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Can Law Firms Be Lean?
For those who have had some exposure to Total Quality Management, the reference to Lean or Lean Six Sigma might be familiar. Total Quality Management (TQM), famed for advancing Japanese firms to remarkable achievement in product quality, was also pursued in the service industry.
In the history of Six Sigma, it was believed that for every one defect a customer found, 10 defects could be caught on the manufacturing floor. Delivering products without defects was far more cost-effective than replacing products that were returned. Returns are costly in tangible and intangible ways. They cost customer satisfaction, consumer loyalty, and market share to name a few. Here it becomes clear that Lean Six-Sigma can be applied to services as well. Business processes, like manufacturing processes, can be improved. Fixing problems in financial transactions, for example, may be more costly than the original invoice.
But does Lean have real meaning in law firms? In an atmosphere of downsizing, right-sizing and cost reduction, Lean makes sense. Doing something right is cheaper and better than doing it over or apologizing for mistakes.
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