Lumen Legal Case Study: CEO's Strategic Change and Outsourcing

This case study examines Lumen Legal's strategic decisions and the impact of organizational changes, focusing on the CEO's choices regarding business expansion and outsourcing legal services. The company, formerly known as Contract Counsel, faced revenue declines and responded by expanding into new markets and outsourcing legal services to India to reduce costs. The case study analyzes the CEO's decisions, evaluating organizational design changes, necessary HRM adjustments, and strategies for implementing changes. It explores the challenges of outsourcing, including cultural and language barriers, and emphasizes the importance of effective communication, training, and employee engagement. The analysis provides recommendations for successful change management, including market research, employee training, and strong communication, ultimately aiming to achieve long-term benefits and competitive advantage.

0Running head: CASE STUDY
Case Study
Name of the Student
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1CASE STUDY
Executive Summary
This is the report based on the case study of Lumen Legal and their new venture. This
company CEO has taken a serious measure to fight the fall of revenues in recent years. The
company has started well-off but faced some challenges in maintaining their business profits.
This makes the CEO to decide to expand their business in some of the other parts of the USA
and providing low price services to sustain the competition there. Outsourcing legal services
from India was the solution selected by the CEO. This report is to examine the effectiveness
of the decision and suggesting necessary strategies for managing the changes. What and how
changes would be implemented in the organisation is the main discussion. A recommendation
part has been attached at the later part of the report along with a conclusion.

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Table of Contents
Introduction....................................................................................................................3
Analysis of Case study...................................................................................................3
What would I have done if I were the CEO, and why?..................................................4
What organisational design changes would I implement?.............................................5
What changes in HRM would be necessary?.................................................................6
How would I bring about the necessary organisational changes?..................................6
Recommendations..........................................................................................................7
Conclusion......................................................................................................................7
References......................................................................................................................9

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Introduction
The prime interest and goal of any organisation are to earn higher revenues and
reputation. In doing so, the organisations might face a number of challenges that they have to
mitigate through skilful management and intelligent strategies. Changes are inevitable in the
organisational setup, and it has to be implemented with effective decision making abilities.
The case of Lumen legal is one such example of successful implementation of organisational
change. This company was known as Contract Council earlier and is owned by David
Galbenski and Mark Adams. It was established in 1993.
This report would analyse the case of Lumen Legal and examine its steps towards change-
making. The reason for choosing this company’s case is that the CEO attempted to take a
high risk while deciding the new strategy for the company profit and that would give an
overview of the impacts of change and its management. In the course of this study, we would
concentrate on how much the changes are relevant for the company and what HRM strategies
could prove effective for the successful implementation of the changes in the selected
company.
Analysis of Case study
Contract Counsel or presently known as Lumen Legal was one of the companies that
have earned a huge profit margin in the minimum time span. The leadership qualities of
David Galbenski helped the company to earn a revenue of $6.5 by the end of its 10th year.
Earlier, the company provided legal help to the clients in the Midwest, and the business was
limited to the USA. The lawyers were all hired from different part of the U.S., and the price
of consultation was almost half than other companies in the market. Later the CEO decided to
go global as the company was facing a drop in its growth. First, Galbenski decided to expand

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his business in the stiff competitive markets like Washington D.C., New York and Boston.
The problem is that the company would not manage to sustain its lower price in this
competitive market if it does not cut short its costs. That is why the CEO thought of
outsourcing the lawyers form relatively cheap markets like India. This would help the
company to cut short its lawyer budgets and offer the same low price services to the newly
gained clients in other parts of the USA. The CEO did his required research on Indian legal
services agencies and decided to hire two offshore companies for his new venture. He
decided to implement the change immediately so that the company need not face any further
loss is business.
There are a number of things that were influenced by this decision of Galbenski. First
the employees of the company were not ready for this huge change, and secondly, the
company now have to give the same quality of work, using the Indian lawyers, in the same
low price. Cultural and language barriers are another problem that needed to be sorted in the
changing process.
What would I have done if I were the CEO, and why?
The decisions made by CEO Galbenski was big and challenging to cope with. But
there is no doubt that this is an effective call for the company to regain its financial
advantages in the USA market. Expansion is needed for the company as it is continuously
losing its market. Cutting the cost is one of the most important strategies of gaining
competitive advantage in a stiff market (Beech & MacIntosh, 2017). The only problem with
the decision is that it has been taken fast, and the CEO is expecting the things to happen
rapidly. More time would have been given in implementing the change, or it could be done
through some stages.

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Hiring lawyers form overseas could be a risky decision as it would concern the quality
of work. Therefore, the decision-maker needs to be more patient with the process of selecting
the right partner in this venture. The quality assurance of the service is inevitable in getting a
loyal customer base for an organisation. Another of the positive aspect of choosing the
lawyers from India is that the low cost and ability to provide service 24-7. One must not miss
this context of the offshore business as the offshore employees of India would cost much low
price for the money, and they would be able to provide 24-7 service to the clients for the time
difference. Therefore, the decision taken by the CEO of Lumen Legal is quite effective if the
changes could be implemented in an efficient and patient way.
What organisational design changes would I implement?
Selecting target Clients
The first thing that should be taken into consideration is the nature and types of
customers for the new markets. Entering the market is a challenging decision, and it is risky
as well. Therefore, the organisation first need to assess the demand of the customers they are
targeting (Tidd, & Bessant, 2018). As the company is trying to expand its business in the
competitive markets, it has to clearly segment the clients and decide its position in the
market. This would help the CEO to decide what steps should be taken and to what extent.
Advertising
More importance should be given in the advertising and promotion when a company
wants to change its perceptions, launching a new service (Fernandez & Rainey, 2017). The
decision of changing the name of the company seemed quite reasonable, but it would only
give outcomes if it is promoted effectively to the clients. The company has a certain