Why Your Firm Does Not Innovate

barrier roadsign-30907_640What is holding your law firm back?

You hear about exciting things happening in other industries. You hear about exciting things happening in other law firms. Meanwhile you and your colleagues are told to keep your heads down and just work harder. Do what is expected. Don’t rock the boat.

Innovation is not on the menu.

What is keeping innovation off your firm’s menu? In 2008 I wrote about Claudia Kotchka, an extraordinary business executive who helped lead the revitalization of Procter & Gamble. She did it by using design principles to understand better how P&G’s customers lived their lives and how P&G’s products could make those lives better. In my earlier post, Why KM Needs Good Design, I borrowed from Kotchka’s work to suggest ways in which law firm knowledge management professionals could use design thinking to improve their products and services.

Clearly my focus was too circumscribed. In fact, not just KM departments, but also the businesses that house them can benefit from this approach to innovation. None of this is news. So why don’t more firms try it?

In Kotchka’s view, there are three major barriers to innovation:

  • Complacency. Success makes a company very resistant to trying new things;

  • Risk-aversion. Many big companies have what Roger Martin calls a tension between validity and reliability. The punch line is that companies are very reluctant to take any risks that would upset the profit that flows from reliably making a high quality product that lots of people want to buy; and

  • Functional silos. Kotchka observes that when required to work in cross-functional teams, different functions — such as marketing, finance, and manufacturing — look at problems only from their functional perspectives. However, she noticed that when those team members take off their functional hats and take responsibility for solving the business problem — as start-up teams do – the results are much better.

Chances are you will find at least one of these (or, more likely, all three of them) in your law firm. That is why your firm does not innovate.

Which leaves me with one question: what will you do about this?

[Photo Credit: Nemo]

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