Knowledge management for law firms

Knowledge management (KM) is no longer a new concept for the legal industry. However, while KM systems and teams are typical to most firms, there still appears to be limited understanding as to what knowledge management actually entails. There are those that equate KM with technology, creating repositories including standard documents, directories and legislative updates, brought together through intranets, extranets and portals. Many other firms, however, now view KM as a deeply cultural phenomenon, driven by a firm-wide commitment to share know-how as part of the fee earners’ day-to-day working practices.

It is not that either perspective is wrong, but a priority for firms must now be to realise the interrelation of culture and technology in making KM work. With discussions focusing on tacit and explicit knowledge, firms have realised that they can store as many hard-copy documents as they might wish to attempt to maintain, but the most valuable knowledge regarding clients and past experience will remain firmly in the heads of the fee earners. Translating this tacit knowledge to a system that can then be accessed across the firm requires fee earners to share their knowledge in an open and collaborative manner.

It may sound simple, but in law firms that have culturally bred a sense of self-reliance, where knowledge is the preserve of the individual and his or her clients, a fundamental change-management programme is required to make this knowledge-sharing environment a reality. Overseeing such extensive change is the firm’s management, whose strategic efforts often come a poor second to the demands of the billable hour.

With so many challenges, the term ‘knowledge management’ suddenly appears utterly inadequate for something that requires top-to-bottom reform if it is to work. At worst, frustration and stagnation will leave many a KM programme relegated to the IT team, with fee earners rarely using the stores of information that they strive to provide. At best, however, an effective KM policy will drive fundamental improvements in the business productivity and thinking of the firm, making the lives of the fee earners easier, while improving the firm’s long-term profitability and client service.

This issue focuses on all aspects of this potential minefield, from building the system to making KM a core part of the firm’s behaviour. These areas will be further expanded in Ark Group’s ‘Knowledge Management for the Legal Profession’ conference, to be held in London on 24-25 March 2004. If you would like to receive more information on the event, please contact the event producer James Renton at: jrenton@ark-group.com.

I hope you enjoy this KM special focus and if you do have any comments, please do not hesitate to contact me at: cpoynton@ark-group.com. Caroline Poynton Editor

Features

Knowledge is power: Making knowledge management work for law firms Free
Despite the obvious importance of knowledge management (KM) to an expertise-driven business, many still believe that law firms lag behind other industries in their knowledge-sharing activities. With this in mind, Caroline Poynton talks to some law-firm KM professionals: Joy London (Allen & Overy, New York); Lucy Dillon (Berwin Leighton Paisner); Keith Pearse (CMS Cameron McKenna); and Helena Hallgarn (Vinge). She asks them about their roles and views in realising firm-wide knowledge sharing, as well as the challenges they have faced along the way. Bob Bater, principal associate at Infoplex, who is currently writing an Ark Group report on legal KM1, also joins the discussion, providing his insight on the current KM landscape.

Knowledge-management tools in legal practice Free
There are many knowledge-management (KM) tools, all of which could not usefully be compiled into a comprehensive list. However, Karen Battersby, course director of the know-how postgraduate programme at Nottingham Law School, explores some of the most common KM tools used in legal practice and examines issues relating to their use.

Developing your KM systems: the role of the PSL Free
Professional support lawyers have been involved in creating legal intranets and extranets for several years, the benefits of which are undisputed. Asking one of your PSLs to manage a KM project, while continuing in their professional-support role, however, is another matter. Mills & Reeve took this step in 2001. Miranda Whiteley, the PSL in question, and Duncan Ogilvy, the KM partner and project champion, describe what happened next and give their views on the wisdom or otherwise of pursuing such a course.

The right culture for KM Free
Knowledge management is commonly seen as a vital investment for law firms, although many still fail to see how it fits into the wider picture of people, processes and, fundamentally, the core culture of the business. Gretta Rusanow, a lawyer, management consultant and KM author, tackles the cultural barriers to successful KM, explaining how to identify and address the inherent obstacles to firm-wide knowledge sharing.

Regulars

Technology column: Fee-earner-centric computing: making life easier for lawyers Free
One of the current hot topics in legal technology is ‘matter-centric’ computing. This means creating the digital equivalent of the old paper file, where copies of all the documents relating to a particular case or matter were stored in one manilla folder so anyone could pick up the file and immediately have the whole matter at their fingertips.

Thought leader: The beginning of the end for PSLs? Free
Professional support lawyers provide know-how support to the practice and their numbers are increasing considerably across large and not so large firms. However, two recent developments lead me to wonder what the PSL role will be in five years’ time.

The littlest hobo of law Free
While many a partner has taken on the role of managing partner, either giving up fee earning or maintaining some client work on the side, there is now a discernible trend in law firms appointing non-legal chief executives who can use their industry experience to manage the business while leaving the partners to do what they do best – fee earning. Paul Stothard is just such a case. He may be a chartered accountant by profession, but Stothard is taking on the legal profession at their own game as the latest chief executive of Shoosmiths. Caroline Poynton finds out if he has what it takes to show a law firm the right way to manage a business.

Differentiation: Choosing the battles to fight Free
In the last issue, Andrew Hedley, business development director at Pinsents, explored a strategic framework for differentiation, together with some of the thinking that underpins the concept. This article, the second of a three-part series, considers the key dimensions of a competitive strategy and the factors that influence client choice.