Gartner reports that the average organisation has implemented five major firmwide changes in the past three years, and nearly 75% expect to increase the number of such initiatives in the next three years. However, half of these change initiatives fail, and only 34% are deemed successful.

Several factors contribute to these unsatisfactory outcomes:
 

• Poor planning

• Inadequate sponsorship

• Limited project management and execution capability

• A culture resistant to change

• Sub-standard communications

• A lack of understanding of why the firm needs to change

To overcome these challenges, a well-aligned change management program is essential. Unfortunately, business leaders sometimes underestimate the importance of change management, viewing the additional project costs as unnecessary.

For instance, a firm aiming for a 50% reduction in the effort and time required to execute their high-volume, low-cost legal processes will also be expecting to double their margins and, in turn, improve profitability. Such an intervention will require an investment in modern technologies to eliminate manual tasks and automate the processes. In theory, this makes for a sound argument; however, it assumes that lawyers and paralegals will readily adopt the changes. Should they not be on board, due to factors like those noted above, unplanned issues will arise, such as:
 

• The project timeline and budget may exceed forecasts, leading to higher costs and delayed results.

• With firmwide apathy, the anticipated financial benefits may only become a fraction of the expected savings, thus extending the ROI period.

• Talented lawyers and paralegals may leave the firm during the transition due to frustration or fear of the unknown.

• The firm’s reputation may suffer in the eyes of staff, peer firms, clients, and the industry.

Considering the unexpected challenges that can emerge when implementing a change intervention without a change management plan, is this a risk you’re willing to take?

If you need assistance with managing change, feel free to reach out. 

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Robert Wagner, Partner, Harriss Wagner Consultants & Advisers

 As progressive firm’s probe the future to search for competitive advantages, rapid developments with technologies often makes this an obvious place to start. To capitalise on generating new business opportunities and to introduce operational efficiencies, a robust technology review will help identify outdated or poorly designed technologies operating within your business. A technology review should begin with understanding the current pain points and identifying what specific benefits are being sought. It should also determine what is available to overcome the pain points, along with the quick-win and longer-term goals to achieve the desired benefits. Once armed with these practical insights, a road map should be established and communicated to all stakeholders to create visibility of the future. The road map should explicitly reveal the missed opportunities and recommended solutions including the financial considerations and a return on investment plan. The road map should also highlight the technological improvements that will lead to greater competitiveness and be accompanied by a transition plan that will facilitate achieving adoption.