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The Rogers Diffusion Curve:
Applied to the Legal Industry
William Henderson
Indiana University Maurer School of Law
Lawyer Metrics LLC
“[A]ll models are wrong,
but some are useful.”
-- George E.P. Box, Statistician
Rogers Diffusion
Curve

Time
100%

Rogers Diffusion
Curve

50%

Time
Figure 1. Percentage of Farm Operators First Hearing of Hybrid Seed
Corn and Percentages First Accepting It, by years

Source: Ryan, B., & Gross, N. C. (1943). The diffusion of hybrid seed
corn in two Iowa communities. Rural Sociology 8:15-24.
Percentage of Total Acreage Planted with Hybrid Seed

Source: “Hybrid Corn: An Explanation in the Economics of Technological Change” in
Technology, Education, and Productivity (1988).
Percentage of Total Acreage Planted with Hybrid Seed

Manufacturing

Finance

Medicine

Consulting

Law

Source: “Hybrid Corn: An Explanation in the Economics of Technological Change” in
Technology, Education, and Productivity (1988).
Legal
Complexity

Reality

Rise of the
Large Firms

1914

Experience and
Perception

1984

Corporate
Growth
© William D Henderson, 2014
Legal
Complexity

Reality

Rise of the
Large Firms

1914

Higher
profits
Experience and
Perception

1984

2014

Corporate
Growth
© William D Henderson, 2014
Legal
Complexity

Reality

Search for
substitutes to
deal with cost
and quality

Rise of the
Large Firms

1914

Higher
profits
Experience and
Perception

1984

2014

2044

Corporate
Growth
© William D Henderson, 2014
Two Hemispheres

Hemisphere 1:

People Clients

Hemisphere 2:

Organizational
Clients
Organizational
Clients

BigLaw

Regional Law Firms

Solo & Small Firms

People
Clients

“Two-Hemispheres”

Y

Artisan Guild

Criminal
Defense /
Public
Defenders
Bespoke

Standardized

Systematized

Productized

Commoditized

X

Susskind ‘s Market Evolution
© William D Henderson, 2014
Organizational
Clients

BigLaw

Regional Law Firms

Solo & Small Firms

People
Clients

“Two-Hemispheres”

Y

Artisan Guild

Criminal
Defense /
Public
Defenders
Bespoke

Standardized

Systematized

Productized

Commoditized

X

Susskind ‘s Market Evolution
© William D Henderson, 2014
Organizational
Clients

Low Cost
Providers

BigLaw

Regional Law Firms

Solo & Small Firms

People
Clients

“Two-Hemispheres”

Y

Multidisciplinary
Teams

Artisan Guild

Criminal
Defense /
Public
Defenders
Bespoke

Standardized

Systematized

Productized

Commoditized

X

Susskind ‘s Market Evolution
© William D Henderson, 2014
Organizational
Clients

Low Cost
Providers

BigLaw

Regional Law Firms

Solo & Small Firms

People
Clients

“Two-Hemispheres”

Y

Multidisciplinary
Teams

Artisan Guild

PeopleLaw –
e.g., Modria
and Legal
Force
Criminal
Defense /
Public
Defenders
Bespoke

Standardized

Systematized

Legal Publishers
e.g., LegalZoom,
Rocket Lawyer

Productized

Commoditized

X

Susskind ‘s Market Evolution
© William D Henderson, 2014
Organizational
Clients

Low Cost
Providers

eDiscovery
Vendors

BigLaw

Regional Law Firms

Solo & Small Firms

People
Clients

“Two-Hemispheres”

Y

Multidisciplinary
Teams

Artisan Guild

PeopleLaw –
e.g., Modria
and Legal
Force
Criminal
Defense /
Public
Defenders
Bespoke

Standardized

Systematized

Legal Publishers
e.g., LegalZoom,
Rocket Lawyer

Productized

Commoditized

X

Susskind ‘s Market Evolution
© William D Henderson, 2014
Organizational
Clients

In-House Vertical
Integration
NewLaw – e.g.
Axiom, Novus

BigLaw

Low Cost
Providers

eDiscovery
Vendors

LeanLaw
e.g.,
Seyfarth

Regional Law Firms

Solo & Small Firms

People
Clients

“Two-Hemispheres”

Y

Multidisciplinary
Teams

Artisan Guild

PeopleLaw –
e.g., Modria
and Legal
Force
Criminal
Defense /
Public
Defenders
Bespoke

Standardized

Systematized

Legal Publishers
e.g., LegalZoom,
Rocket Lawyer

Productized

Commoditized

X

Susskind ‘s Market Evolution
© William D Henderson, 2014
Organizational
Clients

In-House Vertical
Integration
NewLaw – e.g.
Axiom, Novus

BigLaw

LeanLaw

TechLaw
KM &
Analytics
Vendors

Low Cost
Providers

eDiscovery
Vendors

E.g., kCura,
Recommind,
Lex Machina

e.g.,
Seyfarth

Regional Law Firms

Solo & Small Firms

People
Clients

“Two-Hemispheres”

Y

Multidisciplinary
Teams

Artisan Guild

PeopleLaw –
e.g., Modria
and Legal
Force
Criminal
Defense /
Public
Defenders
Bespoke

Standardized

Systematized

Legal Publishers
e.g., LegalZoom,
Rocket Lawyer

Productized

Commoditized

X

Susskind ‘s Market Evolution
© William D Henderson, 2014
Variables Determining
Rate of Adoption

Dependent Variable to
Be Explained

Perceived Attributes of Innovation
1. Relative Advantage
2. Compatibility
3. Complexity
4. Trialability
5. Observability
Type of Innovation-Decision
1. Optional 2. Collective 3. Authority

Rate of Adoption
of Innovation

Communication Channels
Increased by more and better mediums
Nature of Social System
E.g, traditional versus modern, isolated
or interconnected to other systems

Efforts of Change Agents
Educational and promotional efforts
Adapted from Everett Rogers,
Diffusion of Innovation Fig 6.1 (2003)
Variables Determining
Rate of Adoption

Dependent Variable to
Be Explained

Perceived Attributes of Innovation
1. Relative Advantage
2. Compatibility
3. Complexity
4. Trialability
5. Observability
Type of Innovation-Decision
1. Optional 2. Collective 3. Authority

Rate of Adoption
of Innovation

Communication Channels
Increased by more and better mediums
Nature of Social System
E.g, traditional versus modern, isolated
or interconnected to other systems

Efforts of Change Agents
Educational and promotional efforts
Adapted from Everett Rogers,
Diffusion of Innovation Fig 6.1 (2003)
Increasing the Speed of Innovation: Lessons Learned
Relative Advantage
Substitutes to make better, faster, or cheaper
Reducing Complexity
Making adoption incremental and natural
Creating Observability
Showcasing others’ successes (cornfields)
Allowing Trialability
Pilots to decrease fear of adoption
Decision-Making
Mandated vs optional vs collective
Communication Channel
Mass media vs interpersonal vs internet
Leaders and Laggards
Across and within organizations
Interconnectedness
The whole is greater than the sum of its parts

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The Rogers Diffusion Curve: Applied to the Legal Industry

  • 1. The Rogers Diffusion Curve: Applied to the Legal Industry William Henderson Indiana University Maurer School of Law Lawyer Metrics LLC
  • 2. “[A]ll models are wrong, but some are useful.” -- George E.P. Box, Statistician
  • 3.
  • 6.
  • 7.
  • 8.
  • 9. Figure 1. Percentage of Farm Operators First Hearing of Hybrid Seed Corn and Percentages First Accepting It, by years Source: Ryan, B., & Gross, N. C. (1943). The diffusion of hybrid seed corn in two Iowa communities. Rural Sociology 8:15-24.
  • 10. Percentage of Total Acreage Planted with Hybrid Seed Source: “Hybrid Corn: An Explanation in the Economics of Technological Change” in Technology, Education, and Productivity (1988).
  • 11. Percentage of Total Acreage Planted with Hybrid Seed Manufacturing Finance Medicine Consulting Law Source: “Hybrid Corn: An Explanation in the Economics of Technological Change” in Technology, Education, and Productivity (1988).
  • 12. Legal Complexity Reality Rise of the Large Firms 1914 Experience and Perception 1984 Corporate Growth © William D Henderson, 2014
  • 13. Legal Complexity Reality Rise of the Large Firms 1914 Higher profits Experience and Perception 1984 2014 Corporate Growth © William D Henderson, 2014
  • 14. Legal Complexity Reality Search for substitutes to deal with cost and quality Rise of the Large Firms 1914 Higher profits Experience and Perception 1984 2014 2044 Corporate Growth © William D Henderson, 2014
  • 15. Two Hemispheres Hemisphere 1: People Clients Hemisphere 2: Organizational Clients
  • 16. Organizational Clients BigLaw Regional Law Firms Solo & Small Firms People Clients “Two-Hemispheres” Y Artisan Guild Criminal Defense / Public Defenders Bespoke Standardized Systematized Productized Commoditized X Susskind ‘s Market Evolution © William D Henderson, 2014
  • 17. Organizational Clients BigLaw Regional Law Firms Solo & Small Firms People Clients “Two-Hemispheres” Y Artisan Guild Criminal Defense / Public Defenders Bespoke Standardized Systematized Productized Commoditized X Susskind ‘s Market Evolution © William D Henderson, 2014
  • 18. Organizational Clients Low Cost Providers BigLaw Regional Law Firms Solo & Small Firms People Clients “Two-Hemispheres” Y Multidisciplinary Teams Artisan Guild Criminal Defense / Public Defenders Bespoke Standardized Systematized Productized Commoditized X Susskind ‘s Market Evolution © William D Henderson, 2014
  • 19. Organizational Clients Low Cost Providers BigLaw Regional Law Firms Solo & Small Firms People Clients “Two-Hemispheres” Y Multidisciplinary Teams Artisan Guild PeopleLaw – e.g., Modria and Legal Force Criminal Defense / Public Defenders Bespoke Standardized Systematized Legal Publishers e.g., LegalZoom, Rocket Lawyer Productized Commoditized X Susskind ‘s Market Evolution © William D Henderson, 2014
  • 20. Organizational Clients Low Cost Providers eDiscovery Vendors BigLaw Regional Law Firms Solo & Small Firms People Clients “Two-Hemispheres” Y Multidisciplinary Teams Artisan Guild PeopleLaw – e.g., Modria and Legal Force Criminal Defense / Public Defenders Bespoke Standardized Systematized Legal Publishers e.g., LegalZoom, Rocket Lawyer Productized Commoditized X Susskind ‘s Market Evolution © William D Henderson, 2014
  • 21. Organizational Clients In-House Vertical Integration NewLaw – e.g. Axiom, Novus BigLaw Low Cost Providers eDiscovery Vendors LeanLaw e.g., Seyfarth Regional Law Firms Solo & Small Firms People Clients “Two-Hemispheres” Y Multidisciplinary Teams Artisan Guild PeopleLaw – e.g., Modria and Legal Force Criminal Defense / Public Defenders Bespoke Standardized Systematized Legal Publishers e.g., LegalZoom, Rocket Lawyer Productized Commoditized X Susskind ‘s Market Evolution © William D Henderson, 2014
  • 22. Organizational Clients In-House Vertical Integration NewLaw – e.g. Axiom, Novus BigLaw LeanLaw TechLaw KM & Analytics Vendors Low Cost Providers eDiscovery Vendors E.g., kCura, Recommind, Lex Machina e.g., Seyfarth Regional Law Firms Solo & Small Firms People Clients “Two-Hemispheres” Y Multidisciplinary Teams Artisan Guild PeopleLaw – e.g., Modria and Legal Force Criminal Defense / Public Defenders Bespoke Standardized Systematized Legal Publishers e.g., LegalZoom, Rocket Lawyer Productized Commoditized X Susskind ‘s Market Evolution © William D Henderson, 2014
  • 23. Variables Determining Rate of Adoption Dependent Variable to Be Explained Perceived Attributes of Innovation 1. Relative Advantage 2. Compatibility 3. Complexity 4. Trialability 5. Observability Type of Innovation-Decision 1. Optional 2. Collective 3. Authority Rate of Adoption of Innovation Communication Channels Increased by more and better mediums Nature of Social System E.g, traditional versus modern, isolated or interconnected to other systems Efforts of Change Agents Educational and promotional efforts Adapted from Everett Rogers, Diffusion of Innovation Fig 6.1 (2003)
  • 24. Variables Determining Rate of Adoption Dependent Variable to Be Explained Perceived Attributes of Innovation 1. Relative Advantage 2. Compatibility 3. Complexity 4. Trialability 5. Observability Type of Innovation-Decision 1. Optional 2. Collective 3. Authority Rate of Adoption of Innovation Communication Channels Increased by more and better mediums Nature of Social System E.g, traditional versus modern, isolated or interconnected to other systems Efforts of Change Agents Educational and promotional efforts Adapted from Everett Rogers, Diffusion of Innovation Fig 6.1 (2003)
  • 25. Increasing the Speed of Innovation: Lessons Learned Relative Advantage Substitutes to make better, faster, or cheaper Reducing Complexity Making adoption incremental and natural Creating Observability Showcasing others’ successes (cornfields) Allowing Trialability Pilots to decrease fear of adoption Decision-Making Mandated vs optional vs collective Communication Channel Mass media vs interpersonal vs internet Leaders and Laggards Across and within organizations Interconnectedness The whole is greater than the sum of its parts