Successful Digital Transformation in Law firms: A Question of Culture

•Understand what digital transformation means in a law firm context •Explore the cultural barriers to transformation, and learn how to overcome them •Gain insight from the operating models of successful digital businesses •Develop a business case and practical strategy for digital transformation •Understand the importance of diversity and purpose in driving digital change •Manage change and adoption challenges •Build on learnings from the COVID-19 crisis to accelerate digital transformation As law firms take stock in the aftermath of COVID-19, there is an opportunity to rethink the law firm operating model for the next decade and beyond. The crisis has reinforced the importance of agility and resilience, and the critical role digital technologies play in client service. For law firms, digital transformation should no longer be viewed as an indulgence, but as an urgent necessity. For those that embrace this challenge, the rewards, for both clients and colleagues, will be substantial. Written by one of the most respected leaders of law firm innovation, this book will help those contemplating or leading digital change in law firms to develop and execute a compelling digital transformation strategy. With a particular focus on the cultural and organisational challenges inherent in a law firm partnership, the book provides practical advice on how to effect meaningful and sustainable change. This invaluable guide for law firm leaders, lawyers, and those leading digital change in a law firm includes plenty of best-practice examples from outside as well as inside the legal profession. The book provides valuable insight for start-ups and technology providers looking to partner with law firms, and for aspiring lawyers starting their professional careers. Along with practical guidance on shaping digital transformation, this engaging work will give the reader a comprehensive overview of the competitive landscape in legal services, sharing diverse perspectives and case studies from leaders from different parts of the legal sector.

Table of Contents:
Acknowledgements 11 Foreword by Mark A Cohen 15 Introduction 19 Part I: Why digital transformation matters – and how to get started 25 Chapter 1: What is digital transformation? 27 1. Meaningful change or management speak? 27 2. Innovation vs digital transformation 28 3. Why should law firms change? 30 3.1 Money, money, money 30 3.2 Law firm expertise 31 3.3 The mythology around law firm brand 35 4. “Only the paranoid survive” 37 5. The disruption test 38 6. The art of persuasion 39 Chapter 2: Five defining elements of successful digital companies 41 1. Framing the challenge 41 2. Adapting best practice to the law firm environment 42 3. Beware of innovation theatre 43 4. What does ‘good’ look like? 44 5. The five elements of successful digital transformation 45 5.1 Element 1: digital companies are customer-centric 45 5.2 Element 2: Successful digital companies have a digital strategy (aligned to business strategy) 61 5.3 Element 3: Successful digital companies commit to digital change 66 5.4 Element 4: For successful digital transformation, you need the best (digital) people 74 5.5 Element 5: Create a culture in which transformation can continue to flourish 80 Chapter 3: Developing the vision and strategy 87 1. Introduction 87 2. Eight steps to digital transformation 88 2.1 Step 1: Understand your firm’s business strateg 89 2.2 Step 2: Undertake a firm diagnostic and identify digital opportunity 92 2.3 Step 3: Review the competitor landscape 102 2.4 Step 4: Talk to clients 105 2.5 Step 5: Create the business case for funding 108 2.6 Step 6: Create a plan for execution and assemble the right team 123 2.7 Step 7: Create your vision and strategy document and communications plan 134 2.8 Step 8: Communicate and manage the change 141 Part II: Product development and technology 147 Chapter 4: Products 149 1. Law firm or software development house? 149 2. Embedding products into services 151 3. Law firm digital products – some examples 151 3.1 The subscription model 153 3.2 Partnering to develop and deliver products 155 3.3 Client-facing apps 156 3.4 Digital platforms 157 4. Digital products – the pros and cons 161 5. How to develop products successfully 164 5.1 Talk to customers 165 5.2 Use process 165 5.3 Establish product ownership 165 5.4 Build a team 165 5.5 Work in an agile way 166 5.6 Work cross-functionally 166 5.7 Measure success 166 5.8 Be cognisant of the culture 166 6. Establishing a process 166 7. The product lifecycle 168 7.1 Stage 1: Idea 171 7.2 Stage 2: Enablement 171 7.3 Stage 3: Validation 172 7.4 Stage 4: Proof of concept 173 7.5 Stage 5: Minimum valuable product (MVP) 174 7.6 Stage 6: Continuous delivery 174 7.7 Stage 7: Legacy 175 8. Managing the product delivery lifecycle: product ownership 175 9. Product owner skills 176 10. What does success look like? 177 10.1 The right measures 180 10.2 The go-to-market strategy 181 11. Products – or product thinking? 183 12. Products – some final thoughts 184 Chapter 5: Technology 187 1. Legal tech 187 2. Simplification and convergence: making use of what you have 189 3. Back to basics 191 3.1 Legacy 192 3.2 Leadership and digital literacy 193 3.3 Cloud 194 3.4 Data 197 4. Technology leadership 212 5. In summary 213 Part III: Sustaining the change 215 Chapter 6: Petri dish or opera house? Culture under the microscope 217 1. The link between culture and digital transformation 217 2. Defining culture 218 3. The cultural strengths of law firms 219 4. Law firm culture: the challenges 223 5. Addressing culture under strain: lessons from the financial services sector 225 5.1 Governance 230 5.2 Incentives 230 5.3 Individual accountability 231 6. The enduring nature of the partnership model 231 Chapter 7: Sustaining change – partnership 235 1. Time for a new model? 235 2. Structure and culture 237 2.1 The importance of agility 240 2.2 Investing for the long term 241 2.3 Rigidity of career structure 242 3. What are the options? 245 3.1 Option 1: Specialise 245 3.2 Option 2: Choose to change 248 3.3 Option 3: The ‘wait and see’ approach 248 4. Six structures that encourage cultural change 248 4.1 The acquisition model 249 4.2 The captive model 254 4.3 The intrapreneurship model 256 4.4 The incubation model 260 4.5 The spin-off model 262 4.6 The IPO 265 5. Choosing the right model 267 6. Structuring for success 268 Chapter 8: Sustaining change – people 269 1. Law firms are people businesses 269 2. The law firm people problem 271 3. Who law firms hire 273 3.1 The lawyers 273 3.2 The digital professionals 280 3.3 The changing role of the law firm HR function 280 4. What law firms reward 291 4.1 The danger of recruiting in your own image 291 4.2 Fee earners and fee burners 292 4.3 Cognitive diversity: the power of mixing it up 295 4.4 The challenge of multidisciplinary teams 295 4.5 What’s the alternative? 298 4.6 Cognitive diversity and psychological safety 298 Chapter 9: Sustaining change – purpose 303 1. Purpose – or perpetuity? 303 2. The corporate view of purpose 303 3. The law firm response 307 4. The role of purpose in sustaining transformation 308 5. Becoming purpose-driven – practical steps 309 Chapter 10: Final thoughts 313 Notes 319 About the author 327 Index 329 About Globe Law and Business 341

Review :
Law firm partners will realize quickly that Isabel Parker has not pulled any punches in her concise, direct and highly informative presentation of the digital transformation imperative for law firms and how they must rethink traditional approaches to successfully transform. Her own law firm experience, extensive research and talent for clarity combine here to deliver great insights. Almost all law firms give consideration to their culture, but Parker’s treatment of the subject is among the best as she provides an in-depth explanation of what it is, why it should matter to law firms and how firms can develop a culture that fosters digital transformation. The insights from this book will be of equal value to inhouse corporate counsel undertaking transformation initiatives. As a general counsel and student of digital transformation for many years, I will highly recommend this book as ‘required reading’ to law firm partners and my inhouse team alike! Thoroughly enjoying Isabel Parker‘s book on successfully implementing digital transformation. Although it’s predominantly for law firms, the principles apply to in-house as well. Highly recommend! This is a much-needed work, few (if any) legal professionals are more qualified by dint of experience, contacts and skill than Isabel Parker to deliver these timely messages. The book is very well written, edited and laid out as a pure visual and production matter, is well documented (but not excessively or annoyingly) by endnotes, and most of all, is well supported on all key points by case studies and interviews. The latter, importantly, are not just from law firms, but as appropriate, from digital leaders outside the legal profession. Both lend additional credibility. The author’s approach is fair and balanced; she recognizes both the undeniable strengths and current limitations in a rapidly transforming world of the traditional law firm model. She offers several plausible paths that firms can take in order to adapt, while being keenly realistic about the likely challenges to be faced and difficult choices to be made by law firms that will rise to the challenge and earnestly commit to putting client service first in today’s (and tomorrow’s) world. While focused on law firms, there are many lessons that can apply directly or with slight adaptation to in-house legal departments that are embarking on similar transformation journeys. These lessons are also helpful to corporate legal departments in terms of evaluating law firms’ innovation credibility and in picking a core group with which to partner. Similarly, vendors to both law firms and legal departments will find Ms. Parker’s insights very valuable since they provide such deep context and visibility into the workings of such a key element of the legal profession. The focus on culture is spot on and often under-appreciated; somewhat similar challenges apply in-house since so many in-house attorneys are products of the same law firm culture (and to be sure, educational system and culture of exceptionalism). They still carry some of these characteristics. As such they are often a sub-culture within their corporations, even when the corporation’s dominant culture is more dynamic and innovative. They (myself included) need to recognize this as we seek to adapt and transform. The author’s insights - and the cited research findings - about the importance of cognitive diversity, pluri-disciplinary teams and minimizing the lawyer v. non-lawyer dichotomy when evaluating new ideas apply in both worlds. Very well worth the cost and time spent in reading, highlighting and annotating carefully.