The Bigger Picture: Driving Client Value Through Collaboration
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1 The Bigger Picture: Driving Client Value Through Collaboration EDITED BY LAURA SLATER Bigger-Picture_RO_2016.indd i 15/11/ :34
2 Head of events and books Leah Darbyshire Commissioning editor Laura Slater Editorial assistant Edward Bowes Published by ARK Group: UK, Europe and Asia office 6 14 Underwood Street London, N1 7JQ United Kingdom Tel: +44(0) publishing@ark-group.com North America office 4408 N. Rockwood Drive, Suite 150 Peoria IL United States Tel: +1 (309) publishingna@ark-group.com Layout by Susie Bell, Printed by Canon (UK) Ltd, Cockshot Hill, Reigate, RH2 8BF, United Kingdom ISBN: A catalogue record for this book is available from the British Library 2016 ARK Group All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, except in accordance with the provisions of the Copyright, Designs and Patents Act 1988 or under terms of a licence issued by the Copyright Licencing Agency in respect of photocopying and/or reprographic reproduction. Application for permission for other use of copyright material, including permission to reproduce extracts in other published works, should be made in writing to the publishers. Full acknowledgement of author, publisher, and source must be given. DISCLAIMER This publication is intended as a general guide only. The information and opinions it contains are not intended to provide legal advice. The publishers bear no responsibility for any errors or omissions contained herein. ARK Group is a division of Wilmington plc. The company is registered in England & Wales with company number GB Registered office: 6-14 Underwood Street, London N1 7JQ. VAT Number: GB Bigger-Picture_RO_2016.indd ii 15/11/ :34
3 Contents Executive summary vii About the authors xi Chapter 1: Smart collaboration Why breaking down silos is critical for law firms By Heidi K. Gardner, distinguished fellow in the Center on the Legal Profession at Harvard Law School Financial and strategic benefits for firms Tangible and intangible benefits of collaboration for individual lawyers.. 5 The people case for collaboration Typical barriers to collaboration Clients point of view Conclusion Chapter 2: The neuroscience of collaboration and altruism How the latest science can boost client and team engagement By Dr Bob Murray and Dr Alicia Fortinberry, founders and principals of Fortinberry Murray What science says What this means for client and team engagement Energising your firm Conclusion Chapter 3: The synergistic value of collaboration By Paul Williams, partner at Shook, Hardy and Bacon Creating the opportunity Leveraging the opportunity Conclusion iii Bigger-Picture_RO_2016.indd iii 15/11/ :34
4 Contents Chapter 4: Creating client value through collaboration By Jill King, consultant at Jill King Insights, and former global HR director at Linklaters What working collaboratively really means Barriers to collaboration The value of practice and partner retreats Building connections through training programmes Internal networking Virtual team-working The importance of office layout Collaboration tools and systems Knowledge-based client relationships Developing a culture of collaboration Chapter 5: Developing law firm compensation systems to encourage and reward collaboration By Jim Pagliaro, partner at Bernero & Press LLC Partner compensation systems benefit from transparency in terms of measurements and results Perception of fairness is paramount It is important to measure the right things The best partner compensation systems employ the right mix of data and subjective judgment Getting compensation right Chapter 6: Collaboration in high performance teams Introduction What makes a team? The secret to achieving high performance through collaboration? The formation of high performance teams The building blocks The formation of high performance teams Team roles to support collaboration Conclusion iv Bigger-Picture_RO_2016.indd iv 15/11/ :34
5 The Bigger Picture: Driving Client Value Through Collaboration Chapter 7: Collaborative improvement Using Lean Six Sigma to deliver greater value, increase efficiency, and enhance relationships By Catherine Alman MacDonagh JD, CEO and founder of the Legal Lean Sigma Institute and Thomas L Sager, partner at Ballard Spahr and former general counsel at DuPont Competitive advantage Successful examples Collaborative intelligence Chapter 8: Taking a collaborative approach to containing legal spend By Danny Ertel, partner at Vantage Partners Effective collaboration begins with preparation Ready, set, collaborate Chapter 9: Case study on law firm client collaboration through the managed legal network By Richard Tapp, company secretary and director of legal services, Carillion plc and Fleur Kitchingman, senior vice president legal and corporate secretary, Carillion Canada Introduction Agenda for change Our aspirations Our processes Reflections on collaboration v Bigger-Picture_RO_2016.indd v 15/11/ :34
6 Bigger-Picture_RO_2016.indd vi 15/11/ :34
7 Executive summary When lawyers collaborate, work is made more profitable, client relationships are strengthened, and individuals are more engaged. In a shrinking market where law firms are increasingly looking for new ways to further client development and boost revenues, collaborative efforts to expand the collective pie have become a strategic imperative. Likewise, at a time when many firms are focusing on talent retention as a top priority, creating a culture where mentorship and teamwork are rewarded, and knowledge and credit shared, must be more than a utopian vision for firms that seek to attract and retain the very best. The drive to collaborate is equally coming from the client side. As corporate businesses face more complex, multidisciplinary problems and in-house counsel are obliged to work harder at controlling their budgets, they are also looking for their preferred firms to partner with them to find innovative solutions, streamline processes, and ultimately deliver greater value. The law firm-law department relationship is a two-way street and by aligning interests and working together towards common goals, both sides might just get more of what they want. The Bigger Picture: Driving Client Value Through Collaboration examines the multiplying effects of collaboration on value. It provides practical advice on how to encourage and break down the barriers to internal and external collaboration and teamwork, and how to reward desired behaviours. The book also includes case studies from firms that are already benefiting from firm- and practice-group-wide collaboration initiatives, and lessons learned by law firms and law departments that have developed successful partnerships. The opening chapters of this book make an evidence-backed business case for greater, smarter collaboration between lawyers. Heidi K. Gardner, distinguished fellow in Harvard Law School s Center on the Legal Profession, opens proceedings by sharing insight drawn from her decade s worth of research with lawyers, leaders, and clients. She explains the reasons why clients increasingly care about (and vii Bigger-Picture_RO_2016.indd vii 15/11/ :34
8 Executive summary will pay for) collaboration, outlines the personal and collective benefits when lawyers collaborate smarter (i.e. in a way that clients perceive as adding value), and explores the barriers that typically exist to prevent lawyers from sharing their relationships, time, and expertise. Following on from this, thought leaders Dr Bob Murray and Dr Alicia Fortinberry, founders of Fortinberry Murray, explain the science behind collaboration and altruism and how firms can foster both to boost both lawyer engagement and client loyalty. The next chapters focus more specifically on the challenges and benefits of external and internal connectivity and communication, and collaboration within individual teams. Paul Williams, partner at Shook, Hardy & Bacon, discusses partnering with clients to improve processes, provide greater value legal services, and deepen relationships. Jill King, consultant and former global HR director at Linklaters, looks at the need for law firms to collaborate internally, across disciplinary and organisational boundaries, in order to tackle clients more complex issues and create opportunities for growth. And Jim Pagliaro, partner of Bernero and Press and former managing partner at Morgan, Lewis & Bockius LLP, discusses the barriers that most firms compensation systems pose to internal collaboration, and how best to move partners to the point where collaboration in client service and development becomes part of the cultural DNA of the firm. Finally, Richard Hinwood, head of strategy and chief of staff at Withers Worldwide, explores the role that collaboration plays in high performance and how all teams can use collaboration to their advantage. The remaining chapters of this book provide outstanding examples of collaboration driving value for firms and clients. Catherine Alman MacDonagh JD, CEO and founder of the Legal Lean Sigma Institute, and Thomas L Sager, partner at Ballard Spahr and former general counsel at DuPont, share several illuminating examples of collaborative process improvement, including a focus on 2016 Value Champions Aon. Staying on the theme of process improvement, Danny Ertel, partner of Vantage Parnters, next discusses how a joint approach to process mapping can lead to significant improvements and, ultimately, costs savings (for the client) and improved margins (for the firm). In a concluding case study, Richard Tapp, company secretary and director of legal services at Carillion plc, and Fleur Kitchingman, senior vice president legal and corporate secretary at Carillion Canada, describe viii Bigger-Picture_RO_2016.indd viii 15/11/ :34
9 The Bigger Picture: Driving Client Value Through Collaboration the company s highly successful collaborative model for legal resourcing and explain why they believe collaboration between panel firms is vital to achieving consistency of service, quality, speed of response, and the ability to scan the horizon for future challenges. In a competitive legal service market, clients are increasingly looking to extract greater value from the legal services they receive. As one contributor to this book comments, a truly collaborative relationship, where both sides work together towards a common goal, can lead to results where the sum is truly greater than its parts. While collaboration may seem like anathema to lawyers used to being recognised and rewarded based on individual contributions, as this book explores, there are considerable and quantifiable benefits to be had from taking a collaborative approach to legal work and embracing the bigger picture of what may be achieved together. ix Bigger-Picture_RO_2016.indd ix 15/11/ :34
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