Dan Linna: Preparing CIOs for the Law Firm of the Future #ILTACON

Session Description:

Disruptions in the legal industry are putting pressure on law firms to innovate and rethink how they deliver services in order to stay ahead. Learn about the people, processes, and technologies that law firms will need in the not-so-distant future and the measures and behaviors to put in place now to ensure your organization’s success.

Takeaways:

  • Futurist view of law firms and how they will deliver services.
  • Future role of the CIO.
  • People, processes and technologies that will be necessary for the law firm of the future.
  • Behaviors and measures to put in place now to prepare.

Speakers: xx

[These are my notes from the International Legal Technology Association’s 2018 Conference. I’m publishing them as soon as possible after the end of a session, so they may contain the occasional typographical or grammatical error. Please excuse those. To the extent I’ve made any editorial comments, I’ve shown those in brackets.]

NOTES:

  • What will your law firm be doing in 10 years?  This is the first question you need to answer. Then, ask if you are hiring the right people (and training them) to achieve that reality?
    • you will need lawyers with new skills
      • technologically able, process-focused
    • you will also need developers, data scientists, project managers
  • The market. Over the last 10 years, there has been an increase in demand for legal services. However, demand for law firm services has been flat. This is because in-house corporate counsel are keeping more work for themselves and they have become more strategic about how (and from whom) they purchase legal services.
  • New providers. There are a variety of legal service providers. And now, United Lex has merged its professionals with the lawyers of LeClairRyan. These new approach
  • Legal Departments Priorities.
    • controlling outside counsel costs
    • driving work to outside counsel that demonstrate value. (This leads to the erosion of pedigree when what really matters is performance.)
    • Key attributes of winning law firms
      • solutions focus
      • quality of work
      • legal expertise
      • responsiveness
      • cost-efficiency
      • outcome vs expectation
      • low hourly rates counts, but it is the least important of these factors
  • Performance and Quality Matter. Research by AdvanceLaw indicated that on average the AmLaw 21-200 outperform the AmLaw 20.
  • Threats to law firm business. (According to Altman Weil)
    • corporate law departments are in-sourcing legal work
    • client use of technology
    • alternative legal providers
    • alternative law firms
  • Why are so few law firms changing?
    • Partners resist most change effortts
    • Most partners are unaware of what they might do differently
    • We are not in enough economic pain to motivate more significant change
    • clients aren’t asking for it
    • we lack time or organizational capacity
    • our service delivery model is not broken so we’re not trying to fix it
    • other law firms like ours are not changing
  • Legal Services Innovation Index. Catalogs law firm innovation and then index the work done by individual law firms. For more information see: https://www.legaltechinnovation.com/
  • How do you innovate? You need to focus significantly upon sustaining innovation. It’s not just about disruptive innovation
  • Three Types of Innovation (CapGemini):
    • 70% = core innovation
    • 20% = adjacent innovation
    • 10% – transformational innovation
  • Biggest Issues CIOs face today
    • security management
    • aligning IT initiatives with business goals
    • improving IT operations/systems performance
    • cultivating the IT / business partnership
    • cost control/expense management
  • Hurdles to digital transformation (CapGemini)
    • Cultural issues
    • presence of archaic IT systems and applications
    • lack of digital skilss
    • lack of clear leadership vision
  • Law Firm CIOs
    • Must be a strategic leader in your organization
      • how do you manage change?
      • how do you get others to buy into your ideas?
      • how do you lead up, down, across?
    • How do you contribute to a culture of innovation
  • Knowing the business
    • Law firm CIOs must know their clients’ business
      • External clients?
      • Internal clients?
        • Have you spent time developing relationships and rapport with firm lawyers?
        • Have you spent time understanding how they work?
  • Start with technology
    • EVERYONE is a technology company
  • Legal Technology
    • Basic — MS Office, metadata, eDiscovery, cloud computing, case management
    • Intermediate — document automation, expert systems
    • Advanced — machine learning, AI
  • What is artificial intelligence in law (today)?
    • Rules-driven AI  — expert systems, robotic process automation
    • Machine learning — Walmart is using Legalmation (to ingest complaints, draft a response and discovery questions) before engaging outside counsel
  • Why is so much legal work unstructured?
    • lack of standards and best practices
    • lack of metrics, including for qality
    • Why does it matter? You cannot automate chaos!
  • Steve Harman: We need to move legal services from Art to Science. Lawyers need to change from Artisans to Engineers.
  • How to approach this?
    • Focus on Process
      • disaggregate legal work
      • then figure out who is best postioned to deliver that work
      • systematic reengineering of work processes results in over a 50% improvement in performance
  • Toyota’s Improvement Kata
    • get the direction of challenge
    • grasp the current condition
    • ndefine ext target condition
    • experiment / test
  • 21st-Century T-Shaped Lawyer — able to function with the following skills:
    • Business of law
    • process improvement
    • project management
    • knowledge management
    • metrics data analytics
    • technology
  • For information on LegalRnD, check out YouTube.
  • See the Institute for the Future of Law Practice
    • mostly focused on jobs in corporate legal departments
  • What are law firms doing now?
    • some conversations with clients re: budget
    • some conversations about project staffing
    • some management visits to key clients
    • only 20% conduct post-matter reviews with clients
  • Action Items:
    • ask yourself: what will our firm be doing in 10 years?
    • put the client at the center
    • commit to disciplined continuous improvement and innovation
    • become data-driven
    • create a data plan
    • collaborate with clients, vendors, and law schools
    • identify new products & service to provide value to clients
    • go to Gemba! Embrace empathy!
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