5 ways law firms fail when trying to adopt a data governance framework

Introduction?

One of the reasons that law firms ask for Iron Carrot’s help is after trying and failing to adopt a data governance framework. Relaunching a failed programme so that it lands successfully requires three things:?

• a deep understanding of what went wrong;?
• a comprehensive and robust plan to get it right this time;?
• a compelling story about why the firm still benefits from getting it right.?

Doing the discovery and root cause analysis for failures has let us identify the five most common ways that law firms fail when trying to adopt a data governance framework.?

1. Lack of executive support?

Data governance is essential to managing a firm’s information assets to ensure data quality, security, and compliance. However, data governance can falter or fail without solid backing from firm executive leadership and the leaders of business services functions. This is usually because of insufficient resources (both financial and human) or from a lack of priority given to data governance amongst the multitude of competing projects within the firm.?

What causes a lack of executive support??

Lack of awareness? Sometimes, leadership might not fully understand what data governance is, why and how it can help them and their teams achieve their goals and its impact on the firm’s overall success. This lack of awareness can result in inadequate support.?

Competing priorities? Firms usually have multiple projects running simultaneously and can mistakenly believe that data governance is another project to be scheduled into the book of work. This can lead to data governance lacking attention and resources to embed it as the enabler to help accelerate the delivery of the firm’s priority projects.?

Resource constraints? Limited budgets and staffing constraints can force leaders to make hard choices about where to allocate resources. Without a compelling case for data governance, it will not be prioritised as a necessary activity.?

How do you get executive support??

There are several steps to solving this. Firstly, you need to shape and share compelling stories that can educate leadership on the importance of data governance. These stories should highlight its benefits and the potential risks of neglecting it.??

Use real-world examples to illustrate your points. Include case studies or anecdotes from other firms and data showcasing the expected ROI — things like project cost savings, improved efficiency, or increased revenue.??

Having educated your leadership on why data governance is important to the firm, you now need to work with them to understand the firm’s strategic goals. By engaging with them in aligning data governance initiatives and objectives to these goals, you will help them see data governance as a priority.??

Part of that data governance goal setting is sharing your plan outlining the resources needed for a successful data governance framework. This loops back to your compelling stories, which will help secure the resources you need.?

EXPERT TIP: Whether it’s a data steering committee or a data governance framework lessons learned group, your path to success will be easier if you include leaders from across the firm. When you are ready to launch, having a group tasked with overseeing data governance and ensuring its activities align with the firm’s objectives will give you a ready-made group of champions. This group will help you advocate for (or will be able to provide you with) the resources you need. This cross-functional approach also helps embed data governance into the firm’s culture, ensuring its integration into all relevant processes, projects, and roles.

2. Undefined Goals?

Not having clear objectives or outcomes for what the data governance framework is supposed to achieve can lead to misalignment and ineffective efforts in managing the firm’s data assets. A lack of defined goals can lead to a lack of direction and focus for the people involved in your data governance framework. It might not address critical issues or may focus on non-priority areas, leading to confusion, inefficiency, and wasted resources.?

What causes undefined goals??

One of the primary causes of this mistake is a failure to involve the right stakeholders in developing the data governance framework. Without key stakeholders’ input to articulate the ‘why’ and ‘why now’, it can be challenging to define clear goals and outcomes that align with the firm’s strategy or operational priorities.?

How do you define goals??

It is essential to involve stakeholders across the firm, including all business services/ legal operations functions (at least HR, Finance, Knowledge, BD & Marketing, IT, and the GC’s office). This will ensure that the data governance program’s goals and outcomes align with the firm’s priorities and objectives. Establishing a clear roadmap and defining how you will measure the framework’s success is also essential.?

EXPERT TIP: Identify key stakeholders at strategic, tactical, and operational levels as soon as possible so that they can form the skeletal framework groups. These representatives from across the firm will be able to help you define data governance objectives, prioritise activities, and define success criteria. The questions they ask through this process and the individuals they suggest you talk to will give you the building blocks for delivering a successful framework (people and stories).

3. Inadequate stakeholder engagement?

Because a data governance framework is a new structure for the firm, it is easy to forget critical stakeholders who add value to framework activities. This is always done accidentally, but excluding important roles can create barriers to the effectiveness and credibility of the framework.??

What causes inadequate stakeholder engagement??

The root cause of this mistake often lies in assuming that everyone has the same level of knowledge about data governance and how it can help the firm. Stakeholders might not be fully aware of the framework’s scope and its implications for their roles, leading to gaps in engagement. Additionally, there might be a lack of clear communication and understanding about who needs to be involved and why their involvement is critical, further exacerbating the problem.?

How do you engage stakeholders??

Addressing this issue requires a deliberate and strategic approach to stakeholder engagement. This involves conducting a comprehensive analysis to identify all potential stakeholders across the firm. Using your executive sponsor champions, make a concerted effort to communicate the purpose, benefits, and expectations of the data governance framework to the stakeholders.??

Engage them through regular updates, seek their input, and incorporate their feedback. This ensures that they feel valued and part of the process. If you establish clear channels for ongoing communication and collaboration, you can prevent future oversights and foster a culture of inclusivity and shared responsibility for the framework’s success.?

EXPERT TIP: It helps to start from the beginning of your data governance story with every new person you bring into the conversation. They can't feel involved and able to support you if they don't fully understand what you're doing and why you're doing it.??And if your stakeholders have been working in silos, you'll need to build in plenty of time to help your data stakeholders get to know each other.??

4. Overemphasis on technology?

While technology is an important component, focusing too much on tools without considering the processes and people involved can hinder success. While it’s undeniable that technology plays a crucial role in handling data efficiently, it’s important to remember that it’s just one piece of the puzzle. The true essence of data governance lies in treating data as a valuable asset, which requires a comprehensive approach that equally focuses on the processes and the people involved.??

What causes an overemphasis on technology??

The rise of legal tech, the advances in AI, and the general mindset shift of law firms to being more open to adopting technologies have had unfortunate consequences. There is a prevalent belief that for every problem, there is a technological solution. Leading to a mindset that data governance has a quick fix if only the firm can find the right software. This approach underestimates the complexity of data issues, which are deeply intertwined with how the firm operates and how its people interact with data.?

How do you fix an overemphasis on technology??

Addressing this mistake requires a shift in perspective, starting with acknowledging the critical role of people and processes in data governance. It involves clearly understanding your firm’s data processes and identifying areas where technology can aid data governance efforts, not lead the solution. Do not underestimate the benefits of investing in training and culture change to foster a data-centric mindset that recognises the importance of data quality and ownership.?

EXPERT TIP: A practical approach to avoid overemphasising technology is to adopt a balanced framework for data governance that prioritises strategic alignment with business goals, clear governance processes, and active engagement of cross-functional teams. Technology will be seen as an enabler, not the driver, of data governance efforts. If you focus on building a solid foundation incorporating people, processes, and technology, you can ensure a more sustainable and successful data governance strategy for your firm.

5. Inflexible processes and standards?

Processes and standards that are excessively rigid can often lead to a stifling of innovation and hinder the ability to adapt to changing circumstances. This is particularly relevant in data governance frameworks, where flexibility and the capacity for evolution are crucial. As a firm’s needs and priorities evolve, so too must its governance structures to ensure they remain practical and relevant.?

What causes this inflexibility??

The root cause of overly rigid processes and standards is a desire for control and predictability. Firms may implement strict rules and procedures to minimise risks and ensure compliance. However, this can lead to a lack of agility, making it difficult for the organisation to respond to new opportunities or challenges. In the context of data governance, such rigidity can prevent the firm from leveraging new technologies or data sources that could drive innovation.?

How do you embrace flexible governance??

Addressing inflexible processes and standards requires a shift in mindset from strict control to flexible governance. Firms should aim to develop principles-based data governance frameworks rather than rules-based, allowing for greater adaptability. This can involve setting broad guidelines that provide direction but leave room for interpretation and adaptation as circumstances change. Additionally, involving a more comprehensive range of stakeholders in developing processes and standards can help ensure they are balanced and practical.?

EXPERT TIP: Adopting a tiered approach to standards and processes is an effective strategy for maintaining flexibility in data governance processes and standards. This approach involves defining non-negotiable core principles while allowing for more flexibility in how those principles are applied in different contexts. Regularly reviewing and updating processes and standards in light of new developments and stakeholder feedback can also help ensure they remain relevant and effective. Encouraging a culture of continuous improvement and innovation within the firm’s data governance groups is key to avoiding the pitfalls of rigidity.

Conclusion?

In essence, the journey toward establishing a successful data governance framework within a law firm is fraught with challenges but is fundamentally crucial for the firm’s long-term success. Lack of executive support and undefined goals represent significant hurdles that can derail this process before it even gains momentum.??

However, law firms can overcome these obstacles with a strategic approach that includes educating leadership about the importance of data governance, securing their support, clearly defining the framework’s objectives, and ensuring these align with the firm’s strategic goals.??

The lessons that Iron Carrot has learned highlight the importance of involving stakeholders across the firm and adopting a cross-functional approach to embedding data governance into the firm’s culture. By learning from past failures and adopting these recommended strategies, law firms can relaunch their data governance frameworks effectively, ensuring they are well-positioned to manage their data assets effectively.??

This is not just about avoiding failure; it’s about setting a foundation for future innovation, growth, and competitive advantage in an increasingly data-driven world.?

How Iron Carrot can help

Innovative law firms have big goals for improving the client experience through data innovation.

Through our extensive law firm background, we have developed a unique data governance road-mapping approach to help law firm leaders launch the proper foundation for their data strategy.

If you want to chat confidentially about how Iron Carrot can help your firm with its Data Strategy and Data Governance initiatives, then send me a Direct Message via my Profile, or book a call via the Iron Carrot Limited website.

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