The case for automation and digitisation is compelling and inevitable in the legal profession today. Ultimately the improvement in the value/cost ratio of traditionally high-cost administrative processes makes it almost certain that Robotics Process Automation (RPA) will be applied in legal firms.

The purpose of this article is not to contribute to the debate on automated legal services to clients, but to consider the impact of “digital operations” on the various support functions, such as finance and HR which support legal firms, and reveal how you can prepare your staff and operations for the future.

What is Robotics Process Automation (RPA)?

Robotic process automation (RPA) is accelerating the digitisation of business support areas. RPA creates a virtual workforce of software robots that emulate human execution

Applying robotics to support processes includes dramatic reduction of cost and processing time through:

Improved processing accuracy with reduced errors and rework

2 Frees up human capital to refocus on complex and high-impact functions

4

More flexible scaling, reducing backlogs during demand spikes

1 Enhanced focus on end users, significantly improving satisfaction

3

Professional Services insightsDecember 2016

• Data intensive

• Repetitive in nature

• Rule-driven

• Electronic trigger to the process

• Involve manual calculation

• High error rates

• Complex IT landscape

of tasks through existing software interfaces. RPA achieves a high return on investment by avoiding legacy system and process changes. Typically, RPA can be applied where the following exist:

How can robotics help law firms do less and become more?ey.com/au/ProfessionalServices

2 | Professional Services insights How can robotics help law firms do less and become more? December 2016

What are the four elements that typically slow down the pace of change?

Although RPA technology is relatively cheap and easy to implement, failure to manage the people dimensions of this evolution could hold legal firms back. We have seen numerous organisations dip their toes excitedly into RPA technology, and successfully complete proof of concepts only to stall moments before full implementation, because the scale of change becomes apparent and they are not yet prepared.

Four elements typically work to slow down change

People management systems and processes can be cumbersome to navigate requiring extensive consultation and decision-making

Change leadership is difficult and involves dealing with challenging human emotion, disappointment, anxiety and possibly anger

Process stability, designed to predict performance, reduces the ability to respond quickly

Poor risk management which fails to account for the impact on business disruption and to make well-thought out decisions

[1] Heath, Chip and Heath, Dan, “Switch: How to Change Things when Change is Hard”, 2010

How do you reduce automation anxiety and engage your people in imagining and preparing for the future?

When it suits us, we adapt quickly to technologies such as smart phones, the Internet of Things and tablet computers. In a work environment the personal benefit of adapting to new technology is less direct so a different path is required to engage people to rapidly switch behaviours[1].

Donal Graham Lead Partner — Finance Performance Improvement, EY Australia donal.graham@au.ey.com+61 2 8295 6155

Campbell JacksonNational Professional Services Leader, EY Australiacampbell.jackson@au.ey.com +61 3 9288 8182

• Build awareness of RPA and its possible impact early, long before the change is close to occurring. When the threat seems slightly unreal or a long time in the future we are less concerned with survival and more open to examining possibilities

• Find ways to demonstrate the benefits of RPA, in how it can expand productivity, enable accuracy and remove parts of roles which are mundane and frustrating. Support a small scale RPA pilot to demonstrate how time can be made available to contribute to value-adding work

• Educate your people on the capabilities and skills that are needed to go along with these changes (including how to lead people that are focused more on creative work and problem solving)

• Involve your people in developing the digital roadmap for your back office

Some activities that can support this:

RPA complements existing technologies while enhancing efficiency and effectiveness. We have seen many successful implementations across core business operations, IT, Human Resources, Finance, Customer Service and Supply Chain. Within the global EY organisation, we have applied robotics across an increasing number of our own administrative areas including:

Examples DescriptionAutomation of Debtors Confirmation Mail

Prepare and send confirmation emails to debtors

Engagement CreationEngagement creation in application from Excel spreadsheet

Payment ProcessingRead excel file for payment details, access and save to e-Payroll application

On Boarding Communication Process

Read excel file and send email to counsellor, log service delivery, update candidate details

Learning and Development Pre-communication Emails

Collection, categorisation and pre-communication of training details

Recruitment Details Management

Upload Excel and PDF with job related information

Bank ReconciliationUpload bank statements and reconcile to core finance transactional systems

Time and Expense Automation

Consolidate, calculate and submit engagement details

Finance Automation: Fixed Assets

Robot logs into system using provided credentials and retrieve data corresponding to “Account payable voucher details” and populates a common excel data sheet

And many more…

Providing people with the certainty that as an organisation, you will take them on the journey at the same time as the leadership team is imperative. Whilst you can’t predict the future, you can guarantee that they will be supported to be prepared for the future.

Legal firms will need to be prepared to manage their support workforces differently and develop new leadership practices to bring them on the journey. You will have to build trust by walking the talk.

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About EYEY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.

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This communication provides general information which is current at the time of production. The information contained in this communication does not constitute advice and should not be relied on as such. Professional advice should be sought prior to any action being taken in reliance on any of the information. Ernst & Young disclaims all responsibility and liability (including, without limitation, for any direct or indirect or consequential costs, loss or damage or loss of profits) arising from anything done or omitted to be done by any party in reliance, whether wholly or partially, on any of the information. Any party that relies on the information does so at its own risk. The views expressed in this article are the views of the author, not Ernst & Young. Liability limited by a scheme approved under Professional Standards Legislation.

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