A battle of wills and skills – how your firm can help clients manage tech

A battle of wills and skills – how your firm can help clients manage tech disruption

At a time when clients are grappling with technology disruption and demanding that their advisors truly understand their business, law firms have an opportunity to ramp up their role as an adviser and commercial confidant, writes Mark Andrews.

Progressive law firms appreciate the importance of helping their clients understand and apply technologies such as artificial intelligence and machine learning.

The widespread and pervading impact of technology in all aspects of business and life, coupled with the changing regulatory environment, puts law firms in an ideal position to play a number of roles – as an educator, as a technology advisor to in-house legal teams; and with regard to technology-driven frameworks and regulatory compliance.

Law firms as educators

Clients want to make use of new technologies, but there is often considerable hype and exaggerated commentary about tech solutions and what they can do. Lawyers can cut through the fluff and act as educators to their clients – both at the general counsel level and more generally in the C-suite. In fact, law firms have an opportunity to secure a seat at the C-suite table courtesy of their technology knowledge. To do this, they need to focus on:

• demystifying technology
• painting a realistic picture of the potential application of technology and any regulatory repercussions
• identifying risks of both acting and not acting.

In many law firms, the job of educator may well fall to the technology and media-focused practice areas or others with specific skills, but all practice areas have a responsibility to understand the potential impact of technology on their clients. I am not suggesting that law firms should be competing with IT consulting firms for the role of educator, but the crucial task of demystifying technology and factoring in risk management is one that can be effectively performed by law firms.

Law firms as in-house legal team technology advisors

In-house legal teams rarely have the budget or time to investigate how technology can better support them. In many cases, the technology functions within large corporations pay little regard to the specific needs of in-house legal functions. Law firms, therefore, have a real opportunity to advise in-house legal teams on technology.

This role requires a combination of legal and technology skills, and it provides an ideal opportunity for the more tech-savvy lawyers to build broader connections with their clients. There is also an opportunity for other professionals, such as those working in IT teams, to engage more directly with in-house legal teams.

Law firms that can position themselves as valued technology advisors will help in-house legal teams reduce their costs and improve efficiency. This, in turn, means they will strengthen their overall position and relationship with their clients.

The right resources

Nevertheless, there are challenges ahead for law firms eyeing a tech-advisory role because their tendency to be critical and look to identify risk does provide a barrier to change. In addition, some areas of the profession do not necessarily value other professions in the way that is necessary in the current technology era.

A useful test of whether a firm has the right resources in this environment is to use a simple 2*2 frame with the axes being ‘will’ and ‘skill’. Individuals may have the will, but not the skill; they may have the skill, but not the will; they may have both the skill and the will; or they may lack both skill and will. What do I mean by skill and will? ‘Will’ refers to the motivation of an individual to adopt technology or to promote its adoption, including a preparedness to disrupt current working patterns.

The ‘skill’ is a little more ambiguous as is it not a case of just measuring IT competence. It is more about the trend over time – whether someone has demonstrated ability to adopt new technologies and processes, or whether they are working today in the way they have always worked and are closed to the possibility of new ways of working.

Plotting ‘will’ and ‘skill’ is an exercise that should be done not just for the lawyers (or IT specialists) in firms but for all those who may be able to play a technology-related role. A particular challenge for law firms is that IT teams have often adapted to be less progressive and more focused on operational requirements because that is what partnerships valued. As a result, IT teams often don’t push for change.

Once completed, the skill and will mapping should be seen not as a diagnostic for training but as a guide to how to mobilise lawyers and support teams around technology-driven change – where are the champions, what influence do they have, where is there will without skill, and how much risk is your firm running by having too many people in the ‘lack of skill and will’ category.

A rudimentary way to consider the risk profile of your firm when it comes to the ability to navigate the changing technology landscape is as follows:

For firms in the ‘low and difficult to change’ category, serious consideration should be given to bringing in outside assistance and determining if lateral moves could be made to strengthen the will and skill mix.

I have intentionally not been prescriptive about the requisite skills that firms need; for one firm it could be an AI champion; for another it might be someone driving the benefits of voice recognition; for another it might be someone using technology to drive improved learning among lawyers. To know what the desired skill-set looks like for your firm, you must start with a clear understanding of the business you are in, your market and the technology that will impact you and your market.

Firms that are taking a leadership position in this sense can typically point to partner-led innovation efforts whereby partners take the time to work with technology players in the legal market and understand trends and applications.

Benefits of getting it right

Disruption is a matter of choice – either you can be the disrupted or the disruptor. Law firms have for a long time enjoyed a protected position from disruption, but this is no longer true. The problem with being in a protected position is that it can lead to complacency and there are some elements of this in our sector.

There are real benefits for firms that have the skill and will to handle the transition to new technology. First is the advantage of being able to better define the practice you are in and how you want to practice. Second is the client-relationship benefit where you can play the roles discussed in this article but also demonstrate a progressive culture and tech-savviness. Third is risk reduction by moving early – you are not left to pick up the pieces after the full impact of disruption plays out. Fourth is a people perspective as tech-savvy lawyers want to work for progressive firms (which becomes a virtuous cycle as these lawyers make firms more progressive). The vicious circle also holds as tech-savvy lawyers will not be drawn to very conservative and slow-moving firms.

As they consider their future in highly competitive legal markets, law firms have the ability to navigate the technology landscape if they have the will and the skill within their firms. You can be disrupted or be a disruptor. What choices will you make?

Mark Andrews is Director – Global IT Service Delivery at Baker McKenzie. He has a varied background, including time in the public and private sectors, along with considerable professional services experience. He has held roles ranging from HR to Management Consulting and has previously been a guest lecturer as part of University of Technology, Sydney’s Executive MBA program.