Spreadsheet Software - This article was originally published in the Campbell Law Observer, a monthly legal newsletter published by the Campbell University School of Law in Buies Creek, N.C. To subscribe, contact Shannon Vandiver at (910) 893-1798.

This month I would like to focus on how law firms utilize spreadsheets. Or should I say ‘fail’ to use spreadsheets to assist them with a variety of tasks. If you currently use a spreadsheet program then I commend you. However, I have found that many law firms that do use spreadsheets are still limiting their use to calculations and this is unfortunate. The major advances in spreadsheets have mostly been in the chart and graph capabilities of those programs. These graphical representations can be quickly and easily created from the calculations already available or from raw data as demonstrated later in this article.

I remember using Lotus 1-2-3 for calculating machine settings when I worked at the Michelin Tire plant in Lexington, S.C. It was an invaluable tool for those purposes then and, in most respects, the calculation capabilities and features remain basically the same. At that time the results of the calculation could be sent to very basic graphical interpretations so we usually took the information and rekeyed it into a graphics program to create the charts we wanted. Today, that is unnecessary.

Remember our mantra:

Why do I need it?
What does it do?
How does it work?
When should I implement it?
Who should be using it?
Where do I obtain it?

Why do I need it?

The primary use of spreadsheets is to persuade by calculating and then displaying the effects of the causal relationships involved. Since persuasion is also a primary function of lawyers the spreadsheet can be highly beneficial to virtually all law firms.

What does it do?

The spreadsheet program takes groupings of raw data and manipulates it to achieve a meaningful real world result. For example, I spend three hours working on a brief. My hourly rate for this type of activity is $150.00. The spreadsheet will calculate that my time on the brief will cost the client $450.00.

I can add an additional group of raw data to classify my work by practice area. Then I can add additional time entries for work for other clients. I can then request a report that sets out how much income I earned in each practice area. I can do this for each day or for the week, month or year.

As you can see, time and billing softwares incorporate spreadsheet functions in order to perform their tasks. A large part of most of these programs are built using spreadsheets!

Other uses of spreadsheets include making child support or alimony calculations, creating amortization schedules, calculating damage awards for Workers Compensation, etc.

The real persuasive value is in converting those uses into graphical charts that quickly and powerfully inform the viewer.

How does it work?

The program uses a grid to separate blocks of information into something called cells. These cells act as building blocks in mathematical equations. Consequently, the result of creating a calculation of a group of cells can then be used as a basic building block of another calculation.

Many lawyers became lawyers because they hated math. The nice thing about spreadsheets is that they can be used in valuable ways that require NO calculations! Let’s look at a couple examples of this.

This is a spreadsheet containing the sales results for your small business client who wants to apply for a Small Business Administration loan to expand his operations. By taking these raw numbers and creating a graph we end up with a result that is much more persuasive than the data alone.

Another example of how this could be used is in the domestic arena for displaying Equitable Distribution scenarios.

Again, we can see the persuasive value of looking at a graphical view of the distribution.

The graphic representations can be used to persuade that a situation is fair or disproportionate depending on which side of the controversy you represent. It is also an easy way to demonstrate how proposed changes may affect the outcome. For example, suppose we give all of the stock to Joe in exchange for his share of the furnishings. Our chart now looks like this:

As you can see, with a little imagination, the uses are limitless and there are no calculations at all. Of course, the value and power of the spreadsheet and its corresponding graph increases as you begin to use more powerful functions.

Where do I obtain it?

It is likely already installed on your computer. All of the major office suites include a spreadsheet program. In Corel WP Suite, it is the Quattro Pro program and in the Microsoft Office Suite, it is the Excel program. In the Lotus SmartSuite, it is the Lotus 1-2-3 program. For those who were really bad in math that means the cost is $0.00, nada, zip, zilch - it’s FREE.

When should I implement it?

Since the software is likely already on the computer, now would be a good time to begin. Technology cannot provide any return on investment unless it is used and we have already seen that it is actually very easy to create very useful results.

Who should be using it?

The members of the firm who would be responsible for creating exhibits, handouts, or other visual items are the persons who will see the greatest potential in the program and will use it the most. Others in the firm should still try to become at least somewhat familiar because everyone is responsible for thinking of creative ways to use technology. Being aware of a program’s capabilities is a necessary part of knowing the best way to incorporate it into a legal matter.

Conclusion

The spreadsheet program has long carried the tarnished reputation of being a tool only a number crunching accountant could love. An imaginative approach to using the newer graphical tools will change the way you perceive these programs. Of course, you could wait until someone else who reads this column uses a spreadsheet program to trounce you at the next mediation or trial. But you wouldn’t do that, now would you?

Lee D. Cumbie is the founder of Cumbie Law Office Automation Consulting, one of the Technology Assistance Program consultants for the N.C. Bar Assn. He is also an Adjunct Professor of Law at Campbell University where he teaches the Law Firm Computer Lab course. Lee is a member of Tyson & Cumbie, PLLC in Fayetteville, N.C.
Lee earned his B.S. degree from Regents College after military service in the U.S. Navy. He earned his J.D. from Campbell University, cum laude, in 1997.

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Year 2000 Software Windowing Solutions www.suttondesigns.com/NetsaversCenter/index.htm
PC Magazine Online www.pcmag.com/y2k
PC Magazine October 6, 1998 "What To Do About the Year 2000", Jim Seymour, p. 100
Ziff-Davis ZDNet www.zdnet.com/y2k
Year 2000 Information Center www.year2000.com
Legal/Management Issues www.y2k.com

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