Adventure of Strategy

I was told a while back that it is pointless trying to sell consulting services aimed at helping law firms become more innovative. They are so conservative and precedent-driven, I was told, that they simply don't "do" innovation.

Well, things may be changing. Today's Financial Times (London) contains an article titled In Pursuit of Modern Practice, announcing an innovation ranking that they have just launched, to find out who the most innovative lawyers and law firms in the UK are. The article identifies several market pressures that are forcing UK law firms to become more innovative, whether they are comfortable with it or not:

1)International Expansion. Before 2000, no law firm could claim to be genuinely global. Since then, four of the five "magic circle" firms have more than doubled in size and developed international practices to reflect the needs of their big global clients. International expansion is also driving firms having to rethink management structures, compensation systems and even the partnership model itself.

2)Client Pressure. Clients themselves have become far tougher and discerning in their purchase of legal services. Procurement agents and consultants are being involved in the procurement process, diluting personal relationships, and 'value added' aspects of the service provided have become more prominent. Simply delivering legal services competently is taken as a given to even make it to the starting blocks; not a competitive advantage.

3)The Clementi Review. This sets the stage for more intense competition by allowing new providers, perhaps with radically different approaches, access to the legal services market in the UK.

4)Advancing Technology. This is dramatically increasing opportunities for innovation, particularly in increasing value delivered to clients.

Learning to be innovative is not easy for some. James Bateson, a corporate partner at Norton Rose, says: "Innovation is not instilled early in a young lawyer's career. People are not trained to be businessmen, although you have some people to whom it comes naturally."

He sees innovation as a way for law firms to stand out in a crowded market. Currently, he is working with clients in the insurance industry to develop Sharia-compliant products for the world's Muslim population, an area in which few leading law firms are active.

It will be very interesting to see who comes out at the top of the rankings in the Financial Times survey. If you don't get the FT, then watch this space instead. I'll blog about the results as soon as they are available.

See also (on this topic) 10 Myths About Innovation and Innovation : Disruptive or Incremental.

Comments, as always, are most welcome and may be posted below.