Embracing Sustainable Innovation Initiatives to Build a Future-Focused Library
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Ron Friedmann's presentation at AALL 2019
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Embracing Sustainable Innovation Initiatives to Build a Future-Focused Library
- 1. #AALL19 Sustainable Initiatives for Future-Focused Library Current State of Legal Innovation July 2019Adapted from 2019 AALL Annual Conference session 1
- 2. #AALL19 Session summary AALL 2019 Annual Meeting and Conference July 14, 2019 Hot Topic: Embracing Sustainable Innovation Initiatives to Build a Future-Focused Library 2
- 3. #AALL19 Ron Friedmann, LAC Group Darin Fox, University of Oklahoma Law Library Marlene Gebauer, Greenberg & Traurig, LLP Jean O’Grady, DLA Piper Speakers and Moderators 3 Speakers: Moderator:
- 4. #AALL19 Economic Disruption 01 4 Common across the entire economy, past and present
- 5. #AALL19 5 Fixed phone lines disrupted by mobile phones and VOIP
- 6. #AALL19 6 Print newspapers and magazines disrupted by digital media
- 7. #AALL19 7 Traditional retailers disrupted by e-commerce
- 8. #AALL19 8 Driverless cars poised to disrupt automotive and transportation industries
- 9. #AALL19 Legal Disruption 02 9 Law firm fiction?
- 10. #AALL19 2008 10 2008: Biggest changes in Big Law in our lifetime...
- 11. #AALL19 … but not much disruption to AmLaw 100
- 12. #AALL19 Law firm fact: Fierce competition drives innovation 03 12
- 13. Why Innovation Fever Now? Flat growth Drive for value Competition within own segment #AALL19 13
- 14. #AALL19 14 (Altman Weil 2018 Chief Legal Officer Survey) Law firms have been losing business to their clients
- 15. #AALL19 15 (ALM, January 2019) Top firms faring best but, inflation adjusted, even their growth only so-so. Market flat overall.
- 16. #AALL19 16(2018 Altman Weil CLO Survey) Clients want lower costs, greater efficiencies
- 17. #AALL19 17 (BTI Consulting) Breadth of services Advising on Business Issues Brings together firm resources Unprompted Communication Anticipates Client’s Needs Deals with Complexity Innovative Approach Deals with Unexpected Changes Keeps Clients Informed Handles Problems Legal Skills Meets Core Scope Quality Products Understand the Client’s Business Client Focus Commitment to Help Value for the Dollar Clients also want better service
- 18. #AALL19 Flat Demand Compels Change More than ever before, in the face of evolving technology and the growth of alternative legal service providers in market share, it means becoming more efficient and adaptable in the way a firm delivers legal services. - Citi 2019 Client Advisory Success in this market will likely come to firms who are most nimble in their response to client demands for a more efficient delivery of legal services. - Citi 2018 Client Advisory 18
- 19. #AALL19 The state of legal innovation 04 19
- 20. Innovation Fever 1 - Branded Law Firm Initiatives 20
- 21. Innovation Fever 2 - Recent Headlines 21
- 22. Innovation Fever 3 - US Legal Innovation Jobs 358 Titles in US law firms including “innovation” 22
- 25. #AALL19 Innovation issues + ingredients 05 25
- 26. The Key Issues Activity > adoption Client uptake Top-down vs. bottoms-up 26 Clients say they want innovation, but little evidence they reward it or punish lack of it
- 27. #AALL19 Local Area Networks Document Management Internet Email Intranets eDiscovery Spreadsheets Word processing PCs Online legal research Decision trees Document assembly 1980s 00s 2020+ 1990s 2010s Mobile phones + email Social media Email Cloud eDiscovery ? Smart mobile devices Intranets Social media eDiscovery Cloud AI Blockchain Legal analytics Collaboration software Innovation Happens Quickly but Adoption Takes Time Legal Market Innovation Timeline + Uptake DEGREE OF UPTAKE: Red - LOW Yellow - MODERATE Green - HIGH 27
- 29. #AALL19 1. Problems to solve (more important than ideas) 2. Practice understanding 3. Proponents / supporters (more important than individuals) 4. Budget 5. Receptive users 6. Skills (tech, data analytics, persuasion, etc.) 7. Patience and perseverance Innovation Ingredients (partial list) 29 And if possible, the final ingredient...
- 32. #AALL19 Conclusions 1. Focus on incremental change, not disruption 2. Stay aware of stumbling blocks 3. Put the innovation ingredients in place 32
Editor's Notes
- Expand on partial next slide… Agile and MVP
- Expand on partial next slide… Agile and MVP
- To frame legal market, a quick look at the overall economy. Disruption is common across the economy, past and present. Some examples.
- Copper line phones disrupted by mobile phones and VOIP When is the last time you heard complaints about Ma Bell or a Baby Bell? They are irrelevant as copper line providers.
- Digital media disrupts newspapers and magazine > underway still
- Online shopping disrupts traditional retailers - retail shrinking and changing rapidly in response. Toys R Us one of the more prominent examples but see also MSM for regular reports of other retailers going under. > underway still
- Driverless cars may alter, if not disrupt traditional car makers and whole industry supporting, including infrastructure We don’t know but it generates a lot of talk - and major corporate moves >> Possible in our lifetimes
- While disruption and rapid change occurs regularly in our daily lives, is that true for the legal market? Not really...
- 2008 was biggest change in Big Law in my lifetime. Led to and continues to support commentators predicting disruption… Data on smaller law is harder to find.
- But as Jae S Num showed (16 March 2018) in this great dataviz, Am Law 100 arguably not that impacted https://medium.com/@jaesunum/dataviz-and-realtalk-about-big-laws-new-normal-ae4a23683685 In the year+ since she published this, more mergers but not major dissolutions. >>> THIS IS NOT THE PICTURE OF DISRUPTION!! <<
- In aggregate, the Am Law 100 have experienced little growth since the 2008 crash. Revenue is up but most of the increase is a result of rising rates. Firms have lost share to clients bringing work in-house, though recent data suggest that trend may have peaked. Clients are pressuring firms to deliver more value. There is anecdotal evidence that they use law firm innovation initiatives as a proxy for value. Also driving innovation is intense competition among peer groups of firms. When differentiation is hard… advertising innovation helps. Firms outside the top 10 (maybe 20) face some risk of losing some business to alternative providers, which advertise how they are far more “tech enabled” than law firms. There is some perception that innovation initiatives counter this. [Statements that firms have lost work to ALSP are IMO, now well-supported by good quality data.] Partners at large firms also face peer pressure. This point is related to competition but there is also, independently of competition, a sense that “my firm has to keep up with peers - if they are doing innovation, we need to do it too”
- Law firm have lost business to their clients
- Adjusted for inflation, would look worse The top firms have a different experience than those outside the top - most are flat Within tiers, that drives heavy competition https://www.law.com/2019/01/17/there-is-more-than-one-big-law/ ALM, 17 Jan 2019
- 2018 Altman Weil CLO Survey, page 45. Report released November 2018.
- https://www.bticonsulting.com/17-activities#we-have-proof Visited 21 Jun 2019 - 09:17AM First published in 2016
- This is a sampling of innovation initiatives. It is a partial subset of those that firms have branded. While count of the number of firms “doing innovation” will vary by the criteria used, by any measure, it is up dramatically in the last few years.
- More anecdata supporting the innovation fever… A few years ago, we would not have seen so many headlines in six months. LINKS to and dates for 2019 HEADLINES (1 LATE 2018) COLUMN 1 DLA - https://www.law.com/americanlawyer/2019/05/02/hedging-against-recession-dla-piper-bets-on-data-and-tech-programs/?slreturn=20190403080718 May 2 WSGR: https://www.law.com/therecorder/2019/06/05/with-new-chatbot-track-for-summer-associates- wilson-sonsini-puts-ai-to-the-test/ June 5 WSGR https://biglawbusiness.com/wilson-sonsini-expects-millions-from-new-app-at-7-500-a-doc June 3 Slaughter & May - https://www.artificiallawyer.com/2019/02/27/slaughter-and-may-launches-its-own-legal-tech-programme-apply-now/ - Feb 27 -- COLUMN 2 Orrick - June 17 - https://www.law.com/americanlawyer/2019/06/17/crazy-ideas-welcome-how-orrick-is-working-to-build-an-innovation-culture/?slreturn=20190518082013 Fenwick - https://www.law.com/legaltechnews/2018/12/20/how-fenwick-labs-growth-is-a-microcosm-of-legal-techs-evolution - 20 Dec 2019 Lowenstein - June 4 - https://www.law.com/njlawjournal/2019/06/04/27293/?slreturn=20190518082529 Greenberg - June 11 - https://biglawbusiness.com/greenberg-traurig-not-practicing-law-launches-innovation-subsidiary Linklaters: Feb 27 https://www.artificiallawyer.com/2019/02/27/linklaters-makes-1st-startup-investment-in-nivauras-20m-funding-ao-orrick-also-invest/ Clifford CHance (CC): March 26 - https://www.law.com/legal-week/2019/03/26/eight-banks-snap-up-ccs-digital-contract-product/
- Again, the result even 3 years ago would have been way lower So by any reasonable metric, innovation is exploding. What does it mean… why and what do we make of it? Next slide LinkedIn search, 19 Jun 2019 https://www.linkedin.com/search/results/people/?facetGeoRegion=%5B%22us%3A0%22%5D&facetIndustry=%5B%229%22%2C%2210%22%5D&origin=FACETED_SEARCH&title=innovation Note: On LinkedIn, the number of profiles one can view depends on the number of connections. Consequently, running the same search may yield different results than when Ron Friedmann ran this.
- These are results of a survey that this panel conducted in June 2019 for this panel
- These are results of a survey that this panel conducted in June 2019 for this panel
- Innovation activity is way higher than adoption. Client bark > bite. Clients say they want innovation but (1) they don’t innovate much and (2) little evidence that they reward innovation or punish lack of it Open question is what drives the best result: top down, central effort; bottoms-up effort; practice-centric; other IMPLICATIONS: Some practices are changing how they work because of innovation. But it’s probably not as fast as we think. One example of a rapidly adopted change is machine learning tools that accelerate due diligence review. . . (EG: Kira or Luminance) Even at firms that use an ML tool, it does not dramatically change the work overall. It eliminates some drudgery and allows more thinking and analysis.
- Innovation activity is way higher than adoption. Client bark > bite. Clients say they want innovation but (1) they don’t innovate much and (2) little evidence that they reward innovation or punish lack of it Open question is what drives the best result: top down, central effort; bottoms-up effort; practice-centric; other IMPLICATIONS: Some practices are changing how they work because of innovation. But it’s probably not as fast as we think. One example of a rapidly adopted change is machine learning tools that accelerate due diligence review. . . (EG: Kira or Luminance) Even at firms that use an ML tool, it does not dramatically change the work overall. It eliminates some drudgery and allows more thinking and analysis.
- Expand on partial next slide… Agile and MVP
- While not always possible, innovation projects that involve clients likely will gain more traction