Global Law Practice and Technology Strategies in the US, UK and Australia

Presenting:

Gerard Neiditsch Mallessons Andy Rudall Wragge & Co LLP John Alber Bryan Cave

UK Characteristics Population 61 million Legal population 151,000 (0.24%) Hierarchy (, , Freshfields, A & O, Slaughter & May) Silver Circle - 2nd Tier City Firms (Lovells, , SJ Berwin, Ashurst, ) Nationals Niche Provincials US Market very competitive within the tiers UK Characteristics Much lower percentage of contentious legal work (i.e . litigation) than in US Lockstep compensation declining Widespread use of non-practic ing lawyers Multi-national practices International growth Growing use of ‘discreet ’ outsourcing Clementi and Legal Services Act AU Characteristics Population 20.9 million Legal population 40,000 (0.19%) Hierarchy Top Tier (Mallesons Stephen Jaques, Clayton Utz, Freehills, Arthur Robinson, Blake Dawson and Minter Ellison) Mid-Tier Firms (Corrs Westgarth, Deacons, and DLA Phillips Fox) Niche (Gilbert & Tobin, Arnold Bloch Leibler) Provincials US (Baker, Skadden, Jones Day, Sidley) Large and growing Asia practice Intensely competitive legal market AU Characteristics Few firms with lockstep compensation, growing number of firms with differential profit sharing Less litigation oriented firms / practices than US GiGrowing use of outsourc ing More corporatized structures US Characteristics Population 304 million Legal population 1. 16 million (0. 38%) Hierarchy Elite Global AmLaw Many, many more More than 60% litigation overall Law Firm Size

% of law firms with… 1980 1991 2000

2 – 5 lawyers 81% 75% 76% 6 – 10 lawyers 12% 13% 13% 11-20 lawyers 4% 7% 6% 21 – 50 lawyers 2% 3% 3% 51 – 100 lawyers 1% 1% 1% 101 + lawyers * 1% 1% Total # firms 38,482 42,513 47,563 Sources: Statistical Report, American Bar Foundation, 1985, 1994, 2004 editions * Largest firm size for 1980 data was 51+ lawyers. US Characteristics Domestic market still the major driver Litigation principal focus No lockstep compensation Very limited use of non-practicing attorneys International gggrowth among a few firms Still many city-focused firms How the Differences Affect Legal Technology Compensation Lockstep—AU declining Lockstep—UK but continues to decline in favor of ‘merit/performance’ Uncommon in the US Which is better at accommodating current high pressure market conditions? Lockstep more inclined to share Lockstep makes technology quite a bit easier KM Does broader UK/AU KM base offer advantages? International Environment Does cross-border practice influence legal technology Competitive pressures Do the competitive pressures of smaller markets enhance the value of technology Legal Services Act? Working Together?

“As in investment banking and accounting, a group of probably no more than half-a-dozen truly global firms will come to dominate the marke t. Pro ba blbly two o f these w ill be base d on ex is ting “magi ic c irc le ” firms, and others will be formed out of the more aggressive and internationally-minded US-based firms. A key impediment to this at the moment is the ina bilitbility o f the “magi ic c irc le ” to grow su ffic ien tltly quickly in the US and the apparent unwillingness of the major Wall Street firms to invest significantly internationally. Thus, the emergence of a gllob al elite is likllikely to be an evo lu tionary ra ther than revolutionary process. A trans-Atlantic mega-merger involving a major “white shoe” New York firm and a “magic circle” firm appears unlike lly in t he s hort- or medium-term.” Tony Williams -Former Managing Partner, Clifford Chance Three Illustrative Case Studies Wragge & Co Beyond The Ordinary - Future Approaches Case study No one size fits all solution It’s about what’s best for the client If it’s not in their best interest, we don’ t do it It’s about adding value to the overall relationship We would not consider ourselves ‘radical’ in any way Case Study Her Majesty’s Courts Service Possession Claim Online (PCOL) What is it? Whyy, have we done this, what were the com petitive / market pressures that led us to this? Is it a radical approach? Where is the value? Wragge & Co - PCOL What is it? A web enabled application to manage claims in County Courts for possession of residential property for non- ppyayment of rent or mort gggage. Our case study is about building on this new solution. Why have we done this? To amplify the solution. Competition, market and margins. Client needs and service. Wragge & Co - PCOL Wragge & Co - PCOL Pre-PCOL Post-PCOL Manual submission Wizard based Two week turnaround 10 minute turnaround Prone to errors Errors almost eliminated Manual cheque process Automated Unit cost $300 Unit cost $100 Wragge & Co - PCOL Is it a radical approach? In as much as the fact that HCMS had to engggage with ‘antiquated’ legal processes and get rules changed – yes We just add ed val ue byb blen ding t he so lut ion Where is the value? Turnaround and end to end process Cost and resource reductions Less paper, tiitraining and errors No manual cheques, up to date financial reporting Clien ts happy Mallessons—Western Power MllMallesons SthStephen Jaques Compliance Online What are compliance systems? Ensure nobody breaks the law Understanding and awareness – mitigate risk Challenge - reaching those who create & manage risks users often not legally literate needs to reach users in very remote locations with limited bandwidth needs to span multiple jurisdictions Information must be accurate and timely Early identification of compliance issues leads to legal work for the firm Compliance Online Extranet web application for geographic reach & ease of deployment Platform for creating branded products for our clients Easy for non-lawyer (& lawyers ) to fin d & und erst and relevant obligations Uses faceted search facets are determined by the content Easy for legal staff to maintain Content drafting is easy

Legal staff draft content in Word Publish button converts content to HTML ‘Mincer’ dices content into a database Web interface lets users explore the data using ftdfaceted search Content drafting can be concurrent

Teams can specialise in their area of knowledge DtDocuments combine iitnto one prodtduct An example from the energy industry Faceted search in action Faceted search in action Faceted search in action Faceted search in action Faceted search in action Faceted search in action Faceted search in action Detailed compliance view Reporting a compliance concern Compliance Online for Western Power Now deployed to > 3,000 employees General Counsel is “extremely pleasedpleased” General managers are “all very impressed” Interest from other electricity providers Keys to winning

Hosted service on Mallesons’ secure extranet / SQL infrastructure No need to purchase any third party hardware, tools and/or licences Cutting edge solution Web 2.0 and faceted search technologies Developed by multi-disciplinary Mallesons team consisting of lawyers, know how specialists and technology staff (developers and deployment specialists) Bryan Cave--Diversity Supersite Diversity Imperative More and more US corporations are demanding that their outside become more diverse Because it assures better results Because it is the right thing to do Failure can mean loss of business First Steps Diversity Dashboard Individual client extranets focused on diversity Highly graphical Easy to use Very well received Solved part of the problem for clients But what about other law firms? The Solution Solve the whole problems, even if it means helping other firms Set aside competitive instincts Focus on c hangi ing the wor ld for the be tter Focus on solving a business problem with clients