Law Firm CI

CI Functions

Law firms today are on the cusp of building more sophisticated CI functions ' the kind that have the power to create true competitive advantage. A few may even be accomplishing it. Yet just as the data and resources available to law firms have a long way to go, so too does the analytical engine that transforms this data into valuable, strategic insight. So what's holding them back?

1. Poor, or No, Analytical Skills

We've all seen it. The litigator who fancies herself a statistician. Or the marketing manager whose one course in college makes him or her an expert. Given that the typical person uses data on a daily basis, it is no wonder we all feel empowered to interpret information. It is our job. Yet transforming disparate pieces of information into a comprehensive understanding of a situation is hardly a simple task. The best analysts are typically balanced right- and left-brained thinkers who bring creativity and perspective to the rigor of quantitative analysis.

Law firms today employ few professional analysts, and strategic analysis in this data-rich age is conspicuously absent. Of those law firms that do have analytical horsepower, many unfortunately succumb to other missteps, such as failing to expend the resources required or poorly articulating the underlying objective. No matter the driver, the result is the same: information, not insights. (Or worse, opinions without fact.)

2. Irresponsible Data Manipulation

Anyone who has ever worked heavily with data sets knows that manipulating data is a near art form. We have boasted in the halls of our consulting/accounting/research firms about how we were able to support or refute a particular hypothesis or uncover an unexpected correlation through the sheer power of our unparalleled coding skills. We know too that many among us probably could return to the same data set with a contradictory mandate and yield an equally powerful result. In other words, data can lie.

Knowing how to manipulate data without being manipulative requires more than a fundamental understanding of statistics. It demands a responsible approach and a keen understanding of what I like to call “the question behind the question.” This kind of skill set is a rare one, as are the environments in which they flourish (see next point).

3. Missing the Big Picture

The typical law firm CI function often (unnecessarily) erects a barrier between the researcher and end user of information. On one side of the abyss are the researchers (you know, us nerdy types who enjoy crunching numbers and whom firms like to shelter from the light of day). On the other side are the lawyers, practice group heads and firm management who are increasingly demanding data to support strategic decisions. Bridging the chasm are the “translators” ' BD folks, marketers, practice managers ' whose job it is to review information and translate it into something palatable for the attorneys.

This structure is a mistake. Disconnecting those savvy at interpreting data from those seeking to find meaning in the data can render the data all but useless. Without the big picture, even the best analyst can deliver irrelevant insights. Savvy firms overcome this challenge by ensuring that CI has a seat at the table. Include a CI team member in key meetings and conversations where leaders are discussing their strategic objectives, whether or not a specific data request has been made. Seasoned analysts will not only benefit from inclusion, but also be able to add value in the form of ideas, approaches and available resources to enhance the conversation. Everybody wins.

Conclusion

The ultra-competitive legal landscape is here. Just as corporations as diverse as Amazon, Google, Proctor & Gamble and GEICO use data analysis to inform their strategic decisions, so too will tomorrow's law firms. A sophisticated law firm's CI team has the power to create competitive advantage. In today's marketplace, why leave this edge to chance?

Marcie Borgal Shunk, a member of this newsletter's Board of Editors, is a Senior Consultant at LawVision Group and member of the Legal Marketing Association's Board of Directors.