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A Strategic Conversation About the Future of the New Hampshire Bar. Presentation by Charles F. Robinson Clearwater, Florida. www.CharlesRobinsonFuturist.com. Chief Justice Broderick. “I believe that when we look back at the legal landscape 15 years from now, we will barely recognize today.

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a strategic conversation about the future of the new hampshire bar

A Strategic Conversation About the Future of the New Hampshire Bar

Presentation by

Charles F. Robinson

Clearwater, Florida

www.CharlesRobinsonFuturist.com

chief justice broderick
Chief Justice Broderick
  • “I believe that when we look back at the legal landscape 15 years from now, we will barely recognize today.
  • It would be silly to think that with technology moving at the speed of light, that the practice of law and the court system will remain largely as they are.
  • We need to do all that we can to design the future.”
tom peters predicts
Tom Peters Predicts
  • Ninety per cent white-collar jobs will disappear in the next ten years.
  • What color collars do lawyers wear?
  • Is there an exception for lawyers?
change implications
Change Implications
  • Speeches, articles, and even retreats to teach how to deal with change won’t change behavior without
    • Follow-up positive reinforcement
    • Multidisciplinary support
    • Framing change in a way to bridge the present with the future
  • If your passion for change is subsumed in the tyranny of the urgent Monday morning you will hate change even more
leading the profession to a preferred future
Leading the Profession to a Preferred Future
  • If we don’t drive the vehicle to our future we will end up wherever we are taken
  • Institutionalize search for foresight
scenario thinking
Scenario Thinking

Focus on the capability of the organization to

  • Perceive what is going on in the practice environment
  • Think through what this means for the bench and bar
  • Act upon the new knowledge
objectives
Objectives

Get beyond traditional thinking that

  • Acts like a filter, restricting the ability to perceive new information
  • Imprisons us with personal biases and routines within a world of recipes and business-as-usual assumptions
  • Frames our response automatically
a strategic conversation
A Strategic Conversation
  • A chance to rehearse the future but not predict the future.
  • Change is too complex to allow prediction.
  • Looking for the “dots on the horizon”-signs of change and how we should adapt.
  • Must move toward adaptive organizational learning
    • Perception
    • Thinking
    • Action
wired magazine january 1998
Wired Magazine (January, 1998)

Guardians of the old order are trying their best to hold back change and preserve their power.

bill gates warning
Bill Gates Warning

“We always overestimate the change that will occur in the next two years and underestimate the change that will occur in the next ten.”

tom peters
Tom Peters

“If you don’t like change, you are going to like irrelevance even less”

slide20
“This ‘telephone’ has too many shortcomings to be seriously considered as a means of communication. The device is inherently of no value to us.”

Western Union internal memo, 1876.

slide21
“I’m just glad it’ll be Clark Gable who’s falling on his face and not Gary Cooper.”

Gary Cooper on his decision not to take the leading role in “Gone With the Wind”

slide22
“Everything that can be invented has been invented.”

Charles H. Duell,Commissioner,US Office of Patents, 1899

slide27
“What Are the Forces Already at Work in Our Profession That Have the Potential to Profoundly Transform Our Profession’s Structure?”
  • Each Force a “Discontinuity”
  • Examine Implications for Each Discontinuous Force
current forces impacting the profession
Nonlawyer competition

Diminished perceived value in attorney services

Technology displacement

Lawyer supply exceeds demand

Disintermediation- Out with the middle person

Current Forces Impacting the Profession
the lawyer s world is flat
The Lawyer’s World is Flat
  • Program to run in 3 Texas Law Schools this year
  • Focus on how practice is changing and what law students and young lawyers can do to thrive in the 21st century
  • Business as usual not an option
the world is flat a brief history of the 21st century

The World is FlatA Brief History Of The 21st Century

The 10 Forces That Flattened the World

Thomas L. Friedman

flattener 1 11 9 1989 fall of berlin wall
Flattener 1- 11/9/1989 Fall of Berlin Wall
  • Ultimately liberated all Soviet Union captive people
  • Tipped balance of power to those advocating democratic, consensual, free-market-oriented governance
  • Capitalism the only surviving choice
flattener 2 8 9 95 netscape goes public
Flattener 2 - 8/9/95Netscape goes Public
  • From PC-based computing platform to Internet-based platform
  • Killer applications
    • E-mail
    • Internet browsing
  • Netscape first mainstream browser culture for general public
  • Internet stopped being province of early adopters and geeks
flattener 3 work flow software
Flattener 3 - Work Flow Software

Let’s Do Lunch: Have Your ApplicationTalk to MyApplication

Work flow moved from manual work flow to

  • Seamless interoperable work flow
  • Seamless interoperable work flow with other companies
  • With standard language (XML) makes e-filing possible
  • Global platform for multiple forms of collaboration
flattener 4 open sourcing self organizing collaborative communities
Flattener 4- Open-SourcingSelf-Organizing Collaborative Communities
  • Bottom up, shared, constantly improved by users, available free to anyone
  • Motive is the “psychic buzz” that comes from creating a collective product that can beat something produced by giants like Microsoft and IBM
  • Example - Apache an open source software system, powers 2/3 of the world’s web sites
  • Wikipedia the open source encyclopedia
  • Linux- Top candidate to replace Windows OS
flattener 5 outsourcing y2k
Flattener 5 - OutsourcingY2K

India

  • No natural resources
  • Mines brains of its own by educating a relatively large slice of its elites in
    • Sciences
    • Engineering
    • Medicine
  • Creates giant knowledge meritocracy
  • A talent factory for engineering, computer science, and software for the globe- Law?
  • Software engineers took lead in fixing Y2K bug
flattener 6 offshoring running with gazelles eating with lions
Flattener 6- OffshoringRunning with Gazelles, Eating with Lions

Every morning in Africa, a gazelle wakes up.

It knows it must run faster than the fastest lion or it will be killed.

Every morning a lion wakes up.

It knows it must outrun the slowest gazelle or it will starve to death.

It doesn’t matter if you are a lion or a gazelle.

When the sun comes up, you better start running.

outsourcing v offshoring
Outsourcing v. Offshoring
  • Outsourcing- Take specific, but limited function that you were doing in-house, eg
    • Research
    • Document drafting
  • Have outsource company take those functions for you and you reintegrate their work back into your operation
offshoring
Offshoring
  • Takes a part of the firm in Canton, Ohio and moves it to Canton, China.
    • The firm produces the work in the same way with lower taxes, cheaper labor, subsidized energy, and lower health-care costs
  • Really started 12-11-2001 when China formally joined the WTO.
  • Made China’s own competitive playing field as level as the rest of the world
  • China agreed to follow international law and standard business practices

Not certain who is lion, who is gazelle

chinese looking to future as designers
Chinese looking to future as designers
  • May be 10 years out
  • In 30 years will have gone from
    • Sold in China
    • Made in China
    • Designed in China
    • Dreamed up in China
slide41
“If Americans and Europeans want to benefit from the flattening of the world and the interconnecting of all the markets and knowledge centers, they will all have to run as fast as the fastest lion- and I suspect that lion will be China, and I suspect that it will be pretty darn fast.”

Thomas Friedman

flattener 7 supply chaining
Flattener 7 - Supply-Chaining

When a customer lifts a product off the shelf

the cashier scans it in. At that moment:

  • A signal is generated from the Wal-Mart network to the supplier
  • The signal shows up on the supplier’s screen
  • To make another of that item and ship it via the Wal-Mart supply chain, and the whole cycle will start anew

Wal-Mart database is entire Internet X 2

flattener 8 insourcing
Flattener 8- Insourcing

UPS slogan-

Your World Synchronized

What the guys in the Funny Brown Shorts Are Really Doing

flattener 8 insourcing44
Flattener 8- Insourcing
  • Not just package delivery; synchronizing global supply chains
  • Toshiba laptops under warranty
    • Instructions to ship UPS to Toshiba
    • Actually goes to UPS Louisville hub for repair by UPS instead of UPS to Toshiba to UPS to customer
flattener 8 insourcing45
Flattener 8- Insourcing
  • UPS dispatches Papa John pizza delivery
  • Nike Shoes

UPS has spent $1billion since 1996 to serve any supply chain in the world

flattener 9 in forming google yahoo msn web search
Flattener 9- In-FormingGoogle, Yahoo!, MSN Web Search
  • Informing is the ability to build and deploy your own personal supply chain- a supply chain of information, knowledge, and entertainment.
  • Allows self-collaboration- becoming your own self-directed and self-empowered researcher, editor without a trip to the library.
  • Searching for knowledge.
flattener 9 in forming google yahoo msn web search47
Flattener 9- In-FormingGoogle, Yahoo!, MSN Web Search
  • Seeking like-minded people and communities
  • Google doing over one billion searches per day
  • iPod, Ceiva, TiVo, Amazon
flattener 10 the steroids digital mobile personal and virtual
Flattener 10- The SteroidsDigital, Mobile, Personal, and Virtual
  • Taking all forms of collaboration- outsourcing, offshoring, open-sourcing, supply-chaining, insourcing, and in-forming, and doing so in a way that is
    • Digital
    • Mobile
    • Virtual
    • Personal
  • Enhancing each one and making the world flatter by the day
what do we tell our kids grandkids
What Do We Tell Our Kids/Grandkids?

Only one message-

You must constantly upgrade your skills

“Children, when I was growing up, my parents used to say to me,

‘Tom finish your dinner- people in China and India are starving.’

My advice to you is:

Kids, finish your homework- people in China and India are starving for your jobs.”

become an untouchable
Become an “Untouchable”
  • People whose jobs cannot be outsourced
  • Four broad categories
special
Special
  • Michael Jordan
  • Bill Gates
specialized
Specialized

Work cannot be outsourced because niche not fungible

  • Fungible means easily digitized or substituted
  • Lawyers in niche practices
  • Management consultants
  • Brain Surgeons
  • Cutting edge computer architects
  • Cutting edge software engineers
  • Skills that are in high demand and not fungible
chief justice broderick53
Chief Justice Broderick

“It is a consumer world and lawyers are often seen as fungible commodities.”

anchored
Anchored
  • For those who cannot be special or specialized
  • Job must be done in a specific location involving face-to face contact
    • Barber
    • Chef/waitperson
    • Home town lawyers with minimum fungibility
    • Car Mechanic
    • Plumber
    • Dentist
anchored55
Anchored
  • Compensation determined by local conditions
  • Lawyer may outsource fungible services like research or document drafting to a legal aide in Bangalore
really adaptable
Really Adaptable
  • Acquire new skills, knowledge, and expertise that enable value creation
  • Skillfully and socially adaptable
  • Able to learn how to learn
  • May be survival skill for the anchored lawyer
the threatened
The Threatened

Those who are

  • Not very special
  • Not very specialized
  • Not very anchored
  • Not very adaptable
the triple convergence
The Triple Convergence
  • Convergence One- The “ten forces” converge in complementary, mutually enhancing fashion- One machine scans, emails, prints, faxes, and copies
  • Convergence Two- Move from vertical chain of command for value creation to horizontal collaboration
  • Convergence Three- You don’t have to live in America to get good work. It’s a plug and play world.
how the profession can cope
How the Profession Can Cope
  • Rule 1: When the world goes flat- and you are feeling flattened-

reach for a shovel and dig inside yourself.

Don’t try to build walls

how the profession can cope60
How the Profession Can Cope
  • Rule 2- And the small shall act big…

One way small companies flourish in the flat world is by learning to act real big. Take advantage of new tools for collaboration to reach farther, faster, wider, and deeper.

how firms can cope
How Firms Can Cope
  • Rule 3: And the big shall act small… One way that big companies learn to flourish in the flat world is by learning how to act really small by enabling their customers to act really big. Make business a buffet for customers to serve themselves in their own way. Self directed consumer
  • Rule 4: The best companies are the best collaborators
trends v cycles
Trends v. Cycles
  • Cycle says wait it out and it will come back.
    • Weather
    • Markets
  • Trend says will not likely return to status quo
    • We must deal with it or
    • Let it take us wherever the trend goes
  • Watch out for Wild Cards
trend or cycle
Trend or Cycle
  • Substantive Practice Areas Threatened
      • Family Law
      • Real Estate
      • Tax and Estate Planning
      • PI Defense
      • Litigation
      • Business advice
substantive practice areas threatened
Substantive Practice Areas Threatened

Family Law

  • >70% Pro Se
  • Rules of Civil Procedure gone
pro se litigation
Pro se litigation
  • One party pro se in 85% of all cases in District Court and 48% in Superior Court
  • Both sides unrepresented in 38% of cases
  • Domestic relations cases 70% one party
  • Domestic violence cases 97% one party

Report on NH Supreme Court Task Force on Self-Represented Litigants- January 2004

substantive practice areas threatened67
Substantive Practice Areas Threatened

Real Estate

  • Realtors
  • Internet
slide68
Substantive Practice Areas Threatened

Tax and Estate Planning

  • Wills on-line
  • Financial Planners, CPA
  • Death of “Death Tax”
jonathon blattmachr
Jonathon Blattmachr
  • Estate tax eliminated in Canada over 20 years ago
  • First few years lawyers busy adjusting estate plans
  • After that Trusts & Estates practice dropped by 90%
estate tax repeal
Estate Tax Repeal
  • Passed in House- Pending in Senate
  • What are the implications to CLE providers and estate planning lawyers?
  • Is Canada’s repeal a model?
substantive practice areas threatened71
Substantive Practice Areas Threatened

House Counsel

  • Trade Association legal advice
slide72
Substantive Practice Areas Threatened

PI Defense

  • Insurance companies
  • Tort Reform
tort reform
Tort Reform
  • “Economically destructive litigation”
  • US most expensive tort system in the world
  • $179 billion 2002 direct costs
    • $636 per capita
    • 150% of amount spent on pharmaceuticals
  • Bills pending in 20 states
  • 11 states have passed legislation

“Trends” Volume 1, Issue 3, July 2003

senator chuck schumer d ny
Senator Chuck Schumer, D NY

“Lawsuits have gotten out of control in America and something needs to be done to rein them in.”

president bush 2004
President Bush- 2004
  • “Lawyers walk away with up to 40% of every settlement….for frivolous suits…driving a wedge between them (doctor) and patient.”
  • Unnecessary lawsuits drive docs to prescribe drugs and procedures to avoid lawsuits.
house oks fines for lawyers for meritless suits
House OKs Fines for Lawyers for Meritless Suits

House Majority Leader Tom DeLay

“…pestilent culture of hyper-litigation.”

Congress should “take back America’s legal system from the Lords of the Ambulance Chase.”

Reuters 9-14-04

substantive practice areas threatened77
Substantive Practice Areas Threatened

Litigation

  • Sport for the wealthy
  • Government attack on PI and Med Mal
  • Pro se litigators
mary ryan aba committee on delivery of legal services
Mary Ryan, ABA Committee on Delivery of Legal Services

“A lawyer is best defined as someone who provides the best services in a free market, not the only services in a protected market.”

trend or cycle81
Trend or Cycle
  • Substantive Practice Areas Threatened
  • MJP
slide82
Alphabet Soup

M

J

P

M

D

P

A

B

P

S

A

What Does It Mean For Your Practice?

2 multijurisdictional practice
2. Multijurisdictional Practice
  • Birbrower et. al v. Superior Court of Santa Clara County, 949 P.2d 1 (Cal 1998)
new jersey mjp arguments april 2003
New Jersey MJP ArgumentsApril 2003
  • “Specific knowledge of New Jersey law, or the laws of any state, is overemphasized.”
    • “You go to the computer or have someone do it for you.”

“What are we, Planet New Jersey?”

new jersey mjp contd
New Jersey MJP contd
  • There are 60,000 New Jersey residents working in Philadelphia, and many thousands more in New York state.
  • What is rationale to place arbitrary borders on regional practice?
mjp and reciprocity breaking down the borders
MJP and reciprocity -breaking down the borders

The essential elements for reciprocal admission of Washington, Oregon, Utah and Wyoming attorneys in Idaho are:

  • Graduation from an ABA approved law school.
  • Prior passage of the Washington, Oregon, Utah and/or Wyoming bar examination.
  • Three years of practice in Washington, Oregon, Utah or Wyoming.
  • Good moral character.
  • Fifteen hours of CLE
    • Practice
    • Procedure
    • Ethics
borderless world
Borderless World
  • Regional/National reciprocity 26 states now
  • GATS Treaty
  • Driver’s license approach in 5-10 years
trend or cycle88
Trend or Cycle
  • Substantive Practice Areas Threatened
  • MJP
  • Technology
law office of the future
Law Office of the Future
  • A computer + a dog + a lawyer.
  • The computer will practice law.
  • The dog is there to keep the lawyer away from the computer.
  • The lawyer is there to feed the dog.

Dr. Peter Bishop, Associate professor of Human Sciences University of Houston-Clear Lake

3 technology disintermediation
3. Technology Disintermediation
  • Internet Available to Everyone
    • Wills, Tax Return Prep On-line
  • Like Printing Press to Church/Temple
  • Literacy Brings New Relationships
the future of law facing the challenges of information technology
The Future of Law: Facing the Challenges of Information Technology

Richard Susskind

  • Legal Profession Will Change Beyond Recognition
  • Three Types of Legal Service
    • Traditional
    • Commoditized
    • Latent

Commodity

Traditional

Latent

susskind s key questions
Susskind’s Key Questions
  • Likely developments in IT over next 10 years
  • Possibilities for law practice in light of IT changes
  • Future for lawyers and what part is the world wide web likely to play
transforming the law essays on technology justice and the legal marketplace richard susskind 2000
Transforming the Law; Essays on Technology, Justice and the Legal Marketplace- Richard Susskind 2000
  • Introduces the “Susskind Grid”
  • First work tying together technology use and strategic future planning for lawyers
slide94
Figure 2.1 - Today’s Client Service Chain

Recognition

Selection

Service

blatant

trigger

selection

of lawyer

consultative

advice

Richard Susskind 2000

C

slide95
Figure 2.4 - Transforming the Recognition element

of the Client Service Chain

proactive

service

Transforming the Recognition

element of the Client Service Chain

  • infomediaries
  • legal audits
  • push technology
  • intelligent agents
  • embedded expertise
  • Intranet implants
  • business-episode based

blatant

trigger

from

to

blatant

trigger

Richard Susskind 2000

C

slide96
Figure 2.3 - Transforming the Selection element

of the Client Service Chain

Transforming the Selection

element of the Client Service Chain

selection

of adviser

  • infomediaries
  • online auctions
  • virtual teams

selection

of source of

guidance

selection

of lawyer

from

to

  • assessment
  • of need
  • infomediaries

selection

of online

service

  • infomediaries

Richard Susskind 2000

C

slide97
Figure 2.2 - Transforming the Service element

of the Client Service Chain

  • high-end, traditional

Transforming the Service

element of the Client Service Chain

consultative

advice

  • project management
  • document management
  • legal research
  • strategy

unbundled

services

consultative

advice

from

to

online

service

  • commoditized
  • latent market
  • multi-disciplinary

Richard Susskind 2000

C

slide98
Figure 2.5 - Tomorrow’s Client Service Chain

Recognition

Selection

Service

selection

of adviser

consultative

advice

proactive

service

selection

of source of

guidance

unbundled

services

blatant

trigger

selection

of online

service

online

service

Richard Susskind 2000

C

technology disintermediation trend or cycle
Technology Disintermediation- Trend or Cycle?

What are implications if Susskind is correct?

  • Traditional-large firm, large client only
  • Commodity- better, faster, cheaper
  • Latent-may be no direct client contact
trend or cycle100
Trend or Cycle
  • Substantive Practice Areas Threatened
  • MJP
  • Technology
  • Offshoring/reintermediation
intel ceo craig barrett jan feb 2004 business 2 0
Intel CEO Craig BarrettJan-Feb 2004 Business 2.0
  • In space of 5 years close to 3 billion people have been brought into mainstream capitalist economic infrastructure (India, China, Russia and some Russian satellite countries)
  • Substantially lower wages with comparable or superior education to US applicants.
  • “Unless you’re my auto mechanic or plumber, I don’t care where the hell you’re located.”
brad hildebrandt 1 14 04
Brad Hildebrandt 1-14-04
  • Outsourcing to India $10 billion in next 5 years
  • Hildebrandt offering 3 choices
    • Consult with firm re outsourcing
    • Several clients form captive outsourcing firm
    • Joint venture with existing outsourcing company
lou dobbs report
Lou Dobbs Report
  • 8-10% of all associates hired by large law firms will be offshore hires (as in India) by 2011.
    • 2000 1,793 off-shore
    • 2005 14,200
    • 2010 34,673
    • 2015 74,672
    • U.S. Dept of Labor & Forrester Research
  • The new associates will take on roughly the same work as new associates handle in the firms now at less than 20% of the cost.
outsourcing hits legal services star tribune 1 16 2004
Outsourcing Hits Legal Services Star Tribune 1-16-2004
  • “First it was apparel workers-the working class-who saw their $10-an-hour jobs go overseas.”
  • “Now six-figure lawyers and legal support staffs are starting to sweat.”
    • Westlaw has test office in Bombay
  • GE and other behemoths using Indian lawyers to supplant work formerly done by outside law firms.
outsourcing hits legal services contd
Outsourcing Hits Legal Services contd
  • Forrester Research- by 2015 489,000 U.S. lawyer jobs will shift to lower cost countries
  • Mindcrest Inc. legal process outsourcing
    • Enhanced levels of service and a 30-70% lower cost to customer
slide107
“About a year ago I hired a developer in India to do my job. I pay him $12,000 to do the job I get paid $67,300 for. He is happy to have the work. I am happy that I only have to work about 90 minutes per day (I still have to attend meetings myself, and I spend a few minutes every day talking code with my Indian counterpart.) The rest of my time my employer thinks I’m telecommuting. They are happy to let me telecommute because my output is higher than most of my coworkers. Now I’m considering getting a second job and doing the same thing with it. That may be pushing my luck though. The extra money would be nice, but that could push my workday over five hours.” —from posting at Slashdot (02.04.04), reported by Dan Pink
no limits
No Limits?
  • “Short on Priests, U.S. Catholics Outsource Prayer to Indian Clergy”—Headline, New York Times/06.13.04 (“Special intentions,” $.90 for Indians, $5.00 for Americans)
slide109
Level 5 (top) certification/Carnegie Mellon Software Engineering Institute: 35 of 70 companies in world are from IndiaSource: Wired/02.04
bye bye associates
Bye-Bye Associates?

“…the kind of work now being sent off shore, and expected to be increasingly sent off-shore, is work normally done by first/second-year associates in the largest law firms -- research, legal memos, that kind of thing.

john henry founder ceo elawforum
John Henry- Founder/CEO elawforum
  • Aggregates large company legal problems and negotiates fixed-fee deals
  • “We just saved a client $55 million in 2 deals.”
  • “Our challenge now is to do a thousand of these deals.”
so now what do we do
So Now What Do We Do?
  • Will our guild return to those glory days of yesteryear?
  • Are we experiencing discontinuous trends or are we merely in a cycle?

“I am persuaded more than ever that the status quo is not our friend,” Broderick

  • First question- Is status quo an option?
so now what do we do115
So Now What Do We Do?

If answer to #1 is no, how do we get into the change process?

  • Role of the bar
  • Role of the individual lawyer/law firm
change or die fast company may 2005
Change or Die Fast Company May 2005

What if you were given that choice?

Yes, you say?

Try again

Yes?

You are probably deluding yourself

You wouldn’t change

You want odds?

Nine to one against you

How do you like those odds?

ibm global innovation outlook conference 2004
IBM Global Innovation Outlook Conference 2004

Most farsighted thinkers from around the world to come together in New York to propose solutions to really big problems

global innovation problem one health care
Global Innovation Problem One-Health Care
  • Crisis- $1.8 trillion/year in US alone
    • 15% of gross domestic product
  • Dream team of experts expected to discuss
    • Scientific breakthroughs
    • Technology breakthroughs
root cause of health care crisis hasn t changed for decades
Root cause of Health Care Crisis Hasn’t Changed for Decades!
  • Medical establishment can’t figure out what to do about it.
  • Vast majority of health-care budget for well known and by and large behavioral.
    • Sick because of how we choose to lead our lives
    • Not because of genetic factors beyond control
80 health care budget consumed by 5 behavioral issues
80% Health Care Budget Consumed by 5 Behavioral Issues
  • Smoking
  • Drinking
  • Eating
  • Stress
  • Insufficient exercise
coronary bypass surgery and angioplasty patients
Coronary Bypass Surgery and Angioplasty Patients

Many patients could avoid return of pain and need to repeat the surgery, not to mention arrest the course of their disease before it kills them by switching to healthier lifestyles, but

90% don’t

changing behavior of people
Changing Behavior of People
  • Not just the biggest challenge in health care
  • Also the biggest challenge in business (law practice)
  • Central issue is never
    • Strategy
    • Structure
    • Systems
  • Changing behavior of people

John Kotter

21 st century challenges
21st Century Challenges
  • Competing in a turbulent world
  • Being ready to respond to profound upheavals in market dynamics such as
    • Shift from regulated to deregulated environment
    • Entry into new practice areas
    • Changing style of our work
      • Mentoring
      • Technology advances
does crisis bring change127
Does Crisis Bring Change?
  • Conventional wisdom says

Yes

  • What about the heart disease victims?
  • Giving people accurate analyses and factual information about their situations?

No

  • Why do we fight what we know to be in our own vital interests?
kotter s insight
Kotter’s Insight
  • Behavior change happens mostly by speaking to people’s feelings.
  • True even in organizations focused on analysis and quantitative measurement.
  • Highly successful change efforts require that people see problems or solutions in ways that influence emotions, not just thought.
emotional persuasion
Emotional Persuasion
  • Not taught in business schools
  • Doesn’t come naturally to those who pride themselves on analytical thinking
    • Lawyers
    • Engineers
    • Accountants
    • Managers
the ornish experiment preventative medicine research center
The Ornish Experiment- Preventative Medicine Research Center
  • Providing health care information important but not sufficient
  • Need additional dimensions
    • Psychological
    • Emotional
    • Spiritual
ornish program
Ornish Program
  • Vegetarian diet with less than 10% calories from fat.
  • Can reduce heart disease without surgery or drugs.
  • Medical establishment skeptical that people could sustain.
mutual of omaha sponsored trial 1993
Mutual of Omaha sponsoredtrial-1993
  • 333 patients with severely clogged arteries
  • Helped to quit smoking
  • Put on Ornish diet
  • Twice-weekly group support sessions led by psychologist
    • Meditation
    • Relaxation
    • Yoga
    • Aerobic exercise
ornish program contd
Ornish Program contd
  • Program lasted 1 year
  • After 3 years, 77% of people stuck with lifestyle changes and avoided bypass or angioplasty surgeries
  • Mutual of Omaha saved $30,000 per patient
why did ornish program work
Why did Ornish Program Work?
  • Changes reason for change from fear of dying
  • Joy of living from feeling better and thinking of freedom from pain

“Joy is a more powerful motivator than fear.”

Dean Ornish, MD

framing change
Framing Change
  • Frames are the “mental structures that shape the way we see the world.”
  • Part of the “cognitive unconscious”
  • The way we know what our frames are, or create new ones, springs from language.
our frames
Our Frames
  • Do we see our law firm as a
    • Military model with hierarchical chain of command?
    • Family?
    • Village?
  • Each model would have us working together in different ways
the big challenge to change thinking
The Big Challenge to Change Thinking
  • Our minds rely on frames, not facts
  • Concepts are tied in the synapses of the brain and are not changed by presenting us with a fact
  • For us to make sense of facts, the facts have to work within our concepts
  • Otherwise, facts go in and then right back out
when facts don t fit our concepts
When Facts Don’t Fit Our Concepts
  • They are not heard, or
  • They are not accepted as facts, or
  • They mystify us.
  • Then we label the fact as irrational, crazy, or stupid.
  • The reason conservatives and liberals each think the other side nuts.
    • Brains are working within different frames

George Lakoff, Professor of Cognitive Science and Linguistics, University of California at Berkeley

slide140
Radical sweeping change works better than small, incremental change.
  • Important that there be some early wins with the radical change that are
    • Visible
    • Timely
    • Unambiguous
    • Meaningful
supporting change
Supporting Change
  • Remember 90% of the heart patients went back to old lifestyle but
  • 77% of Ornish’s patients stayed with the radical change
    • Weekly support groups with other patients
    • Attention from dieticians, psychologists, nurses, and yoga and meditation counselors
is the lawyer s brain hardwired unable to change
Is the Lawyer’s Brain Hardwired- Unable to Change?
  • Brain’s ability to change is lifelong
  • Specialists’ brain may develop in ways to enhance the specialists skills but
    • Specialization can instill rigidity
  • Brain stimulation through continuous learning works
    • Active not the same as continuous learning
      • Learn Spanish or the oboe?
    • What have you learned in the last 6 months?
    • Self resume
if i can t predict the future how can i prepare for the future peter schwartz inevitable surprises
If I Can’t Predict the Future, How Can I Prepare for the Future? Peter Schwartz Inevitable Surprises

Build and maintain your sensory and intelligence systems.

  • Continue strategic conversations by discussing and interpreting the interaction of forces that might affect you.
  • Cultivate a sense of timing
    • How rapidly is this approaching?
    • When could it occur?
    • How long do we have?
preparing for the future 2
Preparing for the Future 2
  • Identify in advance the kinds of “early warning indicators” that would signal a change is rapidly upon you
  • Once the signals are identified, keep an eye out for them and be prepared to act when you observe them
  • Use short-term scenario exercises
preparing for the future 3
Preparing for the Future 3

Put in place mechanisms to engender creative destruction.

  • Discard what has worked in the past but may be moribund now.
  • What have you dismantled in the last year or two?
  • If none, may need to get some practice in before urgency strikes
preparing for the future 4
Preparing for the Future 4

Try to avoid denial

  • Do not pretend that the “inevitable surprise” is not happening
  • If the scenario is plausible and you think it would really hurt the organization, pay more attention to it
preparing for the future 5
Preparing for the Future 5
  • Be aware of the competence of your judgment, and the level of judgments new situations require
  • Move deliberately and humbly into new situations that stretch your judgment
preparing for the future 6
Preparing for the Future 6

Place a very, very high premium on learning.

  • Most failures to adapt are failures to learn enough in time about changing circumstances
  • Work will be increasingly knowledge intensive
mary ryan aba committee on delivery of legal services151
Mary Ryan, ABA Committee on Delivery of Legal Services

“A lawyer is best defined as someone who provides the best services in a free market, not the only services in a protected market.”

slide156
Dakota tribal wisdom says that when you discover you are riding a dead horse, the best strategy is to dismount.

© 2000 Charles F. Robinson

in law firms we often try other strategies with dead horses including the following
In law firms we often try other strategies with dead horses, including the following:

© 2000 Charles F. Robinson

changing riders
Changing riders

© 2000 Charles F. Robinson

saying things like
Saying things like . . .

This is the way we always have ridden this horse!

© 2000 Charles F. Robinson

dead horse
Dead Horse?

What dead horse?

© 2000 Charles F. Robinson

presentation materials
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Presentation graphics by Wendy

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today s agenda
Today’s Agenda
  • Why worry about the future?
  • The 2005 environment
  • Trends v. Cycles
  • How to lead change and make it stick
how firms can cope169
How Firms Can Cope
  • Rule 5: In a flat world, the best companies stay healthy by getting regular chest x-rays and then selling them to their clients.
    • Typical company has 40-50 components
      • Where is firm best in class?
      • Where is firm differentiated?
      • Where do you have potential but don’t want to spend the money to get great?
    • Let go of what you can outsource and focus on the core competencies
how firms can cope170
How Firms Can Cope
  • Rule 6: The best companies outsource to win, not to shrink. They outsource to innovate faster and more cheaply in order to grow larger, gain market share, and hire more and different specialists- not to save money by firing more people.
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