Creating a Lean Foundation for Innovation in Professional Services Firms

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The document discusses legal innovation and how Lean principles can help professional services firms innovate. It outlines trends driving the need for innovation, such as technology, globalization, and commoditization. Examples of innovations in law include knowledge management, legal project management, alternative pricing models, and process improvement. Lean principles like eliminating waste, adding value, and defining value from the client's perspective are presented as ways to innovate work processes. Potential challenges to innovation are also addressed, such as a lack of processes, resistance to change, and concerns about billable hours.

For Innovation in Professional Service Firms
Laying the Foundation
4
©Gimbal Canada Inc., 2016. All rights reserved.
Gimbal - Lean Practice Management Advisors

Karen Dunn Skinner & David Skinner
Gimbal Canada Inc.
5

Objectives
What’s new and innovative in law
these days

How Lean can help

What can go wrong…
6

©Gimbal Canada Inc., 2015. All rights reserved.
Trends in Law Today
Technology, Globalization, Commoditization
Excess capacity, DIY law
7

Is Legal Innovation
an Oxymoron?
Big, traditional, conservative
and change-averse
organizations

Highly profitable (although a
little less so than before)

There’s not a lot of incentive to
innovate
8
Victor Habick/freedigitalphotos.net

“Yes…if”
not
“No…because”
Think about how you can make
something happen, not the
reasons why it might not work
9

©Gimbal Canada Inc., 2016. All rights reserved.
What’s driving it?
Clients

Technology

A tough economy

Competition
10

©Gimbal Canada Inc., 2016. All rights reserved.
What “Innovations”?
Knowledge Management

Legal Project Management

Pricing and Alternatives to the
Billable Hour

Process Improvement
11

Lean and LPM
To get value from
legal project
management, you
have to create a
foundation of efficient
processes
12

Lean and Pricing
Transparency and
Predictability

Flat fees

Budget estimates

Profitable pricing
models
13

©Gimbal Canada Inc., 2016. All rights reserved.
The Pressure Equation
14
Pressure
Volume of Work
Time Available
=

©Gimbal Canada Inc., 2016. All rights reserved.
Small Changes Work
Saving 1 minute, 5 times a day means

20 hours/year
If five of you do the same thing, you
get

2.5 free weeks a year
15

©Gimbal Canada Inc., 2016. All rights reserved.
The Essence of Lean
16
Eliminate waste
Add value

©Gimbal Canada Inc., 2016. All rights reserved.
So What’s Value?
Three key value criteria:

1. does your work move
the matter forward?

2. is it what the client
wants and is willing
to pay for?

3. is your work done
right the first time?
17
stuart miles / freeditigalphotos.net

©Gimbal Canada Inc., 2016. All rights reserved.
Lean’s Eight Wastes
18
Eight Wastes
Defects
Inventory
Transport
Non-
utilized
talent
Waiting
Over-
production
Extra
processing
Motion
©Gimbal Canada Inc., 2016. All rights reserved.

©Gimbal Canada Inc., 2016. All rights reserved.
DMAIC - A Powerful Approach
Define: What does the client want?

Measure: How do we work to get that result?

Analyze: How can we improve?

Improve: Let’s create a better process

Control: Are we following the new process?
19

©Gimbal Canada Inc., 2016. All rights reserved. Used under license.
20

©Gimbal Canada Inc., 2016. All rights reserved. Used under license.
Process Map
21
Image © Gimbal Canada Inc.

What Could Possibly Go Wrong?
Processes? What
processes?

It’ll never work

If I can’t bill for it,
it’s not worth it
22
Wikimedia Commons, full cite at http://bit.ly/1E4soFi

©Gimbal Canada Inc., 2016. All rights reserved. Used under license.
23
Image: freedigitalpphotos.net/africa
Won’t This Mean Fewer Billable
Hours?

©Gimbal Canada Inc., 2016. All rights reserved.
Gimbal
Karen Skinner: karen@gimbalcanada.com
David Skinner: david@gimbalcanada.com
25
gimbalcanada.com
514-667-2288

Presented June 15, 2021 by Dr. John Kenagy as part of the KaiNexus Continuous Improvement Webinar series. The Objective: Scientifically develop leaders at all levels to deliver exactly what patients and/or customers need at continually lower cost – low risk, high reward, fast. Kata Learning Objectives – Know why and how: 1. Conventional, data-driven leadership and management systems, projects, consultants, and technologies fail in complex, dynamic, unpredictable work. 2. Adaptive Design (AD) Kata improves standardized work in real-time. 3. AD Kata Leaders use the Scientific Method to improve at all levels: frontline to C-Suite 4. The people on AD Kata Teams discover, adapt, and improve as part of their daily work 5. AD Kata Leaders continuously replicate and scale results, success, trust, and optimism appropriate to their level and without waste of any resource (c) 2021, John W. Kenagy, MD. Adaptive Design and Ideal Patient Care are registered trademarks of John Kenagy Dr. John Kenagy Dr. Kenagy knows healthcare as a vascular surgeon, executive, academic researcher, author, and innovator. But his most meaningful experience was as a patient following a critical injury. He discovered his survival depended on the efforts of dedicated, highly trained individuals working in an unpredictable, conflicted system (the current healthcare Kata). As a Visiting Scholar at Harvard Business School, his research translated Leading Indicator Systems from resilient companies like Toyota, Apple, Intel and Amazon to healthcare. His discovery: our solutions are designed-to-adapt Kata’s from leadership to the point of care.

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Healthcare leaders often make bad decisions due to a lack of statistical understanding. This session will remind attendees that simple comparisons of two data points or comparisons to goals and targets can be misleading. Control charts allow us to better validate project success and make better ongoing management decisions. It’s far too easy for improvement facilitators to draw incorrect conclusions about the success of their Lean event or Six Sigma project if they are simply comparing before and after performance. Likewise, healthcare leaders make bad decisions when they are likewise comparing two data points (today versus a previous month or year or today versus a target). Basic Statistical Process Control (SPC) methods, like control charts, are a simple and proven alternative. Key Learning Objectives 1) Understand some of the common pitfalls in the creation and use of performance measures in various healthcare settings 2) See statistical chart analysis methods that allow for the best management decision making, such as knowing if we are improving and if a "bad day" requires investigation or if it is merely "noise" in the system's performance 3) Connect key principles of Lean management and the Deming philosophy into modern KPI and metrics management By the end of this session attendees will 1) Understand the importance of "control charts" for management decision making 2) Be able to create and interpret a basic management control chart 3) Know of other resources for more learning Mark Graban is author of the Shingo-Award winning book "Lean Hospitals: Improving Quality, Patient Safety, and Employee Engagement." Mark is also co-author, with Joe Swartz, of "Healthcare Kaizen: Engaging Front-Line Staff in Sustainable Continuous Improvements" (also a Shingo recipient) and "The Executive Guide to Healthcare Kaizen." He serves as a consultant to healthcare organizations through his company, Constancy, Inc and is also the Chief Improvement Officer of the technology company KaiNexus. Mark has a B.S. in Industrial Engineering from Northwestern University and an M.S. in Mechanical Engineering and an M.B.A. from the Massachusetts Institute of Technology’s Leaders for Global Operations Program. Mark and his wife live in San Antonio, Texas.

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