Disruption Happens

Disruptive innovation is real. It happens all the time. Harvard Business School professor Clayton Christensen pioneered the theory in his book, The Innovator’s Dilemma.

However, pundits who predict doom and gloom for lawyers don’t understand disruption theory. For example, they often equate disruption with going out of business. Christensen recently noted that disruption “is not a theory about survivability.”

Christensen cites the example of U.S. Steel. So-called mini mills such as those pioneered by Nucor drove U.S. Steel out of several markets. However, U.S. Steel didn’t go out of business. Instead, it moved upmarket, currently producing steel for high-end applications such as airplane wings and car bodies.

Three types of disruption exist. Below I’ll explain why none of them apply to lawyers like you.

1. Low End Disruption

2. New Market Disruption

3. Professional Services Disruption

Don’t Get Scared but Don’t Become Complacent

Disruption won’t kill your law firm, but poor business management, and an underinvestment in marketing and technology will. Honestly assess your weaknesses and shore them up. Hire a so-called lawyer coach if needed such as Bruce MacEwen in the large firm world and Allison Shields in the small firm world. Invest in document automation technology and test flat fees. But don’t pay any attention to disruption scaremongers until the legal profession loses its regulatory protections or Siri tells you she’s leaving to start her own law firm. Even then, you’ll still have client satisfaction in your back pocket.

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