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Issue sponsor: Editor’s letter Who we are… aw firms appear to have managed the move of multiple teams over to all-dispersed, all-screen- sharing, remote working pretty well – but the Richard Brent is the editor- L in-chief. He likes to chat to challenges the novel coronavirus presents to as many people as possible, so do contact him at their models and management certainly don’t [email protected] end there. Kayli Olson is Briefing's As this latest issue was finalised, we had the shock news deputy editor. She tells that Sir Nigel Knowles was taking over from Andrew some great stories, and Richard what to do. Contact: Leaitherland as group chief executive officer of DWF with [email protected] immediate effect. Sarah Cox is Briefing’s And over at the other end of the Briefing spectrum, director of client services, ensuring top value for our earlier in May there was the pre-pack sale of McMillan many partners. Contact: Williams to Taylor Rose TTKW Ltd. Administrators [email protected] Quantuma highlighted that pressure on cashflow from Rupert Collins-White is historic aged debt was made that much worse by the Burlington Media Group’s creative director. Contact him Covid-19 climate. MW was unable to secure additional at: [email protected] working capital. Partner and joint administrator Sean Bucknall added, moreover: “The high fixed If most bets are off, cost base and highly leveraged model of one I would take is that many law firms leaves them particularly productivity will be vulnerable to the fallout from from the Talk to us feeling the heat even Covid-19 pandemic. We are already seeing more than it was many law firms already in serious financial Briefing on Twitter difficulty.” @Briefinglegal Then, in midst of cash concerns and profitability Email us your thoughts pressure, what will any new normal we now begin to see [email protected] mean for some of Briefing’s other staple subjects – Find all our back issues online www.briefing.co.uk/our-magazines technology strategy of course; business development and Write us a letter (remember those?) client relationship management (do see our spotlight focus Briefing magazine this month, Critical connections, in partnership with the Burlington Media Group 20 Mortlake High St good people at Intapp); pricing and project management; London SW14 8JN DX 36356 East Sheen and the relatively fledgling innovation agenda? If most bets are off, one I would take is that productivity will be feeling the heat even more than it was at Christmas – there’s that oft-made assertion that WFH helps people to be that much more productive during a typical working day. As somebody remarks in Josh Adcock’s feature for us this This issue is brought to you month, that impact will need to be measured somehow if it in partnership with: moves signficantly closer to being the long-term rule rather than the exception. And following this year’s Mental Health Awareness Week in the second half of May, it’s also worth remembering that productivity isn’t the same thing as being This month’s interviews were all transcribed by: tied to your new home office setup, idyllic or otherwise. INTELLIGENTSERVICESCENTRE from RICHARD BRENT EDITOR-IN-CHIEF

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June 2020

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SPECIAL REPORT EXTRA DEPTH BEST ANIMATE The work of the high-volume players at Why DAC Beachcroft found 21 CRITICAL CONNECTIONS Bryan Cave Leighton Paisner Cubed another way to explain itsellf

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“Until you have a Lockup in lockdown Has law firm financial management improved enough in recent years proper process engineer to steer us through a crisis of unknown proportions in good shape? at your side, it’s hard to appreciate the value.” Briefing is the only legal business management title, and is focused exclusively on Katie DeBord, global chief improving the work and worlds innovation officer, of law firm management Bryan Cave Leighton Paisner leaders. Every issue is packed with relevant insight and lessons from peers and pros.

UPFRONT Diane Gilhooley at times, from CM Murray LAST WORD U Database First Eversheds Sutherland INDUSTRY VIEWS How the claims quarter stats look process at DAC 06 Mike Bailey at Jim Godman at 51 like the calm before the Beachcroft grew more 11 Pinnacle considers Thomson Reuters storm, is the assessment of 39 animated for clients some options for helping calls it for the cloud Peer Monitor from with critical cashflow Thomson Reuters How Burness FEATURES 43 Paull worked with OPINION Bundledocs to make The big idea Is Busy isn’t the same paperwork more palatable as productive, 14 finance fit for a 08 Fraser Mayfield at SPECIAL FOCUS especially during a crisis, crisis? Josh Adcock reports 24 Iridum on higher reminds Dr Ali Fenwick 45 BRIEFING SPOTLIGHT: Briefing people The demand for daily data team at Bryan Cave CRITICAL CONNECTIONS This could be a 21 Why law firms need to Leighton Paisner Cubed Dan Wales at defining moment be better listeners, and 09 in the round BigHand says fix for legal business to really 47 the data that can help your data disconnect now reset itself, says Catherine BRAIN TRAINING them to change Kemnitz at Axiom Lindsay Barthram Advice for how Sponsored by at Wilson Allen Maintain 33 firms might need to 49 Intapp 10 commitment to adjust their partnership sees opportunity online employee wellbeing, says agreements for tougher

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Database POWERED BY BRIEFING Fair improvement in some law firm performance metrics in the first quarter of DATA BASKET 2020 are likely to represent the calm before the impact of the storm, suggest the benchmarkers at Peer Monitor from Thomson Reuters

FLUCTUATION IN PERFORMANCE OVER THE PAST FIVE YEARS 70 PERSPECTIVE Peer Monitor In the first quarter of 2020, demand Index score for Q1 2020: 57 grew by an average of 2% across the market, outpacing last year’s 1%, and worked rates climbed to new heights 60 for the second consecutive quarter. While lawyer growth continued to increase in pace, newfound demand offset this to a large extent, which allowed productivity to climb closer to flat. 50 Of course, law firm performance is a lagging indicator by nature, and the bulk of the impact of the Coronavirus pandemic is yet to be seen in the data. The longer this pandemic 40 continues, the less likely it is that rate Q1 2 3 4 Q1 2 3 4 Q1 2 3 4 Q1 2 3 4 Q1 2 3 4 Q1 growth and realisation figures will ‘15 ‘16 ‘17 ‘18 ‘19 ‘20 remain unaffected. Looking ahead, it’s likely that BIG DECLINES CONTINUE around half the firms tracked by FOR PATENT LITIGATION AND TAX Peer Monitor won’t continue to see worked rate growth of 4% or better, and recruiting expenses are unlikely 4% to continue to rise by double digits, 2% for example.

-2%

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SPEAK UP Are you a productive or a panic worker? orking from home (WFH) has working from home you might feel the become the new norm for pressure to show other people you are W many employees across the busy by sending emails the whole day, globe during the global making yourself constantly available, or pandemic. One of the main benefits finding other ways to prove how often associated with WFH is increased productive you are. Missing workplace productivity. People in pursuit of a better cues of validation, acknowledgement work-life balance are generally more and feedback can also lead to panic productive when given the option to working. The busy bee syndrome can work from home (WFH). Personal also become a contagion effect and affect choice and autonomy, it seems, do other employees in the organisation. wonders for employee wellbeing and 3 Work to survive The fear of losing performance. However, due to the one’s job, or even of death, can spur Covid-19 outbreak, people are now some to go into hyperdrive. Survival Dr Ali Fenwick forced to WFH whether they like it or mode kicks in. This defence mindset is Behavioural scientist Nyenrode Business University not. Interestingly, managers have driven mainly by emotions, and it reported seeing spikes in productivity triggers employees to work harder as a @pldcoach among their remote teams during way of acting out their need to survive. lockdown, crediting it to the positive 4 Work to regain control Feelings of effects of their new WFH policies. confinement and insecurity can make Researching current WFH setups, I employees feel powerless. When this found another reason some people are happens, it is normal to want to regain suddenly more productive. control over their surroundings. Panic The increase in productivity is also working is therefore a way to exert linked to the unusual situation we are in. control in a meaningful way, which The threat and uncertainty Covid-19 helps people feel safe and secure. poses to livelihood and health is causing So, what can be done? When WFH it people to overreact. The different coping is important to develop new habits to strategies people use to deal with this increase personal effectiveness. One of perceived threat all lead to a similar state these is learning how to set boundaries of mind, resulting in a manic state of for yourself. Start by creating physical productivity I call ‘panic working’. ones. Set up a dedicated work zone, for Employers can easily mistake being busy example. This will not only help you to for productivity, and if left unchecked be more focused and productive, it will this could have severe consequences for also help to create a healthy separation employee wellbeing and organisational between home and work. performance. I have identified four But you can also create mental Employers can easily specific coping strategies that may lead boundaries for yourself. These are the mistake being busy to panic working: routines that help us structure our day for productivity, and 1 The Ostrich effect When situations – for example, waking up in the morning if left unchecked this are uncertain and fear kicks in, WFH at a specific time, getting dressed as you could have severe employees can choose to cope with a would normally, and making sure to stop perceived threat by ignoring it. This is all work activities by the evening. Living consequences for called the ostrich effect. The more one up to your routines when WFH is even employee wellbeing ignores reality, the harder one works, more important than when working in and organisational which leads to panic working. the office, as it helps you to create that performance 2 Busy bee syndrome When you are divide and puts you more in control.

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SPEAK UP 2020: legal hindsight

ovid-19 has exposed critical work, labour and employment, and vulnerabilities across the cybersecurity issues to address, GCs are C economy, including some of taking a new look at risk management the more traditionally resilient and how business continuity and legal industries. The past few weeks have talent must be managed in the future. brought widespread talk of ‘returning to This crisis will also redefine the role a new normal’ – although most of the GC in a business – from legal executives recognise that new normal executive to chief resilience officer. As will be quite unrecognisable, at least for GCs navigate the new normal, they will the foreseeable future. have to assemble diverse, agile teams If that’s the perspective of most and develop plans to deploy fast executives, it’s almost without exception responses when faced with large-scale the perspective shared by GCs. Indeed, business disruptions. the legal industry is facing a new reality. And, we must all address the Catherine Kemnitz To be fair, the industry was facing underlying issues and rethink what Global head of legal forces for change before Covid-19. GCs corporate citizenship means. We must Axiom were representing digitally transformed move fast to architect the sustainable @Axiom_Law companies. They were evolving their legal expertise that will enable us to use of data. And they were reimagining anticipate and manage future continuity, their increasingly expansive role in the resilience, and communications needs. face of flat budgets. And that’s just the start. Yet legal’s most systemic fault line has We must challenge industry rules to long been the system itself. Pre-Covid, keep up with the times. We need to GCs were mired in legal’s traditional remove the barriers to lawyers’ ability to talent duopoly: a growing fixed full-time follow the work and operate remotely. internal staff or an expensive outside We must open the door wider to all legal law firm. Neither addressed the ebb and professionals. Covid-19 ignores flow of legal work, nor the inevitable boundaries. This crisis again need for a specialisation pivot. Nor did demonstrates that many industry rules As GCs navigate the they (or do they) allow for fiscally place unacceptable limits on a GC’s new normal, they acceptable fast reaction to unforeseen solutions when faced with will have to assemble events. unprecedented disruption. diverse, agile teams and I’ve said before that Covid-19 is legal’s They say hindsight is 2020. The year tipping point. It may more accurately be 2020 will be the year for legal hindsight develop plans to deploy the proverbial straw that broke the – the year the industry’s resistance to fast responses when camel’s back. change yielded in the face of a crisis that faced with large-scale Either way, the crisis will redefine our forced reimagination and recalibration business disruptions industry. Beyond the immediate remote and, ultimately, remarkable resiliency.

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SPEAK UP Supportive acts

here is no doubt that the consider how to support and stay in unprecedented circumstances touch with those who may be shielding, T of the Covid-19 crisis have live alone, have limited working space, revolutionised the way we live be managing young children, and so on. and work. Where it has been possible, The law has long recognised the many have made a shift to remote importance of time away from work for working, at least until a return to employee health, and many employers workplaces can be achieved. recognise the benefits of an appropriate For some workers, remote working work-life balance. However, remote has been a totally new experience, with working has the ability to blur the lines a number of positive outcomes. between work and home life, with the However, even for those with added difficulty of ‘switching off’ when experience of working remotely, no one working from home. Studies has ever experienced the mass consistently show that absences or low Diane Gilhooley organisational change the current productivity result from tired, stressed- Global head of human resources and pensions situation required of both workers and out employees, with increased costs to Eversheds Sutherland business. Then there are the additional employers. For example, an EU factors of having young families at Commission report in 2018 cited @ESgloballaw home, wider caring responsibilities, economic costs to European employers busy and noisy shared workspaces, of £215bn due to mental health. isolation, and the uncertainty of the In these exceptional times, it will be developing Covid-19 situation as it important for employers to ensure that unfolds. All have the potential to create employees are able to function daily challenges and worry for workers. effectively, providing suitable support Whether work is undertaken from and ensuring appropriate working time. home or onsite, employers have a legal Despite facing significant commercial responsibility to provide a safe place of challenges, failing to recognise and work. Even before Covid-19, many protect the mental health of a remote employers had already started to focus workforce could have a considerable on employee wellbeing initiatives. These impact. New ACAS guidance recognises often included greater visibility around this, encouraging employees to access mental health issues and support. With support while working remotely or if extended social distancing, and workers furloughed during the pandemic. inevitably feeling disconnected from The ‘new norm’ of remote working their colleagues, many employers are has often been the only way in which now considering how to extend those businesses have been able to keep Studies consistently initiatives beyond the traditional operating. However, the legal show that absences or workplace. For example, they are responsibilities of ensuring a safe place low productivity result finding new creative ways of keeping in of work, and that working time touch remotely, such as through digital requirements are met, should not be from tired, stressed- platforms and apps, and hosting virtual forgotten. What’s clear is that a out employees, with social events and celebrations. workforce that supports each other to increased costs to Businesses need to think widely get through these exceptional times employers about the needs of their workforce and together is key.

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COMMENT Cash in the time of Covid-19 t is probably fair to say the email, and provides decision makers expression ‘cash is king’ has with client-specific financial I never resonated more. information, including on revenue, Business stakeholders are realisation, and profitability, to support more demanding on cashflow position, the decision-making process. and in particular look for more McKinsey’s recent report, A road predictability in receipts from clients. map for post-Covid-19 growth, Law firms have used different advocates a mental model of SHAPE for strategies to manage their finances the ‘new normal’, The S stands for through these uncertain times, startup mindset – acting fast. A stands including controlling costs with the for accelerate digital, tech, and analytics government’s furlough scheme, – getting insights, knowing how things Mike Bailey reducing the working week, and are changing, seeing the recovery. And Managing director reducing non-essential expenditure, the E is for ecosystems to drive Pinnacle including major project activities. These adaptability. Our work with three firms

@PinnacleOa all help to manage costs, but as many is a simple example, but they will now projects are capitalised, the real prize is have clearer, faster decision-making managing cashflow. So, it’s interesting – and a fair part of the SHAPE mindset. there are no out-of-the-box cashflow It seems remote working is here to For more information, visit: forecasting tools available to law firms. stay. Firms have generally been able to www.pinnacle-oa.com The ability to manage cashflow, and make staff productive, but there are still to forecast accurately, relies on up-to- too many processes that rely on email, date and reliable information, and this or people being in the same building. It’s can be supported through improved not unreasonable to expect the next process automation and integration. wave of activity that supports remote Typically credit control teams manage working being to build in efficiency collection activities, and produce through process automation, which at forecasts that can be integrated into the same time will enforce internal firm-wide cashflow projections. In controls and ensure consistency and order to get clients to prioritise auditability of each process. For outstanding firm invoices, firms are example, cash management solutions looking to adopt different strategies in are an imminent challenge, filling a gap the collection of outstanding in the finance department armoury and receivables, and technology suppliers giving the CFO and treasury team many are looking at ways to assist. capabilities, including: Pinnacle and Intapp have worked • Automated cashflow forecasting with small groups of firms to develop • Simplification of integration between The ability to manage processes to support remote working. finance system and the banks, allowing a cashflow, and to These have been rapid to build: working simple file format to automatically forecast accurately, with three US firms, we have developed transform into almost any format relies on up-to- a finance form and workflow to help required to support payments. date and reliable improve cashflows. The lawyers are • Ensuring compliance with, and information, and this given authority to offer incentives to managing changes to, mandates clients to pay outstanding bills, through • Improved detection of potentially can be supported either alternative fee arrangements or a fraudulent payments. through improved reduction in outstanding fees. The Cash was, is, and always will be, king. process automation approval process for any write-down is We are working on finding new ways of and integration managed through the forms and in dealing with an old reality.

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Features 14 21 Is finance fit for Think inside the cube the crisis? Josh Adcock meets several What’s on legal finance of the many faces that leaders’ minds navigating together form team Cubed the pandemic? Josh at Bryan Cave Leighton Adcock reports Paisner

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THE BIG IDEA Is finance fit for a crisis? Firms’ finance functions have gone from strength to strength in recent years, improving profitability by addressing long-term challenges. But the pandemic has forced them to consider new perspectives and accelerate more flexible thinking, hears Josh Adcock

n its 2019 survey of law firms, PwC fortuitous in hindsight. found the finance function was one of several business support Fixing the roof while the sun shines I areas to have improved across a Although very different from the 2008 economic range of metrics, after three years crisis, Tony Williams, principal at Jomati of lacklustre performance. It listed pricing and Consultants, says a global downturn wasn’t profitability, working capital and business analysis entirely unexpected: “Until March 2020, we were as current areas of focus, and found that problems in the eleventh year of a bull market. We couldn’t remained around high levels of fee write-offs and have predicted a pandemic, but the economy lockup days. Of course, since the publication of wasn’t going to be good forever,” he observes. that report, the world has been subjected to the It’s unsurprising, therefore, that firms have health and economic ramifications of the Covid-19 been working to improve their financial situation (coronavirus) pandemic – prompting a shift in for some time. Group finance director at DAC many law firm finance functions’ priorities, and a Beachcroft (DACB) David Gillard explains his firm doubling-down in other areas, with some legacy had historically been running relatively high levels >> improvement initiatives additionally proving of debt, with a balance of £39m at the end of the

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“There’s a lot to do around strategic price planning in a very short period. It’s a fluid situation.”

Adrian Avanzato, head of pricing, Pinsent Masons

2013 financial year. “That’s not huge but it felt delivery hubs,” he explains. pretty uncomfortable. It’s gone down every year Of course, investment in technology has been since – we’ve consistently grown and improved part of finance functions’ improvement plans too. profitability – and, at the end of the 2019 financial At Allen & Overy, global finance and operations year, we hit net cash. That improvement in director Jason Haines says his firm has been liquidity was in large part due to improved developing automated financial reporting for the financial discipline,” he says. last decade in order to increase efficiency and In response to the pandemic crisis, many firms accuracy: “We have a global, single-incidence have reduced or delayed dividends paid out to finance system that produces around 350 sets of partners. Gillard, however, says proactively management accounts within five days of the retaining profits has been a cornerstone of DACB’s month end. Almost all of it is now automated.” financial strategy in recent years – which he describes as “repairing the roof while the sun is Info hunt shining”. While the legal sector might still see this A focus on better financial information is another kind of financial prudence as “innovative”, for of the trends Williams has seen across legal many outside he says it’s “all a bit old-fashioned finance teams. “The shift hasn’t just been around and boring – but that doesn’t mean it’s not the more data on billing, WIP and debtors – there’s right thing to do. What business outside legal also been more analysis of the profitability of distributes all its profit every year by way of certain types of work and client relationships,” he dividend?” he asks. says. Keeping a tight hold on partner dividends and Mike Giles, finance director at Fieldfisher, firm borrowings has been a theme throughout the agrees. He says the firm has been rolling out a new years since 2008, says Williams – but he adds that practice management system, based on Microsoft many firms have also placed an increased focus on Dynamics, over the last three years – which has managing matters by bringing in legal project provided an opportunity to review financial managers, pricing specialists and other experts. reporting and is serving as the springboard for a “Having seen their finances salami-sliced for five new focus on predictive analytics. “Rather than or six years, profits then started building back, merely looking at the historic data, we can find out partly because firms brought in those specialists,” why something happened and what might happen he says. in the future. Those early indicators are going to Alternative methods of resourcing have also be key,” he says. had a role in firms’ developments. David Carter, There has been a similar focus at Moore Barlow chief product officer at Norton Rose Fulbright, and (Moore Blatch and Barlow Robbins officially head of the firm’s innovation and solutions- merged in May 2020), says its chief financial focused Transform programme, explains that officer Chris Ake. He explains that his firm is also deploying new solutions for clients has also meant introducing a new PMS, which will improve developing more structure and discipline. “Instead real-time performance information. However, he of partners directly selecting and allocating work, says it will also change the finance function’s we brought in dedicated resource managers focus: “More of our people will be spending time – they’re able to explain and implement all the giving answers about what the information new methods we have of structuring and produced means, rather than just producing it.” >> delivering matters, including technology and our Ake adds that transparency has contributed to

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“Lawyers need to deliver legal expertise in a commercially viable way, so we’ve been providing more performance information.”

Chris Ake, chief financial officer, Moore Barlow

developing a commercial mindset in the firm. He by the team. “We’ve all had to become very good at asks: “What does ‘good’ look like for a lawyer? It’s the commercial side of the job. It’s no longer just more than just delivering a large bill. Lawyers need about reporting, it’s about forecasting,” he says. to deliver legal expertise in a commercially viable Demand for information from the finance team has way, so we’ve been providing more performance increased, he adds, including information that’s information than before to support that.” He always been available but is now performing the explains how one recently promoted partner function of an enhanced ‘pulse check’. embodied this more financially-aware, commercial Transparency has been crucial too, he says. The thinking when he was given his hard copy of an firm consulted staff when considering pay cuts and expensive ‘information bible’: “He asked why he furloughing, to explain why these measures might and the other 10 members of his team each have a be necessary despite the firm still seeming busy. copy of the same book – one costs almost £1,000. “We had forecasts suggesting things were going to He’s shifted his thinking and started questioning go downhill – although we’ve still not really seen the financial implications of various choices.” that happen, we’re continuing to update and share Also reflecting on perception, Gillard at DACB our financial modelling with the rest of the firm,” says finance can sometimes be seen as a “police he explains. presence” entity, standing outside the rest of the Haines agrees that the slowdown has yet to firm, while it’s crucial to instead make finance a appear, saying that, although A&O hasn’t seen an trusted part of the business. About five years ago, increase in overall work volumes, it has received Gillard explains, DACB set out to redefine its many minor client enquiries about the impact of strategy, cultural outlook and governance structure. the coronavirus on their agreements, covenants and The result, he says, is a more ‘corporate’ structure, other legal matters. And, as for the risk of clients in which he has both the ear of the partnership and being reluctant to pay, he says that hasn’t happened the ability to make decisions quickly: “There’s trust yet either. within the organisation. Partly, that’s because DACB has implemented a Covid tier-one team, finance is truly embedded in the business and is Gillard says, including a variety of business leaders respected as part of it.” from across the firm – which meets daily – and executive and board meetings have also become Feat of the moment more frequent. The most important information For many firms, tightening up financial discipline produced for these meetings, and from other and introducing new initiatives, structures and sources, is now pushed out by email from a senior processes has proved fortuitous in hindsight now executive, which Gillard says is more likely to draw that a recession – however long – seems inevitable. attention than more “passive” IT systems, such as But few would have expected it to be the result of a intranets. “Daily data can be very noisy, so these global pandemic, nor foreseen the speed of events communications include weekly trends, in – necessitating swift and unprecedented action. At graphical form, including instructions, hours Moore Barlow, Ake says the firm has explored and worked and chargeable hours per person,” he says. implemented various of the government’s support And along with an increased focus on measures, including furloughing staff – although communications and accessible data, firms have not within the finance function, which has also been looking at their pricing and resourcing. continued to be busy. What has changed is the While the business-as-usual work undertaken by >> focus and frequency of the information produced the pricing team at Pinsent Masons remains steady,

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“There’s almost nothing we’re doing that isn’t relevant to what clients are asking for now.”

David Carter, chief product officer, Norton Rose Fulbright

head of pricing Adrian Avanzato says he’s seen an chance to prove remote working can be at least as increased need for contingency planning and more productive as being in the office: “There’s agile pricing. “There’s a lot to do around strategic enormous value in physically being at work, but price planning in a very short period. It’s a fluid there’s no doubt there were inefficiencies in the situation – some areas of work may increase, and previous ways of working. We’re looking at ways others decrease – we just don’t know by how of combining the best of the old and the new.” much yet. We’re only just starting to see those The success of working during lockdown will trends.” likely also prompt firms to scrutinise costs. At Carter says the Transform team at Norton Rose Moore Barlow, Ake says all the firm’s staff had Fulbright has never been this busy: “There are so been working productively from home for seven many novel problems clients want to hear about – weeks (at the time of writing) – prompting a new there’s almost nothing we’re doing that isn’t approach. “Property is a big component of our relevant to what clients are asking for now.” costs and reducing that would significantly affect our profitability. When a lease comes up for Catching the turning tide renewal in future, we won’t just renegotiate the One of the biggest operational challenges for firms lease as before – we’ll consider how much space has been working away from the office, which the firm really needs,” he says. some have been more prepared for than others. Whether by luck or judgement, Giles says Is the price right? Fieldfisher had already been trialling a ‘virtual Williams adds that one consequence of increased finance team’ over the last 12 months, spread over remote working will be a shift towards measuring its London and Manchester offices and this productivity, which has implications for incorporating hotdesking and remote working. “It service delivery and pricing. “Metrics will change was a good dress rehearsal for coronavirus – we’ve and become more specific. General counsel have still had to learn as we go, but I’m almost certain long wanted ‘more for less’, and the pandemic has we’re going to see more flexible and remote only supercharged that mantra,” he says. working at the end of lockdown,” he says. Giles at Fieldfisher mentions increased recent Tony Williams at Jomati believes the success of interest in the firm’s FeeSolve programme, which working from home has significantly eroded the aims to risk-share the cost of insurance litigation culture of ‘presenteeism’ that was still found in law with clients. “I can see a greater appetite for this firms’ cultures, as he estimates firms have kind of work in future, and for more risk-sharing achieved 85-90% of their normal production levels structures with clients,” he says. And at Allen & while in lockdown, Overy, Haines says demand for alternative He says: “We’ve had a six-week ‘petri dish’ resourcing models has also increased – while running homeworking – and it’s worked for all the adjustments made during the coronavirus firms I’ve talked to. The dinosaurs who said lockdown will be likely to accelerate existing homeworking was a ‘slacker’s charter’ three trends: “As clients realise it’s possible to work months ago have now been blown away.” perfectly effectively remotely, demand for When the world of work begins to settle into a alternative legal services and work done through ‘new normal’ – whenever that might be – Haines remote service centres will go up.” says Allen & Overy is keen not to slide back into Firms may need to look more closely into >> some old habits, and one silver lining has been the pricing as well, Avanzato says, as the market is

Tweet us @Briefinglegal 17 Briefing JUNE 2020 Take a look at the key challenges for law firm lock up BigHand Global Cash (inventory), profit leakage and lawyer compensation, and Flow & Profitability Survey how current data visibility levels are impacting change. Data Visibility is Fundamental to Global Profitability and Cash Flow Improvement Strategies

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Priority projects concerning Accounts Receivable (AR) 51% 37% in the next 2 years 1 Aged WIP Aged Debt

37% 31% 31% $ UK firms’ goals 31% 27% include improving Introducing new Improving billable Billing more visibility of lock up to: processes for collections time entry frequently USUS Management Partners In the US... UK In the UK... 9% 21% STOP 52% 20% of respondents have access are using data up of CFOs have access to of Partners have access to real time WIP data to 3 days old WIP data to WIP data

To embrace more effective AR processes, trusted up If firms want to create a culture of profitability up to date to date data is imperative. 2 WIP data is essential.

Issues having a major effect on

C the firm’s profitability include: Profit Leakage A S H Issues having a major effect on the firm’s profitability include: 37% 32% ! US 44% UK Under Poor upfront 35% 35% 27% pricing work scoping of work

Billing Avoiding difficult Discounting Lawyers’ Upcoming projects to address leakage write-offs/ conversations to collect rates discounts for disputed bills payment 46% 45% will be training will look to Upcoming projects Yet only lawyers in pricing improve billable to address leakage practices time entry 19% 46% of US firms currently $ However, training US of UK Partners have will be reviewing report on cash needs to be supported access to cash billing write-offs realization at a client by accurate data UK recovery data. and standard rate or matter level and today, just 19% discounts

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have already are planning on have already are planning on introduced implementing 41% introduced implementing 50% incentives/ incentives/penalties 57% ‘increasing billable incentives/penalties 54% penalties for to ‘increase time entry’ as an to ‘increase cash ‘reducing discounts profitability margins’ incentive/penalty recovery’ below standard rates’ of Partners have access to key Lawyer of Partners have access to this profitability data, this needs data currently, which raises Only 14% to increase to successfully Only 19% questions as to how Partners implement lawyer compensation Compensation can be realistically incentivised incentives / penalties. to increase recovery.

To find out more, please see the BigHand Global Cash Flow & Profitability Survey Report or visit https://www.bighand.com/en-us/bighand-cash-flow-report/ FEATURES >>

“Daily data can be very noisy, so communications include weekly trends in graphical forms, including instructions.”

David Gillard, group finance director, DAC Beachcroft

increasingly moving towards legal ‘solutions’ and these and other changes prove will depend on the the individual service line approach is duration of the pandemic and the shape of the diminishing. “The conversations around pricing recession that follows – V, U, or L. our services are going to be deeper, more granular But embracing the required change should be a and more complex. Value-based pricing is going to guiding principle, he says: “Firms should be asking be in higher demand,” he says. Ake echoes this, how they can get people back to the office in saying a new pricing project will be one of his top September, working in the way they otherwise priorities in the near term. would have in September 2021.” The unpredictability of the economic future, It seems that, whatever the new normal holds, Williams says, means firms are having to plan for Ake speaks for many when he says that working multiple potential scenarios at the moment, with patterns, priorities and culture will be changed for some planning to put their staff on four-day weeks good by what everyone has been through: “We will or offering voluntary sabbaticals. How permanent not go back to where we were.”

A float in future?

Eclipsed by coronavirus, June Although he says it hasn’t been 2020 marks the five-year all bad news for the ‘listed six’ anniversary of Gateley plc firms, there’s also a compounding becoming the first UK firm to go effect associated with being public (on the AIM market). publicly listed. He explains: “As is Reflecting on the experiences of classic with the stock markets, if a the six UK firms now to have firm is in favour and something floated on either market since bad happens, it will have a smaller 2015, Tony Williams at Jomati says impact on share price. The reverse the more transparent model has is true for firms that are out of had its share of ups and downs favour.” Listed firms need to think a lot The big question – will law about pleasing their investors, he firms continue to go for this says, but they have other tools at strategy in future? Williams thinks their disposal as well: “People can recent events, and firms’ track sell your shares the same day as a records, will cause hesitation: business decision. Listed firms also “People will ask whether the have the potential to hold back upsides of a flotation are really dividends, or issue further shares, that significant compared to what but it comes at the price of a they thought they might have greater level of transparency.” been in the past.”

Tweet us @Briefinglegal 19 Briefing JUNE 2020 Ready to discover the ultimate Cloud Bundling Solution No Setup. No Install. Flexible Pricing.

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BRIEFING PEOPLE

Think inside the cube Innovation comes in many shapes. The high-volume legal solutions team within Bryan Cave Leighton Paisner makes the case for cubed to Josh Adcock

ollaboration is one of many She recounts a conversation with a general counsel buzzwords bandied about among to explain the problem: “He had reached out to C legal innovation aficionados. And another firm for support with a contracts issue sure enough, a multidisciplinary – his people were spending too much time on the team – balanced, synergised and details and couldn’t focus on higher-level issues – fully integrated – is at the heart of Cubed, Bryan so the firm sent back six biographies of Cave Leighton Paisner’s high-volume legal commercial contracts lawyers. He asked me, solutions initiative, launched in September 2019. ‘When am I going to get solutions to my Global chief innovation officer Katie DeBord problems?’” The result of this feedback is a team explains that Cubed is, on a conceptual level, an that focuses on high-volume problems, supported effort to marry the innovation streams developed down to the operational level, she explains. at pre-merger US firm Bryan Cave and UK-based Berwin Leighton Paisner (BLP) – which became BCLP in April 2018.

Solving to find success “We found clients felt well-served Targeting standardised legal work, Neville by the market for complex legal Eisenberg, CEO of Cubed and formerly senior partner at BLP, explains that this focus developed work, but it was a different story with from client feedback. “We found clients felt business as usual work.” well-served by the market for complex legal work, but it was a different story with business as usual Neville Eisenberg, CEO, BCLP Cubed work.” >> The driving factors were clear to DeBord too.

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Cubed is an improvement on the initiatives that “Partners were bringing us in for particular either legacy firm had before, says Christian Zust, problems, which we would address at source product manager for Cubed. He had worked for a before moving on.” With Cubed, the team begins group at Bryan Cave that created bespoke solutions with best practice and offers that template as a for clients, but which could only reach a limited product to the client, rather than trying to improve number of them. “We’re taking what we learned on existing client processes. “You’re pushing rather about client engagement and seeing through than pulling or trying to fix what’s already there,” difficult problems holistically, then finding ways to she adds. scale up and solve problems more categorically. Many of our clients face similar challenges, and the Finding the right platform technologies, best practices and team structures It’s fundamental, Zust adds, to have a truly that work for one can be configured to suit many multidisciplinary approach in order to deliver a others,” he says. solution, not just legal advice. “Our clients’ problems aren’t exclusive to their law department Process of collaboration – it’s part of an ecosystem that all adds value to Cubed has three key dimensions (appropriately their strategic goals. If we were to leave parts of the enough), Eisenberg explains, through which it multidisciplinary approach out, we’d potentially be delivers solutions: a platform for delivering legal leaving gaps in a solution. For instance, even if services, legal operations support and high-level technology isn’t so important in one particular legal expertise. Bringing these elements together is engagement, excluding our technologists from the a delicate dance of collaboration – and having team discussion runs the risk that a gap will manifest members with different skills and depths of itself later.” specialist knowledge is critical to developing the To spearhead this dimension of the offering, the holistic solutions, says Angie Ligon, global account firm hired Jody Jansen from Gowling WLG to management director for the team. “You have to become Cubed’s chief technology officer. Jansen look at the issue from a client-centric perspective has since built up the platform architecture, – and you need different, specialist skillsets to do through which clients interact with the solutions. that. When you collaborate, you bring those pieces However, the path to enabling staff and clients together and create something different.” to collaborate wasn’t to be found through For instance, Salim Baba, legal operations impenetrably technical systems, Jansen explains. solutions manager for Cubed – but who also works “Traditional coding doesn’t encourage for BCLP’s legal operations consulting arm collaboration relevant to our skills. So, we selected Cantilever – says insight gained from that practice a low-code/no-code platform that allows us to can help Cubed deliver. “Trying to see visually develop a solution.” These are constructed opportunities to improve on the client side helps from the building blocks available on the third- us to better identify which technologies may be party platform used by Cubed – which he says has helpful for another project, but sometimes it even allowed it to iterate quickly, opening up helps the client directly. It can be quite an eye- opportunities for creating new, proprietary opener for some clients.” products. “The speed at which we can Key to the concept is another trifecta: process, people and technology. The first aspect requires deep, specialist expertise, just as much as in any other discipline, DeBord says. “Lawyers, by and large, aren’t trained process engineers. It’s a unique “Traditional coding doesn’t skillset and, until you have a proper process encourage collaboration engineer at your side, it’s hard to appreciate the value of that.” relevant to our skills.” Enter Susan Whitlaw, head of process improvement at Cubed. She says BLP’s process Jody Jansen, chief technology officer, improvement team had been around for five years BCLP Cubed before Cubed, but how the team collaborates and >> implements its process expertise has changed:

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communicate requirements, execute them, and similar one in St Louis, Missouri, and the senior work on workflow design or data extraction, team operates from both sides of the Atlantic. Zust allows us to build the right products for clients. says this has been no barrier for the team, which That’s due to our technological capability to be has been reaping the benefits of utilising flexible.” structured processes and technologies beyond That flexibility includes being technologically mere videoconferencing for some time. “Workflow agnostic, adds Baba. The team can use any tech tools enable real-time notifications that are that best suits, swapping out the right tools for the directed to a specific person – somebody job at hand, whether that’s document automation, reviewing a contract knows it’s their turn and, contract analysis tools, or anything else. when they’re done, it will pass to somebody else,” he says. On top of that, he says information can be Blended skills palette aggregated up to an account manager such as Balancing these strengths and skills, and Ligon, and fed back holistically to the client. optimising the formula, is the final piece, says Nick At the time of writing, widespread lockdowns Pryor, product manager for Cubed and director of across the globe, prompted by the outbreak of the innovation solutions for the wider firm. “We’re novel coronavirus Covid-19, have forced businesses always utilising multiple skillsets, deciding which to rapidly adapt to remote working, causing design decisions would result from a given disruption for many. But Zust says this has also technology, how the legal process management further highlighted the benefits of the team’s ways team can manage and support the work, and of working: “The technology helps everyone stay choosing which parts of the work are better served connected – so everyone’s paddling the boat in the by lawyers working on complex matters to design same direction,” he adds. a playbook most effectively – we’re trying to be the The team has also tried new, arguably sum of all those parts.” innovative ways of keeping in touch through The ability to blend volume work with complex lockdown, Jansen says. He recently introduced legal advice in this way is one of the major ‘vrjidagmiddagborrel’ – Dutch for ‘Friday benefits, which relies on a triage process, Whitlaw afternoon drinks’ – starting in the UK at 5pm adds. It involves sending work up to the complex (though the US-based were only drinking coffee). team if needed, striking a balance between Each member talks about their week and how efficiency and high-level complex advice. It’s a they felt. “We demonstrated our progress on strength that she says sets Cubed apart: “We can several projects – Salim [Baba] was nominated to offer more than an alternative legal service present his product, for instance. We like to make provider, which may not be able to offer that sure everyone is aware of what we’re all doing.” So, advanced playbook design service.” there’s space for thinking outside the box even Whitlaw explains the benefits of one specific while inovating within the ultra carefully- new solution Cubed is piloting with clients: it designed cube. offers commercial contracting support, including what she calls a “root and branch review” of clients’ playbooks and templates. While these complex matters are being worked on by the firm’s lawyers, the volume aspect of the solution is also worked on by paralegals in its Manchester delivery centre. “They’re getting the process expertise from “Workflow tools enable real-time the likes of myself, a tech platform which offers reporting automation and data analytics, and notifications that are directed complex legal advice, as that comes in through the to a specific person – somebody design of the playbooks in the first instance.” reviewing a contract knows it’s their turn and, when they’re done, it will Global pass to somebody else.” In addition to being a multidisciplinary team, Cubed is also an international one – the UK Christian Zust, product manager, BCLP Cubed delivery centre in Manchester is mirrored by a

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Critical connections 25 29 Change the No lawyer is an Sponsored by conversation island Gareth Thomas and Guy Todd Miller at Intapp Adams at Intapp explain says it’s vital that firms how data can help to have collective build better client bonds knowledge of contacts >>

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INDUSTRY INTERVIEW Change the conversation

A strongly connected client experience in extraordinary times relies on having a smooth process for firms’ underlying data, and then using it to ask the right questions, say Gareth Thomas and Guy Adams at Intapp

s much as having the technology in what should they actually say? place to facilitate it, the huge essential That means to their employees of course, but A shift to homeworking in March 2020 also their clients. Now, surely, is a time to stand out has required law firms to challenge as the firm your clients feel an affinity with on a themselves concerning the fundamental quality of cultural and human level, as well as being a their communications. How often, and when, business they can rely on for their changing legal should they really be communicating with people needs. to achieve the best experience for all in extremely difficult circumstances? How can the right Listening to learn messages be effectively prioritised? And of course, Gareth Thomas, practice group leader for the >>

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“Historically, you’ve seen a fair amount of awkwardness around having really open dialogue. Positive feedback is good to hear, but it’s the negative that you most need to hear.”

Gareth Thomas, practice group leader for the marketing and BD practice, Intapp

marketing and BD practice, EMEA, at Intapp, says needless to say, pointing that fact out is a firms should be making very proactive conversation best had with a good level of improvements to their client-listening emotional intelligence as well. programmes. “Historically, you’ve seen a fair Today, more than ever, firms also need to realise amount of awkwardness around having really that good communication with clients is not in fact open dialogue with clients,” he says. “The idea over-communication. “GCs are incredibly busy – behind these activities is to get useful information, all the time,” he adds. “Some are understaffed, and share it across the firm, and act on it. However, others are basically trying to run a mini law firm partners in particular can shy away from any within a corporate. Firms need to try to free those suggestion of criticism. Positive feedback is good people up, so communication can’t be lots of to hear, but it’s the negative you most need to emails that don’t get to the point. It needs to be hear.” powerful and productive.” Guy Adams, general manager, leaders and Indeed, a slim silver-lining in times of lockdown professionals solutions, adds: “As an ex-lawyer, I may be that communication has tended to become know that it really used to be a case of, do the more personal and authentic, he observes. There’s work, send out the bill, and the less you have to less mass email, and ironically a little more face speak to the client the better! Admittedly, partners time. People share a stoical laugh, you can see their are now more likely to pick up the phone, but it children messing around in the background, and could still only really be making contact – not truly ties are off if you aren’t being filmed for a thought- communicating.” Upskilling lawyers to best piece on the subject. practice in client listening and questioning, so they can reach the insights they most need to serve a Team formation client well, is a big “missing piece” of today’s Of course, another area of focus is how well business-improvement puzzle, says Adams. technology investments are delivering for both “There’s a real skill in getting to the root of what a firms and their clients in the circumstances of the client really needs in a situation, which isn’t crisis. That goes for client listening, comms, necessarily what they think they need.” And pitching, and lifecycle management, as much as >>

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“Law firms ‘leak time’ in many ways – discounts, write-offs, and then when it comes to collection. They really can’t afford to do so because it isn’t being correctly recorded.”

Guy Adams, general manager, leaders and professionals solutions, Intapp

any other legal business area. outcome would of course be improved equality of For example, a more automated way of pulling career opportunity and progression. together the firm’s people with the right combined Investment in information and automation skills and experience is one example that could could help on all these fronts. Just before assist teams responding to RFPs when so much lockdown, Intapp was gearing up to launch its more dispersed. And enabling more efficient OnePlace for Marketing suite; integrating a trio of work/resource allocation will be key, not only to recent acquisitions (DealCloud and gwabbit, the more flexible model of work that may stay for alongside OnePlace itself ), which is designed to the longer-term, but also to protect matter streamline understanding of both client profitability through the economic challenges that relationships and internal experience for further now lie ahead. Are the people at the right point in efficiency gains. their careers doing the right work to make the Thomas explains: “As well as lawyer whole more efficient? experience, it means people can easily access Firms will be asking questions about their information, and run reports, about who has been structures moving forwards. “Do they need that communicating with who; track the success of huge office in one city, or could they move to client-focused content; and create key clients and something more hub-and-spoke?” says Adams. sector plans that include meaningful listening “When everyone is in the same office, it’s fairly activities.” common to pull somebody you want into a matter; An alternative world of multiple systems and but now it’s not that easy.” Nor is it efficient, he silos isn’t only an obvious problem from the adds. perspective of a law firm’s internal process “We know a lot of firms have found they don’t efficiency, he says. “There’s also no continuity to have the process or structure to find the right the client journey – everything is passed through lawyer for a job – as important for internal different processes and teams. It’s at the junctures development and diversity as it is for efficiency between these that the client experience can and client service.” If agile working now becomes suffer from misunderstanding or delay – the more embedded in law firms, one hoped-for smoother the data journey, the smoother it >>

Tweet us @Briefinglegal 27 Briefing JUNE 2020 SPONSORED EDITORIAL CRITICAL CONNECTIONS >>

becomes for the client.” often-tricky topic. “Many have survived on spreadsheets and what’s in their heads up to this Time to change point, but they now realise a central system is Other solutions that should help with essential,” says Thomas. homeworking productivity include Intapp Time Adams adds: “Firms are telling us they – lawyers can capture time passively, and on their potentially have a 360-degree view of a client mobile if they don’t have the luxury of multiple globally for the first time.” But it’s a view that screens, for example – and also effective client relies on real-time data, with no exceptions. “Some financials and conflict-checking to avoid time firms are now enforcing rules that lawyers simply wasted. OnePlace for Marketing also integrates must record their time daily; there’s no flexibility with external data sources such as credit-risk there at all. It may have been seen as less information from Dun & Bradstreet. important in the good times, but now leadership “CRM and conflicts work should be integrated needs to know what’s coming through that could to make the most of both,” says Thomas. “It’s more be billed each and every day.” operationally efficient to run an early conflict Clearly, automatic time capture has the power search before you pursue an opportunity too far; to help them comply. “Law firms ‘leak time’ in you are now aware of that potential obstacle to many ways – discounts, write-offs, and then when progress further down the line. Similarly, you can it comes to collection – but if clients now start to run conflict searches on individuals and take longer to pay, they really can’t afford to do so businesses when creating lists in CRM to because it isn’t being correctly recorded. eliminate less-likely prospects when resourcing “It can’t fix a business completely, but without them all is such a challenge. You don’t end up with real-time information in your hands you are flying lists solely because they are the lists you’ve used in the dark.” before.” The data on both areas already exists, but it Cloud consensus? needs to be linked to see the benefit. Intapp has an Finally, now almost everyone in the legal approach called “zero entry”, he explains – profession has become a laptop-tapping remote information stored in one system should be able to worker, is the case for cloud-based access to be reused somewhere else. “Another great documents and information – something Briefing example is using time-recording data to build a has long tracked – cleared up? Intapp has said better picture of a lawyer’s true experience. If they OnePlace for Marketing is the business’s first haven’t updated their career biography for a while, example of delivering on its vision of a complete the system can automatically suggest that person financial and professional services industry cloud. with the right expertise based on the work they “The standard historical challenge has been have done to date. security, but so much money has now been “The lawyers aren’t doing anything extra in invested, data is usually safer in a cloud that on their workflow, but actions they’re performing in any one firm’s own systems,” says Adams. systems are surfacing other information “We’ve now reached a point where not only is automatically, whether it’s relationship strength on-premise often worse than a cloud offering from based on email exchanges or business a security standpoint; it’s also essential to have the development potential by time entry.” remote agility and flexibility to work efficiently Completing the picture are Intapp Terms – away from the office – which on-premise can designed to ensure lawyers are adhering to the never fully give you.” From key client agreed-on outside counsel guidelines – and a understanding to key infrastructure, in every pricing tool that uses AI to harness respect law firms are learning they data from historical like-matters, may need to flex established helping lawyers to drive decisions, patterns even more than they and client conversations, on that For more information, visit: thought in future. www.intapp.com/briefing

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No lawyer is an island Todd Miller, vice president, marketing and business development practice, at Intapp, says establishing new and trusted connections between sources of information is key to firms thriving commercially through 2020

very time I’ve spoken with a firm most businesses suffer from silos of some sort – considering a signature-scraping departments, systems, processes, and data – law E solution for their CRM system during firms exponentially compound this problem by the past decade, I’ve been asked a sequestering lawyers’ address books in hundreds similar question: “How do you address lawyers’ of micro-silos. concerns about sharing their contact data?” Not that it matters much that lawyers hold their Mind you, these questions come from contacts close to their chests. Our research shows executives at law firms that already own a CRM. that up to 40% of address book contacts are out of For years, my thought-bubble response to the date. This is because, on average, workers change question was: “Why on Earth would your firm jobs every 4.2 years. This translates to an annual invest in a CRM if your lawyers won’t share their contact decay rate of about 25%. contacts?” The Covid-19 crisis compounds this problem Eventually, that morphed into a different further. A recent McKinsey study found that more question: “Is your enterprise a law firm or a ‘lawyer than nine million white-collar jobs are either at hotel’?” risk, or have already been lost, representing more As it turns out, this question is a lightning rod to than 10% of the US white-collar workforce. In a much bigger problem for many firms. Although effect, this means that determining whether or not >>

Tweet us @Briefinglegal 29 Briefing JUNE 2020 SPONSORED EDITORIAL CRITICAL CONNECTIONS >> For more information, visit: www.intapp.com/briefing

a given contact in any lawyer’s address book is the matter requirements, current is essentially a coin toss. and drops their bios into When assessing the cost of bad contact data, the firm’s pitchbook and presentation materials. consider the special role that contacts play for a • The system identifies existing relationships at law firm. Contacts are the first step of the client the firm for contacts at the prospective client. journey. If firms are successful, contacts become Lawyers re-establish contact in advance of pitch clients. Through relationships with other people, meetings, both to obtain vital intelligence and to contacts create the bridge between prospective begin spinning the deal in the firm’s direction. business and actual billable hours. • The system serves up current news and With contacts cloistered away in ‘lawyer hotel ‘firmographics’ about the prospect. In advance of rooms’, individual lawyers may have fragmented a key meeting, the lawyers who will pitch the awareness of their own contacts, but the firm has business do their homework. almost no collective knowledge of this essential • The lawyers are well prepared. They win the information. Without awareness of its contacts, business. Mission accomplished. the firm also has no knowledge of its matrix of • Except there may be a problem: at the matter key relationships. intake stage, the system alerts the lawyers of a This describes the state of 1990s-era CRM potential conflict. The lawyers perform additional systems, a standard to which many major firms due diligence to assess risk. A fully informed still cleave in 2020. These expensive systems are, decision is made to proceed. in essence, gilded buckets for contacts that • Once underway, the system alerts lawyers lawyers may or may not opt to share with their working on the matter to potential unbilled time. colleagues. Even for those relatively few contacts The system also alerts the lawyers to be mindful that make it to the CRM, there’s an abundance of of terms the firm has agreed to — both in this missing data, including how well lawyers know matter and other clients’ agreements — to each contact, and the dates they last engaged. The eliminate obstacles to collecting timely payment system also provides no idea as to whether those on invoices. contacts still work at the companies listed in their This describes the collective platform vision source address books. for 2020, one in which the whole of a firm’s data intelligence is greater than the sum of the parts. Building bridges It’s a system that not only establishes bridges to Data islands aren’t restricted to lawyer address disparate data islands, but also sources that data books. Information silos include individual passively, adds context and meaning, and then matters, time spent on those matters, awareness packages and delivers actionable insights while of conflicts and contractual terms, as well as also providing the means for lawyers to act. essential news and information about clients and Four centuries ago, John Donne wrote “no man their companies — not to mention inventories of is an island,” suggesting that everyone is a “piece the firm’s own expertise. of the continent, a part of the main.” Although this When isolated, these data silos bring some notion applies to any organisation, it holds utility to the firm. But this value pales in particular meaning for law firms, whose comparison to what firms could accomplish by businesses evolved from myriad individual bridging these disparate islands. practices hosted in brick-and-mortar buildings under a single brand. Law firms of the 21st- Here’s one example: century will have seen much focus on those types • The business development team prepares a of physical offices, or even on micro-practices pitch package for business the firm is trying to that operate within the firm. The firms that win. The prospective matter requires specialised succeed moving forward will be those that tear intellectual property experience in aeronautics. down walls — both metaphorical and physical Ideally, the lawyers working on the matter would — enabling the enterprise to realise competitive be geographically proximate to Seattle. The and financial gains well beyond those that were system identifies the firm’s lawyers who best fit possible for their 20th-century ancestors.

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Brain training 33 Agreement on the new normal? Clare Murray and Zulon Begum at CM Murray suggest some ways firms might consider handling a cash crunch

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HANDS ON Agreement on the new normal? Managing partner Clare Murray and partner Zulon Begum at CM Murray consider the constitutional powers firms should have in place to survive the financial impact of the pandemic

o law firm, staff and partners. holding on to their highest regardless of its We are at the stage where -performing partners. N size, can escape most law firms have now Law firms should review their the impact of adapted to new working LLP or partnership agreement to Covid-19. Most practices due to mandatory ensure that they have the firms have been forced to change lockdowns. The immediate constitutional measures in place the way that they operate by challenge for firms is managing to preserve the financial and moving their entire workforce to the impact of a looming cash structural stability of the firm. remote working, and are relying crunch. If the crisis is prolonged, Below are five critical on technology and social media firms may resort to pruning their constitutional measures for firms to stay connected with existing partnership to maintain to help them survive the and potential clients and profitability while maintaining Covid-19 pandemic and thrive in >> referrers, as well as with their partner performance and the ‘new normal’.

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Steps to prevent a cash The partnership or LLP crunch agreement is key to Many deals and non-urgent restricting partner exits legal spending have been put on hold indefinitely. Existing and protecting the firm clients are taking longer to pay from the consequent loss legal fees, and some may even of clients and revenue be unable to pay. New engagements are becoming harder to win as many clients are concerned about their own dwindling income and cash reserves. To combat the • External debt financing. large and mid-sized law firms devasting impact of a cash For most of these measures, typically range from six to 12 crunch, many law firms have the firm must have the power months. Firms should consider already taken drastic measures under its partnership or LLP whether to include an option to conserve cash to shore up agreement to take such action. for the firm to extend the their balance sheets. Such powers are usually notice period in special The most popular measures delegated to senior circumstances (such as to to preserve cash include: management or exercised by a ensure the financial and • Halting all discretionary partner vote. In the absence of structural stability of the firm spending an express constitutional during a recession). • Furloughing UK staff under power, each partner’s consent • Waiting lounge: multiple and the UK’s Coronavirus Job will be required (which can simultaneous partner Retention Scheme cause unnecessary delay and departures (such as a team • Moving staff to part-time issues if partners refuse to move) can result in a significant working and reducing pay accept the proposed changes), capital outflow and seriously pro-rata unless the firm can obtain • Offering voluntary unpaid support from the requisite sabbaticals to both partners majority of partners to amend and staff the partnership or LLP • Reducing partners’ monthly agreement in order to delegate drawings such powers to senior • Reducing partners’ fixed management. profit shares • Deferring undistributed Restrict and mitigate partner profits the impact of partner • Deferring payments of departures capital, undistributed profit Law firms cannot afford to lose shares and tax reserves to their highest-performing exiting partners; and partners, particularly in times • Exiting partners who are such as these. The partnership perceived to be or LLP agreement is key to underperforming, or are no restricting partner exits and longer a good fit for the firm. protecting the firm from the Firms have also been consequent loss of clients and increasing cash reserves revenue. The key provisions to through: include are: • Partner capital calls • Extended notice period for • Using partner tax reserves as resignations: notice periods >> working capital for voluntary retirement in

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moves have also become and that they have common. However, such constitutional powers to restrictions need to be carefully manage underperformance, worded to ensure that they are such as the ability to: enforceable under the current • Issue warning notices law. • Reduce points or fixed profit • Garden leave: the firm can shares lock a partner out of the • De-equitise business during all or part of • Compulsorily retire their notice period to give the underperformers. firm an opportunity to Ensure that the firm adopts a consolidate and transition consistent and transparent client relationships. partner performance • Good leavers and bad management process, with leavers: good behaviour by clear evidence of departing partners (for underperformance compared example, compliance with to unaffected peers. Tailored restrictive covenants) can be partner performance encouraged and bad behaviour management policies and (misconduct, or a breach of the processes are becoming more partnership or LLP agreement, common and are highly including organising team recommended to ensure a moves) can be discouraged by transparent and consistent deferring a bad leaver’s approach. Firms need to review their financial entitlements on partner KPIs, performance retirement or setting-off any Avoid unlawful assessment policies and damages suffered by the firm discrimination and appraisal processes to against the bad leaver’s whistleblowing detriment ensure they’re appropriate financial entitlements on Law firms should always retirement. Care is required in consider the risk of claims in the current environment the drafting to minimise the against them for unlawful risk of potential unlawful discrimination as a result of deduction claims in the introducing or amending the employment tribunal following partnership or LLP agreement, the withholding of current or or exercising discretionary former partner remuneration powers in the partnership or destabilise a firm. A ‘waiting without their consent. LLP agreement. lounge’ will limit the number of It is not uncommon for partners who can voluntarily Effectively manage partner partners who share protected exit in a specified period performance characteristics (such as sex, (typically, 12 months). Firms need to review their disability, age or pregnancy) to • Restrictive covenants: partner KPIs, performance be unintentionally former partners can be assessment policies and disadvantaged. Common areas restricted for a specified period appraisal processes to ensure of risk include: (typically between 12 and 24 they are appropriate in the • Suspension or reduction of months depending on the current environment. Firms profit shares during periods of legitimate business needs of the still need to ensure that they absence, which may firm); from working for a manage performance robustly discriminate against those who competitor, soliciting existing (although, a temporary are on parental leave or sick and potential clients, and adjustment may be required to leave. poaching employees. Clauses account for the challenges of • Expulsion of a partner who is >> preventing orchestrated team the current economic climate) unable to work for a prolonged

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period of sickness may amount It’s vital that the firm Amendment powers to disability discrimination if has both the power In order to introduce any the absence is a consequence of changes to a partnership or a disability. to deal effectively LLP agreement, firms will need • Compulsory retirement of with partner to follow the process provided partners who have reached a underperformance for in the agreement (typically, specified age. and the underlying a specified majority of partners In exiting a partner for objective business data will need to approve the underperformance, for changes). If the partnership or example, it will often be LLP agreement does not asserted that the partner’s expressly state how performance is no worse (or advance of taking action, both amendments can be made, it is indeed is better) than that of a the power to deal effectively likely that the unanimous number of comparable partners with partner underperformance approval of all partners will be and that their own selection is and the underlying objective required. related to gender, age, disability, business data and related Note: In this article, we use or other protected grounds; or evidence to prove a consistent the term ‘partner’ in a colloquial that it is as a result of their pattern of underperformance sense to mean a partner in a having blown the whistle on compared to peers; one general partnership and a alleged wrongdoing. untainted by unlawful member of a limited liability It’s vital that the firm has, in discrimination or victimisation. partnership.

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Industry views

oin Legal, says firms Catch the training A brighter outlook DorigenBetter real-timeSykes, managing 39DJim Godman at Thomson 47 director,financial iTrain data Legal for the, Reuters says Covid-19 has says firms downturn strengthened the case for Dan Wales at BigHand cloud-based working in says firms must heed the several respects financial management lessons learned in the Catch theg last 10 years DorigenBundling Sykes, documents managing 43 director,with a iTrain difference Legal , origen Sykes, says firms Sam Moore, innovation Digitalmanaging billing director, manager at Burness Paull, 49DcomesiTrain of age Legal , says says a range of work is more firms Lindsay Barthram at efficient with Bundledocs Wilson Allen says it’s very clear the time has come to Catch theg implement an online Issue sponsor: LoremInsight Sykes, every managing day billing solution 45 director,Fraser MayfieldiTrain Legal at Iridium, says firms Technology says reliable, real-time data is even more critical to protecting profitability in a crisis

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INDUSTRY ANALYSIS A brighter outlook Moving enterprise, matter and financial management to the cloud will accelerate now firms have shifted to remote working to handle the Covid-19 crisis. It’s a logical next step, not a leap into the unknown, says Jim Godman, senior director, software sales, at Thomson Reuters Legal Europe

f there’s one thing we can be sure of in I today’s uncertain world, it’s that things The impact of Covid-19 has changed are unlikely ever to be quite the same the way we live and the way we do again. In a matter of weeks, the impact business, forcing law firms to rethink of Covid-19 has changed the way we live and the way we do business, forcing law firms to rethink long-established ways of working long-established ways of working, as offices have closed their doors. Re-opening safely – whenever that might happen – poses longer-term logistical >> issues. Amid this challenging outlook, however,

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management against the latest legal knowhow – all in a way that is intuitive and straightforward to use without the need for extensive in-person training. Business enterprise and legal workflow solutions like 3E and Panoramic from Thomson Reuters have been designed to look the same and work consistently however they are accessed, whether as a cloud product or via on-premises infrastructure. They also easily integrate with existing IT systems and consolidate multiple data sources, making for a smooth transition. Moreover, firms need to keep clients very much in the loop. In uncertain times, the pressure on corporate legal departments to justify and contain their legal spend is likely to increase, leading them to keep a closer eye on progress and a tighter rein there are rays of light. Solutions already exist to on costs, more so even than they did before. help facilitate secure, streamlined, collaborative Cloud-hosted systems that enable disparate team remote working, notably cloud-based members to collaborate easily and interact with technologies. The 2020s could well be the decade clients in a professional, timely and transparent when the cloud has its moment in the sun. manner demonstrate their value even more quickly in circumstances like those we find Sharing economy ourselves in today. Adjusting to a sudden, wholesale move to remote working, while simultaneously ensuring that Migrating financials clients’ legal needs continue to be met seamlessly, Maintaining a high quality of legal work from a is a tall order. Firms are becoming acutely aware distance is one side of the coin. The other is that they need sustainable solutions rather than supporting solid business performance. Law firms short-term fixes. Remote working requires robust not only need to continue to do an excellent job for virtual connectivity between teams, clients and clients, they need to know that they are doing so in contacts, including instant accessibility to shared documents and workflows online, plus real-time on-demand matter visibility, oversight, and reporting. Remote working requires robust The need to control internal processes has virtual connectivity between teams, become more acute as well, now that staff are so widely scattered. Firm administrators need to clients and contacts, including instant know exactly who has been working on what and accessibility to shared documents when, where all the relevant documents are, and and workflows online what stage a matter has reached, as well as keeping track of why certain actions have been >> taken. They also need to be able to map matter

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a cost-effective, profitable way right now, and to be able to plan ahead in financial and operational terms. In a rapidly-evolving market this is harder, but more vital, than ever. If firms are to be agile, and make decisions confidently, they need up-to-the-minute information on productivity, efficiency, and profitability at their fingertips, both partner compensation, and comparing staffing to address the inevitable teething problems of capacity against revenue assumptions, are also transitioning to remote working, and as they look vital in this climate to remove systemic risk and to the future. They also need fast and precise enable resources to be deployed more strategically. modelling. Advanced Financial Reporting Solutions from Thomson Reuters provides an Costs and capacity all-in-one platform for firms to address their As times get tougher, there are wider financial immediate business challenges and implement considerations to bear in mind when it comes to long-range planning. the cloud versus on-premises data debate. Chief They can budget and forecast based on the among them is that investment in hardware (such most reliable, current data results with greater as onsite servers), software, and support services, accuracy, and outcomes can easily be tracked and is minimised by moving to a third party-hosted instantly monitored via real-time analysis model. External, outsourced providers can deliver dashboards. Modelling for various ‘what if’ economies of scale, in terms of both capacity and scenarios is also important, for instance by cost, as well as specialist knowledge, rapid update providing insight into key profitability drivers, or implementation, robust security and reliable using direct and indirect cost data to calculate networks. With a sharp economic downturn appropriate fee rates and optimise cost already underway, many firms will urgently want management. The effective management of to look again at their cost/benefit analysis of proprietary in-house data centres compared with outsourced software as a service (SaaS) options. Flexibility will be another key area of focus. With a sharp economic downturn Cloud models are designed to be scaled up and already underway, many firms will down as required, customised to suit specific firm needs, and provide for firms to cherrypick the urgently want to look again at their modules of a solution they need from a menu of cost/benefit analysis of proprietary options, which can be altered and added to at any in-house data centres compared with time. Incremental product enhancements can also outsourced software as a service be made on a regular yet unobtrusive basis, based on what software providers are continuously

(SaaS) options >> learning from a wide base of users.

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Financial Reporting Solutions is based on enhanced Excel worksheets. As firms move forward from the initial imopact of the Covid-19 pandemic, they will need minimal distractions to get back up to speed. Cloud-hosted tools can serve that need, while also making lawyers’ lives Going with the direction of travel easier so they can get on with what they do best, Another thing we can be fairly certain of – wherever they are working: serving clients. whatever the new normal looks like in the Decisions around cloud migration that might aftermath of the pandemic – is that use of cloud otherwise have been years in the taking could be services will keep on growing. Microsoft’s fast-forwarded to happening today as firms must commercial cloud business swelled 39% to respond to changing circumstances. Business as $12.5bn last year on the back of soaring demand, usual (for the foreseeable future at least) no longer and more and more businesses and consumers are exists, and law firms have little choice but to becoming comfortable with using cloud services embrace change. However, that change does not for file storage and sharing, streaming, or need to be radical and disruptive. In 2020, communication. entering the cloud is more of a logical next step In the legal world, adoption is underway, albeit than a leap into the unknown. relatively slowly. According to research by the American Bar Association, cloud usage in the US legal sector stood at 58% in 2019, up from 55% the previous year, with the smallest firms leading the way in terms of takeup. The pace of change could accelerate soon. Law firms have little choice but to Even once offices reopen, the chances are that embrace change. However, that traditional working patterns will alter permanently, with less emphasis on all workers change does not need to be radical sticking to the traditional office-based, nine-to- and disruptive. In 2020, entering the five working week, and ongoing focus on cloud is more of a logical next step flexibility and remote connectivity. What firms than a leap into the unknown need are products that can migrate with a minimum of fuss and disruption, providing everything they need on one platform that looks and feels intuitive and familiar. That’s exactly why there is no difference For more information, visit: between 3E and 3E Cloud, for www.elite.com example, and why Advanced

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INDUSTRY CASE STUDY Bundling documents with a difference Bundledocs collaborated with law firm Burness Paull to help it comply with stringent new rules for assembling and presenting documents, and save significant sums in the process, says innovation manager Sam Moore

s arduous lawyer admin tasks ripe for Paull’s lawyers and paralegals working on the some efficiency improvements go, they largest commercial actions at Scotland’s Court of A don’t come much more so than Session. “These call for a joint bundle – a collating hundreds of documents into consolidated collection of all documents and project bibles for all parties at the close of a arguments from both sides – and new court rules transaction, according to Sam Moore, the demanded that it was all done electronically, with innovation manager at Scotland’s Burness Paull. further restrictions around issues such as Moore became the first in the UK to secure numbering, hyperlinking, and so on.” This was accredited legal technologist status in late 2019. proving inefficient to handle internally, and in the But as a busy construction lawyer back in 2016, he largest and most complex cases the firm was was very familiar with bible-building frustrations: increasingly leaning on an external document “The training required on the pdf-editing production specialist. It begged the obvious platforms was pretty tricky, it was all taking a very question, could Bundledocs take on this process long time, and you’re reliant on having every transformation too? signed document back before you can even begin Moore explains: “It could meet around half of – there’s always one that hasn’t been returned.” the Court requirements straight out of the box, as He was firmly in the market for a tool that could there are some built-in functionalities for English make lighter work of all this, and had come across courts – but Bundledocs then agreed to collaborate Bundledocs at an industry conference the year with us over three to four months to customise the before. The pair launched a pilot for the use case, software in such a way that we could be compliant and it didn’t take at all long for the value to become for Scottish Courts as well.” clear, he says. There were some 20 modifications, which underwent some beta testing and which are now Rewriting for the rules there for all as features in the core product. These At around the same time, however, even more include formatting page numbers to appear in red >> ‘paperwork’ was causing headaches for Burness in line with the Scottish Court requirements, and

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pinpoint hyperlinking from references, alongside a suite of annotating options, such as highlighting and redacting. The firm can also upload the content of folders straight into template Court bundles from their document management system with one click. Moore continues: “I really think it shows that if firms make the effort to go back to developers with what they really need, they can often get everything they want from a solution – not just make do with ‘good enough’. I see tech vendors crying out for that sort of feedback, but too rarely getting it from lawyers. “Now we use Bundledocs for both those use cases as standard, and we’ve had some really great feedback from clients, external counsel, and even other law firms about the consistency and simplicity of our Court bundles. As this is essentially an admin task, it’s in everyone’s interest that it happens as efficiently as possible.” In one case, some 500 substantial documents were needed for a joint bundle, and the Court (plus external counsel) needed to be able to browse and search through them on tablet a lot of documents need collating into an indexed devices. Historically, Moore claims that would bundle, this is how we do it.” have cost the firm a significant sum to outsource Another example of where this can add value is to a document production specialist, the cost of in employment tribunals. Moore says: “You often which might not have been entirely recoverable. need to sort thousands of emails into “Recovery of course requires that you win your chronological order, including attachments, to case, and even if you do there are often help the Tribunal follow a chain of events. In the limitations. The same goes for a settlement days of hard copies, you’d have printed them all situation, a party very rarely recovers all of their out and physically sorted them. Even with Court costs. Now, if there’s any situation where electronic copies you’d still need to manually produce an index, and manually hyperlink each document.” So, certainly not desirable if working from a makeshift desk in the middle of a “We’ve had some really great pandemic. However, being entirely cloud-based, feedback from clients, external Bundledocs is easily accessed by portal and counsel, and even other law firms. connects with the firm’s document management As this is essentially an admin task, system (also in the cloud), he says. Training on it it’s in everyone’s interest that it takes no more than an hour to reach a good level happens as efficiently as possible.” of self-sufficiency. He adds: “Bundledocs can automatically produce a single Pdf from the source MSG files, in Sam Moore, innovation manager, date order, with an index. I see no reason we’d do Burness Paull this any other way in future.” As process efficiency and productivity come under the microscope like never before, the message that sticks is that it’s worth taking time to For more information, visit: www.bundledocs.com consider whether you’d be best to communicate and collaborate before you innovate.

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INDUSTRY INTERVIEW

Insight every day The global health crisis is putting pressure on all manner of business, but Fraser Mayfield, head of EMEA at Iridium Technology, says it has never been more important for law firms to have daily insight into vital performance metrics

ike many businesses, law firms are crucial for a range of other reasons. currently facing a raft of new financial L and productivity pressures as a result Eye on the price of the various lockdown measures A second immediate impact of the pandemic firms implemented across the globe. While governments are seeing is reduced caseloads, which is being plot a way out of the health emergency, firms are experienced across many legal practice areas, and looking for solutions to stabilise the ‘new normal’, a highly competitive landscape for certain legal says Fraser Mayfield, head of EMEA at Iridium work types will be the result. If firms are to avoid a Technology. “race to the bottom” on pricing, Mayfield says, The first challenge facing many is the threat to they’ll need to have a clear and accurate cash realisation. “Businesses around the world are understanding of the cost of delivering their looking to share the pain with their supply chains. services. “Knowing the costs means firms can price Many clients have paused payment to their with confidence. If firms have capacity, it might external suppliers – and legal is no exception – as make sense to work with clients on new resourcing many will be going through financial difficulties and pricing models. But, in order to bid for work themselves,” he says. Although firms can’t outside their typical pricing structure, they’ll need overcome that issue entirely, they can try to get a to understand their current resourcing and more accurate picture of where cashflow is most utilisation levels,” he explains. squeezed, and by how much, he explains – and Another challenge facing firms during this >> having access to that business information is also period, he says, is the impact that working from

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from the 350 in the full platform – and is accessed through a web browser, he adds that it can be delivered quickly and at a low cost-point.

Prioritising time But in fact, while many businesses are preparing for long-term economic disruption, he observes home may have on efficiency: “How law firms there are a few shoots of recovery already in some provide their services is changing at the moment, practice areas.“Because of court closures, there’s a and many activities may take longer than usual.” backlog in litigation cases, as well as in areas like Levels of realisation need to be closely monitored family law. Firms need to ensure they’re correctly as a result, he says, as clients are also likely to staffed to take advantage of those areas when demand a higher-than-normal adherence to there’s an uptick in market conditions,” he says. quoted fees, owing to internal pressures to keep That means firms also need to keep a close eye on costs down. utilisation, both in terms of practice areas and the What’s more, knowing that some processes are proportion of time spent on non-billable activities. taking longer may lead to hesitancy among fee Ultimately, Mayfield says, better insight can earners to bill the full amount of their time, he support improved organisational alignment and says. In order to keep a steady grip on these three prompt firms to operate on a more ‘live’ basis, with factors, he argues firms need to be more real-time information. “The cost of implementing disciplined about how they track the progress of a a new solution is likely to be small compared to matter throughout its lifecycle. “In order to do the benefits you can get back. Firms are going to that, they need appropriate reporting both for be better able to respond to the ongoing changes internal purposes and to keep their clients in the environment,” he says. A permanent shift informed,” he says. towards more real-time business information will put legal leaders in a more knowledgeable position Bouncing back – important for identifying opportunities, Having key metrics easily to hand is clearly understanding the risks around cashflow, and important for keeping on top of all of this. In ensuring the firm is tracking to budget. And, he response to demand for increased visibility into concludes, it has one further lasting advantage daily trends affecting the financial performance of that ought to appeal: “In the long run, better its law firm clients, Iridium has recently launched insight should make firms more responsive to a focused version of its Revenue product: the Daily their clients.” Insights Tracker (see image above left). “Historically, overarching trends have been measured over long periods – often quarterly, or year to date. There’s now a need to shorten that “Historically, overarching trends have cycle – the typical horizon firms are looking at is been measured over long periods – 45 days, but we’ve seen demand for trends over as often quarterly, or year to date. There’s few as the last seven days,” he explains. Having seen plenty of uptake among its existing now a need to shorten that cycle.” clients, Mayfield says the Daily Insights Tracker can now also be delivered as a discrete tool, Fraser Mayfield, head of EMEA, Iridium Technology offering easy insight into current status. He explains: “Like a share price tracker, it shows movements up or down across 50 metrics, including billable hours, realisation and work in To learn more about the tracker, join a webinar on 17 June at: progress.” And as the tracker is focused on a www.iridium-technology.com/daily-insights-tracker-webinar reduced number of crucial metrics – refined down

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INDUSTRY ANALYSIS

Better real-time financial data for the downturn A recent survey from BigHand finds law firms must address a lack of data visibility if they’re to maintain healthy cashflow through the current crisis, says strategic accounts director Dan Wales

he challenges presented by the survey, this visibility is scarce. Some lawyers will Covid-19 pandemic have forced law be commercially savvy, and others won’t. This T firms everywhere to take a long, hard comes down to many factors, but even with the look at the health of their cashflow, best will in the world, lawyers cannot be expected paying particular attention to liquidity. From to prioritise and maintain the firm’s bottom line restrictions on partner drawings, to delaying without relevant up-to-date data about how they supplier payments, furloughing staff, or are best able to impact it. introducing four-day working weeks, firms are varied in their approaches to mitigate the impact. What have we learned from 2008? The differentiating factor in choosing which of As we all wait to see the scale of the full economic these methods is needed, comes down to how fallout from the crisis, the good news is that many cash-rich firms are right now, and the availability industry leaders are optimistic about the overall of funds forecast in the short-to medium-term. So impact on law firms ¬ citing the demand for legal what can firms do to proactively manage cash advice as high, in contrast to the 2008 downturn, coming in? What measures can they take to ensure albeit highly dependent on the type of legal advice clients can pay their bills? And how can lawyers be firms are delivering and their client bases. encouraged to focus on supportive (yet The 2008 downturn saw the rise of the competitive) commercial options? discerning client and, as a result, the introduction Ensuring access to reliable, real-time financial of dedicated pricing teams, the implementation of data to make accurate business decisions is vital. pricing policies, and the more granular breakdown >> Yet, according to our recent global cashflow of budgets and matter plans. These pricing and

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budgeting experts have subsequently learnt to Lack of financial visibility work closely with legal project managers to In our recent Global cash flow survey, we found ensure that budgets are kept in check throughout that an interesting number of lawyers and the lifecycle of a piece of work, and therefore to finance teams globally lacked access to timely maintain profitability, along with client financial information. In the UK, just 52% of satisfaction and added value. CFOs have access to real-time WIP data, and just a fifth of partners could readily view this What can be done? essential information. To differing extents, law firms have learned the The question of how law firms can improve theory for staying profitable – they are aware of working capital, and increase liquidity – without the pitfalls of under-pricing at the outset, profit accurate, real-time insight into the current state leakage in the delivery of the work and the causes of play – is even more crucial now. Having for delayed payment or billing write-offs. The key visibility of key working capital data is surely the focus will undoubtedly remain on cash and first step toward ensuring the longevity of overheads, but underpinning profitability is the healthy cashflow at this time. best place to start. Now is a key time to really put The survey also showed that firms are trying that theory into practice and ensure that financial to influence the behaviours of their lawyers understanding lands resoundingly with partners through incentives and penalties, but the same and lawyers. visibility constraints applied. For example, in the After all, it’s the lawyers who are the front line, UK 54% confirmed the implementation of and firms will rely on them to pick up the phone incentives/penalties for ‘reducing discounts to their clients, which will have both a positive below standard rates’, and 50% were planning to effect on client relationships and build that implement incentives/penalties for ‘increasing commercial awareness for the lawyers. If cash recovery’. alternative payment arrangements are going to be However, only 19% of partners have access to offered, there should be guidelines and education this data currently, which raises questions about for lawyers about which ones to use and why. how partners can realistically be incentivised to Law firms could consider any of the following increase recovery. Firms need to address the data options: disconnect to realise this goal. • Alternative fee arrangements like fixed fees or For firms to successfully implement rate relief capped fees for clients, while ensuring work remains • Discounting standard rates, flat discounts or profitable and bills are paid on time, visibility of early payment discounts the fundamental data is needed to support • Upfront billing, or billing on milestones collaboration across finance teams and lawyers • Extended payment terms. – and it should remain a top priority. But questions should also be asked, such as what do the clients themselves want? Which Quick response verticals need more help now, and which will In response to our clients contacting us to help need help in the mid-term as the impact wave them, we have developed an easy-to-deploy rolls through the economy? Which will recover Working Capital Edition of our flagship financial fastest and revert back to previous ways of BI solution BigHand Quantum. We are now working? How are payment approval times likely making this available to assist law firm financial to vary? leaders with getting access to core working It’s clear that a tailored approach is needed, capital data. The firm-wide dashboards highlight but being ahead of the competition here could be the most important WIP and debt metrics for a differentiator as the fight for new deals builds in better financial visibility to support business intensity. decision-making. Having clear-cut communication internally, and with clients, is also valuable. Open conversations throughout a matter about current progress, scope creep, or any over-runs – rather than waiting until the end – will give the client more transparency, overall confidence and For further information, visit: www.bighand.com/en-gb/ our-solutions/quantum-working-capital-edition/ ultimately decrease the risk of write-offs.

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INDUSTRY ANALYSIS Digital billing comes of age Lindsay Barthram, director of consulting services, EMEA at Wilson Allen, says it’s time to change the narrative on the law firm billing process – from paper to paperless

ll lawyers are problem solvers. It’s in overnight, with the mobilisation of laptops, their DNA, and finance and technology Microsoft Teams deployments and Zoom A departments within law firms are the conferencing taking hold with great success. This enablers for problems to be solved. But from an industry of ‘dinosaurs’, forever ‘lagging until recently, the thought of working from home behind other sectors’? That characterisation on complex legal transactions, and collaboration in doesn’t quite ring true right now. a seamless way across business processes from our But while many front-line staff members have living rooms, would make the blood run cold for managed to quickly pivot to a new way of working, most legal industry professionals. not all areas of law firm operations have been so When presented with the unprecedented need agile. Consider financial operations and processes to act, firms have rushed to grasp the nettle with like the billing cycle. We may be able to talk to both hands. There are many stories of people clients and one another. But how do we get to key pulling together, finding new ways of dealing with information, operate key tasks and keep the common problems, and learning to collaborate in financial fires burning while reaching for another new ways across geographies and time zones. Nespresso and custard cream biscuit from the >> Firms have moved to a remote workforce kitchen?

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get payment within terms. Cash is king as they The strategic advantage in say, especially in times of crisis. measuring the speed and size The introduction of technology to enable a of the billing flow is worthy of note paperless online billing processes is one such approach we’re seeing firms prioritise now the initial migration to homeworking is bedding Lindsay Barthram, director of consulting down. Before Covid-19, firms had embraced this services, EMEA, Wilson Allen type of technology with varying degrees of success and uptake. But a familiar cry was heard from some law offices – ‘I just want to print this I think it’s fair to say, firms haven’t always got it out and mark it up’. Great, but let me just reach right with one of the biggest financial processes for that fax machine or scanner. – that of the billing cycle. It’s heavily dependent In addition to the obvious operational benefit on paper and manual intervention, and focused that an online paperless process brings, the on the last few days of a month. This sounds like a strategic advantage in measuring the speed and bit of a car crash when we apply the current size of the billing flow is worthy of note. situation. And in speaking to a number of firms Leveraging key metrics in this area allows for recently, I’ve heard this paper-based burden has greatly improved visibility for forecasting been a difficult animal to tame. Some firms have cashflow and identifying blockers to realisation; dusted off fax machines. Some are sending people providing much needed information on the status to the office to sign bills! And this at one of the of proforma/billing guidelines; and tracking most critical times in the financial calendar for a real-time valuations of WIP, discounting and majority of firms – year end. possible income. The bottom line – creating a And yet, there are finance teams that have level of certainty and predictability around billing been able to pivot and make a step change in the and cashflow in an uncertain time. current climate to address their heavy paper- Imagine a world where automated production driven processes. They’ve leveraged the remote of billing information and guidelines appeared challenge as a business case to make electronically at the right time on the laptops of improvements, introduce technology and drive the billing decision-makers. It would allow for transformation though their operational real-time collaboration with team members and efficiencies. In so doing, they’ve eased the burden finance to enabling editing, annotations and on lawyers and finance teams while creating amendments. It would apply financial control, much needed transparency and visibility of the outside counsel guidelines and governance firm’s billing process. seamlessly, and deliver bill production There’s never been a greater need to improve electronically directly to clients, not just at the the billing cycle. Firms need to understand their month end, but when the invoice is expected. current WIP position, deal with client billing Now imagine a world where travel is limited, and needs, progress billing guidelines through review you are recommended to remain at home and not and approval, all while applying the financial socialise. Then ask yourself why you wouldn’t control and compliance needs that ultimately want to embark on introducing solutions that leads to bills out of the door that move to a paperless capability?

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INNOVATION AT WORK Explain to see Peter Allchorne, head of DAC Beachcroft’s claims solutions innovation lab, tells Josh Adcock the short story of a new explanatory animations package for insurance clients

n late January 2020, DAC to “de-mystifying” each key stage in who isn’t a lawyer, but previously Beachcroft launched a new the civil claims process. worked for the police service. “They I product for clients: a series So, what do they look like? “I had explained that, in the criminal justice of animations that clearly almost envisaged some sort of environment, a witness is guided explain the key stages in a claims cartoons – but we very quickly through each step of the process,” process to consumers of insurance realised that wasn’t the right way to Allchorne says. services. The package evolved from go,” he says. Simplicity, again, was the Considering how the animations the firm’s Innovations Lab, intended answer – the end result, as developed are delivered is another major as a space to develop new solutions by the Lab and a third-party creative consideration in the mix. “We’re for claims-related work areas, and agency, is a series of icons, which very trying to make the relevant headed up by partner Peter simply and graphically explain their information more easily consumable Allchorne. points, accompanied by a narration. – so, when we send letters in relation “It’s an incubator for new ideas – This also needed to be finely honed to a new stage of the claims process, and a resource to develop those ideas and tightly scripted, he says: “They such as to our client’s policyholder or before putting them into a project needed to say enough, but not too a witness, we embed a link into that development cycle,” he explains. much – any more and, all of a sudden, letter, as well as a QR code. But Kicking around new ideas, as well as you’re in danger of confusing people wherever possible, we’re also using encouraging them to “fail fast”, he with too much information, which SMS messages to make instant says, doesn’t come naturally to would be counterproductive.” contact, and to make our lawyers, but rethinking ways of doing Getting to this point drew on one communications more convenient to things is key to meeting client needs of the Lab’s key principles: consume on a smartphone device.” – especially when they’re desperately collaborative thinking. He explains The simplicity of this solution asking for change. “We’ve known for the innovation hub involves meant a simple “green light” from the some time that clients want the legal representatives from across the firm’s innovation steering group was all that profession to make its services more claims service lines. as well as was needed to go ahead and start accessible to their customers. The business support professionals, developing the idea. information we have to provide from including risk and governance, IT “Really simple ideas like this are a regulatory perspective can be quite and finance. So, it’s fitting that initial often the best,” says Allchorne. “But daunting to a layperson,” he says. inspiration came from a staff member we still had to do our due diligence – Although innovation often seems there’s no point getting carried away to involve ‘rewriting the rulebook’, on something that we think is a good Allchorne says the customer care idea, unless our clients agree.” explainer videos are an expression of Although it’s early das, he says the simplicity in innovation” “We don’t “It’s really about finding feedback so far has been see innovation as just technology and new methods of doing overwhelmingly positive, with future digital solutions. It’s really about monitoring consisting of feedback finding new methods of doing things, things, doing them better questionnaires and other metrics. doing them better than you’ve done than you’ve done before.” And other parties are interested in them before.” In elaborating on the the solution too: “We’re already animations, he says they “do what Peter Allchorne, partner, having conversations with colleagues they say on the tin” – there are 11 DAC Beachcroft and clients alike to identify how we animations of 90 seconds dedicated could iterate and develop further.”

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