Beyond technology decisions, a law firm knowledge management initiative requires a culture shift for most small and midsize firms. Here’s why it’s worth it.
Table of contents
- Legal Knowledge Management
- Why Small and Midsize Firms Should Prioritize Knowledge Management
- Benefits of Knowledge Management
- First Steps of Knowledge Management Initiatives: People and Process
- Three Tips for Picking the Right Knowledge Management Systems
- AI Powered Knowledge Management Tools
- Breaking Down Barriers to Knowledge Management
- Measuring Success and ROI
Small and midsize law firms are facing many changes, challenges and opportunities coming at them from all angles. In the midst of all that, firm leaders may be so busy with day to day responsibilities they haven’t given much thought to how they manage knowledge within the organization.
But recognizing the firm’s collective intelligence — and giving it the attention it deserves — is one of the keys to scaling your law practice and taking firm operations to the next level. Legal knowledge management relies heavily on technology which is both the spark and the backbone of the firm.
Legal Knowledge Management
Legal knowledge management (LKM) is the process of capturing, storing and utilizing the collective knowledge and information within a law firm. By identifying, acquiring, storing, retrieving and sharing knowledge LKM makes legal services more efficient and effective. In today’s market LKM is key for law firms to stay ahead. It allows them to deliver more to clients, streamline operations and increase productivity. By using LKM lawyers have access to the information they need quickly, a more informed and agile practice.
Why Small and Midsize Firms Should Prioritize Knowledge Management
Small and midsize firms are feeling pressure around realization, which is also affecting utilization. In practice, this means they are less likely to bill clients for work they know clients will feel is of no value, which necessitates finding new ways to do that work more efficiently. Business development plays a key role in identifying these new efficiencies and enhancing client service.
Additionally, there is a trend toward “pushing down” assorted legal tasks — e-discovery, for example, or initial research — to more junior members of the firm to free up time in the attorney’s day to focus on higher-level activities. It’s impossible to achieve this “downward push,” however, unless the more junior people actually have the knowledge, skillsets and tools to carry out the tasks properly.
Changes are afoot regarding the kind of clients small and midsize firms are engaging with, too. Corporate clients who previously would have engaged solely with large law firms are now carving out pieces of business to give to more cost-effective small and midsize firms. Before doing so, however, those clients want to know those smaller firms can operate at the same level as “the big guys” when it comes to security, efficiency and intelligent use of technology. Effective management of client data is key to meet these expectations and support business development efforts.
This is where a knowledge management initiative that harnesses the firm’s collective knowledge comes into play.
Benefits of Knowledge Management
Knowledge Management can bring many benefits to law firms:
- Better client service: By giving lawyers quick access to the right information, LKM means they can give more accurate and informed advice, leading to happier clients and more loyalty.
- More efficiency: LKM systems reduce the time lawyers spend looking for information, so they can get on with other work and be more productive.
- More competitive: By using collective knowledge and expertise, law firms can differentiate themselves from others and be seen as the best.
- More informed decision making: LKM gives lawyers access to information and expertise so they can make better decisions and fewer mistakes.
All of which means you should invest in a good knowledge management system.
First Steps of Knowledge Management Initiatives: People and Process
Regardless of the level of complexity of the use cases they’re looking to tackle — or the current level of maturity of their systems — there are things small and midsize firms can start doing today that will help set the foundation for this new initiative to tap into the firm’s collective knowledge.
The first step is making sure the firm has a single repository or document management system for documents, emails, and other work product, so that all of the firm’s best work can be kept in one spot. If you will eventually use AI-enabled technology to leverage that collective intelligence, that centrality is critical. If, by contrast, that information resides on people’s laptops, in network drives and other disparate silos, all that valuable knowledge is essentially invisible to your organization.
Knowledge repositories play an important role in maintaining organized data, ensuring transparency and accessibility within the organization.
The next step is creating a culture where all users are disciplined and diligent in terms of using this single repository for storing their documents and emails. Put another way: Having a single centralized repository isn’t going to unlock much value unless people are actively using it.
Technology, then, is just one piece of the puzzle. People and process are also involved — and there needs to be a culture shift within the organization. People need to see the connection between having and using a single repository to store work product, and the value that will actually deliver to the firm as far as allowing them to work more securely, efficiently and productively.
Three Tips for Picking the Right Knowledge Management Systems
When it comes to knowledge management technology, what should firms look for? The key requirements are ease of use, security and scalability.
Ease of use matters because if the technology isn’t simple and frictionless, it will be an uphill battle to get the user adoption you need — and if you don’t get the user adoption, you won’t have all the firm’s best work product in one location, ready to be leveraged.
Security and governance are paramount. That means recognizing that not every user in the firm should have access to all the material in the organization. This security, however, cannot come at the expense of the user experience. Often, security and ease of use are inversely correlated, but properly designed platforms will offer both.
Knowledge management systems play an important role in ensuring the accuracy and reliability of the information stored within them. Employee involvement in capturing and updating valuable information is key to maintain the system’s effectiveness and trustworthiness.
Scalability matters because if you’re a small or midsize firm in growth mode, there’s no reason not to invest in a platform that can grow with you. Just be certain the vendor has taken the time to build in the security, accuracy, and the guardrails needed to leverage fast-evolving AI technologies with confidence.
Every small and midsize firm wonders what is necessary to take its business to the next level. Unlocking the firm’s collective intelligence is one of the strongest ways to leverage existing knowledge, successfully scale operations and propel the firm forward.
AI Powered Knowledge Management Tools
Artificial intelligence is changing how law firms manage knowledge. AI powered knowledge management tools like machine learning search engines and document automation platforms can help:
- Search faster: AI search engines find relevant information quicker.
- Create documents faster: Document automation platforms create high quality documents in a fraction of the time so lawyers can focus on the high value work.
- Share knowledge: AI powered knowledge management tools share knowledge across the firm so lawyers can access and add to the collective knowledge and expertise.
By adding AI to their knowledge management law firms can get more efficient, more accurate and better client service.
Breaking Down Barriers to Knowledge Management
Despite the benefits of knowledge management, law firms face:
- Resistance to change: Lawyers don’t want to adopt new tech and processes if they are used to the old way.
- Information overload: Too much information from the firm can make it hard to find and prioritize the important stuff.
- Lack of resources: Implementing a knowledge management program requires investment in tech, training and people.
So…
- Get leadership buy-in: Show the tangible benefits of knowledge management to get leadership support and resources.
- Create a knowledge-sharing culture: Get lawyers and staff to share their insights, experiences and learnings to reinforce knowledge sharing.
- Provide training and support: Offer full training on knowledge management tools and best practice so lawyers and staff feel comfortable and confident using the system.
By doing this law firms can implement a knowledge management program that delivers efficiency and innovation
Measuring Success and ROI
To measure the success and return on investment (ROI) of a knowledge management program, law firms can use various metrics, including:
- Usage patterns: Track the frequency and volume of usage of knowledge management tools to gauge adoption and engagement.
- User feedback: Collect feedback from lawyers and staff to identify areas for improvement and measure satisfaction.
- Productivity metrics: Track changes in productivity, such as reduced research time or increased document creation efficiency.
- Client satisfaction: Measure changes in client satisfaction and loyalty to gauge the impact of knowledge management on client service.
By tracking these metrics, law firms can refine and improve their knowledge management strategies, so they achieve the desired benefits and ROI. Monitoring and adjustment based on these insights will help law firms maximize the value of their knowledge management initiatives.
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