case closed? running your knowledge management operation like a business. the challenge in law firms
TRANSCRIPT
CASE CLOSED?RUNNING YOUR KM OPERATION LIKE A BUSINESS
The Challenge for KM in Law Firms
CARLA SAPSFORD NEWMAN
SUMMARY OF PRESENTATION
• Lessons from the private sector: how you need to integrate KM as a business process (not an add-on IT solution)
• Make links to the firm’s expansion and business plans• Look at KM organisation-wide• Assign value to your core problems – KM needs to be
solution oriented• Offer KM solutions to clients
Law is a business, not just a practice. Knowledge management has to be looked at in the context of running a profitable business and not just an intellectual exercise.
PRIVATE SECTOR CASE STUDY: FACTOIDSKM @ McKinsey
• Spend 10% of annual revenues on KM• Everyone MUST write a lessons learnt report following each
project• Reports are in ppt format, ‘anonymised’and enjoy a high reuse
rate• Experts determine metadata including shelf life• High value reports are considered ‘knowledge objects’ and
finalised by professional editor• Shared via a bespoke intranet• Start of each new project: 50% of time spent on prior project
research and 50% calling other people in their networks• Personal details are kept up to date, key for next assignment• Staff appraisals: 20% of final score linked to KM
IT ALONE CANNOT SAVE YOU
Technology has to be part of your solution.
But IT alone can NEVER replace a business-focused KM strategy.
You need a results-oriented process.
THE BAD NEWS...
KM is not just a knowledge sharing problem. It is a business problem.
For every one of these marriages / mergers…
You have many potential problems integrating knowledge.
MERGER CONTEXT...
• We’ve seen an unprecedented number of mergers in recent years.
• Why would firms merge and take over smaller firms to begin with?
... Because it makes business sense
WHO ARE YOUR STAKEHOLDERS?
• Define who are your stakeholders: • Clients?• Partners?• Local law firms joining your global firm?
• What problems do your stakeholders need to solve?• How can you quantify the cost to the firm of NOT solving
them?• How can you quantify the savings to the firm of resolving
them?
If you can’t measure it, you can’t manage it…
PROBLEM EXAMPLE 1: A LACK OF COHESION CONFRONTS MULTINATIONAL FIRMS…
• Documentation tracking and access• Billing/fee variations• Culture clashes• Synchronizing business practices• Lack of coherent KM strategy• Lack of coherent business strategy
...Pick a problem, tackle and value it.
EXAMPLE 2: COMMON CHALLENGES
• Haphazard tagging and filing of legal briefs within single law firms
• A lack of awareness of the nuances of diverse jurisdictions
• Working in multiple languages
WHAT ARE FIRMS DOING ALREADY?
• Knowledge management initiatives sit typically with business development/marketing or learning and development.
• The leading knowledge management initiatives implemented have been precedents/forms, legal research tools and systems, a best practice document repository and practice group meetings.
• Almost half have rolled out knowhow files, skills and expertise locators, clause libraries, professional development programs, client relationship management systems and third-party contact databases.
WORLDWIDE RESEARCH: SUMMARY FINDINGS
• There is not enough alignment of knowledge management with the firm's business strategy and targets.
• Most firms have a central KM function, with practice groups.
• A little over half have a formal KM strategy.
• A small majority develop a business case. If you as a law firm can’t make the business case for KM, its sustainability is more fragile.
CONCLUSIONS…• The most common KM tools are great, but
they don’t make the business case• Partners and KM partners need to also
consider the business of law, not just the practice
• Shake the belief that sharing tacit knowledge devalues staff
• Need to shake the mentality: ‘You win, I lose’
• KM needs to make the entire organisation run better
• KM needs to make the firm more profitable
WHAT THE RESEARCH SAYS…
• The top objective of knowledge management is improved client service delivery and giving clients access to the firm's KM know-how.
• Clients expect firms to be active in KM. Clients are focused primarily on the outcome of a firm's approach as it relates to client service delivery.
• Improving the quality and speed of client service is the main objective. • Despite the above findings, only a small majority of firms surveyed promote
their knowledge management efforts to clients.• Is there a business opportunity here? Example from a recent handover
situation…
RESULTS (Continued)…
• There is a heavy dependence on informal, collaborative relationships with other functions in the firm
• It can be a challenge for KM organizations to engage the entire firm
• More than half the firms do not have a KM committee with leads from other functions
• Most agree that not enough is done to reward lawyers for contributing to KM, or todemonstrate the value of KM to senior management
• Very little is done in terms of competitor/market intelligence
ONE MULTINATIONAL FIRM, MANY CULTURES
However, this is a huge opportunity for your KM advancement strategy.
Example from a major energy multinational…
WHAT’S YOUR STRATEGY?
For the majority of law firms, the KM strategy is not tied into the business strategy.
IDENTIFYING YOUR WORK, AND ITS VALUE, IS WORTH QUITE A LOT TO YOUR ORGANISATION.
STEP BY STEP…
1. What’s the firm’s business strategy?
2. What’s the 5-year business plan?
3. What’s the annual operating plan (budget?)
4. What are your tasks and targets?
5. Align your KM strategy with the overall business.
Q&A
