Taking Technology's Measure

Reprinted from the March 2001 issue of "Lexpert, the business magazine for lawyers." Used with Permission

Taking Technology's Measure
by Dan C. Felean | Printer Friendly Version

As the legal profession grapples to position technology within the organization, a recent nationwide study of Information Technology (IT) in Canadian business offers some perspective and challenges for all of us. The ITX survey (the Survey), undertaken by CIO Canada Magazine in collaboration with Athabasca University, is the largest study of its kind in Canada.

It is not surprising to find that many of the IT issues facing the Canadian legal profession are the same as those facing all types of Canadian business. We may find some cold comfort in sharing similar problems, but there is no reason for complacency. Let's look at some of the Survey's major findings, and compare them to the current state of the Canadian legal industry.

Skyrocketing Importance
The Survey reports that over the past two years, the importance of IT to corporate strategy in Canadian business has increased much faster than other functional areas within the organization. This confirms what we are seeing in the legal profession, where it has become painfully evident that the role of technology must change from a passive to an active player in business strategy. Both lawyers and clients have become addicted to the speedy consumption of information. The only way a law firm or corporate law department can "feed the need" is to leverage technology so as to deliver anytime, anywhere information to lawyers (Intranets) and clients (Extranets). Since technology can do this faster/cheaper/better, it has become critical to achieving business objectives.

Acceleration In Change
In the Survey, IT Managers gave high importance to "keeping up with new technology," identifying "developing e-business applications" as the single most important issue.

It is evident that even technology professionals are having a hard time keeping up with all the advancements and changes arising from new technologies. To stay on track, an organization needs to clearly define its objectives and then always be on the lookout for technologies that contribute to those goals. This is especially true for a law firm, where the partner/owners are often consumed by their clients' problems instead of focussing on their own.

It is also clear that Internet technologies (Intranets, Extranets, etc.) have become the focal point for most technological innovation and development. They enable an organization to make better information available faster, easier and cheaper. That's why "e-business" ranks as the number one priority in the survey, and why Intranets, Extranets and Web business must be part of every law firm and law department's strategic plan.

We Think We Are Ok, But Are We?
When it comes how IT in Canadian business ranks in the world, the Survey says 40 per cent of the respondents felt we were keeping up with the rest of the world, while only 26 per cent felt we were not. However, when asked to compare ourselves directly to the US, those figures almost reversed: 44 per cent thought we were behind, while only 26 per cent thought we were keeping up.

In the general scheme of things, it may be satisfactory for some Canadian business to lag behind the US. But, with the emergence of multinational law offices, MDP's and globalized competition for legal business, the major law firms in Canada cannot afford to fall too far behind. Indeed, US law firms are now facing serious challenges from European competitors who, to some extent, have advanced past the Americans.

According to Richard Susskind, a UK professor, technologist and author of Transforming the Law, it was not long ago that British firms were clearly behind Americans in operational technology. This, however, left them unencumbered by large investments in legacy systems, so they could afford to leap-frog the current back office systems with a new approach. Susskind contends that their willingness to innovate and invest in R&D without the pressure of short-term payback may have put British firms ahead of both Americans and Canadians in the all-important knowledge-based systems. Whatever the reason, it is clear that British firms have made great strides forward and may represent a better model for leading-edge Canadian firms.

Senior Management- The Good, Bad & Ugly
With escalating expectations and a need for rapid change, the Survey reports IT departments are feeling the pressure. The role of senior management, therefore, becomes crucial to effecting change in an organization. On a positive note, IT managers report that senior management has realistic expectations of IT, and they have a sufficient understanding of the issues involved. However, it appears that executive management is not giving the necessary leadership and support for IT issues to implement change in the organization. The Survey reports a significant perceived weakness (33 per cent) in senior management's leadership on IT strategies.

This supports a strong argument for establishing the role of a Chief Information Officer (CIO) at the senior management level of the law firm. Leading change in a large law firm or department has become a full-time role. It has grown beyond the scope of an IT manager, and it can no longer be left to a part-time technology committee or a partner in charge of technology.

Scarcity Of Resources
The ITX Survey reports that all organizations are having a hard time acquiring and retaining qualified IT staff. Historically, this has always been the case in law firm IT departments. Law firms tend to innovate more slowly and restrict creativity to bite-sized chunks. This presents less opportunity for a young, hotshot technologist to show his stuff and expand his horizons. Often, the best and the brightest either learn to go slow or move on to greener pastures.

Today, this has been compounded by an explosive growth in demand for IT professionals. When top IT people are being wined and dined by industry, a law firm will have a hard time recruiting and retaining them. A better strategy for law firms is to hire a few good technology management people and form trusted relationships with outside consultants or system integrators who can supplement the firm's knowledge and resources in specific areas.

Tom Peters, the well-noted business management guru, puts it this way, "Do what you do best and outsource the rest." In other words, look to outsource any activity, such as software development, that is not directly related to your core competencies or value proposition.

Better Project Management
In the technology world, project management is now the Holy Grail. Effective project management controls the time, scope and expense of any IT project, and can quite often determine its success or failure. There is an often-repeated (but never substantiated) saying that more than 75% of IT projects never reach a successful conclusion. Several industry studies have reported that fewer than half of software projects finish within their allotted schedules and budgets.

Regardless of the percentage, the ITX survey again points out a weakness in the management of IT projects. Many respondents admit that senior management does not understand the project management issues involved in IT, and perhaps as a result, their organizations do not practice good project management.

Law firms are recognizing the importance of project management in technology planning and deployment. In fact, some firms are now exploring ways of using professional project managers to help manage large, multifaceted legal representations. Project management is a proven methodology, yet it cannot succeed without the involvement and commitment of people at all levels of the organization.

Are We Forgetting The People?
The most compelling finding of the Survey was an overall recognition that rapid changes imposed by technology are stressing the daylights out of the average worker. Not surprisingly, many respondents rated that management of the people side of IT change to be especially poor.

It seems in our haste to adopt and adapt to the latest, greatest technology, we sometimes overlook the "people" side of the equation. Any change is disruptive, and unless the organization commits to actively managing change, the results can be disastrous. Dr. Peter Carr of Athabasca University said the Survey focus groups referred to this mounting stress as an emerging "IT Rage" problem.

John Pickett, the publisher of CIO Canada, says the Survey's conclusions clearly point to the need for senior management's involvement and commitment, to show leadership in process-changing initiatives, to gain commitment from across organization boundaries, and to commit resources to training and change management. The lessons for law firms and law departments are equally clear.

Dan C. Felean a principal of PensEra Knowledge Technologies, a national consulting firm that specializes in knowledge management strategies and technologies for law firms and corporate law departments. See www.pensera.com.

Call For Innovation In Technology
Technology is a wonderful thing. Two firms can fact almost exactly the same issue, and both will attack it successfully in completely different ways. This is the essence of creativity and innovation.

In the coming months, we would like to showcase some of the most innovative uses of technology in law offices. If you have devised a use of technology that you think deserves some attention, please send me a brief description at danf@pensera.com, and I will contact you for details.