Please enjoy this blog post authored by Emily Rushing, Director of Data Strategy, Holland & Knight LLP and peer reviewed by Suresh Annamalai, Senior Manager of Digital Innovation, Proskauer Rose LLP.
A robust data strategy is a critical foundation for modern law firm business and technology operations. A well-defined data strategy not only enhances operational efficiency but drives innovation and creates competitive advantage. Without a clear data strategy, firms can struggle to use their data effectively to drive decision-making, engage in efficient business processes, and innovate rapidly. This article explores the key aspects of forming a data strategy and guiding data efforts to their best impact for your firm.
Understanding the Firm’s Strategies
Any data strategy must be rooted in the firm's overarching strategies. Large international law firms often have complex and multifaceted strategies that encompass various aspects of their operations. These strategies may address goals like expanding into new markets, enhancing client services, improving operational efficiency, and leveraging technology for innovation. Understanding these goals in context helps to align the data strategy with the firm's broader objectives.
It is important to note that many strategies fail because they are not actually strategies but rather a collection of goals and not a clear set of choices that define what the firm will and will not do. “All good strategies are controversial because they represent real choices. Yes, innovators should seek novelty, but within the constraints of the organization’s available resources and stated strategy.” In other words, “innovation” is not a strategy but rather a goal. “Compete on pricing through the use of automation” is a strategy with purpose and guardrails to help the business make tough choices. Similarly, “use APIs” or “do AI” are not strategies but rather methods or tactics that may be employed to achieve a strategic goal.
Aligning Data Strategy
With a clear line of sight into the firm’s strategies, the next step is to ensure that all data efforts are guided by these strategies. Key elements in creating a successful data strategy include a detailed survey of the firm’s data ecosystem, alignment with key stakeholders across operational functions, and vision for the incorporation of modern technologies to enable the data platforms of the firm.
Key Elements
1. Designing a data strategy for a large international law firm must incorporate several considerations. First, firms need to assess their data maturity and identify gaps in their current data management practices. This involves evaluating the quality, accessibility, and security of their data and identifying areas for improvement.
2. Second, firms need to establish a clear data governance framework that defines roles, responsibilities, and processes for managing data. This framework should include policies for data quality, security, and compliance with regulations, creating a cohesive data governance framework that ensures data quality, security, and accessibility. A well-structured data governance framework helps in breaking down internal silos and fostering a collaborative environment in which information flows seamlessly across departments.
3. Third, firms should prioritize initiatives that align with their strategic goals and offer the highest value. This includes identifying key data initiatives, such as AI readiness, and allocating resources accordingly. Firms increasingly recognize the key role Generative AI (“GenAI”) can play in both the business and practice of law, but implementing these sophisticated tools effectively first requires a strong foundation of data quality and mapping, including concepts like knowledge graphs.
Finally, understanding and building on your firm’s culture relating to technology and innovation is critical to forming a successful data strategy. Firms need to foster a data-driven culture that encourages collaboration and innovation, including fluency with emerging concepts relating to AI and data sciences. Cultural enablement requires assessing the firm’s behaviors and successes in adopting new concepts and tools and, based on that understanding, promoting data literacy and support for teams leverage data effectively. Specific tools to promote data fluency and cultural enablement include event programming like workshops and trainings and communications like newsletters and awareness campaigns.
Conclusion
Forming a data strategy is a critical step for large international law firms looking to enhance their operations and drive innovation. By understanding the firm's strategies, guiding all data efforts, and building a platform for data enablement, firms can unlock the full potential of their data and achieve their strategic goals. With careful planning and execution, a robust data strategy can transform the way law firms operate and deliver value to their clients.
Please watch for the next article in this series, which will cover APIs as a core part of a solid data strategy.
References:
1 Vermeulen, F., Many Strategies Fail Because They’re Not Actually Strategies. Harvard Business Review. (2017)
2 Parker, Elliott. The Illusion of Innovation: Escape "Efficiency" and Unleash Radical Progress. (2024).
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