Going Paperless – The Whole Truth and Nothing but the Truth - Part III

This installment is a bit long for a blog post.. but what can I say?  Lots to say!

A Morning in the Life….

John and Jane arrive at work for another busy day of juggling client demands and deadlines.  

John arrives early so he can catch up on his inbox – the inbox full of paper sitting on a corner of his desk.  He moves the stack onto his blotter and starts with the first item.  It’s a resume which he quickly scans and thinks might be ok, so he writes “OK” on the top and drops it into his outbox to return to HR.  Next are several benefits forms which he drops into his briefcase to review on the train.  Next is an expense claim prepared by his administrative assistant – he signs it and drops it into his outbox.  Next is a letter from a client requesting an update on a case.  This is placed in a special spot on his desk for immediate follow up. 

The phone rings – co-counsel calling about a case they’re preparing for trial.  While John begins the call, he moves the remaining stack of papers to his in-box to review “later”.  During the call, co-counsel advises that they’ve mis-placed two documents.  John puts the caller on hold, and goes to the file cabinet to retrieve the two documents.  He gives the documents to his secretary and asks that the documents be faxed to co-counsel.  7 minutes later – he’s back on the phone with co-counsel.

Jane arrives after having finished a breakfast meeting with a prospective client.  She turns her attention to her computer and her electronic inbox. 

Jane scans the list of new inbox items scanning the “document type” column and selects a document type of Client Letter.  The letter is displayed in a viewing window on Jane’s computer so Jane can easily read it – the client is asking for an update on a case.  Jane clicks on a “cabinet” icon and clicks on the client’s electronic case file to see a chronological list of all documents and emails.  She reviews several documents and emails and then jots a note on the letter image with details for the client.  Jane then selects an electronic “route stamp” and enters her secretary’s initials.  The letter with comments is moved to the secretary’s electronic inbox so that she can type the reply letter incorporating the comments added by Jane.  

Jane returns to her electronic inbox to scan the list of “NEW” items and spots a resume.  She’s in the process of hiring a new paralegal she urgently needs.  She clicks on this document and the resume is displayed in a viewing window on Jane’s computer.  She scans the resume and decides this candidate is worth reviewing so she selects an electronic “accept stamp” and clicks on the resume image.  She enters a comment into the stamp which says “please schedule an interview – before 9 or after 6 any day this week”.  The resume disappears from her inbox and appears in the inbox of the HR Director who schedules the interview.

Jane sees a set of benefits forms in the electronic inbox and displays these forms in a viewing window.  She uses annotation tools to fill out the forms, and then uses an electronic stamp to “sign” them.  As part of the signature Jane indicates that the forms should be forwarded to HR and they are removed from Jane’s inbox.

The phone rings – co-counsel calling about a case they’re preparing for trial.  Co-counsel cannot locate 2 key documents.  Jane clicks on her electronic filing cabinet and then the electronic case file, locates the documents, and emails both to co-counsel who receives the documents while they’re still on the phone.

These examples are intended to (a) exemplify the differences between paper and paperless and (b) demonstrate the power of being paperless.  The paperless office is more than just scanning – but should incorporate intelligent scanning which can streamline how documents move through an organization.  The benefits are real and can be seen on the bottom line!

How does it work?

Intelligent scan capture can feed workflow or document management systems so that documents can be easily stored, accessed, and systematically managed through their lifecycle.  A few common elements are:

a) Document Prep
The idea is to make the scanning process as fast as possible.  As mundane as it sounds the first step is to prepare the paper for scanning.  This will typically involve:

- making sure metal is removed.  This is very unfriendly to scanners and means that all paperclips and staples are removed.

- making sure odd-sized pages are accomodated.  Smaller sizes should be affixed to an 8 1/2 x 11 sheet of paper, and larger sizes need to be separately batched.

- check for double-sided pages.  These are ok if you have a duplex scanner - but must be copied to single-sided if you're scanner does not support duplex scanning.

- affix a barcode or cover page to "separate" documents automatically (see "d").  This will allow you to scan a batch of files together - and end up with separate scan files.

c) QC the Scan Output

Your scan process must include a review of the scan output.  This is a process which involves a human who will examine each page for quality (alignment and clarity primiarily).  Examining thumbnail images of the scanned pages will easily show mis-alignments but closer examination for readability may be needed.

d) Bar-codes

When barcodes are “read” by a scanner (using optical character recognition or OCR) they are converted to electronic information with 100% accuracy or not at all.  Barcodes can transmit details about a document or simply tell a scanner when a “new” document has started – so you can feed an entire stack of documents into a scanner which can separate the stack into separate electronic files based on a barcode “separator”.

e) Zone OCR

Zone OCR gives a scanner the ability to see a specific part of a page (a zone) and convert what it finds into electronic information.  This makes it possible to take information from a location on a page and feed that information into a system.  This works especially well when with documents that are formatted alike (pre-bills, purchase orders, etc.) but can be adapted to a number of workflows.

NOTE: that zone-ocr works with paper documents that have been scanned OR electronic documents being loaded into a system (pre-bills or new-matter form or conflict form are just a few of many examples).

f) Workflow using Stamps

Imagine taking a piece of paper and using a rubber stamp to print the words “approved” or “forward to ____” or “Paid on ____ “.  Then imagine that the piece of paper flew off to a destination simply based on the stamp.  That is what you can accomplish in an entirely electronic world! 

EXAMPLE:

Electronic HR FILE:  Employment often begins with a resume and these often arrive in paper format – but may arrive as an email attachment.

a) hard-copy resumes arrive in the mailroom where a bar-code is affixed (or use a coversheet to keep the original paper document unmarked). 

b) the document is placed in the ‘to be scanned’ inbox

c) the mailroom takes the to-be-scanned stack and loads into the scanner.

d) the mailroom reviews each scanned document for integrity and then applies a “send to” stamp adding the recipients initials (rather than carrying the paper around the office for delivery).

e) the recipients see mailroom items accumulate in their electronic inbox – including the HR Director who receives the resume.

f) the HR Director opens the resume to see that it is a paralegal resume.  The HR Director applies an electronic “send to” stamp entering the initials of 3 attorneys who are hiring a new paralegal.

g) the resume is routed to each of the attorney’s electronic inboxes..

h) the resume is returned to the HR Director who arranges interviews while the resume is placed in an electronic “pending” file.

i) the paralegal is hired – and the resume is then placed in a new electronic HR folder for this new employee.

Imagine routing a Conflict Form using the same methods described above – and this document started out as a Word or PDF document and was never paper.  The same methods work – and the conflict form moves to several of the reviewing attorneys simultaneously – and the status of the form can be checked at any time (who’s holding up approval of this new client?!).

Culture Shock

So why isn’t the world paperless?!  Going paperless requires using new tools to do the work we're already doing.  Often the steps can remain the same - but are easier and faster when automated.  But even the slightest change can be hard to implement.  Without the enthusiastic participation of everyone involved, going paperless will fail.  Electronic Case Files won’t have all the documents in them (“I’m keeping just a few paper documents on the floor next to my desk because they’re really important”), processes will be interrupted (“I’m not reviewing that resume on line – just print it for me!”), and frustration will abound.

Recruit a sponsor.  Unless you have a named partner, senior executive, or department manager on board – you’re going to find it much harder to go paperless.

Start small.  Identify a simple process that touches many in the organization – and use it to show the power of going paperless.  Perhaps HR forms, or an Electronic Correspondence File which can be the foundation for an Electronic Case File. 

Notice that there is “back office paper” (HR, Benefits, Accounting) and “front office paper” (client correspondence and other client content) which may impact your decision on where to start.  Back office paper tends to be more routine and easier to automate – but automating front-office-paper can often deliver a bigger benefit.  Ultimately you’ll automate both.

User Support.  Users must have confidence in going paperless which means confidence that they will Always Find Their Document.  Implement tools that make it simple to find a document (searches that execute automatically for example) and give them enough training to assure they know how to find a document.

Going Paperless.  It can deliver hard-cost savings and can transform your organization to be substantially more efficient – delivering another healthy dose of profitability to the P&L.

Share your experiences by posting a comment!   

Here is an excellent resource:  

How to Start and Run a Paperless Office

American Bar Association:  written by Nerino J. Petro Jr.

Going Paperless – The Whole Truth and Nothing but the Truth - Part II

Scanning Your Backfile and Day Forward Documents – It’s Day and Night

In the preceding blog post we discussed the economics of scanning your backfile.  My conclusion is that costs usually exceed benefits so unless there is a compelling reason to invest in this conversion – continue to store the existing paper backfile.  You will work this archive down in size over time as you apply your records policy.

A) Benefits of Scanning

On the other hand, scanning on a day-forward basis can often yield significant benefits especially when implementing workflow.  These benefits include:

• No more adding paper to your backfile archive or using office space to store paper since you can scan incoming documents and – in most cases – destroy the paper version.

• Storing and retrieving electronic documents is more efficient (faster, more flexible) and less expensive than storing and retrieving paper.  
• If your paper records have been converted with OCR software, you can easily search through an entire document library for specific words or phrases in seconds.  This is something you simply cannot accomplish with paper documents.
• Its easy to back up your electronic documents.  Ever try xeroxing an entire file cabinet of paper to make a back up copy? 
• Its easier to secure your electronic documents by securing the server , hard drive, or database storing the documents.
• It is possible to automate and improve existing workflow and implement new workflows to manage electronic documents.   Day-forward documents are the new paper documents received by the firm.  There may also be internally generated paper documents – but these should be exceptions since electronic documents should rarely be converted to paper.   In either case, the electronic version of these documents can be managed in computerized workflow processes.

B) Applying Computerized Workflow Management

By their very nature, day-forward documents are at the very beginning of a workflow in your firm – whether it’s a letter, resume, invoice, expense report, medical authorization, or any other type of document.  In electronic format, incoming documents can be routed or re-routed and tracked through an automated workflow process which will mean collapsing a process from days or weeks to hours or minutes – simply by applying automation of the process.  More about this in my next installment.

Scanning and Intelligent Scanning

So let’s buy a scanner or two and start scanning!  Sounds pretty simple but realize that this is just the first of two parts to the equation.  The right scanning hardware is vital but the right scan-capture solution can make your scanning process much more intelligent.

A) Lets go Shopping

So let’s buy a scanner or two and start scanning!   Before you buy anything – do a bit of planning and consider the following:   

• Identify existing workflow bottlenecks – if you can spot them then they’re probably pretty severe so focus there first.  You’ll see quick payoffs this way.
• Figure out how much paper you need to scan every day. 
• Calculate scanned pages per hour and match your scanner capabilities to this requirement.
• Calculate the amount of electronic storage space required. 
• Consider who will do the scanning. 
• Consider whether scanning is centralized or distributed.  Or both.
• Determine what scan-capture software you’ll be using.  Not all scanners work with all scan-capture software solutions – although many are interchangeable.  Double-check!

·         Determine which features you must have or would like to have in a scanner.  Speed and cost go together and some features may greatly enhance the scanning process.  Example: Duplex scanners can simultaneously scan the front and back of a page but this may not be necessary because many documents are one-sided. 

Example: Built-in OCR (optical character recognition) software can produce searchable files which is a tremendous time-saver when retrieving electronic documents. 

Example: Bates Numbering can be added during the scanning process. 

B) Intelligent Scanning – Scan-Capture Software makes Your Scanner Smart

Now that you have the perfect scanner(s) selected, turn your attention to making the scanning process intelligent.  Scan-capture software can “read” information on the scanned page and create metadata (data about the documents) during the scanning process.  With metadata it is possible to feed your scanned documents into a workflow solution, document management solution, and ultimately a records management solution often with little or no human intervention for further coding.  Intelligent scanning takes you from “simply scanning” to “automating and managing” electronic documents in your organization.  The benefits can be quite remarkable.

Intelligent Scanning and Workflow

In our next installment, we’ll talk about how to make the scanning process smart – and discuss a few examples of automating what you’re already doing with paper – only better.

Going Paperless – The Whole Truth and Nothing but the Truth

No, this blog post isn’t about PDF content – but after a recent conversation with a client I felt compelled to clarify – and demystify – what “going paperless” is really about.  My next several blogs will cover the issue of costs and how to approach “going paperless” for substantial benefits and cost savings.

As a separate subject but very much a part of going paperless is the need for a Records Policy.  A Records Policy is the only way you can justify destroying records – and without one – you’re a prisoner to an ever growing library of content.  ARMA (www.arma.org) is the resource on this topic.  http://www.arma.org/pdf/WhatIsRIM.pdf

PART I – The Whole Truth about Costs

A) Going Paperless - The Vision

 The conversation with my client went something like this:

Client:  “Well I’m glad you asked about our 2011 initiatives.  One of the biggies is going paperless.  We think it will save us a ton of money and we're really having trouble locating paper documents”.

Me: “That’s great!  It sure could.  What processes are you planning to automate?”

Client: “Oh, we’re not automating anything really – just getting rid of all of those boxes in storage and putting everything on line.  Our storage vendor said it might reduce their revenues a bit – but will make us much more efficient.”.

Me: “I see.  Are they helping you develop a records policy so you can thin out the old paper records?”

Client: “Not necessary since we’re still keeping everything.”

Me: “And what about the new paper you’re receiving or creating every day?”

Client:  “That’s the best part.  Nothing has to change.  We’ll just box up the paperwork, send it to our vendor, and they’ll put it on line!.  Really simple!"

And with that, I realized that my client was excited about a project which will probably increase costs while delivering little or no benefits. 

B) Some Nomenclature

• Uniform Photographic Copies of Business and Public Records as Evidence Act (UPA) – This is the law which makes it legal to substitute electronic records for paper copies - and in fact, permits the destruction of the paper records in the normal course of business.  See this link for a legal citation.

• Records Policy – a set of guidelines which defines how long you must keep any type of record in your organization and when you can destroy that record.
• Back File – This is your existing collection of paper records, most of which you never or rarely need to access.
• Day-Forward – This is the new paper you create day to day which is referred to often and must be accessible.
•  Workflow – a process someone or some people follow when completing a task. 

C) The Economics of Scanning - Backfile Conversion

To figure out whether its economical to “go paperless”, I suggest dividing your universe of paper into two segments:  Backfile and Day Forward.  Lets look at the cost of storing your backfile as paper or in electronic format. 

We need to make a few assumptions which are:

1) we’re working with a bankers box of about 10” high x 12”wide x 15” deep.  This box will contain 2000 to 2500 pages.  PS: this box is about 1.04 cubic feet in size.  Bankers boxes 24" deep will store 4500 to 5000 pages.  (for other estimates - see this resource)

2) A scanned page of paper will average 50k in size so a single box containing 2000 pages (15" deep) will require about 100 Mb of storage.  1 Gb of storage will accommodate about 10 boxes of scanned content.

3) You can get a page of paper prepared and scanned for 8 cents.  Remember - these are my assumptions and your costs may vary.

4) 1 Gb of storage will cost you about $35 per month.

The results are:

• Cost to scan a box = $160.
• Cost to store the electronic version of the documents in 1 box = $3.50 per month.

Compare the cost of scanning and storing a box to your cost of storing a box.  Its probably cheaper to store the box. 

In the case of my client the storage costs include $1.50 to receive a box and about 25 cents per box per month to store it.  There are also retrieval, re-file, and destruction fees as well – this is why you may consider scanning boxes that are retrieved often. 

D) So Scanning the Backfile is Break-even or Often may Cost More – So Why Do it?

Under certain circumstances, it may pay to convert some or all of your backfile even though there are initial scanning costs and monthly storage costs.  A few examples:

• Is a portion of your business subject to time-limited requests for documents?  You may have no choice but to identify the specific documents subject to requests and invest in scanning and storing those documents.
• Are you the custodian of document records like wills and mortgages which must be accessible for very long periods.  In these examples the paper original may be required but its important to “back up” the paper by scanning the originals to electronic media and microfiche.
• Are there particular boxes that you seem to be constantly recalling from storage?  It may save you money and will certainly save you time if you scan these boxes and store the electronic versions on line.
• Are you implementing a records policy?  It may actually be easier to review and cull records in electronic format than in paper format because the electronic version may be indexed with helpful key words and may be full text searchable – making it possible to search and locate electronic records in ways simply not possible with paper documents.

PART II – Day Forward and Workflow – Transforming your Organization

In my next post, I’ll discuss the benefits of going paperless and how it can transform your business into the efficient document machine you’ve always dreamed about.