P2P

Spring2020

Peer to Peer: ILTA's Quarterly Magazine

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61 I L T A N E T . O R G Senior leaders that embrace innovation will help foster change throughout the firm. At the end of the day, I want to work with law firms that want to work with me. I don't want to be a burden or an imposition within a law firm. Big or small, I want to dig deep into a firm's problems and try and tackle whatever issues they face together. I want the incorporation of MinuteBox within a law firm's workflow to be a mutually beneficial experience that creates a strong relationship of trust and understanding. James' Observations Thanks for those great insights, Sean. I think it's valuable to see what attributes generally correlate with innovative law firms. Still, sometimes firms with the attributes you covered still remain ineffective when it comes to preparing for the future. Why? I think that beyond these attributes one must consider the circumstances within a firm. The proper circumstances allow these attributes to have the desired effect, or not. For example, consider David Maister's observation that expertise-based work is on the opposite end of the spectrum from efficiency- based work – and that "every aspect of a practice group's affairs, from practice development to hiring, from economic structure to governance, will be affected by its relative positioning on this spectrum." There is unavoidable tension between innovation efforts, which generally aim at efficiency, and law firms taking pride in their specialized expertise. Even if you have the right attributes in place, so many lawyers and others will be operating strictly to optimize expertise. One type of positioning is not inherently better than the other. But if a firm cannot adapt its business model to help users justify using efficiency-based innovations then it will be nearly impossible for them to do so. While it might appear from your end that certain law firms are effective or ineffective based on certain attributes, my experience working within these firms tells me something deeper is going on within firms, whether they realize it or not. As change management expert John Kotter points out: "we underestimate the subtle and systematic forces that exist in virtually all organizations". Being proactive about risk To your point, risk is always present. But I'm not sure if a firm's risk tolerance is a reliable indicator for finding correct solutions. As Clayton Christensen points out: "many of the executives who have been unable to create sustained corporate growth have evidenced a strong stomach for risk". If there's not much correlation between risk tolerance and sustained growth in business generally, it's safe to assume the same goes for law firms. Consider a firm that has decided to proactively manage risk: how does it accurately assess those risks? The problem with large firms seeking growth is that the exciting growth markets of tomorrow are small today. Even if a firm wants to pursue a certain opportunity, its size and business model can still make it impossible to justify doing so. Even though firms are indeed aware of industry trends and have smart people working on preparing for the future, an organization's size and business model can skew its perception of risk. So no matter how much a firm might understand it needs to change, it cannot justify doing so given the constraints it has built for itself. As Christensen puts it: "[Disruption] is not a story of incompetence. It is a story of perfectly rational, profit-maximizing decisions." Streamlined Processes for Implementing New Technolo As someone who works in innovation, I know that at times it can indeed feel like there aren't any processes. Some firms are better at this than others, but every law firm already has processes for implementing and managing new technolo. Given the amount of technolo involved in every law firm (e-billing, document management system, accounting software, laptops and mobile devices, "Having an innovation fund doesn't guarantee a firm will invest in the right technology."

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