Big Data = Big Strategy
Blog Post
The 2024 LMA Canada Conference kicked off with a Ted-talk-style educational program, Big Data = Big Strategy , exploring the transformative power of big data and how it sets and informs law firm strategy. Barry Solomon, Former CMO at Sidley Austin and current VP of Client Value and Innovation at Litera, led this keynote session.
Barry, a passionate advocate for leveraging data, shared his journey from introducing technology at a traditional law firm to developing data-driven strategies that address complex challenges. Here’s a recap of the insights and takeaways from his session.
Why Big Data Matters in Legal Strategy
The speaker opened with a challenge many law firm professionals face: how to justify time and resource allocation with measurable evidence. By shifting from a "go where the energy is" approach to one rooted in analytics, law firms can unlock new pathways to:
- Drive growth
- Improve client retention
- Inform resource allocation
- Enhance strategic decision-making
With both theoretical and practical examples, he demonstrated how a thoughtful approach to data collection and analysis leads to smarter decisions and stronger outcomes.
Types of Data in Legal Marketing
Data is categorized into three types, each playing a crucial role in shaping a law firm’s strategy:
1. Structured Data
Structured data involves measurable and consistent information, such as financial performance metrics, client service satisfaction, or event attendance. It is important to evaluate each link in the business development chain, from client service to building relationships and beyond. A critical insight is that a business development cycle is only as strong as its weakest link, underscoring the need to measure every component, not just the most robust one.
By using structured data to analyze resource allocation across practice areas, firms can leverage visualization tools to uncover inefficiencies, such as over-investment in less profitable areas, and recalibrate strategies for more sustainable, long-term growth.
2. Subjective Data
Subjective data represents potential opportunities, such as client feedback or team suggestions, prompting the question, “What might we do?” Effectively leveraging subjective data requires prioritizing tasks based on their ease of implementation and overall impact. By quantifying feedback, firms can transform subjective insights into structured data; for instance, Net Promoter Score (NPS) translates qualitative client sentiments into measurable outcomes. Visualization further enhances the value of subjective data, making it more persuasive and practical for stakeholders. This is illustrated by combining NPS scores with profitability data, which revealed clearer trends in client satisfaction and identified opportunities for growth.
3. Unstructured Data
Unstructured data, such as emails, meeting notes, and other non-standardized information, presents unique challenges but also significant opportunities. There is a transformative potential of generative AI to process and analyze this type of data. These advanced tools can extract valuable insights, identifying patterns and trends that might otherwise go unnoticed. Practical applications include analyzing time logs to evaluate productivity or mining historical documents to deliver swift, meaningful answers. For example, by integrating AI tools, law firms can uncover inefficiencies in time management, enabling lawyers to concentrate on higher-value tasks and improving overall operational effectiveness.
The Human Element in Data Strategy
While technology can process vast amounts of data, humans play a critical role in turning data into knowledge and knowledge into wisdom . Insight, relationships, and context are key to deriving meaningful value from data-driven insights.
Key Takeaways
Here is a list of actionable steps for law firms to embrace big data effectively:
- Measure everything: Ensure no part of the business development cycle is overlooked.
- Avoid working in silos: Connect data points for a holistic view of firm performance.
- Visualize the data: Use storytelling and visualization to make data actionable and inspire change.
Summary
The Big Data = Big Strategy session underscored that the real power of data lies in how it’s used to drive decisions. With tools like generative AI and a commitment to measuring and visualizing all aspects of performance, law firms can unlock new opportunities to grow, retain clients, and allocate resources wisely.
Data is just the beginning; turning it into meaningful insights is what truly drives success in legal marketing and business development.