Lessons learned from law firm strategy creation projects
Depending on a law firm’s data maturity, where they are on their data governance journey, and the firm’s strategic priorities, a logical step is often creating a data strategy.
As a data governance consultant, I have worked with several law firms on their data strategies. From creating the initial design (learn more in this case study) to implementing different aspects, I’ve seen firsthand the good, the challenging, and the unusual.
Based on my experience, I have compiled a list of the top 5 mistakes law firms make when creating a data strategy.
1 – Not connecting the data strategy to the firm’s overall business strategy
Not having a direct connection between the data strategy and the firm’s overall business strategy makes it hard for people to see why a data strategy is essential. Suppose your data strategy doesn’t make obvious connections between the firm’s strategic objectives and how the elements of the data strategy are aligned to support meeting these objectives. In that case, you won’t get the buy-in that you need to make it happen.
Your stakeholders and their teams’ limited time and resources will be prioritised to support delivering the firm’s strategy. If your data strategy isn’t a part of that, it will be paid lip service at best, and you’ll be unable to get traction for any of your data initiatives.
As a data governance lead, it can be tempting to focus on working with your immediate peers to create the data strategy. This means that you can accidentally make a business services based wrapper, with an operational focus, around existing data projects rather than creating a data strategy that will help the firm mature its data capabilities in support of the global strategy.
To fix this, you need to ensure that everyone understands how the data strategy relates to the firm’s overall goals and seek the input of stakeholders outside of the usual suspects.
Ensuring that lawyers and other client-facing teams have an equal say to the operational teams is critical to creating a meaningful data strategy. Always test the alignment of each new element you add to your data strategy and ensure that its value to the success of a component of the firm’s strategy is clearly articulated.
EXPERT TIP: if your firm is looking at creating a new business strategy, you might be able to include data as a workstream or weave it into the themes of activity around delivering the strategy rather than having to create an entirely separate data strategy.
2 – Focusing on client data while ignoring internal data
Because firm strategies tend to focus on clients, it is not unusual for data strategies to have a skew towards client data or what data can do for clients while ignoring internal operational data.
While it is essential to leverage client data for business growth and success, ignoring internal data management can lead to a sub-optimal data quality and accuracy outcome.
As a result, the overall data quality can suffer, leading to poor decision-making and reduced efficiency. This mistake can be attributed to a lack of understanding of the importance of internal data management and data governance.
Often, firms focus on the potential benefits of client data without understanding the need to improve internal data management and governance to ensure the highest quality data possible and achieve optimal outcomes for client and operational data.
The solution is to make sure that you pay attention to internal and external data in proportion to what is needed to deliver the firm’s strategic objectives. Remind people that the firm benefits when operational activities like data capture, management, and reporting are treated as just as important as creating cool new dashboards for clients.
EXPERT TIP: It is essential to regularly review and update data management practices to ensure that they align with the firm's strategic objectives. This includes implementing new technologies and tools, training employees on best practices in data management, and assigning clear roles and responsibilities for data governance.
By prioritising data management, firms can improve the overall quality of their data and make better-informed decisions, leading to increased efficiency and business success.
3 – Not involving enough people in the conversation
One of the biggest mistakes in managing data in a firm is not involving enough people in the conversation. When creating a data strategy, everyone in the firm has a unique perspective on how to approach data, its value, and how data should be utilised.
Ignoring the input of some of these individuals can lead to misunderstandings, miscommunications, and even conflicts that can affect the firm’s overall performance. The root cause of this mistake is that some people may believe they are the sole experts in data management and, therefore, feel that it is unnecessary to involve others. Additionally, some individuals may not be aware of the importance of gathering diverse perspectives on data.
To solve this mistake, firms should create an open, inclusive culture that encourages everyone to participate in data strategy conversations. Firms should also ensure that the data strategy team is responsible for gathering input from different departments and individuals and ensuring everyone’s voice is heard.
For example, a Practice may have a different perspective on data management than a Marketing Team. By involving both sets of stakeholders in the conversation, the firm can gain a more holistic view of data that considers the needs and concerns of both parties.
An expert tip for avoiding this mistake is to create a data management plan that outlines the roles and responsibilities of different individuals and departments. This plan should also include a clear communication strategy that ensures everyone knows what is expected of them and how they can contribute to the firm’s overall data strategy goals.
4 – Asking what other law firms are doing
Another common mistake in developing a data strategy for law firms is copying what other firms are doing. Every law firm has its unique way of capturing, storing, using, and maintaining data. Therefore, what has worked for one firm might not necessarily work for another. It’s essential to understand that there is no one-size-fits-all approach to data strategy.
This mistake is often caused by a lack of understanding of the unique aspects of the firm’s business operations, culture, and clients. It’s easy to fall into the trap of thinking that what worked for another firm will work for yours, but this approach can lead to poor performance, inefficiencies, and missed opportunities.
To solve this mistake, it’s crucial to focus on your firm’s specific needs, goals, and capabilities. Start by conducting an internal analysis of your firm’s data capabilities, identifying gaps, and determining the resources needed to fill them. Then, develop a data strategy that aligns with your business objectives and is tailored to your firm’s needs.
EXPERT TIP: It's essential to monitor the effectiveness of your data strategy regularly. This involves measuring key performance indicators (KPIs) to determine if your strategy is achieving its intended goals.
5 – Focusing on only data and technology
Creating a successful data strategy can be complex, requiring careful consideration of several vital elements. Unfortunately, many people make the mistake of focusing solely on data and technology when developing their strategy while neglecting the importance of people and processes. This can lead to a poorly implemented, difficult-to-manage, and ultimately ineffective strategy.
To avoid this mistake, it’s crucial to take a holistic approach to developing a data strategy that considers all the necessary elements. This includes not only the data and technology itself but also the people responsible for implementing and managing the strategy and the processes and workflows that will guide their work.
Finally, an expert tip for developing a successful data strategy is to involve all stakeholders, including employees, lawyers, managers, partners, and executives. This can help ensure everyone is on board with the strategy and understands their role in making it successful. By taking a collaborative and inclusive approach to strategy development, you can create a more effective and sustainable data strategy that delivers real value to your organisation.
Final Advice
I hope sharing these helps you create and implement a successful data strategy. Creating a successful data strategy means avoiding these common mistakes and ensuring everyone in the firm understands why the strategy is important. If you need help with your data strategy, don’t hesitate to ask for it. Remember that a successful data strategy is essential for the growth and success of any law firm.
Innovative law firms have big goals for improving the client experience through data innovation.
Through our extensive law firm background, we have developed a unique data governance road-mapping approach to help law firm leaders launch the proper foundation for data governance.
If you want to chat confidentially about how Iron Carrot can help your firm with its Data Governance initiatives, then why not book a call to talk to us?
