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Lawyers must take the initiative and innovate ~ here's how

I thought this report by Codexx would inspire some lawyers to take up the challenge to innovate (although you may already be doing so, of course). The report draws on the lessons learned by Codexx as a result of their deep understanding of the legal sector, drawn principally from their work with UK top 50 law firms. The results are revealing and make compelling reading for firms of all sizes.

In a nutshell the message is that law firms need to innovate to meet the challenges they face today and in the future, but the report concludes that lawyers are ill equipped to do so. They are too busy with the delivery of legal services and prefer their comfort zone rather than pushing the boundaries. They lack the skills for product development, process improvement and strategic planning (other than financial strategy).

It's a tricky because it is a knee jerk reaction for many lawyers to put client work above all else, and innovation is certainly not the only casualty. Sales and marketing also gets sidelined. But increasingly law firms realise that they are competing with sales led organisations who do innovate and still, somehow, manage to get the legal work done as well.

When reading the following list (see below) of the top 10 lessons learned by Codexx, it struck me that several of the problems are linked to the personality of decision makers which impacts on the culture of the firm as a whole.

1. Many innovation methods developed for product innovation can be successfully applied to law firm innovation
2. There are major cost and performance improvements through law firm re-engineering
3. There are significant opportunities for law firms to differentiate their services through innovation
4. Law firms typically lack formal resources and staffing for innovation – we have to help build this through skills transfer in projects
5. Law firms have a poor understanding of their clients’ business and this limits their ability to innovate
6. The partner-led governance model in law firms slows change
7. Lawyers innate conservatism is a challenge - “Lawyers don’t do radical”
8. Approaching innovation in a structured and long term way is key to sustainable success
9. Getting partner & fee earner involvement is key, but is challenged by utilisation culture
10. Lawyers can innovate – when they are enabled

Although backed by only anecdotal evidence, in my experience the really successful lawyers are decisive and passionate personalities. They drive their best decisions through partners' meetings with confidence and refuse to boggle over the trivial details. They apportion their time between innovation, client work and sales and marketing and ensure that each is afforded due respect. They are accountable and supportive. As a result they make things happen and inspire others.

By comparison, those lawyers who bog themselves down in three meetings where one would do waste valuable time and lose the impetus to 'just do it'. They kill enthusiasm and encourage others to play it safe which means focusing on fee paying client work. It is the 'bird in the hand philosophy'. The size of the firm makes very little difference. I really believe that it is the personalities of the decision makers that impacts most significantly on the firm's ability to innovate, deliver and market itself successfully.

The full Codexx report is available here with a more detailed analysis.

[Drawn from a presentation by Alastair Ross, Director of Codexx. ‘Making law firms more innovative’ at the ‘6th International Innovation Lab Conference in London on Friday 8th July 2011. The conference is run by the Advanced Institute for Management and hosted by Professor John Bessant of the University of Exeter Business School].

Posted: 28th July 2011

Tags: Articles, HR Web Service, Strategy, Innovation

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