Managing Perceptions of Value

Sally GonzalezDirectorBaker Robbins & CompanySGonzalez@brco.com

Today’s Proposition

Technology is only valuable if clients and lawyers perceive it as such.

How can we develop and fulfill expectations in a way that creates a lasting sense

of value?

Client Facing

Firm Facing

Perceptions of Value

First…The Challenge of Value

• Exists only in the eye of the beholder– “One man’s meat is another man’s poison”

• Situational by nature

• Subject to change over time– Today’s value is tomorrow’s commodity

• Begs to be measured– Quantitative vs. qualitative

• Demands dialogue– Needs to be made explicit

• Requires continuous focus

Building Client Perceptions of Value

Client-Facing Technology Opportunities

Valu

e &

Ris

k

Lower

Higher

Commodity(Extranets, E-Mail, Voice Messaging

Brand Distinguishing(Extranets, Apps)

Bespoke

Valu

e &

Ris

k

Lower

Higher

Commodity(Extranets, E-Mail, Voice Messaging

Brand Distinguishing(Extranets, Apps)

Bespoke

Should Firms Charge for these Services?Qualifying Question: Is the primary value monetary?

Possibly, but often not

Probably not

Not

Value: What do corporate clients want?

• “What corporate clients want and need: value driven, high quality legal services that deliver solutions for a reasonable cost and develop lawyers as counselors (not just content-providers), advocates (not just process-doers) and professional partners.”

• “The problem is not cost per se, but the fact that cost is disconnected from value.”

• Goal: Reconnect value and costs through dialogue, methodologies and metrics, tools to drive change, and enhanced awareness and communication of success stories

Source: The ACC Value Challenge Project

“Next on our agenda, Bendleman will present the outside counselbudget through interpretive dance.”

How Can IT Participate in Delivering Value to Clients?

• Understand the client’s view of the value proposition– Partner with client teams (if your firm has them)– Build the right skills into the IT organization– Research your firm’s top clients– Find out what competitors are doing

• Identify solutions and “pitch” them to the firm– Demonstrate the value proposition

• Build confidence in IT’s ability to deliver and sustain solutions– Start small– Never fail where it shows

• Be persistent

Source: http://www.foley.com/services/otherservice_detail.aspx?serviceid=8

Firm-Driven Solutions: Brand Defining Extranets

Value: Differentiating Firm from CompetitorsLeveraging existing content

Source: http://www.allenovery.com/AOWeb/binaries/46504.pdf

Firm-Driven Solutions: Brand Defining Extranets

Client Perspectives?

• I expect my firms to offer extranets at no cost

• I’ll use extranet sites only for critical matters and only if the firm really keeps the content fresh

• I don’t like:– Having to remember different IDs and passwords for

separate firm sites– Having to go to separate sites for each firm

• I want an aggregated view of all information across all matters irrespective of firm providing services– Some clients build matter management systems to

address this– Some clients use public services for selected matters

Query: Why don’t firms band together to provide information in a consistent way to feed MMS’s?

Firm-Driven Solutions: Sharing Knowledge Resources

Value: Differentiating Firm from CompetitorsLeveraging existing contentValue Add Services

Client S

pecific

Open to Public

Client Perspectives?

Thank you very much!

Please make sure the content is up-to-date and easy to search and use!

Firm-Driven Solutions: Sharing Current Awareness

Value: Differentiating Firm from CompetitorsLeveraging existing contentValue Add Services

Client Perspectives?

Thank you very much, but…

If you really want to stand out from the crowd…

Give me current awareness tailored to my company and my current business issues!

Managing Matters & Budgets

Value: Satisfying client demand for better matter management and greater transparency into spending while matter is on-going

Foley ClientSuite: Budget Management Tool•Track spend against budget•Monitor burn rate & run rate•Drill down to project task or phase

Client Perspectives?

Thank you very, very much!

Still…

Lawyers need to become good project managers to populate and use the systems effectively!

Firm as System of Record

Value: Providing on-line repository of all client information accessible to lawyers and clients

Client Perspectives?

Thank you very, very much!

I’m glad you are taking good care of our records and docket because my law department has very limited

tools.

Client-Driven Solution: Novartis Legal Department

2006-072006

20072007

onwards

KMStrategy

New GCArrives

Global KM Team &

4 Quick Wins FirstGlobal KMO

Global Network

Next Generation Systems

Outside Counsel Initiatives

Novartis Legal KM Initiative

Novartis Legal KM Platform

Next Generation KM Systems

myLegalKnowledgebank

myLegalExpertise

myLegalMatters

myLegal Portal

myLegal Search

Novartis Outside Counsel – The Vision

• Integrate law department and law firm systems seamlessly through personalized portal (“extranet-less extranet”)

• “Google-like search” returning unified internal and external results for documents & people

• Comprehensive training portfolio

• Improved precedents and current awareness

• eBilling & Matter Management

Novartis Outside Counsel – Value Proposition

• Make lawyers more effective and efficient

• Manage spend

• Improve internal lawyer skill levels

• Expand knowledge repositories

• Leverage Novartis’ technology platform (no special apps)

Novartis Outside Counsel – A tale of 4 firms

• A&O: from the beginning

• Morrison & Foerster: connecting through Recommind

• Cravath: focus on training

• W&C: taking it further through a Global Client Team…– Training– Extranets– Precedents & Models– Current Awareness

• …Each delivering value in its own way

Common Denominators

• Client has a specific need

• Firm gets visibility into that need

• Firm crafts and delivers solutions– Lawyers, IT, KM, BD, and PD working in partnership

• Unique solutions evolve into generic (sometimes)

• Client perceives value add

• Lawyers perceive value through client’s eyes

Building Internal Perceptions of Value

Strategic Planning

• Strategic technology planning sets the context for on-going value discussions

Current State Vision Plan

• Provide baseline against which to measure change and demonstrate value

• Understand firm’s goals and needs

• Frame benefits accordingly

• Make value proposition transparent

• Build support for investments & change

• Frame benefits in terms of business goals and objectives

• Demonstrate value: create clear linkage between investments and benefits

Understand the Traditional Law Firm Value Chain & How IT Helps

Copyright, Michael Farrell Group, 2002

Exceeding

Expe

ctat

ions

Supporting The Practice

Managing The Firm

DoingWork

DoingWork

StaffingWork

StaffingWork

GettingWork

GettingWork

ManagingWork

Get More Work

Understanding How Your Firm Defines Value

Typical Value Drivers for Law Firms

• Profits Per Equity Partner (PPEP)– Increase revenues – Manage/reduce costs

• Recruiting, developing, and retaining top legal talent

• Delivering high quality, timely legal services

• Expanding services to existing clients

• Attracting new clients

• Maintaining competitive positioning

Tip: Find the answers through dialog and research

Align IT to Your Firm’s Value Definition

Ease of Implementation

Valueto the

Firm

Service

Service

ServiceService

Project Project Project

Project

Project

Project

Project

Project

Project Project

Measure IT Against Firm

Values

Increase revenueReduce costsDevelop/retain legal talentImprove qualityMeet clients’needs

Increase revenueReduce costsDevelop/retain legal talentImprove qualityMeet clients’needs

Investments neededComplexity of workClarity of requirementsFamiliarity with technologyRequired behavior changesAcceptance

Investments neededComplexity of workClarity of requirementsFamiliarity with technologyRequired behavior changesAcceptance

Prioritize Based on Value

Ease of Implementation

Valueto the

Firm

Service

Service

ServiceService

Project Project Project

Project

Project

Project

Project

Project

Project Project

• Re-focus priorities

• Nurture the language of value

• Embed value in goals and evaluationsField of

Distraction

Field ofGain

Field ofDreams

Field ofPain

Annual Budget Process: Make it an Ally

• Stay connected to the value proposition– Start early– Reach out to leadership, practice groups, and business

departments– Understand what they want to achieve– Think a lot about how technology can help– Propose and promote solutions– Use strategy prioritization tool to communicate and sell– Use Programs and project charters to focus on benefits

Leverage Recognition

• Firm naturally takes what it has for granted

• External recognition of value can awaken internal value perception– Enter public contests and competitions– Speak and write

• Seek out internal testimonials and share them

Develop a Communications Plan

• Consider branding IT’s systems and services

• Crystallize your value proposition into messaging points

• Promote awards and testimonials

• Create a formal plan to communicate value periodically– Newsletters– Internal meetings– Intranet presence– Client-facing presence

• Be prepared for informal opportunities– Rehearse your elevator speech and use it

BUT DON’T GO OVERBOARD!

Make Value Integral to IT Staff & Operations

• Communicate the IT Strategy and value proposition to them

• Find opportunities for them to embed value thinking in their work– Listen for client-facing opportunities– Listen for testimonials– Ask them how their projects, services, and activities fit

in the “Field of…” matrix

• Require a business value justification for every project

• Embed business value in annual goal setting and evaluation processes

Consider the Future of Value for your Firm

Temporary Dip? The New Normal?

What will value look like next?

Questions?