Data is an increasingly important tool in helping firms deliver strategic interventions. Austen King, a data expert with 25 years’ experience in data management shares his expertise alongside Totum’s Technology experts Ross Mackenzie and Lucy Hole on how to build effective data teams to help firms’ strategic aims.

The availability and analysis of data is transforming every industry, supporting strategic decision-making, improving client experience and streamlining processes.

According to research by PwC, highly data-driven organisations are three times more likely to report significant improvement to decision making. Yet implementing effective data analysis and insight is still a challenge.

For law firms, data can be valuable across a number of functions. Marketing and business development teams are increasingly using data to win new business through pricing analysis and pitch refinement (one McKinsey report suggest data-driven sales-growth tools can grow EBITDA by 25%), while knowledge management teams can enhance customer experience by tracking engagement, prepping for briefings and segmenting clients based on pre-defined criteria.

Most commonly, data can be used to assess productivity and performance, analysing billed hours and expenses to identify potential cost savings.

Austen King is a data management and business intelligence consultant with more than 25 years’ experience of data leadership, having previously served as Global Head of Data & Analytics at Clyde & Co and Head of Large Holdings Data Operations at Barclays.

“In my experience, the companies that truly leverage data to drive value are the ones that treat it as a strategic asset, not just a by product of operations. The most impactful use cases come when data is directly tied to business outcomes,” says King.

Behind the data curve

Traditionally, the legal sector has been slower than other sectors to utilise new technology – and data analysis is no different. According to a 2019 survey by RELX Group, the legal sector finished last among US industries in utilising big data, with only 44% of law firm leaders offering employee training on big data, artificial intelligence and machine learning. While those figures will have no doubt changed over recent years, more needs to be done.

Using data effectively requires accurate, up-to-date information. Yet much of the data held by a law firm is tangled between different functions, separated into various silos and stored in systems that don’t communicate.

Creating a single source of truth on data means creating a team to take ownership of it and drive it forwards. So while practical data governance requires engagement from the entire firm, it’s no surprise many firms are focusing on building out their data teams to manage, sort and analyse their data.

“Over the last 18 months, we have seen a rise in data vacancies within our clients, ranging from Data Analysts, Engineers and Testers right through to Data Governance Managers and Heads of Data. Firms are looking at gaps in resources within their existing teams and where improvements can contribute to their overall data strategy,” says Ross Mackenzie, Head of Technology Practice at Totum Partners.

“There has been a fresh wave of excitement and growing interest in data,” agrees his colleague Lucy Hole, Technology Consultant at Totum Partners.

“Companies are not just forming data teams, but are also setting up data committees to tackle the massive challenge of transforming how they handle and input data. It’s clear there is momentum across all firms and this is unlikely to slow down in the near future,” she adds.

Building a modern data team

Doing so requires understanding the changing profile of data teams. Unlike the old stereotypes of data as report generators, modern data teams deal with extra complexity, more data sources and an increasing influence on business strategy.

King believes that there are three key elements to building successful data teams.

“First, having a clear vision is absolutely key. I’ve led teams where we’ve had to deliver under tight deadlines or in high-pressure environments, and what made the difference was ensuring everyone understood how their work contributed to the bigger picture. It’s not just about delivering data, it’s about solving real business problems,” he says.

“Secondly, it’s all about investing in your people. You can have the best tools in the world, but if your team doesn’t feel empowered and supported, it won’t matter. It’s about creating an environment where they feel like they can make an impact,” adds King.

Underpinning these elements is a strong foundation, where processes, procedures and reporting is robust.

“Strong foundations make everything else possible. I’ve worked in industries where trust in data was critical, whether for regulatory reporting, operational dashboards or machine learning projects. Establishing robust governance, clear processes and leveraging the right tools not only improved accuracy, but also gave the team confidence to innovate,” says King.

Today’s data teams need to deliver live data that can be actioned by business users, not other data engineers. They need to work with data from an ever-growing number of sources, while meeting data privacy regulations and dealing with security challenges. Like every other business function, they also have the challenge of rapid transformation as firms become increasingly agile in their approach to technology.

Strategic use of data

For technology leaders looking to build out their data teams, it often helps to start with the end in mind. Audit where you data governance is now and define where you’re trying to go. Think about three key areas: people, technology and systems, and audience.

From a people perspective, understand who is currently on your data team and what role they perform. What specific skills and experience do they have? How do they fit with the company culture, and how quickly can they turn the data into insights?

When it comes to technology and systems, it’s likely that you’ll need to invest in new technology to consolidate your data. However, before you do that, review your current data stack. How do you store, model and process data? How do you ensure that your existing data is accurate, and that it creates actionable insights?

Finally, consult with leadership teams to understand the audience for your data. Who will be using data insights and what do they need from it? How efficient are your current processes in providing them with the information they need?

“We’re seeing advancements like generative AI and automation revolutionise how organisations process and analyse data. These tools are making it faster and easier to derive insights, but they’re not the whole story,” says King.

“What’s critical is maintaining a human-in-the-loop approach. AI is powerful, but it’s only as good as the data we provide. I’ve seen first-hand how human expertise – whether in governance, analytics or decision-making – remains essential for ensuring AI and other technologies deliver value in an ethical, responsible way,” he adds.  

Ultimately, each firm will face individual challenges in terms of  the strength of their data insights and the business goals they’re looking to achieve. While there is no one-size-fits-all solution, effective change management requires understanding your existing capabilities and where you want to get to in the future.

Challenges for data-driven firms

It’s important to remember that there is no point in creating a data team or gathering data points if you don’t know what to do with it. As Carly Fiorina, former CEO at Hewlett Packard once said: “The goal is to turn data into information, and information into insight.”

Data is only relevant if it can be applied to a solution – and data analysis is only successful if data is robust, accurate and up-to-date. An obvious challenge is that too much data can be overwhelming, leading your target audience to ignore insights or even make mistakes. This can slow adoption and create a culture of resistance among employees.

There are also clear risks around data protection and privacy for firms. Law firms must only collect and store client data for which they have complete consent, with clear processes on how they obtain consent for such data. In a world of increased cyber threats, growing data teams often go hand in hand with growing cyber security teams.

Despite these challenges, a well-crafted data strategy aligned to business objectives is vital to ensuring firms stay competitive in the digital age. Overcoming these challenges and building an effective data team is critical to future success.

To learn more about Totum’s technology offering, or to find out how we help firms build out their data teams, contact:

Ross Mackenzie, Head of Technology Practice [email protected]

Lucy Hole, Technology Consultant [email protected]