The Internet first began flexing its commercial-use muscles in the early 1990s. The first web page launched in 1991 and the first graphical browser (Mosaic) was introduced in 1993. Quite rightly, none of us mere business types had a clue as to how to capitalize on this new (truly) whiz-bang technology. A few enlightened, though hardly impetuous, corporations decided to begin to explore the Internet. But they took prudent baby steps. Not betting the farm nor exposing themselves to great financial risk.
Warner Lambert (now part of Pfizer), set aside less than 5% of what they spent in the US to advertise its many highly recognized consumer brands (e.g., Trident gum, Lubriderm lotion, Benadryl allergy medicine, etc.) to test different approaches on the Web. They had their first consumer-facing website up in 1995. This allowed them to learn what the Internet could do for its brands – and how the Internet worked in concert with “traditional” media venues to effectively reach and communicate with consumers. As the web evolved into previously unimaginable capabilities, Warner Lambert was well ahead of its formidable competitors who hadn’t had similar foresight.
How to approach R&D at a law firm
So, back to Law Land – and how firms could use an R&D program. First off, your R&D program should be a key enabler of your firm’s strategic plan. (If your firm doesn’t have a strat plan, perhaps we should have a little chat) That is, rather than investing in an olio of random ideas, R&D programs should focus on agreed-to priority opportunity areas for the firm or be used to explore solutions that help ameliorate detrimental shortfalls or gaps. Look into ways to enhance your firm’s reputation, what services you offer to whom – where and how, opportunities to enhance your competitiveness, profitability and sustainability. Some ideas may yield incremental benefits; others may be truly pioneering.
A critical part of the process is to generate ideas on an ongoing basis. Not only from partners. Seek inputs from the business/administrative folks at the firm. Look to external sources and inspirations – beyond Law Land. Be open and curious. Then use the lens of your strategic priorities as a filter, identifying those ideas that represent near-term possibilities, those to explore longer-term and others that, frankly, just don’t cut it.
No firm has infinite resources to pursue all possible opportunities. In fact, “doing a little bit of everything” is pretty much a recipe for disaster. Therefore, developing an effective program entails saying “no” or “not yet” to some – the question is: how do you decide which opportunities represent the greatest potential for your firm?
A disciplined way to help develop and hone a short list of R&D programs is structured brainstorming sessions keying off your strategic priorities.
How would it be managed? Probably the most logical way would be to form an R&D committee, representing key areas (practices, geography and business functions) with oversight from the Executive Committee or Board.
So, to get the juices flowing, we’ll toss out some thoughts – again, underscoring that what each firm chooses need to relate to their own specific issues and opportunities. A few possibilities include:
- Explore the opportunities and business practices of adjacent practice areas
- Engage in more robust business intelligence efforts – on industries, clients and prospects
- Beta test new technologies that may enhance efficiencies or effectiveness
- Conduct external audits to see how the market (prospect clients or laterals) may view your firm
- Examine more directed client management and cross-serving initiatives
- Assess different training and development approaches
- Pilot new pricing initiatives in one or two practice areas
- Try out more efficient recruiting solutions
- Pilot succession planning alternatives
- A/B test different allocations of marketing funds to different partners
- Explore conferences or other industry-specific venues to interact and keep top of mind with clients and prospects
- Invest in “free days” – where the client team at a firm offers to spend a day at the client’s office – and the client sets the agenda, “off the clock.” The purpose is to better understand the client’s business issues and help cement the relationship with that client.
- Consider augmenting your secondments program – maybe a two-way street with your clients?
- Etc., etc.
The list could go on – but we think you get the point.
Some gutsy souls may go so far as to explore IBM Watson’s astonishing potential.
Some final thoughts
Despite persistent hand-wringing and gloom-and-doom prophesies, Law Land is a robust industry with ample resources to invest in a sustainable future and innovation. How each firm approaches this will, and should vary depending on its history, what the partnership is capable of and its strategies for success. We hope this provides sufficient reassurance that a deliberate, strategic program to explore new ideas isn’t so scary after all and can help firms better prepare for tomorrow.
R&D is a fact of life in the rest of our economy – why not in Law Land?
Janet Stanton
Adam Smith, Esq.
