Modern Law Magazine 15

The Business of Law

December 2014 | Issue 15 | ISSN 2050-5744 News: Professor Dominic Regan explains why the outcome of the general election will be crucial for lawyers and asks whether the small claims limit is set to increase.

The Eclipse Proclaim Modern Law Awards 2014: The second annual awards took place on 15th October, Charlotte Parkinson, Modern Law, summarises the evening’s proceedings and takes a look at the winners.

Project Management: Antony Smith explains why solicitors who acquire and apply project management skills are more likely to increase client satisfaction and their own profitability.

Modern Law Magazine | December 2014 | Issue 15

“The development of Alternative Business Structures (ABSs), means that the legal market going forward is going to be dominated by those legal firms that have all the necessary key business skills” Emma Pearmaine

MARTYN DAY

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03

WELCOME A

s this issue of Modern Law arrives at your door, I have no doubt you will be deep in piles of Christmas presents (wrapped or unwrapped!), tinsel and mince pies. As the legal industry begins to wind down for another year and take a well-earned break, there is some time to take stock and reflect on the year just passed.

This issue certainly has a celebratory and reflective focus, with coverage from the second annual Eclipse Proclaim Modern Law Awards (which took place in October at the Hilton on Park Lane, London), featured on page 46 onwards. I spoke to the winner of the prestigious Lawyer of the Year award, Emma Pearmaine, Head of Family Law at Simpson Millar LLP, about what the win means to her, challenges post-LASPO and future growth for the firm, following its acquisition by the Fairpoint Group (page 17-19). Despite continued upheaval in the legal sector, it seems the pace of change for innovation and new business models is certainly not slowing down and will not for some time to come, as shown through the views and opinions of our ever-increasing number of editorial board experts, from page 21 onwards.

As we continue to assess the year passed and consider the future for the legal market, our resident IT Guru, Charles Christian asks where the sector and technology is moving next in 2015 on page 59. Antony Smith also explains why solicitors who acquire and apply project management skills are more likely to increase client

Modern Law Magazine

satisfaction and their own profitability in the years ahead (page 53). I went along to the ‘Legal Breakfast Briefing’ seminar, hosted by Armstrong Watson and Zenith Chambers, to hear their keynote speaker, Viv Williams’ take on the changes in the legal market and what they mean for practitioners (coverage on page 51).

The third annual Modern Law Conference: Leading a Modern Legal Business – ‘Managing Change in Changing Times’, takes place on Wednesday 11th March 2015 at etc.

Venues, 155 Bishopsgate, London. Our Chair, Michael Napier QC, CBE, LLD, returns for the third year and once again, the event promises to be a sell-out. Please visit: http://www.modernlawevents.co.uk/index.html for more information regarding the programme and tickets.

I would like to take this opportunity to wish all readers of Modern Law a Happy Christmas and a Prosperous New Year and I hope you, like me, are looking forward to what next year has in store.

Charlotte

Charlotte Parkinson, Group Editor, Modern Law. charlotte.parkinson@charltongrant.co.uk

Issue 15 – December 2014 | ISSN 2050-5744

Project Director Kate McKittrick

Group Editor Charlotte Parkinson

Advertising Martin Smith

Accounts Director Karl Mason

Events Director Julia Todd

Design Matthew Phillis

Production Victoria Lang-Burns Modern Law Magazine is published

by Charlton Grant Ltd ©2014.

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 // December 2014

04

07

CONTENTS 03-08 INTRO & THE NEWS

07 Professor Dominic Regan talks news

Professor Dominic Regan explains why the outcome of the general election will be crucial for lawyers and asks whether the small claims limit is set to increase.

11-19 THE INTERVIEWS 13 Interview with... Martyn Day

Charlotte Parkinson, Modern Law, spoke to the Senior Partner at Leigh Day & Co about how it felt to win the ‘Outstanding Achievement’ award at the Modern Law Awards 2014 and achieving a balance between championing human rights when coupled with financial and personal risk.

17 Interview with... Emma Pearmaine

Charlotte Parkinson, Modern Law, spoke to the Partner and Head of Family Law at Simpson Millar and winner of Lawyer of the Year at the Modern Law Awards, about challenges post-LASPO and future growth for the firm following its acquisition by the Fairpoint Group.

22 Levelling the playing field

Caroline Wallace, Legal Services Board

23 Innovative management

Steve Arundale, Royal Bank of Scotland/ NatWest

23 Can my client get a ‘top up’ to

extend cover under its commercial ATE policy?

Matthew Williams, AmTrust Law

25 Moving on

Martin Cheek, SmartSearch

25 The PII Dating Game – How to make yourself more attractive

Stephen Murray, PSG

27 And so it begins: a new era of continuing competence.

Lucy Morrison, Central Law Training (CLT)

27 Know your business

David Bott, Bott & Co

29 A kick in the teeth

Eddie Goldsmith, Goldsmith Williams

29 A healthy balance...

21-43 THE VIEWS

31 To the Tower!

31 A fresh perspective...

Matthew Williams, Head of AmTrust Law.

22

Noel Inge, CILEx Law School

22 ‘Can my client get a ‘top up’ to

extend cover under its commercial ATE policy?’

17

Tony Brown, AGB Legal Mark Montgomery, myhomemove

EDITORIAL COLUMNISTS Alex Bagnall

Head of Commercial Litigation Costs Lawlords Andy Poole

Legal Sector Partner Armstrong Watson Antony Smith

Owner Legal Project Management Barry Talbot

Managing Director Informance Ltd Caroline Wallace

Strategy Director Legal Services Board Charles Christian

Editor-in-Chief The Legal IT Insider Colin Taylor

Executive Director, Legal Services Practice Group Willis

ML // December 2014

Daniel Morris

Director Box Legal Limited Darren Gower

Marketing Director Eclipse Legal Systems David Bott

Managing Partner Bott & Co David Simon

Chairman Triton Global Derek Fitzpatrick

George Bull Martin Cheek Chair of Professional Practices Group Managing Director

Baker Tilly Tax and Accounting Limited

SmartSearch

Chairman Burcher Jennings

Matthew Williams

Head AmTrust Law

Stephen Murray

Jitendra Valera (JV)

Michael George Davidson

Steve Arundale

Chief Marketing Officer Advanced Legal Jo Hodges

Head of Sales & Marketing Redbrick Solutions Kerry Underwood

Founder Underwood Solicitors

Business Development Manager Lisa Beale Head Clio Checkaprofessional.com Dez Derry

CEO mmadigital Eddie Goldsmith

Partner Goldsmith Williams

Richard Burcher

Lucy Morrison

Managing Director Central Law Training (CLT) Mark Montgomery

Customer Strategy & Marketing Director myhomemove

Business Development Director PSG

Head of Business Development, Commercial Head of Professional Consumer Law Services & Financial Institutions, Parabis Sectors & Specialist Business RBS & NatWest Commercial & Nick Hodges Private Banking Managing Director Sucheet Amin Oyez Professional Services Managing Director Limited Aequitas Legal & Founder of Noel Inge inCase™ Managing Director Tony Brown CILEx Law School Owner Priya Anand Patel AGB Legal Director Legal Eye Ltd

05

33 Digital natives...

Dez Derry, mmadigital

Andy Poole, Armstrong Watson

51 Times are changing

33 Caught in a trap...

35 The whole package...

George Bull, Baker Tilly

35 Organic Acquisition...

Jitendra Valera (JV), Advanced Legal

37 Why reviewing costs should be on

53 Project Management, Fixed Fees and Law Firm Profitability

every firm’s priority list

Nick Hodges, Oyez Professional Services

37 Working as one...

Michael George Davidson, Parabis

39 Unlikely companions...

Richard Burcher, Burcher Jennings

39 The next generation...

Alex Bagnall, Lawlords

Sucheet Amin, Aequitas Legal & inCase™

41 How to thrive...

Daniel Morris, Box Legal Limited

42 Crossing the line

David Simon, Triton Global

The legal landscape for practitioners has changed rather dramatically post LASPO and it is those firms who have good business models that will not only survive but indeed thrive in this ever changing legal world.

59 Where next for legal it in 2015?

Charles Christian explains why mobile and cloud applications are key approaching 2015.

Lisa Beale, Checkaprofessional.com

43 Opportunity or threat

60 Just around the corner?

43 Reducing the risk profile...

60 Solutions, Resolutions and Trends

Colin Taylor, Willis

Priya Anand Patel, Legal Eye Ltd

45-56 THE FEATURES 46 The Modern Law Awards 2014

The second annual Modern Law Awards took place on 15th October at the Park Lane Hilton, London. Charlotte Parkinson, Modern Law, summarises the evening’s proceedings and takes a look at the winners.

43

57-62 IT CROWD

42 Ahead of the game

Project management skills are a ‘core competence’ expected of solicitors, according to the draft Competence Statement issued by the Solicitors Regulation Authority. Antony Smith explains why solicitors who acquire and apply project management skills are more likely to increase client satisfaction and their own profitability.

55 Rising to the challenge

41 What the client really wants

The Legal Breakfast Briefing was hosted by Armstrong Watson and Zenith Chambers in Leeds at the end of September, Charlotte Parkinson, Modern Law, went along to hear their keynote speaker, Viv Williams’ take on the changes in the legal market and what they mean for practitioners.

59

Jo Hodges, Redbrick Solutions

for 2015

Derek Fitzpatrick, Clio

61 Now is not the time for risk taking!

Barry Talbot, Informance Ltd

62 5 minutes with...

Kerry Underwood, Underwood Solicitors

62 Ringrose Law to implement Eclipse’s Proclaim PMS

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62 ML // December 2014

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07

PROFESSOR DOMINIC REGAN TALKS NEWS Professor Dominic Regan explains why the outcome of the general election will be crucial for lawyers and asks whether the small claims limit is set to increase.

M

any are in denial about the prospect of an increase, sharp or modest, in the personal injury small claims limit. Deep sighs of relief were expelled in April 2013 when the limit was left alone whilst the non–injury limit doubled from an already sizeable £5,000 to £10,000.

The good news for now is that we are in a period of purdah. With a general election only 6 months away, the shutters are down and no big initiatives will be considered until after May 2015. However, the people in Whitehall recently stated that the £1,000 remains under review. It has not gone up since 1991, the year that Freddie Mercury and Robert Maxwell died (that was a long time ago). Surely, an increase is an inevitability.

The worst nightmare What is intriguing is that insurers, the obvious beneficiaries of a hike, would rather the limit stayed where it was rather than be increased by a modest amount! Lord Justice Jackson is of the view that a moderate adjustment in line with the cost of living would be justified. That would produce a figure of perhaps £1800. This would be the worst nightmare for defendants as the respected commentator Anthony Hughes has explained. The effect of such an increase would be to propel claimants to use their best endeavors to secure damages of £1801 or above.

Thus, the starting point for settlement would be almost double what it is today with negligible saving in costs.

No, the insurance industry, which is horrifically well organised (I fear compared to the disparate ranks of claimants), is clamoring for a stratospheric hike. £10,000 would do very nicely, thank you. The current administration has had no qualms about slashing and burning the legal profession. The Labour opposition

‘Reform for the sake of reform is a rotten idea’ has stated that it would be more circumspect. So, the outcome of the general election will be crucial for lawyers, a sentence I have never written before.

Those days are gone…

One should appreciate that so many of the old arguments advanced to justify an increase are now dead in the water. Fierce lobbying began way back when there were no portals or fixed costs. Success fees and after the event premiums were recoverable. The days

of the £5,000 settlement coupled with £10,000 costs are behind us.

Support for claimants came from the superb House of Commons Transport Select Committee in July 2013. This was a cross party body and thankfully it was non–partisan. Whiplash was a genuine and sometimes debilitating condition. Claimants needed legal advice so as to ensure that they received adequate compensation, not a penny less or more. An unrepresented claimant was an

ML // December 2014

08

‘The insurance industry, which is horrifically well organised (I fear compared to the disparate ranks of claimants), is clamoring for a stratospheric hike. £10,000 would do very nicely, thank you’ innocent abroad who could hardly be expected to navigate their way through medical evidence, contributory negligence or the subtleties of benefits and special damages.

The 2014 Committee report highlighted another dichotomy which demonstrates cynicism on the part of those who insure. The pre–medical settlement offer was anathema to the committee for it could obviously provoke fraudulent claims. Money for nothing. Insurers, meanwhile, want to retain the freedom of making these offers. A claimant who accepted one would be cheaper to see off and it is all about the bottom line. So what if a few villains pull a fast one?

The current position with the latest Rules is that, in soft tissue claims, these offers will have no effect upon costs until after the new fixed fee initial medical report has been obtained and disclosed. I seriously doubt that the incumbent administration will dare to meddle further and impose the outright ban proposed by the Committee.

Finally, coming soon is the cab rank regime for securing medical reports. What I have seen so far is riddled with gaping holes. What if the client does not speak English?

How about those who hold an honest objection to being examined by a member of the opposite sex? Where is the database to come from? Who is going to take responsibility for vetting those who put themselves forward for inclusion?

Reform for the sake of reform is a rotten idea. As far as I can tell, and I have spoken to many practitioners from both sides of the litigation fence, these changes will be clumsy, counterproductive and will worsen a process that is tried and tested.

What is the point?

CPD – Now what?

The decision to abandon the well established 16 hours a year formula of CPD has left a big hole. It is normal to replace the old with the new. Here, the old is ushered out without any obvious replacement. What will happen?

Other professions continue to adhere to the CPD model and indeed, it is being introduced in other jurisdictions whilst being withdrawn from here. Indeed, the decision to abandon the tried and tested model which worked well for more than a quarter of century was a random one. Looking back, it was brave to insist at the outset that every practitioner, no matter how senior, would be required to acquire the necessary hours. As one who qualified decades ago, I understood that concern. However, it rapidly emerged that old dogs could be taught new tricks.

Begrudgingly, I heard honest admissions from established practitioners that they had benefitted from attendance.

No system is perfect. The end of October rush can drag in those more concerned about points than content. Truly, I had a lady plonk herself down, extract a pile of non - legal magazines from her bag and tell me: “Don’t worry love, I’m only here for the points”. On the odd occasion, my words would be accompanied by a gentle snore.

ML // December 2014

Ignorance is not bliss The range of talks available is vast with one leading provider able to offer 365 different ones. That demonstrates how sophisticated it has become. Let us not forget that it has been possible for the annual quota to be satisfied by completing multiple-choice tests online and in magazines.

Despite that, there is no substitute for a live get together.

People can fire off questions at any point, something I encourage. Meeting fellow practitioners can be a bonus and on many an occasion we have, within a group, identified an issue, kicked it around and arrived at a viable solution.

One school of thought is that some firms will just abandon training altogether. Ignorance is not bliss and those not up to speed will be susceptible to nasty negligence claims. As the great Frank Maher points out, indemnity insurance is not really insurance at all but rather a loan. Make a claim and on renewal, the premium will be adjusted to claw back what was paid out. Excesses can be steep. Insurers can be picky and those with an adverse record will not be welcomed with open arms.

Realistically, I predict that a minority of practices will cut back. The vast majority will continue to provide relevant training on a regular basis to their staff. It is for the benefit of employer and employee. The profession has experienced so many changes so quickly over the last 4 years, more than ever before. Little wonder that some have abandoned ship. The way of working in lower value injury litigation has reduced the need for lawyers and enhanced the demand for more process driven staff. By definition, those relentlessly completing portal notifications are in less need of advanced updates. The potential audience will diminish.

Palpable benefits...

Growth areas at the moment are industrial deafness, clinical negligence and multi- track claims, where costs remain at large. Costs lawyers have been propelled by the need to budget accurately. The Judiciary continues to develop law, substantive and procedural, at a frightening pace. As someone who is devoted full time to reading law reports, I wonder how earth those running cases, which requires real skill, have a moment to even begin to digest the daily outpourings. That is where CPD comes into its own. If one thinks of the speaker having done your prep and reading for you it then makes sense. The benefit should be palpable.

It follows from the above that I fervently believe in continuing professional development. It can indeed be delivered in a variety of ways and short bursts, by way of podcast or webinar. The very latest thinking is to consider whether those wanting to qualify as a solicitor might be admitted upon the basis of “core skills”, such as interviewing and negotiation.

A law degree or professional skills course might become unnecessary! Where will it end?

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Interview with... Martyn Day

13

Interview with...

MARTYN DAY Charlotte Parkinson, Modern Law, spoke to the Senior Partner at Leigh Day & Co about how it felt to win the ‘Outstanding Achievement’ award at the Modern Law Awards 2014 and achieving a balance between championing human rights when coupled with financial and personal risk.

Q A

How does it feel to have won ‘Outstanding Achievement’ at the Modern Law Awards?

I was truly delighted, it is always nice to be recognised for the work that we do and for an excellent magazine, such as Modern Law, to identify this was fantastic. Receiving this award marked a very significant moment in my career. I am really delighted.

Q A

Why do you think your work for claimants and within the profession was recognised?

I like to feel that what we do at Leigh Day is relatively unique, in terms of bringing claims on behalf of people in the developing world. I think our work was recognised because, in London, no other firms are doing the same thing and our cases are often unusual. I hope that it is a good sign of being a lawyer today.

Q A ‘The idea that, as a professional, I have to worry about whether I win or not is rather odd; I should be allowed to focus on whether I am doing a decent job, to the best of my ability, for my clients’

What are the biggest changes to the legal sector, since you set up Leigh Day with Sarah Leigh OBE, in 1987?

Undoubtedly, in our part of the world, the biggest changes are to legal aid and the introduction of the ‘no win, no fee’ scheme as well as the Jackson reforms. There has certainly been some dramatic changes, in some ways for the good, in that we now don’t have to deal with the bureaucracy of legal aid but in some ways for the bad because lawyers can end up having a stake in the outcome of a case. The idea that, as a professional, I have to worry about whether I win or not is rather odd; I should be allowed to focus on whether I am doing a decent job, to the best of my ability, for my clients.

Q A

How important is it to adopt a ‘modern’ approach to running a law firm?

As Leigh Day is a large firm, we must be constantly poised for evolution; it is very important to stay on your toes. In the old days, things used to rumble on much the same for decades, whereas now we are

ML // December 2014

14

Interview with... Martyn Day

seeing significant changes every year. It is so important to adapt and change your position in the market if needed.

The key for any successful firm is to be as adaptable and agile as possible.

Q A

What are the specific challenges that come with working on high profile, international and group cases?

The main thing is that there are challenges every day; no two cases are the same. Because we are dealing with cultures and societies, that really we only know and understand at a skin-deep level, we can never fully understand what is going on. We therefore have to place a strong focus on getting to grips with different systems and people. This is always a big challenge but, for me, is one of the most enjoyable aspects of the job. One of the absolute pleasures is when we team with communities of very rural and local people around the world. I really admire the strength of character of the people we represent; it is often very inspiring.

Q A

What are the advantages/disadvantages of being a niche firm?

The advantages are that the work is massively interesting; we never do the same case twice. I love being at the forefront of the law. The disadvantage is that it provides a lot of uncertainty and, while I am actually someone who enjoys taking on risk, undoubtedly many of my Partners think I am mad!

‘We must be constantly poised for evolution; it is very important to stay on your toes. In the old days, things used to rumble on much the same for decades, whereas now we are seeing significant changes every year’

Q A

What makes Leigh Day unique?

What makes us unique is primarily centred around the fact that we are prepared to take risks, a lot of other firms would simply not be prepared to take on some of the risks that we face every day with our work.

They are very unusual, not just in terms of financial risk but also on a personal level. For example, when we go out to Nigeria, we have to take out ambush insurance, which is not usually part of the everyday work that lawyers do. The fact we are prepared to take on these risks and the fact we enjoy a challenge are what makes us unique as a firm.

Q A

What enables the firm to accept/peruse cases, which other firms would not – where is the balance between financial risk and championing human

and financial risks that are involved with each case; we would not conduct our work in a kamikaze way. We are strongly of the view that the skills and abilities of the people at Leigh Day should be used for the benefit of championing human rights and supporting ordinary men and women around the world.

Q A

How does the firm deal with disappointing decisions, which are sometimes associated with large, international cases?

There is no point in being in litigation if you can’t afford to lose, both mentally and financially.

Litigation is a risky game by nature and there is never any certainty. We do our best as a firm and as individuals to make sure we limit the risks we take on but in the end, they will always be there. If you can’t cope with the heat, get out of the room.

Q A

What are your predictions for the future of legal services in the UK and internationally?

We have seen a lot of change over the last 3 to 4 years, particularly in relation to the Jackson reforms.

They are now beginning to calm down and the market will continue to stabilise. The primary interest for us in the current market is that the courts have shown a lot of enthusiasm for reducing costs in specific cases.

This is something we have to keep a very careful watch on, to make sure the work we do is proportionate to the value of the claim. At the same time, whilst we are facing some of the big multi-nationals, who employ some of the largest firms in the City, our future priorities are to ensure we continue to match them stride for stride. Despite the challenges and changes, I think the area that I work in is fabulous and I do love it.

Martyn Day Martyn Day is the Senior Partner of Leigh Day & Co, a firm of solicitors based in the City of London. With our 30 partners and some 350 staff, the firm specialises in representing individuals both in the UK and abroad. Martyn is head of the International claims team, which brings legal actions on behalf of people, primarily in the developing world, against multi-national corporations as well as the British Government. Recent cases have included successful claims on behalf of 30,000 Ivorians against Trafigura Limited, following the dumping of toxic waste in the Ivory Coast; successfully representing the family of Baha Mousa, an Iraqi tortured and murdered by British soldiers, as well as hundreds of other Iraqis, and suing Shell on behalf of some 15,000 Nigerians, following two very large oil spills in 2008. Martyn was a former Chair of Greenpeace in the UK and Chem Trust, and is now a Trustee of The Greenpeace Environmental Trust. He regularly writes and speaks around the world to try and encourage a greater use of the law to hold multi-nationals to account.

rights?

We would not take on a case unless we felt there was a strong element of human rights to it; we would never take on a case that was just about making money, that really isn’t our scene. Obviously, at the same time, we have to work out the balance of financial benefits

ML // December 2014

Martyn was proud to be awarded an Honorary Doctorate by the University of Warwick in July 2014, in recognition of his work over many years in the field of human rights and the law. This was a rare award by the Department of Law at the University, where Martyn graduated in 1978.

Venue: etc. venues, 155 Bishopsgate, London Wednesday 11th March 2015

MESSAGE FROM CONFERENCE CHAIRMAN MICHAEL NAPIER CBE QC (Hon)

ce 2015

Who would have believed a couple of years ago that by the time of the third Modern Law Conference in March 2015 the market for legal services would include around 400 licenced Alternative Business Structures? This significant cohort of ABSs comprises a range of entities of all shapes and sizes offering a wide variety of legal services through different models and innovative techniques enabling them to compete for business.

But just how different are these new ABSs? Have they completely broken the mould of legal practice as we knew it before the Legal Services Act made it possible for lawyers to share profits with non-lawyers and to take in external investment? What are they doing differently and how are they managing the basics that have always applied to businesses, legal or otherwise? Above all how are they being led in vying for success and what are the internal and external challenges?

In its usual probing style this conference on “Managing Change in Changing Times” with a line-up of top speakers will examine five crucial areas to illustrate how the leaders of modern legal businesses are: • Making Decisions ( governance, board structure, non –executive directors, communicating decisions, finding and developing leaders, succession planning) • Growing the business ( marketing strategy, advertising. social media, IT/outsourcing, organic growth/merger/takeover, international expansion ) • Making a profit ( hourly rates/fixed fees, budgets and the bottom line, cash flow, EBITDA, external investment/funding, valuing a legal business) • Sharing the profit( with partners, shareholders, employees, third parties, HMRC, third party funders) • Managing Risk (financial / practice compliance, conflict, ethics, competition, reputation) In covering these core subjects the 2015 conference will give delegates an up to date insight into the workings of legal businesses today and how to plan for the future. I look forward to seeing you there!

Event enquiries please contact Ellie Campbell T: 01765 600909 | E: ellie.campbell@charltongrant.co.uk Early bird tickets available www.modernlawevents.co.uk HEADLINE SPONSOR Business Solutions

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Interview with... Emma Pearmaine

17

Interview with...

EMMA PEARMAINE Charlotte Parkinson, Modern Law, spoke to the Head of Family Law at Simpson Millar and winner of Lawyer of the Year at the Modern Law Awards, about challenges post-LASPO and future growth for the firm following its acquisition by the Fairpoint Group.

Emma Pearmaine Emma has built up a wealth of experience in family law including divorce law, ancillary relief and child matters.

Emma joined Simpson Millar LLP as a Partner and Head of the Family Law Team in April 2010. Prior to joining she worked as a Partner at Chadwick Lawrence, managing the family department. She qualified as a solicitor in 1998 and then as a collaborative lawyer in 2007.

Emma was recently awarded “Lawyer of the Year 2014” at the Modern Law Awards for her contribution to the success of the family practice as evidenced by strong management and leadership.

Quoted in Chambers and Partners 2014 as follows: Emma Pearmaine is head of family law at Simpson Millar LLP and she handles a mixture of financial proceedings, private children and domestic violence matters. She is described as “approachable, experienced and conscientious” and she impresses clients by “taking the initiative to explore aspects of a seemingly impossible situation.”

Emma is a member of Law Society’s Family Law and Family Law Advanced, Children Law and Ancillary Relief Panels, as well as Resolution – First for Family Law. Emma qualified as a mediator in December 2011 is also a member of the Family Court’s Unions Group, and a Trustee for CAADV (Corporate Alliance against Domestic Violence).

Q A

How does it feel to have won Lawyer of the Year at the Modern Law Awards 2014?

I am absolutely thrilled to have received this award. I feel that I accept it on behalf of the Family Law Team and the Management Committee at Simpson Millar because without their help and support, I would not have won the award. We do it together.

Q

The family law department at Simpson Millar has grown from a turnover of £100,000 to £2.9 million in under 4 years. To what do you attribute this success and how have you worked to grow the department during times of strain for the sector?

A

I attribute the success to the skill, foresight and support of everybody concerned; this is not something that could have been achieved by me alone. We have worked to grow the department by thinking about how we can provide practical and affordable legal support to clients at a time when they are finding legal support less and less accessible and affordable. We have launched a number of new products and services to support this, and our forward thinking in house support services such as our IT development team have enabled us to grow profitability by focusing on how we deliver our new products and services, whilst maintaining high standards for our clients.

ML // December 2014

18

Interview with... Emma Pearmaine

‘I feel it is our duty to ensure that we do what we can to continue to represent members of the public from all backgrounds’

Q A

How important is it for law firms to run as businesses in the ever changing legal landscape and how are you advocating this?

It is fundamental and the development of Alternative Business Structures (ABSs), means that the legal market going forward is going to be dominated by those legal firms that have all the necessary key business skills.

Q A

How have you been working to lobby government for change and do you think they are doing enough to support the sector?

We have been concerned for some years now and Simpson Millar is a member of a family law parliamentary group, which lobbies parliamentarians and advises in relation to law changes. Irrespective of our lobbying, LASPO was introduced in 2013 and that has had a dramatic impact on eligibility for legal aid, and access to justice for family law clients. I have concerns that many of the changes will remain permanent and I feel it is our duty to ensure that we do what we can to continue to represent members of the public from all backgrounds.

Q A

How have cuts to legal aid affected the legal sector to date?

The changes to legal aid have meant that we and all other family law teams across the country have found ourselves unable to represent a huge number of clients that come knocking at our door, in circumstances where we would have represented them up until April 2013.

We and many others have tried to implement cost effective service packages but many people simply can’t afford to pay anything for legal representation, in circumstances where it is desperately needed. In my opinion,

ML // December 2014

government focus should be on the children of this generation, as we are now looking at a situation where many children are not enjoying appropriate contact or residence arrangements with both parents, because their parents cannot afford to secure legal advice and support to address difficulties. This is something which will have a wide ranging impact on society for years to come, and possibly generations to come.

Q A

Is there a danger that access to justice will be impeded following an increase in the number of litigants in person?

Judges do everything they can to ensure justice prevails in any Children Act or matrimonial proceedings but the courts are struggling to manage the high number of applications involving litigants in person. In my opinion Judges do not have the time and resources to allocate to all of those cases involving litigants in person to ensure that they have uncovered every stone and that all issues that need to be addressed are considered. Previously, it was the solicitor’s duty to present issues and evidence for the Judges to address so in a sense, that layer of protection for the individual has been lost.

Q A

What services and initiatives have you developed to replace lost revenue, which has occurred as a result of the cuts?

We have looked at the development of fixed fee options, pay as you go, payment in instalments and are working in association with other organisations who can provide additional support alongside us to reduce the time that we need to spend on any particular case. It is important to offer flexibility.

Q

Are alternative methods of dispute resolution, ADR, arbitration and mediation for example, used enough in family cases and are clients aware of these options?

A

Historically, mediation was very popular. Before LASPO in 2013, a solicitor and a client had a requirement to consider mediation before issuing proceedings if they were funded by legal aid. It was the government’s intention that post LASPO, individuals who would

have previously been eligible for legal aid would self refer to mediation before applying to court but the fall in mediation statistics would suggest that is not happening. The court application, for a Children Act order, or finances in divorce, requires parties to have considered mediation but I question whether the courts can effectively force mediation once proceedings have been issued and the parties emotions are running high. It is also important to consider that there are many cases where mediation is not suitable.

Arbitration is growing in the family law sector and is a good way of managing costs and avoiding delay associated with court proceedings. I hope it continues to gain in reputation and popularity.

Q A

What are your views on the possible criminalisation of domestic abuse?

I have mixed views about this; I am a trustee of the Corporate Alliance against Domestic Violence, which is a charity whose founder and patron is Baroness Scotland, our former Attorney General.

The Simpson Millar family law team also works closely with organisations such as Paladin, the anti-stalking charity and a number of domestic violence charities around the country. I would support criminalisation but I have mixed views about how that can be achieved. It is important that the legislation is drafted correctly, to enable it to be properly implemented at the end point. The primary focus must be to empower law enforcement agencies to protect the victim rather than to focus on punishment of the offender.

Q A

What is next for the family department at Simpson Millar, do you have plans for further growth?

We do have plans for further growth. Simpson Millar has recently been bought by the Fairpoint Group PLC and the purpose of securing the ABS licence for Simpson Millar was to invite external investment, which has been achieved. The ABS structure has given Simpson Millar a platform to grow and under the guidance of our Managing Partner Peter Watson, we are looking at expanding our family team substantially over the next few years.

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The Views

21-44

THE VIEWS

21

22

The Views

Q: ‘Can my client get a ‘top up’ to extend cover under its commercial ATE policy?’

A: ‘Potentially, but not necessarily…’

W

hen applying for after the event legal expenses insurance, one of the most important aspects to consider is the level of cover an insured is going to need. Too much and it could prove non-commercial.

Too little and there could be an exposure to a liability which was never in contemplation.

An insured usually wants to obtain full protection against having to pay an opponent’s costs if the claim is unsuccessful. On that basis, the start point should be to seek cover at a level that represents the most realistic estimate of what ‘adverse’ costs are likely to be to the end of trial. Generally insurers ask for that information and underwrite the risk on the understanding the figure given will provide protection to that point. Premiums are usually calculated on that basis. Despite this, underwriters are frequently faced with late applications for significant top ups, often just before a critical application or trial.

There may be a number of reasons why an insured ends up with inadequate cover, including, • simple under estimation of the extent of the adverse • a view that, as most claims don’t get to trial, a lower level of cover ‘should be sufficient’ • a notional deduction to take account of any reduction by detailed assessment • a belief that ‘top up’ will be available ‘on demand’ • an unforeseen turn of events in the action.

Whatever the reason, unless and until resolved, inadequate cover could be the cause of headaches and stress.

On the positive side, where merits and commercials remain strong, underwriters are unlikely to have an issue providing a ‘top up’ necessitated by developments which could not reasonably have been foreseen at the outset. The rationale being if the case was ‘good’ for cover then, it remains ‘good’ for an increase. Conversely, the position will be significantly more problematic where there is no apparent reason for the increase (particularly if it is sizeable and the application late), where circumstances and prospects have changed, and/ or where the costs escalation has created proportionality issues. The consequences could be that increased cover is not offered at all, or offered at an increased premium rate, given the alteration in risk profile.

The moral of the story is that it must be preferable to spend time on getting the requisite level of cover as accurate as possible at the time of the application, to provide the underwriter with a rationale for it, and to keep it under regular review. On that basis, a top up request can be dealt with sooner rather than later, and on an informed basis by an underwriter already ‘on board’ with the reason for it.

Matthew Williams, Head of AmTrust Law. If you have any further questions regarding this or would like to discuss further with AmTrust, please visit our LinkedIn Forum: www.linkedin.com/company/amtrust-law ML // December 2014

Levelling the playing field On 10 December, the Legal Services Board (LSB) launched a consultation on its strategic plan for 2015-18 and its business plan for 2015/16.

T

he consultation comes at a time when the legal services market continues to grow. Turnover is up 15 percent in the past six years to £29.2 billion and here is plenty of evidence of the increasingly rapid pace of change. New ways of doing business are emerging with new investment, new ideas and new choices for consumers. Many of these changes are positive, and demonstrate innovation and growth.

We believe that these changes can be used as a springboard to a different and better market for legal services, one that sees more people and small businesses obtain access to the legal services they need. It is in this broad context of rapid change and on-going concerns about access to justice that we have developed our draft strategic plan for the 2015-18 period.

We are proposing to structure our work into three distinct but linked strands. Firstly, on breaking down regulatory barriers to competition, growth and innovation. We aim to ensure that unnecessary regulation which can stifle positive changes is removed, thereby delivering the benefits of competition, growth and innovation to consumers and lawyers alike.

Secondly, we propose to look to enable need for legal services to be met more effectively. Legal services must be affordable and accessible, consumers must be able to make informed choices to take advantage of the range of services that a more dynamic market will offer, and appropriate protections for consumers and the public interest must be secured.

Thirdly and finally, we will pursue a core programme of on-going activities, including statutory decision making, maintaining regulatory standards and conducting essential research. This work keeps us in touch with the real-world challenges faced by the regulators, lawyers themselves, and consumers.

In our work, we will take into account both regulated and unregulated providers of legal services. We will do this because this is the market in which consumers make choices and because we, and you, need to understand how regulated service providers can compete on a level playing field with unregulated service providers.

We welcome any and all feedback on the plan, our strategic priorities and the specific proposals in our business plan for our work in 2015/16. Should you wish to comment please visit the consultations section of our website: http://www.legalservicesboard.org.uk/what_we_ do/consultations/open/index.htm.

Caroline Wallace, Strategy Director, Legal Services Board (LSB).

The Views

Innovative Management

T

he end of the year has seen a number of legal sector reports roll off the press and I have read several interesting productions in recent weeks.

Many reports make reference to improved business and commercial management within law firms, which is a significant and positive development.

One of the reports suggested that up to two thirds of respondents have witnessed improved legal business management over the last five years. I have worked amongst legal firms for six years now and I would probably echo this sentiment given the progress I have witnessed.

When the Bank devised its own legal conference programme, it did so with the business of law in mind. Even Bankers are not arrogant enough to believe that they can help lawyers deliver better legal services - but they certainly do have a broad range of experience and training in the art of business management. It has been interesting to view how delegates at these conferences have moved from questioning cynic four years ago, to enthusiastic scholar now.

Very few would dare to challenge the long standing traditions of the partnership model but many would argue that the collegiate, one partner, one vote, days are potentially well beyond their sell buy date.

Certainly those firms I meet and that are making significant progress have abandoned the traditional style of law firm management. They have looked to innovate their management structure. Some have employed CEO’s with business experience outside of the legal sector, many have engaged Non Executive Directors with external business knowledge and lots of firms now allow Management Boards to run the business, leaving the lawyer to do what they are good at. In a world of challenge and opportunity, pace is of the utmost importance and the pace of decision making can be the difference between success and failure. There is increasing evidence to suggest that a lean, experienced and commercial management team can deliver fit and stable law firms with improved profitability for all interested parties.

Innovation extends well beyond service, processing, product and marketing. Possibly innovation starts within the leadership cohort who can decide which management structure is best placed to take the firm forward. ABSs do not need to be the reason for change but could be an enabler of change for some firms.

Steve Arundale, Commercial Head of Professional Services & Financial Institutions, Sectors & Specialist Business, Royal Bank of Scotland/NatWest, Commercial & Private Banking.

23

A representative profession...

W

e have come a long way as a profession to embrace equality of opportunity, increase minority representation and attract a broader range of people from different backgrounds. I believe though, that despite the great progress made, there is still a long way for us all to go before we can claim to be truly representative. For example, while last year 61% of people joining the profession were women, the number of female partners in firms was still only 30%.

This disproportion is common across the protected characteristics of the Equality Act - including age, disability, gender, race, religion, sex, and sexual orientation.

By taking further action now to tackle barriers to inclusion, mobility and representation, our sector can take a lead in serving our communities and society. Our own SRA Board member, Moni Mannings, a senior partner and former International Practice Group Head of Finance at Olswang LLP, says she has personally benefitted from working in organisations insightful enough to recognise that talent and ability sit everywhere.

Moni was the first member of her south London Pakistani family to go to a UK university. It is her view that the legal profession is much the richer for drawing in diverse talent; it reaches better solutions and holds true to core values of fairness and independence. Legal businesses too are rewarded in attracting the best talent - through client satisfaction and positive impact on the bottom line.

Let us not forget also that without a diverse workforce we would not have a diverse judiciary, attracting as it does many of its members from legal services. It is for all of these reasons and more that our SRA Equality, Diversity and Inclusion Strategy sits alongside our recently launched Corporate Strategy in supporting reform in the sector.

The strategies also promote the creation of a diverse SRA workforce, offering equality of opportunity in developing the capabilities of all staff to regulate proportionately, fairly and free from bias. They ensure that the way we operate at the SRA, including our rules and decisions, is proportionate, fair and free from bias.

I am keen that we engage with a range of organisations both inside and outside of the equality sector to help us deliver our strategic ambitions. A key component of that engagement will be our work with small firms where black and ethnic minority solicitors are well represented. Through such work I, and the SRA as a whole, are committed to meeting the challenges ahead to make a difference set to benefit both professionals and consumers.

Jane Furniss CBE, Senior Independent Director on the SRA Board and Chair of the SRA Equality, Diversity and Inclusion Committee.

ML // December 2014

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The Views

Moving on Are service providers to the legal industry innovating faster or slower than their legal clients and what impact does either have on clients/costs and business processes?

M

any legal firms aren’t using the latest technology for antimoney laundering compliance that could dramatically speed up the client take on process at a fraction of the cost. We see that many legal firms put in place their policies and procedures back in 2004, when the initial Money Laundering Regulations were implemented and there are still many legal practices using antiquated systems and manual processes such as passports, driving licences and Companies House documents.

Over the last 10 years, technology has moved on a great deal. Know Your Customer and Customer Due Diligence sits at the very start of the client take on process and by using the latest technology, firms not only protect themselves further down the line, but also generate time and cost efficiencies.

Customer Due Diligence is also on the radar of the Solicitors Regulation Authority (SRA), which has recently announced that it is working with the National Crime Agency (NCA) and the Home Office to ensure that law firms have robust systems in place to avoid money laundering. The SRA, along with other regulators in the UK, is undertaking a thematic review of Anti-Money Laundering (AML) policies and procedures.

More interesting to note is the NCA’s role in this review. The number of Suspicious Activity Reports (SARs) from the legal sector in the UK has fallen from 15,000 in 2008 to just 4,000 last year, a massive drop of 73%, whilst the overall number of SARs has risen from 225,000 to 315,000 in the same period - a rise of 40%.

It’s the mismatch in these statistics which has alerted the NCA & SRA that there appears to be a significant problem across the legal profession in terms of its anti-money laundering processes.

SmartSearch deals with hundreds of legal firms supplying comprehensive electronic verification services to meet the Know Your Customer requirements of the Money Laundering Regulations 2007. Firms can avail themselves of a range of sophisticated tools, such as SmartSearch, which allows law firms to undertake KYC checks for Individuals and any type of corporate clients, both in the UK and Internationally in a matter of seconds or minutes. They can also incorporate screening of Sanctions and Politically Exposed Persons, with all of a firm’s clients being monitored on a daily basis.

Martin Cheek, Managing Director, SmartSearch.

25

The PII Dating Game – How to make yourself more attractive Evidence from the SRA suggests that this year’s PII renewals season has not been a smooth one. What can firms do to ensure they are best prepared and how can they make themselves appealing to insurers?

I

worked for the BBC for several years and before going out filming, I had to undertake a detailed Risk Assessment. If filming on water I would need to have a lifeguard, if in a war zone, bullet proof vests and helmets; and door stepping a rogue trader would require being accompanied by a discreet body guard of some description to protect the crew and presenter should things turn nasty.

Risk is all around us and taking reasonable steps to assess and mitigate known risks to ourselves and those we work with, and for, is expected. Insurers rightly take a dim view of those that don’t take reasonable steps to prevent an incident and a claim. Conveyancing remains one of the areas of highest risk and what many PI Insurers are looking for now is Demonstrable Due Diligence, meaning an evidenced based approach to risk management processes.

If you have a burglar alarm on your house, window locks, are in a Home Watch area and have a multipoint locking system on your door, you are a lower risk to insurers and will pay a lower premium than someone without.

Technology can support risk management and anything that can be seen to be minimising the risk of human error, fraud or mere complacency will be likely to have a positive impact on premiums.

Electronic AML ID verification has been around for a number of years now, but in recent years it has vastly improved and is now more cost effective. Technological advancement in document recognition and validation software means this is now a real alternative. Just over two years ago the Lawyer Checker (anti-vendor conveyancer fraud) system launched and its use has grown exponentially since then and has become a standard part of many firms’ processes prior to transferring funds.

When a lender loses out, it looks for any breach in process that it can use as a basis to claim against a firms PII. With potentially 20,000 variations to the CML handbook at any one time a system ensuring compliance with the handbook should not only protect and potentially reduce a PII premium, it could assist users to stay on lenders’ panels. The CML approved system “JET” is fed by live data from the handbook and continually checks compliance with the latest changes until the file is closed.

Risk management is business critical for firms and use of systems which minimise them can render firms a more appealing proposition to Insurers and lenders alike.

Stephen Murray is Director at Market Leading Conveyancing Search Provider, PSG.

ML // December 2014

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The Views

And so it begins: a new era of continuing competence.

S

olicitors face the first major shakeup to professional education in 30 years and many are wondering what it will mean for them. In May, the SRA indicated its intention to replace the current hours-based continuing education requirements with a system under which solicitors must prove continuing competence. Solicitors have been required to complete continuing professional development (CPD) training since 1985. The minimum annual requirement of 16 hours is easy to understand but does not effectively measure an individual’s professional development.

The SRA acknowledged that the current scheme risked being simply a tick-box exercise. “The current ‘one size fits all’ approach has not been substantively updated for over 25 years,” it said. “It is out of step with current thinking on professional CPD and does not reflect the current environment in which solicitors now work.”

Julie Brannan, the SRA’s Director of Education and Training, explained that a new competence based system was designed to provide a more flexible and modern approach to training.

To demonstrate competence, solicitors and their employers will need to show that they have reflected on what education and training they need, recording the thinking processes, the actual learning and some self-assessment.

Here at Central Law Training, we believe that the new regime heralds a more exciting and technologically advanced era for solicitors. Solicitors can create education and training programmes that are unique to their needs.

Training can be done on mobiles and iPads in the lunchhour or while commuting, possibly in bite-size chunks.

Provided the solicitor properly logs what they have done, that will contribute to competence requirements.

The new requirements will not be universally adopted until November 2016, giving solicitors and their employers time to adjust. The SRA intends to publish full guidance on the new regime in the spring when firms can opt into the new competence regime. Alternatively, they can continue with the 16 hours regime until 31 October 2016.

For those of our members who are continuing under the hours-based regime, it’s business as usual. As the trusted provider of CPD to solicitors since 1985, we are looking forward to working with the early adopters of the competence based regime and are developing new systems to support solicitors in demonstrating compliance in the new training era.

27

Know your business Do lawyers need to be able to sell themselves in an increasingly competitive market? If so, how and why?

T

he very short answer to this question is “yes.” There are very few law firms who don’t market themselves in some way, be it taking out key clients or national advertising, most law firms do more than nothing.

What has changed markedly in my experience is how the role of marketing has changed over the last 5 years. Most big firms delegated marketing to the head of sales who was in essence the “Minister of Fun”. This person was prepared to take a key client (or prospective client) to a very good restaurant or exclusive sporting event, get very drunk with them and this would often lead to work or at least the promise of it.

However, in a world of Google, empowered information hungry consumers, and procurement persons, the old style of marketing based on near renal failure is considerably diminished.

If you want go direct to clients, then your Feefo ranking, your website, your industry profile, your customer feedback and your Google ranking will all be more important than the Minister of Fun and far more difficult to manage and understand.

If you are looking for work direct from other organisations, then you may have more need for your Minister of Fun. But, even in this environment, we are now in the post Spitzer enquiry world so fantastic days out are far less wanted or expected than they were.

The good news is that the new world forces you to become more self-sufficient and less reliant on a few key relationships. So my advice is look to increase the profile of the individuals in your firm, together with the firm itself and get as many non-lawyers to vouch for you as possible.

So awards, positive press coverage, a good understanding of Feefo and Google and a joined up marketing strategy are all key to future success.

So yes, lawyers do need to be able to sell themselves in an increasingly competitive market. How you do this is up to you. I have pointed out a few ways, but you know your business best. Why, is because the world has changed and so should you.

David Bott, Senior Partner, Bott & Co.

Lucy Morrison, Managing Director, Central Law Training (CLT). +44 (0)121 362 3511 | e: lmorrison@clt.co.uk | web: www.clt.co.uk twitter: @clt_uk

ML // December 2014

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The Views

A kick in the teeth...

J

property from them.

ust when we thought that the property market had stabilised and we were all back to happy days, lawyers are now having to live daily with the spectre of solicitor imposters – fraudsters cloning solicitors websites, emails and letterheads and posing as legitimate to the public with the sole intention of stealing money or

This is a new phenomenon caused by the nature of online commerce and I am afraid it is only going to get worse. We are probably used (or resigned ) to the somewhat naïve requests from high ranking officials from foreign countries asking for our help and in return being happy to share their countries considerable assets with us , or indeed the good news that we have won the Canadian Lottery (even though we didn’t enter it ). Such amateur requests to take money off us may even bring a smile to our world-weary faces.

However, the cloning of legal firms has taken attempted fraud to a new and dangerous level and whilst the likes of the SRA do their best to notify us (and Rob Hailstone of the Bold Group should be applauded for his daily notifications of these attempts), the sad reality is that it is impossible for any regulator to eradicate cloning and that we are now living in a world where there are cyber thieves out there seeing the legal profession as a route to their criminal activities.

According to the SRA the number of reports of bogus firms is up over 20% in the first 8 months of this year.

Even worse than the effect on the good standing of the legal profession is the fact that victims are not covered by the normal statutory protections such as the Compensation Fund – because any wrongdoing was not carried out by a regulated entity.

As a further kick in the teeth to a poor firm who has seen its reputation sullied by an imposter, it seems that the SRA has now warned its community that the genuine firms themselves could be held liable to the victims if they hadn’t acted to prevent identity theft. Advice to firms is therefore to keep vigilant – make sure you check all other professionals you are dealing and keep on checking the web to make sure no one is out there impersonating you.

Oh- and don’t think about putting your prices up to cover all this or you may not be treating your clients fairly!

29

A healthy balance...

Moving into 2015, and with increasing pressure on young people as a result of dramatically increased university fees, is the sector doing enough to support the next generation of legal professional?

T

he short answer is no. Put simply, the facts are shocking: the Sutton Trust has estimated that students aged 18 enrolling on a degree course will now find themselves repaying their tuition fees into their 40s or 50s.

One reason for this is that in 2012 the government changed the student loans system to one based on real, above inflation, interest rates. The Sutton Trust estimates that average student debt on graduation is now around £44,000.

So what can the legal sector do to support the next generation of legal professionals? Helping students make an informed career choice would be a good place to start.

Most students will enrol on a law degree with a limited understanding of what it is to be a legal professional. But it is at this stage that they, and their parents/guardians, should be making a choice based on realistic information regarding opportunities and potential salaries. The thought that an 18 year old could commit to £44,000 worth of debt in any other context without extensive advice and counselling is absurd: why should choosing to commence higher education be any different?

The problem is compounded by the worrying determination on the part of some to enrol on the LPC without a realistic prospect of securing a training contract. Perhaps this is because employers are not being listened to: many simply do not require an army of solicitors, or indeed LPC-qualified paralegals, to do routine process-driven work. If a clear, accessible and objective source of career guidance advice was more readily available, then some students would make more sensible choices in their careers.

Unfortunately, the well-established alternatives to the law degree and LPC route are still not as widely promoted as they should be. CILEx has done much to counter this though. It has for many years championed alternative, vocational routes into legal practice, and its pioneering work is beginning to attract more attention from parts of the sector that were previously CILEx deserts.

Eddie Goldsmith, Founder, Goldsmith Williams Solcitors.

This is reflected in CILEx Law School, the leading provider of CILEx courses, experiencing a big upswing in the interest from employers in its legal apprenticeship and CILEx professional courses. With concerted effort on the part of all stakeholders in the industry, it is through alternative routes into the legal profession that the industry will achieve a healthy balance between the skills it needs and trained staff available to meet those needs.

Noel Inge, Managing Director, CILEx Law School.

ML // December 2014

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The Views

31

To the Tower!

A fresh perspective...

Aside from the financial implications, why are non-lawyers so keen to work in the legal sector and how is non-lawyer involvement changing the legal profession?

Is the pressure of having to be creative and innovate legal services preventing many firms from making changes to the business management side of the firm?

Or, should service innovation and business management evolution go hand-in-hand?

T

he opening of the legal services market was without a doubt the catalyst that led to an emergence of non-lawyers, to seek opportunities in the sector. For many, I suspect it was driven primarily by financial motivation, for others however it presented a very real skills stretch, a challenge and a new career path.

Today, the sector is awash with consultants for this, advisers for that and ideas men who promise the earth for very little effort. It seems I am getting cynical in my old age, but for a non-lawyer looking to break into the legal services sector and be engaged by traditional law firms be warned, the streets are not paved with Gold.

Anyone seeking a career in legal services had better be able to bring something different to the table; a skill set that will add value and create income not add cost. Importantly they must bring a depth of knowledge of the issues and challenges that face the sector, the majority of which is traditional law firms.

Now, about the term non-lawyer. Why call someone who may be qualified up to the hilt in other ways a non-lawyer just because they did not want to be a Lawyer? Would you call a Lawyer a non-CEO? Would anyone call the team Physiotherapist a non-Footballer? Whoever coined that phrase should be taken to the Tower and hanged!

Back to the matter in hand, five years ago, a disillusioned banker decided to make a career leap. It was motivated by two things, the desire to move out of an industry that had lost its way and the desire to move into an industry that he had a genuine passion for and interest in. An industry where he could bring a skill set that could, and as it turns out, would make a difference to the businesses he was fortunate enough to be engaged by.

Lawyers had become bogged down with compliance, regulation and management. Add into the pot the commercial reality of running a business with the financial and operational pressure that goes with it. Non-Lawyers help Lawyers practice Law but find another description for them!

Tony Brown, Owner, AGB Legal.

R

esponding to changing customer needs requires constant innovation. Expectations of ‘more for less’ mean that sustainable legal businesses need not only to be able to innovate, but also to drive down the cost of doing so, or risk significantly eroding profitability as customers migrate towards the services that meet their needs, at the price they are willing to pay.

Most clients of consumer legal services are infrequent users and their expectations are driven as much by what they are used to in other sectors, as it is by any historic experience of using a lawyer. While it is possible to generate short-term gains through a facade of innovation, unless the business management and processes sitting behind this are robust, the business will be building on unstable foundations. Strong business management is a vital element of understanding the true cost of delivering a service - and that means costs in all areas of the business.

Recent independent research on conveyancing highlighted a broad spread of client needs but significantly, speed of delivery among selling clients was the most important factor. Addressing this particular need highlights the importance of combining innovation with appropriate business management. At myhomemove, the gains we’ve made in terms of transaction speed have come through multiple small innovations, each of which provides a measurable contribution to the whole.

While technology plays a significant part in reducing unnecessary delays and automating or devolving processled tasks; ultimately it is a business management culture, with clear accountability and a detailed understanding of the levers that can be pulled to increase transaction speed, which unlocks the potential of the technical and process innovations.

Wayne Dyer says - “If you change the way you look at things, the things you look at change”. While he was probably more focused on ‘self-improvement’, it is a phrase that legal businesses should pay attention to. Legal services innovation, that starts by looking at things through the eyes of the client and then through a management lens, will focus on combining creativity with control to deliver innovation that can provide sustainable long-term value.

The ‘business led’ mentality that comes from being an ABS with external investors, means that management as a discipline is valued as much as legal expertise and in my view, in ‘Modern’ law, that’s how it should be.

Mark Montgomery, Customer Strategy & Marketing Director, myhomemove.

ML // December 2014

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The Views

Digital natives...

Caught in a trap...

What new opportunities are there for law firms to embrace digital and online marketing in 2015? Have we seen it all and do law firms fully understand the opportunities available through exploring new online/ digital marketing channels?

As the UK economy continues to recover and strengthen, how can firms achieve a balance of increasing revenue and profitability growth?

D

updates frequently.

uring 2015, we anticipate a number of changes to digital and online marking. A key focus of the market will mean that law firms will need to concentrate on user journeys and experiences during each interaction with their firm, coupled with compliance and risk, whilst all retaining high client satisfaction levels with

On user experience, in a world where people expect information at their fingertips and are more likely to choose a brand based on peer feedback on social media channels, paying attention to a digital user experience is imperative.

A good example of which would be Riverview Law – whose website uses video in order to keep their consumers engaged.

To effectively compete in this instantaneous world, law firms need to get the digital basics right first and foremost, then stand out from the crowd with useful content, engaging in meaningful conversation and going to where the potential customer is.

One such example is Instagram. A generation of ‘digital natives’ are the new customer and they expect honest, informative and useful content from brands across platforms. Instagram is no longer just a photo-sharing app, but an opportunity to create microsites on social media (IKEA is an example), utilise video in a timeframe effective with the prospective current client and the opportunity to encourage peer-to-peer referrals.

During August and September 2014, mmadigital completed a research project into the Legal Insider’s Top 200 UK Law Firms. The results were compiled in a ‘White Video’ and launched at comparemyfirm.co.uk. mmadigital believe that in order to maximize their potential, websites must load within 4 seconds or less, have video content, be mobile responsive, be cross-compatible on a range of browsers and be compliant. The results of the research confirmed the suspicions that law firms do not fully understand the opportunities available to them and are not fully exploiting the potential of digital marketing. mmadigital discovered that of the Top 200 firms, 56% do not have a mobile responsive website, 90% do not have video content on their homepages and only 18% were web compliant. Therefore, it is clear to see there is a lot of work still to be done to make sure law firms are fully exploring the opportunities available to them through their online marketing and making the most of the new ways to attract potential clients.

Dez Derry, CEO, mmadigital, online marketing for modern law firms.

33

F

irst of all, although the UK economy is generally recovering, there are many businesses that are not seeing the benefits themselves. In the legal sector, it is very much a polarised situation; some law firms are doing extremely well – others are not. Those with exposure to legal aid and personal injury work in particular may not share the view that increasing revenue is necessarily a problem they are facing. For those firms that are prospering, ensuring that additional revenue does result in enhanced profits is an issue that they should be mindful of.

In order for firms to be aware of whether additional revenue will result in additional profit, they need to concentrate on two things in particular: 1. A knowledge of what the drivers of profitability are; and 2. Accurate and relevant management information to allow appropriate decisions to be made Drivers of profitability My in-house understanding of finance in law firm training courses sets out that the key drivers of profitability are utilisation rates and recovery rates. As more work is taken on, it is vital to ensure that all fee earners retain a high level of chargeable hours as a proportion of their total available hours (their utilisation rate) and that they recover a high level of that chargeable time when they raise their bills (their recovery rate).

Management information In order to monitor the utilisation and recovery rates, it is vital that all fee earners in all departments (even fixed fee work) record their time fully. Once accurate time recording is in place, calculations can then take place. The management information should not simply concentrate on fee income and expenses (those are reactive indicators of profitability), but on the drivers behind those figures.

Simple, easy to understand reports on a KPI basis should replace the traditional financial reports and in particular should highlight utilisation and recovery for individual fee earners and teams. Those reports should be monitored by management, but also used as a self-management tool by the individual fee earners.

It is very easy to be caught in a trap of recruiting additional fee earners as workflow increases, but that should only be done if utilisation and recovery rates are high. Most firms that I speak to are very aware of the importance of profits over revenue. Those that have concentrated solely on the former have certainly had their struggles during recent times.

Andy Poole, Legal Sector Partner, Armstrong Watson.

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ML // December 2014

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The Views

35

The whole package...

Organic acquisition...

As the UK economy continues to recover and strengthen, how can firms achieve a balance between increasing revenue and profitability growth?

How can/should law firms be managing consumer feedback and satisfaction? Are data capture methods being effectively utilised to develop and hone service offerings?

T

his is a tough nut to crack. However, there are four important pointers to keep in mind.

First, there is a lot of wisdom in the old saying “turnover is vanity, profits are sanity”. Firms should not be pursuing growth for growth’s sake. Whatever form growth takes, firms should ensure that growth in their revenues translates into increased profitability.

Next, it’s important that every firm’s management team has the right blend of skills and experience to lead the firm into profitable growth. At the risk of stating the obvious, the range of skills required by the management team of a firm to effectively manage during a downturn are significantly different from those required to successfully direct the firm in its return to growth. Firms should therefore be assessing what skills are now required and adjusting the composition of the management team to meet those requirements.

Third, firms should strive to understand, meet and preferably anticipate client needs. Following the global financial crisis, the liberalisation of the legal profession in England and Wales and the arrival of new competitors in the market place, clients are increasingly calling the shots in respect of precisely what services they require, how those services are to be delivered and what price they will pay.

Firms should see this as an opportunity for innovation, not a threat to their well-being. The pricing model correlates directly with turnover so firms must have a very clear idea of what their clients want and how these services should be priced. Asking clients is not a bad idea! To convert revenues to profits will increasingly require efficient internal processes so firms should also be reviewing their work processes as part of the overall package.

Last but not least, people are most law firms’ greatest asset.

But unless those people have the ability and willingness to change and innovate, they may also be a firm’s greatest liability. Who a “lawyer” is will change significantly as a range of roles develop within legal businesses which do not involve directly providing legal advice. Non-lawyer owners in particular will look at what a person brings to the business, not their qualification. Skills such as project and process management will be critical to the future success of firms.

George Bull , Chair of Professional Practices Group, Baker Tilly.

G

reat client service can take on many forms – from how the phone is answered, to a smooth and simple billing process. However, it takes more than one diligent member of staff to give a good impression - the whole organisation needs to be focussed to achieve great quality service.

Yet how should a legal firm measure how satisfied their clients are? Unless you are working with account management in the corporate sector or with high net worth individual clients with whom you have a constant dialogue, you will not realise your clients have issues until they complain or, worse still, simply stop doing business with you.

And for law firms that’s an important point. It’s proven that it is far more cost effective to retain a client than it is to acquire one. In fact, research suggests the difference could be as much as six times. Six times the effort to acquire than retain. In a highly competitive market where margins are squeezed that is not a ratio a law firm wants to be dealing with. So, it makes great commercial sense to keep clients happy and one aspect of that is constantly monitoring your client base for feedback.

Many businesses the world over, including BMW, HSBC and Vodafone utilise data capture methods such as NPS to monitor the satisfaction levels of their customers.

Running NPS (Net Promoter Score) surveys on a biannual basis can help firms spot dissatisfaction in their customer base and identify any trending issues which over time can serve as an accurate measure of client perception.

By constantly monitoring the satisfaction levels of their clients and using statistical samples to identify trends, firms can look to refine their service offering – making clients even happier. Happy clients have a greater propensity to spend and of course are less likely to look elsewhere for services.

So, not only do you maximise the revenue you generate from your client portfolio but you only invest in new client acquisition as a predetermined strategy, rather than as a defence mechanism against an otherwise shrinking client base.

Improved client satisfaction also reduces the resources required to handle client issues – especially senior resources that could otherwise be generating revenue.

Those happy clients are likely to recommend/refer you to their associates, partners and peers – an organic (and inexpensive) way of acquiring new business.

Jitendra Valera (JV), Chief Marketing Officer, Advanced Legal.

ML // December 2014

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The Views

Why reviewing costs should be on every firm’s priority list

N

ext to staff costs, overheads such as telecoms, IT, office supplies and insurance can be major sources of expenditure for law firms, so why is it that benchmarking supply costs can be so low down many firms priority lists?

Although procurement monitoring is a process that all financially astute firms should be doing, many would claim not to have the time or expertise. However, those who do spend the hours needed benchmarking the prices of regularly used products and services can generate a very profitable return on the time invested.

Whilst many suppliers offer a plethora of products and services that are of great value to legal practices, they are not the ‘right fit’ for every firm, and can therefore fail to deliver what they promise. Those that do perform well are often subject to ‘price creep’, a process that can take more and more off your bottom line each year. Keeping abreast of any changes to service, product or pricing can quite literally be a full time job.

Buying networks claim to provide a ready-made solution to compare the cost efficiency of products and services, but can themselves be under resourced or lack expertise.

My own company founded the Oyez Buying Network earlier this year to offer the impartial support and advice that legal firms require to get the very best value from their purchase decisions.

Changing providers for major services such as telephone systems, utilities or searches can be a risk-laden process.

Being able to turn to a trusted supplier who is in partnership with a wide network of established providers can offer the reassurance of a sound decision, based on your specific business needs.

As the recession recedes, many legal firms are considering making efficiency improvements and changes to enhance their business. If you are one of the firms considering your alternatives, a buying co-operative is one of the very best tools you can use to ensure the choice you make is exactly right for your firm.

Nick Hodges, Managing Director, Oyez Professional Services.

37

Working as one...

Do lawyers need to be able to sell themselves in an increasingly competitive market? If so, how and why?

A

s the UK legal market continues to consolidate fuelled by the rapid surge in Alterative Business Structures (now over 310 licensed and growing); increased M&A activity and wider macro pressures, tighter margins and the higher demands of today’s consumer, to say it is “survival of the fittest” would be something an understatement!

Many of the 161,000 plus lawyers in England & Wales regulated by the SRA still operate within traditional partnership structures, where ownership of the client remains a debate fraught with politics and sensitivities.

Such an outdated mindset is a real challenge for the future survival of the law firm brand.

The rule of thumb requires that those who can sell, should; those who can’t must grasp the help that is at hand.

Both “sellers” and “non-sellers” need to engage with the business development (BD) process which, in essence, constitutes: identification; acquisition; maintenance and retention. These elements are critical to the survival of firms. Lawyers are essential in the BD process. They are the “Product” and sit at the heart of client relationships.

Central support functions need their feedback and often, wise counsel.

Only firms where the whole is greater than the parts will prosper in the battle of the legal brands no matter whether B2B; B2C or B2B-C. When lawyers and their professional support teams work as one in the BD process then existing and new clients will receive clear messages about firms’ values and services.

Centralised support functions are key; in particular the specialised areas of marketing, bids and tenders in which, too often, non-professionals dabble resulting in poor bid or no bid decisions and outcomes, ultimately risking reputational damage internally and, more importantly, externally for the firm/brand.

Lawyers who genuinely understand their own SWOT and align their strategies accordingly will prosper. To be active in the BD process taking advantage of LPO/BPO opportunities means ensuring time is spent creating real value with clients rather than basic administrative duties.

Time spent on thought leadership; social media; blogs and attending forums and events will serve a greater ROE than bundling through four hours of dictation.

Silo mentalities must become a feature of the past if firms are to survive and remain competitive and claim or retain their share of a growing, consolidating £30bn market.

Michael George Davidson, Head of Business Development, Consumer Law, Parabis Group.

ML // December 2014

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The Views

Unlikely companions…

Is the pressure of having to be creative and innovate legal services preventing many firms from making changes to the business management side of the firm? Or, should service innovation and business management evolution go hand in hand?

F

rom my perspective, this is not a question of whether a firm should focus on innovation or the business management side of the firm. They are both vitally important. Rather, there are two more pertinent questions;

39

The next generation...

Moving into 2015, and with increasing pressure on young people as a result of dramatically increased university fees, is the sector doing enough to support the next generation of legal professional?

T

he cost of the traditional route to qualifying as a lawyer is high.

Students have to fund tuition fees for their undergraduate degree (up to £27,000) and the LPC or BPTC (up to £15,000 for the former and £18,000 for the latter).

(a) What balance does the firm need to strike between innovation and traditional business management in the firm? (b) Who is going to be responsible for executing on these two aspects of the running of the firm?

Many aspiring lawyers will come from a non-law background and will therefore need to complete the GDL (up to £10,000). Some students will consider that a Masters-level qualification (around £10,000 on average) will make them more employable.

In answering those questions, it is essential that firms accept that the roles are quite different and necessitate different skill sets on the part of those executing them. In the case of traditional management of the firm’s existing functions, these require skills are themselves more traditional in nature. Such managers prefer organisation, structure, predictability and manageability, cohesion and clear definition.

It’s therefore not inconceivable that a newly-qualified lawyer will have spent over £60,000 on tuition alone.

This does not include the cost of living, which will have to be met over four to six years of studying or the cost of attending mini pupillages and vacation schemes.

In contrast, the skill set required of those charged with responsibility for innovation in the firm is quite different.

These will be people who are considerably more comfortable with ambiguity and a lack of structure. By definition, they will need to be people who are comfortable with new concepts, new processes and new documentation.

Indeed, the firm will be looking to those people to conceive, create and formulate those new ideas, concepts, processes and documentation and then execute them.

The differences between traditional management and innovation are sufficiently stark and demanding to mean that expecting both from one or two people is completely unrealistic. Traditional management functions occupy their traditional places in the firm but the focus on innovation needs to occur in the areas of the firm where innovation is required.

An example might be enhanced analytics capability and experimentation with an experimental reporting dashboard, emphasising profitability rather than billable hour’s budgets, with a view to measuring changes in fee earner behavior.

Necessarily, traditional management and innovation must occur in tandem. While they might in one sense be viewed as anything but travelling companions, the future prosperity of firms lies in achieving a judicious balance between the traditional management role characterised as ‘a steady hand on the tiller’, and the necessary chaos and disruption that is both a precursor to and a byproduct of innovation.

As a result, many students view a career as a lawyer as being open to only the well off. This view is perhaps reinforced by the disproportionate amount of lawyers from a privately-educated background: 28% of solicitors and 44% of barristers were privately educated, compared with the UK average of 6.5%.

‘Earn while you learn’ training has been available for many years to those who did not wish to follow the traditional route to qualification. Perhaps the best known is qualification as a Legal Executive. CILEx currently represents 20,000 members. Legal Executives are able to obtain specialist advocacy qualifications and are eligible to be appointed to judicial positions.

Studying as a Costs Lawyer also provides a route into legal practice. Trainee Costs Lawyers complete a three-year course whilst working as costs draftsmen.

Qualification results in the right to conduct litigation and the granting of higher rights of audience.

One training provider offers an ‘articled apprenticeship’ scheme, which allows students to complete an LLB and LPC over a period of six years whilst working for a firm of solicitors. Students will qualify as solicitors at the end of the six-year period. The employer is able to fund the academic training.

The news may not be as positive for would-be barristers.

Currently, those applying to complete the BPTC are able to access £5m of funding offered by the Inns of Court.

However, Lord Judge has recently expressed a view that this funding would be better diverted to those in the early stages of tenancy.

Richard Burcher, Chairman, Burcher Jennings.

Alex Bagnall, Head of Commercial Litigation Costs, Lawlords.

ML // December 2014

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The Views

What the client really wants How can/should law firms be managing consumer feedback and satisfaction? Are data capture methods being effectively utilised to develop and hone service offerings?

T

his is an area very close to my heart. I, like most of my fellow personal injury practitioners, entered the profession and this sector wanting to make a difference for our clients.

We recognise that where an injustice has been done, a victim deserves for that wrong to be put right, insofar as compensation can in the most extreme of situations. However, delivering a good or excellent service is not enough in my view.

There is always more than can and should be done to develop service offerings and that really starts with the client and what they want. I accept that a large proportion of clients are quite content to leave their lawyers to get on with what they do best but I have rarely found that no one is willing to offer some feedback, even if it is a simple endorsement of how well we have performed. Canvasing feedback and opinion from our client base is vital to ensuring that we are delivering the service how they want it…not how we think it should be delivered.

The challenge comes in deciding what type of feedback a firm should look for and how. If a firm has a “charter” or “service level agreement” with its client base, a good starting point is to ask specific questions about whether a client agrees that specific parts of that charter/SLA was met. Direct feedback on the fee earner, support staff, method of communication, speed, use of simple language, availability and accessibility to name but a few are also important.

Moving onto the “how”, I believe that consumers are beginning to get fed up with the amount of survey requests they are getting. We are inundated with requests for views by email, text, telephone and even when we visit a website a little pop-up window asks us to complete a short survey. A variety of methods are going to get you the best information, as our clients like to communicate in different ways. Take my firm, Aequitas Legal, which won the Law Society Excellence Award in Client Service in 2013 and was shortlisted in 2014. We survey over the telephone, by letter, by email and by our mobile app, inCase. We do this multiple times during the life span of a matter and not just when we send a cheque. The judges in 2013 told me that the biggest reason why we won was not that we just sought feedback but we did something about it. Arguably, managing feedback and satisfaction is the easy bit… implementing change is a lot harder to achieve, especially when considering the cost-benefit analysis.

41

How to thrive...

Do lawyers need to be able to sell themselves in an increasingly competitive market? If so, how and why?

I

have been asked to write an article on this subject as an ‘outsider’ but as someone dealing day to day with solicitors. So, the simple answer is, yes. Of course solicitors need to sell themselves as otherwise competition from elsewhere will erode their market.

How and why? Our world has shrunk. It used to be the case that, if you needed a lawyer, you would telephone your high street practice, make an appointment and pop along in a few days or perhaps the next week. The reason you did this was because your world wasn’t all that big and you wouldn’t know of any other firms. You might look one up in the Yellow Pages but you would have had to ask them to send a brochure and perhaps ask around to find out if they were any good.

Now we have the internet. You can ask Google to give you a list of firms and even specify the expertise you want them to be good at. You then make a choice based on a number of factors but more often than not, location is way down the list. A firm of solicitors is therefore now competing with all of the firms in the country, not just the one in the next town.

What is more, people carry out these searches at all times of the day and want a quick response. They may then send an e-mail or telephone the firm during their lunch break. I still come across firms who close between 1pm and 2pm (so they are not selling themselves very well).

Service is now key. Solicitors have to answer the phone promptly, reply to emails and have an up-to-date quality website, which is fully optimised for their areas of law. Oh yes, and be cheap. If firms aren’t cheap, they have to offer some justification, otherwise a client will click on the next firm in their search results. Tough, isn’t it?

Well yes, but that doesn’t mean firms can’t thrive.

Practices that embrace technology and a high level of service, who open longer hours and spend money on websites and optimisation, will do well. We work with many firms who automatically insure cases by linking their IT system with ours, thereby quickly protecting the client as well as saving fee earner time and money. Those firms are growing. Are you?

Daniel Morris, Director and co-founder, Box Legal Limited.

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

ML // December 2014

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The Views

Crossing the line...

Ahead of the game...

Aside from the financial implications, why are non-lawyers so keen to work in the legal sector and how is non-lawyer involvement changing the legal profession?

How can/should law firms be managing consumer feedback and satisfaction? Are data capture methods being effectively utilised to develop and hone service offerings?

O

ne of the great fallacies of the age is that the Legal Services Act has been the one single catalyst to open up the market for legal services.

In fact, of course, the traditional legal professions have never had a monopoly over legal advice and legal work (the Solicitors Act only restricts the “closed shop” to a remarkably short list of “reserved activities”) and plenty of specialist advisers have offered advice on legal topics – employment, immigration, company law to name just a few. Some of the “big four” accountants have for years run large departments stuffed with lawyers who dispense advice to their clients on legal topics but who hold back from crossing the line into the reserved activities, such as conveyancing, probate and court (as opposed to tribunal) litigation.

I suggest that this is a key answer to the first part of the question posed above: the fact is that you cannot put legal work in a separate box – it is simply one aspect of the sort of commercial advice that any articulate individual with experience of a specialist topic can and will give. It only becomes “legal advice” as we commonly understand it, when it is given by a person who has the professional qualifications of a lawyer and who practises in the business that is labelled and regulated as one that practises law.

Given this premise, it was inevitable that businesses for whom legal services are an important constituent of their offering (liability insurers are the obvious example), would look to get into the legal arena themselves, once the ability to own a law practice became possible in the aftermath of the 2007 Act. Sticking with the insurance sector, it is not surprising that if an insurer, a broker or a loss adjuster can go only so far in seeking to meet and resolve a claim on behalf of a policyholder, it makes sense that they would want to bring the whole process under one roof and seek to set up their own law firm or to buy in to an existing law firm.

We have thus seen a number of insurers setting up their own ABS legal practices, often using their own branding to promote it. I like to think that the driver for these insurers is less to be able to reduce their spend on law firms and more to do with ensuring hands-on control over processes that are integral to their business model.

David Simon, Chairman, Triton Global.

ML // December 2014

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gree with it, like it, or concerned about the possibility of negative feedback; doesn’t mean it will pass the Legal Services profession by! It is fast becoming a concern as to why a business is not displaying verified public feedback.

Using client feedback about your services and skills has always been valuable, but with online focus playing an ever-bigger role in people’s lives, it has now become crucial to your business and how you run it. Any business can tell customers how good they are, they can even publish testimonials on their website, but how does the customer know they are genuine? These are so much more powerful for you, when they are independently verified.

I’ll wait, sit tight and see what happens Why wait for your competition to make the first move and get ahead of the game? For some, the temptation to be a follower and never a leader is the easy option, why be different? In years gone by this was acceptable and almost the norm, however nowadays being different may be the only way to get in front of your prospective clients. Eager and forward thinking practices will lead the way and will be rewarded by clients welcoming Legal Services into the comparison arena, providing them with a more informed choice.

What should I look for, if I decide to take the plunge?

You should choose a site that`s free to the user and one which does not require the consumer to register. With reports on the growing numbers of fake Solicitors and Barristers, the thought, for some clients, to have to leave their personal information on a site and await a call back from someone whom they had no part in choosing, will be a concern. It is important to ensure that there is no barrier for the consumer when using the service, but also that it is a sight they know and trust.

The consensus of opinion is that if you want to grow your client base or just make sure you are doing the best to keep hold of your existing customer base, then using an online service like Checkaprofessional.com could provide a whole range of advantages to you.

Lisa Beale, Head of Checkaprofessional.com.

The Views

Opportunity or threat?

O

ne of the most common concerns when considering changing your firm’s professional indemnity insurance (PII) renewal date away from 1st October is the potential lack of competition available at the time your next renewal occurs.

Traditionally, insurers have ramped up their resources for the 1st October renewal date; resources are pooled across their organisations to ensure they can react quickly and competitively against other insurers for business. This created a hive of activity for six to eight weeks of the year. The most common questions asked by those that have considered changing their renewal date are: Is there a vibrant market for those renewing at other times of the year? And, what will market conditions be for competition in March or April?

The need for specialists Due to the spike in demand around the October renewal season, both insurers and brokers alike allocate resource from multiple teams to stay on top of the workload. For the smaller broker, it would be uneconomical to maintain such a large team after the renewal season, and many disband their solicitors PI team in October/November. With variable renewal dates, there is a greater need for the insurance market to maintain full-time legal services specialists all year round.

There’s time now Dealing with a large number of enquiries has always caused a big headache for insurers and brokers in September. In the closing days of the traditional October renewal season (as it was), an underwriter, no matter how specialist or experienced, could have a matter of minutes to review a firm, including its claims history, and decide whether to offer terms and, if so, the premium and excess they feel is appropriate. When the market is “soft”, this demand can result in competitive premiums being offered: when the market is “hard”, this demand can result in significant increases occurring.

Giving an insurer the opportunity to properly understand and appreciate your business activities and controls can be a decisive factor. The concern is that although insurers will not have to deal with the sheer volume of enquiries they have to in September, is there the same underwriting focus and appropriate resource available at other times of the year? Will there be sufficient choice available?

Is a new renewal an opportunity or a threat?

We believe that if the market is approached properly, there will be alternative insurer interest. Using a specialist broker that has a dedicated legal services team all year round can help and provide you with expert risk advice and access to the insurance market you require. The change of renewal date can be a significant opportunity and may make the whole process a less stressful time for all.

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Reducing the risk profile…

Evidence from the SRA suggests that this year’s PII renewals season has not been a smooth one. What can firms do to ensure they are best prepared and how can they make themselves appealing to insurers?

P

I renewal season is one of the most demanding periods on a firm’s calendar. The extent of data required to complete the documentation for renewal makes the whole process very time consuming and laborious, particularly as each broker/insurer has their own set of questions and terminology for firms to acquaint themselves with.

The key to reducing the time it takes to complete these applications each year is to have suitable systems in place to have all relevant information readily available; from recording how many files are opened each month, work types, statistics on introduced matters, total fees generated through to ensuring that complaints and claims registers are kept up to date.

Quite often, we see registers in place to enable staff to record key information, but they are left incomplete or unused altogether, as fee earners, and key personnel forget to update them, which in turn creates more admin for those tasked with the renewal applications.

With so many bodies requiring statistical information about firms, streamlining the information is a sensible way of managing the data held within the firm. One month a firm could be completing their CQS application, the next their WIQS application, then updating the Lender Exchange system, preparing for a Lexcel visit and then PC renewal; it is an ongoing process which, if not centralised could take many hours away from valuable fee earning.

One of the added challenges with renewal this year has been with rated insurance. Some firms are unaware of the different types of insurance on the market. For example, those who do not have “rated” insurance will automatically be removed from some conveyancing panels.

As with any type of insurance in the market, the key is to reduce the risk profile. A firm’s risk profile can be raised by a variety of different factors, be it claims and complaints histories, regulatory investigations or the makeup and structure of the firm, including the services being offered.

Each firm should be considering their risk profile each year, and setting indicators as part of their business plan and annual review of risk to monitor, evaluate and reduce those risks, making them more appealing in the insurance market. Risk will never be negated altogether, but can be carefully managed and reduced.

Priya Anand Patel, Director, Legal Eye Ltd.

Colin Taylor CIRM, Executive Director, Legal Services Practice Group, Willis.

ML // December 2014

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The Features

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THE FEATURES

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The Features

Modern LAW Awards 2014

THE ECLIPSE PROCLAIM MODERN LAW AWARDS 2014 The second annual Eclipse Proclaim Modern Law Awards took place on 15th October at the Park Lane Hilton, London. Charlotte Parkinson, Modern Law, summarises the evening’s proceedings and takes a look at the winners.

Guests enjoy the entertainment

Kate McKittrick and Professor Stephen Mayson welcome guests

The Gospel Choir draw people to the dance floor

T Dianne Burleigh OBE, Lifetime Achievement Award

ML // December 2014

his year’s Eclipse Proclaim Modern Law Awards had been highly anticipated by many, having established itself as the national awards for those embracing change and entrepreneurship in the legal sector. Over 550 attendees flocked to the new venue of choice, the Park Lane Hilton, for the glittering awards ceremony to celebrate both law firms and individuals within the sector who are thriving in the new legal world.

The Features The champagne reception buzzed with anticipation and excitement and guests were entertained and amazed by the magicians, who circulated throughout. Guests were then ushered through to the main ballroom, laid with opulent table dressings and sparkling centrepieces. The evening’s proceedings were once again expertly steered by author and broadcaster, Gyles Brandreth, whose industry knowledge and dry wit is always a hit with the guests. This year’s Judging panel, Chaired by Professor Stephen Mayson, included, Michael Napier CBE, QC (vice Chair), Michael Napier Consulting; Steve Arundale, RBS/NatWest; Christina Blacklaws, Blacklaws Consulting; Dez Derry, mmadigital; Jonathan Djanogly MP; Jaunita Gobby, Legal Eye; Stephen Gowland, CILEx; Jonathan Gulliford, Gulliford Legal Consulting; David Jabbari, Parabis; Sheila Kumar, Council for Licensed Conveyancers; Nicholas Lavender QC, The Bar Council; Bridget Prentice; Electoral Commissioner Adam Sampson, Legal Ombudsman; Jonathan Smithers, CooperBurnett Solicitors and Bippon Vinayak, Doctors Chambers Ltd.

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Law Firm of the Year: Schillings

‘This year’s prestigious Lawyer of the Year accolade was awarded to Simpson Millar’s Emma Pearmaine, who is Head of their Family Law Department’ Gyles Brandreth This year’s outstanding achiever of the year was Martyn Day, the senior partner of Leigh Day solicitors, who was recognised by the panel for his outstanding contribution to legal services (see our interview with Martyn from page 13). Martyn heads a team of over 20 lawyers at Leigh Day, representing claimants in cases against corporate and government bodies. He is well known for running many high profile and controversial cases, mostly on behalf of groups of claimants, both in this country and abroad. He was described by the Chambers guide to the legal profession 2013 as ‘without question one of the most knowledgeable and experienced environmental lawyers in the country.’

Dianne Burleigh OBE was awarded Lifetime Achievement of the Year and said of her win, “This Award is particularly special to me, when I see

Best Marketing Campaign: Bott & Co Solicitors

Emma Pearmaine, Lawyer of the Year

Zoe Holland, Entrepreneur of the Year

Guests

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Winners ABS of the Year –up to 25 employees Winner: Richmond Chambers Highly Commended: Crabtree Law LLP ABS of the Year – 26 – 100 employees Winner: Schillings Highly Commended: Convey Law ABS of the Year – over 100 employees Winner: myhomemove Highly Commended: Just Costs Lawyer of the Year Winner: Emma Pearmaine- Simpson Millar LLP Highly Commended: Christine Thornley - Gorvins Solicitors Non Lawyer of the Year Winner: Christopher Mills - Schillings Highly Commended: Gladys Swaim-Rutter - Roberts Jackson Solicitors Team of the Year Winner: TUI Travel PLC Joint Highly Commended: Kent Legal Services Join Highly Commended: Colemans-ctts Rising Star of the Year Winner: Joanna Parkinson - Michael W Halsalls Highly Commended: Hendrik Puschmann - Kenneth More Theatre - White & Case Innovation of the Year Winner: Emsleys Solicitors Highly Commended: Berwin Leighton Paisner Entrepreneur of the Year Winner: Zoe Holland - Zebra Legal Consulting Highly Commended: Geoff Wild - Kent Legal Services Client Care Initiative of the Year Winner: Bott & Co Solicitors Highly Commended: Browne Jacobson

who made up the judging panel. All people at the forefront of leadership and innovation, and who I admire. For them to assess my contribution to legal services and the legal profession, and not be found wanting, is a real and humbling compliment.” Other notable winners on the night included Schillings, who scooped three awards for ABS of the Year 26 – 100 employees, Law Firm of the Year and Non-Lawyer of the Year, which was awarded to their Chief Operating Officer, Christopher Mills. Personal Injury solicitors, Bott & Co, also picked up two awards for Client Care Initiative of the Year and Best Marketing Campaign of the Year. Accounting giant, Baker Tilly were the winners of one of the new awards for this year, Supporting the Industry, for their innovative financial and business solutions. This year’s prestigious Lawyer of the Year accolade was awarded to Simpson Millar’s Emma Pearmaine, who is Head of their Family Law Department (see our exclusive interview with Emma from page 15).

‘These awards demonstrate the evolution of the emerging legal landscape, and the difference this is making both to the way in which the public gain access to legal advice and the justice system and to clients more generally’ Professor Stephen Mayson As with last year’s awards, there were a number of surprises throughout the night, including a flash mob and a Gospel Choir, who ensured everyone was up on the dance floor and singing along to the special renditions of well-known songs. Back by popular demand,

Compliance Officer of the Year Winner: Shirley Rothel - Just Costs Highly Commended: Gareth Richards - Convey Law Law Firm of the Year Winner: Schillings Joint Highly Commended: Winn Solicitors Joint Highly Commended: New Bold Solicitors Deal of the Year Winner: Winn Solicitors Highly Commended: BLM New Entrant of the Year Winner: Burcher Jennings Highly Commended: Richmond Chambers Best Use of Technology Winner: SmartCredit Ltd T/As SmartSearch Highly Commended: Aequitas Legal

The Charity cheque presentation

Best Marketing Campaign of the Year Winner: Bott & Co Solicitors Highly Commended: National Accident Helpline Chambers of the Year Winner: Matrix Chambers Highly Commended: Zenith Chambers Supporting the Industry award Winner: Baker Tilly Highly Commended: SearchFlow Outstanding Achievement Martyn Day, Leigh Day Solicitors Lifetime Achievement Diane Burleigh OBE, CILEx

ML // December 2014

Guests on the dance floor

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the Silent Auction (organised by Impulse Decisions Ltd), raised £7,000 for the two chosen charities, Candlelighters and Kidney Research UK. Professor Stephen Mayson summed up what the awards mean to the sector as he said, “These awards demonstrate the evolution of the emerging legal landscape, and the difference this is making both to the way in which the public gain access to legal advice and the justice system and to clients more generally as they benefit from new approaches to pricing and efficiency”. Modern Law would like to thank all those who nominated, attended, sponsored and made the evening possible and we very much forward to welcoming you to next year’s awards.

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TIMES ARE CHANGING The Legal Breakfast Briefing was hosted by Armstrong Watson and Zenith Chambers in Leeds at the end of September, Charlotte Parkinson, Modern Law, went along to hear their keynote speaker, Viv Williams’ take on the changes in the legal market and what they mean for practitioners.

‘[ABSs] provide access to working capital for smaller firms, which is a real benefit, the sector is looking for solutions that provide independence and stability’ Viv Williams L-R: Simon Coatsworth, Zenith Chambers; Viv Williams, Legal 360 and Andy Poole, Armstrong Watson

T

he legal industry has not been free from change over the last few years, and practitioners, now more than ever, need to be acutely aware of the business of law. That was the key message from Viv Williams, Chief Executive of 360 Legal. Williams began by highlighting the clear correlation between the financial and legal markets, explaining that much of the turmoil in the financial sector has been echoed in the legal sector and that practitioners should learn from the financial market. Williams began: ‘The legal profession is still learning what Outcomes-focussed Regulation (OFR), is. The sector still faces many questions; will we see the removal of the COLP and COFA for smaller firms? Will there eventually be one regulator? What will happen after CPD is abolished?’

Stronger moving forward...

Whilst Williams made clear that the sector still faces many challenges, he was also quick to stress that those who embrace change will emerge stronger and better equipped to move forward.

‘Those that survive will be stronger and better,’ he said. In order to survive, believes Williams, firms must review their strategic approach and overhaul outdated, traditionally male-dominated partnership models. He explained that if this does not happen, firms will be

Delegates at the Legal Breakfast Briefing

faced with difficult decisions when it comes to forward planning and exit strategies. Williams also highlighted the necessity for firms to consider mergers but explained a potential reason for the lack of merger activity in the market was that ‘some firms are too risky to merge, whether that is in financial terms or other. Firms need to be merger ready’. Despite drawing attention to the fact firms must consider mergers for future longevity, he was also quick to stress that they should not consider merging for the sake of it. ‘A merger needs to create something different as well as increasing the size of the practice,’ he explained.

Changing expectations ‘The new legal era involves thinking differently and exploring new structures, such as Alternative Business Structures (ABSs), facilitates this,’ he said. Williams continued: ‘These new business models provide access to working capital for smaller firms, which is a real benefit, the sector is looking for solutions that provide independence and stability’. Moving away from the problems the sector has been through, Williams drew attention to the variety of solutions firms can consider. ‘Marketing and business development departments should now come as standard. Reception services are also important; receptionists must

be trained and engaged as they are the clients’ first point of contact,’ he said. Williams continued: ‘Firms should also consider reducing the size of the parts of their business that do not make money, such as form filling and dictation and outsourcing call-handling services.

Another useful solution is using mystery shoppers as a means of uncovering and remedying underlying issues’.

‘Demand is changing and clients expect a 24/7 service,’ Williams went on. Ultimately, though, the consumer must remain front of mind during times of transition for the legal sector and Williams finished by explaining that, whatever you do, the consumer interest must be held at the heart.

‘Do you think the new and diverse range of businesses is to the ultimate benefit of consumers? Does it matter either way what business model the firm is operating under, as long as the consumer receives the best service?’ he questioned. Whatever strategy firms choose to adopt, there is no doubt that those who are willing to explore and embrace new opportunities, will thrive in the new legal arena.

Modern Law would like to thank Armstrong Watson for inviting us to attend, and Zenith Chambers for hosting the seminar.

ML // December 2014

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PROJECT MANAGEMENT, FIXED FEES AND LAW FIRM PROFITABILITY Project management skills are a ‘core competence’ expected of solicitors, according to the draft Competence Statement issued by the Solicitors Regulation Authority.

Antony Smith explains why solicitors who acquire and apply project management skills are more likely to increase client satisfaction and their own profitability.

I

t would be a grave mistake for solicitors to simply file the need for Project Management skills away under the rather dull heading of a ‘regulatory requirement’ and thereafter do as little as possible about them.

Fixed Fees: A Problem or Opportunity?

According to the Legal Services Consumer Panel, fixed fees are used in 46% of matters where clients are private individuals. The Legal Ombudsman (LeO) has noted that such clients value ‘fairness’ and ‘transparency’ of legal pricing just as much as low prices. So, with the increasing prevalence of fixed fees, both lawyers and their clients should be happy. Unfortunately, this is not necessarily the case.

LeO also notes that complaints about solicitors pricing is the most common source of complaint referred to them.

So what is going on? I suggest that many solicitors are not especially good at setting, or managing, fixed fees. This not only leaves them open to complaints, but misses a commercial opportunity.

Reducing Problems By applying some project management principles to legal service delivery, I contend that many of the problems associated with fixed fees would not arise. Here is how, by following some basic principles of project management, lawyers can become better at fixed fee management: 1. Perform an initial scoping exercise for each new matter – what work will, and will not, be done?

2. Apply a structured approach to estimating resources, effort, elapsed time and costs – there are lots of project management techniques out there to help with estimating.

No one technique can be guaranteed to produce results with 100% accuracy, but applying techniques which have stood the test of time elsewhere will help increase most solicitor’s accuracy with regards to estimations.

3. Communicate results of initial scoping and estimating to the client clearly.

4. Create a high-level matter delivery plan – this could be done for solicitors automatically if using workflow, costs budgeting or legal project management software.

5. When a matter (a project) starts, track and monitor progress of work and costs to date.

6. Most important: if there are any variances between actual progress and the base delivery plan, then inform the client immediately.

Managing Problems This may sound an oxymoron, but fixed fees do not necessarily need to stay fixed. Circumstances change and it is only fair that fees for work done should reflect changed circumstances. The vast majority of people accept this intuitively. What is much more difficult to accept is changing the fixed fee without informing the client until billing time.

Research has shown that the single factor that differentiates the best project managers from the rest is communication skills. All project managers should create a communications plan, which sets-out things such as what information needs to be communicated to stakeholders, how the information can be best communicated and the frequency of communications.

In short, project managers will design a process for communicating with all key stakeholders, including clients.

The process should ensure that the communications are succinct, focused and regular. The best project managers will also go one-step further. They will check with stakeholders and ask whether they are receiving the information they need and in a way they can quickly understand. If not, the project manager will change the content, mode or frequency of communication to that particular stakeholder.

Realising Commercial Opportunities Successful fixed pricing does not necessarily equate to the lowest pricing. There is an inherent value in a fixed price: it is fixed (within reason). Just like a fixed mortgage, consumers of legal services should expect to pay a small premium for pricing certainty. Moreover, they will gladly pay a premium if they can clearly see how their solicitor is delivering value to them. Key to this of course is communicating value to the client by the solicitor (see above).

In his book ‘Smarter Pricing, Smarter Profits: A guide for the law firm of the future’, Stuart Dodds explains his 1-3-4 rule: “For every 1% improvement in price, the potential increase to profitability is 3%. To get the same level of improvement in profitability without increasing price you would need to work 4% more billable time.”

So fixed prices, charged at just at a 1% premium could turn out to be very profitable for solicitors. This should be achievable by applying some basic principles of project management to legal service delivery.

Antony Smith is the Owner of Legal Project Management Limited.

ML // December 2014

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RISING TO THE CHALLENGE The legal landscape for practitioners has changed rather dramatically post LASPO and it is those firms who have good business models that will not only survive but indeed thrive in this ever changing legal world.

The Focus I have always worked with firms on more than simply supplying them with services regarding costs but also to get to the know them, see what makes their firm tick and how they run their ship. Now, more than ever, their emphasis is on how they can keep that cash flow alive and also regarding the recovery of costs. Whilst a large percentage of certain firms’ work has now fallen under the fixed costs regime, there remains a vast amount of work, which still falls under the usual format and requires the skills of a costs expert to recover them. The revenues and profitably are still there for those firms, which were well prepared in seeing a drop in their incomes by proactively altering previous business models, however it is still not too late to change.

I have seen many firms lean towards the Clinical Negligence and Industrial Disease market in order to keep their revenues up, which is wise however there are many other markets still there and we cannot ignore the ones that remain. With the correct focus, you are still able to run a successful business, even if the majority of your cases now fall under the fixed recoverable costs regime.

Costs and Budgets You will be well aware of the need to prepare Cost Budgets on a number of matters, which may seem like a further task for a fee earner (unless you instruct a cost draftsman), however this will allow you to further budget internally for the coming months and year(s). Therefore, this exercise can be used to assist your forecasting as well as to comply with the Court’s Directions. I have been able to assist many law firms regarding costs budgeting and also with their own software to ensure they are able to benefit.

‘It is key to keep an eye on your own internal business budget and future revenues, in order to plan for future longterm stability and longevity’ It is key to keep an eye on your own internal business budget and future revenues, in order to plan for future long-term stability and longevity. To my horror, I have witnessed one firm, who will remain nameless, sign off their yearly budgets and forecasts over a morning coffee and use a tactic of what they would like to achieve with a sprinkling of finger in wind methodology! Not a great way to run things, so guidance was needed there. Whether you need help with this or not, I would revisit the cases you have, produce new reports forecasting projected fee income and liaise with someone with the costs knowledge to ensure you are accurately setting monthly budgets.

Costs may or may not seem like a bag full of problems and issues but help is out there to assist you. Recovery of your costs is key and finding an efficient and effective solution will allow practitioners to allocate more time to running their cases. Whether you choose the assistance from an external costs company or not, the help is always there and available.

The Future Whilst I cannot predict the future, I can with some degree of certainty see further fixed costs coming in and also further costs arguments. All is not lost and I am a firm believer that if you have surrounded yourself with great people, have a solid plan in place and are proactively diverse, then you will prosper. Efficiency is a key word I am hearing repeatedly and something I admit to using regularly too, but it is a vital cog that will keep you on track. I speak with managing directors and partners of law firms on a daily basis and the vibes I’m picking up are that whilst there have been some challenging times, this isn’t the first time and won’t be the last. The legal profession are made of the tough and good stuff and are able to rise up to any challenge set and come out the other side better than ever.

Andrew Chadwick is Costs Manager at Ultimate Costs.

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22/11/2013 14:22

IT Crowd

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IT CROWD

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CO M IN G SO O N

Law of Legal Services General Editor: John Gould Senior Partner, Russell Cooke A key reference work for all legal practices which will provide a ready answer to the many legal issues that crop up in modern practice and provide essential knowledge of the legal risks they face.

For further information and to order your copy on 28 days’ approval:

Visit www.jordanpublishing.co.uk/g638t Call +44 (0)117 918 1492

@ Email customerservice@jordanpublishing.co.uk

IT Crowd

59

WHERE NEXT FOR LEGAL IT IN 2015?

Our resident IT guru Charles Christian writes…

L

ast year Microsoft’s new CEO Satya Nadella said the company’s overarching strategy was now “Mobile First, Cloud First.” (Yes, I know that doesn’t really make sense but Microsoft pay him a $1.2million a year salary + a $13.2million a year stock award to say stuff like this, so we can’t ignore it!) But is this a relevant mantra for forwardlooking law firms and legal service providers to follow?

The short answer is “yes” but with some important qualifications – and we also need to factor in the importance of the platform and the user interface/user experience.

Why Mobility?

Because increasingly, legal people need to be able to work away from the office, whether out-of-hours, at home, at court and whilst travelling to see clients and relevant business and professional associates. And, if they can achieve this while using a Smartphone or a tablet, so much the better than having to lug a laptop around with them. Furthermore, with companies like Microsoft, with its existing Surface tablet, and Apple, with its reported large iPad/laptop hybrid under development, making mobile working increasingly more viable, this is a trend that is not going away.

Why Cloud?

In the UK and Europe, cloud remains problematic because some of the data protection and data sovereignty issues associated with the technology. However these are gradually being clarified – or at least recognized and better understood.

More importantly, we are definitely going to see more interest in “hybrid cloud” solutions in 2015, which can offer the convenience of the access-your-data-from-anywhere cloud, with the security of in-house servers.

Why Platform?

This is where the nuances start to kick in. Back in the early days of legal technology, in the 1970s and early 1980s, you’d find, for example, that if you were running a Kienzle legal accounts system, it would only run on Kienzle hardware, whilst your Wang word-processing would only run on Wang hardware. In other words, choice of platform was a major issue. However for the past 20 years or so, it has not mattered what hardware platform your software was running on because everything came down to Microsoft Windows on the users’ desktops. You could buy Program A from Supplier X and Program B from Supplier Y and they would both run on the same Windows machine.

Apple laptop at home, as well as a Smartphone and a tablet (such as an iPad). Guess what, these users may want to be able to access and work on the same data and applications on all four devices – sometimes simultaneously. For example, we are seeing more lawyers working in an environment where not only do they have two screens running on their desktop but they also have their iPad open at a time-recording application and their Smartphone doubling as a digital dictation device, both of which link into their client/matter files.

The catch is until now most legal software companies have been fudging the cross-platform issue by providing users with access to the plain-vanilla Windows version of legal software via virtual desktops, web browsers, Citrix and Microsoft Terminal Services. Unfortunately this merely provides access to Windows on the wrong platform and with a limited user interface, whereas users want the same user experience they’d get from a “native” iOS, Android or whatever app.

What we are therefore going to be seeing in 2015 is a gap opening up between the vendors who are willing and able to create native apps (along with iOS and Android, 2015 will also see a growing demand for Microsoft Windows Mobile apps) and those still trying to wing it on older emulations.

‘We are moving towards a multi-screen, multi-platform environment where a user might well be running a Windows desktop PC in the office plus an Apple laptop at home, as well as a Smartphone and an tablet’ User Interface/User Experience All this neatly brings us around to my final point, namely thanks to apps, computer users are now familiar with the ease-ofuse of consumer software and are now starting to ask why their expensive legal software applications are so clunky and require days of training, whereas free consumer apps require no training whatsoever. I’m guessing most readers are familiar with Facebook – did you need a three-day training course before you could use it? Of course not, so if you already know your legal processes, why should you also need training to use the software designed to help you manage those legal processes? The interface and user experience should be just as intuitive as can be delivered by consumer software. And if it isn’t, the vendor needs to make it so!

Charles Christian is Editor-in-Chief of the Legal IT Insider.

This situation has now changed and we are moving towards a multi-screen, multi-platform environment where a user might well be running a Windows desktop PC in the office plus an

ML // December 2014

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IT Crowd

Just around the corner?

It is the start of a New Year, so what are your predictions for trends we will see during 2015, including technology and market consolidation?

I

love this time of year and all of the crazy predictions for the future. This year certainly hasn’t disappointed, with flying cars, a robotic moon base and microchips embedded in our brain all apparently just around the corner!

But looking ahead at legal technology, a recent market research report suggests that in 2015, more than 50% of firms will be hosting their CRM systems in the cloud. Not exactly new, but then as Richard Susskind said ‘Most lawyers are pathologically late adopters of IT. Despite promising, early successes, until the worth of an emerging technology is proven beyond reasonable doubt, it will not generally be embraced by the legal world.’

Given that cloud computing is thought to have been invented by Joseph Licklider in the 1960’s (although in fairness what we would generally recognise as cloud computing today probably came about as recently as 2006!), perhaps it is not surprising that law firms are now beginning to recognise the benefits of more flexible and cost effective solutions such as SaaS. Firms are increasingly looking to their existing technology to see what else it can deliver in terms of client experience, knowledge management, reduced costs and greater profitability. If they can’t find these gains within their existing technology they are looking elsewhere. A recent survey by Redbrick Solutions found that 65% of firms are considering changing their practice management solution in 2015.

One area I am pleased to see great improvements in, and which I think will continue to grow in 2015, is the use of technology for marketing of the law firm. It is increasingly common to find firms with Facebook and Twitter accounts and to be active in groups on LinkedIn. Mobile became increasingly important in 2014 and if predictions that ‘mobile will become bigger than desktop use in 2015’ are anything to go by, it will be essential for firms to engage with both their existing and potential clients via mobile next year.

This year we saw for the first time that mobile outnumbered desktop visits to our own website www.redbricksolutions. co.uk both for our clients (the law firm) and their clients using our ‘track my case’ functionality, which saw hits from 15 different countries (although none from the moon as yet - we’re still waiting on that robotic moon base).

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

ML // December 2014

Solutions, Resolutions, and Trends for 2015 F

ifteen years ago, the world teetered on the brink of a computing nightmare: the Y2K bug.

Fortunately, the problem fizzled out like the River of Fire and was better managed than the Millennium Dome.

Perhaps computer programmers are better equipped than pyrotechnicians and exhibition planners.

Flash forward to today, and we’re on the final countdown to 2015. While not as momentous as the year 2000, the past 15 years have witnessed a revolution in technology, communications, and work life. Indeed, our lives, livelihoods, and lifestyles are increasingly digital, mobile, and connected. Expect more in 2015, especially in the practice of law with three trends shaping that change.

The first is the emergence of cloud technologies for managing practices. Cloud computing has taken off in America. Recently, global accountancy powerhouse PwC announced that it was partnering with Google to move its business technologies into the cloud. While many small and solo practice law firms in the US already use cloud technologies—such as Google Drive, Fastcase, Clio, QuickBooks, and DropBox—the PwC move validates the security, accessibility, and efficiency of cloud computing on a grand scale.

So, what’s the next thing to watch in 2015? Mobile and virtual law firms. As costs go up and margins come down and as clients become more demanding of their law firms to be more available, a shift is going to happen whereby lawyers and law firms will need to be more flexible about where they practice. Some lawyers will welcome this, freeing themselves of the confines of an office. While client and cost pressures are forcing change, once again, technology is helping to enable it.

Give a lawyer a set of problems, offer a set of solutions and what is the result? Our third trend to watch in 2015: the entrepreneurial lawyer. With the demands placed on larger law firms to be more efficient, accountable, and cost-sensitive, the glorious days of big bills are over. In their place, we’re seeing a rise in alternative fee arrangements, and small and boutique firms. Thanks to new technologies, many of them cloud-based and focused specifically on the needs of legal practitioners, the tools are now available for more entrepreneurialminded lawyers to break off and form their own firms. We go back to the future in 2015—exciting adventures await.

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

IT Crowd

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Now is not the time for risk taking!

R

isk and compliance is still presenting a huge challenge for law firms today with many still struggling to make sense of the Solicitors Regulation Authority’s protocols and how best to manage financial risk at matter and client level. In order to comply, firms need to be aware of any current risks they face as well as being able to plan for any future risks. And in order to do this, firms must have effective processes in place to help them take a consistent approach to compliance and improve risk management.

Staff responsible for risk, such as compliance officers, must have the correct information they need at their fingertips and a clear understanding of potential risk across the firm, integrated with their daily operations. Firms need their IT systems to provide instant monitoring and management of risk compliance at client and matter level that is always up to date and ready to provide the necessary information in order for the right decisions to be made. Implementing a system that uses the firm’s own risk definitions to produce a ranked list of matter risk will meet all the requirements needed for risk management. These risk factors include variables such as outstanding WIP, outstanding debt and realisation being achieved. Each matter then receives its own risk ranking and this in turn (when presented to compliance officers in an easily accessible dashboard), allows them to drill into further details, giving them an opportunity to target the files that present the greatest risk to the firm.

Business intelligence software with interactive risk management dashboards can help compliance officers assess their firm’s financial status by selecting the appropriate files for review on a daily basis. Users can have instant information and analysis delivered to their desktops on financial risks such as matter billing and realisation rates, client risk profiles, work types and fee earners with configurable and weighted risk analysis. With this information, firms are able to improve key performance indicators and show compliance with the SRA’s regulations, including the potential for reducing insurance premiums.

If your firm would like to know more about risk and compliance systems and the steps your firm needs to take to be compliant, please attend our free live webinar on 11th December 2014. Register at: http://go.qlik.com/UK_2014_Q4_Legal_ Risk_Webinar_Informance_Registration_LP.html Barry Talbot, Managing Director, Informance Ltd.

Linking Industry Together Linking thethe Industry Together

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Ben Insurance FraudPyall Bureau, talks to The Fletcher, burden of proof: John explains to whatClaims extentabout reinsurers must adhere Modern collaboration in the to fight settlements what an against fraud and the risehappens of ghostwhen brokering. insurance contract does not have to follow a settlements clause.

Fraud data sharing: A lack of best practice over the sharing of fraud data using exemptions in The Claims Journey: Emma Holcroft outlines whythat’s outsourcing anGould.

But about theinvestigations change, writesto Ant independent expert, can lead to surprising outcomes for insured parties.

Linking the Industry Together

and explains his hopes for the claims industry moving forward.

Professor Fenn, speaks to Modern Claims about the aftermath of LASPO, Jackson and The Crystalresponse Ball: Tovah the government’s to hisGrosscurth MoJ report.explains the need to keep the customer front of mind during times of change in the UK Personal market.The recent Law Society Don’t Lines get mugged: anti-insurer advertisements certainly turned heads. Modern Claims speaks to professionals on both sides of the fence about the ‘love it or hate it’ campaign.

“Sausage machines and client care don’t fit together, service has to go - I know people won’t agree with that” Andrew Twambley, Amelans

“More and more, e-mail is replacing the good old fashioned

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“The introduction of fixed costs for some fast track cases will put FOIL, MASS and APIL in a much in terms of aligned interests.

It will be “I predict therecloser will bespace no more than half a dozen defendant interesting to see how that in the asmonths” there are certainly going to lawplays firmsout within thefuture next 18 be more opportunities for the organisations to work together moving forward” Association of Regulated Claims Management Companies

“As the whole sector is united in being ‘distrusted’, I wanted to take “What a joint venture gives a common goal, a willingness the opportunity to get ouryou actistogether as a separate sector and to work with one another ensure, that your prove toclosely whoever is prepared to to listen thatimportantly, we are different, listening systems are aligned... thischange makes itaccordingly” easier and quicker for the andIfcan customer then it has to be a good thing.”

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62

5 minutes with...

5 minutes with... Kerry Underwood Q: Did you expect the legal services sector to change so drastically when you started working in it?

A: No; the attack on the rule of law and the concept of lawyers and the legal system is deeply worrying. The Legal Services Act and the allowing of Alternative Business Structures is the most dangerous statute in recent history. This is brought in to sharp focus by the rise of the far right in the United Kingdom. These are deeply disturbing times.

Positive changes include the increased diversity of the profession, with women forming the majority of solicitors and with ethnic minorities well-represented.

However the economic and class diversity is threatened by tuition fees and the very high cost of qualifying as a lawyer.

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

A: Few positives, except the move towards contingency fees. Non-lawyers practicing law, factory firms, McKenzie friends, the Legal Services Ombudsman and legal aid cuts are deeply harmful to British society. Treating law as just a trade or business is wholly wrong. Lawyers, and others such as doctors and teachers, have a role in society that goes beyond just money and profit. Ultimately, lawyers stand between the individual and the State and the individual and the worst aspects of big business. Making Law just another part of big business takes away our freedom. Fortunately, virtually all of the outside entrants in to the law are failing dismally, precisely because they are motivated only by money and law is much more than that.

used the concept and the rule of law to free South Africa. A man who forgave everyone and who united seemingly irreconcilable interests. A true lawyer as well as world statesman. Mahatma Gandhi for very much the same reasons.

A lawyer who freed India through peaceful means.

Q: Who inspires you and why?

A: Nelson Mandela. A Solicitor who

Kerry Underwood is Chairman and Solicitor at Underwood Solicitors.

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

A: Joe Bateman, my principal. He taught me everything I know about combining the vocation of law with running a successful business.

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

A: Prime Minister, psychoanalyst or manager of Hemel Hempstead Town Football Club.

Ringrose Law to implement Eclipse’s Proclaim PMS Eclipse’s Proclaim Practice Management Software solution chosen for leading law firm

F

ull service law firm, Ringrose Law, is implementing the Proclaim Practice Management Software solution from Eclipse Legal Systems.

Darren Gower Ringrose Law operates from 7 offices providing a broad portfolio of services to private individuals and businesses across Lincolnshire and Nottinghamshire.

Lexcel accredited for ten years, the practice employs over 130 staff and has been at the forefront of local legal services for over 100 years. With a history of successfully reshaping as markets and legislation have changed, Ringrose Law entered a rigorous and lengthy selection process to replace the incumbent Matter Management and financial accounting systems.

Ringrose Law is rolling out the integrated Proclaim Practice Management solution across the entire firm, providing instant desktop access to productivity, financial and

ML // December 2014

client management toolsets. Proclaim Process Management solutions will be introduced for the Conveyancing and Personal Injury departments, while for less prescriptive work areas (including Court of Protection, Employment, Family, Probate and Crime), Proclaim Matter Management solutions will be utilised.

As part of the practice-wide integrated solution, Ringrose Law will be utilising Proclaim client inception and CRM tools, to manage the ‘new enquiry’ process and introduce business on-stream in a consistent manner. Taking this further, the practice will also benefit from Eclipse’s client self-service toolsets TouchPoint, SecureDocs and FileView - enabling clients to agree documents online, monitor file progress, and communicate with the firm through the full life of a matter. As an integral part of the system rollout, Eclipse will be carrying out a conversion of both client and financial data from Ringrose Law’s incumbent software systems.

Andrew Watson, Finance Director at Ringrose Law, comments: “When we first met Eclipse in 2013, at

the Legal IT exhibition in London, we were taken both by the approachability of the Eclipse team and the power of the Proclaim solution. As part of our ongoing growth strategy we were investigating software solutions that could further improve our internal processes and provide consistency across how teams perform and are measured.”

“What we found in Proclaim was that the system could not only improve internal efficiencies, financial management and compliance, but it could also provide direct client-facing systems to enable online self-service for the people and businesses we help every day. The fact that Proclaim provides this broad business benefit for us made the system our number one choice by a fair margin.”

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

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Improve client engagement Unify matter management and legal accounting Ensure firm-wide compliance and risk management Drive business efficiency with automated processes

Work faster, smarter and more efficiently with Eclipse Eclipse is the leading provider of Case Management, Practice Management, Matter Management and Process Management Software in the UK. So if you want to make your practice more effective,

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Matter Management Software Stay in control of your practice’s non-prescriptive, complex and bespoke work areas, with client and matter inception, document production and data storage all in one place.

Practice Management Software Keep finances running smoothly by organising everything from individual to practice-level data… take advantage of comprehensive reports and real-time management information.

Case Management Software Manage active cases, streamline processes and deliver a superb experience to clients, with Case Management Software that can be tailored to the individual needs of your business.

Process Management Software Streamline business processes by automating time-consuming administrative tasks, with easy document production, in-depth reporting and full workflow functionality.

Eclipse’s Proclaim solution is in use by 20,000 legal professionals in over 700 organisations.

To find out more

Call 01274 704 100 visit eclipselegal.co.uk email info@eclipselegal.co.uk