Issue link: https://epubs.iltanet.org/i/7694
www.iltanet.org The Business of Law 25 framework of Lean Six Sigma can streamline internal operations and translate conversations about value into lower costs, higher quality and levels of client satisfaction that result in larger portfolios of work. In doing so, law firms may also discover how to clear the common hurdles to the successful deployment of Lean Six Sigma in professional services. The inviSiBLe hanD Whether as a result of new leadership, large technology implementations or growth through mergers, most law firms have pursued operational excellence by incorporating "best practices" and by benchmarking their technology systems and programs against industry standards. While appreciating the merit of these approaches, Michael George, Ronald Snee and Roger Hoerl, formerly at Toyota, DuPont and GE respectively, contend that service functions and businesses operate with more complexity and less technical and management infrastructure than their manufacturing counterparts, which results in enormous amounts of activity that have no value from the client's perspective. Since at least half of the work to deliver services is non- value-added, George contends that Lean Six Sigma can often reduce the cost of service processes by 30 to 80 percent, increase the speed of service delivery by 50 percent, and the capacity of teams by 20 percent. Undoubtedly, law firms fit this profile because the functional areas serve hundreds of partners who are promoting their own practices and cross-selling others. Often law firms lack the line of sight necessary to connect cost and value, because processes remain undocumented; the division of labor hinders communication across functional and legal areas; and firms lack a common language with which to discuss strategies for improvement. Furthermore, billing by the hour focuses management's attention on utilization and realization versus metrics like cycle time and process efficiency. By researching how Lean and Six Sigma methodologies can be applied to legal service delivery, law firms can start to gain visibility into the themes and variation of their workflows and understand how to orchestrate projects that minimize the unintended consequences of the billable hour. Thinking Lean Lean and Six Sigma address these environmental factors through the application of methods and tools originally developed in the Toyota Production System and Motorola's Quality Initiative, and then later at General Electric under Jack Welch. As these process improvement methods have evolved in services, they have become problem-solving strategies that fundamentally change the way individuals think and teams collaborate. In particular, Lean activities are advantageous because they draw on the knowledge and experience of people doing the work. In a recent interview with iSixSigma Magazine, Lisa Damon, Chair of Seyfarth Shaw's Labor & Employment Department explained, "'There are definite hierarchies or strata in all law firms.' Seyfarth Shaw has been replacing the old hidebound structure that reinforced division with a team dynamic that brings partners, associates and support staff together. 'People...see the full value each person can bring to the table, regardless of what their title or position in the firm may be.'" Sylvia Coulter, a Six Sigma Green Belt and Vice President and Chair of Hildebrandt Baker