LEGAL TRANSFORMATION STUDY
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- Ilene Hensley
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1 LEGAL TRANSFORMATION STUDY EXECUTIVE SUMMARY YOUR 2020 VISION OF THE FUTURE Legal Transformation Study 1
2 Fast Forward The year is Imagine where you will be and what you will be doing. Perhaps in your current position, in post-retirement or enjoying a well-deserved sabbatical. What will be your legacy? And importantly: Will your organization be thriving in 2020? Numerous external forces are transforming the legal industry and influencing the nature and quality of legal service delivery. Some of these changes, such as geopolitical power shifts and globalization are obvious. Other changes, while receiving less media coverage, are also beginning to affect how legal teams serve their clients. In the past, law firms, law departments and the stakeholders they serve, have frequently been taken by surprise by what should have been predictable practice forces trends and uncertainties that directly influence the practice of law. These surprises have often negatively impacted the quality and value of legal services and forced practitioners into a reactive solution mode at a higher risk and greater cost for their clients. Electronic discovery is an example. In retrospect, as an industry, we could have predicted and planned for the implications if we had stopped ten years ago to consider that computers and the rapid growth of were enabling an explosion of electronic evidence. If anything, this history lesson should tell us that 20/20 hindsight needs to become 20/20 foresight. Our Transformational Journey In early 2007, in response to recurring customer requests for strategic planning counsel, a group of legal industry practice leaders from law firms, corporate law departments and legal service supplier organizations were brought together to collectively envision the future of the legal profession. Determined to champion strategic planning for the legal industry, this group commissioned the global strategic and scenario planning experts at Decision Strategies International (DSI) to design a navigational plan to help all participants in the legal industry better understand, assess and prepare for our collective future. In response, DSI systematically interviewed scores of industry experts, conducted extensive market research, and defined 11 Top Legal Service Trends and Uncertainties That Will Impact Legal Practice, which in turn helped us collectively design the four planning scenarios that form the basis of this Study. Consolidating their findings, DSI research analysts observed that attorneys in law firm and corporate law practice are already facing many of these rapidly evolving STEEP forces in 2008, including: Societal Technological Economic Environmental/industrial Political/regulatory Legal Transformation Study 2
3 The current trends thus identified by Legal Transformation Study researchers include: Unbundled, outsourced and bifurcated legal services Increased application of technology Expanded globalization of legal practice Heightened demand for legal work from economic and regulatory forces Standardized legal information Deepened interest in work/life balance issues Increased Internet-based service delivery Heightened demand for specialized experts Enhanced role of non-lawyer business managers in law firms and legal departments Increased authority of corporate management in legal purchasing decisions Shifted focus to process orientation The concurrent uncertainties include: What purchase and delivery models will develop for legal services? What type of regulatory and compliance environment will exist? What will the global economy look like? To what extent will non-attorney legal service competition move upstream? Will the legal profession become deregulated? Will the industry face a skill shortage? How much will third parties focus on cost? How much of a role will privacy and data security issues play in litigation? Which litigation model will prevail globally? Will non-governmental organizations shape and influence regulatory regimes? How much will smart technologies that mimic attorney tasks penetrate the legal services market? To further advance the dynamic of proactive, transformational planning, the Study s four planning scenarios for legal practitioners grew from analysis of these trend and uncertainty forces. Study researchers observed that each of these forces is a potential impediment, and opportunity, for attorneys to provide higher quality, higher value, and more efficient legal services to their clients. Legal Transformation Study 3
4 The following matrix presents an overview of the Study s four envisioned scenarios: Blue-Chip Mega-Mania Conflict-prone world. Major economic blocs in fierce competition. Large firms acting as service consolidators. Traditional model dominated by giants. Customer loyalty is low and frustration is high. Techno-Law Peaceful world dominated by desire to further trade relations. Harmonious regulatory systems. Experts moving into technology fields to promulgate content and rules. New competition from major aggregators offering legal advice in-a-box. Legal service selection based on value and capacity. Expertopia Regulation-driven, individual-centered world. High-stakes litigation is standard with legal expertise at a premium. Regulatory break up of large providers results in numerous niche players. Finding and securing the right expertise is key. E-Marketplace World faces major economic downturn with resulting deregulation to spur growth. Flurry of new providers. New online service selection and customer satisfaction tools launched. Many legal services become commoditized. In summary, the Study identifies key global trends and uncertainties shaping the future of the legal industry and creates a set of four detailed planning scenarios from these forces. The scenarios challenge current service models within our industry, answer key strategic questions, and enable corporate and law firm counsel to affect a 20/20 strategic vision with foresight, not hindsight. How will you benefit? We encourage you to apply the Study s findings to help: Position your organization to compete more successfully in the future legal marketplace; Empower the next generation to successfully lead your organization Reduce the risk and cost of predictable long-range business threats; and Identify new opportunities and strategies for business growth, enhanced profitability and competitive immunity in the legal industry. Legal Transformation Study 4
5 After the completion of Disney World a visitor asked, Isn t it too bad that Walt Disney didn t live to see this? Mike Vance, creative director of Disney Studios, replied, He did see it. That s why it s here. Let your strategic imagination, foresight and leadership be your career legacy in Welcome aboard and enjoy the journey! Jim Seidl President Legal Research Center, Inc. P.S. The following Legal Transformation Study preview summarizes the emerging trend and uncertainty forces that are likely to impact the successful delivery of legal services worldwide between 2008 and The full Study provides practical insights on how you and your clients can plan for and leverage these forces, in the context of four strategic planning scenarios, to your and their strategic advantage. For more information about the Study, including publication ordering and educational program queries, please contact me at , ext. 210, or jseidl@lrci.com, or visit our Study website at Thanks for your interest in our Study. Legal Transformation Study 5
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