Transcript Title goes here

Managing Perceptions of Value
Sally Gonzalez
Director
Baker Robbins & Company
[email protected]
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?
Firm
Facing
Client
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
Value & Risk
Higher
Bespoke
Brand Distinguishing
(Extranets, Apps)
Commodity
Lower
(Extranets, E-Mail, Voice Messaging
Should Firms Charge for these Services?
Qualifying Question: Is the primary value monetary?
Value & Risk
Higher
Bespoke
Brand Distinguishing
(Extranets, Apps)
Commodity
Lower
Possibly, but
often not
Probably
not
(Extranets, E-Mail, Voice Messaging
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 contentproviders), 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 counsel
budget 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
Firm-Driven Solutions:
Brand Defining Extranets
Value: Differentiating Firm from Competitors
Leveraging existing content
Source: http://www.foley.com/services/otherservice_detail.aspx?serviceid=8
Firm-Driven Solutions:
Brand Defining Extranets
Source: http://www.allenovery.com/AOWeb/binaries/46504.pdf
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 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
New GC
Arrives
2006-07
KM
Strategy
Global KM Team
&
4 Quick Wins
2007
First
Global
KMO
2007
onwards
Global Network
Novartis Legal KM
Initiative
Next Generation
Systems
Outside Counsel
Initiatives
Novartis Legal KM Platform
myLegal Portal
myLegal Search
myLegal
Knowledgebank
myLegal
Expertise
Next Generation KM Systems
myLegal
Matters
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
• Provide baseline
against which to
measure change and
demonstrate value
Vision
Plan
• Understand firm’s
goals and needs
• Frame benefits in
terms of business
goals and
objectives
• Frame benefits
accordingly
• Make value
proposition
transparent
• Build support for
investments &
change
• Demonstrate value:
create clear linkage
between
investments and
benefits
Understand the Traditional Law Firm Value
Chain & How IT Helps
Get More Work
Managing The Firm
Getting
Getting
Work
Work
Staffing
Staffing
Work
Work
Doing
Doing
Work
Work
Supporting The Practice
Copyright, Michael Farrell Group, 2002
Managing
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
 Increase revenue
 Reduce costs
 Develop/retain
Project
legal
talent
 Improve quality
 Meet clients’
Project
needs
Project
Value
to the
Firm
Project
Service
Project
Service
Project
Project
Service
Project
Service
Project
Measure IT
Against Firm
Values




Investments needed
Complexity of work
Clarity of requirements
Familiarity with
technology
 Required behavior
changes
 Acceptance
Project
Ease of Implementation
Prioritize Based on Value
Project
Service
Field of
Field of
Project
Dreams Project Project
Gain
Value
to the
Firm
Project
Service
Project
Field of
Pain
Service
Project
Project
Field
of
Service
Project
Distraction
Project
Ease of Implementation
• Re-focus priorities
• Nurture the
language of value
• Embed value in
goals and
evaluations
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
What will value look like next?
Temporary Dip?
The New Normal?
Questions?