Law firms are seeking out change makers, and they represent the next generation of executive.
The Changemakers Report, co-sponsored by CARET Legal, is a comprehensive study conducted by Ari Kaplan Advisors to shed light on how mid-size law firms are navigating change and driving growth.Â
We’ve outlined some of our favorite key findings and insights from the Executive Summary of the report, which highlights how firms are navigating changes to future-proof their operations, integrating technology, and fostering a culture of continuous improvement.
Redefining Change Management
Change management has evolved beyond simply updating tools or policies. It now represents a fundamental constant in law firm operations. The report reveals that successful firms approach change as an exercise in empowerment, combining talent, experience, and resilience to promote seamless shifts in their organizations.
Leaders of midsize firms are reevaluating their entire philosophy around:
- Where and how their teams work
- Navigating a multigenerational workforce
- Optimizing automation in the era of generative AI
- Transforming training to develop a more dynamic workforce
- Creating new blueprints for growth
Trust, Preparation, & Persistence
The report finds that law firm leaders have a strong track record for achieving buy-in for their recommendations through trust, preparation, and persistence in overcoming resistance to innovation. Successful strategies include:
- Implementing change in manageable pieces
- Starting small and expanding slowly
- Adapting processes for each group of users or use cases
- Proving effectiveness and building on successes
- Discussing changes transparently to break down barriers
Balancing Technology and Profitability
To thrive, modern leaders need to strike a balance between leveraging technology to empower lawyers and strengthening their firm’s profitability. The top technology objectives for midsize firms include:
- Enhancing efficiency (60% of respondents)
- Increasing productivity
- Improving security
- Empowering client service
However, challenges still persist in technology adoption, with training (33%) and awareness (20%) being the primary hurdles for firms to overcome.
You are either the steamroller or the pavement, so you need to be progressive in your thinking.
The Power of Training and Collaboration
In response to those technology adoption challenges, firms are emphasizing tactical training. They recognize that professionals use tools they’re comfortable with, so practical, recurring training offers a meaningful return on investment. Firms are increasing and broadening their training opportunities, including:
- Offering more training options to meet shifting expectations
- Accommodating hybrid work environments
- Incorporating peer support to maximize collaboration
Embracing Automation and AI
Midsize firms are increasingly turning to automation to streamline their operations, focusing on areas like:
- Document creation (57% of respondents)
- Email filing (50%)
- Data extraction (40%)
While generative AI is increasing in popularity, only 30% of firms report actively using it. Many are in the early stages, conducting pilots, experimenting with ChatGPT, or deploying/leveraging AI features built into existing platforms (like CARET Legal’s ‘Quick Summary’).
Cautious Optimism and Competitive Advantage
The vast majority of respondents believe that legal technology provides a clear competitive advantage by enabling small and mid-size law firms to improve services, increase revenue, and drive growth.
Many leaders believe they now have the opportunity to compete directly with larger legal teams. Additionally, Generative AI has created cautious optimism among midsize law firms. While many are still in the investigative stage, they see potential for AI to revolutionize their workflows and knowledge management practices.
Be the steamroller, not the pavement
As one Chief Operating Officer put it, “You are either the steamroller or the pavement, so you need to be progressive in your thinking.”
The Changemakers Report paints a picture of midsize law firms at a crossroads of innovation and tradition. By embracing change, leveraging technology, and fostering a culture of continuous improvement, these firms are positioning themselves for success. Get instant access to the full report here.
