Episode Transcript
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Welcome to Reinventing Professionals,a podcast hosted by industry analyst
Ari Kaplan, which shares ideas,guidance, and perspectives from market
leaders shaping the next generationof legal and professional services.
This is Ari Kaplan and I'm speaking todaywith BNA Tellman, the founder of Fjord
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Stream Advisors, a boutique consultancythat provides advisory services and
executive coaching to the legal industry.
Hi bna, how are you?
Hey, how's it going Ari?
Thanks for having me on.
It is my privilege.
I'm really looking forward to this.
So tell us about your background andthe genesis of Fjord Stream Advisors.
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I spent.
30 years with law firms andthen in a range of different
companies around the world.
17 of those 30 years as a generalcounsel and about 10 as a public company,
general counsel in different industriesin pharmaceuticals over the counter.
Education.
After 30 years I decided it was timeto do something slightly different.
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So I have launched Fjord Stream Advisors.
It's a boutique consultancy thatprovides three service lines.
The first is strategic advisory servicesto law firms, legal departments, and
alternative legal service providers.
The bulk of work to date has centeredaround a couple of big areas.
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One is digital transformation.
I. Strategic disruption and change.
And the other would be related tothat, thinking about strategy and how
in particular legal departments andlaw firms should be thinking about
the implications of ai and technologyon how they deliver services and
also the structures that they have.
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To deliver those services.
And then the third would bearound team optimization.
How do you build a greatand outstanding team?
How do you deliver servicesin a way that really knocks
the stocks off your customers?
So that's the sort of advisory piece.
There's a maybe a subsidiary piecein that advisory space around.
Trying to help alternative legal serviceproviders and tech companies really
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land the implementation of a project.
So once they've closed the dealand they're sitting there with the
legal department and they're aboutto roll out the proposal, I've found
that it sometimes is helpful tohave almost like an intermediary,
somebody who understands both sidesof that, who can come in and say.
This is what they mean,this is how it should work.
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And bring it back the other way as well.
And then the second streamis executive coaching.
The theme there is reallylawyers in transition.
I have some technology executives as well,but the bulk of people are lawyers and
legal professionals who are either takingon new roles thinking about taking on a
new role, or thinking about leaving theprofession because they wanna retire.
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Or they're thinking aboutnew and different jobs.
That's been a really excitingand engaging part of the work.
The third bucket isworkshops and speaking.
It really involves a lotof those same themes.
Outside of that, I'm also, in theprocess of writing a new book,
which will come out in October.
It also involves AI and the lawand the implications of AI on the
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structure of legal services firms.
Where should law firms focus their digitaltransformation efforts at the outset?
The challenge for law firms.
Is, in the first instance, many ofthem are focused right now on how to
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make the existing model more efficient.
So that would be, how do we find a.Tools that will enable us to generate
more billable hours more effectivelymaybe with better research capabilities.
That's the first wave.
How do you make your horse andbuggy a faster horse and buggy?
The longer term strategicquestion for law firms is.
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What are the implications of AIand technology on how services are
delivered and how should we beginthinking about the potential disruption
that could cause to the model?
And that's really hard for firmsto do because right now we're
at peak law firm profitability.
Everyone is, hand over fistmaking record profits and that's
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a really hard moment to say.
Let's take some time to really thinkabout what could happen in the next five
years as technology continues to growexponentially in terms of the computing
and processing power that it deliversand what the implications of that might
be on the way we have modeled ourselvesto deliver services, the billable
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hour model, the pyramid structure
.That's a very difficult thing for
them to do, but that's where the
real value lies is to begin thinkingabout that in a very cautious way.
Now,
how does the way that corporatelegal departments should focus their
digital transformation differ fromtheir law firm corresponding peers?
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, The situation for legal departmentsis a little bit different because
in many cases, legal departmentswill be driven by the imperatives
of the companies that they serve.
And in many cases, the companiesthat they serve are changing
their structures, changing theirorganizational models around ai.
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They are organizing theirdata into component libraries.
Off of which the entire enterpriseis leveraging information to
generate new values and new services.
And that's not just datacompanies or tech companies.
That's pretty much everycompany that is looking at that.
That means that the structuresinside companies are beginning
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to change and evolve, and as theychange, legal departments will
be expected to change as well.
So in some ways.
The digital transformation that istaking place in legal departments.
Is contingent on what's happeninginside the broader company.
That's a very different imperativefrom the law firm, which is, sitting
at the moment with record profits, withtheir existing model, with very little
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incentive to make any kind of change.
At some point, those two will cometogether in a little bit of a clash.
And then maybe there's a commonalitybetween the two, which is really
around once you do have a needto transform, is there a right
way and a wrong way to do that?
How do you implement a digitaltransformation journey in a way
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that is minimally disruptive andmaximally profitable and efficient?
And what I've found is there definitelyis a wrong way and there's a right way.
How should legal organizations bethinking about technology and artificial
intelligence in particular at this moment?
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If you're not thinking about it at thismoment you are setting yourself up for.
I think some very painful reflectiona time, five, five years from now.
And you should be thinking about this,not just in terms of what tools and
technologies can make my existingmodel more efficient right now.
Although you might wanna be doingthat too, but you should be thinking
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about what are the implications ofthis in five or 10 years if this
continues to evolve exponentially.
And, I'll give you an example frommy practical, personal situation.
In starting my own business I have anumber of tax related complications.
I I've founded a newbusiness in one country.
I have tax residencyin multiple countries.
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I have clients all over the placeand just trying to figure out how to
anticipate the tax analysis that comesout of that is a complicated question.
The other day I simply fedinto chat, GPT, that question.
I said, here's my situation, i'ma citizen of these countries.
I've got tax residency in these countries.
Here's where my company's based.
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I've got revenue streamscoming in from all over.
What's the appropriate tax analysis andhow should I be thinking about this?
And you know it with zero marginalcost and instantaneously it delivered.
Quite frankly the bestanalysis I've seen to date.
And then I shared that with my advisorsand they said, Hey, that's about
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95% accurate, I did not share that.
That was a chat GPT analysis.
I just simply said I'vedone some research.
Let's stop all the otherwork and focus on the 5%.
That got me thinking, chat GPTit's going to be, significantly
more effective in five or 10 years.
So imagine a world where.
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You have a chat GPT for lawyersthat replaces e-billing , Contract
Management Systems, KPI, dashboards.
And provides generalized legal advicefor say, 60 to 80% of the work that
takes place in your department.
Now, that is highly beneficial, but alsohighly disruptive to your current column.
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In one way, it's beneficial because todayinside a legal department, you might have.
A lot of opportunity to, disaggregate thevalue chain and farm out different areas
of work to the most efficient provider,whether that's an offshore entity, , a
nearshoring or a hybrid staffing solutionor a solution sitting further away.
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It might be leveraging contract orcloud-based contract management systems.
It might be leveraging other AI enabledtools, but however you do it today,
it's complicated and you're gonna have15 to 17 different tools that you've
gotta coordinate, you have to roll out.
There's a big change program behind allof that, and it's gonna cost you a lot
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of money and disrupt your operations.
I've done it a couple of times,so I know of what I speak.
A chat GPT for law in five or 10 years, itcould do the things that I just mentioned.
How much change does that really entail?
Not that much.
Initially.
You just plug it in and it works.
Now that's a hypothetical and whoknows if we'll ever get there, but our
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legal departments thinking about whatthat means in terms of the structure
that they need to roll out andwhether the structure you have today.
Is one that is well placed to,to deliver services tomorrow, how
does it impact your supplier base?
So that's on the legal department side.
The law firm side.
We could talk about that for a longtime, but that model has dramatic
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implications for the current model.
And by the way, this would also havehuge implications for the alternative
legal services provider model.
If you are leveraging, certain tool fora big chunk of your profitability, is
that tool still gonna be an effectivesolution five to 10 years from now?
And what are you doing?
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To think through that, whoare the winners gonna be?
Who are the losers gonna be?
Where does the bargaining powershift over the next few years?
Those are some of the questions that Ithink are fascinating right now and I
think are certainly worth considering.
With all of these changes happening,how does a leader of an organization
build a team that will drivethat institution into the future?
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As you think about putting your teamtogether, , whether you're in a law firm,
a legal department, an A LSP or somewhereelse, you really need to be thinking
about having a multidisciplinary team.
Number one.
So a team consisting of lawyers?
Yes.
But also a large number of other legalprofessionals, including technologists
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process design experts, change experts,and then you should be thinking about
what soft skills and capabilitiesdo you need within that population.
So you don't just need hardlegal skills or coding skills,
you're going to need more.
Strategic skills more ability tocommunicate, message and manage
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human to human connections.
So you're gonna need a rangeof other skills as well.
Eq emotional intelligence, cq,cultural intelligence grit and stamina.
Are you looking for that in people?
You need courage.
You need people with vision, youneed people who are innovative.
So it's a very different group ofcapabilities that you're gonna be looking
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for in that multidisciplinary team.
And then, quite frankly, I. I thinkyou're also gonna need certain hard
skills that, tangible, measurable skillsthat many particularly lawyers lack.
And that's not, their fault.
It's the fault of legal education.
Does your legal team understand strategy?
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Can they talk business?
Do they know how to read a p and l?
Can they, do they understand what abalance sheet actually is telling them?
Not just can they look at it and I.
Bluff their way through it.
But do they really understand whatit's telling them about the company?
Do they really have a deep insightand appreciation of how risk gets
managed and what the principlesof enterprise risk management are?
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So these are the sorts of questions thatI think legal leaders should be asking
themselves regardless of where they sit.
As an executive coach, how do yourecommend that leaders and professionals
identify their value so they canheighten that value in an era of
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generative ai, agent AI and automation?
It's a very exciting andinteresting part of my.
Practice.
I love the intellectual challengeof , the advisory side of it
and the enterprise thinking.
But if I have a real passion it's workingone-on-one with legal executives as they
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try to navigate this moment in time.
What I've found is, there's so muchchange going on and very often , people
have a tendency to be led by theirinstincts and a little bit by chance
without really stepping back toreflect on what it is that drives them.
So I like to start with, a littlebit of work on, what is your makeup?
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What is your personality?
Do you really understand the valuesthat drive you as a human being?
And your, what takes energy away from you?
What gives you energy?
And then working off the back of that,really reflecting deeply on what your
purpose is, your personal purpose.
Why do you exist?
What do you exist to do?
If you look back on your life in 20years time and it was successful,
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what are the elements of that successthat really mean something to you?
And I've often borrowed alittle bit from an author.
He has a column in the New York Timeshe's got this notion that you have eulogy
values and CV values, and too often peoplefocus on their CV values, meaning the
values that are transitory in your life.
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Do you have capabilities in acertain technology or do you have
certain skills or, are you greatat delivering presentations?
Then you have eulogy values, whichbasically are the values that people would
talk about at your eulogy after you'vepassed, what kind of person were you
those tend to be the essential things.
Were you a good mother or father orbrother or sister or son or daughter
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or friend or, those enduring valuesand principles, those are the ones
that I think you really need touncover for yourself at a moment in
time where you're thinking about.
Transition career-wise and askyourself, how do I leverage the
things that really matter in my work?
How do I really uncover my purposeand then put that to work in
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terms of what I wanna do next?
And that may sound very idealistic,but quite frankly, if you don't know
what drives you, you don't know whyyou're here and what your purpose is,
then you're gonna be blowing in thewind and maybe you're lucky and you
land that next job and it's perfect.
Or maybe, you just follow the pathof least resistance and you convince
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yourself that the next job soundsgreat because on your cv , it looks
like a step up and then you get intoit and you're miserable because it
just wasn't the right role for you.
Those are some of the things that I reallyenjoy about the coaching, it's incredibly
rewarding to help someone uncoverfor themselves what those things are.
Because at the end of the day,people are their own best teachers.
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I can be there to help, maybe ask thequestions and partner and maybe point out
a few things here and there, but it's upto the coachee to uncover for themselves
the solutions that lie within them allthis while so it's just wonderful to
see that when when a light goes on andpeople go, wow, I never thought of that.
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That's a really importantthing for me to reflect on.
And then building off of that, tofind meaning in whatever they do next.
This is Ari Kaplan speaking with BianaTillman, the founder of Fjord Stream
Advisors, a boutique consultancythat provides advisory services and
executive coaching to the legal industry.
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Biana, it's been an honor and I wish youthe very best of luck in this new role.
Thanks a lot.
It's been great being on Ari, and best ofluck with everything, so appreciate it.
Thank you for listening to theReinventing Professionals Podcast.
Visit reinventing professionals.com orari kaplan advisors.com to learn more.