Presentation on theme: "A Strategic Conversation About the Future of the New Hampshire Bar"— Presentation transcript:
1A Strategic Conversation About the Future of the New Hampshire Bar Presentation byCharles F. RobinsonClearwater, Florida
2Chief 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.”
10Change ImplicationsSpeeches, articles, and even retreats to teach how to deal with change won’t change behavior withoutFollow-up positive reinforcementMultidisciplinary supportFraming change in a way to bridge the present with the futureIf your passion for change is subsumed in the tyranny of the urgent Monday morning you will hate change even more
11Leading the Profession to a Preferred Future If we don’t drive the vehicle to our future we will end up wherever we are takenInstitutionalize search for foresight
12Scenario Thinking Focus on the capability of the organization to Perceive what is going on in the practice environmentThink through what this means for the bench and barAct upon the new knowledge
13Objectives Get beyond traditional thinking that Acts like a filter, restricting the ability to perceive new informationImprisons us with personal biases and routines within a world of recipes and business-as-usual assumptionsFrames our response automatically
14A 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 learningPerceptionThinkingAction
15Wired Magazine (January, 1998) Guardians of the old order are trying their best to hold back change and preserve their power.
25Lawyers have a monopoly on the interpretation of the law.
26The practice of law is a profession and not a business.
27The practice of law is a business and not a profession.
28“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
29Current Forces Impacting the Profession Nonlawyer competitionDiminished perceived value in attorney servicesTechnology displacementLawyer supply exceeds demandDisintermediation- Out with the middle person
30The Lawyer’s World is Flat Program to run in 3 Texas Law Schools this yearFocus on how practice is changing and what law students and young lawyers can do to thrive in the 21st centuryBusiness as usual not an option
31The World is Flat A Brief History Of The 21st Century The 10 Forces That Flattened the WorldThomas L. Friedman
32Flattener 1- 11/9/1989 Fall of Berlin Wall Ultimately liberated all Soviet Union captive peopleTipped balance of power to those advocating democratic, consensual, free-market-oriented governanceCapitalism the only surviving choice
33Flattener 2 - 8/9/95 Netscape goes Public From PC-based computing platform to Internet-based platformKiller applicationsInternet browsingNetscape first mainstream browser culture for general publicInternet stopped being province of early adopters and geeks
34Flattener 3 - Work Flow Software Let’s Do Lunch: Have Your Application Talk to My ApplicationWork flow moved from manual work flow toSeamless interoperable work flowSeamless interoperable work flow with other companiesWith standard language (XML) makes e-filing possibleGlobal platform for multiple forms of collaboration
35Flattener 4- Open-Sourcing Self-Organizing Collaborative Communities Bottom up, shared, constantly improved by users, available free to anyoneMotive is the “psychic buzz” that comes from creating a collective product that can beat something produced by giants like Microsoft and IBMExample - Apache an open source software system, powers 2/3 of the world’s web sitesWikipedia the open source encyclopediaLinux- Top candidate to replace Windows OS
36Flattener 5 - Outsourcing Y2K IndiaNo natural resourcesMines brains of its own by educating a relatively large slice of its elites inSciencesEngineeringMedicineCreates giant knowledge meritocracyA talent factory for engineering, computer science, and software for the globe- Law?Software engineers took lead in fixing Y2K bug
37Flattener 6- Offshoring Running 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.
38Outsourcing v. Offshoring Outsourcing- Take specific, but limited function that you were doing in-house, egResearchDocument draftingHave outsource company take those functions for you and you reintegrate their work back into your operation
39Not certain who is lion, who is gazelle OffshoringTakes 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 costsReally started when China formally joined the WTO.Made China’s own competitive playing field as level as the rest of the worldChina agreed to follow international law and standard business practicesNot certain who is lion, who is gazelle
41Chinese looking to future as designers May be 10 years outIn 30 years will have gone fromSold in ChinaMade in ChinaDesigned in ChinaDreamed up in ChinaCar USB--MP3 Transmitter/ Car Accessories
42“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
43Flattener 7 - Supply-Chaining When a customer lifts a product off the shelfthe cashier scans it in. At that moment:A signal is generated from the Wal-Mart network to the supplierThe signal shows up on the supplier’s screenTo make another of that item and ship it via the Wal-Mart supply chain, and the whole cycle will start anewWal-Mart database is entire Internet X 2
44Flattener 8- Insourcing What the guys in the Funny Brown Shorts Are Really DoingUPS slogan-Your World Synchronized
45Flattener 8- Insourcing Not just package delivery; synchronizing global supply chainsToshiba laptops under warrantyInstructions to ship UPS to ToshibaActually goes to UPS Louisville hub for repair by UPS instead of UPS to Toshiba to UPS to customer
46Flattener 8- Insourcing UPS dispatches Papa John pizza deliveryNike ShoesUPS has spent $1billion since 1996 to serve any supply chain in the world
47Flattener 9- In-Forming Google, 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.
48Flattener 9- In-Forming Google, Yahoo!, MSN Web Search Seeking like-minded people and communitiesGoogle doing over one billion searches per dayiPod, Ceiva, TiVo, Amazon
49Flattener 10- The Steroids Digital, 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 isDigitalMobileVirtualPersonalEnhancing each one and making the world flatter by the day
50What 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.”
51Become an “Untouchable” People whose jobs cannot be outsourcedFour broad categories
53Specialized Work cannot be outsourced because niche not fungible Fungible means easily digitized or substitutedLawyers in niche practicesManagement consultantsBrain SurgeonsCutting edge computer architectsCutting edge software engineersSkills that are in high demand and not fungible
54Chief Justice Broderick “It is a consumer world and lawyers are often seen as fungible commodities.”
55Anchored For those who cannot be special or specialized Job must be done in a specific location involving face-to face contactBarberChef/waitpersonHome town lawyers with minimum fungibilityCar MechanicPlumberDentist
56Anchored Compensation determined by local conditions Lawyer may outsource fungible services like research or document drafting to a legal aide in Bangalore
57Really AdaptableAcquire new skills, knowledge, and expertise that enable value creationSkillfully and socially adaptableAble to learn how to learnMay be survival skill for the anchored lawyer
58The Threatened Those who are Not very special Not very specialized Not very anchoredNot very adaptable
59The Triple Convergence Convergence One- The “ten forces” converge in complementary, mutually enhancing fashion- One machine scans, s, prints, faxes, and copiesConvergence Two- Move from vertical chain of command for value creation to horizontal collaborationConvergence Three- You don’t have to live in America to get good work. It’s a plug and play world.
60How 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
61How 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.
62How Firms Can CopeRule 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 consumerRule 4: The best companies are the best collaborators
64Trends v. Cycles Cycle says wait it out and it will come back. WeatherMarketsTrend says will not likely return to status quoWe must deal with it orLet it take us wherever the trend goesWatch out for Wild Cards
65Trend or Cycle Substantive Practice Areas Threatened Family Law Real EstateTax and Estate PlanningPI DefenseLitigationBusiness advice
66Substantive Practice Areas Threatened Family Law>70% Pro SeRules of Civil Procedure gone
67Pro se litigationOne party pro se in 85% of all cases in District Court and 48% in Superior CourtBoth sides unrepresented in 38% of casesDomestic relations cases 70% one partyDomestic violence cases 97% one partyReport on NH Supreme Court Task Force on Self-Represented Litigants- January 2004
68Substantive Practice Areas Threatened Real EstateRealtorsInternet
69Substantive Practice Areas Threatened Tax and Estate PlanningWills on-lineFinancial Planners, CPADeath of “Death Tax”
70Jonathon Blattmachr Estate tax eliminated in Canada over 20 years ago First few years lawyers busy adjusting estate plansAfter that Trusts & Estates practice dropped by 90%
71Estate 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?
72Substantive Practice Areas Threatened House CounselTrade Association legal advice
73Substantive Practice Areas Threatened PI DefenseInsurance companiesTort Reform
74Tort Reform “Economically destructive litigation” US most expensive tort system in the world$179 billion 2002 direct costs$636 per capita150% of amount spent on pharmaceuticalsBills pending in 20 states11 states have passed legislation“Trends” Volume 1, Issue 3, July 2003
75Senator Chuck Schumer, D NY “Lawsuits have gotten out of control in America and something needs to be done to rein them in.”
76President Bush“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.
77House 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
78Substantive Practice Areas Threatened LitigationSport for the wealthyGovernment attack on PI and Med MalPro se litigators
79What is greatest problem facing the bar and its members today, ignorance or apathy?
80Mary 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.”
82Trend or CycleSubstantive Practice Areas ThreatenedMJP
83What Does It Mean For Your Practice? Alphabet SoupMJPMDPABPSAWhat Does It Mean For Your Practice?
842. Multijurisdictional Practice Birbrower et. al v. Superior Court of Santa Clara County, 949 P.2d 1 (Cal 1998)
85New Jersey MJP Arguments April 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?”
86New Jersey MJP contdThere 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?
87MJP 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 CLEPracticeProcedureEthics
88Borderless World Regional/National reciprocity 26 states now GATS TreatyDriver’s license approach in 5-10 years
89Trend or CycleSubstantive Practice Areas ThreatenedMJPTechnology
90Law 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
913. Technology Disintermediation Internet Available to EveryoneWills, Tax Return Prep On-lineLike Printing Press to Church/TempleLiteracy Brings New Relationships
92The Future of Law: Facing the Challenges of Information Technology Richard SusskindLegal Profession Will Change Beyond RecognitionThree Types of Legal ServiceTraditionalCommoditizedLatentCommodityTraditionalLatent
93Susskind’s Key Questions Likely developments in IT over next 10 yearsPossibilities for law practice in light of IT changesFuture for lawyers and what part is the world wide web likely to play
94Introduces the “Susskind Grid” Transforming the Law; Essays on Technology, Justice and the Legal Marketplace- Richard Susskind 2000Introduces the “Susskind Grid”First work tying together technology use and strategic future planning for lawyers
95blatant trigger selection of lawyer consultative advice Figure Today’s Client Service ChainRecognitionSelectionServiceblatanttriggerselectionof lawyerconsultativeadviceRichard Susskind 2000C
96from to proactive Transforming the Recognition service Figure Transforming the Recognition elementof the Client Service ChainproactiveserviceTransforming the Recognitionelement of the Client Service Chaininfomediarieslegal auditspush technologyintelligent agentsembedded expertiseIntranet implantsbusiness-episode basedblatanttriggerfromtoblatanttriggerRichard Susskind 2000C
97from to Transforming the Selection element of the Client Service Chain Figure Transforming the Selection elementof the Client Service ChainTransforming the Selectionelement of the Client Service Chainselectionof adviserinfomediariesonline auctionsvirtual teamsselectionof source ofguidanceselectionof lawyerfromtoassessmentof needinfomediariesselectionof onlineserviceinfomediariesRichard Susskind 2000C
98from to Transforming the Service element of the Client Service Chain Figure Transforming the Service elementof the Client Service Chainhigh-end, traditionalTransforming the Serviceelement of the Client Service Chainconsultativeadviceproject managementdocument managementlegal researchstrategyunbundledservicesconsultativeadvicefromtoonlineservicecommoditizedlatent marketmulti-disciplinaryRichard Susskind 2000C
99selection of adviser consultative advice proactive service selection Figure Tomorrow’s Client Service ChainRecognitionSelectionServiceselectionof adviserconsultativeadviceproactiveserviceselectionof source ofguidanceunbundledservicesblatanttriggerselectionof onlineserviceonlineserviceRichard Susskind 2000C
100Technology Disintermediation- Trend or Cycle? What are implications if Susskind is correct?Traditional- large firm, large client onlyCommodity- better, faster, cheaperLatent- may be no direct client contact
101Trend or Cycle Substantive Practice Areas Threatened MJP Technology Offshoring/reintermediation
103Intel CEO Craig Barrett Jan-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.”
104Brad HildebrandtOutsourcing to India $10 billion in next 5 yearsHildebrandt offering 3 choicesConsult with firm re outsourcingSeveral clients form captive outsourcing firmJoint venture with existing outsourcing company
105Lou Dobbs Report8-10% of all associates hired by large law firms will be offshore hires (as in India) by 2011.2000 1,793 off-shore,200,673,672U.S. Dept of Labor & Forrester ResearchThe new associates will take on roughly the same work as new associates handle in the firms now at less than 20% of the cost.
106Outsourcing 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 BombayGE and other behemoths using Indian lawyers to supplant work formerly done by outside law firms.
107Outsourcing Hits Legal Services contd Forrester Research- by ,000 U.S. lawyer jobs will shift to lower cost countriesMindcrest Inc. legal process outsourcingEnhanced levels of service and a 30-70% lower cost to customer
108“About a year ago I hired a developer in India to do my job “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 ( ), reported by Dan Pink
109No Limits?“Short on Priests, U.S. Catholics Outsource Prayer to Indian Clergy” —Headline, New York Times/ (“Special intentions,” $.90 for Indians, $5.00 for Americans)
110Level 5 (top) certification/ Carnegie Mellon Software Engineering Institute: 35 of 70 companies in world are from India Source: Wired/02.04
111Bye-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.
113Elawforum.comeLawForum’s unique lawyer to lawyer service creates a competitive market for legal representation. Outside counsel compete with fixed fees for legal work based on expertise, quality and business judgment.eLawForum’s corporate clients secure the best value among the most qualified outside counsel - buying results rather than hours. For law firms, eLawForum offers an unprecedented opportunity to win new clients and share in success.
114John 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.”
115So Now What Do We Do? First question- Is status quo an option? 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
116So Now What Do We Do?If answer to #1 is no, how do we get into the change process?Role of the barRole of the individual lawyer/law firm
118Change or Die Fast Company May 2005 What if you were given that choice?Yes, you say?Try againYes?You are probably deluding yourselfYou wouldn’t changeYou want odds?Nine to one against youHow do you like those odds?
119IBM 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
120Global Innovation Problem One-Health Care Crisis- $1.8 trillion/year in US alone15% of gross domestic productDream team of experts expected to discussScientific breakthroughsTechnology breakthroughs
121Root 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 livesNot because of genetic factors beyond control
12280% Health Care Budget Consumed by 5 Behavioral Issues SmokingDrinkingEatingStressInsufficient exercise
123Coronary 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, but90% don’t
124Changing Behavior of People Not just the biggest challenge in health careAlso the biggest challenge in business (law practice)Central issue is neverStrategyStructureSystemsChanging behavior of peopleJohn Kotter
125“The bottleneck is located at the top of the bottle” Gary Hamel
12621st Century Challenges Competing in a turbulent world Being ready to respond to profound upheavals in market dynamics such asShift from regulated to deregulated environmentEntry into new practice areasChanging style of our workMentoringTechnology advances
128Does Crisis Bring Change? Conventional wisdom saysYesWhat about the heart disease victims?Giving people accurate analyses and factual information about their situations?NoWhy do we fight what we know to be in our own vital interests?
129Kotter’s InsightBehavior 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.
130Emotional Persuasion Not taught in business schools Doesn’t come naturally to those who pride themselves on analytical thinkingLawyersEngineersAccountantsManagers
131The Ornish Experiment- Preventative Medicine Research Center Providing health care information important but not sufficientNeed additional dimensionsPsychologicalEmotionalSpiritual
132Ornish 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.
133Mutual of Omaha sponsored trial-1993 333 patients with severely clogged arteriesHelped to quit smokingPut on Ornish dietTwice-weekly group support sessions led by psychologistMeditationRelaxationYogaAerobic exercise
134Ornish Program contd Program lasted 1 year After 3 years, 77% of people stuck with lifestyle changes and avoided bypass or angioplasty surgeriesMutual of Omaha saved $30,000 per patient
135Why did Ornish Program Work? Changes reason for change from fear of dyingJoy of living from feeling better and thinking of freedom from pain“Joy is a more powerful motivator than fear.”Dean Ornish, MD
136Framing ChangeFrames 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.
137Our 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
138The Big Challenge to Change Thinking Our minds rely on frames, not factsConcepts are tied in the synapses of the brain and are not changed by presenting us with a factFor us to make sense of facts, the facts have to work within our conceptsOtherwise, facts go in and then right back out
139When Facts Don’t Fit Our Concepts They are not heard, orThey are not accepted as facts, orThey 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 framesGeorge Lakoff, Professor of Cognitive Science and Linguistics, University of California at Berkeley
144Supporting ChangeRemember 90% of the heart patients went back to old lifestyle but77% of Ornish’s patients stayed with the radical changeWeekly support groups with other patientsAttention from dieticians, psychologists, nurses, and yoga and meditation counselors
145Is the Lawyer’s Brain Hardwired- Unable to Change? Brain’s ability to change is lifelongSpecialists’ brain may develop in ways to enhance the specialists skills butSpecialization can instill rigidityBrain stimulation through continuous learning worksActive not the same as continuous learningLearn Spanish or the oboe?What have you learned in the last 6 months?Self resume
146Build and maintain your sensory and intelligence systems. If I Can’t Predict the Future, How Can I Prepare for the Future? Peter Schwartz Inevitable SurprisesBuild 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 timingHow rapidly is this approaching?When could it occur?How long do we have?
147Preparing for the Future 2 Identify in advance the kinds of “early warning indicators” that would signal a change is rapidly upon youOnce the signals are identified, keep an eye out for them and be prepared to act when you observe themUse short-term scenario exercises
148Preparing 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
149Preparing for the Future 4 Try to avoid denialDo not pretend that the “inevitable surprise” is not happeningIf the scenario is plausible and you think it would really hurt the organization, pay more attention to it
150Preparing for the Future 5 Be aware of the competence of your judgment, and the level of judgments new situations requireMove deliberately and humbly into new situations that stretch your judgment
151Preparing 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 circumstancesWork will be increasingly knowledge intensive
152Mary 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.”
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169Today’s Agenda Why worry about the future? The 2005 environment Trends v. CyclesHow to lead change and make it stick
170How Firms Can CopeRule 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 componentsWhere 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
171How Firms Can CopeRule 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.
172Chief Justice Broderick “It is a consumer world and lawyers are often seen as fungible commodities.”