The “Private-Equity Playbook” for Legal Tech
What PE firms typically do once they buy into a legal tech software vendor, why they do it, and where customers can get burned.
Robert Sutton and Huggy Rao, in their upcoming work entitled "The Friction Project," identify a phenomenon they call "addition sickness" in organizations.1
Addition sickness refers to the tendency of organizations to keep adding more tasks, processes, or structures without considering the value or necessity of these additions. This behaviour persists even though it wastes resources, burdens employees, slows down work, and drives away customers.
Here's a working hypothesis on the downside of the habit of continuing to add software solutions to your operations.
The more systems you use:
What are we missing in this hypothesis?
2. Toggle Tax
What PE firms typically do once they buy into a legal tech software vendor, why they do it, and where customers can get burned.
Last week, I commented on a LinkedIn post that discussed CLM failures and why they are occurring at such high rates. And the human toll these...