While it can be difficult for lawyers, law firms, legal departments, and legal services organizations in general to succeed at Lean, they need to find their purpose more important. It is this goal that will motivate the individual to make the effort to learn the kata of continuous improvement and to consider each day as another opportunity to improve. With this transformation, legal service providers will find that the multiplier effect of continuous improvement pushes them to differentiate themselves from their competitors. makes the work more interesting for participants; improves the quality, timeliness and efficiency of services; And yes, reduces costs. Another reason why companies have been slow to adopt business innovations in legal practice is that they don`t believe the traditional law firm model is dead. Finally, Citi Hildebrandt Client Advisory Report`s 2019 report, an annual survey of law firms` tax performance, showed strong growth for U.S. law firms. However, if you scratch the surface, you will see that the growth is focused on Am Law 100 and Am Law 50 in particular. That is, only the few companies that are still able to sell their “tailor-made services” to the GCs, with the bet that corporate litigation will do well. Other data sources point to a growing tax separation between the “elite” corporate cadre and the rest of the pack.
[14] A Forbes report notes that the 6.3% growth in revenue of the companies surveyed is offset by a 5.9% increase in costs, which translates into a small 0.4% increase in profits. “Longer collection cycles, declining realization, and `scattering` – the almost even split between companies that see growing demand and companies that see demand decline year over year – tell a different story from the report`s bullish headline.” [15] In addition, “the number of participating partners decreased by 0.3%, continuing a seven-year trend in which the number of participating partners remained unchanged, but the leverage ratio (non-equity biller) increased. It`s a good way to support revenue per partner, but not a winning strategy in the long run. [16] None of the five principles mention cost reduction. And yet, lean has become known in the legal industry as a simple cost-cutting tool. This is partly because lean was introduced to the legal industry at a time when companies were focusing on what became the “more for less” dilemma. Corporate counsel have faced increasing compliance and regulatory demands in the U.S. and around the world.
Business models have developed rapidly, adding new areas such as social media and digital tools. The combination of these factors meant that in-house lawyers had to offer more to their clients. Most executives have an idea of what Lean is, Lean thinking, or Lean methodology. Definitions generally include the goal of lean as “a way to organize people and resources to achieve higher value or performance while avoiding waste or striving for continuous improvement.” In this article, I will share a brief history of the concept of “lean” and show how general counsel can apply these principles to simultaneously evolve corporate legal support and improve governance. The application of these principles to the legal function has led to the development of the lean legal function, which allows lawyers to devote more time to strategic legal work. The data begs the question: why haven`t law firms adapted faster and provided these services competitively? To understand resistance, it`s amusing – but far too easy – to blame it on the lawyer`s pathological resistance to change. The “2018 State of the Legal Market Report,” published by Georgetown University Law Center`s Center for the Study of the Legal Profession and the Thomson Reuters Legal Executive Institute, compares many companies` strategies to the French strategy of the “Maginot Line” – a seemingly impregnable fortress that conveyed a false sense of security. until he was easily defeated at the start of World War II. [12] The report theorizes that strategic blind spots, inertia and reluctance to adapt policies to changing conditions can lead policymakers to ignore signs that the world has progressed and that current policies may not work. [13] The legal team will advise a number of in-house “clients” in different contexts. But whether it`s drafting or revising contract wording, advising on an acquisition, or conducting litigation, it`s possible to break down the process into different steps a lawyer is involved in (and how). This process map will also contain the phases in which there is no legal implication.
This allows the GC and others to understand the “pinch” points in the process, particularly those where there is an increased risk of error or where, for example, bottlenecks occur. These lean principles are not taught in traditional law schools, and yet the pandemic has highlighted the performance of investment firms they see from their legal function and the lawyers in it. In-house legal functions can no longer function like traditional law firms and must adapt to the language and efficiency of the processes used by other business functions. The post-pandemic era ushered in the era of the lean legal function. We listen to our clients to understand their needs and expectations in order to be able to offer them the legal and contractual solution they really need. When Lean moved to the legal department, he brought the Kaizen event with him. Now lawyers hear the word Lean and think “Kaizen event” – the need for continuous improvement has been lost. Lawyers, legal departments and law firms believe that the implementation of Lean goes through these concentrated events. It is bad, but the situation has worsened. Lawyers are impatient and complain about not having five days for an improvement event.
This reduced the time for Kaizen events from five days to a few days to less than a day. Today`s Lean training workshops typically last a day or less (often half a day) and have become demo mapping events. Continuous improvement has been turned into a quick fix. We have moved away from the lean that helps organizations. We are proud when our clients choose Lean Law, P.A. Our customers know that we take care of them in their distress so they can relax and know that we take care of the business. Due to the economic pressures and constraints of the last 18 months, a number of progressive CGs are adopting the concept of the lean legal function, which at the same time changes their companies` view of the legal function. These Lean legal functions hold the line of risk mitigation while delivering value (and therefore revenue) for each of their internal stakeholders. Ironically, thanks to business principles like Lean, legal functions will end up doing less business processes and have more time to provide strategic legal advice to their stakeholders.
Bobby`s passion for law and his desire to help others is deeply rooted and deep-rooted from an early age. Bobby often jokes that he attributes his legal career to the “Law and Order” character Jack McCoy, whom he grew up. During law school, Bobby was a founding member of the Human Trafficking Awareness Coalition and served on the board until graduation. Bobby was also a member of the Student Government Association and worked as an admissions ambassador for Barry University to help individuals seeking a career as a lawyer navigate the often overwhelming business of law school.
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