publication of the International Legal Technology Association
Issue link: https://epubs.iltanet.org/i/550988
ILTA WHITE PAPER: JULY 2015 WWW.ILTANET.ORG 18 by business development (BD) or IT. As a result, the firm focuses insufficient attention on overcoming lawyer resistance to sharing client and relationship information or the fundamental changes in behavior needed to adopt the discipline of recording client interactions in a shared repository. Firms might not analyze lawyer workflows deeply enough to know how difficult it will be for lawyers to use the system, even if they will share the information. When these gaps occur, the CRM system can devolve into a contact management or marketing communication tracking system, rather than becoming the powerful client relationship tool intended. The greatest success is achieved when both KM and BD competencies are engaged in these projects. When a firm has both KM and BD departments in place, ensure the two work together as an alliance. As the press has documented, Freshfields went so far as to formally combine its KM and BD departments under its chief knowledge officer for several years. Other firms have seconded KM lawyers to work closely with BD on projects to implement and sustain the initiatives. Firms without a formal KM function must fill the KM gap when trying to implement client-focused KM. PROCESS-FOCUSED KM Process-focused KM responds to client expectations for better, faster and cheaper legal services. Before 2007, this goal posed a real challenge for KM because improving efficiency meant reducing billable hours, which worked against improving profitability if fees were based on hours billed. The Great Recession increased client demand to keep costs down, and firms now acknowledge that efficiency is not only here to stay, it is also an opportunity to grow business. A real business benefit comes from improving efficiency and reducing the client's costs, while also increasing the firm's profit. This transformation has made KM a must-have rather than a nice-to-have for firms and has given rise to today's most complex and demanding KM capability: legal process improvement (LPI). The first step in LPI is agreeing that some aspect of legal work is a process, rather than an art; and, as a process, it is repeatable and able to be improved. This is no small hurdle. However, once agreement is reached, many methods are available to analyze the process, identify both waste and opportunities for improvement, and ultimately improve the process. ARCHITECTING KM: BLUEPRINTS FOR NOVICES TO EXPERTS Firms with existing KM programs are well-positioned to extend them organically into LPI, with KM in either a supporting or leading role. The natural synergies include: • KM lawyers understand legal processes, so they can readily identify those that are the most repeatable (when properly trained in process improvement methodologies, they can then lead process mapping and process improvement exercises) • Know-how materials are integral to process improvement as knowledge resources must be delivered "just in time" within an expert system (KM lawyers can repurpose existing materials or create new ones and ensure materials remain aligned with evolving systems) The Great Recession increased client demand to keep costs down, and firms now acknowledge that efficiency is not only here to stay, it is also an opportunity to grow business.