Becoming A Smart Organization Part One: Channelling Good Ideas

Reprinted from the July 2001 issue of "The Lawyers Competitive Edge -
The Journal of Law Office Economics and Management." Used with Permission

Becoming A Smart Organization
Part One: Channelling Good Ideas
by Dan C. Felean | Printer Friendly Version

The digital revolution has had the good effect of shaking the conservative legal profession out of its complacency about technology. It no longer suffices to say "that's not the way we do it around here." There is now widespread recognition that technology can, and must, play an important role in the evolution of a new way of practicing law, not just automating production. In fact, lawyers and clients demand it.

Yet, law firms and law departments are still struggling to define and fill this new role. For the first time, technology is having a direct impact on lawyers, how they work, and their relationship with clients. The increased emphasis on things technological has created a new set of challenges and frustrations within law offices. Expectations are high, and the possibilities seem endless. Many organizations are not sure how to deal with such rapid change.

The Role Of The It Department Is Not Strategy
Law firms and law departments have traditionally relied on an IT department to install, service and maintain technology - to keep the "big wheel turning." But, there is a big difference between installing a technology product and re-aligning your organization to optimize information management strategies. IT departments are not equipped to develop strategies, and they should not bear the brunt of lawyers' technology demands. Most IT managers readily admit that they do not know exactly how a lawyer works, so how can they be expected to know what will empower the lawyer/knowledge worker?

In fact, no one person or department alone can take responsibility for identifying needs and opportunities arising from technology. There is no magic bullet. It takes much more to become a "smart" organization, an organization that is constantly attuned and forecasting the changing needs of its lawyers and clients. It requires a commitment to a new way of running the business of law in a strategic way.

Becoming "smart" requires:

establishing grassroots channels of intelligence;

formalizing processes to funnel and filter ideas;

creating a means to evaluate the merits and prioritize according to value; and

committing to respond to needs and exploit opportunities.

Gather Ideas At The Source
To be truly effective, this new wave of technology must engage and facilitate both the lawyer and clients in a way that also co-benefits the organization. Empowering the lawyer and client starts by taking the time to understand what the lawyer needs to do a job more efficiently and effectively, and what the client considers important and valuable.

So, building a smart organization starts by establishing an intelligence channel for information, processes and innovations that can improve value. There are three principal sources of good ideas: the lawyer (and other internal knowledge workers), the client, and the industries (both legal and technology). By tapping into all three sources, the smart organization can create the kind of intelligence network that will tell it how to maintain a competitive edge.

Of the three sources, industry intelligence may seem the most elusive. Lawyers are always curious about what other firms are doing. However, in an age where information sharing and technology innovation receive acclaim and recognition, few organizations are shy to discuss their advancements. A qualified law technology consultant can provide the major trends and specifics about new developments in technology and law office information management.

Define The Intelligence Mandate - What You Need To Succeed
The intelligence gathering must be dynamic and ongoing, not just a one-time survey. Each lawyer should understand his/her role and responsibility in clearly articulating what he/she needs to be a better lawyer. The smart organization's mandate to its lawyers should make it clear that ideas and needs are better expressed in simple, non-technology terms. It is often harder to see the real need if the idea is contaminated with technology terms and brand names.

Although some requests and ideas inevitably will be product specific, the smart organization should let it be known that requests will be interpreted in the broadest "information management" sense. For example, an idea for use of a voice recognition system may be interpreted in context as a request for a better or faster way to produce documents or enter data.

Should clients be invited to participate directly in idea gathering, or should the lawyers act as the ears and filters of your organization? Some law firms may be reluctant to ask their clients the kind of open-ended questions about information and technology that they would ask internally. In those cases lawyers can listen and filter information needs from clients. However, given the general reluctance of busy lawyers to delve into non-case areas, the smart organization must eventually open the process to at least some key clients (through extranets, e-mail, etc.) in order to stay attuned to their changing needs.

Establish The Channel - Where And How To Contribute
Among busy lawyers, a channel that is not formally defined is no channel at all. It may seem a little too obvious to state that fellow lawyers are the best source of intelligence about trends, client needs and their own requirements. Yet, time and again, we find that most professionals do not know where and how to communicate needs that arise in the course of performing their work. Even if they do convey their thoughts to a partner or administrator, does the recipient know what to do with the idea? And, will people continue to contribute if there is no certainty that the matter will be considered?

The professionals' time is in demand, so conveying this information must be a simple process. Ideally, the idea should be funnelled through convenient channels, such as a specific e-mailbox or a specific intranet feedback/discussion portal. Asking a lawyer to prepare a lengthy report is the surest way to discourage the busiest, most valuable contributors. However, the contributors have to be prepared to "share the pain" of justifying the need and criteria.

Set Protocol -For A Transparent Process
Equally important, the smart organization should clearly establish a protocol for handling requests. Once the channel and mandate are established, the contributors need to know where and how to convey an idea. Further, they need to know to whom the request is directed, whom else will consider it, and what are the evaluation/decision/prioritization criteria.

Clear protocol also helps de-politicize the process. Without a clear understanding of the process, potential contributors will be discouraged. The protocol must be formally published (just like human resource policies) to be effective and lasting.

Feedback And Response Can Increase Value
One of the most frequent complaints that we hear from junior lawyers in large firms is that they do not feel informed about decisions that may affect the individual in the performance of his/her duties. A smart organization recognizes the value of empowering all members of the firm with technology intelligence.

An idea channel must provide feedback to every serious submission, so contributors feel the process is responsive. Providing a reasoned decision shows respect for contributors and encourages an active, dynamic technology forum that will benefit both the organization and its members. Publishing the decision on the firm's intranet or extranet informs everyone of what was considered and helps avoid duplicate requests. Then, when clients ask about the technology of the firm (as more are now doing), the individual lawyer will be better armed to respond. Plans for new initiatives can be presented to clients to show the initiative of the firm.

Announcing and explaining a new technology initiative in writing can better position the expectations and conditions for its use. If restrictions are imposed, a clear, upfront explanation can often improve acceptance. Equally, a reasoned decision to not use certain technology can be positioned as a powerful benefit by the firm. It can take control of an issue and strengthen the firm.

Leverages All Resources
A smart organization recognizes that technology is in constant evolution and therefore intelligence gathering must be an ongoing process, not a one-time reactive study. By establishing a channel and structure for progressive funnelling of ideas and needs from lawyers and clients, the organization leverages its resources to feed innovation.

Of course, that leads to the bigger question of what to do when intelligence is effectively gathered. Next month, we will look at establishing the role of Idea Interpretation in a smart organization.

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.