Another Web 2.0 application that might be tried by an internal legal team can be added to the nine already identified (See my post of Feb. 1, 2009: 9 applications; and March 16, 2008: Web 2.0 applications.). The tenth is an online prediction market (See my post of Feb. 16, 2006: collective prediction markets; Sept. 13, 2005: an early version of a shared prediction market; Dec. 20, 2005: online futures market for litigation; March 17, 2006: internal “markets”; Jan. 23, 2008: aggregate the wisdom of crowds; and May 6, 2009: alternative fee negotiations.). As described in the McKinsey Quarterly, No. 2, 2009 at 67, a prediction markets “harnesses the collective power of the community and generates a collectively derived answer.”
Unknowns law departments face could lend themselves to an anonymous investment system where the “winners” receive either recognition or rewards. One example is the likelihood of a major business reorganization that would pressure the legal team to reconfigure (See my post of June 15, 2008; alignment with clients with 16 references.). Another use of a prediction market, more far-fetched, would be an information pool on which law firm will come out best in the department-wide evaluation process. If done after evaluations are submitted, that output of collective intelligence corroborates the more formal process.