Modern Law Magazine Issue 20

The Business of Law

October 2015 | Issue 20 | ISSN 2050-5744 The Big IT Issue: Charles Christian asks whether, twenty years after the publication of his book, law firms are still spending money on the wrong stuff.

Regional Focus – Liverpool: As part of Modern Law’s ongoing Regional Focus, Charlotte Parkinson speaks to the President of the Liverpool Law Society, Emlyn Williams.

Are we really in control? Kieran Jones and Kurt Rowe explain the need to ‘regulate’ and ‘protect’ now that drones are here to stay.

Modern Law Magazine | October 2015 | Issue 20

“I am a great believer that there is more that unites us than divides us and sometimes we are all at risk of forgetting that” Richard Moriarty

GEORGINA SQUIRE “The financial downturn and recession have led to a lot more scrutiny of advice provided by professionals”

Supported by

Sponsored by

Charlton Grant

BEAGLE BEAGLE

www.beagle.ai www.beagle.ai www.beagle.ai

Contracts In, Business Out. Contracts In, Business Contracts In, Business Out. Out. “Clients are always asking me to “Clients are always asking me to “Clients are always asking me to have a quick look at a contract. have a quick look at a have a quick look at a contract. contract.

With Beagle, now II can.”

With Beagle, now With Beagle, now I can.” can.”

TRY FOR FREE TRY FOR TRY FOR FREE FREE

NO CREDIT CARD REQUIRED NO CREDIT CARD NO CREDIT CARD REQUIRED REQUIRED

VISIT WWW.BEAGLE.AI VISIT VISIT WWW.BEAGLE.AI WWW.BEAGLE.AI

How it works: How it How it works: works: W W W

Upload a Upload a Upload a contract contract contract

It reads & It reads It reads & & highlights highlights highlights key clauses key key clauses clauses

Realtime Realtime Realtime secure secure secure collaboration collaboration collaboration

It learns It learns It learns what your what your what your client wants client wants client wants

03

Welcome A

s this issue of Modern Law lands on your desk, the summer months may well be just a distant memory. With the end of 2015 now in sight, it’s the perfect time to look back over the year and look ahead to what’s in store for 2016.

In this issue, I speak to cover star Georgina Squire, Partner at financial and commercial legal specialists, Rosling King, about the need for commercial firms to focus on mediation as a means of avoiding costly and time-consuming litigation, and two landmark cases which are changing the scope for professional negligence claims. I also spoke to the outgoing Chief Executive of the Legal Services Board (LSB), Richard Moriarty, about the reasons for his departure after only a year in-post, and the super-regulators plans to restore public confidence in the regulation of the sector (from page 17).

Also in this issue, our resident IT Guru, Charles Christian asks whether, twenty years after the publication of his book Legal Practice in the Digital Age, law firms are still spending money on the ‘wrong stuff’ (page 51).

Technology initiatives continue to creep throughout the sector, most recently with drones and drone technology

making headlines. Kieran Jones and Kurt Rowe explain the need to ‘regulate’ and ‘protect’ now that drones are here to stay from page 60. I also spoke to the President of the Liverpool Law Society, Emlyn Williams about other means of innovation in the legal sector, and his views on collaboration and communication with the profession and national Law Society (from page 52).

The Modern Law Events portfolio continues to grow, please see below for further details and contact ellie. campbell@charltongrant.co.uk for more information, for sponsorship enquiries contact martin@charltongrant.co.uk, or call 01765 600909.

I hope you enjoy this issue and if you have any feedback or suggestions for a future edition, please get in touch with me via the details below. Happy reading!

Charlotte Parkinson, Group Editor, Modern Law Magazine.

01765 600909 | charlotte.parkinson@charltongrant.co.uk @modernchar

Dates for your Diary: Modern Law Conveyancing Conference | Thursday 3rd December 2015 | Chelsea F.C, London Modern Law Conference | Tuesday 7th June 2016 | Old Trafford, Manchester United, Manchester Modern Law Conveyancing Awards | Thursday 14th July 2016 | The Rum Warehouse, Liverpool

Modern Law Magazine Project Director Kate McKittrick

Group Editor Charlotte Parkinson

Events Director Julia Todd

Production/Editorial Assistant Ebony Lawson

Issue 20 - October 2015 | ISSN 2050-5744 Business Development Manager Martin Smith 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 // October 2015

04

CONTENTS 03-08 Intro & THE News

07 Sean Hudson talks news

The partner at QualitySolicitors Lawson & Thompson explains why the future of legal services is both ‘bricks and clicks’.

11-20 The INTERVIEWS 13 Interview with... Georgina Squire

Charlotte Parkinson, Modern Law, spoke to the Head of Dispute Resolution and Partner at Rosling King LLP about two landmark cases which have changed the scope for professional negligence claims, and whether the Insurance Act 2015 creates a level playing field between policyholders and insurers.

17 Interview with... Richard Moriarty

As the Chief Executive of the Legal Services Board prepares to depart after only a year in-post, Charlotte Parkinson, Modern Law caught up with him to discuss the reasons for his early departure, restoring public confidence in the regulation of the sector and the potential impact of a review of the Legal Services Act 2007.

07

21-45 The views

23 My corporate client is looking for

funding to bring a claim. Are there ATE implications?

Matthew Williams, AmTrust Law

23 Investing in the right solution

Darren Gower, Eclipse Legal Systems, part of Capita Plc

25 Is Positive PEP a Positive Sign?

Steve Arundale, RBS/NatWest

31

25 Leading the way

Noel Inge, CILEx

27 Access to Justice... in work time?

Robin Selley, Box Legal

27 It’s the service that counts

Andy Poole, Armstrong Watson

29 Survival of the fittest

Sucheet Amin, Aequitas Legal & inCase™

29 Customer or client? And why it should matter to law firms

Kevin Ferriby, Informed Financial Planning

31 A ‘coaching’ culture

39

Colin S. Taylor, Willis

31 Agility and evolution

Editorial Columnists Andy Poole Legal Sector Partner Armstrong Watson Charles Christian Editor-in-Chief The Legal IT Insider Cian O’Sullivan Top Dog & Founder Beagle Colin S. Taylor Executive Director Willis Darren Gower Marketing Director Eclipse Legal Systems part of Capita plc David Simon Chairman Triton Global Derek Fitzpatrick Business Development Manager Clio

ML // October 2015

Zoe Holland, ZebraLC™

Dr Hugh Koch Chartered Psychologist and Director Hugh Koch Associates LLP

Kurt Rowe Associate in the Market Affairs Group Weightmans LLP

Erica Willmott Marketing Assistant Conveyancing Data Services

Lesley Graves Managing Director Citadel Law

Gregory van Dyk Watson Managing Director Isokon Limited

Lisa Beale Head Checkaprofessional.com

Jasvinder Jhumat Head of Corporate Business alldayPA Legal

Mark Montgomery Customer Strategy & Marketing Director myhomemove

Jo Hodges Director of Sales & Marketing Redbrick Solutions

Matthew Williams Head AmTrust Law

Kieran Jones Partner and Director of Insurance Nicola Smith Weightmans LLP Director NKS Consulting Kris Sæther Chief Commercial Officer Nik Ellis Xait Managing Director Laird Assessors

Noel Inge Managing Director CILEx Law School PJ Singh Head of Business Development Fitzalan Partners

Steve Arundale Commercial Head of Professional Services & Financial Institutions, Sectors & Specialist Business RBS & NatWest Commercial & Private Banking

Richard Burcher Chairman Burcher Jennings

Sucheet Amin Managing Director Aequitas Legal & Founder of inCase™

Robin Selley In-house lawyer Box Legal Limited

Zoe Holland Managing Director Zebra Legal Consulting

Samantha Steer Head of Large Law, Legal UK & Ireland Thomson Reuters Sean Hudson Partner QualitySolicitors Lawson & Thompson

05

49-62 The Features

35 The new business solution

Jasvinder Jhumat, alldayPA Legal

35 Occupational Disease Claims – A

51 The Big IT Issue: Twenty Years

After – Still spending money on the wrong stuff?

golden goose or a dead duck?

Lesley Graves, Citadel Law

36 Time for a change?

Nik Ellis, Laird Assessors

36 Collaboration: Not just post-it notes and highlighters

Cian O’Sullivan, Beagle

52 Regional Focus – Liverpool

37 Facing up to fracking

Erica Willmott, Conveyancing Data Services

37 Three crucial concepts

Dr Hugh Koch, Hugh Koch Associates LLP

39 Leading the way

Mark Montgomery, myhomemove

Jo Hodges, Redbrick Solutions

42 Database driven documents

Andrew Twambley outlines the tips and tricks needed to create a true ‘Brand’ in the legal sector and explains how to get the most out of TV advertising.

59 Probate Work – How to Ensure Profitability

Kris Sæther, Xait

42 Legal Pricing: Stop Using The ‘C’ Word!

Joanne Robinson explains how businesses in the Liverpool region are embracing innovation and excellence.

57 How to build a brand

David Simon, Triton Global

41 The perfect fit

Richard Burcher, Burcher Jennings

How do you best ensure the profitability of your probate work?

Surprisingly, most law firms appear to not know the gross profit margin of their probate department (and possibly of the firm as a whole), as Gregory van Dyk Watson explains.

43 Five Quick Tips for Solicitors to

60 Drones and drone technology – are

Increase Focus and Relieve Stress Derek Fitzpatrick, Clio

are you displaying up to date information?

Lisa Beale, Checkaprofessional.com

45 Don’t be invisible

Nicola Smith, NKS Consulting

45 Solid foundations

PJ Singh, Fitzalan Partners

55

we really in control?

43 The race to re-mortgage is on,

52

the future

41 New light on the “Minimum Terms”

Interview with...Emlyn Williams.

As part of Modern Law’s ongoing regional focus, Charlotte Parkinson spoke to the President of the Liverpool Law Society about collaboration and communication with the national Law Society, and the impact of a profession being put under increasing pressure.

55 Regional Focus – Investing in

Samantha Steer, Thomson Reuters

39 Understand your offering

Modern Law’s resident IT guru, Charles Christian explains whether law firms are still spending money in the wrong places.

The skies above our towns and cities are becoming increasingly congested as the number of aircrafts grows. Kieran Jones and Kurt Rowe explain the need to ‘regulate’ and ‘protect’ now that drones are here to stay.

62 5 minutes with...Pavani Reddy 62 ODT Solicitors chooses Proclaim

Property specialist to implement Eclipse’s Proclaim Practice Management Solution

60 ML // October 2015

IS IT TOO MUCH TO ASK?...

Medico-Legal Reports turnaround times: REPORTS RETURNED WITHIN 20 DAYS OF INSTRUCTION

80% APPOINTMENTS ARRANGED WITHIN 24HRS

90% REPORTS RETURNED WITHIN 48HRS OF APPOINTMENT

80%

...THE CHOICE IS EASY

...when service matters www.doctorschambers.com

Tier 1 MRO with over 20 years of Medico-Legal excellence

Sean Hudson Talks News

07

Sean Hudson

talks news

The partner at QualitySolicitors Lawson & Thompson explains why the future of legal services is both ‘bricks and clicks’.

O

nline DIY legal services have generated a storm of debate and been a source of growing concern to the legal community. While some fear loss of business, many solicitors are genuinely concerned that clients will not be able to serve themselves as effectively as an experienced, qualified lawyer. The client will consequently incur unforeseen financial losses and suffer unnecessarily protracted disputes.

While many of these concerns are valid, the reality is that DIY legal services are here to stay and the industry has to adapt accordingly.

The limitations of DIY legal services are apparent but so is the convenience they offer. Online law isn’t a replacement for traditional legal counsel and advice. It’s merely a supplement, which if embraced, can open up legal advice to a wider audience – something that has to be a good thing for the profession.

As with many other industries, online and traditional services can co-exist.

Consumers demand both ‘bricks and clicks’ options and both can be referrers and drivers of business to the other. The key is to understand why DIY law has gained ground. I believe that it is down to a combination of several elements, such as living in a digital age – there is more information than ever available on the internet for consumers. This means consumers are more savvy, have more knowledge and have researched their options. By providing convenience and transparency, we have a better chance of attracting those clients who start the DIY process.

Transparency Transparency on cost and control of legal expenses are sought by

consumers and are a huge driver for using low-cost DIY platforms.

For bricks and mortar legal firms to compete, they must take heed of these demands. In a price-conscious world where online comparison sites and research tools raise price awareness and fuel competition, some consumers and businesses will embrace DIY legal services.

Simplicity, transparency and cost control are driving clients to DIY online services. This reflects the need for legal firms to demonstrate simple and clear pricing structures, so that for more complex legal issues clients are not put off seeking professional legal advice.

Implementing transparency on costs and fees isn’t a hugely onerous or complex task. It is broadly a process that involves a commitment to change corporate culture and to treat clients in the way you would want to be treated yourself.

Committing to giving total transparency on costs and fees and to always provide cost estimates in advance so that clients don’t pay for anything that they haven’t been told about, should be a basic tenant for our industry.

If you look at the pressures facing banks and financial services firms around transparency on costs and fees and improving trust, it signposts what the future could look like for the legal industry. If that doesn’t drive change, customer demand will. Research from the Legal Ombudsman Service earlier this year showed that more than a quarter of the complaints it receives are caused by a lack of clarity on fees.

Rather than wait for change to be imposed, it is far better to act voluntarily in the face of rising consumer demand and offer similar pricing simplicity to the DIY platforms. Those practices that

‘Committing to giving total transparency on costs and fees and to always provide cost estimates in advance so that clients don’t pay for anything that they haven’t been told about, should be a basic tenant for our industry’ ML // October 2015

08

Sean Hudson Talks News

don’t keep up with this inevitable change are likely to lose business. Clear pricing ensures that the customer relationship begins from a point of trust and understanding, which would benefit both sides in the long run.

There is also the wider issue of the legal profession’s own reputation, which without clear pricing will continue to be viewed with suspicion. If the industry were to embrace a commitment to clear pricing structures, attitudes towards lawyers would change for the better and people would be able to seek advice with greater confidence. Recognising this, the Clear Price Guarantee has become the norm for all QualitySolicitors firms.

Convenience Convenience is another significant driver for people to use DIY legal platforms. Being able to access and execute legal tasks online has obvious attractions and legal practices may feel they are unable to compete with this.

It is worth reminding ourselves that much of the work that clients look to undertake is relatively simple, low margin activity for a traditional law firm. It is also usually time-consuming for the return it generates, so firms should embrace the opportunity to relinquish some of this work. By surrendering the lowest margin activity to DIY platforms, legal professionals are able to focus on where their services are really needed and return is highest. Aside from improving the bottom-line, off-loading more of the administrative legal cases has the added benefit of boosting job satisfaction for junior solicitors. Put yourself in the shoes of the consumer. Many of us book a flight online, accept the T&Cs, pay for the flight, choose our seat, check in online and print our own boarding pass. Convenience to the consumer; increase in profit margin for the airlines.

This doesn’t mean that firms should relinquish all the ‘lower end’ legal services to the DIY law providers. There will always be some clients who benefit from taking legal advice, many prefer it as a route to saving them time.

Clients can feel more comfortable delegating the work to a qualified professional. However by seeing DIY legal as a relevant choice for some clients and by embracing it, bricks and mortar legal practices are able to engage with and support clients differently and demonstrate the value of their legal advice.

Legal practices can also embrace a hybrid model. My firm has recently done this and as a first step developed an advice pack on divorce for clients to buy at a ‘law shop’.

The pack guides clients through the process of divorce from start to finish. We also provide online links to all the legal forms required so clients have the flexibility to manage the process themselves and in their own time. Offering this option ensures that we don’t lose the relationship with those that prefer to manage their own affairs, whilst we continue to provide a ‘traditional’ face-to-face service to others. A crucial element in making this a success for our practice and clients, is providing detailed but easy to digest information to ensure clients successfully complete the DIY process and are happy with the end result.

Firms need to understand what particular aspects of legal services customers are able and motivated to carry out by themselves. They should ensure that the services provided

ML // October 2015

‘In working out how to respond to the rise in DIY legal platforms and demand for these services, the profession needs to understand the drivers for consumers and the weaknesses in the online offering’ by traditional legal firms are positioned to plug the many gaps that exist in DIY platform services, such as probate and hostile divorces.

In essence, we want to establish and maintain some form of client relationship with ‘DIYers’ and take a long term view of our client’s legal journey; while they may be able to manage their own legal administration now, they may need extra support in the future for more complex legal services.

Legal practices also have a new and important role to play in ensuring people are protected from common ‘DIY mistakes’ by positioning themselves as a good value alternative for those that cannot or don’t want to pursue the DIY route, or get confused by the process.

Responding to demand The trend towards DIY legal platforms continues to be driven by online platform innovation and has been boosted by the legal aid cuts that came into force in 2013 which, for example, forced many people to manage their own divorce or employment disputes.

In working out how to respond to the rise in DIY legal platforms and demand for these services, the profession needs to understand the drivers for consumers and the weaknesses in the online offering.

I believe the legal sector should embrace DIY law, if not, then at least understand the drive to it and recognise where it works. While DIY law may be convenient and cheaper, it doesn’t have the same rigour or comfort as talking to a lawyer and getting personal service from an expert. We should also trust in the fact that when a person seeks legal services, it will be in relation to an issue very serious and personal to them. They will be keen to get the best advice they can, without compromising on quality. Furthermore, while we live in an increasingly digital world, there are always going to be people that want the reassurance of face-to-face interaction and direct expert advice.

If we can harness the peace of mind, online convenience, transparency and cost control that DIY law can deliver, then the advent of these DIY law platforms could promote the value and importance of traditional legal consultancy, not diminish it.

Sean Hudson is a Partner at QualitySolicitors Lawson & Thompson.

We are expanding our Panel of Law Firms If you are a Law Firm with expertise in Disease Claims and want to preserve your cash flow, join Pure Legal, the only company who have created a level playing field for you.

We provide: High Quality Work…At The Lowest Cost…Fully Funded Don’t miss out on the best thing to hit the legal market in more than a decade.

Call Pure Legal today.

T. 0151 449 0005

@PureLegalLTD

purelegallimited.co.uk

Do you need to review your staffing structures to increase profitability?

We are now teaching over 100 legal apprentices employed by our client firms. We also deliver tailored CILEx training programmes through client in-house academies.

To find out how you can benefit from our expertise in targeted legal training please contact Noel Inge on 01234 844325 or n.inge@cilexlawschool.ac.uk.

CILEx Law School, College House, Manor Drive, Kempston, Bedford MK42 7AB www.cilexlawschool.ac.uk

05724 Advert update.indd 1

04/02/2015 11:48

Meet your new partner.

Clients rely on you to succeed. That’s why you need a practice management solution committed to your success. Trust Clio to take your practice higher.

A friendly user experience.

Intuitive and engaging, designed with the tools you need to perform at full speed.

Practice to go, wherever you go.

Access everything you need on any device from anywhere at any time.

The power of cloud computing

Integrate with tools you use.

Bank-grade security, lower costs, no upfront investments, continuous upgrades, and one low monthly fee for all your IT needs.

Including QuickBooks, Bundledocs, Xero, Google Drive, Gmail, Outlook, Dropbox, NetDocuments, and more.

Service beyond the software

Everything you need to run your firm.

A trusted partner offering world class support, easy migration, and fresh ideas for leading and growing your law firm.

Manage time, bills, documents, tasks, calendars, and client communications.

Visit clio.eu/signup to sign up for a free trial now or email us at info-eu@clio.com.

HAVE YOU SEEN OUR SISTER PUBLICATION? To arrange your free subscription please email info@modernclaimsmagazine.co.uk

www.modernclaimsmagazine.co.uk Have you seen Half Page Ads.indd 2

20/08/2015 12:24

11

11-20

The Interviews

Next Next Generation Generation Practice Practice Next Generation Practice and Financial Management

and Financial Management and Financial Management

• •• ••• ••• ••• ••• ••• ••

Increase fee earning and profitability Increase fee earning and profitability Increase fee earning and profitability Financial disciplines and controls required by the SRA Financial disciplines and controls required by the SRA Financial disciplines and controls required by the SRA

•

Contact us now to arrange a demonstration!

Contact us a demonstration!

0845 166 2629 redbricksolutions.co.uk Contact usnow nowtoto|arrange arrange a demonstration!

Contact166 us a demonstration!

0845 2629 redbricksolutions.co.uk Contact usnow nowtoto|arrange arrange a demonstration!

0845 166 2629 | redbricksolutions.co.uk 0845 166 Contact us2629 now to| redbricksolutions.co.uk arrange a demonstration!

0845 redbricksolutions.co.uk 0845 166 2629 | redbricksolutions.co.uk

• • • • • • • • • • • • • •

The only case management provider to achieve the Eye Quality Standard The Legal only case management provider to achieve the Legal Eye Quality Standardcater for the Intelligent, flexible workflows The only case management provider to achieve requirements of theworkflows whole firm Intelligent, flexible the Legal Eye Quality Standardcater for the requirements of the whole firm Compliance and risk management built in to Intelligent, workflows cater for the future proofflexible yourrisk firm Compliance and management requirements of the whole firm built in to future proof your firm Quotes, documents, legal forms, statements and bills Compliance and riskseconds management built in to all produced within Quotes, documents, legal forms, statements and bills future proof your firm all produced within Flexible delivery andseconds payment options incl our unique Quotes, documents,model legal forms, statements and bills Pay Per Transaction Flexible delivery and payment options incl our unique all produced within seconds Pay Per Transaction model • Flexible delivery and payment options incl our unique Pay Per Transaction model

Interview with... Georgina Squire

13

Interview with...

Georgina Squire Charlotte Parkinson, Modern Law, spoke to the Head of Dispute Resolution and Partner at Rosling King LLP about two landmark cases which have changed the scope for professional negligence claims, and whether the Insurance Act 2015 creates a level playing field between policyholders and insurers.

Q A

Has the landscape for professional negligence claims changed in recent years, and if so why?

Yes it has changed, particularly in the last 3 years. There are a number of reasons for this: the financial downturn and recession have led to a lot more scrutiny of advice provided by professionals because as a result of the downturn, people have suffered greater losses. The landscape has also changed because lenders that have suffered losses on a variety of commercial and residential loans have started to look at the causes for some of the losses.

There were two landmark court decisions, one on residential mortgages, Webb Resolutions Ltd v E.Surv Ltd [2012] EWHC 3653, which set the framework for claims by lenders against valuers.

Mr Justice Coulson looked through a large number of authorities going back many years, and gave a view of the way a valuer’s position on a mortgage loan should be analysed. The second case was the decision in Titan Europe 2006 - 3 plc v Colliers International UK plc (in liquidation) [2014]. This was a landmark decision in that it was the first Court judgment on a claim against a valuer on a commercial mortgage-backed security (CMBS) loan. CMBS was prevalent at the height of the market in 2006-7 and is still active today. It usually involves a series of loans secured on real estate being combined into one CMBS structure with the notes (shares) classed in different layers and traded. This was the first case brought by one of those securitisation structures against a valuer and we recovered £32million, plus interest, plus costs for Titan against Colliers. The case is currently being appealed. The other main issue over the last 2 or 3 years (whatever the area of professional advice) has been the scope of the duty of the profession, such as limitation and how long liability lasts for. There are also debates around causation, which is the concept of how much of the loss can be put back on the professional if it can be proven that they were negligent, and whether this should be restricted in any way.

‘The financial downturn and recession have led to a lot more scrutiny of advice provided by professionals’ ML // October 2015

14

Interview with... Georgina Squire

‘Mediation continues to be popular as everyone can come to the mediation safe in the knowledge that if they don’t want to do the deal, they can walk out’ Rosling King LLP Rosling King is a UK-based law firm specialising in serving the needs of financial institutions and the real estate, private equity and construction sectors.

From our headquarters in the City of London, our lawyers offer the highest quality of advice and service to clients across the world.

Our firm has developed a respected breadth of practice over many years with distinctive skills and capability in the often complex, challenging and fast-moving worlds of commerce and finance.

Our clients, many of them banks, financial institutions and insurance companies, require legal advisers who are expert in their specialist areas and can bring clarity to complexity.

The ethos of Rosling King is to value and respect our clients and be wholly committed to help them find a better way.

‘The 2015 Insurance Act is fantastic, as it will bring us in line with everyone else, and puts London right back in the centre of the insurance world’

ML // October 2015

Q

Rosling King acts for a range of commercial clients, from banks to insurance companies – which sector presents the biggest challenge and why?

A

The area where there is most challenge is where people have purchased debt or loans and they are looking to make recoveries for losses, but they were not the commercial entity which entered into the contract or the retainer with the professional at the outset. We have seen quite a lot of this with banks selling off large swathes of loans over the last few years. There are also issues around jurisdiction, where corporate entities who are based in the U.K. wish to bring claims here, but the problem has arisen on real estate which is based overseas. As an example, on the Titan case, the underlying security was in Germany but we brought the claim here and there wasn’t a problem.

In terms of professional sectors, the valuer sector has been hard hit by the numbers of claims brought against it, which have largely arisen out of lender valautions.

Q A

Has the role of mediation changed in relation to claims/ dispute resolution as a wider

issue?

Mediation has certainly become more important over the last 5 years. The Court of Appeal case, Halsey v Milton Keynes General NHS Trust [2004] 1 WLR 3002, outlined the types of cases that would not be suitable for mediation and this encouraged people to mediate more.

There have been subsequent authorities that have come through over the last couple of years, again trying to encourage people to mediate rather than litigate. We always try and push for early negotiation and settlement (largely because we act for claimants and their desire is nearly always to end the problem, not protract it through litigation). Our aim is to try and avoid litigation and mediation can be a fantastic way of doing this. Mediation continues to be popular as everyone

can come to the mediation safe in the knowledge that if they don’t want to do the deal, they can walk out. It also gives people an opportunity to vent their feelings to one another, as well as the opportunity for the parties to listen to what the other has to say. Very often, those types of discussions can change someone’s view over the course of the day, which culminates in a private and confidential commercial resolution.

Very often, the commercial entities we are dealing with want this, they don’t want the publicity, the financial or time investments of the litigation process.

Q A

What is the most memorable case you have worked on and why?

It has to be the Titan v Colliers case, because it was a landmark decision and the whole of the CMBS market was awaiting the outcome. There are a lot of problems arising out of CMBS loans and there was an element of caution as to how these claims can be brought because of the complexities of the financial and corporate structure. It was an extremely challenging case but we have managed to break the boundaries and set new law.

Q

What are the most fundamental changes to the insurance industry over the last 12 months and how have these changes impacted your work?

A

The Insurance Act 2015 is undoubtedly the biggest change in the industry in over one hundred years. We do a lot of work for commercial policyholders on coverage and it has had a big impact for us already. For the last 20 years, I have been dealing with coverage claims and the challenges of the out of date and draconian concept of an avoidance ab initio of an insurance contract. This does not fit with the modern world and is out of kilter with all the other EU countries.

I know from acting for a number of overseas insured entities that they have been moving their insurances away from London, because they find our

Interview with... Georgina Squire

laws too stringent. The 2015 Insurance Act is fantastic, as it will bring us in line with everyone else, and puts London right back in the centre of the insurance world.

Q A

Does the Insurance Act 2015 put pressure on policyholders and was the Act the right step for the industry?

15

‘There will be disputes and litigation as a result [of the Insurance Act 2015] but I think there will be less coverage disputes’

It was the right step for the industry and I don’t think it puts pressure on policyholders.

It creates a more level playing field between policyholder and insurer.

There is more transparency and the outcome for anyone failing to provide information inadvertently is much fairer under the new Act. The old outcomes were too stringent.

Q A

Could the Insurance Act 2015 change the nature of claims/ dispute resolution?

Undoubtedly, there will be a lot more claims around what constitutes a fair presentation of risk - which is where the majority of issues will arise. There will be disputes and litigation as a result but I think there will be less coverage disputes. One of the reasons I think avoidance disputes have carried on over the last few years is that it is an all-or-nothing result, where the insurer can walk away, leaving the policyholder without insurance (a disastrous result for them). Under the new Act however, if there is some information missing, the consequences must be looked at and remedied accordingly; whether that is achieved by increasing the premium or the insurer not paying out for some or all of a particular claim. Overall, the Act creates more of a balance and I am hoping there will be less litigation as a result.

Q A

What is next for you and Rosling King?

More of the same, we love our business and client base and are looking to build on our reputation as problem solvers and specialists within our specialist sectors of private equity, financial institutions, real estate and construction. We are not looking to do anything dramatically different, just continue with more of the same.

Georgina Squire Georgina is the Head of the Dispute Resolution Group at Rosling King and advises on a broad spectrum of commercial disputes.

She acts in cases across most of the commercial divisions of the High Court, resolving disputes through arbitration and many forms of ADR, including mediation, expert determinations and mini-trials.

Acting for lenders, investors, financial institutions, private equity funds and loan servicers on all forms of disputes arising from their businesses, Georgina is known for her expertise in professional negligence claims, having advised the claimant in most of the precedent case law in this field.

She also advises on insurance and reinsurance claims, concentrating on coverage and professional indemnity disputes and has been involved in many high profile cases in the Court of Appeal and the Supreme Court.

Georgina has considerable expertise in advising on construction and real estate related disputes. She has handled many claims arising from construction projects and also acts for lenders, developers, investors and other parties involved in the real estate and real estate finance sectors.

Having qualified as a solicitor in 1983, Georgina is also a qualified mediator. She is the past Chair of the Law Society Litigation Committee, a founder committee member of TeCSA and has served on the TCC Users Committee. She currently sits on the committees of both the London Solicitors Litigation Association and the Chancery Users group.

ML // October 2015

DO YOU KNOW THE TRUE IDENTITY OF YOUR CUSTOMERS? Our AML check will confirm it in 5 seconds! Call us now to book a free demonstration on: Business checks take a little longer, taking 1-2 minutes.

Sanctions & PEP screening is fully automated, thereafter we monitor all our client’s customers every day. We also automate their enhanced due diligence. Let us show you how!

0113 346 4245 Or visit us online:

SMARTSEARCHUK.COM Powered By

THE ONLY AML RESOURCE YOU NEED SmartSearch delivers UK and International Business checks, plus Individual checks along with Worldwide Sanction & PEP screening, daily monitoring, email alerts and full enhanced due diligence intelligence.

BUSINESS & INDIVIDUAL AML

SANCTIONS & PEPS

DAILY MONITORING & ALERTS

ADVERSE MEDIA

ENHANCED DUE DILIGENCE

RETROSPECTIVE PROCESSING

BROWSER, API & SINGLE SIGN ON

INTERNATIONAL SANCTIONS & PEPS

Interview with... Richard Moriarty

17

Interview with...

Richard Moriarty Q

The Legal Services Board (LSB) confirmed in July this year that you will step down from your role as Chief Executive in February 2016 after only a year in the role. Why did you take the decision to leave so quickly?

A

It was an extremely difficult decision for me. I recognise and value the importance of the UK legal services sector and am also proud of the role that the LSB (as a very small organisation) plays within that, in terms acting as an agent for change, in the interests of the public and consumers. I was not expecting, or wanting, to move on after a year but a unique opportunity has arisen for me to return to aviation, to become the Deputy Chief Executive of the Civil Aviation Authority and its Director of Consumers and Markets. It is a very exciting time for the aviation industry, given the current debate over runway capacity in the South East of England.

As the Chief Executive of the Legal Services Board prepares to depart after only a year in-post, Charlotte Parkinson, Modern Law caught up with him to discuss the reasons for his early departure, restoring public confidence in the regulation of the sector and the potential impact of a review of the Legal Services Act 2007.

Q A

Do you think the LSB is in a better position now than it was when you became Chief Executive?

Yes I do; in part this is derived from the fact that in the market, we have started to see the benefits of some of the decisions the LSB has previously made, in respect of innovation and supporting the regulators in developing their own frameworks, as well as cutting redtape. It is also important to ensure that the public has confidence that regulation is informed by the profession but delivered independently. I inherited the LSB from my predecessor (Chris Kenny), and it was already in good shape then - the organisation also has a very talented and committed team and I am very keen to make sure that when I hand over the reins to my successor, the LSB is in an even stronger position than when I started.

‘I have been a regulator and I have been on the other side of the table, being regulated’

Q A

Why do you think you were selected to lead the LSB, based on your past career/experience?

First and foremost, I am passionate about the important role that the legal services sector plays in supporting our economy and civic society. The rule of Law is something that is not just fundamental to lawyers, it is fundamental to all citizens, as with rights

ML // October 2015

18

Interview with... Richard Moriarty

‘I doubt the public care about whether there is one, two or eight regulators, providing they have trust and confidence that the regime works, is effective and provides value for money’ such as Freedom of Speech and our cherished, unwritten constitution. Our profession has a lot to be proud of in terms of the part it plays in our society.

Secondly, I have a strong sense that our sector can and should do more, particularly with regards to addressing unmet legal need because despite some progress, there is still evidence to suggest there is significant unmet need amongst the public and small businesses. Before joining the LSB, I worked across a number of different regulated sectors for a period of about 20 years. These included energy, water, communications, aviation and social housing and in all of them, there is an important public interest objective that has to be maintained, whilst the sectors were in need of reform and modernisation - clearly there is a parallel there with the legal services sector. Finally, I have been a regulator and I have been on the other side of the table, being regulated. This has given me a really sharp appreciation for how the tone of regulation is conducted and how roles can sometimes be well-meaning, but get in the way of entrepreneurial activity and people doing their job.

Q A

What is different about regulating the legal sector?

For me, legal services regulation is largely about making sure there is public confidence that the regulation of the profession meets appropriate standards. Other regulated sectors tend to focus on regulating companies, rather than individuals, for instance, by policing the prices they can charge. Legal services however, has a much more fragmented and

complex regulatory regime with eight frontline regulators and the LSB as the oversight regulator, which is not a common structure in other sectors.

One of the refreshing differences that I have found in legal services is how the profession puts the public interest centre stage. Lots of regulators I have met have a sense of self-interest in the debates that we have had but I have been really impressed with how the profession always puts public interest at the forefront of its mind. On the downside, in comparison to any other sector that I have regulated (and legal services is now my sixth sector), there is a real lack of data and research out there to inform regulatory and policy making, which means that often the debates we have are held hostage to anecdotes; this is something I would like to see changed.

Q A

What is your greatest achievement during your time at the LSB and why?

The first achievement is that I have been really keen to build relationships between regulators and the profession and change the tone of the debate. I am a great believer that there is more that unites us than divides us and sometimes we are all at risk of forgetting that. I am extremely proud that I will leave behind an incredibly talented and committed team that punches well above its weight in terms of its output and the ‘value-added’ services for the public and the sector.

Q

During your time at the LSB how have you helped deliver the boards/organisations strategy and how will your successor continue to do this?

A

Personally, I have been very clear where we as a small organisation can add value, and what we need to do. We have had to ruthlessly prioritise because we can’t do everything that we would like (and that others would like us) to do. It is absolutely essential to have a clear strategy and business plan, coupled with the ability to communicate it effectively to the profession. Our strategy is based on three very clear themes; first, ensuring that the frontline regulators and the Office for Legal Complaints (Board of the Legal Ombudsman) continue to command the confidence of the public and the profession. Secondly, by reducing the cost of regulation and breaking down barriers between the sector and innovation, and finally by working with others to ensure that the sector can tackle the significant unmet legal need in our society. I am very conscious that given our drive to reduce the cost of regulation, we need to ‘do our bit’ too, which is why our budget has been on a downward trajectory since we started. In 2009/10, we were costing each regulated professional 65 pence a week. As a contrast, last year, we cost the equivalent of 50 pence a week.

Q

What are the LSB’s views on the single regulator debate, which in the past David Edmonds and Sir Michael Pitt have advocated as part of the ‘deregulation’ of the sector?

A

We all agree that the form of regulation should be agreed once the objectives of regulation have been properly established; form must follow function, not the other way around. I doubt the public care about whether there is one, two or eight regulators, providing they have trust and confidence that the regime works, is effective and provides value for money. That said, I can see a logic for consolidation in terms of saving costs, avoiding duplication, and ensuring consistency.

I have worked for regulators who have merged in the past, that have brought different sectors together for

‘Legal services regulation is largely about making sure there is public confidence that the regulation of the profession meets appropriate standards’ ML // October 2015

Interview with... Richard Moriarty

Richard Moriarty Richard joined the LSB in February 2015 as Chief Executive and as a member of its Board.

Before joining the LSB, Richard was Director of Regulation for Affinity Water, a regulated water company that serves over a million households in the south east of England. He was responsible for its relationships with its regulators, government and its corporate affairs.

Before then he was Director of Economic Regulation and Competition Policy with the Civil Aviation Authority where he led the programme to reform the regulatory framework for London’s major airports.

He has also held senior regulatory roles in a number of other sectors including social housing, postal services, and energy. Many of his regulatory roles have focused on removing regulation whilst ensuring appropriate public interest safeguards.

Earlier in his career he worked for the Foreign and Commonwealth Office.

Richard is currently a non-executive member of the Homes and Communities Agency’s Regulation Committee, which ensures that social housing landlords in England are well governed and financially sound.

He has undergraduate and postgraduate degrees in Economics and an MBA.

‘Lots of regulators I have met have a sense of self-interest in the debates that we have had but I have been really impressed with how the profession always puts public interest at the forefront of its mind’

consistency and to save money but equally, it is no accident that in two other professional services sectors (medicine and accountancy), where there are different disciplines under one broad profession, there are also oversight regulators. Although I can see the logic and the argument for a single regulator and consolidation, I can also understand the counter argument too. This is something that needs to be looked at if there is going to be more fundamental reforms of the Legal Services Act 2007.

Q

Lord Chancellor, Michael Gove announced a review of the Legal Services Act 2007 in July this year. Does the sector need another overhaul and is Gove likely to get it right?

A

We need to be clear that the Act has already delivered a substantial amount of change, with the introduction of Alternative Business Structures (ABSs), a new Ombudsman and redress system. We now have a regulatory framework that is much closer to what is expected and utilised in other professional services sectors. Some of these changes, such as ABSs are still bedding in but it is incumbent on all of us to make the best use of the Act in the public interest. It is important for all of us with an interest in regulation to think about how it might evolve in the future. There are pressures on the current settlement for example, it would be very difficult at the moment for a consumer to tell the difference between those services that are reserved (and hence regulated), and those that are not.

The market continues to blur the

19

demarcation lines between the varying areas of the profession but the issue at the moment (as the Ministry of Justices’ Call for Evidence shows), is that there is no consensus amongst folk about what should be done to replace the Act. Whilst reform may not be top of the Government’s agenda, it does make sense for us and the regulators to try and work together on the potential options when the political window is open. It is also important for us to engage with the profession on this, which we have started to do by sponsoring work with the other regulators, such as the recently published paper by Professor Stephen Mason, which sets out what some of the potential choices might be.

Q A

What is in the pipeline for the LSB from now until February 2016 and beyond that?

I am very clear that it is business as usual, and we have a lot of business to do on my watch. We have some important policy to review, in terms of lightening the regulatory touch on in-house lawyers and promoting our groundbreaking research on unmet legal need within the small business sector. Around all of that, we have a continued drive to reduce the cost of regulation, and ensure the frontline regulators, where they are asking the profession to do things, establish valid reasons for doing so.

‘I am a great believer that there is more that unites us than divides us and sometimes we are all at risk of forgetting that’

ML // October 2015

The Views

21-45

The Views

21

NKS Consulting can assist with every aspect of your business to help you grow and become more efficient and profitable.

Our team have over 20 years i n d u s t r y e x p e r i e n c e i n Personal Injury & Marketing and are therefore best placed to advise you on maximising profits and minimising problems.

Regardless of the problem, NKS will have a solution tailor made to suit your needs.

We are leaders in our field and can help you take your business to the next level by introducing you to a wide variety of industry experts who have worked with NKS for many years, some of which will offer you exclusive deals just for working with us.

We can help with -­‐ • • • • • • • • • •

Mentoring Staff training , Re-­‐training and Recruitment Marketing and Advertising Auditing Industrial Disease Department set-­‐ups Screening Audiology & CFA sign ups Event Organising Clinic Staffing Troubleshooting Outsourcing, and many other business solutions

We also offer monthly support packages that can be tailored to your requirements so the advice you need is only a call or email away 7 days a week, 365 days a year.

Get the help you need, when you need it most.

Contact our friendly team to see how we can improve and streamline your business.

Call - 0844 500 1424 or

Email - nicola@nksconsulting.uk www.nksconsulting.uk

The Views

Q: My corporate client is looking for funding to bring a claim. Are there ATE implications?

A: Yes.

T

here are two aspects to the costs of most claims. First, how much will it cost to pursue, (Own), and second how much more might it cost if things go wrong and there is an order to pay the other side’s costs (Adverse).

Funding from a third party is a relatively contemporary, but increasingly popular option when considering how to pay legal fees. After the event legal expenses insurance (ATE) is a way of dealing with the exposure to Adverse. It too retains a contemporary feel, as awareness of this product continues to grow.

So, when reviewing costs as a whole, think funding for Own and ATE for Adverse? Yes, but it’s not always that simple or obviously defined. Both funding and ATE involve additional expense which will generally be irrecoverable1 and an understanding of that expense and how it is incurred will be helpful.

Where there is funding, it is a fair assumption ATE (or equivalent) will also feature. Funding itself does not dispose of the Adverse risk for the client, and it can create a direct exposure to it for the funder (see Arkin v Borchard Lines Ltd [2005] EWCA Civ 655).

ATE cover may be taken by the client direct on a ‘bespoke’ basis for a particular claim, (and is often a condition of funding being provided). Alternatively, it could be put in place via a ‘funder solution’ with the funder providing an indemnity. The latter will generally have behind it an arrangement between the funder and an insurer which could be case specific or could relate to the outcome of numerous unrelated claims.

A bespoke ATE premium is often based on the level of cover provided and may be a percentage of that sum. The cost of a ‘funder solution’ may be based on the cost to the funder of providing the indemnity and may or may not be subject to the funder’s return requirements under the funding agreement.

The best solution will depend on the facts of each case, but an awareness of the issues involved will assist the client in making choices.

23

Investing in the right solution Many legal businesses have technology to hand but don’t use it to full capacity before shopping around for a newer model. How do you know the difference between when it’s time to simply upgrade what you have and when it’s time for a complete overhaul?

T

his can be a tricky balance, and the impact of making a bad decision can be felt quite heavily!

One mistake that is common is law firms not communicating properly with their technology vendors before making the decision to invest in something else. The first task here should be to sit down with your current vendor(s), tell them exactly what you want to achieve, and gauge the response.

Often you will find that your current systems can indeed achieve what you need, and what’s required is perhaps some configuration work, some re-training, and a little time investment. If so, then great – time spent shopping is no longer required, and your current investment manages to return a little more value.

It’s surprising how often this fairly straightforward set of actions are not set in place!

However… on the flipside, and perhaps just as often, firms will find that their current solution is no longer up to scratch and there’s little that can be done about that. But what is occasionally seen is a firm that will limp along just ‘getting by’ and ‘working around’ the limitations of the incumbent technology. Now that is often a real waste of time and opportunity, as every day that passes in this scenario is a day where your competitors – those embracing more suitable technology – are stealing a march.

So in this scenario, it’s just as important to engage with your current supplier to get their view and to discuss ways to migrate the data you have into the proposed new solution. Be wary if your current provider announces that they can in fact provide what you need, if you upgrade to version ‘x’ at a cost of thousands…! In this circumstance, it’s often very wise to go to market to view alternative solutions – if you’re going to be re-investing, you should be undertaking diligence to invest in the right solution and not just accepting a supplier default...

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

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 1. Apart from some very limited exceptions for ATE.

ML // October 2015

INTEGRATED, SECURE, MOBILE LEGAL MATTER MANAGEMENT. Search, store and share documents, track and manage matters, and collaborate with clients. All while staying connected to the UK’s leading Legal Know How platform, Practical Law from Thomson Reuters. firmcentral.co.uk

We know you get inundated with emails and marketing regarding Professional Indemnity Insurance; but how do you tell the wheat from the chaff: the wood for the trees? It can be frustrating.

WHY PAY MORE THAN YOU NEED TO?

DON’T MISS OUT! SEND YOUR COMPLETED PROPOSAL FORM TO LEGAL-UKPII@WILLIS.COM

Willis has EXCLUSIVE ‘A’ rated insurer facilities available for sole practitioners and firms with up to 10 partners.

*Law Society PII Survey April 2015

Over 50% of new clients applying to Willis for a quotation last year went on to place their cover with us.*

Willis Limited, Registered number: 181116 England and Wales.

Registered address: 51 Lime Street, London EC3M 7DQ. A Lloyd’s Broker. Authorised and regulated by the Financial Conduct Authority.

67901 PI SOLS Half Page Modern Law.indd 1

67901/09/15

As one of the leading specialist PII brokers for solicitors we understand the challenges faced by those managing a firm’s PII arrangements and continuously strive to deliver help, support and premium savings to our clients.

04/09/2015 14:59:54

The Views

Is Positive PEP a Positive Sign?

T

he majority of legal firms have now posted their financial performance for 2014 and the annual benchmarking season is done for another year. So what was the headline grabbing number that got reported time and time again?

Why, PEP [Profit Per Equity Partner] of course. Notwithstanding their size, many firms reported increases in PEP of 20% plus. Indeed our own NatWest Benchmarking Report recorded an average increase of 22% across SME sized firms in the UK. I suspect that many owners of law firms were delighted to secure a remuneration improvement significantly above inflation and entirely justifiable given the downward pressure on drawing levels that existed between 2008 and 2013.

But just how good is PEP as a true indicator of performance? When you get beyond the headlines you will find that many firms have achieved very little by way of improvement in Net Profit % and as such the suggestion is that PEP improvement is purely associated with increased revenue motivated by economic improvement.

However, there could also be a more subtle influence at play which is more closely linked with the challenges associated with succession than the positives of an improving business. The fact that many firms are supporting an ageing partnership group is not new news and nor is the the fact that many firms are struggling to secure new equity partners. As a result of this dynamic, there is an overall reduction in the number of equity partners and as such profits are shared across an ever decreasing population which artificially serves to inflate PEP. The use of PEP may be an early suggestion as to the longer term strategic challenges for a firm. Static or reducing PEP may well suggest that a firm has a healthy number of partners in place with active succession plans in play, thereby supporting a positive future. However a firm with increasing PEP may suggest that its partner group is shrinking and the longer term prospects for the firm are uncertain.

So whilst the PEP story gives an appealing headline, there may be a less positive undercurrent. And as was drummed in to me during my banking apprenticeship - it never does well to focus on one number in isolation.

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

25

Leading the way What do employers need to know about the new trailblazer apprenticeships?

A

s you may have read, the government is particularly keen to promote apprenticeships to all sectors of industry, including the professional services sector.

Apprenticeships are well established in accountancy, but relatively new in law. As from September 2016 new trailblazer apprenticeships will be available to the legal sector.

Having been successfully launched in 2013, legal apprenticeships have proved popular with legal services industry employers, and the apprentices themselves.

CILEx Law School, the biggest and longest established trainer of paralegals in the UK, now has over 180 legal apprentices with various employers.

The benefits to the employer of engaging a legal apprentice are well documented: they provide employers with an enthusiastic recruit who can be developed into the organisation’s culture and working methodology in a way that is not always possible with other employees.

Apprentices usually help an organisation meet its CSR requirements, and can bring a vitality to an organisation by introducing the perspective of a younger generation of worker. These benefits will all be retained when the new trailblazer apprenticeships are introduced.

For 2016 trailblazer apprenticeships will be available for paralegals, Chartered Legal Executives and solicitors. We expect most employers will be interested initially in the paralegal route. It will be relatively inexpensive to deliver (government will provide funding of two thirds of the cost of training) and will provide the reassurance to employers that their paralegals are tested to ensure they are competent and knowledgeable in their field of operation.

That form of quality assurance means that a new type of testing will be introduced, comprising a portfolio of evidence and what is known as a synoptic end point assessment. In short, apprentices will have to show their competency through various testing mechanisms. During the course of their programme, which will usually be two years, apprentices will also have the opportunity to gain CILEx Level 3 qualifications.

CILEx Law School, as part of the CILEx Group, has been in the lead with apprenticeship development and will be launching its paralegal trailblazer apprenticeship programme in September 2016. We expect take up to be significant, and will be speaking to employers in the run up to their launch to explain in detail how the scheme works.

Noel Inge, Managing Director, CILEx Law School.

ML // October 2015

Want fully packaged conveyancing instructions delivered to your firm? ... talk to Fitzalan Partners

Over 70 regulated solicitors and lawyers choose to work directly with Fitzalan Partners: Why? Through one of Fitzalan Partner’s multi-sales brands, we provide a means for our network of solicitors and lawyers to receive fully packaged and vetted conveyancing instructions.

We take away the hassle of trying to turn an enquiry into an instruction through our highly skilled sales team in London and ensure that every client introduced

by Fitzalan Partners is 100% committed to use your service.

Receive a healthy stream of conveyancing work Increase your reach to local and national home buyers and sellers No cost of client acquisition, no cancellation fees & no membership fees Stay in control of your own workload

“At Bird&Co Solicitors we’re proud to work with Fitzalan Partners. We’re both passionate about providing a great service to our clients at an affordable price. The process is straightforward and efficient. We consider Fitzalan to be one of our most important partners”

After several years of marketing know-how, experience and industry expertise, we like to think that we really understand what it takes to attract the right sort of client to our service.

With the multitude of changes taking place within conveyancing, it is not a coincidence why an increasing number of solicitors and lawyers are choosing to work with Fitzalan Partners.

Christopher Jeyes, Partner

No milestone reporting

Get in touch with PJ Singh on 0203 137 9599 or PJ@fitzalanpartners.co.uk to discuss how we can generate instructions for your business. www.fitzalanpartners.co.uk

Concerned about your partner’s motives?

The only way to do GREAT WORK is to LOVE what YOU DO - Steve Jobs -

Protect yourself with advice and support from Ralli, the number one Partnership Law firm.

Call 0161 832 6131 or email enquiries @ ralli.co.uk

We LOVE what we do - Laird -

rallipartnershiplaw.co.uk follow us @ PartnershipLaw

LAIRD www.laird.expert

The Views

Access to Justice… in work time?

T

his past week has seen news stories emerging crossing the British and European rule of law debate. A new ruling from the European Court of Justice stipulates that the time spent travelling to and from first and last appointments by workers without a fixed office should be regarded as working time.

So how will this ruling affect employers and employees?

The ruling came about because of an ongoing legal case in Spain involving a company called Tyco, who install security systems. In 2011, they closed their regional offices which led to many staff having to travel further afield for their appointments, causing the employees to work longer hours when starting and finishing from home, which contravened the objective of protecting the safety and health of workers, which includes the necessity of guaranteeing workers a minimum rest period.

This time has not previously been considered as “work” by many employers or indeed employees but this may now mean that many employers will be in breach of working time regulation rules in the UK, if this additional time is not included as “work”. Battle lines will be drawn on this issue I am sure. But what if this does have a significant impact on your ability to work and an employee then finds themselves having to pursue their employer at a tribunal?

Since 2014, it has been mandatory for employees to use the Advisory, Conciliation and Arbitration Service before lodging a tribunal case but the drop in the number of cases due to court fees was having an impact on conciliation.

According to Johnson, employers now are financially more tempted to get away with taking a claim to the tribunal level, while claimants simply cannot afford to make a claim.

The Government intended these fees to recoup some of the costs of running tribunals but evidence clearly suggests that the high level of charges is preventing people from making valid claims.

Is the intention still to restrict access to justice for all but those who can afford it?

Our FeeSafe After the Event Insurance product has been introduced to safeguard access to justice for anyone wishing to make a claim by insuring the tribunal fees and, in some circumstances, actually providing funding of the new hearing fees up to £950. For more information go to www. tribunalfees.co.uk Robin Selley, In-house lawyer, Box Legal.

27

It’s the service that counts What are the differences between a client and a customer and should law firms be recognising that there is a difference between the two?

P

rofessional advisors such as lawyers and accountants have historically referred to their ‘customers’ as clients. More recently, legal sector commentators and regulators in particular have referred to them as ‘consumers’ – which of those is correct and should law firms take interest?

In recent times many lawyers have reacted badly to the temerity of those referring to their clients as consumers, but it is not clear whether that interest is based upon properly thought out commercial reasoning. Key to the discussion may be the relative definitions, but probably more important is how do ‘customers’ view the situation and are they at all concerned?

Let’s start with the definitions. Definitions of a ‘client’ include reference to them being a ‘person depending on another’s patronage’; a ‘dependant’; a ‘hanger-on’; or a ‘plebeian under the protection of a patrician’. Definitions of a ‘consumer’ include reference to them being a ‘person who purchases services for personal use’.

When looking at the above definitions, it is not clear why lawyers would take issue with referring to their customers as consumers. If their customers were bothered by it, they would probably not be happy that their lawyers thought of them as dependants that couldn’t think properly for themselves and needed their lawyer to look after them.

More important should really be to treat customers as consumers, however that is defined or referred to. In reality, customers do have a choice of which lawyer to turn to if they require advice. They are more willing and able to research legal service providers and are less likely to be loyal to a particular firm. Lawyers should be doing all they can to demonstrate to the consumers of their particular services that they should obtain their services rather than the services of a competitor. That would not be achieved by potentially patronising prospective customers.

As a side note, it should be pointed out that I am an accountant that advises lawyers. I refer to my customers as clients; would my lawyer clients be happy if I view them as being dependants? Probably not, but I guess that they would be if I treated them as such. How customers are referred to should not matter; the service levels should.

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.

Noel Inge, Managing Director, CILEx Law School.

ML // October 2015

VERIFIED FEEDBACK assisting your COMPLIANCE AND MARKETING NEEDS! Brought to you courtesy of our sister company

62% of British consumers say they are likely to be affected by positive online reviews, especially if independently verified and reviewed before publishing.

Checkaprofessional.com provides clients with the tools to make an 'informed choice' in Legal Services. The site is free for those searching and there is no need to register, which means NO BARRIERS for prospective clients.

Obtaining feedback from clients who have used your services, will not only reassure prospective clients, but it will also provide the client satisfaction surveys required for compliance purposes.

ESTATE AGENTS MORTGAGE BROKERS LEGAL SERVICES OPTICIANS

ΔΔ ΔΔ

SOLICITORS COSMETIC SURGEON SURVEYORS HAIR & BEAUTY

ΔΔ ΔΔ

ACCOUNTANTS THERAPISTS DENTAL VET’S

ΔΔ ΔΔ

IFA’S IT

ΔΔ

0800 093 8414 www.checkaprofessional.com

Increase your profits through inCase™ mobile app technology

inCase™ was developed to deliver 5 key benefits to you: 1. Better client experience 2. Improve communications 3. Improve client satisfaction 4. Save significant operating costs 5. Support genuine 21st Century law firms

Call us now to benefit from inCase™

0161 410 0802

Or find out more online www.in-case.co.uk/modernlaw

The Views

Survival of the fittest Many legal businesses have technology to hand but don’t use it to full capacity before shopping around for a newer model. How do you know the difference between when it’s time to simply upgrade what you have and when it’s time for a complete overhaul?

Customer or client? And why it should matter to law firms

D

o you view the people who engage your services as customers or clients? The two terms are often used interchangeably, and to many people, they are indeed the same. In reality, however, they are very different and it is important that professional firms recognise and understand those differences.

T

he challenge with technology is that it is constantly evolving. Advancements in general are moving at incredible speed.

Anyone who reads my blogs will see some of the technology out there such as hover boards and “ambulance” drones… ideas that were barely but a dream a few years ago. So it is a challenge to know what technology is worth investing in for the future and what existing technology needs refinement.

To bring this back to the legal market, let’s take a quick look at a simple technological advancement that demanded a complete overhaul. Communication when I began my legal career was by post. Letters were drafted, printed onto letterhead and then sent to the post room for placing into an envelope, franking and distribution.

29

The one characteristic that both clients and customers share is that they are real people. People with a specific problem (or problems) that they are looking for your help in resolving. But that’s where the similarity ends.

The nature of the ‘customer’ relationship tends to be ‘transaction’ rather than ‘relationship’ based. For example, I am a customer of both Tesco and Waitrose, but a client of neither. My weekly shop is transactional.

Then came the revolutionary email. At first, email was something for us to use on a personal level. Although it didn’t take long for businesses to realise that here was a very effective method of communication that had massive benefits, not least of all reducing costs.

The very fact that engaging the services of a law firm is often a ‘distress purchase’ (people would rather not, but understand they have to) reinforces the transactional emphasis. As does the way that many law firms refer to ongoing work for clients as ‘matters’, as if it’s the specific issue or problem that is the key, rather than the individual.

On the one hand, there was the cost of having pre-printed letterhead; plain paper; printers; ink; post room staff; envelopes; postage; etc. all of which required significant cash. The alternative was email. Huge savings could be made in all of these areas but in time, some would be eradicated altogether. Of course, investment was necessary in efficient PCs and software but as a one off cost, the savings made would far outweigh the investment.

The ‘client’ relationship on the other hand is characterised by; • An ongoing relationship • Some level of ongoing service • Regular communication and/or contact • Keeping in touch • Taking a genuine interest in them as an individual.

Now let’s consider an upgrade. Case management systems are essential for any legal practice and with the software engineers developing their capabilities all the time, the best systems will automatically process tasks without any human interaction. Where firms look to adopt these “upgrades” or “bolt-ons” they will see radical differences. The efficiency and time-saving benefits created by this far outweigh the risks associated with the wrong task being processed (especially as appropriate checks will significantly lower any risk).

Both examples demonstrate the challenge as to whether to upgrade or overhaul. The decision can be made simpler by asking the simple question: “is the current technology ‘fit for purpose’ or not?” This question can be applied to a number of areas whether it be internal or external systems/ communications; integration; meeting expectations with clients and so on.

Many law firms struggle to offer a service proposition that encompasses these elements, which makes building long term client relationships tricky. Often that is due to firms operating in specialist ‘silos’ with little cross referral between specialisms or wider understanding of the clients whole situation.

In the financial services sector we work hard to build long term relationships and look holistically at all the individuals financial planning needs - establishing what is really important to them rather than just dealing with a single issue.

But even then there are only two levers you can pull to establish a real relationship. They are: 1. What you say 2. What you do.

Without doubt, the wrong decision would be to do neither.

By not investing in upgrades to the existing technology or overhauling it entirely, a firm is going to fall behind and places itself at risk of survival.

Clearly these must be aligned and have the client’s interests at the centre. When it comes down to it, it doesn’t matter whether you see the individual as a client of yours…it’s whether that individual sees themselves as your client in their mind.

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

Kevin Ferriby, Managing Director, Informed Financial Planning.

ML // October 2015

The Views

31

A ‘coaching’ culture

Agility and evolution

What are the most successful strategies for people management (at all levels) within a law firm and why?

What resources will be key for growth/success for your firm/team/clients over the next 12 months and why?

“W

e have great people”; people are one’s best (and only)

asset.

Every professional service firm relies on their people. The advice they provide and how they provide it is of great importance to every advisory organisation; but how do we manage that valuable resource?

Z

ebraLC™ has grown very quickly since its inception in December 2012 and is unique in the UK legal sector marketplace. From inception as a ‘one man band’, the business has grown to a thriving network of 45+ consultants and an employed team of 8.

Having worked for over 35 years, I have personally experienced many styles of people management: some good; some not so good and some honestly dreadful. What makes the difference between the good and the bad and how can we create an environment where people can flourish ensuring clients are retained and attracted to the firm?

Cascading knowledge and vision This next year, our greatest challenge is to cascade the knowledge and vision from myself as Founder and Managing Director, to a corporate structure and employed team to share the journey and take the business to new levels.

I should declare that, as a Professional Indemnity Insurance broker, my involvement with Law firms has mainly been focussed on helping to create cultures of openness and trust. This culture is important to ensure management are quickly made aware of issues that may need to be notified to insurers. This one cultural quality can greatly improve a firm’s insurance costs, reduce the exposure to excess payments and reduce the chance of reputational damage.

This is easier said than done: many firms may desire this cultural efficiency, but it’s not easy to create and maintain it.

With the support of the core team, the business now has greater clarity around its vision, mission and values, and also a structure that will enable the business to continue the pace of growth (c.100% p.a.).

The culture of any business starts with those in a leadership position. We can all remember inspirational leaders. During a crisis, they have to be very direct and “transmit” the message to their employees. Most of the time, however, firms are not in crisis and we need a style that engages all members of staff. Leadership requires excellent listening skills, integrity, openness and establishing a no (or at least a low) blame culture. Lack of proper supervision has been the cause of many claims against lawyers. If we need help, we need to have the courage to ask for it. In the well-run firms it will take less courage to ask; in the poorly run firms it will take great courage. We have to create a trust and collegiate atmosphere; equally, every member of staff needs to feel their work is important. Having staff that want to work for the firm rather than having towork can transform performance. As such, I believe a coaching culture is to be encouraged. The challenge for all of us is finding time to create this culture and yet by doing so we may well find we gain the time we are so desperately looking for.

Colin S. Taylor, Executive Director, Willis.

Business agility Given the continuing changes within the UK the legal sector, as a business supporting the sector, we have to be able respond quickly. Service lines and product delivery continue to evolve, and as such, the need for business agility and flexibility is ever strong. This is achieved through a continued ethos of evolution and adaption for change within the organisational structure, personnel, and infrastructure.

Positivity - The importance of our people and their engagement People are critical to our success. One of our most significant challenges is around the diverse network of people that work for us.

The next 12 months will see us driving a staff engagement programme. Our collaborative cloud based Zebra Hub is fundamental to this for knowledge share and social engagement.

Technology Technologically driven innovation remains a key driver to our success. Our business has an agile operational platform. Key KPI’s were to get to a paperless audit and a business collaboration platform. We reviewed McKinsey Institute research on how to facilitate online project management and business social networks. Our commitment to leading edge web based software has achieved this with alacrity and the next 12 months will see this develop further. We have also engaged a technology business based in Copenhagen. Its’ about engaging the best for the business and if this means liaising with a niche business abroad, then that is a worthwhile investment.

Zoe Holland, Managing Director, ZebraLC™ .

ML // October 2015

Thursday 19th November

The Hurlingham Club, London Sponsorship Enquiries: Martin Smith | martin@charltongrant.co.uk Event Enquiries: Ellie Campbell | ellie.campbell@charltongrant.co.uk

01765 600909

www.modernlawawards.co.uk

Award Categories * Law Firm Of The Year * Chambers Of the Year * ABS of the Year - 1 - 25 employees * ABS of the Year -26 - 100 employees * ABS of the Year - over 100 employees * Lawyer of the Year * Non Lawyer of the Year * Team of the Year * Rising Star of the Year * Innovation of the Year * Entrepreneur of the Year * Best Use of Technology * Business Development Professional of the Year * Client Care Initiative of the Year * Outstanding Commitment to Training * New Entrant of the Year * Best Marketing Campaign of the Year * Supporting the Industry 1-25 employees * Supporting the Industry 26+ employees * Outstanding Achievement Award * Lifetime Achievement Award

Congratulations to all those who have been Shorlisted

M akin D ixon Solicitors Ltd

Delivering Excellence

Reassuring your clients with a human voice is no longer a luxury, but a need We assist law firms in maintaining high client services levels.

We ensure all of your calls are answered quickly and efficiently by our virtual switchboard team of alldayPA staff.

call: 0345 056 1077 or visit: alldaypalegal.com

The Views

The new business solution What is the most effective marketing strategy for increasing client conversion rates in a modern law firm and why?

W

ith the rise of Smartphone’s, social media networks, and new technologies such as the Apple Watch and Google Glass, we are continuously receiving a bombardment of information in every aspect of our lives, and this accelerated culture has turned us into restless human beings.

It goes without saying, as a firm competing in the 21st century, you must be actively invested in advertising and marketing strategies to promote your legal services. Your call-to-action must entice and your method of contact must be definite. Once you’ve successfully gained the attention of your potential clients, your next steps are vital to the status of the business relationship.

35

Occupational Disease Claims - A golden goose or a dead duck?

T

he significant investment in the legal sector in respect of occupational disease claims, particularly noise induced hearing loss, was thought by many to be the “golden goose” that would replace losses from the introduction of fixed fees in personal injury work. For many, that investment is yet to pay off and the operational and financial issues involved in dealing with these claims is now impacting on profit and even business viability.

This year, Citadel Law has advised on unprecedented instructions for operational analysis and WIP valuations revisiting WIP valuations in M&A deals. The viability of running these claims is being questioned and we are advising firms in run off, turn around and sale of their caseloads.

WIP valuations have been inaccurate, cash flow forecasts have failed to materialise, claims have poor prospects of succeeding and many are now considering cutting their losses and exiting the sector.

When you invest in legal advertising, your call-to-action can be seen around-the-clock and not just when your firm is open. So, when a potential client contacts your firm out-of-office hours, who will be there to actively answer their enquiry?

So what is going wrong?

Our findings demonstrate that the fundamental issues key to running these claims are lacking the basic ‘knowhow’ of competently risk assessing: • Date of knowledge and limitation • Breach, causation and value.

People who are seeking legal advice or counseling are often in stressful and vulnerable situations and require an immediate response. A large proportion of these individuals will choose to contact your firm by phone as real-time contact is more efficient than email; it’s surprising how many lawyers and attorneys will screen their client calls with voicemail.

Robust cash flow forecasting is non-existent and ailing disease caseloads requires expert resource to reduce business risk. They are costly to investigate and represent a professional indemnity risk for those without expertise.

The result is a sector overwhelmed with claims that have not been run proficiently which may be future professional negligence claims.

alldayPA’s latest research revealed the legal sector is the worst voicemail offender. Letting clients go through to voicemail damages both your personal and corporate reputation. Whereas, having a human voice on-hand to answer client calls demonstrates proposition and helps to increase acquisition. The research found 88 per cent of the people calling your firm will not leave a message if their call goes unanswered. Instead, these callers will move onto the next available firm on their list. If you want to convert a potential lead into a client, you must be there to answer enquiries around the clock.

Financial and human capital The financial and human capital required to make occupational disease claims profitable cannot be underestimated. A reliable work source, expert fee earners, robust risk assessment and a workflow are fundamentals that often lacking. Robust financial and operational management information must provide clear visibility to the value and risk of the work.

Today’s ‘connected’ client wants to speak to somebody who can deal with their query immediately. As clients become less patient, they no longer want to leave a voicemail message and we are seeing a backlash towards the firms that overuse the outdated technology. The most effective marketing strategy for client acquisition is the human voice 24 hours a day, 7 days a week. Smart telephone answering solutions are a great business solution to exceed customer expectations.

Jasvinder Jhumat, Head of Corporate Business, alldayPA Legal.

Overleveraged and overwhelmed?

Unfortunately, the effect is a sector overleveraged and overwhelmed, with the following characteristics: • Restricted cash flow • Nervous funders • Litigation funding growth as banks won’t extend facilities • Under settlements • Professional negligence.

The big financial challenge With hefty cash flow and capital requirements, we are seeing WIP and capital lock up causing significant strain, with questions as to whether this work is cost effective and whether investments are safe. As to which are the law firms and investors who will emerge as winners and those that will find themselves having backed a “dead duck”?

Only time will tell…

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

ML // October 2015

36

The Views

Time for a change?

Many legal businesses have technology to hand but don’t use it to full capacity before shopping around for a newer model. How do you know the difference between when it’s time to simply upgrade what you have and when it’s time for a complete overhaul?

W

hen technology is more frustrating than useful, it’s tempting to make the decision that it’s time to change. We all have phones, TVs and even cars that are loaded with features that we don’t bother with. As long as they perform the functions that they were intended for, we tend to be happy.

Technology in business can be similar. Sage is a great software example; most SME’s use just a fraction of its functionality, although that’s normally sufficient for their accountancy requirements. It’s good to know that there are other features available as your business grows.

But it’s not always the technologies fault. There is an IT acronym PICNIC, which stands for ‘problem in chair, not in computer’. It’s easy to blame technology for not working properly but does the user know what he’s doing?

Full and clear training for everyone using a system is vital. Most systems have loads of shortcuts that are often only discovered when you’re actually shown. IT staff often assume that users have the same knowledge of these shortcuts and techniques. A subtle blend of someone bilingual in English and Technology is required.

We have learnt over the last few years that innovation in the technology world moves extremely fast. Modern systems claim to be ‘future proof’ insofar as the door is left open to enhance functionality, connect to external systems and upgrade easily. Many businesses have seen the benefits of cloud technology. Why try to run servers, which are quickly out of date, underpowered or unreliable and bring worries of crashes or data loss? Moving to a professional cloud hosting has taken away all these worries, as they will have significantly bigger and more reliable servers. Updates are important too. Many systems will do this automatically but sometimes this is down to the user and too often pop-up reminders are seen as an inconvenience and shut down.

A brand new system, unless handled exceptionally well, can be a very time-consuming and disheartening operation.

Meticulous planning, plentiful clear communication and rigorous testing are essential. So if the technology is purchased wisely, staff are trained correctly and the system is updated regularly it should be a long time before a complete overhaul is required.

Nik Ellis, Managing Director, Laird Assessors.

Collaboration: Not just post-it notes and highlighters

W

hen lawyers obtain input from others on a document, the presence of highlighters, post-it notes and sticky arrows is but a certainty. In the world of the Internet, and the ubiquitous presence of mobile devices, those manual forms of content sharing should be extinct. Especially amongst lawyers: they are not.

While it is easy to point the finger at lawyers who avoid technology like a vegetarian avoids meat, truly effective technology that is both commensurate with traditional legal practice methods, and client consumption styles historically has been wanting. That has now changed.

As a practitioner, you want to ensure an effective delivery of service and client engagement. To do that it is important to understand how your clients operate. A firm’s traditional instructive approach can alienate and frustrate some procurers of legal services because it does not address how they personally consume content.

Social media is a great way to learn how people consume information. Likes, dislikes, tags, mentions, invitations, notifications are all part of our daily lives when sharing everything from a cat video, to reading an email from your old aunt who just figured out how to make smiley face icons.

It’s more than that. It is real time communication, small chunks, instant feedback, transparency in where things are at etc. The legal profession will adopt a more social media inspired micro-transactional approach to service delivery...because that is what people want. Even those big files, like that three party M&A deal with a syndicated loan, will need to incorporate modern content sharing principals into the transaction.

Paying attention to small companies that are being creative is essential for you firms survival. Companies such as Beagle (Kitchener, Canada www.beagle.ai) create technology that leverages how people want to work, as opposed to forcing them to work in an uncomfortable manual way. Another example is TurboPatent from Patent Navigation Inc. (Seattle, USA www.patentnavigation.com) which uses creation and sharing technology to address the nasty patent process.

Take the time to learn about the fantastic tools out there.

Stand out from you competition by engaging with your clients in current and relevant ways. Finally, take the concept of status quo and put it on a shelf....and leave it there, for good.

Cian O’Sullivan, Top Dog and Founder, Beagle.

ML // October 2015

The Views

Facing up to fracking

H

ydraulic fracturing (fracking) is the technique of drilling down into the earth and injecting fluid (a mixture of water, sand and toxic chemicals) into the ground, at a very high pressure, in order to fracture shale rocks to release the natural gas and oil inside and let it flow out to the head of a well.

By drilling horizontally into the rock layer, fracking allows drilling companies to access hard to reach resources of oil and gas and possibly shale gas; securing energy supplies which will significantly contribute to the UK’s energy needs in the future.

The Government have already licensed more than 37,000 square meters of land for exploration, constituting about half of the acquired land in Great Britain. The industry remains committed to pursuing shale gas in Britain, with the Government looking to grant licenses for energy companies to explore up to 65% of rural Britain in the search for gas.

But there are environmental concerns with fracking; the chemicals that are used, earthquakes and subsidence, all of which are causing potential buyers to pull out of the purchase after discovering that fracking could take place nearby.

And it’s no wonder when property experts are warning that people who live in and around the drilling sites could lose up to 30% of the value of their homes and potentially cause the housing market to collapse in parts of the country.

If property prices were to decrease by 2% in these areas then the cost to the UK economy could be around £75 billion. Other property experts have raised the fear that the price could drop as much as 30%, the same amount that homeowners residing near the proposed HS2 railway line are faced with.

Recently, the Government report into fracking revealed that they estimated a 7% reduction in the value of property within a mile of a drilling site. The outcome remains to be seen, but it is apparent that there will be an impact on the valuation of property near a fracking site. With the risk of earthquakes, subsidence and an exposure to chemicals it’s advisable to check any property you are purchasing isn’t near a site earmarked for fracking.

Erica Willmott, Marketing Assistant, Conveyancing Data Services.

37

Three crucial concepts What are the most effective strategies for client relationship management and business development in a modern law firm and why?

T

his is one of a series of interesting and exciting questions that Modern Law are asking their experienced lawyers and experts. This particular question underlines the importance of three key business concepts that law firms in the UK and world-wide are or should be grappling with.

• Customer Responsiveness (CR) A law firm provides a service, primarily to its external customers who are either individual members of the public (claimants) or, alternatively, insurers, representing the defendant. The lawyer’s responsiveness to either customer is judged in terms of accessibility (by telephone, letter, email, face to face contact), style and effectiveness of communication, and timeliness and outcome of the lawyer’s interventions.

• Continuous Process Improvement (CPI) What is the culture of this law firm? Does it look at the many, varied processes (legal, personal, medico-legal) which operate? Does the lawyer and, as importantly, the law firm management, put a high priority on continuous process improvement as a key business driver?

• ‘Internal’ Customer Responsiveness (ICR) In the judicial system there are several professional internal customers with whom the lawyer interacts and ‘does business’ - these include experts (medical and other), other lawyer’s, barristers, court administrators and the judiciary. As with the first concept, customer responsiveness, the lawyer needs to be accessible, efficient and an effective communicator with his ‘B2B’ (business to business) or ‘P2P’ (professional to professional) colleagues.

The three concepts outlined above are crucial to a successful law firm. They are an integral part of the two overriding belief systems or business strategies called ‘Therapeutic Jurisprudence’ (Wexler, 1990) and ‘Total Quality Management’ (Oakland, 1988; Koch, 1991), which I am currently developing in the UK and collaborating with the University of Stockholm.

Watch this space for more detailed information and practical tips on utilising these concepts even more effectively including an assessment tool that assesses where your firm is on the Therapeutic Jurisprudence/ Total Quality Management dimension.

Dr Hugh Koch, Chartered Psychologist and Director, Hugh Koch Associates LLP.

ML // October 2015

Get Your Document Process

On The Right Track Concept

XaitPorter is a document co-authoring solution that enables you to produce documents more efficiently

Meet us at Sketch

Draft

Assignment

Sections

Tasks

Layout

Revisions

Roles Groups

Permissions

Import Comm Workflow

Documents

Outline

www.xait.com

Template Email References

Revi Manual F tti

Citadel Law –Focusing on the things that matter to you When considering the value and risk management of a PI firm, we know that it is important to you to talk to a successful, experienced and trusted advisor Advisory services for the PI sector t

Identifying Areas to Increase Profit and reduce Cost to the business

t

Improvement of Financial Performance and Cash Flow Forecasting

t

Risk Management and Technical Progress of PI Cases vital for professional indemnity and legal expense insurance risk management

t

Assessment of your Profitability

t

WIP and Fixed Recoverable Costs Toolkit

t

WIP Valuation and Due Diligence for Bank and Investor Funding

t

Benchmarking of Performance in the PI Sector

The Citadel Law client experience "Citadel Law have helped us up skill our serious personal injury department. When the traditional approach would be to recruit a highly experienced lawyer in-house, Citadel came in, assessed, prioritised, took action and reported back, whilst simultaneously delivering training, providing case plans and white-labelling work so that we recovered a proportion of their fees. As a result of our collaboration with

Citadel we have reviewed systems and processes, upskilled a number of case handlers within our team and improved the risk management of cases, financial performance and cash flow forecasting. Lesley is able to inject structure and positivity into a team, pulling them together and empowering them to achieve. Citadel provides a commercially viable and eminently practical solution in an ever-challenging sector."

Joanna Kingston-Davies CEO, Lees Solicitors

Our approach Personal injury lawyers work hard at what really matters to their clients. What matters to you matters to us. We understand that your priority is to get the best possible outcome for your injured clients. We are committed to helping our law firm clients achieve their aims. In terms of areas of your business to be improved, we can help you pinpoint quickly where profit improvement lies and give you confidence that your clients are receiving the best possible service. Our clients have always been the kind of lawyers who really care and who are constantly looking to increase their expertise so that both your law firm and your clients prosper.

With offices in both Manchester and London, and national coverage, our law firm clients range from high street to top 30 law firms. We are dedicated to driving innovation, insight and value in the PI sector by helping you to improve your operational and financial understanding and performance; giving you quality assurance in the funding and risk management of your PI work.

Our approach is simple. As a specialist law firm we place our clients’ business needs first

For information about our people and our services, please visit: www.citadel-law.com Contact Telephone: 0161 457 0285 Email: lesleygraves@citadel-law.com or enquiries@citadel-law.com

Redefining the lawyers who make a difference.

The Views

39

Leading the way

Understand your offering

What are the most effective strategies for client relationship management and business development in a modern law firm and why?

Will commoditisation kill off specialism in legal businesses and what impact could this have? Or, will clients always need specialist advice?

E

arlier this year we asked 122 inhouse counsel and 160 law firm partners - 85% of law firms interviewed were in £22m+ revenue bracket - for their views on the trends impacting the legal landscape. Of particular interest and practical use to modern law firms when it comes to business development are the top factors identified influencing in-house counsels’ decisions to instruct a new firm or to keep an existing firm.

Misalignments between buy and sell-side Both law firm partners and in-house counsel agreed about the importance of quality of work, technical expertise, communication and responsiveness. But in other areas, law firms underestimated the importance of their offering to clients, revealing some interesting misalignments.

Those areas most underestimated by law firms were: • Collaboration with other firms • Diversity • Providing training • Senior partner involvement • Use of technology.

Use of technology As a leading provider of legal solutions to both in-house counsel and law firms, ‘use of technology’ is an area which particularly interests us at Thomson Reuters. In-house counsel rated technology use as an important factor in instructing a new law firm, but they also indicated that law firms don’t perform well in this area.

Our report showed a typical law firm technology budget of £625,000 (compared to £7-10,000 for in-house), so it’s clear that law firms are spending on technology. For example, they are more likely to have implemented document, matter and case management systems. Perhaps what’s missing, then, is spend on technology that directly and visibly benefits inhouse counsel and helps them prove ROI? Differentiation The report also highlights that law firms are still struggling with differentiation. Could the use of technology be one route to achieving greater differentiation; particularly as in-house counsel rated technology and innovation as the second most significant factor impacting the future of the legal sector?

The research offers useful insight into what clients want from their law firms, as well identifying areas where inhouse counsel expect their suppliers to keep up, or even lead the way.

Samantha Steer, Head of Large Law, Legal UK & Ireland, Thomson Reuters.

T

he debate about commoditisation in legal businesses is a confused one, but the key word is business. In many parts of the legal sector, commoditisation is shorthand to describe changes to the way that legal businesses function.

Process efficiency, the use of technology and the increasing role of non-lawyers all challenge the traditional model of delivering legal advice (specialist or otherwise) but they are not, in themselves, commoditising legal services.

The harsh reality is that, in order to compete effectively, all businesses have to understand what their customers need and then develop their own proposition for fulfilling this.

A more transparent legal market and the growth of online reviews and social media mean it is hard to credibly describe any legal service as a homogenous product that can be commoditised; so it seems unlikely that specialism in legal businesses will be killed off anytime soon. The challenge for some will be striking the balance between maintaining the in-house expertise needed for specialist advice in niche areas and delivering cost-effective solutions for those clients whose needs are more straightforward.

In residential conveyancing, many clients highly value other parts of the customer proposition, such as speed and service responsiveness, alongside professional competence and advice. It doesn’t take away the need for specialist advice when circumstances dictate; but for many clients it’s hard to justify paying to get from A to B in a Hummer when a VW could do so in the same time, for less money and considerably more comfortably! The trick is knowing when to fire up the Hummer.

Networks of specialists have played a huge part in the history of the legal sector. Late 20th century growth in Law firm size moved the sector away from the Cottage Industry co-operatives of traditional partnerships to a degree of industrialisation, resulting in specialist areas within larger law firms. In the Information Age, it’s easy to see that the success of legal businesses will depend as much on how they organise service delivery as how they source and provide appropriate specialist advice.

The decision on whether highly specialised advice originates within the business or is contracted in from increasingly more specialised boutique firms, will depend on the choices made by firms about the customers and proposition they choose to pursue.

Mark Montgomery, Customer Strategy and Marketing Director at myhomemove.

ML // October 2015

Triton Global Limited One provider. Many services.

> Multi-disciplinary services for the insurance sector > Outsourced claims

> Specialist loss adjusting > Legal services to the insurance sector*

www.triton-global.com | info@triton-global.com Triton Global is an independent business, owned by its employees *Licenced as an ABS by the Solicitors Regulation Authority SRA no.597577

We’ve been endorsed by the Law Society for the provision of accountancy services to law firms throughout the North of England Find out why at www.armstrongwatson.co.uk/legalsector

Andy Poole, Legal Sector Partner Email: andy.poole@armstrongwatson.co.uk 07828 857830 Armstrong Watson Accountants and Financial Advisers is a trading style Armstrong Watson Audit Limited is registered to carry on audit work in the UK and Ireland by the Institute of Chartered Accountants in England and Wales.

Registered as a limited company in England and Wales No. 8800970. Registered office: 15 Victoria Place, Carlisle, CA1 1EW

The Views

New light on the “Minimum Terms”

A

lot of legal work tends to be repetitious and rarely involves actual new thinking. The same analyses and formulae tend to be trotted out from one transaction to the next. But what happens if there is an underlying flaw (mistaken tax advice is the most common example usually given) which is repeated numerous times so as to vitiate the work done for multiple clients.

When those clients sue, is there one claim or many? The Minimum Terms lay down that the test is, whether claims arise from ‘similar acts or omissions in a series of related matters or transactions’.

The ability of insurers to aggregate multiple claims has been widely debated in professional indemnity circles for some time, with some wide variances in practice and treatment.

Such matters are usually kept behind closed doors (via arbitration). A recent case has given an opportunity for the courts to scrutinise this theory and practice.

In AIG v. OC320301, 200 investors in separate property schemes in Turkey and Morocco brought a professional negligence claim against a defunct law firm (TILP). TILP had acted as the escrow agent for each of the investors and in each instance was accused of negligently paying out the sums so held. The investors lost £11m.

Liability having been established, the court had to decide whether all the claims could be aggregated as ‘one claim’ for the purposes of insurance cover. This would have made a big difference financially: • If the investors’ claims were aggregated, only £3m cover would be available, as that was the total level of PI cover held by the firm; • If each case was treated as an individual claim, something nearer to £11m would be available from the PI insurers to meet the investors’ total losses.

The Court ruled that the claims should not be aggregated: whilst the acts or omissions were similar, they were not in a series of related transactions because the terms of the transactions were not conditional or dependant upon each other.

To the surprise of many observers in the insurance world, this judgment has stepped back from the wide interpretation that has been applied by insurers in a number of cases. That broader approach can leave law firms with a significant insurance “gap” at the top of its cover, but conversely a firm may then have to fund multiple policy excesses. Insurers are likely to scrutinise “block notifications” that have been accepted practice over the years, particularly near renewal time! Time for a review of the Minimum Terms?

41

The perfect fit

U

pgrading or changing software can be a daunting task and we meet many law firms that are using outdated technology that is having a negative impact on their business.

If you are considering changing your software, it is important to properly scope and plan your requirements.

Each firm will have individual requirements, which should be listed and given an ‘importance’ score. It is important to make sure this list is extensive and includes all areas of the business and areas your current software covers, as well as those it doesn’t.

Once you have this requirement list you can review it against your current software, an upgrade to your current software and new software. Each software should be given a ‘fit score’ based upon the requirements list, where a software fully meeting all requirements scored 100% and so on.

Once you have these scores you will easily be able to decide between keeping your existing software, upgrading or replacing, e.g. keeping existing scored 65%, upgrading 75%, and new 90%.

Many firms charge for upgrades so you will need to factor this in to your decision making, for example, if your fit score shows that upgrading received 75%, and keeping the existing software 65%, but the cost of the upgrade is £100,000, you will need to decide if that extra 10% is worth it, or do you hang on for a few more years until the gap widens?

Redbrick Solutions have never charged for upgrades or training, they believe that all clients are entitled to the latest technology as soon as it becomes available. They release 4 upgrades per year made up mostly from client requests. This ensures the software never gets old, future proofs the law firm and means that the software is always a 100% ‘fit for purpose’.

Ensuring your firm is using the software to it’s full capacity is another issue, and usually comes down to training. What the exercise above sometimes highlights is that the current software does actually have the required functionality, it just isn’t being utilised. In this case, you can contact your software provider for further training.

Some other providers charge extra for training which can mean that firms ‘skimp’ on training at the outset due to budget restraints, this is never a good idea, it’s like buying an expensive new car but never putting fuel in it!

Jo Hodges, Director of Sales and Marketing, Redbrick Solutions.

For more information please email jhodges@ redbricksolutions.co.uk

David Simon, Chairman, Triton Global.

ML // October 2015

42

The Views

Database driven documents

Legal Pricing: Stop Using The ‘C’ Word!

Getting close to deadline and still chasing content? Still missing content from key contributors in a different timezone?

Challenges with formatting? Is this a familiar situation?

“This is a commodity business. In a commodity business, you have little or no control over pricing. The only thing you can control is your costs.”

T

hese are common challenges when creating any time sensitive documents with multiple contributors that many legal organisations face in their day-today operations. A key reason are the challenges inherent with a file. Using a solution where contributors need to check-in and check-out content (a file) or use email to distribute tasks and content is inefficient. Why? The Word document needs to be broken down into several sections and thereby several files. This again leads to your team working in a fragmented way and creates challenges for the project managers to keep track of progress. Another agonising challenge with files is versioning and formatting issues.

A survey by IDC in 2012, states that information workers waste a significant amount of time each week dealing with the variety of challenges related to working with documents. This wasted time costs organisations more than $19,000 a year per information worker1. This cost is significant, and even with minor document production improvements, a company could make a real impact on their organisation.

Producing documents, in addition to managing and maintaining content in and across documents is a challenge that most organisations face. Organisations rely on manual processes and document management solutions to maintain content and ensure consistency across the enterprise. For many organisations, content is the core delivery of their services, it illustrates and proves their value proposition.

Traditional word processors, such as Microsoft Word are essentially advanced typewriters. Word was originally made to replace the typewriter. Today, a typical word processor has functionality for text editing, spell-checking, reviewing and other layout manipulations.

Document co-authoring solutions allow documents to be edited simultaneously by multiple contributors. True collaborative solutions are built on databases, and allow for different sub-sections of a document to be edited in parallel. Basically, everyone can work on the same document at the same time. Automatic formatting, layout and numbering ensure writers focus solely on content.

These solutions enable contributions from multiple locations, while managers have complete control of the production process from day one. Hence, organisations increase the quality of their content and can drastically reduce document production time waste.

N

o, these are not the words of a besieged law firm managing partner but those of a misguided Wall Street analyst making a comment about the losses at U.S. Steel during the first quarter 2013.

This analyst’s view sadly and quite erroneously has much in common with countless law firms, their clients and more than a few commentators and consultants; the belief that the delivery of legal services is becoming increasingly commoditised; a development that is intended to and has the effect of reducing prices.

In business literature, commoditisation is defined as the process by which goods and services that used to be distinguishable in terms of attributes (uniqueness or brand) become simple commodities in the eyes of the market or consumers. Critically, it is the movement of a market from differentiated to undifferentiated price competition.

The ‘C’ word strikes fear into the heart of every partner trying to negotiate a decent fee. It comes with connotations of ready accessibility from other providers, all of whom will do it as well as you, low barriers to entry, low value, filling in a few standard forms and therefore low price. For all lawyers and their clients, commoditisation is synonymous with heavy discounting.

The problem has its origins in the conflation of two completely different concepts; efficiency/effectiveness on the one hand and genuine commoditisation on the other hand. Differentiation potential is not confined to large firms or high value matters. Pricing and service level options can be used very effectively, in isolation or in combination to create significant visible differentiation around wills and powers of attorney, divorce, pre-nuptual agreements and residential conveyancing.

Almost anything is capable of differentiation. If this were not true, how is it that Fortnum & Mason can charge £5.95 for a pot of strawberry jam compared to £0.29 at Tesco? Answer - multi-faceted but maybe the name for starters - ‘Tesco Everyday Value Strawberry Jam’ doesn’t have quite the gravitas of ‘Highgrove Organic Champagne Strawberry Preserve - cooked gently by hand in open copper kettles’.

The firms that differentiate themselves most effectively are those that have identified aspects of their culture that make them superior service providers in their area and then they communicate those advantages to the market in a consistent, compelling and memorable way. There will always be people willing to pay for the Highgrove Organic Champagne Strawberry Preserve provided you give them good reason to do so. If you don’t give them reason to do so, you will never command anything other that ‘Everyday Value’ prices.

Kris Sæther, Chief Commercial Officer, Xait.

Richard Burcher, Chairman, Burcher Jennings.

1. Source: http://wwwimages.adobe.com/content/dam/Adobe/en/products/ acrobat/axi/pdfs/bridging-the-information-worker-productivity-gap.pdf

ML // October 2015

The Views

Five Quick Tips for Solicitors to Increase Focus and Relieve Stress

F

eeling overwhelmed? You’re not alone. Solicitors suffer nearly quadruple the depression rates of other professions. Stress and anxiety within the profession are well documented.

Increasingly, the demands of the workload are catching up to solicitors from firms of all sizes, contributing to depression rates, and burnout.

While there are no quick fixes for the depression epidemic afflicting solicitors, there is some relief to be found through the practice of mindfulness. Below are five quick tips (courtesy of Jeena Cho, author of The Anxious Lawyer) solicitors can use to focus their thinking in the moment and boost productivity.

1. Start with your priorities - not someone else’s Do you spend your morning hours trapped in your Inbox?

When you’re responding to emails, you’re allowing other people to set priorities for you. Carve out no-email time in the morning when you’re most productive to do work that requires focus.

2. Set your intention the night before Before you go to bed at night, set your intention to do whatever it is you want to accomplish the next morning. It’s helpful to have reminders, such as placing the file you need to work on in the morning on the desk before you leave for the day.

3. Identify. Prototype. Test. Rinse. Repeat.

Identify the thing that makes you unproductive. This can be anything from constantly checking Facebook or Twitter to your secretary interrupting you every 20 minutes. Come up with “prototypes” or potential solutions and try your ideas as quickly as possible. The idea isn’t to get it right or to do it perfectly. It’s all about experimentation. Gather data what worked, what didn’t, what could be improved?

One solicitor shared that she was getting distracted by staff needing attention. In order to reduce interruption to her workflow, she put a timer on her office door. When she needed a block of time to work, she would set the timer.

Whoever visited her office could see that this was her “no distraction” time and knew when they should come back.

4. Think creatively and have fun!

Shut off bells and whistles. Things that pop up on our desktop or makes noise pulls us away from what we’re focusing on. Consider turning off auto-notifications on your computer as well as your Smartphone.

43

The race to re-mortgage is on, are you displaying up to date information?

T

he Council of Mortgage Lenders recently reported an increase in householders searching for mortgage deals. During June, 31,600 changed their mortgage deals, a 30% increase from the figure reported in May being 24,300.

It is now a more realistic prospect that a rate rise is on the horizon, being forecast for later this year or possibly the beginning of 2016. This has driven a desire for homeowners to lock into a competitively priced fixed deal prior to the rate rises, as previous experiences of high rates are fresh in the minds of those who suffered.

Since the last housing boom, the lending market has changed significantly and many are left with scars from this. Now those searching for loans are often frustrated by the amount of time and hurdles they are having to jump over to secure a roof over their heads. Many (aware of being bitten previously) are twice shy, so trust and confidence, along with respect is an issue, not just for those whom they are looking to lend from, but all parties involved in the financial and buying and selling process.

Given what has been experienced in the past, we are now witnessing horror stories emerging daily, with fake lawyers, previous tales of rate fixing and deals being made under the table, like everything else, prospective clients are demanding transparency.

Those who are pro-active in business and understand that times have changed, offering clients a tool to obtain the reassurance they need, will be reap the rewards from clients who warm to their openness and value their need to learn more about the service they provide, the quality and transparency they wish to share.

Verified testimonials will not only show clients your reputation, practising history and quality of service you provide, but also help with the customer surveys required for compliance needs.

We help prospective clients make a more informed choice in QUALITY - NOT PRICES! Lisa Beale, Head of Checkaprofessional.com www.Checkaprofessional.com or call and have a chat with us on: 0800 093 8414

5. More fun, more play Fun, play, relaxation and rest are key components for us to perform at our peak. You could be at the office for 16 hours but there is a point of diminishing returns. We can’t constantly be on. We can’t constantly be connected.

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

ML // October 2015

The Views

Don’t be invisible

S

uccessful management of staff is fundamental to your business.

It is the most important task that a manager should learn very early in a career. How you treat staff and manage them has a direct impact on the work they do, the commitment and level of compassion they put into their job, and ultimately the end product.

If a person isn’t truly valued then they wont go that extra mile for you or that client - and you will not know what’s happening or not happening until those clients leave, or complain or you notice all is not quite right.

Appraisals; I prefer to call them one-to-ones, should be undertaken at least once a year. Although you may want to keep a closer eye on those new staff members to make sure they are settling in well and learning their role properly.

It is also vital that you give staff the chance to set goals and give them the opportunity to raise things in private, which otherwise they may not do.

You should always: • Give staff time to prepare for the meeting by giving advance warning.

• Always book a private room or a place away from prying eyes where you can be certain you are not overhead so that you both may speak freely and without concern.

• Ask them to tell you how they think they are doing in their job and which parts of their job they like/dislike.

• Ask whether they need any equipment or training to help them in their role.

• Ask how they feel about the company and if they feel valued.

• If you want to go that extra mile for your staff, create personal development plans for each of them.

• Take the time to get to know your staff so that you can identify strengths and weakness for each.

• Always reward good performance whether that’s in public or private. Recognition is a powerful tool.

• Always be firm but fair.

Aside from the above, I believe you must be visible, approachable and able to communicate effectively. Don’t hide yourself away in your office, your staff need to see you and feel part of the mix, otherwise you run the risk of being labeled an “Ivory Tower Leader”!

Nicola Smith, Director, NKS Consulting.

45

Solid foundations What is the most effective strategy for client relationship management in a modern law firm and why?

I

t is fair to say that one of the most challenging roles within modern law is managing the relationship with the client. It could be said that as soon as expectations have been set at the point of instruction, the path and speed to completion follows to that effect.

Assuming this is the case and every law firm sets realistic completion expectations for their clients, why are there varying degrees of success with the relationship?

One could argue that a solicitor from one firm may be friendlier or more approachable than another. To a very small minority of clients, this may be true, but let’s look at the bigger picture.

A solicitor’s ability to listen, understand and act accordingly helps to not only meet those expectations, but in some cases surpass them simply by being responsive. By setting a realistic schedule of communication, the client is able to know exactly what is happening at every stage of the transaction. This is where the difference lies – organising and managing the client on a realistic level, as opposed to a guarantee, which solicitors know can be a recipe for disaster. If we take the former for example, the client is notified of key events, worst-case scenarios and real expectations, allowing for trust and reliability to be built.

From the viewpoint of the solicitor, it is not just communication that takes precedence. In fact, diary organisation and follow through is just as important. So, if solicitor and client move at the same pace via a constant level of communication, then reaching the end becomes a more rewarding experience for everyone.

Fitzalan Partners, a name that is associated with some of the best-known online conveyancing brands in the UK, such as Homeward Legal and Fridaysmove, focuses solely on bringing valued added clients to its panel of solicitors. With an established panel of over 80 law firms nationwide and a London based sales team generating instructions direct from homebuyers and sellers, setting the right expectations for the client before the point of instruction is essential for the beginnings of a successful move.

PJ Singh, Strategic Business Development Manager, Fitzalan Partners.

ML // October 2015

Headline Sponsor

Thursday 3 December 2015 rd

Chelsea FC, Stamford Bridge, London “Tackling the real issues facing serious conveyancers today” Conference Chairman – Eddie Goldsmith, Goldsmith Williams

www.mlconveyancingevents.co.uk Conveyancing Association Members £65 ex.vat Non-Members £85 ex.vat For Event Enquiries: ellie.campbell@charltongrant.co.uk Or call 01765 600909

making lawyers’ lives easier

Our clients take comfort in our risk based and measured approach to projects whether they be consultancy based, bank focused WIP profiling, diagnostic audits or M&A due diligence within the legal sector.

RISK | VALUE | OPPORTUNITY

General Enquiries

0161 635 0213 enquiries@zebralc.co.uk

Zoe Holland Managing Director zoeholland@zebralc.co.uk

Zebra LC is a unique trusted advisor and due diligence specialist within the UK legal sector, delivering client projects with a distinct market leading approach. Known for advising in some of highest profile deals in the legal services market.

www.zebralc.co.uk

Clients include leading law firms, banks, insurers, investors, funders and new entrants such as Fairpoint Group PLC and North Edge Capital.

@zebralc

Helping you know where you’re heading, whatever lies ahead.

Established in 2004, Informed Financial Planning (IFP) is a leading firm of Chartered Financial Planners. Our aim is to help clients identify and clarify their key financial objectives and help them to build a secure financial future that allows them to make those objectives a reality.

We specialise in a number of financial planning aspects such as retirement planning, investment advice, protection and estate planning. For more information or to arrange an initial, free and no obligation meeting, please call 01482 219325 or alternatively visit our website; www.informedfinancialplanning.co.uk

SBT1773 Informed Financial Planning Ad.indd 1

06/10/2015 13:50

The Features

49-62

The Features

49

The Features

51

The Big IT Issue: Twenty Years After - Still spending money on the wrong stuff?

Our resident IT guru Charles Christian writes…

I

t is now nearly 20 years ago since my book Legal Practice in the Digital Age was first published. The book’s central theme was that despite all the money law firms were spending on technology in those days, most of this money (money which might otherwise be going to partners) was being spent on the wrong stuff.

What law firms were spending their money on back then were mainly inward-facing, back office administrative systems, such accounts, practice management, word processing and document management systems. Whereas what they should have been spending their money on were outward-looking, client-facing systems…in other words systems that could help deliver a better legal service experience to their clients.

Stuck in the dark ages?

What I suggested in my book was that law firms needed to focus on finding a “killer app” that would transform the legal business, the way that the bank ATM/hole-in-the-wall machine transformed High Street banking. And, as far as High Street firms were concerned, this didn’t involve big budget rocket science. At the time, most firms would have exceeded their clients’ wildest expectations by just offering email as an alternative to snail-mail and playing telephonetag as communications medium!

Fast forward to 2015 and what am I hearing from in-house legal teams, local government lawyers and corporate counsel? That law firms are still not providing adequate technology to provide a better legal service experience to their clients…and that law firms are still pleading poverty because they are investing so much money in back office administration systems.

‘The majority of clients couldn’t care less how law firms create and archive their documents – if they were generated by chimpanzees taking time out from recreating the works of Shakespeare, they wouldn’t mind, providing they contributed towards an outcome the client was hoping for’

The general view can best be summed up as: when it comes to providing technologies that make life easier for clients, law firms are still not being proactive and generally only react when a client (and here we are talking about major commercial clients carrying a lot of financial clout) pushes them hard enough. (Or as one in-house lawyer recently told me “I waited seven years for a major law firm to offer two pieces of, what I thought, were pretty basic functionality.

When I retired, they still hadn’t provided it!)

I can sympathise with clients (be they corporate of private) in this situation. For example, there was a major tech show for lawyers this summer where the talking point of the event was the future of document management systems. Similarly, for many firms, a huge slice of their IT budgets over the coming months will be devoted to rolling out a new version of Microsoft Office and the Word WP application.

Well excuse me but we’re talking here about a filing system and a typing system for lawyers!

Times have changed The fact is the majority of clients couldn’t care less how law firms create and archive their documents - if they were generated by chimpanzees taking time out from recreating the works of Shakespeare, they wouldn’t mind, providing they contributed towards an outcome the client was hoping for, as well as an outcome that was on budget and on schedule.

To go back to my original example of ATM systems, High Street/retail banking has now moved on to a point where we now also expect an online banking facility to be part of the services that accompany our accounts. So, just imagine how impressed you’d be if your bank told you “Sorry, we don’t offer online banking but the statements we post to you are printed on a lovely cream paper stock and we have an excellent filing system so we will never lose your correspondence.”

Yet, this is precisely the same message that far too many law firms are still sending out to their clients. “Yes, we know times are changing but we’re going to keep on doing things the same old way we’ve always done.”

This is no longer a viable business strategy – stick-in-themud law firms may be unwilling to change but the demands of both existing and prospective clients have. Furthermore, we are starting to see a new generation of ABS firms (not just startups but also established firms that are reinventing themselves) appearing in the market, who are taking the approach of designing their legal services with an integral tech-led delivery model.

It is an over-used term but this is called “disruption” and as they say in the tech startup world: those being disrupted are usually the last ones to know and the first ones to go.

Charles Christian is the Editor-at-Large for the Legal IT Insider.

ML // October 2015

52

The Features

REGIONAL FOCUS:

Liverpool

Interview with... Emlyn Williams As part of Modern Law’s ongoing regional focus, Charlotte Parkinson spoke to the President of the Liverpool Law Society about collaboration and communication with the national Law Society, and the impact of a profession being put under increasing pressure.

Q

What are the main challenges the Liverpool Law Society currently face and why?

A

The key challenge facing Liverpool Law Society, in common with all local Law Societies, is to ask both itself and its members “What are we here for?”. We need to get the message out to all of our members that being part of a closer legal community is crucial for all of us, and for the future of the profession.

If we allow ourselves to become fragmented we will lose our “voice” and it will be all the easier for the Government to press on with changes which impact negatively on access to justice as well as on the profession.

Another key challenge facing all local Law Societies is to put ourselves on a sound financial footing. The SRA’s change to the continuing professional development rules is a move which is both unpopular with practitioners and also puts the training provided by local Law Societies in jeopardy.

We need to work hard to emphasise the excellence of the training that we provide, so that local Law Societies can continue to use that income to support the campaigning work we do and arrange networking and social events for local practitioners. It may sound obvious, but if our training income falls off a cliff, we will not be able to fund other activities.

Q

What are your core aims during your tenure as President of the Liverpool Law Society?

A

At the start of the year, I had several key aims. The first was to put the Society’s finances back on a

ML // October 2015

commercial footing. For some years we had been making a year on year loss and I was determined that we would address this. Through fantastic work by our Honorary Treasurer Philip Rooney and through excellent support and flexibility from Sarah Poblete our Chief Executive and the rest of the staff at Liverpool Law Society, we have dramatically turned our finances around. Last year we made a fairly hefty operating loss and this year (on a year by year comparison we have made a - very small - surplus).

I am tremendously proud of this achievement and of the efforts of everyone concerned to make this happen. The second aim was to break down some barriers around the accessibility of the profession.

My concern is that those from a working class background, such as myself, are increasingly being “priced out of” a prospective legal career due to the introduction of University fees and scrapping of the Student Grant system by the Government.

If I were 18 today, I would certainly think twice about whether to embark upon a University career, let alone thinking about becoming a lawyer.

We therefore arranged an event at

‘If we allow ourselves to become fragmented we will lose our “voice” and it will be all the easier for the Government to press on with changes which impact negatively on access to justice as well as on the profession’

The Features

53

‘The SRA’s change to the continuing professional development rules is a move which is both unpopular with practitioners and also puts the training provided by local Law Societies in jeopardy’ Liverpool Town Hall back in February of this year called Pathways to the Profession. The aim of this event was to emphasise to local schools and pupils that, even if you do not wish to go down the traditional University route, there can still be a career for you in the law - whether via an apprenticeship, CILEx or working for a law firm in some other capacity. We had an excellent turnout for this event and I was delighted that Andrew Caplen, then President of the national Law Society, came and spoke at the event.

He has also been kind enough to mention this initiative in speeches at other events, which is typically generous of him. My third aim was to improve connections between Liverpool Law Society and our Merseyside Junior Lawyers Division. This is something which we have been working towards for many years and I was determined that we would organise some joint events with MJLD this year, which is tough because they have so many socials of their own. I was surprised at their initial suggestion, which was a “Meet the General Committee” evening. We were delighted at both the turnout and the enthusiasm with which junior members of the profession lined up to quiz us “oldies” about our careers and Liverpool Law Society generally.

We followed this up with what I hope will be the first in an annual quiz night, at which teams from both MJLD and LLS competed. I am pleased to report that my team got the overall best score on the night. This enabled me to get the name of a little known 90’s indie rock-band (Kitchens of Distinction) into the Liverpool Law Society magazine (and now Modern Law too!) as this was the name of our team.

My final aim for this year was to continue the Society’s work on access to justice. We have established a forum together with local councillors, CAB’s and the not for profit sector and have received excellent support in this initiative from both Liverpool University and Liverpool John Moores University. They have undertaken research for us mapping where there are gaps in free to access legal advice. On 30th September, we are holding a “Mind the Gap” event aiming to identify and publicise where Legal Aid is still available and also look at best practice models for providing pro bono assistance.

Q A

How have the needs of members changed over the last 3 years?

It seems clear to me that the profession, at both ends of the spectrum, is under increased pressure. Criminal practitioners face the very real prospect of going out of business due to the Government’s Legal Aid reforms; traditional high street practices are being “squeezed” by mergers and the more traditional commercial practices are seeing significant pressure on fees and, increasingly, a trend towards merger and, arguably, a loss of their distinct

identities. What does this mean for us as a local Law Society? That we need to be responsive to the changing needs of all our members. That we are open to delivering our services in a different way, to challenging ourselves and our preconceived ideas as to what the Law Society “is for” and that we should not ourselves be afraid of change, given the massive change which our member firms are also facing.

Q

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

A

The most important thing we do is listen. We introduced a member’s survey, delivered by email, this year. We have separately hosted focus group meetings aimed at small, medium and large firms, seeking feedback on what they actually think about the Society, our services, our social events, our magazine and just about anything else that we could think of. Early in September we are hosting our first ever dinner for Managing Partners, which has been sponsored by a local bank. The aim of this dinner will be not only to serve as a “Thank you” to some of our longest serving member firms but also to ask what they would like Liverpool Law Society to do for them.

Q A

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

Law Society 2020 is about the future of our profession.

I hope it will achieve a clear vision of what the national Law Society can do for its members, and a more streamlined way of operating and decision-making. I was delighted that Catherine Dixon came to visit Liverpool and engaged directly with our members as part of her consultation exercise and look forward to Liverpool Law Society continuing to influence the national Law Society in making those changes.

Q

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

A

Local Law Societies have an absolutely crucial role to play. We are much closer to our membership than those in Chancery Lane could ever hope to be. My hope is that the regional Law Societies provide the real “voice” of those we represent. We at Liverpool Law Society are also fortunate to belong to the Joint V - in conjunction with Manchester, Birmingham, Bristol and Leeds local Law Societies. Together we are the largest regional Law Societies, which enables us to pool our thinking, views, experiences and ideas. We are also

ML // October 2015

54

The Features

‘There is a flood of students embarking on law degrees and a diminishing number of training contracts available. Increasingly there is concern about where these people will go’ keen to speak with one voice and hope to do more cross society collaboration and campaigning in the future.

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

When I was a trainee solicitor, I remember reading an article which said that members of the public look forward to going to see their solicitor about as much as they look forward to going to see their dentist.

I can remember at the time thinking this was a profoundly depressing statistic unless, of course, you really enjoy your dental appointments! One of the things I have been determined to do as President of our Society is to break down some of the barriers between the profession and the public.

Our Pathways to the Profession event was one way of doing this. We also have a good track-record of working with local schools and my colleague

‘The Government seems to be hell-bent on denying access to justice by first cutting Legal Aid and then closing local courts when, perhaps unsurprisingly, fewer work is transacted after the cuts have taken effect’

David Tournafond has, for many years, arranged a public speaking competition which we ran again this year. I have also been and spoken at several schools and colleges about my experience and “journey” through the profession. I have hoped in this way to show that a legal career is not simply for the elite or the well off.

Looking forward, we have arranged to do another “Pathways” event next year which my successor Alison Lobb has kindly asked me to speak at. I think it is an important part of the role of every regional Law Society to open up and build relationships in this way.

Q

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

A

We have been extremely fortunate with the support that the national Law Society has given to us and our events this year. I have also been fortunate that my colleague Charlie Jones, our Council Member, comes to our General Committee meetings.

He keeps us in the loop with what is happening at HQ and writes a monthly report for our magazine. I think the Society needs to look at communication between the national organisation and the regional Societies as part of the 2020 discussion as there is no doubt in my mind that improvements can be made. Whilst there is a Presidents and Secretaries conference each year, which I attended on behalf of Liverpool Law Society, this did strike me as a little “choreographed” and the agenda was very much set by the national Law Society, as opposed to being influenced by our regional concerns. This is an area where I think we could work more effectively together.

Q

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

A

On one level, you could say that the future is bleak. There is a flood of students embarking on law degrees and a diminishing number of training contracts available. Increasingly there is concern about where these people will go. Traditional law firm structures are collapsing, after a widespread failure, in my opinion, to grapple properly with the effects that the Clementi reforms were always going to have, and this has put many firms under threat. The Government seems to be hell-bent on denying access to justice by first cutting Legal Aid and then closing local courts when, perhaps unsurprisingly, fewer work is transacted after the cuts have taken effect. It would be easy to get depressed about all of this and “give up”, however, I do not feel pessimistic about the future.

The strongest firms and most innovative practices will evolve and survive. We, as regional Law Societies, will continue to fight for the rights of our members and for the public to have access to justice.

That may involve criminal practitioners taking direct action themselves; it may be local Law Societies Access to Justice Committees supporting and coordinating pro bono activity with various stakeholders including the not for profit sector, charities and local authorities. The key is to do something and not just complain if things aren’t going your way. Ultimately, that turned out to be the answer to my “What are we here for?” question. Our role is to make a difference, however small, and to encourage others to get involved in speaking out on behalf of the profession and for those in society who are less likely to have a “voice” than we are.

Independent Psychological and Orthopaedic Medico-Legal Reporting Independent and Orthopaedic Medico-Legal Reporting At Hugh KochPsychological Associates we provide a comprehensive and independent psychological and orthopaedic

service throughout U K, as well as and access to a psychological treatment At Hughreporting Koch Associates we provide the a comprehensive independent psychological and service. orthopaedic

Ground Floor, Festival House, Jessop Avenue, Services provided within theascontext personal injury; employment injury; stress and chronic reporting servicearethroughout the U K, well as of: access to a psychological treatment service.

Cheltenham, GL50 3SH Ground Floor, Festival House, Jessop Avenue, Phone: 01242 263 715 management; clinical negligence; Neuro-psychology and chronic pain. and We have particular Servicesabsence are provided within the context of: personal injury; employment injury; stress chronic Cheltenham, GL50 3SH Fax: 01242 528 299 Phone: 01242 263 715 in assessing psychological effects of cosmetic Adults children are seen within absenceexpertise management; clinicalthe negligence; Neuro-psychology and surgery. chronic pain.

Weand have particular Email: customerservice@hughkochassociates.co.uk Fax: 01242 528 299 four to six weeks of instructionat any of our 120 clinics across the UK, and the report provided within Web: www.hughkochassociates.co.uk Email: customerservice@hughkochassociates.co.uk expertise in assessing the psychological effects of cosmetic surgery. Adults and children are seen within weeks.ofThe ‘Find the Expert’ our web sitethe allows threetheexperts be located immediately. four to two six weeks instructionat any of facility our 120onclinics across UK, and reporttoprovided within Web: www.hughkochassociates.co.uk

two weeks. The ‘Find the Expert’ facility on our web site allows three experts to be located immediately.

The Features

55

REGIONAL FOCUS

Investing in the future Joanne Robinson explains how businesses in the Liverpool region are embracing innovation and excellence.

L

iverpool has flourished and grown beyond all recognition in recent years and is at the centre of a population of 1.5m people that drives a £20bn economy in the city region.

The city has seen a huge amount of investment and development and is now recognised as one of the UK’s leading business destinations. In addition, the Liverpool Region was host to the International Festival of Business in 2014 which was the UK’s largest showcase of business since 1951, attracting over 250,000 visitors over 50 days. Such a success was the event that the Festival will return in 2016.

The city received deserved recognition when it was awarded the European Capital of Culture in 2008 and its buildings, architecture and rich history are testament to Liverpool’s heritage being at the very heart of the city. Over time Liverpool has become a city that rivals other national and European cities in terms of its culture, popularity and vibrancy. The bustling centre offers unlimited social activities with restaurants and shopping aplenty, and the city has the largest collection of museums and galleries anywhere outside of the Capital.

‘Since the inception of the Liverpool Law Society in 1834, the legal industry has had a long established presence in the city which offers a pool of talent, together with the infrastructure, to facilitate our growth and attract employees’ Leading the way For some the city will always be famed for its musical history and is internationally renowned for being at the centre of the “Merseybeat” sound. Since the 1960’s, Liverpool has remained at the forefront of the entertainment world although its contribution to the entertaining world is of course equalled by its contribution to some of the biggest international sporting events and teams.

The universities in the city continue to bring over 50,000 students into the city, with a considerable number of these remaining in the city, adding to the talent pool available to employers.

Carpenters have been based on The Wirral for over 20 years

and we are a leading provider of claims and legal services to the insurance industry. The firm has grown into one of the top RTA law firms in the UK and we have a strong reputation for an ethical approach to personal injury claims. Our focus throughout our entire range of services is the experience of our customer and client care underpins everything we do.

Our commitment to working with the insurance industry to help combat fraud has allowed us to partner Insurers in initiatives such as the Insurance Times Fraud Charter and Donna Scully, Partner, received the Outstanding Achievement Award at the 2014 Personal Injury Awards for her long-term commitment to fighting fraud.

Increasing the talent pool Donna says it’s ‘home from home’ for her because the Merseyside people are so similar to the Irish, and that is understandable when you look at how many Irish people have settled here over the years. Although Carpenters is very much a National firm in terms of the work it does, with offices in Haywards Heath and Scotland too, its staff and owner give it a fun Merseyside/Irish feel!

The business has continued to grow from strength to strength and as a result of this continued expansion, we considered various locations for new premises. It was an obvious choice for us to look across the river and establish our new office space in Liverpool city centre at 1 Tithebarn Street, in the heart of the business district, and this will open on 1st November.

Since the inception of the Liverpool Law Society in 1834, the legal industry has had a long established presence in the city which offers a pool of talent, together with the infrastructure, to facilitate our growth and attract employees. Our own Glenys Hunt was President of Liverpool Law Society a few years ago.

Investing in the future The Mayor of Liverpool’s ambition is to create 20,000 new jobs in the city by 2017 and Carpenters’ expansion has created over 200 job opportunities for the city’s legal, claims and customer service professionals. We will employ over 600 people in total by the end of the year and further growth is planned through 2016, and beyond, as the business continues to expand and thrive.

We consider that investing in our people is investing in the future of our business and our new premises have been re-furbished to a high standard to provide a premium working environment for our teams. We want to provide an environment where hard work is rewarded by progression and to ensure that we offer the opportunity for people to enjoy a long and rewarding career with us.

We are delighted to be joining the business district of Liverpool and our current recruitment project allows us to offer a variety of new opportunities for the city’s talented people and to welcome new people to our ever-growing team.

Joanne Robinson is HR Director at Carpenters.

ML // October 2015

MLFP0000317072013

Because litigation is rarely black and white If you’re a solicitor looking for a legal expenses insurance partner, there are several options on the market - few with the levels of free-thinking flexibility offered by AmTrust Law. Our underwriters specialise in tailor-made commercial legal expenses policies that give your clients the cover they need.

With an ‘A’ (Excellent) credit rating from A.M.Best, worldwide cover capability and a strong balance sheet, we also have the financial clout needed to underwrite higher indemnity values for large commercial clients.

www.amtrustinternational.com

Call 0844 854 6838 to set up an introduction to a broking partner

AmTrust Law

An AmTrust International Division

AmTrust Law is a trading style of AmTrust Europe Limited which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority.

AmTrust Europe Limited has been rated ‘A’ (Excellent) by A.M.Best.

The Features

57

How to build a brand Andrew Twambley outlines the tips and tricks needed to create a true ‘Brand’ in the legal sector and explains how to get the most out of TV advertising.

“H

alf the money I spend on advertising is wasted; the trouble is I don’t know which half…” John Wannamaker.

I was recently at a legal conference trying to cadge a free iPhone battery charger off one of the exhibitors, when a bloke came up to me and said; “Hey you’re the guy from National Accident Helpline aren’t you? Do you think a TV advert will help enhance my brand?”

After initially spitting half my pie over the exhibition stand, I corrected him by telling I was actually the guy from InjuryLawyers4u. Unperturbed, he responded, “Yeah, but what about the TV?” I asked him which ‘brand’ he was talking about and he told me the name of some instantly forgettable ABS in Scunthorpe. I told him to forget it and attempted to revitalise my interest in the iPhone charger.

Had he not pushed me into an instant dark and frustrated mood, I would have given him the full patter, including the potted history of the brand I had been involved in.

Building a brand In the late 90s and early noughties, the Personal Injury world was dominated by two mega brands; Claims Direct and The Accident Group. Both were dominant on TV and spending millions of pounds on their ads. They truly had a brand.

InjuryLawyers4u came along shortly after the demise of Claims Direct and 3 months before the spectacular collapse of TAG. There was a void and we were lucky enough to fall into it

䌀伀一嘀䔀夀䄀一䌀䤀一䜀

(a cunning stunt!). In the first phase, our marketing budget was £1m, which rose over the years to lots of millions.

Since 2003, we have spent more than it would cost to buy a Premiership forward line. For the past few years, InjuryLawyers4u have had a true brand - an instantly recognisable name embedded in popular culture.

One only has to look at Twitter fifteen seconds after a celebrity such as Madonna, falls over, and you will see the proliferation of references.

The point I am struggling to make is that producing and airing a few TV ads is not going to build a brand.

Back in 2000, the MD of TAG (R.I.P.) told me that it cost a least £20m to create a brand - and then you have to maintain it. Now it’s probably more.

TV advertising goes a long way to establishing and maintaining a brand.

But TV budget must be spent wisely.

In my giddy days whilst thinking about InjuryLawyers4U, I had the demented idea of placing ads in the middle of Coronation Street. I had Granada TV round trying to sell me several slots at a trillion ponds per second. Fortunately I was subsequently steered towards a leading media agency who bought media in bulk at a huge discount and put me off vanity advertising, in favour of direct response. So instead of one ad in a 3 minute break when people were more interested in the TV, we moved towards hundreds of ads on obscure channels in the middle of the day - ads that people would actually respond to.

I know of an organisation who paid in excess of £200K for a beautiful TV ad, then took a fat spot in the middle of The X Factor or some other crass show. The airtime cost over £120K for one ad, and they hardly ever showed in again. They should have just opened the window

and thrown the cash in the river. That certainly was not a quality idea!

Succeeding on the web So if a TV campaign is out of the question, what about the internet?

Yes it’s affordable, but beware of false prophets and charlatans who hide behind every shadowy rock. Each week I receive several e-mails from insects called ‘Bob’ or ‘Tom’ who compliment me on my website but go on to say it’s ineffective and they can guarantee first page on Google. THEY LIE. To succeed on the web, unless you have a huge budget or are part of a marketing consortium, you need to really specialise and choose your key words very carefully. It is no use trying to bid against words such as ‘personal injury’ or ‘clinical negligence’. Even words such as ‘bike injury’ or ‘skin rash’ can be prohibitively expensive. Unless you can afford the top two or three positions on Google, it can prove to be a complete waste of money.

Perhaps you should look back over your successful cases, and choose a phrase related to that case, that isn’t an obvious phrase but is one that a similarly injured person would use to search for a good lawyer. That tip is gold dust, perhaps I should have kept it to myself!

As a final postscript, perhaps consider taking advice from a digital marketing expert. Look them in the eye and determine whether or not you can trust them. Lawyers are not traditionally great marketing experts, so do not be afraid to seek learned advice. I know one …

Andrew Twambley is Owner at InjuryLawyers4U and Managing Partner at Amelans.

眀眀眀⸀攀挀氀椀瀀猀攀氀攀最愀氀⸀挀漀⸀甀欀

Isokon Did you know that 36% of law firms doing probate work use Isokon software?

Why?

Because Isokon can increase your profitability

Because Isokon is based on a probate specific accounting engine

Because Isokon has no significant competition

Many Isokon customers have achieved a profit margin of more than 70%

Please call us for further information or to arrange a demonstration Call Peregrine Coysh at 020 7482 6555 or email him at: perry.coysh@isokon.com

The Features

59

Probate Work How to Ensure Profitability How do you best ensure the profitability of your probate work? Surprisingly, most law firms appear to not know the gross profit margin of their probate department (and possibly of the firm as a whole), as Gregory van Dyk Watson explains.

O

f the 140 firms who use our probate software (Isokon), the majority declined to answer our questions about their profit margin for this area of work. We were not able to assess whether they did not actually know the answer to the question (which appeared to be the case) or whether they were simply being discreet. Or, possibly they were just embarrassed to reveal their relatively low profit margin.

The irony is that the firms that were willing to discuss their profitability, all revealed that their gross profit margin is consistently in excess of 70%.

The key question is; how have these high margin firms managed to achieve this level of profitability?

What distinguishes them from the low margin firms? In the one instance in which the firm was willing to discuss their success openly, the formula appeared to be relatively straightforward. Profitability is a mixture of effective software combined with judicious organisation.

Let us examine that in more detail, since both parts are equally important.

Working as a team Once satisfied, the team leaders head off to their respective teams of three, four or five paralegals or former secretaries, all of whom have received thorough training in the use of the software. Towards the end of the working day, the partner in charge looks at the log of tasks in the software to ensure that all tasks have been completed. This method of organisation is simple, straightforward and effective.

An important adjunct to ensure success is training. To quote Charles Christian (the doyen of legal technology) in his chapter on ‘Computer and Technology Issues’ in the Probate Practitioner’s Handbook: “… computer systems are just tools whose value derives from how they are used. It therefore follows that if people are not trained in how to use them properly, the firm will not see a satisfactory return on its IT investments.”

The second component of success is organisational discipline. To quote Charles Christian again: “…it helps to have a senior member of the firm in overall charge of the implementation, so that they can compel the fee earners to attend [the training]” and axiomatically to actually use the software. The extreme converse of our profitable firm is where practitioners are permitted to go their own way and revert back to a more manual method of doing the work. Working as a cohesive team is fundamental to success and profitability in this area of work.

For further information please contact Gregory van Dyk Watson, Managing Director of Isokon Limited via gregory@ isokon.com or call 020 7482 6555.

Alternatively visit www.isokon.com

SIZE MATTERS #AvoidBaggageCheckIn

Cabin Size Bags – Travel Fast – Save Time

www.GATE8-luggage.co.uk CUSTOMER CHECK-IN +44 (0)20 7617 7860

CABIN BAGS. TRAVEL FAST.

Enter Discount Code ‘LAW’

www.gate8-luggage.co.uk

20% DISCOUNT

Productivity and profitability The software is an accounting database designed specifically for probate (and trust) work with the ability to easily record the variety of financial data of the deceased’s estate, including such items as business and agricultural relief, ISAS and PEPS, net or gross taxation of domestic and foreign equities, including double

taxation agreements, separating capital and income, post probate adjustments, and abatement of assets, in instances where the estate is more than just a bank account and a house.

The software includes a case management component that consists of a workflow with task management, a log of events, and a mailmerge facility that enable a range of standard letters to extract data from the accounting database. The latter enables a range of letters and emails to be produced and sent to banks, building societies, funeral directors, utility companies, executors, beneficiaries, and other related parties.

Letters to these parties can be produced at the proverbial click of a mouse, and often more than one letter at a time, each of which can be billed at the rate of one unit of time for each individual output.

It is axiomatic that having the software technology available does not inevitably result in the level of profitability achieved by the firm in question. To repeat the key question, how does our example customer consistently achieve a gross profit margin in excess of 70%?

The department is headed by a partner who holds morning meetings with the four team leaders. The tasks for the day are examined and discussed, as shown in the case management component, to ensure that the team leaders understand the nature of each task, even though most tasks are fairly straightforward. Where a complex task requires the professional skill of the partner in charge, she might allocate a complex task to herself by a simple switch in the software.

60

The Features

Drones and drone technology are we really in control?

The skies above our towns and cities are becoming increasingly congested as the number of aircrafts grows. Kieran Jones and Kurt Rowe explain the need to ‘regulate’ and ‘protect’ now that drones are here to stay.

What is a drone?

Not a day goes by without there being an article in the news about one specific type of aircraft, unmanned aircraft, also known as drones. Whether as a result of new and novel parcel delivery plans, interference with other manned aircrafts, or breaching privacy, drones are a hot topic bringing with them a myriad of regulatory and legal risks.

Just recently, a man was convicted, fined £1800, ordered to pay £600 in costs and have his three drones destroyed after flying a drone fitted with a camera illegally over buildings and congested areas including premier league football stadiums. He was also issued with a Crime Behaviour Order (“CBO”) banning him from buying, owning, flying or assisting another to use a drone for a period of 2 years. Breaching the CBO could see a custodial sentence imposed. This is the first recorded police and Crown Prosecution Service led prosecution in the UK and the authorities seem increasingly determined to regain control of our skies.

Regulation The use of drones in the UK is subject to air navigation orders issued by the Civil Aviation Authority (“CAA”) (www. caa.co.uk). Drone operators breaching air navigation orders could well face prosecution with the current maximum penalty, upon conviction, being an unlimited fine and/or up to 5 years imprisonment.

The current rules contained within the “drone code” state that drones

Kieran Jones

Kurt Rowe

weighing less than 20kg must: • stay within the clear unaided sight of the operator; • not fly higher than 400 feet; • keep away from aircrafts, helicopters, airports, and airfields; • if fitted with a camera, be flown at least 50 metres away from any person, vehicle, building, or structure; • never be flown over any group of people, such as a sporting event, concert, protest, rally etc.; • never be flown at all in congested areas, such as streets, towns, and cities; • never be flown for commercial purposes without the express permission from the CAA. Moves to regulate our skies are struggling to keep up with the rapid expansion of the use of drone technology. The difficulties in tracking drones and their operators are a particular hindrance to enforcement and accordingly, no one as yet has been sent to prison.

At this year’s US Open, a drone crashed into empty seats. Whilst

‘In reality, a claim could rest against the programmer, the manufacturer, the pilot, the commercial operator, or a combination of all or any of them’ ML // October 2015

no one was injured, it was purely by chance that the seats were empty and the authorities considered the incident to be serious enough to arrest the pilot, a school teacher, and charge him with reckless endangerment and operating a drone in a public park outside of a prescribed area.

This is not an issue peculiar to any particular jurisdiction and international cooperation is essential to ensure that technological advances do not render regulation rapidly obsolete. It would not be difficult for drones to be fitted with similar tracking devices to those installed into conventional aircrafts and we may even see the creation of electronic perimeters actively preventing drones from entering protected airspace. In the US, NASA is co-ordinating the creation of a traffic management system for drones.

Nuisance For all their positive uses, we are seeing in the UK a rise in complaints about the use of drone technology. Drones are reportedly being used to film football matches, infringe privacy, and generally cause a nuisance. In 2014, an unidentified drone nearly collided with a civilian aircraft as it came into land at London’s Heathrow airport.

Those operating drones could well find themselves on the wrong side of an action for both public and private nuisance, as well as trespass. They could also be on the wrong side of an application for an injunction to prevent the operation of a drone within a specific area. Breach of such an injunction by an operator could see them found to be in contempt of court and potentially fined and/or sent to prison.

Privacy Drone operators can easily fall foul of legislation protecting the privacy of the public such as the Data Protection Act 1998, the Human Rights Act 1998, the Regulation of Investigatory Powers

The Features

Act 2000 and also the Sexual Offences Act 2003.

There have been many high profile reports of drones being used to spy on people in breach of privacy laws. In the US, one landowner shot down a drone which was flying over his property taking pictures of his daughter sunbathing. There have also been reported complaints from David and Victoria Beckham of invasion of their privacy. Admittedly, these examples occurred in the US, but similar use of drones for this sort of activity in the UK breaches the “drone code” and could well result in both criminal and civil liability for drone operators.

With more advanced drones, locating the operator is almost impossible due to the range of the devices. However, there is a growing appetite for enforcement of the “drone code” and this is likely to become a rapidly developing area for both criminal and civil litigation.

Public Liability A drone flying in a city could interfere with the emergency services, civilian aircrafts, as well as posing a danger to people on the ground. In a recent episode of NBC’s hit program Chicago Fire, a drone operated by a civilian brought down a helicopter killing dozens and injuring many more. Fiction today: fact tomorrow? Let’s not forget the injuries Enrique Iglesias suffered when attempting to grab a drone at a recent concert.

Currently, such extreme events have been confined to fiction, but there have been reports, most notably in the US, of emergency services being unable to fly their helicopters in emergency situations due to the presence of drones in the airspace. In addition, in the UK, there have been numerous reports of drones flying close to other aircraft and the risk of a collision is very real indeed.

There are significant risks associated with flying drones over people; collision with other aircrafts, collision with buildings and structures, collision with people causing personal injury, loss of the drone itself when flown outside the range of the remote control, and more.

Cyber security is another major risk. As drones become increasingly autonomous connecting to other aircrafts and networks, the risks associated with hacking and cybercrime could magnify those risks. Those flying drones have the same duty of care as those flying conventional aircrafts and safety standards must be maintained at the highest possible level.

Product liability Drones may, of course, malfunction for reasons other than operator error, software may be or may become corrupted or competition for bandwidths for remote control transmissions could result in a loss of control or there could be a fault with the hardware.

Litigation resulting from the use of drones could be potentially complex and is likely to present a number LegalRSS_banner_Museo_Layout 1 07/09/2015 10:39 Page 1 of challenges. Training of pilots and experience is vital,

SAVE TIME legalrss.co.uk

61

especially in a commercial context. Whilst a manufacturer will normally offer product and technical training will this be sufficient to prepare pilots to safely control drones in congested airspace and how will pilot competency be assessed? So when something goes wrong who is responsible? The pilot operating the drone, the manufacturer, or the software engineer who programmed the drone in the first place?

The answer depends very much on what caused the drone to malfunction, whether or not the pilot should (and could) have taken measures to better control the drone in the event of technical problems and whether emergency measures could have been taken to reduce the effect of any impact are matters that will have to be considered.

In reality, a claim could rest against the programmer, the manufacturer, the pilot, the commercial operator, or a combination of all or any of them.

Insurance Anyone looking to insure themselves will need to ensure they are covered for third party property damage, death and/or bodily injury, first party damage, employers and public liability, business interruption, information and data security, legal expenses for both civil and criminal defence, Directors and Officers liability, professional indemnity, cargo liability, and reputational damage. Even this long list is not exhaustive.

Those writing insurance will need to consider the need for extremely high safety standards due to the significant risks associated with the use of drones in the UK. Those that provide added value services such as the provision of training/education for example, how not to fall foul of DPA, how to use drones in public, etc. could go some way to mitigating the risk of potentially expensive claims. There is of course a growing appetite for new insurance products, with insurers already testing the water with new and innovative products for commercial and domestic drone use.

Safer skies It is essential that there is close cooperation between interested parties to make the skies a safer place for the benefit of all through: • better regulation; • proper training on applicable regulation and governance for all those purchasing drones; • compulsory insurance and registration for those owning and operating drones.

Drones are here to stay and will become a more common sight in our skies and the time is right to act to regulate and protect.

Kieran Jones is Partner and Director of Insurance, and Kurt Rowe is an Associate in the Market Affairs Group at National Law firm Weightmans LLP.

SAVE MONEY sales@legalrss.co.uk

GROW PROFITS 01392 423607

62

5 minutes with...

5 minutes with... Pavani Reddy Q A

Has the industry changed drastically since you started working in it?

In some ways, the legal landscape has changed considerably in the past few years due to economic conditions, advanced technology and global competition. A number of distinct trends have emerged in the legal industry which are helping law firms to become more efficient, modern and competitive in the global market. The legal industry is no longer a lawyer-only zone. There has been a rise of the non-lawyer in the law firms. Social networking is also transforming the legal practice in terms of recruitment, networking and interaction with clients. Domestic law firms are expanding across the borders and crossing traditional boundaries. There is now an entirely new concept called Alternative Business Structures (ABSs), where big firms/corporates are investing in law firms.

Q A

What has been the key positive or negative impact of change in your area of the market?

There has been a huge positive impact of the recent changes on the legal practice. New legal professional service delivery concepts are emerging. With advanced technology there are now online dispute resolution and virtual courtrooms are available. Web-based tools have been created which improve client communication, delivery of legal services and file storage systems. The small firms are now able to establish a bigger presence

online and provide equal service like any big firm at competitive fee charges. With globalisation, clients are now able to get same international service locally without having to come to another jurisdiction. There is an increase in the recruitment of trainees, paralegals and support staff.

On the other hand, with long billable hours and global competition, the industry is putting enormous pressure on the professionals to do more with less. This seems to be having an impact on professionals to balance the work and personal life. The developments have also increased the cost of legal services and complexity.

Q A

Who inspires you and why?

The legal industry as a whole inspires me. I love my profession, I enjoy every day and pursue my work with passion. There are many lawyers who inspire me.

Q A

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

I would have to say Mr Sarosh Zaiwalla, the Senior Partner of our firm. I’ll always be thankful for the opportunities Sarosh gave me, and aspire to achieve in my career the example he’s set out for me. He has been a great mentor to me.

Q A

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

I would have become a Chartered Accountant, as I am good with figures, or an interior designer!

Pavani Reddy is Managing Partner at Zaiwalla & Co Solicitors.

ODT Solicitors chooses Proclaim Property specialist to implement Eclipse’s Proclaim Practice Management Solution ODT Solicitors is implementing the Proclaim Practice Management Software Solution from Eclipse Legal Systems. Based in Sussex with branches in Brighton, Hurstpierpoint and Haywards Heath, ODT Solicitors is a growing law firm specialising in Property Law and Civil Litigation. The firm boasts an enviable reputation Darren Gower for providing excellent service and value for money, to both private clients and commercial organisations.

The Proclaim Conveyancing Software Solution will be utilised firm-wide, ensuring a secure and consistent approach from all users. Eclipse will conduct a full data migration from the incumbent system, allowing the integrated Proclaim practice accounting and financial management toolset to be implemented together with the Proclaim Credit Control Centre module - boosting efficiency and providing detailed analysis of the firm’s operations.

ML // October 2015

ODT Solicitors will take the Proclaim Matter Management Solution to streamline their non-prescriptive Civil Litigation work. Effective risk management throughout the lifecycle of each file will be ensured with the adoption of the Proclaim Compliance platform.

Asif Siddiq, Practice Manager at ODT Solicitors, comments: “Proclaim will be instrumental in achieving our goal of making the conveyancing process as quick, efficient and hasslefree as possible. With so many time consuming processes being automated, we will reduce our clients’ costs without compromising the quality of the service we deliver. Proclaim’s inherent scalability and flexibility will prove invaluable as our operations and client base continue to expand.”

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.

Need to settle personal injury claims more quickly and fairly?

ISO's Claims Outcome Advisor (COA) and PICAS Plus solutions provide the ability for insurers and claimant solicitors to settle personal injury claims fairly and consistently, more quickly than ever before.

Helping to streamline your personal injury and anti-fraud processes Need to quickly identify and investigate Fraud?

ISO’s anti-fraud solutions, ISO ClaimSearch and NetMap for Claims, offer insurers and solicitors advanced tools to rapidly scour in-house and shared databases to reveal hidden patterns of claims activity using scoring, querying and visualisation techniques.

When the goal is to provide fast and fair personal injury compensation, or stopping fraud, talk to ISO.

01252 365460 info.uk@iso.com www.uk.iso.com

CASE

CONVEYANCING

MANAGEMENT

SOFTWARE employment

FAMILY

DEBT RECOVERY

£+

lpa & COp

probate

PERSONAL INJURY

Eclipse’s Proclaim Case Management Software solution is the only system to be endorsed by the Law Society. In use by 22,000 professionals in 800 organisations, Proclaim’s market-leading productivity tools are available in a huge range of flavours and ready-to-go, out of the box.

Contact us for a demonstration

01274 704 100 www.eclipselegal.co.uk/lawsociety lawsociety@eclipselegal.co.uk