How the Legal Services Act Will Affect Your Firm, and What You Should Be Doing About It

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LEGAL SERVICES REFORM ISSUE 15 | OCTOBER 2011 Time’s up How the Legal Services Act will affect your firm, and what you should be doing about it. Now.

Interview: Time to reset? Alternative business structures expert and top-100 law firm consultant Paul Harding on what consumer-facing firms have to change to compete

Feature: A brand new start What law firms are doing today to re-engineer themselves as fitter, faster and more competitive – before the LSA bites

Plus: Case studies on outsourcing switchboard and practice management IT Analysis from expert suppliers on workflow technology, e-discovery, business process automation, reforming client service and the cloud LexisNexis® Enterprise Solutions Deliver an increased level of business agility and enable innovation and alignment to changing business needs by connecting people, information, and business processes.

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Time to change or get out of the game

The time for talking is distributed – is true when it input from legal suppliers, over. The Legal Services comes to the legal market. including our issue sponsor Act is upon us, ABSs will We talk to Paul Harding, a LexisNexis, on what firms be with us soon (if the commercial lawyer, partner, can do in the real world, from SRA doesn’t implode from consultant at Clyde & Co outsourcing to reforming the effort) and there are and LSA and ABS expert, client service, from business big companies out there about what the mid-tier and process outsourcing to salivating at the prospect below should be doing to e-discovery and the cloud. of pushing law firms’ re-engineer itself before it’s There’s a huge amount noses into the dust. left out in the cold. We hear in this issue of Briefing. I This issue of Briefing from a variety of firms that hope you find it useful and makes an attempt to see are doing things now to provocative. reform themselves, ready for if William Gibson’s old saw Rupert White, head of – that the future is already competition and growth. content and community at here, it’s just not evenly And we have expert LSN and editor of Briefing

Time to reset? 05 A brand new start 10 All-round round Legal Services Act When the LSA kicks in, the smaller guru Paul Harding talks to Rupert firms will be most threatened. Grania White about the urgent need for Langdon-Down talks to those firms change as the LSA gains traction about what they’re doing to fight back

Lean machines Becoming customer-centric LexisNexis Enterprise Solutions’ 16 Arlene Adams, CEO of Peppermint 18 general manager, Tim Cheadle, Technology, on why law firms bend on why process and efficiency equal every part of their make-up towards profitability and competitiveness their customers – and do it now

Eat or be eaten 20 Case study: Outsourcing 21 Innovation through business process Russell Stevens, head of facilities at management is now vital for firms that Nabarro, talks about how he saved want to be fit to survive, says Philip his firm £50,000 with outsourced Vian, CEO for EMEA at Winscribe switchboard from ComXo

Cloud competitive Case study: Workflow IT Jonathan Seaton from DPS Software 22 Richard Wilson, DWF’s senior 23 outlines how to outsource IT recoveries manager, on using effectively, and manage and get the Linetime Liberate SE to deliver most from your supplier commoditised work at a profit

This issue of Briefing was sponsored by: Discovering difference 24 Thinking differently about e-discovery can create real competitive advantage, says Johannes Scholtes, chairman and chief strategy officer at ZyLAB

Interview with Paul Harding transcribed by: Become a Briefing sponsor Want to get involved in Briefing? Call one of the legalsupportnetwork team on 0870 112 5058, or email us at [email protected]

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INTERVIEW

Time to reset? Paul Harding, founder of ABS Advisory Partners, consultant at Clyde & Co and legal reform guru talks to Rupert White about the threats and opportunities of the Legal Services Act, who will be affected and what firms need to change to succeed

“The corporate, high-revenue Dechert. He moved to Clyde & report on this was released Co in 2003 as a transactional earlier this year. firms may well adapt and corporate consultant, and he’s But, despite the small but improve efficiency, and be still there. not insignificant interest in But this year he founded external investment the survey squeezed a bit more by client a consultancy, called ABS showed, the idea of UK law Advisory Partners, to work firms launching on the stock pricing pressures, but they with law firms on how to adapt market and getting bought out won’t in any sense be put out of to a post-LSA world. And he by venture capitalists is a bit has good form in that area: of a red herring, Harding says. business, or anywhere near it. back in the 80s he worked It might yet happen, but only For them, this is an with the kinds of professions with the very largest firms or that were then going through the choicest targets for market opportunity, not a threat. similar changes – architects segment consolidation. and opticians. He’s also been “There is a world of differ- hired as a consultant by a ence between those who want But consumer-facing major outsourcer. to seek some sort of external firms had better It’s a bit of a poacher- participation in their law firm, turned-gamekeeper journey, [and those who want to just watch out.” but it means he’s seen almost become better businesses every side of the issue. He without taking external cash]. even studied for a specialist [For external investors,] the Those are Paul Harding’s Harding is a corporate legal MBA at Nottingham firm’s business ‘model’ is thoughts on the real impacts lawyer turned LSA consult- Trent, writing a thesis on the going to be very relevant, and of the Legal Services Act ant – after studying law at the LSA’s potential future impact. firms are going to have to align (LSA), and that warning is London School of Economics Harding carried out a poll of governance practices to those why this Briefing is for all in the 1970s, he gravitated to the top 200 law firms in late more familiar to investors.” the firms that are threat- corporate partner in the 1980s 2010 as part of that study, This is going to be because ened (and, you might also at Titmuss Sainer & Webb, testing their appetite for that Faustian pact means say, being offered a huge the firm that would gradu- external investment, which got handing over the reins to opportunity) by the act. ally morph and merge into him a bit of press when the people who will want to find

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INTERVIEW PAUL HARDING an exit and run the firm in a where [external investment] trying to get to, and will get tect’s practice on the Unlisted more corporate way. It hands would not be permitted,” to within the next five to 10 Securities Market (now AIM). over control – never some- Harding explains, “including years” – and S&G, he says, is “In the 80s, people were thing attractive to partners. continental Europe. the kind of firm private equity scared about going to an “The biggest barrier to “It’s going to be years before and the corporate investing optician and sitting there with private equity or high-net- continental Europe is going to market will want to invest in. a ticking clock and a musty worth individuals getting be anywhere near allowing the That’s not the future for smell – now you have Vision involved in a legal business is sort of model we’re currently most law firms. The big Express.” Which is, he says, likely to be a failure to be able talking about and, in the US, problem facing law firms what the legal reforms are in to control what goes on at the they are still allowing decisions outside the top 100, as a place to fix, why they have to partnership table. on this to be made on a sweeping generalisation, is not work and, most likely, the kind “A mid-market, generalised state-by-state basis. the LSA or alternative busi- of vision they’ll produce on transactional firm… is just too “Put yourself therefore in the ness structures (ABSs) – it’s the high street. “Why should difficult [for investors] in terms position of an external investor resistance to the change that people be scared of going of governance, of the lumpi- who is being told ‘We want to these issues make possible, to a solicitor? Why should ness of cashflow and in terms of relationships, because the assets [are human].”

External investment “Why should people

External investor interest in the be scared of going to a legal sector is, anyway, “on solicitor? Why should the wane”, he says, for all but the biggest and most attrac- they actually not find tive firms – the mid-tier, frankly, will sing for its supper and go it a very user-friendly home hungry. Investors also experience?” cannot see an exit route – “because the reality is, there is no Paul Harding, founder, ABS Advisory Partners market. Until there is a market for the sector, they do not know how they are going to get out of it”. The problem at the heart of the external investment expand!’ Well, expand where? because only through change they actually not find it a very model is that most of the firms Doncaster?” will firms be able to turn these user-friendly experience?” that want external investment How about Australia? threats into opportunities. aren’t attractive, and firms Harding says yes to that, but All the arguments against that are attractive to investors bounces back with the fact change in the sector have Making the change generally don’t want or need that the firm always held up been played out before, he their money. as an example of the ‘law firm says – back in the 1980s, So how do we get those But for firms that could of tomorrow’ in articles on when architects, opticians and turkeys to vote for Christmas? legitimately use the money the LSA, Slater & Gordon, is the like were experiencing the The argument has to be finan- for growth, there’s another ahead of us and thinking of same thing. Now we have a cial, he says – either there is problem. “A lot of the major coming to the UK “and taking completely changed market too big a disadvantage in not law firms who might seek us on at our own game”. in those areas that resisted so doing it, or because you can investment already have The spectre of S&G hard at the time. show evidence of a real finan- significant revenues accruing represents, Harding says, “the Harding was in the middle of cial advantage in doing it. from various jurisdictions brave new world that we are it – he floated the first archi- But something has to be

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INTERVIEW PAUL HARDING done. “If you stay in this better service and much lower end of the swingometer and pushing work down [to industry [at that level], I believe costs (see the case studies ‘threat’ at the other – and the cheaper staff], re-engineering it is going to be bottom-line in our back section), such place of any law firm on that the business and deciding driven”, Harding says. as in transcription, reception, swingometer is directly related how things can be done in a Turning the post-LSA world IT, payroll and the like – but, to their revenue. Those with much more efficient way. to your advantage, Harding Harding says, “if you are going the greatest revenue have the “Every option for out- says means strategy becomes to go for serious, full outsourc- greatest opportunity; those at sourcing or other process primary and vital. rationalisation, implemented “You must design a strategy, internally or with external help, now. And you must make sure and commoditisation needs to you know what it is you’re be considered. seeking to achieve.” HARDING’S WARNING “Above all, [firms must] look Becoming more competitive at their service levels from the as the market shakes out, moment of first client contact whether your firm makes “I think there will be blood to delivery. People may be £500m a year, £50m or on the high streets, because prepared to pay for service £5m, is, he says, a matter of standards.” re-engineering the work of consumer-facing firms That’s the chink of hope the firm, turning more work for consumer-facing firms, he into process, and pushing simply cannot compete on says: consumers might pay for work down the value chain to price with the Co-Op. They a tailored, ‘law firm’ service. much cheaper resources. This “I think there will be blood is happening throughout the probably cannot compete on on the high streets, because industry, he says, but it’s not [those firms] simply cannot evenly distributed. Co-Op levels of turnaround compete on price with Outsourcing also plays a big and levels of service either.” the Co-Op [just to pick an part in some of this, but many example]. They probably of the most at-threat firms are cannot compete on Co-Op those in the revenue bracket levels of turnaround and levels that outsourcers gain least of service either. The only thing from – those in the sub-£10m they will be able to compete revenue box – because there ing, you need a fair throughput the other end see more threat on is if they can really up-skill often just isn’t enough work to of transactions and you really than chance.” their service levels. shift to create a margin. need to be the £30-£50m Opportunity can often be “So they have to get out “Really, you have got to get revenue category [or above]. taken at leisure, he says – “but there and persuade the to the £30-£50m turnover Below that, the best thing a threat needs to be dealt with consumer that it may be worth [point to make it really make you can do is to look at what pretty quickly”. Right now, the paying a little bit more for a sense].” This does, he says, you might do internally, and high-revenue practices “can personalised service.” depend heavily on what kind restructure it.” wait and see, but those lower But many firms won’t see of work a firm is doing – some in the revenue chain must this need before it’s too late, firms with smaller revenues react swiftly – and I’m far from he says. “I’m not sure law doing the ‘right’ kind of work Re-engineer the law firm convinced they are”. firms on the high street feel may well benefit significantly Firms under threat should they ought to be relating more from outsourcing. But, he Harding studied at the LSE in examine “every process line, to the consumer. I think some says, these firms should really the 1970s under Bob Mc- back, middle and front office, of them quite enjoy putting be looking at process re-engi- Kenzie, otherwise known as in detail” now. Consumer- up barriers and asking slightly neering before outsourcing. ‘Swingometer Bob’, the man facing firms have little time obtuse questions to make There are, of course, lots John Snow and Jeremy Vine left to act, he warns, and only themselves feel important.” of outsourcing arrangements imitate every election night. a few options available to If this is true, it could spell that can help those law firms In McKenzie terms, he says, them. “We are talking classic real disaster. outside the top 100 deliver ‘opportunity’ would be at one business commoditisation, Harding is hardly the only

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INTERVIEW PAUL HARDING person to be spelling out the clean up because [the brand be faded out, replaced by one “I have been a transactional future this bleakly. Stephen power of] Marks & Spencer single QS brand. corporate lawyer since 1981. Mayson told an audience of and Saga will do wonders. Whether this means the It is a very, very long time. I this very size segment, at an The consumer does not care firms under those umbrel- have no doubt whatsoever NatWest-hosted conference about what goes on in the las can yet compete with that, despite all the critics just weeks ago (late Septem- background, they just want to companies that have selling within the sector saying [the ber 2011), that the time for see a sensible lawyer being at the cores of their business LSA] is a non-entity, this is real change in firms had pretty attentive and doing it at a remains to be seen. Funda- very big business indeed.” much run out. The traditional price they feel is fair.” mentally, consumer-facing But if consumer-facing legal model in law firms is irretriev- law firms, large and small, will service provision does change ably broken, Mayson said need to radically overhaul their to match these threats, – and it will be the millstone Are franchises the future? delivery of customer service. becoming much more sales- round the mid-tier law firm’s This doesn’t just mean putting led, run by managers, staffed neck when it has to duke it out Some firms have cottoned in and learning to really by people who do process not with the likes of Saga, Marks & on to this and chosen a ‘third use customer relationship law, working in the equivalent Spencer and the Co-Op. way’, finding refuge under the management (CRM) systems, of law shops, and with a huge One thing seems certain: umbrella of franchise or near- though that will surely help. It amount of product delivered means getting people in front on the internet, barely touched of clients who can actually by humans… what kind of sell legal products, and selling legal industry are we creating? legal products in places Are we making a legal and ways that are easy for industry that, as customers, “The consumer does not care consumers to deal with – be we may end up cursing – one about what goes on in the that in supermarkets or over filled with robotic workers who the internet. don’t really know anything, background, they just want to “[Now that QualitySolicitors and IT systems that are the is working] with WHSmith [for legal equivalent of an auto- see a sensible lawyer being example], the point of sale is mated telephone system? attentive and doing it at a price so much easier. They’re not Harding says the way out of selling using solicitors, they that future is for firms to find a they feel is fair.” are using people in branches better solution. “You have to who know how to sell. The work on getting a compromise real risk is those [firms] who between commoditisation, are still scratching their heads cost savings and customer and do not really know what service. It’s not going to do to do, have not thought about anyone any good to sweep it – and there are thousands of away the service and com- law firms doing any more than franchise operations like Quali- those out there.” moditise it and then not come a modicum of consumer- tySolicitors and the recently Harding is convinced that up to the mark.” facing work will be fighting launched Face2Face solicitors all this talk of competition “If you can not only reduce for customers that don’t care brand. Harding says this fran- from outside and the need to your cost base but increase who does their work, just chise approach may work. “I change isn’t just trash-talking your level of customer service, how much it costs. Brand will do wish QualitySolicitors well. by companies and consultants you will be flying.” matter more than reputation. There are a lot of cynics out with vested interests in getting Let’s just hope he doesn’t Price will matter more than there, but for heaven’s sake at paid for helping that change mean like a budget airline. l PQE. And customer service least they’re trying something.” happen. It’s all happened will be everything. Though QualitySolicitors isn’t before, in other sectors (such “If we could get Saga a franchise in the pure form, as opticians, mentioned Interview transcribed by to offer services [such as as individual firm names are above), and the change was Voicepath – fast, secure, conveyancing, wills] at the being retained, Harding agrees sweeping, irreversible and onshore legal transcription for consumer level, they would they will most likely gradually very, very disruptive. over 200 clients nationwide

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FEATURE

End of the line, or a new start? Firms outside the top echelons will be most under threat when the legal world changes for good. So what can they do? Grania Langdon-Down talks to a variety of firms outside the top 100 to find out if the future is already here, just not evenly distributed

As the Legal Services Act as chief operating officer, more Is outsourcing the answer? for the commercial and private (LSA) starts to bite, out- strategic roles for practice client law firm Paris Smith, one comes-focused regulation managers and directors, and Outsourcing is an issue that’s of the largest regional firms (OFR) becomes the norm a growth in the power of the high on the agenda for many in central Southern England. and alternative business business services side in legal. firms further down the ladder “I found tough decisions that structures (ABSs) rumble Many of the top-100 firms that want to reduce the cost of would have been made [easily] about in the wings, law firms are turning to business doing business – both the cost in a commercial environment are realising that they need process re-engineering and associated with growth and were much harder to sell to to find ways to cut unneces- outsourcing to re-focus that associated with today’s the partners,” he says. sary costs, outsource work, internal resource on core legal work. (See the case studies in There was resistance to re-engineer their businesses work and cut their cost bases. this issue that show what firms change when Paris Smith and fundamentally change It’s about being efficient and can do to deliver more for less reformed the firm’s secretarial the way they engage with competitive, but they’re not through outsourcing) services. From working with their clients. But what does doing it because of the LSA Harding would say that the old one-to-one model this change look like? – they’re doing it because it smaller firms have fewer – one secretary, one lawyer Some say that facing the makes sense. options when it comes to – following Cousins joining challenges of competing But how are law firms in the farming work and processes seven years ago, the firm has with the likes of the Co-Op mid-tier and below changing, out. But even when it can introduced digital dictation and and Saga – the kind of new or thinking of changing, be done, it can be very hard later supplemented that by entrants this month’s inter- their ways to become more to convince partners of the outsourcing transcription with viewee, Paul Harding, names capable and competitive now idea, or even to accept it after DictateNow. – will lead to a dramatic that the big day is almost it’s been implemented. Alan Cousins says that selling increase in ‘new’ roles, such upon them? Cousins is practice director the DictateNow move to the

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A new start cont. partners was partly achieved cost and resource implica- the work out to people who not save any money at all and by telling them that the out- tions, but Cann believes are not directly answerable to still re-engineer a firm. sourcer only uses UK-based smaller firms can get the jump me, and where it is harder to Niche media practice Wiggin secretaries – but it should on bigger rivals because they check quality control.” outsourced its back office have been the savings that can be more agile. The big Risk is a bugbear. The functions in 2003, shortly after swung it: Cousins reckons downside is that a lot are challenge when outsourcing it demerged from its private that, had the firm tried to keep hidebound by partnerships non-core work, says Kim client side. Wiggin’s COO the same ratio as it grew over that include the ‘dinosaurs’ Hobbs, practice manager at John Banister says this was the three years following the we’ve all met at some point. 13-partner full service firm a matter of necessity at the change, the salary bill would Curwens, is to keep a very time: “We recognised there have been £250,000 higher. good handle on compliance was a lot to do to build the Paris Smith was able Re-engineering the firm and the quality of client care. new firm, and we didn’t want to retain a core group of “You’ll have financial to commit too many resources secretaries, and use the More in line with Harding’s agreements, so you know to managing the admin when outsourcers to manage peaks advice for smaller firms, em- the margins,” he says. “But our priority was the clients.” and troughs. Cousins also ployment and personal injury compliance means you’ll be Banister brought business outsourced some reception to firm Underwoods Solicitors comfortable when the SRA process outsourcing (BPO) Moneypenny to supplement took the bold step of set- comes knocking on your company Intelligent Office reception, which has helped the firm gain work from callers ringing out of hours. An area that’s now accepted as a good outsourcing target “We still take all the is IT. More than a decade ago, generalist firm Martin- decisions, but I’m Kaye moved its IT to the delighted that somebody cloud. Former partner Chris Cann, now a non-practising who knows what they consultant responsible for the seven-partner firm’s systems, are doing is dealing with IT, risk and service standards, these functions.” says the firm’s early adoption of this IT model was sparked John Banister, COO, Wiggin by Claims Direct, which he says “revolutionised” the way law firms could pick up work. “It was at that point that I realised our creaky old IT systems couldn’t cope, so ting up its own South African door, and quality means you in, which took over functions we decided to move it to ‘capture’ to take on secretarial can sleep at night knowing such as post room and the cloud and let someone services rather than outsource your clients are being given stationery management. Two else to look after it, while I it – re-engineering the firm on the same service you would years later, Wiggin outsourced concentrated on the business the inside. Secretarial salaries give if it was being done front of house to the same processes. We went with in SA are roughly a quarter of within your walls.” Outsourcing firm. Wiggin has kept secretar- a company called the Hub, that in the UK, and there is no compliance under the new ial in-house, though Banister which went bust after 18 national insurance to pay. outcomes-focused regulation is looking at bringing in third months. Since then, we’ve But senior partner Kerry model comes under section parties to handle work peaks. been with E-know.net.” Underwood says it’s not just 7.10 of the new SRA code. (Wiggin also outsourced Deciding to outsource or about the money. “I’d rather And outsourcing can be comms to Total Ltd – read introduce new business proc- employ my own people in a done for other reasons than the case study in Briefing on esses is a big decision, with cheaper jurisdiction than put cost savings – in fact, it might Strategy, June 2011)

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A new start cont.

Wiggin has between 12-15 one third is firms with three or Managing risk doing it. Intelligent Office employees fewer partners, with just the “But if you are talking about across two sites, and treats remaining third being firms There are inevitably risks running and leading the firm, them as part of the firm. “I see with more than four partners. involved in handing over serv- in my view that should remain this as a partnership rather Charles Layfield, Pannone ices to an outside provider, a lawyer.” than a third-party relationship,” partner in charge of Con- and those risks need to be Underwood might represent Banister says. “We didn’t do nect2Law, says member firms managed as part of a busi- an increasingly minority view it to save money, but to save aren’t just outsourcing legal ness relationship. But who will in the legal market once ABSs time. It’s probably cost-neutral work they can’t do so as not be responsible for managing become reality, though. because, while [Intelligent to lose a client – they also these new relationships? Cousins at Paris Smith is Office] can bring additional pass on work they could do Traditionally, lawyers juggled a former group company purchasing power, there is a but which another firm, such responsibility for different secretary of a FTSE 250 listed management fee on top.” as Pannone, can do more services alongside heavy company, and was headhunt- Did he fear any loss of cost effectively, because it has caseloads. This is changing, ed for his experience in risk control? “Not at all. We still a higher degree of process generally from the top of the management and compliance take all the decisions, but automation. legal market down. But is it as well as his commercial I’m delighted that somebody Member firms also time to make a wholesale outlook. who knows what they are benefit from doing is dealing with these the network’s functions. It is a high-churn buying arm, area, so a lot of recruitment is CostController, required – which is no longer which spent “I only spend money our problem.” 2011 analysing members’ – which is why it’s so BPO needs, important that all the Becoming an LPO and is now in the process of different functions are In a radically shifting market, creating a solu- some law firms are radically tion for them well managed by people changing their business model across IT, pay with the right expertise.” and strategy. roll, finance, In an interesting twist on secretarial, Alan Cousins, practice director, Paris Smith outsourcing, Pannone set HR, billing, itself up as a legal process call handling, outsourcer (LPO) to other and marketing law firms and businesses. Its assistance. Connect2Law support and This last point referral network is 10 years shows how an umbrella-style change to firms’ management In headcount terms, Cous- old in October 2011, covers network of work referral, structures? ins has the second biggest England, Wales, Scotland and alongside shared buying That still depends on the department in Paris Smith, but Northern Ireland, has over power and possibly some size of the firm, says Under- “the problem is, I only spend 2,400 law firm members now, shared back office services, wood. “Professional managers money, I don’t make any – and expects that to rise to draws a possible future for can be an absolute disaster, which is why it’s so important 2,800 by April 2012. Last year, firms too small to even dream and bringing someone in that all the different functions the firm created its Affinity of buying those advantages who has no experience of the are well managed by people Solutions division to provide individually – and shows how profession or sector is a big with the right expertise”. a range of services including tomorrow’s legal business isn’t mistake,” he says. “However, The job initially on offer running legal helplines for a binary outcome, with some when a firm is sufficiently at Paris Smith was that of insurers and other corporates. firms able to do things like large, you need people to practice manager, but Cousins Just under a third of mem- outsourcing and process auto- manage it, because it isn’t says he “persuaded them to ber firms are sole practitioners, mation, while others cannot. cost-effective having a lawyer enhance it to practice director

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A new start cont. so that I would be involved in with suppliers on behalf of the manager, but there are others person management team at strategic development and risk members. “Our objective is who can and will.” Wiggin (alongside two of the management”. to do something similar with more senior lawyers). With no His firm is currently review- BPO. There is a management senior or managing partner, it’s ing all potential outsourcing and resource cost to manag- Corporate future a relatively corporate structure opportunities, but this has ing those relationships – one and unusual for a law firm. an impact on the firm’s own of our USPs is that we provide There’s been a slow shift to “When I was at Linklaters staff. “You have to look after that service.” more corporate structures in the mid-90s, we thought morale internally, if people feel Layfield hasn’t earned fees in law firms above a certain there would be an explosion in their jobs are under threat,” he for six years, but, he says: size, with the rise of CEOs the role of COOs and practice says. “It’s a case of trust. You “My interest has always been and COOs, Layfield says, and directors, but it has been a have to be aware that some- in law firm management. Can “this will be accelerated by the slow drip-drip. However, post- recession and with the LSA changes on the doorstep, the time is ripe for firms to seek professional managers.” “It is hard for old-fashioned Cann at Martin-Kaye agrees. “It is a matter of trust, putting partnerships to swallow, your life’s work in the hands but it’s much better of an outsider,” he says. “It is hard for old-fashioned to bring in an outside partnerships to swallow, but it manager than try to get is much better to bring in an outside manager to run the [lawyers] up to speed business than get [a lawyer] up to speed to compete in the to compete in the new new environment. environment.” “Progressive firms are bringing in CEOs. With ABSs, Chris Cann, head of IT/risk/standards, Martin-Kaye they will be able to bring them partially into ownership if they’re really good.” And, while all those interviewed for this issue of thing you see makes perfect you do this and fee-earn? In LSA – and it is long overdue. Briefing believe the changes sense in business terms can my, very subjective, view, no. The reality is that the CEO of wrought by the LSA will create be very worrying for staff.” When I started, I had a 50/50 a FTSE 100 firm would not be more of a war of attrition than But things like speech fee-earning/non-fee-earning working on the shop floor”. a world-ending bang, they recognition software, he split for a year and I ended Banister at Wiggin agrees. are enthusiastic about the says, will eventually transform up doing two-thirds of both. He spent eight years in the opportunities ahead. secretarial support. “We are Ultimately, if you want to be Royal Navy before becoming “We are exploring all sorts working with Winscribe, which best in class, you need to do it business manager in an of opportunities which may provides our digital dictation whole-heartedly. investment bank, and then fit with our niche specialism,” system, in association with “Why would a lawyer be the same for Linklaters. It was says Banister. “This is another speech recognition provider the best person to manage a a new role, then, and he was reason why you don’t want to Dragon. Each time I look at it, back office function? I think one of just four – now there be distracted by the photo- it works better.” there will be a change with are more than 60. He then copying or post room – firms For Layfield at Pannone, outsourcing, but it will be more went on to KPMG to be COO should be embracing [things one of the benefits of their down to the size of the firm – for KLegal, seeing it grow to like] outsourcing for non-core CostController buying arm is some won’t be able to justify 650 people. work, so that they can focus that it manages relationships employing a full-time practice Now he’s one of a three- on the main business.” l

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Pioneers in Legal IT solutions

The introduction of ABS, the SRA Here’s what our clients say: Handbook and Outcomes Focused Regulation changes. Most firms “Well, we’re still happily using Prescient’s case “This openness and resultant dialogue has been will need to consider changing the management module five years on so that key to accelerating IT that is properly aligned to should tell you a lot.” business requirements. Rather than getting way they work, but will your IT stifled by a more bureaucratic, consensus-driven systems support your firm? “What we saw there was a supplier with a long approach to system development, we’ve been track record in the sector having put all its able to push on as there’s been an immediate Norwel’s Prescient PMS software is knowledge and expertise back into the product and urgent response to our needs”. designed to meet over 90% of client’s needs – taking feedback and suggestions from clients whilst the remainder is addressed by and putting them into the product as part of a “The hook with Norwel is that they look after you tailoring and integrating Prescient with third continuous improvement program. We were – they welcome dialogue; they take on board party applications. struck by how very dynamic that process was – criticism; they embrace challenges; they and still is – and there’s huge value for all respond to your needs”. Alan Richardson, Norwel’s M.D. says “Firms Norwel clients in this”. need to ensure that their IT investment is “We review our suppliers regularly and assess supported by a supplier who not only “Norwel’s strengths are two-fold. First, it’s the whether they are still delivering value and still provides best value for money, but who can fact that 90% of it works out of the box, a committed to the relationship. Norwel passes give them what they want when they want it testament basically to decades of legal that test consistently and indeed the longer we allowing the business to respond quickly to know-how and experience at the coal-face. have worked together, the more fruitful the new opportunities. That means being Second is the fact that you are not left high and alliance has become as our understanding of responsive, agile and adopting a dry as regards the remaining 10%, and just each other has developed”. collaborative approach with the firm”. expected to put up with an incomplete solution”

Shouldn’t you be talking to a Legal Systems Supplier who acknowledges that each Client is different? Norwel Computer Services No. 1 Lakeside, Cheadle, Cheshire, SK8 3GW. Tel: 0161 492 1600 www.norwel.co.uk 16 briefing on COMPETITIVENESS & THE LSA www.legalsupportnetwork.co.uk

ANALYSIS INDEX Adapt to compete

In this issue of Briefing we Lean machines 16 have a wealth of information LexisNexis Enterprise Solutions’ general manager, Tim Cheadle, from suppliers to the legal on why process and efficiency equal market about what changes profitability and competitiveness firms should be making as the Becoming customer-centric 18 Legal Services Act kicks in, and Arlene Adams, CEO of Peppermint Technology, on why law firms bend some real life stories from firms every part of their make-up towards that are already changing to their customers – and do it now become leaner and more agile. Eat or be eaten 20 Innovation through business process Are you ready to begin? management is now vital for firms that want to be fit to survive, says Philip Vian, CEO for EMEA at Winscribe

Case study: outsourcing 21 Russell Stevens, head of facilities at Nabarro, talks about how he saved his firm £50,000 with outsourced switchboard from ComXo

Cloud competitive 22 Jonathan Seaton from DPS Software outlines how to outsource IT effectively, and manage and get the most from your supplier

Case study: workflow IT Richard Wilson, DWF’s senior 23 recoveries manager, on using Linetime Liberate SE to deliver commoditised work at a profit

Discovering difference Thinking differently about e-discovery 24 creates real competitive advantage, says Johannes Scholtes, chairman and chief strategy officer at ZyLAB

SPONSORED EDITORIAL ISSUE 15 | OCTOBER 2011 17 briefing on COMPETITIVENESS & THE LSA www.www.legalsupportnetwork.co.uklegalsupportnetwork.co.uk

ANALYSIS EFFICIENCY THROUGH TECHNOLOGY

Lean machines

LexisNexis Enterprise Solutions’ general manager, Tim Cheadle, on why process and efficiency are key to law firm profitability, and how law firms aiming for these goals will be more competitive

Addressing the Birmingham mortgages from supermarkets are now demanding evidence imperative. Law Society last year, justice or similar sellers today – why of advanced financial manage- Firms must also free up secretary Ken Clarke said not legal services? ment, alongside assurances latent capacity to develop that as many as 3,000 high Regardless of the rights that practices are being run new services and act on the street firms may disappear and wrongs of the reforms, profitably. The financial opportunities these ‘new in the UK after alternative the opportunity for new legal challenges will only worsen normal’ conditions will bring. business structures (ABSs) market entrants is huge, and with the professional indemnity As an enabler, IT will be come into being. This is many corporate brands are renewals due the week this instrumental in achieving something we’ll have to already queuing up to become Briefing is released. this goal. When planning for wait to see – the Solicitors legal services providers – IT requirements against this Regulations Authority will WHSmith, the Co-Operative backdrop, IT outsourcing is only begin licensing ABSs in Group, AA, Saga, Which? and Operational efficiency will worth considering – in finance early 2012. Halifax spring to mind. be key to profitability terms, it instantly moves IT But commoditisation of So, some serious challenges from being a capital to an services and products is well clearly lie ahead. Competing To deal with these challenges, operational expenditure. It under way across a number with large corporates with law firms must learn to oper- also shifts the IT department’s of industry sectors, and the financial muscle, strength of ate in a more competitive, responsibility from day-to-day coming of the Legal Services brand and well-oiled market- enterprise-like manner. administration towards acquir- Act 2007 has triggered this ing machinery and access to Ironically, in all this change, ing and developing technology trend in the legal sector. customers will not be easy. the need to adhere to the that will positively impact the This subject has been Moreover, securing funding traditional business values firm’s bottom line. extensively debated, but – which was rarely an issue for of efficiency, cost-reduction To illustrate, Your Con- one could argue the point law firms prior to the reces- and innovation to win and veyancer, a Scotland-based that the commoditisation of sion – can no longer be taken retain customers has never volume conveyancing provider, legal services should not be for granted. Following recent been greater. Increased price has implemented Visualfiles, considered any different, or insolvencies in the sector, competitiveness, reduced LexisNexis’s case manage- less useful, than in any other such as Halliwells and How- budgets and a shift towards ment system, as a fully sector. You can buy insurance, reys, banks no longer consider alternative fee arrangements managed, hosted solution. mobile phone contracts and law firms to be low-risk. They makes operational efficiency Because Visualfiles is a

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Lean machines cont. hosted solution, the firm has The technology needs and underpinning them with a their disposal immediately on been enabled with workflow- of law firms vary, and the technology solution. joining – which means they based technology without hosted model is not suitable Integrated practice manage- are billable within a reduced incurring the additional capital for all. But, whatever model ment solutions based on amount of time. expenditure that would have they adopt, law firms need Microsoft technologies are a Over in business develop- been required in a traditional IT to make sure the technology good route to achieving this. ment, the bid and tender environment, such as software they deploy is workflow-based Such solutions seamlessly management process can licences and hardware. On and delivers business process integrate all core functional be streamlined to ensure that top of that, the firm has 24x7 automation. business areas of a legal busi- only the most appropriate technical support ‘on tap’, and Contrary to the traditional ness, such as billing, customer personnel and references are disaster recovery is offered as approach of focusing only relationship management, included. Using embedded part of the managed service. on legal process efficiency, document management, risk analytics, the team can then Hosted IT is giving the firm firms now need to look for management and compliance, also calculate if the prospect enhanced flexibility, scalability business process efficiency workflow and key perform- would be a long-term profit- and reliability – and able opportunity. staff can access And, by Visualfiles from streamlining anywhere in the world, processes, finance reliably and securely. can provide clients Better still, this IT “Firms now need to look with a transpar- model is supporting for business process ent view of fees the firm’s strategy structures in real and online business efficiency that extends time, safe in the diversification knowledge that all objectives, because beyond legal activities the information is it allows Your Convey- and spans every aspect accurate and fully ancer to recruit staff auditable. based purely on merit, of the business.” The answer to regardless of where the question “how they are located. Tim Cheadle, LexisNexis Enterprise Solutions do we become more competitive after the LSA”, Streamline your therefore, is clear. business processes for that extends beyond the legal ance indicators. But they also Given the increasing an integrated business activities and spans every crucially provide close integra- competitiveness and regula- environment aspect of the legal business, tion with Microsoft Office, tory compliance complexity from finance and accounting which delivers productivity following the final phase of The emergence of ABSs will to customer relationship gains, cost savings and overall the LSA, any legal business increase competition, but they management, from business business efficiency. Microsoft- must be underpinned with also present an opportunity for development to HR. based solutions are also technology to drive efficiency, small and medium-sized firms. A tried and tested way relatively future-proofed, which reduce business risk of Delivering legal services is of achieving operational means law firms can maximise professional negligence, not the expertise of super- efficiency that impacts the their technology investments speed up service delivery and markets and co-operatives. I bottom line is by streamlining for the long term. ensure compliance. think the trend of outsourcing and automating underlying Let me give you an example legal work to smaller firms business processes. of this in action: will increase significantly, and Business process automa- In HR, the process those practices that have the tion, essentially, involves employed for new joiners can Click! right technology in place will taking existing processes and be automated and honed Learn more about be well positioned to secure making them more efficient to ensure that fee-earners LexisNexis Enterprise this business. by applying business rules have the training and tools at Solutions for law firms

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ANALYSIS REFORMING CLIENT SERVICE

Towards the customer-centric firm Briefing speaks to Arlene Adams, CEO ofPeppermint Technology about why law firms should look at why businesses in other sectors bend every part of their make-up towards their customers – and do the same, because they are your new competition

Arlene Adams has done her established brands or busi- see Briefing on Strategy, influences their decision to time in the legal IT sector, nesses that understand what June 2011) – regardless, select a lawyer. Therefore, riding buyout waves that they’re good at, what their Adams says, of whether the Adams says, “streamlining the would sink many business core competences are and big threats fully materialise; business is really important”. leaders. She then spent how they can translate that competition will dramatically Price sensitivity is a couple of years in the into the legal services market” increase either way. partly down to the ongoing wilderness, assessing the that want to enter the legal “Even if ABSs and the Legal economic woes affecting market while it rode out the market, creating significant Services Act don’t have the the country, she says; but recession. Now she’s back, disruption and competition. impact that many predict, it’s also a fundamental shift with a new insight into what What does this mean for law the fear that they might will in consumers’ attitudes to law firms must do to be firms, and what can they do? be what instigates a lot of buying legal services. “We’ve competitive leaders in their “Some firms believe that firms to change, and I don’t seen the emergence of a lot of sector in the future. legal is highly niche, it’s think that’s a bad thing. It’s online services that put control Unlike many commentators, personalised and it’s built on kick-starting them into looking back into the hands of the she doesn’t believe that it’s very personal relationships, at their firm much more as a consumers when it comes to only the smaller firms that will so it’s not really going to business. making buying decisions over face the pressures of ‘Tesco affect them – and so they “This means looking hard at the last five years or so. The Law’ after the Legal Services will continue to focus on how they deliver a customer consumer now expects it to Act finishes its run in October differentiating through the sort experience, and it means look- be easy to be able to compare and once ABSs are introduced of personalised touch that ing at how they can be much like-for-like services for a in 2012. “It’s not just going to they give their clients. To some more efficient and streamlined like-for-like price.” be the commoditised space extent, that’s just an excuse in what they do, to be price This challenge for legal is that new entrants target”, she for people not wanting to face competitive.” compounded by the rise of says. “People are still living in up to reality. Adams says that research a generation used to doing a bit of a wishing world rather “But a lot of firms are start- Peppermint Technology everything on the web, she than reality when it comes to ing to ask the big questions: has done into the consum- says, and that extends into who will be under pressure.” where does this leave us, what ers of legal services, both the corporate buying world Whether your firm is large or is our core competency, what private and corporate, shows – Peppermint’s survey found small, though, the challenges is our strategy, and how are definitively that “the overriding that online was by far the are similar – competition, and we going to compete?” factor influencing consum- most preferred communication becoming agile enough to These are the key questions ers buying legal services is mode by corporate clients. compete. Adams says she’s any firm has to address in its price,” – more than nine out The primary strategic shift in heard first-hand from “well- strategy (for more on that, of 10 private clients said price capability that law firms must

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The customer-centric firm cont. embrace is one that will give is between 7pm and 9pm. experience than they do if that joins everything up to firms the ability to reshape Not only that, law firms’ target they’re having to engage on provide a slick, automated their customer experience and audience is often time short someone else’s terms.” process wherever it can, but streamline their business for and not necessarily cash rich, And, she says, it is thinking also gives the customer a maximum efficiency: becom- but they’ve got money to differently about a law firm’s highly personalised, satisfying ing more agile in delivering spend. Those people don’t IT systems that can deliver experience at the other end. new legal services. often have the time to interact this. Everything has to revolve “The firms that are going “A firm’s ability to rapidly and collaborate with a lawyer around customer experience, to be successful in this build and deploy new legal during the working day. An in a fully integrated, automated market will be those that strip services is critical – firms will office that shuts at 5pm isn’t and process-led environment. their business back to the have to be much more crea- much use to them. “You want it to work two things that will make a tive in their offerings. Where “That same individual is seamlessly. A platform that successful legal company: traditionally their offerings have probably been quite static, the likes of Tesco and so on are used to changing their offers twice a week.” For a law firm – or ‘legal “The firms that are going services provider’ in the argot of the near future – to be able to be successful will be to deliver these tenets of future competitiveness, Adams those that strip their says, it has to put customer business back to two experience at the core of its IT systems the same way it things: the customer must put customer experience at the core of its business experience, and the strategy. content they deliver.” “The legal services market is about how you give the Arlene Adams, CEO, Peppermint Technology customer a really good experience around the value that you deliver to them as a legal firm – and that value is actually content. How do you take that content and make used to an online experience mixes applications, content, the customer experience and it highly personalised, highly where they can take control and collaboration, that the content that they deliver relevant and really easy for the of their own finances, for brings it all together, can give to them. If you’ve not got consumer to consume? That example, through internet you a completely different that customer experience is one of the challenges in the banking, anywhere, anytime, experience.” And it delivers a right, sometimes it won’t legal market. from anything. And with consistency that’s going to be matter how good the content “If firms can make their control comes a feeling of a vital in future. is – because you’ve lost the content easy and accessible better service that is highly “A consistent experience is customer before you even for a consumer, at the right personalised to them. I would proven to drive up satisfac- get to the point of sharing the price point, then they’re going suggest that people expect tion. If you have a single content with them.” to be very successful.” the same of their lawyer. customer view, if you have all A simple example of this, “It’s been proven time and your applications completely she says, can be found when time again in other industries integrated through your single Click! buying a house. “For most that, where people can customer view, you can make to learn more about how Peppermint people today, the busiest self-serve, they have a much very informed decisions. Technology can help peak time of online services more personalised, satisfied “It’s about having something your firm

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SUPPLIER ANALYSIS OUTSOURCING IT

Eat, or be eaten

Innovation through business process management is now vital for firms that want to be fit to survive, says Philip Vian, CEO for EMEA at Winscribe

Status quo has had its day, able to contemplate fixed fees, of the species is already a firm’s current investment, and I’m not referring to the otherwise it will go the same happening. and enabling firms to make rock band. The following way as the raphus cucullatus But study evolution in more constant improvements to phrases that have tradition- (that’s the Dodo). detail and you will find that, their business processes ally been trotted out to As if the economy was not since the beginning of time, over time, our clients are well reinforce the status quo enough to contend with, in species have survived by placed to meet the upcoming should now be the preserve 2007 the government saw fit two means: adapting to a challenges. of etymologists: “if it ain’t to stir things up with the Legal new threat in their territory by Second, we have created an broke, don’t fix it”, “tried Services Act. Now the era of evolving their own defences, Innovation Advisory Board – a and true” and, my favourite, outcomes-focused regulation or by expanding into empty group of practice managers, “it’s worked for us for the (OFR) and alternative business ecological niches. compliance managers, CEOs, last 100 years and there’s no structures (ABSs) is upon us, The common theme is CIOs and ABS consultants reason to change now”. and a certain part of the legal that the species that have from across the legal sector – Most law firms live and market is going to be com- survived have been adept at with the specific aim of provid- breathe the status quo – it’s moditised as a result. changing, and there is nothing ing a forum for innovation in in their DNA. But times are You only have to look at that embraces change more the UK legal environment. changing and firms will need what has happened to the than innovation. Therefore, Meeting once a quarter, the to change. We may even have conveyancing market to innovation must be at the root team uses its knowledge and a case for a new version of understand what is coming, of a law firm’s DNA, because experience to identify the most Darwinism as a result: legal and it is not just the high street this will allow it to expand into compelling areas of invention Darwinism. firms that are going to feel the profitable niches and to build for the legal sector. We are in the midst of a impact of the new entrants or defences against new threats. Winscribe will take those malevolent economic cycle ‘predators’. ABSs are not just We have been helping law invention areas and use our and all the indications are that about new entrants practising firms to embrace innovation BPM solution to build the the market is going to remain law – they are also about firms in several ways. First, by process to turn invention into stagnant for a few years entering the sector from highly developing and introducing usable innovation for all UK yet. Not only is the market efficient industries with strong a business process manage- law firms. stagnant, but clients are process controls and high ment solution – Winscribe becoming more discerning. levels of process automation. BPM – to the UK legal sector, Fixed-fee work, once the This position delivers not only which promotes law firm unwanted prerogative of the lower costs, but also new competitiveness by reduc- Click! high street firm, is beginning to levels of service quality to ing the firm’s overall costs to find out how creep into commercial law. A clients. arising from inefficient, manual Winscribe can help firm will need to have its costs The DNA of UK law firms processes. By integrating you innovate and control costs, and under total control to even be has to change; the cessation existing systems, maintaining to learn about our Advisory Board.

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CASE STUDY OUTSOURCED SWITCHBOARD

Out of hours, but not out of mind Russell Stevens, head of facilities at Nabarro, talks about how he saved his firm £50,000 with outsourced switchboard from ComXo

Sometimes, what seems like slack dovetailed perfectly into wanted to leave mobile phone what is a vital client-facing the least important thing in the plan. numbers with reception and service, but he had no service a law firm’s daily grind is the Stevens had been aware of so on could do so, and that level fears, because the same most important thing. But ComXo’s services and spoken those answering would be ‘mystery shopper’ service when Nabarro outsourced to another ComXo client, reliable enough to use that that Nabarro uses for its own its out-of-hours switchboard Farrer & Co, about the service. information. This had been services also scores ComXo in to ComXo, head of facilities This tipped the balance – happening, but it wasn’t as its highest bracket. Russell Stevens knew that when the firm moved to shift good as it could have been.” “When we get our report a few late night calls could switchboard to Sheffield, The most regular ComXo on how our own people have be far more important than he terminated the security help covers issues such as performed, we also get a list many of the firm’s daytime contract and brought ComXo taxi bookings for late-night of other firms who’ve achieved conversations. a certain category – and Until December 2010, ComXo are consistently in Nabarro’s after-hours the platinum category. That phone calls were taken by gives us peace of mind,” security staff at the firm’s “We don’t get a Stevens says. London offices – but the “In the time we’ve been problem was that security huge amount of using ComXo, I don’t staff weren’t answering think I’ve received a single calls with consistent out-of-hours calls, complaint, so you know quality. “We don’t get a but when we do, they’ve responded very well huge amount of calls out to everything that’s been of hours but when we do it’s generally thrown at them.” we obviously want them quite important.” Firms are taking on ever answered professionally,” more of these outside Stevens says. He was relationships, and with them also looking at whether he the need to oversee them. could divest the firm of its With ComXo, Stevens says, separate security contract, as in to deal with out-of-hours workers, and some client this has been relatively easy. its home is a leased building calls. He reckons the move relationships where a lawyer “The crucial thing is to make with security. has saved Nabarro around must be provided within a set sure you’re comfortable that Stevens realised that he £50,000 year. period – but, he says, “we the people you partner with could save money by getting Nabarro chose to outsource know ComXo have all that have done their due diligence rid of the security contract and to gain better call handling information, and they know and understand your busi- moving the phone answering quality, more efficiency and what they’ve got to do when ness. With ComXo, you know it had carried out to a profes- some cost savings – a simple they receive that kind of call”. they’re working with large law sional service. The firm’s then mix, but a potent one. Management is fairly simple, firms and providing this service managing partner, Nicky “The client calls tend to kind including giving ComXo a to them – they know what Paradise, had already called of drip-feed in after about weekly list of leavers and join- they’re doing.” for the in-house switchboard 7pm, but when they do call ers, “so if a client rings up and staff to be re-located from after that, it’s generally quite asks for someone who’s left, London to Sheffield, so important,” Stevens explains. it’s not embarrassing trying to Click! Stevens’ idea to also switch “We needed to make sure fiddle around trying to get hold to learn more about how ComXo can help out the security and have messages would get through, of someone who isn’t here”. your law firm ComXo pick up the evening that the partners who Stevens chose to outsource

SPONSORED EDITORIAL ISSUE 15 | OCTOBER 2011 23 briefing on COMPETITIVENESS & THE LSA www.legalsupportnetwork.co.uk

SUPPLIER ANALYSIS OUTSOURCING IT

Cloud competitive Jonathan Seaton from DPS Software outlines how to outsource IT effectively, and manage and get the most from your supplier

“The most important single background and a wealth of single supplier relationship. near-instant access to the ingredient in the formula of experience in other markets But how should legal firms services and products your success is knowing how to will see them bring operations go about managing these firm needs to capitalise on get along with people.” So and business development outside IT relationships? developments in the market. said former US President knowledge and processes, Freeing up of internal Theodore Roosevelt – and, alongside big budgets and Outsource work, not capability to leverage superior when it comes to how law infrastructures, that all but the knowledge: It’s important that legal knowledge: Some new firm management creates largest law firms are unlikely to the knowledge of outsourced entrants may well have a productive relationships be able to match. functions is still held by those head start, but law firms are with service providers, this During times of change managing the relationships. uniquely placed when it comes couldn’t be more accurate. there are few strategies more Outsourcing does not mean to market experience and With the final elements of dangerous than sticking your that non-legal skills should be knowledge. The best supplier the Legal Services Act (LSA) head in the sand. And, regard- done away with – quite the relationships should free them sliding into place, how well law less how far-reaching the opposite. Expertise should to use that capability. firms create and maintain a impact of the LSA and ABSs, be cultivated internally so that Cost-effectiveness, across small but growing number of building a business strategy, those managing relationships the board: This will be essen- key strategic supplier partner- improving operational struc- can work effectively with tial as new organisations enter ships will have increasing tures, strengthening relation- suppliers. the market from commercial impact as the legal market ships and, ultimately, putting areas where cost-savings are becomes much more com- your firm on a competitive Build internal functions into the primary focus of almost mercial and competitive. footing can only bring positive strategic roles: Specialist everything they do. When alternative business results. knowledge will also allow The LSA means it’s time structures (ABSs) enter the IT strategy is a major part staff managing supplier for law firms to act much market from 2012, outsourc- of this, but it must now be a relationships to take on more more like businesses, but ing essential but non-core far more wide-ranging effort, strategic roles – as they learn established law firms should elements of a legal business especially when it comes to delegate responsibility not lose the ‘human face’ that will provide many vital to examining the options for day-to-day support and may differentiate them from advantages to most firms. available for outsourcing law maintenance to the supplier, competition. Firms should This behaviour may even be a firm technology. they can give the firm clear look to strike a happy medium determining factor in the future We think cloud services direction in essential business between a commercial entity success of many firms – giving play a key part in this shift in support areas. and a traditional legal practice, them the ability to focus on IT strategy. A fully-managed and the right strategic supplier legal work, and bring to bear hosted IT service, a service Really work the relation- relationships can help them the knowledge of the legal like DPSCloud, for example, ships: Ultimately, supplier achieve that balance. market they’ve built up over provides a way for law firms relationships need to be lever- years in practice. to meet several crucial aged to provide law firms with In certain work areas, new elements of a legal IT strategy: certain key capabilities: entrants to the legal services responsibility for infrastructure, Flexibility and agility to Click! market are likely not just to hit legal software, IT support and take advantage of business to learn more about the ground running, but with maintenance are all delegated opportunities: Your supplier how DPS Software a head start. A commercial to and managed through a relationships must give you can help your firm

SPONSORED EDITORIAL ISSUE 15 | OCTOBER 2011 24 briefing on COMPETITIVENESS & THE LSA www.legalsupportnetwork.co.uk

CASE STUDY INTEGRATED PRACTICE MANAGEMENT

Competitive case advantage Richard Wilson, DWF’s senior recoveries manager, on using Linetime Liberate SE to deliver commoditised work at a profit

One of the primary concerns “Our workflow and process- system, where cases are view into current cases as well around the Legal Services es need to be automated to automatically created and as the ability to directly influ- Act is that of increased reduce the admin burden on the debtor communication ence the firm. “Our clients can competition in the sector. fee-earners, while giving the is kick-started immediately. see a full case history, review Worse, that the competition best service to clients – which DWF’s clients can upload data cases and issue instructions might be more technologi- means we stay competitive.” directly into Liberate via an all via a secure internet con- cally equipped than many DWF provides recovery FTP web address. “It’s easy nection,” says Wilson. firms and make better use services for consumer or for the client,” says Wilson, Otis, the global elevator and of process automation and commercial debt, ranging from “and the first letters can be escalator business, is a prime client-facing systems to credit card loans and domes- going out the door in a matter example of how a client can drive down costs – even tic mortgages to asset-based of hours”. Once the case is on get the best out of such a very capable top-100 firms. finance (leased vehicles, eg) the system, the procedure is system. Otis has 25 UK credit One of the areas of legal and B2B debt for companies turned into a process. controllers, all of whom use work becoming increas- such as Otis, Anglian Water DWF’s Liberate system can B2C Online Case Tracking to ingly commoditised is debt review cases and correspond recovery. Top-50 firm DWF with DWF. “B2C gives Otis a operates a debt recovery full audit trail of transactions team, but instead of farming “It’s being able and reduces the risk of any out the work, it saw a way to to provide the errors. They can manage their keep it in-house and do it in debt recovery process more a competitive, profit-making benefits of more efficiently and ensure that way. To do that, though, it had transparency and they’re controlling costs.” to provide more client value Delivering more information while maintaining margins. client reporting that and transparency, as well as DWF had to both increase really sets us apart better reporting to clients, the amount of workflow and is a vital part in DWF’s com- process management within in terms of client petitiveness: “It’s being able the debt recovery unit, while service.” to provide these benefits that delivering more transparency really sets us apart in terms of and ease of use. DWF did this client service,” Wilson says. by using Linetime’s Liberate DWF, then, is in a very debt management system to and Portakabin. DWF chose also push claims en masse competitive position in a automate processes, drive Liberate because the system to the Claims Production commoditised market – using efficiency and deliver timely builds on workflow and proc- Centre, which issues claims technology to automate proc- case data directly to clients – ess automation to increase electronically, and then on to esses, drive down costs and cutting costs and increasing efficiency, reduce costs and the County Court Bulk Centre. create a fundamentally better value to clients. provide greater value to its Mass issuance, says Wilson, client experience. Just what Richard Wilson, DWF’s sen- clients – as Wilson puts it, it reduces workload and it’s Clementi would have wanted. ior recoveries manager says “means we can offer clients an faster – “and the court fees that “the market we operate in improved higher-volume debt are cheaper – a saving we can is increasingly competitive and recovery service”. pass on to the client”. commoditised, so it’s my job One really useful way to use Adding value directly to the Click! to make sure we’re as efficient technology in debt recovery client, the extranet element to learn more about as we can be, and that we is to allow for bulk work to in Liberate, B2C Online Case how Linetime can reduce costs”. be pushed straight into the Tracking, gives clients a clear help your law firm

SPONSORED EDITORIAL ISSUE 15 | OCTOBER 2011 25 briefing on COMPETITIVENESS & THE LSA www.legalsupportnetwork.co.uk

ANALYSIS INFORMATION MANAGEMENT

Discovering difference Thinking differently about your firm’s approach to e-discovery can create real competitive advantage, says Johannes Scholtes, chairman and chief strategy officer at ZyLAB

Alternative business scope of the disclosure in the delivers a project-based structures (ABSs) will give first instance. engagement and also tomorrow’s law firms the But e-discovery solutions provides proportional costs freedom to offer a combina- are often called for on a associated with the given tion of advice and other more project-based, ad hoc service. services under one umbrel- basis. Clients act only when As an example of how la, a change that could something has gone very this delivers a better serv- control of their information commoditise legal services wrong and litigation is already ice, we recently worked with assets and liabilities, the beyond anything we have under way. They then turn to an international, full-service environment is dynamic seen to date. Law firms that their trusted legal advisers – top-10 law firm in the US to and requires solutions that want to stay ahead of the you, one hopes – and expect deliver a 48-hour turnaround can scale and adapt to new curve need to act now. immediate assistance to in a high-profile e-discovery realities. To stay ahead of The area of e-discovery has deliver services at speed. case. With the deadline for the curve and retain that vital a bigger part to play in creat- What makes a client choose the ‘meet and confer session’ trusted adviser status, law ing competitive advantage one law firm over another in only three weeks away, there firms need to partner with than you might think – mainly this scenario? was extreme pressure on outside suppliers to respond in how firms can deliver better turnaround times. The project to new threats, such as services while maintaining cost included data from 10 custo- collecting and analysing data proportionality. Offering a superior legal dians, all stored in disparate in the age of social media, The current backdrop from service while keeping costs sources, including email (Lotus cloud computing, and the an e-discovery company’s proportional Notes, including password- increasingly litigious nature of point of view is identical to protected and corrupt files). our society in general. that of a law firm – volumes The speed and agility with The law firm was able, using By using ‘on demand’ of data created are growing which a law firm can react to our service, to deliver the information management and exponentially year over year, the litigation crisis ahead are required content for the ‘meet e-discovery services, or even ‘claim culture’ continues to obviously crucial. Also impor- and confer’ and ultimately bringing them in-house, law rise, and legal budgets have tant are the expertise and the reached a favourable settle- firms are able to handle an been crushed by the reces- amount of individual service ment. increased billable caseload sion. Clients are looking for the firm can provide. Last but with better speed and agil- ways to minimise the cost certainly not least, considering ity, while keeping the costs of legal actions, and they’re how fast legal budgets are Litigation response and proportional for the client. wising up. shrinking, is the associated readiness are moving This will deliver client satisfac- As they consider alterna- cost for these services – which targets tion that will, in turn, create tives, larger firms may even be needs to be perceived as increased and repeat business looking to bring e-disclosure ‘reasonable and fair’. Staying ahead of the competi- for the law firm. in-house. When they do, using Clients expect to receive tion is not just about choosing the right tools for the job can a superior service and gain the right framework – it’s also make all the difference. Early a return on their investment. about selecting a capable e- case assessment functionality That is why we at ZyLAB disclosure specialist partner. Click! embedded within e-discovery developed our hosted While the latest technologies to learn more about platforms – such as ours at platform, which addresses the enable great progress toward how ZyLAB can help ZyLAB – will help with the need for an agile response, putting clients and firms in your law firm

SPONSORED EDITORIAL ISSUE 15 | OCTOBER 2011 One-day cOnference Wednesday 9 nOvember 2011, LOndOn

The only event for chief operating officers and operational leaders in law firms

featuring an exceptional panel of cOOs, directors of administration and general managers from:

Norton Rose • Hogan Lovells • Salans • Clifford Chance • Addleshaw Goddard • Linklaters • Berwin Leighton Paisner • Allen & Overy • Bird & Bird • CMS Cameron McKenna • Bevan Brittan • Latham & Watkins • New Street Solutions • Pannone • CB Richard Ellis • PricewaterhouseCoopers • McGrigors • Morrison & Foerster • Irwin Mitchell • Kinstellar • Freshfields Bruckhaus Deringer • on...

• The rise and role of operational leaders in law firms • The challenges operational leaders face in a changing market • How operational leaders should respond