Modern Law Magazine Issue 18

The Business of Law

June 2015 | Issue 18 | ISSN 2050-5744 David Jabbari talks news: The Partner and Managing Director of Consumer Law at Parabis Law LLP considers the impact of the General Election, and explains why the legal market is maturing.

Yorkshire Focus: Charlotte Parkinson, Modern Law spoke to the President of the Leeds Law Society, about how the society remains relevant to its members and their role as part of the wider legal sector.

“When I started working for healthcare organisations in 2003 there was nowhere near as much financial pressure on the NHS” Andrew Davidson Modern Law Magazine | June 2015 | Issue 18

David Grossman “There are going to be many ways in which those two models of ‘online’ and ‘real world’ are moulded into one, for the sake of delivering even better customer service”

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03

Welcome T

he growth and development of the legal market is usually an underlying theme for each edition of Modern Law, but particularly in this issue. With the General Election just behind us, many of our contributors have focussed on whether or not the outcome will have any effect (for the better or worse) on the market. As usual, there is divided opinion on this and it remains to be seen what impact a new Government will have on the sector. The outcome of the Election is touched on by our news writer for this issue, David Jabbari, the Managing Director of Consumer Law at Parabis, who asks how the outcome might influence consumer legal services, and explains why the legal market is ‘maturing’, from page 7.

Our cover-star for this issue, David Grossman, CEO of the Simplify Group, spoke to me about the growth and development of their own, relatively newly formed business, through acquisition (most recently with the acquisition of online legal services platform, Evident Legal), and why technology continues to fundamentally alter the sector (from page 13-15). I am also delighted to introduce a new ongoing ‘Regional Focus’ feature, which we have begun this issue by interviewing Leeds Law Society President, Philip Jordan (page 53-54). We will be running more of these

features throughout the year so please get in touch if you’d like to be involved.

As ever, the Modern Law events portfolio continues to grow and the nominations for the third annual Eclipse Proclaim Modern Law Awards are now open! Nominations will close on Friday 11th September so I urge you to have a look at the website http://www.modernlawawards.co.uk/ for more details on how to enter. The ceremony itself will take place on 19th November 2015 at the beautiful Hurlingham Club in London.

I am also delighted to announce that Modern Law has partnered with the Conveyancing Association to launch the brand new Modern Law Conveyancing Conference, which will take place on 3rd December 2015 in London. Further details will be coming soon so please keep an eye out!

If you have any feedback or comments on this issue, or ideas for a future edition of Modern Law, please get in touch with me on 01765 600909, or e-mail me via charlotte. parkinson@charltongrant.co.uk

Charlotte

Charlotte Parkinson, Group Editor, Modern Law Magazine.

DATES FOR YOUR DIARY Eclipse Proclaim Modern Law Awards - 19th November 2015 Modern Law Conveyancing Conference - 3rd December 2015 Modern Law Magazine

Issue 18 – June 2015 | ISSN 2050-5744

Project Director Kate McKittrick

Group Editor Charlotte Parkinson

Business Development Manager Martin Smith

Events Director Julia Todd

Production/Editorial Assistant Charlotte Lamb

Project Manager Ben Longbottom

Modern Law Magazine is published

by Charlton Grant Ltd ©2015.

Contact t: 01765 600909 or e: info@modernlawmagazine.com Modern Law Events: www.modernlawevents.co.uk Modern Law Awards: www.modernlawawards.co.uk All material is copyrighted both written and illustrated. Reproduction in part or whole is strictly forbidden without the written permission of the publisher. All images and information is collated from extensive research and along with advertisements is published in good faith. Although the author and publisher have made every effort to ensure that the information in this publication was correct at press time, the author and publisher do not assume and hereby disclaim any liability to any party for any loss, damage, or disruption caused by errors or omissions, whether such errors or omissions result from negligence, accident, or any other cause.

ML // June 2015

04

CONTENTS 03-08 Intro & THE News 07 David Jabbari talks news

The Partner and Managing Director of Consumer Law at Parabis Law LLP outlines key issues affecting the legal market, considers the impact of the General Election, and explains why the legal market is maturing.

11-20 The INTERVIEWS 13 Interview with...David Grossman

Charlotte Parkinson, Modern Law spoke to the CEO of the newly formed Simplify Group, about their most recent acquisition of online legal services platform, Evident Legal and their strategy for growth and development for the future.

17 Interview with...Andrew Davidson

Charlotte Parkinson, Modern Law spoke to one of the Partners at leading Health and Social Care lawyers, Hempsons about the slow process of integration of care across the NHS, and his hopes for greater recognition for Employment Lawyers under the Healthcare Law banner.

07

21-46 The views 23 Making it easier to do business

Cutting red tape, reducing bureaucracy, or reforming regulation – call it what you will, the SRA’s objective remains the same; it’s about getting regulation right and making it easier to do business, as Paul Philip explains.

25 Mobile at the core

Darren Gower, Eclipse Legal Systems, part of Capita plc

23

25 Q: ‘Looming limitation’ – Might

this affect prospects for obtaining commercial after the event legal expenses insurance (ATE) or the terms on which it’s offered?

Matthew Williams, AmTrust Law

27 Who wants to be a lawyer

Steve Arundale, NatWest/RBS

27 A journey of improvement

Andy Poole, Armstrong Watson

29 Improving cash flow by interim

29

costs payments

Lesley Graves, Citadel Law

29 A partnership built on success

PJ Singh, Fitzalan Partners

31 Solicitor/Own Client Assessments – Ensuring all bases are covered

Editorial Columnists

Owen Poole, LawLords

Andrew Axon Head of Chambers Parklane Plowden

David Simon Chairman Triton Global

Gregory van Dyk Watson Managing Director Isokon Limited

Andrew Edwards Managing Director Dynamic

Derek Fitzpatrick Business Development Manager Clio

Jo Hodges Head of Sales & Marketing Redbrick Solutions

Andy Poole Legal Sector Partner Armstrong Watson

Desmond Hudson Chairman Veyo

Johanne Johnston Director John M Hayes

Charles Christian Editor-in-Chief The Legal IT Insider

Dez Derry CEO mmadigital

John K Dobson CEO smartsearchuk.com

Chris Ronan Chief Executive St John’s Buildings

Erica Willmott Marketing Assistant Conveyancing Data Services

Lesley Graves Managing Director Citadel Law

Darren Gower Marketing Director Eclipse Legal Systems

George Bull Chair of Professional Practices Group Baker Tilly Tax and Accounting Limited

Mark Montgomery Customer Strategy & Marketing Director myhomemove

David Jabbari Managing Director, Consumer Law Parabis

ML // June 2015

Matthew Williams Head AmTrust Law

Michael George Davidson Head of Business Development, Consumer Law Parabis Nicola Smith Director NKS Consulting Noel Inge Managing Director CILEx Law School Owen Poole Director & Head of Commercial Litigation LawLords Richard Burcher Chairman Burcher Jennings Robin Selley In House Lawyer Box Legal Ltd

Steve Arundale Commercial Head of Professional Services & Financial Institutions, Sectors & Specialist Business RBS & NatWest Commercial & Private Banking Sucheet Amin Managing Director Aequitas Legal & Founder of inCase™ Zoe Holland Managing Director Zebra Legal Consulting

05

47-56 The Features

31 A hub of knowledge...

Zoe Holland, Zebra Legal Consulting

35 Lead from the front

Dez Derry, mmadigital

35 A clear advantage

Desmond Hudson, Veyo

37 A barrier to innovation

49 Professional Indemnity Insurance (PII)

51 Probate Software: Training, Leadership and Support

Sucheet Amin, Aequitas Legal & inCase™

37 How to encourage innovation

Richard Burcher, Burcher Jennings

39 The order of the day...

John K Dobson, smartsearchuk.com

Mark Montgomery, myhomemove

41 Mobilegeddon

David Simon, Triton Global

41 Costs budgets – to vary or not to

Johanne Johnston, John M Hayes

42 Cyclists – “A Presumed Liability”

Robin Selley, Box Legal Ltd

Andrew Axon, Parklane Plowden

43 Weighing up the options...

Noel Inge, CILEx Law School

the issue

George Bull, Baker Tilly

45 How to communicate...

Nicola Smith, NKS Consulting

45 Protecting yourself in a fast paced market

Erica Willmott, Conveyancing Data Services

46 Move with the times...

Jasvinder Jhumat, alldayPA Legal

46 An acquired taste...

Phil Hodgkinson, Pure Legal Costs Consultants

Modern Law spoke to two businesses with bases in the Yorkshire region and asked them to give us their take on how they are managing time and costs pressures, as well as innovation within the region.

59 Disruptive or the new normal?

43 Funding innovation: the heart of

As part of Modern Law’s new Regional Focus series, Charlotte Parkinson, Modern Law spoke to the President of the Leeds Law Society, about how the society remains relevant to its members and their role as part of the wider legal sector.

57-62 IT Crowd

42 Content is King: Authentic is Queen

41

55 Regional Focus: Yorkshire

vary?

Gregory van Dyk Watson explains three core factors to bear in mind when implementing probate software, and reveals one area you should never try to save money on.

53 Regional Focus: Yorkshire

39 An open door...

Brian Boehmer explains how you can get ahead for your 2015 renewal.

Our resident IT guru Charles Christian asks whether the Cloud, Dropbox, Social Media, BYOD and SAAS are disruptive or the new normal in the modern legal market.

53

61 A BYOD world...

Derek Fitzpatrick, Clio

61 Invest in training

Darren Gower, Eclipse Legal Systems, part of Capita plc

62 5 minutes with...

Carl Dugdale

62 Unity Law

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David Jabbari Talks News

07

David Jabbari

talks news

The Managing Director of Consumer Law at Parabis Law LLP outlines key issues affecting the legal market, considers the impact of the General Election, and explains why the legal market is maturing.

W

hat a great time to be writing a news piece on the legal market.

It’s not just the influence of the recent election but the growing sense that we are entering a more mature phase of the market postLegal Services Act reforms. My focus in this piece – naturally enough – is the Consumer Law market which has been like the Wild West over the last two years. Our job in reacting to new developments is always to see if they add up to a stable picture of what the consumer law market will look like 10 years from now. I believe that they do.

Let’s start with the election, avoiding any excursion into politics!

Regardless of the result, perhaps the most important thing is that there was a decisive outcome: the constitutional law experts were not required. Markets dislike uncertainty, and those areas of consumer legal services that are most directly pegged to the success of the economy, notably conveyancing, can perhaps breathe a sigh of relief that major economic shocks have been avoided. There are of course many areas of consumer law that have reasonably inelastic demand relative to the state of the economy, such as Probate, and to a lesser extent Divorce. While some argue that general economic growth may be hampered by uncertainty over the timing and result of the in/out referendum on the EU, it seems unlikely that this will have very much impact on the domestic market for legal services. Indeed, something as profound as withdrawal from the EU, and its impact on individuals and companies, is likely to be a gold rush for lawyers when and if it happens!

After this preamble, I will pick up a few key news items that stood out for me over the last few weeks.

Conveyancing Sticking with the election, we should feel confident about predicting sustained growth in the housing market over the next few years, which will ensure that the conveyancing sector stays buoyant for the immediate future. It has been a very good time in the conveyancing market. The annual percentage increases to March 2015 on key indicators speak for themselves: number of house purchase loans (16.4% up), number of remortgage loans (19.3% up), and number of loans to first time buyers (20.4% up). Interestingly, a recent research report by Post Office Money suggests that lawyers are not seeing the same rate of fee increase as estate agents. In the period since 2004, average conveyancing fees have increased by 37% but this compares to an 87% increase in Stamp Duty and a 61% increase in estate agent fees. Given the high levels of shortage of conveyancers in parts of the conveyancing market, the low fee rate increases are a reminder that we must learn the salutary lesson from the PI market about the negative effects of a race to the bottom on price.

‘CMCs do have a role at a certain strata in the consumer law market but this is surely at the very low price end’

ML // June 2015

08

David Jabbari Talks News

New Territory for the Claims Management Companies (CMCs) A number of the large claimant PI CMCs, such as First4Lawyers and NAH, have recently announced a push into consumer law. This will be accompanied by TV and online advertising campaigns similar to the large recent campaign

by Saga Legal Services. The usual strategy of the CMCs has of course been to push for new injury areas or other areas of mass litigation. Is this a sound strategic move on their part or is it simply a knee jerk panic based on the continued pressure on PI margins post-Jackson? The challenge for the CMCs is that they are ultimately panel arrangements that cannot control the quality or consistency of their subscribing law firms. If we compare that to the Saga Legal Services model, which involves a very high degree of control over the delivery of the services, it will be interesting to see who wins out. In the CMCs favour is the ‘distressed purchase’ point so that – in the current market – their brands (if you can call a CMC a brand) do not need to be strong to win work. However, as we see the new legal brands such as Saga getting stronger we will see a migration to these brands on the basis of trust and word of mouth. I am sure that CMCs do have a role at a certain strata in the consumer law market but this is surely at the very low price end. Also most of the conveyancing firms in the market that have CQS and are on enough lender panels to be credible do not have difficulty getting work at the moment.

Why give away fees to an intermediary?

ABS Blues There seems to be increasing murmurings of discontent with the ABS structure. The truth of course is that most ABSs were created to comply with LASPO pure and simple. There is a growing feeling that using an ABS to deal with LASPO is a bit like renting a JCB to dig a flowerbed. What we are likely to see is perhaps a rowing back to non-ABS, less bureaucratic, LASPO-compliant models, such as LEI-linked or FNOL-based models. The other problem for ABSs is that even if a brand or corporate wishes to launch a consumer legal services offering there is no compelling reason at the moment to do that by an ABS structure rather than a JV. It is interesting how the darling of the Legal Services reforms has so soon lost its lustre. The SRA has recognised the need to make the ABS structures more attractive and less bureaucratic in its recent consultation ‘SRA Regulatory Reform Programme Improving Regulation: Proportionate and Targeted measures’. The key point is to see that an ABS is no more than a structure, not a panacea. Like anything, you need to start with the business plan and work through to the structure, not the other way round.

Quindell I hesitate to comment on a deal that has not yet been done, having done a few big law firm deals myself! Many commentators, analysts and brokers have been at a loss to understand the true drivers behind this deal and the valuation placed on Quindell. I do share that concern but that is probably more my ignorance than a defect in the deal. Perhaps the most interesting question for me is whether there is a recognition here that B2B2C is the only way to conquer the consumer law market for an independent legal brand? A spokesperson from Slater & Gordon has said that Quindell will stay as a separate brand.

That does not surprise me because I do not see how a B2C and B2B2C strategy can be pursued under a single brand. The

ML // June 2015

‘As consumer law grows, and is linked ever more closely to aggressive marketing strategies, it is going to be vital for successful providers to ensure that the right quality of legal advice informs both the marketing and execution of legal services’ real question is: what is the synergy between these businesses?

I suspect that it is a hand off of specialist work to the Slaters law firm from the volume side of the operation (Quindell). The challenge here will be to remember which market you are serving because law firms have never done very well at running complex and volume models alongside each other.

Commoditised Advice – A Warning There has been an interesting recent Court of Appeal case that sounds some warning bells on commoditised advice: Proctor v Raleys Solicitors (2015) EWCA Civ 400. In a case of coal miners claims alleging under settlement against their former solicitors, the Court of Appeal upheld a first instance decision that a failure to give an oral explanation to a client was negligent. The Solicitors were not simply entitled to rely on standard letters.

The Court of Appeal agreed with the conclusions of the Judge at first instance and of his citing of Carradine Properties v CJ Freeman Co (1999) Lloyds Rep PN 48, in which Donaldson LJ stated: “an inexperienced client will need and be entitled to expect the solicitor to take a much broader view of the scope of his retainer and of his duties than will be the case with an experienced client”. As consumer law grows, and is linked ever more closely to aggressive marketing strategies, it is going to be vital for successful providers to ensure that the right quality of legal advice informs both the marketing and execution of legal services. New entrants to the legal market will need to keep firmly in mind that the client’s best interests must dictate both the choice of legal product recommended to them and the options presented to them during the course of the delivery of that product. By its nature, commoditisation of volume consumer law processes weakens this principle. This is a big issue for any legal providers who rely on the generation and qualification of leads by third party sales organisations.

MOJ, Gove Etc Lastly, and perhaps most negatively for an already battered claimant PI sector, the election did not contain great news in the appointment of Michael Gove as the new Justice Secretary. Gove is a radical and unafraid of ruffling feathers. He may choose to direct his attention to Human Rights before going back to the PI market. My own bet is that we will not see the same radical pace of change in the claimant world as before but that does not mean further radical measures will not be forthcoming. My bet is on a focus by the MOJ on Noise Induced Hearing Loss cases and greater use of IT and self-service to allow claimants to do most of the work on small claims themselves.

David Jabbari is a Partner and Managing Director of Consumer Law at Parabis Law LLP.

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The Interviews

11-20

The Interviews

11

Interview with... David Grossman

13

Interview with...

David Grossman Charlotte Parkinson, Modern Law spoke to the CEO of the newly formed Simplify Group, about their most recent acquisition of online legal services platform, Evident Legal and their strategy for growth and development for the future.

Q A

Palamon Capital Partners acquired a controlling stake in the Simplify Group in 2014. How does the Simplify Group and Palamon partnership now work in-practice?

Palamon are our majority investors and they provide us with guidance, support and funding for growth.

They don’t interfere with the day-to-day running of the business which is down to me and my team. Palamon are a pan-European Growth Fund and have around £1bn of investments. They tend to focus on longer-term growth where they can be part of a transformation in an industry, rather than a quick ‘in and out’ investment, as some others do. In 2010, they identified the legal market in the UK as an area where they thought there was a fantastic opportunity for transformation and growth. That is why they invested in QualitySolicitors in 2011, and the Simplify Group in 2014.

Q A

Your background is as a commercial and technology lawyer and you have also held senior leadership roles at BT and AOL, why did you decide to take the role as CEO of Simplify?

The stars aligned almost perfectly for me. I have a legal practice background and I have run several businesses, but all my previous roles have either been focussed on technology, or focussed on running businesses in sectors that are being transformed by technology. The Simplify Group is working within the legal sector, which is being fundamentally transformed by technology. In that sense, it is similar to what I have done before and my role now represents every piece of my career coming back together. Becoming CEO of the Simplify Group represented a fantastic opportunity and one that I couldn’t resist.

Q A

Why was Evident Legal the right business to acquire and how long do you expect the integration process to take?

Technology is going to drive massive change in this industry and I want the Simplify Group to be at the forefront of that change. When the group came together in September, one of the things we decided on

‘It is important to remember that online doesn’t have to be an alternative, and different clients will mix and match’ ML // June 2015

14

Interview with... David Grossman

‘If we focus on the customer, the other elements of business, including making profits, will flow’ were the key elements of our strategy; to deliver our plan, vision and mission. Evident brings two things to us as a group; firstly, it is an exciting and growing digital business in its own right. In addition to that, Evident brings technical capability, which we will be able to use elsewhere in the group. This will allow us to grow and drive our online presence as well as our wider plans and strategies. The Evident business will continue as it is under our ownership and although the integration of Evident technology into the wider group will take a little longer, the way in which the platform is built means integration should be a simple process. Within a few months, I would expect us to be using Evident technology in other areas of the Group.

Q A

What made the Evident model stand out and why do you think it has proved so popular?

Evident is a young business and it is growing fast, which made it stand out. The business model will evolve over time as it has happened in other industries where there has been an online disruption. The thing that I don’t think will change however is customers’ (consumers and businesses) desire to engage with legal services online. In almost every other industry you can think of, that has happened and I see no reason why that would not happen in legal services. The Evident solution is already used by several Top 50 law firms for their own in-house document automation and this demonstrates the strength and the quality of the technology. I do not, however, believe that it should be a case of either using a law firm or accessing legal services online. There are going to be many ways in which those two models of ‘online’ and ‘real world’ are moulded into one, for the sake of delivering even better customer service. By way of example, Evident has been part of our Group for two weeks1 now and already during that time, we have made several referrals for work to QualitySolicitors firms, from Evident. This essentially means that people who come onto the website looking for advice or help, realise they need some support from a legal professional, and we then refer them on to a specialist at one of our other businesses.

Q A

What other types of business would Simplify look to acquire and why?

Our mission is to change legal services for good and our vision supports that. We also have a clear strategy and plan and our business is made up of three core capabilities, which we have and will build on.

These are lead generation, lead conversion and service delivery. Lead generation businesses that introduce us to

ML // June 2015

David Grossman CEO Simplify Group David joined the newly created Simplify Group as CEO in September 2014, following the investment by Palamon Capital Partners in legal services businesses MoveWithUs, Chorus Law and DC Law. These were subsequently joined with Palamon’s existing investment in QualitySolicitors to form the Simplify Group. David started his career as a commercial and technology lawyer at London firm Berwin Leighton, after which he spent 6 years at AOL Europe in a range of business development and strategy roles. David joined the Simplify Group from BT, where he held a number of executive positions over the past 8 years, including CEO BT Directories and most recently, CEO BT Expedite, leading BT’s specialist retail technology business.

Interview with... David Grossman

people who need the legal services are high on the agenda.

Lead conversion is the process of trying to convert those leads into allowing us to do the work for them and instruct us. Service delivery is about getting the work done and the way it is delivered. We are looking to acquire other businesses and our acquisition strategy centres around looking for businesses that have strengths in one or more of those three categories. Evident as an example does some of all those things, as well as providing us with a technology solution.

Q A

Is there a risk that clients may experience a lower standard of service with an increasing amount of transactions being undertaken online?

No, I don’t think so at all. I think the opposite is true.

Clients of all types will see an improvement in service delivery. It is important to remember that online doesn’t have to be an alternative, and different clients will mix and match. As an example, a number of customers who engaged with the Simplify the Law website ended up eventually speaking to QualitySolicitors lawyers. As consumers generally, we are now beyond the point where online ‘dumbs things down’. Using Amazon as an example, many people buy things from Amazon precisely because we believe the service we get is better. I am not for a minute suggesting that purchasing legal services is comparable to buying a book on Amazon but some of the dynamics about providing speed, transparency and quality with the use of technology still applies. There are two things that will drive the transformation of the legal sector. Firstly, a relentless focus on the client, which all businesses say they do, but the legal sector is not actually known for doing.

Secondly, technology. The combination of those two factors is immensely powerful.

Q A

The Simplify mission statement is to create “the UK’s most successful large-scale legal services organisation with customers at its heart”. What are the group’s current plans for strategic development?

It is simple. To drive our three capabilities: lead generation, lead conversion and service delivery.

We plan to deliver these through both existing businesses within the Group and acquired businesses. The Simplify Group as it exists now is only relatively recently brought together, which means there is a huge opportunity in making the businesses work together.

Q A

15

The Simplify Group The Simplify Group is a legal services group comprising MoveWithUs, DC Law, Chorus Law and QualitySolicitors. MoveWithUs is one of the UK’s largest panel management conveyancing companies.

It has a network of over 1,200 independent estate agents across the country and it panel manages over 50,000 conveyancing instructions each year. It is also a significant property services business working with new homes developers, lenders and estate administrators.

Chorus Law is the UK’s largest specialist probate provider, which delivers end-to-end probate and estate administration services. DC Law is a top 20 by volume conveyancing provider. QualitySolicitors is the UK’s leading branded network of law firms, present in around 200 locations across the country.

‘There are going to be many ways in which those two models of ‘online’ and ‘real world’ are moulded into one, for the sake of delivering even better customer service’

Q A

What’s next for the Simplify Group?

We have a very clear strategy and plan. We now need to work incredibly hard to execute it. If we focus on the customer, the other elements of business, including making profits, will flow.

1. At time of interview

Where does the group plan to place its investment (internal and external) in the coming years?

We want to be exceptional at what we already do and the particular areas that we specialise in, right the way through from probate, property and conveyancing, to commercial services. We want to be brilliant at the areas we already specialise in but if there are new areas to be talked about, then we would consider those as well.

ML // June 2015

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Interview with... Andrew Davidson

17

Interview with...

Andrew Davidson Charlotte Parkinson, Modern Law spoke to one of the Partners at leading Health and Social Care lawyers, Hempsons about the slow process of integration of care across the NHS, and his hopes for greater recognition for Employment Lawyers under the Healthcare Law banner.

Q A

How will the outcome of the General Election affect Healthcare Law?

In my opinion the outcome of the General Election will not make a huge difference to the substantive aspects of healthcare Law. When you look beneath the party positions, there is broad agreement about what needs to happen. For example there is agreement on moving towards a more integrated provision of care, in terms of bringing down the divide between health and social care. All are looking at the way the overall provision of care can be improved, which involves organisations working together. The financial challenges are also there and the new Government will have to deal with these issues. The new Government will not make a massive difference to what we do because the structures are unlikely to change again. Areas such as clinical negligence claims, as an example, the NHS Litigation Authority oversee such claims and the changes will not be driven by the result of the General Election but by the need to keep costs down and trying to reduce the burden upon each individual NHS organisation. The Five Year Forward View, put together by NHS England Chief Executive, Simon Stevens, received cross-party support. The report looks at different ways in which Primary, Secondary Care and Community Care can be integrated and brought together. Clinical Commissioning Groups (CCG’s) are also here to stay and I highly doubt there will be another top-down reorganisation. One of the key things we had to support clients with after the last General Election was the challenges presented by the reorganisations.

This presented different opportunities to work with new people, organisationsand clients. As an example of this we are now working closer with GPs, GP federations, CCGs and so on.

Q A

What challenges does the new NHS commissioning structure bring for leaders of new commissioning bodies?

‘There will be an increased impetus to obtain better levels of integrated care because, ultimately, it is in the patients’ interest’

There are three elements to this. Firstly, the speed at which people with limited commissioning experience were being required to do that job

ML // June 2015

18

Interview with... Andrew Davidson

‘When I started working for healthcare organisations in 2003 there was nowhere near as much financial pressure on the NHS’ was a challenge. The CCG’s have support from the Commissioning Support Units (CSUs) but it has required the development of new skills over time. The second challenge has been around working more closely with other people. CCG’s have to work closely with providers and providers have to work closely with CCG’s, and although that used to happen with Primary Care Trusts (PCTS), people who are used to working more independently, such as GP’s are now having to work more closely and in a more integrated way with their providers.

Thirdly, working with new types of providers has been a challenge. CCG’s can choose companies from outside the NHS which means that they will be working with companies such as Virgin Health or Care UK and that is a new development as they are often culturally very different.

Q A

In your view, how should the Government be approaching the NHS and Healthcare Law as a wider issue?

There are some things that have to be tackled, such as integration, which people have talked about for a long time across the NHS. For a long time there have been discussions about integration and how important it was, but it has been slow in implementation. Other sectors, particularly local government, have been faster at integrating. There have been good reasons for the delay but there will be an increased impetus to obtain better levels of integrated care because ultimately, it is in the patients’ interest. Issues such as “bedblocking”, which has been in the news recently, are a good example of where better integration of Social and Healthcare would be beneficial and the Government have to sort that. In terms of productivity and cuts generally, the NHS is already quite lean. There are some costs savings that can be made and the productivity gains that need to happen over the next few years are starting to take shape. A lot of back office functions are generally run by individual Trusts, and this means that each Trust generally will have their own functions such as HR, Payroll teams, IT support and systems, and that is also likely to change. Currently, around 96% of Local Authorities have some degree of shared services arrangements in place, and the figure for the NHS is currently nowhere near this. There are indications that this is happening, such as the devolution in Manchester, which has become known as ‘DevoManc’.

This was announced a short while ago by George Osborne, and the plans will involve the NHS, local authorities and others getting together and using a devolved budget, meaning local politicians will have a much greater say on how the budget is spent. What will happen in Manchester is very much an indication of the direction of travel; there will be much more local autonomy.

ML // June 2015

Q A

How has Healthcare Law changed since you started your career as a lawyer?

I remember a time when budgets were not a significant issue. When I started working for healthcare organisations in 2003 there was nowhere near as much financial pressure on the NHS. The sector used to adopt a more siloed approach but there is now a lot more willingness to look at collaboration between organisations. The other big change was the removal of Strategic Health Authorities (SHAs) and PCTs, which has made a big difference because the SHAs used to have a lot of regional control and authority and a significant say in NHS decision making whereas now there is more autonomy for individual Trusts. My personal view is that this is a good thing, because as an organisation, the closer you can get to the patient, the better.

Q A

What are the biggest pressures currently placed on the healthcare section of the legal market and why?

The obvious pressure is fees. We know that the NHS has very little money, so in terms of the legal provision, we are finding that people are using lawyers less and less as a general rule. We have noticed that the volume of work in some areas has decreased, which corresponds with people not always choosing to use a lawyer. On top of that (not unreasonably), the NHS are also expecting us to charge lower fees, so hourly rates are going down and we are looking at alternative arrangements such as fixed fees which marks a change. The real challenge is to strive to provide the same quality of advice, because a lot of the things we do are very specialised. We all need to provide, at times, a very complex service at reduced rates, which is always a challenge. Finding the right people is also a big challenge because it is a specialised sector and so we always have to look for the best people who can do the best job. Hempsons actively recruit and one of the advantages of a smaller sector is that we come across good people all the time but we do have to work hard to get them to join us.

The firm has the ‘Gold Award’ and the ‘Health and Wellbeing Award’ from Investors in People and part of the reason we are involved with that is because we want to recruit the best.

Q A

How are Hempsons approaching the changes within the sector, for clients?

We are constantly looking to offer different delivery models. There is such a large focus on fees and, to some extent, there is a limit to what we can do with that even

Interview with... Andrew Davidson

19

Andrew Davidson Andrew works with health, social care clients and third sector clients and supports them with employment law advice. He has particular expertise in handling concerns about doctors (under the MHPS framework), dealing with discrimination issues, Employment Tribunal claims and TUPE. He regularly provides training for clients on a wide range of employment law and HR issues and is a regular speaker at national conferences.

The Legal 500 directory has described Andrew as “…robust, practical and a safe pair of hands” Main areas of expertise • MHPS • Investigations • Discrimination • Whistle blowing • Reorganisations/ redundancies • TUPE Clients he works with • NHS Trusts and Foundation Trusts • Charities • Private sector Professional Memberships • Employment Lawyers Association (ELA)

‘Finding the right people is also a big challenge because it is a specialised sector and so we always have to look for the best people who can do the best job’ if we look at fixed or capped fees. We provide updates electronically to make things easier for clients and we are always looking at ways to streamline our services to give our clients the service they need. It’s not rocket science and it’s not that different to any sector except that our clients have the constant pressure on their income.

Q A

What are your hopes for the future of the Healthcare Law profession?

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One of the things I would like to see is more recognition by the legal press for what we do as there is a lot of great things that go on under the healthcare law banner such as my area of specialism is Employment Law which is not always recognised in its own right. There are some very good employment lawyers working in the healthcare sector. I would hope that with more recognition we could attract even more quality lawyers into working in this specialised sector.

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23

Making it easier to do business Cutting red tape, reducing bureaucracy, or reforming regulation – call it what you will, the SRA’s objective remains the same; it’s about getting regulation right and making it easier to do business, as Paul Philip explains.

A

s simple and straightforward as this sounds, striking the correct balance between business needs and protection for those using legal services is a complex matter. To succeed, we must involve individuals, firms and the public as never before in the development of reforms. Over the past 12 months, we have been looking critically at how we do things. We have made significant inroads in cutting red tape and lifting unnecessary bureaucracy.

Our goal is simply to get our regulatory model right, to be proportionate and to allow legal businesses to grow.

For example, last year we reduced the requirements about the submission of accountants’ reports on client accounts. We have embarked on a journey to cut red tape in education and training. We have abolished the outdated and questionable utility of having to gain 16 hours worth of CPD. In its place comes a new self-assessment system; a real departure from the ‘tick box’ outlook of set hours, placing responsibility for personal development squarely where it should be – on the individual, as part of their commitment to being a professional.

Making inroads We understand many have grasped the opportunity to become ‘early adopters’ of this approach since it was launched in April. That bodes well for its extension across all the profession in November this year. Much has also changed to free up the everyday business of small high street firms and sole practitioners, who are after all, the majority of those we regulate. They advise small businesses up and down the country, and are the backbone of legal advice supporting the economy as we grow out of recession.

We have consulted on the changes and improvements they wanted to see form part of our reform programme.

In response, we have set up a dedicated ethics telephone helpline, a small business section on our website, and a virtual reference group to involve them directly in future proposals for reform. We have also launched a new expert small firms team of people who understand the way small firms work and the pressures they are under.

Facilitating growth But, we are far from done yet. Regulators have to constantly evolve and the SRA is no different. We have introduced changes to our rules to allow truly multi-disciplinary partnerships, such as those between accountants or financial advisers and solicitors. There are already over 400 Alternative Business Structures (ABS). These are law firms, just like any other, but owned and managed in different ways, many by non-lawyers and entrepreneurs. This development will allow the market to grow. However, it’s important that traditional law firms are able to compete in this marketplace and this is why we are now looking at the Separate Business Rule to put traditional firms on the same footing as ABSs in owning and operating one-stop-shops, globally and on the high street, allowing legal business to grow and, in turn, support our economy. Looking further ahead, we are paving the way for a major overhaul of our handbook, slimming down and removing many of the out-of-date requirements on legal businesses.

There is a balance to be struck between freeing up law firms and solicitors to do business and protecting the public. I was asked recently if regulation was more about leadership than compliance with rules and regulations. Of course, it’s about both. But for my money, more than either of these things, it’s about professionalism.

Having the professionalism to do the right thing, putting the client and the Rule of Law first, and having the integrity and independence to uphold what it means to be a solicitor - these are some of the core standards at the heart of everything a solicitor does. They are the foundation of the trust between solicitors and society: a trust relied upon in business, a trust that is fundamental to public confidence in the profession. Later this year, we will be engaging the public, and solicitors, in a discussion about these standards - what can the public expect of solicitors, and what should happen when solicitors fall short of these standards?

We hope to build a shared updated understanding of what upholding public confidence means and what a proportionate response by the SRA should be when solicitors fall from grace. Please do get involved in our work and contribute to the developments in the regulation of the profession. Our consultations are at http://www.sra.org.uk/ sra/consultations.page We have recently embarked on a series of meetings with local Law Societies up and down the country. I would love to meet you there. It’s important to contribute to the development of legal regulation to ensure we get it right. Right for the public, right for practitioners and right for business.

Paul Philip is Chief Executive at the Solicitors Regulation Authority (SRA).

ML // June 2015

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15/05/2015 11:01:04

The Views

Mobile at the core...

Recent research published by digital marketing company, Search Star, found that 48 of the top 100 UK firms have failed to develop mobile-friendly websites to Google’s satisfaction, meaning they will fall down search engines rankings following an algorithm change. Why are so many law firms failing to recognise the importance of optimised websites as part of their marketing strategies?

I

have a horrible feeling that this myopia comes down to the old unshakeable belief in some legal services organisations - that a website is merely a brochure. So why bother investing much in it?

For us at Eclipse, and I know for many of my legal services clients, being visible on the web is vital. The very first place a potential customer will look for your services is increasingly becoming Google. That’s where the research starts, and that’s the point at which you can capture them. If your website is sufficiently compelling, understandable and confidence-inspiring to move that potential customer to ‘engage’ with you, then fantastic - that’s business development in action.

An optimised website is an absolute must-have. I know that, personally, if I access a service provider’s site on my phone and it doesn’t look optimised to that device - I will leave pretty sharpish. Not through web snobbery or an inflated sense of marketing know-how but simply because a site not optimised to the appropriate device is a pain to use, navigate, and absorb yourself into. If of course, Google even lists it in the first place.

The key for your website is that it should embody your brand and business values. It should tell your potential customer about you, not just through words on a page, but by how good the client’s experience with your website is.

Does it load quickly?

Does it look and behave how I expect it to? Like it ‘belongs’ on my phone?

Can I get to the information I want quickly - with no awkward scrolling or multiple screen-presses/taps/ gestures?

And - vitally - can I make contact with your firm quickly, easily, and do you tell me what I should expect to happen next?

An optimised website should be an absolutely core part of your overall customer contact and marketing strategies.

Darren Gower, Marketing Director, Eclipse Legal Systems, part of Capita plc.

25

Q: ‘Looming limitation’ – Might this affect prospects for obtaining commercial after the event legal expenses insurance (ATE) or the terms on which it’s offered?

A: Yes. Try to avoid ‘last minute’ applications.

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ispute resolution practitioners are acutely aware of limitation issues and key dates are likely to be the first item flagged on a file. These issues are also significant for ATE insurers.

Litigators might want to have the following in mind at the ‘flag up’ stage.

1. Where limitation is not an issue, an insurer can assess an application in ‘the usual way’, focusing on claim merits and ‘commercials’. The cost of cover will be calculated accordingly.

2. If limitation is, or may be an issue, the basis of assessment changes. Instead of focusing solely on the claim ‘A’, a review will necessarily include consideration of the additional risks/changed commercials brought about by the limitation issue(s) ‘B’. In addition to prospects, there are knock on effects for case economics. This may affect the level of cover required and could impact on proportionality.

3. Limitation scenarios and ramifications are wide ranging. Insurers may be faced with the complex points that can often arise from questions such as, • Is the primary period about to expire, making dates for issue and service crucial? If so, are all necessary claims and parties being included? Are some less meritorious claims included as ‘belt and braces’?

What might the costs ramifications of that be?

• Is the relevant date disputed? Will the opponent say limitation expired pre issue?

• Will there be reliance on an extended limitation period? If the date of knowledge is key, how strong is the evidence on that?

• Where loss is continuing will damages be restricted to say 6 years prior to issue? If so could the actual date of issue significantly affect achievable quantum?

4. Insurers often find themselves in the frustrating position of being presented with applications where claim ‘A’ would have attracted a straight forward offer of cover, ‘but for’ the complications of limitation point ‘B’.

Depending on the circumstances, ‘B’ might not prevent cover being offered, but it may be on different terms, ranging from a higher price, to the exclusion of one or more elements, with other possibilities in between.

There are many reasons, why some claims do not get issued until ‘right up against limitation’. They often include the practicalities of how costs will be met. Addressing these points earlier could optimise prospects for obtaining ATE cover/cover on the most advantageous terms.

Matthew Williams, Head of AmTrust Law. If you have any further questions regarding this or would like to discuss further with AmTrust, please visit our LinkedIn Forum: www.linkedin.com/company/amtrust-law

ML // June 2015

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Who wants to be a lawyer?

A

question that I often ask lawyers is, would you encourage your children to enter the profession? The question is met with a varied response.

Some are vehemently against the idea whilst others are clearly strong advocates. Indeed, I recently had the good fortune to meet a lawyer who had three children working in the sector all of whom were progressing their careers nicely.

My question is not without foundation. As the father of a 17 year daughter who has ambitions to become a lawyer I have a keen interest in her prospects. She already has a good appreciation of the fact that success does not come easily and we regularly discuss the grades required to secure a place at a Russell Group University, the need for work experience and the requirement to create a strong CV. Obviously I do not want her investment to be wasted and the question I have to ask myself is do I support her ambition or do I look to set her in a different direction?

I am well aware of the fact that the education system produces too many future lawyers, that training contracts are hard to come by and that many highly qualified people never get beyond Legal Exec. and in some cases receptionist.

However, most lawyers that I meet are good people. They are well educated, motivated, thoughtful and focused on the needs of their clients. Are these the characteristics that would serve my daughter well? Of course they are. I also have the opportunity of meeting many young lawyers who are fulfilling their ambition, yes they are driven and yes they work hard but haven’t these always been the critical components of success.

Undoubtedly my daughter’s future career will be shaped and impacted by the use and development of technology.

But isn’t that the same for every industry and the youth of today? The thing about technology is that it can not deliver the emotional benefits a human being can. It can’t be empathetic, supportive, consultative and friendly and when it comes down to it these are still the qualities many clients look for in their lawyer as well as their intellectual capability.

So on balance, I don’t see the challenges being faced by the legal sector as being significantly different to those presenting themselves in any other industry. The employment prospects for our children are challenging wherever you look and as such their success will be a direct reflection of their capability and application, and I am happy for my daughter to demonstrate those competencies in the legal world if she chooses to do so. For me the legal sector still has much to offer. And before you ask - I would also be supportive were she to choose banking as a career.

27

A journey of improvement Lock up appears difficult to reduce. Is the capital cost of lock up preventing firms from investing in other areas such as process improvement, marketing etc?

L

ock up shouldn’t be difficult to reduce. Firms engage us to help them to reduce lock up and we have some really good success stories. A lot of our suggested improvement points are common sense, but firms tend to lack the discipline to improve matters without external support. Even where law firm managers are attempting to change behaviours to improve lock up, for some reason, fee earners tend to react more positively when a similar message is delivered from an external perspective.

Fee earners also lack the knowledge of the impact of their day-to-day decisions on the total lock up of law firms. Without educating fee earners, it is extremely difficult to change behaviours and take them on a journey of improvement.

Lock up is essentially work performed that the law firm has not been paid for. Not only has the law firm not been paid, but the law firm has had to pay for the staff costs, overheads and sometimes even disbursements in order to perform that unpaid work. That can be a huge cash drain in law firms. That cash drain then impacts on other cash needs of the firm such as the ability to invest in process improvement and marketing. When cash is tight, law firms should invest in process improvement and formal externally provided lock up reviews, but it is often a difficult call to make when that means further investment and sometimes a further short-term dip in cash.

Lock up issues don’t just prevent investment in improving the firm, but also on a whole host of other areas such as partner reward; partners’ capital accounts; succession planning; the need for larger numbers of partners; and building capital value within a practice.

Andy Poole is the Legal Sector Partner at Armstrong Watson, specialising exclusively in advising law firms. The Law Society has exclusively endorsed Armstrong Watson for the provision of accountancy services to law firms throughout the whole of the North of England.

Steve Arundale, Head of Professional Services, NatWest/RBS.

Noel Inge, Managing Director, CILEx Law School.

ML // June 2015

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The Views

Improving cash flow by interim costs payments

I

am in the business of helping law firms make more money. When advising on WIP and disbursement lock up I rarely see applications made for interim costs payments when a party is successful in litigation. My focus is on helping law firms improve cash flow in personal injury work but the same principles can also apply in commercial litigation.

Clear presumption under CPR 44.2(8) The rules in relation to interim costs payments are clear: “Where the court orders a party to pay costs subject to detailed assessment, it will order that party to pay a reasonable sum on account of costs, unless there is good reason not to do so.”

Solicitors should be bold It is incumbent upon a successful party’s solicitor to request an interim costs order from the paying party included in the final order. If a case settles by way of a Part 36 Offer an application to court may be required if not agreed and you should be successful in recovering the costs of your application in addition to an interim costs payment. In any case involving costs budgets a court will have already analysed costs to a degree so you can be far bolder upon settlement, asking for a substantial payment on account of costs to reflect the detail in the budget.

Beware of challenges Where interim costs payments cannot be agreed, consider what challenges are being made. If hourly rates, proportionality and conduct issues are raised, they must be addressed if prevalent within your firm - as unless you do, WIP and disbursements will continue to be written off and profitability affected.

Are costs advance schemes and WIP funding the answer?

The sector’s lack of knowledge has been a catalyst for a secondary lending market offering costs advance schemes and WIP funding. This has led to law firms carrying increased debt. Many solicitors are missing out on costs payments as they do not know the rules or rely upon costs lawyers who do nothing, delay using CPR 44.2(8) or offer a cash advance or WIP funding option.

Whilst this may look tempting, it does not address your firm’s underlying approach to improving litigation skills.

Taking control of your technical performance and fee income is a far more profitable option.

Lesley Graves is a solicitor and Managing Director of personal injury consulting law firm Citadel Law.

29

A partnership built on success

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ommunication is a key element that drives business success.

This is no different for law firms - in fact, research shows that communication is seen as the driver that determines whether or not client expectations are met.

Over the decades, the methods of communication with a client have inevitably changed and so has a collective penchant for speed and accessibility. What is clear is that the level of direct unopposed communication has taken a different course. An increasing number of solicitors are freeing themselves from the shackles of home visits and hour-long appointments in favour of carrying out work through email, telephone and post. The result?

Convenience. The client receives a ‘human touch’ while still being flexible enough to work from home, from work or from abroad.

While technology is imperative to the future of conveyancing, it is also important not to forget the fundamentals that have allowed solicitors to build long lasting relationships with their clients for years to come. The core of any relationship is built on trust and credibility and when it comes to choosing and working with a solicitor, this is no different. With new technological advances on the horizon such as case management systems, quote engines and outsourced teams, the question that we should be asking is, will we lose the fundamental ability to communicate with our clients in order to get ahead in the game?

Buying a house is a life changing decision and the correct advice, support and delivery is essential to ensure everyone in the process is on a level playing field. Of course, both parties may encounter elements that break up that smooth journey into a rocky road, but informing the client as quickly as possible and setting realistic expectations not only saves time but builds this trusting relationship.

At Fitzalan Partners, we are trusted to drive new business for over 80 regulated solicitors and lawyers nationwide, leaving them free to build those long lasting relationships and have complete control over each transaction.

As marketing is undoubtedly playing a key role in a firm being successful, the ability to reach and convert homebuyer and seller enquiries into instructions is always a challenge. The communication process that takes place at this stage has been finely tuned by the London based team at Fitzalan Partners to speak with every potential client and ensure that the process is fully understood before any instruction has been formally taken and allocated to the best suited solicitor on the panel based on the client’s needs and situation. A partnership that starts well for the client and complements the ethos of a solicitors firm is a partnership built on success.

PJ Singh, Head of Business Development, Fitzalan Partners www.fitzalanpartners.co.uk

ML // June 2015

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The Views

31

Solicitor/Own Client A hub of knowledge... effective-a-tool is blogging for marketing a Assessments – Ensuring all How law firm and should more lawyers use blogging as a marketing channel? bases are covered

I

t is a fact of today’s society that people are more likely to complain.

For a solicitor it can commonly lead to a Solicitor/Own Client Assessment under Section 70 of the Solicitors Act 1974.

The occurrence of such assessments is on the increase and furthermore, unless the solicitor has ensured “all bases are covered”, the courts are increasingly likely to allow for such assessments even when invoices are over 12 months old and have been paid. The reason for such leniency is a failure, in some instances, to ensure that the basic requirements are addressed.

It goes without saying that regular costs estimates need to be provided during the conduct of a case especially if there is a noticeable departure from a previous estimate. The courts will not criticise a solicitor for an increased estimate as long as it is notified as early as possible and that it was not, in the main, foreseeable. The main contention that arises however is in relation to the disputing of old interim statute invoices at case conclusion and in this situation there are some solicitors who omit to include within their terms of business, the right to raise interim statute invoices at regular intervals, be that at set monthly periods or natural breaks in the case. The next point of contention is invariably the level of detail in the invoices to allow them to be deemed to be statute invoices. If the court is to be satisfied that an invoice is a statute invoice then it must be complete; for a clearly defined period and not capable of adjustment upwards or downwards. The key is to provide as much information as to the incurred costs as possible including a detailed breakdown of the time along with any disbursements incurred. If this information is provided then the client is going to be hard pushed to argue against the invoices if they are over 12 months old, or even if they are less than this. The final point to ensure is that either the invoice (bill) is signed or that the covering letter sending the same is signed by the solicitor or suitably entitled person, to ensure correct service.

If there is any doubt as to your methods, always instruct a costs lawyer to review your processes and documentation to make sure you are covered.

Owen Poole, Director & Head of Commercial Litigation, LawLords.

C

ast your mind back ten years.

Firms were known to spend hundreds of man-hours and thousands of pounds making sure this year’s entry in the ‘X&Y Directory’ was as comprehensive and favourable as possible. As a personal injury practitioner that often perplexed me, as I could not see past the fact that the man on the street does not have access to and is not likely to search through such publications prior to choosing a personal injury solicitor.

Blogging is now very much part of many firms marketing. Some Firms tie themselves up in hours of drafting, approval committees and numerous checks

by PR agencies before they publish their latest offering online. Why is a blog any different to a directory submission?

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Search engines love them. Identifying and targeting key words in a blog can improve search rankings and ergo your site traffic.

They show industry knowledge. Clients may well be impressed that you are involved with current debate on an issue and that creating custom content is an invitation to build relationships on a topic.

They enable the demonstration of value of services. What better chance to write and show an understanding about topics that could align with the readers needs?

Well written content can market itself. When drafted correctly, a blog creates a body of content that attracts only those visitors who are interested in the issues you are commenting upon. A well-written post may see readers share it with their friends on social networks.

Generate leads that convert. The targeted content in a blog will enable firms to build relationships with prospective clients before they ever contact a Firm.

Clients these days will often conduct some research on the internet before they ever pick up the phone.

Blogging can also be an opportunity to bring together the thoughts of key-thinkers on a particular topic in your Firm in a way that would not have been likely beforehand. This will help create a hub of knowledge that can lead to the advancement of both the individuals and the Firm.

Zoe Holland, Managing Director, Zebra Legal Consulting.

ML // June 2015

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The Views

35

Lead from the front

A clear advantage

How effective-a-tool is blogging for marketing a law firm and should more lawyers use blogging as a marketing channel?

Who should be responsible for data that is stored using cloud computing systems?

O

nce deemed as ‘the young persons’ sport’, blogging has evolved into a ubiquitous medium that law firms can’t afford to ignore.

The ‘blogosphere’ is bulging at the seams and with just as many writers as there are readers, audiences now expect companies to have a blogging presence. If you choose not to include this marketing channel in your arsenal, you run the risk of having potential clients click elsewhere. As if you needed anymore persuading, here are just three more reasons why firms should be setting up their own blogs: Brand Image Blogging content is great for cementing brand image into the mind of the reader. With social media platforms like Twitter restricting word count to 140 characters; blogging is the perfect way to develop your tone of voice further, allowing you the opportunity (and space) to dig down into the broader topics and questions. If your daily marketing copy is insulated with your brand message, utilising blogs will enable you to echo these idiosyncrasies once again.

It’s about building trust with your audience, if they see you’re technologically leading from the front and they get another chance to acknowledge your key messages in an environment they know well, you are more likely to get that all important enquiry.

SEO Write a good blog and you have the potential of being ‘shared’ throughout a labyrinth of digital communities. This exposure is not only good for customer potential and brand recognition, but it will also lead to your website receiving a good amount of inbound links; which ultimately means higher rankings. As Google’s Panda algorithm continues to grow even chunkier, relevant and refreshing content will become more and more important in maintaining and improving rankings. Make sure you’re competing with your ‘search adversaries’ by taking advantage of any opportunities to bolster shares, in-links or follows. Google will repay you for these.

Lead from the Front You should write because you want to. Blogging is a great way of researching new areas and delving into topics that you may not have immersed yourself in wholly before.

Your peers will acknowledge you as a forward thinker who wants to give something back to the legal community, leading to improved professional credibility and extended networking opportunities.

Dez Derry, CEO, mmadigital.

To find out more, visit www.mmadigital.co.uk

C

loud computing has moved into the mainstream with many legal practices now using the Cloud to store critical data and run a growing number of productivity-related technology applications such as for case management, accounting, and document management. The benefits of cloud based systems are clear and increasingly relevant to law firms.

Cloud computing gives users freedom; they can decide where and when they access practice information, accessing their client information securely from any internet capable device. Cloud based systems are highly intuitive, easy to learn and require no installation or maintenance. Cloud based systems can also be integrated seamlessly into other productivity systems, ultimately creating a virtual environment, connecting all users via the web. It also allows small to medium sized firms to enjoy an array of features that were formerly only accessible to their larger competitors.

However, the primary concern for any law firm thinking about moving to a cloud based system is the security and privacy of client data. Ultimately, responsibility for data that is stored using cloud based systems lies with the service provider. It is essential companies offering cloud based systems remain compliant with formal regulations.

Protective security controls need to be demonstrated such as the ability to store sensitive data under lock and key at remote location. Information in transit needs to be protected using appropriate encryption and disposal of data needs to be carried out with care using approved commercial disposal products to hinder any chance of reconstitution of data.

Care must be exercised when choosing a provider in order to ensure it meets and will continue to meet industry rules, regulations and practice standards.

When it comes to compliance with new regulations, cloud-based platforms eliminate the need for expensive and disruptive upgrades and therefore enjoy a clear advantage over desktop-based systems.

Mastek, the global IT solutions company, which has partnered with the Law Society to create Veyo, has implemented technological solutions for the NHS, Ministry of Defence and the Home Office, ensuring the security of exceptionally sensitive data.

Veyo is a cloud based system that will bring together electronically all the processes, checks and documentation prepared and undertaken by solicitors and licensed conveyancers in the sale and purchase of residential properties.

Desmond Hudson, Chairman of Veyo, the soon to launch online conveyancing portal.

ML // June 2015

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The Views

A barrier to innovation Is regulation stifling innovation in the legal sector, or is the current level of regulation necessary and appropriate?

I

have a strong view on this and the direct answer is “yes”. Quite simply because more often than not, regulation creates a barrier to implementing a change within my legal practice or at the very least, makes it more challenging than it should be.

In a previous publication of Modern Law, I reminded readers that innovation can be a new way of doing something that is already being done. Take a CRM system (client relationship management). To engage properly with existing and prospective clients, a good robust CRM system is essential for law firms to cultivate their crop of clients and cross-sell services; along with releasing important need-to-know information.

The UK is far behind in the development of UK-based CRM systems (and by that I mean businesses and their servers located in the UK) when compared to the US. Businesses in the US have been the leaders in CRM systems for decades and we are well behind in offering comparable products here. A few companies are showing promise but they are no match to the leader, Infusionsoft.

Regulations restrict our ability to use this product, or in fact any product using servers based in the US. Why? The Patriot Act in the US means that a government body can obtain access to any and all information held by a business with servers in that country without permission or even a court order. Quite clearly a wide remit and open to abuse.

Yet a UK based law firm cannot use any product or service where client data is held in the US as that contravenes the SRA Code of Conduct and in particular confidentiality.

I’m not advocating for one minute we do away with the time-honoured, well respected and necessary duty of confidentiality. However it does create a barrier to innovation when a CRM system is only looking to hold some basic contact data. That information will be publically available for most clients, especially corporate clients.

My point is that there are certain regulations that law firms face that stifle innovation and creativity. We are denied access to the available tools out in the world beyond our shores. Regulations whilst necessary can be an absolute block as I’ve illustrated or they can take up time and resources which can be precious, leading to a breakdown in effective planning and implementation.

37

How to encourage innovation…

Is regulation stifling innovation in the legal sector or is the current level of regulation necessary and appropriate?

T

his is a huge question and is a topic upon which reams could be written. So I’m going to confine my comments to my area of expertise, which is pricing of legal work. I have no quarrel with the general idea that regulation is necessary. Some know what to do intuitively whereas others have had to have it spelled out for them. The challenge is in striking a balance between too much and too little.

One of my biggest gripes about the regulatory requirements impacting pricing arise out of the lack of a de minimis approach to the file opening and client engagement process. A lot of pricing innovation that would work for the benefit of both firms and clients could be implemented if the current file opening requirements, money laundering, ‘know your client’ protocols and the like could be dispensed with entirely below a certain figure - maybe £500 plus VAT. There is no proportionality at present, with the result that practitioners can spend as much time on the file opening formalities as the relatively small amount of work that the client has actually instructed them to perform. If these requirements were removed or at least very extensively mitigated, a file opening ‘lite’ regime would help firms to keep the cost of relatively small jobs down to a manageable level, it would afford them the opportunity of conveniently offering clients the choice of either paying later at a higher figure or pay as you leave (like a doctors surgery), with a modest discount.

Firms could charge something proportionate for a quick bit of advice, a straightforward letter-before-action and other such services in a cost-effective way. It is a management truism expounded by everyone from James Caan to Richard Branson that the best way to encourage innovation is to give people the latitude to come up with original solutions. No one would suggest for one minute that this aspect of the profession should be completely unregulated but the profession itself is far better equipped to come up with innovative solutions than the regulators who frankly, need to back off a bit.

Richard Burcher, Chairman, Burcher Jennings.

Sucheet Amin, Managing Director, Aequitas Legal & Founder of inCase™.

ML // June 2015

The Views

39

The order of the day...

An open door...

Is regulation stifling innovation in the legal sector, or is the current level of regulation necessary and appropriate?

Is the ability to qualify into the legal profession via ‘equivalent means’ a positive step for the sector and will it attract more young people to pursue a legal career?

N

ecessity is the mother of invention!

Certainly in recent years there has been a great deal of regulation around Know Your Customer (KYC) and Anti Money Laundering (AML) verification, which has driven the need to innovate to comply with new regulations and reduce due diligence burden on regulated businesses. One aspect of compliance that has seen major changes in the last ten years is AML verification, Sanctions & PEPs screening. In that time there has been a triple wave of innovation and now we wait for the imminent changes coming along with MLD4.

The credit reference agencies were quick to spot the opportunity for a new business line with the early introduction of electronic verification checks in 2004. A few years later as electronic verification became more widely accepted we saw the second generation of developers emerge. Most of these teamed up with credit reference agencies and chose to re-badge and resell their products.

Some of the more established businesses introduced a level of additional functionality to differentiate their service offering.

Major innovation came with third generation developments, which have seen both Individual and Business AML verification being delivered from a single platform. The automating of Sanction, PEP, SIP & RCA screening along with daily monitoring ensures businesses are not exposed to the daily changes in the Sanctions & PEP reference data.

In addition, innovation has automated the Enhanced Due Diligence (EDD) process in over half of alerted cases and delivering biography, adverse media and photographic evidence in real-time enabling businesses to complete their EDD within 1 or 2 minutes. These innovations now save businesses significant time and money and at the same time reduce the inconvenience to new and existing clients.

I would find it difficult to argue against the necessity for these regulatory measures when you see the carnage across much of the Middle East, the lawlessness across much of Africa, in addition to politically and criminally motivated troubles in many other parts of the world.

The regulators are unlikely to dilute the compliance regime, quite the contrary this, it is likely to become more stringent in future so compliance with minimal effort is the absolute order of the day. I think the “Bankers” may have realised by now that AML compliance won’t make them money but it could save them fortune!

W

orthwhile legal careers come in many shapes and sizes but, for some, qualifying as a Solicitor remains a key career aspiration. The majority of Solicitors still qualify through traditional routes, however since 2014 the option to qualify by ‘equivalent means’ has also existed.

This is by no means an easy option, but for those with a broad spread of Paralegal experience, it could open the door to Solicitor status for some who would otherwise remain excluded. Only a handful of people have so far qualified through this route and the profile of those that have is not typical for a Paralegal, so it’s hard to judge how prevalent it might become.

On the plus side, this new route to qualification might put more power into the hands of experienced Paralegals who are keen to take control of their own careers.

Unfortunately, it is all too common for ambitious young Law or GDL graduates to join a firm with the apparent future promise of a training contract, only to find that the firm has a ready stock of reasons to delay granting it – or worse still, the hardworking Paralegal is overlooked and the contract is granted to another external candidate.

Training contract numbers in 2014 were 20% lower than their 2007/8 peak and many of the 3000+ law graduates each year now have to find alternative routes into their planned career.

The structure of ‘New Law’ firms is different, so the value of ‘equivalent means’ qualifications needs to be judged against the value of qualifying as a Solicitor in a firm generally. Effective Conveyancers, whether Licensed Conveyancers, ILEX or others, can earn significantly more than many qualified Solicitors in the same firm, so in our sector, professional competence carries more than one label.

Paralegals with experience should consider all relevant professional qualification routes and judge them on their merits. ‘Equivalent means’ shouldn’t be viewed as a way to attract more young people to pursue a legal career, but as one of a number of routes to professional status that ensure that the most capable and committed people in our firms can stay in the industry and meet their personal career goals.

Mark Montgomery, Customer Strategy and Marketing Director, myhomemove.

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ML // June 2015

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The Views

Mobilegeddon Why are so many law firms failing to recognise the importance of optimised websites as part of their marketing strategies?

T

he legal profession has a reputation for being slower than most when it comes to implementing reform.

This has been exemplified by the slowness of law firms to recognise the importance every business must place on its online profile.

End users increasingly access websites through mobile devices, rather than computers.

In recognition of this, Google implemented a significant change on 21 April 2015 to the way in which its search engine ranks sites. The updated algorithm now favours websites optimised for mobile browsing and penalises those that are not (causing it to be given the ominous moniker ‘Mobilegeddon’).

Previous algorithm changes in 2009 and 2011 have seen businesses hurtle down the rankings, never to recover. This time, Google gave advance warning of its changes and many companies took the opportunity to instruct web developers to make sure they were ready for the changes to ensure business continuity.

The legal profession has however been slow on the uptake on this with recent research published by digital marketing agency, Search Star, suggesting that 48 of the top 100 UK firms have failed to develop mobile-friendly websites. That is despite the fact that Google reported, back in June 2014, that of the two million online searches for legal terms made in the UK every day, over a third are from mobile devices.

Whilst we await the practical fallout from Mobilegeddon, we predict that there is a real risk that if these figures are replicated across smaller law firms, a number will have plummeted down the all-important rankings, missing out on potential clients as a result. After all, isn’t a Google search for a solicitor simply the modern day equivalent of a walk-in, or a telephone call from someone who had scanned the Yellow Pages - on which so many small firms have relied for decades?

Having a basic web presence is not enough anymore: firms need to address how they actually market themselves to an online audience. Whilst an increasing number of firms are embracing social media and using technology to vary their access to clients, it seems that many are missing a trick when it comes to recognising the importance of optimised websites as part of their marketing strategies. Not for the first time, our profession needs to catch up, and fast.

David Simon, Chairman, Triton Global and Mark Rankin, Senior Solicitor, Robin Simon (a Triton Company).

41

Costs Budgets – to vary or not to vary?

T

wo years have now passed since the introduction of the new Costs Management system. A slow burn to start with, but practitioners and the Judiciary appear to have pretty much grasped the new rules.

There is case law aplenty dealing with sanctions of not serving, irregular budget formats and how a court should assess a budget to name a few. The most well-known case must be Mitchell v News Group Newspapers [2013] EWCA Civ 1537. This case was a lesson to all involved in the costs management process and really brought costs management into the forefront of practitioners’ minds.

What now presents an issue is the variation of a costs budget. Budgets can be amended if significant developments warrant it. District Judge Chris Lethem, member of the Civil Procedure Rule Committee and Judicial College trainer on costs, has recently expressed his ‘deep unease’ about the lack of applications to vary costs budgets.

Managing and reviewing costs budgets to determine when a budget requires variation is key. Practitioners must give cost budgets due consideration during the course of proceedings and monitor spend within each phase. When significant developments do arise and the budget no longer resembles the predicted cost of the proceedings, by more than a minimal amount, then variation is required. To ignore the need to vary is likely to result in problems when it comes to assessing the costs at the end. The case of Elvanite Full Circle Ltd v AMEC Earth & Environmental (UK) Ltd [2013] EWCH 163 (TCC) highlights the importance of an early application to vary a budget.

The correct use of contingencies is also key in minimising the need to vary. Ensuring that contingencies are included and are a ‘foreseen’ turn of events is important.

What should be avoided is chucking everything including the kitchen sink in there to cover all and every eventuality. Mr Justice Warby has indicated that he found contingencies problematic confirming that “…people are packing their budgets with contingencies to give them wriggle room… A lot of them are wholly speculative, and it does not seem to me to be a very helpful exercise.”

It is anticipated there is still much to come in the field of costs management, and many cases will still cause the usual headaches to practitioners. A pragmatic and informed approach to costs management, with a little dash of optimism, is the best you can do until more cases test the Judiciary’s approach to varying budgets. Watch this space.

Johanne Johnston, Director, John M Hayes – Costs Lawyers & Costs Draftsmen.

ML // June 2015

42

The Views

Cyclists – “A Presumed Liability”

A

s a cyclist and PI lawyer, I have heard calls growing louder for there to be a “presumed liability” for motorists who are in collision with cyclists and pedestrians. I was out cycling at the weekend and had a very near miss with a passing car. The car driver decided that he wanted to overtake me when I was passing parked vehicles, squeezing through a gap that was not there, causing me to take evasive action before being hit. This was followed by a cry of “f-ing cyclist” from the passenger in the passing car.

So what effect would a “presumed liability” law have for motorists in England? Many cyclists will say that such a law will help make Britain’s roads safer for cyclists and pedestrians by increasing the awareness and caution of motorists.

The system, which incidentally operates in all but five member states of the European Union, would provide for a presumption of liability on a motorist involved in a collision with a more vulnerable road user such as a cyclist or pedestrian, unless the latter can be shown to have been at fault, rather than an injured cyclist or pedestrian having to fight tooth and nail to show on a balance of probability, that a driver was at fault, which is the position in civil cases at present. Such a change would shift the burden of proof on to a motorist, but would not affect criminal proceedings - the motorist would not be presumed to be at fault beyond reasonable doubt. By adopting a downwards “hierarchal structure” which reflected the vulnerability of road users, would this not help to protect those who are more likely to be injured in a collision? Let’s face it, a cyclist will always come off second best in a collision with a lump of metal being driven at 30 mph.

It is argued that such a rule could help to improve road safety for cyclists and pedestrians, by encouraging more careful driving although the concern is that there might be widespread opposition by motorists to such a change. How would this operate alongside motor insurance policies?

Whilst motorists are required to be insured before they drive, cyclists are not, and therein lies one of the problems with the existing burden of proof. Cyclists and pedestrians can currently claim “up the ladder” to motorists but at present they may equally be the party against whom claims are being made. At present, how many cyclists or pedestrians currently have insurance to protect themselves if they find they are the party against whom claims are being made?

Robin Selley is an In House Lawyer for Box Legal Ltd. He has 20 years experience as a PI lawyer on both Claimant and Defendant sides of the fence. Robin is also a keen cyclist and fundraiser for Macmillan Cancer Support.

ML // June 2015

Content is King: Authentic is Queen How effective-a-tool is blogging for marketing a law firm and should more lawyers use blogging as a marketing channel?

B

logging is a hugely powerful tool at the disposal of barristers and solicitors; probably more so for barristers. This is because blogs can make easy reading of technical content. Many in the legal profession are catching on to the power of the blog, and we actively encourage all of our barristers to generate blogs that populate our website.

Blog topics range from case commentaries about significant reported cases, as well as cases which our barristers are personally involved in. They can be on changes to the CPR or even a comment on sector trends and topical issues.

They are the perfect vehicle by which barristers can impart their legal expertise, opinion and personality.

They can be shorter in length too, which helps in the fast-paced world of civil litigation. Formal, lengthier articles still have their place, but a quick blog that’s circulated via social media channels can work wonders at increasing brand presence in the market place. They also demonstrate that we are on the ball and up-to-date with what is happening in our specialist legal sector.

There is a fine balance to be had between delivering meaningful blog content and carpet-bombing the legal market in an attempt to grab the attention of our client base. We work in a hugely sophisticated market where we must work hard to ensure that we engage effectively with our clients at all levels. At Parklane Plowden we prefer to take the ‘less is more’ approach and ensure that we produce qualitative content that showcases our genuine expertise and, of course, that people are interested in reading about!

What differentiates branded content in print and the kind created by a blogger is the relationship. The relationships that we develop with our clients underpins everything that we do and by blogging, our barristers can create content that feels authentic rather than manufactured.

It is this authenticity that leads ‘readers’ to become ‘followers’. If Content is King, Authentic is Queen.

Andrew Axon, Head of Chambers, Parklane Plowden.

The Views

43

Weighing up the options... Funding innovation: Is the ability to qualify into the legal profession via the heart of the issue ‘equivalent means’ a positive step for the sector and will it attract more young people to pursue a legal career?

Q

ualification through equivalent means - that is, acquiring work experience comparable to the training contract- is just one of the SRA’s responses to the LETR (Legal education and Training Review).

How popular and effective this route will be is uncertain. There will be no shortage of LPC graduates who will view equivalent means as a possible way of overcoming the training contract barrier, but their enthusiasm might not be matched by employers.

Welcome though this is, equivalent means has been around for longer than is commonly understood. Chartered Legal Executives have been recognised for some time, by dint of the period of qualifying employment that meets CILEx’s prescribed learning outcomes, as being exempt from the training contract. This exemption is now automatic under recent changes to the SRA’s regulations. By contrast, an exemption application to the SRA based on equivalent means is treated on a case-by-case basis and is discretionary.

While equivalent means provides another route to qualification as a solicitor, there must be some doubt as to whether those who have been unsuccessful in their quest for a training contract are any more likely to acquire the breadth of experience that will count as equivalent. Experience in three seats is still required to achieve exemption, and it is unlikely that most paralegals will be able to achieve that outside the structure of a formal contract.

Perhaps some students may see the existence of the equivalent means as justification for enrolling on the LPC without a training contract. However, those students should consider whether studying the CILEx Graduate Fast-track Diploma is not a better option. The qualification, alongside three years of qualifying employment, produces a specialist lawyer at around a third of the cost of the LPC. Although, as has been said before, it is still possible to use the training contract exemption to become a solicitor in the long run, this goal is becoming increasingly irrelevant since the acquisition by Chartered Legal Executives of practice rights in probate, conveyancing and civil litigation.

So, will equivalent means attract more people to study law?

Possibly it will make a marginal difference. Much more likely is a growing realisation that the CILEx qualification is far more relevant and cost effective for many of those going into ‘high street’ type roles, than the train-in-all-areas LPC. Noel Inge, Managing Director, CILEx Law School.

Is regulation stifling innovation in the legal sector, or is the current level of regulation necessary and appropriate?

I

s excessive regulation stifling innovation within the legal sector?

All the evidence suggests that it is not. If there is a constraint on innovation, I believe that it lies elsewhere. I return to that later, but first let’s look at regulation.

There is ample evidence of high levels of innovation in two areas of the legal profession.

First, established law firms often distinguish themselves by producing brilliant innovations in specific parts of their practice, for particular client types, service lines or sectors. Second, new entrants to the legal market place, who operate within the same regulatory framework as established law firms, bring with them innovative business models, which frequently display a different top-to-bottom approach to the delivery of services.

With some notable exceptions, new entrants tend to be better at whole-business innovation than established firms. If there is a particular challenge for established firms, it is to develop a joined-up approach to innovation across the whole of their practices.

On the face of it, then, regulation does not seem to be preventing new entrants or established law firms from providing innovative services to meet the needs of their clients through new business models.

Readers may point out that the separate business rule, with all its complexities and restrictions, has for too long held back solicitors from delivering other relevant services to their clients. The current reform of that rule should mark an end to these limitations and, as The Law Society has observed, allow solicitors to compete more effectively with accountants.

This brings us to a paradoxical problem for new entrants to the market.

Time and again, organisations ask for our advice on new business models. These models offer a vision of how innovative legal services maybe combined and delivered in ways which should be genuinely ground-breaking.

We have not yet seen many which would fail to obtain regulatory approval. Many, however, fail because the business models are simply too innovative, too untested for potential funders to comfortably invest in them.

Funding innovation is arguably a bigger problem than regulating it.

George Bull, Partner in Professional Services Group, Baker Tilly.

ML // June 2015

The Views

How to communicate…

F

ar too often we see clients bamboozled by legal jargon and complicated agreements which means that in most cases, they don’t ever make that claim because they do not understand the process. Statistics show that huge proportions of PI Claimants are ill advised and being given very poor service. Back in the day (the 1990s – don’t laugh) every law firm, no matter their size, knew that the client was King.

For without those clients what do you have? Empty filing cabinets and negative WIP sheets.

What is abundantly clear to me, as I approach nearly 19 years in the PI industry, is that clients are eager to know just two things. How much will it cost them? And how long will it take? I believe the industry should take a robust approach to this lack of simple, easy to access information for the man on the street, after all, without that man, who are we?

Whilst, as Lawyers, we understand the need for our retainer, the client does not understand the lengthy explanations of the Law Society Conditional Fee Agreement and is simply put off by it. Neither does he understand the need for ATE in the way in which we realise its importance. The client is also alarmed by questions relating to their home insurance and really does not understand the issues surrounding legal expenses insurance.

It is for these reasons that I am a firm believer that free, no obligation initial consultations should be available to all clients from the outset, no matter what the value of their claim. Simple, concise, clear information should always be available so that the client is able to make an informed decision on how to proceed.

Here at NKS Consulting we pride ourselves in giving honest and up front information to the client without any fancy jargon attached. We pride ourselves on giving first class levels of service to the man on the street (as well as our law firm clients) and think that the “industry” should totally “demystify” the law to make it more accessible.

Whilst technology advances and we see more firms utilising social media, clever Apps and online access, we should remember one thing. Pick up the phone. Speak to your client, and speak in a manner in which he understands – this is STILL the best way to communicate effectively with any client – I guarantee it!

45

Protecting yourself in a fast-paced market

T

he rules of the English conveyancing system govern that the seller or purchaser of a house is, by right, able to pull out of the purchase process, without penalty, until legally binding contracts are exchanged.

Known as a “Fall Through”, this can cause people to lose their dream home as well as the costs incurred in the process, resulting in a very expensive and upsetting experience.

The property Fall Through index for March 2014 suggested that over a quarter of home sales failed to complete because of problems on the seller’s side such as receiving a better offer (gazumping), problems with their own chain or the property being withdrawn from sale by the vendor.

The Mortgage Market Review rules requires lenders to conduct stringent checks on mortgage applicants resulting in an overall reduction in the numbers being granted a mortgage. This has led to buyers pulling out of purchases because the MMR checks made after the initial mortgage offer in principle have flagged up problems with their applications.

While buyers outnumber sellers and the market continues to move at a pace, the risk of gazumping still remains; however, as a buyer, there are steps that can be taken to minimise the effects of being gazumped.

The buyer themselves may not wish to complete the purchase if previously unknown problems are uncovered in a survey or by an environmental search - such as the property showing signs of subsidence or underpinning, or the property is in a flood plain, on contaminated land or over a mining area.

A Home Buyer Protect Policy will offer clients peace of mind when purchasing their property so in the event the contract fails to complete for the reasons outlined in either of our policies, they will be able to recover some of their costs.

Erica Willmott, Marketing Assistant, Conveyancing Data Services.

Nicola Smith, Director, NKS Consulting.

ML // June 2015

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Move with the times...

In a sector which is increasingly ‘always on’, why should law firms outsource their telephone answering services and what are the specific benefits of doing so?

I

t’s no myth, working days and weeks are getting longer. Calls for law firms now start at 6.00am when in 2012 they were at 7.00am. Calls now end at midnight when in 2012 it was 8.00 pm.

Being ‘always on’ means you need to ‘work smart’ and telephone answering services help you do just that. What should you consider when researching these companies? Those that train staff to the highest levels. Like it or not nothing will replace the human voice for communicating reassurance and care – especially in times of genuine duress. Those who communicate an alchemy of gravitas, charm and care is where the magic is, and although few achieve it, look for companies that strive for it. We were not surprised to hear at the Modern Claims Conference that Tim Dixon-Phillip of Service Reality referred to many law firms answering phones to important clients ‘as if they were a slightly annoying interruption to their busy day’. Everyone has a place in the modern law firm and working smart means an environment where everyone has their own skills and uses them at the right time and in the right way.

I’d also suggest you find telephone answering companies that use scripts. Scripts don’t equate to a business full of mindless, ignorant, robots. Scripts equate to an instantly informed virtual personal assistant who can immediately respond to your customer with recognisable phrases and, just as importantly, an appropriate demeanour. Who doesn’t use technology to its maximum potential these days?

It’s like a law firm saying they don’t use Lexis Nexis! Call answering services are the epitome of ‘technology meets humanity’. Only companies that master both are worthy of being the voice of your law firm.

When it comes to costs - trial before you buy. Trialling helps you appreciate the level of support you genuinely need so you have no nasty surprises down the line. It’s also key to focus on value rather than price – especially when it’s so easy to see this as an ‘extra cost you haven’t had to pay for in the past decade’. Times change, move with them and remember it could be your current best customer calling, or your potential next best customer calling. What’s the loss of that to your business if handled badly? You don’t want to risk it, and your competitors certainly aren’t.

Jasvinder Jhumat, alldayPA Legal.

ML // June 2015

An acquired taste…

How effective-a-tool is blogging for marketing a law firm and should more lawyers use blogging as a marketing channel?

T

he answer to this question is not a simple ‘Yes’ or ‘No’…

From the blogs I have seen within the industry, the vast majority are very much about the Blogger, filled with personal self-praise, and very much geared towards telling the reader how wonderful the author is.

For a blog to be successful you have to have a sufficiently large audience, and to obtain that audience you have to blog about topics which are meaningful to a wide audience, and cross section of people, which can be extremely difficult, and requires a very talented wordsmith.

It is also important in my opinion, that the topic draws comment and discussion, whether positive or negative, sometimes being slightly controversial can draw far more people into your audience, as they wait for the next installment.

Keep on topic, and try to avoid personal references to be anything other than experience of the topic, when reading an article, people want to learn and obtain knowledge, they don’t want to hear about how great you are as a blogger.

Social Media is becoming a very good marketing tool, particularly Twitter and Facebook, despite a few recent disasters (the Alton Towers accident being one example of how not to do it). However, I feel that at this moment in time, with a small number of exceptions, blogs are an acquired taste, and appeal to a limited audience, therefore their effectiveness as a marketing tool, is in my opinion limited.

That is not to say that in the future that will not change.

Phil Hodgkinson, CEO, Pure Legal Costs Consultants.

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Our expertise is your solution Baker Tilly’s Professional Services Group is a multidisciplinary team whose flair and sector expertise have helped us to achieve our position as one of the UK’s top providers of business services to the professions.

George Bull Professional Services Partner T: +44 (0)20 3201 8609 george.bull@bakertilly.co.uk

Like most businesses in the current economic climate, professional firms, both large and small, corporate or partnership, are facing numerous challenges.

Our position enables us to not only influence technical and legislative developments for the good of our clients, but also to lead the way in identifying innovative and efficient solutions to their problems.

www.bakertilly.co.uk Baker Tilly Consulting LLP, Baker Tilly Corporate Finance LLP, Baker Tilly Restructuring and Recovery LLP, Baker Tilly Risk Advisory Services LLP, Baker Tilly Tax and Advisory Services LLP, Baker Tilly UK Audit LLP and Baker Tilly Tax and Accounting Limited are not authorised under the Financial Services and Markets Act 2000 but we are able in certain circumstances to offer a limited range of investment services because we are members of the Institute of Chartered Accountants in England and Wales. We can provide these investment services if they are an incidental part of the professional services we have been engaged to provide. Baker Tilly Creditor Services LLP is authorised and regulated by the Financial Conduct Authority for credit-related regulated activities. Baker Tilly & Co Limited is authorised and regulated by the Financial Conduct Authority to conduct a range of investment business activities. This communication is designed for the information of readers. Whilst every effort has been made to ensure accuracy, information contained in this communication may not be comprehensive and recipients should not act upon it without seeking professional advice. © 2015 Baker Tilly UK Group LLP, all rights reserved. 0810

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Professional Indemnity Insurance (PII) Brian Boehmer explains how you can get ahead for your 2015 renewal.

Treat your proposal form like a prospectus for an investor While the common PII renewal date has been abolished, 86% of solicitors still choose to renew their PII on 1st October. With The Law Society reporting 9,542 private practices registered in England and Wales, you can appreciate the logistical challenge that the insurance industry faces at this time of the year. It is incredibly important for you to differentiate your practice from that of your peers and make it as easy as possible for the insurers to understand your business. I recommend that you submit your proposal form, along with the following: • An executive summary, covering the history of the firm and how you have arrived where you are today. What has your firm done over the last 12 months? Where are you going in the coming years?

• Claims or complex issues – If you have had claims, what lessons did you learn? And what processes or practices have you implemented to prevent a reoccurrence?

• Risk management – Articulate the systems and controls adopted in your practice to mitigate risk.

• Finally, be proud of your firm; highlight the achievements of your practice and that of the individuals within it.

Your firm is unique; make sure the insurers know why The frequency of claims notifications for solicitors has reduced for the first time since the start of the recession in 2008, but the severity of claims has grown. Residential property is the biggest source of claims from solicitors.

Insurers will want to know how you mitigate the risks associated with your practice’s work.

Top 10 work types by % of claims 2010 – 2014 4%

4%

1%

4% Residential conveyancing (31%) Commercial real estate (11%) Wills, trusts and probate (10%)

6%

31%

Litigation personal injury (11%) Litigation other (18%)

18%

Commercial (6%)

11% 11%

10%

Family (4%) Employment (4%) Landlord (4%) Financial advice (1%)

Each insurer has a different appetite for risk and will have identified profiles of firms that they would like to insure. When you have provided your proposal form they will look at; • your fees, • the areas of law you practice, • the type of work you undertake, and • who you are doing business with.

This information will form their base price for your premium.

Other factors that will impact their pricing will be your; • claims history, • the risk management systems and supervisory processes your practice uses, and • the financial stability of your firm.

It is important for you to highlight your supervisory processes and risk management procedures.

The financial position of your firm is a key consideration for many insurers. Most are now asking for the latest management reports and up-to-date accounts. You shouldn’t just submit these without reviewing the financial statistics contained within them. The insurers put their balance sheet at risk to insure you and want to insure firms with robust business models and practices in place. If you are operating with a large overdraft, if your WIP is high, if your percentage of aged debt is high, or if your partner drawings are high compared to your profits, there could well be good reason, but you need to explain why. Other key indicators insurers look at to assess a firm’s financial position are: • increased complaints about overbilling; and • non-payment of your excess on claims (this will lead to an increase in your premiums or your policy not being renewed).

What’s on the insurers’ minds for 2015-2016?

This year’s proposal forms will feature new questions around your firm’s strategies to mitigate these new risks. You should be prepared to articulate what controls you have in place to combat both internal and external fraud. You may be asked to provide details of the training you’ve given to staff, when did it take place? Who participated? Highlighting how proactive you have been to implement risk management strategies to these new threats will be beneficial. But that doesn’t mean just sending your office manual. Be specific.

Cybercrime is a real concern to the insurers. The number of reported cases of fraud against solicitors has soared in the last two years, with ActionFraud reporting a 300% increase in voice phishing or Vishing, in 2014. Vishing is an electronic fraud tactic, using the telephone, in which individuals are tricked into revealing critical financial or personal information to unauthorised entities. Many insurers are reporting significant losses for the first half of 2015. Solicitors are being targeted due to the volume of transactions they deal with, and their access to client accounts. In time, insurers may recoup their losses from the banks and financial institutions, but this is unchartered water. It may result in the solicitors’ PII policy picking up these losses and an increase in their PII premiums.

Another emerging claims area featured in this year’s proposal form is extension of leasehold interest transactions.

Firms that have acted in respect of applications to extend a leasehold interest, where the premium payable has been greater than £250,000, will be required to provide details of the number of instructions, and the average value of the premium payable over a 3-year period.

Brian Boehmer, Partner, Lockton Companies LLP. Brian.Boehmer@uk.lockton.com | Tel: + 44(0) 20 7933 2083 www.locktonsolicitors.co.uk

ML // June 2015

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Probate Software: Training, Leadership and Support Gregory van Dyk Watson explains three core factors to bear in mind when implementing probate software, and reveals one area you should never try to save money on. software system is a nuisance, no matter what the potential benefits might be. It is even worse when we are obliged to suffer a temporary decline in our productivity until we are familiar with the new system. History is littered with the detritus of the failures who refused to learn and adapt to the new because it was too much trouble.

C

harles Christian, the doyen of legal software technology, in his chapter on training in the ‘Probate Practitioner’s Handbook’ (The Law Society, 2006) writes, “left to their own devices, fee earners will often claim that they are ‘far too busy’ to attend training and then complain that the software is ‘hopeless’ when they later discover that they do not know how to use it.”

Training to use software is much underrated by most firms. It is an area where many firms try to make savings.

By doing so, they risk shooting themselves in the foot. Trying to save money on training is a false economy.

The result is that fee earners and support staff will not be able to use the software properly. The consequent risk to the firm is a wasted investment.

This however is only half the story.

Even more important than training is for fee earners to actively use the software after training. Becoming familiar with the software is as important as the initial training. In a regime with weak or laissez-faire leadership, fee earners will often be tempted to go back to their old and inherently inefficient ways of dealing with estate administration, and ignore the benefits of a dedicated probate system.

Most of us enjoy the easy familiar routines. Learning how to use a new

Leadership Strong departmental leadership would insist on fee earners enduring the learning curve. People do not expect it to take as long as it often does, sometimes three, four or five weeks. It is nevertheless the only way to ensure the success of a new system. The alternative is to risk failure and a waste of the money that you have spent.

Your probate team who fail to learn the software will of course blame the software. I have observed this phenomenon like watching a car crash in slow motion, while the head of department ignored all the warnings.

Fortunately most firms are blessed with strong and responsible leadership.

The more usual refrain in this instance is, “We don’t know how we managed before we got the new probate system.”

‘Trying to save money on training is a false economy. The result is that fee earners and support staff will not be able to use the software properly’ Support Support is a fundamental component of a good software solution, albeit often overlooked by many buyers. Lack of training increases the importance of support. This is particularly so with probate software, since probate is

primarily an accounting function, while many solicitors still mistakenly think of probate as a case management function.

The bulk of estate administration is about collecting and collating the finances of the deceased’s estate in such a way so that an accurate set of accounts can be easily produced and the myriad of inheritance tax forms can be automatically populated with the financial data that has been entered into your probate accounting database.

Case management is the easy part of probate work. It involves keeping track of the tasks involved, and outputting a series of relatively standard letters and oaths. All the easier if the financial data is held in an accounting database with which the case management component is integrated.

In view of the sheer complexity of probate work, understanding the tax rules, and how to treat the financial data, increases the importance of support, and being able to readily contact your software supplier for assistance. It is important that your probate software supplier can assist you in knowing how to treat ISAS and PEPS, listing the market value of equities and their dividends, calculating the cash value to the beneficiary who does not want shares, accounting for an abatement of assets, listing the foreign shares and calculating the tax due under the double taxation agreement, and more recently, how to deal with FATCA. In order to provide you with the quality of support to understand these questions, it is fundamental that your probate software supplier’s support team have previous experience in this area of work, and can provide relevant and reliable answers.

For further information please contact: Gregory van Dyk Watson, Managing Director of Isokon Limited.

Email: gregory@isokon.com or call 020 7482 6555.

Alternatively visit www.isokon.com

ML // June 2015

SUPPORTING THE LEGAL PROFESSION FOR 30 YEARS

John M Hayes partner Fees Solutions to provide clients with a simple solution to accelerate costs recovery Leading firm of costs lawyers, draftsmen and costs advocates John M Hayes are proud to announce its partnership with Fee Solutions Limited, providers of finance for solicitors to facilitate effective costs settlement.

Kate Oliver, Chief Executive Officer, said that “…this was an exciting development and one that would be key in furthering the company’s prominent position in the field of inter partes costs, and would be an important platform to increase its market share.”

Kate went on to say “…the principal bone of contention with all solicitors is the ever lengthening time that it takes paying parties to settle costs claims, the demands of cash flow resulting in frequently compromised settlements, which otherwise in many cases would not have been conceded.”

E: mail@johnmhayes.co.uk

The Costs Award Accelerator Solution provided by Fees Solution Limited offers, at a very modest cost, a simple, easy to administer system to assist solicitors when a case has concluded, in negotiating their costs with paying parties on a more equal footing.

Mike Dobson, director of Fees Solutions Limited, said “Fee Solutions is delighted to welcome John M Hayes to our select panel of Costs Lawyers and Costs Draftsmen and wish them continued success. We anticipate being able to enhance their already high reputation for outstanding customer service and innovative solutions and look forward to helping smooth the cash flow position of their partner Law Firms.”

Mike added “…at a time when even the most successful and well established firms are faced with cash flow pinch points, we feel this is a very timely association between our two businesses, looking to work together in order to bring about a Fee Solution.”

For more information on this telephone 0870 300 3780 and ask to speak to your Regional Manager.

T: 0870 300 3780

www.johnmhayes.co.uk

Offices in: Amersham • Birmingham • Bristol • Cardiff • Chesterfield • Leeds (Ilkley) • London • Manchester • Newcastle upon Tyne • Norwich • Sussex

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REGIONAL FOCUS:

Yorkshire

Interview with... Philip Jordan As part of Modern Law’s new Regional Focus series, Charlotte Parkinson, Modern Law spoke to the President of the Leeds Law Society, about how the society remains relevant to its members and their role as part of the wider legal sector.

Q

Q A

What are the main challenges the Leeds Law Society faces at the moment and why?

A

Like any regional Law Society, the challenge is always maintaining financial stability and attracting and retaining members. We play an important role in connecting the profession locally and representing them nationally and we work hard to make sure everyone gets true value for their membership. We meet the challenges by making membership attractive and relevant. We deliver what our members need and make sure their voices are heard. Financially, our growing membership delivers the stability we need and we’re also not afraid of making the big decisions we need to secure our future. We recently agreed a deal with a restaurant chain to move out of our historic home and into new, more suitable and modern premises. That deal ensures we have more money to deliver even more services to our members.

Q

What were your core aims during your tenure as President of the Leeds Law Society?

A

My core goal was always to deliver the stability the society needs and to make sure everything we do is relevant to our members. I’ve achieved that. The society is thriving, we have grown our membership and I’ve reshaped the board to ensure that it is fully representative of our membership. We now have a young and diverse board and we have big ambitions. Not only do we deliver a great deal of resources, events, education and benefits locally, but we

‘The Leeds Law Society reflects the views of its members and that means everything we do also has to reflect their needs’ play a crucial role in influencing the regulation of the legal sector. Legal services are vital to the future of the Leeds City Region economy and we are an essential part of ensuring it can continue to prosper and grow.

How have the needs of members changed over the last three years?

Members needs have changed dramatically. The legal sector has faced an unprecedented era of change in recent years and the society has also had to change to ensure it remains relevant. The Leeds Law Society reflects the views of its members and that means everything we do also has to reflect their needs. We conducted a survey with all our members to understand exactly what they wanted from a modern society and we work to deliver that. Perhaps the biggest change is the way members access key resources and training. Much of that is now done online and the events and services we deliver have had to change as a result. Today, instead of offering short courses, we deliver larger conferences, seminars and networking events that address very specific issues. All too often, Law Societies aim to deliver lots of small events and the result is more cost and time wasted for low attendances. By focussing on special and relevant events, they are well attended and well received. It’s about staying close to your members and recognising what they need.

Q

How do you and the team at the Leeds Law Society ensure the society maintains its relevance to the profession?

A

We maintain our relevance by ensuring that the board reflects the legal profession locally. To do that, we recruited younger members, increased female representation and ensured we built in more diversity. It’s now almost a 50:50 split between men

ML // June 2015

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‘You will always get the odd rotten apple in any profession and it’s important to ensure we continue to be seen to punish and remove those who breach the rules’ and women in the legal profession and we have more women than men on our board. The result is that we now have a young, dynamic and ambitious board who are closely connected to the profession and mirror the make-up of the Leeds legal sector. We also conduct surveys to understand the issues and ambitions of our membership and, crucially, work hard to make sure the membership is connected. By building connections across the sector, we make it stronger and ensure we remain at the heart of it.

Q

What are the aims of the Law Society 2020 Discussion and what do you hope it will achieve?

A

The 2020 Discussion recognises that the relevance of the Law Society nationally has diminished. It needs to be much more in touch with the membership and guarantee that it acts in the interests of every member around the country. A discussion like this should be welcomed. The Law Society has an important role to play in the future of our profession and it can only achieve that by fully understanding the issues, challenges and hopes each member has.

Ultimately, I hope this discussion will encourage the national Law Society to copy the model of the Leeds Law Society and create a national organisation that is closely connected to members, listens carefully to their views and then works hard to deliver what they need.

Q

How important is the role of regional Law Societies in representing, supporting and promoting the needs of practitioners on a national level?

A

The short answer is hugely important. Now, more than ever, legal practitioners need representation to the Law Society, the SRA and the Government and the regional Law Societies are the gateway to ensuring that their opinions and concerns are heard. As one of the Joint Five, Leeds Law Society has a much bigger voice than most. Together we represent

ML // June 2015

and influence thousands of lawyers.

Without the regional Law Societies it would be impossible to get a true reflection of the state of the profession and then ensure national policies, regulation and legislation helps to further this important sector.

Q

How do you think solicitors are perceived by the public? Do regional Law Societies have a part to play in building relationships on this level?

A

There is still a lot of respect for the profession, but it has diminished in some minor respects. You will always get the odd rotten apple in any profession and it’s important to ensure we continue to be seen to punish and remove those who breach the rules. Things like ABSs have caused some confusion – when the public see things like ‘Eddie Stobart Law’ they are puzzled and concerned. However, people are still coming to the law firms and that speaks for itself. This profession still commands respect and that is built on the trusted relationships we form with clients. The core aim of the SRA should be to maintain that trust by making sure lawyers are properly trained, not only in the law, but also in courtesy and conduct. The local Law Societies also have a major role to play in this. We can help to build trust by providing the skills and expertise members need to do their job well and also conduct themselves professionally. It’s about us setting the standards and encouraging members to follow them.

Q

Do you feel that the Leeds Law Society has a voice in wider conversations with the Law Society?

A

We have always had a major voice nationally. As one of the biggest societies in the country and as one of the Joint Five, we’ve been in a strong position and have always maintained close relationships with the Law Society. Both the Law Society and the SRA have been in contact more than ever before in recent months and that’s because they need to get closer to the

profession. To do that, they know that we are the gateway to the profession locally. We have created a strong community of lawyers locally and we constantly work to represent their views on a national level.

Q

What does the future look like for the legal profession, on a regional and national level?

A

The future looks good – my own son is about to qualify as a lawyer and I encouraged him to join the profession. The profession is strong and both the Law Society and the SRA are listening to the members and working to secure a prosperous future.

However, I do think we will continue to see more mergers and acquisitions as the profession consolidates over the coming years. The economic pressures the small firms face will see their numbers reduce dramatically. The small firms face the same regulatory burden as the large firms and that is a cost few can hope to bear in the years to come. That is something that has to change, but the SRA are considering it.

By listening to members and delivering their needs we will help to ensure the legal profession in the UK remains one of the best in the world.

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REGIONAL FOCUS Modern Law spoke to two businesses with bases in the Yorkshire region and asked them to give us their take on how they are managing time and costs pressures, as well as innovation within the region.

The future is bright T

he move toward a service-driven culture is one of the most important changes to happen to the Bar in recent years. While quality of the advice and advocacy offered will always be of paramount importance, clients are increasingly looking to work with barristers’ Chambers who offer value above and beyond winning the case.

Gaining a clear understanding of what clients want is an important undertaking. At St John’s Buildings we invest time and resource to talk to our clients, gather feedback and discuss how we can meet their future needs. Lately we’ve seen their priorities lean towards consistency in both service level and price, so that is where we’re concentrating our efforts.

We’re currently undertaking innovative projects such as process mapping, investing in IT and moving towards Electronic Document Management, to help us deliver above and beyond our clients’ expectations. We also work more creatively with them, dovetailing on cases in multidisciplinary teams to build long-term partnerships and offer expertise to support our clients.

The legal landscape in which we operate is becoming ever more consolidated, with fewer, larger solicitors’ firms instructing a smaller number of Chambers. As this trend continues, it is likely to be mirrored by barristers’ sets who seek to grow both organically and through mergers in order to offer full-service solutions to clients. Certainly at SJB, we’ve seen unprecedented growth over recent years, and have a clear strategy in place to ensure it continues.

Offering a greater number of specialist barristers in order to fulfil a wider range of clients’ needs will also call for more support staff and larger, flexible premises offering multi-purpose spaces and hot-desking facilities.

IT capabilities will become ever more important, allowing certain types of cases to be conducted online with secure log-ins, and increasing the accessibility of Chambers, again mirroring what’s happening in clients’ offices across the country. Chambers are increasingly employing experienced professional staff from a broad range of business disciplines in order to move their organisations forward. Business development, client services, marketing, finance and human resources managers now sit alongside senior clerks on boards and management teams, to develop strategies for continued growth and increased client satisfaction.

I expect these trends will continue for the foreseeable future. The legal market in Yorkshire is vibrant and diverse, and our base in Sheffield puts us within easy reach of several cities offering great potential for the future.

Chris Ronan is Chief Executive Officer at St John’s Buildings. St John’s Buildings is one of the largest barristers’ chambers in the country, based in Sheffield, Manchester, Liverpool and Chester.

A long term view…

U

nfortunately, there are relatively few barriers to entry in the courier world. Infact, once you have passed your driving test you could buy a mobile phone and a van, and you can happily sell your services as a same day courier at knock down prices. However, in reality, do you want to trust your reputation to someone whose only eligibility for the job is a driving licence?

“What difference does my choice of same day courier make to my legal practice?”

This isn’t a question that many of you will ask (understandably!) on a daily basis. Yet when the services of a same day courier are needed, it is typically urgent, and almost invariably of critical importance. If you stop to consider how much trust and responsibility you are actually placing in the hands of a courier then the decision as to whom you will choose becomes much more serious, especially as your reputation is linked to that letter, that contract, that consignment arriving safely in the hands of the right person, and at the right time. I recommend you take the following vital factors into account when selecting a same day partner: Experience - Choose a partner whose credentials you can verify and check they are well established in the industry.

Being “long in the tooth”means they have earned their stripes, and are much more likely to bring some real added value to your organisation.

Capability - The “man with a van” can undoubtedly offer cheap rates, but does he have a process in place to deal with a breakdown or an accident? What will he do on the day you need three deliveries simultaneously?

Guarantee - Does your courier put their money where their mouth is? Check that they are confident enough to guarantee your delivery - preferably a 100% satisfaction guarantee.

Specialist in Legal - A specialist courier dealing with legal documents will appreciate the goods they move on your behalf can be priceless and understand the strict confidentiality that surrounds court documents. Moreover, they appreciate the ramifications of them being lost, or left unattended. A good courier will allow you to specify “no stops en route” so that this vital confidentiality is never endangered.

Although same day logistics partner might not be the most thrilling decision you make this year, I recommend using these few tips I’ve listed so you don’t end up paying a much higher price in the long run.

Andrew Edwards, Managing Director, Dynamic.

ML // June 2015

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IT Crowd

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57-62

IT Crowd

ML // June 2015

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IT Crowd

59

CLOUD, DROPBOX, SOCIAL MEDIA, BYOD, SAAS – DISRUPTIVE OR THE NEW NORMAL? Our resident IT guru Charles Christian writes…

A

mong the topics our IT Crowd have been asked to look at this month are the impact of and the strategies needed for dealing with the Cloud, social media messaging channels, services such as Dropbox, BYOD (Bring or Buy Your Own Device) and SaaS (software as a service). These are all relatively new developments in terms of legal technology – and in fact some of them didn’t even exist less than five years ago. But how is the average law firm or legal service provider – particularly those with limited internal IT resources – meant to react to such developments?

Probably the best short answer is to take a deep breath – and a strong drink – because this element of constant change is not something that is ever going to go away.

For example do you remember WordStar, a once popular wordprocessing application from the 1980s (incidentally still used by A Game of Thrones author George R. R. Martin) or Wang or even WordPerfect? When I launched the Insider newsletter in the mid-1990s, readers were amazed that some law firms were going with Microsoft Word rather than WordPerfect. “Are they crazy?” was the general reaction.

Today, by comparison, Word rules the legal wordprocessing world and you’d be hard pressed to find anyone who could operate WordPerfect. (In fact a lot of people will have never heard of it.) But, and this is one of the key messages to take from this article, Microsoft Word running on your desktop and laptop PCs may have been the order of the day for nearly 20 years but we are now heading into another period of change in which the “new normal” will shift from installed WP software to cloud-based services. Microsoft are taking the lead here with Office 365 which provides all your favourite applications (Word, Excel and PowerPoint) as an online subscription service.

Relentless change Some people call it by the rather over-dramatic name of “disruptive technology” but the fact is we live in a time where technology – even the relatively mundane stuff most law firms are using – is constantly changing and constantly evolving at what seems to be and ever-increasing pace.

For the technically minded, there is a concept called Moore’s Law which holds that over the history of modern computing hardware, the number of transistors in a dense integrated circuit (in effect, semiconductors, microprocessors and similar components) has doubled approximately every two years. In everyday terms, this often seems to mean that the day you buy a new PC, iPad, smartphone or even a digital camera, is the day before the manufacturer announces a new model that will be both more powerful and cheaper than the one you have just bought. Or, to look at it another way, taking into account R&D cycles, whenever you buy new hardware or software, it is already obsolete because the developers are working on its replacement.

Which is where the deep breath and strong drink come in because this is now a fact of life you just have to learn to live with. It is the sheer relentless pace of change that concerns people today but the fact is, it has always been happening – even in the legal world – albeit previously at a much slower pace.

On the horizon Sounds farfetched? It is already starting to take off with American law firms. In the UK, Hill Dickinson recently announced a collaboration portal project based around Office 365 and the Ministry of Defence just committed to an Office 365 project that will eventually see the system being rolled out to over 180,000 users. Cloud-based wordprocessing is coming – in five years it will be the norm – and in 10 years’ time people will be shaking their heads and laughing at the fuss law firm used to make when it came to upgrading from one version of Microsoft Office to another.

And why stop with wordprocessing? There are already cloud-based legal document management, case management and accounts/practice management systems out there.

Change is inherent within the law office automation world.

Just because “we’ve always done it this way,” for the past 20 years does not mean you will still be doing it the same way for the next 20 years. There is no “bucket list” for technology, as in a point where you can sit back, relax and say “that’s legal IT sorted, we can forget about that for the next five years,” as there will always be something new, just around the corner, coming along to disrupt your plans.

Charles Christian is IT Crowd Consultant Editor and Editorin-Chief of the Legal IT Insider.

® Proclaim is the only Practice e v a H Management Software solution Endorsed by the Law Society. you heard? CALL 01274 704 100 www.eclipselegal.co.uk/lawsociety lawsociety@eclipselegal.co.uk

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IT Crowd

A BYOD world…

A senior partner plugs his tablet into a public charger at the airport.

A solicitor emails IT to report that his phone was stolen on the first day of his London trip… last week.

A Summer intern, after spending all Summer downloading unsecured documents onto his personal tablet, leaves the firm and returns to school.

Each of these people, without realising it, just put your firm’s data at risk.

Living in a BYOD World…

It’s easy to understand why firms like BYOD (“Bring Your Own Device”). The firm gets increased productivity - allowing employees to perform remotely, with decreased cost. However, BYOD introduces numerous new variables into your security system. Any of the situations above provides an opportunity for hackers to bypass your cyber security systems.

With Serious Risks…

New threats come at a dangerous time for firms. With generally more lax security, firms are increasingly being seen as the potential “soft underbelly” by hackers. Your firm has confidential information on your clients’ claims, medical records, bank information, etc. Most importantly, your firm’s data is full of Personally Identifiable Information (otherwise known as all the basic questions your bank asks before authorising that purchase you just made).

And Serious Consequences The price of being hacked is going up. Last year, Target reported that malware had allowed hackers to obtain the card information of 100+ million customers. The financial toll was high, the damage to Target’s reputation may have been higher.

It’s worse for law firms that depend on reputation. With more regulations requiring prompt and complete disclosure of potential security breaches, how eager are you to tell your client that her information is being auctioned by hackers?

You Need a Plan There’s no way to make information completely secure, but you can minimise risks.

There are four key steps: 1) Relax Yes, this is serious, but overreacting can exacerbate the problem. It rarely solves it, and usually has numerous unintended consequences.

2) Assess What are your risks? What are your capabilities?

Figure out what you need, and what your firm’s resources can handle.

3) Plan Set up your policy transparently. Everyone has to know what it says, who runs it, how it’s changed. Crucially, everyone needs to understand why it’s important and how compliance is essential.

4) Implement One weak link can bring everything down, you need everyone’s buy-in for this to work. Don’t exempt anybody. Particularly at the top.

61

Invest in training Should law firms invest in periodic “remedial” training for staff to top up their IT skills and ensure they either haven’t forgotten how to use all the features and functionality of the software they use and/or are aware of all the latest enhancements?

T

his is not the case, and it’s amazing that the one thing needed - continual upskilling and empowering staff - to really make an IT project sing, long-term, is seen as disposable. After spending thousands, tens of thousands, or even (at the big end) hundreds of thousands of pounds on a software implementation, you need to know that the very people that are supposed to benefit - your staff - know how to use it.

Lack of ongoing and periodic training is often a key element when firms are finding it difficult to measure the effectiveness of an IT project. Familiarity, hands-on use, and the ability to ask questions (and get answers) all help staff to connect emotionally with both new and existing IT systems - and to hinder this relationship is to greatly reduce the effectiveness of the original IT investment.

Part of the problem may be that the impact of IT is underestimated. Perhaps oversimplifying here, but a belief that “Hey, we can all use iPhones and Microsoft Word, so using my CMS/PMS can’t be that hard”, can be damaging.

IT isn’t necessarily hard of course, but if it carries with it new or changing ways of working, then you need to be building in that ongoing emotional and intellectual attachment - and that’s where training comes in.

How do you get lawyers to take the courses? Maybe we should look at the ongoing investment required to make any IT system a success. The difference between a smooth and effective relationship, and a more challenging one, can often be quantified in the training costs. If the decision to spend on IT was made, it does not seem wise to jeopardise its ongoing success and development by skimping on the one thing that is the key interface between your staff and your new technology.

Darren Gower, Marketing Director, Eclipse Legal Systems, part of Capita plc.

Derek Fitzpatrick, Business Development Manager and EMEA Account Executive, Clio, a cloud-based practice management solution for lawyers.

ML // June 2015

62

5 minutes with...

5 minutes with... Carl Dugdale

Q

and improve efficiency, especially as the old demarcations are dissolving. As the industry changes so should the three regulatory bodies and the Law Society.

A

Q A

Did you expect the legal services sector to change so drastically when you started working in it?

I expected change – that is why Lime Finance was founded in 2009/10. We could see increasing demand for litigation loans coming from the general direction of all the changes. But, we never imagined the speed or the scale of the changes. It looks like the pace will continue for a good while yet.

Q A

What has been the key positive or negative impact of the liberalisation of legal services?

From our point of view, the increasing acceptability and now explicit encouragement of litigation loans and other forms of litigation finance as a means of access to justice. This comes from the politicians, the profession, the regulators and the court system. The future details are sometimes unclear but the direction is set. The various regulatory and industry bodies are not always working well together as they engage in turf wars for power, influence and funding. This is not good for practitioners or the public.

Surely, we should see the merging of regulators to cut costs

Who inspires you and why?

Disabled people who achieve things and remain cheerful and positive. It makes me ashamed of any excuses or self pity.

Q A

Have you had a mentor? If so, what was the most valuable piece of advice they gave you?

A father is an important mentor and my father keeps reminding me that “the only point of life is to enjoy it.” I wish Audrey Hepburn was a mentor. She makes profound points, once saying, “People, even more than things, have to be restored, renewed, revived, reclaimed, and redeemed; never throw out anyone .”

Q A

If you were not in your current position, what would you be doing?

Management consulting, where I spent most of my career.

Carl Dugdale is Director at Lime Finance.

Unity Law Proclaim Practice Management powers multiple award-winning Disability Discrimination specialist.

S

outh Yorkshire based Unity Law was formed by litigation expert Chris Fry in November 2010, with 6 staff providing a specialist service Darren Gower for victims of industrial disease, clinical negligence and work-related injuries. The practice has since won numerous high-profile awards for its service and now has over 25 staff.

The Challenge: As a new start-up business, Unity Law needed to differentiate itself from more established competitors by providing a higher level of service and a unified approach to client care - “clients not numbers”. To achieve this, a Practice Management Software solution was needed that would free up fee earners to maximise quality time spent on each client case by automating administrative tasks.

The Solution: A Proclaim Practice Management solution was implemented throughout

ML // June 2015

the practice to create a seamlesslyintegrated system providing an efficient and consistent approach to each case. The inherent flexibility of Proclaim would also allow for straightforward integration with productivity solutions such as document scanning, and expansion into new work areas in line with the practice’s strategy for growth.

The Results: Time-stealing tasks have been eradicated, with Proclaim automating non-value adding tasks to enable fee earners to focus on the complex litigation cases taken on by Unity Law. Integration with document scanning now means that Unity law’s ‘document inception’ processes are seamless and enable fee earners to access all client and case related information digitally, onscreen.

Compliance is assured thanks to Proclaim’s controlled workflow processes which ensure that no action is missed, and timely reminders are issued around legislative requirements.

Proclaim’s flexibility has allowed Unity Law to electronically exchange data with its costs drafting firm, Compass Costs, removing the delays inherent in postal

transit of bundled documentation.

Unity Law is looking to continue its growth with ambitious marketing plans, the goal being to become the UKs leading Disability Discrimination law firm.

Key Points: • Single dedicated Practice Management solution for Disability Discrimination work • Document inception process paperless operations • Automation of non-value added tasks • Seamless integration with costs consultants • Rigid compliance enforced through workflow Chris Fry, Managing Partner at Unity Law said: “We saw Proclaim as the market leader. It has given us clear operational advantages, putting us ahead of our business plan aims.”

For further information, please contact Darren Gower, Marketing Director at Eclipse Legal Systems, part of Capita plc, via darren.gower@eclipselegal.co.uk or call 01274 704100.

e v a H you heard?

Proclaim® is the only Practice Management Software solution Endorsed by the Law Society.

It speaks volumes that Proclaim, Eclipse’s market-leading system, is the solution of choice for 22,000 legal professionals in 800 organisations. Proclaim encompasses practice, case and matter management, and is now the only system to be endorsed by the Law Society.

From new start-ups to industry heavyweights, Proclaim is the system of choice for forward-thinking law firms.

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