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It’s time to deliver Combating Technology is Posts and tweets 06 cyber attacks 08 the new disruptor 14 are the human 03 real added value on lawyers in legal services face of law

Law firms recovering from fee rate squeezes Lawyers are targeted in cyber attacks Law firms are updating tech systems to Enabling mobile technology and engaging are under increasing pressure to add value that cost millions and ruin reputations steal a competitive edge over laggards through social media are essential

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It’s time to deliver real added value

Law firms recovering from fee rate squeezes of the Great Recession are under increasing pressure to add value to their clients’ business

OVERVIEW The survey, conducted by consultan- Others, to be fair, have implemented So far so easy. While producing client Essentially, the concept is this: histor- JONATHAN AMES cy Altman Weil, focused on the US legal practical measures. The “easy wins” briefings and seminars eats up resources ically lawyers have been reluctant to de- market, but the mood music from Amer- have been enhanced and direct com- in terms of opportunity costs – any time off scribe or even acknowledge that much lobal corporate law firms have ica is bound to waft across the Atlantic munication, such as regular client the billable hour clock in the historic law of what they do involves a process. Not had so many wake-up calls in the soon if it hasn’t done so already. e-mail briefing notes in specific firm business model is deemed as lost cash everything lawyers turn their hands to years since the recent recession Hard figures about expenditure and areas of law providing nuts-and-bolts – those activities are ultimately relatively involves intellectual magic and inspira- Gwrought its havoc that senior moves towards pushing commoditised analysis of recent judgments, and legis- easy to offer. More difficult is the next step tional genius. partners must be feeling starved of sleep. legal work down the in-house depart- lative and regulatory changes are a wel- up the value ladder – secondments. Cli- Deal transactions provide a case in The latest alarm will not have helped. ment food chain are sobering enough. come addition. ents are keen to see law firms demonstrate point. There are many elements of the Some 40 per cent of in-house legal de- But perhaps the most striking note in commitment to their business by embed- process that when analysed can be partments at multinational corporations that mood music emanates from a broad- ding lawyers in their legal departments. pushed either to outsourced providers of confirm they are reducing their budg- er concept of the “value proposition”. That can be a big ask. Seconding train- commoditised services or to an in-house ets for external legal advice. Just when The researchers found a striking per- Clients are keen to see ee to a client for one of their team of paralegals. And as sacrilegious as management committees at the inter- ception among leading in-house law- six-month seats is all well and good, but litigation lawyers will maintain this sug- national law firm elite thought they may yers that corporate clients are piling law firms demonstrate trainees, by dint of their inexperience, gestion is, even elements of contentious have come through the worst of fee rate pressure on their law firms in general. commitment to their can be more of a burden than a blessing. claims can be broken down into predicta- squeezes, rising demand for alternative Some 35 per cent took the view that business by embedding Clients want junior associate secon- ble patterns and processes. billing models and an incessant instance business was imposing strong or “in- lawyers in their dees at least, preferably senior associates The zeitgeist phrase is “process maps” on “added value”, it seems that general tense” pressure on external law firms to and ideally actual partners. That sort of – schematics that illustrate in clear lan- counsel remain unsatisfied. add value to their services in addition to legal departments demand presents significant resource guage the scoping of a project or deal, the According to research, of those general slashing costs. and economic “challenges” for law firms. number of people and level of seniority counsel reining in their spending on law That is a difficult conundrum to solve. Those that have actually embedded a required, the risks involved, and how the firm advice, 75 per cent said they were Many law firms have talked a good game Combined with those e-briefings have top-level partner in a client’s legal de- matter should be priced. The core ele- committed to moving the workload to their of getting closer to their clients to under- been regular programmes of face-to- partment for anything more than a fort- ments in arriving at the map are the raw own departments. But any private practice stand not just the pure black-letter law face seminars for clients in which whole night or so are rare birds indeed. data, and the technology to harvest and commercial lawyers banking on a move in- issues they face, but the commercial and teams of private practice lawyers offer But perhaps the nirvana of law firm add- interpret it. house if the work starts to evaporate at their competitive environment in which they legal update presentations and discus- ed-value to in-house legal departments Law firms that can compile data on law firms should think again. More than a operate. Likewise, many have nominat- sions of varying degrees of practical involves the sort of activity that until those processes, and illustrate how that third of general counsel told the researchers ed titular “client relationship partners”, value and entertainment. only a few years ago would have been the analysis will benefit corporate legal de- that to deal with increasing workloads, they who in many cases carry on talk- preserve of clipboard-toting bof- partments and ultimately their bosses’ were boosting the number of non-qualified ing about commercial impera- fins rather than pinstriped law- bottom lines are the firms where the part- – cheaper – paralegals in their teams. tives, but do little more. yers – data analytics. ners might finally get a good night’s sleep.

RACONTEUR CONTRIBUTORS

Distributed in Publishing Manager Head of Production JONATHAN CATHERINE MICHAEL EDWARD CHARLES RACHEL Alice Leahy Natalia Rosek AMES BAKSI CROSS FENNELL ORTON-JONES ROTHWELL Former editor of Former barrister News editor at The Award-winning Award-winning Editor of the Law Production Editor Digital and Social The Law Society and Law Society Law Society Gazette, specialist writer on journalist, he was Society’s magazine Benjamin Chiou Manager Gazette, he is now Gazette reporter, he specialises in IT business law and editor-at-large of Litigation Funding, Rebecca McCormick Managing Editor a contributor to she is a freelance issues within the the legal industry, LondonlovesBusi- she also edits PI Peter Archer Design The Times and a journalist writing legal sector, and he is a regular ness.com and editor Focus, published Grant Chapman special reports for a broad range has contributed to contributor to of EuroBusiness. by the Association Samuele Motta writer for The Law- of law titles. The Guardian, The The Times. of Personal Injury Kellie Jerrard yer magazine. Independent and Lawyers. The Observer.

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CASE STUDY: AXESS LAW AND WALMART

Its staff of 42, including ten law- yers, have a bright-orange branded Slow burn of the new lights retail presence inside the Walmart stores, operating from 10am to 8pm, seven days a week, offering help with They are the new kids on the block, but so far the so-called alternative business structures, allowing involvement conveyancing, wills, probate, power of attorney and notary services. of non-lawyers, have yet to make their mark They offer a “wills while you wait” service, which takes customers through the whole process in 45 minutes to an hour, and for $99 they leave the store with the sealed NEW BUSINESS MODELS document in hand. CATHERINE BAKSI “Our proposition is to increase While “Tesco law” has not taken access to justice,” says Mr Morris. The Co-operative The off here, the Canadians or at “Statistics showed that 56 per cent Shutterstock round 5 per cent of legal ser- least Ontarians have got what of Canadians do not have a will. We vices are no longer provid- you might call “Walmart law” have seen 25,000 people over the ed by traditional law firms, with a law firm operating inside last 18 months and prepared 13,000 Abut by radical newcomers, some of its supermarkets. wills. It’s making a difference. We are set up as alternative business struc- Axess Law, founded in 2012 by meeting the access to justice man- tures. Introduced by the Legal Services Toronto lawyers Lena Koke and date that we have set ourselves.” Act 2007, they heralded the biggest Mark Morris, seeks to provide Before entering the legal world, shake-up of the profession since the accessible legal services available Mr Morris and Ms Koke were in mid-1980s, when lawyers were allowed Three of the big four at times that suit the customer, retail, helping professionals to set to advertise. accountancy firms, and with clear and transparent up enterprises. “We distilled the KPMG, EY and PwC, An alternative business structure have all been granted fixed pricing. concept of ‘best retail practice’ (ABS) is an entity that, while provid- ABS licences In a tie-up similar to that em- and thought it could be applied to ing regulated reserved legal activities, barked on in England and Wales law,” says Mr Morris. allows non-lawyers to own or invest in by Quality Solicitors and WHSmith, That means opening on Sundays Axess has had a presence inside and beyond 5pm, and having clear law firms for the first time, opening up Alamy what has been a closed profession. stores of retail giant Walmart for pricing. Lawyers are “not hidden,

Supporters hailed the creation of a Shutterstock the last two-and-a-half years. but in plain view, which breaks down brave new world where increased com- Mr Morris says: “We are in ten lo- barriers, encouraging approachabili- petition would provide consumers cations across Toronto and will be in ty and dialogue”, he says. 20 by the end of 2016.” The law firm greater choice and access to legal and So far, the venture seems to be is also seeking to spread its wings a success. “Our profits are healthy related services. outside of the state from January. and strong,” says Mr Morris. Meanwhile critics feared that non-le- gal owners, focused only on profit, would lead to supermarkets peddling cheap, commoditised, off-the-shelf legal products and spawned the pejorative de- scriptor “Tesco law”. The reality, almost four years after the first ABSs came into being, has borne and CWU trade unions, have set up legal Professor Mayson points out that the Its chief executive Eddie Ross says out neither. services arms. Even Nottingham Law larger commercial and City law firms the challenge in developing a consum- After much anticipation following the School, part of Nottingham Trent Uni- “remain uninterested or even hostile” to er legal brand is the “finite number of Act, the Solicitors Regulation Authority Big industry names, including Direct versity, and an un-named HR specialist ABSs, but he predicts this will change as consumers” looking for legal services at (SRA) unveiled the first three business- Line, Admiral, Aegis, Allianz and RSA, have applied for licences. the battle for talent rages. any one time. “Research has shown that es granted ABS licences in April 2012. formerly Royal and Sun Alliance, have But the biggest threat to traditional Jomati’s Mr Williams notes that, after as little as 28 per cent of consumers will Among them was a supermarket, not all formed tie-ups with law firms to pro- law firms comes from the march of the an initial flurry, the ABS surge has been have had a need for legal services within Tesco, but the Co-op or to be technically The Co-operative was the UK’s first major consumer brand to be granted an ABS licence in 2012 vide legal services. accountants. The number of account- a “slower burn than anticipated”. He the last 12 months,” he says. correct, Co-operative Legal Services, set Besides the Co-op, household brands ancy firms licenced as ABSs by the says: “This is partly down to the econ- A two-year tie-up with WHSmith, up in 2006 with big plans for its legal now more than 500 ABSs, licensed by and strategist, gives a rundown of the BT, Saga and the AA have made moves ICAEW hit 100 in the autumn and three omy and partly due to the fact that which saw “legal access points” spring services offering. three principal authorities – the SRA, ABS players. into the market, with mixed results. But of the big four, KPMG, EY and PwC, all some of the earlier ABSs have not cov- up in 150 branches of the stationers, The other two licensees were Oxford- the Council for Licensed Conveyancers About half, he says, are traditional grocery empire Tesco has shown no ap- have licences. ered themselves in glory, which has ended in August 2013 after Quality So- shire high street firm John Welch and (CLC) and the Institute of Chartered law firms that have converted to allow petite to join in. Tony Williams of consultants Jomati caused others to get licitors admitted the Stammers, and Kent sole practitioner Accountants in England and Wales ownership by individuals who are not Professor Mayson says the “sensitiv- says: “They have the resources to get it a bit nervous.” relationship had not Lawbridge Solicitors. Both changed (ICAEW), with the majority under the legally qualified, often relatives of law- ity of their legal elements to broader right – it will be important to watch them.” The retail space has worked for all firms their status so they could appoint SRA’s regulatory umbrella. yer-owners, managers or finance direc- market reputation” can pose challenges ABSs also introduce the possibility of not seen the surge Some of the earlier that had signed up. non-lawyer directors, in the case of Law- The first three ABSs, to a degree, paint- tors, or to take advantage of a full cor- to high street names in sustaining such external investment into law firms. Pri- that was anticipat- Across the Atlantic, bridge, the ’s wife. ed the picture of what was to come. Pro- porate structure. legal ventures. vate equity house Duke Street Capital ed and, with the ex- ABSs have not covered retail giant Walmart Among 10,500 law firms, there are fessor Stephen Mayson, law firm adviser National law firm , invested in Plexus Law, part of the Para- ception of the likes themselves in glory, has entered into a which was among the first to embrace bis Group, while celebrity investor and of Riverview, the which has caused others similar arrangement the concept, now has eight licences former Dragons’ Den star James Caan has “fundamentally new with Toronto-based to get a bit nervous across its business, including Irwin The larger commercial backed a couple of firms through his pri- models” have been Axess Law. Whether CHANGES FIRMS HAVE MADE AS A RESULT OF HAVING AN ABS LICENCE Mitchell LLP, insurance claims han- vate equity house Hamilton Bradshaw. “in the tens”, he adds. this spreads in the UK dling service Coris UK and debt collec- and City law firms In June, Midlands-based Gateley As Irwin Mitchell’s to Walmart-owned 77% tion service Ascent Collections. remain uninterested or became the first UK-listed law firm, Mr Tucker says, the interest of investors Asda remains to be seen. Boosted market profile Irwin Mitchell’s chief executive even hostile to ABSs, but floating shares on the AIM (Alterna- and others outside the legal profession While ABSs have not been the “big Andrew Tucker says the flexibility of- this will change as the tive Investment Market). But one of the has been “more muted than it might bang” that some predicted, SRA chief 50% 83% fered by the structure was the main biggest hitters is Australian-headquar- have been” due to the recession, which executive Paul Philip is positive. He be- Employed attraction, allowing the firm to give battle for talent rages tered Slater & Gordon, which in 2007 has meant ABSs have “not developed to lieves that most new firms will look to set Aided non-lawyers in 88% succession ownership status to non-lawyers and to became the first law firm in the world the point where they might otherwise”. up as ABSs as solicitors move to become management Improved planning tax efficiency set up limited companies where the pri- to go public, listing on the Australian Developing a large consumer legal business people first and lawyers second. mary focus was not legal services within Stock Exchange. After scooping up a brand, says Mr Williams, takes deep “If you’re starting a legal business today, 46% 96% the group. The 2013 scandal when the Co-oper- number of UK practices, including top- pockets. Slater & Gordon has tried to es- why would you not adopt an alternative Promoted new non- Offered Then there are investments or ac- ative Bank narrowly avoided collapse 100 firm Russell Jones & Walker, it has tablish itself as such, with some success. business structure?” he asks. lawyer/s in management multi-disciplinary quisitions by related businesses, after uncovering a £1.5-billion capital become one of the UK’s largest consum- According to its own internally commis- Even Lord Chancellor Michael Gove is services to clients such as insurance companies, shortfall, followed by its former chair- er law firms. sioned research, 24 per cent of people in on board, backing moves for legislative who enthusiastically jumped man Paul Flowers making unfortunate Barristers are slowly getting in on the the UK know of it. change to make it easier to approve and 42% on to the ABS bandwagon after headlines over his possession of illegal action too. A small number have set up Marketing network Quality Solicitors, regulate them. So watch this space – the 100% the practice of law firms paying drugs, doubtless took the Co-op’s focus SRA-regulated ABSs and their own reg- founded in 2008, has attempted to do ABS boom could be yet to come. Expanded Entered the legal referral fees in return for cases off its legal services. ulator, the , has the same thing, without the need for its range services market of legal was outlawed by the Legal Aid, Those seeking to reap the benefits of this year applied to the uber-regulator, members to become ABSs. The group Share this article on social media services Sentencing and Punishment of ABS status are wide-ranging. Doctors’ the , to become a has 100 partner firms operating from via raconteur.net Source: Solicitors Regulation Authority 2014 Offenders Act 2012. union, the BMA, and together the GMB licenser of advocacy-focused ABSs. 200 different locations across the UK. 06 | LEGAL INNOVATION raconteur.net 26 / 11 / 2015 | RACONTEUR RACONTEUR | 26 / 11 / 2015 raconteur.net LEGAL INNOVATION | 07

Combating the cyber thi eves who hack lawyers

Law firms are being targeted by cyber criminals in attacks which can cost millions and ruin reputations as client confidentiality is breached

CYBER SECURITY TOP CONCERNS ABOUT A CYBER ATTACK CATHERINE BAKSI Survey of 370 senior business people, of whom almost half worked in the legal profession

igh-profile hacking attacks Loss of client data 27% on telephone and broad- Reputational damage band provider TalkTalk and 19% H adultery website Ashley Theft of commercially sensitive data 17% Madison have put cyber security firmly in the public eye. And from hacktivists Impact on customers 14% to state-sponsored industrial spies, law Service interruption firms are in the front line of the grow- 8% ing threat. Financial loss 8% Over the last year, 62 per cent of law firms reported they had suffered from a Theft of intellectual property 7% security incident, up from 45 per cent in Source: Legal Week 2014, according to the latest figures from accountants PwC. Steve Wilmott, director of intel- ligence and investigations at the E-mail is also the most common way they think they are connecting to their Solicitors Regulation Authority (SRA), in which employees cause data breach- hotel’s wi-fi. reveals cyber criminals have caused sub- es; for example, through inadvertently The simple telephone also poses risk, stantial losses to 50 law firms this year, sending a message to the incorrect re- with so-called vishing attacks, when ranging from £50,000 to £2 million, and cipient. Basic security and cyber hy- fraudsters obtain sensitive information a further 20 firms had fallen victim to giene can go a long way to mitigate these over the telephone. One firm, Mr Bond e-mail redirection scams, involving very risks, says Dr McVicar. Gunning recounts, said it had had 12 substantial amounts of money. Govern- Andrew Taylor, technical director of vishing attempts in the past month. “It ment figures estimate that cyber crime Converge Technology Specialists, says happens on a Friday afternoon when costs £27 billion a year. law firms should use a system that in- people are in a rush and others, who Law firms are honey pots, targeted due cludes encryption, scans content and might be able to verify information, are to the amount of sensitive client data detects security issues, as well as the not there,” he notes. they hold, says Richard Cumbley, global standard anti-spam filtering services. So, how can firms minimise their expo- head of ’ TMT (telecom, media “Staff need to be trained and made aware sure to risk and satisfy clients their data and technology) and IP practice. of potential threats, including bogus is in safe hands? Heyrick Bond Gunning, chief executive e-mails and suspicious requests for in- There is no silver bullet that guarantees of Salamanca Risk Management, says formation,” he says. 100 per cent defence, says Dr McVicar. they are seen as holders of secrets. The And firms should have a policy of “The big challenge for law firms is how to cost of cyber security breaches can be making clients aware of possible fraud- maintain an effective defensive posture, high, both financially and reputationally. ulent e-mails and encourage them to which can evolve with time to match an ev- Mr Bond Gunning warns that it is only check the return e-mail address, and er-evolving threat,” he says. “They need to a matter of time before a law firm suffers never respond to e-mails asking for pay- do this cost effectively so they remain cost a TalkTalk-scale breach. clients are entitled to ask how we handle quiet as they can about it. I suspect that statement through sabotaging its website ment arrangements to be changed. In effective in the marketplace while main- it and keep it secure,” says Mr Cumbley. many clients simply assume their private or disabling its systems to cause the firm addition, there are the basics of ensuring taining customer confidence and trust.” “We expect to be asked by clients and we matters are held confidentially,” he adds. reputational harm and encourage it to regular password changes and using a Firms have to make a risk-based deci- are regularly asked. The threats come from a frighten- drop the client. reputable personal e-mail service. sion, understanding the level of risk and Law firms are honey “Clients are increasingly doing audit in- ing array of sources. There are cyber Industrial spies, sponsored by national putting in place a mitigation strategy pots, targeted due to spections of suppliers and using IT secu- criminals, like normal villains, but states, are also a reality, not just some- that reduces this to an acceptable level, rity as part of the audit process. We need who use technology for their nefari- thing out of cold war novels. There are he advises. the amount of sensitive to demonstrate we have appropriate IT ous purposes, usually theft or, as with outfits, says Mr Bond Gunning, with The big challenge for This means identifying the information client data they hold security in place and can show what we the Ashley Madison and TalkTalk inci- armies of workers who do nothing but that matters most – typically e-mail and law firms is to maintain are doing in practice.” dents, blackmail. hack blue-chip companies. document management systems – and Mr Robertson notes he has not seen Then there are journalists, who seek However, one of the biggest risks to an effective defensive putting in place a mitigation strategy The greater sophistication and tac- evidence of clients losing confidence in to target firms through their employees IT security is internal and comes from posture to match an that prevents the attacks you can, detects tics of hackers, and increasing scale of their lawyers keeping their information to get stories on clients, and hacktivists, firms’ own employees, either maliciously ever-evolving threat quickly attacks you can’t and respond ef- the risk, has pushed the issue higher confidential. “But then, if any firm has political or ideological activists opposed or unintentionally, he says. fectively to minimise the effect of a breach up the agenda. IT security is no longer been hacked, they are going to keep as to a firm’s client, who seek to make a E-mail is used by everyone and its secu- in the event the attack is successful. a matter that can be left to a couple of rity, warns the SRA, must be taken more He says law firms should do the basics junior techies. The risk posed, says Scott seriously as it is expected to become a Mr Bond Gunning of Salamanca Risk – use threat intelligence to understand McVicar, general manager of commercial NUMBER OF CYBER THREATS bigger issue of focus in 2016. Management says to prevent accidental the changing nature of cyber risk, devel- solutions at BAE Systems in Europe, the CURRENTLY AFFECTING COMPANIES Its ubiquity already makes it a common e-mail breaches, a two-minute delay can op and maintain cyber security aware- Middle East and Africa, is now being ad- means to stage an attack. According be put on e-mails before they are sent. “It ness of staff, regularly patch IT vulner- dressed at partner level and is a key busi- Survey of 370 senior business to the latest Data Breach Investigation can save a whole lot of drama,” he says, abilities, use penetration testing to test people, of whom almost half ness-level decision. worked in the legal profession Report, 20 per cent of breaches originate warning that if you make e-mail security security and monitor the security of Richard Hodkinson, chief technology 39% from phishing attacks – often digital con too burdensome, staff may bypass it and their IT networks. officer at Manchester-headquartered tricks pretending to be genuine – and use personal accounts, exposing the firm All this should be backed up with an in- Increasing DWF, says information security is in 4% more than two thirds of cyber espionage to risk. cident response and business continuity every project plan. Don’t know incidents have featured phishing. “The proliferation of devices and their plan to minimise the impact should the “Woe betide any firm that does not Unchanged These are targeted scams originated ability to be mass-storage devices has worst happen. take information security seriously,” through e-mails containing attachments made management of risk more chal- As Mr Bond Gunning concludes: “Firms Decreasing adds Rhory Robertson, partner and or links to websites infected with malware lenging,” says DWF’s Mr Hodkinson. spend time on prevention, but often head of the cyber investigation unit at – malicious software that disrupts a firm’s “Multiple devices open up new avenues don’t have a plan for what to do when the Collyer Bristow. 22% computer operations or servers – giving for the hacker to burrow deep into cli- crisis comes. In many cases they can get Clients, both individuals and corpo- 36% hackers access to sensitive information. ents’ confidential information,” adds Mr away with it, if they have a good plan in rates, are taking a greater interest in Why is this done, asks BAE Systems’ Dr Robertson at Collyer Bristow. place and execute it.” the security of their chosen legal advis- McVicar? Answering his own question, Dark hotel is one scam that travelling er. “Law firms are no different from any he says: “Because it works – nearly 50 per lawyers should be aware of. Mr Bond Share this article on social media other supplier when it comes to cyber cent of users open e-mails and click on Gunning explains that it is similar to via raconteur.net security. We handle information and Source: Legal Week phishing links within the first hour.” phishing, attacking users’ laptops when 08 | LEGAL INNOVATION raconteur.net 26 / 11 / 2015 | RACONTEUR RACONTEUR | 26 / 11 / 2015 raconteur.net LEGAL INNOVATION | 09 Technology will be the new disruptor in legal services

Law firms look set to update their technology systems in a bid to steal a competitive edge over laggards who fail to see changing business needs

TECHNOLOGY The next step is to replace multiple relevant. E-discovery comes up with a TOP 10 INNOVATIONS LAW FIRMS ARE MAKING TOP 10 PRIORITIES FOR MANAGEMENT OF IT IN LAW FIRMS OVER THE NEXT DECADE MICHAEL CROSS channels of electronic communications consistent picture,” he says. – e-mail, voice messages, shared edit- Mr Price stresses that e-discovery does Implemented Planned Balancing security with mobility o far history has been on the side ing of documents, and online chat and not imply replacing lawyers as human 01 68% of the sceptics. For all the hype video – with seamless working. Thus professional skills are still needed to Document Aligning IT solutions to business needs 64% about a revolution in legal services equipped, members of an organisation review the results. However, he says it 02 management since the 2007 Legal Services Act can see at a glance which of their col- does offer the chance for innovators to 01 84% 13% S 03 Supporting a mobile workforce 57% came into force, we have yet to see a tech- leagues is available and instantly ask a change the shape of law firms. For ex- 45.3% Educating stakeholders on changes nology-enabled new entrant disrupt the quick question, glance over a document ample, systems that were once available Resourcing legal work 04 49% sector along the lines of Amazon or Uber. or set up a future formal meeting with- only to global giants are now available to the technology landscape Virtual office 02 through paralegals 74% 8% New entrants such as US giant Legal- out e-mail ping-pong. as online software-as-a-service offerings Educating the business on the 49% Zoom, whose UK chief executive Craig Research to be published next month by on pay-as-you-go subscriptions to much technologies 05 strategic potential of IT Holt describes as “preparing to revo- communications firm Arkadin, a subsidi- smaller, including “virtual”, firms. Matter Increasing focus on risk management lutionise the market”, still seem to be ary of Japanese telecoms giant NTT, sug- Last month, chief technology officer 03 management system 69% 9% 06 and security concerns 49% testing the water before all-out launch. gests the sector is ripe for the revolution. at top-25 law firm DWF Richard Hodkin- Meanwhile “Tesco law” contenders such Nearly two thirds of respondents agreed son revealed it has been in discussions 07 Facilitating business innovation 38% as Co-operative Legal Services have pub- that people in their firms were “more tied about developing artificial intelligence Case licly replaced their early ambitions with to their desk than they should be”. for the last two years. “It is not a passing 04 management system 64% 13% 08 Delivering value-adding applications 35% more modest aspirations of growth. Even Unified communications can enable fad,” he says. Rapid identification and assessment the private equity investment sector innovations such as hot-desking, which 09 29% Department of emerging technologies seems to be having second thoughts fol- after a slow start is beginning to accel- 05 restructuring 42% 16% lowing Duke Street’s experience with its erate in the sector. DAC Beachcroft is 10 Integrating with client systems 28% investment in Parabis Group. the latest to announce agile working Source: International Legal Technology Association (ILTA) 2014 What united these ventures was the as- this year. Document sumption that legal services was a sector More significant, according to Alan 06 automation 42% 29% where the fruits of adopting information Heals, business development manager BIGGEST TECHNOLOGY 38.7% technology were ready to be picked by at NTT Communications, is the poten- IMPACT ON LAW FIRMS BIGGEST TECHNOLOGY ISSUE OR CHALLENGE FACING LAW FIRMS anyone bold enough to grasp them. tial for integrating clients in the system. OVER THE PAST FIVE YEARS Document workflow/ Project However, just because the revolution Even in a world where firms are organ- archive solutions 07 management system 40% 18% 59% has not come from newcomers does not ising more by client teams than profes- mean it is not hap- sional specialities, 48% pening. And aware- this is a novel con- E-discovery system ness is building not cept. According to 08 27% 16% 40% just from the neo- New technology can Arkadin’s research, 33% phytes. According to drive efficiencies, 76 per cent of re- 28.4% Unbundling the current president increase accuracy, assist spondents said their 09 transactional work 27% 20% of the Law Society, firm uses some sort Cloud services 22% 22% 22% 20% Jonathan Smithers: with client retention, of “presence” system replacing PCs “Artificial intelli- and have the potential to enable instant Formal metrics gence is dictating the to reduce overheads and communications 10 programme 20% 17% way that we do the in-house, but only 5 34.1% law. We, as a profes- drive greater profits per cent shared this sion, seem to be play- with clients. Electronic ing catch-up.” In future, Mr Heals signatures Source: Winmark 2015 Massive market changes, from the says, this will not be good enough. Guar- 32.2% Security E-mail Information Risk management/ Change Bring your Cloud-related Lack management management governance compliance management own device security risks of budget decline of hourly billing to the Jackson anteeing access to a paralegal 24 hours TOP 10 HURDLES TO ADOPTING EMERGING civil litigation reforms, aimed at boost- a day might be a key competitive ad- Online TECHNOLOGIES IN LAW FIRMS OVER THE NEXT DECADE Source: ILTA/InsideLegal 2015 ing efficiency and reducing costs, are vantage in winning clients, he says. The security tools Reluctance to change forcing changes in the way that all firms client will see a “mirror image” of the in- 62% work. In response, they are dipping their house system so they will always know operating processes toes into new technologies to generate who is available. Overly cautious approaches efficiencies. But both are capable of un- But is the kind of off-the-cuff instant Source: eFax Corporate 2014 to adopting new technologies 61% The firm already uses big data ana- essential for the legal profession and sceptic has no direct experience or be- derpinning more fundamental changes. communication implied by presence lytics to help insurance clients identi- the discharge of our professional legal cause their own profession is unique. Two technologies in particular could systems really appropriate for the legal Security concerns 57% fy potentially fraudulent claims. The obligations of upholding the rule of “We ought to be suspicious when a be enablers of disruption. world? “The legal sector is highly regu- software maps connections between law and the proper administration professional claims that all professions lated, but so is financial services,” says different entities to identify potentially of justice.” are dispensable other than their own,” TOP 5 PRIORITIES FOR BIGGEST CHANGE EXPECTED OVER THE NEXT Challenges of integrating UNIFIED COMMUNICATIONS Mr Heals. “In a sector where a second is LAW FIRMS IN 2016 DECADE DUE TO LEGAL TECHNOLOGY with existing technologies 52% fraudulent patterns of activity. A com- But while stating that “no algorithm especially when this special pleading is Slowly and behind other sectors, such worth millions, they have obviously seen plex algorithm analyses the documents exists to replace us and the work that based on arguments from hard cases, as technology and management con- the value of instant communications.” Inability to keep pace with associated with each matter and gives we do”, he says lawyers “should, how- they say. Improve the use emerging developments 46% sulting, the legal sector is getting used of technology 94% it a score between one and ten, which ever, continue to use artificial in- Another is “technological mystopia”, to mobile. One sign is that fixed PC ter- 9.8% will indicate how much or little lawyer telligence to improve their work”. the tendency to underestimate the po- ARTIFICIAL INTELLIGENCE Uncertainty over the minals are on the way out. In a survey The first applications are already be- Increased 43% input the case is likely to need. Given New technology can drive efficiencies, tential of tomorrow’s technologies be- Standardise legal process business benefits of the sector due to be published next coming mainstream in technologies business processes 88% 19.3% outsourcing the pressures on sectors such as per- increase accuracy, assist with client cause of the shortcomings of today’s – a month, 38 per cent of respondents said such as e-discovery. Simon Price, man- Virtual offices and remote sonal injury, the use of these systems retention, and have the potential to bad experience with Skype should not employees as the new normal Privacy concerns 36% their firms are already moving away aging director of specialist IT supplier can only spread. reduce overheads and drive greater rule out the use of web-based multime- Increase business from desktops towards laptops for most Recommind, says sifting electronically 50% However, it is possible to be an enthu- profits, he says. dia channels in the future. partnering support Development of their people and 17 per cent said their through documents, e-mails and other cost concerns 34% siast without subscribing to the view In their book the Future of the Pro- In other words, just because the dis- firms are considering such a shift. material can save 95 per cent of “lawyer Reduce transaction that robots will replace lawyers in the fessions, Richard and Daniel Susskind ruptor sceptics have been right up to The point of mobile is not so much to time”. This not only makes litigation 17% % Cost of ownership near or foreseeable future. identify what they say are common now does not mean they will continue processing activity 15.8 33% be able to deal with clients’ urgent in- more accessible, but improves the relia- 35.3% 19.8% Law library concerns As the Law Society’s Mr Smithers biases that inhibit professionals from to be. quiries from the yacht club (useful as bility of work. Paperless offices Cloud-based applications replaced by emphasises: “An artificial intelligence thinking freely about the future. Apart Reduce cost as the new normal as the primary application e-books Time and cost associated that can be), but to change the way firms “If you have seven people looking at 17% system is designed to stimulate human from the strong “status quo bias” there with end-user training 31% Share this article or infographic are organised and especially how they a corpus of documents, they will come thinking, but not creative or independ- is “irrational rejectionism”, the dogmat- on social media via raconteur.net relate to their clients. up with different ideas of what might be Source: PwC 2015 Source: eFax Corporate 2014 Source: ILTA 2014 ent thought. Both of these qualities are ic dismissal of a system with which the 10 | LEGAL INNOVATION raconteur.net 26 / 11 / 2015 | RACONTEUR RACONTEUR | 26 / 11 / 2015 raconteur.net LEGAL INNOVATION | 11

COMMERCIAL FEATURE Getty imagesGetty CHANGES MADE BY GENERAL COUNSELS IN MANAGING REGULATORY RISK GENERAL COUNSEL PERSPECTIVE Strengthened policies and procedures 70% Increased education and training 60% Which of the following best describes your function What are the main drivers for choosing a law firm, in order of preference? What is the biggest risk to your Engaged outside advisers/consultants 41% in the company? 6% Client management business in the next 18 months? 4.5% Speed of response Added internal compliance personnel 36% The conscience of the business: wrongdoing 4.5% Business acumen The barometer of the business: an early-warning system 4% Reputation Subjected vendors and suppliers A stakeholder in business decisions 4% Relationships to monitoring or audit 33% Managing the legal department 3% Price Conducted more internal investigations 30% 1.5% Expertise 30.8% Financial Implemented software tools 28% What should law firms be doing to keep pace with the changing role of general counsel? threats Repurposed internal audit toward 68% Better awareness of clients’ business regulatory matters 21% 57% More added-value services 9% 41% Greater focus on alternative billing Utilised data analytics 21% 40.5% Improve their use of technology 38% Maintain excisting services at lower cost 11% Increased actions against violators 9% 31% Deliver valuable management infomation 21% Offer broader business advisory services 29.8% Compliance 20% Increase in secondments threats Source: Grant Thornton 2015 11% More involvement in recruitment and training 47.6% Which issue are you most concerned about over the next 18 months?

to member state is a huge challenge. to one particular headache. “The forthcom- 59.5% Regulation and compliance 34.5% Creating value for the company Strategic Factor in differing rules around pricing ing Europe-wide overhaul of the data pro- 21.8% 32.4% 31% Data protection/security/cyber issues threats and reimbursement, and the complexi- tection regime, which is expected to come 28% Managing legal cost ty increases significantly.” into force in 2017, will introduce a universal 25% Anti-bribery and corruption compliance This view of a GC as a strategic partner obligation to report all data breaches ‘with- 24% Issues in emerging markets Risk management is echoed at Unilever. Glenn Quadros is out undue delay’,” he points out. 23% 21% Reorganising the legal department 18.3% Operational Dr Gonen says the idea of the GC as a GC for Unilever’s enterprise technology The result: “With general counsel 20% Reputational management threats strategic adviser is spot on. “We serve solutions division and says GCs ought often being ultimately responsible for 20% Governance Now lawyers as the business partners to our business to love their new role as consultants for data protection issues, the thought 6.5% Health and safety issues functions and strive to be substantial other departments as it finally means of having to notify every data breach value creators to the business,” she says. legal can prove its worth. each time an employee or contractor The trickiest aspect of her job is adju- “Legal has always been like the child mislays a laptop or memory stick, or Source: Global Legal Post: The Law Department of the Future and General Counsel Excellence Report 2015 are strategic dicating the balance between commer- with high potential – very bright and sends something to the wrong address, cial and medical imperatives. “Some capable – but has never reached that e-mail or fax will be causing gener- see a conflict in the role of a pharma potential because al counsels all over company,” she says. “On the one hand, of how costly the Europe to wake up ensuring litigation readiness. This may in- it could go offshore. It’s a learning process advisers shareholder value has to be generated service is,” says Mr in a sweat in the clude active programmes for information for everyone,” he says. and on the other, the ultimate ‘consum- Quadros. “There Understand the business middle of the night,” GENERAL COUNSEL ROLE: governance, which is all about knowing Picking the right partner is crucial and has also not been a your data, controlling your data and ap- the choice should not be dictated by price er’ is the sick patient. So the balance is strategy and problems, says Mr Mancier. skewed in pharma with a simple desire way to measure and A requirement al- propriately disposing of it. GCs are also alone. Mr Gogel says in some cases the In-house general counsels are facing diverse to help sick people. demonstrate value and how legal can best ready exists for law NO MORE SINECURES seeking alternatives to the traditional lit- quest for lower costs has already gone too “My role is to ensure these goals are and performance support that firms to report mis- igation process, such far. “There’s probably challenges as demands on their expertise rise, met within the boundaries of the law as which is a problem demeanours. Natasha as through arbitration too big a focus on unit it exists in any jurisdiction, at any par- because most or- Chell, head of compli- or otherwise settling cost rather than value When we take with increased regulation in the wake of the ticular time, and also to use the law to fa- ganisations are very ance at Laura Devine A different breed of general counsel is rising to new challenges – with cases out of court, for money,” he says. cilitate market access by making it prof- metric driven. This is changing.” Solicitors, finds the Solicitors Regulation where it makes sense on work in support “Outcomes do matter financial crash, along with the need to create value itable to the business and a win-win.” He says to maximise performance Authority (SRA) guidance a constant a little help from legal process outsourcing providers, according to to do so. of litigation or law and client satisfaction Each decision, for example patent litiga- GCs need to gather insight from a wide demand. “The ‘grey areas’ can keep you In this new world, department operations, is highest with this type tion, must be looked at afresh in each ter- spectrum of sources: “Understand the up at night, especially as there is a require- Integreon’s Bob Gogel smarter executive of focus.” ritory. “At present and for the foreseeable business strategy and problems, and ment to report any material breaches of boards are taking a clients know we Integreon describes future, patent litigations are conducted in how legal can best support that – to not the regulations to the SRA,” she says. GENERAL COUNSEL more fundamental will deliver itself as a legal process Once upon a time the management each European market rather than cen- do this alone, but leverage both the in- The trick is to stay calm. “Maintain- look at how they run outsourcer. “We don’t CHARLES ORTON-JONES team would worry about how to com- trally. This creates huge challenges. sights of your panel law firms as well as ing a common-sense approach and their legal teams. One practise law. When we mercialise IP. Now the GC is a key part “The business considers Europe the various stakeholders themselves.” balancing risk management so that it example is insurance giant AIG, which has take on work in support of litigation or law he role of general counsel of IP strategy, making vital commercial one market. Ensuring pan-EU market The role of GC is getting tougher because does not stifle the business is impor- spun off its legal department as a separate department operations, clients know we (GC) has evolved sharply since decisions about how the law can be access where legal precedents, judi- lawyers themselves are subject to increas- tant,” says Ms Chell. profit centre to sell its expertise in buying will deliver,” says Mr Gogel. the financial crash in 2008. used as a weapon of commerce. cial attitudes, procedures and out- ing regulation. Christian Mancier, data pro- With so many duties, the only way The mood for governments An example of a GC as a strategic busi- comes may differ from member state tection officer at Gorvins Solicitors points forward is for GCs to make the most legal services to its clients. Law firms themselves are going down T Another is global software leader Micro- a similar road, focusing their in-house re- to regulate and invigilate has raised ness partner is Galit Gonen, legal coun- of their team and partners. Teva’s Dr the workload. In many firms the legal sel in Europe for Teva Pharmaceutical Gonen has a good personal tip. She Bob Gogel soft, which has embraced outsourcing in sources on providing higher-value work. TOP FACTORS CONTRIBUTING TO AN INCREASE OF LEGAL/COMPLIANCE Chief executive partnership with Integreon. Non-core tasks, such as document review, budget hasn’t risen fast enough to com- Industries, the world’s largest generic WORK FOR GENERAL COUNSEL says: “In order to get people to work pensate, ramping up the pressure. At drug maker. She comes with a big repu- with me, I may need to abandon my lit- Mr Gogel stresses that outsourcing are increasingly being outsourced to pro- the same time there has been a long list tation, having scooped the International igato’s persona. I need to let go of it to today means a lot more than shipping viders such as Integreon. of new challenges. Law Office European and global counsel relate to people when there are differ- A decade ago, life as a blue-chip general ing, new legal requirements, especially in departments to create value, maximise back-office tasks to lower-cost locations. There will be increasing use of technolo- 24.4% counsel was a bit of a sinecure, once you compliance and regulation. services and keep a lid on costs. The place to start is to look at what he calls gy, from contract management systems to New technology means straightfor- award in 2013, the Legal 500 award for IP % ences of opinion or approach. ward things like storing data is sudden- individual of the year in 2014 and Editor’s 85.4% 47.2% 9.8 “It is a lot about applying soft skills had climbed the ladder in the first place, of “The executive team and board are look- The obvious response is to pass the “routine, high-value, rules-based” work, matter management and project manage- ly a headache. In the old days the data Choice for the European woman in busi- optimally so the extraordinary talent course. A competent GC was well reward- ing to the GC to play a more proactive role cost-cutting on to their panel of law firms. For for example managing the consistency in ment all the way up eventually to artificial was stored on servers onsite. Now the ness law award in the IP category in 2015. that I have in the team is leveraged and ed, but was spared the killing working hours in helping them shape company strategy, most GCs, the world of cosy country-club re- non-disclosure agreements. intelligence. “What we’ll see is a whole gen- data could be stored anywhere in the When you look at her job, it’s easy to my team members can realise their full of private practice. Privy to the business’s and achieve corporate objectives while lationships, behind which firms were virtually While the market for offshore services eration of lawyers who will be much more world. Privacy laws means the location see why she gets the applause. Teva is potential to do amazing things stand- (and perhaps the chief executive’s) most managing risk.” dictating terms to their clients, is long gone. continues to grow, this may not be the best tech savvy,” he says. But many practical is an acute legal concern. Plus, there are not only a giant in generic drugs, it also ing beside me.” sensitive secrets, they were almost immune Meanwhile, the GC’s role is expanding However, the much talked-about death of fit for everyone. There are strong parallel solutions to the GC’s challenges are out cyber attacks, data protection issues has a huge specialist drug section, and Increased volume and Expansion into Increased level Increased level of from dismissal and able to meet any threat from legal adviser to include being a busi- hourly billing is not enough. For a start, says trends for near-shore, onshore and even there already and many of these can be and new e-disclosure issues to master. both divisions are subject to differing complexity of regulatory emerging markets of litigation whistleblower activity and legal obligations Share this article on social media to their department’s budget with unchal- ness adviser. The job title has, in many cases, Mr Gogel, in the corporate world, this debate on-site outsourcing too. “Ultimately it is embraced in incremental steps. And there’s the small matter of intellec- regulation and commercial impera- Source: Deloitte via raconteur.net lengeable warnings of dire consequences. also changed from GC to chief legal officer, was always a distraction. about having the right resources in the Is there a future for the GC role itself? Mr tual property (IP). tives. It’s a difficult beat. If that slight caricature was ever realit y, it on par with the chief financial officer. As an “ I ’ve never seen a legal bill that doesn’t get right locations doing all the right things,” Gogel has no doubt about that and believes certainly is not now, says Bob Gogel, chief example, Mr Gogel cites the role of his own negotiated anyway,” he says. In reality, the says Mr Gogel. the role will gain in importance. “Theoreti- executive at legal outsourcing specialist GC, Mike Zuercher, “my right-hand guy” on hourly rate is generally a convenient way of Although in principle a decision to out- cally, you could outsource everything, but Integreon. “Over the past decade and es- Integreon’s senior management team. drawing up an estimate. “If the client thinks source is really no different than the pro- you will still need someone on staff to be the TOP 5 COST-CUTTING pecially the last three to four years, GCs According to Global Legal Post in this they got great value, they’ll pay. If they don’t cess of retaining a law firm, he says the orchestra conductor,” he says. Received price Used alternative Improved Shifted law firm Shifted law firm have come under incredible and increasing year’s General Counsel Excellence Report think that, they’ll negotiate further.” cultural change involved may take some Successful businesses will still need a GC . reductions from or fixed fee efficiency of work to in-house work to lower MEASURES TAKEN BY pressure to manage legal costs in a way like and Law Department Survey, the two GCs everywhere are looking for better time. “Many organisations take two or But don’t expect the role to be a sinecure. outside counsel arrangements internal procedures lawyer staff priced firms LEGAL DEPARTMENTS they never had to before,” he says. “This headline concerns for GCs are threats approaches to how they manage disputes, three years to get used to outsourcing,

Source: Altman Weil squeeze on budgets coincides with grow- from regulators, and how best to manage such as having a more efficient means of then more time to get used to the idea that www.integreon.com 12 | LEGAL INNOVATION raconteur.net 26 / 11 / 2015 | RACONTEUR RACONTEUR | 26 / 11 / 2015 raconteur.net LEGAL INNOVATION | 13

Getty imagesGetty value tucked away in that mass and KEY TRENDS IN LITIGATION AND E-DISCLOSURE IN THE COMING YEARS also the business risks that might be lurking within. Technology 92% In situations where you know some- 81% thing is not quite right, but you do not know exactly what you are looking for, 58% the latest clustering technology, which can solve 54% can be based on concepts rather than keywords, can provide the solution. 29% “Say you have bought a company that op- erates in Russia, which is a high-risk area its own in terms of the Bribery Act,” says Mr Dale. “You have 15 salesmen out there and it’s a SIMPLIFY good idea to find out what they are up to. Increased use Increased cost Enterprises/ Move to outsource Looking for a third Or say secrets are leaking out of your or- of technology of e-disclosure corporates moving e-disclosure party to review and ganisation or you start to think that some- problem assisted review activities e-disclosure activities improve e-disclosure activities in-house activities thing doesn’t smell right in a branch office. DISCOVERY This is where clustering can help.” Source: Epiq Systems Clustering is a way of grouping docu- Predictive coding technology can slash ments together according to their con- WITH DATA EXPLODING, CHALLENGES LAW FIRMS FACE WITH THE GROWING VOLUME OF DATA tent, to create a high-level visual map workloads and costs through computerised of brightly coloured clusters. These can CONTENT SOURCES MULTIPLYING % % then be dismissed or, if something looks 90 54 out of place, investigated further until sifting of the ever-increasing number of Growing number of devices Knowing what device the AND A REGULATORY REVOLUTION you reach document level. information can be stored on information is stored on documents and other information sources Mr Dale gives the concept of “Labrador” EVOLVING, YOU NEED TOOLS TO as an example. The technology would 71% 38% separate data into clusters about a place SIMPLIFY YOUR EDISCOVERY Fear of missing data Reducing the amount of in the north east of the United States, a information requiring review PROCESSES WHILST PROVIDING E-DISCLOSURE dog and the Spanish for worker. If it finds much useless information we are storing? 60% in a defensible manner a lot of things about dogs, it will then SPEED, ACCURACY AND RACHEL ROTHWELL But for corporates faced with a law suit, it group these again, say into dog, canine, Amount of time it takes to suddenly becomes a problem. Within that Labrador, poodle and so forth. locate data for litigation PREDICTABILITY. e live in the era of infor- mushrooming expanse of data, there will Source: Epiq Systems “That’s an example of it telling you it mation overload. Every be files that must be handed over to the has found a lot of documents that are day, we generate more opposing party through the legal process egy, for example if a witness claimed similar documents, derived from the and more data, much of it of disclosure and finding these is an in- not to have been at a certain place, but PREVALENCE OF SOCIAL MEDIA AND BRINGING YOUR OWN DEVICE (BYOD) Litigation may have been the driver countless copies of the same thing. At the text within them and from the meta- Streamline the entire life-cycle with W IN LITIGATION VeritasTM meaningless. With the click of a button, creasingly daunting task. a photo downloaded on to Facebook via behind this new technology, but there is very least, you could use it to identify all data, not from words you have fed it,” eDiscovery Platform, powered you can e-mail 50 people with a 50-meg- The problem is often compounded in their smartphone suggests otherwise. NUMBER OF LEGAL CASES INVOLVING NUMBER OF LEGAL CASES INVOLVING growing recognition it could be a handy the duplicates, storing the master docu- he explains. by Clearwell. abyte attachment. We rack up data on the corporate world by regulatory rules, “It might be unlikely to turn the case, SOCIAL MEDIA LAW FIRMS HAVE BYOD LAW FIRMS HAVE DEALT WITH tool in many other fields; basically any ment in a clearly labelled way, and get rid The more technology forms a part of our PCs, laptops, smartphones and tab- which do not allow many files to be delet- but it could be useful, for example in un- DEALT WITH OVER THE PAST YEAR OVER THE PAST YEAR task that involves of all the rest. our work and personal lives, the faster lets. According to IBM, we create 2.5 ed, with investment firms, for example, dermining the credibility of a witness,” pulling informa- “One of the big the data mass will expand and multi- Ingest 400 different data types quintillion bytes of data every day – and obliged to retain large amounts of data, he says. tion from very large by-products of lit- ply; at least until we learn to store it in including audio 19.1% 49.4% 26.1% 42.3% 90 per cent of the data in the world was including mobile phone calls made by Technology created the problem of suf- amounts of data. Litigation may have igation is that you a more organised way and delete dupli- ® actually created in the last two years. traders. Indeed, these days much of the focating data, but it also holds the solu- 3 or more 0 3 or more 0 Mr Maas explains: always end up with a cated or obsolete files. But also growing Source diversity including Microsoft been the driver behind TM But we rarely bother to data stored is not in traditional docu- tion. An e-disclosure technique known as “The tech could be this new technology, spanking clean filing is the ability of e-disclosure technology, Office 365 , Sharepoint and Skype delete any of it. ment form at all, but is video, audio and predictive coding can reduce the disclo- used in a number of system with all your which began in the litigation context, but In our day-to-day text, and increasingly sure pile from what theatres of war; for but there is growing data in order.” is about to spread its wings far wider to Automated Workflow and intuitive analytics lives, this does not really on social media. could be millions of example, investiga- recognition it could be In the mergers and adapt to handle those volumes, boosted to reduce manual effort and remove matter. Who cares how In terms of disclo- files down to a man- tions by regulatory a handy tool in many acquisitions field, if by ever-increasing processing power. human error sure, the data being In terms of disclosure, ageable number. authorities. It could you have purchased As Mr Neicho concludes: “This problem generated on Face- As Jonathan Maas, help in internal in- other fields a company, you will is not going to go away, so we need to deal the data being Accelerate review with machine book, Twitter, In- senior director at vestigations – say, for normally acquire a with it.” stagram, LinkedIn generated on Facebook, e-disclosure consul- insider dealing or IT large amount of its assisted eDiscovery and others is the next Twitter, Instagram, tancy Huron Legal, theft. Or it could simply be used for in- data, often uncategorised and unsort- Share this article on social media Predictable Results – Predictable Costs big challenge. LinkedIn and others is explains, predictive formation governance generally, for ex- ed. E-disclosure technology can be de- via raconteur.net Chris Dale, founder coding technology is 31.5% 31.6% ample where an organisation may have ployed to find any intellectual property the next big challenge of the e-Disclosure like an “eager puppy”. 1-2 1-2 End-to-End Intelligent eDiscovery. Information Project, It first completes a Source: Kroll Ontrack 2014 says: “Lawyers have series of “training just got their heads round the fact that runs” on smallish samples of documents THE RIGHT TO BE FORGOTTEN e-mail and Word files are discoverable, – not more than 2,000 – in which a lawyer reviewed. Contrary to misconception, pre- to keep their costs proportionate, which but they have not yet applied their minds will tell it what is important and what dictive coding does not mean handing any means examining every document by The final version of the rules look set provide requested information. to all the non-traditional data sources. to discard. When it is ready, documents to a litigation opponent with- hand is simply not an option now that to be agreed in December, following “You need to develop systems to Even if they are thinking about social then throws it a bone and off the puppy out a lawyer having eyes on them first. the volume of data has been supersized. many years of consultation, and will remove personally identifiable infor- Visit info.veritas.com/edp to find out how media, they are only looking at their duty bounces to perform the same trick across For the lawyers, it does involve a leap of As Vince Neicho, litigation support become law in two years’ time. mation, and streamline your retention to disclose it, but are not seeing its poten- the entire data set. faith because the initial sifting has been manager at City law firm Allen & Overy, It will apply not just to EU-based and classification policies. A company The Metropolitan Police Service drastically reduced tial value as evidence.” The end result is a manageable parcel done by computer, rather than the tradi- puts it: “Using technology means that companies, but any business – could be inundated with requests forensic investigation time, increased efficiency According to Mr Dale, this type of data of files, neatly tied with a metaphorical tional team of exhausted fee-earners in you will miss documents, but then so including US corporates – that under the proposed ruling, and if and reduced cost. could be important to the litigation strat- bow and presented to the lawyers to be crumpled suits. But lawyers have a duty will a fatigued lawyer sitting in a room.” “touches” the data of an EU citizen. you’re dealing with legacy archives Focus is very much on the data and fragmented locations, the IT Plus download a guide to Best Practices for privacy rights of the citizen. But some department could easily be buried.” Streamlining Digital Investigations. are concerned about the potential im- This is where e-disclosure tech- pact on business, particularly relating nology, with its ability to search SUBSCRIBE TO Next month sees the deadline for Eu- to the so-called “right to be forgotten” through a galaxy of data at warp ropean Union member states to reach contained in article 17 of the rules, speed, could make all the difference. a possible agreement which could allowing EU individuals to demand the Mr Moseley adds: “E-discovery Contact [email protected] impact businesses across Europe – the erasure of their personal data. tools will become a critical business RACONTEUR’S General Data Protection Regulation. David Moseley from Veritas explains: competitive edge. It is about having The new regulation is a much “The regulation needed to happen. It an automated workflow. If you have needed update, given that Europe will harmonise how we work together, 100 people asking for the same MONTHLY ROUNDUP is currently operating under a set but organisations need to improve thing, why have a manual process? of rules created in 1995 when there their information management, gov- “IT departments are being expected The best from our Special Reports for The Times and The Sunday Times were only around 23,500 websites ernance and discovery of data or their to do more with less. Unless you bring on the internet, and social media and IT department will become the bottle- in the e-tools, unfortunately you will www.raconteur.net/signup cloud computing did not even exist. neck if still using manual processes to suffer the consequences.”

VERITAS.COM Business Culture Finance Healthcare Lifestyle Sustainability Technology 14 | LEGAL INNOVATION raconteur.net 26 / 11 / 2015 | RACONTEUR

Posts and tweets are human face of law

Enabling mobile technology and engaging through social media are essential for a successful, modern law firm

TRANSFORMATION of the firm to ensure clear and consist- volved in marketing at a personal level. EDWARD FENNELL ent messages about the firm’s brand and The goals though, observes Caroline its priorities.” Matthews of Bircham Dyson Bell, which successful legal brand is like That being the case, according to Clare boasted the most knowledge pieces a powerful artisan gin. It fea- Rodway of Kysen PR, law firms should per lawyer in the Passle survey, should tures the right blend of base not see social media as being in anoth- always be the same: “To raise profile, A spirit – the reputation of the er universe, but should integrate it as a impress with expertise, to stand out, to firm as a whole – with stand-out botani- normal part of their marketing panoply. build a relationship so that existing cli- cals – the distinctive flavour provided by “It’s a way of showing your human side ents stay with you and to pave the way individual lawyers. And increasingly the – the equivalent of going to a cocktail for new clients to approach you – and best way to deliver this liquid silver is party,” she says. above all to be interesting.” through the medium of the internet and Training in the use of the social media The key to doing this successfully social media in particular. is absolutely vital, as Julie Gingell of SA is to understand the nature of the As Terry M. Isner of American consul- Law says: “We’ve invested extensively in medium and select the right chan- tancy Jaffe comments: “Some legal mar- the training of our lawyers in how best nel for the target audience. “For keters see social media marketing as a to use social media. Age is not a bar; example, never confuse broad- uniquely consumer-focused concept. I it’s purely a matter of state of mind and cast and social media,” says see social media as the ultimate brand- we’ve now got about 40 per cent of our Abby Winkworth of IBB. “Don’t ing tool, regardless of what sector your lawyers active on social media.” use social media to yell at people. You business falls within or what services and In short, social media enables many need to be crisp, clear, to the point and products you offer.” more people to become actively in- very bite sized.” As a conservative profession the law was cautious in its take-up of e-com- munication to reach clients. But the HOW THE UK’S TOP LAW FIRMS ARE CONNECTING WITH CLIENTS power of the internet is now recognised and according to the latest research by HAVE YOU WON CLIENTS AS A DIRECT IF YES, FROM WHICH PLATFORM(S)? Passle, the top 100 law firms have in- RESULT OF YOUR SOCIAL MEDIA? creased their online content by 77 per LinkedIn 48% cent this year with a predicted posting 6.1% 48% Twitter of almost 47,000 “knowledge” pieces No answer Yes 38% between them. This compares with Corporate website 38% just over 26,000 in 2014. However, the report found: “The legal industry is not No answer 24% A good example is Richard Kemp, the anyone else. Timing is everything.” yet close to demonstrating its true ex- senior partner of technology-based firm So there is a natural progression from Blogs 23% pertise online.” Kemp IT Law, who has become highly stimulating people’s curiosity through a Maybe what some firms are still strug- Not sure 7% adept at vlogging. “Our clients expect as tweet or a vlog through to a face-to-face gling with is how to orchestrate the a matter of course that we will be at the meeting. Family law solicitor Hazel Wright YouTube diverse range of channels given the 6% leading edge in the use of IT,” he says. “So of Hunters, for example, tweets in a per- increasing use of mobile devices, with Facebook 4% we have been early adopters of vlogging. sonal capacity in order to show that she their limitations as well as strengths. 19.4% 26.5% My vlogs last two-and-a-half minutes and has “a hinterland”. “As a family lawyer, Martin Wilson at specialist marketing No Not sure Google+ 3% our goal is always to talk to people just at demonstrating one’s personality is espe- consultancy Indigo102 says: “Embrac- Source: Byfield Consultancy the time when a hot new issue is coming cially important,” she says. Interestingly ing mobile technology is as important over the horizon – and to get there before she has a strong following among non-UK to lawyers and other professional ser- lawyers, notably when commenting on vices as it is to retail and service indus- tries. A mobile device is the first point CASE STUDY: IBB SOLICITORS of call to find almost everything in to- day’s world.” Embracing mobile The significance of this is already ap- sequently one of the challenges it is perfect for that demographic,” it faces is how to speak to such says Ms Winkworth. “It undoubtedly technology is as preciated by lawyers’ major clients, diverse groups with a coherent helps significantly in bringing new points out Helen Bertelli of consultancy important to lawyers voice, but in different styles and clients to us.” Infinite Spada. “If you look at the Fortune over many different subjects. Meanwhile one of the firm’s best and other professional 500, you’ll see that 98 per cent are using The solution is for the firm to performing posts achieved a reach services as it is to retail LinkedIn and almost 80 per cent are choose the right vehicle for each of 24,500 (organic and paid), more and service industries using Twitter. If that’s the way they speak topic and target group. “We find than 400 article click-throughs to their customers, then it follows it’s also promoted posts on topical issues and over 80 likes, comments and the way to communicate with them.” are the most successful in terms of shares, and it is still gaining traffic. Moreover, the benefits are becoming engagement,” says Abby Wink- “Our road traffic specialist wrote a issues such as cross-border custody. Cru- apparent, says Gus Sellitto of Byfield worth (pictured), IBB’s marketing blog about recent legislation on the cially, she does it on a regular basis. “I Consultancy. “In a recent survey con- With offices in Uxbridge and and business development partner. banning of smoking in cars carrying build tweeting time into my weekly sched- ducted by us of 101 of the top 200 UK Chesham, IBB Solicitors has a Hence, unusually for a medi- children,” says Ms Winkworth. “We ule,” she says. She also makes a point of law firms, almost half said they had won broadly based practice ranging um-sized law firm, IBB makes ex- boosted the post to appear in the belonging to the relevant LinkedIn groups. business as a direct result of their social from mid-market corporate clients tensive use of Facebook to support news feeds of people in our target “It’s not enough to be noisy,” says Gavin media activity,” he says. “Some 48 per to high-net-worth individuals, but its criminal defence practice which geography. This stimulated debate, Ingham Brooke of Infinite Spada. “You cent indicated new business was gener- also including charities, the public is largely focused on white collar raised awareness of the topic, the need to be part of a conversation with your ated through LinkedIn and 38 per cent sector, families and people facing crime. “While Facebook would not firm and our expert, and will drive clients and potential clients. Social media, from Twitter.” serious criminal charges. Con- work for other parts of our business eventual revenue.” properly used, enables you to do that.” Tim Maltin of Maltin PR argues: “The overall direction of a firm’s marketing Share this article on social media drive, of which e-communication is a via raconteur.net vital part, has to come from the very top