing text can be reused easily and efficiently. As if that is not enough good news, some of the major programs, such as HotDocs, can use the information which you enter into your case management program to answer the variable questions! Finally, technology has reached the mecca of one time entry of data. This is a fantastic benefit for the modern law firm.

When do I buy it?

The best time to add this program to the mix is when everything else is stabilized. This is especially true of the word processor program. If your firm is moving to a new word processor or to a Windows version of your existing word processor, allow some time to pass before implementing a document assembly program. This allows everyone to focus on the new program which leads to a quicker learning curve. This, in turn, provides a better return on investment.

Where do I use it?

Document assembly is designed to handle the repetitive documents that the law firm must produce in quantity. If a document, such as a contract, will have specially worded clauses instead of standard clauses, then it may not be a good candidate for document automation. However, a contract can be very client or situation specific and still fit into document assembly quite well.

For instance, business contracts have a variety of clauses which may or may not be appropriate for a given situation. These clauses generally have two flavors, buyer oriented and seller oriented. However, both types of clauses have become highly standardized as to content. Thus, this type of document can be easily automated by providing both types of all clauses and choosing the ones appropriate for this particular contract.

Another example where document assembly does not work well is with documents which are used sporadically or only once. The time that it takes to “automate” the document has to be recouped in order for document assembly to benefit the law firm. Low volume documents must be evaluated in order to determine whether it is worth the time and effort involved.

Document assembly works quite well with mid to high volume documents. A firm that decides to incorporate document assembly into their practice should devote time to evaluate the volume of its documents. The document used most should be first to automate, second most automated second, etc. Do not be misled into thinking that the complexity of the document makes any difference. It is the frequency of its production which should guide the order of automation. Once a firm has automated all of its mid to high volume documents, then it can add lower volume documents during any slack periods which may occur.

How do I implement it?

Make sure that you purchase licenses for each person in the office who will be using the program simultaneously. The maximum number of licenses would be one for each workstation computer in your law office. If Susie and Lisa each have their own computer but Susie will only be using the program in the morning and Lisa only in the afternoon, then this generally only requires one license. Make sure you read your licensing agreement to ensure compliance.

The next step is to train one or two of your most technologically adept employees to be the template creators and trainers of the other employees. This is best accomplished by hiring a professional trainer to tutor these employees from beginning to advanced level in a short period of time. Although it may seem expensive to pay $500.00 or so for training, the return on your investment in the computer program and training will be much quicker with proper training. The climb up the learning curve will be greatly accelerated by such training. This will allow these key employees to begin to create templates while the rest of the firm is still producing documents the old way. The program should be installed during this interim period on the computer of each employee who will use it. Once a number of the most beneficial templates are created and tested, training of the rest of the employees in using the program should be scheduled. This training is quite elementary and should not take more than one hour. The firm should decide if additional training in how to create the templates is warranted.

It is my firm belief that virtually all of a law firm's return on investment in computer hardware or software comes from training. If you cannot figure out how to accomplish it, then hold off on the implementation until it can be worked out.

Conclusion

Work through each of these areas and see if document assembly could make your law office more efficient. Although it is rare, I have been to law offices which would see little benefit. Always remember that technology for its own sake is not a valid basis for purchase and implementation. Make sure that every purchase fits your law firm needs.

Lee D. Cumbie is the founder of Cumbie Law Office Automation Consulting. He is also an Adjunct Professor of Law at Campbell University where he teaches the Law Firm Computer Lab course. Lee also practices law in Fayetteville, N.C. focusing on computer law and estate planning.

Lee earned his B.S. degree from Regents College after leaving military service. He earned his J.D. from Campbell University, cum laude, in 1997.