Change at the Coal Face of Law Presented by Sally R Gonzalez SallyRGonzalezOutlookcom Todays Topics Law Firm of Future Whats driving change Lawyer personality traits Help or Hindrance ID: 241014
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Slide1
Driving
Change at the Coal Face of Law
Presented by:
Sally R. Gonzalez
Sally.R.Gonzalez@Outlook.comSlide2
Today’s TopicsLaw Firm of Future – What’s driving change?
Lawyer personality traits – Help or Hindrance?How to promote disruptive change?What
technology innovations
should we be monitoring?
Future technology trends from ILTA’s Legal Technology Future Horizons StudySlide3
Today’s Pressures on Profitability
Demand for legal services remains flat, 5 years after the financial crisis
Large law firms competing for shrinking pool of high-end work
Firms have to take work from others to maintain/grow revenue
R
evenue growth remains sharply constrained
Pre-2008: Double digit growth2013: Revenue grew 2.5% (Citi Private Bank Survey of 180 firms)Stratification of firms continues to widen50-top grossing US firms materially outperformed others in profitability (Citi Survey)Global firms with strong international presence showed the biggest revenue gains (Citi Survey)2013 Revenue growth ranged from +20% to -21% (Wells Fargo Private Bank)Firms that aggressively managed expenses and pruned unproductive partners are doing better than others
Source: …
Big Law Firms Have a Big Revenue Problem
; Wall Street Journal; February 25,
2014Slide4
The New Normal is Here to Stay
“Well, in our country,” said Alice, still panting a little, “you’d generally get to somewhere else – if you run very fast for a long time, as we’ve been doing.”
“A slow sort of country!” said the Queen. “Now, here, you see, it takes all the running you can do, to keep in the same place. If you want to get somewhere else, you must run at least twice as fast as that.”
Lewis Carroll, Through the Looking Glass and What Alice Found There Slide5
What Does the GC want? Value…“What corporate clients want and need: value driven, high quality legal services that deliver solutions for a reasonable cost and develop lawyers as counselors (not just content-providers), advocates (not just process-doers) and professional partners.”
Source: The ACC Value Challenge ProjectSlide6
What Does the GC Want? A Partner…Top 3 ways for GC to deliver value today: reduce time, risk and costAchieving best legal outcome less important today than 5 years ago
42%
30%
45%
43%
Now Five years ago
Source: Deloitte
Touche
Tohmatsu
60%
50%
40%
30%
20%
10%
0
56%
Top three ways in which corporate legal teams demonstrate value
Achieving timely resolution of legal problems
Reducing legal risk
Achieving cost effective resolution of legal problems
Achieving best legal outcome
Reducing external legal expenditure
Building internal legal expertise of
organisation
60%
54%
54%
49%
44%
48%
55%
Source: Deloitte Global Corporate Counsel Report 2012Slide7
Law Firm of the FutureSize will matter – both bigger and smaller
Location will matter – serving global clients and emerging nationsExpertise remains key, service delivery models will morphCompetitors will change
In-house law departments
Dynamic virtual law firms (e.g. Axiom)
Alliances (e.g.,
LexMundi
)Specialist service providers for disaggregated servicesNon-legal professional service organizationsProject Management and Process Improvement will become embedded Innovation will be a differentiatorSlide8
Law Firms Respond – Legal Project Management
“Doing things right”Training lawyers in project managementIncreasing formality around pricing up-front and managing to budget over time
Formalizing methodologies and tools for matter management
BESPOKE
IN-HOUSE
SOLUTIONSSlide9
Law Firms Respond – Legal Process Improvement
“Doing the right things”Streamlining legal processesResourcing strategically
Assigning work to the lowest-cost, qualified resource
Out-tasking as appropriate
Building bespoke technology platforms and resources
Delivering information just-in-time in context with task (“path finders”)
Production Plan
Takt
Demand
Capacity Planning
Value Steam Map
Time Study
Inventory Turns
Spaghetti Diagram
Process Cycle
Setup Reduction
Part Stratification
TOC
5$
Line
Balacing
Kanban
Pull
A Single Place Flow
$MED
Time & Motion Study
Work Cells
TPM
Visual Control
Standard Work
Takt
Boards
5-Minute Briefing
Project Selection
Project Charter
$IPOC
Process Mapping
C&A
M&A
Potential Capability
Pareto
Fish bone
Multi-
vari
Hypothesis Testing
FMEA
Pareto
DOE
$PC
FMEA
ANOVA
DOE
R3M
$PC
Control Plan
Process Audit
Define
Improvement
Control
Measure
AnalysisSlide10
Law Firms Respond – InnovateDevelop broad, yet specialized services to support global clients
Improve existing services to achieve profitability objectivesCreate new services and service models to buffer revenue streams from downward pressures on legal spend
Non-legal professional services
Ancillary business unitsSlide11
Today’s TopicsLaw Firm of Future – What’s driving change?
Lawyer personality traits – Help or Hindrance?
How to promote disruptive change?
What
technology innovations
should we be monitoring?
Future technology trends from ILTA’s Legal Technology Future Horizons StudySlide12
What’s Unique About Lawyer Personalities?Measuring Lawyer
Personalities with the Caliper ProfileMeasures 18 separate and distinct personality traitsAdministered to more than 2 million college-educated subjects over past 40 years – well validated instrument
Administered to more than 4500 lawyers over past 10
years by Dr. Larry Richards
Results: Lawyers vary substantially from the norm on 6 of the 18
traits
Reflects US-based lawyer population; culture session may reveal differences in Asia-based lawyersSlide13
Skepticism
100
90
80
70
60
50
40
30
20
10
0
50
90
Lawyers
General Public
Symptoms of highly skeptical people? Pervasive questioning of facts and authority, sometimes cynical, judgmental, argumentative, and self protecting.Slide14
50
89
Autonomy
100
90
80
70
60
50
40
30
20
10
0
Resistance to being managed,
dislike
being told what to do,
prize
independence.
Lawyers
General PublicSlide15
50
82
Abstract Reasoning
100
90
80
70
60
50
40
30
20
10
0
Ability to detect and theorize fact patterns and cause/effect relationships, that are not readily apparent,
and which
may or may not be relevant
.
Lawyers
General PublicSlide16
50
71
Urgency
100
90
80
70
60
50
40
30
20
10
0
Symptoms? Impatience, a need to get things done, and a sense of immediacy.
Lawyers
General PublicSlide17
50
30
Personal Resilience
100
90
80
70
60
50
40
30
20
10
0
Symptoms of low resilience? Defensive, resist accepting feedback, and hypersensitive to
criticism
.
Lawyers
General PublicSlide18
50
12
Sociability
100
90
80
70
60
50
40
30
20
10
0
Desire to connect with people, comfort in initiating new relationships with others, having emotional
conversation with
others.
Lawyers
General PublicSlide19
Does
This Make Sense Now
?Slide20
Implications:Project Management is a Challenge
Lawyers are not naturally team orientedHigh Skepticism and
Autonomy combined
with low Sociability and Resilience
undermine team behaviors
Compensation
system is competitive (in U.S.)Lawyers are tough-minded and tolerant of conflict—so they get stuck in “Storming” phase of team formationTeamwork is unfamiliar — not generally used in law schoolUrgency works against planning and managing to planTypical lawyer does not have personality traits needed for effective project managementSlide21
Implications:Process Improvement and Innovation are a Challenge
High skepticism and autonomy can kill new ideas, especially other’s ideas, at inceptionHigh abstract reasoning promotes analysis paralysis rather than crisp decision makingUrgency works against reflection for process improvement
Low resilience undermines investments in R&D
Works
against
innovator’s
mantra of “Fail quick and fast”Slide22
Today’s TopicsLaw Firm of Future – What’s driving change?
Lawyer personality traits
– Help or Hindrance
?
How to promote disruptive change?
What
technology innovations should we be monitoring? Future technology trends from ILTA’s Legal Technology Future Horizons StudySlide23
ThesisProject Management, Process Improvement and Innovation are disruptive changes in a law firm
Business Services leaders and teams are well positioned to pioneer disruptive change BUT also need to avoid arrows in their backsPromoting disruptive change benefits from a “Diffusion of Innovations” methodSlide24
About Diffusion of Innovation (DOI)DOI seeks to explain how innovations are adopted within a population
Innovation = an idea, behavior, or object perceived as new by its audienceProvides 3 insights into social change process; tested in more than 6000 research studies and field tests and among most reliable in social sciences
Qualities that make an innovation spread
Importance of peer-to-peer conversations and networks
Understanding needs of different user segments
Standard text:
Diffusion of Innovations, Everett M. Rogers, Fifth Edition 2003; Free Press, New YorkSlide25
1. Qualities That Make Innovation Spread
Quality
Description
Relative Advantage
How much better is the innovation that what is currently available? How is the improvement quantified?
Compatibility
How well does the innovation fit with the values, past experience, and needs of potential adopters?
Simplicity and Ease of Use
How easy
or hard is it to understand and use the innovation?
Trialability
How easy or hard is it to experiment with the innovation on a limited basis?
Observable Results
How easy or hard is it
to observe the
results of the innovation?
You should measure any innovation against these 5 factors to assess how difficult adoption is likely to be.Slide26
2. Peer-to-Peer Conversations are CriticalMarketing may spread information about an innovation BUT CONVERSATIONS SPREAD ADOPTION
Face-to-faceSocial MediaWhy?
Adoption involves management of risk and uncertainty (two things lawyers struggle with)
Only people we know and trust can give us
c
redible reassurances that our attempts to change will be successfulSlide27
3. Understanding Needs of User Segments
These are the user segments in any adoption population.Slide28
Remember…Persuasion does not make innovation spread
Innovation spreads as new thing become easier, simpler, quicker, cheaper, and more advantageousEach individual combines multiple user segmentsMay innovate in one area and be a laggard in others
During an innovation project:
Analyze and categorize your user population
Know which segment you are working with; design your activities and pitch your communications accordinglySlide29
Circling Back to LPM and LPI
Will a simple training approach address the full range of innovation segments in your organization?Does a more pervasive Lean Sigma approach fit better?What role does an After Action Review fill?
Is a multifaceted approach necessary to satisfy a broad range of needs in the full population?
Project Management
Process Improvement
Diffusion of InnovationSlide30
Circling Back to InnovationFor internal innovation, what organizational structures or institutional approaches might be used to:
Ferret out the bright ideas of the innovators?Apply diffusion of innovation concepts to promote adoption the innovation?If you are trying to introduce an innovation originating outside the organization, how should you leverage diffusion of innovation concepts to achieve your goal?Slide31
Today’s TopicsLaw Firm of Future – What’s driving change?
Lawyer personality traits
– Help or Hindrance
?
How to promote disruptive change?
What technology innovations should we be monitoring?
Future technology trends from ILTA’s Legal Technology Future Horizons StudySlide32
Objectives of ILTA Legal Technology
Future Horizons Project
Identify key business, legal and IT trends and developments
Build
timeline of emerging technologies and IT developments with high potential legal impact
Explore IT’s transformative role in future legal business models and service differentiation
Highlight strategic imperatives for effective use and management of legal IT
Conducted January – December 2013
Publication – March 2014
6 Sponsors
Combined desk research, interviews with managing partners, CIO’s, vendors, futurists and technologists, global surveys on the business applications of IT (499 responses) and emerging technologies (223 responses)
Key findings are presented on the following pages including the highest ranked responses in the surveysSlide33
Financial Innovation is the New Normal
e.g. Assets ‘Usership’ vs. OwnershipSlide34
Rapid Execution e.g. Superfast ConstructionArk Hotel - Dongting Lake – China – 15 days
http://www.dailymail.co.uk/news/article-2083883/Ark-Hotel-construction-Chinese-built-30-storey-hotel-scratch-15-days.html
“How long do I need to wait to get your due diligence results?”Slide35
Our Technologies are Evolving From Desktop to Mobile ... Slide36
...to Wearable... Slide37
...to Embedded... Slide38
…and totally Connected via
‘The Internet of Everything’
“What happens when the smartest thing in the room is the room itself?”
Madeleine AlbrightSlide39
Speech / gesture / image recognition, integrated analytics, knowledge management, image / video / voice mining, client self-service, intelligent documents, expertise systems, collaboration, secure email, virtual assistants, intelligent agents and collective intelligence
Artificial Intelligence is Going Mainstream
88%
AI advisers / helper apps will structure legal documents and check content generated by lawyersSlide40
Questions?Slide41
AppendixSlide42
-- Working With the User Segments --Innovators (2.5%)
CharacteristicsLove to try and talk
about new things
Don’t expect new things to be easy or perfect
Known by majority as “outliers” or “crackpots”
How to Work With Them
Find them and engage them
Provide support and publicity for their ideas
Invite them to be partners in designing your projectSlide43
-- Working With the User Segments --Early Adopters (13.5%)
CharacteristicsDon’t need much persuading
Leap in once benefits start to become clear
Quick to connect innovation to their personal needs
Love having advantage over their peers; will invest time/money to get it
Like to talk about success
How to Work With Them
Offer strong, face-to-face support during trial period
Reward egos with recognition
Leverage as peer educators
Maintain relationshipsSlide44
-- Working With the User Segments --Early Majority (34%)
CharacteristicsModerately progressive pragmatists
Won’t act without solid proof of benefits
Cost
sensitive and risk averse
Wary of fads; want “industry standard,” and “endorsed by normal folks (like me)”
Want simple, proven, better ways to do what they do; ways that take no time to learn and create no disruption
How to Work With Them
Stimulate interest with prizes or competitions
Share endorsements from credible, respected, similar people
Redesign for ease and simplicity
Simplify instructions & education
Provide strong supportSlide45
-- Working With the User Segments --Late Majority (34%)
CharacteristicsConservative pragmatists
Hate risk and uncomfortable with innovation
Fear not fitting in; will follow mainstream fashions and established standards
Influenced by fears and opinions of laggards
How to Work With Them
Promote social norms rather than just benefits of innovation
Share endorsements
f
rom other conservative folks like them that innovation is normal and indispensable
Emphasize risks of being left behind
Defuse criticism from laggardsSlide46
-- Working With the User Segments --Laggards (16%)
CharacteristicsHold out to the bitter end
See high risk in adopting the innovation
Spend time thinking up arguments against the innovation and are vocal about concerns
How to Work With Them
Provide high levels of personal control over when, where, how, and whether they adopt the innovation
Promote familiarity with other successful innovations
Promote success of laggards who do adopt innovation
Always be mindful:
They might be right; they might be innovators of ideas so new they challenge your paradigms
They can undermine progress with late majorities, so don’t ignore them