Digital transformation: Focus on transformation instead of digital
- Author Contribution
- May 30, 2024
- 3 min read
By Eve Vlemincx.
Digital transformation: Focus on transformation instead of digital
'Digital transformation'—a buzzword echoing through the corridors of law firms, often associated with the next app or flashy new technology. There's a prevalent but misplaced focus on technology over transformation. As we navigate the complexities of adopting new technologies, we must remember: a poor process digitized is still a poor process, now just digital. It's time to shift our focus from merely digitizing to genuinely transforming.
The core of transformation
At its heart, digital transformation involves reimagining how firms use technology, people, and processes to fundamentally change business performance. However, data suggests that about 70% of digital transformations fail. Why? Because most firms become fixated on the digital tools themselves rather than focusing on the transformations these tools can facilitate.
A common scenario is a firm investing heavily in new digital resources, expecting these tools to magically solve inefficiencies. However, without reevaluating the underlying processes, these investments only lead to digitized inefficiencies. It’s like putting a new engine in an old car without fixing the faulty steering or the rusty transmission.
The difference between digitization and transformation
Digitization (or automation) involves converting information from analog to digital. Essentially, it’s about technology. Transformation, however, is about redefining every aspect of how a business operates—its processes, its people, and its approach to the market.
For example, consider a law firm that adopts a tool for managing legal documents. If the firm’s staff isn't trained to leverage this tool effectively, or if the tool doesn't integrate well with other systems, the new technology will not deliver its full potential. This scenario illustrates digitization without transformation.
It’s all about people
One of the most critical yet frequently overlooked aspects of digital transformation is people. Any change in an organization will inevitably affect its people, who ultimately determine the success or failure of new initiatives.
For law firms, this means involving not just the IT department but lawyers, paralegals, administrative staff, and perhaps even clients in the transformation process.
Engaging people starts with clear communication about the benefits and changes digital transformation will bring... to them! How will the new tool impact their work? Sure, it involves training and support to ensure everyone can adapt to new tools and processes, but more importantly, it requires listening—understanding the needs, fears, and suggestions of everyone impacted by the changes.
A success story
Consider the case of a mid-sized law firm that approached digital transformation with a focus on both technology and people. They began by mapping out all their processes to identify key inefficiencies. Through workshops involving staff from various levels, they pinpointed where digital tools could genuinely enhance workflow rather than just replacing paper with tech.
The firm implemented a phased rollout of digital tools, accompanied by comprehensive training sessions. They established a feedback loop, allowing them to tweak processes along the way. By the end of the year, not only had the firm reduced its paper usage significantly, but it had also improved its case handling capacity by 40%, thanks to smoother, more integrated processes.
Conclusion
Digital transformation in law firms—or any organization—is not just about adopting new technology; it’s about transforming operations to enhance efficiency, engagement, and ultimately, profitability.
By focusing on transformation over technology, firms can avoid the pitfalls of digitization without improvement. When we talk about digital transformation, we're really talking about business transformation. And at the core of any successful business transformation are the people.
About the Author Eve Vlemincx is a strategic advisor with expertise in a wide array of areas including legal digital transformation, innovation and leadership. She serves as an advisory council member for Harvard Business Review and is a Course Facilitator at Stanford Graduate School of Business. Eve is highly sought after as a keynote speaker and guest lecturer in various professional settings. Notably, she has been honored as a five-time recipient of the Stanford GSB LEAD Award.
Operating at the dynamic intersection of legal and business, Eve holds certifications from esteemed institutions such as Oxford, Harvard, Kellogg and Stanford Graduate School of Business. Additionally, she brings substantial experience as a seasoned lawyer specializing in corporate law and restructurings.
Eve's guiding philosophy is centered on working smarter, not harder, as she helps individuals and organizations navigate the complexities of today's rapidly evolving landscape.
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