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As data becomes available for decision-makers, they should incorporate it and change how
they view the probability of being correct. In a Bayesian view (a fundamental technique of
statistics), new data changes what are called priors and helps make predicted outcomes more
accurate. New findings and facts should cause thoughtful people to recognize and reconsider their
animating beliefs.
4. Delay Premature Conclusions.
When making a decision, it is crucial not to seize upon the first plausible solution to the
problem. Much better, instead, is to keep exploring alternative possibilities. Data helps stimulate
new possibilities to address a problem or to encourage managers to think about the problem longer.
5. Counter Peer Pressure.
In groups, solid data can serve as a talisman against the fancy (or loutish) talker, the zealot,
or the high-ranking executive. A partner who disagrees with her colleague might be more inclined
to back them if some metrics bolster the point.
This is not to claim that good data automatically means good decisions. It is to claim that
operational data can frequently help steer managers to reach a sounder decision. To be sure, the
toughest decisions tend not to have decisive metrics. But even the gnarliest decisions — those that
entangle personalities, tradition, long-term visions, or fights over fundamental values — can
benefit from whatever dollops of data are available.
I. WHAT DATA DO LAW FIRMS HAVE THAT CAN CONTRIBUTE TO BETTER DECISIONS?
Analytic tools require data, and law firms have data sets aplenty. From this author’s recent
book, “Data Graphs for Legal Managers,”5 the table below shows a wide array of firm data.
1. Types of data law firms have.
Starting with such internal data, firms can mix in information from other sources, possibly
within the firm or from data outside the firm. As for client information, supplemental information
might include whether it is publicly traded, whether it has an in-house law department, its revenue,
the number of employees, SIC codes, and more. For example, you might want to combine time
and billing data or input information from your HR system. Years of experience or academic
degrees of timekeepers could be mixed in from the firm’s HR database.
2. Repositories of data.
All this potentially useful data lives in paper files, people’s memory, time and billing
software, customer relationships software (CRM), marketing records, personnel files, exhaust
(data that is created by someone doing something else, like making phone calls or scheduling
conference rooms), general ledgers, status reports, surveys, and counts of all kinds of events. A
5 REES MORRISON, DATA GRAPHS FOR LEGAL MANAGEMENT: A COMPETITIVE ADVANTAGE FOR DECISIONS (LeanPub, 2017).
125
they view the probability of being correct. In a Bayesian view (a fundamental technique of
statistics), new data changes what are called priors and helps make predicted outcomes more
accurate. New findings and facts should cause thoughtful people to recognize and reconsider their
animating beliefs.
4. Delay Premature Conclusions.
When making a decision, it is crucial not to seize upon the first plausible solution to the
problem. Much better, instead, is to keep exploring alternative possibilities. Data helps stimulate
new possibilities to address a problem or to encourage managers to think about the problem longer.
5. Counter Peer Pressure.
In groups, solid data can serve as a talisman against the fancy (or loutish) talker, the zealot,
or the high-ranking executive. A partner who disagrees with her colleague might be more inclined
to back them if some metrics bolster the point.
This is not to claim that good data automatically means good decisions. It is to claim that
operational data can frequently help steer managers to reach a sounder decision. To be sure, the
toughest decisions tend not to have decisive metrics. But even the gnarliest decisions — those that
entangle personalities, tradition, long-term visions, or fights over fundamental values — can
benefit from whatever dollops of data are available.
I. WHAT DATA DO LAW FIRMS HAVE THAT CAN CONTRIBUTE TO BETTER DECISIONS?
Analytic tools require data, and law firms have data sets aplenty. From this author’s recent
book, “Data Graphs for Legal Managers,”5 the table below shows a wide array of firm data.
1. Types of data law firms have.
Starting with such internal data, firms can mix in information from other sources, possibly
within the firm or from data outside the firm. As for client information, supplemental information
might include whether it is publicly traded, whether it has an in-house law department, its revenue,
the number of employees, SIC codes, and more. For example, you might want to combine time
and billing data or input information from your HR system. Years of experience or academic
degrees of timekeepers could be mixed in from the firm’s HR database.
2. Repositories of data.
All this potentially useful data lives in paper files, people’s memory, time and billing
software, customer relationships software (CRM), marketing records, personnel files, exhaust
(data that is created by someone doing something else, like making phone calls or scheduling
conference rooms), general ledgers, status reports, surveys, and counts of all kinds of events. A
5 REES MORRISON, DATA GRAPHS FOR LEGAL MANAGEMENT: A COMPETITIVE ADVANTAGE FOR DECISIONS (LeanPub, 2017).
125
