During the economic downturn of 2008, our industry was slow to recognize the shift to a client-centric marketplace, and only the most innovative firms at the time pivoted to AFAs and legal project management as a means of demonstrating a commitment to client service. Meanwhile, most firms protected partner comp at all costs, causing financial stressors that eroded culture and internal relationships. Many firms offloaded associates and it was almost two years before they rebuilt their ranks.
On the other hand, this year, firms were quick to adapt, taking a much more egalitarian approach to cost reduction, communicating proactively with clients, and stabilizing operations within a matter of weeks. Lateral hiring increased significantly in Q3 and continues into Q4. Most firms anticipate that they will substantially outperform the doomsday scenarios predicted back in March. A few are enjoying their most profitable year in recent history.
Innovation is impossible without adaptability, and this year, law firms demonstrated that they had evolved compared to the last time they faced an economic crisis.
I asked my fellow 2020 inductees to share some of their takeaways from the innovation and diversity discussions at the Futures Conference. Here’s what they had to say:
The Hon Justice Tanya R Kennedy led off this session with excellent words of advice: “Do the work!”. This is great advice for organizations who want to expand their diversity agenda.
As a Class of 2020 Fellow of COLPM, I found the Futures 2020 conference invigorating and thought-provoking. It was the most collaborative and welcoming conference, even while virtual, that I have experienced. While I walked away with literally hundreds of take-aways, here are a few on innovation and DE&I that stood out:
It is rare that we find ourselves in a virtual room filled with luminaries, thought leaders and entrepreneurs bound by a single mission: to improve and evolve the legal ecosystem. This year’s COLPM conference was my first and was, by far, one of the most engaging, informative and honest forums in which I have participated – a true beacon of light in an otherwise murky 2020. Our small group discussion on diversity and inclusion was ripe with detailed statistics, thanks to Diversity Lab’s Michelle Jackson, and real-life experiences courtesy of Chancellor John Pierre of Southern University Law Center. On the upside, the industry has made progress in the past decade, improving representation of women and minorities at virtually all levels and roles. There was disparity among various groups (e.g., black males showed less progress than others in becoming equity partners) and, clearly, we still have a long way to go to see representation proportionate to the U.S. population. A few of the more useful takeaways:
This last point, of course, begs the question – what can law firms be doing to infuse greater meaning, purpose and inclusiveness into their organizational structures and strategy.
One of the highlights of the COLPM 2020 Futures conference included the importance of prioritizing both Data and Diversity & Inclusion as initiatives in your legal organization.
“Don’t call it innovation call it outcomes” was one suggestion along with the importance of data hygiene.
Accuracy has always been essential for pricing models and client retention rates but now include key metrics with a significant focus on D&I such as:
Also emphasized was to always know your “why” - in other words be able to communicate why these data points and analytics will aid attorneys. Teach them about accurate data collection and how to read a report. In a word...metricize!
I also appreciated learning about the “Empty Chair” concept:
Always leave space for an empty chair(s) at the decision table and make it part of your culture ask these questions:
Data was top-of-mind for most participants, and there was general agreement that firms and legal departments need a data strategy. However, the breakout discussions surfaced two likely prerequisites to executing on that strategy: (1) investment in data hygiene; and (2) investment in change management. It was also telling that many of the innovation and data strategy discussions did not revolve around what technology to use or what data to gather. Instead, the discussions focused on the organizational and cultural challenges associated with adoption and change. On those points, most participants agreed that - at a minimum - successful innovation projects must have executive sponsorship and clear, articulable understanding of what constitutes a “win” for the organization.
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Authored by David Ackert