managing perceptions of value sally gonzalez director baker robbins & company [email protected]
TRANSCRIPT
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
Val
ue
& R
isk
Lower
Higher
Commodity(Extranets, E-Mail, Voice Messaging
Brand Distinguishing(Extranets, Apps)
Bespoke
Val
ue
& R
isk
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 Competitors Leveraging 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 Competitors Leveraging existing content Value Add Services
Client S
pecific
Open to P
ublic
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 Competitors Leveraging existing content Value 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
Exp
ecta
tions
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
Service
Service
Project ProjectProject
Project
Project
Project
Project
Project
Project Project
Measure IT Against Firm
Values
Increase revenue Reduce costs Develop/retain
legal talent Improve quality Meet clients’
needs
Increase revenue Reduce costs Develop/retain
legal talent Improve quality Meet clients’
needs
Investments needed Complexity of work Clarity of requirements Familiarity with
technology Required behavior
changes Acceptance
Investments needed Complexity of work Clarity of requirements Familiarity with
technology Required behavior
changes Acceptance
Prioritize Based on Value
Ease of Implementation
Valueto the
Firm
Service
Service
Service
Service
Project ProjectProject
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?