The problem
At the center of a series of Residential Mortgage-backed Securities (“RMBS”) litigation matters were well over 20,000 loan files, which consisted of 500 - 1,000 pages per loan file of credit and financial information needed to secure a mortgage. We needed a way keep them organized if the expert and the expert’s team were to review each of them by court-established deadlines and under budget. We had a fast moving pipeline consisting of at least three layers of loan file review, and, given the court deadlines, it was our job to keep the reviewers and expert moving as efficiently as possible. As a result, the cornerstone of managing the pipeline well came down to quick access to complete sets of loan files. The teams reviewed loan files according to primary statistical sample, and sometimes they needed to substitute an incomplete loan file with one from a supplemental sample. With the extraordinary number of loan files and samples in the scope of our expert reports, we could have easily become disorganized, unconsciously devolving into searching for loan files in a haphazard way. It mattered that loan files were saved according to sample name and loan number.
The Strategy
We designed a process to pull large swaths of loan files in a single go, and funnel them into an easy to understand folder structure. First, in consult with the subject matter experts in Litigation Support, attorneys drafted detailed instructions to the third parties who possessed these loan files, asking them to prepare the digital files according to certain specifications. Most importantly, the instructions requested metadata containing the loan numbers. The attorneys sent identical sets of instructors to all loan file originators that were third parties to the case. This consistent guidance set the stage for getting loan files containing the type of information needed down the line to automatically pull documents associated with a single loan file. Second, once we had the loan files, we needed to organize them by sample, with an average of 80 loans to a sample. Lit Support programed python scripts to “pull” loan files with loan numbers tied to a particular sample, and then funnel the files automatically into a folder labeled by sample name and loan number. Third, we took it one step further by pulling not just the primary sample, but all of the supplemental sample too. This allowed us to quickly supplement if loan file underwriters needed to substitute at a moment’s notice. Pulling loans in both samples established a complete library of all possible loan files we might need for a particular set.
The Outcome
The sheer volume of samples, loan files, and pages of loan files made this project inherently complicated. But, tackling the organization process one step at a time created order and a pipeline that hummed along. In turn, we met all court deadlines and attorneys had the time and energy to tackle aspects of the case that were more deserving of their thought than locating a loan file one at a time.
The problem
"We are spending too much money on outside counsel and vendors. We need to control costs."
The strategy
We applied different Lean Six Sigma techniques to correct poor contract management, poor technology adoption and long contract cycles.
The outcome
We planned and conducted a series of Kaizen events. During these sessions, we worked with the team and used different Lean tools, such as: fish-bone diagrams, value-stream mapping, various brainstorming techniques, and others, to determine the root causes of the problems and implement solutions. We formulated a better workflow and decided on the best technology solutions. Together with the acquisition and adoption of better suited technology, and the appropriate training, we successfully implemented these changes:
•Created a preferred vendor panel focusing on skills, compliance and data security & protection capabilities, diversity, and pricing.
•Updated the old RFPs with modern data and technology best practices. Included requirements for technology applications, project management, and reporting.
•Planned a law firm panel convergence summit, using Lean Six Sigma tools to determine the selection criteria.
•Established selection criteria using: rates, experience, skill sets, geography, diversity, and needs.
•Created a plan to analyze data from the bidders to serve as a basis for comparison.
•Using data gathered, identified situations in which flat or other AFAs should be considered.
•Decided on new value-based sourcing and staffing models.
•Created a plan for training the selected law firms on Lean and Agile methodologies and to use these in the client's matters.
The problem
The client was frustrated with the amount of incoming work and unfinished projects. Everyone seemed to be overwhelmed with work, "there are not enough hours in the day" was a common complaint.
The strategy
We used Lean management techniques and tools like Kaizen, DMAIC, and process maps, to help the team discover and remove "waste" - as defined in Lean- from the day-to-day processes.
The outcome
•Conducted time-management training.
•Created new workflows and process maps (e.g., a 5 page process map on NDAs to reduce turnaround time).
•Decided to use temporary staffing, at a much reduced cost than full-time employees, to clear up backlogs and clerical work from the busy attorneys in the department.
•Realigned the workforce and the workloads by subject matter and reassigned tasks to people best-suited for the job. We also cut unnecessary tasks.
•Automated tasks using technology, and executed a solid implementation and adoption strategy.
•Created a shared portal for task tracking, assignments and reassignments.
The problem
A law firm was unhappy with the cost and performance of its document review platform, but feared the delay and expense often involved in changing vendors.
The strategy
We negotiated more favorable terms with a new vendor, and planned and executed a successful migration of more than six terabytes of data and coding without losing any work product.
The outcome
Immediately, the firm began saving approximately $157,000 a month. Over the lifetime of the litigation, the savings totaled over $10 million.
The problem
Mistakes during e-discovery can have disastrous consequences in litigation. Two national banks involved in a high-stakes case asked us to help them improve their document review process.
The strategy
We drafted review protocols, trained the clients’ personnel in e-discovery and legal project management, and monitored the review process to ensure that procedures were properly followed.
The outcome
After implementation of the new protocols, the document review process showed an error rate of less than 5%, a review speed 25% faster than the year before, and a 34% decrease in cost.
The problem
In litigation, document production deadlines wait for no one. In the face of a challenging litigation schedule and close to eight terabytes of data, a federal agency asked us to use technology to improve the efficiency of its process.
The strategy
We drafted a technology-assisted review protocol, negotiated it with opposing counsel, and managed a defensible document review process with a statistically significant measure of success.
The outcome
The review, including validation and quality control, was approximately 80% faster than a review using the traditional Boolean method and approximately 65% faster than using indexing and clustering.
The problem
Individual e-discovery contracts are costly and time-consuming to negotiate.
The strategy
Using our industry connections, we negotiate groups of vendor contracts as part of a package and use volume to drive down costs.
The outcome
Over the course of five years, we collectively saved approximately $30 million in hosting and processing fees for a set of clients engaged in protracted document-heavy litigation.
The problem
A law firm needed to quickly review more than 15,000 loans in various mortgage-backed securities cases. The client demanded transparency at a granular level and the ability to determine the status of each loan on demand.
The strategy
Using Lean Six Sigma and project management techniques, we created an efficient, replicable approach. First, we collected the data from third parties and processed and indexed it, deploying underused client resources to cut costs. Next, we trained more than a dozen vendors to conduct underwriting and appraisal reviews using a web-based questionnaire. We also developed a tracking mechanism for loan status.
The outcome
We met the deadline and the budget. At every step, the client was able to view the status of each loan.
