Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.
The next generation of elite law firms may have little in common with today's leading global providers of legal services. Whereas historically top-performing law firms combine stellar talent with marquee clients, brand reputation and client-focused excellence to rise to the top, future leading law firms are equally likely to rise to power using a distinctly different recipe: namely, a mixture of market savvy, strategic agility and operational effectiveness powered by data.
The notion of harnessing the power of data is not a new one. Pundits across sectors have been touting the utility of big data and artificial intelligence for more than a decade. Yet few companies — in any industry — have been able to truly transform data into competitive advantage. The primary obstacle? A noteworthy 93% of companies reported people and process are standing in their way, according to a NewVantage survey of C-suite executives as reported in Harvard Business Review.
These results are not especially surprising. Getting people to think and act differently is a daunting task. The wealth of available data has grown exponentially in the past decade. People's abilities to synthesize and apply data, however, has not. (Prompting a McKinsey Global Institute report to denote this analytical capability as growing in value as the value of data declines.) This dynamic is especially true in law firms. Lawyers themselves, though analytical, are rarely trained in how to interpret and apply data to the business of law. Trained analysts, even in Big Law, are rarer than the elusive tax-paying billionaire. Compound this absence of analytical capabilities with historically hierarchical structures, a shortage of business acumen and cultures where years of experience outweighs almost any other factor (including data) and most law firms are, decidedly, the antithesis of data-driven organizations.
Law firms face a combination of not easily surmountable obstacles in their pursuit of a data-driven future. Each of these hurdles presents a challenge in its own right. Combined, they can stymie even the best-intentioned and most well-equipped. The most well-worn path for law firms is tackling the "data issue" in increments or with a singular focus (e.g., creating a new taxonomy or deploying a technology solution). This approach, though, ignores the way in which data weaves across functions throughout the firm as well as the critical shifts in mindset required to effectively integrate data into daily decision-making. The truly exceptional law firms — tomorrow's elite — will approach their transformation to become data-driven on multiple fronts, calling on cross-functional teams and leaders to drive their evolution.
The most common steps on the journey to become a data-driven law firm:
The journey to becoming a data-driven law firm requires a holistic, well thought-out plan, replete with a vision of what's to come. For inspiration, MIT's Sloan Management Review offers select case studies of various organizations that succeeded in making the shift. And perhaps for urgency, the McKinsey Global Institute's report, "The Age of Analytics: Competing in a Data-Driven World," predicts the advancement of deep learning technology may replace 31% of what lawyers do — or $61.8 billion globally according to their calculations. What more reason does a firm need to explore what it takes to be one of tomorrow's elite?
*****
Marcie Borgal Shunk is president and founder of The Tilt Institute, a firm dedicated to unveiling new perspectives on law firm growth through intelligence, innovation and intuition. She specializes in helping law firm leaders make better, data-driven business decisions. Shunk is also a member of the ALM Intelligence Fellows Program. More information on the ALM Intelligence Fellows Program can be found here.
ENJOY UNLIMITED ACCESS TO THE SINGLE SOURCE OF OBJECTIVE LEGAL ANALYSIS, PRACTICAL INSIGHTS, AND NEWS IN ENTERTAINMENT LAW.
Already a have an account? Sign In Now Log In Now
For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473
In a profession where confidentiality is paramount, failing to address AI security concerns could have disastrous consequences. It is vital that law firms and those in related industries ask the right questions about AI security to protect their clients and their reputation.
Practical strategies to explore doing business with friends and social contacts in a way that respects relationships and maximizes opportunities.
The International Trade Commission is empowered to block the importation into the United States of products that infringe U.S. intellectual property rights, In the past, the ITC generally instituted investigations without questioning the importation allegations in the complaint, however in several recent cases, the ITC declined to institute an investigation as to certain proposed respondents due to inadequate pleading of importation.
To gauge the level of risk and uncover potential gaps, compliance and privacy leaders should collaborate to consider how often they are monitoring third parties, what intelligence they are gathering with and about their partners and vendors, and whether their risk management practices have been diminished due to cost and resource constraints.
As the relationship between in-house and outside counsel continues to evolve, lawyers must continue to foster a client-first mindset, offer business-focused solutions, and embrace technology that helps deliver work faster and more efficiently.