40
MARCH 2014 LEGAL PRACTICE MANAGEMENT 1 THE ONLY MAGAZINE FOR LAW FIRM MANAGERS BUSINESS INFORMATION FOR EVERYONE IN PRACTICE MANAGEMENT EXPERT COLUMNISTS AND ADVICE FROM PRACTICE MANAGEMENT LAW FIRM PROFILE High-risk boutique Proelium on advising in ‘unsafe’ and combat areas SPECIAL REPORT All change: We crunch the results of polling at the LPM conference BOOK REVIEW Morton Fraser’s Chris Harte reads Designing the Purposeful Organisation Growth, unpacked. How can SME law firms become rapidly scaling businesses? Going LPM LEGAL PRACTICE MANAGEMENT SEPTEMBER 2016 up?

LPM September 2016

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Page 1: LPM September 2016

MARCH 2014

LEGAL PRACTICE MANAGEMENT 1

THE ONLY MAGAZINE

FOR LAW FIRM MANAGERS

BUSINESS INFORMATION FOR EVERYONE IN PRACTICE MANAGEMENT

EXPERT COLUMNISTS AND ADVICE FROM PRACTICE MANAGEMENT

LAW FIRM PROFILEHigh-risk boutique Proelium on advising in lsquounsafersquo and combat areas

SPECIAL REPORTAll change We crunch the results of polling at the LPM conference

BOOK REVIEWMorton Fraserrsquos Chris Harte reads Designing the Purposeful Organisation

Growth unpacked How can SME law firms become rapidly scaling businesses

Going

LPMLEGAL PRACTICE MANAGEMENT

SEPTEMBER 2016

up

LEGAL PRACTICE MANAGEMENT3

SEPTEMBER 2016IN PRACTICE Follow us and talk to us on Twitter LPMmag

WELCOMEGrowing up is hard to do ndash but the need to grow is now something that law firms should stop shying away from and embrace wholeheartedly

Growth In other business titles itrsquod be so natural as to almost not need bothering to talk

about But Irsquove often had the feeling that many law firms like talking about strategic dreams of growth and dominance about as much as lawyers like talking about money with clients

This isnrsquot true across the board ndash but itrsquos true enough to need challenging A couple of years back commentators such as Stephen Mayson predicted that the England and Wales legal market would shed thousands of firms as the ABS-led wave of change swept through the sector ABSs havenrsquot had that effect (yet) but the recession shifts in PII insurance regulatory changes and technology-led competition have all taken their toll The results I feel havenrsquot quite come into clear sight but their indicators are there

Some firms are consolidating into groups (Jackson Canter for example) while others are realising or have realised that growing their businesses by acquisition or investment-fuelled methods is going to matter in a future where big business and entrepreneurs no longer limited by anachronistic regulation preventing non-lawyer ownership gobble up the legal work they can to supplement other business areas (such as membership accounting or consulting or finance and insurance) ndash or just buy into the market because they think they can do it better

The fear is and should be that they can But the real fear should stem from places closer to home

Clients want technology-enabled always-on low-cost availability of what they buy ndash whether they are consumer or business customers They also want value and services that are tailored to them

Staff (lawyers or not) want a real work-life balance and to work for businesses that reflect a future they are growing into not a past that belongs to their predecessors

Therersquos so much change and future vision in this issue I wonrsquot list it out for you Dive in and think those big thoughts your firm needs you to think LPM

Rupert Collins-White editor-in-chiefLPMmag | rupertwlsncouk

Many firms like talking about dreams of growth and dominance about as much as lawyers like talking about money with clients This needs challenging

05 Snapshot LPM gathers the monthrsquos headlines for SME law firms in one place

IN PRACTICE

13 Barry Davies at Douglas-Jones Mercer on the future of law firm models

14 Glyn Morris at Higgs amp Sons talks about cybercrime considerations

Book review Morton Fraserrsquos Chris Harte reads Designing the Purposeful Organisation

07 HR Agony Aunt Polly on swearing homeworking and summer treats

Law Firm Profile High-risk boutique Proelium on lsquoconflict lawrsquo and talent

FEATURES

COLUMNS

16 Doug Hargrove at Advanced Legal on repurposing tech for competitive advantage

INDUSTRY VIEWS

37 Nasstar CEO Nigel Redwood on the agile advantages of managed IT

18Janine Parker at Paragon on using broker-market mechanics to benefit firms

3 1

MINI SUPPLEMENTINSIGHTS LPM and Accesspoint analyse the 2016 LPM conference polling data

39 Linetimersquos Tony Klejnow on the benefits of paperless back-office processes

19

28

1 1

Natasha Rawley at ADDS on making your team aware of new EU data rules 27

08 LPM asks Brethertonsrsquo COO about making your business attractive to new talent

09 Your view Is your legal business ready for when the UK leaves the EU

Feature How SME firms can become bigger and bolder businesses

LEGAL PRACTICE MANAGEMENT4

SEPTEMBER 2016

Contact us

NOVEMBER 2016

VISIT LSNCOUKLPMB2016CALL RIKKI CLARK ON 0870 112 5058

EMAIL RIKKICLSNCOUK

BIRMINGHAM

THE ONLY EVENT FOR MANAGEMENT LEADERS IN SMALL

AND MEDIUM-SIZED LAW FIRMS

ONE-DAY CONFERENCE

LPMmagWersquore listening and we also have plenty to say We love Twitter ndash and if you love Twitter too share your thoughts with us

bitlylpmgroupLSN runs LinkedIn groups for thousands of people in legal business services and we run a dedicated LPM group too

wwwlsncoukpractice-managementFind practice management blogs news resources white papers case studies video and audio and much more online

0870 112 5058 or LPMLSNCOUKLegal Support Network20 Mortlake High StreetLondon SW14 8JN

Dictation services for this issue of LPM magazine provided by d u2 dic t a t e 2 u s

Rupert White is editor-in-chief of LPM magazine He has written about the legal sector since 2005 before which he endured years as an IT hack before tunnelling out with a plastic fork rupertwlsncouk

Patrick Wingrove is LPMrsquos assistant editor A history graduate and avid scuba diver he snuck into publishing in 2014 by hiding in the offices of the Illustrated London News patrickwlsncouk

Kayli Olson is our editorial assistant A Kingston Uni graduate she has spent most of her time here picking up British slang playing board games and managing Kingston Unirsquos newspaper kayliolsncouk

Sarah Cox is Legal Support Networkrsquos head of client services Want to advertise in LPM magazine or feature in our awesome advertorial section Then get in touch with her

sarahclsncouk

About usLPM magazine is published by Legal Support Network LSN is a media company focused solely on people in legal business services and management ndash whatever size or type of legal services provider they work for

We run LinkedIn groups with thousands of members across several areas from legal IT to legal process outsourcing Find our LPM group at bitlylpmgroup

LSNrsquos website is where you can find news views and resources from the established legal news providers and hundreds of suppliers to the legal industry all rolled into one

useful information feed wwwlsncouk

LSN also run the popular Legal Practice Management conferences tailored specifically for anyone working in management in SME law firms and ABSs Join us for the LPM Birmingham conference in Novemberwwwlsncouklpmb2016

Sign up for our weekly practice management e-newsletters which bring you the best of our practice management content and our social feeds every week wwwlsncouksubscribeezine

(

LEGAL PRACTICE MANAGEMENT5

SEPTEMBER 2016IN PRACTICE Follow us and talk to us on Twitter LPMmag

IN PRACTICE

A lot has changed in the world since our last Snapshot LPM readers In the wake of the EU referendum result we have a

new prime minister ndash and a new justice secretary Liz Truss is the first female leader of the justice ministry (good for diversity) but the third incumbent in succession to have no legal background Truss has also recently pledged to press ahead with plans to ditch the Human Rights Act ndash letrsquos hope the UK bill replacing it will last longer than previous English rights legislation

Other than a shift in government ranks the most obvious outcome of Brexit has of course been uncertainty Many SME law firms are now implementing strategies to handle likely post-Brexit instability set to affect them and their clients (see what some of them said on p9) Global firm Dentons on the other hand is using technology to turn the EU exit to its advantage Itrsquos developing a cognitive AI search engine tool to be used for Brexit-related contract reviews as part of a play to become a key adviser to companies impacted

SME firms may not have the resources to rear technology in this manner ndash but a new practice note from the Law Society might give them the confidence to use e-signature technology for commercial contracts making them more efficient and competitive Law Society president Robert Bourns said ldquoSolicitors are eager to take up any opportunity to innovate and this practice note will help them in making ever-increasing use of this small but significant improvementrdquo Neat

Innovation might be a top priority for legal businesses after a University of Leeds study suggested that ABSs may come to dominate in high-volume legal services The study by Leeds University Business School academics Sundeep Aulakh and Ian Kirkpatrick observed that the traditional partnership model is still dominant in legal ndash but that ABSs

ldquoBah they donrsquot need rightsrdquo thought John ldquoLetrsquos get this over with ndash wherersquos my iPadrdquo

Have you got a story or report for us Write to lpmlsncouk

Source SRA Risk Outlook report July 2016

of adults had a legal need in the past three years

people with legal needs instruct a solicitor or barrister

LEGAL NEEDSResearch released by the SRA shows that while a significant number of adults have legal needs few seek pro legal advice

54

63

IN N

UM

BER

SSNAPSHOT SIGNATUREMOVES

typically characterised by aggressively expansive ambitions may eventually come to control high-volume commoditised markets like personal injury

Refocusing attention on Westminster the government has said that it plans to clamp down on legal businesses that pursue ldquospurious claimsrdquo against military personnel This follows the news that London and Birmingham-based Public Interest Lawyers which submitted hundreds of allegations of misconduct by British troops is shutting down after investigation into its activities

Itrsquos certainly been an interesting period for politics and legal ndash perhaps there are more lsquosurprisesrsquo to come (but hopefully none that King John would be proud of) LPM

Edited by Patrick Wingrove

of adults believe that professional legal advice is too expensive

110

Itrsquos our business to make the complex simpleWersquore focused on delivering legal practice management solutions that fit and evolve with your business

Looking to improve your practice Then talk to us

Itrsquos the little things that make a big difference

wwwoneadvancedcomlegal

LEGAL PRACTICE MANAGEMENT7

SEPTEMBER 2016IN PRACTICE Follow us and talk to us on Twitter LPMmag

SWEETENING THE DEAL

HR AGONY AUNT

QI read about Eversheds offering free ice creams

to their lawyers during the heatwave in the summer With sweeteners like this how can smaller firms ever compete to get the best people

AWith all due respect to Eversheds there is a

difference between a perk and a gimmick A Mr Whippy ice cream van is a gimmick (and a flaky one at that ndash ho ho) Compare bringing in an ice cream van with offering coding lessons for lawyers ndash the latter is a new trend in large corporate firms such as Australian firm Gilbert + Tobin

To develop coding and programming skills alongside your legal skills is an attractive proposition for bright legal minds ndash and it could be good for the firm too if one of its 500 staff were to make a cost-saving technological breakthrough In terms of a perk it is the right fit for those firms Equally there will be something which is right for your firm ndash just donrsquot be distracted by the gimmicks

Q A senior employee completely lost his

temper with another employee on the phone with a litany of expletives over some missing documents Can I dismiss him for gross misconduct

A The technical answer is ldquoYou may be able to

depending on all the circumstancesrdquo (arenrsquot lawyers good at sitting on the fence) But is showing anger like this always bad Clearly expletives are inappropriate and the context may well mean this is bullying But in another context this could be sheer frustration Sometimes we get angry ndash this might be because it is serious (such as children crossing the road without looking) because something just keeps happening time and time again (our computer is too slow) or because we canrsquot do anything about something (Boris Johnson being foreign secretary for example) You might want to take the employeersquos outburst as indicative of one of these categories and see if there is

anything that you can do to help

Q We have a few staff successfully working

from home one day a week But for one employee itrsquos a complete shambles her internet is patchy she is sometimes hard to get hold of and she never calls in Shersquos good at what she does but is it worth it

A Letrsquos separate the solvable from the

irresolvable Her internet connection may not be something she can control

and itrsquos not an uncommon complaint but the communication deficit is entirely resolvable The employee needs defined expectations ldquoWe need you to phone in at least twice a dayrdquo And defined consequences ldquoOr elserdquo if she doesnrsquot meet them LPM

Polly Jeanneret is an expert in HR and an employment lawyer at Halebury to boot ndash shersquos seen and heard it all

Send her your HR questionsASKPOLLYLSNCOUK

Polly Jeanneret LPMs HR guru answers questions on dismissal homeworkers ndash and ice cream

THIS

MO

NTH

IN N

UM

BERS

THE ILFM ANNUAL SALARY SURVEY REVEALS THAT LOYALTY TO SMALLER FIRMS MAY NOT BE PAYING OFF FOR EMPLOYEES

of employees in medium to large firms

recieved a pay rise

LOYALTY PAYS

of employees in small firms recieved

a pay rise

of employees in small firms were

successfully retained

78 59 89

LEGAL PRACTICE MANAGEMENT8

SEPTEMBER 2016IN PRACTICE Follow us and talk to us on Twitter LPMmag

LPM ASKS

QWhy is it important to optimise your career

pages for mobile phones

AThe proportion of people using their mobiles to

access the internet is increasing rapidly Ofcom statistics badge us as a lsquosmartphone societyrsquo with phones overtaking laptops for getting online People are surfing while watching TV or in bed they are banking shopping and accessing social media ndash and they are looking for jobs If yoursquore not optimising your career pages yoursquore losing out on a large potential talent pool

The average attention span is about eight seconds and on a small screen you have to engage quickly Breaking down any barriers for potential candidates is therefore critical Recruitment is competitive and in the legal sector we are often looking for specific skills We canrsquot afford to lose candidates at key touchpoints

Optimising your legal business website for mobile devices sends a message ndash we are a modern firm we are tech-savvy we understand our market and our target audiences We also donrsquot want to discourage potential candidates new graduates or apprentices who could be our future workforce

QWhy do you need to monitor social media as

part of your recruitment strategy

AOur social media channels give us direct engagement

with candidates and they are a powerful tool to promote the brand You need candidates to

SALLY JONESCOO BRETHERTONSAfter speaking at this yearrsquos London LPM conference COO of Midlands and London firm Brethertons answers our questions on recruiting and retaining new talent at your firm

feel the culture of your business through social media so itrsquos important to monitor the interaction of both staff and followers in this very public arena We use social media as part of a multi-channel recruitment strategy ndash to advertise our vacancies get employees to push vacancies to their networks endorse our roles and culture and generate excitement about our opportunities We also use social media to research our candidates ndash it can be a valuable source of information and help us gauge the fit of future talent

QWhat should SME law firms consider when using

a recruitment agency

AThere are a number of considerations

l Do they understand the roles and do they understand the skills qualities and behavioural attributes you are looking forl Do they understand your business your strategies aspirations and plansl Do they understand your values and culture Do they understand the importance of this alongside the technical skillsl Do they specialise Are they generalist How well do they understand your target audience l What is the nature of the contract and what does it include and exclude Is it an exclusive arrangement and what is the period of engagement Will you need to work with other agencies to ensure good coverage of potential candidatesl How will they communicate

with you and what needs to be approved within what timescales

QWhat are some key considerations for direct

recruiting

AWe are all trying to get candidates from the same

small pool and we cast our net as widely as possible to get the best outcome and return We also want every hire to be a long-term success

With direct recruitment you have to be very clear on how you define potential candidates and how you select and contact them Confidentiality and communication are therefore key factors Getting the pitch right and being confident in negotiations are also important We approach direct recruitment for example by advertising on our website on specific websites and on social media We also use our networks and we have a great staff referral scheme in place

QHow do you create a powerful brand to aid

retention

AAt Brethertons we have a dedicated people

programme that goes to the heart of attracting and retaining great people It is about layers of connected

change ensuring what we do makes a difference and that we understand the impact of business change on our employees Brand is about giving people an understanding of who you are and your identity It gives people a sense of belonging and value and the knowledge that their contribution matters

You can keep good people and make employees proud to work in your organisation in several ways But always be clear on their contribution how it is valued how their performance will be managed and measured and how it aligns with your overall corporate goals LPM

LPM COMES TO BIRMINGHAM IN NOVEMBER

Book your place at LPMB 2016 NOW for just pound175+VAT early bird price

Email rikkiclsncoukwwwlsncoukLPMB2016

LEGAL PRACTICE MANAGEMENT9

SEPTEMBER 2016IN PRACTICE Follow us and talk to us on Twitter LPMmag

Now that the UK has voted in favour of Brexit we ask LPM readers ldquoDo SME firms need a plan in place for when the UK leaves the EUrdquo

Want to write us a letter You know that thing no one does anymore You can email us a letter for publication to lpmlsncouk or post us something to LPM magazine 20 Mortlake High Street London SW14 8JN Or get in touch through our LinkedIn group at bitlylpmgroup

Follow LPM on Twitter

LPMmag

NAVEED AHMED HEAD OF IMMIGRATION LAW ASONS SOLICITORSThe uncertainty and far-

reaching implications of the UK leaving the EU undoubtedly exposes SME law firms to greater risks which must be effectively managed Strategic planning at primitive stages of the UKrsquos departure from the EU could very well determine the future viability of many SME law firms Diversification may well be key to prosperity after the break and full service law firms that are engaged in a variety of legal sectors such as employment health education retail intellectual property and financial litigation will be well-placed to navigate the storm

GORDON STARK COOMURGITROYDIn a time of uncertainty it

is better to be prepared ndash having a strategic plan in place is important as is knowing when to act The plan should identify risks but also seek out opportunities Firms may need to make decisions about their future during this protracted period of acute uncertainty ndash knowing when these decisions need to be taken what the options are and what the associated lead times will be to execute them will all be key components of planning

SEPTEMBER 2016IN PRACTICE

ANNABEL HAMPSHIRE MANAGING ATTORNEY STRATAGEM IPMSME law firms are no exception when planning for the

inevitable fallout of a post-Brexit United Kingdom The uncertainty over when the UK will leave the EU and the consequences of legal and structural reform make planning difficult Firms are taking immediate steps to reassure clients as well as educate them about the challenges presented in their specific field For the IP sector changes to protection and exploitation strategy will require careful planning but more immediately a review of contractual obligations may be necessary to mitigate unfavourable or unexpected reinterpretations of terms (resulting from practical effects of Brexit) by any party to the contract

ELIZABETH WEST HEAD OF ORGANISATIONAL DEVELOPMENT REDDIE amp GROSE

In our sector (patent and trade mark attorneys) we compete with EU firms Our European work is a mixture of EU law and other international law but we expect EU competitors to take advantage of the Brexit publicity to try to grab a larger share of that work Our plan includes protecting the revenue stream but wersquove had to put that in place now ndash even before an Article 50 notice is served Wersquod advise all SME law firms to challenge their assumptions about who their competitors are and who they will be after Brexit ndash cheer up and strategise

NICK DAVIS HEAD OF RISK AND COMPLIANCE GEDYE amp SONS

The British governmentrsquos well-made plans may not hit their ideal timetable ndash European leaders will have to try and strike a balance between the wants of the UK the European parliament and the views of their own voters (not to mention their own electoral desires) This is clearly a complicated subject and extends across the areas of law that firms practise and the demographic of their workforces SME law firms need a flexible and constantly evolving plan to be able to advise their staff and clients current or new They also need to be able to demonstrate impartial and accurate views on how any potential changes that come as a result of Brexit affect clients first and them second As part of their plan SME law firms should review any guidance notes issued by the Law Society and the SRA ndash adopting any rules and procedures (particularly relevant would be any change to the General Data Protection Regulation and AML fourth directive) so that their firms are ready and well prepared But a plan shouldnrsquot be overly rigid because itrsquos currently too early to tell what if any impact Brexit will have on UK law

YOURVIEW

LEGAL PRACTICE MANAGEMENT9

Follow us and talk to us on Twitter LPMmag

NOVEMBER 2016

VISIT LSNCOUKLPMB2016CALL RIKKI CLARK ON 0870 112 5058

EMAIL RIKKICLSNCOUK

BIRMINGHAM

THE ONLY EVENT FOR MANAGEMENT LEADERS IN SMALL

AND MEDIUM-SIZED LAW FIRMS

ONE-DAY CONFERENCE

6338 LSN LPM Nov 2016 Book Now_03indd 1 30082016 0939

LEGAL PRACTICE MANAGEMENT11

SEPTEMBER 2016IN PRACTICE Follow us and talk to us on Twitter LPMmag

THE WAY TO WHY

BOOK REVIEW

One way of assessing the value of a book like this is by reference to the number of times it makes one think of something it can be applied to in your own career or organisation On that measure

alone Designing the Purposeful Organisation passes with flying colours

At the heart of Wilsonrsquos philosophy is the idea that to be successful organisations must be able to articulate compelling and inspiring reasons for their existence ndash not simply what they do but rather why they do it The usual poster boys for 21st-century business success are quoted as exemplars of this approach - Apple Google Microsoft Reference is also made to Simon Sinekrsquos TED talk (278 million views and counting) and related book Start With Why as a means of uncovering the primary reason for an organisationrsquos existence Indeed a key element of Wilsonrsquos writing style is to send the reader off at regular intervals to take in a TED talk or YouTube video or to reflect in more detail around the topic at hand This does at times make the book feel more like a business coaching session rather than a dry management treatise ndash which for the avoidance of doubt this reader sees as a definite plus point

While the stories around behemoths such as Apple and Google can be compelling I was more taken with the example of the African tax collection agency that Wilson was working with Rather than seeing themselves as taking money from people (the lsquowhatrsquo) he encouraged them to focus on their purpose namely to help fund new schools and hospitals across their developing nation (the lsquowhyrsquo) Articulating the why is also a key element of an organisationrsquos brand proposition Wilson reminds us that customers are more often than not buying why an organisation does something rather than simply what the organisation does Or put another way how many customers would be inspired to have brand loyalty for a firm which simply says that its fundamental reason for being is to maximise shareholder returns

Before anyone starts fulminating about the importance of financial returns Wilson does recognise that results matter However his concern is that they too often become all consuming A key pillar of the book is his belief (which he concedes may be controversial) that overly focusing on results is misguided and can create systemic barriers to better performance Or put more simply results measure our progress to a better future ndash they are not in themselves that better future

This is certainly something that chimed for me as the CEO

of a law firm Yes we all recognise the need to deliver improved financial KPIs However these are simply a means of measuring whether we are delivering value to our clients (given that clients are unlikely to be using and paying for our services where they do not perceive us to have any value) and are unlikely to be the things wersquoll look back on with pride in our dotage

This reassessment of the role of results is also central to one of the key conditions for a more purposeful organisation (and one which will particularly resonate with professional services firms) namely talent liberation Drawing on the work of Daniel Pink on personal motivation (for example Drive The Surprising Truth About What Motivates Us) Wilsonrsquos call is for firms to move beyond transactional performance (pay me X and Irsquoll deliver Y pay me a bit more than X and Irsquoll deliver a bit more than Y) Rather we need to help our people liberate the talent they have by playing to their strengths as opposed to the more traditional performance management model of fixing weaknesses

Wilson focuses particularly on how the proper articulation of purpose can engage millennials Borrowing from Laurence Boldtrsquos Zen and the Art of Making a Living he encapsulates this approach in three short questions What skills and other resources do you have What do you care about Whatrsquos stopping you from pointing A at B

It seems to be that in most law firm management seminars or discussions these days someone somewhere is lamenting the fact that they just donrsquot understand millennials And at last I have an answer for them ndash read Clive Wilson LPM

LPM reader discount ndash use code HRLPMB to get 20 off at wwwkoganpagecom

Designing the Purposeful Organisation How to Inspire Business Performance Beyond Boundaries by Clive Wilson

Publisher Kogan PagePublication date Feb 2015Price pound2999

Reviewer Chris Harte chief executive and partner at Morton Fraser

Have

heardyou

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LEGAL PRACTICE MANAGEMENT13

SEPTEMBER 2016COLUMNS

Barry DaviesPractice directorDouglas-Jones Mercer wwwdjmlawcouk

BARRY DAVIES PRACTICE DIRECTOR

ROLE MODELS

ABOUT Recent figures show that there are a shade over 130000 people on the roll of solicitors in England and Wales ndash 20 of those undertake an in-house role 80

are classed as employed An enormous number and this is before we consider the significant chunk of employees namely professional managers support staff and those lawyers who are not on the Law Society roll But lots of firms I speak with say lsquowe have too many partnersrsquo or they have reduced the number of lsquochiefsrsquo within their practice as part of their strategic planning

Where are we going with this What will the future firm look like What will its stakeholders (not necessarily shareholders) expect

The two facets that will impact upon the future will undoubtedly be generational attitudes and technology Though advancements in processing power will mean huge growth of AI systems over the next decade I think generational attitudes is the facet thatrsquos most interesting right now

Generation X lawyers (born between the early 1960s to mid-1970s) are often already partners This generation and the baby boomers before them are usually motivated by achievement and money Generation Y lawyers on the other hand (born in the 1980s or 1990s) are looking for something else Fearing that I sound like a textbook ndash specifically Frederick Herzbergrsquos theory of motivation hygiene ndash itrsquos not money thatrsquoll be the key factor in recruiting millennials but other drivers such as networks recognition quality of work and conditions

Developing reward and recognition strategies is

difficult enough for partners ndash so how does a law firm tackle its entire workforce A few years ago I held a discussion with a law firm partner and a question put to me was could the lsquoJohn Lewis modelrsquo fit a law firm This term is not only synonymous with the department store it has become a household phrase

Quite a few law firms have for some time now introduced a corporate partner ndash a limited company ndash as a partner within its practice with the intention of dealing with distribution of profits more efficiently or as part of a bonus pool So itrsquos quite interesting to hear that a highly regarded firm in the south west Stephens Scown has developed a similar model to the John Lewis theme

Whatrsquos different about this example is that a proportion of the firm is owned by a trust for its employees and not just its partners This gives the employees of the firm a greater sense of belonging and the added impetus to do well I am certain that some critics would question the mechanics of such a scheme and perhaps the barriers to entry such as defined profit levels but setting this aside it is a means of boosting staff engagement and eradicating the lsquothem and usrsquo mentality

With complications in all corners of law firm ownership new models will have to be explored to cover aspirations of all involved There could come a time when a crowdfunding option is explored generally and maybe the household name for staff stakeholder mechanisms in law firms will be the Stephens Scown model LPM

LEGAL PRACTICE MANAGEMENT14

SEPTEMBER 2016COLUMNS

In the April issue of LPM Stepien Lakersquos practice director Richard Hill brilliantly spelled out what to look for when trying to spot a lsquowhalersquo or big lsquophishrsquo ndash a situation where an

individual or firm is targeted researched and then duped into sending money to a cyber attacker

But just as awareness is essential so too is preparedness I thought it might be helpful to share some of the practical considerations that will help keep client funds safe (a requirement of principle 10 in the SRA handbook) including some things wersquove done in our firm in response to these very real threats

Perhaps the most feared event among all law firms is the very well-publicised lsquointercepted emailrsquo (dubbed the lsquoFriday fraudrsquo) But would we be surprised by just how many firms lawyers and clients freely provide bank details within the body of text in an email

This is an area where we recently tightened our procedures and introduced an explicit rule all bank details provided by a client especially in any email communication must be verified by a lawyer (by reconfirming those details with a person they know) The lawyer then signs to say that they have checked them

This has produced some unexpected benefits particularly for one client who provided bank details to us within the body of an email for remitting the proceeds of sale for his family business of pound32m When the lawyer contacted him to verify that the bank details were correct the client realised that he had transposed two numbers

Clearly this is a serious education piece not only for those responsible for finance and the lawyers within the firm but externally for the firmrsquos clients

There are a number of practical points to bear in mind when it comes to day-to-day security matters how do your lawyers communicate the client account details to its clients and do you always attempt to obtain client details for the remittance of funds at the start of the transaction for instance

Additional considerations might be when did you last review any bank payment elements in your email disclaimers terms of business and client care letters Is your payment procedure well-defined and documented (not just the finance element but also those relevant to clients and lawyers) And do you use any law firm identification checklists

These important issues should remain on the agenda so that theyrsquore constantly in colleaguesrsquo minds with regard to maintaining safe and efficient practices

There are some excellent resources available from your bank that can help to educate your colleagues and there are so many simple steps we can all take to make people aware of the problem Have you tried sending a few test phishing emails to individuals within the firm for

GLYN MORRIS FINANCE DIRECTOR

ABOUTexample to see how they respond

But what then If you are confronted with the metaphorical warning cry of lsquothar she blowsrsquo how will you and your people react You may need to have created a well-communicated process for dealing with a phishing incident

The 1851 classic Moby Dick tells the story of one manrsquos obsessive quest for revenge on a giant white whale ndash we might want to take just a hint of Ahabrsquos obsession in our approach to tackling the issue of cyber attacks Although if we can avoid the whale in the first place all the better LPM

THAR SHE BLOWS

Glyn MorrisFinance director Higgs amp Sonswwwhiggsandsonscouk

0800 328 0272 | wwwarchivestoragenet

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LEGAL PRACTICE MANAGEMENT16

SEPTEMBER 2016COLUMNSSPONSORED EDITORIAL

DOUG HARGROVE THE TECHNOLOGIST

DISRUPTION TO GO

ABOUT Change isnrsquot anything new itrsquos just another word for evolution But lsquodisruptionrsquo is certainly one of the words of the decade and one that is

usually connected to revolution ndash a significant alteration to the status quo and one that has far more immediate impacts

Disruption is also the go-to word for business commentators ndash especially when it comes to lsquodisruptive techrsquo ndash talking about new business start-ups or innovations Take the very latest craze to hit the headlines ndash Pokeacutemon Go has seemingly gripped the world these last few weeks with stock valuations heading skyward and comments about the app lsquodisruptingrsquo mobile gaming But therersquos nothing disruptive about the game it takes and utilises technology thatrsquos been around for nearly a decade (geolocation and augmented reality) and applies it in a new way Itrsquos that application of technology thatrsquos causing the disruption

Businesses like Uber and Netflix have built compelling business models on the groundwork of technology that is now pervasive (the smartphone and broadband internet respectively) Therersquos a lot here that firms can learn from itrsquos not necessarily about inventing new technology but about finding ways to use existing technology to create a new approach

So what opportunities are there for law firms to disrupt This can be looked at in two ways ndash disruption to the existing law firm business model and disruption to the user experience The first scenario has already been covered at length and is nothing new for the legal market there are already plenty of law firms out there

looking to change the way a law firm delivers its services to its clients and prospects ndash from franchise models to virtualised law firms Disruption to the law firm business model has been an ongoing force ever since the term ABS became associated with legal practices

The second scenario is a different matter It seems legal clients have been patiently waiting for the lsquodisruptive service deliveryrsquo model to come and there is plenty of opportunity out there for firms to position themselves differently with the modern consumer of legal services

Take a brief example of where old (or rather existing) technology can be used to differentiate ndash videoconferencing Itrsquos a fairly ubiquitous piece of technology thanks to the rise of Skype Facetime and the webcam which gives an instant user experience and a one-to-one connection that bridges the remoteness of a phone call and the need to travel for a meeting It doesnrsquot take much of a leap to imagine a service that allows consumers to access a lawyer instantly using this technology (maybe even a concept that combines the franchise model with an Uber-style app ndash connecting clients to the next available expert from a selection of associated law firms) The point is you donrsquot have to invent something new to be a disrupter ndash donrsquot be afraid to take existing technology and repurpose it to gain a competitive advantage

There are plenty of consumers of legal services who are willing to try out a new service or offering in the search for that great new experience ndash and for those law firms prepared to take the risk and disrupt there really is an opportunity to catch lsquoem all LPM

Advanced LegalRevolutionary solutions for legal services Contact Doug on 01476 573 718wwwadvanced-legalcouk

Advisory

Design

Development

Delivery

Support

If you would like to know morethen please get in touch

wwwsoftclcominfosoftclcomFREEPHONE 0808 164 0000

Leeds office15 St Pauls Street Leeds LS1 2JG

Manchester officeExchange Quay Building 8 Suite 21 Salford Manchester M5 3EJ

Helping Law Firms to improve business performance through their use of IT

C

M

Y

CM

MY

CY

CMY

K

SoftwareCloud_A4_Advert_V4pdf 1 20082016 1130

LEGAL PRACTICE MANAGEMENT18

SEPTEMBER 2016COLUMNS

JANINE PARKER THE BROKER

WHAT PRICE EXCLUSIVITY

Itrsquos that wonderful time of year when the annual bombardment of brokers begins on your never-silent telephones All of them can ldquocarry out a full market exerciserdquo for you that will of course save you money

But whatrsquos the reality The marketplace is still murky and as a profession we donrsquot help ourselves by keeping it opaque So letrsquos objectively consider many of the claims brokers make attempt to clarify the true mechanics behind the market and consider how to best utilise it for the benefit of your firm

Since 2000 and the demise of the Solicitors Indemnity Fund competition for solicitors professional indemnity has increased This hasnrsquot always been generated through the number of insurers but the ever-increasing number of brokers who purport to be experts in this very niche area of insurance This has increased pressure on insurers to lower prices (a good thing for clients up to a certain point) but this pressure combined with some extreme economic factors has contributed to many insurers withdrawing from the market over the past decade

Competition is good for consumers and it encourages innovation to make sure that brokers and insurers can differentiate themselves by developing their product offering

Some brokers organise lsquoexclusiversquo arrangements with insurers often segmented by the number of partners within the firm ndash which is a very artificial way of dividing up the profession But this is the marketplace wersquore in today and itrsquos worth looking a little closer at these lsquoexclusivesrsquo

All the direct access points are listed in the Law Society buyer guide and in practice itrsquos only a handful of brokers who actually hold the exclusive with direct access to the underwriters It is essential to note that these exclusive agreements are not always lsquotiedrsquo arrangements The broker is not bound to place all their business with their one exclusive insurer and itrsquos often the case that those brokers who hold the exclusive arrangement also enjoy strong relationships with the open market insurers

To increase distribution brokers who hold exclusive arrangements will offer access to other brokers who wish to take advantage of the exclusive products available These brokers donrsquot have their own facilities There are many commercial reasons for opening an exclusive to other brokers but itrsquos important to note that the extra broker in the chain will dilute your relationship with the placing broker and ultimately your insurer Marketing materials can often be unclear as access to exclusives is readily used ndash but in reality these brokers will be approaching another broker to do this

Often law firms will be unaware of the number of brokers in the chain and will unwittingly be paying additional brokerage and fees unnecessarily Direct access allows for better communication between your firm and insurers which can often lead to more competitive pricing Removing a broker from the chain can lead to the process of claims handling being more efficient and effective as there are less obstacles in the chain of communication

In summary no one broker has direct access to every insurer and it is possible to approach more than one broker and not be at risk of flooding the market If using more than one broker be clear who you would like them to approach and be aware whether they have to go through another broker to ultimately reach the insurer LPM

ABOUT

SPONSORED EDITORIAL

ParagonBetter broking for legalContact Janine on 020 7280 8200wwwparagonbrokerscom

LPMLEGAL PRACTICE MANAGEMENT

SUPPLEMENT SEPTEMBER 2016

BUSINESS INFORMATION FOR EVERYONE IN PRACTICE MANAGEMENT

LPM INSIGHTS

Sponsored by

How do SME law firm management leaders see the future

LEGAL PRACTICE MANAGEMENT20

SEPTEMBER 2016LPM INSIGHTS

ALL CHANGE

22WHATrsquoS NEXT We analyse the 2016 LPM conference polling data

2 1 COMMENT Accesspointrsquos Richard Roebuck on legalrsquos increasing digital dangers

Change and transformation are words that strike fear into the most hardened of legal management hearts because they are hard to do and even

harder to make stick But change must happen inside todayrsquos SME law firms to make sure they stay in business in tomorrowrsquos world

At this yearrsquos Legal Practice Management conference in London we polled our audience of law firm management delegates on a range of topics Some questions wersquove been asking since our first LPM conference back in the misty era of 2012 Much has changed in the world since then (new UK governments drones are now lsquoa thingrsquo Donald Trump) but legal not so much The rise of the ABS has been slow (though impactful) and the recession has for many businesses faded into a distant memory compared to the Brexit debate

But SME law firms rightly smell a real need for change in the wind ndash and perhaps though they seem to find it hard to name that change the clues are legion Letrsquos find some

LPM London 2016 delegates named the greatest hurdles to their firmsrsquo growth or further success as lsquoacquiring high-quality staffrsquo and the lsquoinability to create change within the firmrsquo Might the solution to one lie in the other Great talent wants to flock to fresh and vigorous businesses and younger legal eagles are increasingly shy of throwing their lots in with the fusty world of partnership Law firm leaders must look at how their businesses are run and who runs them and how people work if they are to attract great people ndash and in doing so they will create the change they seek

Herersquos another 52 of delegates named lsquoclient pressures on costrsquo the factor thatrsquos having the biggest impact on the SME legal market ndash but when asked how important price is when winning business 67 said itrsquos just lsquoone of a range of important factorsrsquo while 21 said itrsquos lsquonot as important as other things such as relationshipsrsquo This is a disparity I canrsquot quite understand but it doesnrsquot sound like the SME legal market truly gets the shift thatrsquos happening on the client side and how much change needs to happen inside firms to meet this challenge

Read on and come to your own conclusions but I think the clues are now becoming obvious I hope your firm sees them too LPM

Rupert Collins-White editor-in-chiefLPMmag | rupertwlsncouk

You donrsquot as the song goes need to be a weatherman to know which way the wind is blowing in the legal market ndash but just because the clues are there doesnrsquot mean you can be complacent about acting on them

CONTENTS

FEATURES

LEGAL PRACTICE MANAGEMENT21

SEPTEMBER 2016LPM INSIGHTS

MORE TECHMORE SECURITY

INTRODUCTION TO THE RESEARCH FROM OUR SPONSOR RICHARD ROEBUCK MANAGING DIRECTOR ACCESSPOINT

After a recent period of uncertainty it would now seem that most firms are confident about their future especially in light of Brexit Whatrsquos also certain is

that most firms are very conscious that to compete they will need to change and adapt themselves for the challenges ahead

With growing concerns about the lack of high-quality people available and what appears to be a reliance on quality individuals driving more lucrative fee-earning work is it time for a gear change

Perhaps the dawn of high-volume low-margin fixed fee work which many firms feared has now arrived As always with change there are challenges to be faced but for those clever early adopters there lies opportunity Making light of the more process-driven tasks and finding more effective efficient ways of completion to deliver client-facing benefits seems key to the wider future of the fixed fee legal landscape

With the growing acceptance of cloud technology and the increasing introduction of new software applications and solutions the legal world has moved on at an improved pace this past couple of years And the world is now clearly keen for more ndash to satisfy its desire for a more accessible and mobile working environment What is key for this trend is that the lsquoquality of the deliverablersquo has an ongoing programme of improvement that benefits both the firm and its clients

As progress pulls us forward there will always be elements arrayed against us Alongside the opportunities hiding in the polling from LPM this year therersquos also a sense of fear and concern around possibly the biggest threat to risk and security there is right now ndash the dark byproduct of technological success cybercrime

Cybercrime is fast growing with ever more complex attacks making headlines It is now one of the most common criminal offences in the UK An increasing number of individuals are exploiting the speed and anonymity of the internet to commit a wide range of criminal activities having no conscience and knowing no borders

It isnrsquot our fault websites get hacked but poor internet safety habits can put us at risk Reusing passwords or using weak passwords make us easy targets for identity theft Remembering multiple passwords can be a pain but there are web services and associated applications that can help such as two factor authentication quality mail management systems URL threat protection and mail encryption

For many firms the biggest threats tend to be by way of the ever-open door into our networks and devices ndash email

Our eagerness to respond almost instantly to emails throughout what will be for most an already pressured day is perhaps the dominant daily activity to foster an unwanted lapse in security In the past 18 months alone I have seen three firms that were truly caught out ndash some with the potential for significant financial penalty by opening email attachments The most common lsquogotcharsquo is an email that appears to have come from the office scanning platform whereby the email address has been cleverly spoofed to appear legitimate (for example downstairscopiermyfirmdomaincouk) There are so many existing and newly circulating threats of this calibre and type that even the most aggressive of filtering systems struggle to keep up

Do you know the name(s) of your copiers and the associated email addresses Do you stop to think before opening the innocuous Word attachment ldquoDoesnrsquot our scanner usually send PDF files Why has a covering note not been included with the attachmentrdquo Stop think and call for advice

Another infamous scam is the spoofing of email addresses of key people within your firm ndash for example an email to the head of accounts appears to be from the senior partner ldquoPlease send pound17000 to account X at your earliest convenience and confirm once processedrdquo it says Stop ndash is this your agreed process

As the demand grows and we extend our reach out into the online world so cybercrime advances ever closer seeking unauthorised access through our front door Quite clearly online is the future but we need to embrace it with the necessary skill sets and processes in place for our convenience wellbeing and prosperity LPM

There are so many existing and newly circulating threats of this calibre and type that even the most aggressive of filtering systems struggle to keep up

Accesspoint are independent legal IT specialists who consult on a variety of information technology-related issues offering the best in IT solutions to help firms work more effectively

Contact Richard and the team on 0203 189 2645wwwtheaccesspointcouk

LEGAL PRACTICE MANAGEMENT22

SEPTEMBER 2016LPM INSIGHTS

SME law firms are in a battle for survival Whether they know it or not they have huge challenges to face in the next few years ndash around succession planning technology replacing lawyers and being

used by competitors to attain a competitive edge and catering to clients who increasingly want cost predictability transparency and availability

These market pressures were addressed at the LPM conference in May 2016 which was attended by over 100 delegates all SME legal management leaders The delegates were polled on the day about what they thought of the pressures facing them and how theyrsquore planning to overcome them ndash and their answers provide valuable insight into the SME legal market

The polling results show that LPM conference delegates were aware of the severity of the challenges they face Three-quarters of legal management leaders we polled at the 2016 LPM conference thought that the challenges theyrsquoll face in the next five to 10 years will be lsquomorersquo or lsquomuch morersquo serious than in past years And 58 of delegates thought that the challenges in the next year to two years will be lsquomore serious than in past yearsrsquo

How they will face these challenges depends at least partly on attitude ndash whether they believe they can win or will eventually lose the war Fortunately most LPM conference delegates were optimistic about their firmsrsquo futures - 81 were either lsquocautiouslyrsquo or lsquoveryrsquo optimistic about their place in the legal market of the future

This doesnrsquot necessarily suggest that theyrsquore confident in the market overall particularly after the market instability brought by Brexit Legal management leaders might believe their firm is the only one thatrsquoll survive due to expertise in a particular area or niche In any case it indicates market confidence and a confidence in the ability of their firm to compete and succeed

But is this optimism misplaced in a market where the future is increasingly uncertain and competitive Are firms really ready for change on a huge scale as their confidence might suggest What are the issues currently keeping SME legal leaders awake at night

In this report LPM shines a light on the SME legal market through the eyes of our legal management leader audience ndash those driving their firms through an uncertain new world

WHATrsquoS NEXTChange is on the agenda for LPM firms but how to address the biggest challenges and which ones to face first is a tough call finds Patrick Wingrove

More serious than in past yearsMuch more serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch less serious than in past years

51

14

8

3

24

More serious than in past yearsMuch more serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch less serious than in past years

How would you rate the challenges your firm faces in the next five to 10 years

More serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch more serious than in past yearsMuch less serious than in past years

58

17

6

0

19

More serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch more serious than in past yearsMuch less serious than in past years

How would you rate the challenges your firm faces in the next year to two years

What is the greatest hurdle to your firmrsquos growth or further success

What is the greatest hurdle to your firmrsquos growth or further success

LEGAL PRACTICE MANAGEMENT23

SEPTEMBER 2016LPM INSIGHTS

TIMES THEY ARE A CHANGINrsquo The overriding theme of the 2016 LPM conference was change ndash how firms can implement it the drivers behind it and the various blockers to it But the first step to change is gauging which factors will have the biggest impact on the legal market Just over half of legal management leaders we polled thought client pressures on cost like demanding fixed fees will have the biggest impact while just over a quarter thought it will be competitors attaining a market advantage using technology

How quickly do firms need to respond to these oncoming market pressures Well 86 of LPM conference delegates thought that change needs to happen in their firms within the next two to five years But 14 said that their firm doesnrsquot need to change significantly perhaps because theyrsquove beaten the rest to the punch their legal business is somehow immune to new pressures ndash or they have their heads in the sand

Legal has traditionally been resistant to change and itrsquos not surprising that some firms still are says Sean Stuttaford COO at Essex firm Thompson Smith and Puxon (TSP) and 2016 LPM conference delegate ldquoThere are still firms out there where partners donrsquot have computers on their desks ndash theyrsquore stuck in their ways and just point blank refuse to

52 26 5 12 5

develop their business for the futurerdquoBut legal management leaders willing to implement

change may still find it difficult as 60 of LPM conference delegates polled thought that lsquochange isnrsquot really understood at their firmrsquo

GROWING PAINSJust over a quarter of LPM conference delegates also thought that an inability to create change within their firm would be the greatest hurdle to the businessrsquos growth or further success ndash though Stuttaford at TSP suggests voters might have blamed the traditional partnership business model for the same reason

But acquiring high-quality staff was considered to be the greatest hurdle for growth or success by 36 of delegates Rebecca Patterson HR manager at Kent firm Thackray Williams and 2016 LPM conference delegate says that she agrees with this result ldquoOur firm has a particularly tough time finding quality support staff ndash we could perhaps stand to invest more in competency frameworks and performance management and training opportunities to aid recruitment and retentionrdquo

William Robins operations director at lsquodistributedrsquo firm Keystone Law and a 2016 LPM conference speaker says

12 36 27 13 12

Lack of fundsAcquiring high-quality staffInability to create change within the firmTechnologyThe traditional partnership business model

Out of these which factor is having the biggest impact on the SME legal market

Client pressures on cost (eg fixed fees)Technology creating advantage for competitorsConsolidationDifficulty in finding routes to growth (eg funding)Something else

What is the greatest hurdle to your firmrsquos growth or further success

LEGAL PRACTICE MANAGEMENT24

SEPTEMBER 2016LPM INSIGHTS

offering a more flexible remote or mobile working set-up for everyone in a firm is an excellent way to attract talent (Keystonersquos model of course is founded on remote working) Perhaps the majority of legal management leaders polled at the 2016 LPM conference agree since their firms have either adopted a flexible remote or mobile working set-up are planning to adopt one or are considering adopting one ndash though there are other advantages to remote working such as reducing overheads In any case the results indicate that the SME legal working landscape is becoming considerably more flexible

But remote working doesnrsquot work for everyone Mary Mocklow CEO at West Midlands firm Talbots Law and 2016 LPM conference delegate says that their high-street set-up wouldnrsquot allow it ldquoThe majority of our staff are client-facing and need to be present at the office ndash and while there are other staff at Talbots that might benefit from remote working you canrsquot have a policy for one and not for allrdquo

CYBER THREATSTechnology was clearly a significant concern for legal management leaders who attended the 2016 LPM conference Patterson at Thackray Williams says some firms have had a hard time finding software that caters to their needs as a business and an LPM conference poll seems to back this up just under half of legal management leaders polled at the conference thought project teams should write law firm software indicating a desire for cross-department input into its creation But the poll also indicates that legal software providers have to a large extent been meeting their clientsrsquo needs

The rising threat of cybercrime was also a clear concern for LPM conference delegates ndash 92 of SME legal management leaders said their firms have cyber risk on their management meeting agendas Stuttaford at TSP says ldquoItrsquos something firms need to be constantly aware of and take precautions against not just by purchasing good firewall and antivirus software but by educating staff about password discipline authentication processes and suchrdquo

32 18 14 33 3

Is cyber risk on your management meeting agenda

92

5 3

Yes No Dont know

Is your firm moving to a more flexible workingremote or mobile working set-up for everyone in it

YesNoConsidering itWe already do itDont know

LEGAL PRACTICE MANAGEMENT25

SEPTEMBER 2016LPM INSIGHTS

PRESSURES AND PRICINGClient pressures on cost was also a major concern for legal management leaders polled at the conference so it may not be surprising that just over half of them said 50 or more of their firmrsquos work is some form of fixed fee This doesnrsquot necessarily suggest that the other half arenrsquot open to the concept of fixed fee ndash Mocklow at Talbots points out that fixed fees work for certain types of work ldquoHigh-street firms like Talbots can benefit greatly from fixed fees which is why 75 of our work is fixed fee but itrsquos more difficult to apply to firms that specialise in something like admiralty lawrdquo

The industry seems to think that the value of service has been lost to the price obsession in some areas but not in others ndash and while pricing is clearly a vital issue for SME firms 88 of legal management leaders polled at the LPM conference thought that itrsquos lsquoone of a range of important factorsrsquo or lsquonot as important as other thingsrsquo Patterson at Thackray Williams says that maintaining a good relationship with clients is often more important than pricing though pricing can be a means to achieving client satisfaction ldquoIt also depends on the client ndash in something like conveyancing first-time buyers might be looking for fixed fees or the cheapest price but for commercial clients that may not be as important as reputation or relationshiprdquo

TREASURE MAPPINGLegal process mapping often used by lsquobig lawrsquo and making inroads into SME legal could potentially make SME firms a great deal more efficient and therefore more competitive Two-thirds of legal management leaders polled had heard of process mapping and 79 thought that it is relevant to the business of law Stuttaford at TSP says he agrees ldquoFirms should look at their processes learn from them and figure out how to improve those processes ndash this question really made us look at what TSP has done so far in terms of what legal processes wersquove mapped and whenrdquo

To sum up LPM conference delegates were aware of the challenges that face them but were mostly optimistic nonetheless This may be because they know they need to change and in spite of the fact that change isnrsquot really understood at their firms are planning to mend their ways to meet future market pressures ndash generally putting the client first while keeping talent and technology high on their agendas LPM

Are aware of this thing called legal process mapping

66

34

Has the value of service been lost to the price obsession

23

23

54

Yes No Depends on the service Dont know

Yes No

How important is price in winning business

8

4

67

21

CriticalMore important than almost all factorsIts one of a range of important factorsNot as important as other things such as relationshipsIts one of the less important things in reality

What is the greatest hurdle to your firmrsquos Are aware of this thing called legal process mapping

LEGAL PRACTICE MANAGEMENT27

SEPTEMBER 2016COLUMNSSPONSORED EDITORIAL

Welcome back LPM readers ndash the new school term has started summer is (pretty much) over and the UK is back in full throttle after the summer break And what a break itrsquos been at

File Queen HQ (wersquove taken the time to get our clients up and running with augustprojects as well as started our new Instagram feed filequeenadds)

With the start of the new learning year wersquore focused on the education of you lovely LPM readers ndash with our attention turning back to the General Data Protection Regulation You may remember that in our last LPM article we ran through the 12 steps to tackle the GDPR helped by the awesome people at the Information Commissionerrsquos Office ndash wersquove provided a link to their 12-step resource via our website wwwarchivestoragenetnewsgdpr

Over the next three columns wersquoll be taking these steps and breaking them down for you ndash starting with step one awareness The File Queen (myself) and the team at ADDS have been promoting this step as the most important for all legal practices

ldquoWhyrdquo we hear you holler Well this step is the all-important life raft that unites your practice and team members to help you in the GDPR fight for survival (dramatic I know)

Getting the team on board ndash this buy-in needs to include all ranks of staff ndash from the managing partners to your suppliers But how do you do this Well here are some File Queen tips for when we at ADDS are rolling out projects

Lunch and learn ndash with a register People love to eat and be social so get your legal business to book in a couple of lunch and learn sessions Donrsquot limit this to one date ndash you must run at least two or three so people have the option of which dates to attend Make sure you make a register for those that actually turn up (we all know a calendar acceptance doesnrsquot mean theyrsquoll actually appear) This will allow you to chase down the members of the team you need to get on board for the next one

Have some decent sandwiches nibbles and soft drinks and give the team an overview of the GDPR Run through the 12 steps and make sure you educate them on why everything is so important (make sure you mention the increased fines and audits) During this time let the team know that there are several steps along the way that yoursquoll need their help and support for and which you wonrsquot be able to achieve on your own Tell them that the businessrsquos reputation and brand is on the line and that you need everyone on board to lend a helping hand and spread the word

Another great File Queen tip at this stage is also to get some additional funding from the practice manager for a wine and quiz night at the end of the lunch and learn periods This can be part of your social gathering on a Friday straight after work ndash with some more nibbles and wine Assign people to teams and have a GDPR quiz The winning team gets an award and everyone has fun and learns at the same time Follow our twitter feed as wersquoll be tweeting some great questions to ask thefilequeen GDPRQUIZ

We know itrsquos a lot to organise but there are only four months left in 2016 and GDPR practices must be in place by 25 May 2018 And believe me when you have to roll out rather hard core legislation you have to make it fun and interactive to get people on board LPM

ABOUT

NATASHA RAWLEY THE FILE QUEEN

EDUCATING YOUR PROS

ADDSSaving firms from paper hellContact Natasha on0800 328 0272wwwarchivestoragenet

LEGAL PRACTICE MANAGEMENT28

SEPTEMBER 2016FEATURES

28

Patrick Wingrove talks to the founders of Proelium Law about their work providing legal advice in high-risk environments and conflict zones and the challenges of setting up shop in a new and risky area of law

Legal commandosProelium

Compared to the day-to-day lives of Proelium Law founders and partners Richard Stephens (above left) and Adrian Powell (centre) the average lawyer leads a pretty humdrum life Though UK-based the

firm has a strong international focus ndash Stephens and Powell regularly travel to provide legal and business advice to companies and individuals in high-risk professions or working in hazardous environments across the globe including conflict zones in Iraq Syria and Afghanistan Powell says that itrsquos a challenging but exciting area of law to be in and that ldquono two days are ever the samerdquo

The firm was established as an ABS in November 2015 allowing Powell and Stephens to operate as partners although Stephens isnrsquot a lawyer Powell qualified as a solicitor in 2004 after spending 11 years of his career in the British army and post-2006 worked on various high-risk projects around the world ndash giving him the inspiration for Proelium He says ldquoThe idea came to me in Baghdad in 2009 while working for a private security company as a legal adviser ndash I thought lsquoWhy isnrsquot there a firm doing thisrsquo But I soon realised that I needed someone on the ground who wasnrsquot a lawyer to help make it happenrdquo

That person was Stephens He previously served in the Royal Marines worked as a Whitehall-based strategic planner for the UK government and commanded a special operations regiment (which is why we couldnrsquot show you his face but itrsquos a nice issue of LPM) He now works primarily on the business development side of Proelium ldquoJoining Adrian who Irsquod previously worked with on projects around the

LAW FIRM PROFILE

LEGAL PRACTICE MANAGEMENT29

SEPTEMBER 2016FEATURES

world at a firm meant I could do fascinating and important work with the credibility that being a partner in a regulated business providesrdquo he says

Their work has certainly been interesting Proelium has cast its net far within the niche high-risk sector ndash advising UK-based service providers on the complexities of working in hostile environments conducting business and human rights due diligence and ensuring anti-money laundering counter terrorist-financing and anti-bribery compliance for companies intending to run in high-risk areas or conflict zones to name a few Recently theyrsquove also been working on developing capability for national intelligence organisations overseas ndash but for fear of being jailed for treason Stephens and Powell didnrsquot elaborate hellip

Powell says that the challenges companies face in these areas are numerous ldquoTherersquos a real technical knowledge in understanding how organisations physically work overseas These companies are good at what they do but that doesnrsquot necessarily translate into being business-savvy when it comes to operating in frontier markets ndash thatrsquos where Proelium adds valuerdquo For example after a client was recently exposed on an arms deal they were able to quickly discern liability and ensure that all necessary agencies and departments were appropriately informed

Powell and Stephens joke about how theyrsquore the number-one firm in their sector ndash admitting that to their knowledge theyrsquore the only firm that specialises in this area of law They added that itrsquos an untapped niche in which Proelium will be a pioneering force but which has also recently come onto the radar of a larger firm Theyrsquore alluding of course to Proeliumrsquos recent venture with Harrison Clark Rickerbys ndash a joining that combines Proeliumrsquos experience working in high-risk jurisdictions with the manpower and existing defence and security expertise of

HCR Powell says ldquoWhat they donrsquot have is our connections and our experience They like the idea of the sector because they see it as an interesting area and the partnership will allow us to offer a wealth of different legal services while letting us focus on what we do bestrdquo

As part of their ambitions for Proelium Powell and Stephens are keen to train a new generation of lawyers whorsquoll specialise in the high-risk sector ldquoWe have confidence in what the younger generation has to offer and we want them in our industry to continue our work in this relatively untapped areardquo says Powell Stephens adds that itrsquos also a matter of succession planning ldquoWe want the firm to operate long into the future but we donrsquot necessarily want to be running it ourselves for the next 20 yearsrdquo Proelium currently employs two interns as part of this commitment including University of Surrey law student Ruby Jamieson (pictured) She says ldquoWorking [at Proelium] has given me loads of insight already ndash itrsquos very niche

very new and Irsquove really enjoyed helping develop the business I feel that itrsquoll open a lot of doors when I graduaterdquo

In terms of expansion Proelium has recently opened a new office in the City of London Powell says that his home was originally the firmrsquos practising address but a large portion of their client-base is in London ldquoand we couldnrsquot keep having our meetings in coffee shopsrdquo

But Powell and Stephens are firm believers in the concept of remote working which works particularly well for their business

ldquoMost of our clients are either in London or outside the EU so Irsquom always away but all my phone calls are redirected from the new office to my mobile so I can keep in touch with clients whether Irsquom in Dubai or Baghdadrdquo says Stephens Powell adds that he feels remote working has the added benefit of keeping staff happy by letting them work from home which he says certainly makes him more productive as a fee earner

Proelium isnrsquot looking to expand into areas it has no interest in like family law but theyrsquore taking a keen interest in the emerging area of cyber law and are considering taking steps into that world ldquoLike high-risk law no onersquos really wrapped their arms around cyber law yet Therersquos cyber law in the US but it doesnrsquot exist per se in the UK except in terms of data protectionrdquo

When asked what advice they could give to SME firms based on their unique experiences in their sector Powell and Stephens said firms should know the areas of law they practise inside and out Powell says ldquoWersquore concerned with being experts in our field ndash a lot of our clients have peoplersquos lives in their hands and are not in the business of nonsense which is why they come to us We give sound researched legal advice based on experience and if we donrsquot know something we send the client to someone who doesrdquo LPM

ldquoCompanies are good at what they do but that doesnrsquot necessarily translate into being business-savvy when it comes to operating in frontier markets ndash thatrsquos where Proelium adds valuerdquo

Proelium

Two fee earners four total staff

Offices City of London Wirral Cheltenham

Specialisms International criminal commercial and conflict law due diligence sensitive investigations

LPM FACT FILE

ldquod2u is the UKrsquos number one outsourced transcription service for medical and legal professionals and highly competitive all over the world We pride ourselves on saving our clients time and money as well as offering state-of-the-art security and a first-rate servicerdquo Daryl Leigh CEO dictate2us

LPM magazine has agreed a special deal for its readers with dictate2us ndash 5 off your monthly

transcription bill for one year if you sign up through the dedicated LPM link or call and quote LPM2016 when signing up You can trial the service for free before committing

CUT COSTS INCREASE EFFICIENCYAll firms could benefit from outsourcing transcription to dictate2us ndash but even more so with our LPM deal 5 off your first year

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Use d2u and enjoy the benefits ofbull Fast turnaround timesbull Secure and confidential servicebull Secetarial cost reductions of up to 60bull Guaranteed 985 minimum accuracybull iPhone Android and Blackberry apps with one-hour turnaroundbull 100 output - only pay for the time you talkbull Free no obligation trial

This special LPM magazine reader deal only relates to customers that execute an agreement for a minimum term of 12 months with a minimum monthly commitment of 500 minutes LPM magazine sought two law firm references for dictate2us to verify its claims for quality and delivery The 5 deal only applies to the first paying year the customer is with dictate2us LPM magazine is not responsible or liable in any way for work done by dictate2us and is an advertising referrer only

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SPECIAL READER OFFER

The d2u Transcriber app is free to download from Apple and Android app stores and BlackBerry App World

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LPMLEGAL PRACTICE MANAGEMENT

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LEGAL PRACTICE MANAGEMENT31

SEPTEMBER 2016FEATURES

Patrick Wingrove speaks to management leaders from SME and top 100 law firms that have recently achieved significant growth to find out how to go from acorn to oak tree

FROM MINNOW TO

For many SME firms growth is the goal ndash but it doesnrsquot have to happen in the ways that many have scaled in the past The era of organic slow quiet steady partnership development over decades is

increasingly at odds with a fast-paced digital world Strategies for growth in the legal market are now closer than ever to the rest of the business world ndash and any size firm can learn how to do it

Big or small there are similar tools in the box for making growth happen and similar challenges Lessons abound but some of the best can be taken from those firms not far outside the famous lsquotop 100rsquo legal businesses in the land ndash those that have already grown up and now have the top tier in their sights There are also lessons to draw from smaller but rapidly scaling law firms

There are many growth strategies for organic and acquisitive growth ndash and no easy answer for which is right for your firm To shine a light on the subject wersquove spoken both to SME and top 100 firms about growth and how to do it (and importantly how not to do it)

MAMMOTH

LEGAL PRACTICE MANAGEMENT32

SEPTEMBER 2016FEATURES

MODELS OF GROWTH According to the Lawyer the two fastest growing firms in the top 200 this year are Midlands-based Knights and lsquodistributedrsquo firm Keystone Law ndash currently placed 119 and 122 in the 2015 UK 200 rankings but whose revenue will now put them well inside the 2016 top 100 (due for release October 2016) Both attribute their growth to non-traditional business models ndash and very different non-traditional models at that

Knights corporatised in 2014 to remove the barriers from its decision making processes which CEO David Beech says has been the key to its growth ldquoEquity partnerships donrsquot grow particularly quickly because itrsquos hard to achieve consensus and make decisions that enable fundamental or rapid growth among equity partnersrdquo

Knights acquired Oxford-based Darbys earlier this year ndash a move largely behind the revenue increase that will put them in the top 100 ndash and completed the transition inside three months which Beech says would have been next to impossible under their old business structure ldquoNot only was a quick turnaround good for the books it saved significant time and money that could be invested elsewhere in the businessrdquo he says

Top 100 firm Simpson Millar is one step

ahead of Knights The firm broke the glass ceiling to become a top 100 firm in 2015 and like Knights the firm attributes its growing success to corporatisation ndash but in a different manner

It sought to be and was eventually acquired by PLC Fairpoint Group in 2014 Simpson Millar continues to run as an LLP under the same management team and existing trading brands but as a business unit within Fairpoint

Managing partner Peter Watson says that one of the key reasons to pursue this particular growth strategy was to provide an injection of capital for MampA ldquoWe completed the sizeable acquisition of Colemans last year for example which we were only able to do with considerable investment from Fairpointrdquo

Being part of a PLC has also given the firm access to strong MampA and project management capabilities ldquoAcquiring Colemans doubled the business overnight ndash for something like that you need strong MampA experience and access to that team within Fairpoint was crucial in getting the deal across the linerdquo says Watson Simpson Millar also built a strong digital strategy launched new products and focused on pricing ldquoCall it fixed fees or packaged fees the point of it was to say to consumers

Square One Law

Revenue pound5m

31 fee earners 53 total staff

Offices Newcastle-upon-Tyne

Specialisms Commercial corporate property employment EU and competition law finance litigation private client

LPM FACT FILE

Knights

Revenue pound40m (year end 2017)

375 fee earners 450 total staff

Offices Chester Cheltenham Newcastle-under-Lyme Derby Oxford Hale

Specialisms Full service firm

LPM FACT FILE

LEGAL PRACTICE MANAGEMENT33

SEPTEMBER 2016FEATURES

lsquoWith us you know exactly what yoursquoll get and how much itrsquoll costrsquordquo

PEOPLE PLEASERSThe ability to implement change has also been an important part of delivering a growth strategy This isnrsquot necessarily surprising ndash polling at the 2016 Legal Practice Management conference showed that legal business managers thought it was one of the greatest hurdles to a firmrsquos growth or success only topped by acquiring high-quality staff In Knightsrsquo case the two challenges were addressed together Beech says Knightsrsquo corporate rather than partnership structure also allows it to recruit talented people without having to deal with the inherent politics of an equity partnership

ldquoAcquiring the best talent has been a central part of our growth strategy ndash if a candidate can help the business through expertise or client following we can just recruit themrdquo he added

But a successful growth strategy incorporating talent isnrsquot just about recruiting quickly as we analysed in the July 2016 issue of LPM ndash itrsquos about recruiting well Firms also need to make themselves an attractive prospect for legal talent in order to grow

William Robins operations director at Keystone Law says his firmrsquos lsquodispersedrsquo model allows it to do that by offering new fee earners the chance to work remotely with less supervision ldquoWersquore typically hiring about a lawyer a week ndash bringing their expertise fee-earning capability and client following with them ndash and that is the core part of our growth strategyrdquo The firm has buttressed its recruitment capability by hiring a director of recruitment to focus almost entirely on lawyer enrolment (recruiting talent to recruit talent ndash neat)

Though the distributed model may not be for everyone says Robins implementing some form of flexible mobile or remote working should be part of any firmrsquos growth strategy because it allows firms to increase their fee-earning capability without accruing fixed overheads such as office premises

And there are other ways to be talent-attractive As a core part of its growth strategy Newcastle-based firm Square One Law ndash which achieved 30 growth in the

last financial year ndash has pledged to create a supportive and inspirational team environment offering high-calibre work to attract the best talent Ian Gilthorpe senior partner at Square One says ldquoGood people want to be inspired to be valued for what they do and feel as though theyrsquore making a contribution The key is to engage with all your staff to facilitate a culture where staff feel happy at work work for each other trust each other and ensure that they see the value in what they do ndash if you do that more talent will comerdquo

He added that itrsquos important for

recruitment to convey staff satisfaction to the outside world which Square One has achieved by including staff video-testimonials on its website

But recruiting is only half of an effective people strategy ndash the other is retention Simpson Millar has attempted to create an environment that its talented staff wonrsquot want to leave Says Watson ldquoToo many firms worry about what will happen if their rainmaker goes somewhere else and takes clients with them ndash so they put the shackles on make them feel unhappy and make it so that they canrsquot realise their full potentialrdquo Creating such an environment makes firms an attractive target for lateral hires when they should be building a place people want to join

PRACTICE AREASSME legal businesses donrsquot necessarily need to change their business models completely to achieve the same growth as

Thorntons

Revenue pound20m

209 fee earners 430 total staff

Offices Dundee Edinburgh St Andrews Perth Cupcar Kirkcaldy Anstruther Arbroath Montrose Forfar

Specialisms Full service firm

Keystone

Revenue pound202m

198 fee earners 230 total staff

Offices London Bristol Isle of Man Australia

Specialisms Corporate and commercial dispute resolution property

LPM FACT FILE

LPM FACT FILE

Equity partnerships donrsquot grow particularly quickly because itrsquos hard to achieve consensus and make decisions that enable fundamental or rapid growth among equity partners David Beech CEO Knights

Simpson Millar

Revenue pound316m

322 fee earners 539 total staff

Offices Birmingham Bristol Cardiff Cheadle Hulme Gateshead Kingston-upon-Thames Lancaster Leeds Park Place Leeds St Pauls Street (head office) London Manchester Newcastle

Specialisms Full service firm

LPM FACT FILE

LEGAL PRACTICE MANAGEMENT34

SEPTEMBER 2016FEATURES

our examples but removing blockers from decision-making making themselves more attractive to talent and finding the right funding for growth are increasingly important and the partnership structure may not enable it

But of course that means asking some turkeys to vote in a Yuletide election Fortunately there are other ways to achieve impressive growth mainly investment andor expansion into new geographic or practice areas

Watson says that Simpson Millar wouldnrsquot have been an attractive prospect to Fairpoint had the firm not spent time growing organically by expanding into new areas of law

ldquoWe went from being a predominantly trade union PI firm to having a broad base of 16 types of work ndash with strong heads in charge of each committed to driving growth in their departments ndash which gave us a large boost in revenuerdquo The firm achieved this through small acquisitions of other firms that had expertise in particularly lucrative areas of law

But firms shouldnrsquot just look at expanding in lucrative areas ndash they should focus on areas where their reputations deliver an advantage Scotlandrsquos Thorntons for example ndash which last year leapt from 134 to 108 in the 2015 UK 200 rankings ndash invested in six departments as part of its growth strategy

Thorntons joint managing partner Scott Milne says ldquoWe didnrsquot exclude other areas but we saw that these areas were profitable and that more importantly we had considerable expertise in them ndash we also considered that these are areas that are unlikely to be affected by future economic downturnrdquo This included investing in niche areas of law where the firm has a geographic competitive advantage ldquoWersquore lucky to be surrounded by some of the best farmland in the UK ndash wersquore well known for our expertise in rural business law which is why we invested heavily in itrdquo

ORGANIC V ACQUISITIONIn several ways choosing an effective growth strategy very much boils down to MampA versus organic growth ndash every business model talent or area expansion strategy appears to revolve around one or both But which is the best to achieve the kind of growth thatrsquoll propel firms to a lsquohockey stickrsquo on their revenue forecasts The short answer is it depends on whatrsquos best for a firm at a given time It either

needs to fit the firm ndash or the firm needs to change to fit the goal

Beech says that acquisition has been excellent for Knights because itrsquos a fast and effective form of expansion ndash the acquisition of Darbys more than doubled its revenue But MampA poses a significant challenge to finding firms with the right cultural fit

ldquoFirms need to establish a single culture in order to implement growth ndash everyone needs to be working towards the same goalrdquo He added that when a firm completes a merger or acquisition that firm has to be integrated from day one which is much more difficult if it has a significantly different culture Knights is planning to continue recruiting and complete more acquisitions in the next year to maintain the growth curve

Of course the big problem with acquisition is money Robins at Keystone says his firm lies at the opposite end of this

INFORMATION IS EMPOWERING

Lemington Spa-based firm Wright Hassall has a specific goal of breaking into the top 100 and as part of its growth strategy expanded into areas of the UK where its expertise is highly sought after ndash using customer relationship management in the background to underpin the firmrsquos activities in specific areas Martyn Wells IT director at the firm says ldquoWersquove zoomed in on specific industry sectors that we know are performing well in the Midlands sectors where we have a superb reputationrdquo Expanding geographically as Wells outlines needs data to get right Thorntons for example identified various lsquomicro-marketsrsquo in Scotland close to its base of operations ldquoWe acquired a firm in St Andrews because itrsquos like a micro-economy (or micro-market) that doesnrsquot seem to be affected by price drops in the residential market elsewhererdquo says Thorntons joint managing partner Scott Milne Knights has another take on the geographic targeting idea ndash it intends to stay out of the large cities (London Manchester Leeds for example) and expand into areas where there is little competition As David Beech CEO at Knights explains ldquoLast September we acquired a small team in Chester of about 11 lawyers and now thatrsquos expanded to just over 70 ndash and the main reason wersquove been able to do that is because there isnrsquot a lot of competition thererdquoUltimately this all comes down to research finding out what to invest in or where to expand and perhaps most importantly finding out what clients want

LEGAL PRACTICE MANAGEMENT35

SEPTEMBER 2016FEATURES

spectrum to the way Knights has grown emphasising organic growth finding innovative means to attract talent using technology to drive efficiency and branching out into new areas of law or new markets to achieve significant growth

Square One Law also espouses the organic route ndash believing that firms with growth in mind should focus on ensuring their external brand reflects the businessrsquos internal culture and behaviours of its team creating lsquosynergyrsquo between the business and its clients

Gilthorpe says ldquoMergers ndash and there is no such thing as a true merger ndash and acquisitions can be a distraction as you look to create a new culture and separate the wheat from the chaff and this can soak up a lot of energy that would otherwise be put to use in driving the progression of the business and the focus on client servicerdquo

The best option for some firms may be a

calculated combination of MampA and organic Thorntons for example having made several acquisitions is now focusing on organic growth moving away from geographical expansion and towards developing locations and its brand

Watson at Simpson Millar sums the mixed approach up thus ldquoItrsquos a mixture Acquisition is still very much a part of the mix but in parallel to that itrsquos important to demonstrate that yoursquore developing ongoing work rather than being driven solely by acquisitionrdquo

There are clearly many different ways to achieve healthy and assertive growth though there are no easy answers as to which way is right for your firm But it is clear that growth doesnrsquot have to happen in the ways many have previously achieved it ndash innovation and lateral thinking are the means of achieving significant growth (which might one day propel you into the top 100 you never know) LPM

LEGAL PRACTICE MANAGEMENT36

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

INDUSTRY VIEWS

36LEGAL PRACTICE MANAGEMENT

Legal is becoming an ever more digital industry giving firms the chance to become more efficient flexible agile and collaborative

INDUSTRY VIEWS INDEX

ONLINEOFFICES

36

SPONSORED EDITORIAL

INDUSTRY VIEWS

37 INTERVIEW

Paperless processLinetimersquos Tony Klejnow explains the benefits of using matter management software for law firms and their clients

39 INTERVIEW

Virtual expansionNigel Redwood Nasstarrsquos CEO talks about the advantages of having a managed flexible IT infrastructure

LEGAL PRACTICE MANAGEMENT37

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT37

Competition and price pressures and an increasingly digital client base are all significant drivers for law firms to become paperless

businesses Tony Klejnow Linetimersquos managing director says firms could achieve competitive advantage by introducing paperless solutions across their businesses ndash but a particular lsquoeasy winrsquo area is matter management

ldquoFee earners are required to keep detailed records of their cases but the amount of time and money they waste physically printing filing looking for collaborating on and updating files is alarmingrdquo says Klejnow Law firms have traditionally been reluctant to adopt paperless

workflow solutions he adds because workflow doesnrsquot apply to 99 of fee earnersrsquo work ldquoBut if they adopted paperless solutions in their back office processes they could reduce costs without affecting client service boost productivity and promote collaboration ndash making them more efficient flexible and cost effective and making them more competitive in an ever-changing legal marketrdquo

MATTER MATTERSDocument and matter management tools ndash like those in Linetimersquos legal software product Liberate ndash electronically store and organise all case documentation in an online database Klejnow says that there are two immediate benefits of paperless matter

PAPERLESS PROCESS

Tony Klejnow managing director at Linetime talks to LPM about the benefits of the paperless office ndash starting with filing and back office processes

INDUSTRY VIEWS

Linetime is a specialist provider of Microsoft-based practice and case management solutions Clients include mid-tier law firms and in-house legal departmentswwwlinetimecouk

ABOUT THE SPONSOR

SPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT38

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT 38

management The first is reducing paper and storage costs

ldquoIf case documentation is electronically stored once a case is finished you no longer have a five-inches-thick file that has to be stored for six years ndash which has to reside somewhere and costs firms time space and moneyrdquo The second is eliminating filing time ndash for example instead of printing and filing emails and attachments fee earners drag and drop emails directly from Outlook into the database ldquoand attachments are automatically stripped from emails and appropriately filedrdquo says Klejnow

And Klejnow says paperless filing systems donrsquot just facilitate efficiency this way ndash they also improve general process efficiency by facilitating collaboration between fee earners Solicitors can use document and matter management to view and work on matters at the same time a difficult if not impossible prospect when working with paper files Klejnow says ldquoWithout document management legal professionals work in silos but with it they immediately share datardquo He adds that Liberate has an additional collaboration tool to help further improve collaborative efficiency in firms ldquoIf I choose to lsquocollaboratersquo a document with you on Liberate Outlook will prompt you to review that document by simply acknowledging the notificationrdquo

In this respect moving to become a paperless business provides greater flexibility for fee earners who can collaborate with colleagues working remotely or in different offices Klejnow says ldquoPaper files can only reside in one location but electronic files can be accessed from any office and when working from home or with clientsrdquo On the other side of the coin having digital files maintains a greater level of productivity in a law firm office ldquoIf your colleague is absent from the office you can easily find documents that you might have otherwise wasted a significant portion of your day looking forrdquo he adds

Improved external collaboration is also a benefit that firms can reap from paperless matter management With an electronic system you can go into a case history bundle documents into one PDF file and quickly submit that to the third party improving collaboration between fee earners and clients who want to do everything online This has the added benefit of improving accuracy and facilitating greater efficiency by involving clients in the process ldquoGood matter management software should also let you push e-forms to clients to be filled in and that information is automatically transferred straight to the online database ndash which saves fee earners

time and is a more accurate because the information doesnrsquot have to be constantly re-enteredrdquo says Klejnow

This extra level of collaboration within legal businesses that hasnrsquot been possible until now has long been needed because it improves efficiency and productivity which makes the business more profitable and competitive Klejnow adds that what firms save by adopting matter management they should reinvest in becoming fully paperless digital businesses

ldquoCase management solutions can improve efficiency to an even greater extent and keep firms competitive in the age of the alternative business structuresrdquo

VISIBLE COMPLIANCEIn response to firms reluctant to adopt paperless technologies like document and matter management for fear of losing delicate information to cybercriminals Klejnow says those systems provide an additional level of security ldquoTaking data and attachments out of Outlook and storing them on a database is much more secure than leaving them on your hard drive If you leave

your laptop on a train for example all your important data is safely stored on a server and not instantly accessible by opportunist criminalsrdquo

Document and matter management also offers a greater level of security in fee earner and client communications ldquoIf I want you to check that the data we have for you is accurate Liberate will

direct you to a page holding your data and at the same time it will push out an SMS text with a pin code to your phone Unless you input the code you canrsquot get to the web page ndash which means if one of your solicitors accidentally sends an email to the wrong person or itrsquos intercepted it doesnrsquot matter The data stays safe ndash this level of security is crucial in this age of cybercrimerdquo

These security features clearly have significant benefits for compliance which is important in a market increasingly dictated by regulation including the relatively new General Data Protection Regulation says Klejnow

ldquoCompliance officers need to be seen by regulators to have monitored and reviewed everything thatrsquos happened in their firm which is considerably easier with a paperless system Liberate has lsquoversion controlrsquo which allows compliance officers to keep tabs on every change made to a document as well as a compliance module which lets them view whatrsquos happening on a case (to ensure that money laundering checks have been carried out and so on) and records the fact that yoursquove reviewed thisrdquo LPM

Without document management legal professionals work in silos but with it they immediately share data

INTERVIEW

LEGAL PRACTICE MANAGEMENT39

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LPM readers may already know the Nasstar Group ndash but by a different name Nasstar was launched by regular LPM-contributor e-knownet to consolidate four discrete hosted

managed IT businesses (including e-knownet) after a period of significant acquisition Nigel Redwood chief executive officer at Nasstar says merger and acquisition and consolidating brands is challenging but having a flexible hosted IT infrastructure makes the process significantly easier

ldquoManaged IT services are enormously beneficial for firms that are expanding or consolidating particularly after MampA in terms of time and productivity cost savings and flexibilityrdquo He adds that by just having managed desktops firms can attain competitive advantage by reducing overheads and becoming more flexible and agile

Nasstar has experience helping SME firms with their IT systems after MampA and knows what problems to look out for creating unity among staff used to using different systems and processes the cost and time it takes to expand an IT infrastructure and the geographic distance between new offices

Redwood says that MampA can be an excellent way for legal businesses to expand into new sectors but that consolidating new departments using different IT systems and processes is challenging

ldquoOur acquisitions for example introduced new sector focuses for us in the SME legal market ndash wersquove consolidated these into a wider service base under Nasstar and facilitated unity among staff using virtual IT solutions

rdquoVirtual IT solutions help facilitate unity across the business by providing a level of consistency in an IT infrastructure Everyone immediately uses the same applications on the same versions from wherever theyrsquore working creating unity faster collaboration across teams and effective information sharingrdquo Hosted IT infrastructures are also continually updated giving staff instant access to new updates applications and technologies as they become available

The next significant challenge firms face after MampA is expanding their IT infrastructure to accommodate an influx of new staff ndash but Redwood says virtual IT solutions let firms expand their IT infrastructure at the flick of a switch

ldquoWith virtual IT firms arenrsquot held back by the size of their servers or the amount of computer power theyrsquove got ndash they simply call their IT provider and ask for an upgrade when previously theyrsquod have been

subject to lengthy and costly IT upgradesrdquo Virtual IT solutions are also easy to budget for

Redwood says ldquoYoursquore not going to be surprised by an increased fixed asset expenditure ndash services like those offered by Nasstar are an operational cost and fixed per user per month through a scalable cost modelrdquo

Geographic distance inhibiting collaboration between merged offices is also a key consideration for firms after MampA but virtual IT solutions solve this problem Redwood says a virtual IT infrastructure can minimise travel through the use of hosted virtual meeting rooms and video technology Staff can use this technology from virtually anywhere which is why it also lends itself well to remote flexible or mobile working set-ups

VIRTUAL WORKPLACERemote working is becoming an increasingly present feature of the legal landscape because of its cost saving and recruitment and retention advantages ndash the majority of firms at the LPM conference 2016 were moving towards a flexible remote or mobile working set-up or already had one

Redwood says virtual IT solutions better enable staff who work remotely ldquoHosted managed desktop solutions for example let staff work with the same applications from any device in the world safely and securelyrdquo

But remote working isnrsquot only about enabling the current workforce itrsquos about attracting future talent Redwood says that millennials donrsquot necessarily want to work as their predecessors did ndash they expect greater flexibility in the workplace which at one level can be achieved by remote working facilitated by a managed desktop

ldquoAnd itrsquos not only about attracting millennialsrdquo he says ldquoSME firms with flexible working set-ups are becoming more attractive to experienced legal talent who may be frustrated by the rigidity of their firmrdquo As a firm expands its workforce in this manner firms with virtual IT solutions reap the lsquodoublersquo cost saving benefits of not having to expand their premises or IT infrastructure accordingly

Some firms are resistant to remote working based on hosted IT services believing they arenrsquot secure ndash but Redwood says that argument ldquocan be put to bedrdquo

ldquoFor an in-house IT team to have the level of security that an organisation like ours can deliver is near impossible financially as well as in terms of the

VIRTUALSANITYNigel Redwood CEO at Nasstar talks to LPM about how managed IT can help SME firms achieve competitive advantage by making them more agile and flexible

LEGAL PRACTICE MANAGEMENT40

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

INTERVIEW

level of systems and technologies they deployrdquo Cybercrime is of course a scary and constantly evolving threat but Redwood points out that virtual IT systems have dedicated teams monitoring these threats evolving cyber defences and changing systems accordingly

ldquoThis capability not only makes [firms] a lot more secure but gives peace of mind in terms of compliancerdquo

ONLINE ADVANTAGE Redwood says virtual IT infrastructures donrsquot just pertain to lsquobig lawrsquo but to SME firms as well ndash perhaps more so

ldquoVirtual IT systems are a way for SME firms to stay competitive against their larger

counterparts and ABSs ndash it gives them a greater ability to expand it lets them adopt more flexible and agile models and is easy to budget forrdquo Firms can also expect virtual IT solutions to enable better alignment of IT resources to business needs enhanced usability with anywhere anytime access and in-built business continuity

But the greatest advantage virtual IT offers SME firms over big law is agility Redwood says ldquoBig IT departments in firms can be slow to react cumbersome and held back by the limitations of hardware infrastructure and security issues ndash all of that is removed with a solution like ours and the customer has access to fast-moving agile ITrdquo LPM

ABOUT THE SPONSOR

Nasstar is a provider of managed IT services and tailor-made cloud hosted solutions ndash delivering innovative secure and agile IT to help clients accomplish their business objectiveswwwnasstarcom

Page 2: LPM September 2016

LEGAL PRACTICE MANAGEMENT3

SEPTEMBER 2016IN PRACTICE Follow us and talk to us on Twitter LPMmag

WELCOMEGrowing up is hard to do ndash but the need to grow is now something that law firms should stop shying away from and embrace wholeheartedly

Growth In other business titles itrsquod be so natural as to almost not need bothering to talk

about But Irsquove often had the feeling that many law firms like talking about strategic dreams of growth and dominance about as much as lawyers like talking about money with clients

This isnrsquot true across the board ndash but itrsquos true enough to need challenging A couple of years back commentators such as Stephen Mayson predicted that the England and Wales legal market would shed thousands of firms as the ABS-led wave of change swept through the sector ABSs havenrsquot had that effect (yet) but the recession shifts in PII insurance regulatory changes and technology-led competition have all taken their toll The results I feel havenrsquot quite come into clear sight but their indicators are there

Some firms are consolidating into groups (Jackson Canter for example) while others are realising or have realised that growing their businesses by acquisition or investment-fuelled methods is going to matter in a future where big business and entrepreneurs no longer limited by anachronistic regulation preventing non-lawyer ownership gobble up the legal work they can to supplement other business areas (such as membership accounting or consulting or finance and insurance) ndash or just buy into the market because they think they can do it better

The fear is and should be that they can But the real fear should stem from places closer to home

Clients want technology-enabled always-on low-cost availability of what they buy ndash whether they are consumer or business customers They also want value and services that are tailored to them

Staff (lawyers or not) want a real work-life balance and to work for businesses that reflect a future they are growing into not a past that belongs to their predecessors

Therersquos so much change and future vision in this issue I wonrsquot list it out for you Dive in and think those big thoughts your firm needs you to think LPM

Rupert Collins-White editor-in-chiefLPMmag | rupertwlsncouk

Many firms like talking about dreams of growth and dominance about as much as lawyers like talking about money with clients This needs challenging

05 Snapshot LPM gathers the monthrsquos headlines for SME law firms in one place

IN PRACTICE

13 Barry Davies at Douglas-Jones Mercer on the future of law firm models

14 Glyn Morris at Higgs amp Sons talks about cybercrime considerations

Book review Morton Fraserrsquos Chris Harte reads Designing the Purposeful Organisation

07 HR Agony Aunt Polly on swearing homeworking and summer treats

Law Firm Profile High-risk boutique Proelium on lsquoconflict lawrsquo and talent

FEATURES

COLUMNS

16 Doug Hargrove at Advanced Legal on repurposing tech for competitive advantage

INDUSTRY VIEWS

37 Nasstar CEO Nigel Redwood on the agile advantages of managed IT

18Janine Parker at Paragon on using broker-market mechanics to benefit firms

3 1

MINI SUPPLEMENTINSIGHTS LPM and Accesspoint analyse the 2016 LPM conference polling data

39 Linetimersquos Tony Klejnow on the benefits of paperless back-office processes

19

28

1 1

Natasha Rawley at ADDS on making your team aware of new EU data rules 27

08 LPM asks Brethertonsrsquo COO about making your business attractive to new talent

09 Your view Is your legal business ready for when the UK leaves the EU

Feature How SME firms can become bigger and bolder businesses

LEGAL PRACTICE MANAGEMENT4

SEPTEMBER 2016

Contact us

NOVEMBER 2016

VISIT LSNCOUKLPMB2016CALL RIKKI CLARK ON 0870 112 5058

EMAIL RIKKICLSNCOUK

BIRMINGHAM

THE ONLY EVENT FOR MANAGEMENT LEADERS IN SMALL

AND MEDIUM-SIZED LAW FIRMS

ONE-DAY CONFERENCE

LPMmagWersquore listening and we also have plenty to say We love Twitter ndash and if you love Twitter too share your thoughts with us

bitlylpmgroupLSN runs LinkedIn groups for thousands of people in legal business services and we run a dedicated LPM group too

wwwlsncoukpractice-managementFind practice management blogs news resources white papers case studies video and audio and much more online

0870 112 5058 or LPMLSNCOUKLegal Support Network20 Mortlake High StreetLondon SW14 8JN

Dictation services for this issue of LPM magazine provided by d u2 dic t a t e 2 u s

Rupert White is editor-in-chief of LPM magazine He has written about the legal sector since 2005 before which he endured years as an IT hack before tunnelling out with a plastic fork rupertwlsncouk

Patrick Wingrove is LPMrsquos assistant editor A history graduate and avid scuba diver he snuck into publishing in 2014 by hiding in the offices of the Illustrated London News patrickwlsncouk

Kayli Olson is our editorial assistant A Kingston Uni graduate she has spent most of her time here picking up British slang playing board games and managing Kingston Unirsquos newspaper kayliolsncouk

Sarah Cox is Legal Support Networkrsquos head of client services Want to advertise in LPM magazine or feature in our awesome advertorial section Then get in touch with her

sarahclsncouk

About usLPM magazine is published by Legal Support Network LSN is a media company focused solely on people in legal business services and management ndash whatever size or type of legal services provider they work for

We run LinkedIn groups with thousands of members across several areas from legal IT to legal process outsourcing Find our LPM group at bitlylpmgroup

LSNrsquos website is where you can find news views and resources from the established legal news providers and hundreds of suppliers to the legal industry all rolled into one

useful information feed wwwlsncouk

LSN also run the popular Legal Practice Management conferences tailored specifically for anyone working in management in SME law firms and ABSs Join us for the LPM Birmingham conference in Novemberwwwlsncouklpmb2016

Sign up for our weekly practice management e-newsletters which bring you the best of our practice management content and our social feeds every week wwwlsncouksubscribeezine

(

LEGAL PRACTICE MANAGEMENT5

SEPTEMBER 2016IN PRACTICE Follow us and talk to us on Twitter LPMmag

IN PRACTICE

A lot has changed in the world since our last Snapshot LPM readers In the wake of the EU referendum result we have a

new prime minister ndash and a new justice secretary Liz Truss is the first female leader of the justice ministry (good for diversity) but the third incumbent in succession to have no legal background Truss has also recently pledged to press ahead with plans to ditch the Human Rights Act ndash letrsquos hope the UK bill replacing it will last longer than previous English rights legislation

Other than a shift in government ranks the most obvious outcome of Brexit has of course been uncertainty Many SME law firms are now implementing strategies to handle likely post-Brexit instability set to affect them and their clients (see what some of them said on p9) Global firm Dentons on the other hand is using technology to turn the EU exit to its advantage Itrsquos developing a cognitive AI search engine tool to be used for Brexit-related contract reviews as part of a play to become a key adviser to companies impacted

SME firms may not have the resources to rear technology in this manner ndash but a new practice note from the Law Society might give them the confidence to use e-signature technology for commercial contracts making them more efficient and competitive Law Society president Robert Bourns said ldquoSolicitors are eager to take up any opportunity to innovate and this practice note will help them in making ever-increasing use of this small but significant improvementrdquo Neat

Innovation might be a top priority for legal businesses after a University of Leeds study suggested that ABSs may come to dominate in high-volume legal services The study by Leeds University Business School academics Sundeep Aulakh and Ian Kirkpatrick observed that the traditional partnership model is still dominant in legal ndash but that ABSs

ldquoBah they donrsquot need rightsrdquo thought John ldquoLetrsquos get this over with ndash wherersquos my iPadrdquo

Have you got a story or report for us Write to lpmlsncouk

Source SRA Risk Outlook report July 2016

of adults had a legal need in the past three years

people with legal needs instruct a solicitor or barrister

LEGAL NEEDSResearch released by the SRA shows that while a significant number of adults have legal needs few seek pro legal advice

54

63

IN N

UM

BER

SSNAPSHOT SIGNATUREMOVES

typically characterised by aggressively expansive ambitions may eventually come to control high-volume commoditised markets like personal injury

Refocusing attention on Westminster the government has said that it plans to clamp down on legal businesses that pursue ldquospurious claimsrdquo against military personnel This follows the news that London and Birmingham-based Public Interest Lawyers which submitted hundreds of allegations of misconduct by British troops is shutting down after investigation into its activities

Itrsquos certainly been an interesting period for politics and legal ndash perhaps there are more lsquosurprisesrsquo to come (but hopefully none that King John would be proud of) LPM

Edited by Patrick Wingrove

of adults believe that professional legal advice is too expensive

110

Itrsquos our business to make the complex simpleWersquore focused on delivering legal practice management solutions that fit and evolve with your business

Looking to improve your practice Then talk to us

Itrsquos the little things that make a big difference

wwwoneadvancedcomlegal

LEGAL PRACTICE MANAGEMENT7

SEPTEMBER 2016IN PRACTICE Follow us and talk to us on Twitter LPMmag

SWEETENING THE DEAL

HR AGONY AUNT

QI read about Eversheds offering free ice creams

to their lawyers during the heatwave in the summer With sweeteners like this how can smaller firms ever compete to get the best people

AWith all due respect to Eversheds there is a

difference between a perk and a gimmick A Mr Whippy ice cream van is a gimmick (and a flaky one at that ndash ho ho) Compare bringing in an ice cream van with offering coding lessons for lawyers ndash the latter is a new trend in large corporate firms such as Australian firm Gilbert + Tobin

To develop coding and programming skills alongside your legal skills is an attractive proposition for bright legal minds ndash and it could be good for the firm too if one of its 500 staff were to make a cost-saving technological breakthrough In terms of a perk it is the right fit for those firms Equally there will be something which is right for your firm ndash just donrsquot be distracted by the gimmicks

Q A senior employee completely lost his

temper with another employee on the phone with a litany of expletives over some missing documents Can I dismiss him for gross misconduct

A The technical answer is ldquoYou may be able to

depending on all the circumstancesrdquo (arenrsquot lawyers good at sitting on the fence) But is showing anger like this always bad Clearly expletives are inappropriate and the context may well mean this is bullying But in another context this could be sheer frustration Sometimes we get angry ndash this might be because it is serious (such as children crossing the road without looking) because something just keeps happening time and time again (our computer is too slow) or because we canrsquot do anything about something (Boris Johnson being foreign secretary for example) You might want to take the employeersquos outburst as indicative of one of these categories and see if there is

anything that you can do to help

Q We have a few staff successfully working

from home one day a week But for one employee itrsquos a complete shambles her internet is patchy she is sometimes hard to get hold of and she never calls in Shersquos good at what she does but is it worth it

A Letrsquos separate the solvable from the

irresolvable Her internet connection may not be something she can control

and itrsquos not an uncommon complaint but the communication deficit is entirely resolvable The employee needs defined expectations ldquoWe need you to phone in at least twice a dayrdquo And defined consequences ldquoOr elserdquo if she doesnrsquot meet them LPM

Polly Jeanneret is an expert in HR and an employment lawyer at Halebury to boot ndash shersquos seen and heard it all

Send her your HR questionsASKPOLLYLSNCOUK

Polly Jeanneret LPMs HR guru answers questions on dismissal homeworkers ndash and ice cream

THIS

MO

NTH

IN N

UM

BERS

THE ILFM ANNUAL SALARY SURVEY REVEALS THAT LOYALTY TO SMALLER FIRMS MAY NOT BE PAYING OFF FOR EMPLOYEES

of employees in medium to large firms

recieved a pay rise

LOYALTY PAYS

of employees in small firms recieved

a pay rise

of employees in small firms were

successfully retained

78 59 89

LEGAL PRACTICE MANAGEMENT8

SEPTEMBER 2016IN PRACTICE Follow us and talk to us on Twitter LPMmag

LPM ASKS

QWhy is it important to optimise your career

pages for mobile phones

AThe proportion of people using their mobiles to

access the internet is increasing rapidly Ofcom statistics badge us as a lsquosmartphone societyrsquo with phones overtaking laptops for getting online People are surfing while watching TV or in bed they are banking shopping and accessing social media ndash and they are looking for jobs If yoursquore not optimising your career pages yoursquore losing out on a large potential talent pool

The average attention span is about eight seconds and on a small screen you have to engage quickly Breaking down any barriers for potential candidates is therefore critical Recruitment is competitive and in the legal sector we are often looking for specific skills We canrsquot afford to lose candidates at key touchpoints

Optimising your legal business website for mobile devices sends a message ndash we are a modern firm we are tech-savvy we understand our market and our target audiences We also donrsquot want to discourage potential candidates new graduates or apprentices who could be our future workforce

QWhy do you need to monitor social media as

part of your recruitment strategy

AOur social media channels give us direct engagement

with candidates and they are a powerful tool to promote the brand You need candidates to

SALLY JONESCOO BRETHERTONSAfter speaking at this yearrsquos London LPM conference COO of Midlands and London firm Brethertons answers our questions on recruiting and retaining new talent at your firm

feel the culture of your business through social media so itrsquos important to monitor the interaction of both staff and followers in this very public arena We use social media as part of a multi-channel recruitment strategy ndash to advertise our vacancies get employees to push vacancies to their networks endorse our roles and culture and generate excitement about our opportunities We also use social media to research our candidates ndash it can be a valuable source of information and help us gauge the fit of future talent

QWhat should SME law firms consider when using

a recruitment agency

AThere are a number of considerations

l Do they understand the roles and do they understand the skills qualities and behavioural attributes you are looking forl Do they understand your business your strategies aspirations and plansl Do they understand your values and culture Do they understand the importance of this alongside the technical skillsl Do they specialise Are they generalist How well do they understand your target audience l What is the nature of the contract and what does it include and exclude Is it an exclusive arrangement and what is the period of engagement Will you need to work with other agencies to ensure good coverage of potential candidatesl How will they communicate

with you and what needs to be approved within what timescales

QWhat are some key considerations for direct

recruiting

AWe are all trying to get candidates from the same

small pool and we cast our net as widely as possible to get the best outcome and return We also want every hire to be a long-term success

With direct recruitment you have to be very clear on how you define potential candidates and how you select and contact them Confidentiality and communication are therefore key factors Getting the pitch right and being confident in negotiations are also important We approach direct recruitment for example by advertising on our website on specific websites and on social media We also use our networks and we have a great staff referral scheme in place

QHow do you create a powerful brand to aid

retention

AAt Brethertons we have a dedicated people

programme that goes to the heart of attracting and retaining great people It is about layers of connected

change ensuring what we do makes a difference and that we understand the impact of business change on our employees Brand is about giving people an understanding of who you are and your identity It gives people a sense of belonging and value and the knowledge that their contribution matters

You can keep good people and make employees proud to work in your organisation in several ways But always be clear on their contribution how it is valued how their performance will be managed and measured and how it aligns with your overall corporate goals LPM

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Book your place at LPMB 2016 NOW for just pound175+VAT early bird price

Email rikkiclsncoukwwwlsncoukLPMB2016

LEGAL PRACTICE MANAGEMENT9

SEPTEMBER 2016IN PRACTICE Follow us and talk to us on Twitter LPMmag

Now that the UK has voted in favour of Brexit we ask LPM readers ldquoDo SME firms need a plan in place for when the UK leaves the EUrdquo

Want to write us a letter You know that thing no one does anymore You can email us a letter for publication to lpmlsncouk or post us something to LPM magazine 20 Mortlake High Street London SW14 8JN Or get in touch through our LinkedIn group at bitlylpmgroup

Follow LPM on Twitter

LPMmag

NAVEED AHMED HEAD OF IMMIGRATION LAW ASONS SOLICITORSThe uncertainty and far-

reaching implications of the UK leaving the EU undoubtedly exposes SME law firms to greater risks which must be effectively managed Strategic planning at primitive stages of the UKrsquos departure from the EU could very well determine the future viability of many SME law firms Diversification may well be key to prosperity after the break and full service law firms that are engaged in a variety of legal sectors such as employment health education retail intellectual property and financial litigation will be well-placed to navigate the storm

GORDON STARK COOMURGITROYDIn a time of uncertainty it

is better to be prepared ndash having a strategic plan in place is important as is knowing when to act The plan should identify risks but also seek out opportunities Firms may need to make decisions about their future during this protracted period of acute uncertainty ndash knowing when these decisions need to be taken what the options are and what the associated lead times will be to execute them will all be key components of planning

SEPTEMBER 2016IN PRACTICE

ANNABEL HAMPSHIRE MANAGING ATTORNEY STRATAGEM IPMSME law firms are no exception when planning for the

inevitable fallout of a post-Brexit United Kingdom The uncertainty over when the UK will leave the EU and the consequences of legal and structural reform make planning difficult Firms are taking immediate steps to reassure clients as well as educate them about the challenges presented in their specific field For the IP sector changes to protection and exploitation strategy will require careful planning but more immediately a review of contractual obligations may be necessary to mitigate unfavourable or unexpected reinterpretations of terms (resulting from practical effects of Brexit) by any party to the contract

ELIZABETH WEST HEAD OF ORGANISATIONAL DEVELOPMENT REDDIE amp GROSE

In our sector (patent and trade mark attorneys) we compete with EU firms Our European work is a mixture of EU law and other international law but we expect EU competitors to take advantage of the Brexit publicity to try to grab a larger share of that work Our plan includes protecting the revenue stream but wersquove had to put that in place now ndash even before an Article 50 notice is served Wersquod advise all SME law firms to challenge their assumptions about who their competitors are and who they will be after Brexit ndash cheer up and strategise

NICK DAVIS HEAD OF RISK AND COMPLIANCE GEDYE amp SONS

The British governmentrsquos well-made plans may not hit their ideal timetable ndash European leaders will have to try and strike a balance between the wants of the UK the European parliament and the views of their own voters (not to mention their own electoral desires) This is clearly a complicated subject and extends across the areas of law that firms practise and the demographic of their workforces SME law firms need a flexible and constantly evolving plan to be able to advise their staff and clients current or new They also need to be able to demonstrate impartial and accurate views on how any potential changes that come as a result of Brexit affect clients first and them second As part of their plan SME law firms should review any guidance notes issued by the Law Society and the SRA ndash adopting any rules and procedures (particularly relevant would be any change to the General Data Protection Regulation and AML fourth directive) so that their firms are ready and well prepared But a plan shouldnrsquot be overly rigid because itrsquos currently too early to tell what if any impact Brexit will have on UK law

YOURVIEW

LEGAL PRACTICE MANAGEMENT9

Follow us and talk to us on Twitter LPMmag

NOVEMBER 2016

VISIT LSNCOUKLPMB2016CALL RIKKI CLARK ON 0870 112 5058

EMAIL RIKKICLSNCOUK

BIRMINGHAM

THE ONLY EVENT FOR MANAGEMENT LEADERS IN SMALL

AND MEDIUM-SIZED LAW FIRMS

ONE-DAY CONFERENCE

6338 LSN LPM Nov 2016 Book Now_03indd 1 30082016 0939

LEGAL PRACTICE MANAGEMENT11

SEPTEMBER 2016IN PRACTICE Follow us and talk to us on Twitter LPMmag

THE WAY TO WHY

BOOK REVIEW

One way of assessing the value of a book like this is by reference to the number of times it makes one think of something it can be applied to in your own career or organisation On that measure

alone Designing the Purposeful Organisation passes with flying colours

At the heart of Wilsonrsquos philosophy is the idea that to be successful organisations must be able to articulate compelling and inspiring reasons for their existence ndash not simply what they do but rather why they do it The usual poster boys for 21st-century business success are quoted as exemplars of this approach - Apple Google Microsoft Reference is also made to Simon Sinekrsquos TED talk (278 million views and counting) and related book Start With Why as a means of uncovering the primary reason for an organisationrsquos existence Indeed a key element of Wilsonrsquos writing style is to send the reader off at regular intervals to take in a TED talk or YouTube video or to reflect in more detail around the topic at hand This does at times make the book feel more like a business coaching session rather than a dry management treatise ndash which for the avoidance of doubt this reader sees as a definite plus point

While the stories around behemoths such as Apple and Google can be compelling I was more taken with the example of the African tax collection agency that Wilson was working with Rather than seeing themselves as taking money from people (the lsquowhatrsquo) he encouraged them to focus on their purpose namely to help fund new schools and hospitals across their developing nation (the lsquowhyrsquo) Articulating the why is also a key element of an organisationrsquos brand proposition Wilson reminds us that customers are more often than not buying why an organisation does something rather than simply what the organisation does Or put another way how many customers would be inspired to have brand loyalty for a firm which simply says that its fundamental reason for being is to maximise shareholder returns

Before anyone starts fulminating about the importance of financial returns Wilson does recognise that results matter However his concern is that they too often become all consuming A key pillar of the book is his belief (which he concedes may be controversial) that overly focusing on results is misguided and can create systemic barriers to better performance Or put more simply results measure our progress to a better future ndash they are not in themselves that better future

This is certainly something that chimed for me as the CEO

of a law firm Yes we all recognise the need to deliver improved financial KPIs However these are simply a means of measuring whether we are delivering value to our clients (given that clients are unlikely to be using and paying for our services where they do not perceive us to have any value) and are unlikely to be the things wersquoll look back on with pride in our dotage

This reassessment of the role of results is also central to one of the key conditions for a more purposeful organisation (and one which will particularly resonate with professional services firms) namely talent liberation Drawing on the work of Daniel Pink on personal motivation (for example Drive The Surprising Truth About What Motivates Us) Wilsonrsquos call is for firms to move beyond transactional performance (pay me X and Irsquoll deliver Y pay me a bit more than X and Irsquoll deliver a bit more than Y) Rather we need to help our people liberate the talent they have by playing to their strengths as opposed to the more traditional performance management model of fixing weaknesses

Wilson focuses particularly on how the proper articulation of purpose can engage millennials Borrowing from Laurence Boldtrsquos Zen and the Art of Making a Living he encapsulates this approach in three short questions What skills and other resources do you have What do you care about Whatrsquos stopping you from pointing A at B

It seems to be that in most law firm management seminars or discussions these days someone somewhere is lamenting the fact that they just donrsquot understand millennials And at last I have an answer for them ndash read Clive Wilson LPM

LPM reader discount ndash use code HRLPMB to get 20 off at wwwkoganpagecom

Designing the Purposeful Organisation How to Inspire Business Performance Beyond Boundaries by Clive Wilson

Publisher Kogan PagePublication date Feb 2015Price pound2999

Reviewer Chris Harte chief executive and partner at Morton Fraser

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LEGAL PRACTICE MANAGEMENT13

SEPTEMBER 2016COLUMNS

Barry DaviesPractice directorDouglas-Jones Mercer wwwdjmlawcouk

BARRY DAVIES PRACTICE DIRECTOR

ROLE MODELS

ABOUT Recent figures show that there are a shade over 130000 people on the roll of solicitors in England and Wales ndash 20 of those undertake an in-house role 80

are classed as employed An enormous number and this is before we consider the significant chunk of employees namely professional managers support staff and those lawyers who are not on the Law Society roll But lots of firms I speak with say lsquowe have too many partnersrsquo or they have reduced the number of lsquochiefsrsquo within their practice as part of their strategic planning

Where are we going with this What will the future firm look like What will its stakeholders (not necessarily shareholders) expect

The two facets that will impact upon the future will undoubtedly be generational attitudes and technology Though advancements in processing power will mean huge growth of AI systems over the next decade I think generational attitudes is the facet thatrsquos most interesting right now

Generation X lawyers (born between the early 1960s to mid-1970s) are often already partners This generation and the baby boomers before them are usually motivated by achievement and money Generation Y lawyers on the other hand (born in the 1980s or 1990s) are looking for something else Fearing that I sound like a textbook ndash specifically Frederick Herzbergrsquos theory of motivation hygiene ndash itrsquos not money thatrsquoll be the key factor in recruiting millennials but other drivers such as networks recognition quality of work and conditions

Developing reward and recognition strategies is

difficult enough for partners ndash so how does a law firm tackle its entire workforce A few years ago I held a discussion with a law firm partner and a question put to me was could the lsquoJohn Lewis modelrsquo fit a law firm This term is not only synonymous with the department store it has become a household phrase

Quite a few law firms have for some time now introduced a corporate partner ndash a limited company ndash as a partner within its practice with the intention of dealing with distribution of profits more efficiently or as part of a bonus pool So itrsquos quite interesting to hear that a highly regarded firm in the south west Stephens Scown has developed a similar model to the John Lewis theme

Whatrsquos different about this example is that a proportion of the firm is owned by a trust for its employees and not just its partners This gives the employees of the firm a greater sense of belonging and the added impetus to do well I am certain that some critics would question the mechanics of such a scheme and perhaps the barriers to entry such as defined profit levels but setting this aside it is a means of boosting staff engagement and eradicating the lsquothem and usrsquo mentality

With complications in all corners of law firm ownership new models will have to be explored to cover aspirations of all involved There could come a time when a crowdfunding option is explored generally and maybe the household name for staff stakeholder mechanisms in law firms will be the Stephens Scown model LPM

LEGAL PRACTICE MANAGEMENT14

SEPTEMBER 2016COLUMNS

In the April issue of LPM Stepien Lakersquos practice director Richard Hill brilliantly spelled out what to look for when trying to spot a lsquowhalersquo or big lsquophishrsquo ndash a situation where an

individual or firm is targeted researched and then duped into sending money to a cyber attacker

But just as awareness is essential so too is preparedness I thought it might be helpful to share some of the practical considerations that will help keep client funds safe (a requirement of principle 10 in the SRA handbook) including some things wersquove done in our firm in response to these very real threats

Perhaps the most feared event among all law firms is the very well-publicised lsquointercepted emailrsquo (dubbed the lsquoFriday fraudrsquo) But would we be surprised by just how many firms lawyers and clients freely provide bank details within the body of text in an email

This is an area where we recently tightened our procedures and introduced an explicit rule all bank details provided by a client especially in any email communication must be verified by a lawyer (by reconfirming those details with a person they know) The lawyer then signs to say that they have checked them

This has produced some unexpected benefits particularly for one client who provided bank details to us within the body of an email for remitting the proceeds of sale for his family business of pound32m When the lawyer contacted him to verify that the bank details were correct the client realised that he had transposed two numbers

Clearly this is a serious education piece not only for those responsible for finance and the lawyers within the firm but externally for the firmrsquos clients

There are a number of practical points to bear in mind when it comes to day-to-day security matters how do your lawyers communicate the client account details to its clients and do you always attempt to obtain client details for the remittance of funds at the start of the transaction for instance

Additional considerations might be when did you last review any bank payment elements in your email disclaimers terms of business and client care letters Is your payment procedure well-defined and documented (not just the finance element but also those relevant to clients and lawyers) And do you use any law firm identification checklists

These important issues should remain on the agenda so that theyrsquore constantly in colleaguesrsquo minds with regard to maintaining safe and efficient practices

There are some excellent resources available from your bank that can help to educate your colleagues and there are so many simple steps we can all take to make people aware of the problem Have you tried sending a few test phishing emails to individuals within the firm for

GLYN MORRIS FINANCE DIRECTOR

ABOUTexample to see how they respond

But what then If you are confronted with the metaphorical warning cry of lsquothar she blowsrsquo how will you and your people react You may need to have created a well-communicated process for dealing with a phishing incident

The 1851 classic Moby Dick tells the story of one manrsquos obsessive quest for revenge on a giant white whale ndash we might want to take just a hint of Ahabrsquos obsession in our approach to tackling the issue of cyber attacks Although if we can avoid the whale in the first place all the better LPM

THAR SHE BLOWS

Glyn MorrisFinance director Higgs amp Sonswwwhiggsandsonscouk

0800 328 0272 | wwwarchivestoragenet

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LEGAL PRACTICE MANAGEMENT16

SEPTEMBER 2016COLUMNSSPONSORED EDITORIAL

DOUG HARGROVE THE TECHNOLOGIST

DISRUPTION TO GO

ABOUT Change isnrsquot anything new itrsquos just another word for evolution But lsquodisruptionrsquo is certainly one of the words of the decade and one that is

usually connected to revolution ndash a significant alteration to the status quo and one that has far more immediate impacts

Disruption is also the go-to word for business commentators ndash especially when it comes to lsquodisruptive techrsquo ndash talking about new business start-ups or innovations Take the very latest craze to hit the headlines ndash Pokeacutemon Go has seemingly gripped the world these last few weeks with stock valuations heading skyward and comments about the app lsquodisruptingrsquo mobile gaming But therersquos nothing disruptive about the game it takes and utilises technology thatrsquos been around for nearly a decade (geolocation and augmented reality) and applies it in a new way Itrsquos that application of technology thatrsquos causing the disruption

Businesses like Uber and Netflix have built compelling business models on the groundwork of technology that is now pervasive (the smartphone and broadband internet respectively) Therersquos a lot here that firms can learn from itrsquos not necessarily about inventing new technology but about finding ways to use existing technology to create a new approach

So what opportunities are there for law firms to disrupt This can be looked at in two ways ndash disruption to the existing law firm business model and disruption to the user experience The first scenario has already been covered at length and is nothing new for the legal market there are already plenty of law firms out there

looking to change the way a law firm delivers its services to its clients and prospects ndash from franchise models to virtualised law firms Disruption to the law firm business model has been an ongoing force ever since the term ABS became associated with legal practices

The second scenario is a different matter It seems legal clients have been patiently waiting for the lsquodisruptive service deliveryrsquo model to come and there is plenty of opportunity out there for firms to position themselves differently with the modern consumer of legal services

Take a brief example of where old (or rather existing) technology can be used to differentiate ndash videoconferencing Itrsquos a fairly ubiquitous piece of technology thanks to the rise of Skype Facetime and the webcam which gives an instant user experience and a one-to-one connection that bridges the remoteness of a phone call and the need to travel for a meeting It doesnrsquot take much of a leap to imagine a service that allows consumers to access a lawyer instantly using this technology (maybe even a concept that combines the franchise model with an Uber-style app ndash connecting clients to the next available expert from a selection of associated law firms) The point is you donrsquot have to invent something new to be a disrupter ndash donrsquot be afraid to take existing technology and repurpose it to gain a competitive advantage

There are plenty of consumers of legal services who are willing to try out a new service or offering in the search for that great new experience ndash and for those law firms prepared to take the risk and disrupt there really is an opportunity to catch lsquoem all LPM

Advanced LegalRevolutionary solutions for legal services Contact Doug on 01476 573 718wwwadvanced-legalcouk

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Y

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LEGAL PRACTICE MANAGEMENT18

SEPTEMBER 2016COLUMNS

JANINE PARKER THE BROKER

WHAT PRICE EXCLUSIVITY

Itrsquos that wonderful time of year when the annual bombardment of brokers begins on your never-silent telephones All of them can ldquocarry out a full market exerciserdquo for you that will of course save you money

But whatrsquos the reality The marketplace is still murky and as a profession we donrsquot help ourselves by keeping it opaque So letrsquos objectively consider many of the claims brokers make attempt to clarify the true mechanics behind the market and consider how to best utilise it for the benefit of your firm

Since 2000 and the demise of the Solicitors Indemnity Fund competition for solicitors professional indemnity has increased This hasnrsquot always been generated through the number of insurers but the ever-increasing number of brokers who purport to be experts in this very niche area of insurance This has increased pressure on insurers to lower prices (a good thing for clients up to a certain point) but this pressure combined with some extreme economic factors has contributed to many insurers withdrawing from the market over the past decade

Competition is good for consumers and it encourages innovation to make sure that brokers and insurers can differentiate themselves by developing their product offering

Some brokers organise lsquoexclusiversquo arrangements with insurers often segmented by the number of partners within the firm ndash which is a very artificial way of dividing up the profession But this is the marketplace wersquore in today and itrsquos worth looking a little closer at these lsquoexclusivesrsquo

All the direct access points are listed in the Law Society buyer guide and in practice itrsquos only a handful of brokers who actually hold the exclusive with direct access to the underwriters It is essential to note that these exclusive agreements are not always lsquotiedrsquo arrangements The broker is not bound to place all their business with their one exclusive insurer and itrsquos often the case that those brokers who hold the exclusive arrangement also enjoy strong relationships with the open market insurers

To increase distribution brokers who hold exclusive arrangements will offer access to other brokers who wish to take advantage of the exclusive products available These brokers donrsquot have their own facilities There are many commercial reasons for opening an exclusive to other brokers but itrsquos important to note that the extra broker in the chain will dilute your relationship with the placing broker and ultimately your insurer Marketing materials can often be unclear as access to exclusives is readily used ndash but in reality these brokers will be approaching another broker to do this

Often law firms will be unaware of the number of brokers in the chain and will unwittingly be paying additional brokerage and fees unnecessarily Direct access allows for better communication between your firm and insurers which can often lead to more competitive pricing Removing a broker from the chain can lead to the process of claims handling being more efficient and effective as there are less obstacles in the chain of communication

In summary no one broker has direct access to every insurer and it is possible to approach more than one broker and not be at risk of flooding the market If using more than one broker be clear who you would like them to approach and be aware whether they have to go through another broker to ultimately reach the insurer LPM

ABOUT

SPONSORED EDITORIAL

ParagonBetter broking for legalContact Janine on 020 7280 8200wwwparagonbrokerscom

LPMLEGAL PRACTICE MANAGEMENT

SUPPLEMENT SEPTEMBER 2016

BUSINESS INFORMATION FOR EVERYONE IN PRACTICE MANAGEMENT

LPM INSIGHTS

Sponsored by

How do SME law firm management leaders see the future

LEGAL PRACTICE MANAGEMENT20

SEPTEMBER 2016LPM INSIGHTS

ALL CHANGE

22WHATrsquoS NEXT We analyse the 2016 LPM conference polling data

2 1 COMMENT Accesspointrsquos Richard Roebuck on legalrsquos increasing digital dangers

Change and transformation are words that strike fear into the most hardened of legal management hearts because they are hard to do and even

harder to make stick But change must happen inside todayrsquos SME law firms to make sure they stay in business in tomorrowrsquos world

At this yearrsquos Legal Practice Management conference in London we polled our audience of law firm management delegates on a range of topics Some questions wersquove been asking since our first LPM conference back in the misty era of 2012 Much has changed in the world since then (new UK governments drones are now lsquoa thingrsquo Donald Trump) but legal not so much The rise of the ABS has been slow (though impactful) and the recession has for many businesses faded into a distant memory compared to the Brexit debate

But SME law firms rightly smell a real need for change in the wind ndash and perhaps though they seem to find it hard to name that change the clues are legion Letrsquos find some

LPM London 2016 delegates named the greatest hurdles to their firmsrsquo growth or further success as lsquoacquiring high-quality staffrsquo and the lsquoinability to create change within the firmrsquo Might the solution to one lie in the other Great talent wants to flock to fresh and vigorous businesses and younger legal eagles are increasingly shy of throwing their lots in with the fusty world of partnership Law firm leaders must look at how their businesses are run and who runs them and how people work if they are to attract great people ndash and in doing so they will create the change they seek

Herersquos another 52 of delegates named lsquoclient pressures on costrsquo the factor thatrsquos having the biggest impact on the SME legal market ndash but when asked how important price is when winning business 67 said itrsquos just lsquoone of a range of important factorsrsquo while 21 said itrsquos lsquonot as important as other things such as relationshipsrsquo This is a disparity I canrsquot quite understand but it doesnrsquot sound like the SME legal market truly gets the shift thatrsquos happening on the client side and how much change needs to happen inside firms to meet this challenge

Read on and come to your own conclusions but I think the clues are now becoming obvious I hope your firm sees them too LPM

Rupert Collins-White editor-in-chiefLPMmag | rupertwlsncouk

You donrsquot as the song goes need to be a weatherman to know which way the wind is blowing in the legal market ndash but just because the clues are there doesnrsquot mean you can be complacent about acting on them

CONTENTS

FEATURES

LEGAL PRACTICE MANAGEMENT21

SEPTEMBER 2016LPM INSIGHTS

MORE TECHMORE SECURITY

INTRODUCTION TO THE RESEARCH FROM OUR SPONSOR RICHARD ROEBUCK MANAGING DIRECTOR ACCESSPOINT

After a recent period of uncertainty it would now seem that most firms are confident about their future especially in light of Brexit Whatrsquos also certain is

that most firms are very conscious that to compete they will need to change and adapt themselves for the challenges ahead

With growing concerns about the lack of high-quality people available and what appears to be a reliance on quality individuals driving more lucrative fee-earning work is it time for a gear change

Perhaps the dawn of high-volume low-margin fixed fee work which many firms feared has now arrived As always with change there are challenges to be faced but for those clever early adopters there lies opportunity Making light of the more process-driven tasks and finding more effective efficient ways of completion to deliver client-facing benefits seems key to the wider future of the fixed fee legal landscape

With the growing acceptance of cloud technology and the increasing introduction of new software applications and solutions the legal world has moved on at an improved pace this past couple of years And the world is now clearly keen for more ndash to satisfy its desire for a more accessible and mobile working environment What is key for this trend is that the lsquoquality of the deliverablersquo has an ongoing programme of improvement that benefits both the firm and its clients

As progress pulls us forward there will always be elements arrayed against us Alongside the opportunities hiding in the polling from LPM this year therersquos also a sense of fear and concern around possibly the biggest threat to risk and security there is right now ndash the dark byproduct of technological success cybercrime

Cybercrime is fast growing with ever more complex attacks making headlines It is now one of the most common criminal offences in the UK An increasing number of individuals are exploiting the speed and anonymity of the internet to commit a wide range of criminal activities having no conscience and knowing no borders

It isnrsquot our fault websites get hacked but poor internet safety habits can put us at risk Reusing passwords or using weak passwords make us easy targets for identity theft Remembering multiple passwords can be a pain but there are web services and associated applications that can help such as two factor authentication quality mail management systems URL threat protection and mail encryption

For many firms the biggest threats tend to be by way of the ever-open door into our networks and devices ndash email

Our eagerness to respond almost instantly to emails throughout what will be for most an already pressured day is perhaps the dominant daily activity to foster an unwanted lapse in security In the past 18 months alone I have seen three firms that were truly caught out ndash some with the potential for significant financial penalty by opening email attachments The most common lsquogotcharsquo is an email that appears to have come from the office scanning platform whereby the email address has been cleverly spoofed to appear legitimate (for example downstairscopiermyfirmdomaincouk) There are so many existing and newly circulating threats of this calibre and type that even the most aggressive of filtering systems struggle to keep up

Do you know the name(s) of your copiers and the associated email addresses Do you stop to think before opening the innocuous Word attachment ldquoDoesnrsquot our scanner usually send PDF files Why has a covering note not been included with the attachmentrdquo Stop think and call for advice

Another infamous scam is the spoofing of email addresses of key people within your firm ndash for example an email to the head of accounts appears to be from the senior partner ldquoPlease send pound17000 to account X at your earliest convenience and confirm once processedrdquo it says Stop ndash is this your agreed process

As the demand grows and we extend our reach out into the online world so cybercrime advances ever closer seeking unauthorised access through our front door Quite clearly online is the future but we need to embrace it with the necessary skill sets and processes in place for our convenience wellbeing and prosperity LPM

There are so many existing and newly circulating threats of this calibre and type that even the most aggressive of filtering systems struggle to keep up

Accesspoint are independent legal IT specialists who consult on a variety of information technology-related issues offering the best in IT solutions to help firms work more effectively

Contact Richard and the team on 0203 189 2645wwwtheaccesspointcouk

LEGAL PRACTICE MANAGEMENT22

SEPTEMBER 2016LPM INSIGHTS

SME law firms are in a battle for survival Whether they know it or not they have huge challenges to face in the next few years ndash around succession planning technology replacing lawyers and being

used by competitors to attain a competitive edge and catering to clients who increasingly want cost predictability transparency and availability

These market pressures were addressed at the LPM conference in May 2016 which was attended by over 100 delegates all SME legal management leaders The delegates were polled on the day about what they thought of the pressures facing them and how theyrsquore planning to overcome them ndash and their answers provide valuable insight into the SME legal market

The polling results show that LPM conference delegates were aware of the severity of the challenges they face Three-quarters of legal management leaders we polled at the 2016 LPM conference thought that the challenges theyrsquoll face in the next five to 10 years will be lsquomorersquo or lsquomuch morersquo serious than in past years And 58 of delegates thought that the challenges in the next year to two years will be lsquomore serious than in past yearsrsquo

How they will face these challenges depends at least partly on attitude ndash whether they believe they can win or will eventually lose the war Fortunately most LPM conference delegates were optimistic about their firmsrsquo futures - 81 were either lsquocautiouslyrsquo or lsquoveryrsquo optimistic about their place in the legal market of the future

This doesnrsquot necessarily suggest that theyrsquore confident in the market overall particularly after the market instability brought by Brexit Legal management leaders might believe their firm is the only one thatrsquoll survive due to expertise in a particular area or niche In any case it indicates market confidence and a confidence in the ability of their firm to compete and succeed

But is this optimism misplaced in a market where the future is increasingly uncertain and competitive Are firms really ready for change on a huge scale as their confidence might suggest What are the issues currently keeping SME legal leaders awake at night

In this report LPM shines a light on the SME legal market through the eyes of our legal management leader audience ndash those driving their firms through an uncertain new world

WHATrsquoS NEXTChange is on the agenda for LPM firms but how to address the biggest challenges and which ones to face first is a tough call finds Patrick Wingrove

More serious than in past yearsMuch more serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch less serious than in past years

51

14

8

3

24

More serious than in past yearsMuch more serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch less serious than in past years

How would you rate the challenges your firm faces in the next five to 10 years

More serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch more serious than in past yearsMuch less serious than in past years

58

17

6

0

19

More serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch more serious than in past yearsMuch less serious than in past years

How would you rate the challenges your firm faces in the next year to two years

What is the greatest hurdle to your firmrsquos growth or further success

What is the greatest hurdle to your firmrsquos growth or further success

LEGAL PRACTICE MANAGEMENT23

SEPTEMBER 2016LPM INSIGHTS

TIMES THEY ARE A CHANGINrsquo The overriding theme of the 2016 LPM conference was change ndash how firms can implement it the drivers behind it and the various blockers to it But the first step to change is gauging which factors will have the biggest impact on the legal market Just over half of legal management leaders we polled thought client pressures on cost like demanding fixed fees will have the biggest impact while just over a quarter thought it will be competitors attaining a market advantage using technology

How quickly do firms need to respond to these oncoming market pressures Well 86 of LPM conference delegates thought that change needs to happen in their firms within the next two to five years But 14 said that their firm doesnrsquot need to change significantly perhaps because theyrsquove beaten the rest to the punch their legal business is somehow immune to new pressures ndash or they have their heads in the sand

Legal has traditionally been resistant to change and itrsquos not surprising that some firms still are says Sean Stuttaford COO at Essex firm Thompson Smith and Puxon (TSP) and 2016 LPM conference delegate ldquoThere are still firms out there where partners donrsquot have computers on their desks ndash theyrsquore stuck in their ways and just point blank refuse to

52 26 5 12 5

develop their business for the futurerdquoBut legal management leaders willing to implement

change may still find it difficult as 60 of LPM conference delegates polled thought that lsquochange isnrsquot really understood at their firmrsquo

GROWING PAINSJust over a quarter of LPM conference delegates also thought that an inability to create change within their firm would be the greatest hurdle to the businessrsquos growth or further success ndash though Stuttaford at TSP suggests voters might have blamed the traditional partnership business model for the same reason

But acquiring high-quality staff was considered to be the greatest hurdle for growth or success by 36 of delegates Rebecca Patterson HR manager at Kent firm Thackray Williams and 2016 LPM conference delegate says that she agrees with this result ldquoOur firm has a particularly tough time finding quality support staff ndash we could perhaps stand to invest more in competency frameworks and performance management and training opportunities to aid recruitment and retentionrdquo

William Robins operations director at lsquodistributedrsquo firm Keystone Law and a 2016 LPM conference speaker says

12 36 27 13 12

Lack of fundsAcquiring high-quality staffInability to create change within the firmTechnologyThe traditional partnership business model

Out of these which factor is having the biggest impact on the SME legal market

Client pressures on cost (eg fixed fees)Technology creating advantage for competitorsConsolidationDifficulty in finding routes to growth (eg funding)Something else

What is the greatest hurdle to your firmrsquos growth or further success

LEGAL PRACTICE MANAGEMENT24

SEPTEMBER 2016LPM INSIGHTS

offering a more flexible remote or mobile working set-up for everyone in a firm is an excellent way to attract talent (Keystonersquos model of course is founded on remote working) Perhaps the majority of legal management leaders polled at the 2016 LPM conference agree since their firms have either adopted a flexible remote or mobile working set-up are planning to adopt one or are considering adopting one ndash though there are other advantages to remote working such as reducing overheads In any case the results indicate that the SME legal working landscape is becoming considerably more flexible

But remote working doesnrsquot work for everyone Mary Mocklow CEO at West Midlands firm Talbots Law and 2016 LPM conference delegate says that their high-street set-up wouldnrsquot allow it ldquoThe majority of our staff are client-facing and need to be present at the office ndash and while there are other staff at Talbots that might benefit from remote working you canrsquot have a policy for one and not for allrdquo

CYBER THREATSTechnology was clearly a significant concern for legal management leaders who attended the 2016 LPM conference Patterson at Thackray Williams says some firms have had a hard time finding software that caters to their needs as a business and an LPM conference poll seems to back this up just under half of legal management leaders polled at the conference thought project teams should write law firm software indicating a desire for cross-department input into its creation But the poll also indicates that legal software providers have to a large extent been meeting their clientsrsquo needs

The rising threat of cybercrime was also a clear concern for LPM conference delegates ndash 92 of SME legal management leaders said their firms have cyber risk on their management meeting agendas Stuttaford at TSP says ldquoItrsquos something firms need to be constantly aware of and take precautions against not just by purchasing good firewall and antivirus software but by educating staff about password discipline authentication processes and suchrdquo

32 18 14 33 3

Is cyber risk on your management meeting agenda

92

5 3

Yes No Dont know

Is your firm moving to a more flexible workingremote or mobile working set-up for everyone in it

YesNoConsidering itWe already do itDont know

LEGAL PRACTICE MANAGEMENT25

SEPTEMBER 2016LPM INSIGHTS

PRESSURES AND PRICINGClient pressures on cost was also a major concern for legal management leaders polled at the conference so it may not be surprising that just over half of them said 50 or more of their firmrsquos work is some form of fixed fee This doesnrsquot necessarily suggest that the other half arenrsquot open to the concept of fixed fee ndash Mocklow at Talbots points out that fixed fees work for certain types of work ldquoHigh-street firms like Talbots can benefit greatly from fixed fees which is why 75 of our work is fixed fee but itrsquos more difficult to apply to firms that specialise in something like admiralty lawrdquo

The industry seems to think that the value of service has been lost to the price obsession in some areas but not in others ndash and while pricing is clearly a vital issue for SME firms 88 of legal management leaders polled at the LPM conference thought that itrsquos lsquoone of a range of important factorsrsquo or lsquonot as important as other thingsrsquo Patterson at Thackray Williams says that maintaining a good relationship with clients is often more important than pricing though pricing can be a means to achieving client satisfaction ldquoIt also depends on the client ndash in something like conveyancing first-time buyers might be looking for fixed fees or the cheapest price but for commercial clients that may not be as important as reputation or relationshiprdquo

TREASURE MAPPINGLegal process mapping often used by lsquobig lawrsquo and making inroads into SME legal could potentially make SME firms a great deal more efficient and therefore more competitive Two-thirds of legal management leaders polled had heard of process mapping and 79 thought that it is relevant to the business of law Stuttaford at TSP says he agrees ldquoFirms should look at their processes learn from them and figure out how to improve those processes ndash this question really made us look at what TSP has done so far in terms of what legal processes wersquove mapped and whenrdquo

To sum up LPM conference delegates were aware of the challenges that face them but were mostly optimistic nonetheless This may be because they know they need to change and in spite of the fact that change isnrsquot really understood at their firms are planning to mend their ways to meet future market pressures ndash generally putting the client first while keeping talent and technology high on their agendas LPM

Are aware of this thing called legal process mapping

66

34

Has the value of service been lost to the price obsession

23

23

54

Yes No Depends on the service Dont know

Yes No

How important is price in winning business

8

4

67

21

CriticalMore important than almost all factorsIts one of a range of important factorsNot as important as other things such as relationshipsIts one of the less important things in reality

What is the greatest hurdle to your firmrsquos Are aware of this thing called legal process mapping

LEGAL PRACTICE MANAGEMENT27

SEPTEMBER 2016COLUMNSSPONSORED EDITORIAL

Welcome back LPM readers ndash the new school term has started summer is (pretty much) over and the UK is back in full throttle after the summer break And what a break itrsquos been at

File Queen HQ (wersquove taken the time to get our clients up and running with augustprojects as well as started our new Instagram feed filequeenadds)

With the start of the new learning year wersquore focused on the education of you lovely LPM readers ndash with our attention turning back to the General Data Protection Regulation You may remember that in our last LPM article we ran through the 12 steps to tackle the GDPR helped by the awesome people at the Information Commissionerrsquos Office ndash wersquove provided a link to their 12-step resource via our website wwwarchivestoragenetnewsgdpr

Over the next three columns wersquoll be taking these steps and breaking them down for you ndash starting with step one awareness The File Queen (myself) and the team at ADDS have been promoting this step as the most important for all legal practices

ldquoWhyrdquo we hear you holler Well this step is the all-important life raft that unites your practice and team members to help you in the GDPR fight for survival (dramatic I know)

Getting the team on board ndash this buy-in needs to include all ranks of staff ndash from the managing partners to your suppliers But how do you do this Well here are some File Queen tips for when we at ADDS are rolling out projects

Lunch and learn ndash with a register People love to eat and be social so get your legal business to book in a couple of lunch and learn sessions Donrsquot limit this to one date ndash you must run at least two or three so people have the option of which dates to attend Make sure you make a register for those that actually turn up (we all know a calendar acceptance doesnrsquot mean theyrsquoll actually appear) This will allow you to chase down the members of the team you need to get on board for the next one

Have some decent sandwiches nibbles and soft drinks and give the team an overview of the GDPR Run through the 12 steps and make sure you educate them on why everything is so important (make sure you mention the increased fines and audits) During this time let the team know that there are several steps along the way that yoursquoll need their help and support for and which you wonrsquot be able to achieve on your own Tell them that the businessrsquos reputation and brand is on the line and that you need everyone on board to lend a helping hand and spread the word

Another great File Queen tip at this stage is also to get some additional funding from the practice manager for a wine and quiz night at the end of the lunch and learn periods This can be part of your social gathering on a Friday straight after work ndash with some more nibbles and wine Assign people to teams and have a GDPR quiz The winning team gets an award and everyone has fun and learns at the same time Follow our twitter feed as wersquoll be tweeting some great questions to ask thefilequeen GDPRQUIZ

We know itrsquos a lot to organise but there are only four months left in 2016 and GDPR practices must be in place by 25 May 2018 And believe me when you have to roll out rather hard core legislation you have to make it fun and interactive to get people on board LPM

ABOUT

NATASHA RAWLEY THE FILE QUEEN

EDUCATING YOUR PROS

ADDSSaving firms from paper hellContact Natasha on0800 328 0272wwwarchivestoragenet

LEGAL PRACTICE MANAGEMENT28

SEPTEMBER 2016FEATURES

28

Patrick Wingrove talks to the founders of Proelium Law about their work providing legal advice in high-risk environments and conflict zones and the challenges of setting up shop in a new and risky area of law

Legal commandosProelium

Compared to the day-to-day lives of Proelium Law founders and partners Richard Stephens (above left) and Adrian Powell (centre) the average lawyer leads a pretty humdrum life Though UK-based the

firm has a strong international focus ndash Stephens and Powell regularly travel to provide legal and business advice to companies and individuals in high-risk professions or working in hazardous environments across the globe including conflict zones in Iraq Syria and Afghanistan Powell says that itrsquos a challenging but exciting area of law to be in and that ldquono two days are ever the samerdquo

The firm was established as an ABS in November 2015 allowing Powell and Stephens to operate as partners although Stephens isnrsquot a lawyer Powell qualified as a solicitor in 2004 after spending 11 years of his career in the British army and post-2006 worked on various high-risk projects around the world ndash giving him the inspiration for Proelium He says ldquoThe idea came to me in Baghdad in 2009 while working for a private security company as a legal adviser ndash I thought lsquoWhy isnrsquot there a firm doing thisrsquo But I soon realised that I needed someone on the ground who wasnrsquot a lawyer to help make it happenrdquo

That person was Stephens He previously served in the Royal Marines worked as a Whitehall-based strategic planner for the UK government and commanded a special operations regiment (which is why we couldnrsquot show you his face but itrsquos a nice issue of LPM) He now works primarily on the business development side of Proelium ldquoJoining Adrian who Irsquod previously worked with on projects around the

LAW FIRM PROFILE

LEGAL PRACTICE MANAGEMENT29

SEPTEMBER 2016FEATURES

world at a firm meant I could do fascinating and important work with the credibility that being a partner in a regulated business providesrdquo he says

Their work has certainly been interesting Proelium has cast its net far within the niche high-risk sector ndash advising UK-based service providers on the complexities of working in hostile environments conducting business and human rights due diligence and ensuring anti-money laundering counter terrorist-financing and anti-bribery compliance for companies intending to run in high-risk areas or conflict zones to name a few Recently theyrsquove also been working on developing capability for national intelligence organisations overseas ndash but for fear of being jailed for treason Stephens and Powell didnrsquot elaborate hellip

Powell says that the challenges companies face in these areas are numerous ldquoTherersquos a real technical knowledge in understanding how organisations physically work overseas These companies are good at what they do but that doesnrsquot necessarily translate into being business-savvy when it comes to operating in frontier markets ndash thatrsquos where Proelium adds valuerdquo For example after a client was recently exposed on an arms deal they were able to quickly discern liability and ensure that all necessary agencies and departments were appropriately informed

Powell and Stephens joke about how theyrsquore the number-one firm in their sector ndash admitting that to their knowledge theyrsquore the only firm that specialises in this area of law They added that itrsquos an untapped niche in which Proelium will be a pioneering force but which has also recently come onto the radar of a larger firm Theyrsquore alluding of course to Proeliumrsquos recent venture with Harrison Clark Rickerbys ndash a joining that combines Proeliumrsquos experience working in high-risk jurisdictions with the manpower and existing defence and security expertise of

HCR Powell says ldquoWhat they donrsquot have is our connections and our experience They like the idea of the sector because they see it as an interesting area and the partnership will allow us to offer a wealth of different legal services while letting us focus on what we do bestrdquo

As part of their ambitions for Proelium Powell and Stephens are keen to train a new generation of lawyers whorsquoll specialise in the high-risk sector ldquoWe have confidence in what the younger generation has to offer and we want them in our industry to continue our work in this relatively untapped areardquo says Powell Stephens adds that itrsquos also a matter of succession planning ldquoWe want the firm to operate long into the future but we donrsquot necessarily want to be running it ourselves for the next 20 yearsrdquo Proelium currently employs two interns as part of this commitment including University of Surrey law student Ruby Jamieson (pictured) She says ldquoWorking [at Proelium] has given me loads of insight already ndash itrsquos very niche

very new and Irsquove really enjoyed helping develop the business I feel that itrsquoll open a lot of doors when I graduaterdquo

In terms of expansion Proelium has recently opened a new office in the City of London Powell says that his home was originally the firmrsquos practising address but a large portion of their client-base is in London ldquoand we couldnrsquot keep having our meetings in coffee shopsrdquo

But Powell and Stephens are firm believers in the concept of remote working which works particularly well for their business

ldquoMost of our clients are either in London or outside the EU so Irsquom always away but all my phone calls are redirected from the new office to my mobile so I can keep in touch with clients whether Irsquom in Dubai or Baghdadrdquo says Stephens Powell adds that he feels remote working has the added benefit of keeping staff happy by letting them work from home which he says certainly makes him more productive as a fee earner

Proelium isnrsquot looking to expand into areas it has no interest in like family law but theyrsquore taking a keen interest in the emerging area of cyber law and are considering taking steps into that world ldquoLike high-risk law no onersquos really wrapped their arms around cyber law yet Therersquos cyber law in the US but it doesnrsquot exist per se in the UK except in terms of data protectionrdquo

When asked what advice they could give to SME firms based on their unique experiences in their sector Powell and Stephens said firms should know the areas of law they practise inside and out Powell says ldquoWersquore concerned with being experts in our field ndash a lot of our clients have peoplersquos lives in their hands and are not in the business of nonsense which is why they come to us We give sound researched legal advice based on experience and if we donrsquot know something we send the client to someone who doesrdquo LPM

ldquoCompanies are good at what they do but that doesnrsquot necessarily translate into being business-savvy when it comes to operating in frontier markets ndash thatrsquos where Proelium adds valuerdquo

Proelium

Two fee earners four total staff

Offices City of London Wirral Cheltenham

Specialisms International criminal commercial and conflict law due diligence sensitive investigations

LPM FACT FILE

ldquod2u is the UKrsquos number one outsourced transcription service for medical and legal professionals and highly competitive all over the world We pride ourselves on saving our clients time and money as well as offering state-of-the-art security and a first-rate servicerdquo Daryl Leigh CEO dictate2us

LPM magazine has agreed a special deal for its readers with dictate2us ndash 5 off your monthly

transcription bill for one year if you sign up through the dedicated LPM link or call and quote LPM2016 when signing up You can trial the service for free before committing

CUT COSTS INCREASE EFFICIENCYAll firms could benefit from outsourcing transcription to dictate2us ndash but even more so with our LPM deal 5 off your first year

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Use d2u and enjoy the benefits ofbull Fast turnaround timesbull Secure and confidential servicebull Secetarial cost reductions of up to 60bull Guaranteed 985 minimum accuracybull iPhone Android and Blackberry apps with one-hour turnaroundbull 100 output - only pay for the time you talkbull Free no obligation trial

This special LPM magazine reader deal only relates to customers that execute an agreement for a minimum term of 12 months with a minimum monthly commitment of 500 minutes LPM magazine sought two law firm references for dictate2us to verify its claims for quality and delivery The 5 deal only applies to the first paying year the customer is with dictate2us LPM magazine is not responsible or liable in any way for work done by dictate2us and is an advertising referrer only

d u2 dic t a t e 2 u s

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LPMLEGAL PRACTICE MANAGEMENT

LPMLEGAL PRACTICE MANAGEMENT

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LEGAL PRACTICE MANAGEMENT31

SEPTEMBER 2016FEATURES

Patrick Wingrove speaks to management leaders from SME and top 100 law firms that have recently achieved significant growth to find out how to go from acorn to oak tree

FROM MINNOW TO

For many SME firms growth is the goal ndash but it doesnrsquot have to happen in the ways that many have scaled in the past The era of organic slow quiet steady partnership development over decades is

increasingly at odds with a fast-paced digital world Strategies for growth in the legal market are now closer than ever to the rest of the business world ndash and any size firm can learn how to do it

Big or small there are similar tools in the box for making growth happen and similar challenges Lessons abound but some of the best can be taken from those firms not far outside the famous lsquotop 100rsquo legal businesses in the land ndash those that have already grown up and now have the top tier in their sights There are also lessons to draw from smaller but rapidly scaling law firms

There are many growth strategies for organic and acquisitive growth ndash and no easy answer for which is right for your firm To shine a light on the subject wersquove spoken both to SME and top 100 firms about growth and how to do it (and importantly how not to do it)

MAMMOTH

LEGAL PRACTICE MANAGEMENT32

SEPTEMBER 2016FEATURES

MODELS OF GROWTH According to the Lawyer the two fastest growing firms in the top 200 this year are Midlands-based Knights and lsquodistributedrsquo firm Keystone Law ndash currently placed 119 and 122 in the 2015 UK 200 rankings but whose revenue will now put them well inside the 2016 top 100 (due for release October 2016) Both attribute their growth to non-traditional business models ndash and very different non-traditional models at that

Knights corporatised in 2014 to remove the barriers from its decision making processes which CEO David Beech says has been the key to its growth ldquoEquity partnerships donrsquot grow particularly quickly because itrsquos hard to achieve consensus and make decisions that enable fundamental or rapid growth among equity partnersrdquo

Knights acquired Oxford-based Darbys earlier this year ndash a move largely behind the revenue increase that will put them in the top 100 ndash and completed the transition inside three months which Beech says would have been next to impossible under their old business structure ldquoNot only was a quick turnaround good for the books it saved significant time and money that could be invested elsewhere in the businessrdquo he says

Top 100 firm Simpson Millar is one step

ahead of Knights The firm broke the glass ceiling to become a top 100 firm in 2015 and like Knights the firm attributes its growing success to corporatisation ndash but in a different manner

It sought to be and was eventually acquired by PLC Fairpoint Group in 2014 Simpson Millar continues to run as an LLP under the same management team and existing trading brands but as a business unit within Fairpoint

Managing partner Peter Watson says that one of the key reasons to pursue this particular growth strategy was to provide an injection of capital for MampA ldquoWe completed the sizeable acquisition of Colemans last year for example which we were only able to do with considerable investment from Fairpointrdquo

Being part of a PLC has also given the firm access to strong MampA and project management capabilities ldquoAcquiring Colemans doubled the business overnight ndash for something like that you need strong MampA experience and access to that team within Fairpoint was crucial in getting the deal across the linerdquo says Watson Simpson Millar also built a strong digital strategy launched new products and focused on pricing ldquoCall it fixed fees or packaged fees the point of it was to say to consumers

Square One Law

Revenue pound5m

31 fee earners 53 total staff

Offices Newcastle-upon-Tyne

Specialisms Commercial corporate property employment EU and competition law finance litigation private client

LPM FACT FILE

Knights

Revenue pound40m (year end 2017)

375 fee earners 450 total staff

Offices Chester Cheltenham Newcastle-under-Lyme Derby Oxford Hale

Specialisms Full service firm

LPM FACT FILE

LEGAL PRACTICE MANAGEMENT33

SEPTEMBER 2016FEATURES

lsquoWith us you know exactly what yoursquoll get and how much itrsquoll costrsquordquo

PEOPLE PLEASERSThe ability to implement change has also been an important part of delivering a growth strategy This isnrsquot necessarily surprising ndash polling at the 2016 Legal Practice Management conference showed that legal business managers thought it was one of the greatest hurdles to a firmrsquos growth or success only topped by acquiring high-quality staff In Knightsrsquo case the two challenges were addressed together Beech says Knightsrsquo corporate rather than partnership structure also allows it to recruit talented people without having to deal with the inherent politics of an equity partnership

ldquoAcquiring the best talent has been a central part of our growth strategy ndash if a candidate can help the business through expertise or client following we can just recruit themrdquo he added

But a successful growth strategy incorporating talent isnrsquot just about recruiting quickly as we analysed in the July 2016 issue of LPM ndash itrsquos about recruiting well Firms also need to make themselves an attractive prospect for legal talent in order to grow

William Robins operations director at Keystone Law says his firmrsquos lsquodispersedrsquo model allows it to do that by offering new fee earners the chance to work remotely with less supervision ldquoWersquore typically hiring about a lawyer a week ndash bringing their expertise fee-earning capability and client following with them ndash and that is the core part of our growth strategyrdquo The firm has buttressed its recruitment capability by hiring a director of recruitment to focus almost entirely on lawyer enrolment (recruiting talent to recruit talent ndash neat)

Though the distributed model may not be for everyone says Robins implementing some form of flexible mobile or remote working should be part of any firmrsquos growth strategy because it allows firms to increase their fee-earning capability without accruing fixed overheads such as office premises

And there are other ways to be talent-attractive As a core part of its growth strategy Newcastle-based firm Square One Law ndash which achieved 30 growth in the

last financial year ndash has pledged to create a supportive and inspirational team environment offering high-calibre work to attract the best talent Ian Gilthorpe senior partner at Square One says ldquoGood people want to be inspired to be valued for what they do and feel as though theyrsquore making a contribution The key is to engage with all your staff to facilitate a culture where staff feel happy at work work for each other trust each other and ensure that they see the value in what they do ndash if you do that more talent will comerdquo

He added that itrsquos important for

recruitment to convey staff satisfaction to the outside world which Square One has achieved by including staff video-testimonials on its website

But recruiting is only half of an effective people strategy ndash the other is retention Simpson Millar has attempted to create an environment that its talented staff wonrsquot want to leave Says Watson ldquoToo many firms worry about what will happen if their rainmaker goes somewhere else and takes clients with them ndash so they put the shackles on make them feel unhappy and make it so that they canrsquot realise their full potentialrdquo Creating such an environment makes firms an attractive target for lateral hires when they should be building a place people want to join

PRACTICE AREASSME legal businesses donrsquot necessarily need to change their business models completely to achieve the same growth as

Thorntons

Revenue pound20m

209 fee earners 430 total staff

Offices Dundee Edinburgh St Andrews Perth Cupcar Kirkcaldy Anstruther Arbroath Montrose Forfar

Specialisms Full service firm

Keystone

Revenue pound202m

198 fee earners 230 total staff

Offices London Bristol Isle of Man Australia

Specialisms Corporate and commercial dispute resolution property

LPM FACT FILE

LPM FACT FILE

Equity partnerships donrsquot grow particularly quickly because itrsquos hard to achieve consensus and make decisions that enable fundamental or rapid growth among equity partners David Beech CEO Knights

Simpson Millar

Revenue pound316m

322 fee earners 539 total staff

Offices Birmingham Bristol Cardiff Cheadle Hulme Gateshead Kingston-upon-Thames Lancaster Leeds Park Place Leeds St Pauls Street (head office) London Manchester Newcastle

Specialisms Full service firm

LPM FACT FILE

LEGAL PRACTICE MANAGEMENT34

SEPTEMBER 2016FEATURES

our examples but removing blockers from decision-making making themselves more attractive to talent and finding the right funding for growth are increasingly important and the partnership structure may not enable it

But of course that means asking some turkeys to vote in a Yuletide election Fortunately there are other ways to achieve impressive growth mainly investment andor expansion into new geographic or practice areas

Watson says that Simpson Millar wouldnrsquot have been an attractive prospect to Fairpoint had the firm not spent time growing organically by expanding into new areas of law

ldquoWe went from being a predominantly trade union PI firm to having a broad base of 16 types of work ndash with strong heads in charge of each committed to driving growth in their departments ndash which gave us a large boost in revenuerdquo The firm achieved this through small acquisitions of other firms that had expertise in particularly lucrative areas of law

But firms shouldnrsquot just look at expanding in lucrative areas ndash they should focus on areas where their reputations deliver an advantage Scotlandrsquos Thorntons for example ndash which last year leapt from 134 to 108 in the 2015 UK 200 rankings ndash invested in six departments as part of its growth strategy

Thorntons joint managing partner Scott Milne says ldquoWe didnrsquot exclude other areas but we saw that these areas were profitable and that more importantly we had considerable expertise in them ndash we also considered that these are areas that are unlikely to be affected by future economic downturnrdquo This included investing in niche areas of law where the firm has a geographic competitive advantage ldquoWersquore lucky to be surrounded by some of the best farmland in the UK ndash wersquore well known for our expertise in rural business law which is why we invested heavily in itrdquo

ORGANIC V ACQUISITIONIn several ways choosing an effective growth strategy very much boils down to MampA versus organic growth ndash every business model talent or area expansion strategy appears to revolve around one or both But which is the best to achieve the kind of growth thatrsquoll propel firms to a lsquohockey stickrsquo on their revenue forecasts The short answer is it depends on whatrsquos best for a firm at a given time It either

needs to fit the firm ndash or the firm needs to change to fit the goal

Beech says that acquisition has been excellent for Knights because itrsquos a fast and effective form of expansion ndash the acquisition of Darbys more than doubled its revenue But MampA poses a significant challenge to finding firms with the right cultural fit

ldquoFirms need to establish a single culture in order to implement growth ndash everyone needs to be working towards the same goalrdquo He added that when a firm completes a merger or acquisition that firm has to be integrated from day one which is much more difficult if it has a significantly different culture Knights is planning to continue recruiting and complete more acquisitions in the next year to maintain the growth curve

Of course the big problem with acquisition is money Robins at Keystone says his firm lies at the opposite end of this

INFORMATION IS EMPOWERING

Lemington Spa-based firm Wright Hassall has a specific goal of breaking into the top 100 and as part of its growth strategy expanded into areas of the UK where its expertise is highly sought after ndash using customer relationship management in the background to underpin the firmrsquos activities in specific areas Martyn Wells IT director at the firm says ldquoWersquove zoomed in on specific industry sectors that we know are performing well in the Midlands sectors where we have a superb reputationrdquo Expanding geographically as Wells outlines needs data to get right Thorntons for example identified various lsquomicro-marketsrsquo in Scotland close to its base of operations ldquoWe acquired a firm in St Andrews because itrsquos like a micro-economy (or micro-market) that doesnrsquot seem to be affected by price drops in the residential market elsewhererdquo says Thorntons joint managing partner Scott Milne Knights has another take on the geographic targeting idea ndash it intends to stay out of the large cities (London Manchester Leeds for example) and expand into areas where there is little competition As David Beech CEO at Knights explains ldquoLast September we acquired a small team in Chester of about 11 lawyers and now thatrsquos expanded to just over 70 ndash and the main reason wersquove been able to do that is because there isnrsquot a lot of competition thererdquoUltimately this all comes down to research finding out what to invest in or where to expand and perhaps most importantly finding out what clients want

LEGAL PRACTICE MANAGEMENT35

SEPTEMBER 2016FEATURES

spectrum to the way Knights has grown emphasising organic growth finding innovative means to attract talent using technology to drive efficiency and branching out into new areas of law or new markets to achieve significant growth

Square One Law also espouses the organic route ndash believing that firms with growth in mind should focus on ensuring their external brand reflects the businessrsquos internal culture and behaviours of its team creating lsquosynergyrsquo between the business and its clients

Gilthorpe says ldquoMergers ndash and there is no such thing as a true merger ndash and acquisitions can be a distraction as you look to create a new culture and separate the wheat from the chaff and this can soak up a lot of energy that would otherwise be put to use in driving the progression of the business and the focus on client servicerdquo

The best option for some firms may be a

calculated combination of MampA and organic Thorntons for example having made several acquisitions is now focusing on organic growth moving away from geographical expansion and towards developing locations and its brand

Watson at Simpson Millar sums the mixed approach up thus ldquoItrsquos a mixture Acquisition is still very much a part of the mix but in parallel to that itrsquos important to demonstrate that yoursquore developing ongoing work rather than being driven solely by acquisitionrdquo

There are clearly many different ways to achieve healthy and assertive growth though there are no easy answers as to which way is right for your firm But it is clear that growth doesnrsquot have to happen in the ways many have previously achieved it ndash innovation and lateral thinking are the means of achieving significant growth (which might one day propel you into the top 100 you never know) LPM

LEGAL PRACTICE MANAGEMENT36

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

INDUSTRY VIEWS

36LEGAL PRACTICE MANAGEMENT

Legal is becoming an ever more digital industry giving firms the chance to become more efficient flexible agile and collaborative

INDUSTRY VIEWS INDEX

ONLINEOFFICES

36

SPONSORED EDITORIAL

INDUSTRY VIEWS

37 INTERVIEW

Paperless processLinetimersquos Tony Klejnow explains the benefits of using matter management software for law firms and their clients

39 INTERVIEW

Virtual expansionNigel Redwood Nasstarrsquos CEO talks about the advantages of having a managed flexible IT infrastructure

LEGAL PRACTICE MANAGEMENT37

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT37

Competition and price pressures and an increasingly digital client base are all significant drivers for law firms to become paperless

businesses Tony Klejnow Linetimersquos managing director says firms could achieve competitive advantage by introducing paperless solutions across their businesses ndash but a particular lsquoeasy winrsquo area is matter management

ldquoFee earners are required to keep detailed records of their cases but the amount of time and money they waste physically printing filing looking for collaborating on and updating files is alarmingrdquo says Klejnow Law firms have traditionally been reluctant to adopt paperless

workflow solutions he adds because workflow doesnrsquot apply to 99 of fee earnersrsquo work ldquoBut if they adopted paperless solutions in their back office processes they could reduce costs without affecting client service boost productivity and promote collaboration ndash making them more efficient flexible and cost effective and making them more competitive in an ever-changing legal marketrdquo

MATTER MATTERSDocument and matter management tools ndash like those in Linetimersquos legal software product Liberate ndash electronically store and organise all case documentation in an online database Klejnow says that there are two immediate benefits of paperless matter

PAPERLESS PROCESS

Tony Klejnow managing director at Linetime talks to LPM about the benefits of the paperless office ndash starting with filing and back office processes

INDUSTRY VIEWS

Linetime is a specialist provider of Microsoft-based practice and case management solutions Clients include mid-tier law firms and in-house legal departmentswwwlinetimecouk

ABOUT THE SPONSOR

SPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT38

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT 38

management The first is reducing paper and storage costs

ldquoIf case documentation is electronically stored once a case is finished you no longer have a five-inches-thick file that has to be stored for six years ndash which has to reside somewhere and costs firms time space and moneyrdquo The second is eliminating filing time ndash for example instead of printing and filing emails and attachments fee earners drag and drop emails directly from Outlook into the database ldquoand attachments are automatically stripped from emails and appropriately filedrdquo says Klejnow

And Klejnow says paperless filing systems donrsquot just facilitate efficiency this way ndash they also improve general process efficiency by facilitating collaboration between fee earners Solicitors can use document and matter management to view and work on matters at the same time a difficult if not impossible prospect when working with paper files Klejnow says ldquoWithout document management legal professionals work in silos but with it they immediately share datardquo He adds that Liberate has an additional collaboration tool to help further improve collaborative efficiency in firms ldquoIf I choose to lsquocollaboratersquo a document with you on Liberate Outlook will prompt you to review that document by simply acknowledging the notificationrdquo

In this respect moving to become a paperless business provides greater flexibility for fee earners who can collaborate with colleagues working remotely or in different offices Klejnow says ldquoPaper files can only reside in one location but electronic files can be accessed from any office and when working from home or with clientsrdquo On the other side of the coin having digital files maintains a greater level of productivity in a law firm office ldquoIf your colleague is absent from the office you can easily find documents that you might have otherwise wasted a significant portion of your day looking forrdquo he adds

Improved external collaboration is also a benefit that firms can reap from paperless matter management With an electronic system you can go into a case history bundle documents into one PDF file and quickly submit that to the third party improving collaboration between fee earners and clients who want to do everything online This has the added benefit of improving accuracy and facilitating greater efficiency by involving clients in the process ldquoGood matter management software should also let you push e-forms to clients to be filled in and that information is automatically transferred straight to the online database ndash which saves fee earners

time and is a more accurate because the information doesnrsquot have to be constantly re-enteredrdquo says Klejnow

This extra level of collaboration within legal businesses that hasnrsquot been possible until now has long been needed because it improves efficiency and productivity which makes the business more profitable and competitive Klejnow adds that what firms save by adopting matter management they should reinvest in becoming fully paperless digital businesses

ldquoCase management solutions can improve efficiency to an even greater extent and keep firms competitive in the age of the alternative business structuresrdquo

VISIBLE COMPLIANCEIn response to firms reluctant to adopt paperless technologies like document and matter management for fear of losing delicate information to cybercriminals Klejnow says those systems provide an additional level of security ldquoTaking data and attachments out of Outlook and storing them on a database is much more secure than leaving them on your hard drive If you leave

your laptop on a train for example all your important data is safely stored on a server and not instantly accessible by opportunist criminalsrdquo

Document and matter management also offers a greater level of security in fee earner and client communications ldquoIf I want you to check that the data we have for you is accurate Liberate will

direct you to a page holding your data and at the same time it will push out an SMS text with a pin code to your phone Unless you input the code you canrsquot get to the web page ndash which means if one of your solicitors accidentally sends an email to the wrong person or itrsquos intercepted it doesnrsquot matter The data stays safe ndash this level of security is crucial in this age of cybercrimerdquo

These security features clearly have significant benefits for compliance which is important in a market increasingly dictated by regulation including the relatively new General Data Protection Regulation says Klejnow

ldquoCompliance officers need to be seen by regulators to have monitored and reviewed everything thatrsquos happened in their firm which is considerably easier with a paperless system Liberate has lsquoversion controlrsquo which allows compliance officers to keep tabs on every change made to a document as well as a compliance module which lets them view whatrsquos happening on a case (to ensure that money laundering checks have been carried out and so on) and records the fact that yoursquove reviewed thisrdquo LPM

Without document management legal professionals work in silos but with it they immediately share data

INTERVIEW

LEGAL PRACTICE MANAGEMENT39

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LPM readers may already know the Nasstar Group ndash but by a different name Nasstar was launched by regular LPM-contributor e-knownet to consolidate four discrete hosted

managed IT businesses (including e-knownet) after a period of significant acquisition Nigel Redwood chief executive officer at Nasstar says merger and acquisition and consolidating brands is challenging but having a flexible hosted IT infrastructure makes the process significantly easier

ldquoManaged IT services are enormously beneficial for firms that are expanding or consolidating particularly after MampA in terms of time and productivity cost savings and flexibilityrdquo He adds that by just having managed desktops firms can attain competitive advantage by reducing overheads and becoming more flexible and agile

Nasstar has experience helping SME firms with their IT systems after MampA and knows what problems to look out for creating unity among staff used to using different systems and processes the cost and time it takes to expand an IT infrastructure and the geographic distance between new offices

Redwood says that MampA can be an excellent way for legal businesses to expand into new sectors but that consolidating new departments using different IT systems and processes is challenging

ldquoOur acquisitions for example introduced new sector focuses for us in the SME legal market ndash wersquove consolidated these into a wider service base under Nasstar and facilitated unity among staff using virtual IT solutions

rdquoVirtual IT solutions help facilitate unity across the business by providing a level of consistency in an IT infrastructure Everyone immediately uses the same applications on the same versions from wherever theyrsquore working creating unity faster collaboration across teams and effective information sharingrdquo Hosted IT infrastructures are also continually updated giving staff instant access to new updates applications and technologies as they become available

The next significant challenge firms face after MampA is expanding their IT infrastructure to accommodate an influx of new staff ndash but Redwood says virtual IT solutions let firms expand their IT infrastructure at the flick of a switch

ldquoWith virtual IT firms arenrsquot held back by the size of their servers or the amount of computer power theyrsquove got ndash they simply call their IT provider and ask for an upgrade when previously theyrsquod have been

subject to lengthy and costly IT upgradesrdquo Virtual IT solutions are also easy to budget for

Redwood says ldquoYoursquore not going to be surprised by an increased fixed asset expenditure ndash services like those offered by Nasstar are an operational cost and fixed per user per month through a scalable cost modelrdquo

Geographic distance inhibiting collaboration between merged offices is also a key consideration for firms after MampA but virtual IT solutions solve this problem Redwood says a virtual IT infrastructure can minimise travel through the use of hosted virtual meeting rooms and video technology Staff can use this technology from virtually anywhere which is why it also lends itself well to remote flexible or mobile working set-ups

VIRTUAL WORKPLACERemote working is becoming an increasingly present feature of the legal landscape because of its cost saving and recruitment and retention advantages ndash the majority of firms at the LPM conference 2016 were moving towards a flexible remote or mobile working set-up or already had one

Redwood says virtual IT solutions better enable staff who work remotely ldquoHosted managed desktop solutions for example let staff work with the same applications from any device in the world safely and securelyrdquo

But remote working isnrsquot only about enabling the current workforce itrsquos about attracting future talent Redwood says that millennials donrsquot necessarily want to work as their predecessors did ndash they expect greater flexibility in the workplace which at one level can be achieved by remote working facilitated by a managed desktop

ldquoAnd itrsquos not only about attracting millennialsrdquo he says ldquoSME firms with flexible working set-ups are becoming more attractive to experienced legal talent who may be frustrated by the rigidity of their firmrdquo As a firm expands its workforce in this manner firms with virtual IT solutions reap the lsquodoublersquo cost saving benefits of not having to expand their premises or IT infrastructure accordingly

Some firms are resistant to remote working based on hosted IT services believing they arenrsquot secure ndash but Redwood says that argument ldquocan be put to bedrdquo

ldquoFor an in-house IT team to have the level of security that an organisation like ours can deliver is near impossible financially as well as in terms of the

VIRTUALSANITYNigel Redwood CEO at Nasstar talks to LPM about how managed IT can help SME firms achieve competitive advantage by making them more agile and flexible

LEGAL PRACTICE MANAGEMENT40

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

INTERVIEW

level of systems and technologies they deployrdquo Cybercrime is of course a scary and constantly evolving threat but Redwood points out that virtual IT systems have dedicated teams monitoring these threats evolving cyber defences and changing systems accordingly

ldquoThis capability not only makes [firms] a lot more secure but gives peace of mind in terms of compliancerdquo

ONLINE ADVANTAGE Redwood says virtual IT infrastructures donrsquot just pertain to lsquobig lawrsquo but to SME firms as well ndash perhaps more so

ldquoVirtual IT systems are a way for SME firms to stay competitive against their larger

counterparts and ABSs ndash it gives them a greater ability to expand it lets them adopt more flexible and agile models and is easy to budget forrdquo Firms can also expect virtual IT solutions to enable better alignment of IT resources to business needs enhanced usability with anywhere anytime access and in-built business continuity

But the greatest advantage virtual IT offers SME firms over big law is agility Redwood says ldquoBig IT departments in firms can be slow to react cumbersome and held back by the limitations of hardware infrastructure and security issues ndash all of that is removed with a solution like ours and the customer has access to fast-moving agile ITrdquo LPM

ABOUT THE SPONSOR

Nasstar is a provider of managed IT services and tailor-made cloud hosted solutions ndash delivering innovative secure and agile IT to help clients accomplish their business objectiveswwwnasstarcom

Page 3: LPM September 2016

LEGAL PRACTICE MANAGEMENT4

SEPTEMBER 2016

Contact us

NOVEMBER 2016

VISIT LSNCOUKLPMB2016CALL RIKKI CLARK ON 0870 112 5058

EMAIL RIKKICLSNCOUK

BIRMINGHAM

THE ONLY EVENT FOR MANAGEMENT LEADERS IN SMALL

AND MEDIUM-SIZED LAW FIRMS

ONE-DAY CONFERENCE

LPMmagWersquore listening and we also have plenty to say We love Twitter ndash and if you love Twitter too share your thoughts with us

bitlylpmgroupLSN runs LinkedIn groups for thousands of people in legal business services and we run a dedicated LPM group too

wwwlsncoukpractice-managementFind practice management blogs news resources white papers case studies video and audio and much more online

0870 112 5058 or LPMLSNCOUKLegal Support Network20 Mortlake High StreetLondon SW14 8JN

Dictation services for this issue of LPM magazine provided by d u2 dic t a t e 2 u s

Rupert White is editor-in-chief of LPM magazine He has written about the legal sector since 2005 before which he endured years as an IT hack before tunnelling out with a plastic fork rupertwlsncouk

Patrick Wingrove is LPMrsquos assistant editor A history graduate and avid scuba diver he snuck into publishing in 2014 by hiding in the offices of the Illustrated London News patrickwlsncouk

Kayli Olson is our editorial assistant A Kingston Uni graduate she has spent most of her time here picking up British slang playing board games and managing Kingston Unirsquos newspaper kayliolsncouk

Sarah Cox is Legal Support Networkrsquos head of client services Want to advertise in LPM magazine or feature in our awesome advertorial section Then get in touch with her

sarahclsncouk

About usLPM magazine is published by Legal Support Network LSN is a media company focused solely on people in legal business services and management ndash whatever size or type of legal services provider they work for

We run LinkedIn groups with thousands of members across several areas from legal IT to legal process outsourcing Find our LPM group at bitlylpmgroup

LSNrsquos website is where you can find news views and resources from the established legal news providers and hundreds of suppliers to the legal industry all rolled into one

useful information feed wwwlsncouk

LSN also run the popular Legal Practice Management conferences tailored specifically for anyone working in management in SME law firms and ABSs Join us for the LPM Birmingham conference in Novemberwwwlsncouklpmb2016

Sign up for our weekly practice management e-newsletters which bring you the best of our practice management content and our social feeds every week wwwlsncouksubscribeezine

(

LEGAL PRACTICE MANAGEMENT5

SEPTEMBER 2016IN PRACTICE Follow us and talk to us on Twitter LPMmag

IN PRACTICE

A lot has changed in the world since our last Snapshot LPM readers In the wake of the EU referendum result we have a

new prime minister ndash and a new justice secretary Liz Truss is the first female leader of the justice ministry (good for diversity) but the third incumbent in succession to have no legal background Truss has also recently pledged to press ahead with plans to ditch the Human Rights Act ndash letrsquos hope the UK bill replacing it will last longer than previous English rights legislation

Other than a shift in government ranks the most obvious outcome of Brexit has of course been uncertainty Many SME law firms are now implementing strategies to handle likely post-Brexit instability set to affect them and their clients (see what some of them said on p9) Global firm Dentons on the other hand is using technology to turn the EU exit to its advantage Itrsquos developing a cognitive AI search engine tool to be used for Brexit-related contract reviews as part of a play to become a key adviser to companies impacted

SME firms may not have the resources to rear technology in this manner ndash but a new practice note from the Law Society might give them the confidence to use e-signature technology for commercial contracts making them more efficient and competitive Law Society president Robert Bourns said ldquoSolicitors are eager to take up any opportunity to innovate and this practice note will help them in making ever-increasing use of this small but significant improvementrdquo Neat

Innovation might be a top priority for legal businesses after a University of Leeds study suggested that ABSs may come to dominate in high-volume legal services The study by Leeds University Business School academics Sundeep Aulakh and Ian Kirkpatrick observed that the traditional partnership model is still dominant in legal ndash but that ABSs

ldquoBah they donrsquot need rightsrdquo thought John ldquoLetrsquos get this over with ndash wherersquos my iPadrdquo

Have you got a story or report for us Write to lpmlsncouk

Source SRA Risk Outlook report July 2016

of adults had a legal need in the past three years

people with legal needs instruct a solicitor or barrister

LEGAL NEEDSResearch released by the SRA shows that while a significant number of adults have legal needs few seek pro legal advice

54

63

IN N

UM

BER

SSNAPSHOT SIGNATUREMOVES

typically characterised by aggressively expansive ambitions may eventually come to control high-volume commoditised markets like personal injury

Refocusing attention on Westminster the government has said that it plans to clamp down on legal businesses that pursue ldquospurious claimsrdquo against military personnel This follows the news that London and Birmingham-based Public Interest Lawyers which submitted hundreds of allegations of misconduct by British troops is shutting down after investigation into its activities

Itrsquos certainly been an interesting period for politics and legal ndash perhaps there are more lsquosurprisesrsquo to come (but hopefully none that King John would be proud of) LPM

Edited by Patrick Wingrove

of adults believe that professional legal advice is too expensive

110

Itrsquos our business to make the complex simpleWersquore focused on delivering legal practice management solutions that fit and evolve with your business

Looking to improve your practice Then talk to us

Itrsquos the little things that make a big difference

wwwoneadvancedcomlegal

LEGAL PRACTICE MANAGEMENT7

SEPTEMBER 2016IN PRACTICE Follow us and talk to us on Twitter LPMmag

SWEETENING THE DEAL

HR AGONY AUNT

QI read about Eversheds offering free ice creams

to their lawyers during the heatwave in the summer With sweeteners like this how can smaller firms ever compete to get the best people

AWith all due respect to Eversheds there is a

difference between a perk and a gimmick A Mr Whippy ice cream van is a gimmick (and a flaky one at that ndash ho ho) Compare bringing in an ice cream van with offering coding lessons for lawyers ndash the latter is a new trend in large corporate firms such as Australian firm Gilbert + Tobin

To develop coding and programming skills alongside your legal skills is an attractive proposition for bright legal minds ndash and it could be good for the firm too if one of its 500 staff were to make a cost-saving technological breakthrough In terms of a perk it is the right fit for those firms Equally there will be something which is right for your firm ndash just donrsquot be distracted by the gimmicks

Q A senior employee completely lost his

temper with another employee on the phone with a litany of expletives over some missing documents Can I dismiss him for gross misconduct

A The technical answer is ldquoYou may be able to

depending on all the circumstancesrdquo (arenrsquot lawyers good at sitting on the fence) But is showing anger like this always bad Clearly expletives are inappropriate and the context may well mean this is bullying But in another context this could be sheer frustration Sometimes we get angry ndash this might be because it is serious (such as children crossing the road without looking) because something just keeps happening time and time again (our computer is too slow) or because we canrsquot do anything about something (Boris Johnson being foreign secretary for example) You might want to take the employeersquos outburst as indicative of one of these categories and see if there is

anything that you can do to help

Q We have a few staff successfully working

from home one day a week But for one employee itrsquos a complete shambles her internet is patchy she is sometimes hard to get hold of and she never calls in Shersquos good at what she does but is it worth it

A Letrsquos separate the solvable from the

irresolvable Her internet connection may not be something she can control

and itrsquos not an uncommon complaint but the communication deficit is entirely resolvable The employee needs defined expectations ldquoWe need you to phone in at least twice a dayrdquo And defined consequences ldquoOr elserdquo if she doesnrsquot meet them LPM

Polly Jeanneret is an expert in HR and an employment lawyer at Halebury to boot ndash shersquos seen and heard it all

Send her your HR questionsASKPOLLYLSNCOUK

Polly Jeanneret LPMs HR guru answers questions on dismissal homeworkers ndash and ice cream

THIS

MO

NTH

IN N

UM

BERS

THE ILFM ANNUAL SALARY SURVEY REVEALS THAT LOYALTY TO SMALLER FIRMS MAY NOT BE PAYING OFF FOR EMPLOYEES

of employees in medium to large firms

recieved a pay rise

LOYALTY PAYS

of employees in small firms recieved

a pay rise

of employees in small firms were

successfully retained

78 59 89

LEGAL PRACTICE MANAGEMENT8

SEPTEMBER 2016IN PRACTICE Follow us and talk to us on Twitter LPMmag

LPM ASKS

QWhy is it important to optimise your career

pages for mobile phones

AThe proportion of people using their mobiles to

access the internet is increasing rapidly Ofcom statistics badge us as a lsquosmartphone societyrsquo with phones overtaking laptops for getting online People are surfing while watching TV or in bed they are banking shopping and accessing social media ndash and they are looking for jobs If yoursquore not optimising your career pages yoursquore losing out on a large potential talent pool

The average attention span is about eight seconds and on a small screen you have to engage quickly Breaking down any barriers for potential candidates is therefore critical Recruitment is competitive and in the legal sector we are often looking for specific skills We canrsquot afford to lose candidates at key touchpoints

Optimising your legal business website for mobile devices sends a message ndash we are a modern firm we are tech-savvy we understand our market and our target audiences We also donrsquot want to discourage potential candidates new graduates or apprentices who could be our future workforce

QWhy do you need to monitor social media as

part of your recruitment strategy

AOur social media channels give us direct engagement

with candidates and they are a powerful tool to promote the brand You need candidates to

SALLY JONESCOO BRETHERTONSAfter speaking at this yearrsquos London LPM conference COO of Midlands and London firm Brethertons answers our questions on recruiting and retaining new talent at your firm

feel the culture of your business through social media so itrsquos important to monitor the interaction of both staff and followers in this very public arena We use social media as part of a multi-channel recruitment strategy ndash to advertise our vacancies get employees to push vacancies to their networks endorse our roles and culture and generate excitement about our opportunities We also use social media to research our candidates ndash it can be a valuable source of information and help us gauge the fit of future talent

QWhat should SME law firms consider when using

a recruitment agency

AThere are a number of considerations

l Do they understand the roles and do they understand the skills qualities and behavioural attributes you are looking forl Do they understand your business your strategies aspirations and plansl Do they understand your values and culture Do they understand the importance of this alongside the technical skillsl Do they specialise Are they generalist How well do they understand your target audience l What is the nature of the contract and what does it include and exclude Is it an exclusive arrangement and what is the period of engagement Will you need to work with other agencies to ensure good coverage of potential candidatesl How will they communicate

with you and what needs to be approved within what timescales

QWhat are some key considerations for direct

recruiting

AWe are all trying to get candidates from the same

small pool and we cast our net as widely as possible to get the best outcome and return We also want every hire to be a long-term success

With direct recruitment you have to be very clear on how you define potential candidates and how you select and contact them Confidentiality and communication are therefore key factors Getting the pitch right and being confident in negotiations are also important We approach direct recruitment for example by advertising on our website on specific websites and on social media We also use our networks and we have a great staff referral scheme in place

QHow do you create a powerful brand to aid

retention

AAt Brethertons we have a dedicated people

programme that goes to the heart of attracting and retaining great people It is about layers of connected

change ensuring what we do makes a difference and that we understand the impact of business change on our employees Brand is about giving people an understanding of who you are and your identity It gives people a sense of belonging and value and the knowledge that their contribution matters

You can keep good people and make employees proud to work in your organisation in several ways But always be clear on their contribution how it is valued how their performance will be managed and measured and how it aligns with your overall corporate goals LPM

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LEGAL PRACTICE MANAGEMENT9

SEPTEMBER 2016IN PRACTICE Follow us and talk to us on Twitter LPMmag

Now that the UK has voted in favour of Brexit we ask LPM readers ldquoDo SME firms need a plan in place for when the UK leaves the EUrdquo

Want to write us a letter You know that thing no one does anymore You can email us a letter for publication to lpmlsncouk or post us something to LPM magazine 20 Mortlake High Street London SW14 8JN Or get in touch through our LinkedIn group at bitlylpmgroup

Follow LPM on Twitter

LPMmag

NAVEED AHMED HEAD OF IMMIGRATION LAW ASONS SOLICITORSThe uncertainty and far-

reaching implications of the UK leaving the EU undoubtedly exposes SME law firms to greater risks which must be effectively managed Strategic planning at primitive stages of the UKrsquos departure from the EU could very well determine the future viability of many SME law firms Diversification may well be key to prosperity after the break and full service law firms that are engaged in a variety of legal sectors such as employment health education retail intellectual property and financial litigation will be well-placed to navigate the storm

GORDON STARK COOMURGITROYDIn a time of uncertainty it

is better to be prepared ndash having a strategic plan in place is important as is knowing when to act The plan should identify risks but also seek out opportunities Firms may need to make decisions about their future during this protracted period of acute uncertainty ndash knowing when these decisions need to be taken what the options are and what the associated lead times will be to execute them will all be key components of planning

SEPTEMBER 2016IN PRACTICE

ANNABEL HAMPSHIRE MANAGING ATTORNEY STRATAGEM IPMSME law firms are no exception when planning for the

inevitable fallout of a post-Brexit United Kingdom The uncertainty over when the UK will leave the EU and the consequences of legal and structural reform make planning difficult Firms are taking immediate steps to reassure clients as well as educate them about the challenges presented in their specific field For the IP sector changes to protection and exploitation strategy will require careful planning but more immediately a review of contractual obligations may be necessary to mitigate unfavourable or unexpected reinterpretations of terms (resulting from practical effects of Brexit) by any party to the contract

ELIZABETH WEST HEAD OF ORGANISATIONAL DEVELOPMENT REDDIE amp GROSE

In our sector (patent and trade mark attorneys) we compete with EU firms Our European work is a mixture of EU law and other international law but we expect EU competitors to take advantage of the Brexit publicity to try to grab a larger share of that work Our plan includes protecting the revenue stream but wersquove had to put that in place now ndash even before an Article 50 notice is served Wersquod advise all SME law firms to challenge their assumptions about who their competitors are and who they will be after Brexit ndash cheer up and strategise

NICK DAVIS HEAD OF RISK AND COMPLIANCE GEDYE amp SONS

The British governmentrsquos well-made plans may not hit their ideal timetable ndash European leaders will have to try and strike a balance between the wants of the UK the European parliament and the views of their own voters (not to mention their own electoral desires) This is clearly a complicated subject and extends across the areas of law that firms practise and the demographic of their workforces SME law firms need a flexible and constantly evolving plan to be able to advise their staff and clients current or new They also need to be able to demonstrate impartial and accurate views on how any potential changes that come as a result of Brexit affect clients first and them second As part of their plan SME law firms should review any guidance notes issued by the Law Society and the SRA ndash adopting any rules and procedures (particularly relevant would be any change to the General Data Protection Regulation and AML fourth directive) so that their firms are ready and well prepared But a plan shouldnrsquot be overly rigid because itrsquos currently too early to tell what if any impact Brexit will have on UK law

YOURVIEW

LEGAL PRACTICE MANAGEMENT9

Follow us and talk to us on Twitter LPMmag

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VISIT LSNCOUKLPMB2016CALL RIKKI CLARK ON 0870 112 5058

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LEGAL PRACTICE MANAGEMENT11

SEPTEMBER 2016IN PRACTICE Follow us and talk to us on Twitter LPMmag

THE WAY TO WHY

BOOK REVIEW

One way of assessing the value of a book like this is by reference to the number of times it makes one think of something it can be applied to in your own career or organisation On that measure

alone Designing the Purposeful Organisation passes with flying colours

At the heart of Wilsonrsquos philosophy is the idea that to be successful organisations must be able to articulate compelling and inspiring reasons for their existence ndash not simply what they do but rather why they do it The usual poster boys for 21st-century business success are quoted as exemplars of this approach - Apple Google Microsoft Reference is also made to Simon Sinekrsquos TED talk (278 million views and counting) and related book Start With Why as a means of uncovering the primary reason for an organisationrsquos existence Indeed a key element of Wilsonrsquos writing style is to send the reader off at regular intervals to take in a TED talk or YouTube video or to reflect in more detail around the topic at hand This does at times make the book feel more like a business coaching session rather than a dry management treatise ndash which for the avoidance of doubt this reader sees as a definite plus point

While the stories around behemoths such as Apple and Google can be compelling I was more taken with the example of the African tax collection agency that Wilson was working with Rather than seeing themselves as taking money from people (the lsquowhatrsquo) he encouraged them to focus on their purpose namely to help fund new schools and hospitals across their developing nation (the lsquowhyrsquo) Articulating the why is also a key element of an organisationrsquos brand proposition Wilson reminds us that customers are more often than not buying why an organisation does something rather than simply what the organisation does Or put another way how many customers would be inspired to have brand loyalty for a firm which simply says that its fundamental reason for being is to maximise shareholder returns

Before anyone starts fulminating about the importance of financial returns Wilson does recognise that results matter However his concern is that they too often become all consuming A key pillar of the book is his belief (which he concedes may be controversial) that overly focusing on results is misguided and can create systemic barriers to better performance Or put more simply results measure our progress to a better future ndash they are not in themselves that better future

This is certainly something that chimed for me as the CEO

of a law firm Yes we all recognise the need to deliver improved financial KPIs However these are simply a means of measuring whether we are delivering value to our clients (given that clients are unlikely to be using and paying for our services where they do not perceive us to have any value) and are unlikely to be the things wersquoll look back on with pride in our dotage

This reassessment of the role of results is also central to one of the key conditions for a more purposeful organisation (and one which will particularly resonate with professional services firms) namely talent liberation Drawing on the work of Daniel Pink on personal motivation (for example Drive The Surprising Truth About What Motivates Us) Wilsonrsquos call is for firms to move beyond transactional performance (pay me X and Irsquoll deliver Y pay me a bit more than X and Irsquoll deliver a bit more than Y) Rather we need to help our people liberate the talent they have by playing to their strengths as opposed to the more traditional performance management model of fixing weaknesses

Wilson focuses particularly on how the proper articulation of purpose can engage millennials Borrowing from Laurence Boldtrsquos Zen and the Art of Making a Living he encapsulates this approach in three short questions What skills and other resources do you have What do you care about Whatrsquos stopping you from pointing A at B

It seems to be that in most law firm management seminars or discussions these days someone somewhere is lamenting the fact that they just donrsquot understand millennials And at last I have an answer for them ndash read Clive Wilson LPM

LPM reader discount ndash use code HRLPMB to get 20 off at wwwkoganpagecom

Designing the Purposeful Organisation How to Inspire Business Performance Beyond Boundaries by Clive Wilson

Publisher Kogan PagePublication date Feb 2015Price pound2999

Reviewer Chris Harte chief executive and partner at Morton Fraser

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LEGAL PRACTICE MANAGEMENT13

SEPTEMBER 2016COLUMNS

Barry DaviesPractice directorDouglas-Jones Mercer wwwdjmlawcouk

BARRY DAVIES PRACTICE DIRECTOR

ROLE MODELS

ABOUT Recent figures show that there are a shade over 130000 people on the roll of solicitors in England and Wales ndash 20 of those undertake an in-house role 80

are classed as employed An enormous number and this is before we consider the significant chunk of employees namely professional managers support staff and those lawyers who are not on the Law Society roll But lots of firms I speak with say lsquowe have too many partnersrsquo or they have reduced the number of lsquochiefsrsquo within their practice as part of their strategic planning

Where are we going with this What will the future firm look like What will its stakeholders (not necessarily shareholders) expect

The two facets that will impact upon the future will undoubtedly be generational attitudes and technology Though advancements in processing power will mean huge growth of AI systems over the next decade I think generational attitudes is the facet thatrsquos most interesting right now

Generation X lawyers (born between the early 1960s to mid-1970s) are often already partners This generation and the baby boomers before them are usually motivated by achievement and money Generation Y lawyers on the other hand (born in the 1980s or 1990s) are looking for something else Fearing that I sound like a textbook ndash specifically Frederick Herzbergrsquos theory of motivation hygiene ndash itrsquos not money thatrsquoll be the key factor in recruiting millennials but other drivers such as networks recognition quality of work and conditions

Developing reward and recognition strategies is

difficult enough for partners ndash so how does a law firm tackle its entire workforce A few years ago I held a discussion with a law firm partner and a question put to me was could the lsquoJohn Lewis modelrsquo fit a law firm This term is not only synonymous with the department store it has become a household phrase

Quite a few law firms have for some time now introduced a corporate partner ndash a limited company ndash as a partner within its practice with the intention of dealing with distribution of profits more efficiently or as part of a bonus pool So itrsquos quite interesting to hear that a highly regarded firm in the south west Stephens Scown has developed a similar model to the John Lewis theme

Whatrsquos different about this example is that a proportion of the firm is owned by a trust for its employees and not just its partners This gives the employees of the firm a greater sense of belonging and the added impetus to do well I am certain that some critics would question the mechanics of such a scheme and perhaps the barriers to entry such as defined profit levels but setting this aside it is a means of boosting staff engagement and eradicating the lsquothem and usrsquo mentality

With complications in all corners of law firm ownership new models will have to be explored to cover aspirations of all involved There could come a time when a crowdfunding option is explored generally and maybe the household name for staff stakeholder mechanisms in law firms will be the Stephens Scown model LPM

LEGAL PRACTICE MANAGEMENT14

SEPTEMBER 2016COLUMNS

In the April issue of LPM Stepien Lakersquos practice director Richard Hill brilliantly spelled out what to look for when trying to spot a lsquowhalersquo or big lsquophishrsquo ndash a situation where an

individual or firm is targeted researched and then duped into sending money to a cyber attacker

But just as awareness is essential so too is preparedness I thought it might be helpful to share some of the practical considerations that will help keep client funds safe (a requirement of principle 10 in the SRA handbook) including some things wersquove done in our firm in response to these very real threats

Perhaps the most feared event among all law firms is the very well-publicised lsquointercepted emailrsquo (dubbed the lsquoFriday fraudrsquo) But would we be surprised by just how many firms lawyers and clients freely provide bank details within the body of text in an email

This is an area where we recently tightened our procedures and introduced an explicit rule all bank details provided by a client especially in any email communication must be verified by a lawyer (by reconfirming those details with a person they know) The lawyer then signs to say that they have checked them

This has produced some unexpected benefits particularly for one client who provided bank details to us within the body of an email for remitting the proceeds of sale for his family business of pound32m When the lawyer contacted him to verify that the bank details were correct the client realised that he had transposed two numbers

Clearly this is a serious education piece not only for those responsible for finance and the lawyers within the firm but externally for the firmrsquos clients

There are a number of practical points to bear in mind when it comes to day-to-day security matters how do your lawyers communicate the client account details to its clients and do you always attempt to obtain client details for the remittance of funds at the start of the transaction for instance

Additional considerations might be when did you last review any bank payment elements in your email disclaimers terms of business and client care letters Is your payment procedure well-defined and documented (not just the finance element but also those relevant to clients and lawyers) And do you use any law firm identification checklists

These important issues should remain on the agenda so that theyrsquore constantly in colleaguesrsquo minds with regard to maintaining safe and efficient practices

There are some excellent resources available from your bank that can help to educate your colleagues and there are so many simple steps we can all take to make people aware of the problem Have you tried sending a few test phishing emails to individuals within the firm for

GLYN MORRIS FINANCE DIRECTOR

ABOUTexample to see how they respond

But what then If you are confronted with the metaphorical warning cry of lsquothar she blowsrsquo how will you and your people react You may need to have created a well-communicated process for dealing with a phishing incident

The 1851 classic Moby Dick tells the story of one manrsquos obsessive quest for revenge on a giant white whale ndash we might want to take just a hint of Ahabrsquos obsession in our approach to tackling the issue of cyber attacks Although if we can avoid the whale in the first place all the better LPM

THAR SHE BLOWS

Glyn MorrisFinance director Higgs amp Sonswwwhiggsandsonscouk

0800 328 0272 | wwwarchivestoragenet

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LEGAL PRACTICE MANAGEMENT16

SEPTEMBER 2016COLUMNSSPONSORED EDITORIAL

DOUG HARGROVE THE TECHNOLOGIST

DISRUPTION TO GO

ABOUT Change isnrsquot anything new itrsquos just another word for evolution But lsquodisruptionrsquo is certainly one of the words of the decade and one that is

usually connected to revolution ndash a significant alteration to the status quo and one that has far more immediate impacts

Disruption is also the go-to word for business commentators ndash especially when it comes to lsquodisruptive techrsquo ndash talking about new business start-ups or innovations Take the very latest craze to hit the headlines ndash Pokeacutemon Go has seemingly gripped the world these last few weeks with stock valuations heading skyward and comments about the app lsquodisruptingrsquo mobile gaming But therersquos nothing disruptive about the game it takes and utilises technology thatrsquos been around for nearly a decade (geolocation and augmented reality) and applies it in a new way Itrsquos that application of technology thatrsquos causing the disruption

Businesses like Uber and Netflix have built compelling business models on the groundwork of technology that is now pervasive (the smartphone and broadband internet respectively) Therersquos a lot here that firms can learn from itrsquos not necessarily about inventing new technology but about finding ways to use existing technology to create a new approach

So what opportunities are there for law firms to disrupt This can be looked at in two ways ndash disruption to the existing law firm business model and disruption to the user experience The first scenario has already been covered at length and is nothing new for the legal market there are already plenty of law firms out there

looking to change the way a law firm delivers its services to its clients and prospects ndash from franchise models to virtualised law firms Disruption to the law firm business model has been an ongoing force ever since the term ABS became associated with legal practices

The second scenario is a different matter It seems legal clients have been patiently waiting for the lsquodisruptive service deliveryrsquo model to come and there is plenty of opportunity out there for firms to position themselves differently with the modern consumer of legal services

Take a brief example of where old (or rather existing) technology can be used to differentiate ndash videoconferencing Itrsquos a fairly ubiquitous piece of technology thanks to the rise of Skype Facetime and the webcam which gives an instant user experience and a one-to-one connection that bridges the remoteness of a phone call and the need to travel for a meeting It doesnrsquot take much of a leap to imagine a service that allows consumers to access a lawyer instantly using this technology (maybe even a concept that combines the franchise model with an Uber-style app ndash connecting clients to the next available expert from a selection of associated law firms) The point is you donrsquot have to invent something new to be a disrupter ndash donrsquot be afraid to take existing technology and repurpose it to gain a competitive advantage

There are plenty of consumers of legal services who are willing to try out a new service or offering in the search for that great new experience ndash and for those law firms prepared to take the risk and disrupt there really is an opportunity to catch lsquoem all LPM

Advanced LegalRevolutionary solutions for legal services Contact Doug on 01476 573 718wwwadvanced-legalcouk

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LEGAL PRACTICE MANAGEMENT18

SEPTEMBER 2016COLUMNS

JANINE PARKER THE BROKER

WHAT PRICE EXCLUSIVITY

Itrsquos that wonderful time of year when the annual bombardment of brokers begins on your never-silent telephones All of them can ldquocarry out a full market exerciserdquo for you that will of course save you money

But whatrsquos the reality The marketplace is still murky and as a profession we donrsquot help ourselves by keeping it opaque So letrsquos objectively consider many of the claims brokers make attempt to clarify the true mechanics behind the market and consider how to best utilise it for the benefit of your firm

Since 2000 and the demise of the Solicitors Indemnity Fund competition for solicitors professional indemnity has increased This hasnrsquot always been generated through the number of insurers but the ever-increasing number of brokers who purport to be experts in this very niche area of insurance This has increased pressure on insurers to lower prices (a good thing for clients up to a certain point) but this pressure combined with some extreme economic factors has contributed to many insurers withdrawing from the market over the past decade

Competition is good for consumers and it encourages innovation to make sure that brokers and insurers can differentiate themselves by developing their product offering

Some brokers organise lsquoexclusiversquo arrangements with insurers often segmented by the number of partners within the firm ndash which is a very artificial way of dividing up the profession But this is the marketplace wersquore in today and itrsquos worth looking a little closer at these lsquoexclusivesrsquo

All the direct access points are listed in the Law Society buyer guide and in practice itrsquos only a handful of brokers who actually hold the exclusive with direct access to the underwriters It is essential to note that these exclusive agreements are not always lsquotiedrsquo arrangements The broker is not bound to place all their business with their one exclusive insurer and itrsquos often the case that those brokers who hold the exclusive arrangement also enjoy strong relationships with the open market insurers

To increase distribution brokers who hold exclusive arrangements will offer access to other brokers who wish to take advantage of the exclusive products available These brokers donrsquot have their own facilities There are many commercial reasons for opening an exclusive to other brokers but itrsquos important to note that the extra broker in the chain will dilute your relationship with the placing broker and ultimately your insurer Marketing materials can often be unclear as access to exclusives is readily used ndash but in reality these brokers will be approaching another broker to do this

Often law firms will be unaware of the number of brokers in the chain and will unwittingly be paying additional brokerage and fees unnecessarily Direct access allows for better communication between your firm and insurers which can often lead to more competitive pricing Removing a broker from the chain can lead to the process of claims handling being more efficient and effective as there are less obstacles in the chain of communication

In summary no one broker has direct access to every insurer and it is possible to approach more than one broker and not be at risk of flooding the market If using more than one broker be clear who you would like them to approach and be aware whether they have to go through another broker to ultimately reach the insurer LPM

ABOUT

SPONSORED EDITORIAL

ParagonBetter broking for legalContact Janine on 020 7280 8200wwwparagonbrokerscom

LPMLEGAL PRACTICE MANAGEMENT

SUPPLEMENT SEPTEMBER 2016

BUSINESS INFORMATION FOR EVERYONE IN PRACTICE MANAGEMENT

LPM INSIGHTS

Sponsored by

How do SME law firm management leaders see the future

LEGAL PRACTICE MANAGEMENT20

SEPTEMBER 2016LPM INSIGHTS

ALL CHANGE

22WHATrsquoS NEXT We analyse the 2016 LPM conference polling data

2 1 COMMENT Accesspointrsquos Richard Roebuck on legalrsquos increasing digital dangers

Change and transformation are words that strike fear into the most hardened of legal management hearts because they are hard to do and even

harder to make stick But change must happen inside todayrsquos SME law firms to make sure they stay in business in tomorrowrsquos world

At this yearrsquos Legal Practice Management conference in London we polled our audience of law firm management delegates on a range of topics Some questions wersquove been asking since our first LPM conference back in the misty era of 2012 Much has changed in the world since then (new UK governments drones are now lsquoa thingrsquo Donald Trump) but legal not so much The rise of the ABS has been slow (though impactful) and the recession has for many businesses faded into a distant memory compared to the Brexit debate

But SME law firms rightly smell a real need for change in the wind ndash and perhaps though they seem to find it hard to name that change the clues are legion Letrsquos find some

LPM London 2016 delegates named the greatest hurdles to their firmsrsquo growth or further success as lsquoacquiring high-quality staffrsquo and the lsquoinability to create change within the firmrsquo Might the solution to one lie in the other Great talent wants to flock to fresh and vigorous businesses and younger legal eagles are increasingly shy of throwing their lots in with the fusty world of partnership Law firm leaders must look at how their businesses are run and who runs them and how people work if they are to attract great people ndash and in doing so they will create the change they seek

Herersquos another 52 of delegates named lsquoclient pressures on costrsquo the factor thatrsquos having the biggest impact on the SME legal market ndash but when asked how important price is when winning business 67 said itrsquos just lsquoone of a range of important factorsrsquo while 21 said itrsquos lsquonot as important as other things such as relationshipsrsquo This is a disparity I canrsquot quite understand but it doesnrsquot sound like the SME legal market truly gets the shift thatrsquos happening on the client side and how much change needs to happen inside firms to meet this challenge

Read on and come to your own conclusions but I think the clues are now becoming obvious I hope your firm sees them too LPM

Rupert Collins-White editor-in-chiefLPMmag | rupertwlsncouk

You donrsquot as the song goes need to be a weatherman to know which way the wind is blowing in the legal market ndash but just because the clues are there doesnrsquot mean you can be complacent about acting on them

CONTENTS

FEATURES

LEGAL PRACTICE MANAGEMENT21

SEPTEMBER 2016LPM INSIGHTS

MORE TECHMORE SECURITY

INTRODUCTION TO THE RESEARCH FROM OUR SPONSOR RICHARD ROEBUCK MANAGING DIRECTOR ACCESSPOINT

After a recent period of uncertainty it would now seem that most firms are confident about their future especially in light of Brexit Whatrsquos also certain is

that most firms are very conscious that to compete they will need to change and adapt themselves for the challenges ahead

With growing concerns about the lack of high-quality people available and what appears to be a reliance on quality individuals driving more lucrative fee-earning work is it time for a gear change

Perhaps the dawn of high-volume low-margin fixed fee work which many firms feared has now arrived As always with change there are challenges to be faced but for those clever early adopters there lies opportunity Making light of the more process-driven tasks and finding more effective efficient ways of completion to deliver client-facing benefits seems key to the wider future of the fixed fee legal landscape

With the growing acceptance of cloud technology and the increasing introduction of new software applications and solutions the legal world has moved on at an improved pace this past couple of years And the world is now clearly keen for more ndash to satisfy its desire for a more accessible and mobile working environment What is key for this trend is that the lsquoquality of the deliverablersquo has an ongoing programme of improvement that benefits both the firm and its clients

As progress pulls us forward there will always be elements arrayed against us Alongside the opportunities hiding in the polling from LPM this year therersquos also a sense of fear and concern around possibly the biggest threat to risk and security there is right now ndash the dark byproduct of technological success cybercrime

Cybercrime is fast growing with ever more complex attacks making headlines It is now one of the most common criminal offences in the UK An increasing number of individuals are exploiting the speed and anonymity of the internet to commit a wide range of criminal activities having no conscience and knowing no borders

It isnrsquot our fault websites get hacked but poor internet safety habits can put us at risk Reusing passwords or using weak passwords make us easy targets for identity theft Remembering multiple passwords can be a pain but there are web services and associated applications that can help such as two factor authentication quality mail management systems URL threat protection and mail encryption

For many firms the biggest threats tend to be by way of the ever-open door into our networks and devices ndash email

Our eagerness to respond almost instantly to emails throughout what will be for most an already pressured day is perhaps the dominant daily activity to foster an unwanted lapse in security In the past 18 months alone I have seen three firms that were truly caught out ndash some with the potential for significant financial penalty by opening email attachments The most common lsquogotcharsquo is an email that appears to have come from the office scanning platform whereby the email address has been cleverly spoofed to appear legitimate (for example downstairscopiermyfirmdomaincouk) There are so many existing and newly circulating threats of this calibre and type that even the most aggressive of filtering systems struggle to keep up

Do you know the name(s) of your copiers and the associated email addresses Do you stop to think before opening the innocuous Word attachment ldquoDoesnrsquot our scanner usually send PDF files Why has a covering note not been included with the attachmentrdquo Stop think and call for advice

Another infamous scam is the spoofing of email addresses of key people within your firm ndash for example an email to the head of accounts appears to be from the senior partner ldquoPlease send pound17000 to account X at your earliest convenience and confirm once processedrdquo it says Stop ndash is this your agreed process

As the demand grows and we extend our reach out into the online world so cybercrime advances ever closer seeking unauthorised access through our front door Quite clearly online is the future but we need to embrace it with the necessary skill sets and processes in place for our convenience wellbeing and prosperity LPM

There are so many existing and newly circulating threats of this calibre and type that even the most aggressive of filtering systems struggle to keep up

Accesspoint are independent legal IT specialists who consult on a variety of information technology-related issues offering the best in IT solutions to help firms work more effectively

Contact Richard and the team on 0203 189 2645wwwtheaccesspointcouk

LEGAL PRACTICE MANAGEMENT22

SEPTEMBER 2016LPM INSIGHTS

SME law firms are in a battle for survival Whether they know it or not they have huge challenges to face in the next few years ndash around succession planning technology replacing lawyers and being

used by competitors to attain a competitive edge and catering to clients who increasingly want cost predictability transparency and availability

These market pressures were addressed at the LPM conference in May 2016 which was attended by over 100 delegates all SME legal management leaders The delegates were polled on the day about what they thought of the pressures facing them and how theyrsquore planning to overcome them ndash and their answers provide valuable insight into the SME legal market

The polling results show that LPM conference delegates were aware of the severity of the challenges they face Three-quarters of legal management leaders we polled at the 2016 LPM conference thought that the challenges theyrsquoll face in the next five to 10 years will be lsquomorersquo or lsquomuch morersquo serious than in past years And 58 of delegates thought that the challenges in the next year to two years will be lsquomore serious than in past yearsrsquo

How they will face these challenges depends at least partly on attitude ndash whether they believe they can win or will eventually lose the war Fortunately most LPM conference delegates were optimistic about their firmsrsquo futures - 81 were either lsquocautiouslyrsquo or lsquoveryrsquo optimistic about their place in the legal market of the future

This doesnrsquot necessarily suggest that theyrsquore confident in the market overall particularly after the market instability brought by Brexit Legal management leaders might believe their firm is the only one thatrsquoll survive due to expertise in a particular area or niche In any case it indicates market confidence and a confidence in the ability of their firm to compete and succeed

But is this optimism misplaced in a market where the future is increasingly uncertain and competitive Are firms really ready for change on a huge scale as their confidence might suggest What are the issues currently keeping SME legal leaders awake at night

In this report LPM shines a light on the SME legal market through the eyes of our legal management leader audience ndash those driving their firms through an uncertain new world

WHATrsquoS NEXTChange is on the agenda for LPM firms but how to address the biggest challenges and which ones to face first is a tough call finds Patrick Wingrove

More serious than in past yearsMuch more serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch less serious than in past years

51

14

8

3

24

More serious than in past yearsMuch more serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch less serious than in past years

How would you rate the challenges your firm faces in the next five to 10 years

More serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch more serious than in past yearsMuch less serious than in past years

58

17

6

0

19

More serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch more serious than in past yearsMuch less serious than in past years

How would you rate the challenges your firm faces in the next year to two years

What is the greatest hurdle to your firmrsquos growth or further success

What is the greatest hurdle to your firmrsquos growth or further success

LEGAL PRACTICE MANAGEMENT23

SEPTEMBER 2016LPM INSIGHTS

TIMES THEY ARE A CHANGINrsquo The overriding theme of the 2016 LPM conference was change ndash how firms can implement it the drivers behind it and the various blockers to it But the first step to change is gauging which factors will have the biggest impact on the legal market Just over half of legal management leaders we polled thought client pressures on cost like demanding fixed fees will have the biggest impact while just over a quarter thought it will be competitors attaining a market advantage using technology

How quickly do firms need to respond to these oncoming market pressures Well 86 of LPM conference delegates thought that change needs to happen in their firms within the next two to five years But 14 said that their firm doesnrsquot need to change significantly perhaps because theyrsquove beaten the rest to the punch their legal business is somehow immune to new pressures ndash or they have their heads in the sand

Legal has traditionally been resistant to change and itrsquos not surprising that some firms still are says Sean Stuttaford COO at Essex firm Thompson Smith and Puxon (TSP) and 2016 LPM conference delegate ldquoThere are still firms out there where partners donrsquot have computers on their desks ndash theyrsquore stuck in their ways and just point blank refuse to

52 26 5 12 5

develop their business for the futurerdquoBut legal management leaders willing to implement

change may still find it difficult as 60 of LPM conference delegates polled thought that lsquochange isnrsquot really understood at their firmrsquo

GROWING PAINSJust over a quarter of LPM conference delegates also thought that an inability to create change within their firm would be the greatest hurdle to the businessrsquos growth or further success ndash though Stuttaford at TSP suggests voters might have blamed the traditional partnership business model for the same reason

But acquiring high-quality staff was considered to be the greatest hurdle for growth or success by 36 of delegates Rebecca Patterson HR manager at Kent firm Thackray Williams and 2016 LPM conference delegate says that she agrees with this result ldquoOur firm has a particularly tough time finding quality support staff ndash we could perhaps stand to invest more in competency frameworks and performance management and training opportunities to aid recruitment and retentionrdquo

William Robins operations director at lsquodistributedrsquo firm Keystone Law and a 2016 LPM conference speaker says

12 36 27 13 12

Lack of fundsAcquiring high-quality staffInability to create change within the firmTechnologyThe traditional partnership business model

Out of these which factor is having the biggest impact on the SME legal market

Client pressures on cost (eg fixed fees)Technology creating advantage for competitorsConsolidationDifficulty in finding routes to growth (eg funding)Something else

What is the greatest hurdle to your firmrsquos growth or further success

LEGAL PRACTICE MANAGEMENT24

SEPTEMBER 2016LPM INSIGHTS

offering a more flexible remote or mobile working set-up for everyone in a firm is an excellent way to attract talent (Keystonersquos model of course is founded on remote working) Perhaps the majority of legal management leaders polled at the 2016 LPM conference agree since their firms have either adopted a flexible remote or mobile working set-up are planning to adopt one or are considering adopting one ndash though there are other advantages to remote working such as reducing overheads In any case the results indicate that the SME legal working landscape is becoming considerably more flexible

But remote working doesnrsquot work for everyone Mary Mocklow CEO at West Midlands firm Talbots Law and 2016 LPM conference delegate says that their high-street set-up wouldnrsquot allow it ldquoThe majority of our staff are client-facing and need to be present at the office ndash and while there are other staff at Talbots that might benefit from remote working you canrsquot have a policy for one and not for allrdquo

CYBER THREATSTechnology was clearly a significant concern for legal management leaders who attended the 2016 LPM conference Patterson at Thackray Williams says some firms have had a hard time finding software that caters to their needs as a business and an LPM conference poll seems to back this up just under half of legal management leaders polled at the conference thought project teams should write law firm software indicating a desire for cross-department input into its creation But the poll also indicates that legal software providers have to a large extent been meeting their clientsrsquo needs

The rising threat of cybercrime was also a clear concern for LPM conference delegates ndash 92 of SME legal management leaders said their firms have cyber risk on their management meeting agendas Stuttaford at TSP says ldquoItrsquos something firms need to be constantly aware of and take precautions against not just by purchasing good firewall and antivirus software but by educating staff about password discipline authentication processes and suchrdquo

32 18 14 33 3

Is cyber risk on your management meeting agenda

92

5 3

Yes No Dont know

Is your firm moving to a more flexible workingremote or mobile working set-up for everyone in it

YesNoConsidering itWe already do itDont know

LEGAL PRACTICE MANAGEMENT25

SEPTEMBER 2016LPM INSIGHTS

PRESSURES AND PRICINGClient pressures on cost was also a major concern for legal management leaders polled at the conference so it may not be surprising that just over half of them said 50 or more of their firmrsquos work is some form of fixed fee This doesnrsquot necessarily suggest that the other half arenrsquot open to the concept of fixed fee ndash Mocklow at Talbots points out that fixed fees work for certain types of work ldquoHigh-street firms like Talbots can benefit greatly from fixed fees which is why 75 of our work is fixed fee but itrsquos more difficult to apply to firms that specialise in something like admiralty lawrdquo

The industry seems to think that the value of service has been lost to the price obsession in some areas but not in others ndash and while pricing is clearly a vital issue for SME firms 88 of legal management leaders polled at the LPM conference thought that itrsquos lsquoone of a range of important factorsrsquo or lsquonot as important as other thingsrsquo Patterson at Thackray Williams says that maintaining a good relationship with clients is often more important than pricing though pricing can be a means to achieving client satisfaction ldquoIt also depends on the client ndash in something like conveyancing first-time buyers might be looking for fixed fees or the cheapest price but for commercial clients that may not be as important as reputation or relationshiprdquo

TREASURE MAPPINGLegal process mapping often used by lsquobig lawrsquo and making inroads into SME legal could potentially make SME firms a great deal more efficient and therefore more competitive Two-thirds of legal management leaders polled had heard of process mapping and 79 thought that it is relevant to the business of law Stuttaford at TSP says he agrees ldquoFirms should look at their processes learn from them and figure out how to improve those processes ndash this question really made us look at what TSP has done so far in terms of what legal processes wersquove mapped and whenrdquo

To sum up LPM conference delegates were aware of the challenges that face them but were mostly optimistic nonetheless This may be because they know they need to change and in spite of the fact that change isnrsquot really understood at their firms are planning to mend their ways to meet future market pressures ndash generally putting the client first while keeping talent and technology high on their agendas LPM

Are aware of this thing called legal process mapping

66

34

Has the value of service been lost to the price obsession

23

23

54

Yes No Depends on the service Dont know

Yes No

How important is price in winning business

8

4

67

21

CriticalMore important than almost all factorsIts one of a range of important factorsNot as important as other things such as relationshipsIts one of the less important things in reality

What is the greatest hurdle to your firmrsquos Are aware of this thing called legal process mapping

LEGAL PRACTICE MANAGEMENT27

SEPTEMBER 2016COLUMNSSPONSORED EDITORIAL

Welcome back LPM readers ndash the new school term has started summer is (pretty much) over and the UK is back in full throttle after the summer break And what a break itrsquos been at

File Queen HQ (wersquove taken the time to get our clients up and running with augustprojects as well as started our new Instagram feed filequeenadds)

With the start of the new learning year wersquore focused on the education of you lovely LPM readers ndash with our attention turning back to the General Data Protection Regulation You may remember that in our last LPM article we ran through the 12 steps to tackle the GDPR helped by the awesome people at the Information Commissionerrsquos Office ndash wersquove provided a link to their 12-step resource via our website wwwarchivestoragenetnewsgdpr

Over the next three columns wersquoll be taking these steps and breaking them down for you ndash starting with step one awareness The File Queen (myself) and the team at ADDS have been promoting this step as the most important for all legal practices

ldquoWhyrdquo we hear you holler Well this step is the all-important life raft that unites your practice and team members to help you in the GDPR fight for survival (dramatic I know)

Getting the team on board ndash this buy-in needs to include all ranks of staff ndash from the managing partners to your suppliers But how do you do this Well here are some File Queen tips for when we at ADDS are rolling out projects

Lunch and learn ndash with a register People love to eat and be social so get your legal business to book in a couple of lunch and learn sessions Donrsquot limit this to one date ndash you must run at least two or three so people have the option of which dates to attend Make sure you make a register for those that actually turn up (we all know a calendar acceptance doesnrsquot mean theyrsquoll actually appear) This will allow you to chase down the members of the team you need to get on board for the next one

Have some decent sandwiches nibbles and soft drinks and give the team an overview of the GDPR Run through the 12 steps and make sure you educate them on why everything is so important (make sure you mention the increased fines and audits) During this time let the team know that there are several steps along the way that yoursquoll need their help and support for and which you wonrsquot be able to achieve on your own Tell them that the businessrsquos reputation and brand is on the line and that you need everyone on board to lend a helping hand and spread the word

Another great File Queen tip at this stage is also to get some additional funding from the practice manager for a wine and quiz night at the end of the lunch and learn periods This can be part of your social gathering on a Friday straight after work ndash with some more nibbles and wine Assign people to teams and have a GDPR quiz The winning team gets an award and everyone has fun and learns at the same time Follow our twitter feed as wersquoll be tweeting some great questions to ask thefilequeen GDPRQUIZ

We know itrsquos a lot to organise but there are only four months left in 2016 and GDPR practices must be in place by 25 May 2018 And believe me when you have to roll out rather hard core legislation you have to make it fun and interactive to get people on board LPM

ABOUT

NATASHA RAWLEY THE FILE QUEEN

EDUCATING YOUR PROS

ADDSSaving firms from paper hellContact Natasha on0800 328 0272wwwarchivestoragenet

LEGAL PRACTICE MANAGEMENT28

SEPTEMBER 2016FEATURES

28

Patrick Wingrove talks to the founders of Proelium Law about their work providing legal advice in high-risk environments and conflict zones and the challenges of setting up shop in a new and risky area of law

Legal commandosProelium

Compared to the day-to-day lives of Proelium Law founders and partners Richard Stephens (above left) and Adrian Powell (centre) the average lawyer leads a pretty humdrum life Though UK-based the

firm has a strong international focus ndash Stephens and Powell regularly travel to provide legal and business advice to companies and individuals in high-risk professions or working in hazardous environments across the globe including conflict zones in Iraq Syria and Afghanistan Powell says that itrsquos a challenging but exciting area of law to be in and that ldquono two days are ever the samerdquo

The firm was established as an ABS in November 2015 allowing Powell and Stephens to operate as partners although Stephens isnrsquot a lawyer Powell qualified as a solicitor in 2004 after spending 11 years of his career in the British army and post-2006 worked on various high-risk projects around the world ndash giving him the inspiration for Proelium He says ldquoThe idea came to me in Baghdad in 2009 while working for a private security company as a legal adviser ndash I thought lsquoWhy isnrsquot there a firm doing thisrsquo But I soon realised that I needed someone on the ground who wasnrsquot a lawyer to help make it happenrdquo

That person was Stephens He previously served in the Royal Marines worked as a Whitehall-based strategic planner for the UK government and commanded a special operations regiment (which is why we couldnrsquot show you his face but itrsquos a nice issue of LPM) He now works primarily on the business development side of Proelium ldquoJoining Adrian who Irsquod previously worked with on projects around the

LAW FIRM PROFILE

LEGAL PRACTICE MANAGEMENT29

SEPTEMBER 2016FEATURES

world at a firm meant I could do fascinating and important work with the credibility that being a partner in a regulated business providesrdquo he says

Their work has certainly been interesting Proelium has cast its net far within the niche high-risk sector ndash advising UK-based service providers on the complexities of working in hostile environments conducting business and human rights due diligence and ensuring anti-money laundering counter terrorist-financing and anti-bribery compliance for companies intending to run in high-risk areas or conflict zones to name a few Recently theyrsquove also been working on developing capability for national intelligence organisations overseas ndash but for fear of being jailed for treason Stephens and Powell didnrsquot elaborate hellip

Powell says that the challenges companies face in these areas are numerous ldquoTherersquos a real technical knowledge in understanding how organisations physically work overseas These companies are good at what they do but that doesnrsquot necessarily translate into being business-savvy when it comes to operating in frontier markets ndash thatrsquos where Proelium adds valuerdquo For example after a client was recently exposed on an arms deal they were able to quickly discern liability and ensure that all necessary agencies and departments were appropriately informed

Powell and Stephens joke about how theyrsquore the number-one firm in their sector ndash admitting that to their knowledge theyrsquore the only firm that specialises in this area of law They added that itrsquos an untapped niche in which Proelium will be a pioneering force but which has also recently come onto the radar of a larger firm Theyrsquore alluding of course to Proeliumrsquos recent venture with Harrison Clark Rickerbys ndash a joining that combines Proeliumrsquos experience working in high-risk jurisdictions with the manpower and existing defence and security expertise of

HCR Powell says ldquoWhat they donrsquot have is our connections and our experience They like the idea of the sector because they see it as an interesting area and the partnership will allow us to offer a wealth of different legal services while letting us focus on what we do bestrdquo

As part of their ambitions for Proelium Powell and Stephens are keen to train a new generation of lawyers whorsquoll specialise in the high-risk sector ldquoWe have confidence in what the younger generation has to offer and we want them in our industry to continue our work in this relatively untapped areardquo says Powell Stephens adds that itrsquos also a matter of succession planning ldquoWe want the firm to operate long into the future but we donrsquot necessarily want to be running it ourselves for the next 20 yearsrdquo Proelium currently employs two interns as part of this commitment including University of Surrey law student Ruby Jamieson (pictured) She says ldquoWorking [at Proelium] has given me loads of insight already ndash itrsquos very niche

very new and Irsquove really enjoyed helping develop the business I feel that itrsquoll open a lot of doors when I graduaterdquo

In terms of expansion Proelium has recently opened a new office in the City of London Powell says that his home was originally the firmrsquos practising address but a large portion of their client-base is in London ldquoand we couldnrsquot keep having our meetings in coffee shopsrdquo

But Powell and Stephens are firm believers in the concept of remote working which works particularly well for their business

ldquoMost of our clients are either in London or outside the EU so Irsquom always away but all my phone calls are redirected from the new office to my mobile so I can keep in touch with clients whether Irsquom in Dubai or Baghdadrdquo says Stephens Powell adds that he feels remote working has the added benefit of keeping staff happy by letting them work from home which he says certainly makes him more productive as a fee earner

Proelium isnrsquot looking to expand into areas it has no interest in like family law but theyrsquore taking a keen interest in the emerging area of cyber law and are considering taking steps into that world ldquoLike high-risk law no onersquos really wrapped their arms around cyber law yet Therersquos cyber law in the US but it doesnrsquot exist per se in the UK except in terms of data protectionrdquo

When asked what advice they could give to SME firms based on their unique experiences in their sector Powell and Stephens said firms should know the areas of law they practise inside and out Powell says ldquoWersquore concerned with being experts in our field ndash a lot of our clients have peoplersquos lives in their hands and are not in the business of nonsense which is why they come to us We give sound researched legal advice based on experience and if we donrsquot know something we send the client to someone who doesrdquo LPM

ldquoCompanies are good at what they do but that doesnrsquot necessarily translate into being business-savvy when it comes to operating in frontier markets ndash thatrsquos where Proelium adds valuerdquo

Proelium

Two fee earners four total staff

Offices City of London Wirral Cheltenham

Specialisms International criminal commercial and conflict law due diligence sensitive investigations

LPM FACT FILE

ldquod2u is the UKrsquos number one outsourced transcription service for medical and legal professionals and highly competitive all over the world We pride ourselves on saving our clients time and money as well as offering state-of-the-art security and a first-rate servicerdquo Daryl Leigh CEO dictate2us

LPM magazine has agreed a special deal for its readers with dictate2us ndash 5 off your monthly

transcription bill for one year if you sign up through the dedicated LPM link or call and quote LPM2016 when signing up You can trial the service for free before committing

CUT COSTS INCREASE EFFICIENCYAll firms could benefit from outsourcing transcription to dictate2us ndash but even more so with our LPM deal 5 off your first year

wwwdictate2uscomlpm

Use d2u and enjoy the benefits ofbull Fast turnaround timesbull Secure and confidential servicebull Secetarial cost reductions of up to 60bull Guaranteed 985 minimum accuracybull iPhone Android and Blackberry apps with one-hour turnaroundbull 100 output - only pay for the time you talkbull Free no obligation trial

This special LPM magazine reader deal only relates to customers that execute an agreement for a minimum term of 12 months with a minimum monthly commitment of 500 minutes LPM magazine sought two law firm references for dictate2us to verify its claims for quality and delivery The 5 deal only applies to the first paying year the customer is with dictate2us LPM magazine is not responsible or liable in any way for work done by dictate2us and is an advertising referrer only

d u2 dic t a t e 2 u s

SPECIAL READER OFFER

The d2u Transcriber app is free to download from Apple and Android app stores and BlackBerry App World

OFFER 5 OFF

YOUR FIRMrsquoS FIRST YEAR OF

TRANSCRIPTIONSIGN UP ONLINE

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WHEN CALLING

LPMLEGAL PRACTICE MANAGEMENT

LPMLEGAL PRACTICE MANAGEMENT

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LEGAL PRACTICE MANAGEMENT31

SEPTEMBER 2016FEATURES

Patrick Wingrove speaks to management leaders from SME and top 100 law firms that have recently achieved significant growth to find out how to go from acorn to oak tree

FROM MINNOW TO

For many SME firms growth is the goal ndash but it doesnrsquot have to happen in the ways that many have scaled in the past The era of organic slow quiet steady partnership development over decades is

increasingly at odds with a fast-paced digital world Strategies for growth in the legal market are now closer than ever to the rest of the business world ndash and any size firm can learn how to do it

Big or small there are similar tools in the box for making growth happen and similar challenges Lessons abound but some of the best can be taken from those firms not far outside the famous lsquotop 100rsquo legal businesses in the land ndash those that have already grown up and now have the top tier in their sights There are also lessons to draw from smaller but rapidly scaling law firms

There are many growth strategies for organic and acquisitive growth ndash and no easy answer for which is right for your firm To shine a light on the subject wersquove spoken both to SME and top 100 firms about growth and how to do it (and importantly how not to do it)

MAMMOTH

LEGAL PRACTICE MANAGEMENT32

SEPTEMBER 2016FEATURES

MODELS OF GROWTH According to the Lawyer the two fastest growing firms in the top 200 this year are Midlands-based Knights and lsquodistributedrsquo firm Keystone Law ndash currently placed 119 and 122 in the 2015 UK 200 rankings but whose revenue will now put them well inside the 2016 top 100 (due for release October 2016) Both attribute their growth to non-traditional business models ndash and very different non-traditional models at that

Knights corporatised in 2014 to remove the barriers from its decision making processes which CEO David Beech says has been the key to its growth ldquoEquity partnerships donrsquot grow particularly quickly because itrsquos hard to achieve consensus and make decisions that enable fundamental or rapid growth among equity partnersrdquo

Knights acquired Oxford-based Darbys earlier this year ndash a move largely behind the revenue increase that will put them in the top 100 ndash and completed the transition inside three months which Beech says would have been next to impossible under their old business structure ldquoNot only was a quick turnaround good for the books it saved significant time and money that could be invested elsewhere in the businessrdquo he says

Top 100 firm Simpson Millar is one step

ahead of Knights The firm broke the glass ceiling to become a top 100 firm in 2015 and like Knights the firm attributes its growing success to corporatisation ndash but in a different manner

It sought to be and was eventually acquired by PLC Fairpoint Group in 2014 Simpson Millar continues to run as an LLP under the same management team and existing trading brands but as a business unit within Fairpoint

Managing partner Peter Watson says that one of the key reasons to pursue this particular growth strategy was to provide an injection of capital for MampA ldquoWe completed the sizeable acquisition of Colemans last year for example which we were only able to do with considerable investment from Fairpointrdquo

Being part of a PLC has also given the firm access to strong MampA and project management capabilities ldquoAcquiring Colemans doubled the business overnight ndash for something like that you need strong MampA experience and access to that team within Fairpoint was crucial in getting the deal across the linerdquo says Watson Simpson Millar also built a strong digital strategy launched new products and focused on pricing ldquoCall it fixed fees or packaged fees the point of it was to say to consumers

Square One Law

Revenue pound5m

31 fee earners 53 total staff

Offices Newcastle-upon-Tyne

Specialisms Commercial corporate property employment EU and competition law finance litigation private client

LPM FACT FILE

Knights

Revenue pound40m (year end 2017)

375 fee earners 450 total staff

Offices Chester Cheltenham Newcastle-under-Lyme Derby Oxford Hale

Specialisms Full service firm

LPM FACT FILE

LEGAL PRACTICE MANAGEMENT33

SEPTEMBER 2016FEATURES

lsquoWith us you know exactly what yoursquoll get and how much itrsquoll costrsquordquo

PEOPLE PLEASERSThe ability to implement change has also been an important part of delivering a growth strategy This isnrsquot necessarily surprising ndash polling at the 2016 Legal Practice Management conference showed that legal business managers thought it was one of the greatest hurdles to a firmrsquos growth or success only topped by acquiring high-quality staff In Knightsrsquo case the two challenges were addressed together Beech says Knightsrsquo corporate rather than partnership structure also allows it to recruit talented people without having to deal with the inherent politics of an equity partnership

ldquoAcquiring the best talent has been a central part of our growth strategy ndash if a candidate can help the business through expertise or client following we can just recruit themrdquo he added

But a successful growth strategy incorporating talent isnrsquot just about recruiting quickly as we analysed in the July 2016 issue of LPM ndash itrsquos about recruiting well Firms also need to make themselves an attractive prospect for legal talent in order to grow

William Robins operations director at Keystone Law says his firmrsquos lsquodispersedrsquo model allows it to do that by offering new fee earners the chance to work remotely with less supervision ldquoWersquore typically hiring about a lawyer a week ndash bringing their expertise fee-earning capability and client following with them ndash and that is the core part of our growth strategyrdquo The firm has buttressed its recruitment capability by hiring a director of recruitment to focus almost entirely on lawyer enrolment (recruiting talent to recruit talent ndash neat)

Though the distributed model may not be for everyone says Robins implementing some form of flexible mobile or remote working should be part of any firmrsquos growth strategy because it allows firms to increase their fee-earning capability without accruing fixed overheads such as office premises

And there are other ways to be talent-attractive As a core part of its growth strategy Newcastle-based firm Square One Law ndash which achieved 30 growth in the

last financial year ndash has pledged to create a supportive and inspirational team environment offering high-calibre work to attract the best talent Ian Gilthorpe senior partner at Square One says ldquoGood people want to be inspired to be valued for what they do and feel as though theyrsquore making a contribution The key is to engage with all your staff to facilitate a culture where staff feel happy at work work for each other trust each other and ensure that they see the value in what they do ndash if you do that more talent will comerdquo

He added that itrsquos important for

recruitment to convey staff satisfaction to the outside world which Square One has achieved by including staff video-testimonials on its website

But recruiting is only half of an effective people strategy ndash the other is retention Simpson Millar has attempted to create an environment that its talented staff wonrsquot want to leave Says Watson ldquoToo many firms worry about what will happen if their rainmaker goes somewhere else and takes clients with them ndash so they put the shackles on make them feel unhappy and make it so that they canrsquot realise their full potentialrdquo Creating such an environment makes firms an attractive target for lateral hires when they should be building a place people want to join

PRACTICE AREASSME legal businesses donrsquot necessarily need to change their business models completely to achieve the same growth as

Thorntons

Revenue pound20m

209 fee earners 430 total staff

Offices Dundee Edinburgh St Andrews Perth Cupcar Kirkcaldy Anstruther Arbroath Montrose Forfar

Specialisms Full service firm

Keystone

Revenue pound202m

198 fee earners 230 total staff

Offices London Bristol Isle of Man Australia

Specialisms Corporate and commercial dispute resolution property

LPM FACT FILE

LPM FACT FILE

Equity partnerships donrsquot grow particularly quickly because itrsquos hard to achieve consensus and make decisions that enable fundamental or rapid growth among equity partners David Beech CEO Knights

Simpson Millar

Revenue pound316m

322 fee earners 539 total staff

Offices Birmingham Bristol Cardiff Cheadle Hulme Gateshead Kingston-upon-Thames Lancaster Leeds Park Place Leeds St Pauls Street (head office) London Manchester Newcastle

Specialisms Full service firm

LPM FACT FILE

LEGAL PRACTICE MANAGEMENT34

SEPTEMBER 2016FEATURES

our examples but removing blockers from decision-making making themselves more attractive to talent and finding the right funding for growth are increasingly important and the partnership structure may not enable it

But of course that means asking some turkeys to vote in a Yuletide election Fortunately there are other ways to achieve impressive growth mainly investment andor expansion into new geographic or practice areas

Watson says that Simpson Millar wouldnrsquot have been an attractive prospect to Fairpoint had the firm not spent time growing organically by expanding into new areas of law

ldquoWe went from being a predominantly trade union PI firm to having a broad base of 16 types of work ndash with strong heads in charge of each committed to driving growth in their departments ndash which gave us a large boost in revenuerdquo The firm achieved this through small acquisitions of other firms that had expertise in particularly lucrative areas of law

But firms shouldnrsquot just look at expanding in lucrative areas ndash they should focus on areas where their reputations deliver an advantage Scotlandrsquos Thorntons for example ndash which last year leapt from 134 to 108 in the 2015 UK 200 rankings ndash invested in six departments as part of its growth strategy

Thorntons joint managing partner Scott Milne says ldquoWe didnrsquot exclude other areas but we saw that these areas were profitable and that more importantly we had considerable expertise in them ndash we also considered that these are areas that are unlikely to be affected by future economic downturnrdquo This included investing in niche areas of law where the firm has a geographic competitive advantage ldquoWersquore lucky to be surrounded by some of the best farmland in the UK ndash wersquore well known for our expertise in rural business law which is why we invested heavily in itrdquo

ORGANIC V ACQUISITIONIn several ways choosing an effective growth strategy very much boils down to MampA versus organic growth ndash every business model talent or area expansion strategy appears to revolve around one or both But which is the best to achieve the kind of growth thatrsquoll propel firms to a lsquohockey stickrsquo on their revenue forecasts The short answer is it depends on whatrsquos best for a firm at a given time It either

needs to fit the firm ndash or the firm needs to change to fit the goal

Beech says that acquisition has been excellent for Knights because itrsquos a fast and effective form of expansion ndash the acquisition of Darbys more than doubled its revenue But MampA poses a significant challenge to finding firms with the right cultural fit

ldquoFirms need to establish a single culture in order to implement growth ndash everyone needs to be working towards the same goalrdquo He added that when a firm completes a merger or acquisition that firm has to be integrated from day one which is much more difficult if it has a significantly different culture Knights is planning to continue recruiting and complete more acquisitions in the next year to maintain the growth curve

Of course the big problem with acquisition is money Robins at Keystone says his firm lies at the opposite end of this

INFORMATION IS EMPOWERING

Lemington Spa-based firm Wright Hassall has a specific goal of breaking into the top 100 and as part of its growth strategy expanded into areas of the UK where its expertise is highly sought after ndash using customer relationship management in the background to underpin the firmrsquos activities in specific areas Martyn Wells IT director at the firm says ldquoWersquove zoomed in on specific industry sectors that we know are performing well in the Midlands sectors where we have a superb reputationrdquo Expanding geographically as Wells outlines needs data to get right Thorntons for example identified various lsquomicro-marketsrsquo in Scotland close to its base of operations ldquoWe acquired a firm in St Andrews because itrsquos like a micro-economy (or micro-market) that doesnrsquot seem to be affected by price drops in the residential market elsewhererdquo says Thorntons joint managing partner Scott Milne Knights has another take on the geographic targeting idea ndash it intends to stay out of the large cities (London Manchester Leeds for example) and expand into areas where there is little competition As David Beech CEO at Knights explains ldquoLast September we acquired a small team in Chester of about 11 lawyers and now thatrsquos expanded to just over 70 ndash and the main reason wersquove been able to do that is because there isnrsquot a lot of competition thererdquoUltimately this all comes down to research finding out what to invest in or where to expand and perhaps most importantly finding out what clients want

LEGAL PRACTICE MANAGEMENT35

SEPTEMBER 2016FEATURES

spectrum to the way Knights has grown emphasising organic growth finding innovative means to attract talent using technology to drive efficiency and branching out into new areas of law or new markets to achieve significant growth

Square One Law also espouses the organic route ndash believing that firms with growth in mind should focus on ensuring their external brand reflects the businessrsquos internal culture and behaviours of its team creating lsquosynergyrsquo between the business and its clients

Gilthorpe says ldquoMergers ndash and there is no such thing as a true merger ndash and acquisitions can be a distraction as you look to create a new culture and separate the wheat from the chaff and this can soak up a lot of energy that would otherwise be put to use in driving the progression of the business and the focus on client servicerdquo

The best option for some firms may be a

calculated combination of MampA and organic Thorntons for example having made several acquisitions is now focusing on organic growth moving away from geographical expansion and towards developing locations and its brand

Watson at Simpson Millar sums the mixed approach up thus ldquoItrsquos a mixture Acquisition is still very much a part of the mix but in parallel to that itrsquos important to demonstrate that yoursquore developing ongoing work rather than being driven solely by acquisitionrdquo

There are clearly many different ways to achieve healthy and assertive growth though there are no easy answers as to which way is right for your firm But it is clear that growth doesnrsquot have to happen in the ways many have previously achieved it ndash innovation and lateral thinking are the means of achieving significant growth (which might one day propel you into the top 100 you never know) LPM

LEGAL PRACTICE MANAGEMENT36

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

INDUSTRY VIEWS

36LEGAL PRACTICE MANAGEMENT

Legal is becoming an ever more digital industry giving firms the chance to become more efficient flexible agile and collaborative

INDUSTRY VIEWS INDEX

ONLINEOFFICES

36

SPONSORED EDITORIAL

INDUSTRY VIEWS

37 INTERVIEW

Paperless processLinetimersquos Tony Klejnow explains the benefits of using matter management software for law firms and their clients

39 INTERVIEW

Virtual expansionNigel Redwood Nasstarrsquos CEO talks about the advantages of having a managed flexible IT infrastructure

LEGAL PRACTICE MANAGEMENT37

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT37

Competition and price pressures and an increasingly digital client base are all significant drivers for law firms to become paperless

businesses Tony Klejnow Linetimersquos managing director says firms could achieve competitive advantage by introducing paperless solutions across their businesses ndash but a particular lsquoeasy winrsquo area is matter management

ldquoFee earners are required to keep detailed records of their cases but the amount of time and money they waste physically printing filing looking for collaborating on and updating files is alarmingrdquo says Klejnow Law firms have traditionally been reluctant to adopt paperless

workflow solutions he adds because workflow doesnrsquot apply to 99 of fee earnersrsquo work ldquoBut if they adopted paperless solutions in their back office processes they could reduce costs without affecting client service boost productivity and promote collaboration ndash making them more efficient flexible and cost effective and making them more competitive in an ever-changing legal marketrdquo

MATTER MATTERSDocument and matter management tools ndash like those in Linetimersquos legal software product Liberate ndash electronically store and organise all case documentation in an online database Klejnow says that there are two immediate benefits of paperless matter

PAPERLESS PROCESS

Tony Klejnow managing director at Linetime talks to LPM about the benefits of the paperless office ndash starting with filing and back office processes

INDUSTRY VIEWS

Linetime is a specialist provider of Microsoft-based practice and case management solutions Clients include mid-tier law firms and in-house legal departmentswwwlinetimecouk

ABOUT THE SPONSOR

SPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT38

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT 38

management The first is reducing paper and storage costs

ldquoIf case documentation is electronically stored once a case is finished you no longer have a five-inches-thick file that has to be stored for six years ndash which has to reside somewhere and costs firms time space and moneyrdquo The second is eliminating filing time ndash for example instead of printing and filing emails and attachments fee earners drag and drop emails directly from Outlook into the database ldquoand attachments are automatically stripped from emails and appropriately filedrdquo says Klejnow

And Klejnow says paperless filing systems donrsquot just facilitate efficiency this way ndash they also improve general process efficiency by facilitating collaboration between fee earners Solicitors can use document and matter management to view and work on matters at the same time a difficult if not impossible prospect when working with paper files Klejnow says ldquoWithout document management legal professionals work in silos but with it they immediately share datardquo He adds that Liberate has an additional collaboration tool to help further improve collaborative efficiency in firms ldquoIf I choose to lsquocollaboratersquo a document with you on Liberate Outlook will prompt you to review that document by simply acknowledging the notificationrdquo

In this respect moving to become a paperless business provides greater flexibility for fee earners who can collaborate with colleagues working remotely or in different offices Klejnow says ldquoPaper files can only reside in one location but electronic files can be accessed from any office and when working from home or with clientsrdquo On the other side of the coin having digital files maintains a greater level of productivity in a law firm office ldquoIf your colleague is absent from the office you can easily find documents that you might have otherwise wasted a significant portion of your day looking forrdquo he adds

Improved external collaboration is also a benefit that firms can reap from paperless matter management With an electronic system you can go into a case history bundle documents into one PDF file and quickly submit that to the third party improving collaboration between fee earners and clients who want to do everything online This has the added benefit of improving accuracy and facilitating greater efficiency by involving clients in the process ldquoGood matter management software should also let you push e-forms to clients to be filled in and that information is automatically transferred straight to the online database ndash which saves fee earners

time and is a more accurate because the information doesnrsquot have to be constantly re-enteredrdquo says Klejnow

This extra level of collaboration within legal businesses that hasnrsquot been possible until now has long been needed because it improves efficiency and productivity which makes the business more profitable and competitive Klejnow adds that what firms save by adopting matter management they should reinvest in becoming fully paperless digital businesses

ldquoCase management solutions can improve efficiency to an even greater extent and keep firms competitive in the age of the alternative business structuresrdquo

VISIBLE COMPLIANCEIn response to firms reluctant to adopt paperless technologies like document and matter management for fear of losing delicate information to cybercriminals Klejnow says those systems provide an additional level of security ldquoTaking data and attachments out of Outlook and storing them on a database is much more secure than leaving them on your hard drive If you leave

your laptop on a train for example all your important data is safely stored on a server and not instantly accessible by opportunist criminalsrdquo

Document and matter management also offers a greater level of security in fee earner and client communications ldquoIf I want you to check that the data we have for you is accurate Liberate will

direct you to a page holding your data and at the same time it will push out an SMS text with a pin code to your phone Unless you input the code you canrsquot get to the web page ndash which means if one of your solicitors accidentally sends an email to the wrong person or itrsquos intercepted it doesnrsquot matter The data stays safe ndash this level of security is crucial in this age of cybercrimerdquo

These security features clearly have significant benefits for compliance which is important in a market increasingly dictated by regulation including the relatively new General Data Protection Regulation says Klejnow

ldquoCompliance officers need to be seen by regulators to have monitored and reviewed everything thatrsquos happened in their firm which is considerably easier with a paperless system Liberate has lsquoversion controlrsquo which allows compliance officers to keep tabs on every change made to a document as well as a compliance module which lets them view whatrsquos happening on a case (to ensure that money laundering checks have been carried out and so on) and records the fact that yoursquove reviewed thisrdquo LPM

Without document management legal professionals work in silos but with it they immediately share data

INTERVIEW

LEGAL PRACTICE MANAGEMENT39

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LPM readers may already know the Nasstar Group ndash but by a different name Nasstar was launched by regular LPM-contributor e-knownet to consolidate four discrete hosted

managed IT businesses (including e-knownet) after a period of significant acquisition Nigel Redwood chief executive officer at Nasstar says merger and acquisition and consolidating brands is challenging but having a flexible hosted IT infrastructure makes the process significantly easier

ldquoManaged IT services are enormously beneficial for firms that are expanding or consolidating particularly after MampA in terms of time and productivity cost savings and flexibilityrdquo He adds that by just having managed desktops firms can attain competitive advantage by reducing overheads and becoming more flexible and agile

Nasstar has experience helping SME firms with their IT systems after MampA and knows what problems to look out for creating unity among staff used to using different systems and processes the cost and time it takes to expand an IT infrastructure and the geographic distance between new offices

Redwood says that MampA can be an excellent way for legal businesses to expand into new sectors but that consolidating new departments using different IT systems and processes is challenging

ldquoOur acquisitions for example introduced new sector focuses for us in the SME legal market ndash wersquove consolidated these into a wider service base under Nasstar and facilitated unity among staff using virtual IT solutions

rdquoVirtual IT solutions help facilitate unity across the business by providing a level of consistency in an IT infrastructure Everyone immediately uses the same applications on the same versions from wherever theyrsquore working creating unity faster collaboration across teams and effective information sharingrdquo Hosted IT infrastructures are also continually updated giving staff instant access to new updates applications and technologies as they become available

The next significant challenge firms face after MampA is expanding their IT infrastructure to accommodate an influx of new staff ndash but Redwood says virtual IT solutions let firms expand their IT infrastructure at the flick of a switch

ldquoWith virtual IT firms arenrsquot held back by the size of their servers or the amount of computer power theyrsquove got ndash they simply call their IT provider and ask for an upgrade when previously theyrsquod have been

subject to lengthy and costly IT upgradesrdquo Virtual IT solutions are also easy to budget for

Redwood says ldquoYoursquore not going to be surprised by an increased fixed asset expenditure ndash services like those offered by Nasstar are an operational cost and fixed per user per month through a scalable cost modelrdquo

Geographic distance inhibiting collaboration between merged offices is also a key consideration for firms after MampA but virtual IT solutions solve this problem Redwood says a virtual IT infrastructure can minimise travel through the use of hosted virtual meeting rooms and video technology Staff can use this technology from virtually anywhere which is why it also lends itself well to remote flexible or mobile working set-ups

VIRTUAL WORKPLACERemote working is becoming an increasingly present feature of the legal landscape because of its cost saving and recruitment and retention advantages ndash the majority of firms at the LPM conference 2016 were moving towards a flexible remote or mobile working set-up or already had one

Redwood says virtual IT solutions better enable staff who work remotely ldquoHosted managed desktop solutions for example let staff work with the same applications from any device in the world safely and securelyrdquo

But remote working isnrsquot only about enabling the current workforce itrsquos about attracting future talent Redwood says that millennials donrsquot necessarily want to work as their predecessors did ndash they expect greater flexibility in the workplace which at one level can be achieved by remote working facilitated by a managed desktop

ldquoAnd itrsquos not only about attracting millennialsrdquo he says ldquoSME firms with flexible working set-ups are becoming more attractive to experienced legal talent who may be frustrated by the rigidity of their firmrdquo As a firm expands its workforce in this manner firms with virtual IT solutions reap the lsquodoublersquo cost saving benefits of not having to expand their premises or IT infrastructure accordingly

Some firms are resistant to remote working based on hosted IT services believing they arenrsquot secure ndash but Redwood says that argument ldquocan be put to bedrdquo

ldquoFor an in-house IT team to have the level of security that an organisation like ours can deliver is near impossible financially as well as in terms of the

VIRTUALSANITYNigel Redwood CEO at Nasstar talks to LPM about how managed IT can help SME firms achieve competitive advantage by making them more agile and flexible

LEGAL PRACTICE MANAGEMENT40

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

INTERVIEW

level of systems and technologies they deployrdquo Cybercrime is of course a scary and constantly evolving threat but Redwood points out that virtual IT systems have dedicated teams monitoring these threats evolving cyber defences and changing systems accordingly

ldquoThis capability not only makes [firms] a lot more secure but gives peace of mind in terms of compliancerdquo

ONLINE ADVANTAGE Redwood says virtual IT infrastructures donrsquot just pertain to lsquobig lawrsquo but to SME firms as well ndash perhaps more so

ldquoVirtual IT systems are a way for SME firms to stay competitive against their larger

counterparts and ABSs ndash it gives them a greater ability to expand it lets them adopt more flexible and agile models and is easy to budget forrdquo Firms can also expect virtual IT solutions to enable better alignment of IT resources to business needs enhanced usability with anywhere anytime access and in-built business continuity

But the greatest advantage virtual IT offers SME firms over big law is agility Redwood says ldquoBig IT departments in firms can be slow to react cumbersome and held back by the limitations of hardware infrastructure and security issues ndash all of that is removed with a solution like ours and the customer has access to fast-moving agile ITrdquo LPM

ABOUT THE SPONSOR

Nasstar is a provider of managed IT services and tailor-made cloud hosted solutions ndash delivering innovative secure and agile IT to help clients accomplish their business objectiveswwwnasstarcom

Page 4: LPM September 2016

LEGAL PRACTICE MANAGEMENT5

SEPTEMBER 2016IN PRACTICE Follow us and talk to us on Twitter LPMmag

IN PRACTICE

A lot has changed in the world since our last Snapshot LPM readers In the wake of the EU referendum result we have a

new prime minister ndash and a new justice secretary Liz Truss is the first female leader of the justice ministry (good for diversity) but the third incumbent in succession to have no legal background Truss has also recently pledged to press ahead with plans to ditch the Human Rights Act ndash letrsquos hope the UK bill replacing it will last longer than previous English rights legislation

Other than a shift in government ranks the most obvious outcome of Brexit has of course been uncertainty Many SME law firms are now implementing strategies to handle likely post-Brexit instability set to affect them and their clients (see what some of them said on p9) Global firm Dentons on the other hand is using technology to turn the EU exit to its advantage Itrsquos developing a cognitive AI search engine tool to be used for Brexit-related contract reviews as part of a play to become a key adviser to companies impacted

SME firms may not have the resources to rear technology in this manner ndash but a new practice note from the Law Society might give them the confidence to use e-signature technology for commercial contracts making them more efficient and competitive Law Society president Robert Bourns said ldquoSolicitors are eager to take up any opportunity to innovate and this practice note will help them in making ever-increasing use of this small but significant improvementrdquo Neat

Innovation might be a top priority for legal businesses after a University of Leeds study suggested that ABSs may come to dominate in high-volume legal services The study by Leeds University Business School academics Sundeep Aulakh and Ian Kirkpatrick observed that the traditional partnership model is still dominant in legal ndash but that ABSs

ldquoBah they donrsquot need rightsrdquo thought John ldquoLetrsquos get this over with ndash wherersquos my iPadrdquo

Have you got a story or report for us Write to lpmlsncouk

Source SRA Risk Outlook report July 2016

of adults had a legal need in the past three years

people with legal needs instruct a solicitor or barrister

LEGAL NEEDSResearch released by the SRA shows that while a significant number of adults have legal needs few seek pro legal advice

54

63

IN N

UM

BER

SSNAPSHOT SIGNATUREMOVES

typically characterised by aggressively expansive ambitions may eventually come to control high-volume commoditised markets like personal injury

Refocusing attention on Westminster the government has said that it plans to clamp down on legal businesses that pursue ldquospurious claimsrdquo against military personnel This follows the news that London and Birmingham-based Public Interest Lawyers which submitted hundreds of allegations of misconduct by British troops is shutting down after investigation into its activities

Itrsquos certainly been an interesting period for politics and legal ndash perhaps there are more lsquosurprisesrsquo to come (but hopefully none that King John would be proud of) LPM

Edited by Patrick Wingrove

of adults believe that professional legal advice is too expensive

110

Itrsquos our business to make the complex simpleWersquore focused on delivering legal practice management solutions that fit and evolve with your business

Looking to improve your practice Then talk to us

Itrsquos the little things that make a big difference

wwwoneadvancedcomlegal

LEGAL PRACTICE MANAGEMENT7

SEPTEMBER 2016IN PRACTICE Follow us and talk to us on Twitter LPMmag

SWEETENING THE DEAL

HR AGONY AUNT

QI read about Eversheds offering free ice creams

to their lawyers during the heatwave in the summer With sweeteners like this how can smaller firms ever compete to get the best people

AWith all due respect to Eversheds there is a

difference between a perk and a gimmick A Mr Whippy ice cream van is a gimmick (and a flaky one at that ndash ho ho) Compare bringing in an ice cream van with offering coding lessons for lawyers ndash the latter is a new trend in large corporate firms such as Australian firm Gilbert + Tobin

To develop coding and programming skills alongside your legal skills is an attractive proposition for bright legal minds ndash and it could be good for the firm too if one of its 500 staff were to make a cost-saving technological breakthrough In terms of a perk it is the right fit for those firms Equally there will be something which is right for your firm ndash just donrsquot be distracted by the gimmicks

Q A senior employee completely lost his

temper with another employee on the phone with a litany of expletives over some missing documents Can I dismiss him for gross misconduct

A The technical answer is ldquoYou may be able to

depending on all the circumstancesrdquo (arenrsquot lawyers good at sitting on the fence) But is showing anger like this always bad Clearly expletives are inappropriate and the context may well mean this is bullying But in another context this could be sheer frustration Sometimes we get angry ndash this might be because it is serious (such as children crossing the road without looking) because something just keeps happening time and time again (our computer is too slow) or because we canrsquot do anything about something (Boris Johnson being foreign secretary for example) You might want to take the employeersquos outburst as indicative of one of these categories and see if there is

anything that you can do to help

Q We have a few staff successfully working

from home one day a week But for one employee itrsquos a complete shambles her internet is patchy she is sometimes hard to get hold of and she never calls in Shersquos good at what she does but is it worth it

A Letrsquos separate the solvable from the

irresolvable Her internet connection may not be something she can control

and itrsquos not an uncommon complaint but the communication deficit is entirely resolvable The employee needs defined expectations ldquoWe need you to phone in at least twice a dayrdquo And defined consequences ldquoOr elserdquo if she doesnrsquot meet them LPM

Polly Jeanneret is an expert in HR and an employment lawyer at Halebury to boot ndash shersquos seen and heard it all

Send her your HR questionsASKPOLLYLSNCOUK

Polly Jeanneret LPMs HR guru answers questions on dismissal homeworkers ndash and ice cream

THIS

MO

NTH

IN N

UM

BERS

THE ILFM ANNUAL SALARY SURVEY REVEALS THAT LOYALTY TO SMALLER FIRMS MAY NOT BE PAYING OFF FOR EMPLOYEES

of employees in medium to large firms

recieved a pay rise

LOYALTY PAYS

of employees in small firms recieved

a pay rise

of employees in small firms were

successfully retained

78 59 89

LEGAL PRACTICE MANAGEMENT8

SEPTEMBER 2016IN PRACTICE Follow us and talk to us on Twitter LPMmag

LPM ASKS

QWhy is it important to optimise your career

pages for mobile phones

AThe proportion of people using their mobiles to

access the internet is increasing rapidly Ofcom statistics badge us as a lsquosmartphone societyrsquo with phones overtaking laptops for getting online People are surfing while watching TV or in bed they are banking shopping and accessing social media ndash and they are looking for jobs If yoursquore not optimising your career pages yoursquore losing out on a large potential talent pool

The average attention span is about eight seconds and on a small screen you have to engage quickly Breaking down any barriers for potential candidates is therefore critical Recruitment is competitive and in the legal sector we are often looking for specific skills We canrsquot afford to lose candidates at key touchpoints

Optimising your legal business website for mobile devices sends a message ndash we are a modern firm we are tech-savvy we understand our market and our target audiences We also donrsquot want to discourage potential candidates new graduates or apprentices who could be our future workforce

QWhy do you need to monitor social media as

part of your recruitment strategy

AOur social media channels give us direct engagement

with candidates and they are a powerful tool to promote the brand You need candidates to

SALLY JONESCOO BRETHERTONSAfter speaking at this yearrsquos London LPM conference COO of Midlands and London firm Brethertons answers our questions on recruiting and retaining new talent at your firm

feel the culture of your business through social media so itrsquos important to monitor the interaction of both staff and followers in this very public arena We use social media as part of a multi-channel recruitment strategy ndash to advertise our vacancies get employees to push vacancies to their networks endorse our roles and culture and generate excitement about our opportunities We also use social media to research our candidates ndash it can be a valuable source of information and help us gauge the fit of future talent

QWhat should SME law firms consider when using

a recruitment agency

AThere are a number of considerations

l Do they understand the roles and do they understand the skills qualities and behavioural attributes you are looking forl Do they understand your business your strategies aspirations and plansl Do they understand your values and culture Do they understand the importance of this alongside the technical skillsl Do they specialise Are they generalist How well do they understand your target audience l What is the nature of the contract and what does it include and exclude Is it an exclusive arrangement and what is the period of engagement Will you need to work with other agencies to ensure good coverage of potential candidatesl How will they communicate

with you and what needs to be approved within what timescales

QWhat are some key considerations for direct

recruiting

AWe are all trying to get candidates from the same

small pool and we cast our net as widely as possible to get the best outcome and return We also want every hire to be a long-term success

With direct recruitment you have to be very clear on how you define potential candidates and how you select and contact them Confidentiality and communication are therefore key factors Getting the pitch right and being confident in negotiations are also important We approach direct recruitment for example by advertising on our website on specific websites and on social media We also use our networks and we have a great staff referral scheme in place

QHow do you create a powerful brand to aid

retention

AAt Brethertons we have a dedicated people

programme that goes to the heart of attracting and retaining great people It is about layers of connected

change ensuring what we do makes a difference and that we understand the impact of business change on our employees Brand is about giving people an understanding of who you are and your identity It gives people a sense of belonging and value and the knowledge that their contribution matters

You can keep good people and make employees proud to work in your organisation in several ways But always be clear on their contribution how it is valued how their performance will be managed and measured and how it aligns with your overall corporate goals LPM

LPM COMES TO BIRMINGHAM IN NOVEMBER

Book your place at LPMB 2016 NOW for just pound175+VAT early bird price

Email rikkiclsncoukwwwlsncoukLPMB2016

LEGAL PRACTICE MANAGEMENT9

SEPTEMBER 2016IN PRACTICE Follow us and talk to us on Twitter LPMmag

Now that the UK has voted in favour of Brexit we ask LPM readers ldquoDo SME firms need a plan in place for when the UK leaves the EUrdquo

Want to write us a letter You know that thing no one does anymore You can email us a letter for publication to lpmlsncouk or post us something to LPM magazine 20 Mortlake High Street London SW14 8JN Or get in touch through our LinkedIn group at bitlylpmgroup

Follow LPM on Twitter

LPMmag

NAVEED AHMED HEAD OF IMMIGRATION LAW ASONS SOLICITORSThe uncertainty and far-

reaching implications of the UK leaving the EU undoubtedly exposes SME law firms to greater risks which must be effectively managed Strategic planning at primitive stages of the UKrsquos departure from the EU could very well determine the future viability of many SME law firms Diversification may well be key to prosperity after the break and full service law firms that are engaged in a variety of legal sectors such as employment health education retail intellectual property and financial litigation will be well-placed to navigate the storm

GORDON STARK COOMURGITROYDIn a time of uncertainty it

is better to be prepared ndash having a strategic plan in place is important as is knowing when to act The plan should identify risks but also seek out opportunities Firms may need to make decisions about their future during this protracted period of acute uncertainty ndash knowing when these decisions need to be taken what the options are and what the associated lead times will be to execute them will all be key components of planning

SEPTEMBER 2016IN PRACTICE

ANNABEL HAMPSHIRE MANAGING ATTORNEY STRATAGEM IPMSME law firms are no exception when planning for the

inevitable fallout of a post-Brexit United Kingdom The uncertainty over when the UK will leave the EU and the consequences of legal and structural reform make planning difficult Firms are taking immediate steps to reassure clients as well as educate them about the challenges presented in their specific field For the IP sector changes to protection and exploitation strategy will require careful planning but more immediately a review of contractual obligations may be necessary to mitigate unfavourable or unexpected reinterpretations of terms (resulting from practical effects of Brexit) by any party to the contract

ELIZABETH WEST HEAD OF ORGANISATIONAL DEVELOPMENT REDDIE amp GROSE

In our sector (patent and trade mark attorneys) we compete with EU firms Our European work is a mixture of EU law and other international law but we expect EU competitors to take advantage of the Brexit publicity to try to grab a larger share of that work Our plan includes protecting the revenue stream but wersquove had to put that in place now ndash even before an Article 50 notice is served Wersquod advise all SME law firms to challenge their assumptions about who their competitors are and who they will be after Brexit ndash cheer up and strategise

NICK DAVIS HEAD OF RISK AND COMPLIANCE GEDYE amp SONS

The British governmentrsquos well-made plans may not hit their ideal timetable ndash European leaders will have to try and strike a balance between the wants of the UK the European parliament and the views of their own voters (not to mention their own electoral desires) This is clearly a complicated subject and extends across the areas of law that firms practise and the demographic of their workforces SME law firms need a flexible and constantly evolving plan to be able to advise their staff and clients current or new They also need to be able to demonstrate impartial and accurate views on how any potential changes that come as a result of Brexit affect clients first and them second As part of their plan SME law firms should review any guidance notes issued by the Law Society and the SRA ndash adopting any rules and procedures (particularly relevant would be any change to the General Data Protection Regulation and AML fourth directive) so that their firms are ready and well prepared But a plan shouldnrsquot be overly rigid because itrsquos currently too early to tell what if any impact Brexit will have on UK law

YOURVIEW

LEGAL PRACTICE MANAGEMENT9

Follow us and talk to us on Twitter LPMmag

NOVEMBER 2016

VISIT LSNCOUKLPMB2016CALL RIKKI CLARK ON 0870 112 5058

EMAIL RIKKICLSNCOUK

BIRMINGHAM

THE ONLY EVENT FOR MANAGEMENT LEADERS IN SMALL

AND MEDIUM-SIZED LAW FIRMS

ONE-DAY CONFERENCE

6338 LSN LPM Nov 2016 Book Now_03indd 1 30082016 0939

LEGAL PRACTICE MANAGEMENT11

SEPTEMBER 2016IN PRACTICE Follow us and talk to us on Twitter LPMmag

THE WAY TO WHY

BOOK REVIEW

One way of assessing the value of a book like this is by reference to the number of times it makes one think of something it can be applied to in your own career or organisation On that measure

alone Designing the Purposeful Organisation passes with flying colours

At the heart of Wilsonrsquos philosophy is the idea that to be successful organisations must be able to articulate compelling and inspiring reasons for their existence ndash not simply what they do but rather why they do it The usual poster boys for 21st-century business success are quoted as exemplars of this approach - Apple Google Microsoft Reference is also made to Simon Sinekrsquos TED talk (278 million views and counting) and related book Start With Why as a means of uncovering the primary reason for an organisationrsquos existence Indeed a key element of Wilsonrsquos writing style is to send the reader off at regular intervals to take in a TED talk or YouTube video or to reflect in more detail around the topic at hand This does at times make the book feel more like a business coaching session rather than a dry management treatise ndash which for the avoidance of doubt this reader sees as a definite plus point

While the stories around behemoths such as Apple and Google can be compelling I was more taken with the example of the African tax collection agency that Wilson was working with Rather than seeing themselves as taking money from people (the lsquowhatrsquo) he encouraged them to focus on their purpose namely to help fund new schools and hospitals across their developing nation (the lsquowhyrsquo) Articulating the why is also a key element of an organisationrsquos brand proposition Wilson reminds us that customers are more often than not buying why an organisation does something rather than simply what the organisation does Or put another way how many customers would be inspired to have brand loyalty for a firm which simply says that its fundamental reason for being is to maximise shareholder returns

Before anyone starts fulminating about the importance of financial returns Wilson does recognise that results matter However his concern is that they too often become all consuming A key pillar of the book is his belief (which he concedes may be controversial) that overly focusing on results is misguided and can create systemic barriers to better performance Or put more simply results measure our progress to a better future ndash they are not in themselves that better future

This is certainly something that chimed for me as the CEO

of a law firm Yes we all recognise the need to deliver improved financial KPIs However these are simply a means of measuring whether we are delivering value to our clients (given that clients are unlikely to be using and paying for our services where they do not perceive us to have any value) and are unlikely to be the things wersquoll look back on with pride in our dotage

This reassessment of the role of results is also central to one of the key conditions for a more purposeful organisation (and one which will particularly resonate with professional services firms) namely talent liberation Drawing on the work of Daniel Pink on personal motivation (for example Drive The Surprising Truth About What Motivates Us) Wilsonrsquos call is for firms to move beyond transactional performance (pay me X and Irsquoll deliver Y pay me a bit more than X and Irsquoll deliver a bit more than Y) Rather we need to help our people liberate the talent they have by playing to their strengths as opposed to the more traditional performance management model of fixing weaknesses

Wilson focuses particularly on how the proper articulation of purpose can engage millennials Borrowing from Laurence Boldtrsquos Zen and the Art of Making a Living he encapsulates this approach in three short questions What skills and other resources do you have What do you care about Whatrsquos stopping you from pointing A at B

It seems to be that in most law firm management seminars or discussions these days someone somewhere is lamenting the fact that they just donrsquot understand millennials And at last I have an answer for them ndash read Clive Wilson LPM

LPM reader discount ndash use code HRLPMB to get 20 off at wwwkoganpagecom

Designing the Purposeful Organisation How to Inspire Business Performance Beyond Boundaries by Clive Wilson

Publisher Kogan PagePublication date Feb 2015Price pound2999

Reviewer Chris Harte chief executive and partner at Morton Fraser

Have

heardyou

Proclaimreg is the only Practice Management Software solution Endorsed by the Law Society

Contact us for a demonstration ndash see the Proclaim difference

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From new start-ups to industry heavyweights Proclaim is the system of choice for forward-thinking law firmsbull Fully integrated Practice Management Software solution bull SAR-compliant legal accounting bull End-to-end case and matter management workflow processes bull Ready-to-go workflows for specific practice areasbull Fast to implement easy to use

LEGAL PRACTICE MANAGEMENT13

SEPTEMBER 2016COLUMNS

Barry DaviesPractice directorDouglas-Jones Mercer wwwdjmlawcouk

BARRY DAVIES PRACTICE DIRECTOR

ROLE MODELS

ABOUT Recent figures show that there are a shade over 130000 people on the roll of solicitors in England and Wales ndash 20 of those undertake an in-house role 80

are classed as employed An enormous number and this is before we consider the significant chunk of employees namely professional managers support staff and those lawyers who are not on the Law Society roll But lots of firms I speak with say lsquowe have too many partnersrsquo or they have reduced the number of lsquochiefsrsquo within their practice as part of their strategic planning

Where are we going with this What will the future firm look like What will its stakeholders (not necessarily shareholders) expect

The two facets that will impact upon the future will undoubtedly be generational attitudes and technology Though advancements in processing power will mean huge growth of AI systems over the next decade I think generational attitudes is the facet thatrsquos most interesting right now

Generation X lawyers (born between the early 1960s to mid-1970s) are often already partners This generation and the baby boomers before them are usually motivated by achievement and money Generation Y lawyers on the other hand (born in the 1980s or 1990s) are looking for something else Fearing that I sound like a textbook ndash specifically Frederick Herzbergrsquos theory of motivation hygiene ndash itrsquos not money thatrsquoll be the key factor in recruiting millennials but other drivers such as networks recognition quality of work and conditions

Developing reward and recognition strategies is

difficult enough for partners ndash so how does a law firm tackle its entire workforce A few years ago I held a discussion with a law firm partner and a question put to me was could the lsquoJohn Lewis modelrsquo fit a law firm This term is not only synonymous with the department store it has become a household phrase

Quite a few law firms have for some time now introduced a corporate partner ndash a limited company ndash as a partner within its practice with the intention of dealing with distribution of profits more efficiently or as part of a bonus pool So itrsquos quite interesting to hear that a highly regarded firm in the south west Stephens Scown has developed a similar model to the John Lewis theme

Whatrsquos different about this example is that a proportion of the firm is owned by a trust for its employees and not just its partners This gives the employees of the firm a greater sense of belonging and the added impetus to do well I am certain that some critics would question the mechanics of such a scheme and perhaps the barriers to entry such as defined profit levels but setting this aside it is a means of boosting staff engagement and eradicating the lsquothem and usrsquo mentality

With complications in all corners of law firm ownership new models will have to be explored to cover aspirations of all involved There could come a time when a crowdfunding option is explored generally and maybe the household name for staff stakeholder mechanisms in law firms will be the Stephens Scown model LPM

LEGAL PRACTICE MANAGEMENT14

SEPTEMBER 2016COLUMNS

In the April issue of LPM Stepien Lakersquos practice director Richard Hill brilliantly spelled out what to look for when trying to spot a lsquowhalersquo or big lsquophishrsquo ndash a situation where an

individual or firm is targeted researched and then duped into sending money to a cyber attacker

But just as awareness is essential so too is preparedness I thought it might be helpful to share some of the practical considerations that will help keep client funds safe (a requirement of principle 10 in the SRA handbook) including some things wersquove done in our firm in response to these very real threats

Perhaps the most feared event among all law firms is the very well-publicised lsquointercepted emailrsquo (dubbed the lsquoFriday fraudrsquo) But would we be surprised by just how many firms lawyers and clients freely provide bank details within the body of text in an email

This is an area where we recently tightened our procedures and introduced an explicit rule all bank details provided by a client especially in any email communication must be verified by a lawyer (by reconfirming those details with a person they know) The lawyer then signs to say that they have checked them

This has produced some unexpected benefits particularly for one client who provided bank details to us within the body of an email for remitting the proceeds of sale for his family business of pound32m When the lawyer contacted him to verify that the bank details were correct the client realised that he had transposed two numbers

Clearly this is a serious education piece not only for those responsible for finance and the lawyers within the firm but externally for the firmrsquos clients

There are a number of practical points to bear in mind when it comes to day-to-day security matters how do your lawyers communicate the client account details to its clients and do you always attempt to obtain client details for the remittance of funds at the start of the transaction for instance

Additional considerations might be when did you last review any bank payment elements in your email disclaimers terms of business and client care letters Is your payment procedure well-defined and documented (not just the finance element but also those relevant to clients and lawyers) And do you use any law firm identification checklists

These important issues should remain on the agenda so that theyrsquore constantly in colleaguesrsquo minds with regard to maintaining safe and efficient practices

There are some excellent resources available from your bank that can help to educate your colleagues and there are so many simple steps we can all take to make people aware of the problem Have you tried sending a few test phishing emails to individuals within the firm for

GLYN MORRIS FINANCE DIRECTOR

ABOUTexample to see how they respond

But what then If you are confronted with the metaphorical warning cry of lsquothar she blowsrsquo how will you and your people react You may need to have created a well-communicated process for dealing with a phishing incident

The 1851 classic Moby Dick tells the story of one manrsquos obsessive quest for revenge on a giant white whale ndash we might want to take just a hint of Ahabrsquos obsession in our approach to tackling the issue of cyber attacks Although if we can avoid the whale in the first place all the better LPM

THAR SHE BLOWS

Glyn MorrisFinance director Higgs amp Sonswwwhiggsandsonscouk

0800 328 0272 | wwwarchivestoragenet

ldquoLet us find the right records management and storage solution for your legal practicerdquoThe File Queen ADDS

File Storage

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LEGAL PRACTICE MANAGEMENT16

SEPTEMBER 2016COLUMNSSPONSORED EDITORIAL

DOUG HARGROVE THE TECHNOLOGIST

DISRUPTION TO GO

ABOUT Change isnrsquot anything new itrsquos just another word for evolution But lsquodisruptionrsquo is certainly one of the words of the decade and one that is

usually connected to revolution ndash a significant alteration to the status quo and one that has far more immediate impacts

Disruption is also the go-to word for business commentators ndash especially when it comes to lsquodisruptive techrsquo ndash talking about new business start-ups or innovations Take the very latest craze to hit the headlines ndash Pokeacutemon Go has seemingly gripped the world these last few weeks with stock valuations heading skyward and comments about the app lsquodisruptingrsquo mobile gaming But therersquos nothing disruptive about the game it takes and utilises technology thatrsquos been around for nearly a decade (geolocation and augmented reality) and applies it in a new way Itrsquos that application of technology thatrsquos causing the disruption

Businesses like Uber and Netflix have built compelling business models on the groundwork of technology that is now pervasive (the smartphone and broadband internet respectively) Therersquos a lot here that firms can learn from itrsquos not necessarily about inventing new technology but about finding ways to use existing technology to create a new approach

So what opportunities are there for law firms to disrupt This can be looked at in two ways ndash disruption to the existing law firm business model and disruption to the user experience The first scenario has already been covered at length and is nothing new for the legal market there are already plenty of law firms out there

looking to change the way a law firm delivers its services to its clients and prospects ndash from franchise models to virtualised law firms Disruption to the law firm business model has been an ongoing force ever since the term ABS became associated with legal practices

The second scenario is a different matter It seems legal clients have been patiently waiting for the lsquodisruptive service deliveryrsquo model to come and there is plenty of opportunity out there for firms to position themselves differently with the modern consumer of legal services

Take a brief example of where old (or rather existing) technology can be used to differentiate ndash videoconferencing Itrsquos a fairly ubiquitous piece of technology thanks to the rise of Skype Facetime and the webcam which gives an instant user experience and a one-to-one connection that bridges the remoteness of a phone call and the need to travel for a meeting It doesnrsquot take much of a leap to imagine a service that allows consumers to access a lawyer instantly using this technology (maybe even a concept that combines the franchise model with an Uber-style app ndash connecting clients to the next available expert from a selection of associated law firms) The point is you donrsquot have to invent something new to be a disrupter ndash donrsquot be afraid to take existing technology and repurpose it to gain a competitive advantage

There are plenty of consumers of legal services who are willing to try out a new service or offering in the search for that great new experience ndash and for those law firms prepared to take the risk and disrupt there really is an opportunity to catch lsquoem all LPM

Advanced LegalRevolutionary solutions for legal services Contact Doug on 01476 573 718wwwadvanced-legalcouk

Advisory

Design

Development

Delivery

Support

If you would like to know morethen please get in touch

wwwsoftclcominfosoftclcomFREEPHONE 0808 164 0000

Leeds office15 St Pauls Street Leeds LS1 2JG

Manchester officeExchange Quay Building 8 Suite 21 Salford Manchester M5 3EJ

Helping Law Firms to improve business performance through their use of IT

C

M

Y

CM

MY

CY

CMY

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SoftwareCloud_A4_Advert_V4pdf 1 20082016 1130

LEGAL PRACTICE MANAGEMENT18

SEPTEMBER 2016COLUMNS

JANINE PARKER THE BROKER

WHAT PRICE EXCLUSIVITY

Itrsquos that wonderful time of year when the annual bombardment of brokers begins on your never-silent telephones All of them can ldquocarry out a full market exerciserdquo for you that will of course save you money

But whatrsquos the reality The marketplace is still murky and as a profession we donrsquot help ourselves by keeping it opaque So letrsquos objectively consider many of the claims brokers make attempt to clarify the true mechanics behind the market and consider how to best utilise it for the benefit of your firm

Since 2000 and the demise of the Solicitors Indemnity Fund competition for solicitors professional indemnity has increased This hasnrsquot always been generated through the number of insurers but the ever-increasing number of brokers who purport to be experts in this very niche area of insurance This has increased pressure on insurers to lower prices (a good thing for clients up to a certain point) but this pressure combined with some extreme economic factors has contributed to many insurers withdrawing from the market over the past decade

Competition is good for consumers and it encourages innovation to make sure that brokers and insurers can differentiate themselves by developing their product offering

Some brokers organise lsquoexclusiversquo arrangements with insurers often segmented by the number of partners within the firm ndash which is a very artificial way of dividing up the profession But this is the marketplace wersquore in today and itrsquos worth looking a little closer at these lsquoexclusivesrsquo

All the direct access points are listed in the Law Society buyer guide and in practice itrsquos only a handful of brokers who actually hold the exclusive with direct access to the underwriters It is essential to note that these exclusive agreements are not always lsquotiedrsquo arrangements The broker is not bound to place all their business with their one exclusive insurer and itrsquos often the case that those brokers who hold the exclusive arrangement also enjoy strong relationships with the open market insurers

To increase distribution brokers who hold exclusive arrangements will offer access to other brokers who wish to take advantage of the exclusive products available These brokers donrsquot have their own facilities There are many commercial reasons for opening an exclusive to other brokers but itrsquos important to note that the extra broker in the chain will dilute your relationship with the placing broker and ultimately your insurer Marketing materials can often be unclear as access to exclusives is readily used ndash but in reality these brokers will be approaching another broker to do this

Often law firms will be unaware of the number of brokers in the chain and will unwittingly be paying additional brokerage and fees unnecessarily Direct access allows for better communication between your firm and insurers which can often lead to more competitive pricing Removing a broker from the chain can lead to the process of claims handling being more efficient and effective as there are less obstacles in the chain of communication

In summary no one broker has direct access to every insurer and it is possible to approach more than one broker and not be at risk of flooding the market If using more than one broker be clear who you would like them to approach and be aware whether they have to go through another broker to ultimately reach the insurer LPM

ABOUT

SPONSORED EDITORIAL

ParagonBetter broking for legalContact Janine on 020 7280 8200wwwparagonbrokerscom

LPMLEGAL PRACTICE MANAGEMENT

SUPPLEMENT SEPTEMBER 2016

BUSINESS INFORMATION FOR EVERYONE IN PRACTICE MANAGEMENT

LPM INSIGHTS

Sponsored by

How do SME law firm management leaders see the future

LEGAL PRACTICE MANAGEMENT20

SEPTEMBER 2016LPM INSIGHTS

ALL CHANGE

22WHATrsquoS NEXT We analyse the 2016 LPM conference polling data

2 1 COMMENT Accesspointrsquos Richard Roebuck on legalrsquos increasing digital dangers

Change and transformation are words that strike fear into the most hardened of legal management hearts because they are hard to do and even

harder to make stick But change must happen inside todayrsquos SME law firms to make sure they stay in business in tomorrowrsquos world

At this yearrsquos Legal Practice Management conference in London we polled our audience of law firm management delegates on a range of topics Some questions wersquove been asking since our first LPM conference back in the misty era of 2012 Much has changed in the world since then (new UK governments drones are now lsquoa thingrsquo Donald Trump) but legal not so much The rise of the ABS has been slow (though impactful) and the recession has for many businesses faded into a distant memory compared to the Brexit debate

But SME law firms rightly smell a real need for change in the wind ndash and perhaps though they seem to find it hard to name that change the clues are legion Letrsquos find some

LPM London 2016 delegates named the greatest hurdles to their firmsrsquo growth or further success as lsquoacquiring high-quality staffrsquo and the lsquoinability to create change within the firmrsquo Might the solution to one lie in the other Great talent wants to flock to fresh and vigorous businesses and younger legal eagles are increasingly shy of throwing their lots in with the fusty world of partnership Law firm leaders must look at how their businesses are run and who runs them and how people work if they are to attract great people ndash and in doing so they will create the change they seek

Herersquos another 52 of delegates named lsquoclient pressures on costrsquo the factor thatrsquos having the biggest impact on the SME legal market ndash but when asked how important price is when winning business 67 said itrsquos just lsquoone of a range of important factorsrsquo while 21 said itrsquos lsquonot as important as other things such as relationshipsrsquo This is a disparity I canrsquot quite understand but it doesnrsquot sound like the SME legal market truly gets the shift thatrsquos happening on the client side and how much change needs to happen inside firms to meet this challenge

Read on and come to your own conclusions but I think the clues are now becoming obvious I hope your firm sees them too LPM

Rupert Collins-White editor-in-chiefLPMmag | rupertwlsncouk

You donrsquot as the song goes need to be a weatherman to know which way the wind is blowing in the legal market ndash but just because the clues are there doesnrsquot mean you can be complacent about acting on them

CONTENTS

FEATURES

LEGAL PRACTICE MANAGEMENT21

SEPTEMBER 2016LPM INSIGHTS

MORE TECHMORE SECURITY

INTRODUCTION TO THE RESEARCH FROM OUR SPONSOR RICHARD ROEBUCK MANAGING DIRECTOR ACCESSPOINT

After a recent period of uncertainty it would now seem that most firms are confident about their future especially in light of Brexit Whatrsquos also certain is

that most firms are very conscious that to compete they will need to change and adapt themselves for the challenges ahead

With growing concerns about the lack of high-quality people available and what appears to be a reliance on quality individuals driving more lucrative fee-earning work is it time for a gear change

Perhaps the dawn of high-volume low-margin fixed fee work which many firms feared has now arrived As always with change there are challenges to be faced but for those clever early adopters there lies opportunity Making light of the more process-driven tasks and finding more effective efficient ways of completion to deliver client-facing benefits seems key to the wider future of the fixed fee legal landscape

With the growing acceptance of cloud technology and the increasing introduction of new software applications and solutions the legal world has moved on at an improved pace this past couple of years And the world is now clearly keen for more ndash to satisfy its desire for a more accessible and mobile working environment What is key for this trend is that the lsquoquality of the deliverablersquo has an ongoing programme of improvement that benefits both the firm and its clients

As progress pulls us forward there will always be elements arrayed against us Alongside the opportunities hiding in the polling from LPM this year therersquos also a sense of fear and concern around possibly the biggest threat to risk and security there is right now ndash the dark byproduct of technological success cybercrime

Cybercrime is fast growing with ever more complex attacks making headlines It is now one of the most common criminal offences in the UK An increasing number of individuals are exploiting the speed and anonymity of the internet to commit a wide range of criminal activities having no conscience and knowing no borders

It isnrsquot our fault websites get hacked but poor internet safety habits can put us at risk Reusing passwords or using weak passwords make us easy targets for identity theft Remembering multiple passwords can be a pain but there are web services and associated applications that can help such as two factor authentication quality mail management systems URL threat protection and mail encryption

For many firms the biggest threats tend to be by way of the ever-open door into our networks and devices ndash email

Our eagerness to respond almost instantly to emails throughout what will be for most an already pressured day is perhaps the dominant daily activity to foster an unwanted lapse in security In the past 18 months alone I have seen three firms that were truly caught out ndash some with the potential for significant financial penalty by opening email attachments The most common lsquogotcharsquo is an email that appears to have come from the office scanning platform whereby the email address has been cleverly spoofed to appear legitimate (for example downstairscopiermyfirmdomaincouk) There are so many existing and newly circulating threats of this calibre and type that even the most aggressive of filtering systems struggle to keep up

Do you know the name(s) of your copiers and the associated email addresses Do you stop to think before opening the innocuous Word attachment ldquoDoesnrsquot our scanner usually send PDF files Why has a covering note not been included with the attachmentrdquo Stop think and call for advice

Another infamous scam is the spoofing of email addresses of key people within your firm ndash for example an email to the head of accounts appears to be from the senior partner ldquoPlease send pound17000 to account X at your earliest convenience and confirm once processedrdquo it says Stop ndash is this your agreed process

As the demand grows and we extend our reach out into the online world so cybercrime advances ever closer seeking unauthorised access through our front door Quite clearly online is the future but we need to embrace it with the necessary skill sets and processes in place for our convenience wellbeing and prosperity LPM

There are so many existing and newly circulating threats of this calibre and type that even the most aggressive of filtering systems struggle to keep up

Accesspoint are independent legal IT specialists who consult on a variety of information technology-related issues offering the best in IT solutions to help firms work more effectively

Contact Richard and the team on 0203 189 2645wwwtheaccesspointcouk

LEGAL PRACTICE MANAGEMENT22

SEPTEMBER 2016LPM INSIGHTS

SME law firms are in a battle for survival Whether they know it or not they have huge challenges to face in the next few years ndash around succession planning technology replacing lawyers and being

used by competitors to attain a competitive edge and catering to clients who increasingly want cost predictability transparency and availability

These market pressures were addressed at the LPM conference in May 2016 which was attended by over 100 delegates all SME legal management leaders The delegates were polled on the day about what they thought of the pressures facing them and how theyrsquore planning to overcome them ndash and their answers provide valuable insight into the SME legal market

The polling results show that LPM conference delegates were aware of the severity of the challenges they face Three-quarters of legal management leaders we polled at the 2016 LPM conference thought that the challenges theyrsquoll face in the next five to 10 years will be lsquomorersquo or lsquomuch morersquo serious than in past years And 58 of delegates thought that the challenges in the next year to two years will be lsquomore serious than in past yearsrsquo

How they will face these challenges depends at least partly on attitude ndash whether they believe they can win or will eventually lose the war Fortunately most LPM conference delegates were optimistic about their firmsrsquo futures - 81 were either lsquocautiouslyrsquo or lsquoveryrsquo optimistic about their place in the legal market of the future

This doesnrsquot necessarily suggest that theyrsquore confident in the market overall particularly after the market instability brought by Brexit Legal management leaders might believe their firm is the only one thatrsquoll survive due to expertise in a particular area or niche In any case it indicates market confidence and a confidence in the ability of their firm to compete and succeed

But is this optimism misplaced in a market where the future is increasingly uncertain and competitive Are firms really ready for change on a huge scale as their confidence might suggest What are the issues currently keeping SME legal leaders awake at night

In this report LPM shines a light on the SME legal market through the eyes of our legal management leader audience ndash those driving their firms through an uncertain new world

WHATrsquoS NEXTChange is on the agenda for LPM firms but how to address the biggest challenges and which ones to face first is a tough call finds Patrick Wingrove

More serious than in past yearsMuch more serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch less serious than in past years

51

14

8

3

24

More serious than in past yearsMuch more serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch less serious than in past years

How would you rate the challenges your firm faces in the next five to 10 years

More serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch more serious than in past yearsMuch less serious than in past years

58

17

6

0

19

More serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch more serious than in past yearsMuch less serious than in past years

How would you rate the challenges your firm faces in the next year to two years

What is the greatest hurdle to your firmrsquos growth or further success

What is the greatest hurdle to your firmrsquos growth or further success

LEGAL PRACTICE MANAGEMENT23

SEPTEMBER 2016LPM INSIGHTS

TIMES THEY ARE A CHANGINrsquo The overriding theme of the 2016 LPM conference was change ndash how firms can implement it the drivers behind it and the various blockers to it But the first step to change is gauging which factors will have the biggest impact on the legal market Just over half of legal management leaders we polled thought client pressures on cost like demanding fixed fees will have the biggest impact while just over a quarter thought it will be competitors attaining a market advantage using technology

How quickly do firms need to respond to these oncoming market pressures Well 86 of LPM conference delegates thought that change needs to happen in their firms within the next two to five years But 14 said that their firm doesnrsquot need to change significantly perhaps because theyrsquove beaten the rest to the punch their legal business is somehow immune to new pressures ndash or they have their heads in the sand

Legal has traditionally been resistant to change and itrsquos not surprising that some firms still are says Sean Stuttaford COO at Essex firm Thompson Smith and Puxon (TSP) and 2016 LPM conference delegate ldquoThere are still firms out there where partners donrsquot have computers on their desks ndash theyrsquore stuck in their ways and just point blank refuse to

52 26 5 12 5

develop their business for the futurerdquoBut legal management leaders willing to implement

change may still find it difficult as 60 of LPM conference delegates polled thought that lsquochange isnrsquot really understood at their firmrsquo

GROWING PAINSJust over a quarter of LPM conference delegates also thought that an inability to create change within their firm would be the greatest hurdle to the businessrsquos growth or further success ndash though Stuttaford at TSP suggests voters might have blamed the traditional partnership business model for the same reason

But acquiring high-quality staff was considered to be the greatest hurdle for growth or success by 36 of delegates Rebecca Patterson HR manager at Kent firm Thackray Williams and 2016 LPM conference delegate says that she agrees with this result ldquoOur firm has a particularly tough time finding quality support staff ndash we could perhaps stand to invest more in competency frameworks and performance management and training opportunities to aid recruitment and retentionrdquo

William Robins operations director at lsquodistributedrsquo firm Keystone Law and a 2016 LPM conference speaker says

12 36 27 13 12

Lack of fundsAcquiring high-quality staffInability to create change within the firmTechnologyThe traditional partnership business model

Out of these which factor is having the biggest impact on the SME legal market

Client pressures on cost (eg fixed fees)Technology creating advantage for competitorsConsolidationDifficulty in finding routes to growth (eg funding)Something else

What is the greatest hurdle to your firmrsquos growth or further success

LEGAL PRACTICE MANAGEMENT24

SEPTEMBER 2016LPM INSIGHTS

offering a more flexible remote or mobile working set-up for everyone in a firm is an excellent way to attract talent (Keystonersquos model of course is founded on remote working) Perhaps the majority of legal management leaders polled at the 2016 LPM conference agree since their firms have either adopted a flexible remote or mobile working set-up are planning to adopt one or are considering adopting one ndash though there are other advantages to remote working such as reducing overheads In any case the results indicate that the SME legal working landscape is becoming considerably more flexible

But remote working doesnrsquot work for everyone Mary Mocklow CEO at West Midlands firm Talbots Law and 2016 LPM conference delegate says that their high-street set-up wouldnrsquot allow it ldquoThe majority of our staff are client-facing and need to be present at the office ndash and while there are other staff at Talbots that might benefit from remote working you canrsquot have a policy for one and not for allrdquo

CYBER THREATSTechnology was clearly a significant concern for legal management leaders who attended the 2016 LPM conference Patterson at Thackray Williams says some firms have had a hard time finding software that caters to their needs as a business and an LPM conference poll seems to back this up just under half of legal management leaders polled at the conference thought project teams should write law firm software indicating a desire for cross-department input into its creation But the poll also indicates that legal software providers have to a large extent been meeting their clientsrsquo needs

The rising threat of cybercrime was also a clear concern for LPM conference delegates ndash 92 of SME legal management leaders said their firms have cyber risk on their management meeting agendas Stuttaford at TSP says ldquoItrsquos something firms need to be constantly aware of and take precautions against not just by purchasing good firewall and antivirus software but by educating staff about password discipline authentication processes and suchrdquo

32 18 14 33 3

Is cyber risk on your management meeting agenda

92

5 3

Yes No Dont know

Is your firm moving to a more flexible workingremote or mobile working set-up for everyone in it

YesNoConsidering itWe already do itDont know

LEGAL PRACTICE MANAGEMENT25

SEPTEMBER 2016LPM INSIGHTS

PRESSURES AND PRICINGClient pressures on cost was also a major concern for legal management leaders polled at the conference so it may not be surprising that just over half of them said 50 or more of their firmrsquos work is some form of fixed fee This doesnrsquot necessarily suggest that the other half arenrsquot open to the concept of fixed fee ndash Mocklow at Talbots points out that fixed fees work for certain types of work ldquoHigh-street firms like Talbots can benefit greatly from fixed fees which is why 75 of our work is fixed fee but itrsquos more difficult to apply to firms that specialise in something like admiralty lawrdquo

The industry seems to think that the value of service has been lost to the price obsession in some areas but not in others ndash and while pricing is clearly a vital issue for SME firms 88 of legal management leaders polled at the LPM conference thought that itrsquos lsquoone of a range of important factorsrsquo or lsquonot as important as other thingsrsquo Patterson at Thackray Williams says that maintaining a good relationship with clients is often more important than pricing though pricing can be a means to achieving client satisfaction ldquoIt also depends on the client ndash in something like conveyancing first-time buyers might be looking for fixed fees or the cheapest price but for commercial clients that may not be as important as reputation or relationshiprdquo

TREASURE MAPPINGLegal process mapping often used by lsquobig lawrsquo and making inroads into SME legal could potentially make SME firms a great deal more efficient and therefore more competitive Two-thirds of legal management leaders polled had heard of process mapping and 79 thought that it is relevant to the business of law Stuttaford at TSP says he agrees ldquoFirms should look at their processes learn from them and figure out how to improve those processes ndash this question really made us look at what TSP has done so far in terms of what legal processes wersquove mapped and whenrdquo

To sum up LPM conference delegates were aware of the challenges that face them but were mostly optimistic nonetheless This may be because they know they need to change and in spite of the fact that change isnrsquot really understood at their firms are planning to mend their ways to meet future market pressures ndash generally putting the client first while keeping talent and technology high on their agendas LPM

Are aware of this thing called legal process mapping

66

34

Has the value of service been lost to the price obsession

23

23

54

Yes No Depends on the service Dont know

Yes No

How important is price in winning business

8

4

67

21

CriticalMore important than almost all factorsIts one of a range of important factorsNot as important as other things such as relationshipsIts one of the less important things in reality

What is the greatest hurdle to your firmrsquos Are aware of this thing called legal process mapping

LEGAL PRACTICE MANAGEMENT27

SEPTEMBER 2016COLUMNSSPONSORED EDITORIAL

Welcome back LPM readers ndash the new school term has started summer is (pretty much) over and the UK is back in full throttle after the summer break And what a break itrsquos been at

File Queen HQ (wersquove taken the time to get our clients up and running with augustprojects as well as started our new Instagram feed filequeenadds)

With the start of the new learning year wersquore focused on the education of you lovely LPM readers ndash with our attention turning back to the General Data Protection Regulation You may remember that in our last LPM article we ran through the 12 steps to tackle the GDPR helped by the awesome people at the Information Commissionerrsquos Office ndash wersquove provided a link to their 12-step resource via our website wwwarchivestoragenetnewsgdpr

Over the next three columns wersquoll be taking these steps and breaking them down for you ndash starting with step one awareness The File Queen (myself) and the team at ADDS have been promoting this step as the most important for all legal practices

ldquoWhyrdquo we hear you holler Well this step is the all-important life raft that unites your practice and team members to help you in the GDPR fight for survival (dramatic I know)

Getting the team on board ndash this buy-in needs to include all ranks of staff ndash from the managing partners to your suppliers But how do you do this Well here are some File Queen tips for when we at ADDS are rolling out projects

Lunch and learn ndash with a register People love to eat and be social so get your legal business to book in a couple of lunch and learn sessions Donrsquot limit this to one date ndash you must run at least two or three so people have the option of which dates to attend Make sure you make a register for those that actually turn up (we all know a calendar acceptance doesnrsquot mean theyrsquoll actually appear) This will allow you to chase down the members of the team you need to get on board for the next one

Have some decent sandwiches nibbles and soft drinks and give the team an overview of the GDPR Run through the 12 steps and make sure you educate them on why everything is so important (make sure you mention the increased fines and audits) During this time let the team know that there are several steps along the way that yoursquoll need their help and support for and which you wonrsquot be able to achieve on your own Tell them that the businessrsquos reputation and brand is on the line and that you need everyone on board to lend a helping hand and spread the word

Another great File Queen tip at this stage is also to get some additional funding from the practice manager for a wine and quiz night at the end of the lunch and learn periods This can be part of your social gathering on a Friday straight after work ndash with some more nibbles and wine Assign people to teams and have a GDPR quiz The winning team gets an award and everyone has fun and learns at the same time Follow our twitter feed as wersquoll be tweeting some great questions to ask thefilequeen GDPRQUIZ

We know itrsquos a lot to organise but there are only four months left in 2016 and GDPR practices must be in place by 25 May 2018 And believe me when you have to roll out rather hard core legislation you have to make it fun and interactive to get people on board LPM

ABOUT

NATASHA RAWLEY THE FILE QUEEN

EDUCATING YOUR PROS

ADDSSaving firms from paper hellContact Natasha on0800 328 0272wwwarchivestoragenet

LEGAL PRACTICE MANAGEMENT28

SEPTEMBER 2016FEATURES

28

Patrick Wingrove talks to the founders of Proelium Law about their work providing legal advice in high-risk environments and conflict zones and the challenges of setting up shop in a new and risky area of law

Legal commandosProelium

Compared to the day-to-day lives of Proelium Law founders and partners Richard Stephens (above left) and Adrian Powell (centre) the average lawyer leads a pretty humdrum life Though UK-based the

firm has a strong international focus ndash Stephens and Powell regularly travel to provide legal and business advice to companies and individuals in high-risk professions or working in hazardous environments across the globe including conflict zones in Iraq Syria and Afghanistan Powell says that itrsquos a challenging but exciting area of law to be in and that ldquono two days are ever the samerdquo

The firm was established as an ABS in November 2015 allowing Powell and Stephens to operate as partners although Stephens isnrsquot a lawyer Powell qualified as a solicitor in 2004 after spending 11 years of his career in the British army and post-2006 worked on various high-risk projects around the world ndash giving him the inspiration for Proelium He says ldquoThe idea came to me in Baghdad in 2009 while working for a private security company as a legal adviser ndash I thought lsquoWhy isnrsquot there a firm doing thisrsquo But I soon realised that I needed someone on the ground who wasnrsquot a lawyer to help make it happenrdquo

That person was Stephens He previously served in the Royal Marines worked as a Whitehall-based strategic planner for the UK government and commanded a special operations regiment (which is why we couldnrsquot show you his face but itrsquos a nice issue of LPM) He now works primarily on the business development side of Proelium ldquoJoining Adrian who Irsquod previously worked with on projects around the

LAW FIRM PROFILE

LEGAL PRACTICE MANAGEMENT29

SEPTEMBER 2016FEATURES

world at a firm meant I could do fascinating and important work with the credibility that being a partner in a regulated business providesrdquo he says

Their work has certainly been interesting Proelium has cast its net far within the niche high-risk sector ndash advising UK-based service providers on the complexities of working in hostile environments conducting business and human rights due diligence and ensuring anti-money laundering counter terrorist-financing and anti-bribery compliance for companies intending to run in high-risk areas or conflict zones to name a few Recently theyrsquove also been working on developing capability for national intelligence organisations overseas ndash but for fear of being jailed for treason Stephens and Powell didnrsquot elaborate hellip

Powell says that the challenges companies face in these areas are numerous ldquoTherersquos a real technical knowledge in understanding how organisations physically work overseas These companies are good at what they do but that doesnrsquot necessarily translate into being business-savvy when it comes to operating in frontier markets ndash thatrsquos where Proelium adds valuerdquo For example after a client was recently exposed on an arms deal they were able to quickly discern liability and ensure that all necessary agencies and departments were appropriately informed

Powell and Stephens joke about how theyrsquore the number-one firm in their sector ndash admitting that to their knowledge theyrsquore the only firm that specialises in this area of law They added that itrsquos an untapped niche in which Proelium will be a pioneering force but which has also recently come onto the radar of a larger firm Theyrsquore alluding of course to Proeliumrsquos recent venture with Harrison Clark Rickerbys ndash a joining that combines Proeliumrsquos experience working in high-risk jurisdictions with the manpower and existing defence and security expertise of

HCR Powell says ldquoWhat they donrsquot have is our connections and our experience They like the idea of the sector because they see it as an interesting area and the partnership will allow us to offer a wealth of different legal services while letting us focus on what we do bestrdquo

As part of their ambitions for Proelium Powell and Stephens are keen to train a new generation of lawyers whorsquoll specialise in the high-risk sector ldquoWe have confidence in what the younger generation has to offer and we want them in our industry to continue our work in this relatively untapped areardquo says Powell Stephens adds that itrsquos also a matter of succession planning ldquoWe want the firm to operate long into the future but we donrsquot necessarily want to be running it ourselves for the next 20 yearsrdquo Proelium currently employs two interns as part of this commitment including University of Surrey law student Ruby Jamieson (pictured) She says ldquoWorking [at Proelium] has given me loads of insight already ndash itrsquos very niche

very new and Irsquove really enjoyed helping develop the business I feel that itrsquoll open a lot of doors when I graduaterdquo

In terms of expansion Proelium has recently opened a new office in the City of London Powell says that his home was originally the firmrsquos practising address but a large portion of their client-base is in London ldquoand we couldnrsquot keep having our meetings in coffee shopsrdquo

But Powell and Stephens are firm believers in the concept of remote working which works particularly well for their business

ldquoMost of our clients are either in London or outside the EU so Irsquom always away but all my phone calls are redirected from the new office to my mobile so I can keep in touch with clients whether Irsquom in Dubai or Baghdadrdquo says Stephens Powell adds that he feels remote working has the added benefit of keeping staff happy by letting them work from home which he says certainly makes him more productive as a fee earner

Proelium isnrsquot looking to expand into areas it has no interest in like family law but theyrsquore taking a keen interest in the emerging area of cyber law and are considering taking steps into that world ldquoLike high-risk law no onersquos really wrapped their arms around cyber law yet Therersquos cyber law in the US but it doesnrsquot exist per se in the UK except in terms of data protectionrdquo

When asked what advice they could give to SME firms based on their unique experiences in their sector Powell and Stephens said firms should know the areas of law they practise inside and out Powell says ldquoWersquore concerned with being experts in our field ndash a lot of our clients have peoplersquos lives in their hands and are not in the business of nonsense which is why they come to us We give sound researched legal advice based on experience and if we donrsquot know something we send the client to someone who doesrdquo LPM

ldquoCompanies are good at what they do but that doesnrsquot necessarily translate into being business-savvy when it comes to operating in frontier markets ndash thatrsquos where Proelium adds valuerdquo

Proelium

Two fee earners four total staff

Offices City of London Wirral Cheltenham

Specialisms International criminal commercial and conflict law due diligence sensitive investigations

LPM FACT FILE

ldquod2u is the UKrsquos number one outsourced transcription service for medical and legal professionals and highly competitive all over the world We pride ourselves on saving our clients time and money as well as offering state-of-the-art security and a first-rate servicerdquo Daryl Leigh CEO dictate2us

LPM magazine has agreed a special deal for its readers with dictate2us ndash 5 off your monthly

transcription bill for one year if you sign up through the dedicated LPM link or call and quote LPM2016 when signing up You can trial the service for free before committing

CUT COSTS INCREASE EFFICIENCYAll firms could benefit from outsourcing transcription to dictate2us ndash but even more so with our LPM deal 5 off your first year

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Use d2u and enjoy the benefits ofbull Fast turnaround timesbull Secure and confidential servicebull Secetarial cost reductions of up to 60bull Guaranteed 985 minimum accuracybull iPhone Android and Blackberry apps with one-hour turnaroundbull 100 output - only pay for the time you talkbull Free no obligation trial

This special LPM magazine reader deal only relates to customers that execute an agreement for a minimum term of 12 months with a minimum monthly commitment of 500 minutes LPM magazine sought two law firm references for dictate2us to verify its claims for quality and delivery The 5 deal only applies to the first paying year the customer is with dictate2us LPM magazine is not responsible or liable in any way for work done by dictate2us and is an advertising referrer only

d u2 dic t a t e 2 u s

SPECIAL READER OFFER

The d2u Transcriber app is free to download from Apple and Android app stores and BlackBerry App World

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LPMLEGAL PRACTICE MANAGEMENT

LPMLEGAL PRACTICE MANAGEMENT

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LEGAL PRACTICE MANAGEMENT31

SEPTEMBER 2016FEATURES

Patrick Wingrove speaks to management leaders from SME and top 100 law firms that have recently achieved significant growth to find out how to go from acorn to oak tree

FROM MINNOW TO

For many SME firms growth is the goal ndash but it doesnrsquot have to happen in the ways that many have scaled in the past The era of organic slow quiet steady partnership development over decades is

increasingly at odds with a fast-paced digital world Strategies for growth in the legal market are now closer than ever to the rest of the business world ndash and any size firm can learn how to do it

Big or small there are similar tools in the box for making growth happen and similar challenges Lessons abound but some of the best can be taken from those firms not far outside the famous lsquotop 100rsquo legal businesses in the land ndash those that have already grown up and now have the top tier in their sights There are also lessons to draw from smaller but rapidly scaling law firms

There are many growth strategies for organic and acquisitive growth ndash and no easy answer for which is right for your firm To shine a light on the subject wersquove spoken both to SME and top 100 firms about growth and how to do it (and importantly how not to do it)

MAMMOTH

LEGAL PRACTICE MANAGEMENT32

SEPTEMBER 2016FEATURES

MODELS OF GROWTH According to the Lawyer the two fastest growing firms in the top 200 this year are Midlands-based Knights and lsquodistributedrsquo firm Keystone Law ndash currently placed 119 and 122 in the 2015 UK 200 rankings but whose revenue will now put them well inside the 2016 top 100 (due for release October 2016) Both attribute their growth to non-traditional business models ndash and very different non-traditional models at that

Knights corporatised in 2014 to remove the barriers from its decision making processes which CEO David Beech says has been the key to its growth ldquoEquity partnerships donrsquot grow particularly quickly because itrsquos hard to achieve consensus and make decisions that enable fundamental or rapid growth among equity partnersrdquo

Knights acquired Oxford-based Darbys earlier this year ndash a move largely behind the revenue increase that will put them in the top 100 ndash and completed the transition inside three months which Beech says would have been next to impossible under their old business structure ldquoNot only was a quick turnaround good for the books it saved significant time and money that could be invested elsewhere in the businessrdquo he says

Top 100 firm Simpson Millar is one step

ahead of Knights The firm broke the glass ceiling to become a top 100 firm in 2015 and like Knights the firm attributes its growing success to corporatisation ndash but in a different manner

It sought to be and was eventually acquired by PLC Fairpoint Group in 2014 Simpson Millar continues to run as an LLP under the same management team and existing trading brands but as a business unit within Fairpoint

Managing partner Peter Watson says that one of the key reasons to pursue this particular growth strategy was to provide an injection of capital for MampA ldquoWe completed the sizeable acquisition of Colemans last year for example which we were only able to do with considerable investment from Fairpointrdquo

Being part of a PLC has also given the firm access to strong MampA and project management capabilities ldquoAcquiring Colemans doubled the business overnight ndash for something like that you need strong MampA experience and access to that team within Fairpoint was crucial in getting the deal across the linerdquo says Watson Simpson Millar also built a strong digital strategy launched new products and focused on pricing ldquoCall it fixed fees or packaged fees the point of it was to say to consumers

Square One Law

Revenue pound5m

31 fee earners 53 total staff

Offices Newcastle-upon-Tyne

Specialisms Commercial corporate property employment EU and competition law finance litigation private client

LPM FACT FILE

Knights

Revenue pound40m (year end 2017)

375 fee earners 450 total staff

Offices Chester Cheltenham Newcastle-under-Lyme Derby Oxford Hale

Specialisms Full service firm

LPM FACT FILE

LEGAL PRACTICE MANAGEMENT33

SEPTEMBER 2016FEATURES

lsquoWith us you know exactly what yoursquoll get and how much itrsquoll costrsquordquo

PEOPLE PLEASERSThe ability to implement change has also been an important part of delivering a growth strategy This isnrsquot necessarily surprising ndash polling at the 2016 Legal Practice Management conference showed that legal business managers thought it was one of the greatest hurdles to a firmrsquos growth or success only topped by acquiring high-quality staff In Knightsrsquo case the two challenges were addressed together Beech says Knightsrsquo corporate rather than partnership structure also allows it to recruit talented people without having to deal with the inherent politics of an equity partnership

ldquoAcquiring the best talent has been a central part of our growth strategy ndash if a candidate can help the business through expertise or client following we can just recruit themrdquo he added

But a successful growth strategy incorporating talent isnrsquot just about recruiting quickly as we analysed in the July 2016 issue of LPM ndash itrsquos about recruiting well Firms also need to make themselves an attractive prospect for legal talent in order to grow

William Robins operations director at Keystone Law says his firmrsquos lsquodispersedrsquo model allows it to do that by offering new fee earners the chance to work remotely with less supervision ldquoWersquore typically hiring about a lawyer a week ndash bringing their expertise fee-earning capability and client following with them ndash and that is the core part of our growth strategyrdquo The firm has buttressed its recruitment capability by hiring a director of recruitment to focus almost entirely on lawyer enrolment (recruiting talent to recruit talent ndash neat)

Though the distributed model may not be for everyone says Robins implementing some form of flexible mobile or remote working should be part of any firmrsquos growth strategy because it allows firms to increase their fee-earning capability without accruing fixed overheads such as office premises

And there are other ways to be talent-attractive As a core part of its growth strategy Newcastle-based firm Square One Law ndash which achieved 30 growth in the

last financial year ndash has pledged to create a supportive and inspirational team environment offering high-calibre work to attract the best talent Ian Gilthorpe senior partner at Square One says ldquoGood people want to be inspired to be valued for what they do and feel as though theyrsquore making a contribution The key is to engage with all your staff to facilitate a culture where staff feel happy at work work for each other trust each other and ensure that they see the value in what they do ndash if you do that more talent will comerdquo

He added that itrsquos important for

recruitment to convey staff satisfaction to the outside world which Square One has achieved by including staff video-testimonials on its website

But recruiting is only half of an effective people strategy ndash the other is retention Simpson Millar has attempted to create an environment that its talented staff wonrsquot want to leave Says Watson ldquoToo many firms worry about what will happen if their rainmaker goes somewhere else and takes clients with them ndash so they put the shackles on make them feel unhappy and make it so that they canrsquot realise their full potentialrdquo Creating such an environment makes firms an attractive target for lateral hires when they should be building a place people want to join

PRACTICE AREASSME legal businesses donrsquot necessarily need to change their business models completely to achieve the same growth as

Thorntons

Revenue pound20m

209 fee earners 430 total staff

Offices Dundee Edinburgh St Andrews Perth Cupcar Kirkcaldy Anstruther Arbroath Montrose Forfar

Specialisms Full service firm

Keystone

Revenue pound202m

198 fee earners 230 total staff

Offices London Bristol Isle of Man Australia

Specialisms Corporate and commercial dispute resolution property

LPM FACT FILE

LPM FACT FILE

Equity partnerships donrsquot grow particularly quickly because itrsquos hard to achieve consensus and make decisions that enable fundamental or rapid growth among equity partners David Beech CEO Knights

Simpson Millar

Revenue pound316m

322 fee earners 539 total staff

Offices Birmingham Bristol Cardiff Cheadle Hulme Gateshead Kingston-upon-Thames Lancaster Leeds Park Place Leeds St Pauls Street (head office) London Manchester Newcastle

Specialisms Full service firm

LPM FACT FILE

LEGAL PRACTICE MANAGEMENT34

SEPTEMBER 2016FEATURES

our examples but removing blockers from decision-making making themselves more attractive to talent and finding the right funding for growth are increasingly important and the partnership structure may not enable it

But of course that means asking some turkeys to vote in a Yuletide election Fortunately there are other ways to achieve impressive growth mainly investment andor expansion into new geographic or practice areas

Watson says that Simpson Millar wouldnrsquot have been an attractive prospect to Fairpoint had the firm not spent time growing organically by expanding into new areas of law

ldquoWe went from being a predominantly trade union PI firm to having a broad base of 16 types of work ndash with strong heads in charge of each committed to driving growth in their departments ndash which gave us a large boost in revenuerdquo The firm achieved this through small acquisitions of other firms that had expertise in particularly lucrative areas of law

But firms shouldnrsquot just look at expanding in lucrative areas ndash they should focus on areas where their reputations deliver an advantage Scotlandrsquos Thorntons for example ndash which last year leapt from 134 to 108 in the 2015 UK 200 rankings ndash invested in six departments as part of its growth strategy

Thorntons joint managing partner Scott Milne says ldquoWe didnrsquot exclude other areas but we saw that these areas were profitable and that more importantly we had considerable expertise in them ndash we also considered that these are areas that are unlikely to be affected by future economic downturnrdquo This included investing in niche areas of law where the firm has a geographic competitive advantage ldquoWersquore lucky to be surrounded by some of the best farmland in the UK ndash wersquore well known for our expertise in rural business law which is why we invested heavily in itrdquo

ORGANIC V ACQUISITIONIn several ways choosing an effective growth strategy very much boils down to MampA versus organic growth ndash every business model talent or area expansion strategy appears to revolve around one or both But which is the best to achieve the kind of growth thatrsquoll propel firms to a lsquohockey stickrsquo on their revenue forecasts The short answer is it depends on whatrsquos best for a firm at a given time It either

needs to fit the firm ndash or the firm needs to change to fit the goal

Beech says that acquisition has been excellent for Knights because itrsquos a fast and effective form of expansion ndash the acquisition of Darbys more than doubled its revenue But MampA poses a significant challenge to finding firms with the right cultural fit

ldquoFirms need to establish a single culture in order to implement growth ndash everyone needs to be working towards the same goalrdquo He added that when a firm completes a merger or acquisition that firm has to be integrated from day one which is much more difficult if it has a significantly different culture Knights is planning to continue recruiting and complete more acquisitions in the next year to maintain the growth curve

Of course the big problem with acquisition is money Robins at Keystone says his firm lies at the opposite end of this

INFORMATION IS EMPOWERING

Lemington Spa-based firm Wright Hassall has a specific goal of breaking into the top 100 and as part of its growth strategy expanded into areas of the UK where its expertise is highly sought after ndash using customer relationship management in the background to underpin the firmrsquos activities in specific areas Martyn Wells IT director at the firm says ldquoWersquove zoomed in on specific industry sectors that we know are performing well in the Midlands sectors where we have a superb reputationrdquo Expanding geographically as Wells outlines needs data to get right Thorntons for example identified various lsquomicro-marketsrsquo in Scotland close to its base of operations ldquoWe acquired a firm in St Andrews because itrsquos like a micro-economy (or micro-market) that doesnrsquot seem to be affected by price drops in the residential market elsewhererdquo says Thorntons joint managing partner Scott Milne Knights has another take on the geographic targeting idea ndash it intends to stay out of the large cities (London Manchester Leeds for example) and expand into areas where there is little competition As David Beech CEO at Knights explains ldquoLast September we acquired a small team in Chester of about 11 lawyers and now thatrsquos expanded to just over 70 ndash and the main reason wersquove been able to do that is because there isnrsquot a lot of competition thererdquoUltimately this all comes down to research finding out what to invest in or where to expand and perhaps most importantly finding out what clients want

LEGAL PRACTICE MANAGEMENT35

SEPTEMBER 2016FEATURES

spectrum to the way Knights has grown emphasising organic growth finding innovative means to attract talent using technology to drive efficiency and branching out into new areas of law or new markets to achieve significant growth

Square One Law also espouses the organic route ndash believing that firms with growth in mind should focus on ensuring their external brand reflects the businessrsquos internal culture and behaviours of its team creating lsquosynergyrsquo between the business and its clients

Gilthorpe says ldquoMergers ndash and there is no such thing as a true merger ndash and acquisitions can be a distraction as you look to create a new culture and separate the wheat from the chaff and this can soak up a lot of energy that would otherwise be put to use in driving the progression of the business and the focus on client servicerdquo

The best option for some firms may be a

calculated combination of MampA and organic Thorntons for example having made several acquisitions is now focusing on organic growth moving away from geographical expansion and towards developing locations and its brand

Watson at Simpson Millar sums the mixed approach up thus ldquoItrsquos a mixture Acquisition is still very much a part of the mix but in parallel to that itrsquos important to demonstrate that yoursquore developing ongoing work rather than being driven solely by acquisitionrdquo

There are clearly many different ways to achieve healthy and assertive growth though there are no easy answers as to which way is right for your firm But it is clear that growth doesnrsquot have to happen in the ways many have previously achieved it ndash innovation and lateral thinking are the means of achieving significant growth (which might one day propel you into the top 100 you never know) LPM

LEGAL PRACTICE MANAGEMENT36

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

INDUSTRY VIEWS

36LEGAL PRACTICE MANAGEMENT

Legal is becoming an ever more digital industry giving firms the chance to become more efficient flexible agile and collaborative

INDUSTRY VIEWS INDEX

ONLINEOFFICES

36

SPONSORED EDITORIAL

INDUSTRY VIEWS

37 INTERVIEW

Paperless processLinetimersquos Tony Klejnow explains the benefits of using matter management software for law firms and their clients

39 INTERVIEW

Virtual expansionNigel Redwood Nasstarrsquos CEO talks about the advantages of having a managed flexible IT infrastructure

LEGAL PRACTICE MANAGEMENT37

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT37

Competition and price pressures and an increasingly digital client base are all significant drivers for law firms to become paperless

businesses Tony Klejnow Linetimersquos managing director says firms could achieve competitive advantage by introducing paperless solutions across their businesses ndash but a particular lsquoeasy winrsquo area is matter management

ldquoFee earners are required to keep detailed records of their cases but the amount of time and money they waste physically printing filing looking for collaborating on and updating files is alarmingrdquo says Klejnow Law firms have traditionally been reluctant to adopt paperless

workflow solutions he adds because workflow doesnrsquot apply to 99 of fee earnersrsquo work ldquoBut if they adopted paperless solutions in their back office processes they could reduce costs without affecting client service boost productivity and promote collaboration ndash making them more efficient flexible and cost effective and making them more competitive in an ever-changing legal marketrdquo

MATTER MATTERSDocument and matter management tools ndash like those in Linetimersquos legal software product Liberate ndash electronically store and organise all case documentation in an online database Klejnow says that there are two immediate benefits of paperless matter

PAPERLESS PROCESS

Tony Klejnow managing director at Linetime talks to LPM about the benefits of the paperless office ndash starting with filing and back office processes

INDUSTRY VIEWS

Linetime is a specialist provider of Microsoft-based practice and case management solutions Clients include mid-tier law firms and in-house legal departmentswwwlinetimecouk

ABOUT THE SPONSOR

SPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT38

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT 38

management The first is reducing paper and storage costs

ldquoIf case documentation is electronically stored once a case is finished you no longer have a five-inches-thick file that has to be stored for six years ndash which has to reside somewhere and costs firms time space and moneyrdquo The second is eliminating filing time ndash for example instead of printing and filing emails and attachments fee earners drag and drop emails directly from Outlook into the database ldquoand attachments are automatically stripped from emails and appropriately filedrdquo says Klejnow

And Klejnow says paperless filing systems donrsquot just facilitate efficiency this way ndash they also improve general process efficiency by facilitating collaboration between fee earners Solicitors can use document and matter management to view and work on matters at the same time a difficult if not impossible prospect when working with paper files Klejnow says ldquoWithout document management legal professionals work in silos but with it they immediately share datardquo He adds that Liberate has an additional collaboration tool to help further improve collaborative efficiency in firms ldquoIf I choose to lsquocollaboratersquo a document with you on Liberate Outlook will prompt you to review that document by simply acknowledging the notificationrdquo

In this respect moving to become a paperless business provides greater flexibility for fee earners who can collaborate with colleagues working remotely or in different offices Klejnow says ldquoPaper files can only reside in one location but electronic files can be accessed from any office and when working from home or with clientsrdquo On the other side of the coin having digital files maintains a greater level of productivity in a law firm office ldquoIf your colleague is absent from the office you can easily find documents that you might have otherwise wasted a significant portion of your day looking forrdquo he adds

Improved external collaboration is also a benefit that firms can reap from paperless matter management With an electronic system you can go into a case history bundle documents into one PDF file and quickly submit that to the third party improving collaboration between fee earners and clients who want to do everything online This has the added benefit of improving accuracy and facilitating greater efficiency by involving clients in the process ldquoGood matter management software should also let you push e-forms to clients to be filled in and that information is automatically transferred straight to the online database ndash which saves fee earners

time and is a more accurate because the information doesnrsquot have to be constantly re-enteredrdquo says Klejnow

This extra level of collaboration within legal businesses that hasnrsquot been possible until now has long been needed because it improves efficiency and productivity which makes the business more profitable and competitive Klejnow adds that what firms save by adopting matter management they should reinvest in becoming fully paperless digital businesses

ldquoCase management solutions can improve efficiency to an even greater extent and keep firms competitive in the age of the alternative business structuresrdquo

VISIBLE COMPLIANCEIn response to firms reluctant to adopt paperless technologies like document and matter management for fear of losing delicate information to cybercriminals Klejnow says those systems provide an additional level of security ldquoTaking data and attachments out of Outlook and storing them on a database is much more secure than leaving them on your hard drive If you leave

your laptop on a train for example all your important data is safely stored on a server and not instantly accessible by opportunist criminalsrdquo

Document and matter management also offers a greater level of security in fee earner and client communications ldquoIf I want you to check that the data we have for you is accurate Liberate will

direct you to a page holding your data and at the same time it will push out an SMS text with a pin code to your phone Unless you input the code you canrsquot get to the web page ndash which means if one of your solicitors accidentally sends an email to the wrong person or itrsquos intercepted it doesnrsquot matter The data stays safe ndash this level of security is crucial in this age of cybercrimerdquo

These security features clearly have significant benefits for compliance which is important in a market increasingly dictated by regulation including the relatively new General Data Protection Regulation says Klejnow

ldquoCompliance officers need to be seen by regulators to have monitored and reviewed everything thatrsquos happened in their firm which is considerably easier with a paperless system Liberate has lsquoversion controlrsquo which allows compliance officers to keep tabs on every change made to a document as well as a compliance module which lets them view whatrsquos happening on a case (to ensure that money laundering checks have been carried out and so on) and records the fact that yoursquove reviewed thisrdquo LPM

Without document management legal professionals work in silos but with it they immediately share data

INTERVIEW

LEGAL PRACTICE MANAGEMENT39

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LPM readers may already know the Nasstar Group ndash but by a different name Nasstar was launched by regular LPM-contributor e-knownet to consolidate four discrete hosted

managed IT businesses (including e-knownet) after a period of significant acquisition Nigel Redwood chief executive officer at Nasstar says merger and acquisition and consolidating brands is challenging but having a flexible hosted IT infrastructure makes the process significantly easier

ldquoManaged IT services are enormously beneficial for firms that are expanding or consolidating particularly after MampA in terms of time and productivity cost savings and flexibilityrdquo He adds that by just having managed desktops firms can attain competitive advantage by reducing overheads and becoming more flexible and agile

Nasstar has experience helping SME firms with their IT systems after MampA and knows what problems to look out for creating unity among staff used to using different systems and processes the cost and time it takes to expand an IT infrastructure and the geographic distance between new offices

Redwood says that MampA can be an excellent way for legal businesses to expand into new sectors but that consolidating new departments using different IT systems and processes is challenging

ldquoOur acquisitions for example introduced new sector focuses for us in the SME legal market ndash wersquove consolidated these into a wider service base under Nasstar and facilitated unity among staff using virtual IT solutions

rdquoVirtual IT solutions help facilitate unity across the business by providing a level of consistency in an IT infrastructure Everyone immediately uses the same applications on the same versions from wherever theyrsquore working creating unity faster collaboration across teams and effective information sharingrdquo Hosted IT infrastructures are also continually updated giving staff instant access to new updates applications and technologies as they become available

The next significant challenge firms face after MampA is expanding their IT infrastructure to accommodate an influx of new staff ndash but Redwood says virtual IT solutions let firms expand their IT infrastructure at the flick of a switch

ldquoWith virtual IT firms arenrsquot held back by the size of their servers or the amount of computer power theyrsquove got ndash they simply call their IT provider and ask for an upgrade when previously theyrsquod have been

subject to lengthy and costly IT upgradesrdquo Virtual IT solutions are also easy to budget for

Redwood says ldquoYoursquore not going to be surprised by an increased fixed asset expenditure ndash services like those offered by Nasstar are an operational cost and fixed per user per month through a scalable cost modelrdquo

Geographic distance inhibiting collaboration between merged offices is also a key consideration for firms after MampA but virtual IT solutions solve this problem Redwood says a virtual IT infrastructure can minimise travel through the use of hosted virtual meeting rooms and video technology Staff can use this technology from virtually anywhere which is why it also lends itself well to remote flexible or mobile working set-ups

VIRTUAL WORKPLACERemote working is becoming an increasingly present feature of the legal landscape because of its cost saving and recruitment and retention advantages ndash the majority of firms at the LPM conference 2016 were moving towards a flexible remote or mobile working set-up or already had one

Redwood says virtual IT solutions better enable staff who work remotely ldquoHosted managed desktop solutions for example let staff work with the same applications from any device in the world safely and securelyrdquo

But remote working isnrsquot only about enabling the current workforce itrsquos about attracting future talent Redwood says that millennials donrsquot necessarily want to work as their predecessors did ndash they expect greater flexibility in the workplace which at one level can be achieved by remote working facilitated by a managed desktop

ldquoAnd itrsquos not only about attracting millennialsrdquo he says ldquoSME firms with flexible working set-ups are becoming more attractive to experienced legal talent who may be frustrated by the rigidity of their firmrdquo As a firm expands its workforce in this manner firms with virtual IT solutions reap the lsquodoublersquo cost saving benefits of not having to expand their premises or IT infrastructure accordingly

Some firms are resistant to remote working based on hosted IT services believing they arenrsquot secure ndash but Redwood says that argument ldquocan be put to bedrdquo

ldquoFor an in-house IT team to have the level of security that an organisation like ours can deliver is near impossible financially as well as in terms of the

VIRTUALSANITYNigel Redwood CEO at Nasstar talks to LPM about how managed IT can help SME firms achieve competitive advantage by making them more agile and flexible

LEGAL PRACTICE MANAGEMENT40

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

INTERVIEW

level of systems and technologies they deployrdquo Cybercrime is of course a scary and constantly evolving threat but Redwood points out that virtual IT systems have dedicated teams monitoring these threats evolving cyber defences and changing systems accordingly

ldquoThis capability not only makes [firms] a lot more secure but gives peace of mind in terms of compliancerdquo

ONLINE ADVANTAGE Redwood says virtual IT infrastructures donrsquot just pertain to lsquobig lawrsquo but to SME firms as well ndash perhaps more so

ldquoVirtual IT systems are a way for SME firms to stay competitive against their larger

counterparts and ABSs ndash it gives them a greater ability to expand it lets them adopt more flexible and agile models and is easy to budget forrdquo Firms can also expect virtual IT solutions to enable better alignment of IT resources to business needs enhanced usability with anywhere anytime access and in-built business continuity

But the greatest advantage virtual IT offers SME firms over big law is agility Redwood says ldquoBig IT departments in firms can be slow to react cumbersome and held back by the limitations of hardware infrastructure and security issues ndash all of that is removed with a solution like ours and the customer has access to fast-moving agile ITrdquo LPM

ABOUT THE SPONSOR

Nasstar is a provider of managed IT services and tailor-made cloud hosted solutions ndash delivering innovative secure and agile IT to help clients accomplish their business objectiveswwwnasstarcom

Page 5: LPM September 2016

Itrsquos our business to make the complex simpleWersquore focused on delivering legal practice management solutions that fit and evolve with your business

Looking to improve your practice Then talk to us

Itrsquos the little things that make a big difference

wwwoneadvancedcomlegal

LEGAL PRACTICE MANAGEMENT7

SEPTEMBER 2016IN PRACTICE Follow us and talk to us on Twitter LPMmag

SWEETENING THE DEAL

HR AGONY AUNT

QI read about Eversheds offering free ice creams

to their lawyers during the heatwave in the summer With sweeteners like this how can smaller firms ever compete to get the best people

AWith all due respect to Eversheds there is a

difference between a perk and a gimmick A Mr Whippy ice cream van is a gimmick (and a flaky one at that ndash ho ho) Compare bringing in an ice cream van with offering coding lessons for lawyers ndash the latter is a new trend in large corporate firms such as Australian firm Gilbert + Tobin

To develop coding and programming skills alongside your legal skills is an attractive proposition for bright legal minds ndash and it could be good for the firm too if one of its 500 staff were to make a cost-saving technological breakthrough In terms of a perk it is the right fit for those firms Equally there will be something which is right for your firm ndash just donrsquot be distracted by the gimmicks

Q A senior employee completely lost his

temper with another employee on the phone with a litany of expletives over some missing documents Can I dismiss him for gross misconduct

A The technical answer is ldquoYou may be able to

depending on all the circumstancesrdquo (arenrsquot lawyers good at sitting on the fence) But is showing anger like this always bad Clearly expletives are inappropriate and the context may well mean this is bullying But in another context this could be sheer frustration Sometimes we get angry ndash this might be because it is serious (such as children crossing the road without looking) because something just keeps happening time and time again (our computer is too slow) or because we canrsquot do anything about something (Boris Johnson being foreign secretary for example) You might want to take the employeersquos outburst as indicative of one of these categories and see if there is

anything that you can do to help

Q We have a few staff successfully working

from home one day a week But for one employee itrsquos a complete shambles her internet is patchy she is sometimes hard to get hold of and she never calls in Shersquos good at what she does but is it worth it

A Letrsquos separate the solvable from the

irresolvable Her internet connection may not be something she can control

and itrsquos not an uncommon complaint but the communication deficit is entirely resolvable The employee needs defined expectations ldquoWe need you to phone in at least twice a dayrdquo And defined consequences ldquoOr elserdquo if she doesnrsquot meet them LPM

Polly Jeanneret is an expert in HR and an employment lawyer at Halebury to boot ndash shersquos seen and heard it all

Send her your HR questionsASKPOLLYLSNCOUK

Polly Jeanneret LPMs HR guru answers questions on dismissal homeworkers ndash and ice cream

THIS

MO

NTH

IN N

UM

BERS

THE ILFM ANNUAL SALARY SURVEY REVEALS THAT LOYALTY TO SMALLER FIRMS MAY NOT BE PAYING OFF FOR EMPLOYEES

of employees in medium to large firms

recieved a pay rise

LOYALTY PAYS

of employees in small firms recieved

a pay rise

of employees in small firms were

successfully retained

78 59 89

LEGAL PRACTICE MANAGEMENT8

SEPTEMBER 2016IN PRACTICE Follow us and talk to us on Twitter LPMmag

LPM ASKS

QWhy is it important to optimise your career

pages for mobile phones

AThe proportion of people using their mobiles to

access the internet is increasing rapidly Ofcom statistics badge us as a lsquosmartphone societyrsquo with phones overtaking laptops for getting online People are surfing while watching TV or in bed they are banking shopping and accessing social media ndash and they are looking for jobs If yoursquore not optimising your career pages yoursquore losing out on a large potential talent pool

The average attention span is about eight seconds and on a small screen you have to engage quickly Breaking down any barriers for potential candidates is therefore critical Recruitment is competitive and in the legal sector we are often looking for specific skills We canrsquot afford to lose candidates at key touchpoints

Optimising your legal business website for mobile devices sends a message ndash we are a modern firm we are tech-savvy we understand our market and our target audiences We also donrsquot want to discourage potential candidates new graduates or apprentices who could be our future workforce

QWhy do you need to monitor social media as

part of your recruitment strategy

AOur social media channels give us direct engagement

with candidates and they are a powerful tool to promote the brand You need candidates to

SALLY JONESCOO BRETHERTONSAfter speaking at this yearrsquos London LPM conference COO of Midlands and London firm Brethertons answers our questions on recruiting and retaining new talent at your firm

feel the culture of your business through social media so itrsquos important to monitor the interaction of both staff and followers in this very public arena We use social media as part of a multi-channel recruitment strategy ndash to advertise our vacancies get employees to push vacancies to their networks endorse our roles and culture and generate excitement about our opportunities We also use social media to research our candidates ndash it can be a valuable source of information and help us gauge the fit of future talent

QWhat should SME law firms consider when using

a recruitment agency

AThere are a number of considerations

l Do they understand the roles and do they understand the skills qualities and behavioural attributes you are looking forl Do they understand your business your strategies aspirations and plansl Do they understand your values and culture Do they understand the importance of this alongside the technical skillsl Do they specialise Are they generalist How well do they understand your target audience l What is the nature of the contract and what does it include and exclude Is it an exclusive arrangement and what is the period of engagement Will you need to work with other agencies to ensure good coverage of potential candidatesl How will they communicate

with you and what needs to be approved within what timescales

QWhat are some key considerations for direct

recruiting

AWe are all trying to get candidates from the same

small pool and we cast our net as widely as possible to get the best outcome and return We also want every hire to be a long-term success

With direct recruitment you have to be very clear on how you define potential candidates and how you select and contact them Confidentiality and communication are therefore key factors Getting the pitch right and being confident in negotiations are also important We approach direct recruitment for example by advertising on our website on specific websites and on social media We also use our networks and we have a great staff referral scheme in place

QHow do you create a powerful brand to aid

retention

AAt Brethertons we have a dedicated people

programme that goes to the heart of attracting and retaining great people It is about layers of connected

change ensuring what we do makes a difference and that we understand the impact of business change on our employees Brand is about giving people an understanding of who you are and your identity It gives people a sense of belonging and value and the knowledge that their contribution matters

You can keep good people and make employees proud to work in your organisation in several ways But always be clear on their contribution how it is valued how their performance will be managed and measured and how it aligns with your overall corporate goals LPM

LPM COMES TO BIRMINGHAM IN NOVEMBER

Book your place at LPMB 2016 NOW for just pound175+VAT early bird price

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LEGAL PRACTICE MANAGEMENT9

SEPTEMBER 2016IN PRACTICE Follow us and talk to us on Twitter LPMmag

Now that the UK has voted in favour of Brexit we ask LPM readers ldquoDo SME firms need a plan in place for when the UK leaves the EUrdquo

Want to write us a letter You know that thing no one does anymore You can email us a letter for publication to lpmlsncouk or post us something to LPM magazine 20 Mortlake High Street London SW14 8JN Or get in touch through our LinkedIn group at bitlylpmgroup

Follow LPM on Twitter

LPMmag

NAVEED AHMED HEAD OF IMMIGRATION LAW ASONS SOLICITORSThe uncertainty and far-

reaching implications of the UK leaving the EU undoubtedly exposes SME law firms to greater risks which must be effectively managed Strategic planning at primitive stages of the UKrsquos departure from the EU could very well determine the future viability of many SME law firms Diversification may well be key to prosperity after the break and full service law firms that are engaged in a variety of legal sectors such as employment health education retail intellectual property and financial litigation will be well-placed to navigate the storm

GORDON STARK COOMURGITROYDIn a time of uncertainty it

is better to be prepared ndash having a strategic plan in place is important as is knowing when to act The plan should identify risks but also seek out opportunities Firms may need to make decisions about their future during this protracted period of acute uncertainty ndash knowing when these decisions need to be taken what the options are and what the associated lead times will be to execute them will all be key components of planning

SEPTEMBER 2016IN PRACTICE

ANNABEL HAMPSHIRE MANAGING ATTORNEY STRATAGEM IPMSME law firms are no exception when planning for the

inevitable fallout of a post-Brexit United Kingdom The uncertainty over when the UK will leave the EU and the consequences of legal and structural reform make planning difficult Firms are taking immediate steps to reassure clients as well as educate them about the challenges presented in their specific field For the IP sector changes to protection and exploitation strategy will require careful planning but more immediately a review of contractual obligations may be necessary to mitigate unfavourable or unexpected reinterpretations of terms (resulting from practical effects of Brexit) by any party to the contract

ELIZABETH WEST HEAD OF ORGANISATIONAL DEVELOPMENT REDDIE amp GROSE

In our sector (patent and trade mark attorneys) we compete with EU firms Our European work is a mixture of EU law and other international law but we expect EU competitors to take advantage of the Brexit publicity to try to grab a larger share of that work Our plan includes protecting the revenue stream but wersquove had to put that in place now ndash even before an Article 50 notice is served Wersquod advise all SME law firms to challenge their assumptions about who their competitors are and who they will be after Brexit ndash cheer up and strategise

NICK DAVIS HEAD OF RISK AND COMPLIANCE GEDYE amp SONS

The British governmentrsquos well-made plans may not hit their ideal timetable ndash European leaders will have to try and strike a balance between the wants of the UK the European parliament and the views of their own voters (not to mention their own electoral desires) This is clearly a complicated subject and extends across the areas of law that firms practise and the demographic of their workforces SME law firms need a flexible and constantly evolving plan to be able to advise their staff and clients current or new They also need to be able to demonstrate impartial and accurate views on how any potential changes that come as a result of Brexit affect clients first and them second As part of their plan SME law firms should review any guidance notes issued by the Law Society and the SRA ndash adopting any rules and procedures (particularly relevant would be any change to the General Data Protection Regulation and AML fourth directive) so that their firms are ready and well prepared But a plan shouldnrsquot be overly rigid because itrsquos currently too early to tell what if any impact Brexit will have on UK law

YOURVIEW

LEGAL PRACTICE MANAGEMENT9

Follow us and talk to us on Twitter LPMmag

NOVEMBER 2016

VISIT LSNCOUKLPMB2016CALL RIKKI CLARK ON 0870 112 5058

EMAIL RIKKICLSNCOUK

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THE ONLY EVENT FOR MANAGEMENT LEADERS IN SMALL

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LEGAL PRACTICE MANAGEMENT11

SEPTEMBER 2016IN PRACTICE Follow us and talk to us on Twitter LPMmag

THE WAY TO WHY

BOOK REVIEW

One way of assessing the value of a book like this is by reference to the number of times it makes one think of something it can be applied to in your own career or organisation On that measure

alone Designing the Purposeful Organisation passes with flying colours

At the heart of Wilsonrsquos philosophy is the idea that to be successful organisations must be able to articulate compelling and inspiring reasons for their existence ndash not simply what they do but rather why they do it The usual poster boys for 21st-century business success are quoted as exemplars of this approach - Apple Google Microsoft Reference is also made to Simon Sinekrsquos TED talk (278 million views and counting) and related book Start With Why as a means of uncovering the primary reason for an organisationrsquos existence Indeed a key element of Wilsonrsquos writing style is to send the reader off at regular intervals to take in a TED talk or YouTube video or to reflect in more detail around the topic at hand This does at times make the book feel more like a business coaching session rather than a dry management treatise ndash which for the avoidance of doubt this reader sees as a definite plus point

While the stories around behemoths such as Apple and Google can be compelling I was more taken with the example of the African tax collection agency that Wilson was working with Rather than seeing themselves as taking money from people (the lsquowhatrsquo) he encouraged them to focus on their purpose namely to help fund new schools and hospitals across their developing nation (the lsquowhyrsquo) Articulating the why is also a key element of an organisationrsquos brand proposition Wilson reminds us that customers are more often than not buying why an organisation does something rather than simply what the organisation does Or put another way how many customers would be inspired to have brand loyalty for a firm which simply says that its fundamental reason for being is to maximise shareholder returns

Before anyone starts fulminating about the importance of financial returns Wilson does recognise that results matter However his concern is that they too often become all consuming A key pillar of the book is his belief (which he concedes may be controversial) that overly focusing on results is misguided and can create systemic barriers to better performance Or put more simply results measure our progress to a better future ndash they are not in themselves that better future

This is certainly something that chimed for me as the CEO

of a law firm Yes we all recognise the need to deliver improved financial KPIs However these are simply a means of measuring whether we are delivering value to our clients (given that clients are unlikely to be using and paying for our services where they do not perceive us to have any value) and are unlikely to be the things wersquoll look back on with pride in our dotage

This reassessment of the role of results is also central to one of the key conditions for a more purposeful organisation (and one which will particularly resonate with professional services firms) namely talent liberation Drawing on the work of Daniel Pink on personal motivation (for example Drive The Surprising Truth About What Motivates Us) Wilsonrsquos call is for firms to move beyond transactional performance (pay me X and Irsquoll deliver Y pay me a bit more than X and Irsquoll deliver a bit more than Y) Rather we need to help our people liberate the talent they have by playing to their strengths as opposed to the more traditional performance management model of fixing weaknesses

Wilson focuses particularly on how the proper articulation of purpose can engage millennials Borrowing from Laurence Boldtrsquos Zen and the Art of Making a Living he encapsulates this approach in three short questions What skills and other resources do you have What do you care about Whatrsquos stopping you from pointing A at B

It seems to be that in most law firm management seminars or discussions these days someone somewhere is lamenting the fact that they just donrsquot understand millennials And at last I have an answer for them ndash read Clive Wilson LPM

LPM reader discount ndash use code HRLPMB to get 20 off at wwwkoganpagecom

Designing the Purposeful Organisation How to Inspire Business Performance Beyond Boundaries by Clive Wilson

Publisher Kogan PagePublication date Feb 2015Price pound2999

Reviewer Chris Harte chief executive and partner at Morton Fraser

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LEGAL PRACTICE MANAGEMENT13

SEPTEMBER 2016COLUMNS

Barry DaviesPractice directorDouglas-Jones Mercer wwwdjmlawcouk

BARRY DAVIES PRACTICE DIRECTOR

ROLE MODELS

ABOUT Recent figures show that there are a shade over 130000 people on the roll of solicitors in England and Wales ndash 20 of those undertake an in-house role 80

are classed as employed An enormous number and this is before we consider the significant chunk of employees namely professional managers support staff and those lawyers who are not on the Law Society roll But lots of firms I speak with say lsquowe have too many partnersrsquo or they have reduced the number of lsquochiefsrsquo within their practice as part of their strategic planning

Where are we going with this What will the future firm look like What will its stakeholders (not necessarily shareholders) expect

The two facets that will impact upon the future will undoubtedly be generational attitudes and technology Though advancements in processing power will mean huge growth of AI systems over the next decade I think generational attitudes is the facet thatrsquos most interesting right now

Generation X lawyers (born between the early 1960s to mid-1970s) are often already partners This generation and the baby boomers before them are usually motivated by achievement and money Generation Y lawyers on the other hand (born in the 1980s or 1990s) are looking for something else Fearing that I sound like a textbook ndash specifically Frederick Herzbergrsquos theory of motivation hygiene ndash itrsquos not money thatrsquoll be the key factor in recruiting millennials but other drivers such as networks recognition quality of work and conditions

Developing reward and recognition strategies is

difficult enough for partners ndash so how does a law firm tackle its entire workforce A few years ago I held a discussion with a law firm partner and a question put to me was could the lsquoJohn Lewis modelrsquo fit a law firm This term is not only synonymous with the department store it has become a household phrase

Quite a few law firms have for some time now introduced a corporate partner ndash a limited company ndash as a partner within its practice with the intention of dealing with distribution of profits more efficiently or as part of a bonus pool So itrsquos quite interesting to hear that a highly regarded firm in the south west Stephens Scown has developed a similar model to the John Lewis theme

Whatrsquos different about this example is that a proportion of the firm is owned by a trust for its employees and not just its partners This gives the employees of the firm a greater sense of belonging and the added impetus to do well I am certain that some critics would question the mechanics of such a scheme and perhaps the barriers to entry such as defined profit levels but setting this aside it is a means of boosting staff engagement and eradicating the lsquothem and usrsquo mentality

With complications in all corners of law firm ownership new models will have to be explored to cover aspirations of all involved There could come a time when a crowdfunding option is explored generally and maybe the household name for staff stakeholder mechanisms in law firms will be the Stephens Scown model LPM

LEGAL PRACTICE MANAGEMENT14

SEPTEMBER 2016COLUMNS

In the April issue of LPM Stepien Lakersquos practice director Richard Hill brilliantly spelled out what to look for when trying to spot a lsquowhalersquo or big lsquophishrsquo ndash a situation where an

individual or firm is targeted researched and then duped into sending money to a cyber attacker

But just as awareness is essential so too is preparedness I thought it might be helpful to share some of the practical considerations that will help keep client funds safe (a requirement of principle 10 in the SRA handbook) including some things wersquove done in our firm in response to these very real threats

Perhaps the most feared event among all law firms is the very well-publicised lsquointercepted emailrsquo (dubbed the lsquoFriday fraudrsquo) But would we be surprised by just how many firms lawyers and clients freely provide bank details within the body of text in an email

This is an area where we recently tightened our procedures and introduced an explicit rule all bank details provided by a client especially in any email communication must be verified by a lawyer (by reconfirming those details with a person they know) The lawyer then signs to say that they have checked them

This has produced some unexpected benefits particularly for one client who provided bank details to us within the body of an email for remitting the proceeds of sale for his family business of pound32m When the lawyer contacted him to verify that the bank details were correct the client realised that he had transposed two numbers

Clearly this is a serious education piece not only for those responsible for finance and the lawyers within the firm but externally for the firmrsquos clients

There are a number of practical points to bear in mind when it comes to day-to-day security matters how do your lawyers communicate the client account details to its clients and do you always attempt to obtain client details for the remittance of funds at the start of the transaction for instance

Additional considerations might be when did you last review any bank payment elements in your email disclaimers terms of business and client care letters Is your payment procedure well-defined and documented (not just the finance element but also those relevant to clients and lawyers) And do you use any law firm identification checklists

These important issues should remain on the agenda so that theyrsquore constantly in colleaguesrsquo minds with regard to maintaining safe and efficient practices

There are some excellent resources available from your bank that can help to educate your colleagues and there are so many simple steps we can all take to make people aware of the problem Have you tried sending a few test phishing emails to individuals within the firm for

GLYN MORRIS FINANCE DIRECTOR

ABOUTexample to see how they respond

But what then If you are confronted with the metaphorical warning cry of lsquothar she blowsrsquo how will you and your people react You may need to have created a well-communicated process for dealing with a phishing incident

The 1851 classic Moby Dick tells the story of one manrsquos obsessive quest for revenge on a giant white whale ndash we might want to take just a hint of Ahabrsquos obsession in our approach to tackling the issue of cyber attacks Although if we can avoid the whale in the first place all the better LPM

THAR SHE BLOWS

Glyn MorrisFinance director Higgs amp Sonswwwhiggsandsonscouk

0800 328 0272 | wwwarchivestoragenet

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LEGAL PRACTICE MANAGEMENT16

SEPTEMBER 2016COLUMNSSPONSORED EDITORIAL

DOUG HARGROVE THE TECHNOLOGIST

DISRUPTION TO GO

ABOUT Change isnrsquot anything new itrsquos just another word for evolution But lsquodisruptionrsquo is certainly one of the words of the decade and one that is

usually connected to revolution ndash a significant alteration to the status quo and one that has far more immediate impacts

Disruption is also the go-to word for business commentators ndash especially when it comes to lsquodisruptive techrsquo ndash talking about new business start-ups or innovations Take the very latest craze to hit the headlines ndash Pokeacutemon Go has seemingly gripped the world these last few weeks with stock valuations heading skyward and comments about the app lsquodisruptingrsquo mobile gaming But therersquos nothing disruptive about the game it takes and utilises technology thatrsquos been around for nearly a decade (geolocation and augmented reality) and applies it in a new way Itrsquos that application of technology thatrsquos causing the disruption

Businesses like Uber and Netflix have built compelling business models on the groundwork of technology that is now pervasive (the smartphone and broadband internet respectively) Therersquos a lot here that firms can learn from itrsquos not necessarily about inventing new technology but about finding ways to use existing technology to create a new approach

So what opportunities are there for law firms to disrupt This can be looked at in two ways ndash disruption to the existing law firm business model and disruption to the user experience The first scenario has already been covered at length and is nothing new for the legal market there are already plenty of law firms out there

looking to change the way a law firm delivers its services to its clients and prospects ndash from franchise models to virtualised law firms Disruption to the law firm business model has been an ongoing force ever since the term ABS became associated with legal practices

The second scenario is a different matter It seems legal clients have been patiently waiting for the lsquodisruptive service deliveryrsquo model to come and there is plenty of opportunity out there for firms to position themselves differently with the modern consumer of legal services

Take a brief example of where old (or rather existing) technology can be used to differentiate ndash videoconferencing Itrsquos a fairly ubiquitous piece of technology thanks to the rise of Skype Facetime and the webcam which gives an instant user experience and a one-to-one connection that bridges the remoteness of a phone call and the need to travel for a meeting It doesnrsquot take much of a leap to imagine a service that allows consumers to access a lawyer instantly using this technology (maybe even a concept that combines the franchise model with an Uber-style app ndash connecting clients to the next available expert from a selection of associated law firms) The point is you donrsquot have to invent something new to be a disrupter ndash donrsquot be afraid to take existing technology and repurpose it to gain a competitive advantage

There are plenty of consumers of legal services who are willing to try out a new service or offering in the search for that great new experience ndash and for those law firms prepared to take the risk and disrupt there really is an opportunity to catch lsquoem all LPM

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LEGAL PRACTICE MANAGEMENT18

SEPTEMBER 2016COLUMNS

JANINE PARKER THE BROKER

WHAT PRICE EXCLUSIVITY

Itrsquos that wonderful time of year when the annual bombardment of brokers begins on your never-silent telephones All of them can ldquocarry out a full market exerciserdquo for you that will of course save you money

But whatrsquos the reality The marketplace is still murky and as a profession we donrsquot help ourselves by keeping it opaque So letrsquos objectively consider many of the claims brokers make attempt to clarify the true mechanics behind the market and consider how to best utilise it for the benefit of your firm

Since 2000 and the demise of the Solicitors Indemnity Fund competition for solicitors professional indemnity has increased This hasnrsquot always been generated through the number of insurers but the ever-increasing number of brokers who purport to be experts in this very niche area of insurance This has increased pressure on insurers to lower prices (a good thing for clients up to a certain point) but this pressure combined with some extreme economic factors has contributed to many insurers withdrawing from the market over the past decade

Competition is good for consumers and it encourages innovation to make sure that brokers and insurers can differentiate themselves by developing their product offering

Some brokers organise lsquoexclusiversquo arrangements with insurers often segmented by the number of partners within the firm ndash which is a very artificial way of dividing up the profession But this is the marketplace wersquore in today and itrsquos worth looking a little closer at these lsquoexclusivesrsquo

All the direct access points are listed in the Law Society buyer guide and in practice itrsquos only a handful of brokers who actually hold the exclusive with direct access to the underwriters It is essential to note that these exclusive agreements are not always lsquotiedrsquo arrangements The broker is not bound to place all their business with their one exclusive insurer and itrsquos often the case that those brokers who hold the exclusive arrangement also enjoy strong relationships with the open market insurers

To increase distribution brokers who hold exclusive arrangements will offer access to other brokers who wish to take advantage of the exclusive products available These brokers donrsquot have their own facilities There are many commercial reasons for opening an exclusive to other brokers but itrsquos important to note that the extra broker in the chain will dilute your relationship with the placing broker and ultimately your insurer Marketing materials can often be unclear as access to exclusives is readily used ndash but in reality these brokers will be approaching another broker to do this

Often law firms will be unaware of the number of brokers in the chain and will unwittingly be paying additional brokerage and fees unnecessarily Direct access allows for better communication between your firm and insurers which can often lead to more competitive pricing Removing a broker from the chain can lead to the process of claims handling being more efficient and effective as there are less obstacles in the chain of communication

In summary no one broker has direct access to every insurer and it is possible to approach more than one broker and not be at risk of flooding the market If using more than one broker be clear who you would like them to approach and be aware whether they have to go through another broker to ultimately reach the insurer LPM

ABOUT

SPONSORED EDITORIAL

ParagonBetter broking for legalContact Janine on 020 7280 8200wwwparagonbrokerscom

LPMLEGAL PRACTICE MANAGEMENT

SUPPLEMENT SEPTEMBER 2016

BUSINESS INFORMATION FOR EVERYONE IN PRACTICE MANAGEMENT

LPM INSIGHTS

Sponsored by

How do SME law firm management leaders see the future

LEGAL PRACTICE MANAGEMENT20

SEPTEMBER 2016LPM INSIGHTS

ALL CHANGE

22WHATrsquoS NEXT We analyse the 2016 LPM conference polling data

2 1 COMMENT Accesspointrsquos Richard Roebuck on legalrsquos increasing digital dangers

Change and transformation are words that strike fear into the most hardened of legal management hearts because they are hard to do and even

harder to make stick But change must happen inside todayrsquos SME law firms to make sure they stay in business in tomorrowrsquos world

At this yearrsquos Legal Practice Management conference in London we polled our audience of law firm management delegates on a range of topics Some questions wersquove been asking since our first LPM conference back in the misty era of 2012 Much has changed in the world since then (new UK governments drones are now lsquoa thingrsquo Donald Trump) but legal not so much The rise of the ABS has been slow (though impactful) and the recession has for many businesses faded into a distant memory compared to the Brexit debate

But SME law firms rightly smell a real need for change in the wind ndash and perhaps though they seem to find it hard to name that change the clues are legion Letrsquos find some

LPM London 2016 delegates named the greatest hurdles to their firmsrsquo growth or further success as lsquoacquiring high-quality staffrsquo and the lsquoinability to create change within the firmrsquo Might the solution to one lie in the other Great talent wants to flock to fresh and vigorous businesses and younger legal eagles are increasingly shy of throwing their lots in with the fusty world of partnership Law firm leaders must look at how their businesses are run and who runs them and how people work if they are to attract great people ndash and in doing so they will create the change they seek

Herersquos another 52 of delegates named lsquoclient pressures on costrsquo the factor thatrsquos having the biggest impact on the SME legal market ndash but when asked how important price is when winning business 67 said itrsquos just lsquoone of a range of important factorsrsquo while 21 said itrsquos lsquonot as important as other things such as relationshipsrsquo This is a disparity I canrsquot quite understand but it doesnrsquot sound like the SME legal market truly gets the shift thatrsquos happening on the client side and how much change needs to happen inside firms to meet this challenge

Read on and come to your own conclusions but I think the clues are now becoming obvious I hope your firm sees them too LPM

Rupert Collins-White editor-in-chiefLPMmag | rupertwlsncouk

You donrsquot as the song goes need to be a weatherman to know which way the wind is blowing in the legal market ndash but just because the clues are there doesnrsquot mean you can be complacent about acting on them

CONTENTS

FEATURES

LEGAL PRACTICE MANAGEMENT21

SEPTEMBER 2016LPM INSIGHTS

MORE TECHMORE SECURITY

INTRODUCTION TO THE RESEARCH FROM OUR SPONSOR RICHARD ROEBUCK MANAGING DIRECTOR ACCESSPOINT

After a recent period of uncertainty it would now seem that most firms are confident about their future especially in light of Brexit Whatrsquos also certain is

that most firms are very conscious that to compete they will need to change and adapt themselves for the challenges ahead

With growing concerns about the lack of high-quality people available and what appears to be a reliance on quality individuals driving more lucrative fee-earning work is it time for a gear change

Perhaps the dawn of high-volume low-margin fixed fee work which many firms feared has now arrived As always with change there are challenges to be faced but for those clever early adopters there lies opportunity Making light of the more process-driven tasks and finding more effective efficient ways of completion to deliver client-facing benefits seems key to the wider future of the fixed fee legal landscape

With the growing acceptance of cloud technology and the increasing introduction of new software applications and solutions the legal world has moved on at an improved pace this past couple of years And the world is now clearly keen for more ndash to satisfy its desire for a more accessible and mobile working environment What is key for this trend is that the lsquoquality of the deliverablersquo has an ongoing programme of improvement that benefits both the firm and its clients

As progress pulls us forward there will always be elements arrayed against us Alongside the opportunities hiding in the polling from LPM this year therersquos also a sense of fear and concern around possibly the biggest threat to risk and security there is right now ndash the dark byproduct of technological success cybercrime

Cybercrime is fast growing with ever more complex attacks making headlines It is now one of the most common criminal offences in the UK An increasing number of individuals are exploiting the speed and anonymity of the internet to commit a wide range of criminal activities having no conscience and knowing no borders

It isnrsquot our fault websites get hacked but poor internet safety habits can put us at risk Reusing passwords or using weak passwords make us easy targets for identity theft Remembering multiple passwords can be a pain but there are web services and associated applications that can help such as two factor authentication quality mail management systems URL threat protection and mail encryption

For many firms the biggest threats tend to be by way of the ever-open door into our networks and devices ndash email

Our eagerness to respond almost instantly to emails throughout what will be for most an already pressured day is perhaps the dominant daily activity to foster an unwanted lapse in security In the past 18 months alone I have seen three firms that were truly caught out ndash some with the potential for significant financial penalty by opening email attachments The most common lsquogotcharsquo is an email that appears to have come from the office scanning platform whereby the email address has been cleverly spoofed to appear legitimate (for example downstairscopiermyfirmdomaincouk) There are so many existing and newly circulating threats of this calibre and type that even the most aggressive of filtering systems struggle to keep up

Do you know the name(s) of your copiers and the associated email addresses Do you stop to think before opening the innocuous Word attachment ldquoDoesnrsquot our scanner usually send PDF files Why has a covering note not been included with the attachmentrdquo Stop think and call for advice

Another infamous scam is the spoofing of email addresses of key people within your firm ndash for example an email to the head of accounts appears to be from the senior partner ldquoPlease send pound17000 to account X at your earliest convenience and confirm once processedrdquo it says Stop ndash is this your agreed process

As the demand grows and we extend our reach out into the online world so cybercrime advances ever closer seeking unauthorised access through our front door Quite clearly online is the future but we need to embrace it with the necessary skill sets and processes in place for our convenience wellbeing and prosperity LPM

There are so many existing and newly circulating threats of this calibre and type that even the most aggressive of filtering systems struggle to keep up

Accesspoint are independent legal IT specialists who consult on a variety of information technology-related issues offering the best in IT solutions to help firms work more effectively

Contact Richard and the team on 0203 189 2645wwwtheaccesspointcouk

LEGAL PRACTICE MANAGEMENT22

SEPTEMBER 2016LPM INSIGHTS

SME law firms are in a battle for survival Whether they know it or not they have huge challenges to face in the next few years ndash around succession planning technology replacing lawyers and being

used by competitors to attain a competitive edge and catering to clients who increasingly want cost predictability transparency and availability

These market pressures were addressed at the LPM conference in May 2016 which was attended by over 100 delegates all SME legal management leaders The delegates were polled on the day about what they thought of the pressures facing them and how theyrsquore planning to overcome them ndash and their answers provide valuable insight into the SME legal market

The polling results show that LPM conference delegates were aware of the severity of the challenges they face Three-quarters of legal management leaders we polled at the 2016 LPM conference thought that the challenges theyrsquoll face in the next five to 10 years will be lsquomorersquo or lsquomuch morersquo serious than in past years And 58 of delegates thought that the challenges in the next year to two years will be lsquomore serious than in past yearsrsquo

How they will face these challenges depends at least partly on attitude ndash whether they believe they can win or will eventually lose the war Fortunately most LPM conference delegates were optimistic about their firmsrsquo futures - 81 were either lsquocautiouslyrsquo or lsquoveryrsquo optimistic about their place in the legal market of the future

This doesnrsquot necessarily suggest that theyrsquore confident in the market overall particularly after the market instability brought by Brexit Legal management leaders might believe their firm is the only one thatrsquoll survive due to expertise in a particular area or niche In any case it indicates market confidence and a confidence in the ability of their firm to compete and succeed

But is this optimism misplaced in a market where the future is increasingly uncertain and competitive Are firms really ready for change on a huge scale as their confidence might suggest What are the issues currently keeping SME legal leaders awake at night

In this report LPM shines a light on the SME legal market through the eyes of our legal management leader audience ndash those driving their firms through an uncertain new world

WHATrsquoS NEXTChange is on the agenda for LPM firms but how to address the biggest challenges and which ones to face first is a tough call finds Patrick Wingrove

More serious than in past yearsMuch more serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch less serious than in past years

51

14

8

3

24

More serious than in past yearsMuch more serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch less serious than in past years

How would you rate the challenges your firm faces in the next five to 10 years

More serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch more serious than in past yearsMuch less serious than in past years

58

17

6

0

19

More serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch more serious than in past yearsMuch less serious than in past years

How would you rate the challenges your firm faces in the next year to two years

What is the greatest hurdle to your firmrsquos growth or further success

What is the greatest hurdle to your firmrsquos growth or further success

LEGAL PRACTICE MANAGEMENT23

SEPTEMBER 2016LPM INSIGHTS

TIMES THEY ARE A CHANGINrsquo The overriding theme of the 2016 LPM conference was change ndash how firms can implement it the drivers behind it and the various blockers to it But the first step to change is gauging which factors will have the biggest impact on the legal market Just over half of legal management leaders we polled thought client pressures on cost like demanding fixed fees will have the biggest impact while just over a quarter thought it will be competitors attaining a market advantage using technology

How quickly do firms need to respond to these oncoming market pressures Well 86 of LPM conference delegates thought that change needs to happen in their firms within the next two to five years But 14 said that their firm doesnrsquot need to change significantly perhaps because theyrsquove beaten the rest to the punch their legal business is somehow immune to new pressures ndash or they have their heads in the sand

Legal has traditionally been resistant to change and itrsquos not surprising that some firms still are says Sean Stuttaford COO at Essex firm Thompson Smith and Puxon (TSP) and 2016 LPM conference delegate ldquoThere are still firms out there where partners donrsquot have computers on their desks ndash theyrsquore stuck in their ways and just point blank refuse to

52 26 5 12 5

develop their business for the futurerdquoBut legal management leaders willing to implement

change may still find it difficult as 60 of LPM conference delegates polled thought that lsquochange isnrsquot really understood at their firmrsquo

GROWING PAINSJust over a quarter of LPM conference delegates also thought that an inability to create change within their firm would be the greatest hurdle to the businessrsquos growth or further success ndash though Stuttaford at TSP suggests voters might have blamed the traditional partnership business model for the same reason

But acquiring high-quality staff was considered to be the greatest hurdle for growth or success by 36 of delegates Rebecca Patterson HR manager at Kent firm Thackray Williams and 2016 LPM conference delegate says that she agrees with this result ldquoOur firm has a particularly tough time finding quality support staff ndash we could perhaps stand to invest more in competency frameworks and performance management and training opportunities to aid recruitment and retentionrdquo

William Robins operations director at lsquodistributedrsquo firm Keystone Law and a 2016 LPM conference speaker says

12 36 27 13 12

Lack of fundsAcquiring high-quality staffInability to create change within the firmTechnologyThe traditional partnership business model

Out of these which factor is having the biggest impact on the SME legal market

Client pressures on cost (eg fixed fees)Technology creating advantage for competitorsConsolidationDifficulty in finding routes to growth (eg funding)Something else

What is the greatest hurdle to your firmrsquos growth or further success

LEGAL PRACTICE MANAGEMENT24

SEPTEMBER 2016LPM INSIGHTS

offering a more flexible remote or mobile working set-up for everyone in a firm is an excellent way to attract talent (Keystonersquos model of course is founded on remote working) Perhaps the majority of legal management leaders polled at the 2016 LPM conference agree since their firms have either adopted a flexible remote or mobile working set-up are planning to adopt one or are considering adopting one ndash though there are other advantages to remote working such as reducing overheads In any case the results indicate that the SME legal working landscape is becoming considerably more flexible

But remote working doesnrsquot work for everyone Mary Mocklow CEO at West Midlands firm Talbots Law and 2016 LPM conference delegate says that their high-street set-up wouldnrsquot allow it ldquoThe majority of our staff are client-facing and need to be present at the office ndash and while there are other staff at Talbots that might benefit from remote working you canrsquot have a policy for one and not for allrdquo

CYBER THREATSTechnology was clearly a significant concern for legal management leaders who attended the 2016 LPM conference Patterson at Thackray Williams says some firms have had a hard time finding software that caters to their needs as a business and an LPM conference poll seems to back this up just under half of legal management leaders polled at the conference thought project teams should write law firm software indicating a desire for cross-department input into its creation But the poll also indicates that legal software providers have to a large extent been meeting their clientsrsquo needs

The rising threat of cybercrime was also a clear concern for LPM conference delegates ndash 92 of SME legal management leaders said their firms have cyber risk on their management meeting agendas Stuttaford at TSP says ldquoItrsquos something firms need to be constantly aware of and take precautions against not just by purchasing good firewall and antivirus software but by educating staff about password discipline authentication processes and suchrdquo

32 18 14 33 3

Is cyber risk on your management meeting agenda

92

5 3

Yes No Dont know

Is your firm moving to a more flexible workingremote or mobile working set-up for everyone in it

YesNoConsidering itWe already do itDont know

LEGAL PRACTICE MANAGEMENT25

SEPTEMBER 2016LPM INSIGHTS

PRESSURES AND PRICINGClient pressures on cost was also a major concern for legal management leaders polled at the conference so it may not be surprising that just over half of them said 50 or more of their firmrsquos work is some form of fixed fee This doesnrsquot necessarily suggest that the other half arenrsquot open to the concept of fixed fee ndash Mocklow at Talbots points out that fixed fees work for certain types of work ldquoHigh-street firms like Talbots can benefit greatly from fixed fees which is why 75 of our work is fixed fee but itrsquos more difficult to apply to firms that specialise in something like admiralty lawrdquo

The industry seems to think that the value of service has been lost to the price obsession in some areas but not in others ndash and while pricing is clearly a vital issue for SME firms 88 of legal management leaders polled at the LPM conference thought that itrsquos lsquoone of a range of important factorsrsquo or lsquonot as important as other thingsrsquo Patterson at Thackray Williams says that maintaining a good relationship with clients is often more important than pricing though pricing can be a means to achieving client satisfaction ldquoIt also depends on the client ndash in something like conveyancing first-time buyers might be looking for fixed fees or the cheapest price but for commercial clients that may not be as important as reputation or relationshiprdquo

TREASURE MAPPINGLegal process mapping often used by lsquobig lawrsquo and making inroads into SME legal could potentially make SME firms a great deal more efficient and therefore more competitive Two-thirds of legal management leaders polled had heard of process mapping and 79 thought that it is relevant to the business of law Stuttaford at TSP says he agrees ldquoFirms should look at their processes learn from them and figure out how to improve those processes ndash this question really made us look at what TSP has done so far in terms of what legal processes wersquove mapped and whenrdquo

To sum up LPM conference delegates were aware of the challenges that face them but were mostly optimistic nonetheless This may be because they know they need to change and in spite of the fact that change isnrsquot really understood at their firms are planning to mend their ways to meet future market pressures ndash generally putting the client first while keeping talent and technology high on their agendas LPM

Are aware of this thing called legal process mapping

66

34

Has the value of service been lost to the price obsession

23

23

54

Yes No Depends on the service Dont know

Yes No

How important is price in winning business

8

4

67

21

CriticalMore important than almost all factorsIts one of a range of important factorsNot as important as other things such as relationshipsIts one of the less important things in reality

What is the greatest hurdle to your firmrsquos Are aware of this thing called legal process mapping

LEGAL PRACTICE MANAGEMENT27

SEPTEMBER 2016COLUMNSSPONSORED EDITORIAL

Welcome back LPM readers ndash the new school term has started summer is (pretty much) over and the UK is back in full throttle after the summer break And what a break itrsquos been at

File Queen HQ (wersquove taken the time to get our clients up and running with augustprojects as well as started our new Instagram feed filequeenadds)

With the start of the new learning year wersquore focused on the education of you lovely LPM readers ndash with our attention turning back to the General Data Protection Regulation You may remember that in our last LPM article we ran through the 12 steps to tackle the GDPR helped by the awesome people at the Information Commissionerrsquos Office ndash wersquove provided a link to their 12-step resource via our website wwwarchivestoragenetnewsgdpr

Over the next three columns wersquoll be taking these steps and breaking them down for you ndash starting with step one awareness The File Queen (myself) and the team at ADDS have been promoting this step as the most important for all legal practices

ldquoWhyrdquo we hear you holler Well this step is the all-important life raft that unites your practice and team members to help you in the GDPR fight for survival (dramatic I know)

Getting the team on board ndash this buy-in needs to include all ranks of staff ndash from the managing partners to your suppliers But how do you do this Well here are some File Queen tips for when we at ADDS are rolling out projects

Lunch and learn ndash with a register People love to eat and be social so get your legal business to book in a couple of lunch and learn sessions Donrsquot limit this to one date ndash you must run at least two or three so people have the option of which dates to attend Make sure you make a register for those that actually turn up (we all know a calendar acceptance doesnrsquot mean theyrsquoll actually appear) This will allow you to chase down the members of the team you need to get on board for the next one

Have some decent sandwiches nibbles and soft drinks and give the team an overview of the GDPR Run through the 12 steps and make sure you educate them on why everything is so important (make sure you mention the increased fines and audits) During this time let the team know that there are several steps along the way that yoursquoll need their help and support for and which you wonrsquot be able to achieve on your own Tell them that the businessrsquos reputation and brand is on the line and that you need everyone on board to lend a helping hand and spread the word

Another great File Queen tip at this stage is also to get some additional funding from the practice manager for a wine and quiz night at the end of the lunch and learn periods This can be part of your social gathering on a Friday straight after work ndash with some more nibbles and wine Assign people to teams and have a GDPR quiz The winning team gets an award and everyone has fun and learns at the same time Follow our twitter feed as wersquoll be tweeting some great questions to ask thefilequeen GDPRQUIZ

We know itrsquos a lot to organise but there are only four months left in 2016 and GDPR practices must be in place by 25 May 2018 And believe me when you have to roll out rather hard core legislation you have to make it fun and interactive to get people on board LPM

ABOUT

NATASHA RAWLEY THE FILE QUEEN

EDUCATING YOUR PROS

ADDSSaving firms from paper hellContact Natasha on0800 328 0272wwwarchivestoragenet

LEGAL PRACTICE MANAGEMENT28

SEPTEMBER 2016FEATURES

28

Patrick Wingrove talks to the founders of Proelium Law about their work providing legal advice in high-risk environments and conflict zones and the challenges of setting up shop in a new and risky area of law

Legal commandosProelium

Compared to the day-to-day lives of Proelium Law founders and partners Richard Stephens (above left) and Adrian Powell (centre) the average lawyer leads a pretty humdrum life Though UK-based the

firm has a strong international focus ndash Stephens and Powell regularly travel to provide legal and business advice to companies and individuals in high-risk professions or working in hazardous environments across the globe including conflict zones in Iraq Syria and Afghanistan Powell says that itrsquos a challenging but exciting area of law to be in and that ldquono two days are ever the samerdquo

The firm was established as an ABS in November 2015 allowing Powell and Stephens to operate as partners although Stephens isnrsquot a lawyer Powell qualified as a solicitor in 2004 after spending 11 years of his career in the British army and post-2006 worked on various high-risk projects around the world ndash giving him the inspiration for Proelium He says ldquoThe idea came to me in Baghdad in 2009 while working for a private security company as a legal adviser ndash I thought lsquoWhy isnrsquot there a firm doing thisrsquo But I soon realised that I needed someone on the ground who wasnrsquot a lawyer to help make it happenrdquo

That person was Stephens He previously served in the Royal Marines worked as a Whitehall-based strategic planner for the UK government and commanded a special operations regiment (which is why we couldnrsquot show you his face but itrsquos a nice issue of LPM) He now works primarily on the business development side of Proelium ldquoJoining Adrian who Irsquod previously worked with on projects around the

LAW FIRM PROFILE

LEGAL PRACTICE MANAGEMENT29

SEPTEMBER 2016FEATURES

world at a firm meant I could do fascinating and important work with the credibility that being a partner in a regulated business providesrdquo he says

Their work has certainly been interesting Proelium has cast its net far within the niche high-risk sector ndash advising UK-based service providers on the complexities of working in hostile environments conducting business and human rights due diligence and ensuring anti-money laundering counter terrorist-financing and anti-bribery compliance for companies intending to run in high-risk areas or conflict zones to name a few Recently theyrsquove also been working on developing capability for national intelligence organisations overseas ndash but for fear of being jailed for treason Stephens and Powell didnrsquot elaborate hellip

Powell says that the challenges companies face in these areas are numerous ldquoTherersquos a real technical knowledge in understanding how organisations physically work overseas These companies are good at what they do but that doesnrsquot necessarily translate into being business-savvy when it comes to operating in frontier markets ndash thatrsquos where Proelium adds valuerdquo For example after a client was recently exposed on an arms deal they were able to quickly discern liability and ensure that all necessary agencies and departments were appropriately informed

Powell and Stephens joke about how theyrsquore the number-one firm in their sector ndash admitting that to their knowledge theyrsquore the only firm that specialises in this area of law They added that itrsquos an untapped niche in which Proelium will be a pioneering force but which has also recently come onto the radar of a larger firm Theyrsquore alluding of course to Proeliumrsquos recent venture with Harrison Clark Rickerbys ndash a joining that combines Proeliumrsquos experience working in high-risk jurisdictions with the manpower and existing defence and security expertise of

HCR Powell says ldquoWhat they donrsquot have is our connections and our experience They like the idea of the sector because they see it as an interesting area and the partnership will allow us to offer a wealth of different legal services while letting us focus on what we do bestrdquo

As part of their ambitions for Proelium Powell and Stephens are keen to train a new generation of lawyers whorsquoll specialise in the high-risk sector ldquoWe have confidence in what the younger generation has to offer and we want them in our industry to continue our work in this relatively untapped areardquo says Powell Stephens adds that itrsquos also a matter of succession planning ldquoWe want the firm to operate long into the future but we donrsquot necessarily want to be running it ourselves for the next 20 yearsrdquo Proelium currently employs two interns as part of this commitment including University of Surrey law student Ruby Jamieson (pictured) She says ldquoWorking [at Proelium] has given me loads of insight already ndash itrsquos very niche

very new and Irsquove really enjoyed helping develop the business I feel that itrsquoll open a lot of doors when I graduaterdquo

In terms of expansion Proelium has recently opened a new office in the City of London Powell says that his home was originally the firmrsquos practising address but a large portion of their client-base is in London ldquoand we couldnrsquot keep having our meetings in coffee shopsrdquo

But Powell and Stephens are firm believers in the concept of remote working which works particularly well for their business

ldquoMost of our clients are either in London or outside the EU so Irsquom always away but all my phone calls are redirected from the new office to my mobile so I can keep in touch with clients whether Irsquom in Dubai or Baghdadrdquo says Stephens Powell adds that he feels remote working has the added benefit of keeping staff happy by letting them work from home which he says certainly makes him more productive as a fee earner

Proelium isnrsquot looking to expand into areas it has no interest in like family law but theyrsquore taking a keen interest in the emerging area of cyber law and are considering taking steps into that world ldquoLike high-risk law no onersquos really wrapped their arms around cyber law yet Therersquos cyber law in the US but it doesnrsquot exist per se in the UK except in terms of data protectionrdquo

When asked what advice they could give to SME firms based on their unique experiences in their sector Powell and Stephens said firms should know the areas of law they practise inside and out Powell says ldquoWersquore concerned with being experts in our field ndash a lot of our clients have peoplersquos lives in their hands and are not in the business of nonsense which is why they come to us We give sound researched legal advice based on experience and if we donrsquot know something we send the client to someone who doesrdquo LPM

ldquoCompanies are good at what they do but that doesnrsquot necessarily translate into being business-savvy when it comes to operating in frontier markets ndash thatrsquos where Proelium adds valuerdquo

Proelium

Two fee earners four total staff

Offices City of London Wirral Cheltenham

Specialisms International criminal commercial and conflict law due diligence sensitive investigations

LPM FACT FILE

ldquod2u is the UKrsquos number one outsourced transcription service for medical and legal professionals and highly competitive all over the world We pride ourselves on saving our clients time and money as well as offering state-of-the-art security and a first-rate servicerdquo Daryl Leigh CEO dictate2us

LPM magazine has agreed a special deal for its readers with dictate2us ndash 5 off your monthly

transcription bill for one year if you sign up through the dedicated LPM link or call and quote LPM2016 when signing up You can trial the service for free before committing

CUT COSTS INCREASE EFFICIENCYAll firms could benefit from outsourcing transcription to dictate2us ndash but even more so with our LPM deal 5 off your first year

wwwdictate2uscomlpm

Use d2u and enjoy the benefits ofbull Fast turnaround timesbull Secure and confidential servicebull Secetarial cost reductions of up to 60bull Guaranteed 985 minimum accuracybull iPhone Android and Blackberry apps with one-hour turnaroundbull 100 output - only pay for the time you talkbull Free no obligation trial

This special LPM magazine reader deal only relates to customers that execute an agreement for a minimum term of 12 months with a minimum monthly commitment of 500 minutes LPM magazine sought two law firm references for dictate2us to verify its claims for quality and delivery The 5 deal only applies to the first paying year the customer is with dictate2us LPM magazine is not responsible or liable in any way for work done by dictate2us and is an advertising referrer only

d u2 dic t a t e 2 u s

SPECIAL READER OFFER

The d2u Transcriber app is free to download from Apple and Android app stores and BlackBerry App World

OFFER 5 OFF

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WHEN CALLING

LPMLEGAL PRACTICE MANAGEMENT

LPMLEGAL PRACTICE MANAGEMENT

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LEGAL PRACTICE MANAGEMENT31

SEPTEMBER 2016FEATURES

Patrick Wingrove speaks to management leaders from SME and top 100 law firms that have recently achieved significant growth to find out how to go from acorn to oak tree

FROM MINNOW TO

For many SME firms growth is the goal ndash but it doesnrsquot have to happen in the ways that many have scaled in the past The era of organic slow quiet steady partnership development over decades is

increasingly at odds with a fast-paced digital world Strategies for growth in the legal market are now closer than ever to the rest of the business world ndash and any size firm can learn how to do it

Big or small there are similar tools in the box for making growth happen and similar challenges Lessons abound but some of the best can be taken from those firms not far outside the famous lsquotop 100rsquo legal businesses in the land ndash those that have already grown up and now have the top tier in their sights There are also lessons to draw from smaller but rapidly scaling law firms

There are many growth strategies for organic and acquisitive growth ndash and no easy answer for which is right for your firm To shine a light on the subject wersquove spoken both to SME and top 100 firms about growth and how to do it (and importantly how not to do it)

MAMMOTH

LEGAL PRACTICE MANAGEMENT32

SEPTEMBER 2016FEATURES

MODELS OF GROWTH According to the Lawyer the two fastest growing firms in the top 200 this year are Midlands-based Knights and lsquodistributedrsquo firm Keystone Law ndash currently placed 119 and 122 in the 2015 UK 200 rankings but whose revenue will now put them well inside the 2016 top 100 (due for release October 2016) Both attribute their growth to non-traditional business models ndash and very different non-traditional models at that

Knights corporatised in 2014 to remove the barriers from its decision making processes which CEO David Beech says has been the key to its growth ldquoEquity partnerships donrsquot grow particularly quickly because itrsquos hard to achieve consensus and make decisions that enable fundamental or rapid growth among equity partnersrdquo

Knights acquired Oxford-based Darbys earlier this year ndash a move largely behind the revenue increase that will put them in the top 100 ndash and completed the transition inside three months which Beech says would have been next to impossible under their old business structure ldquoNot only was a quick turnaround good for the books it saved significant time and money that could be invested elsewhere in the businessrdquo he says

Top 100 firm Simpson Millar is one step

ahead of Knights The firm broke the glass ceiling to become a top 100 firm in 2015 and like Knights the firm attributes its growing success to corporatisation ndash but in a different manner

It sought to be and was eventually acquired by PLC Fairpoint Group in 2014 Simpson Millar continues to run as an LLP under the same management team and existing trading brands but as a business unit within Fairpoint

Managing partner Peter Watson says that one of the key reasons to pursue this particular growth strategy was to provide an injection of capital for MampA ldquoWe completed the sizeable acquisition of Colemans last year for example which we were only able to do with considerable investment from Fairpointrdquo

Being part of a PLC has also given the firm access to strong MampA and project management capabilities ldquoAcquiring Colemans doubled the business overnight ndash for something like that you need strong MampA experience and access to that team within Fairpoint was crucial in getting the deal across the linerdquo says Watson Simpson Millar also built a strong digital strategy launched new products and focused on pricing ldquoCall it fixed fees or packaged fees the point of it was to say to consumers

Square One Law

Revenue pound5m

31 fee earners 53 total staff

Offices Newcastle-upon-Tyne

Specialisms Commercial corporate property employment EU and competition law finance litigation private client

LPM FACT FILE

Knights

Revenue pound40m (year end 2017)

375 fee earners 450 total staff

Offices Chester Cheltenham Newcastle-under-Lyme Derby Oxford Hale

Specialisms Full service firm

LPM FACT FILE

LEGAL PRACTICE MANAGEMENT33

SEPTEMBER 2016FEATURES

lsquoWith us you know exactly what yoursquoll get and how much itrsquoll costrsquordquo

PEOPLE PLEASERSThe ability to implement change has also been an important part of delivering a growth strategy This isnrsquot necessarily surprising ndash polling at the 2016 Legal Practice Management conference showed that legal business managers thought it was one of the greatest hurdles to a firmrsquos growth or success only topped by acquiring high-quality staff In Knightsrsquo case the two challenges were addressed together Beech says Knightsrsquo corporate rather than partnership structure also allows it to recruit talented people without having to deal with the inherent politics of an equity partnership

ldquoAcquiring the best talent has been a central part of our growth strategy ndash if a candidate can help the business through expertise or client following we can just recruit themrdquo he added

But a successful growth strategy incorporating talent isnrsquot just about recruiting quickly as we analysed in the July 2016 issue of LPM ndash itrsquos about recruiting well Firms also need to make themselves an attractive prospect for legal talent in order to grow

William Robins operations director at Keystone Law says his firmrsquos lsquodispersedrsquo model allows it to do that by offering new fee earners the chance to work remotely with less supervision ldquoWersquore typically hiring about a lawyer a week ndash bringing their expertise fee-earning capability and client following with them ndash and that is the core part of our growth strategyrdquo The firm has buttressed its recruitment capability by hiring a director of recruitment to focus almost entirely on lawyer enrolment (recruiting talent to recruit talent ndash neat)

Though the distributed model may not be for everyone says Robins implementing some form of flexible mobile or remote working should be part of any firmrsquos growth strategy because it allows firms to increase their fee-earning capability without accruing fixed overheads such as office premises

And there are other ways to be talent-attractive As a core part of its growth strategy Newcastle-based firm Square One Law ndash which achieved 30 growth in the

last financial year ndash has pledged to create a supportive and inspirational team environment offering high-calibre work to attract the best talent Ian Gilthorpe senior partner at Square One says ldquoGood people want to be inspired to be valued for what they do and feel as though theyrsquore making a contribution The key is to engage with all your staff to facilitate a culture where staff feel happy at work work for each other trust each other and ensure that they see the value in what they do ndash if you do that more talent will comerdquo

He added that itrsquos important for

recruitment to convey staff satisfaction to the outside world which Square One has achieved by including staff video-testimonials on its website

But recruiting is only half of an effective people strategy ndash the other is retention Simpson Millar has attempted to create an environment that its talented staff wonrsquot want to leave Says Watson ldquoToo many firms worry about what will happen if their rainmaker goes somewhere else and takes clients with them ndash so they put the shackles on make them feel unhappy and make it so that they canrsquot realise their full potentialrdquo Creating such an environment makes firms an attractive target for lateral hires when they should be building a place people want to join

PRACTICE AREASSME legal businesses donrsquot necessarily need to change their business models completely to achieve the same growth as

Thorntons

Revenue pound20m

209 fee earners 430 total staff

Offices Dundee Edinburgh St Andrews Perth Cupcar Kirkcaldy Anstruther Arbroath Montrose Forfar

Specialisms Full service firm

Keystone

Revenue pound202m

198 fee earners 230 total staff

Offices London Bristol Isle of Man Australia

Specialisms Corporate and commercial dispute resolution property

LPM FACT FILE

LPM FACT FILE

Equity partnerships donrsquot grow particularly quickly because itrsquos hard to achieve consensus and make decisions that enable fundamental or rapid growth among equity partners David Beech CEO Knights

Simpson Millar

Revenue pound316m

322 fee earners 539 total staff

Offices Birmingham Bristol Cardiff Cheadle Hulme Gateshead Kingston-upon-Thames Lancaster Leeds Park Place Leeds St Pauls Street (head office) London Manchester Newcastle

Specialisms Full service firm

LPM FACT FILE

LEGAL PRACTICE MANAGEMENT34

SEPTEMBER 2016FEATURES

our examples but removing blockers from decision-making making themselves more attractive to talent and finding the right funding for growth are increasingly important and the partnership structure may not enable it

But of course that means asking some turkeys to vote in a Yuletide election Fortunately there are other ways to achieve impressive growth mainly investment andor expansion into new geographic or practice areas

Watson says that Simpson Millar wouldnrsquot have been an attractive prospect to Fairpoint had the firm not spent time growing organically by expanding into new areas of law

ldquoWe went from being a predominantly trade union PI firm to having a broad base of 16 types of work ndash with strong heads in charge of each committed to driving growth in their departments ndash which gave us a large boost in revenuerdquo The firm achieved this through small acquisitions of other firms that had expertise in particularly lucrative areas of law

But firms shouldnrsquot just look at expanding in lucrative areas ndash they should focus on areas where their reputations deliver an advantage Scotlandrsquos Thorntons for example ndash which last year leapt from 134 to 108 in the 2015 UK 200 rankings ndash invested in six departments as part of its growth strategy

Thorntons joint managing partner Scott Milne says ldquoWe didnrsquot exclude other areas but we saw that these areas were profitable and that more importantly we had considerable expertise in them ndash we also considered that these are areas that are unlikely to be affected by future economic downturnrdquo This included investing in niche areas of law where the firm has a geographic competitive advantage ldquoWersquore lucky to be surrounded by some of the best farmland in the UK ndash wersquore well known for our expertise in rural business law which is why we invested heavily in itrdquo

ORGANIC V ACQUISITIONIn several ways choosing an effective growth strategy very much boils down to MampA versus organic growth ndash every business model talent or area expansion strategy appears to revolve around one or both But which is the best to achieve the kind of growth thatrsquoll propel firms to a lsquohockey stickrsquo on their revenue forecasts The short answer is it depends on whatrsquos best for a firm at a given time It either

needs to fit the firm ndash or the firm needs to change to fit the goal

Beech says that acquisition has been excellent for Knights because itrsquos a fast and effective form of expansion ndash the acquisition of Darbys more than doubled its revenue But MampA poses a significant challenge to finding firms with the right cultural fit

ldquoFirms need to establish a single culture in order to implement growth ndash everyone needs to be working towards the same goalrdquo He added that when a firm completes a merger or acquisition that firm has to be integrated from day one which is much more difficult if it has a significantly different culture Knights is planning to continue recruiting and complete more acquisitions in the next year to maintain the growth curve

Of course the big problem with acquisition is money Robins at Keystone says his firm lies at the opposite end of this

INFORMATION IS EMPOWERING

Lemington Spa-based firm Wright Hassall has a specific goal of breaking into the top 100 and as part of its growth strategy expanded into areas of the UK where its expertise is highly sought after ndash using customer relationship management in the background to underpin the firmrsquos activities in specific areas Martyn Wells IT director at the firm says ldquoWersquove zoomed in on specific industry sectors that we know are performing well in the Midlands sectors where we have a superb reputationrdquo Expanding geographically as Wells outlines needs data to get right Thorntons for example identified various lsquomicro-marketsrsquo in Scotland close to its base of operations ldquoWe acquired a firm in St Andrews because itrsquos like a micro-economy (or micro-market) that doesnrsquot seem to be affected by price drops in the residential market elsewhererdquo says Thorntons joint managing partner Scott Milne Knights has another take on the geographic targeting idea ndash it intends to stay out of the large cities (London Manchester Leeds for example) and expand into areas where there is little competition As David Beech CEO at Knights explains ldquoLast September we acquired a small team in Chester of about 11 lawyers and now thatrsquos expanded to just over 70 ndash and the main reason wersquove been able to do that is because there isnrsquot a lot of competition thererdquoUltimately this all comes down to research finding out what to invest in or where to expand and perhaps most importantly finding out what clients want

LEGAL PRACTICE MANAGEMENT35

SEPTEMBER 2016FEATURES

spectrum to the way Knights has grown emphasising organic growth finding innovative means to attract talent using technology to drive efficiency and branching out into new areas of law or new markets to achieve significant growth

Square One Law also espouses the organic route ndash believing that firms with growth in mind should focus on ensuring their external brand reflects the businessrsquos internal culture and behaviours of its team creating lsquosynergyrsquo between the business and its clients

Gilthorpe says ldquoMergers ndash and there is no such thing as a true merger ndash and acquisitions can be a distraction as you look to create a new culture and separate the wheat from the chaff and this can soak up a lot of energy that would otherwise be put to use in driving the progression of the business and the focus on client servicerdquo

The best option for some firms may be a

calculated combination of MampA and organic Thorntons for example having made several acquisitions is now focusing on organic growth moving away from geographical expansion and towards developing locations and its brand

Watson at Simpson Millar sums the mixed approach up thus ldquoItrsquos a mixture Acquisition is still very much a part of the mix but in parallel to that itrsquos important to demonstrate that yoursquore developing ongoing work rather than being driven solely by acquisitionrdquo

There are clearly many different ways to achieve healthy and assertive growth though there are no easy answers as to which way is right for your firm But it is clear that growth doesnrsquot have to happen in the ways many have previously achieved it ndash innovation and lateral thinking are the means of achieving significant growth (which might one day propel you into the top 100 you never know) LPM

LEGAL PRACTICE MANAGEMENT36

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

INDUSTRY VIEWS

36LEGAL PRACTICE MANAGEMENT

Legal is becoming an ever more digital industry giving firms the chance to become more efficient flexible agile and collaborative

INDUSTRY VIEWS INDEX

ONLINEOFFICES

36

SPONSORED EDITORIAL

INDUSTRY VIEWS

37 INTERVIEW

Paperless processLinetimersquos Tony Klejnow explains the benefits of using matter management software for law firms and their clients

39 INTERVIEW

Virtual expansionNigel Redwood Nasstarrsquos CEO talks about the advantages of having a managed flexible IT infrastructure

LEGAL PRACTICE MANAGEMENT37

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT37

Competition and price pressures and an increasingly digital client base are all significant drivers for law firms to become paperless

businesses Tony Klejnow Linetimersquos managing director says firms could achieve competitive advantage by introducing paperless solutions across their businesses ndash but a particular lsquoeasy winrsquo area is matter management

ldquoFee earners are required to keep detailed records of their cases but the amount of time and money they waste physically printing filing looking for collaborating on and updating files is alarmingrdquo says Klejnow Law firms have traditionally been reluctant to adopt paperless

workflow solutions he adds because workflow doesnrsquot apply to 99 of fee earnersrsquo work ldquoBut if they adopted paperless solutions in their back office processes they could reduce costs without affecting client service boost productivity and promote collaboration ndash making them more efficient flexible and cost effective and making them more competitive in an ever-changing legal marketrdquo

MATTER MATTERSDocument and matter management tools ndash like those in Linetimersquos legal software product Liberate ndash electronically store and organise all case documentation in an online database Klejnow says that there are two immediate benefits of paperless matter

PAPERLESS PROCESS

Tony Klejnow managing director at Linetime talks to LPM about the benefits of the paperless office ndash starting with filing and back office processes

INDUSTRY VIEWS

Linetime is a specialist provider of Microsoft-based practice and case management solutions Clients include mid-tier law firms and in-house legal departmentswwwlinetimecouk

ABOUT THE SPONSOR

SPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT38

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT 38

management The first is reducing paper and storage costs

ldquoIf case documentation is electronically stored once a case is finished you no longer have a five-inches-thick file that has to be stored for six years ndash which has to reside somewhere and costs firms time space and moneyrdquo The second is eliminating filing time ndash for example instead of printing and filing emails and attachments fee earners drag and drop emails directly from Outlook into the database ldquoand attachments are automatically stripped from emails and appropriately filedrdquo says Klejnow

And Klejnow says paperless filing systems donrsquot just facilitate efficiency this way ndash they also improve general process efficiency by facilitating collaboration between fee earners Solicitors can use document and matter management to view and work on matters at the same time a difficult if not impossible prospect when working with paper files Klejnow says ldquoWithout document management legal professionals work in silos but with it they immediately share datardquo He adds that Liberate has an additional collaboration tool to help further improve collaborative efficiency in firms ldquoIf I choose to lsquocollaboratersquo a document with you on Liberate Outlook will prompt you to review that document by simply acknowledging the notificationrdquo

In this respect moving to become a paperless business provides greater flexibility for fee earners who can collaborate with colleagues working remotely or in different offices Klejnow says ldquoPaper files can only reside in one location but electronic files can be accessed from any office and when working from home or with clientsrdquo On the other side of the coin having digital files maintains a greater level of productivity in a law firm office ldquoIf your colleague is absent from the office you can easily find documents that you might have otherwise wasted a significant portion of your day looking forrdquo he adds

Improved external collaboration is also a benefit that firms can reap from paperless matter management With an electronic system you can go into a case history bundle documents into one PDF file and quickly submit that to the third party improving collaboration between fee earners and clients who want to do everything online This has the added benefit of improving accuracy and facilitating greater efficiency by involving clients in the process ldquoGood matter management software should also let you push e-forms to clients to be filled in and that information is automatically transferred straight to the online database ndash which saves fee earners

time and is a more accurate because the information doesnrsquot have to be constantly re-enteredrdquo says Klejnow

This extra level of collaboration within legal businesses that hasnrsquot been possible until now has long been needed because it improves efficiency and productivity which makes the business more profitable and competitive Klejnow adds that what firms save by adopting matter management they should reinvest in becoming fully paperless digital businesses

ldquoCase management solutions can improve efficiency to an even greater extent and keep firms competitive in the age of the alternative business structuresrdquo

VISIBLE COMPLIANCEIn response to firms reluctant to adopt paperless technologies like document and matter management for fear of losing delicate information to cybercriminals Klejnow says those systems provide an additional level of security ldquoTaking data and attachments out of Outlook and storing them on a database is much more secure than leaving them on your hard drive If you leave

your laptop on a train for example all your important data is safely stored on a server and not instantly accessible by opportunist criminalsrdquo

Document and matter management also offers a greater level of security in fee earner and client communications ldquoIf I want you to check that the data we have for you is accurate Liberate will

direct you to a page holding your data and at the same time it will push out an SMS text with a pin code to your phone Unless you input the code you canrsquot get to the web page ndash which means if one of your solicitors accidentally sends an email to the wrong person or itrsquos intercepted it doesnrsquot matter The data stays safe ndash this level of security is crucial in this age of cybercrimerdquo

These security features clearly have significant benefits for compliance which is important in a market increasingly dictated by regulation including the relatively new General Data Protection Regulation says Klejnow

ldquoCompliance officers need to be seen by regulators to have monitored and reviewed everything thatrsquos happened in their firm which is considerably easier with a paperless system Liberate has lsquoversion controlrsquo which allows compliance officers to keep tabs on every change made to a document as well as a compliance module which lets them view whatrsquos happening on a case (to ensure that money laundering checks have been carried out and so on) and records the fact that yoursquove reviewed thisrdquo LPM

Without document management legal professionals work in silos but with it they immediately share data

INTERVIEW

LEGAL PRACTICE MANAGEMENT39

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LPM readers may already know the Nasstar Group ndash but by a different name Nasstar was launched by regular LPM-contributor e-knownet to consolidate four discrete hosted

managed IT businesses (including e-knownet) after a period of significant acquisition Nigel Redwood chief executive officer at Nasstar says merger and acquisition and consolidating brands is challenging but having a flexible hosted IT infrastructure makes the process significantly easier

ldquoManaged IT services are enormously beneficial for firms that are expanding or consolidating particularly after MampA in terms of time and productivity cost savings and flexibilityrdquo He adds that by just having managed desktops firms can attain competitive advantage by reducing overheads and becoming more flexible and agile

Nasstar has experience helping SME firms with their IT systems after MampA and knows what problems to look out for creating unity among staff used to using different systems and processes the cost and time it takes to expand an IT infrastructure and the geographic distance between new offices

Redwood says that MampA can be an excellent way for legal businesses to expand into new sectors but that consolidating new departments using different IT systems and processes is challenging

ldquoOur acquisitions for example introduced new sector focuses for us in the SME legal market ndash wersquove consolidated these into a wider service base under Nasstar and facilitated unity among staff using virtual IT solutions

rdquoVirtual IT solutions help facilitate unity across the business by providing a level of consistency in an IT infrastructure Everyone immediately uses the same applications on the same versions from wherever theyrsquore working creating unity faster collaboration across teams and effective information sharingrdquo Hosted IT infrastructures are also continually updated giving staff instant access to new updates applications and technologies as they become available

The next significant challenge firms face after MampA is expanding their IT infrastructure to accommodate an influx of new staff ndash but Redwood says virtual IT solutions let firms expand their IT infrastructure at the flick of a switch

ldquoWith virtual IT firms arenrsquot held back by the size of their servers or the amount of computer power theyrsquove got ndash they simply call their IT provider and ask for an upgrade when previously theyrsquod have been

subject to lengthy and costly IT upgradesrdquo Virtual IT solutions are also easy to budget for

Redwood says ldquoYoursquore not going to be surprised by an increased fixed asset expenditure ndash services like those offered by Nasstar are an operational cost and fixed per user per month through a scalable cost modelrdquo

Geographic distance inhibiting collaboration between merged offices is also a key consideration for firms after MampA but virtual IT solutions solve this problem Redwood says a virtual IT infrastructure can minimise travel through the use of hosted virtual meeting rooms and video technology Staff can use this technology from virtually anywhere which is why it also lends itself well to remote flexible or mobile working set-ups

VIRTUAL WORKPLACERemote working is becoming an increasingly present feature of the legal landscape because of its cost saving and recruitment and retention advantages ndash the majority of firms at the LPM conference 2016 were moving towards a flexible remote or mobile working set-up or already had one

Redwood says virtual IT solutions better enable staff who work remotely ldquoHosted managed desktop solutions for example let staff work with the same applications from any device in the world safely and securelyrdquo

But remote working isnrsquot only about enabling the current workforce itrsquos about attracting future talent Redwood says that millennials donrsquot necessarily want to work as their predecessors did ndash they expect greater flexibility in the workplace which at one level can be achieved by remote working facilitated by a managed desktop

ldquoAnd itrsquos not only about attracting millennialsrdquo he says ldquoSME firms with flexible working set-ups are becoming more attractive to experienced legal talent who may be frustrated by the rigidity of their firmrdquo As a firm expands its workforce in this manner firms with virtual IT solutions reap the lsquodoublersquo cost saving benefits of not having to expand their premises or IT infrastructure accordingly

Some firms are resistant to remote working based on hosted IT services believing they arenrsquot secure ndash but Redwood says that argument ldquocan be put to bedrdquo

ldquoFor an in-house IT team to have the level of security that an organisation like ours can deliver is near impossible financially as well as in terms of the

VIRTUALSANITYNigel Redwood CEO at Nasstar talks to LPM about how managed IT can help SME firms achieve competitive advantage by making them more agile and flexible

LEGAL PRACTICE MANAGEMENT40

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

INTERVIEW

level of systems and technologies they deployrdquo Cybercrime is of course a scary and constantly evolving threat but Redwood points out that virtual IT systems have dedicated teams monitoring these threats evolving cyber defences and changing systems accordingly

ldquoThis capability not only makes [firms] a lot more secure but gives peace of mind in terms of compliancerdquo

ONLINE ADVANTAGE Redwood says virtual IT infrastructures donrsquot just pertain to lsquobig lawrsquo but to SME firms as well ndash perhaps more so

ldquoVirtual IT systems are a way for SME firms to stay competitive against their larger

counterparts and ABSs ndash it gives them a greater ability to expand it lets them adopt more flexible and agile models and is easy to budget forrdquo Firms can also expect virtual IT solutions to enable better alignment of IT resources to business needs enhanced usability with anywhere anytime access and in-built business continuity

But the greatest advantage virtual IT offers SME firms over big law is agility Redwood says ldquoBig IT departments in firms can be slow to react cumbersome and held back by the limitations of hardware infrastructure and security issues ndash all of that is removed with a solution like ours and the customer has access to fast-moving agile ITrdquo LPM

ABOUT THE SPONSOR

Nasstar is a provider of managed IT services and tailor-made cloud hosted solutions ndash delivering innovative secure and agile IT to help clients accomplish their business objectiveswwwnasstarcom

Page 6: LPM September 2016

LEGAL PRACTICE MANAGEMENT7

SEPTEMBER 2016IN PRACTICE Follow us and talk to us on Twitter LPMmag

SWEETENING THE DEAL

HR AGONY AUNT

QI read about Eversheds offering free ice creams

to their lawyers during the heatwave in the summer With sweeteners like this how can smaller firms ever compete to get the best people

AWith all due respect to Eversheds there is a

difference between a perk and a gimmick A Mr Whippy ice cream van is a gimmick (and a flaky one at that ndash ho ho) Compare bringing in an ice cream van with offering coding lessons for lawyers ndash the latter is a new trend in large corporate firms such as Australian firm Gilbert + Tobin

To develop coding and programming skills alongside your legal skills is an attractive proposition for bright legal minds ndash and it could be good for the firm too if one of its 500 staff were to make a cost-saving technological breakthrough In terms of a perk it is the right fit for those firms Equally there will be something which is right for your firm ndash just donrsquot be distracted by the gimmicks

Q A senior employee completely lost his

temper with another employee on the phone with a litany of expletives over some missing documents Can I dismiss him for gross misconduct

A The technical answer is ldquoYou may be able to

depending on all the circumstancesrdquo (arenrsquot lawyers good at sitting on the fence) But is showing anger like this always bad Clearly expletives are inappropriate and the context may well mean this is bullying But in another context this could be sheer frustration Sometimes we get angry ndash this might be because it is serious (such as children crossing the road without looking) because something just keeps happening time and time again (our computer is too slow) or because we canrsquot do anything about something (Boris Johnson being foreign secretary for example) You might want to take the employeersquos outburst as indicative of one of these categories and see if there is

anything that you can do to help

Q We have a few staff successfully working

from home one day a week But for one employee itrsquos a complete shambles her internet is patchy she is sometimes hard to get hold of and she never calls in Shersquos good at what she does but is it worth it

A Letrsquos separate the solvable from the

irresolvable Her internet connection may not be something she can control

and itrsquos not an uncommon complaint but the communication deficit is entirely resolvable The employee needs defined expectations ldquoWe need you to phone in at least twice a dayrdquo And defined consequences ldquoOr elserdquo if she doesnrsquot meet them LPM

Polly Jeanneret is an expert in HR and an employment lawyer at Halebury to boot ndash shersquos seen and heard it all

Send her your HR questionsASKPOLLYLSNCOUK

Polly Jeanneret LPMs HR guru answers questions on dismissal homeworkers ndash and ice cream

THIS

MO

NTH

IN N

UM

BERS

THE ILFM ANNUAL SALARY SURVEY REVEALS THAT LOYALTY TO SMALLER FIRMS MAY NOT BE PAYING OFF FOR EMPLOYEES

of employees in medium to large firms

recieved a pay rise

LOYALTY PAYS

of employees in small firms recieved

a pay rise

of employees in small firms were

successfully retained

78 59 89

LEGAL PRACTICE MANAGEMENT8

SEPTEMBER 2016IN PRACTICE Follow us and talk to us on Twitter LPMmag

LPM ASKS

QWhy is it important to optimise your career

pages for mobile phones

AThe proportion of people using their mobiles to

access the internet is increasing rapidly Ofcom statistics badge us as a lsquosmartphone societyrsquo with phones overtaking laptops for getting online People are surfing while watching TV or in bed they are banking shopping and accessing social media ndash and they are looking for jobs If yoursquore not optimising your career pages yoursquore losing out on a large potential talent pool

The average attention span is about eight seconds and on a small screen you have to engage quickly Breaking down any barriers for potential candidates is therefore critical Recruitment is competitive and in the legal sector we are often looking for specific skills We canrsquot afford to lose candidates at key touchpoints

Optimising your legal business website for mobile devices sends a message ndash we are a modern firm we are tech-savvy we understand our market and our target audiences We also donrsquot want to discourage potential candidates new graduates or apprentices who could be our future workforce

QWhy do you need to monitor social media as

part of your recruitment strategy

AOur social media channels give us direct engagement

with candidates and they are a powerful tool to promote the brand You need candidates to

SALLY JONESCOO BRETHERTONSAfter speaking at this yearrsquos London LPM conference COO of Midlands and London firm Brethertons answers our questions on recruiting and retaining new talent at your firm

feel the culture of your business through social media so itrsquos important to monitor the interaction of both staff and followers in this very public arena We use social media as part of a multi-channel recruitment strategy ndash to advertise our vacancies get employees to push vacancies to their networks endorse our roles and culture and generate excitement about our opportunities We also use social media to research our candidates ndash it can be a valuable source of information and help us gauge the fit of future talent

QWhat should SME law firms consider when using

a recruitment agency

AThere are a number of considerations

l Do they understand the roles and do they understand the skills qualities and behavioural attributes you are looking forl Do they understand your business your strategies aspirations and plansl Do they understand your values and culture Do they understand the importance of this alongside the technical skillsl Do they specialise Are they generalist How well do they understand your target audience l What is the nature of the contract and what does it include and exclude Is it an exclusive arrangement and what is the period of engagement Will you need to work with other agencies to ensure good coverage of potential candidatesl How will they communicate

with you and what needs to be approved within what timescales

QWhat are some key considerations for direct

recruiting

AWe are all trying to get candidates from the same

small pool and we cast our net as widely as possible to get the best outcome and return We also want every hire to be a long-term success

With direct recruitment you have to be very clear on how you define potential candidates and how you select and contact them Confidentiality and communication are therefore key factors Getting the pitch right and being confident in negotiations are also important We approach direct recruitment for example by advertising on our website on specific websites and on social media We also use our networks and we have a great staff referral scheme in place

QHow do you create a powerful brand to aid

retention

AAt Brethertons we have a dedicated people

programme that goes to the heart of attracting and retaining great people It is about layers of connected

change ensuring what we do makes a difference and that we understand the impact of business change on our employees Brand is about giving people an understanding of who you are and your identity It gives people a sense of belonging and value and the knowledge that their contribution matters

You can keep good people and make employees proud to work in your organisation in several ways But always be clear on their contribution how it is valued how their performance will be managed and measured and how it aligns with your overall corporate goals LPM

LPM COMES TO BIRMINGHAM IN NOVEMBER

Book your place at LPMB 2016 NOW for just pound175+VAT early bird price

Email rikkiclsncoukwwwlsncoukLPMB2016

LEGAL PRACTICE MANAGEMENT9

SEPTEMBER 2016IN PRACTICE Follow us and talk to us on Twitter LPMmag

Now that the UK has voted in favour of Brexit we ask LPM readers ldquoDo SME firms need a plan in place for when the UK leaves the EUrdquo

Want to write us a letter You know that thing no one does anymore You can email us a letter for publication to lpmlsncouk or post us something to LPM magazine 20 Mortlake High Street London SW14 8JN Or get in touch through our LinkedIn group at bitlylpmgroup

Follow LPM on Twitter

LPMmag

NAVEED AHMED HEAD OF IMMIGRATION LAW ASONS SOLICITORSThe uncertainty and far-

reaching implications of the UK leaving the EU undoubtedly exposes SME law firms to greater risks which must be effectively managed Strategic planning at primitive stages of the UKrsquos departure from the EU could very well determine the future viability of many SME law firms Diversification may well be key to prosperity after the break and full service law firms that are engaged in a variety of legal sectors such as employment health education retail intellectual property and financial litigation will be well-placed to navigate the storm

GORDON STARK COOMURGITROYDIn a time of uncertainty it

is better to be prepared ndash having a strategic plan in place is important as is knowing when to act The plan should identify risks but also seek out opportunities Firms may need to make decisions about their future during this protracted period of acute uncertainty ndash knowing when these decisions need to be taken what the options are and what the associated lead times will be to execute them will all be key components of planning

SEPTEMBER 2016IN PRACTICE

ANNABEL HAMPSHIRE MANAGING ATTORNEY STRATAGEM IPMSME law firms are no exception when planning for the

inevitable fallout of a post-Brexit United Kingdom The uncertainty over when the UK will leave the EU and the consequences of legal and structural reform make planning difficult Firms are taking immediate steps to reassure clients as well as educate them about the challenges presented in their specific field For the IP sector changes to protection and exploitation strategy will require careful planning but more immediately a review of contractual obligations may be necessary to mitigate unfavourable or unexpected reinterpretations of terms (resulting from practical effects of Brexit) by any party to the contract

ELIZABETH WEST HEAD OF ORGANISATIONAL DEVELOPMENT REDDIE amp GROSE

In our sector (patent and trade mark attorneys) we compete with EU firms Our European work is a mixture of EU law and other international law but we expect EU competitors to take advantage of the Brexit publicity to try to grab a larger share of that work Our plan includes protecting the revenue stream but wersquove had to put that in place now ndash even before an Article 50 notice is served Wersquod advise all SME law firms to challenge their assumptions about who their competitors are and who they will be after Brexit ndash cheer up and strategise

NICK DAVIS HEAD OF RISK AND COMPLIANCE GEDYE amp SONS

The British governmentrsquos well-made plans may not hit their ideal timetable ndash European leaders will have to try and strike a balance between the wants of the UK the European parliament and the views of their own voters (not to mention their own electoral desires) This is clearly a complicated subject and extends across the areas of law that firms practise and the demographic of their workforces SME law firms need a flexible and constantly evolving plan to be able to advise their staff and clients current or new They also need to be able to demonstrate impartial and accurate views on how any potential changes that come as a result of Brexit affect clients first and them second As part of their plan SME law firms should review any guidance notes issued by the Law Society and the SRA ndash adopting any rules and procedures (particularly relevant would be any change to the General Data Protection Regulation and AML fourth directive) so that their firms are ready and well prepared But a plan shouldnrsquot be overly rigid because itrsquos currently too early to tell what if any impact Brexit will have on UK law

YOURVIEW

LEGAL PRACTICE MANAGEMENT9

Follow us and talk to us on Twitter LPMmag

NOVEMBER 2016

VISIT LSNCOUKLPMB2016CALL RIKKI CLARK ON 0870 112 5058

EMAIL RIKKICLSNCOUK

BIRMINGHAM

THE ONLY EVENT FOR MANAGEMENT LEADERS IN SMALL

AND MEDIUM-SIZED LAW FIRMS

ONE-DAY CONFERENCE

6338 LSN LPM Nov 2016 Book Now_03indd 1 30082016 0939

LEGAL PRACTICE MANAGEMENT11

SEPTEMBER 2016IN PRACTICE Follow us and talk to us on Twitter LPMmag

THE WAY TO WHY

BOOK REVIEW

One way of assessing the value of a book like this is by reference to the number of times it makes one think of something it can be applied to in your own career or organisation On that measure

alone Designing the Purposeful Organisation passes with flying colours

At the heart of Wilsonrsquos philosophy is the idea that to be successful organisations must be able to articulate compelling and inspiring reasons for their existence ndash not simply what they do but rather why they do it The usual poster boys for 21st-century business success are quoted as exemplars of this approach - Apple Google Microsoft Reference is also made to Simon Sinekrsquos TED talk (278 million views and counting) and related book Start With Why as a means of uncovering the primary reason for an organisationrsquos existence Indeed a key element of Wilsonrsquos writing style is to send the reader off at regular intervals to take in a TED talk or YouTube video or to reflect in more detail around the topic at hand This does at times make the book feel more like a business coaching session rather than a dry management treatise ndash which for the avoidance of doubt this reader sees as a definite plus point

While the stories around behemoths such as Apple and Google can be compelling I was more taken with the example of the African tax collection agency that Wilson was working with Rather than seeing themselves as taking money from people (the lsquowhatrsquo) he encouraged them to focus on their purpose namely to help fund new schools and hospitals across their developing nation (the lsquowhyrsquo) Articulating the why is also a key element of an organisationrsquos brand proposition Wilson reminds us that customers are more often than not buying why an organisation does something rather than simply what the organisation does Or put another way how many customers would be inspired to have brand loyalty for a firm which simply says that its fundamental reason for being is to maximise shareholder returns

Before anyone starts fulminating about the importance of financial returns Wilson does recognise that results matter However his concern is that they too often become all consuming A key pillar of the book is his belief (which he concedes may be controversial) that overly focusing on results is misguided and can create systemic barriers to better performance Or put more simply results measure our progress to a better future ndash they are not in themselves that better future

This is certainly something that chimed for me as the CEO

of a law firm Yes we all recognise the need to deliver improved financial KPIs However these are simply a means of measuring whether we are delivering value to our clients (given that clients are unlikely to be using and paying for our services where they do not perceive us to have any value) and are unlikely to be the things wersquoll look back on with pride in our dotage

This reassessment of the role of results is also central to one of the key conditions for a more purposeful organisation (and one which will particularly resonate with professional services firms) namely talent liberation Drawing on the work of Daniel Pink on personal motivation (for example Drive The Surprising Truth About What Motivates Us) Wilsonrsquos call is for firms to move beyond transactional performance (pay me X and Irsquoll deliver Y pay me a bit more than X and Irsquoll deliver a bit more than Y) Rather we need to help our people liberate the talent they have by playing to their strengths as opposed to the more traditional performance management model of fixing weaknesses

Wilson focuses particularly on how the proper articulation of purpose can engage millennials Borrowing from Laurence Boldtrsquos Zen and the Art of Making a Living he encapsulates this approach in three short questions What skills and other resources do you have What do you care about Whatrsquos stopping you from pointing A at B

It seems to be that in most law firm management seminars or discussions these days someone somewhere is lamenting the fact that they just donrsquot understand millennials And at last I have an answer for them ndash read Clive Wilson LPM

LPM reader discount ndash use code HRLPMB to get 20 off at wwwkoganpagecom

Designing the Purposeful Organisation How to Inspire Business Performance Beyond Boundaries by Clive Wilson

Publisher Kogan PagePublication date Feb 2015Price pound2999

Reviewer Chris Harte chief executive and partner at Morton Fraser

Have

heardyou

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Contact us for a demonstration ndash see the Proclaim difference

CALL 01274 704 100wwweclipselegalcouklawsocietylawsocietyeclipselegalcouk

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LEGAL PRACTICE MANAGEMENT13

SEPTEMBER 2016COLUMNS

Barry DaviesPractice directorDouglas-Jones Mercer wwwdjmlawcouk

BARRY DAVIES PRACTICE DIRECTOR

ROLE MODELS

ABOUT Recent figures show that there are a shade over 130000 people on the roll of solicitors in England and Wales ndash 20 of those undertake an in-house role 80

are classed as employed An enormous number and this is before we consider the significant chunk of employees namely professional managers support staff and those lawyers who are not on the Law Society roll But lots of firms I speak with say lsquowe have too many partnersrsquo or they have reduced the number of lsquochiefsrsquo within their practice as part of their strategic planning

Where are we going with this What will the future firm look like What will its stakeholders (not necessarily shareholders) expect

The two facets that will impact upon the future will undoubtedly be generational attitudes and technology Though advancements in processing power will mean huge growth of AI systems over the next decade I think generational attitudes is the facet thatrsquos most interesting right now

Generation X lawyers (born between the early 1960s to mid-1970s) are often already partners This generation and the baby boomers before them are usually motivated by achievement and money Generation Y lawyers on the other hand (born in the 1980s or 1990s) are looking for something else Fearing that I sound like a textbook ndash specifically Frederick Herzbergrsquos theory of motivation hygiene ndash itrsquos not money thatrsquoll be the key factor in recruiting millennials but other drivers such as networks recognition quality of work and conditions

Developing reward and recognition strategies is

difficult enough for partners ndash so how does a law firm tackle its entire workforce A few years ago I held a discussion with a law firm partner and a question put to me was could the lsquoJohn Lewis modelrsquo fit a law firm This term is not only synonymous with the department store it has become a household phrase

Quite a few law firms have for some time now introduced a corporate partner ndash a limited company ndash as a partner within its practice with the intention of dealing with distribution of profits more efficiently or as part of a bonus pool So itrsquos quite interesting to hear that a highly regarded firm in the south west Stephens Scown has developed a similar model to the John Lewis theme

Whatrsquos different about this example is that a proportion of the firm is owned by a trust for its employees and not just its partners This gives the employees of the firm a greater sense of belonging and the added impetus to do well I am certain that some critics would question the mechanics of such a scheme and perhaps the barriers to entry such as defined profit levels but setting this aside it is a means of boosting staff engagement and eradicating the lsquothem and usrsquo mentality

With complications in all corners of law firm ownership new models will have to be explored to cover aspirations of all involved There could come a time when a crowdfunding option is explored generally and maybe the household name for staff stakeholder mechanisms in law firms will be the Stephens Scown model LPM

LEGAL PRACTICE MANAGEMENT14

SEPTEMBER 2016COLUMNS

In the April issue of LPM Stepien Lakersquos practice director Richard Hill brilliantly spelled out what to look for when trying to spot a lsquowhalersquo or big lsquophishrsquo ndash a situation where an

individual or firm is targeted researched and then duped into sending money to a cyber attacker

But just as awareness is essential so too is preparedness I thought it might be helpful to share some of the practical considerations that will help keep client funds safe (a requirement of principle 10 in the SRA handbook) including some things wersquove done in our firm in response to these very real threats

Perhaps the most feared event among all law firms is the very well-publicised lsquointercepted emailrsquo (dubbed the lsquoFriday fraudrsquo) But would we be surprised by just how many firms lawyers and clients freely provide bank details within the body of text in an email

This is an area where we recently tightened our procedures and introduced an explicit rule all bank details provided by a client especially in any email communication must be verified by a lawyer (by reconfirming those details with a person they know) The lawyer then signs to say that they have checked them

This has produced some unexpected benefits particularly for one client who provided bank details to us within the body of an email for remitting the proceeds of sale for his family business of pound32m When the lawyer contacted him to verify that the bank details were correct the client realised that he had transposed two numbers

Clearly this is a serious education piece not only for those responsible for finance and the lawyers within the firm but externally for the firmrsquos clients

There are a number of practical points to bear in mind when it comes to day-to-day security matters how do your lawyers communicate the client account details to its clients and do you always attempt to obtain client details for the remittance of funds at the start of the transaction for instance

Additional considerations might be when did you last review any bank payment elements in your email disclaimers terms of business and client care letters Is your payment procedure well-defined and documented (not just the finance element but also those relevant to clients and lawyers) And do you use any law firm identification checklists

These important issues should remain on the agenda so that theyrsquore constantly in colleaguesrsquo minds with regard to maintaining safe and efficient practices

There are some excellent resources available from your bank that can help to educate your colleagues and there are so many simple steps we can all take to make people aware of the problem Have you tried sending a few test phishing emails to individuals within the firm for

GLYN MORRIS FINANCE DIRECTOR

ABOUTexample to see how they respond

But what then If you are confronted with the metaphorical warning cry of lsquothar she blowsrsquo how will you and your people react You may need to have created a well-communicated process for dealing with a phishing incident

The 1851 classic Moby Dick tells the story of one manrsquos obsessive quest for revenge on a giant white whale ndash we might want to take just a hint of Ahabrsquos obsession in our approach to tackling the issue of cyber attacks Although if we can avoid the whale in the first place all the better LPM

THAR SHE BLOWS

Glyn MorrisFinance director Higgs amp Sonswwwhiggsandsonscouk

0800 328 0272 | wwwarchivestoragenet

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LEGAL PRACTICE MANAGEMENT16

SEPTEMBER 2016COLUMNSSPONSORED EDITORIAL

DOUG HARGROVE THE TECHNOLOGIST

DISRUPTION TO GO

ABOUT Change isnrsquot anything new itrsquos just another word for evolution But lsquodisruptionrsquo is certainly one of the words of the decade and one that is

usually connected to revolution ndash a significant alteration to the status quo and one that has far more immediate impacts

Disruption is also the go-to word for business commentators ndash especially when it comes to lsquodisruptive techrsquo ndash talking about new business start-ups or innovations Take the very latest craze to hit the headlines ndash Pokeacutemon Go has seemingly gripped the world these last few weeks with stock valuations heading skyward and comments about the app lsquodisruptingrsquo mobile gaming But therersquos nothing disruptive about the game it takes and utilises technology thatrsquos been around for nearly a decade (geolocation and augmented reality) and applies it in a new way Itrsquos that application of technology thatrsquos causing the disruption

Businesses like Uber and Netflix have built compelling business models on the groundwork of technology that is now pervasive (the smartphone and broadband internet respectively) Therersquos a lot here that firms can learn from itrsquos not necessarily about inventing new technology but about finding ways to use existing technology to create a new approach

So what opportunities are there for law firms to disrupt This can be looked at in two ways ndash disruption to the existing law firm business model and disruption to the user experience The first scenario has already been covered at length and is nothing new for the legal market there are already plenty of law firms out there

looking to change the way a law firm delivers its services to its clients and prospects ndash from franchise models to virtualised law firms Disruption to the law firm business model has been an ongoing force ever since the term ABS became associated with legal practices

The second scenario is a different matter It seems legal clients have been patiently waiting for the lsquodisruptive service deliveryrsquo model to come and there is plenty of opportunity out there for firms to position themselves differently with the modern consumer of legal services

Take a brief example of where old (or rather existing) technology can be used to differentiate ndash videoconferencing Itrsquos a fairly ubiquitous piece of technology thanks to the rise of Skype Facetime and the webcam which gives an instant user experience and a one-to-one connection that bridges the remoteness of a phone call and the need to travel for a meeting It doesnrsquot take much of a leap to imagine a service that allows consumers to access a lawyer instantly using this technology (maybe even a concept that combines the franchise model with an Uber-style app ndash connecting clients to the next available expert from a selection of associated law firms) The point is you donrsquot have to invent something new to be a disrupter ndash donrsquot be afraid to take existing technology and repurpose it to gain a competitive advantage

There are plenty of consumers of legal services who are willing to try out a new service or offering in the search for that great new experience ndash and for those law firms prepared to take the risk and disrupt there really is an opportunity to catch lsquoem all LPM

Advanced LegalRevolutionary solutions for legal services Contact Doug on 01476 573 718wwwadvanced-legalcouk

Advisory

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Delivery

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LEGAL PRACTICE MANAGEMENT18

SEPTEMBER 2016COLUMNS

JANINE PARKER THE BROKER

WHAT PRICE EXCLUSIVITY

Itrsquos that wonderful time of year when the annual bombardment of brokers begins on your never-silent telephones All of them can ldquocarry out a full market exerciserdquo for you that will of course save you money

But whatrsquos the reality The marketplace is still murky and as a profession we donrsquot help ourselves by keeping it opaque So letrsquos objectively consider many of the claims brokers make attempt to clarify the true mechanics behind the market and consider how to best utilise it for the benefit of your firm

Since 2000 and the demise of the Solicitors Indemnity Fund competition for solicitors professional indemnity has increased This hasnrsquot always been generated through the number of insurers but the ever-increasing number of brokers who purport to be experts in this very niche area of insurance This has increased pressure on insurers to lower prices (a good thing for clients up to a certain point) but this pressure combined with some extreme economic factors has contributed to many insurers withdrawing from the market over the past decade

Competition is good for consumers and it encourages innovation to make sure that brokers and insurers can differentiate themselves by developing their product offering

Some brokers organise lsquoexclusiversquo arrangements with insurers often segmented by the number of partners within the firm ndash which is a very artificial way of dividing up the profession But this is the marketplace wersquore in today and itrsquos worth looking a little closer at these lsquoexclusivesrsquo

All the direct access points are listed in the Law Society buyer guide and in practice itrsquos only a handful of brokers who actually hold the exclusive with direct access to the underwriters It is essential to note that these exclusive agreements are not always lsquotiedrsquo arrangements The broker is not bound to place all their business with their one exclusive insurer and itrsquos often the case that those brokers who hold the exclusive arrangement also enjoy strong relationships with the open market insurers

To increase distribution brokers who hold exclusive arrangements will offer access to other brokers who wish to take advantage of the exclusive products available These brokers donrsquot have their own facilities There are many commercial reasons for opening an exclusive to other brokers but itrsquos important to note that the extra broker in the chain will dilute your relationship with the placing broker and ultimately your insurer Marketing materials can often be unclear as access to exclusives is readily used ndash but in reality these brokers will be approaching another broker to do this

Often law firms will be unaware of the number of brokers in the chain and will unwittingly be paying additional brokerage and fees unnecessarily Direct access allows for better communication between your firm and insurers which can often lead to more competitive pricing Removing a broker from the chain can lead to the process of claims handling being more efficient and effective as there are less obstacles in the chain of communication

In summary no one broker has direct access to every insurer and it is possible to approach more than one broker and not be at risk of flooding the market If using more than one broker be clear who you would like them to approach and be aware whether they have to go through another broker to ultimately reach the insurer LPM

ABOUT

SPONSORED EDITORIAL

ParagonBetter broking for legalContact Janine on 020 7280 8200wwwparagonbrokerscom

LPMLEGAL PRACTICE MANAGEMENT

SUPPLEMENT SEPTEMBER 2016

BUSINESS INFORMATION FOR EVERYONE IN PRACTICE MANAGEMENT

LPM INSIGHTS

Sponsored by

How do SME law firm management leaders see the future

LEGAL PRACTICE MANAGEMENT20

SEPTEMBER 2016LPM INSIGHTS

ALL CHANGE

22WHATrsquoS NEXT We analyse the 2016 LPM conference polling data

2 1 COMMENT Accesspointrsquos Richard Roebuck on legalrsquos increasing digital dangers

Change and transformation are words that strike fear into the most hardened of legal management hearts because they are hard to do and even

harder to make stick But change must happen inside todayrsquos SME law firms to make sure they stay in business in tomorrowrsquos world

At this yearrsquos Legal Practice Management conference in London we polled our audience of law firm management delegates on a range of topics Some questions wersquove been asking since our first LPM conference back in the misty era of 2012 Much has changed in the world since then (new UK governments drones are now lsquoa thingrsquo Donald Trump) but legal not so much The rise of the ABS has been slow (though impactful) and the recession has for many businesses faded into a distant memory compared to the Brexit debate

But SME law firms rightly smell a real need for change in the wind ndash and perhaps though they seem to find it hard to name that change the clues are legion Letrsquos find some

LPM London 2016 delegates named the greatest hurdles to their firmsrsquo growth or further success as lsquoacquiring high-quality staffrsquo and the lsquoinability to create change within the firmrsquo Might the solution to one lie in the other Great talent wants to flock to fresh and vigorous businesses and younger legal eagles are increasingly shy of throwing their lots in with the fusty world of partnership Law firm leaders must look at how their businesses are run and who runs them and how people work if they are to attract great people ndash and in doing so they will create the change they seek

Herersquos another 52 of delegates named lsquoclient pressures on costrsquo the factor thatrsquos having the biggest impact on the SME legal market ndash but when asked how important price is when winning business 67 said itrsquos just lsquoone of a range of important factorsrsquo while 21 said itrsquos lsquonot as important as other things such as relationshipsrsquo This is a disparity I canrsquot quite understand but it doesnrsquot sound like the SME legal market truly gets the shift thatrsquos happening on the client side and how much change needs to happen inside firms to meet this challenge

Read on and come to your own conclusions but I think the clues are now becoming obvious I hope your firm sees them too LPM

Rupert Collins-White editor-in-chiefLPMmag | rupertwlsncouk

You donrsquot as the song goes need to be a weatherman to know which way the wind is blowing in the legal market ndash but just because the clues are there doesnrsquot mean you can be complacent about acting on them

CONTENTS

FEATURES

LEGAL PRACTICE MANAGEMENT21

SEPTEMBER 2016LPM INSIGHTS

MORE TECHMORE SECURITY

INTRODUCTION TO THE RESEARCH FROM OUR SPONSOR RICHARD ROEBUCK MANAGING DIRECTOR ACCESSPOINT

After a recent period of uncertainty it would now seem that most firms are confident about their future especially in light of Brexit Whatrsquos also certain is

that most firms are very conscious that to compete they will need to change and adapt themselves for the challenges ahead

With growing concerns about the lack of high-quality people available and what appears to be a reliance on quality individuals driving more lucrative fee-earning work is it time for a gear change

Perhaps the dawn of high-volume low-margin fixed fee work which many firms feared has now arrived As always with change there are challenges to be faced but for those clever early adopters there lies opportunity Making light of the more process-driven tasks and finding more effective efficient ways of completion to deliver client-facing benefits seems key to the wider future of the fixed fee legal landscape

With the growing acceptance of cloud technology and the increasing introduction of new software applications and solutions the legal world has moved on at an improved pace this past couple of years And the world is now clearly keen for more ndash to satisfy its desire for a more accessible and mobile working environment What is key for this trend is that the lsquoquality of the deliverablersquo has an ongoing programme of improvement that benefits both the firm and its clients

As progress pulls us forward there will always be elements arrayed against us Alongside the opportunities hiding in the polling from LPM this year therersquos also a sense of fear and concern around possibly the biggest threat to risk and security there is right now ndash the dark byproduct of technological success cybercrime

Cybercrime is fast growing with ever more complex attacks making headlines It is now one of the most common criminal offences in the UK An increasing number of individuals are exploiting the speed and anonymity of the internet to commit a wide range of criminal activities having no conscience and knowing no borders

It isnrsquot our fault websites get hacked but poor internet safety habits can put us at risk Reusing passwords or using weak passwords make us easy targets for identity theft Remembering multiple passwords can be a pain but there are web services and associated applications that can help such as two factor authentication quality mail management systems URL threat protection and mail encryption

For many firms the biggest threats tend to be by way of the ever-open door into our networks and devices ndash email

Our eagerness to respond almost instantly to emails throughout what will be for most an already pressured day is perhaps the dominant daily activity to foster an unwanted lapse in security In the past 18 months alone I have seen three firms that were truly caught out ndash some with the potential for significant financial penalty by opening email attachments The most common lsquogotcharsquo is an email that appears to have come from the office scanning platform whereby the email address has been cleverly spoofed to appear legitimate (for example downstairscopiermyfirmdomaincouk) There are so many existing and newly circulating threats of this calibre and type that even the most aggressive of filtering systems struggle to keep up

Do you know the name(s) of your copiers and the associated email addresses Do you stop to think before opening the innocuous Word attachment ldquoDoesnrsquot our scanner usually send PDF files Why has a covering note not been included with the attachmentrdquo Stop think and call for advice

Another infamous scam is the spoofing of email addresses of key people within your firm ndash for example an email to the head of accounts appears to be from the senior partner ldquoPlease send pound17000 to account X at your earliest convenience and confirm once processedrdquo it says Stop ndash is this your agreed process

As the demand grows and we extend our reach out into the online world so cybercrime advances ever closer seeking unauthorised access through our front door Quite clearly online is the future but we need to embrace it with the necessary skill sets and processes in place for our convenience wellbeing and prosperity LPM

There are so many existing and newly circulating threats of this calibre and type that even the most aggressive of filtering systems struggle to keep up

Accesspoint are independent legal IT specialists who consult on a variety of information technology-related issues offering the best in IT solutions to help firms work more effectively

Contact Richard and the team on 0203 189 2645wwwtheaccesspointcouk

LEGAL PRACTICE MANAGEMENT22

SEPTEMBER 2016LPM INSIGHTS

SME law firms are in a battle for survival Whether they know it or not they have huge challenges to face in the next few years ndash around succession planning technology replacing lawyers and being

used by competitors to attain a competitive edge and catering to clients who increasingly want cost predictability transparency and availability

These market pressures were addressed at the LPM conference in May 2016 which was attended by over 100 delegates all SME legal management leaders The delegates were polled on the day about what they thought of the pressures facing them and how theyrsquore planning to overcome them ndash and their answers provide valuable insight into the SME legal market

The polling results show that LPM conference delegates were aware of the severity of the challenges they face Three-quarters of legal management leaders we polled at the 2016 LPM conference thought that the challenges theyrsquoll face in the next five to 10 years will be lsquomorersquo or lsquomuch morersquo serious than in past years And 58 of delegates thought that the challenges in the next year to two years will be lsquomore serious than in past yearsrsquo

How they will face these challenges depends at least partly on attitude ndash whether they believe they can win or will eventually lose the war Fortunately most LPM conference delegates were optimistic about their firmsrsquo futures - 81 were either lsquocautiouslyrsquo or lsquoveryrsquo optimistic about their place in the legal market of the future

This doesnrsquot necessarily suggest that theyrsquore confident in the market overall particularly after the market instability brought by Brexit Legal management leaders might believe their firm is the only one thatrsquoll survive due to expertise in a particular area or niche In any case it indicates market confidence and a confidence in the ability of their firm to compete and succeed

But is this optimism misplaced in a market where the future is increasingly uncertain and competitive Are firms really ready for change on a huge scale as their confidence might suggest What are the issues currently keeping SME legal leaders awake at night

In this report LPM shines a light on the SME legal market through the eyes of our legal management leader audience ndash those driving their firms through an uncertain new world

WHATrsquoS NEXTChange is on the agenda for LPM firms but how to address the biggest challenges and which ones to face first is a tough call finds Patrick Wingrove

More serious than in past yearsMuch more serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch less serious than in past years

51

14

8

3

24

More serious than in past yearsMuch more serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch less serious than in past years

How would you rate the challenges your firm faces in the next five to 10 years

More serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch more serious than in past yearsMuch less serious than in past years

58

17

6

0

19

More serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch more serious than in past yearsMuch less serious than in past years

How would you rate the challenges your firm faces in the next year to two years

What is the greatest hurdle to your firmrsquos growth or further success

What is the greatest hurdle to your firmrsquos growth or further success

LEGAL PRACTICE MANAGEMENT23

SEPTEMBER 2016LPM INSIGHTS

TIMES THEY ARE A CHANGINrsquo The overriding theme of the 2016 LPM conference was change ndash how firms can implement it the drivers behind it and the various blockers to it But the first step to change is gauging which factors will have the biggest impact on the legal market Just over half of legal management leaders we polled thought client pressures on cost like demanding fixed fees will have the biggest impact while just over a quarter thought it will be competitors attaining a market advantage using technology

How quickly do firms need to respond to these oncoming market pressures Well 86 of LPM conference delegates thought that change needs to happen in their firms within the next two to five years But 14 said that their firm doesnrsquot need to change significantly perhaps because theyrsquove beaten the rest to the punch their legal business is somehow immune to new pressures ndash or they have their heads in the sand

Legal has traditionally been resistant to change and itrsquos not surprising that some firms still are says Sean Stuttaford COO at Essex firm Thompson Smith and Puxon (TSP) and 2016 LPM conference delegate ldquoThere are still firms out there where partners donrsquot have computers on their desks ndash theyrsquore stuck in their ways and just point blank refuse to

52 26 5 12 5

develop their business for the futurerdquoBut legal management leaders willing to implement

change may still find it difficult as 60 of LPM conference delegates polled thought that lsquochange isnrsquot really understood at their firmrsquo

GROWING PAINSJust over a quarter of LPM conference delegates also thought that an inability to create change within their firm would be the greatest hurdle to the businessrsquos growth or further success ndash though Stuttaford at TSP suggests voters might have blamed the traditional partnership business model for the same reason

But acquiring high-quality staff was considered to be the greatest hurdle for growth or success by 36 of delegates Rebecca Patterson HR manager at Kent firm Thackray Williams and 2016 LPM conference delegate says that she agrees with this result ldquoOur firm has a particularly tough time finding quality support staff ndash we could perhaps stand to invest more in competency frameworks and performance management and training opportunities to aid recruitment and retentionrdquo

William Robins operations director at lsquodistributedrsquo firm Keystone Law and a 2016 LPM conference speaker says

12 36 27 13 12

Lack of fundsAcquiring high-quality staffInability to create change within the firmTechnologyThe traditional partnership business model

Out of these which factor is having the biggest impact on the SME legal market

Client pressures on cost (eg fixed fees)Technology creating advantage for competitorsConsolidationDifficulty in finding routes to growth (eg funding)Something else

What is the greatest hurdle to your firmrsquos growth or further success

LEGAL PRACTICE MANAGEMENT24

SEPTEMBER 2016LPM INSIGHTS

offering a more flexible remote or mobile working set-up for everyone in a firm is an excellent way to attract talent (Keystonersquos model of course is founded on remote working) Perhaps the majority of legal management leaders polled at the 2016 LPM conference agree since their firms have either adopted a flexible remote or mobile working set-up are planning to adopt one or are considering adopting one ndash though there are other advantages to remote working such as reducing overheads In any case the results indicate that the SME legal working landscape is becoming considerably more flexible

But remote working doesnrsquot work for everyone Mary Mocklow CEO at West Midlands firm Talbots Law and 2016 LPM conference delegate says that their high-street set-up wouldnrsquot allow it ldquoThe majority of our staff are client-facing and need to be present at the office ndash and while there are other staff at Talbots that might benefit from remote working you canrsquot have a policy for one and not for allrdquo

CYBER THREATSTechnology was clearly a significant concern for legal management leaders who attended the 2016 LPM conference Patterson at Thackray Williams says some firms have had a hard time finding software that caters to their needs as a business and an LPM conference poll seems to back this up just under half of legal management leaders polled at the conference thought project teams should write law firm software indicating a desire for cross-department input into its creation But the poll also indicates that legal software providers have to a large extent been meeting their clientsrsquo needs

The rising threat of cybercrime was also a clear concern for LPM conference delegates ndash 92 of SME legal management leaders said their firms have cyber risk on their management meeting agendas Stuttaford at TSP says ldquoItrsquos something firms need to be constantly aware of and take precautions against not just by purchasing good firewall and antivirus software but by educating staff about password discipline authentication processes and suchrdquo

32 18 14 33 3

Is cyber risk on your management meeting agenda

92

5 3

Yes No Dont know

Is your firm moving to a more flexible workingremote or mobile working set-up for everyone in it

YesNoConsidering itWe already do itDont know

LEGAL PRACTICE MANAGEMENT25

SEPTEMBER 2016LPM INSIGHTS

PRESSURES AND PRICINGClient pressures on cost was also a major concern for legal management leaders polled at the conference so it may not be surprising that just over half of them said 50 or more of their firmrsquos work is some form of fixed fee This doesnrsquot necessarily suggest that the other half arenrsquot open to the concept of fixed fee ndash Mocklow at Talbots points out that fixed fees work for certain types of work ldquoHigh-street firms like Talbots can benefit greatly from fixed fees which is why 75 of our work is fixed fee but itrsquos more difficult to apply to firms that specialise in something like admiralty lawrdquo

The industry seems to think that the value of service has been lost to the price obsession in some areas but not in others ndash and while pricing is clearly a vital issue for SME firms 88 of legal management leaders polled at the LPM conference thought that itrsquos lsquoone of a range of important factorsrsquo or lsquonot as important as other thingsrsquo Patterson at Thackray Williams says that maintaining a good relationship with clients is often more important than pricing though pricing can be a means to achieving client satisfaction ldquoIt also depends on the client ndash in something like conveyancing first-time buyers might be looking for fixed fees or the cheapest price but for commercial clients that may not be as important as reputation or relationshiprdquo

TREASURE MAPPINGLegal process mapping often used by lsquobig lawrsquo and making inroads into SME legal could potentially make SME firms a great deal more efficient and therefore more competitive Two-thirds of legal management leaders polled had heard of process mapping and 79 thought that it is relevant to the business of law Stuttaford at TSP says he agrees ldquoFirms should look at their processes learn from them and figure out how to improve those processes ndash this question really made us look at what TSP has done so far in terms of what legal processes wersquove mapped and whenrdquo

To sum up LPM conference delegates were aware of the challenges that face them but were mostly optimistic nonetheless This may be because they know they need to change and in spite of the fact that change isnrsquot really understood at their firms are planning to mend their ways to meet future market pressures ndash generally putting the client first while keeping talent and technology high on their agendas LPM

Are aware of this thing called legal process mapping

66

34

Has the value of service been lost to the price obsession

23

23

54

Yes No Depends on the service Dont know

Yes No

How important is price in winning business

8

4

67

21

CriticalMore important than almost all factorsIts one of a range of important factorsNot as important as other things such as relationshipsIts one of the less important things in reality

What is the greatest hurdle to your firmrsquos Are aware of this thing called legal process mapping

LEGAL PRACTICE MANAGEMENT27

SEPTEMBER 2016COLUMNSSPONSORED EDITORIAL

Welcome back LPM readers ndash the new school term has started summer is (pretty much) over and the UK is back in full throttle after the summer break And what a break itrsquos been at

File Queen HQ (wersquove taken the time to get our clients up and running with augustprojects as well as started our new Instagram feed filequeenadds)

With the start of the new learning year wersquore focused on the education of you lovely LPM readers ndash with our attention turning back to the General Data Protection Regulation You may remember that in our last LPM article we ran through the 12 steps to tackle the GDPR helped by the awesome people at the Information Commissionerrsquos Office ndash wersquove provided a link to their 12-step resource via our website wwwarchivestoragenetnewsgdpr

Over the next three columns wersquoll be taking these steps and breaking them down for you ndash starting with step one awareness The File Queen (myself) and the team at ADDS have been promoting this step as the most important for all legal practices

ldquoWhyrdquo we hear you holler Well this step is the all-important life raft that unites your practice and team members to help you in the GDPR fight for survival (dramatic I know)

Getting the team on board ndash this buy-in needs to include all ranks of staff ndash from the managing partners to your suppliers But how do you do this Well here are some File Queen tips for when we at ADDS are rolling out projects

Lunch and learn ndash with a register People love to eat and be social so get your legal business to book in a couple of lunch and learn sessions Donrsquot limit this to one date ndash you must run at least two or three so people have the option of which dates to attend Make sure you make a register for those that actually turn up (we all know a calendar acceptance doesnrsquot mean theyrsquoll actually appear) This will allow you to chase down the members of the team you need to get on board for the next one

Have some decent sandwiches nibbles and soft drinks and give the team an overview of the GDPR Run through the 12 steps and make sure you educate them on why everything is so important (make sure you mention the increased fines and audits) During this time let the team know that there are several steps along the way that yoursquoll need their help and support for and which you wonrsquot be able to achieve on your own Tell them that the businessrsquos reputation and brand is on the line and that you need everyone on board to lend a helping hand and spread the word

Another great File Queen tip at this stage is also to get some additional funding from the practice manager for a wine and quiz night at the end of the lunch and learn periods This can be part of your social gathering on a Friday straight after work ndash with some more nibbles and wine Assign people to teams and have a GDPR quiz The winning team gets an award and everyone has fun and learns at the same time Follow our twitter feed as wersquoll be tweeting some great questions to ask thefilequeen GDPRQUIZ

We know itrsquos a lot to organise but there are only four months left in 2016 and GDPR practices must be in place by 25 May 2018 And believe me when you have to roll out rather hard core legislation you have to make it fun and interactive to get people on board LPM

ABOUT

NATASHA RAWLEY THE FILE QUEEN

EDUCATING YOUR PROS

ADDSSaving firms from paper hellContact Natasha on0800 328 0272wwwarchivestoragenet

LEGAL PRACTICE MANAGEMENT28

SEPTEMBER 2016FEATURES

28

Patrick Wingrove talks to the founders of Proelium Law about their work providing legal advice in high-risk environments and conflict zones and the challenges of setting up shop in a new and risky area of law

Legal commandosProelium

Compared to the day-to-day lives of Proelium Law founders and partners Richard Stephens (above left) and Adrian Powell (centre) the average lawyer leads a pretty humdrum life Though UK-based the

firm has a strong international focus ndash Stephens and Powell regularly travel to provide legal and business advice to companies and individuals in high-risk professions or working in hazardous environments across the globe including conflict zones in Iraq Syria and Afghanistan Powell says that itrsquos a challenging but exciting area of law to be in and that ldquono two days are ever the samerdquo

The firm was established as an ABS in November 2015 allowing Powell and Stephens to operate as partners although Stephens isnrsquot a lawyer Powell qualified as a solicitor in 2004 after spending 11 years of his career in the British army and post-2006 worked on various high-risk projects around the world ndash giving him the inspiration for Proelium He says ldquoThe idea came to me in Baghdad in 2009 while working for a private security company as a legal adviser ndash I thought lsquoWhy isnrsquot there a firm doing thisrsquo But I soon realised that I needed someone on the ground who wasnrsquot a lawyer to help make it happenrdquo

That person was Stephens He previously served in the Royal Marines worked as a Whitehall-based strategic planner for the UK government and commanded a special operations regiment (which is why we couldnrsquot show you his face but itrsquos a nice issue of LPM) He now works primarily on the business development side of Proelium ldquoJoining Adrian who Irsquod previously worked with on projects around the

LAW FIRM PROFILE

LEGAL PRACTICE MANAGEMENT29

SEPTEMBER 2016FEATURES

world at a firm meant I could do fascinating and important work with the credibility that being a partner in a regulated business providesrdquo he says

Their work has certainly been interesting Proelium has cast its net far within the niche high-risk sector ndash advising UK-based service providers on the complexities of working in hostile environments conducting business and human rights due diligence and ensuring anti-money laundering counter terrorist-financing and anti-bribery compliance for companies intending to run in high-risk areas or conflict zones to name a few Recently theyrsquove also been working on developing capability for national intelligence organisations overseas ndash but for fear of being jailed for treason Stephens and Powell didnrsquot elaborate hellip

Powell says that the challenges companies face in these areas are numerous ldquoTherersquos a real technical knowledge in understanding how organisations physically work overseas These companies are good at what they do but that doesnrsquot necessarily translate into being business-savvy when it comes to operating in frontier markets ndash thatrsquos where Proelium adds valuerdquo For example after a client was recently exposed on an arms deal they were able to quickly discern liability and ensure that all necessary agencies and departments were appropriately informed

Powell and Stephens joke about how theyrsquore the number-one firm in their sector ndash admitting that to their knowledge theyrsquore the only firm that specialises in this area of law They added that itrsquos an untapped niche in which Proelium will be a pioneering force but which has also recently come onto the radar of a larger firm Theyrsquore alluding of course to Proeliumrsquos recent venture with Harrison Clark Rickerbys ndash a joining that combines Proeliumrsquos experience working in high-risk jurisdictions with the manpower and existing defence and security expertise of

HCR Powell says ldquoWhat they donrsquot have is our connections and our experience They like the idea of the sector because they see it as an interesting area and the partnership will allow us to offer a wealth of different legal services while letting us focus on what we do bestrdquo

As part of their ambitions for Proelium Powell and Stephens are keen to train a new generation of lawyers whorsquoll specialise in the high-risk sector ldquoWe have confidence in what the younger generation has to offer and we want them in our industry to continue our work in this relatively untapped areardquo says Powell Stephens adds that itrsquos also a matter of succession planning ldquoWe want the firm to operate long into the future but we donrsquot necessarily want to be running it ourselves for the next 20 yearsrdquo Proelium currently employs two interns as part of this commitment including University of Surrey law student Ruby Jamieson (pictured) She says ldquoWorking [at Proelium] has given me loads of insight already ndash itrsquos very niche

very new and Irsquove really enjoyed helping develop the business I feel that itrsquoll open a lot of doors when I graduaterdquo

In terms of expansion Proelium has recently opened a new office in the City of London Powell says that his home was originally the firmrsquos practising address but a large portion of their client-base is in London ldquoand we couldnrsquot keep having our meetings in coffee shopsrdquo

But Powell and Stephens are firm believers in the concept of remote working which works particularly well for their business

ldquoMost of our clients are either in London or outside the EU so Irsquom always away but all my phone calls are redirected from the new office to my mobile so I can keep in touch with clients whether Irsquom in Dubai or Baghdadrdquo says Stephens Powell adds that he feels remote working has the added benefit of keeping staff happy by letting them work from home which he says certainly makes him more productive as a fee earner

Proelium isnrsquot looking to expand into areas it has no interest in like family law but theyrsquore taking a keen interest in the emerging area of cyber law and are considering taking steps into that world ldquoLike high-risk law no onersquos really wrapped their arms around cyber law yet Therersquos cyber law in the US but it doesnrsquot exist per se in the UK except in terms of data protectionrdquo

When asked what advice they could give to SME firms based on their unique experiences in their sector Powell and Stephens said firms should know the areas of law they practise inside and out Powell says ldquoWersquore concerned with being experts in our field ndash a lot of our clients have peoplersquos lives in their hands and are not in the business of nonsense which is why they come to us We give sound researched legal advice based on experience and if we donrsquot know something we send the client to someone who doesrdquo LPM

ldquoCompanies are good at what they do but that doesnrsquot necessarily translate into being business-savvy when it comes to operating in frontier markets ndash thatrsquos where Proelium adds valuerdquo

Proelium

Two fee earners four total staff

Offices City of London Wirral Cheltenham

Specialisms International criminal commercial and conflict law due diligence sensitive investigations

LPM FACT FILE

ldquod2u is the UKrsquos number one outsourced transcription service for medical and legal professionals and highly competitive all over the world We pride ourselves on saving our clients time and money as well as offering state-of-the-art security and a first-rate servicerdquo Daryl Leigh CEO dictate2us

LPM magazine has agreed a special deal for its readers with dictate2us ndash 5 off your monthly

transcription bill for one year if you sign up through the dedicated LPM link or call and quote LPM2016 when signing up You can trial the service for free before committing

CUT COSTS INCREASE EFFICIENCYAll firms could benefit from outsourcing transcription to dictate2us ndash but even more so with our LPM deal 5 off your first year

wwwdictate2uscomlpm

Use d2u and enjoy the benefits ofbull Fast turnaround timesbull Secure and confidential servicebull Secetarial cost reductions of up to 60bull Guaranteed 985 minimum accuracybull iPhone Android and Blackberry apps with one-hour turnaroundbull 100 output - only pay for the time you talkbull Free no obligation trial

This special LPM magazine reader deal only relates to customers that execute an agreement for a minimum term of 12 months with a minimum monthly commitment of 500 minutes LPM magazine sought two law firm references for dictate2us to verify its claims for quality and delivery The 5 deal only applies to the first paying year the customer is with dictate2us LPM magazine is not responsible or liable in any way for work done by dictate2us and is an advertising referrer only

d u2 dic t a t e 2 u s

SPECIAL READER OFFER

The d2u Transcriber app is free to download from Apple and Android app stores and BlackBerry App World

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LPMLEGAL PRACTICE MANAGEMENT

LPMLEGAL PRACTICE MANAGEMENT

DictateBRIEFINGv2indd 1 28042016 1336

LEGAL PRACTICE MANAGEMENT31

SEPTEMBER 2016FEATURES

Patrick Wingrove speaks to management leaders from SME and top 100 law firms that have recently achieved significant growth to find out how to go from acorn to oak tree

FROM MINNOW TO

For many SME firms growth is the goal ndash but it doesnrsquot have to happen in the ways that many have scaled in the past The era of organic slow quiet steady partnership development over decades is

increasingly at odds with a fast-paced digital world Strategies for growth in the legal market are now closer than ever to the rest of the business world ndash and any size firm can learn how to do it

Big or small there are similar tools in the box for making growth happen and similar challenges Lessons abound but some of the best can be taken from those firms not far outside the famous lsquotop 100rsquo legal businesses in the land ndash those that have already grown up and now have the top tier in their sights There are also lessons to draw from smaller but rapidly scaling law firms

There are many growth strategies for organic and acquisitive growth ndash and no easy answer for which is right for your firm To shine a light on the subject wersquove spoken both to SME and top 100 firms about growth and how to do it (and importantly how not to do it)

MAMMOTH

LEGAL PRACTICE MANAGEMENT32

SEPTEMBER 2016FEATURES

MODELS OF GROWTH According to the Lawyer the two fastest growing firms in the top 200 this year are Midlands-based Knights and lsquodistributedrsquo firm Keystone Law ndash currently placed 119 and 122 in the 2015 UK 200 rankings but whose revenue will now put them well inside the 2016 top 100 (due for release October 2016) Both attribute their growth to non-traditional business models ndash and very different non-traditional models at that

Knights corporatised in 2014 to remove the barriers from its decision making processes which CEO David Beech says has been the key to its growth ldquoEquity partnerships donrsquot grow particularly quickly because itrsquos hard to achieve consensus and make decisions that enable fundamental or rapid growth among equity partnersrdquo

Knights acquired Oxford-based Darbys earlier this year ndash a move largely behind the revenue increase that will put them in the top 100 ndash and completed the transition inside three months which Beech says would have been next to impossible under their old business structure ldquoNot only was a quick turnaround good for the books it saved significant time and money that could be invested elsewhere in the businessrdquo he says

Top 100 firm Simpson Millar is one step

ahead of Knights The firm broke the glass ceiling to become a top 100 firm in 2015 and like Knights the firm attributes its growing success to corporatisation ndash but in a different manner

It sought to be and was eventually acquired by PLC Fairpoint Group in 2014 Simpson Millar continues to run as an LLP under the same management team and existing trading brands but as a business unit within Fairpoint

Managing partner Peter Watson says that one of the key reasons to pursue this particular growth strategy was to provide an injection of capital for MampA ldquoWe completed the sizeable acquisition of Colemans last year for example which we were only able to do with considerable investment from Fairpointrdquo

Being part of a PLC has also given the firm access to strong MampA and project management capabilities ldquoAcquiring Colemans doubled the business overnight ndash for something like that you need strong MampA experience and access to that team within Fairpoint was crucial in getting the deal across the linerdquo says Watson Simpson Millar also built a strong digital strategy launched new products and focused on pricing ldquoCall it fixed fees or packaged fees the point of it was to say to consumers

Square One Law

Revenue pound5m

31 fee earners 53 total staff

Offices Newcastle-upon-Tyne

Specialisms Commercial corporate property employment EU and competition law finance litigation private client

LPM FACT FILE

Knights

Revenue pound40m (year end 2017)

375 fee earners 450 total staff

Offices Chester Cheltenham Newcastle-under-Lyme Derby Oxford Hale

Specialisms Full service firm

LPM FACT FILE

LEGAL PRACTICE MANAGEMENT33

SEPTEMBER 2016FEATURES

lsquoWith us you know exactly what yoursquoll get and how much itrsquoll costrsquordquo

PEOPLE PLEASERSThe ability to implement change has also been an important part of delivering a growth strategy This isnrsquot necessarily surprising ndash polling at the 2016 Legal Practice Management conference showed that legal business managers thought it was one of the greatest hurdles to a firmrsquos growth or success only topped by acquiring high-quality staff In Knightsrsquo case the two challenges were addressed together Beech says Knightsrsquo corporate rather than partnership structure also allows it to recruit talented people without having to deal with the inherent politics of an equity partnership

ldquoAcquiring the best talent has been a central part of our growth strategy ndash if a candidate can help the business through expertise or client following we can just recruit themrdquo he added

But a successful growth strategy incorporating talent isnrsquot just about recruiting quickly as we analysed in the July 2016 issue of LPM ndash itrsquos about recruiting well Firms also need to make themselves an attractive prospect for legal talent in order to grow

William Robins operations director at Keystone Law says his firmrsquos lsquodispersedrsquo model allows it to do that by offering new fee earners the chance to work remotely with less supervision ldquoWersquore typically hiring about a lawyer a week ndash bringing their expertise fee-earning capability and client following with them ndash and that is the core part of our growth strategyrdquo The firm has buttressed its recruitment capability by hiring a director of recruitment to focus almost entirely on lawyer enrolment (recruiting talent to recruit talent ndash neat)

Though the distributed model may not be for everyone says Robins implementing some form of flexible mobile or remote working should be part of any firmrsquos growth strategy because it allows firms to increase their fee-earning capability without accruing fixed overheads such as office premises

And there are other ways to be talent-attractive As a core part of its growth strategy Newcastle-based firm Square One Law ndash which achieved 30 growth in the

last financial year ndash has pledged to create a supportive and inspirational team environment offering high-calibre work to attract the best talent Ian Gilthorpe senior partner at Square One says ldquoGood people want to be inspired to be valued for what they do and feel as though theyrsquore making a contribution The key is to engage with all your staff to facilitate a culture where staff feel happy at work work for each other trust each other and ensure that they see the value in what they do ndash if you do that more talent will comerdquo

He added that itrsquos important for

recruitment to convey staff satisfaction to the outside world which Square One has achieved by including staff video-testimonials on its website

But recruiting is only half of an effective people strategy ndash the other is retention Simpson Millar has attempted to create an environment that its talented staff wonrsquot want to leave Says Watson ldquoToo many firms worry about what will happen if their rainmaker goes somewhere else and takes clients with them ndash so they put the shackles on make them feel unhappy and make it so that they canrsquot realise their full potentialrdquo Creating such an environment makes firms an attractive target for lateral hires when they should be building a place people want to join

PRACTICE AREASSME legal businesses donrsquot necessarily need to change their business models completely to achieve the same growth as

Thorntons

Revenue pound20m

209 fee earners 430 total staff

Offices Dundee Edinburgh St Andrews Perth Cupcar Kirkcaldy Anstruther Arbroath Montrose Forfar

Specialisms Full service firm

Keystone

Revenue pound202m

198 fee earners 230 total staff

Offices London Bristol Isle of Man Australia

Specialisms Corporate and commercial dispute resolution property

LPM FACT FILE

LPM FACT FILE

Equity partnerships donrsquot grow particularly quickly because itrsquos hard to achieve consensus and make decisions that enable fundamental or rapid growth among equity partners David Beech CEO Knights

Simpson Millar

Revenue pound316m

322 fee earners 539 total staff

Offices Birmingham Bristol Cardiff Cheadle Hulme Gateshead Kingston-upon-Thames Lancaster Leeds Park Place Leeds St Pauls Street (head office) London Manchester Newcastle

Specialisms Full service firm

LPM FACT FILE

LEGAL PRACTICE MANAGEMENT34

SEPTEMBER 2016FEATURES

our examples but removing blockers from decision-making making themselves more attractive to talent and finding the right funding for growth are increasingly important and the partnership structure may not enable it

But of course that means asking some turkeys to vote in a Yuletide election Fortunately there are other ways to achieve impressive growth mainly investment andor expansion into new geographic or practice areas

Watson says that Simpson Millar wouldnrsquot have been an attractive prospect to Fairpoint had the firm not spent time growing organically by expanding into new areas of law

ldquoWe went from being a predominantly trade union PI firm to having a broad base of 16 types of work ndash with strong heads in charge of each committed to driving growth in their departments ndash which gave us a large boost in revenuerdquo The firm achieved this through small acquisitions of other firms that had expertise in particularly lucrative areas of law

But firms shouldnrsquot just look at expanding in lucrative areas ndash they should focus on areas where their reputations deliver an advantage Scotlandrsquos Thorntons for example ndash which last year leapt from 134 to 108 in the 2015 UK 200 rankings ndash invested in six departments as part of its growth strategy

Thorntons joint managing partner Scott Milne says ldquoWe didnrsquot exclude other areas but we saw that these areas were profitable and that more importantly we had considerable expertise in them ndash we also considered that these are areas that are unlikely to be affected by future economic downturnrdquo This included investing in niche areas of law where the firm has a geographic competitive advantage ldquoWersquore lucky to be surrounded by some of the best farmland in the UK ndash wersquore well known for our expertise in rural business law which is why we invested heavily in itrdquo

ORGANIC V ACQUISITIONIn several ways choosing an effective growth strategy very much boils down to MampA versus organic growth ndash every business model talent or area expansion strategy appears to revolve around one or both But which is the best to achieve the kind of growth thatrsquoll propel firms to a lsquohockey stickrsquo on their revenue forecasts The short answer is it depends on whatrsquos best for a firm at a given time It either

needs to fit the firm ndash or the firm needs to change to fit the goal

Beech says that acquisition has been excellent for Knights because itrsquos a fast and effective form of expansion ndash the acquisition of Darbys more than doubled its revenue But MampA poses a significant challenge to finding firms with the right cultural fit

ldquoFirms need to establish a single culture in order to implement growth ndash everyone needs to be working towards the same goalrdquo He added that when a firm completes a merger or acquisition that firm has to be integrated from day one which is much more difficult if it has a significantly different culture Knights is planning to continue recruiting and complete more acquisitions in the next year to maintain the growth curve

Of course the big problem with acquisition is money Robins at Keystone says his firm lies at the opposite end of this

INFORMATION IS EMPOWERING

Lemington Spa-based firm Wright Hassall has a specific goal of breaking into the top 100 and as part of its growth strategy expanded into areas of the UK where its expertise is highly sought after ndash using customer relationship management in the background to underpin the firmrsquos activities in specific areas Martyn Wells IT director at the firm says ldquoWersquove zoomed in on specific industry sectors that we know are performing well in the Midlands sectors where we have a superb reputationrdquo Expanding geographically as Wells outlines needs data to get right Thorntons for example identified various lsquomicro-marketsrsquo in Scotland close to its base of operations ldquoWe acquired a firm in St Andrews because itrsquos like a micro-economy (or micro-market) that doesnrsquot seem to be affected by price drops in the residential market elsewhererdquo says Thorntons joint managing partner Scott Milne Knights has another take on the geographic targeting idea ndash it intends to stay out of the large cities (London Manchester Leeds for example) and expand into areas where there is little competition As David Beech CEO at Knights explains ldquoLast September we acquired a small team in Chester of about 11 lawyers and now thatrsquos expanded to just over 70 ndash and the main reason wersquove been able to do that is because there isnrsquot a lot of competition thererdquoUltimately this all comes down to research finding out what to invest in or where to expand and perhaps most importantly finding out what clients want

LEGAL PRACTICE MANAGEMENT35

SEPTEMBER 2016FEATURES

spectrum to the way Knights has grown emphasising organic growth finding innovative means to attract talent using technology to drive efficiency and branching out into new areas of law or new markets to achieve significant growth

Square One Law also espouses the organic route ndash believing that firms with growth in mind should focus on ensuring their external brand reflects the businessrsquos internal culture and behaviours of its team creating lsquosynergyrsquo between the business and its clients

Gilthorpe says ldquoMergers ndash and there is no such thing as a true merger ndash and acquisitions can be a distraction as you look to create a new culture and separate the wheat from the chaff and this can soak up a lot of energy that would otherwise be put to use in driving the progression of the business and the focus on client servicerdquo

The best option for some firms may be a

calculated combination of MampA and organic Thorntons for example having made several acquisitions is now focusing on organic growth moving away from geographical expansion and towards developing locations and its brand

Watson at Simpson Millar sums the mixed approach up thus ldquoItrsquos a mixture Acquisition is still very much a part of the mix but in parallel to that itrsquos important to demonstrate that yoursquore developing ongoing work rather than being driven solely by acquisitionrdquo

There are clearly many different ways to achieve healthy and assertive growth though there are no easy answers as to which way is right for your firm But it is clear that growth doesnrsquot have to happen in the ways many have previously achieved it ndash innovation and lateral thinking are the means of achieving significant growth (which might one day propel you into the top 100 you never know) LPM

LEGAL PRACTICE MANAGEMENT36

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

INDUSTRY VIEWS

36LEGAL PRACTICE MANAGEMENT

Legal is becoming an ever more digital industry giving firms the chance to become more efficient flexible agile and collaborative

INDUSTRY VIEWS INDEX

ONLINEOFFICES

36

SPONSORED EDITORIAL

INDUSTRY VIEWS

37 INTERVIEW

Paperless processLinetimersquos Tony Klejnow explains the benefits of using matter management software for law firms and their clients

39 INTERVIEW

Virtual expansionNigel Redwood Nasstarrsquos CEO talks about the advantages of having a managed flexible IT infrastructure

LEGAL PRACTICE MANAGEMENT37

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT37

Competition and price pressures and an increasingly digital client base are all significant drivers for law firms to become paperless

businesses Tony Klejnow Linetimersquos managing director says firms could achieve competitive advantage by introducing paperless solutions across their businesses ndash but a particular lsquoeasy winrsquo area is matter management

ldquoFee earners are required to keep detailed records of their cases but the amount of time and money they waste physically printing filing looking for collaborating on and updating files is alarmingrdquo says Klejnow Law firms have traditionally been reluctant to adopt paperless

workflow solutions he adds because workflow doesnrsquot apply to 99 of fee earnersrsquo work ldquoBut if they adopted paperless solutions in their back office processes they could reduce costs without affecting client service boost productivity and promote collaboration ndash making them more efficient flexible and cost effective and making them more competitive in an ever-changing legal marketrdquo

MATTER MATTERSDocument and matter management tools ndash like those in Linetimersquos legal software product Liberate ndash electronically store and organise all case documentation in an online database Klejnow says that there are two immediate benefits of paperless matter

PAPERLESS PROCESS

Tony Klejnow managing director at Linetime talks to LPM about the benefits of the paperless office ndash starting with filing and back office processes

INDUSTRY VIEWS

Linetime is a specialist provider of Microsoft-based practice and case management solutions Clients include mid-tier law firms and in-house legal departmentswwwlinetimecouk

ABOUT THE SPONSOR

SPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT38

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT 38

management The first is reducing paper and storage costs

ldquoIf case documentation is electronically stored once a case is finished you no longer have a five-inches-thick file that has to be stored for six years ndash which has to reside somewhere and costs firms time space and moneyrdquo The second is eliminating filing time ndash for example instead of printing and filing emails and attachments fee earners drag and drop emails directly from Outlook into the database ldquoand attachments are automatically stripped from emails and appropriately filedrdquo says Klejnow

And Klejnow says paperless filing systems donrsquot just facilitate efficiency this way ndash they also improve general process efficiency by facilitating collaboration between fee earners Solicitors can use document and matter management to view and work on matters at the same time a difficult if not impossible prospect when working with paper files Klejnow says ldquoWithout document management legal professionals work in silos but with it they immediately share datardquo He adds that Liberate has an additional collaboration tool to help further improve collaborative efficiency in firms ldquoIf I choose to lsquocollaboratersquo a document with you on Liberate Outlook will prompt you to review that document by simply acknowledging the notificationrdquo

In this respect moving to become a paperless business provides greater flexibility for fee earners who can collaborate with colleagues working remotely or in different offices Klejnow says ldquoPaper files can only reside in one location but electronic files can be accessed from any office and when working from home or with clientsrdquo On the other side of the coin having digital files maintains a greater level of productivity in a law firm office ldquoIf your colleague is absent from the office you can easily find documents that you might have otherwise wasted a significant portion of your day looking forrdquo he adds

Improved external collaboration is also a benefit that firms can reap from paperless matter management With an electronic system you can go into a case history bundle documents into one PDF file and quickly submit that to the third party improving collaboration between fee earners and clients who want to do everything online This has the added benefit of improving accuracy and facilitating greater efficiency by involving clients in the process ldquoGood matter management software should also let you push e-forms to clients to be filled in and that information is automatically transferred straight to the online database ndash which saves fee earners

time and is a more accurate because the information doesnrsquot have to be constantly re-enteredrdquo says Klejnow

This extra level of collaboration within legal businesses that hasnrsquot been possible until now has long been needed because it improves efficiency and productivity which makes the business more profitable and competitive Klejnow adds that what firms save by adopting matter management they should reinvest in becoming fully paperless digital businesses

ldquoCase management solutions can improve efficiency to an even greater extent and keep firms competitive in the age of the alternative business structuresrdquo

VISIBLE COMPLIANCEIn response to firms reluctant to adopt paperless technologies like document and matter management for fear of losing delicate information to cybercriminals Klejnow says those systems provide an additional level of security ldquoTaking data and attachments out of Outlook and storing them on a database is much more secure than leaving them on your hard drive If you leave

your laptop on a train for example all your important data is safely stored on a server and not instantly accessible by opportunist criminalsrdquo

Document and matter management also offers a greater level of security in fee earner and client communications ldquoIf I want you to check that the data we have for you is accurate Liberate will

direct you to a page holding your data and at the same time it will push out an SMS text with a pin code to your phone Unless you input the code you canrsquot get to the web page ndash which means if one of your solicitors accidentally sends an email to the wrong person or itrsquos intercepted it doesnrsquot matter The data stays safe ndash this level of security is crucial in this age of cybercrimerdquo

These security features clearly have significant benefits for compliance which is important in a market increasingly dictated by regulation including the relatively new General Data Protection Regulation says Klejnow

ldquoCompliance officers need to be seen by regulators to have monitored and reviewed everything thatrsquos happened in their firm which is considerably easier with a paperless system Liberate has lsquoversion controlrsquo which allows compliance officers to keep tabs on every change made to a document as well as a compliance module which lets them view whatrsquos happening on a case (to ensure that money laundering checks have been carried out and so on) and records the fact that yoursquove reviewed thisrdquo LPM

Without document management legal professionals work in silos but with it they immediately share data

INTERVIEW

LEGAL PRACTICE MANAGEMENT39

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LPM readers may already know the Nasstar Group ndash but by a different name Nasstar was launched by regular LPM-contributor e-knownet to consolidate four discrete hosted

managed IT businesses (including e-knownet) after a period of significant acquisition Nigel Redwood chief executive officer at Nasstar says merger and acquisition and consolidating brands is challenging but having a flexible hosted IT infrastructure makes the process significantly easier

ldquoManaged IT services are enormously beneficial for firms that are expanding or consolidating particularly after MampA in terms of time and productivity cost savings and flexibilityrdquo He adds that by just having managed desktops firms can attain competitive advantage by reducing overheads and becoming more flexible and agile

Nasstar has experience helping SME firms with their IT systems after MampA and knows what problems to look out for creating unity among staff used to using different systems and processes the cost and time it takes to expand an IT infrastructure and the geographic distance between new offices

Redwood says that MampA can be an excellent way for legal businesses to expand into new sectors but that consolidating new departments using different IT systems and processes is challenging

ldquoOur acquisitions for example introduced new sector focuses for us in the SME legal market ndash wersquove consolidated these into a wider service base under Nasstar and facilitated unity among staff using virtual IT solutions

rdquoVirtual IT solutions help facilitate unity across the business by providing a level of consistency in an IT infrastructure Everyone immediately uses the same applications on the same versions from wherever theyrsquore working creating unity faster collaboration across teams and effective information sharingrdquo Hosted IT infrastructures are also continually updated giving staff instant access to new updates applications and technologies as they become available

The next significant challenge firms face after MampA is expanding their IT infrastructure to accommodate an influx of new staff ndash but Redwood says virtual IT solutions let firms expand their IT infrastructure at the flick of a switch

ldquoWith virtual IT firms arenrsquot held back by the size of their servers or the amount of computer power theyrsquove got ndash they simply call their IT provider and ask for an upgrade when previously theyrsquod have been

subject to lengthy and costly IT upgradesrdquo Virtual IT solutions are also easy to budget for

Redwood says ldquoYoursquore not going to be surprised by an increased fixed asset expenditure ndash services like those offered by Nasstar are an operational cost and fixed per user per month through a scalable cost modelrdquo

Geographic distance inhibiting collaboration between merged offices is also a key consideration for firms after MampA but virtual IT solutions solve this problem Redwood says a virtual IT infrastructure can minimise travel through the use of hosted virtual meeting rooms and video technology Staff can use this technology from virtually anywhere which is why it also lends itself well to remote flexible or mobile working set-ups

VIRTUAL WORKPLACERemote working is becoming an increasingly present feature of the legal landscape because of its cost saving and recruitment and retention advantages ndash the majority of firms at the LPM conference 2016 were moving towards a flexible remote or mobile working set-up or already had one

Redwood says virtual IT solutions better enable staff who work remotely ldquoHosted managed desktop solutions for example let staff work with the same applications from any device in the world safely and securelyrdquo

But remote working isnrsquot only about enabling the current workforce itrsquos about attracting future talent Redwood says that millennials donrsquot necessarily want to work as their predecessors did ndash they expect greater flexibility in the workplace which at one level can be achieved by remote working facilitated by a managed desktop

ldquoAnd itrsquos not only about attracting millennialsrdquo he says ldquoSME firms with flexible working set-ups are becoming more attractive to experienced legal talent who may be frustrated by the rigidity of their firmrdquo As a firm expands its workforce in this manner firms with virtual IT solutions reap the lsquodoublersquo cost saving benefits of not having to expand their premises or IT infrastructure accordingly

Some firms are resistant to remote working based on hosted IT services believing they arenrsquot secure ndash but Redwood says that argument ldquocan be put to bedrdquo

ldquoFor an in-house IT team to have the level of security that an organisation like ours can deliver is near impossible financially as well as in terms of the

VIRTUALSANITYNigel Redwood CEO at Nasstar talks to LPM about how managed IT can help SME firms achieve competitive advantage by making them more agile and flexible

LEGAL PRACTICE MANAGEMENT40

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

INTERVIEW

level of systems and technologies they deployrdquo Cybercrime is of course a scary and constantly evolving threat but Redwood points out that virtual IT systems have dedicated teams monitoring these threats evolving cyber defences and changing systems accordingly

ldquoThis capability not only makes [firms] a lot more secure but gives peace of mind in terms of compliancerdquo

ONLINE ADVANTAGE Redwood says virtual IT infrastructures donrsquot just pertain to lsquobig lawrsquo but to SME firms as well ndash perhaps more so

ldquoVirtual IT systems are a way for SME firms to stay competitive against their larger

counterparts and ABSs ndash it gives them a greater ability to expand it lets them adopt more flexible and agile models and is easy to budget forrdquo Firms can also expect virtual IT solutions to enable better alignment of IT resources to business needs enhanced usability with anywhere anytime access and in-built business continuity

But the greatest advantage virtual IT offers SME firms over big law is agility Redwood says ldquoBig IT departments in firms can be slow to react cumbersome and held back by the limitations of hardware infrastructure and security issues ndash all of that is removed with a solution like ours and the customer has access to fast-moving agile ITrdquo LPM

ABOUT THE SPONSOR

Nasstar is a provider of managed IT services and tailor-made cloud hosted solutions ndash delivering innovative secure and agile IT to help clients accomplish their business objectiveswwwnasstarcom

Page 7: LPM September 2016

LEGAL PRACTICE MANAGEMENT8

SEPTEMBER 2016IN PRACTICE Follow us and talk to us on Twitter LPMmag

LPM ASKS

QWhy is it important to optimise your career

pages for mobile phones

AThe proportion of people using their mobiles to

access the internet is increasing rapidly Ofcom statistics badge us as a lsquosmartphone societyrsquo with phones overtaking laptops for getting online People are surfing while watching TV or in bed they are banking shopping and accessing social media ndash and they are looking for jobs If yoursquore not optimising your career pages yoursquore losing out on a large potential talent pool

The average attention span is about eight seconds and on a small screen you have to engage quickly Breaking down any barriers for potential candidates is therefore critical Recruitment is competitive and in the legal sector we are often looking for specific skills We canrsquot afford to lose candidates at key touchpoints

Optimising your legal business website for mobile devices sends a message ndash we are a modern firm we are tech-savvy we understand our market and our target audiences We also donrsquot want to discourage potential candidates new graduates or apprentices who could be our future workforce

QWhy do you need to monitor social media as

part of your recruitment strategy

AOur social media channels give us direct engagement

with candidates and they are a powerful tool to promote the brand You need candidates to

SALLY JONESCOO BRETHERTONSAfter speaking at this yearrsquos London LPM conference COO of Midlands and London firm Brethertons answers our questions on recruiting and retaining new talent at your firm

feel the culture of your business through social media so itrsquos important to monitor the interaction of both staff and followers in this very public arena We use social media as part of a multi-channel recruitment strategy ndash to advertise our vacancies get employees to push vacancies to their networks endorse our roles and culture and generate excitement about our opportunities We also use social media to research our candidates ndash it can be a valuable source of information and help us gauge the fit of future talent

QWhat should SME law firms consider when using

a recruitment agency

AThere are a number of considerations

l Do they understand the roles and do they understand the skills qualities and behavioural attributes you are looking forl Do they understand your business your strategies aspirations and plansl Do they understand your values and culture Do they understand the importance of this alongside the technical skillsl Do they specialise Are they generalist How well do they understand your target audience l What is the nature of the contract and what does it include and exclude Is it an exclusive arrangement and what is the period of engagement Will you need to work with other agencies to ensure good coverage of potential candidatesl How will they communicate

with you and what needs to be approved within what timescales

QWhat are some key considerations for direct

recruiting

AWe are all trying to get candidates from the same

small pool and we cast our net as widely as possible to get the best outcome and return We also want every hire to be a long-term success

With direct recruitment you have to be very clear on how you define potential candidates and how you select and contact them Confidentiality and communication are therefore key factors Getting the pitch right and being confident in negotiations are also important We approach direct recruitment for example by advertising on our website on specific websites and on social media We also use our networks and we have a great staff referral scheme in place

QHow do you create a powerful brand to aid

retention

AAt Brethertons we have a dedicated people

programme that goes to the heart of attracting and retaining great people It is about layers of connected

change ensuring what we do makes a difference and that we understand the impact of business change on our employees Brand is about giving people an understanding of who you are and your identity It gives people a sense of belonging and value and the knowledge that their contribution matters

You can keep good people and make employees proud to work in your organisation in several ways But always be clear on their contribution how it is valued how their performance will be managed and measured and how it aligns with your overall corporate goals LPM

LPM COMES TO BIRMINGHAM IN NOVEMBER

Book your place at LPMB 2016 NOW for just pound175+VAT early bird price

Email rikkiclsncoukwwwlsncoukLPMB2016

LEGAL PRACTICE MANAGEMENT9

SEPTEMBER 2016IN PRACTICE Follow us and talk to us on Twitter LPMmag

Now that the UK has voted in favour of Brexit we ask LPM readers ldquoDo SME firms need a plan in place for when the UK leaves the EUrdquo

Want to write us a letter You know that thing no one does anymore You can email us a letter for publication to lpmlsncouk or post us something to LPM magazine 20 Mortlake High Street London SW14 8JN Or get in touch through our LinkedIn group at bitlylpmgroup

Follow LPM on Twitter

LPMmag

NAVEED AHMED HEAD OF IMMIGRATION LAW ASONS SOLICITORSThe uncertainty and far-

reaching implications of the UK leaving the EU undoubtedly exposes SME law firms to greater risks which must be effectively managed Strategic planning at primitive stages of the UKrsquos departure from the EU could very well determine the future viability of many SME law firms Diversification may well be key to prosperity after the break and full service law firms that are engaged in a variety of legal sectors such as employment health education retail intellectual property and financial litigation will be well-placed to navigate the storm

GORDON STARK COOMURGITROYDIn a time of uncertainty it

is better to be prepared ndash having a strategic plan in place is important as is knowing when to act The plan should identify risks but also seek out opportunities Firms may need to make decisions about their future during this protracted period of acute uncertainty ndash knowing when these decisions need to be taken what the options are and what the associated lead times will be to execute them will all be key components of planning

SEPTEMBER 2016IN PRACTICE

ANNABEL HAMPSHIRE MANAGING ATTORNEY STRATAGEM IPMSME law firms are no exception when planning for the

inevitable fallout of a post-Brexit United Kingdom The uncertainty over when the UK will leave the EU and the consequences of legal and structural reform make planning difficult Firms are taking immediate steps to reassure clients as well as educate them about the challenges presented in their specific field For the IP sector changes to protection and exploitation strategy will require careful planning but more immediately a review of contractual obligations may be necessary to mitigate unfavourable or unexpected reinterpretations of terms (resulting from practical effects of Brexit) by any party to the contract

ELIZABETH WEST HEAD OF ORGANISATIONAL DEVELOPMENT REDDIE amp GROSE

In our sector (patent and trade mark attorneys) we compete with EU firms Our European work is a mixture of EU law and other international law but we expect EU competitors to take advantage of the Brexit publicity to try to grab a larger share of that work Our plan includes protecting the revenue stream but wersquove had to put that in place now ndash even before an Article 50 notice is served Wersquod advise all SME law firms to challenge their assumptions about who their competitors are and who they will be after Brexit ndash cheer up and strategise

NICK DAVIS HEAD OF RISK AND COMPLIANCE GEDYE amp SONS

The British governmentrsquos well-made plans may not hit their ideal timetable ndash European leaders will have to try and strike a balance between the wants of the UK the European parliament and the views of their own voters (not to mention their own electoral desires) This is clearly a complicated subject and extends across the areas of law that firms practise and the demographic of their workforces SME law firms need a flexible and constantly evolving plan to be able to advise their staff and clients current or new They also need to be able to demonstrate impartial and accurate views on how any potential changes that come as a result of Brexit affect clients first and them second As part of their plan SME law firms should review any guidance notes issued by the Law Society and the SRA ndash adopting any rules and procedures (particularly relevant would be any change to the General Data Protection Regulation and AML fourth directive) so that their firms are ready and well prepared But a plan shouldnrsquot be overly rigid because itrsquos currently too early to tell what if any impact Brexit will have on UK law

YOURVIEW

LEGAL PRACTICE MANAGEMENT9

Follow us and talk to us on Twitter LPMmag

NOVEMBER 2016

VISIT LSNCOUKLPMB2016CALL RIKKI CLARK ON 0870 112 5058

EMAIL RIKKICLSNCOUK

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THE ONLY EVENT FOR MANAGEMENT LEADERS IN SMALL

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LEGAL PRACTICE MANAGEMENT11

SEPTEMBER 2016IN PRACTICE Follow us and talk to us on Twitter LPMmag

THE WAY TO WHY

BOOK REVIEW

One way of assessing the value of a book like this is by reference to the number of times it makes one think of something it can be applied to in your own career or organisation On that measure

alone Designing the Purposeful Organisation passes with flying colours

At the heart of Wilsonrsquos philosophy is the idea that to be successful organisations must be able to articulate compelling and inspiring reasons for their existence ndash not simply what they do but rather why they do it The usual poster boys for 21st-century business success are quoted as exemplars of this approach - Apple Google Microsoft Reference is also made to Simon Sinekrsquos TED talk (278 million views and counting) and related book Start With Why as a means of uncovering the primary reason for an organisationrsquos existence Indeed a key element of Wilsonrsquos writing style is to send the reader off at regular intervals to take in a TED talk or YouTube video or to reflect in more detail around the topic at hand This does at times make the book feel more like a business coaching session rather than a dry management treatise ndash which for the avoidance of doubt this reader sees as a definite plus point

While the stories around behemoths such as Apple and Google can be compelling I was more taken with the example of the African tax collection agency that Wilson was working with Rather than seeing themselves as taking money from people (the lsquowhatrsquo) he encouraged them to focus on their purpose namely to help fund new schools and hospitals across their developing nation (the lsquowhyrsquo) Articulating the why is also a key element of an organisationrsquos brand proposition Wilson reminds us that customers are more often than not buying why an organisation does something rather than simply what the organisation does Or put another way how many customers would be inspired to have brand loyalty for a firm which simply says that its fundamental reason for being is to maximise shareholder returns

Before anyone starts fulminating about the importance of financial returns Wilson does recognise that results matter However his concern is that they too often become all consuming A key pillar of the book is his belief (which he concedes may be controversial) that overly focusing on results is misguided and can create systemic barriers to better performance Or put more simply results measure our progress to a better future ndash they are not in themselves that better future

This is certainly something that chimed for me as the CEO

of a law firm Yes we all recognise the need to deliver improved financial KPIs However these are simply a means of measuring whether we are delivering value to our clients (given that clients are unlikely to be using and paying for our services where they do not perceive us to have any value) and are unlikely to be the things wersquoll look back on with pride in our dotage

This reassessment of the role of results is also central to one of the key conditions for a more purposeful organisation (and one which will particularly resonate with professional services firms) namely talent liberation Drawing on the work of Daniel Pink on personal motivation (for example Drive The Surprising Truth About What Motivates Us) Wilsonrsquos call is for firms to move beyond transactional performance (pay me X and Irsquoll deliver Y pay me a bit more than X and Irsquoll deliver a bit more than Y) Rather we need to help our people liberate the talent they have by playing to their strengths as opposed to the more traditional performance management model of fixing weaknesses

Wilson focuses particularly on how the proper articulation of purpose can engage millennials Borrowing from Laurence Boldtrsquos Zen and the Art of Making a Living he encapsulates this approach in three short questions What skills and other resources do you have What do you care about Whatrsquos stopping you from pointing A at B

It seems to be that in most law firm management seminars or discussions these days someone somewhere is lamenting the fact that they just donrsquot understand millennials And at last I have an answer for them ndash read Clive Wilson LPM

LPM reader discount ndash use code HRLPMB to get 20 off at wwwkoganpagecom

Designing the Purposeful Organisation How to Inspire Business Performance Beyond Boundaries by Clive Wilson

Publisher Kogan PagePublication date Feb 2015Price pound2999

Reviewer Chris Harte chief executive and partner at Morton Fraser

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LEGAL PRACTICE MANAGEMENT13

SEPTEMBER 2016COLUMNS

Barry DaviesPractice directorDouglas-Jones Mercer wwwdjmlawcouk

BARRY DAVIES PRACTICE DIRECTOR

ROLE MODELS

ABOUT Recent figures show that there are a shade over 130000 people on the roll of solicitors in England and Wales ndash 20 of those undertake an in-house role 80

are classed as employed An enormous number and this is before we consider the significant chunk of employees namely professional managers support staff and those lawyers who are not on the Law Society roll But lots of firms I speak with say lsquowe have too many partnersrsquo or they have reduced the number of lsquochiefsrsquo within their practice as part of their strategic planning

Where are we going with this What will the future firm look like What will its stakeholders (not necessarily shareholders) expect

The two facets that will impact upon the future will undoubtedly be generational attitudes and technology Though advancements in processing power will mean huge growth of AI systems over the next decade I think generational attitudes is the facet thatrsquos most interesting right now

Generation X lawyers (born between the early 1960s to mid-1970s) are often already partners This generation and the baby boomers before them are usually motivated by achievement and money Generation Y lawyers on the other hand (born in the 1980s or 1990s) are looking for something else Fearing that I sound like a textbook ndash specifically Frederick Herzbergrsquos theory of motivation hygiene ndash itrsquos not money thatrsquoll be the key factor in recruiting millennials but other drivers such as networks recognition quality of work and conditions

Developing reward and recognition strategies is

difficult enough for partners ndash so how does a law firm tackle its entire workforce A few years ago I held a discussion with a law firm partner and a question put to me was could the lsquoJohn Lewis modelrsquo fit a law firm This term is not only synonymous with the department store it has become a household phrase

Quite a few law firms have for some time now introduced a corporate partner ndash a limited company ndash as a partner within its practice with the intention of dealing with distribution of profits more efficiently or as part of a bonus pool So itrsquos quite interesting to hear that a highly regarded firm in the south west Stephens Scown has developed a similar model to the John Lewis theme

Whatrsquos different about this example is that a proportion of the firm is owned by a trust for its employees and not just its partners This gives the employees of the firm a greater sense of belonging and the added impetus to do well I am certain that some critics would question the mechanics of such a scheme and perhaps the barriers to entry such as defined profit levels but setting this aside it is a means of boosting staff engagement and eradicating the lsquothem and usrsquo mentality

With complications in all corners of law firm ownership new models will have to be explored to cover aspirations of all involved There could come a time when a crowdfunding option is explored generally and maybe the household name for staff stakeholder mechanisms in law firms will be the Stephens Scown model LPM

LEGAL PRACTICE MANAGEMENT14

SEPTEMBER 2016COLUMNS

In the April issue of LPM Stepien Lakersquos practice director Richard Hill brilliantly spelled out what to look for when trying to spot a lsquowhalersquo or big lsquophishrsquo ndash a situation where an

individual or firm is targeted researched and then duped into sending money to a cyber attacker

But just as awareness is essential so too is preparedness I thought it might be helpful to share some of the practical considerations that will help keep client funds safe (a requirement of principle 10 in the SRA handbook) including some things wersquove done in our firm in response to these very real threats

Perhaps the most feared event among all law firms is the very well-publicised lsquointercepted emailrsquo (dubbed the lsquoFriday fraudrsquo) But would we be surprised by just how many firms lawyers and clients freely provide bank details within the body of text in an email

This is an area where we recently tightened our procedures and introduced an explicit rule all bank details provided by a client especially in any email communication must be verified by a lawyer (by reconfirming those details with a person they know) The lawyer then signs to say that they have checked them

This has produced some unexpected benefits particularly for one client who provided bank details to us within the body of an email for remitting the proceeds of sale for his family business of pound32m When the lawyer contacted him to verify that the bank details were correct the client realised that he had transposed two numbers

Clearly this is a serious education piece not only for those responsible for finance and the lawyers within the firm but externally for the firmrsquos clients

There are a number of practical points to bear in mind when it comes to day-to-day security matters how do your lawyers communicate the client account details to its clients and do you always attempt to obtain client details for the remittance of funds at the start of the transaction for instance

Additional considerations might be when did you last review any bank payment elements in your email disclaimers terms of business and client care letters Is your payment procedure well-defined and documented (not just the finance element but also those relevant to clients and lawyers) And do you use any law firm identification checklists

These important issues should remain on the agenda so that theyrsquore constantly in colleaguesrsquo minds with regard to maintaining safe and efficient practices

There are some excellent resources available from your bank that can help to educate your colleagues and there are so many simple steps we can all take to make people aware of the problem Have you tried sending a few test phishing emails to individuals within the firm for

GLYN MORRIS FINANCE DIRECTOR

ABOUTexample to see how they respond

But what then If you are confronted with the metaphorical warning cry of lsquothar she blowsrsquo how will you and your people react You may need to have created a well-communicated process for dealing with a phishing incident

The 1851 classic Moby Dick tells the story of one manrsquos obsessive quest for revenge on a giant white whale ndash we might want to take just a hint of Ahabrsquos obsession in our approach to tackling the issue of cyber attacks Although if we can avoid the whale in the first place all the better LPM

THAR SHE BLOWS

Glyn MorrisFinance director Higgs amp Sonswwwhiggsandsonscouk

0800 328 0272 | wwwarchivestoragenet

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LEGAL PRACTICE MANAGEMENT16

SEPTEMBER 2016COLUMNSSPONSORED EDITORIAL

DOUG HARGROVE THE TECHNOLOGIST

DISRUPTION TO GO

ABOUT Change isnrsquot anything new itrsquos just another word for evolution But lsquodisruptionrsquo is certainly one of the words of the decade and one that is

usually connected to revolution ndash a significant alteration to the status quo and one that has far more immediate impacts

Disruption is also the go-to word for business commentators ndash especially when it comes to lsquodisruptive techrsquo ndash talking about new business start-ups or innovations Take the very latest craze to hit the headlines ndash Pokeacutemon Go has seemingly gripped the world these last few weeks with stock valuations heading skyward and comments about the app lsquodisruptingrsquo mobile gaming But therersquos nothing disruptive about the game it takes and utilises technology thatrsquos been around for nearly a decade (geolocation and augmented reality) and applies it in a new way Itrsquos that application of technology thatrsquos causing the disruption

Businesses like Uber and Netflix have built compelling business models on the groundwork of technology that is now pervasive (the smartphone and broadband internet respectively) Therersquos a lot here that firms can learn from itrsquos not necessarily about inventing new technology but about finding ways to use existing technology to create a new approach

So what opportunities are there for law firms to disrupt This can be looked at in two ways ndash disruption to the existing law firm business model and disruption to the user experience The first scenario has already been covered at length and is nothing new for the legal market there are already plenty of law firms out there

looking to change the way a law firm delivers its services to its clients and prospects ndash from franchise models to virtualised law firms Disruption to the law firm business model has been an ongoing force ever since the term ABS became associated with legal practices

The second scenario is a different matter It seems legal clients have been patiently waiting for the lsquodisruptive service deliveryrsquo model to come and there is plenty of opportunity out there for firms to position themselves differently with the modern consumer of legal services

Take a brief example of where old (or rather existing) technology can be used to differentiate ndash videoconferencing Itrsquos a fairly ubiquitous piece of technology thanks to the rise of Skype Facetime and the webcam which gives an instant user experience and a one-to-one connection that bridges the remoteness of a phone call and the need to travel for a meeting It doesnrsquot take much of a leap to imagine a service that allows consumers to access a lawyer instantly using this technology (maybe even a concept that combines the franchise model with an Uber-style app ndash connecting clients to the next available expert from a selection of associated law firms) The point is you donrsquot have to invent something new to be a disrupter ndash donrsquot be afraid to take existing technology and repurpose it to gain a competitive advantage

There are plenty of consumers of legal services who are willing to try out a new service or offering in the search for that great new experience ndash and for those law firms prepared to take the risk and disrupt there really is an opportunity to catch lsquoem all LPM

Advanced LegalRevolutionary solutions for legal services Contact Doug on 01476 573 718wwwadvanced-legalcouk

Advisory

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LEGAL PRACTICE MANAGEMENT18

SEPTEMBER 2016COLUMNS

JANINE PARKER THE BROKER

WHAT PRICE EXCLUSIVITY

Itrsquos that wonderful time of year when the annual bombardment of brokers begins on your never-silent telephones All of them can ldquocarry out a full market exerciserdquo for you that will of course save you money

But whatrsquos the reality The marketplace is still murky and as a profession we donrsquot help ourselves by keeping it opaque So letrsquos objectively consider many of the claims brokers make attempt to clarify the true mechanics behind the market and consider how to best utilise it for the benefit of your firm

Since 2000 and the demise of the Solicitors Indemnity Fund competition for solicitors professional indemnity has increased This hasnrsquot always been generated through the number of insurers but the ever-increasing number of brokers who purport to be experts in this very niche area of insurance This has increased pressure on insurers to lower prices (a good thing for clients up to a certain point) but this pressure combined with some extreme economic factors has contributed to many insurers withdrawing from the market over the past decade

Competition is good for consumers and it encourages innovation to make sure that brokers and insurers can differentiate themselves by developing their product offering

Some brokers organise lsquoexclusiversquo arrangements with insurers often segmented by the number of partners within the firm ndash which is a very artificial way of dividing up the profession But this is the marketplace wersquore in today and itrsquos worth looking a little closer at these lsquoexclusivesrsquo

All the direct access points are listed in the Law Society buyer guide and in practice itrsquos only a handful of brokers who actually hold the exclusive with direct access to the underwriters It is essential to note that these exclusive agreements are not always lsquotiedrsquo arrangements The broker is not bound to place all their business with their one exclusive insurer and itrsquos often the case that those brokers who hold the exclusive arrangement also enjoy strong relationships with the open market insurers

To increase distribution brokers who hold exclusive arrangements will offer access to other brokers who wish to take advantage of the exclusive products available These brokers donrsquot have their own facilities There are many commercial reasons for opening an exclusive to other brokers but itrsquos important to note that the extra broker in the chain will dilute your relationship with the placing broker and ultimately your insurer Marketing materials can often be unclear as access to exclusives is readily used ndash but in reality these brokers will be approaching another broker to do this

Often law firms will be unaware of the number of brokers in the chain and will unwittingly be paying additional brokerage and fees unnecessarily Direct access allows for better communication between your firm and insurers which can often lead to more competitive pricing Removing a broker from the chain can lead to the process of claims handling being more efficient and effective as there are less obstacles in the chain of communication

In summary no one broker has direct access to every insurer and it is possible to approach more than one broker and not be at risk of flooding the market If using more than one broker be clear who you would like them to approach and be aware whether they have to go through another broker to ultimately reach the insurer LPM

ABOUT

SPONSORED EDITORIAL

ParagonBetter broking for legalContact Janine on 020 7280 8200wwwparagonbrokerscom

LPMLEGAL PRACTICE MANAGEMENT

SUPPLEMENT SEPTEMBER 2016

BUSINESS INFORMATION FOR EVERYONE IN PRACTICE MANAGEMENT

LPM INSIGHTS

Sponsored by

How do SME law firm management leaders see the future

LEGAL PRACTICE MANAGEMENT20

SEPTEMBER 2016LPM INSIGHTS

ALL CHANGE

22WHATrsquoS NEXT We analyse the 2016 LPM conference polling data

2 1 COMMENT Accesspointrsquos Richard Roebuck on legalrsquos increasing digital dangers

Change and transformation are words that strike fear into the most hardened of legal management hearts because they are hard to do and even

harder to make stick But change must happen inside todayrsquos SME law firms to make sure they stay in business in tomorrowrsquos world

At this yearrsquos Legal Practice Management conference in London we polled our audience of law firm management delegates on a range of topics Some questions wersquove been asking since our first LPM conference back in the misty era of 2012 Much has changed in the world since then (new UK governments drones are now lsquoa thingrsquo Donald Trump) but legal not so much The rise of the ABS has been slow (though impactful) and the recession has for many businesses faded into a distant memory compared to the Brexit debate

But SME law firms rightly smell a real need for change in the wind ndash and perhaps though they seem to find it hard to name that change the clues are legion Letrsquos find some

LPM London 2016 delegates named the greatest hurdles to their firmsrsquo growth or further success as lsquoacquiring high-quality staffrsquo and the lsquoinability to create change within the firmrsquo Might the solution to one lie in the other Great talent wants to flock to fresh and vigorous businesses and younger legal eagles are increasingly shy of throwing their lots in with the fusty world of partnership Law firm leaders must look at how their businesses are run and who runs them and how people work if they are to attract great people ndash and in doing so they will create the change they seek

Herersquos another 52 of delegates named lsquoclient pressures on costrsquo the factor thatrsquos having the biggest impact on the SME legal market ndash but when asked how important price is when winning business 67 said itrsquos just lsquoone of a range of important factorsrsquo while 21 said itrsquos lsquonot as important as other things such as relationshipsrsquo This is a disparity I canrsquot quite understand but it doesnrsquot sound like the SME legal market truly gets the shift thatrsquos happening on the client side and how much change needs to happen inside firms to meet this challenge

Read on and come to your own conclusions but I think the clues are now becoming obvious I hope your firm sees them too LPM

Rupert Collins-White editor-in-chiefLPMmag | rupertwlsncouk

You donrsquot as the song goes need to be a weatherman to know which way the wind is blowing in the legal market ndash but just because the clues are there doesnrsquot mean you can be complacent about acting on them

CONTENTS

FEATURES

LEGAL PRACTICE MANAGEMENT21

SEPTEMBER 2016LPM INSIGHTS

MORE TECHMORE SECURITY

INTRODUCTION TO THE RESEARCH FROM OUR SPONSOR RICHARD ROEBUCK MANAGING DIRECTOR ACCESSPOINT

After a recent period of uncertainty it would now seem that most firms are confident about their future especially in light of Brexit Whatrsquos also certain is

that most firms are very conscious that to compete they will need to change and adapt themselves for the challenges ahead

With growing concerns about the lack of high-quality people available and what appears to be a reliance on quality individuals driving more lucrative fee-earning work is it time for a gear change

Perhaps the dawn of high-volume low-margin fixed fee work which many firms feared has now arrived As always with change there are challenges to be faced but for those clever early adopters there lies opportunity Making light of the more process-driven tasks and finding more effective efficient ways of completion to deliver client-facing benefits seems key to the wider future of the fixed fee legal landscape

With the growing acceptance of cloud technology and the increasing introduction of new software applications and solutions the legal world has moved on at an improved pace this past couple of years And the world is now clearly keen for more ndash to satisfy its desire for a more accessible and mobile working environment What is key for this trend is that the lsquoquality of the deliverablersquo has an ongoing programme of improvement that benefits both the firm and its clients

As progress pulls us forward there will always be elements arrayed against us Alongside the opportunities hiding in the polling from LPM this year therersquos also a sense of fear and concern around possibly the biggest threat to risk and security there is right now ndash the dark byproduct of technological success cybercrime

Cybercrime is fast growing with ever more complex attacks making headlines It is now one of the most common criminal offences in the UK An increasing number of individuals are exploiting the speed and anonymity of the internet to commit a wide range of criminal activities having no conscience and knowing no borders

It isnrsquot our fault websites get hacked but poor internet safety habits can put us at risk Reusing passwords or using weak passwords make us easy targets for identity theft Remembering multiple passwords can be a pain but there are web services and associated applications that can help such as two factor authentication quality mail management systems URL threat protection and mail encryption

For many firms the biggest threats tend to be by way of the ever-open door into our networks and devices ndash email

Our eagerness to respond almost instantly to emails throughout what will be for most an already pressured day is perhaps the dominant daily activity to foster an unwanted lapse in security In the past 18 months alone I have seen three firms that were truly caught out ndash some with the potential for significant financial penalty by opening email attachments The most common lsquogotcharsquo is an email that appears to have come from the office scanning platform whereby the email address has been cleverly spoofed to appear legitimate (for example downstairscopiermyfirmdomaincouk) There are so many existing and newly circulating threats of this calibre and type that even the most aggressive of filtering systems struggle to keep up

Do you know the name(s) of your copiers and the associated email addresses Do you stop to think before opening the innocuous Word attachment ldquoDoesnrsquot our scanner usually send PDF files Why has a covering note not been included with the attachmentrdquo Stop think and call for advice

Another infamous scam is the spoofing of email addresses of key people within your firm ndash for example an email to the head of accounts appears to be from the senior partner ldquoPlease send pound17000 to account X at your earliest convenience and confirm once processedrdquo it says Stop ndash is this your agreed process

As the demand grows and we extend our reach out into the online world so cybercrime advances ever closer seeking unauthorised access through our front door Quite clearly online is the future but we need to embrace it with the necessary skill sets and processes in place for our convenience wellbeing and prosperity LPM

There are so many existing and newly circulating threats of this calibre and type that even the most aggressive of filtering systems struggle to keep up

Accesspoint are independent legal IT specialists who consult on a variety of information technology-related issues offering the best in IT solutions to help firms work more effectively

Contact Richard and the team on 0203 189 2645wwwtheaccesspointcouk

LEGAL PRACTICE MANAGEMENT22

SEPTEMBER 2016LPM INSIGHTS

SME law firms are in a battle for survival Whether they know it or not they have huge challenges to face in the next few years ndash around succession planning technology replacing lawyers and being

used by competitors to attain a competitive edge and catering to clients who increasingly want cost predictability transparency and availability

These market pressures were addressed at the LPM conference in May 2016 which was attended by over 100 delegates all SME legal management leaders The delegates were polled on the day about what they thought of the pressures facing them and how theyrsquore planning to overcome them ndash and their answers provide valuable insight into the SME legal market

The polling results show that LPM conference delegates were aware of the severity of the challenges they face Three-quarters of legal management leaders we polled at the 2016 LPM conference thought that the challenges theyrsquoll face in the next five to 10 years will be lsquomorersquo or lsquomuch morersquo serious than in past years And 58 of delegates thought that the challenges in the next year to two years will be lsquomore serious than in past yearsrsquo

How they will face these challenges depends at least partly on attitude ndash whether they believe they can win or will eventually lose the war Fortunately most LPM conference delegates were optimistic about their firmsrsquo futures - 81 were either lsquocautiouslyrsquo or lsquoveryrsquo optimistic about their place in the legal market of the future

This doesnrsquot necessarily suggest that theyrsquore confident in the market overall particularly after the market instability brought by Brexit Legal management leaders might believe their firm is the only one thatrsquoll survive due to expertise in a particular area or niche In any case it indicates market confidence and a confidence in the ability of their firm to compete and succeed

But is this optimism misplaced in a market where the future is increasingly uncertain and competitive Are firms really ready for change on a huge scale as their confidence might suggest What are the issues currently keeping SME legal leaders awake at night

In this report LPM shines a light on the SME legal market through the eyes of our legal management leader audience ndash those driving their firms through an uncertain new world

WHATrsquoS NEXTChange is on the agenda for LPM firms but how to address the biggest challenges and which ones to face first is a tough call finds Patrick Wingrove

More serious than in past yearsMuch more serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch less serious than in past years

51

14

8

3

24

More serious than in past yearsMuch more serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch less serious than in past years

How would you rate the challenges your firm faces in the next five to 10 years

More serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch more serious than in past yearsMuch less serious than in past years

58

17

6

0

19

More serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch more serious than in past yearsMuch less serious than in past years

How would you rate the challenges your firm faces in the next year to two years

What is the greatest hurdle to your firmrsquos growth or further success

What is the greatest hurdle to your firmrsquos growth or further success

LEGAL PRACTICE MANAGEMENT23

SEPTEMBER 2016LPM INSIGHTS

TIMES THEY ARE A CHANGINrsquo The overriding theme of the 2016 LPM conference was change ndash how firms can implement it the drivers behind it and the various blockers to it But the first step to change is gauging which factors will have the biggest impact on the legal market Just over half of legal management leaders we polled thought client pressures on cost like demanding fixed fees will have the biggest impact while just over a quarter thought it will be competitors attaining a market advantage using technology

How quickly do firms need to respond to these oncoming market pressures Well 86 of LPM conference delegates thought that change needs to happen in their firms within the next two to five years But 14 said that their firm doesnrsquot need to change significantly perhaps because theyrsquove beaten the rest to the punch their legal business is somehow immune to new pressures ndash or they have their heads in the sand

Legal has traditionally been resistant to change and itrsquos not surprising that some firms still are says Sean Stuttaford COO at Essex firm Thompson Smith and Puxon (TSP) and 2016 LPM conference delegate ldquoThere are still firms out there where partners donrsquot have computers on their desks ndash theyrsquore stuck in their ways and just point blank refuse to

52 26 5 12 5

develop their business for the futurerdquoBut legal management leaders willing to implement

change may still find it difficult as 60 of LPM conference delegates polled thought that lsquochange isnrsquot really understood at their firmrsquo

GROWING PAINSJust over a quarter of LPM conference delegates also thought that an inability to create change within their firm would be the greatest hurdle to the businessrsquos growth or further success ndash though Stuttaford at TSP suggests voters might have blamed the traditional partnership business model for the same reason

But acquiring high-quality staff was considered to be the greatest hurdle for growth or success by 36 of delegates Rebecca Patterson HR manager at Kent firm Thackray Williams and 2016 LPM conference delegate says that she agrees with this result ldquoOur firm has a particularly tough time finding quality support staff ndash we could perhaps stand to invest more in competency frameworks and performance management and training opportunities to aid recruitment and retentionrdquo

William Robins operations director at lsquodistributedrsquo firm Keystone Law and a 2016 LPM conference speaker says

12 36 27 13 12

Lack of fundsAcquiring high-quality staffInability to create change within the firmTechnologyThe traditional partnership business model

Out of these which factor is having the biggest impact on the SME legal market

Client pressures on cost (eg fixed fees)Technology creating advantage for competitorsConsolidationDifficulty in finding routes to growth (eg funding)Something else

What is the greatest hurdle to your firmrsquos growth or further success

LEGAL PRACTICE MANAGEMENT24

SEPTEMBER 2016LPM INSIGHTS

offering a more flexible remote or mobile working set-up for everyone in a firm is an excellent way to attract talent (Keystonersquos model of course is founded on remote working) Perhaps the majority of legal management leaders polled at the 2016 LPM conference agree since their firms have either adopted a flexible remote or mobile working set-up are planning to adopt one or are considering adopting one ndash though there are other advantages to remote working such as reducing overheads In any case the results indicate that the SME legal working landscape is becoming considerably more flexible

But remote working doesnrsquot work for everyone Mary Mocklow CEO at West Midlands firm Talbots Law and 2016 LPM conference delegate says that their high-street set-up wouldnrsquot allow it ldquoThe majority of our staff are client-facing and need to be present at the office ndash and while there are other staff at Talbots that might benefit from remote working you canrsquot have a policy for one and not for allrdquo

CYBER THREATSTechnology was clearly a significant concern for legal management leaders who attended the 2016 LPM conference Patterson at Thackray Williams says some firms have had a hard time finding software that caters to their needs as a business and an LPM conference poll seems to back this up just under half of legal management leaders polled at the conference thought project teams should write law firm software indicating a desire for cross-department input into its creation But the poll also indicates that legal software providers have to a large extent been meeting their clientsrsquo needs

The rising threat of cybercrime was also a clear concern for LPM conference delegates ndash 92 of SME legal management leaders said their firms have cyber risk on their management meeting agendas Stuttaford at TSP says ldquoItrsquos something firms need to be constantly aware of and take precautions against not just by purchasing good firewall and antivirus software but by educating staff about password discipline authentication processes and suchrdquo

32 18 14 33 3

Is cyber risk on your management meeting agenda

92

5 3

Yes No Dont know

Is your firm moving to a more flexible workingremote or mobile working set-up for everyone in it

YesNoConsidering itWe already do itDont know

LEGAL PRACTICE MANAGEMENT25

SEPTEMBER 2016LPM INSIGHTS

PRESSURES AND PRICINGClient pressures on cost was also a major concern for legal management leaders polled at the conference so it may not be surprising that just over half of them said 50 or more of their firmrsquos work is some form of fixed fee This doesnrsquot necessarily suggest that the other half arenrsquot open to the concept of fixed fee ndash Mocklow at Talbots points out that fixed fees work for certain types of work ldquoHigh-street firms like Talbots can benefit greatly from fixed fees which is why 75 of our work is fixed fee but itrsquos more difficult to apply to firms that specialise in something like admiralty lawrdquo

The industry seems to think that the value of service has been lost to the price obsession in some areas but not in others ndash and while pricing is clearly a vital issue for SME firms 88 of legal management leaders polled at the LPM conference thought that itrsquos lsquoone of a range of important factorsrsquo or lsquonot as important as other thingsrsquo Patterson at Thackray Williams says that maintaining a good relationship with clients is often more important than pricing though pricing can be a means to achieving client satisfaction ldquoIt also depends on the client ndash in something like conveyancing first-time buyers might be looking for fixed fees or the cheapest price but for commercial clients that may not be as important as reputation or relationshiprdquo

TREASURE MAPPINGLegal process mapping often used by lsquobig lawrsquo and making inroads into SME legal could potentially make SME firms a great deal more efficient and therefore more competitive Two-thirds of legal management leaders polled had heard of process mapping and 79 thought that it is relevant to the business of law Stuttaford at TSP says he agrees ldquoFirms should look at their processes learn from them and figure out how to improve those processes ndash this question really made us look at what TSP has done so far in terms of what legal processes wersquove mapped and whenrdquo

To sum up LPM conference delegates were aware of the challenges that face them but were mostly optimistic nonetheless This may be because they know they need to change and in spite of the fact that change isnrsquot really understood at their firms are planning to mend their ways to meet future market pressures ndash generally putting the client first while keeping talent and technology high on their agendas LPM

Are aware of this thing called legal process mapping

66

34

Has the value of service been lost to the price obsession

23

23

54

Yes No Depends on the service Dont know

Yes No

How important is price in winning business

8

4

67

21

CriticalMore important than almost all factorsIts one of a range of important factorsNot as important as other things such as relationshipsIts one of the less important things in reality

What is the greatest hurdle to your firmrsquos Are aware of this thing called legal process mapping

LEGAL PRACTICE MANAGEMENT27

SEPTEMBER 2016COLUMNSSPONSORED EDITORIAL

Welcome back LPM readers ndash the new school term has started summer is (pretty much) over and the UK is back in full throttle after the summer break And what a break itrsquos been at

File Queen HQ (wersquove taken the time to get our clients up and running with augustprojects as well as started our new Instagram feed filequeenadds)

With the start of the new learning year wersquore focused on the education of you lovely LPM readers ndash with our attention turning back to the General Data Protection Regulation You may remember that in our last LPM article we ran through the 12 steps to tackle the GDPR helped by the awesome people at the Information Commissionerrsquos Office ndash wersquove provided a link to their 12-step resource via our website wwwarchivestoragenetnewsgdpr

Over the next three columns wersquoll be taking these steps and breaking them down for you ndash starting with step one awareness The File Queen (myself) and the team at ADDS have been promoting this step as the most important for all legal practices

ldquoWhyrdquo we hear you holler Well this step is the all-important life raft that unites your practice and team members to help you in the GDPR fight for survival (dramatic I know)

Getting the team on board ndash this buy-in needs to include all ranks of staff ndash from the managing partners to your suppliers But how do you do this Well here are some File Queen tips for when we at ADDS are rolling out projects

Lunch and learn ndash with a register People love to eat and be social so get your legal business to book in a couple of lunch and learn sessions Donrsquot limit this to one date ndash you must run at least two or three so people have the option of which dates to attend Make sure you make a register for those that actually turn up (we all know a calendar acceptance doesnrsquot mean theyrsquoll actually appear) This will allow you to chase down the members of the team you need to get on board for the next one

Have some decent sandwiches nibbles and soft drinks and give the team an overview of the GDPR Run through the 12 steps and make sure you educate them on why everything is so important (make sure you mention the increased fines and audits) During this time let the team know that there are several steps along the way that yoursquoll need their help and support for and which you wonrsquot be able to achieve on your own Tell them that the businessrsquos reputation and brand is on the line and that you need everyone on board to lend a helping hand and spread the word

Another great File Queen tip at this stage is also to get some additional funding from the practice manager for a wine and quiz night at the end of the lunch and learn periods This can be part of your social gathering on a Friday straight after work ndash with some more nibbles and wine Assign people to teams and have a GDPR quiz The winning team gets an award and everyone has fun and learns at the same time Follow our twitter feed as wersquoll be tweeting some great questions to ask thefilequeen GDPRQUIZ

We know itrsquos a lot to organise but there are only four months left in 2016 and GDPR practices must be in place by 25 May 2018 And believe me when you have to roll out rather hard core legislation you have to make it fun and interactive to get people on board LPM

ABOUT

NATASHA RAWLEY THE FILE QUEEN

EDUCATING YOUR PROS

ADDSSaving firms from paper hellContact Natasha on0800 328 0272wwwarchivestoragenet

LEGAL PRACTICE MANAGEMENT28

SEPTEMBER 2016FEATURES

28

Patrick Wingrove talks to the founders of Proelium Law about their work providing legal advice in high-risk environments and conflict zones and the challenges of setting up shop in a new and risky area of law

Legal commandosProelium

Compared to the day-to-day lives of Proelium Law founders and partners Richard Stephens (above left) and Adrian Powell (centre) the average lawyer leads a pretty humdrum life Though UK-based the

firm has a strong international focus ndash Stephens and Powell regularly travel to provide legal and business advice to companies and individuals in high-risk professions or working in hazardous environments across the globe including conflict zones in Iraq Syria and Afghanistan Powell says that itrsquos a challenging but exciting area of law to be in and that ldquono two days are ever the samerdquo

The firm was established as an ABS in November 2015 allowing Powell and Stephens to operate as partners although Stephens isnrsquot a lawyer Powell qualified as a solicitor in 2004 after spending 11 years of his career in the British army and post-2006 worked on various high-risk projects around the world ndash giving him the inspiration for Proelium He says ldquoThe idea came to me in Baghdad in 2009 while working for a private security company as a legal adviser ndash I thought lsquoWhy isnrsquot there a firm doing thisrsquo But I soon realised that I needed someone on the ground who wasnrsquot a lawyer to help make it happenrdquo

That person was Stephens He previously served in the Royal Marines worked as a Whitehall-based strategic planner for the UK government and commanded a special operations regiment (which is why we couldnrsquot show you his face but itrsquos a nice issue of LPM) He now works primarily on the business development side of Proelium ldquoJoining Adrian who Irsquod previously worked with on projects around the

LAW FIRM PROFILE

LEGAL PRACTICE MANAGEMENT29

SEPTEMBER 2016FEATURES

world at a firm meant I could do fascinating and important work with the credibility that being a partner in a regulated business providesrdquo he says

Their work has certainly been interesting Proelium has cast its net far within the niche high-risk sector ndash advising UK-based service providers on the complexities of working in hostile environments conducting business and human rights due diligence and ensuring anti-money laundering counter terrorist-financing and anti-bribery compliance for companies intending to run in high-risk areas or conflict zones to name a few Recently theyrsquove also been working on developing capability for national intelligence organisations overseas ndash but for fear of being jailed for treason Stephens and Powell didnrsquot elaborate hellip

Powell says that the challenges companies face in these areas are numerous ldquoTherersquos a real technical knowledge in understanding how organisations physically work overseas These companies are good at what they do but that doesnrsquot necessarily translate into being business-savvy when it comes to operating in frontier markets ndash thatrsquos where Proelium adds valuerdquo For example after a client was recently exposed on an arms deal they were able to quickly discern liability and ensure that all necessary agencies and departments were appropriately informed

Powell and Stephens joke about how theyrsquore the number-one firm in their sector ndash admitting that to their knowledge theyrsquore the only firm that specialises in this area of law They added that itrsquos an untapped niche in which Proelium will be a pioneering force but which has also recently come onto the radar of a larger firm Theyrsquore alluding of course to Proeliumrsquos recent venture with Harrison Clark Rickerbys ndash a joining that combines Proeliumrsquos experience working in high-risk jurisdictions with the manpower and existing defence and security expertise of

HCR Powell says ldquoWhat they donrsquot have is our connections and our experience They like the idea of the sector because they see it as an interesting area and the partnership will allow us to offer a wealth of different legal services while letting us focus on what we do bestrdquo

As part of their ambitions for Proelium Powell and Stephens are keen to train a new generation of lawyers whorsquoll specialise in the high-risk sector ldquoWe have confidence in what the younger generation has to offer and we want them in our industry to continue our work in this relatively untapped areardquo says Powell Stephens adds that itrsquos also a matter of succession planning ldquoWe want the firm to operate long into the future but we donrsquot necessarily want to be running it ourselves for the next 20 yearsrdquo Proelium currently employs two interns as part of this commitment including University of Surrey law student Ruby Jamieson (pictured) She says ldquoWorking [at Proelium] has given me loads of insight already ndash itrsquos very niche

very new and Irsquove really enjoyed helping develop the business I feel that itrsquoll open a lot of doors when I graduaterdquo

In terms of expansion Proelium has recently opened a new office in the City of London Powell says that his home was originally the firmrsquos practising address but a large portion of their client-base is in London ldquoand we couldnrsquot keep having our meetings in coffee shopsrdquo

But Powell and Stephens are firm believers in the concept of remote working which works particularly well for their business

ldquoMost of our clients are either in London or outside the EU so Irsquom always away but all my phone calls are redirected from the new office to my mobile so I can keep in touch with clients whether Irsquom in Dubai or Baghdadrdquo says Stephens Powell adds that he feels remote working has the added benefit of keeping staff happy by letting them work from home which he says certainly makes him more productive as a fee earner

Proelium isnrsquot looking to expand into areas it has no interest in like family law but theyrsquore taking a keen interest in the emerging area of cyber law and are considering taking steps into that world ldquoLike high-risk law no onersquos really wrapped their arms around cyber law yet Therersquos cyber law in the US but it doesnrsquot exist per se in the UK except in terms of data protectionrdquo

When asked what advice they could give to SME firms based on their unique experiences in their sector Powell and Stephens said firms should know the areas of law they practise inside and out Powell says ldquoWersquore concerned with being experts in our field ndash a lot of our clients have peoplersquos lives in their hands and are not in the business of nonsense which is why they come to us We give sound researched legal advice based on experience and if we donrsquot know something we send the client to someone who doesrdquo LPM

ldquoCompanies are good at what they do but that doesnrsquot necessarily translate into being business-savvy when it comes to operating in frontier markets ndash thatrsquos where Proelium adds valuerdquo

Proelium

Two fee earners four total staff

Offices City of London Wirral Cheltenham

Specialisms International criminal commercial and conflict law due diligence sensitive investigations

LPM FACT FILE

ldquod2u is the UKrsquos number one outsourced transcription service for medical and legal professionals and highly competitive all over the world We pride ourselves on saving our clients time and money as well as offering state-of-the-art security and a first-rate servicerdquo Daryl Leigh CEO dictate2us

LPM magazine has agreed a special deal for its readers with dictate2us ndash 5 off your monthly

transcription bill for one year if you sign up through the dedicated LPM link or call and quote LPM2016 when signing up You can trial the service for free before committing

CUT COSTS INCREASE EFFICIENCYAll firms could benefit from outsourcing transcription to dictate2us ndash but even more so with our LPM deal 5 off your first year

wwwdictate2uscomlpm

Use d2u and enjoy the benefits ofbull Fast turnaround timesbull Secure and confidential servicebull Secetarial cost reductions of up to 60bull Guaranteed 985 minimum accuracybull iPhone Android and Blackberry apps with one-hour turnaroundbull 100 output - only pay for the time you talkbull Free no obligation trial

This special LPM magazine reader deal only relates to customers that execute an agreement for a minimum term of 12 months with a minimum monthly commitment of 500 minutes LPM magazine sought two law firm references for dictate2us to verify its claims for quality and delivery The 5 deal only applies to the first paying year the customer is with dictate2us LPM magazine is not responsible or liable in any way for work done by dictate2us and is an advertising referrer only

d u2 dic t a t e 2 u s

SPECIAL READER OFFER

The d2u Transcriber app is free to download from Apple and Android app stores and BlackBerry App World

OFFER 5 OFF

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WHEN CALLING

LPMLEGAL PRACTICE MANAGEMENT

LPMLEGAL PRACTICE MANAGEMENT

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LEGAL PRACTICE MANAGEMENT31

SEPTEMBER 2016FEATURES

Patrick Wingrove speaks to management leaders from SME and top 100 law firms that have recently achieved significant growth to find out how to go from acorn to oak tree

FROM MINNOW TO

For many SME firms growth is the goal ndash but it doesnrsquot have to happen in the ways that many have scaled in the past The era of organic slow quiet steady partnership development over decades is

increasingly at odds with a fast-paced digital world Strategies for growth in the legal market are now closer than ever to the rest of the business world ndash and any size firm can learn how to do it

Big or small there are similar tools in the box for making growth happen and similar challenges Lessons abound but some of the best can be taken from those firms not far outside the famous lsquotop 100rsquo legal businesses in the land ndash those that have already grown up and now have the top tier in their sights There are also lessons to draw from smaller but rapidly scaling law firms

There are many growth strategies for organic and acquisitive growth ndash and no easy answer for which is right for your firm To shine a light on the subject wersquove spoken both to SME and top 100 firms about growth and how to do it (and importantly how not to do it)

MAMMOTH

LEGAL PRACTICE MANAGEMENT32

SEPTEMBER 2016FEATURES

MODELS OF GROWTH According to the Lawyer the two fastest growing firms in the top 200 this year are Midlands-based Knights and lsquodistributedrsquo firm Keystone Law ndash currently placed 119 and 122 in the 2015 UK 200 rankings but whose revenue will now put them well inside the 2016 top 100 (due for release October 2016) Both attribute their growth to non-traditional business models ndash and very different non-traditional models at that

Knights corporatised in 2014 to remove the barriers from its decision making processes which CEO David Beech says has been the key to its growth ldquoEquity partnerships donrsquot grow particularly quickly because itrsquos hard to achieve consensus and make decisions that enable fundamental or rapid growth among equity partnersrdquo

Knights acquired Oxford-based Darbys earlier this year ndash a move largely behind the revenue increase that will put them in the top 100 ndash and completed the transition inside three months which Beech says would have been next to impossible under their old business structure ldquoNot only was a quick turnaround good for the books it saved significant time and money that could be invested elsewhere in the businessrdquo he says

Top 100 firm Simpson Millar is one step

ahead of Knights The firm broke the glass ceiling to become a top 100 firm in 2015 and like Knights the firm attributes its growing success to corporatisation ndash but in a different manner

It sought to be and was eventually acquired by PLC Fairpoint Group in 2014 Simpson Millar continues to run as an LLP under the same management team and existing trading brands but as a business unit within Fairpoint

Managing partner Peter Watson says that one of the key reasons to pursue this particular growth strategy was to provide an injection of capital for MampA ldquoWe completed the sizeable acquisition of Colemans last year for example which we were only able to do with considerable investment from Fairpointrdquo

Being part of a PLC has also given the firm access to strong MampA and project management capabilities ldquoAcquiring Colemans doubled the business overnight ndash for something like that you need strong MampA experience and access to that team within Fairpoint was crucial in getting the deal across the linerdquo says Watson Simpson Millar also built a strong digital strategy launched new products and focused on pricing ldquoCall it fixed fees or packaged fees the point of it was to say to consumers

Square One Law

Revenue pound5m

31 fee earners 53 total staff

Offices Newcastle-upon-Tyne

Specialisms Commercial corporate property employment EU and competition law finance litigation private client

LPM FACT FILE

Knights

Revenue pound40m (year end 2017)

375 fee earners 450 total staff

Offices Chester Cheltenham Newcastle-under-Lyme Derby Oxford Hale

Specialisms Full service firm

LPM FACT FILE

LEGAL PRACTICE MANAGEMENT33

SEPTEMBER 2016FEATURES

lsquoWith us you know exactly what yoursquoll get and how much itrsquoll costrsquordquo

PEOPLE PLEASERSThe ability to implement change has also been an important part of delivering a growth strategy This isnrsquot necessarily surprising ndash polling at the 2016 Legal Practice Management conference showed that legal business managers thought it was one of the greatest hurdles to a firmrsquos growth or success only topped by acquiring high-quality staff In Knightsrsquo case the two challenges were addressed together Beech says Knightsrsquo corporate rather than partnership structure also allows it to recruit talented people without having to deal with the inherent politics of an equity partnership

ldquoAcquiring the best talent has been a central part of our growth strategy ndash if a candidate can help the business through expertise or client following we can just recruit themrdquo he added

But a successful growth strategy incorporating talent isnrsquot just about recruiting quickly as we analysed in the July 2016 issue of LPM ndash itrsquos about recruiting well Firms also need to make themselves an attractive prospect for legal talent in order to grow

William Robins operations director at Keystone Law says his firmrsquos lsquodispersedrsquo model allows it to do that by offering new fee earners the chance to work remotely with less supervision ldquoWersquore typically hiring about a lawyer a week ndash bringing their expertise fee-earning capability and client following with them ndash and that is the core part of our growth strategyrdquo The firm has buttressed its recruitment capability by hiring a director of recruitment to focus almost entirely on lawyer enrolment (recruiting talent to recruit talent ndash neat)

Though the distributed model may not be for everyone says Robins implementing some form of flexible mobile or remote working should be part of any firmrsquos growth strategy because it allows firms to increase their fee-earning capability without accruing fixed overheads such as office premises

And there are other ways to be talent-attractive As a core part of its growth strategy Newcastle-based firm Square One Law ndash which achieved 30 growth in the

last financial year ndash has pledged to create a supportive and inspirational team environment offering high-calibre work to attract the best talent Ian Gilthorpe senior partner at Square One says ldquoGood people want to be inspired to be valued for what they do and feel as though theyrsquore making a contribution The key is to engage with all your staff to facilitate a culture where staff feel happy at work work for each other trust each other and ensure that they see the value in what they do ndash if you do that more talent will comerdquo

He added that itrsquos important for

recruitment to convey staff satisfaction to the outside world which Square One has achieved by including staff video-testimonials on its website

But recruiting is only half of an effective people strategy ndash the other is retention Simpson Millar has attempted to create an environment that its talented staff wonrsquot want to leave Says Watson ldquoToo many firms worry about what will happen if their rainmaker goes somewhere else and takes clients with them ndash so they put the shackles on make them feel unhappy and make it so that they canrsquot realise their full potentialrdquo Creating such an environment makes firms an attractive target for lateral hires when they should be building a place people want to join

PRACTICE AREASSME legal businesses donrsquot necessarily need to change their business models completely to achieve the same growth as

Thorntons

Revenue pound20m

209 fee earners 430 total staff

Offices Dundee Edinburgh St Andrews Perth Cupcar Kirkcaldy Anstruther Arbroath Montrose Forfar

Specialisms Full service firm

Keystone

Revenue pound202m

198 fee earners 230 total staff

Offices London Bristol Isle of Man Australia

Specialisms Corporate and commercial dispute resolution property

LPM FACT FILE

LPM FACT FILE

Equity partnerships donrsquot grow particularly quickly because itrsquos hard to achieve consensus and make decisions that enable fundamental or rapid growth among equity partners David Beech CEO Knights

Simpson Millar

Revenue pound316m

322 fee earners 539 total staff

Offices Birmingham Bristol Cardiff Cheadle Hulme Gateshead Kingston-upon-Thames Lancaster Leeds Park Place Leeds St Pauls Street (head office) London Manchester Newcastle

Specialisms Full service firm

LPM FACT FILE

LEGAL PRACTICE MANAGEMENT34

SEPTEMBER 2016FEATURES

our examples but removing blockers from decision-making making themselves more attractive to talent and finding the right funding for growth are increasingly important and the partnership structure may not enable it

But of course that means asking some turkeys to vote in a Yuletide election Fortunately there are other ways to achieve impressive growth mainly investment andor expansion into new geographic or practice areas

Watson says that Simpson Millar wouldnrsquot have been an attractive prospect to Fairpoint had the firm not spent time growing organically by expanding into new areas of law

ldquoWe went from being a predominantly trade union PI firm to having a broad base of 16 types of work ndash with strong heads in charge of each committed to driving growth in their departments ndash which gave us a large boost in revenuerdquo The firm achieved this through small acquisitions of other firms that had expertise in particularly lucrative areas of law

But firms shouldnrsquot just look at expanding in lucrative areas ndash they should focus on areas where their reputations deliver an advantage Scotlandrsquos Thorntons for example ndash which last year leapt from 134 to 108 in the 2015 UK 200 rankings ndash invested in six departments as part of its growth strategy

Thorntons joint managing partner Scott Milne says ldquoWe didnrsquot exclude other areas but we saw that these areas were profitable and that more importantly we had considerable expertise in them ndash we also considered that these are areas that are unlikely to be affected by future economic downturnrdquo This included investing in niche areas of law where the firm has a geographic competitive advantage ldquoWersquore lucky to be surrounded by some of the best farmland in the UK ndash wersquore well known for our expertise in rural business law which is why we invested heavily in itrdquo

ORGANIC V ACQUISITIONIn several ways choosing an effective growth strategy very much boils down to MampA versus organic growth ndash every business model talent or area expansion strategy appears to revolve around one or both But which is the best to achieve the kind of growth thatrsquoll propel firms to a lsquohockey stickrsquo on their revenue forecasts The short answer is it depends on whatrsquos best for a firm at a given time It either

needs to fit the firm ndash or the firm needs to change to fit the goal

Beech says that acquisition has been excellent for Knights because itrsquos a fast and effective form of expansion ndash the acquisition of Darbys more than doubled its revenue But MampA poses a significant challenge to finding firms with the right cultural fit

ldquoFirms need to establish a single culture in order to implement growth ndash everyone needs to be working towards the same goalrdquo He added that when a firm completes a merger or acquisition that firm has to be integrated from day one which is much more difficult if it has a significantly different culture Knights is planning to continue recruiting and complete more acquisitions in the next year to maintain the growth curve

Of course the big problem with acquisition is money Robins at Keystone says his firm lies at the opposite end of this

INFORMATION IS EMPOWERING

Lemington Spa-based firm Wright Hassall has a specific goal of breaking into the top 100 and as part of its growth strategy expanded into areas of the UK where its expertise is highly sought after ndash using customer relationship management in the background to underpin the firmrsquos activities in specific areas Martyn Wells IT director at the firm says ldquoWersquove zoomed in on specific industry sectors that we know are performing well in the Midlands sectors where we have a superb reputationrdquo Expanding geographically as Wells outlines needs data to get right Thorntons for example identified various lsquomicro-marketsrsquo in Scotland close to its base of operations ldquoWe acquired a firm in St Andrews because itrsquos like a micro-economy (or micro-market) that doesnrsquot seem to be affected by price drops in the residential market elsewhererdquo says Thorntons joint managing partner Scott Milne Knights has another take on the geographic targeting idea ndash it intends to stay out of the large cities (London Manchester Leeds for example) and expand into areas where there is little competition As David Beech CEO at Knights explains ldquoLast September we acquired a small team in Chester of about 11 lawyers and now thatrsquos expanded to just over 70 ndash and the main reason wersquove been able to do that is because there isnrsquot a lot of competition thererdquoUltimately this all comes down to research finding out what to invest in or where to expand and perhaps most importantly finding out what clients want

LEGAL PRACTICE MANAGEMENT35

SEPTEMBER 2016FEATURES

spectrum to the way Knights has grown emphasising organic growth finding innovative means to attract talent using technology to drive efficiency and branching out into new areas of law or new markets to achieve significant growth

Square One Law also espouses the organic route ndash believing that firms with growth in mind should focus on ensuring their external brand reflects the businessrsquos internal culture and behaviours of its team creating lsquosynergyrsquo between the business and its clients

Gilthorpe says ldquoMergers ndash and there is no such thing as a true merger ndash and acquisitions can be a distraction as you look to create a new culture and separate the wheat from the chaff and this can soak up a lot of energy that would otherwise be put to use in driving the progression of the business and the focus on client servicerdquo

The best option for some firms may be a

calculated combination of MampA and organic Thorntons for example having made several acquisitions is now focusing on organic growth moving away from geographical expansion and towards developing locations and its brand

Watson at Simpson Millar sums the mixed approach up thus ldquoItrsquos a mixture Acquisition is still very much a part of the mix but in parallel to that itrsquos important to demonstrate that yoursquore developing ongoing work rather than being driven solely by acquisitionrdquo

There are clearly many different ways to achieve healthy and assertive growth though there are no easy answers as to which way is right for your firm But it is clear that growth doesnrsquot have to happen in the ways many have previously achieved it ndash innovation and lateral thinking are the means of achieving significant growth (which might one day propel you into the top 100 you never know) LPM

LEGAL PRACTICE MANAGEMENT36

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

INDUSTRY VIEWS

36LEGAL PRACTICE MANAGEMENT

Legal is becoming an ever more digital industry giving firms the chance to become more efficient flexible agile and collaborative

INDUSTRY VIEWS INDEX

ONLINEOFFICES

36

SPONSORED EDITORIAL

INDUSTRY VIEWS

37 INTERVIEW

Paperless processLinetimersquos Tony Klejnow explains the benefits of using matter management software for law firms and their clients

39 INTERVIEW

Virtual expansionNigel Redwood Nasstarrsquos CEO talks about the advantages of having a managed flexible IT infrastructure

LEGAL PRACTICE MANAGEMENT37

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT37

Competition and price pressures and an increasingly digital client base are all significant drivers for law firms to become paperless

businesses Tony Klejnow Linetimersquos managing director says firms could achieve competitive advantage by introducing paperless solutions across their businesses ndash but a particular lsquoeasy winrsquo area is matter management

ldquoFee earners are required to keep detailed records of their cases but the amount of time and money they waste physically printing filing looking for collaborating on and updating files is alarmingrdquo says Klejnow Law firms have traditionally been reluctant to adopt paperless

workflow solutions he adds because workflow doesnrsquot apply to 99 of fee earnersrsquo work ldquoBut if they adopted paperless solutions in their back office processes they could reduce costs without affecting client service boost productivity and promote collaboration ndash making them more efficient flexible and cost effective and making them more competitive in an ever-changing legal marketrdquo

MATTER MATTERSDocument and matter management tools ndash like those in Linetimersquos legal software product Liberate ndash electronically store and organise all case documentation in an online database Klejnow says that there are two immediate benefits of paperless matter

PAPERLESS PROCESS

Tony Klejnow managing director at Linetime talks to LPM about the benefits of the paperless office ndash starting with filing and back office processes

INDUSTRY VIEWS

Linetime is a specialist provider of Microsoft-based practice and case management solutions Clients include mid-tier law firms and in-house legal departmentswwwlinetimecouk

ABOUT THE SPONSOR

SPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT38

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT 38

management The first is reducing paper and storage costs

ldquoIf case documentation is electronically stored once a case is finished you no longer have a five-inches-thick file that has to be stored for six years ndash which has to reside somewhere and costs firms time space and moneyrdquo The second is eliminating filing time ndash for example instead of printing and filing emails and attachments fee earners drag and drop emails directly from Outlook into the database ldquoand attachments are automatically stripped from emails and appropriately filedrdquo says Klejnow

And Klejnow says paperless filing systems donrsquot just facilitate efficiency this way ndash they also improve general process efficiency by facilitating collaboration between fee earners Solicitors can use document and matter management to view and work on matters at the same time a difficult if not impossible prospect when working with paper files Klejnow says ldquoWithout document management legal professionals work in silos but with it they immediately share datardquo He adds that Liberate has an additional collaboration tool to help further improve collaborative efficiency in firms ldquoIf I choose to lsquocollaboratersquo a document with you on Liberate Outlook will prompt you to review that document by simply acknowledging the notificationrdquo

In this respect moving to become a paperless business provides greater flexibility for fee earners who can collaborate with colleagues working remotely or in different offices Klejnow says ldquoPaper files can only reside in one location but electronic files can be accessed from any office and when working from home or with clientsrdquo On the other side of the coin having digital files maintains a greater level of productivity in a law firm office ldquoIf your colleague is absent from the office you can easily find documents that you might have otherwise wasted a significant portion of your day looking forrdquo he adds

Improved external collaboration is also a benefit that firms can reap from paperless matter management With an electronic system you can go into a case history bundle documents into one PDF file and quickly submit that to the third party improving collaboration between fee earners and clients who want to do everything online This has the added benefit of improving accuracy and facilitating greater efficiency by involving clients in the process ldquoGood matter management software should also let you push e-forms to clients to be filled in and that information is automatically transferred straight to the online database ndash which saves fee earners

time and is a more accurate because the information doesnrsquot have to be constantly re-enteredrdquo says Klejnow

This extra level of collaboration within legal businesses that hasnrsquot been possible until now has long been needed because it improves efficiency and productivity which makes the business more profitable and competitive Klejnow adds that what firms save by adopting matter management they should reinvest in becoming fully paperless digital businesses

ldquoCase management solutions can improve efficiency to an even greater extent and keep firms competitive in the age of the alternative business structuresrdquo

VISIBLE COMPLIANCEIn response to firms reluctant to adopt paperless technologies like document and matter management for fear of losing delicate information to cybercriminals Klejnow says those systems provide an additional level of security ldquoTaking data and attachments out of Outlook and storing them on a database is much more secure than leaving them on your hard drive If you leave

your laptop on a train for example all your important data is safely stored on a server and not instantly accessible by opportunist criminalsrdquo

Document and matter management also offers a greater level of security in fee earner and client communications ldquoIf I want you to check that the data we have for you is accurate Liberate will

direct you to a page holding your data and at the same time it will push out an SMS text with a pin code to your phone Unless you input the code you canrsquot get to the web page ndash which means if one of your solicitors accidentally sends an email to the wrong person or itrsquos intercepted it doesnrsquot matter The data stays safe ndash this level of security is crucial in this age of cybercrimerdquo

These security features clearly have significant benefits for compliance which is important in a market increasingly dictated by regulation including the relatively new General Data Protection Regulation says Klejnow

ldquoCompliance officers need to be seen by regulators to have monitored and reviewed everything thatrsquos happened in their firm which is considerably easier with a paperless system Liberate has lsquoversion controlrsquo which allows compliance officers to keep tabs on every change made to a document as well as a compliance module which lets them view whatrsquos happening on a case (to ensure that money laundering checks have been carried out and so on) and records the fact that yoursquove reviewed thisrdquo LPM

Without document management legal professionals work in silos but with it they immediately share data

INTERVIEW

LEGAL PRACTICE MANAGEMENT39

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LPM readers may already know the Nasstar Group ndash but by a different name Nasstar was launched by regular LPM-contributor e-knownet to consolidate four discrete hosted

managed IT businesses (including e-knownet) after a period of significant acquisition Nigel Redwood chief executive officer at Nasstar says merger and acquisition and consolidating brands is challenging but having a flexible hosted IT infrastructure makes the process significantly easier

ldquoManaged IT services are enormously beneficial for firms that are expanding or consolidating particularly after MampA in terms of time and productivity cost savings and flexibilityrdquo He adds that by just having managed desktops firms can attain competitive advantage by reducing overheads and becoming more flexible and agile

Nasstar has experience helping SME firms with their IT systems after MampA and knows what problems to look out for creating unity among staff used to using different systems and processes the cost and time it takes to expand an IT infrastructure and the geographic distance between new offices

Redwood says that MampA can be an excellent way for legal businesses to expand into new sectors but that consolidating new departments using different IT systems and processes is challenging

ldquoOur acquisitions for example introduced new sector focuses for us in the SME legal market ndash wersquove consolidated these into a wider service base under Nasstar and facilitated unity among staff using virtual IT solutions

rdquoVirtual IT solutions help facilitate unity across the business by providing a level of consistency in an IT infrastructure Everyone immediately uses the same applications on the same versions from wherever theyrsquore working creating unity faster collaboration across teams and effective information sharingrdquo Hosted IT infrastructures are also continually updated giving staff instant access to new updates applications and technologies as they become available

The next significant challenge firms face after MampA is expanding their IT infrastructure to accommodate an influx of new staff ndash but Redwood says virtual IT solutions let firms expand their IT infrastructure at the flick of a switch

ldquoWith virtual IT firms arenrsquot held back by the size of their servers or the amount of computer power theyrsquove got ndash they simply call their IT provider and ask for an upgrade when previously theyrsquod have been

subject to lengthy and costly IT upgradesrdquo Virtual IT solutions are also easy to budget for

Redwood says ldquoYoursquore not going to be surprised by an increased fixed asset expenditure ndash services like those offered by Nasstar are an operational cost and fixed per user per month through a scalable cost modelrdquo

Geographic distance inhibiting collaboration between merged offices is also a key consideration for firms after MampA but virtual IT solutions solve this problem Redwood says a virtual IT infrastructure can minimise travel through the use of hosted virtual meeting rooms and video technology Staff can use this technology from virtually anywhere which is why it also lends itself well to remote flexible or mobile working set-ups

VIRTUAL WORKPLACERemote working is becoming an increasingly present feature of the legal landscape because of its cost saving and recruitment and retention advantages ndash the majority of firms at the LPM conference 2016 were moving towards a flexible remote or mobile working set-up or already had one

Redwood says virtual IT solutions better enable staff who work remotely ldquoHosted managed desktop solutions for example let staff work with the same applications from any device in the world safely and securelyrdquo

But remote working isnrsquot only about enabling the current workforce itrsquos about attracting future talent Redwood says that millennials donrsquot necessarily want to work as their predecessors did ndash they expect greater flexibility in the workplace which at one level can be achieved by remote working facilitated by a managed desktop

ldquoAnd itrsquos not only about attracting millennialsrdquo he says ldquoSME firms with flexible working set-ups are becoming more attractive to experienced legal talent who may be frustrated by the rigidity of their firmrdquo As a firm expands its workforce in this manner firms with virtual IT solutions reap the lsquodoublersquo cost saving benefits of not having to expand their premises or IT infrastructure accordingly

Some firms are resistant to remote working based on hosted IT services believing they arenrsquot secure ndash but Redwood says that argument ldquocan be put to bedrdquo

ldquoFor an in-house IT team to have the level of security that an organisation like ours can deliver is near impossible financially as well as in terms of the

VIRTUALSANITYNigel Redwood CEO at Nasstar talks to LPM about how managed IT can help SME firms achieve competitive advantage by making them more agile and flexible

LEGAL PRACTICE MANAGEMENT40

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

INTERVIEW

level of systems and technologies they deployrdquo Cybercrime is of course a scary and constantly evolving threat but Redwood points out that virtual IT systems have dedicated teams monitoring these threats evolving cyber defences and changing systems accordingly

ldquoThis capability not only makes [firms] a lot more secure but gives peace of mind in terms of compliancerdquo

ONLINE ADVANTAGE Redwood says virtual IT infrastructures donrsquot just pertain to lsquobig lawrsquo but to SME firms as well ndash perhaps more so

ldquoVirtual IT systems are a way for SME firms to stay competitive against their larger

counterparts and ABSs ndash it gives them a greater ability to expand it lets them adopt more flexible and agile models and is easy to budget forrdquo Firms can also expect virtual IT solutions to enable better alignment of IT resources to business needs enhanced usability with anywhere anytime access and in-built business continuity

But the greatest advantage virtual IT offers SME firms over big law is agility Redwood says ldquoBig IT departments in firms can be slow to react cumbersome and held back by the limitations of hardware infrastructure and security issues ndash all of that is removed with a solution like ours and the customer has access to fast-moving agile ITrdquo LPM

ABOUT THE SPONSOR

Nasstar is a provider of managed IT services and tailor-made cloud hosted solutions ndash delivering innovative secure and agile IT to help clients accomplish their business objectiveswwwnasstarcom

Page 8: LPM September 2016

LEGAL PRACTICE MANAGEMENT9

SEPTEMBER 2016IN PRACTICE Follow us and talk to us on Twitter LPMmag

Now that the UK has voted in favour of Brexit we ask LPM readers ldquoDo SME firms need a plan in place for when the UK leaves the EUrdquo

Want to write us a letter You know that thing no one does anymore You can email us a letter for publication to lpmlsncouk or post us something to LPM magazine 20 Mortlake High Street London SW14 8JN Or get in touch through our LinkedIn group at bitlylpmgroup

Follow LPM on Twitter

LPMmag

NAVEED AHMED HEAD OF IMMIGRATION LAW ASONS SOLICITORSThe uncertainty and far-

reaching implications of the UK leaving the EU undoubtedly exposes SME law firms to greater risks which must be effectively managed Strategic planning at primitive stages of the UKrsquos departure from the EU could very well determine the future viability of many SME law firms Diversification may well be key to prosperity after the break and full service law firms that are engaged in a variety of legal sectors such as employment health education retail intellectual property and financial litigation will be well-placed to navigate the storm

GORDON STARK COOMURGITROYDIn a time of uncertainty it

is better to be prepared ndash having a strategic plan in place is important as is knowing when to act The plan should identify risks but also seek out opportunities Firms may need to make decisions about their future during this protracted period of acute uncertainty ndash knowing when these decisions need to be taken what the options are and what the associated lead times will be to execute them will all be key components of planning

SEPTEMBER 2016IN PRACTICE

ANNABEL HAMPSHIRE MANAGING ATTORNEY STRATAGEM IPMSME law firms are no exception when planning for the

inevitable fallout of a post-Brexit United Kingdom The uncertainty over when the UK will leave the EU and the consequences of legal and structural reform make planning difficult Firms are taking immediate steps to reassure clients as well as educate them about the challenges presented in their specific field For the IP sector changes to protection and exploitation strategy will require careful planning but more immediately a review of contractual obligations may be necessary to mitigate unfavourable or unexpected reinterpretations of terms (resulting from practical effects of Brexit) by any party to the contract

ELIZABETH WEST HEAD OF ORGANISATIONAL DEVELOPMENT REDDIE amp GROSE

In our sector (patent and trade mark attorneys) we compete with EU firms Our European work is a mixture of EU law and other international law but we expect EU competitors to take advantage of the Brexit publicity to try to grab a larger share of that work Our plan includes protecting the revenue stream but wersquove had to put that in place now ndash even before an Article 50 notice is served Wersquod advise all SME law firms to challenge their assumptions about who their competitors are and who they will be after Brexit ndash cheer up and strategise

NICK DAVIS HEAD OF RISK AND COMPLIANCE GEDYE amp SONS

The British governmentrsquos well-made plans may not hit their ideal timetable ndash European leaders will have to try and strike a balance between the wants of the UK the European parliament and the views of their own voters (not to mention their own electoral desires) This is clearly a complicated subject and extends across the areas of law that firms practise and the demographic of their workforces SME law firms need a flexible and constantly evolving plan to be able to advise their staff and clients current or new They also need to be able to demonstrate impartial and accurate views on how any potential changes that come as a result of Brexit affect clients first and them second As part of their plan SME law firms should review any guidance notes issued by the Law Society and the SRA ndash adopting any rules and procedures (particularly relevant would be any change to the General Data Protection Regulation and AML fourth directive) so that their firms are ready and well prepared But a plan shouldnrsquot be overly rigid because itrsquos currently too early to tell what if any impact Brexit will have on UK law

YOURVIEW

LEGAL PRACTICE MANAGEMENT9

Follow us and talk to us on Twitter LPMmag

NOVEMBER 2016

VISIT LSNCOUKLPMB2016CALL RIKKI CLARK ON 0870 112 5058

EMAIL RIKKICLSNCOUK

BIRMINGHAM

THE ONLY EVENT FOR MANAGEMENT LEADERS IN SMALL

AND MEDIUM-SIZED LAW FIRMS

ONE-DAY CONFERENCE

6338 LSN LPM Nov 2016 Book Now_03indd 1 30082016 0939

LEGAL PRACTICE MANAGEMENT11

SEPTEMBER 2016IN PRACTICE Follow us and talk to us on Twitter LPMmag

THE WAY TO WHY

BOOK REVIEW

One way of assessing the value of a book like this is by reference to the number of times it makes one think of something it can be applied to in your own career or organisation On that measure

alone Designing the Purposeful Organisation passes with flying colours

At the heart of Wilsonrsquos philosophy is the idea that to be successful organisations must be able to articulate compelling and inspiring reasons for their existence ndash not simply what they do but rather why they do it The usual poster boys for 21st-century business success are quoted as exemplars of this approach - Apple Google Microsoft Reference is also made to Simon Sinekrsquos TED talk (278 million views and counting) and related book Start With Why as a means of uncovering the primary reason for an organisationrsquos existence Indeed a key element of Wilsonrsquos writing style is to send the reader off at regular intervals to take in a TED talk or YouTube video or to reflect in more detail around the topic at hand This does at times make the book feel more like a business coaching session rather than a dry management treatise ndash which for the avoidance of doubt this reader sees as a definite plus point

While the stories around behemoths such as Apple and Google can be compelling I was more taken with the example of the African tax collection agency that Wilson was working with Rather than seeing themselves as taking money from people (the lsquowhatrsquo) he encouraged them to focus on their purpose namely to help fund new schools and hospitals across their developing nation (the lsquowhyrsquo) Articulating the why is also a key element of an organisationrsquos brand proposition Wilson reminds us that customers are more often than not buying why an organisation does something rather than simply what the organisation does Or put another way how many customers would be inspired to have brand loyalty for a firm which simply says that its fundamental reason for being is to maximise shareholder returns

Before anyone starts fulminating about the importance of financial returns Wilson does recognise that results matter However his concern is that they too often become all consuming A key pillar of the book is his belief (which he concedes may be controversial) that overly focusing on results is misguided and can create systemic barriers to better performance Or put more simply results measure our progress to a better future ndash they are not in themselves that better future

This is certainly something that chimed for me as the CEO

of a law firm Yes we all recognise the need to deliver improved financial KPIs However these are simply a means of measuring whether we are delivering value to our clients (given that clients are unlikely to be using and paying for our services where they do not perceive us to have any value) and are unlikely to be the things wersquoll look back on with pride in our dotage

This reassessment of the role of results is also central to one of the key conditions for a more purposeful organisation (and one which will particularly resonate with professional services firms) namely talent liberation Drawing on the work of Daniel Pink on personal motivation (for example Drive The Surprising Truth About What Motivates Us) Wilsonrsquos call is for firms to move beyond transactional performance (pay me X and Irsquoll deliver Y pay me a bit more than X and Irsquoll deliver a bit more than Y) Rather we need to help our people liberate the talent they have by playing to their strengths as opposed to the more traditional performance management model of fixing weaknesses

Wilson focuses particularly on how the proper articulation of purpose can engage millennials Borrowing from Laurence Boldtrsquos Zen and the Art of Making a Living he encapsulates this approach in three short questions What skills and other resources do you have What do you care about Whatrsquos stopping you from pointing A at B

It seems to be that in most law firm management seminars or discussions these days someone somewhere is lamenting the fact that they just donrsquot understand millennials And at last I have an answer for them ndash read Clive Wilson LPM

LPM reader discount ndash use code HRLPMB to get 20 off at wwwkoganpagecom

Designing the Purposeful Organisation How to Inspire Business Performance Beyond Boundaries by Clive Wilson

Publisher Kogan PagePublication date Feb 2015Price pound2999

Reviewer Chris Harte chief executive and partner at Morton Fraser

Have

heardyou

Proclaimreg is the only Practice Management Software solution Endorsed by the Law Society

Contact us for a demonstration ndash see the Proclaim difference

CALL 01274 704 100wwweclipselegalcouklawsocietylawsocietyeclipselegalcouk

It speaks volumes that Proclaim Eclipsersquos market-leading system is the solution of choice for 23000 legal professionals in 900 organisations Proclaim encompasses practice case and matter management and is now the only system to be endorsed by the Law Society

From new start-ups to industry heavyweights Proclaim is the system of choice for forward-thinking law firmsbull Fully integrated Practice Management Software solution bull SAR-compliant legal accounting bull End-to-end case and matter management workflow processes bull Ready-to-go workflows for specific practice areasbull Fast to implement easy to use

LEGAL PRACTICE MANAGEMENT13

SEPTEMBER 2016COLUMNS

Barry DaviesPractice directorDouglas-Jones Mercer wwwdjmlawcouk

BARRY DAVIES PRACTICE DIRECTOR

ROLE MODELS

ABOUT Recent figures show that there are a shade over 130000 people on the roll of solicitors in England and Wales ndash 20 of those undertake an in-house role 80

are classed as employed An enormous number and this is before we consider the significant chunk of employees namely professional managers support staff and those lawyers who are not on the Law Society roll But lots of firms I speak with say lsquowe have too many partnersrsquo or they have reduced the number of lsquochiefsrsquo within their practice as part of their strategic planning

Where are we going with this What will the future firm look like What will its stakeholders (not necessarily shareholders) expect

The two facets that will impact upon the future will undoubtedly be generational attitudes and technology Though advancements in processing power will mean huge growth of AI systems over the next decade I think generational attitudes is the facet thatrsquos most interesting right now

Generation X lawyers (born between the early 1960s to mid-1970s) are often already partners This generation and the baby boomers before them are usually motivated by achievement and money Generation Y lawyers on the other hand (born in the 1980s or 1990s) are looking for something else Fearing that I sound like a textbook ndash specifically Frederick Herzbergrsquos theory of motivation hygiene ndash itrsquos not money thatrsquoll be the key factor in recruiting millennials but other drivers such as networks recognition quality of work and conditions

Developing reward and recognition strategies is

difficult enough for partners ndash so how does a law firm tackle its entire workforce A few years ago I held a discussion with a law firm partner and a question put to me was could the lsquoJohn Lewis modelrsquo fit a law firm This term is not only synonymous with the department store it has become a household phrase

Quite a few law firms have for some time now introduced a corporate partner ndash a limited company ndash as a partner within its practice with the intention of dealing with distribution of profits more efficiently or as part of a bonus pool So itrsquos quite interesting to hear that a highly regarded firm in the south west Stephens Scown has developed a similar model to the John Lewis theme

Whatrsquos different about this example is that a proportion of the firm is owned by a trust for its employees and not just its partners This gives the employees of the firm a greater sense of belonging and the added impetus to do well I am certain that some critics would question the mechanics of such a scheme and perhaps the barriers to entry such as defined profit levels but setting this aside it is a means of boosting staff engagement and eradicating the lsquothem and usrsquo mentality

With complications in all corners of law firm ownership new models will have to be explored to cover aspirations of all involved There could come a time when a crowdfunding option is explored generally and maybe the household name for staff stakeholder mechanisms in law firms will be the Stephens Scown model LPM

LEGAL PRACTICE MANAGEMENT14

SEPTEMBER 2016COLUMNS

In the April issue of LPM Stepien Lakersquos practice director Richard Hill brilliantly spelled out what to look for when trying to spot a lsquowhalersquo or big lsquophishrsquo ndash a situation where an

individual or firm is targeted researched and then duped into sending money to a cyber attacker

But just as awareness is essential so too is preparedness I thought it might be helpful to share some of the practical considerations that will help keep client funds safe (a requirement of principle 10 in the SRA handbook) including some things wersquove done in our firm in response to these very real threats

Perhaps the most feared event among all law firms is the very well-publicised lsquointercepted emailrsquo (dubbed the lsquoFriday fraudrsquo) But would we be surprised by just how many firms lawyers and clients freely provide bank details within the body of text in an email

This is an area where we recently tightened our procedures and introduced an explicit rule all bank details provided by a client especially in any email communication must be verified by a lawyer (by reconfirming those details with a person they know) The lawyer then signs to say that they have checked them

This has produced some unexpected benefits particularly for one client who provided bank details to us within the body of an email for remitting the proceeds of sale for his family business of pound32m When the lawyer contacted him to verify that the bank details were correct the client realised that he had transposed two numbers

Clearly this is a serious education piece not only for those responsible for finance and the lawyers within the firm but externally for the firmrsquos clients

There are a number of practical points to bear in mind when it comes to day-to-day security matters how do your lawyers communicate the client account details to its clients and do you always attempt to obtain client details for the remittance of funds at the start of the transaction for instance

Additional considerations might be when did you last review any bank payment elements in your email disclaimers terms of business and client care letters Is your payment procedure well-defined and documented (not just the finance element but also those relevant to clients and lawyers) And do you use any law firm identification checklists

These important issues should remain on the agenda so that theyrsquore constantly in colleaguesrsquo minds with regard to maintaining safe and efficient practices

There are some excellent resources available from your bank that can help to educate your colleagues and there are so many simple steps we can all take to make people aware of the problem Have you tried sending a few test phishing emails to individuals within the firm for

GLYN MORRIS FINANCE DIRECTOR

ABOUTexample to see how they respond

But what then If you are confronted with the metaphorical warning cry of lsquothar she blowsrsquo how will you and your people react You may need to have created a well-communicated process for dealing with a phishing incident

The 1851 classic Moby Dick tells the story of one manrsquos obsessive quest for revenge on a giant white whale ndash we might want to take just a hint of Ahabrsquos obsession in our approach to tackling the issue of cyber attacks Although if we can avoid the whale in the first place all the better LPM

THAR SHE BLOWS

Glyn MorrisFinance director Higgs amp Sonswwwhiggsandsonscouk

0800 328 0272 | wwwarchivestoragenet

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LEGAL PRACTICE MANAGEMENT16

SEPTEMBER 2016COLUMNSSPONSORED EDITORIAL

DOUG HARGROVE THE TECHNOLOGIST

DISRUPTION TO GO

ABOUT Change isnrsquot anything new itrsquos just another word for evolution But lsquodisruptionrsquo is certainly one of the words of the decade and one that is

usually connected to revolution ndash a significant alteration to the status quo and one that has far more immediate impacts

Disruption is also the go-to word for business commentators ndash especially when it comes to lsquodisruptive techrsquo ndash talking about new business start-ups or innovations Take the very latest craze to hit the headlines ndash Pokeacutemon Go has seemingly gripped the world these last few weeks with stock valuations heading skyward and comments about the app lsquodisruptingrsquo mobile gaming But therersquos nothing disruptive about the game it takes and utilises technology thatrsquos been around for nearly a decade (geolocation and augmented reality) and applies it in a new way Itrsquos that application of technology thatrsquos causing the disruption

Businesses like Uber and Netflix have built compelling business models on the groundwork of technology that is now pervasive (the smartphone and broadband internet respectively) Therersquos a lot here that firms can learn from itrsquos not necessarily about inventing new technology but about finding ways to use existing technology to create a new approach

So what opportunities are there for law firms to disrupt This can be looked at in two ways ndash disruption to the existing law firm business model and disruption to the user experience The first scenario has already been covered at length and is nothing new for the legal market there are already plenty of law firms out there

looking to change the way a law firm delivers its services to its clients and prospects ndash from franchise models to virtualised law firms Disruption to the law firm business model has been an ongoing force ever since the term ABS became associated with legal practices

The second scenario is a different matter It seems legal clients have been patiently waiting for the lsquodisruptive service deliveryrsquo model to come and there is plenty of opportunity out there for firms to position themselves differently with the modern consumer of legal services

Take a brief example of where old (or rather existing) technology can be used to differentiate ndash videoconferencing Itrsquos a fairly ubiquitous piece of technology thanks to the rise of Skype Facetime and the webcam which gives an instant user experience and a one-to-one connection that bridges the remoteness of a phone call and the need to travel for a meeting It doesnrsquot take much of a leap to imagine a service that allows consumers to access a lawyer instantly using this technology (maybe even a concept that combines the franchise model with an Uber-style app ndash connecting clients to the next available expert from a selection of associated law firms) The point is you donrsquot have to invent something new to be a disrupter ndash donrsquot be afraid to take existing technology and repurpose it to gain a competitive advantage

There are plenty of consumers of legal services who are willing to try out a new service or offering in the search for that great new experience ndash and for those law firms prepared to take the risk and disrupt there really is an opportunity to catch lsquoem all LPM

Advanced LegalRevolutionary solutions for legal services Contact Doug on 01476 573 718wwwadvanced-legalcouk

Advisory

Design

Development

Delivery

Support

If you would like to know morethen please get in touch

wwwsoftclcominfosoftclcomFREEPHONE 0808 164 0000

Leeds office15 St Pauls Street Leeds LS1 2JG

Manchester officeExchange Quay Building 8 Suite 21 Salford Manchester M5 3EJ

Helping Law Firms to improve business performance through their use of IT

C

M

Y

CM

MY

CY

CMY

K

SoftwareCloud_A4_Advert_V4pdf 1 20082016 1130

LEGAL PRACTICE MANAGEMENT18

SEPTEMBER 2016COLUMNS

JANINE PARKER THE BROKER

WHAT PRICE EXCLUSIVITY

Itrsquos that wonderful time of year when the annual bombardment of brokers begins on your never-silent telephones All of them can ldquocarry out a full market exerciserdquo for you that will of course save you money

But whatrsquos the reality The marketplace is still murky and as a profession we donrsquot help ourselves by keeping it opaque So letrsquos objectively consider many of the claims brokers make attempt to clarify the true mechanics behind the market and consider how to best utilise it for the benefit of your firm

Since 2000 and the demise of the Solicitors Indemnity Fund competition for solicitors professional indemnity has increased This hasnrsquot always been generated through the number of insurers but the ever-increasing number of brokers who purport to be experts in this very niche area of insurance This has increased pressure on insurers to lower prices (a good thing for clients up to a certain point) but this pressure combined with some extreme economic factors has contributed to many insurers withdrawing from the market over the past decade

Competition is good for consumers and it encourages innovation to make sure that brokers and insurers can differentiate themselves by developing their product offering

Some brokers organise lsquoexclusiversquo arrangements with insurers often segmented by the number of partners within the firm ndash which is a very artificial way of dividing up the profession But this is the marketplace wersquore in today and itrsquos worth looking a little closer at these lsquoexclusivesrsquo

All the direct access points are listed in the Law Society buyer guide and in practice itrsquos only a handful of brokers who actually hold the exclusive with direct access to the underwriters It is essential to note that these exclusive agreements are not always lsquotiedrsquo arrangements The broker is not bound to place all their business with their one exclusive insurer and itrsquos often the case that those brokers who hold the exclusive arrangement also enjoy strong relationships with the open market insurers

To increase distribution brokers who hold exclusive arrangements will offer access to other brokers who wish to take advantage of the exclusive products available These brokers donrsquot have their own facilities There are many commercial reasons for opening an exclusive to other brokers but itrsquos important to note that the extra broker in the chain will dilute your relationship with the placing broker and ultimately your insurer Marketing materials can often be unclear as access to exclusives is readily used ndash but in reality these brokers will be approaching another broker to do this

Often law firms will be unaware of the number of brokers in the chain and will unwittingly be paying additional brokerage and fees unnecessarily Direct access allows for better communication between your firm and insurers which can often lead to more competitive pricing Removing a broker from the chain can lead to the process of claims handling being more efficient and effective as there are less obstacles in the chain of communication

In summary no one broker has direct access to every insurer and it is possible to approach more than one broker and not be at risk of flooding the market If using more than one broker be clear who you would like them to approach and be aware whether they have to go through another broker to ultimately reach the insurer LPM

ABOUT

SPONSORED EDITORIAL

ParagonBetter broking for legalContact Janine on 020 7280 8200wwwparagonbrokerscom

LPMLEGAL PRACTICE MANAGEMENT

SUPPLEMENT SEPTEMBER 2016

BUSINESS INFORMATION FOR EVERYONE IN PRACTICE MANAGEMENT

LPM INSIGHTS

Sponsored by

How do SME law firm management leaders see the future

LEGAL PRACTICE MANAGEMENT20

SEPTEMBER 2016LPM INSIGHTS

ALL CHANGE

22WHATrsquoS NEXT We analyse the 2016 LPM conference polling data

2 1 COMMENT Accesspointrsquos Richard Roebuck on legalrsquos increasing digital dangers

Change and transformation are words that strike fear into the most hardened of legal management hearts because they are hard to do and even

harder to make stick But change must happen inside todayrsquos SME law firms to make sure they stay in business in tomorrowrsquos world

At this yearrsquos Legal Practice Management conference in London we polled our audience of law firm management delegates on a range of topics Some questions wersquove been asking since our first LPM conference back in the misty era of 2012 Much has changed in the world since then (new UK governments drones are now lsquoa thingrsquo Donald Trump) but legal not so much The rise of the ABS has been slow (though impactful) and the recession has for many businesses faded into a distant memory compared to the Brexit debate

But SME law firms rightly smell a real need for change in the wind ndash and perhaps though they seem to find it hard to name that change the clues are legion Letrsquos find some

LPM London 2016 delegates named the greatest hurdles to their firmsrsquo growth or further success as lsquoacquiring high-quality staffrsquo and the lsquoinability to create change within the firmrsquo Might the solution to one lie in the other Great talent wants to flock to fresh and vigorous businesses and younger legal eagles are increasingly shy of throwing their lots in with the fusty world of partnership Law firm leaders must look at how their businesses are run and who runs them and how people work if they are to attract great people ndash and in doing so they will create the change they seek

Herersquos another 52 of delegates named lsquoclient pressures on costrsquo the factor thatrsquos having the biggest impact on the SME legal market ndash but when asked how important price is when winning business 67 said itrsquos just lsquoone of a range of important factorsrsquo while 21 said itrsquos lsquonot as important as other things such as relationshipsrsquo This is a disparity I canrsquot quite understand but it doesnrsquot sound like the SME legal market truly gets the shift thatrsquos happening on the client side and how much change needs to happen inside firms to meet this challenge

Read on and come to your own conclusions but I think the clues are now becoming obvious I hope your firm sees them too LPM

Rupert Collins-White editor-in-chiefLPMmag | rupertwlsncouk

You donrsquot as the song goes need to be a weatherman to know which way the wind is blowing in the legal market ndash but just because the clues are there doesnrsquot mean you can be complacent about acting on them

CONTENTS

FEATURES

LEGAL PRACTICE MANAGEMENT21

SEPTEMBER 2016LPM INSIGHTS

MORE TECHMORE SECURITY

INTRODUCTION TO THE RESEARCH FROM OUR SPONSOR RICHARD ROEBUCK MANAGING DIRECTOR ACCESSPOINT

After a recent period of uncertainty it would now seem that most firms are confident about their future especially in light of Brexit Whatrsquos also certain is

that most firms are very conscious that to compete they will need to change and adapt themselves for the challenges ahead

With growing concerns about the lack of high-quality people available and what appears to be a reliance on quality individuals driving more lucrative fee-earning work is it time for a gear change

Perhaps the dawn of high-volume low-margin fixed fee work which many firms feared has now arrived As always with change there are challenges to be faced but for those clever early adopters there lies opportunity Making light of the more process-driven tasks and finding more effective efficient ways of completion to deliver client-facing benefits seems key to the wider future of the fixed fee legal landscape

With the growing acceptance of cloud technology and the increasing introduction of new software applications and solutions the legal world has moved on at an improved pace this past couple of years And the world is now clearly keen for more ndash to satisfy its desire for a more accessible and mobile working environment What is key for this trend is that the lsquoquality of the deliverablersquo has an ongoing programme of improvement that benefits both the firm and its clients

As progress pulls us forward there will always be elements arrayed against us Alongside the opportunities hiding in the polling from LPM this year therersquos also a sense of fear and concern around possibly the biggest threat to risk and security there is right now ndash the dark byproduct of technological success cybercrime

Cybercrime is fast growing with ever more complex attacks making headlines It is now one of the most common criminal offences in the UK An increasing number of individuals are exploiting the speed and anonymity of the internet to commit a wide range of criminal activities having no conscience and knowing no borders

It isnrsquot our fault websites get hacked but poor internet safety habits can put us at risk Reusing passwords or using weak passwords make us easy targets for identity theft Remembering multiple passwords can be a pain but there are web services and associated applications that can help such as two factor authentication quality mail management systems URL threat protection and mail encryption

For many firms the biggest threats tend to be by way of the ever-open door into our networks and devices ndash email

Our eagerness to respond almost instantly to emails throughout what will be for most an already pressured day is perhaps the dominant daily activity to foster an unwanted lapse in security In the past 18 months alone I have seen three firms that were truly caught out ndash some with the potential for significant financial penalty by opening email attachments The most common lsquogotcharsquo is an email that appears to have come from the office scanning platform whereby the email address has been cleverly spoofed to appear legitimate (for example downstairscopiermyfirmdomaincouk) There are so many existing and newly circulating threats of this calibre and type that even the most aggressive of filtering systems struggle to keep up

Do you know the name(s) of your copiers and the associated email addresses Do you stop to think before opening the innocuous Word attachment ldquoDoesnrsquot our scanner usually send PDF files Why has a covering note not been included with the attachmentrdquo Stop think and call for advice

Another infamous scam is the spoofing of email addresses of key people within your firm ndash for example an email to the head of accounts appears to be from the senior partner ldquoPlease send pound17000 to account X at your earliest convenience and confirm once processedrdquo it says Stop ndash is this your agreed process

As the demand grows and we extend our reach out into the online world so cybercrime advances ever closer seeking unauthorised access through our front door Quite clearly online is the future but we need to embrace it with the necessary skill sets and processes in place for our convenience wellbeing and prosperity LPM

There are so many existing and newly circulating threats of this calibre and type that even the most aggressive of filtering systems struggle to keep up

Accesspoint are independent legal IT specialists who consult on a variety of information technology-related issues offering the best in IT solutions to help firms work more effectively

Contact Richard and the team on 0203 189 2645wwwtheaccesspointcouk

LEGAL PRACTICE MANAGEMENT22

SEPTEMBER 2016LPM INSIGHTS

SME law firms are in a battle for survival Whether they know it or not they have huge challenges to face in the next few years ndash around succession planning technology replacing lawyers and being

used by competitors to attain a competitive edge and catering to clients who increasingly want cost predictability transparency and availability

These market pressures were addressed at the LPM conference in May 2016 which was attended by over 100 delegates all SME legal management leaders The delegates were polled on the day about what they thought of the pressures facing them and how theyrsquore planning to overcome them ndash and their answers provide valuable insight into the SME legal market

The polling results show that LPM conference delegates were aware of the severity of the challenges they face Three-quarters of legal management leaders we polled at the 2016 LPM conference thought that the challenges theyrsquoll face in the next five to 10 years will be lsquomorersquo or lsquomuch morersquo serious than in past years And 58 of delegates thought that the challenges in the next year to two years will be lsquomore serious than in past yearsrsquo

How they will face these challenges depends at least partly on attitude ndash whether they believe they can win or will eventually lose the war Fortunately most LPM conference delegates were optimistic about their firmsrsquo futures - 81 were either lsquocautiouslyrsquo or lsquoveryrsquo optimistic about their place in the legal market of the future

This doesnrsquot necessarily suggest that theyrsquore confident in the market overall particularly after the market instability brought by Brexit Legal management leaders might believe their firm is the only one thatrsquoll survive due to expertise in a particular area or niche In any case it indicates market confidence and a confidence in the ability of their firm to compete and succeed

But is this optimism misplaced in a market where the future is increasingly uncertain and competitive Are firms really ready for change on a huge scale as their confidence might suggest What are the issues currently keeping SME legal leaders awake at night

In this report LPM shines a light on the SME legal market through the eyes of our legal management leader audience ndash those driving their firms through an uncertain new world

WHATrsquoS NEXTChange is on the agenda for LPM firms but how to address the biggest challenges and which ones to face first is a tough call finds Patrick Wingrove

More serious than in past yearsMuch more serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch less serious than in past years

51

14

8

3

24

More serious than in past yearsMuch more serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch less serious than in past years

How would you rate the challenges your firm faces in the next five to 10 years

More serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch more serious than in past yearsMuch less serious than in past years

58

17

6

0

19

More serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch more serious than in past yearsMuch less serious than in past years

How would you rate the challenges your firm faces in the next year to two years

What is the greatest hurdle to your firmrsquos growth or further success

What is the greatest hurdle to your firmrsquos growth or further success

LEGAL PRACTICE MANAGEMENT23

SEPTEMBER 2016LPM INSIGHTS

TIMES THEY ARE A CHANGINrsquo The overriding theme of the 2016 LPM conference was change ndash how firms can implement it the drivers behind it and the various blockers to it But the first step to change is gauging which factors will have the biggest impact on the legal market Just over half of legal management leaders we polled thought client pressures on cost like demanding fixed fees will have the biggest impact while just over a quarter thought it will be competitors attaining a market advantage using technology

How quickly do firms need to respond to these oncoming market pressures Well 86 of LPM conference delegates thought that change needs to happen in their firms within the next two to five years But 14 said that their firm doesnrsquot need to change significantly perhaps because theyrsquove beaten the rest to the punch their legal business is somehow immune to new pressures ndash or they have their heads in the sand

Legal has traditionally been resistant to change and itrsquos not surprising that some firms still are says Sean Stuttaford COO at Essex firm Thompson Smith and Puxon (TSP) and 2016 LPM conference delegate ldquoThere are still firms out there where partners donrsquot have computers on their desks ndash theyrsquore stuck in their ways and just point blank refuse to

52 26 5 12 5

develop their business for the futurerdquoBut legal management leaders willing to implement

change may still find it difficult as 60 of LPM conference delegates polled thought that lsquochange isnrsquot really understood at their firmrsquo

GROWING PAINSJust over a quarter of LPM conference delegates also thought that an inability to create change within their firm would be the greatest hurdle to the businessrsquos growth or further success ndash though Stuttaford at TSP suggests voters might have blamed the traditional partnership business model for the same reason

But acquiring high-quality staff was considered to be the greatest hurdle for growth or success by 36 of delegates Rebecca Patterson HR manager at Kent firm Thackray Williams and 2016 LPM conference delegate says that she agrees with this result ldquoOur firm has a particularly tough time finding quality support staff ndash we could perhaps stand to invest more in competency frameworks and performance management and training opportunities to aid recruitment and retentionrdquo

William Robins operations director at lsquodistributedrsquo firm Keystone Law and a 2016 LPM conference speaker says

12 36 27 13 12

Lack of fundsAcquiring high-quality staffInability to create change within the firmTechnologyThe traditional partnership business model

Out of these which factor is having the biggest impact on the SME legal market

Client pressures on cost (eg fixed fees)Technology creating advantage for competitorsConsolidationDifficulty in finding routes to growth (eg funding)Something else

What is the greatest hurdle to your firmrsquos growth or further success

LEGAL PRACTICE MANAGEMENT24

SEPTEMBER 2016LPM INSIGHTS

offering a more flexible remote or mobile working set-up for everyone in a firm is an excellent way to attract talent (Keystonersquos model of course is founded on remote working) Perhaps the majority of legal management leaders polled at the 2016 LPM conference agree since their firms have either adopted a flexible remote or mobile working set-up are planning to adopt one or are considering adopting one ndash though there are other advantages to remote working such as reducing overheads In any case the results indicate that the SME legal working landscape is becoming considerably more flexible

But remote working doesnrsquot work for everyone Mary Mocklow CEO at West Midlands firm Talbots Law and 2016 LPM conference delegate says that their high-street set-up wouldnrsquot allow it ldquoThe majority of our staff are client-facing and need to be present at the office ndash and while there are other staff at Talbots that might benefit from remote working you canrsquot have a policy for one and not for allrdquo

CYBER THREATSTechnology was clearly a significant concern for legal management leaders who attended the 2016 LPM conference Patterson at Thackray Williams says some firms have had a hard time finding software that caters to their needs as a business and an LPM conference poll seems to back this up just under half of legal management leaders polled at the conference thought project teams should write law firm software indicating a desire for cross-department input into its creation But the poll also indicates that legal software providers have to a large extent been meeting their clientsrsquo needs

The rising threat of cybercrime was also a clear concern for LPM conference delegates ndash 92 of SME legal management leaders said their firms have cyber risk on their management meeting agendas Stuttaford at TSP says ldquoItrsquos something firms need to be constantly aware of and take precautions against not just by purchasing good firewall and antivirus software but by educating staff about password discipline authentication processes and suchrdquo

32 18 14 33 3

Is cyber risk on your management meeting agenda

92

5 3

Yes No Dont know

Is your firm moving to a more flexible workingremote or mobile working set-up for everyone in it

YesNoConsidering itWe already do itDont know

LEGAL PRACTICE MANAGEMENT25

SEPTEMBER 2016LPM INSIGHTS

PRESSURES AND PRICINGClient pressures on cost was also a major concern for legal management leaders polled at the conference so it may not be surprising that just over half of them said 50 or more of their firmrsquos work is some form of fixed fee This doesnrsquot necessarily suggest that the other half arenrsquot open to the concept of fixed fee ndash Mocklow at Talbots points out that fixed fees work for certain types of work ldquoHigh-street firms like Talbots can benefit greatly from fixed fees which is why 75 of our work is fixed fee but itrsquos more difficult to apply to firms that specialise in something like admiralty lawrdquo

The industry seems to think that the value of service has been lost to the price obsession in some areas but not in others ndash and while pricing is clearly a vital issue for SME firms 88 of legal management leaders polled at the LPM conference thought that itrsquos lsquoone of a range of important factorsrsquo or lsquonot as important as other thingsrsquo Patterson at Thackray Williams says that maintaining a good relationship with clients is often more important than pricing though pricing can be a means to achieving client satisfaction ldquoIt also depends on the client ndash in something like conveyancing first-time buyers might be looking for fixed fees or the cheapest price but for commercial clients that may not be as important as reputation or relationshiprdquo

TREASURE MAPPINGLegal process mapping often used by lsquobig lawrsquo and making inroads into SME legal could potentially make SME firms a great deal more efficient and therefore more competitive Two-thirds of legal management leaders polled had heard of process mapping and 79 thought that it is relevant to the business of law Stuttaford at TSP says he agrees ldquoFirms should look at their processes learn from them and figure out how to improve those processes ndash this question really made us look at what TSP has done so far in terms of what legal processes wersquove mapped and whenrdquo

To sum up LPM conference delegates were aware of the challenges that face them but were mostly optimistic nonetheless This may be because they know they need to change and in spite of the fact that change isnrsquot really understood at their firms are planning to mend their ways to meet future market pressures ndash generally putting the client first while keeping talent and technology high on their agendas LPM

Are aware of this thing called legal process mapping

66

34

Has the value of service been lost to the price obsession

23

23

54

Yes No Depends on the service Dont know

Yes No

How important is price in winning business

8

4

67

21

CriticalMore important than almost all factorsIts one of a range of important factorsNot as important as other things such as relationshipsIts one of the less important things in reality

What is the greatest hurdle to your firmrsquos Are aware of this thing called legal process mapping

LEGAL PRACTICE MANAGEMENT27

SEPTEMBER 2016COLUMNSSPONSORED EDITORIAL

Welcome back LPM readers ndash the new school term has started summer is (pretty much) over and the UK is back in full throttle after the summer break And what a break itrsquos been at

File Queen HQ (wersquove taken the time to get our clients up and running with augustprojects as well as started our new Instagram feed filequeenadds)

With the start of the new learning year wersquore focused on the education of you lovely LPM readers ndash with our attention turning back to the General Data Protection Regulation You may remember that in our last LPM article we ran through the 12 steps to tackle the GDPR helped by the awesome people at the Information Commissionerrsquos Office ndash wersquove provided a link to their 12-step resource via our website wwwarchivestoragenetnewsgdpr

Over the next three columns wersquoll be taking these steps and breaking them down for you ndash starting with step one awareness The File Queen (myself) and the team at ADDS have been promoting this step as the most important for all legal practices

ldquoWhyrdquo we hear you holler Well this step is the all-important life raft that unites your practice and team members to help you in the GDPR fight for survival (dramatic I know)

Getting the team on board ndash this buy-in needs to include all ranks of staff ndash from the managing partners to your suppliers But how do you do this Well here are some File Queen tips for when we at ADDS are rolling out projects

Lunch and learn ndash with a register People love to eat and be social so get your legal business to book in a couple of lunch and learn sessions Donrsquot limit this to one date ndash you must run at least two or three so people have the option of which dates to attend Make sure you make a register for those that actually turn up (we all know a calendar acceptance doesnrsquot mean theyrsquoll actually appear) This will allow you to chase down the members of the team you need to get on board for the next one

Have some decent sandwiches nibbles and soft drinks and give the team an overview of the GDPR Run through the 12 steps and make sure you educate them on why everything is so important (make sure you mention the increased fines and audits) During this time let the team know that there are several steps along the way that yoursquoll need their help and support for and which you wonrsquot be able to achieve on your own Tell them that the businessrsquos reputation and brand is on the line and that you need everyone on board to lend a helping hand and spread the word

Another great File Queen tip at this stage is also to get some additional funding from the practice manager for a wine and quiz night at the end of the lunch and learn periods This can be part of your social gathering on a Friday straight after work ndash with some more nibbles and wine Assign people to teams and have a GDPR quiz The winning team gets an award and everyone has fun and learns at the same time Follow our twitter feed as wersquoll be tweeting some great questions to ask thefilequeen GDPRQUIZ

We know itrsquos a lot to organise but there are only four months left in 2016 and GDPR practices must be in place by 25 May 2018 And believe me when you have to roll out rather hard core legislation you have to make it fun and interactive to get people on board LPM

ABOUT

NATASHA RAWLEY THE FILE QUEEN

EDUCATING YOUR PROS

ADDSSaving firms from paper hellContact Natasha on0800 328 0272wwwarchivestoragenet

LEGAL PRACTICE MANAGEMENT28

SEPTEMBER 2016FEATURES

28

Patrick Wingrove talks to the founders of Proelium Law about their work providing legal advice in high-risk environments and conflict zones and the challenges of setting up shop in a new and risky area of law

Legal commandosProelium

Compared to the day-to-day lives of Proelium Law founders and partners Richard Stephens (above left) and Adrian Powell (centre) the average lawyer leads a pretty humdrum life Though UK-based the

firm has a strong international focus ndash Stephens and Powell regularly travel to provide legal and business advice to companies and individuals in high-risk professions or working in hazardous environments across the globe including conflict zones in Iraq Syria and Afghanistan Powell says that itrsquos a challenging but exciting area of law to be in and that ldquono two days are ever the samerdquo

The firm was established as an ABS in November 2015 allowing Powell and Stephens to operate as partners although Stephens isnrsquot a lawyer Powell qualified as a solicitor in 2004 after spending 11 years of his career in the British army and post-2006 worked on various high-risk projects around the world ndash giving him the inspiration for Proelium He says ldquoThe idea came to me in Baghdad in 2009 while working for a private security company as a legal adviser ndash I thought lsquoWhy isnrsquot there a firm doing thisrsquo But I soon realised that I needed someone on the ground who wasnrsquot a lawyer to help make it happenrdquo

That person was Stephens He previously served in the Royal Marines worked as a Whitehall-based strategic planner for the UK government and commanded a special operations regiment (which is why we couldnrsquot show you his face but itrsquos a nice issue of LPM) He now works primarily on the business development side of Proelium ldquoJoining Adrian who Irsquod previously worked with on projects around the

LAW FIRM PROFILE

LEGAL PRACTICE MANAGEMENT29

SEPTEMBER 2016FEATURES

world at a firm meant I could do fascinating and important work with the credibility that being a partner in a regulated business providesrdquo he says

Their work has certainly been interesting Proelium has cast its net far within the niche high-risk sector ndash advising UK-based service providers on the complexities of working in hostile environments conducting business and human rights due diligence and ensuring anti-money laundering counter terrorist-financing and anti-bribery compliance for companies intending to run in high-risk areas or conflict zones to name a few Recently theyrsquove also been working on developing capability for national intelligence organisations overseas ndash but for fear of being jailed for treason Stephens and Powell didnrsquot elaborate hellip

Powell says that the challenges companies face in these areas are numerous ldquoTherersquos a real technical knowledge in understanding how organisations physically work overseas These companies are good at what they do but that doesnrsquot necessarily translate into being business-savvy when it comes to operating in frontier markets ndash thatrsquos where Proelium adds valuerdquo For example after a client was recently exposed on an arms deal they were able to quickly discern liability and ensure that all necessary agencies and departments were appropriately informed

Powell and Stephens joke about how theyrsquore the number-one firm in their sector ndash admitting that to their knowledge theyrsquore the only firm that specialises in this area of law They added that itrsquos an untapped niche in which Proelium will be a pioneering force but which has also recently come onto the radar of a larger firm Theyrsquore alluding of course to Proeliumrsquos recent venture with Harrison Clark Rickerbys ndash a joining that combines Proeliumrsquos experience working in high-risk jurisdictions with the manpower and existing defence and security expertise of

HCR Powell says ldquoWhat they donrsquot have is our connections and our experience They like the idea of the sector because they see it as an interesting area and the partnership will allow us to offer a wealth of different legal services while letting us focus on what we do bestrdquo

As part of their ambitions for Proelium Powell and Stephens are keen to train a new generation of lawyers whorsquoll specialise in the high-risk sector ldquoWe have confidence in what the younger generation has to offer and we want them in our industry to continue our work in this relatively untapped areardquo says Powell Stephens adds that itrsquos also a matter of succession planning ldquoWe want the firm to operate long into the future but we donrsquot necessarily want to be running it ourselves for the next 20 yearsrdquo Proelium currently employs two interns as part of this commitment including University of Surrey law student Ruby Jamieson (pictured) She says ldquoWorking [at Proelium] has given me loads of insight already ndash itrsquos very niche

very new and Irsquove really enjoyed helping develop the business I feel that itrsquoll open a lot of doors when I graduaterdquo

In terms of expansion Proelium has recently opened a new office in the City of London Powell says that his home was originally the firmrsquos practising address but a large portion of their client-base is in London ldquoand we couldnrsquot keep having our meetings in coffee shopsrdquo

But Powell and Stephens are firm believers in the concept of remote working which works particularly well for their business

ldquoMost of our clients are either in London or outside the EU so Irsquom always away but all my phone calls are redirected from the new office to my mobile so I can keep in touch with clients whether Irsquom in Dubai or Baghdadrdquo says Stephens Powell adds that he feels remote working has the added benefit of keeping staff happy by letting them work from home which he says certainly makes him more productive as a fee earner

Proelium isnrsquot looking to expand into areas it has no interest in like family law but theyrsquore taking a keen interest in the emerging area of cyber law and are considering taking steps into that world ldquoLike high-risk law no onersquos really wrapped their arms around cyber law yet Therersquos cyber law in the US but it doesnrsquot exist per se in the UK except in terms of data protectionrdquo

When asked what advice they could give to SME firms based on their unique experiences in their sector Powell and Stephens said firms should know the areas of law they practise inside and out Powell says ldquoWersquore concerned with being experts in our field ndash a lot of our clients have peoplersquos lives in their hands and are not in the business of nonsense which is why they come to us We give sound researched legal advice based on experience and if we donrsquot know something we send the client to someone who doesrdquo LPM

ldquoCompanies are good at what they do but that doesnrsquot necessarily translate into being business-savvy when it comes to operating in frontier markets ndash thatrsquos where Proelium adds valuerdquo

Proelium

Two fee earners four total staff

Offices City of London Wirral Cheltenham

Specialisms International criminal commercial and conflict law due diligence sensitive investigations

LPM FACT FILE

ldquod2u is the UKrsquos number one outsourced transcription service for medical and legal professionals and highly competitive all over the world We pride ourselves on saving our clients time and money as well as offering state-of-the-art security and a first-rate servicerdquo Daryl Leigh CEO dictate2us

LPM magazine has agreed a special deal for its readers with dictate2us ndash 5 off your monthly

transcription bill for one year if you sign up through the dedicated LPM link or call and quote LPM2016 when signing up You can trial the service for free before committing

CUT COSTS INCREASE EFFICIENCYAll firms could benefit from outsourcing transcription to dictate2us ndash but even more so with our LPM deal 5 off your first year

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Use d2u and enjoy the benefits ofbull Fast turnaround timesbull Secure and confidential servicebull Secetarial cost reductions of up to 60bull Guaranteed 985 minimum accuracybull iPhone Android and Blackberry apps with one-hour turnaroundbull 100 output - only pay for the time you talkbull Free no obligation trial

This special LPM magazine reader deal only relates to customers that execute an agreement for a minimum term of 12 months with a minimum monthly commitment of 500 minutes LPM magazine sought two law firm references for dictate2us to verify its claims for quality and delivery The 5 deal only applies to the first paying year the customer is with dictate2us LPM magazine is not responsible or liable in any way for work done by dictate2us and is an advertising referrer only

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LPMLEGAL PRACTICE MANAGEMENT

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LEGAL PRACTICE MANAGEMENT31

SEPTEMBER 2016FEATURES

Patrick Wingrove speaks to management leaders from SME and top 100 law firms that have recently achieved significant growth to find out how to go from acorn to oak tree

FROM MINNOW TO

For many SME firms growth is the goal ndash but it doesnrsquot have to happen in the ways that many have scaled in the past The era of organic slow quiet steady partnership development over decades is

increasingly at odds with a fast-paced digital world Strategies for growth in the legal market are now closer than ever to the rest of the business world ndash and any size firm can learn how to do it

Big or small there are similar tools in the box for making growth happen and similar challenges Lessons abound but some of the best can be taken from those firms not far outside the famous lsquotop 100rsquo legal businesses in the land ndash those that have already grown up and now have the top tier in their sights There are also lessons to draw from smaller but rapidly scaling law firms

There are many growth strategies for organic and acquisitive growth ndash and no easy answer for which is right for your firm To shine a light on the subject wersquove spoken both to SME and top 100 firms about growth and how to do it (and importantly how not to do it)

MAMMOTH

LEGAL PRACTICE MANAGEMENT32

SEPTEMBER 2016FEATURES

MODELS OF GROWTH According to the Lawyer the two fastest growing firms in the top 200 this year are Midlands-based Knights and lsquodistributedrsquo firm Keystone Law ndash currently placed 119 and 122 in the 2015 UK 200 rankings but whose revenue will now put them well inside the 2016 top 100 (due for release October 2016) Both attribute their growth to non-traditional business models ndash and very different non-traditional models at that

Knights corporatised in 2014 to remove the barriers from its decision making processes which CEO David Beech says has been the key to its growth ldquoEquity partnerships donrsquot grow particularly quickly because itrsquos hard to achieve consensus and make decisions that enable fundamental or rapid growth among equity partnersrdquo

Knights acquired Oxford-based Darbys earlier this year ndash a move largely behind the revenue increase that will put them in the top 100 ndash and completed the transition inside three months which Beech says would have been next to impossible under their old business structure ldquoNot only was a quick turnaround good for the books it saved significant time and money that could be invested elsewhere in the businessrdquo he says

Top 100 firm Simpson Millar is one step

ahead of Knights The firm broke the glass ceiling to become a top 100 firm in 2015 and like Knights the firm attributes its growing success to corporatisation ndash but in a different manner

It sought to be and was eventually acquired by PLC Fairpoint Group in 2014 Simpson Millar continues to run as an LLP under the same management team and existing trading brands but as a business unit within Fairpoint

Managing partner Peter Watson says that one of the key reasons to pursue this particular growth strategy was to provide an injection of capital for MampA ldquoWe completed the sizeable acquisition of Colemans last year for example which we were only able to do with considerable investment from Fairpointrdquo

Being part of a PLC has also given the firm access to strong MampA and project management capabilities ldquoAcquiring Colemans doubled the business overnight ndash for something like that you need strong MampA experience and access to that team within Fairpoint was crucial in getting the deal across the linerdquo says Watson Simpson Millar also built a strong digital strategy launched new products and focused on pricing ldquoCall it fixed fees or packaged fees the point of it was to say to consumers

Square One Law

Revenue pound5m

31 fee earners 53 total staff

Offices Newcastle-upon-Tyne

Specialisms Commercial corporate property employment EU and competition law finance litigation private client

LPM FACT FILE

Knights

Revenue pound40m (year end 2017)

375 fee earners 450 total staff

Offices Chester Cheltenham Newcastle-under-Lyme Derby Oxford Hale

Specialisms Full service firm

LPM FACT FILE

LEGAL PRACTICE MANAGEMENT33

SEPTEMBER 2016FEATURES

lsquoWith us you know exactly what yoursquoll get and how much itrsquoll costrsquordquo

PEOPLE PLEASERSThe ability to implement change has also been an important part of delivering a growth strategy This isnrsquot necessarily surprising ndash polling at the 2016 Legal Practice Management conference showed that legal business managers thought it was one of the greatest hurdles to a firmrsquos growth or success only topped by acquiring high-quality staff In Knightsrsquo case the two challenges were addressed together Beech says Knightsrsquo corporate rather than partnership structure also allows it to recruit talented people without having to deal with the inherent politics of an equity partnership

ldquoAcquiring the best talent has been a central part of our growth strategy ndash if a candidate can help the business through expertise or client following we can just recruit themrdquo he added

But a successful growth strategy incorporating talent isnrsquot just about recruiting quickly as we analysed in the July 2016 issue of LPM ndash itrsquos about recruiting well Firms also need to make themselves an attractive prospect for legal talent in order to grow

William Robins operations director at Keystone Law says his firmrsquos lsquodispersedrsquo model allows it to do that by offering new fee earners the chance to work remotely with less supervision ldquoWersquore typically hiring about a lawyer a week ndash bringing their expertise fee-earning capability and client following with them ndash and that is the core part of our growth strategyrdquo The firm has buttressed its recruitment capability by hiring a director of recruitment to focus almost entirely on lawyer enrolment (recruiting talent to recruit talent ndash neat)

Though the distributed model may not be for everyone says Robins implementing some form of flexible mobile or remote working should be part of any firmrsquos growth strategy because it allows firms to increase their fee-earning capability without accruing fixed overheads such as office premises

And there are other ways to be talent-attractive As a core part of its growth strategy Newcastle-based firm Square One Law ndash which achieved 30 growth in the

last financial year ndash has pledged to create a supportive and inspirational team environment offering high-calibre work to attract the best talent Ian Gilthorpe senior partner at Square One says ldquoGood people want to be inspired to be valued for what they do and feel as though theyrsquore making a contribution The key is to engage with all your staff to facilitate a culture where staff feel happy at work work for each other trust each other and ensure that they see the value in what they do ndash if you do that more talent will comerdquo

He added that itrsquos important for

recruitment to convey staff satisfaction to the outside world which Square One has achieved by including staff video-testimonials on its website

But recruiting is only half of an effective people strategy ndash the other is retention Simpson Millar has attempted to create an environment that its talented staff wonrsquot want to leave Says Watson ldquoToo many firms worry about what will happen if their rainmaker goes somewhere else and takes clients with them ndash so they put the shackles on make them feel unhappy and make it so that they canrsquot realise their full potentialrdquo Creating such an environment makes firms an attractive target for lateral hires when they should be building a place people want to join

PRACTICE AREASSME legal businesses donrsquot necessarily need to change their business models completely to achieve the same growth as

Thorntons

Revenue pound20m

209 fee earners 430 total staff

Offices Dundee Edinburgh St Andrews Perth Cupcar Kirkcaldy Anstruther Arbroath Montrose Forfar

Specialisms Full service firm

Keystone

Revenue pound202m

198 fee earners 230 total staff

Offices London Bristol Isle of Man Australia

Specialisms Corporate and commercial dispute resolution property

LPM FACT FILE

LPM FACT FILE

Equity partnerships donrsquot grow particularly quickly because itrsquos hard to achieve consensus and make decisions that enable fundamental or rapid growth among equity partners David Beech CEO Knights

Simpson Millar

Revenue pound316m

322 fee earners 539 total staff

Offices Birmingham Bristol Cardiff Cheadle Hulme Gateshead Kingston-upon-Thames Lancaster Leeds Park Place Leeds St Pauls Street (head office) London Manchester Newcastle

Specialisms Full service firm

LPM FACT FILE

LEGAL PRACTICE MANAGEMENT34

SEPTEMBER 2016FEATURES

our examples but removing blockers from decision-making making themselves more attractive to talent and finding the right funding for growth are increasingly important and the partnership structure may not enable it

But of course that means asking some turkeys to vote in a Yuletide election Fortunately there are other ways to achieve impressive growth mainly investment andor expansion into new geographic or practice areas

Watson says that Simpson Millar wouldnrsquot have been an attractive prospect to Fairpoint had the firm not spent time growing organically by expanding into new areas of law

ldquoWe went from being a predominantly trade union PI firm to having a broad base of 16 types of work ndash with strong heads in charge of each committed to driving growth in their departments ndash which gave us a large boost in revenuerdquo The firm achieved this through small acquisitions of other firms that had expertise in particularly lucrative areas of law

But firms shouldnrsquot just look at expanding in lucrative areas ndash they should focus on areas where their reputations deliver an advantage Scotlandrsquos Thorntons for example ndash which last year leapt from 134 to 108 in the 2015 UK 200 rankings ndash invested in six departments as part of its growth strategy

Thorntons joint managing partner Scott Milne says ldquoWe didnrsquot exclude other areas but we saw that these areas were profitable and that more importantly we had considerable expertise in them ndash we also considered that these are areas that are unlikely to be affected by future economic downturnrdquo This included investing in niche areas of law where the firm has a geographic competitive advantage ldquoWersquore lucky to be surrounded by some of the best farmland in the UK ndash wersquore well known for our expertise in rural business law which is why we invested heavily in itrdquo

ORGANIC V ACQUISITIONIn several ways choosing an effective growth strategy very much boils down to MampA versus organic growth ndash every business model talent or area expansion strategy appears to revolve around one or both But which is the best to achieve the kind of growth thatrsquoll propel firms to a lsquohockey stickrsquo on their revenue forecasts The short answer is it depends on whatrsquos best for a firm at a given time It either

needs to fit the firm ndash or the firm needs to change to fit the goal

Beech says that acquisition has been excellent for Knights because itrsquos a fast and effective form of expansion ndash the acquisition of Darbys more than doubled its revenue But MampA poses a significant challenge to finding firms with the right cultural fit

ldquoFirms need to establish a single culture in order to implement growth ndash everyone needs to be working towards the same goalrdquo He added that when a firm completes a merger or acquisition that firm has to be integrated from day one which is much more difficult if it has a significantly different culture Knights is planning to continue recruiting and complete more acquisitions in the next year to maintain the growth curve

Of course the big problem with acquisition is money Robins at Keystone says his firm lies at the opposite end of this

INFORMATION IS EMPOWERING

Lemington Spa-based firm Wright Hassall has a specific goal of breaking into the top 100 and as part of its growth strategy expanded into areas of the UK where its expertise is highly sought after ndash using customer relationship management in the background to underpin the firmrsquos activities in specific areas Martyn Wells IT director at the firm says ldquoWersquove zoomed in on specific industry sectors that we know are performing well in the Midlands sectors where we have a superb reputationrdquo Expanding geographically as Wells outlines needs data to get right Thorntons for example identified various lsquomicro-marketsrsquo in Scotland close to its base of operations ldquoWe acquired a firm in St Andrews because itrsquos like a micro-economy (or micro-market) that doesnrsquot seem to be affected by price drops in the residential market elsewhererdquo says Thorntons joint managing partner Scott Milne Knights has another take on the geographic targeting idea ndash it intends to stay out of the large cities (London Manchester Leeds for example) and expand into areas where there is little competition As David Beech CEO at Knights explains ldquoLast September we acquired a small team in Chester of about 11 lawyers and now thatrsquos expanded to just over 70 ndash and the main reason wersquove been able to do that is because there isnrsquot a lot of competition thererdquoUltimately this all comes down to research finding out what to invest in or where to expand and perhaps most importantly finding out what clients want

LEGAL PRACTICE MANAGEMENT35

SEPTEMBER 2016FEATURES

spectrum to the way Knights has grown emphasising organic growth finding innovative means to attract talent using technology to drive efficiency and branching out into new areas of law or new markets to achieve significant growth

Square One Law also espouses the organic route ndash believing that firms with growth in mind should focus on ensuring their external brand reflects the businessrsquos internal culture and behaviours of its team creating lsquosynergyrsquo between the business and its clients

Gilthorpe says ldquoMergers ndash and there is no such thing as a true merger ndash and acquisitions can be a distraction as you look to create a new culture and separate the wheat from the chaff and this can soak up a lot of energy that would otherwise be put to use in driving the progression of the business and the focus on client servicerdquo

The best option for some firms may be a

calculated combination of MampA and organic Thorntons for example having made several acquisitions is now focusing on organic growth moving away from geographical expansion and towards developing locations and its brand

Watson at Simpson Millar sums the mixed approach up thus ldquoItrsquos a mixture Acquisition is still very much a part of the mix but in parallel to that itrsquos important to demonstrate that yoursquore developing ongoing work rather than being driven solely by acquisitionrdquo

There are clearly many different ways to achieve healthy and assertive growth though there are no easy answers as to which way is right for your firm But it is clear that growth doesnrsquot have to happen in the ways many have previously achieved it ndash innovation and lateral thinking are the means of achieving significant growth (which might one day propel you into the top 100 you never know) LPM

LEGAL PRACTICE MANAGEMENT36

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

INDUSTRY VIEWS

36LEGAL PRACTICE MANAGEMENT

Legal is becoming an ever more digital industry giving firms the chance to become more efficient flexible agile and collaborative

INDUSTRY VIEWS INDEX

ONLINEOFFICES

36

SPONSORED EDITORIAL

INDUSTRY VIEWS

37 INTERVIEW

Paperless processLinetimersquos Tony Klejnow explains the benefits of using matter management software for law firms and their clients

39 INTERVIEW

Virtual expansionNigel Redwood Nasstarrsquos CEO talks about the advantages of having a managed flexible IT infrastructure

LEGAL PRACTICE MANAGEMENT37

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT37

Competition and price pressures and an increasingly digital client base are all significant drivers for law firms to become paperless

businesses Tony Klejnow Linetimersquos managing director says firms could achieve competitive advantage by introducing paperless solutions across their businesses ndash but a particular lsquoeasy winrsquo area is matter management

ldquoFee earners are required to keep detailed records of their cases but the amount of time and money they waste physically printing filing looking for collaborating on and updating files is alarmingrdquo says Klejnow Law firms have traditionally been reluctant to adopt paperless

workflow solutions he adds because workflow doesnrsquot apply to 99 of fee earnersrsquo work ldquoBut if they adopted paperless solutions in their back office processes they could reduce costs without affecting client service boost productivity and promote collaboration ndash making them more efficient flexible and cost effective and making them more competitive in an ever-changing legal marketrdquo

MATTER MATTERSDocument and matter management tools ndash like those in Linetimersquos legal software product Liberate ndash electronically store and organise all case documentation in an online database Klejnow says that there are two immediate benefits of paperless matter

PAPERLESS PROCESS

Tony Klejnow managing director at Linetime talks to LPM about the benefits of the paperless office ndash starting with filing and back office processes

INDUSTRY VIEWS

Linetime is a specialist provider of Microsoft-based practice and case management solutions Clients include mid-tier law firms and in-house legal departmentswwwlinetimecouk

ABOUT THE SPONSOR

SPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT38

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT 38

management The first is reducing paper and storage costs

ldquoIf case documentation is electronically stored once a case is finished you no longer have a five-inches-thick file that has to be stored for six years ndash which has to reside somewhere and costs firms time space and moneyrdquo The second is eliminating filing time ndash for example instead of printing and filing emails and attachments fee earners drag and drop emails directly from Outlook into the database ldquoand attachments are automatically stripped from emails and appropriately filedrdquo says Klejnow

And Klejnow says paperless filing systems donrsquot just facilitate efficiency this way ndash they also improve general process efficiency by facilitating collaboration between fee earners Solicitors can use document and matter management to view and work on matters at the same time a difficult if not impossible prospect when working with paper files Klejnow says ldquoWithout document management legal professionals work in silos but with it they immediately share datardquo He adds that Liberate has an additional collaboration tool to help further improve collaborative efficiency in firms ldquoIf I choose to lsquocollaboratersquo a document with you on Liberate Outlook will prompt you to review that document by simply acknowledging the notificationrdquo

In this respect moving to become a paperless business provides greater flexibility for fee earners who can collaborate with colleagues working remotely or in different offices Klejnow says ldquoPaper files can only reside in one location but electronic files can be accessed from any office and when working from home or with clientsrdquo On the other side of the coin having digital files maintains a greater level of productivity in a law firm office ldquoIf your colleague is absent from the office you can easily find documents that you might have otherwise wasted a significant portion of your day looking forrdquo he adds

Improved external collaboration is also a benefit that firms can reap from paperless matter management With an electronic system you can go into a case history bundle documents into one PDF file and quickly submit that to the third party improving collaboration between fee earners and clients who want to do everything online This has the added benefit of improving accuracy and facilitating greater efficiency by involving clients in the process ldquoGood matter management software should also let you push e-forms to clients to be filled in and that information is automatically transferred straight to the online database ndash which saves fee earners

time and is a more accurate because the information doesnrsquot have to be constantly re-enteredrdquo says Klejnow

This extra level of collaboration within legal businesses that hasnrsquot been possible until now has long been needed because it improves efficiency and productivity which makes the business more profitable and competitive Klejnow adds that what firms save by adopting matter management they should reinvest in becoming fully paperless digital businesses

ldquoCase management solutions can improve efficiency to an even greater extent and keep firms competitive in the age of the alternative business structuresrdquo

VISIBLE COMPLIANCEIn response to firms reluctant to adopt paperless technologies like document and matter management for fear of losing delicate information to cybercriminals Klejnow says those systems provide an additional level of security ldquoTaking data and attachments out of Outlook and storing them on a database is much more secure than leaving them on your hard drive If you leave

your laptop on a train for example all your important data is safely stored on a server and not instantly accessible by opportunist criminalsrdquo

Document and matter management also offers a greater level of security in fee earner and client communications ldquoIf I want you to check that the data we have for you is accurate Liberate will

direct you to a page holding your data and at the same time it will push out an SMS text with a pin code to your phone Unless you input the code you canrsquot get to the web page ndash which means if one of your solicitors accidentally sends an email to the wrong person or itrsquos intercepted it doesnrsquot matter The data stays safe ndash this level of security is crucial in this age of cybercrimerdquo

These security features clearly have significant benefits for compliance which is important in a market increasingly dictated by regulation including the relatively new General Data Protection Regulation says Klejnow

ldquoCompliance officers need to be seen by regulators to have monitored and reviewed everything thatrsquos happened in their firm which is considerably easier with a paperless system Liberate has lsquoversion controlrsquo which allows compliance officers to keep tabs on every change made to a document as well as a compliance module which lets them view whatrsquos happening on a case (to ensure that money laundering checks have been carried out and so on) and records the fact that yoursquove reviewed thisrdquo LPM

Without document management legal professionals work in silos but with it they immediately share data

INTERVIEW

LEGAL PRACTICE MANAGEMENT39

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LPM readers may already know the Nasstar Group ndash but by a different name Nasstar was launched by regular LPM-contributor e-knownet to consolidate four discrete hosted

managed IT businesses (including e-knownet) after a period of significant acquisition Nigel Redwood chief executive officer at Nasstar says merger and acquisition and consolidating brands is challenging but having a flexible hosted IT infrastructure makes the process significantly easier

ldquoManaged IT services are enormously beneficial for firms that are expanding or consolidating particularly after MampA in terms of time and productivity cost savings and flexibilityrdquo He adds that by just having managed desktops firms can attain competitive advantage by reducing overheads and becoming more flexible and agile

Nasstar has experience helping SME firms with their IT systems after MampA and knows what problems to look out for creating unity among staff used to using different systems and processes the cost and time it takes to expand an IT infrastructure and the geographic distance between new offices

Redwood says that MampA can be an excellent way for legal businesses to expand into new sectors but that consolidating new departments using different IT systems and processes is challenging

ldquoOur acquisitions for example introduced new sector focuses for us in the SME legal market ndash wersquove consolidated these into a wider service base under Nasstar and facilitated unity among staff using virtual IT solutions

rdquoVirtual IT solutions help facilitate unity across the business by providing a level of consistency in an IT infrastructure Everyone immediately uses the same applications on the same versions from wherever theyrsquore working creating unity faster collaboration across teams and effective information sharingrdquo Hosted IT infrastructures are also continually updated giving staff instant access to new updates applications and technologies as they become available

The next significant challenge firms face after MampA is expanding their IT infrastructure to accommodate an influx of new staff ndash but Redwood says virtual IT solutions let firms expand their IT infrastructure at the flick of a switch

ldquoWith virtual IT firms arenrsquot held back by the size of their servers or the amount of computer power theyrsquove got ndash they simply call their IT provider and ask for an upgrade when previously theyrsquod have been

subject to lengthy and costly IT upgradesrdquo Virtual IT solutions are also easy to budget for

Redwood says ldquoYoursquore not going to be surprised by an increased fixed asset expenditure ndash services like those offered by Nasstar are an operational cost and fixed per user per month through a scalable cost modelrdquo

Geographic distance inhibiting collaboration between merged offices is also a key consideration for firms after MampA but virtual IT solutions solve this problem Redwood says a virtual IT infrastructure can minimise travel through the use of hosted virtual meeting rooms and video technology Staff can use this technology from virtually anywhere which is why it also lends itself well to remote flexible or mobile working set-ups

VIRTUAL WORKPLACERemote working is becoming an increasingly present feature of the legal landscape because of its cost saving and recruitment and retention advantages ndash the majority of firms at the LPM conference 2016 were moving towards a flexible remote or mobile working set-up or already had one

Redwood says virtual IT solutions better enable staff who work remotely ldquoHosted managed desktop solutions for example let staff work with the same applications from any device in the world safely and securelyrdquo

But remote working isnrsquot only about enabling the current workforce itrsquos about attracting future talent Redwood says that millennials donrsquot necessarily want to work as their predecessors did ndash they expect greater flexibility in the workplace which at one level can be achieved by remote working facilitated by a managed desktop

ldquoAnd itrsquos not only about attracting millennialsrdquo he says ldquoSME firms with flexible working set-ups are becoming more attractive to experienced legal talent who may be frustrated by the rigidity of their firmrdquo As a firm expands its workforce in this manner firms with virtual IT solutions reap the lsquodoublersquo cost saving benefits of not having to expand their premises or IT infrastructure accordingly

Some firms are resistant to remote working based on hosted IT services believing they arenrsquot secure ndash but Redwood says that argument ldquocan be put to bedrdquo

ldquoFor an in-house IT team to have the level of security that an organisation like ours can deliver is near impossible financially as well as in terms of the

VIRTUALSANITYNigel Redwood CEO at Nasstar talks to LPM about how managed IT can help SME firms achieve competitive advantage by making them more agile and flexible

LEGAL PRACTICE MANAGEMENT40

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

INTERVIEW

level of systems and technologies they deployrdquo Cybercrime is of course a scary and constantly evolving threat but Redwood points out that virtual IT systems have dedicated teams monitoring these threats evolving cyber defences and changing systems accordingly

ldquoThis capability not only makes [firms] a lot more secure but gives peace of mind in terms of compliancerdquo

ONLINE ADVANTAGE Redwood says virtual IT infrastructures donrsquot just pertain to lsquobig lawrsquo but to SME firms as well ndash perhaps more so

ldquoVirtual IT systems are a way for SME firms to stay competitive against their larger

counterparts and ABSs ndash it gives them a greater ability to expand it lets them adopt more flexible and agile models and is easy to budget forrdquo Firms can also expect virtual IT solutions to enable better alignment of IT resources to business needs enhanced usability with anywhere anytime access and in-built business continuity

But the greatest advantage virtual IT offers SME firms over big law is agility Redwood says ldquoBig IT departments in firms can be slow to react cumbersome and held back by the limitations of hardware infrastructure and security issues ndash all of that is removed with a solution like ours and the customer has access to fast-moving agile ITrdquo LPM

ABOUT THE SPONSOR

Nasstar is a provider of managed IT services and tailor-made cloud hosted solutions ndash delivering innovative secure and agile IT to help clients accomplish their business objectiveswwwnasstarcom

Page 9: LPM September 2016

NOVEMBER 2016

VISIT LSNCOUKLPMB2016CALL RIKKI CLARK ON 0870 112 5058

EMAIL RIKKICLSNCOUK

BIRMINGHAM

THE ONLY EVENT FOR MANAGEMENT LEADERS IN SMALL

AND MEDIUM-SIZED LAW FIRMS

ONE-DAY CONFERENCE

6338 LSN LPM Nov 2016 Book Now_03indd 1 30082016 0939

LEGAL PRACTICE MANAGEMENT11

SEPTEMBER 2016IN PRACTICE Follow us and talk to us on Twitter LPMmag

THE WAY TO WHY

BOOK REVIEW

One way of assessing the value of a book like this is by reference to the number of times it makes one think of something it can be applied to in your own career or organisation On that measure

alone Designing the Purposeful Organisation passes with flying colours

At the heart of Wilsonrsquos philosophy is the idea that to be successful organisations must be able to articulate compelling and inspiring reasons for their existence ndash not simply what they do but rather why they do it The usual poster boys for 21st-century business success are quoted as exemplars of this approach - Apple Google Microsoft Reference is also made to Simon Sinekrsquos TED talk (278 million views and counting) and related book Start With Why as a means of uncovering the primary reason for an organisationrsquos existence Indeed a key element of Wilsonrsquos writing style is to send the reader off at regular intervals to take in a TED talk or YouTube video or to reflect in more detail around the topic at hand This does at times make the book feel more like a business coaching session rather than a dry management treatise ndash which for the avoidance of doubt this reader sees as a definite plus point

While the stories around behemoths such as Apple and Google can be compelling I was more taken with the example of the African tax collection agency that Wilson was working with Rather than seeing themselves as taking money from people (the lsquowhatrsquo) he encouraged them to focus on their purpose namely to help fund new schools and hospitals across their developing nation (the lsquowhyrsquo) Articulating the why is also a key element of an organisationrsquos brand proposition Wilson reminds us that customers are more often than not buying why an organisation does something rather than simply what the organisation does Or put another way how many customers would be inspired to have brand loyalty for a firm which simply says that its fundamental reason for being is to maximise shareholder returns

Before anyone starts fulminating about the importance of financial returns Wilson does recognise that results matter However his concern is that they too often become all consuming A key pillar of the book is his belief (which he concedes may be controversial) that overly focusing on results is misguided and can create systemic barriers to better performance Or put more simply results measure our progress to a better future ndash they are not in themselves that better future

This is certainly something that chimed for me as the CEO

of a law firm Yes we all recognise the need to deliver improved financial KPIs However these are simply a means of measuring whether we are delivering value to our clients (given that clients are unlikely to be using and paying for our services where they do not perceive us to have any value) and are unlikely to be the things wersquoll look back on with pride in our dotage

This reassessment of the role of results is also central to one of the key conditions for a more purposeful organisation (and one which will particularly resonate with professional services firms) namely talent liberation Drawing on the work of Daniel Pink on personal motivation (for example Drive The Surprising Truth About What Motivates Us) Wilsonrsquos call is for firms to move beyond transactional performance (pay me X and Irsquoll deliver Y pay me a bit more than X and Irsquoll deliver a bit more than Y) Rather we need to help our people liberate the talent they have by playing to their strengths as opposed to the more traditional performance management model of fixing weaknesses

Wilson focuses particularly on how the proper articulation of purpose can engage millennials Borrowing from Laurence Boldtrsquos Zen and the Art of Making a Living he encapsulates this approach in three short questions What skills and other resources do you have What do you care about Whatrsquos stopping you from pointing A at B

It seems to be that in most law firm management seminars or discussions these days someone somewhere is lamenting the fact that they just donrsquot understand millennials And at last I have an answer for them ndash read Clive Wilson LPM

LPM reader discount ndash use code HRLPMB to get 20 off at wwwkoganpagecom

Designing the Purposeful Organisation How to Inspire Business Performance Beyond Boundaries by Clive Wilson

Publisher Kogan PagePublication date Feb 2015Price pound2999

Reviewer Chris Harte chief executive and partner at Morton Fraser

Have

heardyou

Proclaimreg is the only Practice Management Software solution Endorsed by the Law Society

Contact us for a demonstration ndash see the Proclaim difference

CALL 01274 704 100wwweclipselegalcouklawsocietylawsocietyeclipselegalcouk

It speaks volumes that Proclaim Eclipsersquos market-leading system is the solution of choice for 23000 legal professionals in 900 organisations Proclaim encompasses practice case and matter management and is now the only system to be endorsed by the Law Society

From new start-ups to industry heavyweights Proclaim is the system of choice for forward-thinking law firmsbull Fully integrated Practice Management Software solution bull SAR-compliant legal accounting bull End-to-end case and matter management workflow processes bull Ready-to-go workflows for specific practice areasbull Fast to implement easy to use

LEGAL PRACTICE MANAGEMENT13

SEPTEMBER 2016COLUMNS

Barry DaviesPractice directorDouglas-Jones Mercer wwwdjmlawcouk

BARRY DAVIES PRACTICE DIRECTOR

ROLE MODELS

ABOUT Recent figures show that there are a shade over 130000 people on the roll of solicitors in England and Wales ndash 20 of those undertake an in-house role 80

are classed as employed An enormous number and this is before we consider the significant chunk of employees namely professional managers support staff and those lawyers who are not on the Law Society roll But lots of firms I speak with say lsquowe have too many partnersrsquo or they have reduced the number of lsquochiefsrsquo within their practice as part of their strategic planning

Where are we going with this What will the future firm look like What will its stakeholders (not necessarily shareholders) expect

The two facets that will impact upon the future will undoubtedly be generational attitudes and technology Though advancements in processing power will mean huge growth of AI systems over the next decade I think generational attitudes is the facet thatrsquos most interesting right now

Generation X lawyers (born between the early 1960s to mid-1970s) are often already partners This generation and the baby boomers before them are usually motivated by achievement and money Generation Y lawyers on the other hand (born in the 1980s or 1990s) are looking for something else Fearing that I sound like a textbook ndash specifically Frederick Herzbergrsquos theory of motivation hygiene ndash itrsquos not money thatrsquoll be the key factor in recruiting millennials but other drivers such as networks recognition quality of work and conditions

Developing reward and recognition strategies is

difficult enough for partners ndash so how does a law firm tackle its entire workforce A few years ago I held a discussion with a law firm partner and a question put to me was could the lsquoJohn Lewis modelrsquo fit a law firm This term is not only synonymous with the department store it has become a household phrase

Quite a few law firms have for some time now introduced a corporate partner ndash a limited company ndash as a partner within its practice with the intention of dealing with distribution of profits more efficiently or as part of a bonus pool So itrsquos quite interesting to hear that a highly regarded firm in the south west Stephens Scown has developed a similar model to the John Lewis theme

Whatrsquos different about this example is that a proportion of the firm is owned by a trust for its employees and not just its partners This gives the employees of the firm a greater sense of belonging and the added impetus to do well I am certain that some critics would question the mechanics of such a scheme and perhaps the barriers to entry such as defined profit levels but setting this aside it is a means of boosting staff engagement and eradicating the lsquothem and usrsquo mentality

With complications in all corners of law firm ownership new models will have to be explored to cover aspirations of all involved There could come a time when a crowdfunding option is explored generally and maybe the household name for staff stakeholder mechanisms in law firms will be the Stephens Scown model LPM

LEGAL PRACTICE MANAGEMENT14

SEPTEMBER 2016COLUMNS

In the April issue of LPM Stepien Lakersquos practice director Richard Hill brilliantly spelled out what to look for when trying to spot a lsquowhalersquo or big lsquophishrsquo ndash a situation where an

individual or firm is targeted researched and then duped into sending money to a cyber attacker

But just as awareness is essential so too is preparedness I thought it might be helpful to share some of the practical considerations that will help keep client funds safe (a requirement of principle 10 in the SRA handbook) including some things wersquove done in our firm in response to these very real threats

Perhaps the most feared event among all law firms is the very well-publicised lsquointercepted emailrsquo (dubbed the lsquoFriday fraudrsquo) But would we be surprised by just how many firms lawyers and clients freely provide bank details within the body of text in an email

This is an area where we recently tightened our procedures and introduced an explicit rule all bank details provided by a client especially in any email communication must be verified by a lawyer (by reconfirming those details with a person they know) The lawyer then signs to say that they have checked them

This has produced some unexpected benefits particularly for one client who provided bank details to us within the body of an email for remitting the proceeds of sale for his family business of pound32m When the lawyer contacted him to verify that the bank details were correct the client realised that he had transposed two numbers

Clearly this is a serious education piece not only for those responsible for finance and the lawyers within the firm but externally for the firmrsquos clients

There are a number of practical points to bear in mind when it comes to day-to-day security matters how do your lawyers communicate the client account details to its clients and do you always attempt to obtain client details for the remittance of funds at the start of the transaction for instance

Additional considerations might be when did you last review any bank payment elements in your email disclaimers terms of business and client care letters Is your payment procedure well-defined and documented (not just the finance element but also those relevant to clients and lawyers) And do you use any law firm identification checklists

These important issues should remain on the agenda so that theyrsquore constantly in colleaguesrsquo minds with regard to maintaining safe and efficient practices

There are some excellent resources available from your bank that can help to educate your colleagues and there are so many simple steps we can all take to make people aware of the problem Have you tried sending a few test phishing emails to individuals within the firm for

GLYN MORRIS FINANCE DIRECTOR

ABOUTexample to see how they respond

But what then If you are confronted with the metaphorical warning cry of lsquothar she blowsrsquo how will you and your people react You may need to have created a well-communicated process for dealing with a phishing incident

The 1851 classic Moby Dick tells the story of one manrsquos obsessive quest for revenge on a giant white whale ndash we might want to take just a hint of Ahabrsquos obsession in our approach to tackling the issue of cyber attacks Although if we can avoid the whale in the first place all the better LPM

THAR SHE BLOWS

Glyn MorrisFinance director Higgs amp Sonswwwhiggsandsonscouk

0800 328 0272 | wwwarchivestoragenet

ldquoLet us find the right records management and storage solution for your legal practicerdquoThe File Queen ADDS

File Storage

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LEGAL PRACTICE MANAGEMENT16

SEPTEMBER 2016COLUMNSSPONSORED EDITORIAL

DOUG HARGROVE THE TECHNOLOGIST

DISRUPTION TO GO

ABOUT Change isnrsquot anything new itrsquos just another word for evolution But lsquodisruptionrsquo is certainly one of the words of the decade and one that is

usually connected to revolution ndash a significant alteration to the status quo and one that has far more immediate impacts

Disruption is also the go-to word for business commentators ndash especially when it comes to lsquodisruptive techrsquo ndash talking about new business start-ups or innovations Take the very latest craze to hit the headlines ndash Pokeacutemon Go has seemingly gripped the world these last few weeks with stock valuations heading skyward and comments about the app lsquodisruptingrsquo mobile gaming But therersquos nothing disruptive about the game it takes and utilises technology thatrsquos been around for nearly a decade (geolocation and augmented reality) and applies it in a new way Itrsquos that application of technology thatrsquos causing the disruption

Businesses like Uber and Netflix have built compelling business models on the groundwork of technology that is now pervasive (the smartphone and broadband internet respectively) Therersquos a lot here that firms can learn from itrsquos not necessarily about inventing new technology but about finding ways to use existing technology to create a new approach

So what opportunities are there for law firms to disrupt This can be looked at in two ways ndash disruption to the existing law firm business model and disruption to the user experience The first scenario has already been covered at length and is nothing new for the legal market there are already plenty of law firms out there

looking to change the way a law firm delivers its services to its clients and prospects ndash from franchise models to virtualised law firms Disruption to the law firm business model has been an ongoing force ever since the term ABS became associated with legal practices

The second scenario is a different matter It seems legal clients have been patiently waiting for the lsquodisruptive service deliveryrsquo model to come and there is plenty of opportunity out there for firms to position themselves differently with the modern consumer of legal services

Take a brief example of where old (or rather existing) technology can be used to differentiate ndash videoconferencing Itrsquos a fairly ubiquitous piece of technology thanks to the rise of Skype Facetime and the webcam which gives an instant user experience and a one-to-one connection that bridges the remoteness of a phone call and the need to travel for a meeting It doesnrsquot take much of a leap to imagine a service that allows consumers to access a lawyer instantly using this technology (maybe even a concept that combines the franchise model with an Uber-style app ndash connecting clients to the next available expert from a selection of associated law firms) The point is you donrsquot have to invent something new to be a disrupter ndash donrsquot be afraid to take existing technology and repurpose it to gain a competitive advantage

There are plenty of consumers of legal services who are willing to try out a new service or offering in the search for that great new experience ndash and for those law firms prepared to take the risk and disrupt there really is an opportunity to catch lsquoem all LPM

Advanced LegalRevolutionary solutions for legal services Contact Doug on 01476 573 718wwwadvanced-legalcouk

Advisory

Design

Development

Delivery

Support

If you would like to know morethen please get in touch

wwwsoftclcominfosoftclcomFREEPHONE 0808 164 0000

Leeds office15 St Pauls Street Leeds LS1 2JG

Manchester officeExchange Quay Building 8 Suite 21 Salford Manchester M5 3EJ

Helping Law Firms to improve business performance through their use of IT

C

M

Y

CM

MY

CY

CMY

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LEGAL PRACTICE MANAGEMENT18

SEPTEMBER 2016COLUMNS

JANINE PARKER THE BROKER

WHAT PRICE EXCLUSIVITY

Itrsquos that wonderful time of year when the annual bombardment of brokers begins on your never-silent telephones All of them can ldquocarry out a full market exerciserdquo for you that will of course save you money

But whatrsquos the reality The marketplace is still murky and as a profession we donrsquot help ourselves by keeping it opaque So letrsquos objectively consider many of the claims brokers make attempt to clarify the true mechanics behind the market and consider how to best utilise it for the benefit of your firm

Since 2000 and the demise of the Solicitors Indemnity Fund competition for solicitors professional indemnity has increased This hasnrsquot always been generated through the number of insurers but the ever-increasing number of brokers who purport to be experts in this very niche area of insurance This has increased pressure on insurers to lower prices (a good thing for clients up to a certain point) but this pressure combined with some extreme economic factors has contributed to many insurers withdrawing from the market over the past decade

Competition is good for consumers and it encourages innovation to make sure that brokers and insurers can differentiate themselves by developing their product offering

Some brokers organise lsquoexclusiversquo arrangements with insurers often segmented by the number of partners within the firm ndash which is a very artificial way of dividing up the profession But this is the marketplace wersquore in today and itrsquos worth looking a little closer at these lsquoexclusivesrsquo

All the direct access points are listed in the Law Society buyer guide and in practice itrsquos only a handful of brokers who actually hold the exclusive with direct access to the underwriters It is essential to note that these exclusive agreements are not always lsquotiedrsquo arrangements The broker is not bound to place all their business with their one exclusive insurer and itrsquos often the case that those brokers who hold the exclusive arrangement also enjoy strong relationships with the open market insurers

To increase distribution brokers who hold exclusive arrangements will offer access to other brokers who wish to take advantage of the exclusive products available These brokers donrsquot have their own facilities There are many commercial reasons for opening an exclusive to other brokers but itrsquos important to note that the extra broker in the chain will dilute your relationship with the placing broker and ultimately your insurer Marketing materials can often be unclear as access to exclusives is readily used ndash but in reality these brokers will be approaching another broker to do this

Often law firms will be unaware of the number of brokers in the chain and will unwittingly be paying additional brokerage and fees unnecessarily Direct access allows for better communication between your firm and insurers which can often lead to more competitive pricing Removing a broker from the chain can lead to the process of claims handling being more efficient and effective as there are less obstacles in the chain of communication

In summary no one broker has direct access to every insurer and it is possible to approach more than one broker and not be at risk of flooding the market If using more than one broker be clear who you would like them to approach and be aware whether they have to go through another broker to ultimately reach the insurer LPM

ABOUT

SPONSORED EDITORIAL

ParagonBetter broking for legalContact Janine on 020 7280 8200wwwparagonbrokerscom

LPMLEGAL PRACTICE MANAGEMENT

SUPPLEMENT SEPTEMBER 2016

BUSINESS INFORMATION FOR EVERYONE IN PRACTICE MANAGEMENT

LPM INSIGHTS

Sponsored by

How do SME law firm management leaders see the future

LEGAL PRACTICE MANAGEMENT20

SEPTEMBER 2016LPM INSIGHTS

ALL CHANGE

22WHATrsquoS NEXT We analyse the 2016 LPM conference polling data

2 1 COMMENT Accesspointrsquos Richard Roebuck on legalrsquos increasing digital dangers

Change and transformation are words that strike fear into the most hardened of legal management hearts because they are hard to do and even

harder to make stick But change must happen inside todayrsquos SME law firms to make sure they stay in business in tomorrowrsquos world

At this yearrsquos Legal Practice Management conference in London we polled our audience of law firm management delegates on a range of topics Some questions wersquove been asking since our first LPM conference back in the misty era of 2012 Much has changed in the world since then (new UK governments drones are now lsquoa thingrsquo Donald Trump) but legal not so much The rise of the ABS has been slow (though impactful) and the recession has for many businesses faded into a distant memory compared to the Brexit debate

But SME law firms rightly smell a real need for change in the wind ndash and perhaps though they seem to find it hard to name that change the clues are legion Letrsquos find some

LPM London 2016 delegates named the greatest hurdles to their firmsrsquo growth or further success as lsquoacquiring high-quality staffrsquo and the lsquoinability to create change within the firmrsquo Might the solution to one lie in the other Great talent wants to flock to fresh and vigorous businesses and younger legal eagles are increasingly shy of throwing their lots in with the fusty world of partnership Law firm leaders must look at how their businesses are run and who runs them and how people work if they are to attract great people ndash and in doing so they will create the change they seek

Herersquos another 52 of delegates named lsquoclient pressures on costrsquo the factor thatrsquos having the biggest impact on the SME legal market ndash but when asked how important price is when winning business 67 said itrsquos just lsquoone of a range of important factorsrsquo while 21 said itrsquos lsquonot as important as other things such as relationshipsrsquo This is a disparity I canrsquot quite understand but it doesnrsquot sound like the SME legal market truly gets the shift thatrsquos happening on the client side and how much change needs to happen inside firms to meet this challenge

Read on and come to your own conclusions but I think the clues are now becoming obvious I hope your firm sees them too LPM

Rupert Collins-White editor-in-chiefLPMmag | rupertwlsncouk

You donrsquot as the song goes need to be a weatherman to know which way the wind is blowing in the legal market ndash but just because the clues are there doesnrsquot mean you can be complacent about acting on them

CONTENTS

FEATURES

LEGAL PRACTICE MANAGEMENT21

SEPTEMBER 2016LPM INSIGHTS

MORE TECHMORE SECURITY

INTRODUCTION TO THE RESEARCH FROM OUR SPONSOR RICHARD ROEBUCK MANAGING DIRECTOR ACCESSPOINT

After a recent period of uncertainty it would now seem that most firms are confident about their future especially in light of Brexit Whatrsquos also certain is

that most firms are very conscious that to compete they will need to change and adapt themselves for the challenges ahead

With growing concerns about the lack of high-quality people available and what appears to be a reliance on quality individuals driving more lucrative fee-earning work is it time for a gear change

Perhaps the dawn of high-volume low-margin fixed fee work which many firms feared has now arrived As always with change there are challenges to be faced but for those clever early adopters there lies opportunity Making light of the more process-driven tasks and finding more effective efficient ways of completion to deliver client-facing benefits seems key to the wider future of the fixed fee legal landscape

With the growing acceptance of cloud technology and the increasing introduction of new software applications and solutions the legal world has moved on at an improved pace this past couple of years And the world is now clearly keen for more ndash to satisfy its desire for a more accessible and mobile working environment What is key for this trend is that the lsquoquality of the deliverablersquo has an ongoing programme of improvement that benefits both the firm and its clients

As progress pulls us forward there will always be elements arrayed against us Alongside the opportunities hiding in the polling from LPM this year therersquos also a sense of fear and concern around possibly the biggest threat to risk and security there is right now ndash the dark byproduct of technological success cybercrime

Cybercrime is fast growing with ever more complex attacks making headlines It is now one of the most common criminal offences in the UK An increasing number of individuals are exploiting the speed and anonymity of the internet to commit a wide range of criminal activities having no conscience and knowing no borders

It isnrsquot our fault websites get hacked but poor internet safety habits can put us at risk Reusing passwords or using weak passwords make us easy targets for identity theft Remembering multiple passwords can be a pain but there are web services and associated applications that can help such as two factor authentication quality mail management systems URL threat protection and mail encryption

For many firms the biggest threats tend to be by way of the ever-open door into our networks and devices ndash email

Our eagerness to respond almost instantly to emails throughout what will be for most an already pressured day is perhaps the dominant daily activity to foster an unwanted lapse in security In the past 18 months alone I have seen three firms that were truly caught out ndash some with the potential for significant financial penalty by opening email attachments The most common lsquogotcharsquo is an email that appears to have come from the office scanning platform whereby the email address has been cleverly spoofed to appear legitimate (for example downstairscopiermyfirmdomaincouk) There are so many existing and newly circulating threats of this calibre and type that even the most aggressive of filtering systems struggle to keep up

Do you know the name(s) of your copiers and the associated email addresses Do you stop to think before opening the innocuous Word attachment ldquoDoesnrsquot our scanner usually send PDF files Why has a covering note not been included with the attachmentrdquo Stop think and call for advice

Another infamous scam is the spoofing of email addresses of key people within your firm ndash for example an email to the head of accounts appears to be from the senior partner ldquoPlease send pound17000 to account X at your earliest convenience and confirm once processedrdquo it says Stop ndash is this your agreed process

As the demand grows and we extend our reach out into the online world so cybercrime advances ever closer seeking unauthorised access through our front door Quite clearly online is the future but we need to embrace it with the necessary skill sets and processes in place for our convenience wellbeing and prosperity LPM

There are so many existing and newly circulating threats of this calibre and type that even the most aggressive of filtering systems struggle to keep up

Accesspoint are independent legal IT specialists who consult on a variety of information technology-related issues offering the best in IT solutions to help firms work more effectively

Contact Richard and the team on 0203 189 2645wwwtheaccesspointcouk

LEGAL PRACTICE MANAGEMENT22

SEPTEMBER 2016LPM INSIGHTS

SME law firms are in a battle for survival Whether they know it or not they have huge challenges to face in the next few years ndash around succession planning technology replacing lawyers and being

used by competitors to attain a competitive edge and catering to clients who increasingly want cost predictability transparency and availability

These market pressures were addressed at the LPM conference in May 2016 which was attended by over 100 delegates all SME legal management leaders The delegates were polled on the day about what they thought of the pressures facing them and how theyrsquore planning to overcome them ndash and their answers provide valuable insight into the SME legal market

The polling results show that LPM conference delegates were aware of the severity of the challenges they face Three-quarters of legal management leaders we polled at the 2016 LPM conference thought that the challenges theyrsquoll face in the next five to 10 years will be lsquomorersquo or lsquomuch morersquo serious than in past years And 58 of delegates thought that the challenges in the next year to two years will be lsquomore serious than in past yearsrsquo

How they will face these challenges depends at least partly on attitude ndash whether they believe they can win or will eventually lose the war Fortunately most LPM conference delegates were optimistic about their firmsrsquo futures - 81 were either lsquocautiouslyrsquo or lsquoveryrsquo optimistic about their place in the legal market of the future

This doesnrsquot necessarily suggest that theyrsquore confident in the market overall particularly after the market instability brought by Brexit Legal management leaders might believe their firm is the only one thatrsquoll survive due to expertise in a particular area or niche In any case it indicates market confidence and a confidence in the ability of their firm to compete and succeed

But is this optimism misplaced in a market where the future is increasingly uncertain and competitive Are firms really ready for change on a huge scale as their confidence might suggest What are the issues currently keeping SME legal leaders awake at night

In this report LPM shines a light on the SME legal market through the eyes of our legal management leader audience ndash those driving their firms through an uncertain new world

WHATrsquoS NEXTChange is on the agenda for LPM firms but how to address the biggest challenges and which ones to face first is a tough call finds Patrick Wingrove

More serious than in past yearsMuch more serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch less serious than in past years

51

14

8

3

24

More serious than in past yearsMuch more serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch less serious than in past years

How would you rate the challenges your firm faces in the next five to 10 years

More serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch more serious than in past yearsMuch less serious than in past years

58

17

6

0

19

More serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch more serious than in past yearsMuch less serious than in past years

How would you rate the challenges your firm faces in the next year to two years

What is the greatest hurdle to your firmrsquos growth or further success

What is the greatest hurdle to your firmrsquos growth or further success

LEGAL PRACTICE MANAGEMENT23

SEPTEMBER 2016LPM INSIGHTS

TIMES THEY ARE A CHANGINrsquo The overriding theme of the 2016 LPM conference was change ndash how firms can implement it the drivers behind it and the various blockers to it But the first step to change is gauging which factors will have the biggest impact on the legal market Just over half of legal management leaders we polled thought client pressures on cost like demanding fixed fees will have the biggest impact while just over a quarter thought it will be competitors attaining a market advantage using technology

How quickly do firms need to respond to these oncoming market pressures Well 86 of LPM conference delegates thought that change needs to happen in their firms within the next two to five years But 14 said that their firm doesnrsquot need to change significantly perhaps because theyrsquove beaten the rest to the punch their legal business is somehow immune to new pressures ndash or they have their heads in the sand

Legal has traditionally been resistant to change and itrsquos not surprising that some firms still are says Sean Stuttaford COO at Essex firm Thompson Smith and Puxon (TSP) and 2016 LPM conference delegate ldquoThere are still firms out there where partners donrsquot have computers on their desks ndash theyrsquore stuck in their ways and just point blank refuse to

52 26 5 12 5

develop their business for the futurerdquoBut legal management leaders willing to implement

change may still find it difficult as 60 of LPM conference delegates polled thought that lsquochange isnrsquot really understood at their firmrsquo

GROWING PAINSJust over a quarter of LPM conference delegates also thought that an inability to create change within their firm would be the greatest hurdle to the businessrsquos growth or further success ndash though Stuttaford at TSP suggests voters might have blamed the traditional partnership business model for the same reason

But acquiring high-quality staff was considered to be the greatest hurdle for growth or success by 36 of delegates Rebecca Patterson HR manager at Kent firm Thackray Williams and 2016 LPM conference delegate says that she agrees with this result ldquoOur firm has a particularly tough time finding quality support staff ndash we could perhaps stand to invest more in competency frameworks and performance management and training opportunities to aid recruitment and retentionrdquo

William Robins operations director at lsquodistributedrsquo firm Keystone Law and a 2016 LPM conference speaker says

12 36 27 13 12

Lack of fundsAcquiring high-quality staffInability to create change within the firmTechnologyThe traditional partnership business model

Out of these which factor is having the biggest impact on the SME legal market

Client pressures on cost (eg fixed fees)Technology creating advantage for competitorsConsolidationDifficulty in finding routes to growth (eg funding)Something else

What is the greatest hurdle to your firmrsquos growth or further success

LEGAL PRACTICE MANAGEMENT24

SEPTEMBER 2016LPM INSIGHTS

offering a more flexible remote or mobile working set-up for everyone in a firm is an excellent way to attract talent (Keystonersquos model of course is founded on remote working) Perhaps the majority of legal management leaders polled at the 2016 LPM conference agree since their firms have either adopted a flexible remote or mobile working set-up are planning to adopt one or are considering adopting one ndash though there are other advantages to remote working such as reducing overheads In any case the results indicate that the SME legal working landscape is becoming considerably more flexible

But remote working doesnrsquot work for everyone Mary Mocklow CEO at West Midlands firm Talbots Law and 2016 LPM conference delegate says that their high-street set-up wouldnrsquot allow it ldquoThe majority of our staff are client-facing and need to be present at the office ndash and while there are other staff at Talbots that might benefit from remote working you canrsquot have a policy for one and not for allrdquo

CYBER THREATSTechnology was clearly a significant concern for legal management leaders who attended the 2016 LPM conference Patterson at Thackray Williams says some firms have had a hard time finding software that caters to their needs as a business and an LPM conference poll seems to back this up just under half of legal management leaders polled at the conference thought project teams should write law firm software indicating a desire for cross-department input into its creation But the poll also indicates that legal software providers have to a large extent been meeting their clientsrsquo needs

The rising threat of cybercrime was also a clear concern for LPM conference delegates ndash 92 of SME legal management leaders said their firms have cyber risk on their management meeting agendas Stuttaford at TSP says ldquoItrsquos something firms need to be constantly aware of and take precautions against not just by purchasing good firewall and antivirus software but by educating staff about password discipline authentication processes and suchrdquo

32 18 14 33 3

Is cyber risk on your management meeting agenda

92

5 3

Yes No Dont know

Is your firm moving to a more flexible workingremote or mobile working set-up for everyone in it

YesNoConsidering itWe already do itDont know

LEGAL PRACTICE MANAGEMENT25

SEPTEMBER 2016LPM INSIGHTS

PRESSURES AND PRICINGClient pressures on cost was also a major concern for legal management leaders polled at the conference so it may not be surprising that just over half of them said 50 or more of their firmrsquos work is some form of fixed fee This doesnrsquot necessarily suggest that the other half arenrsquot open to the concept of fixed fee ndash Mocklow at Talbots points out that fixed fees work for certain types of work ldquoHigh-street firms like Talbots can benefit greatly from fixed fees which is why 75 of our work is fixed fee but itrsquos more difficult to apply to firms that specialise in something like admiralty lawrdquo

The industry seems to think that the value of service has been lost to the price obsession in some areas but not in others ndash and while pricing is clearly a vital issue for SME firms 88 of legal management leaders polled at the LPM conference thought that itrsquos lsquoone of a range of important factorsrsquo or lsquonot as important as other thingsrsquo Patterson at Thackray Williams says that maintaining a good relationship with clients is often more important than pricing though pricing can be a means to achieving client satisfaction ldquoIt also depends on the client ndash in something like conveyancing first-time buyers might be looking for fixed fees or the cheapest price but for commercial clients that may not be as important as reputation or relationshiprdquo

TREASURE MAPPINGLegal process mapping often used by lsquobig lawrsquo and making inroads into SME legal could potentially make SME firms a great deal more efficient and therefore more competitive Two-thirds of legal management leaders polled had heard of process mapping and 79 thought that it is relevant to the business of law Stuttaford at TSP says he agrees ldquoFirms should look at their processes learn from them and figure out how to improve those processes ndash this question really made us look at what TSP has done so far in terms of what legal processes wersquove mapped and whenrdquo

To sum up LPM conference delegates were aware of the challenges that face them but were mostly optimistic nonetheless This may be because they know they need to change and in spite of the fact that change isnrsquot really understood at their firms are planning to mend their ways to meet future market pressures ndash generally putting the client first while keeping talent and technology high on their agendas LPM

Are aware of this thing called legal process mapping

66

34

Has the value of service been lost to the price obsession

23

23

54

Yes No Depends on the service Dont know

Yes No

How important is price in winning business

8

4

67

21

CriticalMore important than almost all factorsIts one of a range of important factorsNot as important as other things such as relationshipsIts one of the less important things in reality

What is the greatest hurdle to your firmrsquos Are aware of this thing called legal process mapping

LEGAL PRACTICE MANAGEMENT27

SEPTEMBER 2016COLUMNSSPONSORED EDITORIAL

Welcome back LPM readers ndash the new school term has started summer is (pretty much) over and the UK is back in full throttle after the summer break And what a break itrsquos been at

File Queen HQ (wersquove taken the time to get our clients up and running with augustprojects as well as started our new Instagram feed filequeenadds)

With the start of the new learning year wersquore focused on the education of you lovely LPM readers ndash with our attention turning back to the General Data Protection Regulation You may remember that in our last LPM article we ran through the 12 steps to tackle the GDPR helped by the awesome people at the Information Commissionerrsquos Office ndash wersquove provided a link to their 12-step resource via our website wwwarchivestoragenetnewsgdpr

Over the next three columns wersquoll be taking these steps and breaking them down for you ndash starting with step one awareness The File Queen (myself) and the team at ADDS have been promoting this step as the most important for all legal practices

ldquoWhyrdquo we hear you holler Well this step is the all-important life raft that unites your practice and team members to help you in the GDPR fight for survival (dramatic I know)

Getting the team on board ndash this buy-in needs to include all ranks of staff ndash from the managing partners to your suppliers But how do you do this Well here are some File Queen tips for when we at ADDS are rolling out projects

Lunch and learn ndash with a register People love to eat and be social so get your legal business to book in a couple of lunch and learn sessions Donrsquot limit this to one date ndash you must run at least two or three so people have the option of which dates to attend Make sure you make a register for those that actually turn up (we all know a calendar acceptance doesnrsquot mean theyrsquoll actually appear) This will allow you to chase down the members of the team you need to get on board for the next one

Have some decent sandwiches nibbles and soft drinks and give the team an overview of the GDPR Run through the 12 steps and make sure you educate them on why everything is so important (make sure you mention the increased fines and audits) During this time let the team know that there are several steps along the way that yoursquoll need their help and support for and which you wonrsquot be able to achieve on your own Tell them that the businessrsquos reputation and brand is on the line and that you need everyone on board to lend a helping hand and spread the word

Another great File Queen tip at this stage is also to get some additional funding from the practice manager for a wine and quiz night at the end of the lunch and learn periods This can be part of your social gathering on a Friday straight after work ndash with some more nibbles and wine Assign people to teams and have a GDPR quiz The winning team gets an award and everyone has fun and learns at the same time Follow our twitter feed as wersquoll be tweeting some great questions to ask thefilequeen GDPRQUIZ

We know itrsquos a lot to organise but there are only four months left in 2016 and GDPR practices must be in place by 25 May 2018 And believe me when you have to roll out rather hard core legislation you have to make it fun and interactive to get people on board LPM

ABOUT

NATASHA RAWLEY THE FILE QUEEN

EDUCATING YOUR PROS

ADDSSaving firms from paper hellContact Natasha on0800 328 0272wwwarchivestoragenet

LEGAL PRACTICE MANAGEMENT28

SEPTEMBER 2016FEATURES

28

Patrick Wingrove talks to the founders of Proelium Law about their work providing legal advice in high-risk environments and conflict zones and the challenges of setting up shop in a new and risky area of law

Legal commandosProelium

Compared to the day-to-day lives of Proelium Law founders and partners Richard Stephens (above left) and Adrian Powell (centre) the average lawyer leads a pretty humdrum life Though UK-based the

firm has a strong international focus ndash Stephens and Powell regularly travel to provide legal and business advice to companies and individuals in high-risk professions or working in hazardous environments across the globe including conflict zones in Iraq Syria and Afghanistan Powell says that itrsquos a challenging but exciting area of law to be in and that ldquono two days are ever the samerdquo

The firm was established as an ABS in November 2015 allowing Powell and Stephens to operate as partners although Stephens isnrsquot a lawyer Powell qualified as a solicitor in 2004 after spending 11 years of his career in the British army and post-2006 worked on various high-risk projects around the world ndash giving him the inspiration for Proelium He says ldquoThe idea came to me in Baghdad in 2009 while working for a private security company as a legal adviser ndash I thought lsquoWhy isnrsquot there a firm doing thisrsquo But I soon realised that I needed someone on the ground who wasnrsquot a lawyer to help make it happenrdquo

That person was Stephens He previously served in the Royal Marines worked as a Whitehall-based strategic planner for the UK government and commanded a special operations regiment (which is why we couldnrsquot show you his face but itrsquos a nice issue of LPM) He now works primarily on the business development side of Proelium ldquoJoining Adrian who Irsquod previously worked with on projects around the

LAW FIRM PROFILE

LEGAL PRACTICE MANAGEMENT29

SEPTEMBER 2016FEATURES

world at a firm meant I could do fascinating and important work with the credibility that being a partner in a regulated business providesrdquo he says

Their work has certainly been interesting Proelium has cast its net far within the niche high-risk sector ndash advising UK-based service providers on the complexities of working in hostile environments conducting business and human rights due diligence and ensuring anti-money laundering counter terrorist-financing and anti-bribery compliance for companies intending to run in high-risk areas or conflict zones to name a few Recently theyrsquove also been working on developing capability for national intelligence organisations overseas ndash but for fear of being jailed for treason Stephens and Powell didnrsquot elaborate hellip

Powell says that the challenges companies face in these areas are numerous ldquoTherersquos a real technical knowledge in understanding how organisations physically work overseas These companies are good at what they do but that doesnrsquot necessarily translate into being business-savvy when it comes to operating in frontier markets ndash thatrsquos where Proelium adds valuerdquo For example after a client was recently exposed on an arms deal they were able to quickly discern liability and ensure that all necessary agencies and departments were appropriately informed

Powell and Stephens joke about how theyrsquore the number-one firm in their sector ndash admitting that to their knowledge theyrsquore the only firm that specialises in this area of law They added that itrsquos an untapped niche in which Proelium will be a pioneering force but which has also recently come onto the radar of a larger firm Theyrsquore alluding of course to Proeliumrsquos recent venture with Harrison Clark Rickerbys ndash a joining that combines Proeliumrsquos experience working in high-risk jurisdictions with the manpower and existing defence and security expertise of

HCR Powell says ldquoWhat they donrsquot have is our connections and our experience They like the idea of the sector because they see it as an interesting area and the partnership will allow us to offer a wealth of different legal services while letting us focus on what we do bestrdquo

As part of their ambitions for Proelium Powell and Stephens are keen to train a new generation of lawyers whorsquoll specialise in the high-risk sector ldquoWe have confidence in what the younger generation has to offer and we want them in our industry to continue our work in this relatively untapped areardquo says Powell Stephens adds that itrsquos also a matter of succession planning ldquoWe want the firm to operate long into the future but we donrsquot necessarily want to be running it ourselves for the next 20 yearsrdquo Proelium currently employs two interns as part of this commitment including University of Surrey law student Ruby Jamieson (pictured) She says ldquoWorking [at Proelium] has given me loads of insight already ndash itrsquos very niche

very new and Irsquove really enjoyed helping develop the business I feel that itrsquoll open a lot of doors when I graduaterdquo

In terms of expansion Proelium has recently opened a new office in the City of London Powell says that his home was originally the firmrsquos practising address but a large portion of their client-base is in London ldquoand we couldnrsquot keep having our meetings in coffee shopsrdquo

But Powell and Stephens are firm believers in the concept of remote working which works particularly well for their business

ldquoMost of our clients are either in London or outside the EU so Irsquom always away but all my phone calls are redirected from the new office to my mobile so I can keep in touch with clients whether Irsquom in Dubai or Baghdadrdquo says Stephens Powell adds that he feels remote working has the added benefit of keeping staff happy by letting them work from home which he says certainly makes him more productive as a fee earner

Proelium isnrsquot looking to expand into areas it has no interest in like family law but theyrsquore taking a keen interest in the emerging area of cyber law and are considering taking steps into that world ldquoLike high-risk law no onersquos really wrapped their arms around cyber law yet Therersquos cyber law in the US but it doesnrsquot exist per se in the UK except in terms of data protectionrdquo

When asked what advice they could give to SME firms based on their unique experiences in their sector Powell and Stephens said firms should know the areas of law they practise inside and out Powell says ldquoWersquore concerned with being experts in our field ndash a lot of our clients have peoplersquos lives in their hands and are not in the business of nonsense which is why they come to us We give sound researched legal advice based on experience and if we donrsquot know something we send the client to someone who doesrdquo LPM

ldquoCompanies are good at what they do but that doesnrsquot necessarily translate into being business-savvy when it comes to operating in frontier markets ndash thatrsquos where Proelium adds valuerdquo

Proelium

Two fee earners four total staff

Offices City of London Wirral Cheltenham

Specialisms International criminal commercial and conflict law due diligence sensitive investigations

LPM FACT FILE

ldquod2u is the UKrsquos number one outsourced transcription service for medical and legal professionals and highly competitive all over the world We pride ourselves on saving our clients time and money as well as offering state-of-the-art security and a first-rate servicerdquo Daryl Leigh CEO dictate2us

LPM magazine has agreed a special deal for its readers with dictate2us ndash 5 off your monthly

transcription bill for one year if you sign up through the dedicated LPM link or call and quote LPM2016 when signing up You can trial the service for free before committing

CUT COSTS INCREASE EFFICIENCYAll firms could benefit from outsourcing transcription to dictate2us ndash but even more so with our LPM deal 5 off your first year

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This special LPM magazine reader deal only relates to customers that execute an agreement for a minimum term of 12 months with a minimum monthly commitment of 500 minutes LPM magazine sought two law firm references for dictate2us to verify its claims for quality and delivery The 5 deal only applies to the first paying year the customer is with dictate2us LPM magazine is not responsible or liable in any way for work done by dictate2us and is an advertising referrer only

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LEGAL PRACTICE MANAGEMENT31

SEPTEMBER 2016FEATURES

Patrick Wingrove speaks to management leaders from SME and top 100 law firms that have recently achieved significant growth to find out how to go from acorn to oak tree

FROM MINNOW TO

For many SME firms growth is the goal ndash but it doesnrsquot have to happen in the ways that many have scaled in the past The era of organic slow quiet steady partnership development over decades is

increasingly at odds with a fast-paced digital world Strategies for growth in the legal market are now closer than ever to the rest of the business world ndash and any size firm can learn how to do it

Big or small there are similar tools in the box for making growth happen and similar challenges Lessons abound but some of the best can be taken from those firms not far outside the famous lsquotop 100rsquo legal businesses in the land ndash those that have already grown up and now have the top tier in their sights There are also lessons to draw from smaller but rapidly scaling law firms

There are many growth strategies for organic and acquisitive growth ndash and no easy answer for which is right for your firm To shine a light on the subject wersquove spoken both to SME and top 100 firms about growth and how to do it (and importantly how not to do it)

MAMMOTH

LEGAL PRACTICE MANAGEMENT32

SEPTEMBER 2016FEATURES

MODELS OF GROWTH According to the Lawyer the two fastest growing firms in the top 200 this year are Midlands-based Knights and lsquodistributedrsquo firm Keystone Law ndash currently placed 119 and 122 in the 2015 UK 200 rankings but whose revenue will now put them well inside the 2016 top 100 (due for release October 2016) Both attribute their growth to non-traditional business models ndash and very different non-traditional models at that

Knights corporatised in 2014 to remove the barriers from its decision making processes which CEO David Beech says has been the key to its growth ldquoEquity partnerships donrsquot grow particularly quickly because itrsquos hard to achieve consensus and make decisions that enable fundamental or rapid growth among equity partnersrdquo

Knights acquired Oxford-based Darbys earlier this year ndash a move largely behind the revenue increase that will put them in the top 100 ndash and completed the transition inside three months which Beech says would have been next to impossible under their old business structure ldquoNot only was a quick turnaround good for the books it saved significant time and money that could be invested elsewhere in the businessrdquo he says

Top 100 firm Simpson Millar is one step

ahead of Knights The firm broke the glass ceiling to become a top 100 firm in 2015 and like Knights the firm attributes its growing success to corporatisation ndash but in a different manner

It sought to be and was eventually acquired by PLC Fairpoint Group in 2014 Simpson Millar continues to run as an LLP under the same management team and existing trading brands but as a business unit within Fairpoint

Managing partner Peter Watson says that one of the key reasons to pursue this particular growth strategy was to provide an injection of capital for MampA ldquoWe completed the sizeable acquisition of Colemans last year for example which we were only able to do with considerable investment from Fairpointrdquo

Being part of a PLC has also given the firm access to strong MampA and project management capabilities ldquoAcquiring Colemans doubled the business overnight ndash for something like that you need strong MampA experience and access to that team within Fairpoint was crucial in getting the deal across the linerdquo says Watson Simpson Millar also built a strong digital strategy launched new products and focused on pricing ldquoCall it fixed fees or packaged fees the point of it was to say to consumers

Square One Law

Revenue pound5m

31 fee earners 53 total staff

Offices Newcastle-upon-Tyne

Specialisms Commercial corporate property employment EU and competition law finance litigation private client

LPM FACT FILE

Knights

Revenue pound40m (year end 2017)

375 fee earners 450 total staff

Offices Chester Cheltenham Newcastle-under-Lyme Derby Oxford Hale

Specialisms Full service firm

LPM FACT FILE

LEGAL PRACTICE MANAGEMENT33

SEPTEMBER 2016FEATURES

lsquoWith us you know exactly what yoursquoll get and how much itrsquoll costrsquordquo

PEOPLE PLEASERSThe ability to implement change has also been an important part of delivering a growth strategy This isnrsquot necessarily surprising ndash polling at the 2016 Legal Practice Management conference showed that legal business managers thought it was one of the greatest hurdles to a firmrsquos growth or success only topped by acquiring high-quality staff In Knightsrsquo case the two challenges were addressed together Beech says Knightsrsquo corporate rather than partnership structure also allows it to recruit talented people without having to deal with the inherent politics of an equity partnership

ldquoAcquiring the best talent has been a central part of our growth strategy ndash if a candidate can help the business through expertise or client following we can just recruit themrdquo he added

But a successful growth strategy incorporating talent isnrsquot just about recruiting quickly as we analysed in the July 2016 issue of LPM ndash itrsquos about recruiting well Firms also need to make themselves an attractive prospect for legal talent in order to grow

William Robins operations director at Keystone Law says his firmrsquos lsquodispersedrsquo model allows it to do that by offering new fee earners the chance to work remotely with less supervision ldquoWersquore typically hiring about a lawyer a week ndash bringing their expertise fee-earning capability and client following with them ndash and that is the core part of our growth strategyrdquo The firm has buttressed its recruitment capability by hiring a director of recruitment to focus almost entirely on lawyer enrolment (recruiting talent to recruit talent ndash neat)

Though the distributed model may not be for everyone says Robins implementing some form of flexible mobile or remote working should be part of any firmrsquos growth strategy because it allows firms to increase their fee-earning capability without accruing fixed overheads such as office premises

And there are other ways to be talent-attractive As a core part of its growth strategy Newcastle-based firm Square One Law ndash which achieved 30 growth in the

last financial year ndash has pledged to create a supportive and inspirational team environment offering high-calibre work to attract the best talent Ian Gilthorpe senior partner at Square One says ldquoGood people want to be inspired to be valued for what they do and feel as though theyrsquore making a contribution The key is to engage with all your staff to facilitate a culture where staff feel happy at work work for each other trust each other and ensure that they see the value in what they do ndash if you do that more talent will comerdquo

He added that itrsquos important for

recruitment to convey staff satisfaction to the outside world which Square One has achieved by including staff video-testimonials on its website

But recruiting is only half of an effective people strategy ndash the other is retention Simpson Millar has attempted to create an environment that its talented staff wonrsquot want to leave Says Watson ldquoToo many firms worry about what will happen if their rainmaker goes somewhere else and takes clients with them ndash so they put the shackles on make them feel unhappy and make it so that they canrsquot realise their full potentialrdquo Creating such an environment makes firms an attractive target for lateral hires when they should be building a place people want to join

PRACTICE AREASSME legal businesses donrsquot necessarily need to change their business models completely to achieve the same growth as

Thorntons

Revenue pound20m

209 fee earners 430 total staff

Offices Dundee Edinburgh St Andrews Perth Cupcar Kirkcaldy Anstruther Arbroath Montrose Forfar

Specialisms Full service firm

Keystone

Revenue pound202m

198 fee earners 230 total staff

Offices London Bristol Isle of Man Australia

Specialisms Corporate and commercial dispute resolution property

LPM FACT FILE

LPM FACT FILE

Equity partnerships donrsquot grow particularly quickly because itrsquos hard to achieve consensus and make decisions that enable fundamental or rapid growth among equity partners David Beech CEO Knights

Simpson Millar

Revenue pound316m

322 fee earners 539 total staff

Offices Birmingham Bristol Cardiff Cheadle Hulme Gateshead Kingston-upon-Thames Lancaster Leeds Park Place Leeds St Pauls Street (head office) London Manchester Newcastle

Specialisms Full service firm

LPM FACT FILE

LEGAL PRACTICE MANAGEMENT34

SEPTEMBER 2016FEATURES

our examples but removing blockers from decision-making making themselves more attractive to talent and finding the right funding for growth are increasingly important and the partnership structure may not enable it

But of course that means asking some turkeys to vote in a Yuletide election Fortunately there are other ways to achieve impressive growth mainly investment andor expansion into new geographic or practice areas

Watson says that Simpson Millar wouldnrsquot have been an attractive prospect to Fairpoint had the firm not spent time growing organically by expanding into new areas of law

ldquoWe went from being a predominantly trade union PI firm to having a broad base of 16 types of work ndash with strong heads in charge of each committed to driving growth in their departments ndash which gave us a large boost in revenuerdquo The firm achieved this through small acquisitions of other firms that had expertise in particularly lucrative areas of law

But firms shouldnrsquot just look at expanding in lucrative areas ndash they should focus on areas where their reputations deliver an advantage Scotlandrsquos Thorntons for example ndash which last year leapt from 134 to 108 in the 2015 UK 200 rankings ndash invested in six departments as part of its growth strategy

Thorntons joint managing partner Scott Milne says ldquoWe didnrsquot exclude other areas but we saw that these areas were profitable and that more importantly we had considerable expertise in them ndash we also considered that these are areas that are unlikely to be affected by future economic downturnrdquo This included investing in niche areas of law where the firm has a geographic competitive advantage ldquoWersquore lucky to be surrounded by some of the best farmland in the UK ndash wersquore well known for our expertise in rural business law which is why we invested heavily in itrdquo

ORGANIC V ACQUISITIONIn several ways choosing an effective growth strategy very much boils down to MampA versus organic growth ndash every business model talent or area expansion strategy appears to revolve around one or both But which is the best to achieve the kind of growth thatrsquoll propel firms to a lsquohockey stickrsquo on their revenue forecasts The short answer is it depends on whatrsquos best for a firm at a given time It either

needs to fit the firm ndash or the firm needs to change to fit the goal

Beech says that acquisition has been excellent for Knights because itrsquos a fast and effective form of expansion ndash the acquisition of Darbys more than doubled its revenue But MampA poses a significant challenge to finding firms with the right cultural fit

ldquoFirms need to establish a single culture in order to implement growth ndash everyone needs to be working towards the same goalrdquo He added that when a firm completes a merger or acquisition that firm has to be integrated from day one which is much more difficult if it has a significantly different culture Knights is planning to continue recruiting and complete more acquisitions in the next year to maintain the growth curve

Of course the big problem with acquisition is money Robins at Keystone says his firm lies at the opposite end of this

INFORMATION IS EMPOWERING

Lemington Spa-based firm Wright Hassall has a specific goal of breaking into the top 100 and as part of its growth strategy expanded into areas of the UK where its expertise is highly sought after ndash using customer relationship management in the background to underpin the firmrsquos activities in specific areas Martyn Wells IT director at the firm says ldquoWersquove zoomed in on specific industry sectors that we know are performing well in the Midlands sectors where we have a superb reputationrdquo Expanding geographically as Wells outlines needs data to get right Thorntons for example identified various lsquomicro-marketsrsquo in Scotland close to its base of operations ldquoWe acquired a firm in St Andrews because itrsquos like a micro-economy (or micro-market) that doesnrsquot seem to be affected by price drops in the residential market elsewhererdquo says Thorntons joint managing partner Scott Milne Knights has another take on the geographic targeting idea ndash it intends to stay out of the large cities (London Manchester Leeds for example) and expand into areas where there is little competition As David Beech CEO at Knights explains ldquoLast September we acquired a small team in Chester of about 11 lawyers and now thatrsquos expanded to just over 70 ndash and the main reason wersquove been able to do that is because there isnrsquot a lot of competition thererdquoUltimately this all comes down to research finding out what to invest in or where to expand and perhaps most importantly finding out what clients want

LEGAL PRACTICE MANAGEMENT35

SEPTEMBER 2016FEATURES

spectrum to the way Knights has grown emphasising organic growth finding innovative means to attract talent using technology to drive efficiency and branching out into new areas of law or new markets to achieve significant growth

Square One Law also espouses the organic route ndash believing that firms with growth in mind should focus on ensuring their external brand reflects the businessrsquos internal culture and behaviours of its team creating lsquosynergyrsquo between the business and its clients

Gilthorpe says ldquoMergers ndash and there is no such thing as a true merger ndash and acquisitions can be a distraction as you look to create a new culture and separate the wheat from the chaff and this can soak up a lot of energy that would otherwise be put to use in driving the progression of the business and the focus on client servicerdquo

The best option for some firms may be a

calculated combination of MampA and organic Thorntons for example having made several acquisitions is now focusing on organic growth moving away from geographical expansion and towards developing locations and its brand

Watson at Simpson Millar sums the mixed approach up thus ldquoItrsquos a mixture Acquisition is still very much a part of the mix but in parallel to that itrsquos important to demonstrate that yoursquore developing ongoing work rather than being driven solely by acquisitionrdquo

There are clearly many different ways to achieve healthy and assertive growth though there are no easy answers as to which way is right for your firm But it is clear that growth doesnrsquot have to happen in the ways many have previously achieved it ndash innovation and lateral thinking are the means of achieving significant growth (which might one day propel you into the top 100 you never know) LPM

LEGAL PRACTICE MANAGEMENT36

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

INDUSTRY VIEWS

36LEGAL PRACTICE MANAGEMENT

Legal is becoming an ever more digital industry giving firms the chance to become more efficient flexible agile and collaborative

INDUSTRY VIEWS INDEX

ONLINEOFFICES

36

SPONSORED EDITORIAL

INDUSTRY VIEWS

37 INTERVIEW

Paperless processLinetimersquos Tony Klejnow explains the benefits of using matter management software for law firms and their clients

39 INTERVIEW

Virtual expansionNigel Redwood Nasstarrsquos CEO talks about the advantages of having a managed flexible IT infrastructure

LEGAL PRACTICE MANAGEMENT37

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT37

Competition and price pressures and an increasingly digital client base are all significant drivers for law firms to become paperless

businesses Tony Klejnow Linetimersquos managing director says firms could achieve competitive advantage by introducing paperless solutions across their businesses ndash but a particular lsquoeasy winrsquo area is matter management

ldquoFee earners are required to keep detailed records of their cases but the amount of time and money they waste physically printing filing looking for collaborating on and updating files is alarmingrdquo says Klejnow Law firms have traditionally been reluctant to adopt paperless

workflow solutions he adds because workflow doesnrsquot apply to 99 of fee earnersrsquo work ldquoBut if they adopted paperless solutions in their back office processes they could reduce costs without affecting client service boost productivity and promote collaboration ndash making them more efficient flexible and cost effective and making them more competitive in an ever-changing legal marketrdquo

MATTER MATTERSDocument and matter management tools ndash like those in Linetimersquos legal software product Liberate ndash electronically store and organise all case documentation in an online database Klejnow says that there are two immediate benefits of paperless matter

PAPERLESS PROCESS

Tony Klejnow managing director at Linetime talks to LPM about the benefits of the paperless office ndash starting with filing and back office processes

INDUSTRY VIEWS

Linetime is a specialist provider of Microsoft-based practice and case management solutions Clients include mid-tier law firms and in-house legal departmentswwwlinetimecouk

ABOUT THE SPONSOR

SPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT38

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT 38

management The first is reducing paper and storage costs

ldquoIf case documentation is electronically stored once a case is finished you no longer have a five-inches-thick file that has to be stored for six years ndash which has to reside somewhere and costs firms time space and moneyrdquo The second is eliminating filing time ndash for example instead of printing and filing emails and attachments fee earners drag and drop emails directly from Outlook into the database ldquoand attachments are automatically stripped from emails and appropriately filedrdquo says Klejnow

And Klejnow says paperless filing systems donrsquot just facilitate efficiency this way ndash they also improve general process efficiency by facilitating collaboration between fee earners Solicitors can use document and matter management to view and work on matters at the same time a difficult if not impossible prospect when working with paper files Klejnow says ldquoWithout document management legal professionals work in silos but with it they immediately share datardquo He adds that Liberate has an additional collaboration tool to help further improve collaborative efficiency in firms ldquoIf I choose to lsquocollaboratersquo a document with you on Liberate Outlook will prompt you to review that document by simply acknowledging the notificationrdquo

In this respect moving to become a paperless business provides greater flexibility for fee earners who can collaborate with colleagues working remotely or in different offices Klejnow says ldquoPaper files can only reside in one location but electronic files can be accessed from any office and when working from home or with clientsrdquo On the other side of the coin having digital files maintains a greater level of productivity in a law firm office ldquoIf your colleague is absent from the office you can easily find documents that you might have otherwise wasted a significant portion of your day looking forrdquo he adds

Improved external collaboration is also a benefit that firms can reap from paperless matter management With an electronic system you can go into a case history bundle documents into one PDF file and quickly submit that to the third party improving collaboration between fee earners and clients who want to do everything online This has the added benefit of improving accuracy and facilitating greater efficiency by involving clients in the process ldquoGood matter management software should also let you push e-forms to clients to be filled in and that information is automatically transferred straight to the online database ndash which saves fee earners

time and is a more accurate because the information doesnrsquot have to be constantly re-enteredrdquo says Klejnow

This extra level of collaboration within legal businesses that hasnrsquot been possible until now has long been needed because it improves efficiency and productivity which makes the business more profitable and competitive Klejnow adds that what firms save by adopting matter management they should reinvest in becoming fully paperless digital businesses

ldquoCase management solutions can improve efficiency to an even greater extent and keep firms competitive in the age of the alternative business structuresrdquo

VISIBLE COMPLIANCEIn response to firms reluctant to adopt paperless technologies like document and matter management for fear of losing delicate information to cybercriminals Klejnow says those systems provide an additional level of security ldquoTaking data and attachments out of Outlook and storing them on a database is much more secure than leaving them on your hard drive If you leave

your laptop on a train for example all your important data is safely stored on a server and not instantly accessible by opportunist criminalsrdquo

Document and matter management also offers a greater level of security in fee earner and client communications ldquoIf I want you to check that the data we have for you is accurate Liberate will

direct you to a page holding your data and at the same time it will push out an SMS text with a pin code to your phone Unless you input the code you canrsquot get to the web page ndash which means if one of your solicitors accidentally sends an email to the wrong person or itrsquos intercepted it doesnrsquot matter The data stays safe ndash this level of security is crucial in this age of cybercrimerdquo

These security features clearly have significant benefits for compliance which is important in a market increasingly dictated by regulation including the relatively new General Data Protection Regulation says Klejnow

ldquoCompliance officers need to be seen by regulators to have monitored and reviewed everything thatrsquos happened in their firm which is considerably easier with a paperless system Liberate has lsquoversion controlrsquo which allows compliance officers to keep tabs on every change made to a document as well as a compliance module which lets them view whatrsquos happening on a case (to ensure that money laundering checks have been carried out and so on) and records the fact that yoursquove reviewed thisrdquo LPM

Without document management legal professionals work in silos but with it they immediately share data

INTERVIEW

LEGAL PRACTICE MANAGEMENT39

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LPM readers may already know the Nasstar Group ndash but by a different name Nasstar was launched by regular LPM-contributor e-knownet to consolidate four discrete hosted

managed IT businesses (including e-knownet) after a period of significant acquisition Nigel Redwood chief executive officer at Nasstar says merger and acquisition and consolidating brands is challenging but having a flexible hosted IT infrastructure makes the process significantly easier

ldquoManaged IT services are enormously beneficial for firms that are expanding or consolidating particularly after MampA in terms of time and productivity cost savings and flexibilityrdquo He adds that by just having managed desktops firms can attain competitive advantage by reducing overheads and becoming more flexible and agile

Nasstar has experience helping SME firms with their IT systems after MampA and knows what problems to look out for creating unity among staff used to using different systems and processes the cost and time it takes to expand an IT infrastructure and the geographic distance between new offices

Redwood says that MampA can be an excellent way for legal businesses to expand into new sectors but that consolidating new departments using different IT systems and processes is challenging

ldquoOur acquisitions for example introduced new sector focuses for us in the SME legal market ndash wersquove consolidated these into a wider service base under Nasstar and facilitated unity among staff using virtual IT solutions

rdquoVirtual IT solutions help facilitate unity across the business by providing a level of consistency in an IT infrastructure Everyone immediately uses the same applications on the same versions from wherever theyrsquore working creating unity faster collaboration across teams and effective information sharingrdquo Hosted IT infrastructures are also continually updated giving staff instant access to new updates applications and technologies as they become available

The next significant challenge firms face after MampA is expanding their IT infrastructure to accommodate an influx of new staff ndash but Redwood says virtual IT solutions let firms expand their IT infrastructure at the flick of a switch

ldquoWith virtual IT firms arenrsquot held back by the size of their servers or the amount of computer power theyrsquove got ndash they simply call their IT provider and ask for an upgrade when previously theyrsquod have been

subject to lengthy and costly IT upgradesrdquo Virtual IT solutions are also easy to budget for

Redwood says ldquoYoursquore not going to be surprised by an increased fixed asset expenditure ndash services like those offered by Nasstar are an operational cost and fixed per user per month through a scalable cost modelrdquo

Geographic distance inhibiting collaboration between merged offices is also a key consideration for firms after MampA but virtual IT solutions solve this problem Redwood says a virtual IT infrastructure can minimise travel through the use of hosted virtual meeting rooms and video technology Staff can use this technology from virtually anywhere which is why it also lends itself well to remote flexible or mobile working set-ups

VIRTUAL WORKPLACERemote working is becoming an increasingly present feature of the legal landscape because of its cost saving and recruitment and retention advantages ndash the majority of firms at the LPM conference 2016 were moving towards a flexible remote or mobile working set-up or already had one

Redwood says virtual IT solutions better enable staff who work remotely ldquoHosted managed desktop solutions for example let staff work with the same applications from any device in the world safely and securelyrdquo

But remote working isnrsquot only about enabling the current workforce itrsquos about attracting future talent Redwood says that millennials donrsquot necessarily want to work as their predecessors did ndash they expect greater flexibility in the workplace which at one level can be achieved by remote working facilitated by a managed desktop

ldquoAnd itrsquos not only about attracting millennialsrdquo he says ldquoSME firms with flexible working set-ups are becoming more attractive to experienced legal talent who may be frustrated by the rigidity of their firmrdquo As a firm expands its workforce in this manner firms with virtual IT solutions reap the lsquodoublersquo cost saving benefits of not having to expand their premises or IT infrastructure accordingly

Some firms are resistant to remote working based on hosted IT services believing they arenrsquot secure ndash but Redwood says that argument ldquocan be put to bedrdquo

ldquoFor an in-house IT team to have the level of security that an organisation like ours can deliver is near impossible financially as well as in terms of the

VIRTUALSANITYNigel Redwood CEO at Nasstar talks to LPM about how managed IT can help SME firms achieve competitive advantage by making them more agile and flexible

LEGAL PRACTICE MANAGEMENT40

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

INTERVIEW

level of systems and technologies they deployrdquo Cybercrime is of course a scary and constantly evolving threat but Redwood points out that virtual IT systems have dedicated teams monitoring these threats evolving cyber defences and changing systems accordingly

ldquoThis capability not only makes [firms] a lot more secure but gives peace of mind in terms of compliancerdquo

ONLINE ADVANTAGE Redwood says virtual IT infrastructures donrsquot just pertain to lsquobig lawrsquo but to SME firms as well ndash perhaps more so

ldquoVirtual IT systems are a way for SME firms to stay competitive against their larger

counterparts and ABSs ndash it gives them a greater ability to expand it lets them adopt more flexible and agile models and is easy to budget forrdquo Firms can also expect virtual IT solutions to enable better alignment of IT resources to business needs enhanced usability with anywhere anytime access and in-built business continuity

But the greatest advantage virtual IT offers SME firms over big law is agility Redwood says ldquoBig IT departments in firms can be slow to react cumbersome and held back by the limitations of hardware infrastructure and security issues ndash all of that is removed with a solution like ours and the customer has access to fast-moving agile ITrdquo LPM

ABOUT THE SPONSOR

Nasstar is a provider of managed IT services and tailor-made cloud hosted solutions ndash delivering innovative secure and agile IT to help clients accomplish their business objectiveswwwnasstarcom

Page 10: LPM September 2016

LEGAL PRACTICE MANAGEMENT11

SEPTEMBER 2016IN PRACTICE Follow us and talk to us on Twitter LPMmag

THE WAY TO WHY

BOOK REVIEW

One way of assessing the value of a book like this is by reference to the number of times it makes one think of something it can be applied to in your own career or organisation On that measure

alone Designing the Purposeful Organisation passes with flying colours

At the heart of Wilsonrsquos philosophy is the idea that to be successful organisations must be able to articulate compelling and inspiring reasons for their existence ndash not simply what they do but rather why they do it The usual poster boys for 21st-century business success are quoted as exemplars of this approach - Apple Google Microsoft Reference is also made to Simon Sinekrsquos TED talk (278 million views and counting) and related book Start With Why as a means of uncovering the primary reason for an organisationrsquos existence Indeed a key element of Wilsonrsquos writing style is to send the reader off at regular intervals to take in a TED talk or YouTube video or to reflect in more detail around the topic at hand This does at times make the book feel more like a business coaching session rather than a dry management treatise ndash which for the avoidance of doubt this reader sees as a definite plus point

While the stories around behemoths such as Apple and Google can be compelling I was more taken with the example of the African tax collection agency that Wilson was working with Rather than seeing themselves as taking money from people (the lsquowhatrsquo) he encouraged them to focus on their purpose namely to help fund new schools and hospitals across their developing nation (the lsquowhyrsquo) Articulating the why is also a key element of an organisationrsquos brand proposition Wilson reminds us that customers are more often than not buying why an organisation does something rather than simply what the organisation does Or put another way how many customers would be inspired to have brand loyalty for a firm which simply says that its fundamental reason for being is to maximise shareholder returns

Before anyone starts fulminating about the importance of financial returns Wilson does recognise that results matter However his concern is that they too often become all consuming A key pillar of the book is his belief (which he concedes may be controversial) that overly focusing on results is misguided and can create systemic barriers to better performance Or put more simply results measure our progress to a better future ndash they are not in themselves that better future

This is certainly something that chimed for me as the CEO

of a law firm Yes we all recognise the need to deliver improved financial KPIs However these are simply a means of measuring whether we are delivering value to our clients (given that clients are unlikely to be using and paying for our services where they do not perceive us to have any value) and are unlikely to be the things wersquoll look back on with pride in our dotage

This reassessment of the role of results is also central to one of the key conditions for a more purposeful organisation (and one which will particularly resonate with professional services firms) namely talent liberation Drawing on the work of Daniel Pink on personal motivation (for example Drive The Surprising Truth About What Motivates Us) Wilsonrsquos call is for firms to move beyond transactional performance (pay me X and Irsquoll deliver Y pay me a bit more than X and Irsquoll deliver a bit more than Y) Rather we need to help our people liberate the talent they have by playing to their strengths as opposed to the more traditional performance management model of fixing weaknesses

Wilson focuses particularly on how the proper articulation of purpose can engage millennials Borrowing from Laurence Boldtrsquos Zen and the Art of Making a Living he encapsulates this approach in three short questions What skills and other resources do you have What do you care about Whatrsquos stopping you from pointing A at B

It seems to be that in most law firm management seminars or discussions these days someone somewhere is lamenting the fact that they just donrsquot understand millennials And at last I have an answer for them ndash read Clive Wilson LPM

LPM reader discount ndash use code HRLPMB to get 20 off at wwwkoganpagecom

Designing the Purposeful Organisation How to Inspire Business Performance Beyond Boundaries by Clive Wilson

Publisher Kogan PagePublication date Feb 2015Price pound2999

Reviewer Chris Harte chief executive and partner at Morton Fraser

Have

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LEGAL PRACTICE MANAGEMENT13

SEPTEMBER 2016COLUMNS

Barry DaviesPractice directorDouglas-Jones Mercer wwwdjmlawcouk

BARRY DAVIES PRACTICE DIRECTOR

ROLE MODELS

ABOUT Recent figures show that there are a shade over 130000 people on the roll of solicitors in England and Wales ndash 20 of those undertake an in-house role 80

are classed as employed An enormous number and this is before we consider the significant chunk of employees namely professional managers support staff and those lawyers who are not on the Law Society roll But lots of firms I speak with say lsquowe have too many partnersrsquo or they have reduced the number of lsquochiefsrsquo within their practice as part of their strategic planning

Where are we going with this What will the future firm look like What will its stakeholders (not necessarily shareholders) expect

The two facets that will impact upon the future will undoubtedly be generational attitudes and technology Though advancements in processing power will mean huge growth of AI systems over the next decade I think generational attitudes is the facet thatrsquos most interesting right now

Generation X lawyers (born between the early 1960s to mid-1970s) are often already partners This generation and the baby boomers before them are usually motivated by achievement and money Generation Y lawyers on the other hand (born in the 1980s or 1990s) are looking for something else Fearing that I sound like a textbook ndash specifically Frederick Herzbergrsquos theory of motivation hygiene ndash itrsquos not money thatrsquoll be the key factor in recruiting millennials but other drivers such as networks recognition quality of work and conditions

Developing reward and recognition strategies is

difficult enough for partners ndash so how does a law firm tackle its entire workforce A few years ago I held a discussion with a law firm partner and a question put to me was could the lsquoJohn Lewis modelrsquo fit a law firm This term is not only synonymous with the department store it has become a household phrase

Quite a few law firms have for some time now introduced a corporate partner ndash a limited company ndash as a partner within its practice with the intention of dealing with distribution of profits more efficiently or as part of a bonus pool So itrsquos quite interesting to hear that a highly regarded firm in the south west Stephens Scown has developed a similar model to the John Lewis theme

Whatrsquos different about this example is that a proportion of the firm is owned by a trust for its employees and not just its partners This gives the employees of the firm a greater sense of belonging and the added impetus to do well I am certain that some critics would question the mechanics of such a scheme and perhaps the barriers to entry such as defined profit levels but setting this aside it is a means of boosting staff engagement and eradicating the lsquothem and usrsquo mentality

With complications in all corners of law firm ownership new models will have to be explored to cover aspirations of all involved There could come a time when a crowdfunding option is explored generally and maybe the household name for staff stakeholder mechanisms in law firms will be the Stephens Scown model LPM

LEGAL PRACTICE MANAGEMENT14

SEPTEMBER 2016COLUMNS

In the April issue of LPM Stepien Lakersquos practice director Richard Hill brilliantly spelled out what to look for when trying to spot a lsquowhalersquo or big lsquophishrsquo ndash a situation where an

individual or firm is targeted researched and then duped into sending money to a cyber attacker

But just as awareness is essential so too is preparedness I thought it might be helpful to share some of the practical considerations that will help keep client funds safe (a requirement of principle 10 in the SRA handbook) including some things wersquove done in our firm in response to these very real threats

Perhaps the most feared event among all law firms is the very well-publicised lsquointercepted emailrsquo (dubbed the lsquoFriday fraudrsquo) But would we be surprised by just how many firms lawyers and clients freely provide bank details within the body of text in an email

This is an area where we recently tightened our procedures and introduced an explicit rule all bank details provided by a client especially in any email communication must be verified by a lawyer (by reconfirming those details with a person they know) The lawyer then signs to say that they have checked them

This has produced some unexpected benefits particularly for one client who provided bank details to us within the body of an email for remitting the proceeds of sale for his family business of pound32m When the lawyer contacted him to verify that the bank details were correct the client realised that he had transposed two numbers

Clearly this is a serious education piece not only for those responsible for finance and the lawyers within the firm but externally for the firmrsquos clients

There are a number of practical points to bear in mind when it comes to day-to-day security matters how do your lawyers communicate the client account details to its clients and do you always attempt to obtain client details for the remittance of funds at the start of the transaction for instance

Additional considerations might be when did you last review any bank payment elements in your email disclaimers terms of business and client care letters Is your payment procedure well-defined and documented (not just the finance element but also those relevant to clients and lawyers) And do you use any law firm identification checklists

These important issues should remain on the agenda so that theyrsquore constantly in colleaguesrsquo minds with regard to maintaining safe and efficient practices

There are some excellent resources available from your bank that can help to educate your colleagues and there are so many simple steps we can all take to make people aware of the problem Have you tried sending a few test phishing emails to individuals within the firm for

GLYN MORRIS FINANCE DIRECTOR

ABOUTexample to see how they respond

But what then If you are confronted with the metaphorical warning cry of lsquothar she blowsrsquo how will you and your people react You may need to have created a well-communicated process for dealing with a phishing incident

The 1851 classic Moby Dick tells the story of one manrsquos obsessive quest for revenge on a giant white whale ndash we might want to take just a hint of Ahabrsquos obsession in our approach to tackling the issue of cyber attacks Although if we can avoid the whale in the first place all the better LPM

THAR SHE BLOWS

Glyn MorrisFinance director Higgs amp Sonswwwhiggsandsonscouk

0800 328 0272 | wwwarchivestoragenet

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LEGAL PRACTICE MANAGEMENT16

SEPTEMBER 2016COLUMNSSPONSORED EDITORIAL

DOUG HARGROVE THE TECHNOLOGIST

DISRUPTION TO GO

ABOUT Change isnrsquot anything new itrsquos just another word for evolution But lsquodisruptionrsquo is certainly one of the words of the decade and one that is

usually connected to revolution ndash a significant alteration to the status quo and one that has far more immediate impacts

Disruption is also the go-to word for business commentators ndash especially when it comes to lsquodisruptive techrsquo ndash talking about new business start-ups or innovations Take the very latest craze to hit the headlines ndash Pokeacutemon Go has seemingly gripped the world these last few weeks with stock valuations heading skyward and comments about the app lsquodisruptingrsquo mobile gaming But therersquos nothing disruptive about the game it takes and utilises technology thatrsquos been around for nearly a decade (geolocation and augmented reality) and applies it in a new way Itrsquos that application of technology thatrsquos causing the disruption

Businesses like Uber and Netflix have built compelling business models on the groundwork of technology that is now pervasive (the smartphone and broadband internet respectively) Therersquos a lot here that firms can learn from itrsquos not necessarily about inventing new technology but about finding ways to use existing technology to create a new approach

So what opportunities are there for law firms to disrupt This can be looked at in two ways ndash disruption to the existing law firm business model and disruption to the user experience The first scenario has already been covered at length and is nothing new for the legal market there are already plenty of law firms out there

looking to change the way a law firm delivers its services to its clients and prospects ndash from franchise models to virtualised law firms Disruption to the law firm business model has been an ongoing force ever since the term ABS became associated with legal practices

The second scenario is a different matter It seems legal clients have been patiently waiting for the lsquodisruptive service deliveryrsquo model to come and there is plenty of opportunity out there for firms to position themselves differently with the modern consumer of legal services

Take a brief example of where old (or rather existing) technology can be used to differentiate ndash videoconferencing Itrsquos a fairly ubiquitous piece of technology thanks to the rise of Skype Facetime and the webcam which gives an instant user experience and a one-to-one connection that bridges the remoteness of a phone call and the need to travel for a meeting It doesnrsquot take much of a leap to imagine a service that allows consumers to access a lawyer instantly using this technology (maybe even a concept that combines the franchise model with an Uber-style app ndash connecting clients to the next available expert from a selection of associated law firms) The point is you donrsquot have to invent something new to be a disrupter ndash donrsquot be afraid to take existing technology and repurpose it to gain a competitive advantage

There are plenty of consumers of legal services who are willing to try out a new service or offering in the search for that great new experience ndash and for those law firms prepared to take the risk and disrupt there really is an opportunity to catch lsquoem all LPM

Advanced LegalRevolutionary solutions for legal services Contact Doug on 01476 573 718wwwadvanced-legalcouk

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LEGAL PRACTICE MANAGEMENT18

SEPTEMBER 2016COLUMNS

JANINE PARKER THE BROKER

WHAT PRICE EXCLUSIVITY

Itrsquos that wonderful time of year when the annual bombardment of brokers begins on your never-silent telephones All of them can ldquocarry out a full market exerciserdquo for you that will of course save you money

But whatrsquos the reality The marketplace is still murky and as a profession we donrsquot help ourselves by keeping it opaque So letrsquos objectively consider many of the claims brokers make attempt to clarify the true mechanics behind the market and consider how to best utilise it for the benefit of your firm

Since 2000 and the demise of the Solicitors Indemnity Fund competition for solicitors professional indemnity has increased This hasnrsquot always been generated through the number of insurers but the ever-increasing number of brokers who purport to be experts in this very niche area of insurance This has increased pressure on insurers to lower prices (a good thing for clients up to a certain point) but this pressure combined with some extreme economic factors has contributed to many insurers withdrawing from the market over the past decade

Competition is good for consumers and it encourages innovation to make sure that brokers and insurers can differentiate themselves by developing their product offering

Some brokers organise lsquoexclusiversquo arrangements with insurers often segmented by the number of partners within the firm ndash which is a very artificial way of dividing up the profession But this is the marketplace wersquore in today and itrsquos worth looking a little closer at these lsquoexclusivesrsquo

All the direct access points are listed in the Law Society buyer guide and in practice itrsquos only a handful of brokers who actually hold the exclusive with direct access to the underwriters It is essential to note that these exclusive agreements are not always lsquotiedrsquo arrangements The broker is not bound to place all their business with their one exclusive insurer and itrsquos often the case that those brokers who hold the exclusive arrangement also enjoy strong relationships with the open market insurers

To increase distribution brokers who hold exclusive arrangements will offer access to other brokers who wish to take advantage of the exclusive products available These brokers donrsquot have their own facilities There are many commercial reasons for opening an exclusive to other brokers but itrsquos important to note that the extra broker in the chain will dilute your relationship with the placing broker and ultimately your insurer Marketing materials can often be unclear as access to exclusives is readily used ndash but in reality these brokers will be approaching another broker to do this

Often law firms will be unaware of the number of brokers in the chain and will unwittingly be paying additional brokerage and fees unnecessarily Direct access allows for better communication between your firm and insurers which can often lead to more competitive pricing Removing a broker from the chain can lead to the process of claims handling being more efficient and effective as there are less obstacles in the chain of communication

In summary no one broker has direct access to every insurer and it is possible to approach more than one broker and not be at risk of flooding the market If using more than one broker be clear who you would like them to approach and be aware whether they have to go through another broker to ultimately reach the insurer LPM

ABOUT

SPONSORED EDITORIAL

ParagonBetter broking for legalContact Janine on 020 7280 8200wwwparagonbrokerscom

LPMLEGAL PRACTICE MANAGEMENT

SUPPLEMENT SEPTEMBER 2016

BUSINESS INFORMATION FOR EVERYONE IN PRACTICE MANAGEMENT

LPM INSIGHTS

Sponsored by

How do SME law firm management leaders see the future

LEGAL PRACTICE MANAGEMENT20

SEPTEMBER 2016LPM INSIGHTS

ALL CHANGE

22WHATrsquoS NEXT We analyse the 2016 LPM conference polling data

2 1 COMMENT Accesspointrsquos Richard Roebuck on legalrsquos increasing digital dangers

Change and transformation are words that strike fear into the most hardened of legal management hearts because they are hard to do and even

harder to make stick But change must happen inside todayrsquos SME law firms to make sure they stay in business in tomorrowrsquos world

At this yearrsquos Legal Practice Management conference in London we polled our audience of law firm management delegates on a range of topics Some questions wersquove been asking since our first LPM conference back in the misty era of 2012 Much has changed in the world since then (new UK governments drones are now lsquoa thingrsquo Donald Trump) but legal not so much The rise of the ABS has been slow (though impactful) and the recession has for many businesses faded into a distant memory compared to the Brexit debate

But SME law firms rightly smell a real need for change in the wind ndash and perhaps though they seem to find it hard to name that change the clues are legion Letrsquos find some

LPM London 2016 delegates named the greatest hurdles to their firmsrsquo growth or further success as lsquoacquiring high-quality staffrsquo and the lsquoinability to create change within the firmrsquo Might the solution to one lie in the other Great talent wants to flock to fresh and vigorous businesses and younger legal eagles are increasingly shy of throwing their lots in with the fusty world of partnership Law firm leaders must look at how their businesses are run and who runs them and how people work if they are to attract great people ndash and in doing so they will create the change they seek

Herersquos another 52 of delegates named lsquoclient pressures on costrsquo the factor thatrsquos having the biggest impact on the SME legal market ndash but when asked how important price is when winning business 67 said itrsquos just lsquoone of a range of important factorsrsquo while 21 said itrsquos lsquonot as important as other things such as relationshipsrsquo This is a disparity I canrsquot quite understand but it doesnrsquot sound like the SME legal market truly gets the shift thatrsquos happening on the client side and how much change needs to happen inside firms to meet this challenge

Read on and come to your own conclusions but I think the clues are now becoming obvious I hope your firm sees them too LPM

Rupert Collins-White editor-in-chiefLPMmag | rupertwlsncouk

You donrsquot as the song goes need to be a weatherman to know which way the wind is blowing in the legal market ndash but just because the clues are there doesnrsquot mean you can be complacent about acting on them

CONTENTS

FEATURES

LEGAL PRACTICE MANAGEMENT21

SEPTEMBER 2016LPM INSIGHTS

MORE TECHMORE SECURITY

INTRODUCTION TO THE RESEARCH FROM OUR SPONSOR RICHARD ROEBUCK MANAGING DIRECTOR ACCESSPOINT

After a recent period of uncertainty it would now seem that most firms are confident about their future especially in light of Brexit Whatrsquos also certain is

that most firms are very conscious that to compete they will need to change and adapt themselves for the challenges ahead

With growing concerns about the lack of high-quality people available and what appears to be a reliance on quality individuals driving more lucrative fee-earning work is it time for a gear change

Perhaps the dawn of high-volume low-margin fixed fee work which many firms feared has now arrived As always with change there are challenges to be faced but for those clever early adopters there lies opportunity Making light of the more process-driven tasks and finding more effective efficient ways of completion to deliver client-facing benefits seems key to the wider future of the fixed fee legal landscape

With the growing acceptance of cloud technology and the increasing introduction of new software applications and solutions the legal world has moved on at an improved pace this past couple of years And the world is now clearly keen for more ndash to satisfy its desire for a more accessible and mobile working environment What is key for this trend is that the lsquoquality of the deliverablersquo has an ongoing programme of improvement that benefits both the firm and its clients

As progress pulls us forward there will always be elements arrayed against us Alongside the opportunities hiding in the polling from LPM this year therersquos also a sense of fear and concern around possibly the biggest threat to risk and security there is right now ndash the dark byproduct of technological success cybercrime

Cybercrime is fast growing with ever more complex attacks making headlines It is now one of the most common criminal offences in the UK An increasing number of individuals are exploiting the speed and anonymity of the internet to commit a wide range of criminal activities having no conscience and knowing no borders

It isnrsquot our fault websites get hacked but poor internet safety habits can put us at risk Reusing passwords or using weak passwords make us easy targets for identity theft Remembering multiple passwords can be a pain but there are web services and associated applications that can help such as two factor authentication quality mail management systems URL threat protection and mail encryption

For many firms the biggest threats tend to be by way of the ever-open door into our networks and devices ndash email

Our eagerness to respond almost instantly to emails throughout what will be for most an already pressured day is perhaps the dominant daily activity to foster an unwanted lapse in security In the past 18 months alone I have seen three firms that were truly caught out ndash some with the potential for significant financial penalty by opening email attachments The most common lsquogotcharsquo is an email that appears to have come from the office scanning platform whereby the email address has been cleverly spoofed to appear legitimate (for example downstairscopiermyfirmdomaincouk) There are so many existing and newly circulating threats of this calibre and type that even the most aggressive of filtering systems struggle to keep up

Do you know the name(s) of your copiers and the associated email addresses Do you stop to think before opening the innocuous Word attachment ldquoDoesnrsquot our scanner usually send PDF files Why has a covering note not been included with the attachmentrdquo Stop think and call for advice

Another infamous scam is the spoofing of email addresses of key people within your firm ndash for example an email to the head of accounts appears to be from the senior partner ldquoPlease send pound17000 to account X at your earliest convenience and confirm once processedrdquo it says Stop ndash is this your agreed process

As the demand grows and we extend our reach out into the online world so cybercrime advances ever closer seeking unauthorised access through our front door Quite clearly online is the future but we need to embrace it with the necessary skill sets and processes in place for our convenience wellbeing and prosperity LPM

There are so many existing and newly circulating threats of this calibre and type that even the most aggressive of filtering systems struggle to keep up

Accesspoint are independent legal IT specialists who consult on a variety of information technology-related issues offering the best in IT solutions to help firms work more effectively

Contact Richard and the team on 0203 189 2645wwwtheaccesspointcouk

LEGAL PRACTICE MANAGEMENT22

SEPTEMBER 2016LPM INSIGHTS

SME law firms are in a battle for survival Whether they know it or not they have huge challenges to face in the next few years ndash around succession planning technology replacing lawyers and being

used by competitors to attain a competitive edge and catering to clients who increasingly want cost predictability transparency and availability

These market pressures were addressed at the LPM conference in May 2016 which was attended by over 100 delegates all SME legal management leaders The delegates were polled on the day about what they thought of the pressures facing them and how theyrsquore planning to overcome them ndash and their answers provide valuable insight into the SME legal market

The polling results show that LPM conference delegates were aware of the severity of the challenges they face Three-quarters of legal management leaders we polled at the 2016 LPM conference thought that the challenges theyrsquoll face in the next five to 10 years will be lsquomorersquo or lsquomuch morersquo serious than in past years And 58 of delegates thought that the challenges in the next year to two years will be lsquomore serious than in past yearsrsquo

How they will face these challenges depends at least partly on attitude ndash whether they believe they can win or will eventually lose the war Fortunately most LPM conference delegates were optimistic about their firmsrsquo futures - 81 were either lsquocautiouslyrsquo or lsquoveryrsquo optimistic about their place in the legal market of the future

This doesnrsquot necessarily suggest that theyrsquore confident in the market overall particularly after the market instability brought by Brexit Legal management leaders might believe their firm is the only one thatrsquoll survive due to expertise in a particular area or niche In any case it indicates market confidence and a confidence in the ability of their firm to compete and succeed

But is this optimism misplaced in a market where the future is increasingly uncertain and competitive Are firms really ready for change on a huge scale as their confidence might suggest What are the issues currently keeping SME legal leaders awake at night

In this report LPM shines a light on the SME legal market through the eyes of our legal management leader audience ndash those driving their firms through an uncertain new world

WHATrsquoS NEXTChange is on the agenda for LPM firms but how to address the biggest challenges and which ones to face first is a tough call finds Patrick Wingrove

More serious than in past yearsMuch more serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch less serious than in past years

51

14

8

3

24

More serious than in past yearsMuch more serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch less serious than in past years

How would you rate the challenges your firm faces in the next five to 10 years

More serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch more serious than in past yearsMuch less serious than in past years

58

17

6

0

19

More serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch more serious than in past yearsMuch less serious than in past years

How would you rate the challenges your firm faces in the next year to two years

What is the greatest hurdle to your firmrsquos growth or further success

What is the greatest hurdle to your firmrsquos growth or further success

LEGAL PRACTICE MANAGEMENT23

SEPTEMBER 2016LPM INSIGHTS

TIMES THEY ARE A CHANGINrsquo The overriding theme of the 2016 LPM conference was change ndash how firms can implement it the drivers behind it and the various blockers to it But the first step to change is gauging which factors will have the biggest impact on the legal market Just over half of legal management leaders we polled thought client pressures on cost like demanding fixed fees will have the biggest impact while just over a quarter thought it will be competitors attaining a market advantage using technology

How quickly do firms need to respond to these oncoming market pressures Well 86 of LPM conference delegates thought that change needs to happen in their firms within the next two to five years But 14 said that their firm doesnrsquot need to change significantly perhaps because theyrsquove beaten the rest to the punch their legal business is somehow immune to new pressures ndash or they have their heads in the sand

Legal has traditionally been resistant to change and itrsquos not surprising that some firms still are says Sean Stuttaford COO at Essex firm Thompson Smith and Puxon (TSP) and 2016 LPM conference delegate ldquoThere are still firms out there where partners donrsquot have computers on their desks ndash theyrsquore stuck in their ways and just point blank refuse to

52 26 5 12 5

develop their business for the futurerdquoBut legal management leaders willing to implement

change may still find it difficult as 60 of LPM conference delegates polled thought that lsquochange isnrsquot really understood at their firmrsquo

GROWING PAINSJust over a quarter of LPM conference delegates also thought that an inability to create change within their firm would be the greatest hurdle to the businessrsquos growth or further success ndash though Stuttaford at TSP suggests voters might have blamed the traditional partnership business model for the same reason

But acquiring high-quality staff was considered to be the greatest hurdle for growth or success by 36 of delegates Rebecca Patterson HR manager at Kent firm Thackray Williams and 2016 LPM conference delegate says that she agrees with this result ldquoOur firm has a particularly tough time finding quality support staff ndash we could perhaps stand to invest more in competency frameworks and performance management and training opportunities to aid recruitment and retentionrdquo

William Robins operations director at lsquodistributedrsquo firm Keystone Law and a 2016 LPM conference speaker says

12 36 27 13 12

Lack of fundsAcquiring high-quality staffInability to create change within the firmTechnologyThe traditional partnership business model

Out of these which factor is having the biggest impact on the SME legal market

Client pressures on cost (eg fixed fees)Technology creating advantage for competitorsConsolidationDifficulty in finding routes to growth (eg funding)Something else

What is the greatest hurdle to your firmrsquos growth or further success

LEGAL PRACTICE MANAGEMENT24

SEPTEMBER 2016LPM INSIGHTS

offering a more flexible remote or mobile working set-up for everyone in a firm is an excellent way to attract talent (Keystonersquos model of course is founded on remote working) Perhaps the majority of legal management leaders polled at the 2016 LPM conference agree since their firms have either adopted a flexible remote or mobile working set-up are planning to adopt one or are considering adopting one ndash though there are other advantages to remote working such as reducing overheads In any case the results indicate that the SME legal working landscape is becoming considerably more flexible

But remote working doesnrsquot work for everyone Mary Mocklow CEO at West Midlands firm Talbots Law and 2016 LPM conference delegate says that their high-street set-up wouldnrsquot allow it ldquoThe majority of our staff are client-facing and need to be present at the office ndash and while there are other staff at Talbots that might benefit from remote working you canrsquot have a policy for one and not for allrdquo

CYBER THREATSTechnology was clearly a significant concern for legal management leaders who attended the 2016 LPM conference Patterson at Thackray Williams says some firms have had a hard time finding software that caters to their needs as a business and an LPM conference poll seems to back this up just under half of legal management leaders polled at the conference thought project teams should write law firm software indicating a desire for cross-department input into its creation But the poll also indicates that legal software providers have to a large extent been meeting their clientsrsquo needs

The rising threat of cybercrime was also a clear concern for LPM conference delegates ndash 92 of SME legal management leaders said their firms have cyber risk on their management meeting agendas Stuttaford at TSP says ldquoItrsquos something firms need to be constantly aware of and take precautions against not just by purchasing good firewall and antivirus software but by educating staff about password discipline authentication processes and suchrdquo

32 18 14 33 3

Is cyber risk on your management meeting agenda

92

5 3

Yes No Dont know

Is your firm moving to a more flexible workingremote or mobile working set-up for everyone in it

YesNoConsidering itWe already do itDont know

LEGAL PRACTICE MANAGEMENT25

SEPTEMBER 2016LPM INSIGHTS

PRESSURES AND PRICINGClient pressures on cost was also a major concern for legal management leaders polled at the conference so it may not be surprising that just over half of them said 50 or more of their firmrsquos work is some form of fixed fee This doesnrsquot necessarily suggest that the other half arenrsquot open to the concept of fixed fee ndash Mocklow at Talbots points out that fixed fees work for certain types of work ldquoHigh-street firms like Talbots can benefit greatly from fixed fees which is why 75 of our work is fixed fee but itrsquos more difficult to apply to firms that specialise in something like admiralty lawrdquo

The industry seems to think that the value of service has been lost to the price obsession in some areas but not in others ndash and while pricing is clearly a vital issue for SME firms 88 of legal management leaders polled at the LPM conference thought that itrsquos lsquoone of a range of important factorsrsquo or lsquonot as important as other thingsrsquo Patterson at Thackray Williams says that maintaining a good relationship with clients is often more important than pricing though pricing can be a means to achieving client satisfaction ldquoIt also depends on the client ndash in something like conveyancing first-time buyers might be looking for fixed fees or the cheapest price but for commercial clients that may not be as important as reputation or relationshiprdquo

TREASURE MAPPINGLegal process mapping often used by lsquobig lawrsquo and making inroads into SME legal could potentially make SME firms a great deal more efficient and therefore more competitive Two-thirds of legal management leaders polled had heard of process mapping and 79 thought that it is relevant to the business of law Stuttaford at TSP says he agrees ldquoFirms should look at their processes learn from them and figure out how to improve those processes ndash this question really made us look at what TSP has done so far in terms of what legal processes wersquove mapped and whenrdquo

To sum up LPM conference delegates were aware of the challenges that face them but were mostly optimistic nonetheless This may be because they know they need to change and in spite of the fact that change isnrsquot really understood at their firms are planning to mend their ways to meet future market pressures ndash generally putting the client first while keeping talent and technology high on their agendas LPM

Are aware of this thing called legal process mapping

66

34

Has the value of service been lost to the price obsession

23

23

54

Yes No Depends on the service Dont know

Yes No

How important is price in winning business

8

4

67

21

CriticalMore important than almost all factorsIts one of a range of important factorsNot as important as other things such as relationshipsIts one of the less important things in reality

What is the greatest hurdle to your firmrsquos Are aware of this thing called legal process mapping

LEGAL PRACTICE MANAGEMENT27

SEPTEMBER 2016COLUMNSSPONSORED EDITORIAL

Welcome back LPM readers ndash the new school term has started summer is (pretty much) over and the UK is back in full throttle after the summer break And what a break itrsquos been at

File Queen HQ (wersquove taken the time to get our clients up and running with augustprojects as well as started our new Instagram feed filequeenadds)

With the start of the new learning year wersquore focused on the education of you lovely LPM readers ndash with our attention turning back to the General Data Protection Regulation You may remember that in our last LPM article we ran through the 12 steps to tackle the GDPR helped by the awesome people at the Information Commissionerrsquos Office ndash wersquove provided a link to their 12-step resource via our website wwwarchivestoragenetnewsgdpr

Over the next three columns wersquoll be taking these steps and breaking them down for you ndash starting with step one awareness The File Queen (myself) and the team at ADDS have been promoting this step as the most important for all legal practices

ldquoWhyrdquo we hear you holler Well this step is the all-important life raft that unites your practice and team members to help you in the GDPR fight for survival (dramatic I know)

Getting the team on board ndash this buy-in needs to include all ranks of staff ndash from the managing partners to your suppliers But how do you do this Well here are some File Queen tips for when we at ADDS are rolling out projects

Lunch and learn ndash with a register People love to eat and be social so get your legal business to book in a couple of lunch and learn sessions Donrsquot limit this to one date ndash you must run at least two or three so people have the option of which dates to attend Make sure you make a register for those that actually turn up (we all know a calendar acceptance doesnrsquot mean theyrsquoll actually appear) This will allow you to chase down the members of the team you need to get on board for the next one

Have some decent sandwiches nibbles and soft drinks and give the team an overview of the GDPR Run through the 12 steps and make sure you educate them on why everything is so important (make sure you mention the increased fines and audits) During this time let the team know that there are several steps along the way that yoursquoll need their help and support for and which you wonrsquot be able to achieve on your own Tell them that the businessrsquos reputation and brand is on the line and that you need everyone on board to lend a helping hand and spread the word

Another great File Queen tip at this stage is also to get some additional funding from the practice manager for a wine and quiz night at the end of the lunch and learn periods This can be part of your social gathering on a Friday straight after work ndash with some more nibbles and wine Assign people to teams and have a GDPR quiz The winning team gets an award and everyone has fun and learns at the same time Follow our twitter feed as wersquoll be tweeting some great questions to ask thefilequeen GDPRQUIZ

We know itrsquos a lot to organise but there are only four months left in 2016 and GDPR practices must be in place by 25 May 2018 And believe me when you have to roll out rather hard core legislation you have to make it fun and interactive to get people on board LPM

ABOUT

NATASHA RAWLEY THE FILE QUEEN

EDUCATING YOUR PROS

ADDSSaving firms from paper hellContact Natasha on0800 328 0272wwwarchivestoragenet

LEGAL PRACTICE MANAGEMENT28

SEPTEMBER 2016FEATURES

28

Patrick Wingrove talks to the founders of Proelium Law about their work providing legal advice in high-risk environments and conflict zones and the challenges of setting up shop in a new and risky area of law

Legal commandosProelium

Compared to the day-to-day lives of Proelium Law founders and partners Richard Stephens (above left) and Adrian Powell (centre) the average lawyer leads a pretty humdrum life Though UK-based the

firm has a strong international focus ndash Stephens and Powell regularly travel to provide legal and business advice to companies and individuals in high-risk professions or working in hazardous environments across the globe including conflict zones in Iraq Syria and Afghanistan Powell says that itrsquos a challenging but exciting area of law to be in and that ldquono two days are ever the samerdquo

The firm was established as an ABS in November 2015 allowing Powell and Stephens to operate as partners although Stephens isnrsquot a lawyer Powell qualified as a solicitor in 2004 after spending 11 years of his career in the British army and post-2006 worked on various high-risk projects around the world ndash giving him the inspiration for Proelium He says ldquoThe idea came to me in Baghdad in 2009 while working for a private security company as a legal adviser ndash I thought lsquoWhy isnrsquot there a firm doing thisrsquo But I soon realised that I needed someone on the ground who wasnrsquot a lawyer to help make it happenrdquo

That person was Stephens He previously served in the Royal Marines worked as a Whitehall-based strategic planner for the UK government and commanded a special operations regiment (which is why we couldnrsquot show you his face but itrsquos a nice issue of LPM) He now works primarily on the business development side of Proelium ldquoJoining Adrian who Irsquod previously worked with on projects around the

LAW FIRM PROFILE

LEGAL PRACTICE MANAGEMENT29

SEPTEMBER 2016FEATURES

world at a firm meant I could do fascinating and important work with the credibility that being a partner in a regulated business providesrdquo he says

Their work has certainly been interesting Proelium has cast its net far within the niche high-risk sector ndash advising UK-based service providers on the complexities of working in hostile environments conducting business and human rights due diligence and ensuring anti-money laundering counter terrorist-financing and anti-bribery compliance for companies intending to run in high-risk areas or conflict zones to name a few Recently theyrsquove also been working on developing capability for national intelligence organisations overseas ndash but for fear of being jailed for treason Stephens and Powell didnrsquot elaborate hellip

Powell says that the challenges companies face in these areas are numerous ldquoTherersquos a real technical knowledge in understanding how organisations physically work overseas These companies are good at what they do but that doesnrsquot necessarily translate into being business-savvy when it comes to operating in frontier markets ndash thatrsquos where Proelium adds valuerdquo For example after a client was recently exposed on an arms deal they were able to quickly discern liability and ensure that all necessary agencies and departments were appropriately informed

Powell and Stephens joke about how theyrsquore the number-one firm in their sector ndash admitting that to their knowledge theyrsquore the only firm that specialises in this area of law They added that itrsquos an untapped niche in which Proelium will be a pioneering force but which has also recently come onto the radar of a larger firm Theyrsquore alluding of course to Proeliumrsquos recent venture with Harrison Clark Rickerbys ndash a joining that combines Proeliumrsquos experience working in high-risk jurisdictions with the manpower and existing defence and security expertise of

HCR Powell says ldquoWhat they donrsquot have is our connections and our experience They like the idea of the sector because they see it as an interesting area and the partnership will allow us to offer a wealth of different legal services while letting us focus on what we do bestrdquo

As part of their ambitions for Proelium Powell and Stephens are keen to train a new generation of lawyers whorsquoll specialise in the high-risk sector ldquoWe have confidence in what the younger generation has to offer and we want them in our industry to continue our work in this relatively untapped areardquo says Powell Stephens adds that itrsquos also a matter of succession planning ldquoWe want the firm to operate long into the future but we donrsquot necessarily want to be running it ourselves for the next 20 yearsrdquo Proelium currently employs two interns as part of this commitment including University of Surrey law student Ruby Jamieson (pictured) She says ldquoWorking [at Proelium] has given me loads of insight already ndash itrsquos very niche

very new and Irsquove really enjoyed helping develop the business I feel that itrsquoll open a lot of doors when I graduaterdquo

In terms of expansion Proelium has recently opened a new office in the City of London Powell says that his home was originally the firmrsquos practising address but a large portion of their client-base is in London ldquoand we couldnrsquot keep having our meetings in coffee shopsrdquo

But Powell and Stephens are firm believers in the concept of remote working which works particularly well for their business

ldquoMost of our clients are either in London or outside the EU so Irsquom always away but all my phone calls are redirected from the new office to my mobile so I can keep in touch with clients whether Irsquom in Dubai or Baghdadrdquo says Stephens Powell adds that he feels remote working has the added benefit of keeping staff happy by letting them work from home which he says certainly makes him more productive as a fee earner

Proelium isnrsquot looking to expand into areas it has no interest in like family law but theyrsquore taking a keen interest in the emerging area of cyber law and are considering taking steps into that world ldquoLike high-risk law no onersquos really wrapped their arms around cyber law yet Therersquos cyber law in the US but it doesnrsquot exist per se in the UK except in terms of data protectionrdquo

When asked what advice they could give to SME firms based on their unique experiences in their sector Powell and Stephens said firms should know the areas of law they practise inside and out Powell says ldquoWersquore concerned with being experts in our field ndash a lot of our clients have peoplersquos lives in their hands and are not in the business of nonsense which is why they come to us We give sound researched legal advice based on experience and if we donrsquot know something we send the client to someone who doesrdquo LPM

ldquoCompanies are good at what they do but that doesnrsquot necessarily translate into being business-savvy when it comes to operating in frontier markets ndash thatrsquos where Proelium adds valuerdquo

Proelium

Two fee earners four total staff

Offices City of London Wirral Cheltenham

Specialisms International criminal commercial and conflict law due diligence sensitive investigations

LPM FACT FILE

ldquod2u is the UKrsquos number one outsourced transcription service for medical and legal professionals and highly competitive all over the world We pride ourselves on saving our clients time and money as well as offering state-of-the-art security and a first-rate servicerdquo Daryl Leigh CEO dictate2us

LPM magazine has agreed a special deal for its readers with dictate2us ndash 5 off your monthly

transcription bill for one year if you sign up through the dedicated LPM link or call and quote LPM2016 when signing up You can trial the service for free before committing

CUT COSTS INCREASE EFFICIENCYAll firms could benefit from outsourcing transcription to dictate2us ndash but even more so with our LPM deal 5 off your first year

wwwdictate2uscomlpm

Use d2u and enjoy the benefits ofbull Fast turnaround timesbull Secure and confidential servicebull Secetarial cost reductions of up to 60bull Guaranteed 985 minimum accuracybull iPhone Android and Blackberry apps with one-hour turnaroundbull 100 output - only pay for the time you talkbull Free no obligation trial

This special LPM magazine reader deal only relates to customers that execute an agreement for a minimum term of 12 months with a minimum monthly commitment of 500 minutes LPM magazine sought two law firm references for dictate2us to verify its claims for quality and delivery The 5 deal only applies to the first paying year the customer is with dictate2us LPM magazine is not responsible or liable in any way for work done by dictate2us and is an advertising referrer only

d u2 dic t a t e 2 u s

SPECIAL READER OFFER

The d2u Transcriber app is free to download from Apple and Android app stores and BlackBerry App World

OFFER 5 OFF

YOUR FIRMrsquoS FIRST YEAR OF

TRANSCRIPTIONSIGN UP ONLINE

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WHEN CALLING

LPMLEGAL PRACTICE MANAGEMENT

LPMLEGAL PRACTICE MANAGEMENT

DictateBRIEFINGv2indd 1 28042016 1336

LEGAL PRACTICE MANAGEMENT31

SEPTEMBER 2016FEATURES

Patrick Wingrove speaks to management leaders from SME and top 100 law firms that have recently achieved significant growth to find out how to go from acorn to oak tree

FROM MINNOW TO

For many SME firms growth is the goal ndash but it doesnrsquot have to happen in the ways that many have scaled in the past The era of organic slow quiet steady partnership development over decades is

increasingly at odds with a fast-paced digital world Strategies for growth in the legal market are now closer than ever to the rest of the business world ndash and any size firm can learn how to do it

Big or small there are similar tools in the box for making growth happen and similar challenges Lessons abound but some of the best can be taken from those firms not far outside the famous lsquotop 100rsquo legal businesses in the land ndash those that have already grown up and now have the top tier in their sights There are also lessons to draw from smaller but rapidly scaling law firms

There are many growth strategies for organic and acquisitive growth ndash and no easy answer for which is right for your firm To shine a light on the subject wersquove spoken both to SME and top 100 firms about growth and how to do it (and importantly how not to do it)

MAMMOTH

LEGAL PRACTICE MANAGEMENT32

SEPTEMBER 2016FEATURES

MODELS OF GROWTH According to the Lawyer the two fastest growing firms in the top 200 this year are Midlands-based Knights and lsquodistributedrsquo firm Keystone Law ndash currently placed 119 and 122 in the 2015 UK 200 rankings but whose revenue will now put them well inside the 2016 top 100 (due for release October 2016) Both attribute their growth to non-traditional business models ndash and very different non-traditional models at that

Knights corporatised in 2014 to remove the barriers from its decision making processes which CEO David Beech says has been the key to its growth ldquoEquity partnerships donrsquot grow particularly quickly because itrsquos hard to achieve consensus and make decisions that enable fundamental or rapid growth among equity partnersrdquo

Knights acquired Oxford-based Darbys earlier this year ndash a move largely behind the revenue increase that will put them in the top 100 ndash and completed the transition inside three months which Beech says would have been next to impossible under their old business structure ldquoNot only was a quick turnaround good for the books it saved significant time and money that could be invested elsewhere in the businessrdquo he says

Top 100 firm Simpson Millar is one step

ahead of Knights The firm broke the glass ceiling to become a top 100 firm in 2015 and like Knights the firm attributes its growing success to corporatisation ndash but in a different manner

It sought to be and was eventually acquired by PLC Fairpoint Group in 2014 Simpson Millar continues to run as an LLP under the same management team and existing trading brands but as a business unit within Fairpoint

Managing partner Peter Watson says that one of the key reasons to pursue this particular growth strategy was to provide an injection of capital for MampA ldquoWe completed the sizeable acquisition of Colemans last year for example which we were only able to do with considerable investment from Fairpointrdquo

Being part of a PLC has also given the firm access to strong MampA and project management capabilities ldquoAcquiring Colemans doubled the business overnight ndash for something like that you need strong MampA experience and access to that team within Fairpoint was crucial in getting the deal across the linerdquo says Watson Simpson Millar also built a strong digital strategy launched new products and focused on pricing ldquoCall it fixed fees or packaged fees the point of it was to say to consumers

Square One Law

Revenue pound5m

31 fee earners 53 total staff

Offices Newcastle-upon-Tyne

Specialisms Commercial corporate property employment EU and competition law finance litigation private client

LPM FACT FILE

Knights

Revenue pound40m (year end 2017)

375 fee earners 450 total staff

Offices Chester Cheltenham Newcastle-under-Lyme Derby Oxford Hale

Specialisms Full service firm

LPM FACT FILE

LEGAL PRACTICE MANAGEMENT33

SEPTEMBER 2016FEATURES

lsquoWith us you know exactly what yoursquoll get and how much itrsquoll costrsquordquo

PEOPLE PLEASERSThe ability to implement change has also been an important part of delivering a growth strategy This isnrsquot necessarily surprising ndash polling at the 2016 Legal Practice Management conference showed that legal business managers thought it was one of the greatest hurdles to a firmrsquos growth or success only topped by acquiring high-quality staff In Knightsrsquo case the two challenges were addressed together Beech says Knightsrsquo corporate rather than partnership structure also allows it to recruit talented people without having to deal with the inherent politics of an equity partnership

ldquoAcquiring the best talent has been a central part of our growth strategy ndash if a candidate can help the business through expertise or client following we can just recruit themrdquo he added

But a successful growth strategy incorporating talent isnrsquot just about recruiting quickly as we analysed in the July 2016 issue of LPM ndash itrsquos about recruiting well Firms also need to make themselves an attractive prospect for legal talent in order to grow

William Robins operations director at Keystone Law says his firmrsquos lsquodispersedrsquo model allows it to do that by offering new fee earners the chance to work remotely with less supervision ldquoWersquore typically hiring about a lawyer a week ndash bringing their expertise fee-earning capability and client following with them ndash and that is the core part of our growth strategyrdquo The firm has buttressed its recruitment capability by hiring a director of recruitment to focus almost entirely on lawyer enrolment (recruiting talent to recruit talent ndash neat)

Though the distributed model may not be for everyone says Robins implementing some form of flexible mobile or remote working should be part of any firmrsquos growth strategy because it allows firms to increase their fee-earning capability without accruing fixed overheads such as office premises

And there are other ways to be talent-attractive As a core part of its growth strategy Newcastle-based firm Square One Law ndash which achieved 30 growth in the

last financial year ndash has pledged to create a supportive and inspirational team environment offering high-calibre work to attract the best talent Ian Gilthorpe senior partner at Square One says ldquoGood people want to be inspired to be valued for what they do and feel as though theyrsquore making a contribution The key is to engage with all your staff to facilitate a culture where staff feel happy at work work for each other trust each other and ensure that they see the value in what they do ndash if you do that more talent will comerdquo

He added that itrsquos important for

recruitment to convey staff satisfaction to the outside world which Square One has achieved by including staff video-testimonials on its website

But recruiting is only half of an effective people strategy ndash the other is retention Simpson Millar has attempted to create an environment that its talented staff wonrsquot want to leave Says Watson ldquoToo many firms worry about what will happen if their rainmaker goes somewhere else and takes clients with them ndash so they put the shackles on make them feel unhappy and make it so that they canrsquot realise their full potentialrdquo Creating such an environment makes firms an attractive target for lateral hires when they should be building a place people want to join

PRACTICE AREASSME legal businesses donrsquot necessarily need to change their business models completely to achieve the same growth as

Thorntons

Revenue pound20m

209 fee earners 430 total staff

Offices Dundee Edinburgh St Andrews Perth Cupcar Kirkcaldy Anstruther Arbroath Montrose Forfar

Specialisms Full service firm

Keystone

Revenue pound202m

198 fee earners 230 total staff

Offices London Bristol Isle of Man Australia

Specialisms Corporate and commercial dispute resolution property

LPM FACT FILE

LPM FACT FILE

Equity partnerships donrsquot grow particularly quickly because itrsquos hard to achieve consensus and make decisions that enable fundamental or rapid growth among equity partners David Beech CEO Knights

Simpson Millar

Revenue pound316m

322 fee earners 539 total staff

Offices Birmingham Bristol Cardiff Cheadle Hulme Gateshead Kingston-upon-Thames Lancaster Leeds Park Place Leeds St Pauls Street (head office) London Manchester Newcastle

Specialisms Full service firm

LPM FACT FILE

LEGAL PRACTICE MANAGEMENT34

SEPTEMBER 2016FEATURES

our examples but removing blockers from decision-making making themselves more attractive to talent and finding the right funding for growth are increasingly important and the partnership structure may not enable it

But of course that means asking some turkeys to vote in a Yuletide election Fortunately there are other ways to achieve impressive growth mainly investment andor expansion into new geographic or practice areas

Watson says that Simpson Millar wouldnrsquot have been an attractive prospect to Fairpoint had the firm not spent time growing organically by expanding into new areas of law

ldquoWe went from being a predominantly trade union PI firm to having a broad base of 16 types of work ndash with strong heads in charge of each committed to driving growth in their departments ndash which gave us a large boost in revenuerdquo The firm achieved this through small acquisitions of other firms that had expertise in particularly lucrative areas of law

But firms shouldnrsquot just look at expanding in lucrative areas ndash they should focus on areas where their reputations deliver an advantage Scotlandrsquos Thorntons for example ndash which last year leapt from 134 to 108 in the 2015 UK 200 rankings ndash invested in six departments as part of its growth strategy

Thorntons joint managing partner Scott Milne says ldquoWe didnrsquot exclude other areas but we saw that these areas were profitable and that more importantly we had considerable expertise in them ndash we also considered that these are areas that are unlikely to be affected by future economic downturnrdquo This included investing in niche areas of law where the firm has a geographic competitive advantage ldquoWersquore lucky to be surrounded by some of the best farmland in the UK ndash wersquore well known for our expertise in rural business law which is why we invested heavily in itrdquo

ORGANIC V ACQUISITIONIn several ways choosing an effective growth strategy very much boils down to MampA versus organic growth ndash every business model talent or area expansion strategy appears to revolve around one or both But which is the best to achieve the kind of growth thatrsquoll propel firms to a lsquohockey stickrsquo on their revenue forecasts The short answer is it depends on whatrsquos best for a firm at a given time It either

needs to fit the firm ndash or the firm needs to change to fit the goal

Beech says that acquisition has been excellent for Knights because itrsquos a fast and effective form of expansion ndash the acquisition of Darbys more than doubled its revenue But MampA poses a significant challenge to finding firms with the right cultural fit

ldquoFirms need to establish a single culture in order to implement growth ndash everyone needs to be working towards the same goalrdquo He added that when a firm completes a merger or acquisition that firm has to be integrated from day one which is much more difficult if it has a significantly different culture Knights is planning to continue recruiting and complete more acquisitions in the next year to maintain the growth curve

Of course the big problem with acquisition is money Robins at Keystone says his firm lies at the opposite end of this

INFORMATION IS EMPOWERING

Lemington Spa-based firm Wright Hassall has a specific goal of breaking into the top 100 and as part of its growth strategy expanded into areas of the UK where its expertise is highly sought after ndash using customer relationship management in the background to underpin the firmrsquos activities in specific areas Martyn Wells IT director at the firm says ldquoWersquove zoomed in on specific industry sectors that we know are performing well in the Midlands sectors where we have a superb reputationrdquo Expanding geographically as Wells outlines needs data to get right Thorntons for example identified various lsquomicro-marketsrsquo in Scotland close to its base of operations ldquoWe acquired a firm in St Andrews because itrsquos like a micro-economy (or micro-market) that doesnrsquot seem to be affected by price drops in the residential market elsewhererdquo says Thorntons joint managing partner Scott Milne Knights has another take on the geographic targeting idea ndash it intends to stay out of the large cities (London Manchester Leeds for example) and expand into areas where there is little competition As David Beech CEO at Knights explains ldquoLast September we acquired a small team in Chester of about 11 lawyers and now thatrsquos expanded to just over 70 ndash and the main reason wersquove been able to do that is because there isnrsquot a lot of competition thererdquoUltimately this all comes down to research finding out what to invest in or where to expand and perhaps most importantly finding out what clients want

LEGAL PRACTICE MANAGEMENT35

SEPTEMBER 2016FEATURES

spectrum to the way Knights has grown emphasising organic growth finding innovative means to attract talent using technology to drive efficiency and branching out into new areas of law or new markets to achieve significant growth

Square One Law also espouses the organic route ndash believing that firms with growth in mind should focus on ensuring their external brand reflects the businessrsquos internal culture and behaviours of its team creating lsquosynergyrsquo between the business and its clients

Gilthorpe says ldquoMergers ndash and there is no such thing as a true merger ndash and acquisitions can be a distraction as you look to create a new culture and separate the wheat from the chaff and this can soak up a lot of energy that would otherwise be put to use in driving the progression of the business and the focus on client servicerdquo

The best option for some firms may be a

calculated combination of MampA and organic Thorntons for example having made several acquisitions is now focusing on organic growth moving away from geographical expansion and towards developing locations and its brand

Watson at Simpson Millar sums the mixed approach up thus ldquoItrsquos a mixture Acquisition is still very much a part of the mix but in parallel to that itrsquos important to demonstrate that yoursquore developing ongoing work rather than being driven solely by acquisitionrdquo

There are clearly many different ways to achieve healthy and assertive growth though there are no easy answers as to which way is right for your firm But it is clear that growth doesnrsquot have to happen in the ways many have previously achieved it ndash innovation and lateral thinking are the means of achieving significant growth (which might one day propel you into the top 100 you never know) LPM

LEGAL PRACTICE MANAGEMENT36

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

INDUSTRY VIEWS

36LEGAL PRACTICE MANAGEMENT

Legal is becoming an ever more digital industry giving firms the chance to become more efficient flexible agile and collaborative

INDUSTRY VIEWS INDEX

ONLINEOFFICES

36

SPONSORED EDITORIAL

INDUSTRY VIEWS

37 INTERVIEW

Paperless processLinetimersquos Tony Klejnow explains the benefits of using matter management software for law firms and their clients

39 INTERVIEW

Virtual expansionNigel Redwood Nasstarrsquos CEO talks about the advantages of having a managed flexible IT infrastructure

LEGAL PRACTICE MANAGEMENT37

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT37

Competition and price pressures and an increasingly digital client base are all significant drivers for law firms to become paperless

businesses Tony Klejnow Linetimersquos managing director says firms could achieve competitive advantage by introducing paperless solutions across their businesses ndash but a particular lsquoeasy winrsquo area is matter management

ldquoFee earners are required to keep detailed records of their cases but the amount of time and money they waste physically printing filing looking for collaborating on and updating files is alarmingrdquo says Klejnow Law firms have traditionally been reluctant to adopt paperless

workflow solutions he adds because workflow doesnrsquot apply to 99 of fee earnersrsquo work ldquoBut if they adopted paperless solutions in their back office processes they could reduce costs without affecting client service boost productivity and promote collaboration ndash making them more efficient flexible and cost effective and making them more competitive in an ever-changing legal marketrdquo

MATTER MATTERSDocument and matter management tools ndash like those in Linetimersquos legal software product Liberate ndash electronically store and organise all case documentation in an online database Klejnow says that there are two immediate benefits of paperless matter

PAPERLESS PROCESS

Tony Klejnow managing director at Linetime talks to LPM about the benefits of the paperless office ndash starting with filing and back office processes

INDUSTRY VIEWS

Linetime is a specialist provider of Microsoft-based practice and case management solutions Clients include mid-tier law firms and in-house legal departmentswwwlinetimecouk

ABOUT THE SPONSOR

SPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT38

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT 38

management The first is reducing paper and storage costs

ldquoIf case documentation is electronically stored once a case is finished you no longer have a five-inches-thick file that has to be stored for six years ndash which has to reside somewhere and costs firms time space and moneyrdquo The second is eliminating filing time ndash for example instead of printing and filing emails and attachments fee earners drag and drop emails directly from Outlook into the database ldquoand attachments are automatically stripped from emails and appropriately filedrdquo says Klejnow

And Klejnow says paperless filing systems donrsquot just facilitate efficiency this way ndash they also improve general process efficiency by facilitating collaboration between fee earners Solicitors can use document and matter management to view and work on matters at the same time a difficult if not impossible prospect when working with paper files Klejnow says ldquoWithout document management legal professionals work in silos but with it they immediately share datardquo He adds that Liberate has an additional collaboration tool to help further improve collaborative efficiency in firms ldquoIf I choose to lsquocollaboratersquo a document with you on Liberate Outlook will prompt you to review that document by simply acknowledging the notificationrdquo

In this respect moving to become a paperless business provides greater flexibility for fee earners who can collaborate with colleagues working remotely or in different offices Klejnow says ldquoPaper files can only reside in one location but electronic files can be accessed from any office and when working from home or with clientsrdquo On the other side of the coin having digital files maintains a greater level of productivity in a law firm office ldquoIf your colleague is absent from the office you can easily find documents that you might have otherwise wasted a significant portion of your day looking forrdquo he adds

Improved external collaboration is also a benefit that firms can reap from paperless matter management With an electronic system you can go into a case history bundle documents into one PDF file and quickly submit that to the third party improving collaboration between fee earners and clients who want to do everything online This has the added benefit of improving accuracy and facilitating greater efficiency by involving clients in the process ldquoGood matter management software should also let you push e-forms to clients to be filled in and that information is automatically transferred straight to the online database ndash which saves fee earners

time and is a more accurate because the information doesnrsquot have to be constantly re-enteredrdquo says Klejnow

This extra level of collaboration within legal businesses that hasnrsquot been possible until now has long been needed because it improves efficiency and productivity which makes the business more profitable and competitive Klejnow adds that what firms save by adopting matter management they should reinvest in becoming fully paperless digital businesses

ldquoCase management solutions can improve efficiency to an even greater extent and keep firms competitive in the age of the alternative business structuresrdquo

VISIBLE COMPLIANCEIn response to firms reluctant to adopt paperless technologies like document and matter management for fear of losing delicate information to cybercriminals Klejnow says those systems provide an additional level of security ldquoTaking data and attachments out of Outlook and storing them on a database is much more secure than leaving them on your hard drive If you leave

your laptop on a train for example all your important data is safely stored on a server and not instantly accessible by opportunist criminalsrdquo

Document and matter management also offers a greater level of security in fee earner and client communications ldquoIf I want you to check that the data we have for you is accurate Liberate will

direct you to a page holding your data and at the same time it will push out an SMS text with a pin code to your phone Unless you input the code you canrsquot get to the web page ndash which means if one of your solicitors accidentally sends an email to the wrong person or itrsquos intercepted it doesnrsquot matter The data stays safe ndash this level of security is crucial in this age of cybercrimerdquo

These security features clearly have significant benefits for compliance which is important in a market increasingly dictated by regulation including the relatively new General Data Protection Regulation says Klejnow

ldquoCompliance officers need to be seen by regulators to have monitored and reviewed everything thatrsquos happened in their firm which is considerably easier with a paperless system Liberate has lsquoversion controlrsquo which allows compliance officers to keep tabs on every change made to a document as well as a compliance module which lets them view whatrsquos happening on a case (to ensure that money laundering checks have been carried out and so on) and records the fact that yoursquove reviewed thisrdquo LPM

Without document management legal professionals work in silos but with it they immediately share data

INTERVIEW

LEGAL PRACTICE MANAGEMENT39

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LPM readers may already know the Nasstar Group ndash but by a different name Nasstar was launched by regular LPM-contributor e-knownet to consolidate four discrete hosted

managed IT businesses (including e-knownet) after a period of significant acquisition Nigel Redwood chief executive officer at Nasstar says merger and acquisition and consolidating brands is challenging but having a flexible hosted IT infrastructure makes the process significantly easier

ldquoManaged IT services are enormously beneficial for firms that are expanding or consolidating particularly after MampA in terms of time and productivity cost savings and flexibilityrdquo He adds that by just having managed desktops firms can attain competitive advantage by reducing overheads and becoming more flexible and agile

Nasstar has experience helping SME firms with their IT systems after MampA and knows what problems to look out for creating unity among staff used to using different systems and processes the cost and time it takes to expand an IT infrastructure and the geographic distance between new offices

Redwood says that MampA can be an excellent way for legal businesses to expand into new sectors but that consolidating new departments using different IT systems and processes is challenging

ldquoOur acquisitions for example introduced new sector focuses for us in the SME legal market ndash wersquove consolidated these into a wider service base under Nasstar and facilitated unity among staff using virtual IT solutions

rdquoVirtual IT solutions help facilitate unity across the business by providing a level of consistency in an IT infrastructure Everyone immediately uses the same applications on the same versions from wherever theyrsquore working creating unity faster collaboration across teams and effective information sharingrdquo Hosted IT infrastructures are also continually updated giving staff instant access to new updates applications and technologies as they become available

The next significant challenge firms face after MampA is expanding their IT infrastructure to accommodate an influx of new staff ndash but Redwood says virtual IT solutions let firms expand their IT infrastructure at the flick of a switch

ldquoWith virtual IT firms arenrsquot held back by the size of their servers or the amount of computer power theyrsquove got ndash they simply call their IT provider and ask for an upgrade when previously theyrsquod have been

subject to lengthy and costly IT upgradesrdquo Virtual IT solutions are also easy to budget for

Redwood says ldquoYoursquore not going to be surprised by an increased fixed asset expenditure ndash services like those offered by Nasstar are an operational cost and fixed per user per month through a scalable cost modelrdquo

Geographic distance inhibiting collaboration between merged offices is also a key consideration for firms after MampA but virtual IT solutions solve this problem Redwood says a virtual IT infrastructure can minimise travel through the use of hosted virtual meeting rooms and video technology Staff can use this technology from virtually anywhere which is why it also lends itself well to remote flexible or mobile working set-ups

VIRTUAL WORKPLACERemote working is becoming an increasingly present feature of the legal landscape because of its cost saving and recruitment and retention advantages ndash the majority of firms at the LPM conference 2016 were moving towards a flexible remote or mobile working set-up or already had one

Redwood says virtual IT solutions better enable staff who work remotely ldquoHosted managed desktop solutions for example let staff work with the same applications from any device in the world safely and securelyrdquo

But remote working isnrsquot only about enabling the current workforce itrsquos about attracting future talent Redwood says that millennials donrsquot necessarily want to work as their predecessors did ndash they expect greater flexibility in the workplace which at one level can be achieved by remote working facilitated by a managed desktop

ldquoAnd itrsquos not only about attracting millennialsrdquo he says ldquoSME firms with flexible working set-ups are becoming more attractive to experienced legal talent who may be frustrated by the rigidity of their firmrdquo As a firm expands its workforce in this manner firms with virtual IT solutions reap the lsquodoublersquo cost saving benefits of not having to expand their premises or IT infrastructure accordingly

Some firms are resistant to remote working based on hosted IT services believing they arenrsquot secure ndash but Redwood says that argument ldquocan be put to bedrdquo

ldquoFor an in-house IT team to have the level of security that an organisation like ours can deliver is near impossible financially as well as in terms of the

VIRTUALSANITYNigel Redwood CEO at Nasstar talks to LPM about how managed IT can help SME firms achieve competitive advantage by making them more agile and flexible

LEGAL PRACTICE MANAGEMENT40

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

INTERVIEW

level of systems and technologies they deployrdquo Cybercrime is of course a scary and constantly evolving threat but Redwood points out that virtual IT systems have dedicated teams monitoring these threats evolving cyber defences and changing systems accordingly

ldquoThis capability not only makes [firms] a lot more secure but gives peace of mind in terms of compliancerdquo

ONLINE ADVANTAGE Redwood says virtual IT infrastructures donrsquot just pertain to lsquobig lawrsquo but to SME firms as well ndash perhaps more so

ldquoVirtual IT systems are a way for SME firms to stay competitive against their larger

counterparts and ABSs ndash it gives them a greater ability to expand it lets them adopt more flexible and agile models and is easy to budget forrdquo Firms can also expect virtual IT solutions to enable better alignment of IT resources to business needs enhanced usability with anywhere anytime access and in-built business continuity

But the greatest advantage virtual IT offers SME firms over big law is agility Redwood says ldquoBig IT departments in firms can be slow to react cumbersome and held back by the limitations of hardware infrastructure and security issues ndash all of that is removed with a solution like ours and the customer has access to fast-moving agile ITrdquo LPM

ABOUT THE SPONSOR

Nasstar is a provider of managed IT services and tailor-made cloud hosted solutions ndash delivering innovative secure and agile IT to help clients accomplish their business objectiveswwwnasstarcom

Page 11: LPM September 2016

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LEGAL PRACTICE MANAGEMENT13

SEPTEMBER 2016COLUMNS

Barry DaviesPractice directorDouglas-Jones Mercer wwwdjmlawcouk

BARRY DAVIES PRACTICE DIRECTOR

ROLE MODELS

ABOUT Recent figures show that there are a shade over 130000 people on the roll of solicitors in England and Wales ndash 20 of those undertake an in-house role 80

are classed as employed An enormous number and this is before we consider the significant chunk of employees namely professional managers support staff and those lawyers who are not on the Law Society roll But lots of firms I speak with say lsquowe have too many partnersrsquo or they have reduced the number of lsquochiefsrsquo within their practice as part of their strategic planning

Where are we going with this What will the future firm look like What will its stakeholders (not necessarily shareholders) expect

The two facets that will impact upon the future will undoubtedly be generational attitudes and technology Though advancements in processing power will mean huge growth of AI systems over the next decade I think generational attitudes is the facet thatrsquos most interesting right now

Generation X lawyers (born between the early 1960s to mid-1970s) are often already partners This generation and the baby boomers before them are usually motivated by achievement and money Generation Y lawyers on the other hand (born in the 1980s or 1990s) are looking for something else Fearing that I sound like a textbook ndash specifically Frederick Herzbergrsquos theory of motivation hygiene ndash itrsquos not money thatrsquoll be the key factor in recruiting millennials but other drivers such as networks recognition quality of work and conditions

Developing reward and recognition strategies is

difficult enough for partners ndash so how does a law firm tackle its entire workforce A few years ago I held a discussion with a law firm partner and a question put to me was could the lsquoJohn Lewis modelrsquo fit a law firm This term is not only synonymous with the department store it has become a household phrase

Quite a few law firms have for some time now introduced a corporate partner ndash a limited company ndash as a partner within its practice with the intention of dealing with distribution of profits more efficiently or as part of a bonus pool So itrsquos quite interesting to hear that a highly regarded firm in the south west Stephens Scown has developed a similar model to the John Lewis theme

Whatrsquos different about this example is that a proportion of the firm is owned by a trust for its employees and not just its partners This gives the employees of the firm a greater sense of belonging and the added impetus to do well I am certain that some critics would question the mechanics of such a scheme and perhaps the barriers to entry such as defined profit levels but setting this aside it is a means of boosting staff engagement and eradicating the lsquothem and usrsquo mentality

With complications in all corners of law firm ownership new models will have to be explored to cover aspirations of all involved There could come a time when a crowdfunding option is explored generally and maybe the household name for staff stakeholder mechanisms in law firms will be the Stephens Scown model LPM

LEGAL PRACTICE MANAGEMENT14

SEPTEMBER 2016COLUMNS

In the April issue of LPM Stepien Lakersquos practice director Richard Hill brilliantly spelled out what to look for when trying to spot a lsquowhalersquo or big lsquophishrsquo ndash a situation where an

individual or firm is targeted researched and then duped into sending money to a cyber attacker

But just as awareness is essential so too is preparedness I thought it might be helpful to share some of the practical considerations that will help keep client funds safe (a requirement of principle 10 in the SRA handbook) including some things wersquove done in our firm in response to these very real threats

Perhaps the most feared event among all law firms is the very well-publicised lsquointercepted emailrsquo (dubbed the lsquoFriday fraudrsquo) But would we be surprised by just how many firms lawyers and clients freely provide bank details within the body of text in an email

This is an area where we recently tightened our procedures and introduced an explicit rule all bank details provided by a client especially in any email communication must be verified by a lawyer (by reconfirming those details with a person they know) The lawyer then signs to say that they have checked them

This has produced some unexpected benefits particularly for one client who provided bank details to us within the body of an email for remitting the proceeds of sale for his family business of pound32m When the lawyer contacted him to verify that the bank details were correct the client realised that he had transposed two numbers

Clearly this is a serious education piece not only for those responsible for finance and the lawyers within the firm but externally for the firmrsquos clients

There are a number of practical points to bear in mind when it comes to day-to-day security matters how do your lawyers communicate the client account details to its clients and do you always attempt to obtain client details for the remittance of funds at the start of the transaction for instance

Additional considerations might be when did you last review any bank payment elements in your email disclaimers terms of business and client care letters Is your payment procedure well-defined and documented (not just the finance element but also those relevant to clients and lawyers) And do you use any law firm identification checklists

These important issues should remain on the agenda so that theyrsquore constantly in colleaguesrsquo minds with regard to maintaining safe and efficient practices

There are some excellent resources available from your bank that can help to educate your colleagues and there are so many simple steps we can all take to make people aware of the problem Have you tried sending a few test phishing emails to individuals within the firm for

GLYN MORRIS FINANCE DIRECTOR

ABOUTexample to see how they respond

But what then If you are confronted with the metaphorical warning cry of lsquothar she blowsrsquo how will you and your people react You may need to have created a well-communicated process for dealing with a phishing incident

The 1851 classic Moby Dick tells the story of one manrsquos obsessive quest for revenge on a giant white whale ndash we might want to take just a hint of Ahabrsquos obsession in our approach to tackling the issue of cyber attacks Although if we can avoid the whale in the first place all the better LPM

THAR SHE BLOWS

Glyn MorrisFinance director Higgs amp Sonswwwhiggsandsonscouk

0800 328 0272 | wwwarchivestoragenet

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LEGAL PRACTICE MANAGEMENT16

SEPTEMBER 2016COLUMNSSPONSORED EDITORIAL

DOUG HARGROVE THE TECHNOLOGIST

DISRUPTION TO GO

ABOUT Change isnrsquot anything new itrsquos just another word for evolution But lsquodisruptionrsquo is certainly one of the words of the decade and one that is

usually connected to revolution ndash a significant alteration to the status quo and one that has far more immediate impacts

Disruption is also the go-to word for business commentators ndash especially when it comes to lsquodisruptive techrsquo ndash talking about new business start-ups or innovations Take the very latest craze to hit the headlines ndash Pokeacutemon Go has seemingly gripped the world these last few weeks with stock valuations heading skyward and comments about the app lsquodisruptingrsquo mobile gaming But therersquos nothing disruptive about the game it takes and utilises technology thatrsquos been around for nearly a decade (geolocation and augmented reality) and applies it in a new way Itrsquos that application of technology thatrsquos causing the disruption

Businesses like Uber and Netflix have built compelling business models on the groundwork of technology that is now pervasive (the smartphone and broadband internet respectively) Therersquos a lot here that firms can learn from itrsquos not necessarily about inventing new technology but about finding ways to use existing technology to create a new approach

So what opportunities are there for law firms to disrupt This can be looked at in two ways ndash disruption to the existing law firm business model and disruption to the user experience The first scenario has already been covered at length and is nothing new for the legal market there are already plenty of law firms out there

looking to change the way a law firm delivers its services to its clients and prospects ndash from franchise models to virtualised law firms Disruption to the law firm business model has been an ongoing force ever since the term ABS became associated with legal practices

The second scenario is a different matter It seems legal clients have been patiently waiting for the lsquodisruptive service deliveryrsquo model to come and there is plenty of opportunity out there for firms to position themselves differently with the modern consumer of legal services

Take a brief example of where old (or rather existing) technology can be used to differentiate ndash videoconferencing Itrsquos a fairly ubiquitous piece of technology thanks to the rise of Skype Facetime and the webcam which gives an instant user experience and a one-to-one connection that bridges the remoteness of a phone call and the need to travel for a meeting It doesnrsquot take much of a leap to imagine a service that allows consumers to access a lawyer instantly using this technology (maybe even a concept that combines the franchise model with an Uber-style app ndash connecting clients to the next available expert from a selection of associated law firms) The point is you donrsquot have to invent something new to be a disrupter ndash donrsquot be afraid to take existing technology and repurpose it to gain a competitive advantage

There are plenty of consumers of legal services who are willing to try out a new service or offering in the search for that great new experience ndash and for those law firms prepared to take the risk and disrupt there really is an opportunity to catch lsquoem all LPM

Advanced LegalRevolutionary solutions for legal services Contact Doug on 01476 573 718wwwadvanced-legalcouk

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LEGAL PRACTICE MANAGEMENT18

SEPTEMBER 2016COLUMNS

JANINE PARKER THE BROKER

WHAT PRICE EXCLUSIVITY

Itrsquos that wonderful time of year when the annual bombardment of brokers begins on your never-silent telephones All of them can ldquocarry out a full market exerciserdquo for you that will of course save you money

But whatrsquos the reality The marketplace is still murky and as a profession we donrsquot help ourselves by keeping it opaque So letrsquos objectively consider many of the claims brokers make attempt to clarify the true mechanics behind the market and consider how to best utilise it for the benefit of your firm

Since 2000 and the demise of the Solicitors Indemnity Fund competition for solicitors professional indemnity has increased This hasnrsquot always been generated through the number of insurers but the ever-increasing number of brokers who purport to be experts in this very niche area of insurance This has increased pressure on insurers to lower prices (a good thing for clients up to a certain point) but this pressure combined with some extreme economic factors has contributed to many insurers withdrawing from the market over the past decade

Competition is good for consumers and it encourages innovation to make sure that brokers and insurers can differentiate themselves by developing their product offering

Some brokers organise lsquoexclusiversquo arrangements with insurers often segmented by the number of partners within the firm ndash which is a very artificial way of dividing up the profession But this is the marketplace wersquore in today and itrsquos worth looking a little closer at these lsquoexclusivesrsquo

All the direct access points are listed in the Law Society buyer guide and in practice itrsquos only a handful of brokers who actually hold the exclusive with direct access to the underwriters It is essential to note that these exclusive agreements are not always lsquotiedrsquo arrangements The broker is not bound to place all their business with their one exclusive insurer and itrsquos often the case that those brokers who hold the exclusive arrangement also enjoy strong relationships with the open market insurers

To increase distribution brokers who hold exclusive arrangements will offer access to other brokers who wish to take advantage of the exclusive products available These brokers donrsquot have their own facilities There are many commercial reasons for opening an exclusive to other brokers but itrsquos important to note that the extra broker in the chain will dilute your relationship with the placing broker and ultimately your insurer Marketing materials can often be unclear as access to exclusives is readily used ndash but in reality these brokers will be approaching another broker to do this

Often law firms will be unaware of the number of brokers in the chain and will unwittingly be paying additional brokerage and fees unnecessarily Direct access allows for better communication between your firm and insurers which can often lead to more competitive pricing Removing a broker from the chain can lead to the process of claims handling being more efficient and effective as there are less obstacles in the chain of communication

In summary no one broker has direct access to every insurer and it is possible to approach more than one broker and not be at risk of flooding the market If using more than one broker be clear who you would like them to approach and be aware whether they have to go through another broker to ultimately reach the insurer LPM

ABOUT

SPONSORED EDITORIAL

ParagonBetter broking for legalContact Janine on 020 7280 8200wwwparagonbrokerscom

LPMLEGAL PRACTICE MANAGEMENT

SUPPLEMENT SEPTEMBER 2016

BUSINESS INFORMATION FOR EVERYONE IN PRACTICE MANAGEMENT

LPM INSIGHTS

Sponsored by

How do SME law firm management leaders see the future

LEGAL PRACTICE MANAGEMENT20

SEPTEMBER 2016LPM INSIGHTS

ALL CHANGE

22WHATrsquoS NEXT We analyse the 2016 LPM conference polling data

2 1 COMMENT Accesspointrsquos Richard Roebuck on legalrsquos increasing digital dangers

Change and transformation are words that strike fear into the most hardened of legal management hearts because they are hard to do and even

harder to make stick But change must happen inside todayrsquos SME law firms to make sure they stay in business in tomorrowrsquos world

At this yearrsquos Legal Practice Management conference in London we polled our audience of law firm management delegates on a range of topics Some questions wersquove been asking since our first LPM conference back in the misty era of 2012 Much has changed in the world since then (new UK governments drones are now lsquoa thingrsquo Donald Trump) but legal not so much The rise of the ABS has been slow (though impactful) and the recession has for many businesses faded into a distant memory compared to the Brexit debate

But SME law firms rightly smell a real need for change in the wind ndash and perhaps though they seem to find it hard to name that change the clues are legion Letrsquos find some

LPM London 2016 delegates named the greatest hurdles to their firmsrsquo growth or further success as lsquoacquiring high-quality staffrsquo and the lsquoinability to create change within the firmrsquo Might the solution to one lie in the other Great talent wants to flock to fresh and vigorous businesses and younger legal eagles are increasingly shy of throwing their lots in with the fusty world of partnership Law firm leaders must look at how their businesses are run and who runs them and how people work if they are to attract great people ndash and in doing so they will create the change they seek

Herersquos another 52 of delegates named lsquoclient pressures on costrsquo the factor thatrsquos having the biggest impact on the SME legal market ndash but when asked how important price is when winning business 67 said itrsquos just lsquoone of a range of important factorsrsquo while 21 said itrsquos lsquonot as important as other things such as relationshipsrsquo This is a disparity I canrsquot quite understand but it doesnrsquot sound like the SME legal market truly gets the shift thatrsquos happening on the client side and how much change needs to happen inside firms to meet this challenge

Read on and come to your own conclusions but I think the clues are now becoming obvious I hope your firm sees them too LPM

Rupert Collins-White editor-in-chiefLPMmag | rupertwlsncouk

You donrsquot as the song goes need to be a weatherman to know which way the wind is blowing in the legal market ndash but just because the clues are there doesnrsquot mean you can be complacent about acting on them

CONTENTS

FEATURES

LEGAL PRACTICE MANAGEMENT21

SEPTEMBER 2016LPM INSIGHTS

MORE TECHMORE SECURITY

INTRODUCTION TO THE RESEARCH FROM OUR SPONSOR RICHARD ROEBUCK MANAGING DIRECTOR ACCESSPOINT

After a recent period of uncertainty it would now seem that most firms are confident about their future especially in light of Brexit Whatrsquos also certain is

that most firms are very conscious that to compete they will need to change and adapt themselves for the challenges ahead

With growing concerns about the lack of high-quality people available and what appears to be a reliance on quality individuals driving more lucrative fee-earning work is it time for a gear change

Perhaps the dawn of high-volume low-margin fixed fee work which many firms feared has now arrived As always with change there are challenges to be faced but for those clever early adopters there lies opportunity Making light of the more process-driven tasks and finding more effective efficient ways of completion to deliver client-facing benefits seems key to the wider future of the fixed fee legal landscape

With the growing acceptance of cloud technology and the increasing introduction of new software applications and solutions the legal world has moved on at an improved pace this past couple of years And the world is now clearly keen for more ndash to satisfy its desire for a more accessible and mobile working environment What is key for this trend is that the lsquoquality of the deliverablersquo has an ongoing programme of improvement that benefits both the firm and its clients

As progress pulls us forward there will always be elements arrayed against us Alongside the opportunities hiding in the polling from LPM this year therersquos also a sense of fear and concern around possibly the biggest threat to risk and security there is right now ndash the dark byproduct of technological success cybercrime

Cybercrime is fast growing with ever more complex attacks making headlines It is now one of the most common criminal offences in the UK An increasing number of individuals are exploiting the speed and anonymity of the internet to commit a wide range of criminal activities having no conscience and knowing no borders

It isnrsquot our fault websites get hacked but poor internet safety habits can put us at risk Reusing passwords or using weak passwords make us easy targets for identity theft Remembering multiple passwords can be a pain but there are web services and associated applications that can help such as two factor authentication quality mail management systems URL threat protection and mail encryption

For many firms the biggest threats tend to be by way of the ever-open door into our networks and devices ndash email

Our eagerness to respond almost instantly to emails throughout what will be for most an already pressured day is perhaps the dominant daily activity to foster an unwanted lapse in security In the past 18 months alone I have seen three firms that were truly caught out ndash some with the potential for significant financial penalty by opening email attachments The most common lsquogotcharsquo is an email that appears to have come from the office scanning platform whereby the email address has been cleverly spoofed to appear legitimate (for example downstairscopiermyfirmdomaincouk) There are so many existing and newly circulating threats of this calibre and type that even the most aggressive of filtering systems struggle to keep up

Do you know the name(s) of your copiers and the associated email addresses Do you stop to think before opening the innocuous Word attachment ldquoDoesnrsquot our scanner usually send PDF files Why has a covering note not been included with the attachmentrdquo Stop think and call for advice

Another infamous scam is the spoofing of email addresses of key people within your firm ndash for example an email to the head of accounts appears to be from the senior partner ldquoPlease send pound17000 to account X at your earliest convenience and confirm once processedrdquo it says Stop ndash is this your agreed process

As the demand grows and we extend our reach out into the online world so cybercrime advances ever closer seeking unauthorised access through our front door Quite clearly online is the future but we need to embrace it with the necessary skill sets and processes in place for our convenience wellbeing and prosperity LPM

There are so many existing and newly circulating threats of this calibre and type that even the most aggressive of filtering systems struggle to keep up

Accesspoint are independent legal IT specialists who consult on a variety of information technology-related issues offering the best in IT solutions to help firms work more effectively

Contact Richard and the team on 0203 189 2645wwwtheaccesspointcouk

LEGAL PRACTICE MANAGEMENT22

SEPTEMBER 2016LPM INSIGHTS

SME law firms are in a battle for survival Whether they know it or not they have huge challenges to face in the next few years ndash around succession planning technology replacing lawyers and being

used by competitors to attain a competitive edge and catering to clients who increasingly want cost predictability transparency and availability

These market pressures were addressed at the LPM conference in May 2016 which was attended by over 100 delegates all SME legal management leaders The delegates were polled on the day about what they thought of the pressures facing them and how theyrsquore planning to overcome them ndash and their answers provide valuable insight into the SME legal market

The polling results show that LPM conference delegates were aware of the severity of the challenges they face Three-quarters of legal management leaders we polled at the 2016 LPM conference thought that the challenges theyrsquoll face in the next five to 10 years will be lsquomorersquo or lsquomuch morersquo serious than in past years And 58 of delegates thought that the challenges in the next year to two years will be lsquomore serious than in past yearsrsquo

How they will face these challenges depends at least partly on attitude ndash whether they believe they can win or will eventually lose the war Fortunately most LPM conference delegates were optimistic about their firmsrsquo futures - 81 were either lsquocautiouslyrsquo or lsquoveryrsquo optimistic about their place in the legal market of the future

This doesnrsquot necessarily suggest that theyrsquore confident in the market overall particularly after the market instability brought by Brexit Legal management leaders might believe their firm is the only one thatrsquoll survive due to expertise in a particular area or niche In any case it indicates market confidence and a confidence in the ability of their firm to compete and succeed

But is this optimism misplaced in a market where the future is increasingly uncertain and competitive Are firms really ready for change on a huge scale as their confidence might suggest What are the issues currently keeping SME legal leaders awake at night

In this report LPM shines a light on the SME legal market through the eyes of our legal management leader audience ndash those driving their firms through an uncertain new world

WHATrsquoS NEXTChange is on the agenda for LPM firms but how to address the biggest challenges and which ones to face first is a tough call finds Patrick Wingrove

More serious than in past yearsMuch more serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch less serious than in past years

51

14

8

3

24

More serious than in past yearsMuch more serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch less serious than in past years

How would you rate the challenges your firm faces in the next five to 10 years

More serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch more serious than in past yearsMuch less serious than in past years

58

17

6

0

19

More serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch more serious than in past yearsMuch less serious than in past years

How would you rate the challenges your firm faces in the next year to two years

What is the greatest hurdle to your firmrsquos growth or further success

What is the greatest hurdle to your firmrsquos growth or further success

LEGAL PRACTICE MANAGEMENT23

SEPTEMBER 2016LPM INSIGHTS

TIMES THEY ARE A CHANGINrsquo The overriding theme of the 2016 LPM conference was change ndash how firms can implement it the drivers behind it and the various blockers to it But the first step to change is gauging which factors will have the biggest impact on the legal market Just over half of legal management leaders we polled thought client pressures on cost like demanding fixed fees will have the biggest impact while just over a quarter thought it will be competitors attaining a market advantage using technology

How quickly do firms need to respond to these oncoming market pressures Well 86 of LPM conference delegates thought that change needs to happen in their firms within the next two to five years But 14 said that their firm doesnrsquot need to change significantly perhaps because theyrsquove beaten the rest to the punch their legal business is somehow immune to new pressures ndash or they have their heads in the sand

Legal has traditionally been resistant to change and itrsquos not surprising that some firms still are says Sean Stuttaford COO at Essex firm Thompson Smith and Puxon (TSP) and 2016 LPM conference delegate ldquoThere are still firms out there where partners donrsquot have computers on their desks ndash theyrsquore stuck in their ways and just point blank refuse to

52 26 5 12 5

develop their business for the futurerdquoBut legal management leaders willing to implement

change may still find it difficult as 60 of LPM conference delegates polled thought that lsquochange isnrsquot really understood at their firmrsquo

GROWING PAINSJust over a quarter of LPM conference delegates also thought that an inability to create change within their firm would be the greatest hurdle to the businessrsquos growth or further success ndash though Stuttaford at TSP suggests voters might have blamed the traditional partnership business model for the same reason

But acquiring high-quality staff was considered to be the greatest hurdle for growth or success by 36 of delegates Rebecca Patterson HR manager at Kent firm Thackray Williams and 2016 LPM conference delegate says that she agrees with this result ldquoOur firm has a particularly tough time finding quality support staff ndash we could perhaps stand to invest more in competency frameworks and performance management and training opportunities to aid recruitment and retentionrdquo

William Robins operations director at lsquodistributedrsquo firm Keystone Law and a 2016 LPM conference speaker says

12 36 27 13 12

Lack of fundsAcquiring high-quality staffInability to create change within the firmTechnologyThe traditional partnership business model

Out of these which factor is having the biggest impact on the SME legal market

Client pressures on cost (eg fixed fees)Technology creating advantage for competitorsConsolidationDifficulty in finding routes to growth (eg funding)Something else

What is the greatest hurdle to your firmrsquos growth or further success

LEGAL PRACTICE MANAGEMENT24

SEPTEMBER 2016LPM INSIGHTS

offering a more flexible remote or mobile working set-up for everyone in a firm is an excellent way to attract talent (Keystonersquos model of course is founded on remote working) Perhaps the majority of legal management leaders polled at the 2016 LPM conference agree since their firms have either adopted a flexible remote or mobile working set-up are planning to adopt one or are considering adopting one ndash though there are other advantages to remote working such as reducing overheads In any case the results indicate that the SME legal working landscape is becoming considerably more flexible

But remote working doesnrsquot work for everyone Mary Mocklow CEO at West Midlands firm Talbots Law and 2016 LPM conference delegate says that their high-street set-up wouldnrsquot allow it ldquoThe majority of our staff are client-facing and need to be present at the office ndash and while there are other staff at Talbots that might benefit from remote working you canrsquot have a policy for one and not for allrdquo

CYBER THREATSTechnology was clearly a significant concern for legal management leaders who attended the 2016 LPM conference Patterson at Thackray Williams says some firms have had a hard time finding software that caters to their needs as a business and an LPM conference poll seems to back this up just under half of legal management leaders polled at the conference thought project teams should write law firm software indicating a desire for cross-department input into its creation But the poll also indicates that legal software providers have to a large extent been meeting their clientsrsquo needs

The rising threat of cybercrime was also a clear concern for LPM conference delegates ndash 92 of SME legal management leaders said their firms have cyber risk on their management meeting agendas Stuttaford at TSP says ldquoItrsquos something firms need to be constantly aware of and take precautions against not just by purchasing good firewall and antivirus software but by educating staff about password discipline authentication processes and suchrdquo

32 18 14 33 3

Is cyber risk on your management meeting agenda

92

5 3

Yes No Dont know

Is your firm moving to a more flexible workingremote or mobile working set-up for everyone in it

YesNoConsidering itWe already do itDont know

LEGAL PRACTICE MANAGEMENT25

SEPTEMBER 2016LPM INSIGHTS

PRESSURES AND PRICINGClient pressures on cost was also a major concern for legal management leaders polled at the conference so it may not be surprising that just over half of them said 50 or more of their firmrsquos work is some form of fixed fee This doesnrsquot necessarily suggest that the other half arenrsquot open to the concept of fixed fee ndash Mocklow at Talbots points out that fixed fees work for certain types of work ldquoHigh-street firms like Talbots can benefit greatly from fixed fees which is why 75 of our work is fixed fee but itrsquos more difficult to apply to firms that specialise in something like admiralty lawrdquo

The industry seems to think that the value of service has been lost to the price obsession in some areas but not in others ndash and while pricing is clearly a vital issue for SME firms 88 of legal management leaders polled at the LPM conference thought that itrsquos lsquoone of a range of important factorsrsquo or lsquonot as important as other thingsrsquo Patterson at Thackray Williams says that maintaining a good relationship with clients is often more important than pricing though pricing can be a means to achieving client satisfaction ldquoIt also depends on the client ndash in something like conveyancing first-time buyers might be looking for fixed fees or the cheapest price but for commercial clients that may not be as important as reputation or relationshiprdquo

TREASURE MAPPINGLegal process mapping often used by lsquobig lawrsquo and making inroads into SME legal could potentially make SME firms a great deal more efficient and therefore more competitive Two-thirds of legal management leaders polled had heard of process mapping and 79 thought that it is relevant to the business of law Stuttaford at TSP says he agrees ldquoFirms should look at their processes learn from them and figure out how to improve those processes ndash this question really made us look at what TSP has done so far in terms of what legal processes wersquove mapped and whenrdquo

To sum up LPM conference delegates were aware of the challenges that face them but were mostly optimistic nonetheless This may be because they know they need to change and in spite of the fact that change isnrsquot really understood at their firms are planning to mend their ways to meet future market pressures ndash generally putting the client first while keeping talent and technology high on their agendas LPM

Are aware of this thing called legal process mapping

66

34

Has the value of service been lost to the price obsession

23

23

54

Yes No Depends on the service Dont know

Yes No

How important is price in winning business

8

4

67

21

CriticalMore important than almost all factorsIts one of a range of important factorsNot as important as other things such as relationshipsIts one of the less important things in reality

What is the greatest hurdle to your firmrsquos Are aware of this thing called legal process mapping

LEGAL PRACTICE MANAGEMENT27

SEPTEMBER 2016COLUMNSSPONSORED EDITORIAL

Welcome back LPM readers ndash the new school term has started summer is (pretty much) over and the UK is back in full throttle after the summer break And what a break itrsquos been at

File Queen HQ (wersquove taken the time to get our clients up and running with augustprojects as well as started our new Instagram feed filequeenadds)

With the start of the new learning year wersquore focused on the education of you lovely LPM readers ndash with our attention turning back to the General Data Protection Regulation You may remember that in our last LPM article we ran through the 12 steps to tackle the GDPR helped by the awesome people at the Information Commissionerrsquos Office ndash wersquove provided a link to their 12-step resource via our website wwwarchivestoragenetnewsgdpr

Over the next three columns wersquoll be taking these steps and breaking them down for you ndash starting with step one awareness The File Queen (myself) and the team at ADDS have been promoting this step as the most important for all legal practices

ldquoWhyrdquo we hear you holler Well this step is the all-important life raft that unites your practice and team members to help you in the GDPR fight for survival (dramatic I know)

Getting the team on board ndash this buy-in needs to include all ranks of staff ndash from the managing partners to your suppliers But how do you do this Well here are some File Queen tips for when we at ADDS are rolling out projects

Lunch and learn ndash with a register People love to eat and be social so get your legal business to book in a couple of lunch and learn sessions Donrsquot limit this to one date ndash you must run at least two or three so people have the option of which dates to attend Make sure you make a register for those that actually turn up (we all know a calendar acceptance doesnrsquot mean theyrsquoll actually appear) This will allow you to chase down the members of the team you need to get on board for the next one

Have some decent sandwiches nibbles and soft drinks and give the team an overview of the GDPR Run through the 12 steps and make sure you educate them on why everything is so important (make sure you mention the increased fines and audits) During this time let the team know that there are several steps along the way that yoursquoll need their help and support for and which you wonrsquot be able to achieve on your own Tell them that the businessrsquos reputation and brand is on the line and that you need everyone on board to lend a helping hand and spread the word

Another great File Queen tip at this stage is also to get some additional funding from the practice manager for a wine and quiz night at the end of the lunch and learn periods This can be part of your social gathering on a Friday straight after work ndash with some more nibbles and wine Assign people to teams and have a GDPR quiz The winning team gets an award and everyone has fun and learns at the same time Follow our twitter feed as wersquoll be tweeting some great questions to ask thefilequeen GDPRQUIZ

We know itrsquos a lot to organise but there are only four months left in 2016 and GDPR practices must be in place by 25 May 2018 And believe me when you have to roll out rather hard core legislation you have to make it fun and interactive to get people on board LPM

ABOUT

NATASHA RAWLEY THE FILE QUEEN

EDUCATING YOUR PROS

ADDSSaving firms from paper hellContact Natasha on0800 328 0272wwwarchivestoragenet

LEGAL PRACTICE MANAGEMENT28

SEPTEMBER 2016FEATURES

28

Patrick Wingrove talks to the founders of Proelium Law about their work providing legal advice in high-risk environments and conflict zones and the challenges of setting up shop in a new and risky area of law

Legal commandosProelium

Compared to the day-to-day lives of Proelium Law founders and partners Richard Stephens (above left) and Adrian Powell (centre) the average lawyer leads a pretty humdrum life Though UK-based the

firm has a strong international focus ndash Stephens and Powell regularly travel to provide legal and business advice to companies and individuals in high-risk professions or working in hazardous environments across the globe including conflict zones in Iraq Syria and Afghanistan Powell says that itrsquos a challenging but exciting area of law to be in and that ldquono two days are ever the samerdquo

The firm was established as an ABS in November 2015 allowing Powell and Stephens to operate as partners although Stephens isnrsquot a lawyer Powell qualified as a solicitor in 2004 after spending 11 years of his career in the British army and post-2006 worked on various high-risk projects around the world ndash giving him the inspiration for Proelium He says ldquoThe idea came to me in Baghdad in 2009 while working for a private security company as a legal adviser ndash I thought lsquoWhy isnrsquot there a firm doing thisrsquo But I soon realised that I needed someone on the ground who wasnrsquot a lawyer to help make it happenrdquo

That person was Stephens He previously served in the Royal Marines worked as a Whitehall-based strategic planner for the UK government and commanded a special operations regiment (which is why we couldnrsquot show you his face but itrsquos a nice issue of LPM) He now works primarily on the business development side of Proelium ldquoJoining Adrian who Irsquod previously worked with on projects around the

LAW FIRM PROFILE

LEGAL PRACTICE MANAGEMENT29

SEPTEMBER 2016FEATURES

world at a firm meant I could do fascinating and important work with the credibility that being a partner in a regulated business providesrdquo he says

Their work has certainly been interesting Proelium has cast its net far within the niche high-risk sector ndash advising UK-based service providers on the complexities of working in hostile environments conducting business and human rights due diligence and ensuring anti-money laundering counter terrorist-financing and anti-bribery compliance for companies intending to run in high-risk areas or conflict zones to name a few Recently theyrsquove also been working on developing capability for national intelligence organisations overseas ndash but for fear of being jailed for treason Stephens and Powell didnrsquot elaborate hellip

Powell says that the challenges companies face in these areas are numerous ldquoTherersquos a real technical knowledge in understanding how organisations physically work overseas These companies are good at what they do but that doesnrsquot necessarily translate into being business-savvy when it comes to operating in frontier markets ndash thatrsquos where Proelium adds valuerdquo For example after a client was recently exposed on an arms deal they were able to quickly discern liability and ensure that all necessary agencies and departments were appropriately informed

Powell and Stephens joke about how theyrsquore the number-one firm in their sector ndash admitting that to their knowledge theyrsquore the only firm that specialises in this area of law They added that itrsquos an untapped niche in which Proelium will be a pioneering force but which has also recently come onto the radar of a larger firm Theyrsquore alluding of course to Proeliumrsquos recent venture with Harrison Clark Rickerbys ndash a joining that combines Proeliumrsquos experience working in high-risk jurisdictions with the manpower and existing defence and security expertise of

HCR Powell says ldquoWhat they donrsquot have is our connections and our experience They like the idea of the sector because they see it as an interesting area and the partnership will allow us to offer a wealth of different legal services while letting us focus on what we do bestrdquo

As part of their ambitions for Proelium Powell and Stephens are keen to train a new generation of lawyers whorsquoll specialise in the high-risk sector ldquoWe have confidence in what the younger generation has to offer and we want them in our industry to continue our work in this relatively untapped areardquo says Powell Stephens adds that itrsquos also a matter of succession planning ldquoWe want the firm to operate long into the future but we donrsquot necessarily want to be running it ourselves for the next 20 yearsrdquo Proelium currently employs two interns as part of this commitment including University of Surrey law student Ruby Jamieson (pictured) She says ldquoWorking [at Proelium] has given me loads of insight already ndash itrsquos very niche

very new and Irsquove really enjoyed helping develop the business I feel that itrsquoll open a lot of doors when I graduaterdquo

In terms of expansion Proelium has recently opened a new office in the City of London Powell says that his home was originally the firmrsquos practising address but a large portion of their client-base is in London ldquoand we couldnrsquot keep having our meetings in coffee shopsrdquo

But Powell and Stephens are firm believers in the concept of remote working which works particularly well for their business

ldquoMost of our clients are either in London or outside the EU so Irsquom always away but all my phone calls are redirected from the new office to my mobile so I can keep in touch with clients whether Irsquom in Dubai or Baghdadrdquo says Stephens Powell adds that he feels remote working has the added benefit of keeping staff happy by letting them work from home which he says certainly makes him more productive as a fee earner

Proelium isnrsquot looking to expand into areas it has no interest in like family law but theyrsquore taking a keen interest in the emerging area of cyber law and are considering taking steps into that world ldquoLike high-risk law no onersquos really wrapped their arms around cyber law yet Therersquos cyber law in the US but it doesnrsquot exist per se in the UK except in terms of data protectionrdquo

When asked what advice they could give to SME firms based on their unique experiences in their sector Powell and Stephens said firms should know the areas of law they practise inside and out Powell says ldquoWersquore concerned with being experts in our field ndash a lot of our clients have peoplersquos lives in their hands and are not in the business of nonsense which is why they come to us We give sound researched legal advice based on experience and if we donrsquot know something we send the client to someone who doesrdquo LPM

ldquoCompanies are good at what they do but that doesnrsquot necessarily translate into being business-savvy when it comes to operating in frontier markets ndash thatrsquos where Proelium adds valuerdquo

Proelium

Two fee earners four total staff

Offices City of London Wirral Cheltenham

Specialisms International criminal commercial and conflict law due diligence sensitive investigations

LPM FACT FILE

ldquod2u is the UKrsquos number one outsourced transcription service for medical and legal professionals and highly competitive all over the world We pride ourselves on saving our clients time and money as well as offering state-of-the-art security and a first-rate servicerdquo Daryl Leigh CEO dictate2us

LPM magazine has agreed a special deal for its readers with dictate2us ndash 5 off your monthly

transcription bill for one year if you sign up through the dedicated LPM link or call and quote LPM2016 when signing up You can trial the service for free before committing

CUT COSTS INCREASE EFFICIENCYAll firms could benefit from outsourcing transcription to dictate2us ndash but even more so with our LPM deal 5 off your first year

wwwdictate2uscomlpm

Use d2u and enjoy the benefits ofbull Fast turnaround timesbull Secure and confidential servicebull Secetarial cost reductions of up to 60bull Guaranteed 985 minimum accuracybull iPhone Android and Blackberry apps with one-hour turnaroundbull 100 output - only pay for the time you talkbull Free no obligation trial

This special LPM magazine reader deal only relates to customers that execute an agreement for a minimum term of 12 months with a minimum monthly commitment of 500 minutes LPM magazine sought two law firm references for dictate2us to verify its claims for quality and delivery The 5 deal only applies to the first paying year the customer is with dictate2us LPM magazine is not responsible or liable in any way for work done by dictate2us and is an advertising referrer only

d u2 dic t a t e 2 u s

SPECIAL READER OFFER

The d2u Transcriber app is free to download from Apple and Android app stores and BlackBerry App World

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YOUR FIRMrsquoS FIRST YEAR OF

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WHEN CALLING

LPMLEGAL PRACTICE MANAGEMENT

LPMLEGAL PRACTICE MANAGEMENT

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LEGAL PRACTICE MANAGEMENT31

SEPTEMBER 2016FEATURES

Patrick Wingrove speaks to management leaders from SME and top 100 law firms that have recently achieved significant growth to find out how to go from acorn to oak tree

FROM MINNOW TO

For many SME firms growth is the goal ndash but it doesnrsquot have to happen in the ways that many have scaled in the past The era of organic slow quiet steady partnership development over decades is

increasingly at odds with a fast-paced digital world Strategies for growth in the legal market are now closer than ever to the rest of the business world ndash and any size firm can learn how to do it

Big or small there are similar tools in the box for making growth happen and similar challenges Lessons abound but some of the best can be taken from those firms not far outside the famous lsquotop 100rsquo legal businesses in the land ndash those that have already grown up and now have the top tier in their sights There are also lessons to draw from smaller but rapidly scaling law firms

There are many growth strategies for organic and acquisitive growth ndash and no easy answer for which is right for your firm To shine a light on the subject wersquove spoken both to SME and top 100 firms about growth and how to do it (and importantly how not to do it)

MAMMOTH

LEGAL PRACTICE MANAGEMENT32

SEPTEMBER 2016FEATURES

MODELS OF GROWTH According to the Lawyer the two fastest growing firms in the top 200 this year are Midlands-based Knights and lsquodistributedrsquo firm Keystone Law ndash currently placed 119 and 122 in the 2015 UK 200 rankings but whose revenue will now put them well inside the 2016 top 100 (due for release October 2016) Both attribute their growth to non-traditional business models ndash and very different non-traditional models at that

Knights corporatised in 2014 to remove the barriers from its decision making processes which CEO David Beech says has been the key to its growth ldquoEquity partnerships donrsquot grow particularly quickly because itrsquos hard to achieve consensus and make decisions that enable fundamental or rapid growth among equity partnersrdquo

Knights acquired Oxford-based Darbys earlier this year ndash a move largely behind the revenue increase that will put them in the top 100 ndash and completed the transition inside three months which Beech says would have been next to impossible under their old business structure ldquoNot only was a quick turnaround good for the books it saved significant time and money that could be invested elsewhere in the businessrdquo he says

Top 100 firm Simpson Millar is one step

ahead of Knights The firm broke the glass ceiling to become a top 100 firm in 2015 and like Knights the firm attributes its growing success to corporatisation ndash but in a different manner

It sought to be and was eventually acquired by PLC Fairpoint Group in 2014 Simpson Millar continues to run as an LLP under the same management team and existing trading brands but as a business unit within Fairpoint

Managing partner Peter Watson says that one of the key reasons to pursue this particular growth strategy was to provide an injection of capital for MampA ldquoWe completed the sizeable acquisition of Colemans last year for example which we were only able to do with considerable investment from Fairpointrdquo

Being part of a PLC has also given the firm access to strong MampA and project management capabilities ldquoAcquiring Colemans doubled the business overnight ndash for something like that you need strong MampA experience and access to that team within Fairpoint was crucial in getting the deal across the linerdquo says Watson Simpson Millar also built a strong digital strategy launched new products and focused on pricing ldquoCall it fixed fees or packaged fees the point of it was to say to consumers

Square One Law

Revenue pound5m

31 fee earners 53 total staff

Offices Newcastle-upon-Tyne

Specialisms Commercial corporate property employment EU and competition law finance litigation private client

LPM FACT FILE

Knights

Revenue pound40m (year end 2017)

375 fee earners 450 total staff

Offices Chester Cheltenham Newcastle-under-Lyme Derby Oxford Hale

Specialisms Full service firm

LPM FACT FILE

LEGAL PRACTICE MANAGEMENT33

SEPTEMBER 2016FEATURES

lsquoWith us you know exactly what yoursquoll get and how much itrsquoll costrsquordquo

PEOPLE PLEASERSThe ability to implement change has also been an important part of delivering a growth strategy This isnrsquot necessarily surprising ndash polling at the 2016 Legal Practice Management conference showed that legal business managers thought it was one of the greatest hurdles to a firmrsquos growth or success only topped by acquiring high-quality staff In Knightsrsquo case the two challenges were addressed together Beech says Knightsrsquo corporate rather than partnership structure also allows it to recruit talented people without having to deal with the inherent politics of an equity partnership

ldquoAcquiring the best talent has been a central part of our growth strategy ndash if a candidate can help the business through expertise or client following we can just recruit themrdquo he added

But a successful growth strategy incorporating talent isnrsquot just about recruiting quickly as we analysed in the July 2016 issue of LPM ndash itrsquos about recruiting well Firms also need to make themselves an attractive prospect for legal talent in order to grow

William Robins operations director at Keystone Law says his firmrsquos lsquodispersedrsquo model allows it to do that by offering new fee earners the chance to work remotely with less supervision ldquoWersquore typically hiring about a lawyer a week ndash bringing their expertise fee-earning capability and client following with them ndash and that is the core part of our growth strategyrdquo The firm has buttressed its recruitment capability by hiring a director of recruitment to focus almost entirely on lawyer enrolment (recruiting talent to recruit talent ndash neat)

Though the distributed model may not be for everyone says Robins implementing some form of flexible mobile or remote working should be part of any firmrsquos growth strategy because it allows firms to increase their fee-earning capability without accruing fixed overheads such as office premises

And there are other ways to be talent-attractive As a core part of its growth strategy Newcastle-based firm Square One Law ndash which achieved 30 growth in the

last financial year ndash has pledged to create a supportive and inspirational team environment offering high-calibre work to attract the best talent Ian Gilthorpe senior partner at Square One says ldquoGood people want to be inspired to be valued for what they do and feel as though theyrsquore making a contribution The key is to engage with all your staff to facilitate a culture where staff feel happy at work work for each other trust each other and ensure that they see the value in what they do ndash if you do that more talent will comerdquo

He added that itrsquos important for

recruitment to convey staff satisfaction to the outside world which Square One has achieved by including staff video-testimonials on its website

But recruiting is only half of an effective people strategy ndash the other is retention Simpson Millar has attempted to create an environment that its talented staff wonrsquot want to leave Says Watson ldquoToo many firms worry about what will happen if their rainmaker goes somewhere else and takes clients with them ndash so they put the shackles on make them feel unhappy and make it so that they canrsquot realise their full potentialrdquo Creating such an environment makes firms an attractive target for lateral hires when they should be building a place people want to join

PRACTICE AREASSME legal businesses donrsquot necessarily need to change their business models completely to achieve the same growth as

Thorntons

Revenue pound20m

209 fee earners 430 total staff

Offices Dundee Edinburgh St Andrews Perth Cupcar Kirkcaldy Anstruther Arbroath Montrose Forfar

Specialisms Full service firm

Keystone

Revenue pound202m

198 fee earners 230 total staff

Offices London Bristol Isle of Man Australia

Specialisms Corporate and commercial dispute resolution property

LPM FACT FILE

LPM FACT FILE

Equity partnerships donrsquot grow particularly quickly because itrsquos hard to achieve consensus and make decisions that enable fundamental or rapid growth among equity partners David Beech CEO Knights

Simpson Millar

Revenue pound316m

322 fee earners 539 total staff

Offices Birmingham Bristol Cardiff Cheadle Hulme Gateshead Kingston-upon-Thames Lancaster Leeds Park Place Leeds St Pauls Street (head office) London Manchester Newcastle

Specialisms Full service firm

LPM FACT FILE

LEGAL PRACTICE MANAGEMENT34

SEPTEMBER 2016FEATURES

our examples but removing blockers from decision-making making themselves more attractive to talent and finding the right funding for growth are increasingly important and the partnership structure may not enable it

But of course that means asking some turkeys to vote in a Yuletide election Fortunately there are other ways to achieve impressive growth mainly investment andor expansion into new geographic or practice areas

Watson says that Simpson Millar wouldnrsquot have been an attractive prospect to Fairpoint had the firm not spent time growing organically by expanding into new areas of law

ldquoWe went from being a predominantly trade union PI firm to having a broad base of 16 types of work ndash with strong heads in charge of each committed to driving growth in their departments ndash which gave us a large boost in revenuerdquo The firm achieved this through small acquisitions of other firms that had expertise in particularly lucrative areas of law

But firms shouldnrsquot just look at expanding in lucrative areas ndash they should focus on areas where their reputations deliver an advantage Scotlandrsquos Thorntons for example ndash which last year leapt from 134 to 108 in the 2015 UK 200 rankings ndash invested in six departments as part of its growth strategy

Thorntons joint managing partner Scott Milne says ldquoWe didnrsquot exclude other areas but we saw that these areas were profitable and that more importantly we had considerable expertise in them ndash we also considered that these are areas that are unlikely to be affected by future economic downturnrdquo This included investing in niche areas of law where the firm has a geographic competitive advantage ldquoWersquore lucky to be surrounded by some of the best farmland in the UK ndash wersquore well known for our expertise in rural business law which is why we invested heavily in itrdquo

ORGANIC V ACQUISITIONIn several ways choosing an effective growth strategy very much boils down to MampA versus organic growth ndash every business model talent or area expansion strategy appears to revolve around one or both But which is the best to achieve the kind of growth thatrsquoll propel firms to a lsquohockey stickrsquo on their revenue forecasts The short answer is it depends on whatrsquos best for a firm at a given time It either

needs to fit the firm ndash or the firm needs to change to fit the goal

Beech says that acquisition has been excellent for Knights because itrsquos a fast and effective form of expansion ndash the acquisition of Darbys more than doubled its revenue But MampA poses a significant challenge to finding firms with the right cultural fit

ldquoFirms need to establish a single culture in order to implement growth ndash everyone needs to be working towards the same goalrdquo He added that when a firm completes a merger or acquisition that firm has to be integrated from day one which is much more difficult if it has a significantly different culture Knights is planning to continue recruiting and complete more acquisitions in the next year to maintain the growth curve

Of course the big problem with acquisition is money Robins at Keystone says his firm lies at the opposite end of this

INFORMATION IS EMPOWERING

Lemington Spa-based firm Wright Hassall has a specific goal of breaking into the top 100 and as part of its growth strategy expanded into areas of the UK where its expertise is highly sought after ndash using customer relationship management in the background to underpin the firmrsquos activities in specific areas Martyn Wells IT director at the firm says ldquoWersquove zoomed in on specific industry sectors that we know are performing well in the Midlands sectors where we have a superb reputationrdquo Expanding geographically as Wells outlines needs data to get right Thorntons for example identified various lsquomicro-marketsrsquo in Scotland close to its base of operations ldquoWe acquired a firm in St Andrews because itrsquos like a micro-economy (or micro-market) that doesnrsquot seem to be affected by price drops in the residential market elsewhererdquo says Thorntons joint managing partner Scott Milne Knights has another take on the geographic targeting idea ndash it intends to stay out of the large cities (London Manchester Leeds for example) and expand into areas where there is little competition As David Beech CEO at Knights explains ldquoLast September we acquired a small team in Chester of about 11 lawyers and now thatrsquos expanded to just over 70 ndash and the main reason wersquove been able to do that is because there isnrsquot a lot of competition thererdquoUltimately this all comes down to research finding out what to invest in or where to expand and perhaps most importantly finding out what clients want

LEGAL PRACTICE MANAGEMENT35

SEPTEMBER 2016FEATURES

spectrum to the way Knights has grown emphasising organic growth finding innovative means to attract talent using technology to drive efficiency and branching out into new areas of law or new markets to achieve significant growth

Square One Law also espouses the organic route ndash believing that firms with growth in mind should focus on ensuring their external brand reflects the businessrsquos internal culture and behaviours of its team creating lsquosynergyrsquo between the business and its clients

Gilthorpe says ldquoMergers ndash and there is no such thing as a true merger ndash and acquisitions can be a distraction as you look to create a new culture and separate the wheat from the chaff and this can soak up a lot of energy that would otherwise be put to use in driving the progression of the business and the focus on client servicerdquo

The best option for some firms may be a

calculated combination of MampA and organic Thorntons for example having made several acquisitions is now focusing on organic growth moving away from geographical expansion and towards developing locations and its brand

Watson at Simpson Millar sums the mixed approach up thus ldquoItrsquos a mixture Acquisition is still very much a part of the mix but in parallel to that itrsquos important to demonstrate that yoursquore developing ongoing work rather than being driven solely by acquisitionrdquo

There are clearly many different ways to achieve healthy and assertive growth though there are no easy answers as to which way is right for your firm But it is clear that growth doesnrsquot have to happen in the ways many have previously achieved it ndash innovation and lateral thinking are the means of achieving significant growth (which might one day propel you into the top 100 you never know) LPM

LEGAL PRACTICE MANAGEMENT36

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

INDUSTRY VIEWS

36LEGAL PRACTICE MANAGEMENT

Legal is becoming an ever more digital industry giving firms the chance to become more efficient flexible agile and collaborative

INDUSTRY VIEWS INDEX

ONLINEOFFICES

36

SPONSORED EDITORIAL

INDUSTRY VIEWS

37 INTERVIEW

Paperless processLinetimersquos Tony Klejnow explains the benefits of using matter management software for law firms and their clients

39 INTERVIEW

Virtual expansionNigel Redwood Nasstarrsquos CEO talks about the advantages of having a managed flexible IT infrastructure

LEGAL PRACTICE MANAGEMENT37

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT37

Competition and price pressures and an increasingly digital client base are all significant drivers for law firms to become paperless

businesses Tony Klejnow Linetimersquos managing director says firms could achieve competitive advantage by introducing paperless solutions across their businesses ndash but a particular lsquoeasy winrsquo area is matter management

ldquoFee earners are required to keep detailed records of their cases but the amount of time and money they waste physically printing filing looking for collaborating on and updating files is alarmingrdquo says Klejnow Law firms have traditionally been reluctant to adopt paperless

workflow solutions he adds because workflow doesnrsquot apply to 99 of fee earnersrsquo work ldquoBut if they adopted paperless solutions in their back office processes they could reduce costs without affecting client service boost productivity and promote collaboration ndash making them more efficient flexible and cost effective and making them more competitive in an ever-changing legal marketrdquo

MATTER MATTERSDocument and matter management tools ndash like those in Linetimersquos legal software product Liberate ndash electronically store and organise all case documentation in an online database Klejnow says that there are two immediate benefits of paperless matter

PAPERLESS PROCESS

Tony Klejnow managing director at Linetime talks to LPM about the benefits of the paperless office ndash starting with filing and back office processes

INDUSTRY VIEWS

Linetime is a specialist provider of Microsoft-based practice and case management solutions Clients include mid-tier law firms and in-house legal departmentswwwlinetimecouk

ABOUT THE SPONSOR

SPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT38

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT 38

management The first is reducing paper and storage costs

ldquoIf case documentation is electronically stored once a case is finished you no longer have a five-inches-thick file that has to be stored for six years ndash which has to reside somewhere and costs firms time space and moneyrdquo The second is eliminating filing time ndash for example instead of printing and filing emails and attachments fee earners drag and drop emails directly from Outlook into the database ldquoand attachments are automatically stripped from emails and appropriately filedrdquo says Klejnow

And Klejnow says paperless filing systems donrsquot just facilitate efficiency this way ndash they also improve general process efficiency by facilitating collaboration between fee earners Solicitors can use document and matter management to view and work on matters at the same time a difficult if not impossible prospect when working with paper files Klejnow says ldquoWithout document management legal professionals work in silos but with it they immediately share datardquo He adds that Liberate has an additional collaboration tool to help further improve collaborative efficiency in firms ldquoIf I choose to lsquocollaboratersquo a document with you on Liberate Outlook will prompt you to review that document by simply acknowledging the notificationrdquo

In this respect moving to become a paperless business provides greater flexibility for fee earners who can collaborate with colleagues working remotely or in different offices Klejnow says ldquoPaper files can only reside in one location but electronic files can be accessed from any office and when working from home or with clientsrdquo On the other side of the coin having digital files maintains a greater level of productivity in a law firm office ldquoIf your colleague is absent from the office you can easily find documents that you might have otherwise wasted a significant portion of your day looking forrdquo he adds

Improved external collaboration is also a benefit that firms can reap from paperless matter management With an electronic system you can go into a case history bundle documents into one PDF file and quickly submit that to the third party improving collaboration between fee earners and clients who want to do everything online This has the added benefit of improving accuracy and facilitating greater efficiency by involving clients in the process ldquoGood matter management software should also let you push e-forms to clients to be filled in and that information is automatically transferred straight to the online database ndash which saves fee earners

time and is a more accurate because the information doesnrsquot have to be constantly re-enteredrdquo says Klejnow

This extra level of collaboration within legal businesses that hasnrsquot been possible until now has long been needed because it improves efficiency and productivity which makes the business more profitable and competitive Klejnow adds that what firms save by adopting matter management they should reinvest in becoming fully paperless digital businesses

ldquoCase management solutions can improve efficiency to an even greater extent and keep firms competitive in the age of the alternative business structuresrdquo

VISIBLE COMPLIANCEIn response to firms reluctant to adopt paperless technologies like document and matter management for fear of losing delicate information to cybercriminals Klejnow says those systems provide an additional level of security ldquoTaking data and attachments out of Outlook and storing them on a database is much more secure than leaving them on your hard drive If you leave

your laptop on a train for example all your important data is safely stored on a server and not instantly accessible by opportunist criminalsrdquo

Document and matter management also offers a greater level of security in fee earner and client communications ldquoIf I want you to check that the data we have for you is accurate Liberate will

direct you to a page holding your data and at the same time it will push out an SMS text with a pin code to your phone Unless you input the code you canrsquot get to the web page ndash which means if one of your solicitors accidentally sends an email to the wrong person or itrsquos intercepted it doesnrsquot matter The data stays safe ndash this level of security is crucial in this age of cybercrimerdquo

These security features clearly have significant benefits for compliance which is important in a market increasingly dictated by regulation including the relatively new General Data Protection Regulation says Klejnow

ldquoCompliance officers need to be seen by regulators to have monitored and reviewed everything thatrsquos happened in their firm which is considerably easier with a paperless system Liberate has lsquoversion controlrsquo which allows compliance officers to keep tabs on every change made to a document as well as a compliance module which lets them view whatrsquos happening on a case (to ensure that money laundering checks have been carried out and so on) and records the fact that yoursquove reviewed thisrdquo LPM

Without document management legal professionals work in silos but with it they immediately share data

INTERVIEW

LEGAL PRACTICE MANAGEMENT39

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LPM readers may already know the Nasstar Group ndash but by a different name Nasstar was launched by regular LPM-contributor e-knownet to consolidate four discrete hosted

managed IT businesses (including e-knownet) after a period of significant acquisition Nigel Redwood chief executive officer at Nasstar says merger and acquisition and consolidating brands is challenging but having a flexible hosted IT infrastructure makes the process significantly easier

ldquoManaged IT services are enormously beneficial for firms that are expanding or consolidating particularly after MampA in terms of time and productivity cost savings and flexibilityrdquo He adds that by just having managed desktops firms can attain competitive advantage by reducing overheads and becoming more flexible and agile

Nasstar has experience helping SME firms with their IT systems after MampA and knows what problems to look out for creating unity among staff used to using different systems and processes the cost and time it takes to expand an IT infrastructure and the geographic distance between new offices

Redwood says that MampA can be an excellent way for legal businesses to expand into new sectors but that consolidating new departments using different IT systems and processes is challenging

ldquoOur acquisitions for example introduced new sector focuses for us in the SME legal market ndash wersquove consolidated these into a wider service base under Nasstar and facilitated unity among staff using virtual IT solutions

rdquoVirtual IT solutions help facilitate unity across the business by providing a level of consistency in an IT infrastructure Everyone immediately uses the same applications on the same versions from wherever theyrsquore working creating unity faster collaboration across teams and effective information sharingrdquo Hosted IT infrastructures are also continually updated giving staff instant access to new updates applications and technologies as they become available

The next significant challenge firms face after MampA is expanding their IT infrastructure to accommodate an influx of new staff ndash but Redwood says virtual IT solutions let firms expand their IT infrastructure at the flick of a switch

ldquoWith virtual IT firms arenrsquot held back by the size of their servers or the amount of computer power theyrsquove got ndash they simply call their IT provider and ask for an upgrade when previously theyrsquod have been

subject to lengthy and costly IT upgradesrdquo Virtual IT solutions are also easy to budget for

Redwood says ldquoYoursquore not going to be surprised by an increased fixed asset expenditure ndash services like those offered by Nasstar are an operational cost and fixed per user per month through a scalable cost modelrdquo

Geographic distance inhibiting collaboration between merged offices is also a key consideration for firms after MampA but virtual IT solutions solve this problem Redwood says a virtual IT infrastructure can minimise travel through the use of hosted virtual meeting rooms and video technology Staff can use this technology from virtually anywhere which is why it also lends itself well to remote flexible or mobile working set-ups

VIRTUAL WORKPLACERemote working is becoming an increasingly present feature of the legal landscape because of its cost saving and recruitment and retention advantages ndash the majority of firms at the LPM conference 2016 were moving towards a flexible remote or mobile working set-up or already had one

Redwood says virtual IT solutions better enable staff who work remotely ldquoHosted managed desktop solutions for example let staff work with the same applications from any device in the world safely and securelyrdquo

But remote working isnrsquot only about enabling the current workforce itrsquos about attracting future talent Redwood says that millennials donrsquot necessarily want to work as their predecessors did ndash they expect greater flexibility in the workplace which at one level can be achieved by remote working facilitated by a managed desktop

ldquoAnd itrsquos not only about attracting millennialsrdquo he says ldquoSME firms with flexible working set-ups are becoming more attractive to experienced legal talent who may be frustrated by the rigidity of their firmrdquo As a firm expands its workforce in this manner firms with virtual IT solutions reap the lsquodoublersquo cost saving benefits of not having to expand their premises or IT infrastructure accordingly

Some firms are resistant to remote working based on hosted IT services believing they arenrsquot secure ndash but Redwood says that argument ldquocan be put to bedrdquo

ldquoFor an in-house IT team to have the level of security that an organisation like ours can deliver is near impossible financially as well as in terms of the

VIRTUALSANITYNigel Redwood CEO at Nasstar talks to LPM about how managed IT can help SME firms achieve competitive advantage by making them more agile and flexible

LEGAL PRACTICE MANAGEMENT40

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

INTERVIEW

level of systems and technologies they deployrdquo Cybercrime is of course a scary and constantly evolving threat but Redwood points out that virtual IT systems have dedicated teams monitoring these threats evolving cyber defences and changing systems accordingly

ldquoThis capability not only makes [firms] a lot more secure but gives peace of mind in terms of compliancerdquo

ONLINE ADVANTAGE Redwood says virtual IT infrastructures donrsquot just pertain to lsquobig lawrsquo but to SME firms as well ndash perhaps more so

ldquoVirtual IT systems are a way for SME firms to stay competitive against their larger

counterparts and ABSs ndash it gives them a greater ability to expand it lets them adopt more flexible and agile models and is easy to budget forrdquo Firms can also expect virtual IT solutions to enable better alignment of IT resources to business needs enhanced usability with anywhere anytime access and in-built business continuity

But the greatest advantage virtual IT offers SME firms over big law is agility Redwood says ldquoBig IT departments in firms can be slow to react cumbersome and held back by the limitations of hardware infrastructure and security issues ndash all of that is removed with a solution like ours and the customer has access to fast-moving agile ITrdquo LPM

ABOUT THE SPONSOR

Nasstar is a provider of managed IT services and tailor-made cloud hosted solutions ndash delivering innovative secure and agile IT to help clients accomplish their business objectiveswwwnasstarcom

Page 12: LPM September 2016

LEGAL PRACTICE MANAGEMENT13

SEPTEMBER 2016COLUMNS

Barry DaviesPractice directorDouglas-Jones Mercer wwwdjmlawcouk

BARRY DAVIES PRACTICE DIRECTOR

ROLE MODELS

ABOUT Recent figures show that there are a shade over 130000 people on the roll of solicitors in England and Wales ndash 20 of those undertake an in-house role 80

are classed as employed An enormous number and this is before we consider the significant chunk of employees namely professional managers support staff and those lawyers who are not on the Law Society roll But lots of firms I speak with say lsquowe have too many partnersrsquo or they have reduced the number of lsquochiefsrsquo within their practice as part of their strategic planning

Where are we going with this What will the future firm look like What will its stakeholders (not necessarily shareholders) expect

The two facets that will impact upon the future will undoubtedly be generational attitudes and technology Though advancements in processing power will mean huge growth of AI systems over the next decade I think generational attitudes is the facet thatrsquos most interesting right now

Generation X lawyers (born between the early 1960s to mid-1970s) are often already partners This generation and the baby boomers before them are usually motivated by achievement and money Generation Y lawyers on the other hand (born in the 1980s or 1990s) are looking for something else Fearing that I sound like a textbook ndash specifically Frederick Herzbergrsquos theory of motivation hygiene ndash itrsquos not money thatrsquoll be the key factor in recruiting millennials but other drivers such as networks recognition quality of work and conditions

Developing reward and recognition strategies is

difficult enough for partners ndash so how does a law firm tackle its entire workforce A few years ago I held a discussion with a law firm partner and a question put to me was could the lsquoJohn Lewis modelrsquo fit a law firm This term is not only synonymous with the department store it has become a household phrase

Quite a few law firms have for some time now introduced a corporate partner ndash a limited company ndash as a partner within its practice with the intention of dealing with distribution of profits more efficiently or as part of a bonus pool So itrsquos quite interesting to hear that a highly regarded firm in the south west Stephens Scown has developed a similar model to the John Lewis theme

Whatrsquos different about this example is that a proportion of the firm is owned by a trust for its employees and not just its partners This gives the employees of the firm a greater sense of belonging and the added impetus to do well I am certain that some critics would question the mechanics of such a scheme and perhaps the barriers to entry such as defined profit levels but setting this aside it is a means of boosting staff engagement and eradicating the lsquothem and usrsquo mentality

With complications in all corners of law firm ownership new models will have to be explored to cover aspirations of all involved There could come a time when a crowdfunding option is explored generally and maybe the household name for staff stakeholder mechanisms in law firms will be the Stephens Scown model LPM

LEGAL PRACTICE MANAGEMENT14

SEPTEMBER 2016COLUMNS

In the April issue of LPM Stepien Lakersquos practice director Richard Hill brilliantly spelled out what to look for when trying to spot a lsquowhalersquo or big lsquophishrsquo ndash a situation where an

individual or firm is targeted researched and then duped into sending money to a cyber attacker

But just as awareness is essential so too is preparedness I thought it might be helpful to share some of the practical considerations that will help keep client funds safe (a requirement of principle 10 in the SRA handbook) including some things wersquove done in our firm in response to these very real threats

Perhaps the most feared event among all law firms is the very well-publicised lsquointercepted emailrsquo (dubbed the lsquoFriday fraudrsquo) But would we be surprised by just how many firms lawyers and clients freely provide bank details within the body of text in an email

This is an area where we recently tightened our procedures and introduced an explicit rule all bank details provided by a client especially in any email communication must be verified by a lawyer (by reconfirming those details with a person they know) The lawyer then signs to say that they have checked them

This has produced some unexpected benefits particularly for one client who provided bank details to us within the body of an email for remitting the proceeds of sale for his family business of pound32m When the lawyer contacted him to verify that the bank details were correct the client realised that he had transposed two numbers

Clearly this is a serious education piece not only for those responsible for finance and the lawyers within the firm but externally for the firmrsquos clients

There are a number of practical points to bear in mind when it comes to day-to-day security matters how do your lawyers communicate the client account details to its clients and do you always attempt to obtain client details for the remittance of funds at the start of the transaction for instance

Additional considerations might be when did you last review any bank payment elements in your email disclaimers terms of business and client care letters Is your payment procedure well-defined and documented (not just the finance element but also those relevant to clients and lawyers) And do you use any law firm identification checklists

These important issues should remain on the agenda so that theyrsquore constantly in colleaguesrsquo minds with regard to maintaining safe and efficient practices

There are some excellent resources available from your bank that can help to educate your colleagues and there are so many simple steps we can all take to make people aware of the problem Have you tried sending a few test phishing emails to individuals within the firm for

GLYN MORRIS FINANCE DIRECTOR

ABOUTexample to see how they respond

But what then If you are confronted with the metaphorical warning cry of lsquothar she blowsrsquo how will you and your people react You may need to have created a well-communicated process for dealing with a phishing incident

The 1851 classic Moby Dick tells the story of one manrsquos obsessive quest for revenge on a giant white whale ndash we might want to take just a hint of Ahabrsquos obsession in our approach to tackling the issue of cyber attacks Although if we can avoid the whale in the first place all the better LPM

THAR SHE BLOWS

Glyn MorrisFinance director Higgs amp Sonswwwhiggsandsonscouk

0800 328 0272 | wwwarchivestoragenet

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LEGAL PRACTICE MANAGEMENT16

SEPTEMBER 2016COLUMNSSPONSORED EDITORIAL

DOUG HARGROVE THE TECHNOLOGIST

DISRUPTION TO GO

ABOUT Change isnrsquot anything new itrsquos just another word for evolution But lsquodisruptionrsquo is certainly one of the words of the decade and one that is

usually connected to revolution ndash a significant alteration to the status quo and one that has far more immediate impacts

Disruption is also the go-to word for business commentators ndash especially when it comes to lsquodisruptive techrsquo ndash talking about new business start-ups or innovations Take the very latest craze to hit the headlines ndash Pokeacutemon Go has seemingly gripped the world these last few weeks with stock valuations heading skyward and comments about the app lsquodisruptingrsquo mobile gaming But therersquos nothing disruptive about the game it takes and utilises technology thatrsquos been around for nearly a decade (geolocation and augmented reality) and applies it in a new way Itrsquos that application of technology thatrsquos causing the disruption

Businesses like Uber and Netflix have built compelling business models on the groundwork of technology that is now pervasive (the smartphone and broadband internet respectively) Therersquos a lot here that firms can learn from itrsquos not necessarily about inventing new technology but about finding ways to use existing technology to create a new approach

So what opportunities are there for law firms to disrupt This can be looked at in two ways ndash disruption to the existing law firm business model and disruption to the user experience The first scenario has already been covered at length and is nothing new for the legal market there are already plenty of law firms out there

looking to change the way a law firm delivers its services to its clients and prospects ndash from franchise models to virtualised law firms Disruption to the law firm business model has been an ongoing force ever since the term ABS became associated with legal practices

The second scenario is a different matter It seems legal clients have been patiently waiting for the lsquodisruptive service deliveryrsquo model to come and there is plenty of opportunity out there for firms to position themselves differently with the modern consumer of legal services

Take a brief example of where old (or rather existing) technology can be used to differentiate ndash videoconferencing Itrsquos a fairly ubiquitous piece of technology thanks to the rise of Skype Facetime and the webcam which gives an instant user experience and a one-to-one connection that bridges the remoteness of a phone call and the need to travel for a meeting It doesnrsquot take much of a leap to imagine a service that allows consumers to access a lawyer instantly using this technology (maybe even a concept that combines the franchise model with an Uber-style app ndash connecting clients to the next available expert from a selection of associated law firms) The point is you donrsquot have to invent something new to be a disrupter ndash donrsquot be afraid to take existing technology and repurpose it to gain a competitive advantage

There are plenty of consumers of legal services who are willing to try out a new service or offering in the search for that great new experience ndash and for those law firms prepared to take the risk and disrupt there really is an opportunity to catch lsquoem all LPM

Advanced LegalRevolutionary solutions for legal services Contact Doug on 01476 573 718wwwadvanced-legalcouk

Advisory

Design

Development

Delivery

Support

If you would like to know morethen please get in touch

wwwsoftclcominfosoftclcomFREEPHONE 0808 164 0000

Leeds office15 St Pauls Street Leeds LS1 2JG

Manchester officeExchange Quay Building 8 Suite 21 Salford Manchester M5 3EJ

Helping Law Firms to improve business performance through their use of IT

C

M

Y

CM

MY

CY

CMY

K

SoftwareCloud_A4_Advert_V4pdf 1 20082016 1130

LEGAL PRACTICE MANAGEMENT18

SEPTEMBER 2016COLUMNS

JANINE PARKER THE BROKER

WHAT PRICE EXCLUSIVITY

Itrsquos that wonderful time of year when the annual bombardment of brokers begins on your never-silent telephones All of them can ldquocarry out a full market exerciserdquo for you that will of course save you money

But whatrsquos the reality The marketplace is still murky and as a profession we donrsquot help ourselves by keeping it opaque So letrsquos objectively consider many of the claims brokers make attempt to clarify the true mechanics behind the market and consider how to best utilise it for the benefit of your firm

Since 2000 and the demise of the Solicitors Indemnity Fund competition for solicitors professional indemnity has increased This hasnrsquot always been generated through the number of insurers but the ever-increasing number of brokers who purport to be experts in this very niche area of insurance This has increased pressure on insurers to lower prices (a good thing for clients up to a certain point) but this pressure combined with some extreme economic factors has contributed to many insurers withdrawing from the market over the past decade

Competition is good for consumers and it encourages innovation to make sure that brokers and insurers can differentiate themselves by developing their product offering

Some brokers organise lsquoexclusiversquo arrangements with insurers often segmented by the number of partners within the firm ndash which is a very artificial way of dividing up the profession But this is the marketplace wersquore in today and itrsquos worth looking a little closer at these lsquoexclusivesrsquo

All the direct access points are listed in the Law Society buyer guide and in practice itrsquos only a handful of brokers who actually hold the exclusive with direct access to the underwriters It is essential to note that these exclusive agreements are not always lsquotiedrsquo arrangements The broker is not bound to place all their business with their one exclusive insurer and itrsquos often the case that those brokers who hold the exclusive arrangement also enjoy strong relationships with the open market insurers

To increase distribution brokers who hold exclusive arrangements will offer access to other brokers who wish to take advantage of the exclusive products available These brokers donrsquot have their own facilities There are many commercial reasons for opening an exclusive to other brokers but itrsquos important to note that the extra broker in the chain will dilute your relationship with the placing broker and ultimately your insurer Marketing materials can often be unclear as access to exclusives is readily used ndash but in reality these brokers will be approaching another broker to do this

Often law firms will be unaware of the number of brokers in the chain and will unwittingly be paying additional brokerage and fees unnecessarily Direct access allows for better communication between your firm and insurers which can often lead to more competitive pricing Removing a broker from the chain can lead to the process of claims handling being more efficient and effective as there are less obstacles in the chain of communication

In summary no one broker has direct access to every insurer and it is possible to approach more than one broker and not be at risk of flooding the market If using more than one broker be clear who you would like them to approach and be aware whether they have to go through another broker to ultimately reach the insurer LPM

ABOUT

SPONSORED EDITORIAL

ParagonBetter broking for legalContact Janine on 020 7280 8200wwwparagonbrokerscom

LPMLEGAL PRACTICE MANAGEMENT

SUPPLEMENT SEPTEMBER 2016

BUSINESS INFORMATION FOR EVERYONE IN PRACTICE MANAGEMENT

LPM INSIGHTS

Sponsored by

How do SME law firm management leaders see the future

LEGAL PRACTICE MANAGEMENT20

SEPTEMBER 2016LPM INSIGHTS

ALL CHANGE

22WHATrsquoS NEXT We analyse the 2016 LPM conference polling data

2 1 COMMENT Accesspointrsquos Richard Roebuck on legalrsquos increasing digital dangers

Change and transformation are words that strike fear into the most hardened of legal management hearts because they are hard to do and even

harder to make stick But change must happen inside todayrsquos SME law firms to make sure they stay in business in tomorrowrsquos world

At this yearrsquos Legal Practice Management conference in London we polled our audience of law firm management delegates on a range of topics Some questions wersquove been asking since our first LPM conference back in the misty era of 2012 Much has changed in the world since then (new UK governments drones are now lsquoa thingrsquo Donald Trump) but legal not so much The rise of the ABS has been slow (though impactful) and the recession has for many businesses faded into a distant memory compared to the Brexit debate

But SME law firms rightly smell a real need for change in the wind ndash and perhaps though they seem to find it hard to name that change the clues are legion Letrsquos find some

LPM London 2016 delegates named the greatest hurdles to their firmsrsquo growth or further success as lsquoacquiring high-quality staffrsquo and the lsquoinability to create change within the firmrsquo Might the solution to one lie in the other Great talent wants to flock to fresh and vigorous businesses and younger legal eagles are increasingly shy of throwing their lots in with the fusty world of partnership Law firm leaders must look at how their businesses are run and who runs them and how people work if they are to attract great people ndash and in doing so they will create the change they seek

Herersquos another 52 of delegates named lsquoclient pressures on costrsquo the factor thatrsquos having the biggest impact on the SME legal market ndash but when asked how important price is when winning business 67 said itrsquos just lsquoone of a range of important factorsrsquo while 21 said itrsquos lsquonot as important as other things such as relationshipsrsquo This is a disparity I canrsquot quite understand but it doesnrsquot sound like the SME legal market truly gets the shift thatrsquos happening on the client side and how much change needs to happen inside firms to meet this challenge

Read on and come to your own conclusions but I think the clues are now becoming obvious I hope your firm sees them too LPM

Rupert Collins-White editor-in-chiefLPMmag | rupertwlsncouk

You donrsquot as the song goes need to be a weatherman to know which way the wind is blowing in the legal market ndash but just because the clues are there doesnrsquot mean you can be complacent about acting on them

CONTENTS

FEATURES

LEGAL PRACTICE MANAGEMENT21

SEPTEMBER 2016LPM INSIGHTS

MORE TECHMORE SECURITY

INTRODUCTION TO THE RESEARCH FROM OUR SPONSOR RICHARD ROEBUCK MANAGING DIRECTOR ACCESSPOINT

After a recent period of uncertainty it would now seem that most firms are confident about their future especially in light of Brexit Whatrsquos also certain is

that most firms are very conscious that to compete they will need to change and adapt themselves for the challenges ahead

With growing concerns about the lack of high-quality people available and what appears to be a reliance on quality individuals driving more lucrative fee-earning work is it time for a gear change

Perhaps the dawn of high-volume low-margin fixed fee work which many firms feared has now arrived As always with change there are challenges to be faced but for those clever early adopters there lies opportunity Making light of the more process-driven tasks and finding more effective efficient ways of completion to deliver client-facing benefits seems key to the wider future of the fixed fee legal landscape

With the growing acceptance of cloud technology and the increasing introduction of new software applications and solutions the legal world has moved on at an improved pace this past couple of years And the world is now clearly keen for more ndash to satisfy its desire for a more accessible and mobile working environment What is key for this trend is that the lsquoquality of the deliverablersquo has an ongoing programme of improvement that benefits both the firm and its clients

As progress pulls us forward there will always be elements arrayed against us Alongside the opportunities hiding in the polling from LPM this year therersquos also a sense of fear and concern around possibly the biggest threat to risk and security there is right now ndash the dark byproduct of technological success cybercrime

Cybercrime is fast growing with ever more complex attacks making headlines It is now one of the most common criminal offences in the UK An increasing number of individuals are exploiting the speed and anonymity of the internet to commit a wide range of criminal activities having no conscience and knowing no borders

It isnrsquot our fault websites get hacked but poor internet safety habits can put us at risk Reusing passwords or using weak passwords make us easy targets for identity theft Remembering multiple passwords can be a pain but there are web services and associated applications that can help such as two factor authentication quality mail management systems URL threat protection and mail encryption

For many firms the biggest threats tend to be by way of the ever-open door into our networks and devices ndash email

Our eagerness to respond almost instantly to emails throughout what will be for most an already pressured day is perhaps the dominant daily activity to foster an unwanted lapse in security In the past 18 months alone I have seen three firms that were truly caught out ndash some with the potential for significant financial penalty by opening email attachments The most common lsquogotcharsquo is an email that appears to have come from the office scanning platform whereby the email address has been cleverly spoofed to appear legitimate (for example downstairscopiermyfirmdomaincouk) There are so many existing and newly circulating threats of this calibre and type that even the most aggressive of filtering systems struggle to keep up

Do you know the name(s) of your copiers and the associated email addresses Do you stop to think before opening the innocuous Word attachment ldquoDoesnrsquot our scanner usually send PDF files Why has a covering note not been included with the attachmentrdquo Stop think and call for advice

Another infamous scam is the spoofing of email addresses of key people within your firm ndash for example an email to the head of accounts appears to be from the senior partner ldquoPlease send pound17000 to account X at your earliest convenience and confirm once processedrdquo it says Stop ndash is this your agreed process

As the demand grows and we extend our reach out into the online world so cybercrime advances ever closer seeking unauthorised access through our front door Quite clearly online is the future but we need to embrace it with the necessary skill sets and processes in place for our convenience wellbeing and prosperity LPM

There are so many existing and newly circulating threats of this calibre and type that even the most aggressive of filtering systems struggle to keep up

Accesspoint are independent legal IT specialists who consult on a variety of information technology-related issues offering the best in IT solutions to help firms work more effectively

Contact Richard and the team on 0203 189 2645wwwtheaccesspointcouk

LEGAL PRACTICE MANAGEMENT22

SEPTEMBER 2016LPM INSIGHTS

SME law firms are in a battle for survival Whether they know it or not they have huge challenges to face in the next few years ndash around succession planning technology replacing lawyers and being

used by competitors to attain a competitive edge and catering to clients who increasingly want cost predictability transparency and availability

These market pressures were addressed at the LPM conference in May 2016 which was attended by over 100 delegates all SME legal management leaders The delegates were polled on the day about what they thought of the pressures facing them and how theyrsquore planning to overcome them ndash and their answers provide valuable insight into the SME legal market

The polling results show that LPM conference delegates were aware of the severity of the challenges they face Three-quarters of legal management leaders we polled at the 2016 LPM conference thought that the challenges theyrsquoll face in the next five to 10 years will be lsquomorersquo or lsquomuch morersquo serious than in past years And 58 of delegates thought that the challenges in the next year to two years will be lsquomore serious than in past yearsrsquo

How they will face these challenges depends at least partly on attitude ndash whether they believe they can win or will eventually lose the war Fortunately most LPM conference delegates were optimistic about their firmsrsquo futures - 81 were either lsquocautiouslyrsquo or lsquoveryrsquo optimistic about their place in the legal market of the future

This doesnrsquot necessarily suggest that theyrsquore confident in the market overall particularly after the market instability brought by Brexit Legal management leaders might believe their firm is the only one thatrsquoll survive due to expertise in a particular area or niche In any case it indicates market confidence and a confidence in the ability of their firm to compete and succeed

But is this optimism misplaced in a market where the future is increasingly uncertain and competitive Are firms really ready for change on a huge scale as their confidence might suggest What are the issues currently keeping SME legal leaders awake at night

In this report LPM shines a light on the SME legal market through the eyes of our legal management leader audience ndash those driving their firms through an uncertain new world

WHATrsquoS NEXTChange is on the agenda for LPM firms but how to address the biggest challenges and which ones to face first is a tough call finds Patrick Wingrove

More serious than in past yearsMuch more serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch less serious than in past years

51

14

8

3

24

More serious than in past yearsMuch more serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch less serious than in past years

How would you rate the challenges your firm faces in the next five to 10 years

More serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch more serious than in past yearsMuch less serious than in past years

58

17

6

0

19

More serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch more serious than in past yearsMuch less serious than in past years

How would you rate the challenges your firm faces in the next year to two years

What is the greatest hurdle to your firmrsquos growth or further success

What is the greatest hurdle to your firmrsquos growth or further success

LEGAL PRACTICE MANAGEMENT23

SEPTEMBER 2016LPM INSIGHTS

TIMES THEY ARE A CHANGINrsquo The overriding theme of the 2016 LPM conference was change ndash how firms can implement it the drivers behind it and the various blockers to it But the first step to change is gauging which factors will have the biggest impact on the legal market Just over half of legal management leaders we polled thought client pressures on cost like demanding fixed fees will have the biggest impact while just over a quarter thought it will be competitors attaining a market advantage using technology

How quickly do firms need to respond to these oncoming market pressures Well 86 of LPM conference delegates thought that change needs to happen in their firms within the next two to five years But 14 said that their firm doesnrsquot need to change significantly perhaps because theyrsquove beaten the rest to the punch their legal business is somehow immune to new pressures ndash or they have their heads in the sand

Legal has traditionally been resistant to change and itrsquos not surprising that some firms still are says Sean Stuttaford COO at Essex firm Thompson Smith and Puxon (TSP) and 2016 LPM conference delegate ldquoThere are still firms out there where partners donrsquot have computers on their desks ndash theyrsquore stuck in their ways and just point blank refuse to

52 26 5 12 5

develop their business for the futurerdquoBut legal management leaders willing to implement

change may still find it difficult as 60 of LPM conference delegates polled thought that lsquochange isnrsquot really understood at their firmrsquo

GROWING PAINSJust over a quarter of LPM conference delegates also thought that an inability to create change within their firm would be the greatest hurdle to the businessrsquos growth or further success ndash though Stuttaford at TSP suggests voters might have blamed the traditional partnership business model for the same reason

But acquiring high-quality staff was considered to be the greatest hurdle for growth or success by 36 of delegates Rebecca Patterson HR manager at Kent firm Thackray Williams and 2016 LPM conference delegate says that she agrees with this result ldquoOur firm has a particularly tough time finding quality support staff ndash we could perhaps stand to invest more in competency frameworks and performance management and training opportunities to aid recruitment and retentionrdquo

William Robins operations director at lsquodistributedrsquo firm Keystone Law and a 2016 LPM conference speaker says

12 36 27 13 12

Lack of fundsAcquiring high-quality staffInability to create change within the firmTechnologyThe traditional partnership business model

Out of these which factor is having the biggest impact on the SME legal market

Client pressures on cost (eg fixed fees)Technology creating advantage for competitorsConsolidationDifficulty in finding routes to growth (eg funding)Something else

What is the greatest hurdle to your firmrsquos growth or further success

LEGAL PRACTICE MANAGEMENT24

SEPTEMBER 2016LPM INSIGHTS

offering a more flexible remote or mobile working set-up for everyone in a firm is an excellent way to attract talent (Keystonersquos model of course is founded on remote working) Perhaps the majority of legal management leaders polled at the 2016 LPM conference agree since their firms have either adopted a flexible remote or mobile working set-up are planning to adopt one or are considering adopting one ndash though there are other advantages to remote working such as reducing overheads In any case the results indicate that the SME legal working landscape is becoming considerably more flexible

But remote working doesnrsquot work for everyone Mary Mocklow CEO at West Midlands firm Talbots Law and 2016 LPM conference delegate says that their high-street set-up wouldnrsquot allow it ldquoThe majority of our staff are client-facing and need to be present at the office ndash and while there are other staff at Talbots that might benefit from remote working you canrsquot have a policy for one and not for allrdquo

CYBER THREATSTechnology was clearly a significant concern for legal management leaders who attended the 2016 LPM conference Patterson at Thackray Williams says some firms have had a hard time finding software that caters to their needs as a business and an LPM conference poll seems to back this up just under half of legal management leaders polled at the conference thought project teams should write law firm software indicating a desire for cross-department input into its creation But the poll also indicates that legal software providers have to a large extent been meeting their clientsrsquo needs

The rising threat of cybercrime was also a clear concern for LPM conference delegates ndash 92 of SME legal management leaders said their firms have cyber risk on their management meeting agendas Stuttaford at TSP says ldquoItrsquos something firms need to be constantly aware of and take precautions against not just by purchasing good firewall and antivirus software but by educating staff about password discipline authentication processes and suchrdquo

32 18 14 33 3

Is cyber risk on your management meeting agenda

92

5 3

Yes No Dont know

Is your firm moving to a more flexible workingremote or mobile working set-up for everyone in it

YesNoConsidering itWe already do itDont know

LEGAL PRACTICE MANAGEMENT25

SEPTEMBER 2016LPM INSIGHTS

PRESSURES AND PRICINGClient pressures on cost was also a major concern for legal management leaders polled at the conference so it may not be surprising that just over half of them said 50 or more of their firmrsquos work is some form of fixed fee This doesnrsquot necessarily suggest that the other half arenrsquot open to the concept of fixed fee ndash Mocklow at Talbots points out that fixed fees work for certain types of work ldquoHigh-street firms like Talbots can benefit greatly from fixed fees which is why 75 of our work is fixed fee but itrsquos more difficult to apply to firms that specialise in something like admiralty lawrdquo

The industry seems to think that the value of service has been lost to the price obsession in some areas but not in others ndash and while pricing is clearly a vital issue for SME firms 88 of legal management leaders polled at the LPM conference thought that itrsquos lsquoone of a range of important factorsrsquo or lsquonot as important as other thingsrsquo Patterson at Thackray Williams says that maintaining a good relationship with clients is often more important than pricing though pricing can be a means to achieving client satisfaction ldquoIt also depends on the client ndash in something like conveyancing first-time buyers might be looking for fixed fees or the cheapest price but for commercial clients that may not be as important as reputation or relationshiprdquo

TREASURE MAPPINGLegal process mapping often used by lsquobig lawrsquo and making inroads into SME legal could potentially make SME firms a great deal more efficient and therefore more competitive Two-thirds of legal management leaders polled had heard of process mapping and 79 thought that it is relevant to the business of law Stuttaford at TSP says he agrees ldquoFirms should look at their processes learn from them and figure out how to improve those processes ndash this question really made us look at what TSP has done so far in terms of what legal processes wersquove mapped and whenrdquo

To sum up LPM conference delegates were aware of the challenges that face them but were mostly optimistic nonetheless This may be because they know they need to change and in spite of the fact that change isnrsquot really understood at their firms are planning to mend their ways to meet future market pressures ndash generally putting the client first while keeping talent and technology high on their agendas LPM

Are aware of this thing called legal process mapping

66

34

Has the value of service been lost to the price obsession

23

23

54

Yes No Depends on the service Dont know

Yes No

How important is price in winning business

8

4

67

21

CriticalMore important than almost all factorsIts one of a range of important factorsNot as important as other things such as relationshipsIts one of the less important things in reality

What is the greatest hurdle to your firmrsquos Are aware of this thing called legal process mapping

LEGAL PRACTICE MANAGEMENT27

SEPTEMBER 2016COLUMNSSPONSORED EDITORIAL

Welcome back LPM readers ndash the new school term has started summer is (pretty much) over and the UK is back in full throttle after the summer break And what a break itrsquos been at

File Queen HQ (wersquove taken the time to get our clients up and running with augustprojects as well as started our new Instagram feed filequeenadds)

With the start of the new learning year wersquore focused on the education of you lovely LPM readers ndash with our attention turning back to the General Data Protection Regulation You may remember that in our last LPM article we ran through the 12 steps to tackle the GDPR helped by the awesome people at the Information Commissionerrsquos Office ndash wersquove provided a link to their 12-step resource via our website wwwarchivestoragenetnewsgdpr

Over the next three columns wersquoll be taking these steps and breaking them down for you ndash starting with step one awareness The File Queen (myself) and the team at ADDS have been promoting this step as the most important for all legal practices

ldquoWhyrdquo we hear you holler Well this step is the all-important life raft that unites your practice and team members to help you in the GDPR fight for survival (dramatic I know)

Getting the team on board ndash this buy-in needs to include all ranks of staff ndash from the managing partners to your suppliers But how do you do this Well here are some File Queen tips for when we at ADDS are rolling out projects

Lunch and learn ndash with a register People love to eat and be social so get your legal business to book in a couple of lunch and learn sessions Donrsquot limit this to one date ndash you must run at least two or three so people have the option of which dates to attend Make sure you make a register for those that actually turn up (we all know a calendar acceptance doesnrsquot mean theyrsquoll actually appear) This will allow you to chase down the members of the team you need to get on board for the next one

Have some decent sandwiches nibbles and soft drinks and give the team an overview of the GDPR Run through the 12 steps and make sure you educate them on why everything is so important (make sure you mention the increased fines and audits) During this time let the team know that there are several steps along the way that yoursquoll need their help and support for and which you wonrsquot be able to achieve on your own Tell them that the businessrsquos reputation and brand is on the line and that you need everyone on board to lend a helping hand and spread the word

Another great File Queen tip at this stage is also to get some additional funding from the practice manager for a wine and quiz night at the end of the lunch and learn periods This can be part of your social gathering on a Friday straight after work ndash with some more nibbles and wine Assign people to teams and have a GDPR quiz The winning team gets an award and everyone has fun and learns at the same time Follow our twitter feed as wersquoll be tweeting some great questions to ask thefilequeen GDPRQUIZ

We know itrsquos a lot to organise but there are only four months left in 2016 and GDPR practices must be in place by 25 May 2018 And believe me when you have to roll out rather hard core legislation you have to make it fun and interactive to get people on board LPM

ABOUT

NATASHA RAWLEY THE FILE QUEEN

EDUCATING YOUR PROS

ADDSSaving firms from paper hellContact Natasha on0800 328 0272wwwarchivestoragenet

LEGAL PRACTICE MANAGEMENT28

SEPTEMBER 2016FEATURES

28

Patrick Wingrove talks to the founders of Proelium Law about their work providing legal advice in high-risk environments and conflict zones and the challenges of setting up shop in a new and risky area of law

Legal commandosProelium

Compared to the day-to-day lives of Proelium Law founders and partners Richard Stephens (above left) and Adrian Powell (centre) the average lawyer leads a pretty humdrum life Though UK-based the

firm has a strong international focus ndash Stephens and Powell regularly travel to provide legal and business advice to companies and individuals in high-risk professions or working in hazardous environments across the globe including conflict zones in Iraq Syria and Afghanistan Powell says that itrsquos a challenging but exciting area of law to be in and that ldquono two days are ever the samerdquo

The firm was established as an ABS in November 2015 allowing Powell and Stephens to operate as partners although Stephens isnrsquot a lawyer Powell qualified as a solicitor in 2004 after spending 11 years of his career in the British army and post-2006 worked on various high-risk projects around the world ndash giving him the inspiration for Proelium He says ldquoThe idea came to me in Baghdad in 2009 while working for a private security company as a legal adviser ndash I thought lsquoWhy isnrsquot there a firm doing thisrsquo But I soon realised that I needed someone on the ground who wasnrsquot a lawyer to help make it happenrdquo

That person was Stephens He previously served in the Royal Marines worked as a Whitehall-based strategic planner for the UK government and commanded a special operations regiment (which is why we couldnrsquot show you his face but itrsquos a nice issue of LPM) He now works primarily on the business development side of Proelium ldquoJoining Adrian who Irsquod previously worked with on projects around the

LAW FIRM PROFILE

LEGAL PRACTICE MANAGEMENT29

SEPTEMBER 2016FEATURES

world at a firm meant I could do fascinating and important work with the credibility that being a partner in a regulated business providesrdquo he says

Their work has certainly been interesting Proelium has cast its net far within the niche high-risk sector ndash advising UK-based service providers on the complexities of working in hostile environments conducting business and human rights due diligence and ensuring anti-money laundering counter terrorist-financing and anti-bribery compliance for companies intending to run in high-risk areas or conflict zones to name a few Recently theyrsquove also been working on developing capability for national intelligence organisations overseas ndash but for fear of being jailed for treason Stephens and Powell didnrsquot elaborate hellip

Powell says that the challenges companies face in these areas are numerous ldquoTherersquos a real technical knowledge in understanding how organisations physically work overseas These companies are good at what they do but that doesnrsquot necessarily translate into being business-savvy when it comes to operating in frontier markets ndash thatrsquos where Proelium adds valuerdquo For example after a client was recently exposed on an arms deal they were able to quickly discern liability and ensure that all necessary agencies and departments were appropriately informed

Powell and Stephens joke about how theyrsquore the number-one firm in their sector ndash admitting that to their knowledge theyrsquore the only firm that specialises in this area of law They added that itrsquos an untapped niche in which Proelium will be a pioneering force but which has also recently come onto the radar of a larger firm Theyrsquore alluding of course to Proeliumrsquos recent venture with Harrison Clark Rickerbys ndash a joining that combines Proeliumrsquos experience working in high-risk jurisdictions with the manpower and existing defence and security expertise of

HCR Powell says ldquoWhat they donrsquot have is our connections and our experience They like the idea of the sector because they see it as an interesting area and the partnership will allow us to offer a wealth of different legal services while letting us focus on what we do bestrdquo

As part of their ambitions for Proelium Powell and Stephens are keen to train a new generation of lawyers whorsquoll specialise in the high-risk sector ldquoWe have confidence in what the younger generation has to offer and we want them in our industry to continue our work in this relatively untapped areardquo says Powell Stephens adds that itrsquos also a matter of succession planning ldquoWe want the firm to operate long into the future but we donrsquot necessarily want to be running it ourselves for the next 20 yearsrdquo Proelium currently employs two interns as part of this commitment including University of Surrey law student Ruby Jamieson (pictured) She says ldquoWorking [at Proelium] has given me loads of insight already ndash itrsquos very niche

very new and Irsquove really enjoyed helping develop the business I feel that itrsquoll open a lot of doors when I graduaterdquo

In terms of expansion Proelium has recently opened a new office in the City of London Powell says that his home was originally the firmrsquos practising address but a large portion of their client-base is in London ldquoand we couldnrsquot keep having our meetings in coffee shopsrdquo

But Powell and Stephens are firm believers in the concept of remote working which works particularly well for their business

ldquoMost of our clients are either in London or outside the EU so Irsquom always away but all my phone calls are redirected from the new office to my mobile so I can keep in touch with clients whether Irsquom in Dubai or Baghdadrdquo says Stephens Powell adds that he feels remote working has the added benefit of keeping staff happy by letting them work from home which he says certainly makes him more productive as a fee earner

Proelium isnrsquot looking to expand into areas it has no interest in like family law but theyrsquore taking a keen interest in the emerging area of cyber law and are considering taking steps into that world ldquoLike high-risk law no onersquos really wrapped their arms around cyber law yet Therersquos cyber law in the US but it doesnrsquot exist per se in the UK except in terms of data protectionrdquo

When asked what advice they could give to SME firms based on their unique experiences in their sector Powell and Stephens said firms should know the areas of law they practise inside and out Powell says ldquoWersquore concerned with being experts in our field ndash a lot of our clients have peoplersquos lives in their hands and are not in the business of nonsense which is why they come to us We give sound researched legal advice based on experience and if we donrsquot know something we send the client to someone who doesrdquo LPM

ldquoCompanies are good at what they do but that doesnrsquot necessarily translate into being business-savvy when it comes to operating in frontier markets ndash thatrsquos where Proelium adds valuerdquo

Proelium

Two fee earners four total staff

Offices City of London Wirral Cheltenham

Specialisms International criminal commercial and conflict law due diligence sensitive investigations

LPM FACT FILE

ldquod2u is the UKrsquos number one outsourced transcription service for medical and legal professionals and highly competitive all over the world We pride ourselves on saving our clients time and money as well as offering state-of-the-art security and a first-rate servicerdquo Daryl Leigh CEO dictate2us

LPM magazine has agreed a special deal for its readers with dictate2us ndash 5 off your monthly

transcription bill for one year if you sign up through the dedicated LPM link or call and quote LPM2016 when signing up You can trial the service for free before committing

CUT COSTS INCREASE EFFICIENCYAll firms could benefit from outsourcing transcription to dictate2us ndash but even more so with our LPM deal 5 off your first year

wwwdictate2uscomlpm

Use d2u and enjoy the benefits ofbull Fast turnaround timesbull Secure and confidential servicebull Secetarial cost reductions of up to 60bull Guaranteed 985 minimum accuracybull iPhone Android and Blackberry apps with one-hour turnaroundbull 100 output - only pay for the time you talkbull Free no obligation trial

This special LPM magazine reader deal only relates to customers that execute an agreement for a minimum term of 12 months with a minimum monthly commitment of 500 minutes LPM magazine sought two law firm references for dictate2us to verify its claims for quality and delivery The 5 deal only applies to the first paying year the customer is with dictate2us LPM magazine is not responsible or liable in any way for work done by dictate2us and is an advertising referrer only

d u2 dic t a t e 2 u s

SPECIAL READER OFFER

The d2u Transcriber app is free to download from Apple and Android app stores and BlackBerry App World

OFFER 5 OFF

YOUR FIRMrsquoS FIRST YEAR OF

TRANSCRIPTIONSIGN UP ONLINE

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WHEN CALLING

LPMLEGAL PRACTICE MANAGEMENT

LPMLEGAL PRACTICE MANAGEMENT

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LEGAL PRACTICE MANAGEMENT31

SEPTEMBER 2016FEATURES

Patrick Wingrove speaks to management leaders from SME and top 100 law firms that have recently achieved significant growth to find out how to go from acorn to oak tree

FROM MINNOW TO

For many SME firms growth is the goal ndash but it doesnrsquot have to happen in the ways that many have scaled in the past The era of organic slow quiet steady partnership development over decades is

increasingly at odds with a fast-paced digital world Strategies for growth in the legal market are now closer than ever to the rest of the business world ndash and any size firm can learn how to do it

Big or small there are similar tools in the box for making growth happen and similar challenges Lessons abound but some of the best can be taken from those firms not far outside the famous lsquotop 100rsquo legal businesses in the land ndash those that have already grown up and now have the top tier in their sights There are also lessons to draw from smaller but rapidly scaling law firms

There are many growth strategies for organic and acquisitive growth ndash and no easy answer for which is right for your firm To shine a light on the subject wersquove spoken both to SME and top 100 firms about growth and how to do it (and importantly how not to do it)

MAMMOTH

LEGAL PRACTICE MANAGEMENT32

SEPTEMBER 2016FEATURES

MODELS OF GROWTH According to the Lawyer the two fastest growing firms in the top 200 this year are Midlands-based Knights and lsquodistributedrsquo firm Keystone Law ndash currently placed 119 and 122 in the 2015 UK 200 rankings but whose revenue will now put them well inside the 2016 top 100 (due for release October 2016) Both attribute their growth to non-traditional business models ndash and very different non-traditional models at that

Knights corporatised in 2014 to remove the barriers from its decision making processes which CEO David Beech says has been the key to its growth ldquoEquity partnerships donrsquot grow particularly quickly because itrsquos hard to achieve consensus and make decisions that enable fundamental or rapid growth among equity partnersrdquo

Knights acquired Oxford-based Darbys earlier this year ndash a move largely behind the revenue increase that will put them in the top 100 ndash and completed the transition inside three months which Beech says would have been next to impossible under their old business structure ldquoNot only was a quick turnaround good for the books it saved significant time and money that could be invested elsewhere in the businessrdquo he says

Top 100 firm Simpson Millar is one step

ahead of Knights The firm broke the glass ceiling to become a top 100 firm in 2015 and like Knights the firm attributes its growing success to corporatisation ndash but in a different manner

It sought to be and was eventually acquired by PLC Fairpoint Group in 2014 Simpson Millar continues to run as an LLP under the same management team and existing trading brands but as a business unit within Fairpoint

Managing partner Peter Watson says that one of the key reasons to pursue this particular growth strategy was to provide an injection of capital for MampA ldquoWe completed the sizeable acquisition of Colemans last year for example which we were only able to do with considerable investment from Fairpointrdquo

Being part of a PLC has also given the firm access to strong MampA and project management capabilities ldquoAcquiring Colemans doubled the business overnight ndash for something like that you need strong MampA experience and access to that team within Fairpoint was crucial in getting the deal across the linerdquo says Watson Simpson Millar also built a strong digital strategy launched new products and focused on pricing ldquoCall it fixed fees or packaged fees the point of it was to say to consumers

Square One Law

Revenue pound5m

31 fee earners 53 total staff

Offices Newcastle-upon-Tyne

Specialisms Commercial corporate property employment EU and competition law finance litigation private client

LPM FACT FILE

Knights

Revenue pound40m (year end 2017)

375 fee earners 450 total staff

Offices Chester Cheltenham Newcastle-under-Lyme Derby Oxford Hale

Specialisms Full service firm

LPM FACT FILE

LEGAL PRACTICE MANAGEMENT33

SEPTEMBER 2016FEATURES

lsquoWith us you know exactly what yoursquoll get and how much itrsquoll costrsquordquo

PEOPLE PLEASERSThe ability to implement change has also been an important part of delivering a growth strategy This isnrsquot necessarily surprising ndash polling at the 2016 Legal Practice Management conference showed that legal business managers thought it was one of the greatest hurdles to a firmrsquos growth or success only topped by acquiring high-quality staff In Knightsrsquo case the two challenges were addressed together Beech says Knightsrsquo corporate rather than partnership structure also allows it to recruit talented people without having to deal with the inherent politics of an equity partnership

ldquoAcquiring the best talent has been a central part of our growth strategy ndash if a candidate can help the business through expertise or client following we can just recruit themrdquo he added

But a successful growth strategy incorporating talent isnrsquot just about recruiting quickly as we analysed in the July 2016 issue of LPM ndash itrsquos about recruiting well Firms also need to make themselves an attractive prospect for legal talent in order to grow

William Robins operations director at Keystone Law says his firmrsquos lsquodispersedrsquo model allows it to do that by offering new fee earners the chance to work remotely with less supervision ldquoWersquore typically hiring about a lawyer a week ndash bringing their expertise fee-earning capability and client following with them ndash and that is the core part of our growth strategyrdquo The firm has buttressed its recruitment capability by hiring a director of recruitment to focus almost entirely on lawyer enrolment (recruiting talent to recruit talent ndash neat)

Though the distributed model may not be for everyone says Robins implementing some form of flexible mobile or remote working should be part of any firmrsquos growth strategy because it allows firms to increase their fee-earning capability without accruing fixed overheads such as office premises

And there are other ways to be talent-attractive As a core part of its growth strategy Newcastle-based firm Square One Law ndash which achieved 30 growth in the

last financial year ndash has pledged to create a supportive and inspirational team environment offering high-calibre work to attract the best talent Ian Gilthorpe senior partner at Square One says ldquoGood people want to be inspired to be valued for what they do and feel as though theyrsquore making a contribution The key is to engage with all your staff to facilitate a culture where staff feel happy at work work for each other trust each other and ensure that they see the value in what they do ndash if you do that more talent will comerdquo

He added that itrsquos important for

recruitment to convey staff satisfaction to the outside world which Square One has achieved by including staff video-testimonials on its website

But recruiting is only half of an effective people strategy ndash the other is retention Simpson Millar has attempted to create an environment that its talented staff wonrsquot want to leave Says Watson ldquoToo many firms worry about what will happen if their rainmaker goes somewhere else and takes clients with them ndash so they put the shackles on make them feel unhappy and make it so that they canrsquot realise their full potentialrdquo Creating such an environment makes firms an attractive target for lateral hires when they should be building a place people want to join

PRACTICE AREASSME legal businesses donrsquot necessarily need to change their business models completely to achieve the same growth as

Thorntons

Revenue pound20m

209 fee earners 430 total staff

Offices Dundee Edinburgh St Andrews Perth Cupcar Kirkcaldy Anstruther Arbroath Montrose Forfar

Specialisms Full service firm

Keystone

Revenue pound202m

198 fee earners 230 total staff

Offices London Bristol Isle of Man Australia

Specialisms Corporate and commercial dispute resolution property

LPM FACT FILE

LPM FACT FILE

Equity partnerships donrsquot grow particularly quickly because itrsquos hard to achieve consensus and make decisions that enable fundamental or rapid growth among equity partners David Beech CEO Knights

Simpson Millar

Revenue pound316m

322 fee earners 539 total staff

Offices Birmingham Bristol Cardiff Cheadle Hulme Gateshead Kingston-upon-Thames Lancaster Leeds Park Place Leeds St Pauls Street (head office) London Manchester Newcastle

Specialisms Full service firm

LPM FACT FILE

LEGAL PRACTICE MANAGEMENT34

SEPTEMBER 2016FEATURES

our examples but removing blockers from decision-making making themselves more attractive to talent and finding the right funding for growth are increasingly important and the partnership structure may not enable it

But of course that means asking some turkeys to vote in a Yuletide election Fortunately there are other ways to achieve impressive growth mainly investment andor expansion into new geographic or practice areas

Watson says that Simpson Millar wouldnrsquot have been an attractive prospect to Fairpoint had the firm not spent time growing organically by expanding into new areas of law

ldquoWe went from being a predominantly trade union PI firm to having a broad base of 16 types of work ndash with strong heads in charge of each committed to driving growth in their departments ndash which gave us a large boost in revenuerdquo The firm achieved this through small acquisitions of other firms that had expertise in particularly lucrative areas of law

But firms shouldnrsquot just look at expanding in lucrative areas ndash they should focus on areas where their reputations deliver an advantage Scotlandrsquos Thorntons for example ndash which last year leapt from 134 to 108 in the 2015 UK 200 rankings ndash invested in six departments as part of its growth strategy

Thorntons joint managing partner Scott Milne says ldquoWe didnrsquot exclude other areas but we saw that these areas were profitable and that more importantly we had considerable expertise in them ndash we also considered that these are areas that are unlikely to be affected by future economic downturnrdquo This included investing in niche areas of law where the firm has a geographic competitive advantage ldquoWersquore lucky to be surrounded by some of the best farmland in the UK ndash wersquore well known for our expertise in rural business law which is why we invested heavily in itrdquo

ORGANIC V ACQUISITIONIn several ways choosing an effective growth strategy very much boils down to MampA versus organic growth ndash every business model talent or area expansion strategy appears to revolve around one or both But which is the best to achieve the kind of growth thatrsquoll propel firms to a lsquohockey stickrsquo on their revenue forecasts The short answer is it depends on whatrsquos best for a firm at a given time It either

needs to fit the firm ndash or the firm needs to change to fit the goal

Beech says that acquisition has been excellent for Knights because itrsquos a fast and effective form of expansion ndash the acquisition of Darbys more than doubled its revenue But MampA poses a significant challenge to finding firms with the right cultural fit

ldquoFirms need to establish a single culture in order to implement growth ndash everyone needs to be working towards the same goalrdquo He added that when a firm completes a merger or acquisition that firm has to be integrated from day one which is much more difficult if it has a significantly different culture Knights is planning to continue recruiting and complete more acquisitions in the next year to maintain the growth curve

Of course the big problem with acquisition is money Robins at Keystone says his firm lies at the opposite end of this

INFORMATION IS EMPOWERING

Lemington Spa-based firm Wright Hassall has a specific goal of breaking into the top 100 and as part of its growth strategy expanded into areas of the UK where its expertise is highly sought after ndash using customer relationship management in the background to underpin the firmrsquos activities in specific areas Martyn Wells IT director at the firm says ldquoWersquove zoomed in on specific industry sectors that we know are performing well in the Midlands sectors where we have a superb reputationrdquo Expanding geographically as Wells outlines needs data to get right Thorntons for example identified various lsquomicro-marketsrsquo in Scotland close to its base of operations ldquoWe acquired a firm in St Andrews because itrsquos like a micro-economy (or micro-market) that doesnrsquot seem to be affected by price drops in the residential market elsewhererdquo says Thorntons joint managing partner Scott Milne Knights has another take on the geographic targeting idea ndash it intends to stay out of the large cities (London Manchester Leeds for example) and expand into areas where there is little competition As David Beech CEO at Knights explains ldquoLast September we acquired a small team in Chester of about 11 lawyers and now thatrsquos expanded to just over 70 ndash and the main reason wersquove been able to do that is because there isnrsquot a lot of competition thererdquoUltimately this all comes down to research finding out what to invest in or where to expand and perhaps most importantly finding out what clients want

LEGAL PRACTICE MANAGEMENT35

SEPTEMBER 2016FEATURES

spectrum to the way Knights has grown emphasising organic growth finding innovative means to attract talent using technology to drive efficiency and branching out into new areas of law or new markets to achieve significant growth

Square One Law also espouses the organic route ndash believing that firms with growth in mind should focus on ensuring their external brand reflects the businessrsquos internal culture and behaviours of its team creating lsquosynergyrsquo between the business and its clients

Gilthorpe says ldquoMergers ndash and there is no such thing as a true merger ndash and acquisitions can be a distraction as you look to create a new culture and separate the wheat from the chaff and this can soak up a lot of energy that would otherwise be put to use in driving the progression of the business and the focus on client servicerdquo

The best option for some firms may be a

calculated combination of MampA and organic Thorntons for example having made several acquisitions is now focusing on organic growth moving away from geographical expansion and towards developing locations and its brand

Watson at Simpson Millar sums the mixed approach up thus ldquoItrsquos a mixture Acquisition is still very much a part of the mix but in parallel to that itrsquos important to demonstrate that yoursquore developing ongoing work rather than being driven solely by acquisitionrdquo

There are clearly many different ways to achieve healthy and assertive growth though there are no easy answers as to which way is right for your firm But it is clear that growth doesnrsquot have to happen in the ways many have previously achieved it ndash innovation and lateral thinking are the means of achieving significant growth (which might one day propel you into the top 100 you never know) LPM

LEGAL PRACTICE MANAGEMENT36

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

INDUSTRY VIEWS

36LEGAL PRACTICE MANAGEMENT

Legal is becoming an ever more digital industry giving firms the chance to become more efficient flexible agile and collaborative

INDUSTRY VIEWS INDEX

ONLINEOFFICES

36

SPONSORED EDITORIAL

INDUSTRY VIEWS

37 INTERVIEW

Paperless processLinetimersquos Tony Klejnow explains the benefits of using matter management software for law firms and their clients

39 INTERVIEW

Virtual expansionNigel Redwood Nasstarrsquos CEO talks about the advantages of having a managed flexible IT infrastructure

LEGAL PRACTICE MANAGEMENT37

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT37

Competition and price pressures and an increasingly digital client base are all significant drivers for law firms to become paperless

businesses Tony Klejnow Linetimersquos managing director says firms could achieve competitive advantage by introducing paperless solutions across their businesses ndash but a particular lsquoeasy winrsquo area is matter management

ldquoFee earners are required to keep detailed records of their cases but the amount of time and money they waste physically printing filing looking for collaborating on and updating files is alarmingrdquo says Klejnow Law firms have traditionally been reluctant to adopt paperless

workflow solutions he adds because workflow doesnrsquot apply to 99 of fee earnersrsquo work ldquoBut if they adopted paperless solutions in their back office processes they could reduce costs without affecting client service boost productivity and promote collaboration ndash making them more efficient flexible and cost effective and making them more competitive in an ever-changing legal marketrdquo

MATTER MATTERSDocument and matter management tools ndash like those in Linetimersquos legal software product Liberate ndash electronically store and organise all case documentation in an online database Klejnow says that there are two immediate benefits of paperless matter

PAPERLESS PROCESS

Tony Klejnow managing director at Linetime talks to LPM about the benefits of the paperless office ndash starting with filing and back office processes

INDUSTRY VIEWS

Linetime is a specialist provider of Microsoft-based practice and case management solutions Clients include mid-tier law firms and in-house legal departmentswwwlinetimecouk

ABOUT THE SPONSOR

SPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT38

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT 38

management The first is reducing paper and storage costs

ldquoIf case documentation is electronically stored once a case is finished you no longer have a five-inches-thick file that has to be stored for six years ndash which has to reside somewhere and costs firms time space and moneyrdquo The second is eliminating filing time ndash for example instead of printing and filing emails and attachments fee earners drag and drop emails directly from Outlook into the database ldquoand attachments are automatically stripped from emails and appropriately filedrdquo says Klejnow

And Klejnow says paperless filing systems donrsquot just facilitate efficiency this way ndash they also improve general process efficiency by facilitating collaboration between fee earners Solicitors can use document and matter management to view and work on matters at the same time a difficult if not impossible prospect when working with paper files Klejnow says ldquoWithout document management legal professionals work in silos but with it they immediately share datardquo He adds that Liberate has an additional collaboration tool to help further improve collaborative efficiency in firms ldquoIf I choose to lsquocollaboratersquo a document with you on Liberate Outlook will prompt you to review that document by simply acknowledging the notificationrdquo

In this respect moving to become a paperless business provides greater flexibility for fee earners who can collaborate with colleagues working remotely or in different offices Klejnow says ldquoPaper files can only reside in one location but electronic files can be accessed from any office and when working from home or with clientsrdquo On the other side of the coin having digital files maintains a greater level of productivity in a law firm office ldquoIf your colleague is absent from the office you can easily find documents that you might have otherwise wasted a significant portion of your day looking forrdquo he adds

Improved external collaboration is also a benefit that firms can reap from paperless matter management With an electronic system you can go into a case history bundle documents into one PDF file and quickly submit that to the third party improving collaboration between fee earners and clients who want to do everything online This has the added benefit of improving accuracy and facilitating greater efficiency by involving clients in the process ldquoGood matter management software should also let you push e-forms to clients to be filled in and that information is automatically transferred straight to the online database ndash which saves fee earners

time and is a more accurate because the information doesnrsquot have to be constantly re-enteredrdquo says Klejnow

This extra level of collaboration within legal businesses that hasnrsquot been possible until now has long been needed because it improves efficiency and productivity which makes the business more profitable and competitive Klejnow adds that what firms save by adopting matter management they should reinvest in becoming fully paperless digital businesses

ldquoCase management solutions can improve efficiency to an even greater extent and keep firms competitive in the age of the alternative business structuresrdquo

VISIBLE COMPLIANCEIn response to firms reluctant to adopt paperless technologies like document and matter management for fear of losing delicate information to cybercriminals Klejnow says those systems provide an additional level of security ldquoTaking data and attachments out of Outlook and storing them on a database is much more secure than leaving them on your hard drive If you leave

your laptop on a train for example all your important data is safely stored on a server and not instantly accessible by opportunist criminalsrdquo

Document and matter management also offers a greater level of security in fee earner and client communications ldquoIf I want you to check that the data we have for you is accurate Liberate will

direct you to a page holding your data and at the same time it will push out an SMS text with a pin code to your phone Unless you input the code you canrsquot get to the web page ndash which means if one of your solicitors accidentally sends an email to the wrong person or itrsquos intercepted it doesnrsquot matter The data stays safe ndash this level of security is crucial in this age of cybercrimerdquo

These security features clearly have significant benefits for compliance which is important in a market increasingly dictated by regulation including the relatively new General Data Protection Regulation says Klejnow

ldquoCompliance officers need to be seen by regulators to have monitored and reviewed everything thatrsquos happened in their firm which is considerably easier with a paperless system Liberate has lsquoversion controlrsquo which allows compliance officers to keep tabs on every change made to a document as well as a compliance module which lets them view whatrsquos happening on a case (to ensure that money laundering checks have been carried out and so on) and records the fact that yoursquove reviewed thisrdquo LPM

Without document management legal professionals work in silos but with it they immediately share data

INTERVIEW

LEGAL PRACTICE MANAGEMENT39

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LPM readers may already know the Nasstar Group ndash but by a different name Nasstar was launched by regular LPM-contributor e-knownet to consolidate four discrete hosted

managed IT businesses (including e-knownet) after a period of significant acquisition Nigel Redwood chief executive officer at Nasstar says merger and acquisition and consolidating brands is challenging but having a flexible hosted IT infrastructure makes the process significantly easier

ldquoManaged IT services are enormously beneficial for firms that are expanding or consolidating particularly after MampA in terms of time and productivity cost savings and flexibilityrdquo He adds that by just having managed desktops firms can attain competitive advantage by reducing overheads and becoming more flexible and agile

Nasstar has experience helping SME firms with their IT systems after MampA and knows what problems to look out for creating unity among staff used to using different systems and processes the cost and time it takes to expand an IT infrastructure and the geographic distance between new offices

Redwood says that MampA can be an excellent way for legal businesses to expand into new sectors but that consolidating new departments using different IT systems and processes is challenging

ldquoOur acquisitions for example introduced new sector focuses for us in the SME legal market ndash wersquove consolidated these into a wider service base under Nasstar and facilitated unity among staff using virtual IT solutions

rdquoVirtual IT solutions help facilitate unity across the business by providing a level of consistency in an IT infrastructure Everyone immediately uses the same applications on the same versions from wherever theyrsquore working creating unity faster collaboration across teams and effective information sharingrdquo Hosted IT infrastructures are also continually updated giving staff instant access to new updates applications and technologies as they become available

The next significant challenge firms face after MampA is expanding their IT infrastructure to accommodate an influx of new staff ndash but Redwood says virtual IT solutions let firms expand their IT infrastructure at the flick of a switch

ldquoWith virtual IT firms arenrsquot held back by the size of their servers or the amount of computer power theyrsquove got ndash they simply call their IT provider and ask for an upgrade when previously theyrsquod have been

subject to lengthy and costly IT upgradesrdquo Virtual IT solutions are also easy to budget for

Redwood says ldquoYoursquore not going to be surprised by an increased fixed asset expenditure ndash services like those offered by Nasstar are an operational cost and fixed per user per month through a scalable cost modelrdquo

Geographic distance inhibiting collaboration between merged offices is also a key consideration for firms after MampA but virtual IT solutions solve this problem Redwood says a virtual IT infrastructure can minimise travel through the use of hosted virtual meeting rooms and video technology Staff can use this technology from virtually anywhere which is why it also lends itself well to remote flexible or mobile working set-ups

VIRTUAL WORKPLACERemote working is becoming an increasingly present feature of the legal landscape because of its cost saving and recruitment and retention advantages ndash the majority of firms at the LPM conference 2016 were moving towards a flexible remote or mobile working set-up or already had one

Redwood says virtual IT solutions better enable staff who work remotely ldquoHosted managed desktop solutions for example let staff work with the same applications from any device in the world safely and securelyrdquo

But remote working isnrsquot only about enabling the current workforce itrsquos about attracting future talent Redwood says that millennials donrsquot necessarily want to work as their predecessors did ndash they expect greater flexibility in the workplace which at one level can be achieved by remote working facilitated by a managed desktop

ldquoAnd itrsquos not only about attracting millennialsrdquo he says ldquoSME firms with flexible working set-ups are becoming more attractive to experienced legal talent who may be frustrated by the rigidity of their firmrdquo As a firm expands its workforce in this manner firms with virtual IT solutions reap the lsquodoublersquo cost saving benefits of not having to expand their premises or IT infrastructure accordingly

Some firms are resistant to remote working based on hosted IT services believing they arenrsquot secure ndash but Redwood says that argument ldquocan be put to bedrdquo

ldquoFor an in-house IT team to have the level of security that an organisation like ours can deliver is near impossible financially as well as in terms of the

VIRTUALSANITYNigel Redwood CEO at Nasstar talks to LPM about how managed IT can help SME firms achieve competitive advantage by making them more agile and flexible

LEGAL PRACTICE MANAGEMENT40

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

INTERVIEW

level of systems and technologies they deployrdquo Cybercrime is of course a scary and constantly evolving threat but Redwood points out that virtual IT systems have dedicated teams monitoring these threats evolving cyber defences and changing systems accordingly

ldquoThis capability not only makes [firms] a lot more secure but gives peace of mind in terms of compliancerdquo

ONLINE ADVANTAGE Redwood says virtual IT infrastructures donrsquot just pertain to lsquobig lawrsquo but to SME firms as well ndash perhaps more so

ldquoVirtual IT systems are a way for SME firms to stay competitive against their larger

counterparts and ABSs ndash it gives them a greater ability to expand it lets them adopt more flexible and agile models and is easy to budget forrdquo Firms can also expect virtual IT solutions to enable better alignment of IT resources to business needs enhanced usability with anywhere anytime access and in-built business continuity

But the greatest advantage virtual IT offers SME firms over big law is agility Redwood says ldquoBig IT departments in firms can be slow to react cumbersome and held back by the limitations of hardware infrastructure and security issues ndash all of that is removed with a solution like ours and the customer has access to fast-moving agile ITrdquo LPM

ABOUT THE SPONSOR

Nasstar is a provider of managed IT services and tailor-made cloud hosted solutions ndash delivering innovative secure and agile IT to help clients accomplish their business objectiveswwwnasstarcom

Page 13: LPM September 2016

LEGAL PRACTICE MANAGEMENT14

SEPTEMBER 2016COLUMNS

In the April issue of LPM Stepien Lakersquos practice director Richard Hill brilliantly spelled out what to look for when trying to spot a lsquowhalersquo or big lsquophishrsquo ndash a situation where an

individual or firm is targeted researched and then duped into sending money to a cyber attacker

But just as awareness is essential so too is preparedness I thought it might be helpful to share some of the practical considerations that will help keep client funds safe (a requirement of principle 10 in the SRA handbook) including some things wersquove done in our firm in response to these very real threats

Perhaps the most feared event among all law firms is the very well-publicised lsquointercepted emailrsquo (dubbed the lsquoFriday fraudrsquo) But would we be surprised by just how many firms lawyers and clients freely provide bank details within the body of text in an email

This is an area where we recently tightened our procedures and introduced an explicit rule all bank details provided by a client especially in any email communication must be verified by a lawyer (by reconfirming those details with a person they know) The lawyer then signs to say that they have checked them

This has produced some unexpected benefits particularly for one client who provided bank details to us within the body of an email for remitting the proceeds of sale for his family business of pound32m When the lawyer contacted him to verify that the bank details were correct the client realised that he had transposed two numbers

Clearly this is a serious education piece not only for those responsible for finance and the lawyers within the firm but externally for the firmrsquos clients

There are a number of practical points to bear in mind when it comes to day-to-day security matters how do your lawyers communicate the client account details to its clients and do you always attempt to obtain client details for the remittance of funds at the start of the transaction for instance

Additional considerations might be when did you last review any bank payment elements in your email disclaimers terms of business and client care letters Is your payment procedure well-defined and documented (not just the finance element but also those relevant to clients and lawyers) And do you use any law firm identification checklists

These important issues should remain on the agenda so that theyrsquore constantly in colleaguesrsquo minds with regard to maintaining safe and efficient practices

There are some excellent resources available from your bank that can help to educate your colleagues and there are so many simple steps we can all take to make people aware of the problem Have you tried sending a few test phishing emails to individuals within the firm for

GLYN MORRIS FINANCE DIRECTOR

ABOUTexample to see how they respond

But what then If you are confronted with the metaphorical warning cry of lsquothar she blowsrsquo how will you and your people react You may need to have created a well-communicated process for dealing with a phishing incident

The 1851 classic Moby Dick tells the story of one manrsquos obsessive quest for revenge on a giant white whale ndash we might want to take just a hint of Ahabrsquos obsession in our approach to tackling the issue of cyber attacks Although if we can avoid the whale in the first place all the better LPM

THAR SHE BLOWS

Glyn MorrisFinance director Higgs amp Sonswwwhiggsandsonscouk

0800 328 0272 | wwwarchivestoragenet

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LEGAL PRACTICE MANAGEMENT16

SEPTEMBER 2016COLUMNSSPONSORED EDITORIAL

DOUG HARGROVE THE TECHNOLOGIST

DISRUPTION TO GO

ABOUT Change isnrsquot anything new itrsquos just another word for evolution But lsquodisruptionrsquo is certainly one of the words of the decade and one that is

usually connected to revolution ndash a significant alteration to the status quo and one that has far more immediate impacts

Disruption is also the go-to word for business commentators ndash especially when it comes to lsquodisruptive techrsquo ndash talking about new business start-ups or innovations Take the very latest craze to hit the headlines ndash Pokeacutemon Go has seemingly gripped the world these last few weeks with stock valuations heading skyward and comments about the app lsquodisruptingrsquo mobile gaming But therersquos nothing disruptive about the game it takes and utilises technology thatrsquos been around for nearly a decade (geolocation and augmented reality) and applies it in a new way Itrsquos that application of technology thatrsquos causing the disruption

Businesses like Uber and Netflix have built compelling business models on the groundwork of technology that is now pervasive (the smartphone and broadband internet respectively) Therersquos a lot here that firms can learn from itrsquos not necessarily about inventing new technology but about finding ways to use existing technology to create a new approach

So what opportunities are there for law firms to disrupt This can be looked at in two ways ndash disruption to the existing law firm business model and disruption to the user experience The first scenario has already been covered at length and is nothing new for the legal market there are already plenty of law firms out there

looking to change the way a law firm delivers its services to its clients and prospects ndash from franchise models to virtualised law firms Disruption to the law firm business model has been an ongoing force ever since the term ABS became associated with legal practices

The second scenario is a different matter It seems legal clients have been patiently waiting for the lsquodisruptive service deliveryrsquo model to come and there is plenty of opportunity out there for firms to position themselves differently with the modern consumer of legal services

Take a brief example of where old (or rather existing) technology can be used to differentiate ndash videoconferencing Itrsquos a fairly ubiquitous piece of technology thanks to the rise of Skype Facetime and the webcam which gives an instant user experience and a one-to-one connection that bridges the remoteness of a phone call and the need to travel for a meeting It doesnrsquot take much of a leap to imagine a service that allows consumers to access a lawyer instantly using this technology (maybe even a concept that combines the franchise model with an Uber-style app ndash connecting clients to the next available expert from a selection of associated law firms) The point is you donrsquot have to invent something new to be a disrupter ndash donrsquot be afraid to take existing technology and repurpose it to gain a competitive advantage

There are plenty of consumers of legal services who are willing to try out a new service or offering in the search for that great new experience ndash and for those law firms prepared to take the risk and disrupt there really is an opportunity to catch lsquoem all LPM

Advanced LegalRevolutionary solutions for legal services Contact Doug on 01476 573 718wwwadvanced-legalcouk

Advisory

Design

Development

Delivery

Support

If you would like to know morethen please get in touch

wwwsoftclcominfosoftclcomFREEPHONE 0808 164 0000

Leeds office15 St Pauls Street Leeds LS1 2JG

Manchester officeExchange Quay Building 8 Suite 21 Salford Manchester M5 3EJ

Helping Law Firms to improve business performance through their use of IT

C

M

Y

CM

MY

CY

CMY

K

SoftwareCloud_A4_Advert_V4pdf 1 20082016 1130

LEGAL PRACTICE MANAGEMENT18

SEPTEMBER 2016COLUMNS

JANINE PARKER THE BROKER

WHAT PRICE EXCLUSIVITY

Itrsquos that wonderful time of year when the annual bombardment of brokers begins on your never-silent telephones All of them can ldquocarry out a full market exerciserdquo for you that will of course save you money

But whatrsquos the reality The marketplace is still murky and as a profession we donrsquot help ourselves by keeping it opaque So letrsquos objectively consider many of the claims brokers make attempt to clarify the true mechanics behind the market and consider how to best utilise it for the benefit of your firm

Since 2000 and the demise of the Solicitors Indemnity Fund competition for solicitors professional indemnity has increased This hasnrsquot always been generated through the number of insurers but the ever-increasing number of brokers who purport to be experts in this very niche area of insurance This has increased pressure on insurers to lower prices (a good thing for clients up to a certain point) but this pressure combined with some extreme economic factors has contributed to many insurers withdrawing from the market over the past decade

Competition is good for consumers and it encourages innovation to make sure that brokers and insurers can differentiate themselves by developing their product offering

Some brokers organise lsquoexclusiversquo arrangements with insurers often segmented by the number of partners within the firm ndash which is a very artificial way of dividing up the profession But this is the marketplace wersquore in today and itrsquos worth looking a little closer at these lsquoexclusivesrsquo

All the direct access points are listed in the Law Society buyer guide and in practice itrsquos only a handful of brokers who actually hold the exclusive with direct access to the underwriters It is essential to note that these exclusive agreements are not always lsquotiedrsquo arrangements The broker is not bound to place all their business with their one exclusive insurer and itrsquos often the case that those brokers who hold the exclusive arrangement also enjoy strong relationships with the open market insurers

To increase distribution brokers who hold exclusive arrangements will offer access to other brokers who wish to take advantage of the exclusive products available These brokers donrsquot have their own facilities There are many commercial reasons for opening an exclusive to other brokers but itrsquos important to note that the extra broker in the chain will dilute your relationship with the placing broker and ultimately your insurer Marketing materials can often be unclear as access to exclusives is readily used ndash but in reality these brokers will be approaching another broker to do this

Often law firms will be unaware of the number of brokers in the chain and will unwittingly be paying additional brokerage and fees unnecessarily Direct access allows for better communication between your firm and insurers which can often lead to more competitive pricing Removing a broker from the chain can lead to the process of claims handling being more efficient and effective as there are less obstacles in the chain of communication

In summary no one broker has direct access to every insurer and it is possible to approach more than one broker and not be at risk of flooding the market If using more than one broker be clear who you would like them to approach and be aware whether they have to go through another broker to ultimately reach the insurer LPM

ABOUT

SPONSORED EDITORIAL

ParagonBetter broking for legalContact Janine on 020 7280 8200wwwparagonbrokerscom

LPMLEGAL PRACTICE MANAGEMENT

SUPPLEMENT SEPTEMBER 2016

BUSINESS INFORMATION FOR EVERYONE IN PRACTICE MANAGEMENT

LPM INSIGHTS

Sponsored by

How do SME law firm management leaders see the future

LEGAL PRACTICE MANAGEMENT20

SEPTEMBER 2016LPM INSIGHTS

ALL CHANGE

22WHATrsquoS NEXT We analyse the 2016 LPM conference polling data

2 1 COMMENT Accesspointrsquos Richard Roebuck on legalrsquos increasing digital dangers

Change and transformation are words that strike fear into the most hardened of legal management hearts because they are hard to do and even

harder to make stick But change must happen inside todayrsquos SME law firms to make sure they stay in business in tomorrowrsquos world

At this yearrsquos Legal Practice Management conference in London we polled our audience of law firm management delegates on a range of topics Some questions wersquove been asking since our first LPM conference back in the misty era of 2012 Much has changed in the world since then (new UK governments drones are now lsquoa thingrsquo Donald Trump) but legal not so much The rise of the ABS has been slow (though impactful) and the recession has for many businesses faded into a distant memory compared to the Brexit debate

But SME law firms rightly smell a real need for change in the wind ndash and perhaps though they seem to find it hard to name that change the clues are legion Letrsquos find some

LPM London 2016 delegates named the greatest hurdles to their firmsrsquo growth or further success as lsquoacquiring high-quality staffrsquo and the lsquoinability to create change within the firmrsquo Might the solution to one lie in the other Great talent wants to flock to fresh and vigorous businesses and younger legal eagles are increasingly shy of throwing their lots in with the fusty world of partnership Law firm leaders must look at how their businesses are run and who runs them and how people work if they are to attract great people ndash and in doing so they will create the change they seek

Herersquos another 52 of delegates named lsquoclient pressures on costrsquo the factor thatrsquos having the biggest impact on the SME legal market ndash but when asked how important price is when winning business 67 said itrsquos just lsquoone of a range of important factorsrsquo while 21 said itrsquos lsquonot as important as other things such as relationshipsrsquo This is a disparity I canrsquot quite understand but it doesnrsquot sound like the SME legal market truly gets the shift thatrsquos happening on the client side and how much change needs to happen inside firms to meet this challenge

Read on and come to your own conclusions but I think the clues are now becoming obvious I hope your firm sees them too LPM

Rupert Collins-White editor-in-chiefLPMmag | rupertwlsncouk

You donrsquot as the song goes need to be a weatherman to know which way the wind is blowing in the legal market ndash but just because the clues are there doesnrsquot mean you can be complacent about acting on them

CONTENTS

FEATURES

LEGAL PRACTICE MANAGEMENT21

SEPTEMBER 2016LPM INSIGHTS

MORE TECHMORE SECURITY

INTRODUCTION TO THE RESEARCH FROM OUR SPONSOR RICHARD ROEBUCK MANAGING DIRECTOR ACCESSPOINT

After a recent period of uncertainty it would now seem that most firms are confident about their future especially in light of Brexit Whatrsquos also certain is

that most firms are very conscious that to compete they will need to change and adapt themselves for the challenges ahead

With growing concerns about the lack of high-quality people available and what appears to be a reliance on quality individuals driving more lucrative fee-earning work is it time for a gear change

Perhaps the dawn of high-volume low-margin fixed fee work which many firms feared has now arrived As always with change there are challenges to be faced but for those clever early adopters there lies opportunity Making light of the more process-driven tasks and finding more effective efficient ways of completion to deliver client-facing benefits seems key to the wider future of the fixed fee legal landscape

With the growing acceptance of cloud technology and the increasing introduction of new software applications and solutions the legal world has moved on at an improved pace this past couple of years And the world is now clearly keen for more ndash to satisfy its desire for a more accessible and mobile working environment What is key for this trend is that the lsquoquality of the deliverablersquo has an ongoing programme of improvement that benefits both the firm and its clients

As progress pulls us forward there will always be elements arrayed against us Alongside the opportunities hiding in the polling from LPM this year therersquos also a sense of fear and concern around possibly the biggest threat to risk and security there is right now ndash the dark byproduct of technological success cybercrime

Cybercrime is fast growing with ever more complex attacks making headlines It is now one of the most common criminal offences in the UK An increasing number of individuals are exploiting the speed and anonymity of the internet to commit a wide range of criminal activities having no conscience and knowing no borders

It isnrsquot our fault websites get hacked but poor internet safety habits can put us at risk Reusing passwords or using weak passwords make us easy targets for identity theft Remembering multiple passwords can be a pain but there are web services and associated applications that can help such as two factor authentication quality mail management systems URL threat protection and mail encryption

For many firms the biggest threats tend to be by way of the ever-open door into our networks and devices ndash email

Our eagerness to respond almost instantly to emails throughout what will be for most an already pressured day is perhaps the dominant daily activity to foster an unwanted lapse in security In the past 18 months alone I have seen three firms that were truly caught out ndash some with the potential for significant financial penalty by opening email attachments The most common lsquogotcharsquo is an email that appears to have come from the office scanning platform whereby the email address has been cleverly spoofed to appear legitimate (for example downstairscopiermyfirmdomaincouk) There are so many existing and newly circulating threats of this calibre and type that even the most aggressive of filtering systems struggle to keep up

Do you know the name(s) of your copiers and the associated email addresses Do you stop to think before opening the innocuous Word attachment ldquoDoesnrsquot our scanner usually send PDF files Why has a covering note not been included with the attachmentrdquo Stop think and call for advice

Another infamous scam is the spoofing of email addresses of key people within your firm ndash for example an email to the head of accounts appears to be from the senior partner ldquoPlease send pound17000 to account X at your earliest convenience and confirm once processedrdquo it says Stop ndash is this your agreed process

As the demand grows and we extend our reach out into the online world so cybercrime advances ever closer seeking unauthorised access through our front door Quite clearly online is the future but we need to embrace it with the necessary skill sets and processes in place for our convenience wellbeing and prosperity LPM

There are so many existing and newly circulating threats of this calibre and type that even the most aggressive of filtering systems struggle to keep up

Accesspoint are independent legal IT specialists who consult on a variety of information technology-related issues offering the best in IT solutions to help firms work more effectively

Contact Richard and the team on 0203 189 2645wwwtheaccesspointcouk

LEGAL PRACTICE MANAGEMENT22

SEPTEMBER 2016LPM INSIGHTS

SME law firms are in a battle for survival Whether they know it or not they have huge challenges to face in the next few years ndash around succession planning technology replacing lawyers and being

used by competitors to attain a competitive edge and catering to clients who increasingly want cost predictability transparency and availability

These market pressures were addressed at the LPM conference in May 2016 which was attended by over 100 delegates all SME legal management leaders The delegates were polled on the day about what they thought of the pressures facing them and how theyrsquore planning to overcome them ndash and their answers provide valuable insight into the SME legal market

The polling results show that LPM conference delegates were aware of the severity of the challenges they face Three-quarters of legal management leaders we polled at the 2016 LPM conference thought that the challenges theyrsquoll face in the next five to 10 years will be lsquomorersquo or lsquomuch morersquo serious than in past years And 58 of delegates thought that the challenges in the next year to two years will be lsquomore serious than in past yearsrsquo

How they will face these challenges depends at least partly on attitude ndash whether they believe they can win or will eventually lose the war Fortunately most LPM conference delegates were optimistic about their firmsrsquo futures - 81 were either lsquocautiouslyrsquo or lsquoveryrsquo optimistic about their place in the legal market of the future

This doesnrsquot necessarily suggest that theyrsquore confident in the market overall particularly after the market instability brought by Brexit Legal management leaders might believe their firm is the only one thatrsquoll survive due to expertise in a particular area or niche In any case it indicates market confidence and a confidence in the ability of their firm to compete and succeed

But is this optimism misplaced in a market where the future is increasingly uncertain and competitive Are firms really ready for change on a huge scale as their confidence might suggest What are the issues currently keeping SME legal leaders awake at night

In this report LPM shines a light on the SME legal market through the eyes of our legal management leader audience ndash those driving their firms through an uncertain new world

WHATrsquoS NEXTChange is on the agenda for LPM firms but how to address the biggest challenges and which ones to face first is a tough call finds Patrick Wingrove

More serious than in past yearsMuch more serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch less serious than in past years

51

14

8

3

24

More serious than in past yearsMuch more serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch less serious than in past years

How would you rate the challenges your firm faces in the next five to 10 years

More serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch more serious than in past yearsMuch less serious than in past years

58

17

6

0

19

More serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch more serious than in past yearsMuch less serious than in past years

How would you rate the challenges your firm faces in the next year to two years

What is the greatest hurdle to your firmrsquos growth or further success

What is the greatest hurdle to your firmrsquos growth or further success

LEGAL PRACTICE MANAGEMENT23

SEPTEMBER 2016LPM INSIGHTS

TIMES THEY ARE A CHANGINrsquo The overriding theme of the 2016 LPM conference was change ndash how firms can implement it the drivers behind it and the various blockers to it But the first step to change is gauging which factors will have the biggest impact on the legal market Just over half of legal management leaders we polled thought client pressures on cost like demanding fixed fees will have the biggest impact while just over a quarter thought it will be competitors attaining a market advantage using technology

How quickly do firms need to respond to these oncoming market pressures Well 86 of LPM conference delegates thought that change needs to happen in their firms within the next two to five years But 14 said that their firm doesnrsquot need to change significantly perhaps because theyrsquove beaten the rest to the punch their legal business is somehow immune to new pressures ndash or they have their heads in the sand

Legal has traditionally been resistant to change and itrsquos not surprising that some firms still are says Sean Stuttaford COO at Essex firm Thompson Smith and Puxon (TSP) and 2016 LPM conference delegate ldquoThere are still firms out there where partners donrsquot have computers on their desks ndash theyrsquore stuck in their ways and just point blank refuse to

52 26 5 12 5

develop their business for the futurerdquoBut legal management leaders willing to implement

change may still find it difficult as 60 of LPM conference delegates polled thought that lsquochange isnrsquot really understood at their firmrsquo

GROWING PAINSJust over a quarter of LPM conference delegates also thought that an inability to create change within their firm would be the greatest hurdle to the businessrsquos growth or further success ndash though Stuttaford at TSP suggests voters might have blamed the traditional partnership business model for the same reason

But acquiring high-quality staff was considered to be the greatest hurdle for growth or success by 36 of delegates Rebecca Patterson HR manager at Kent firm Thackray Williams and 2016 LPM conference delegate says that she agrees with this result ldquoOur firm has a particularly tough time finding quality support staff ndash we could perhaps stand to invest more in competency frameworks and performance management and training opportunities to aid recruitment and retentionrdquo

William Robins operations director at lsquodistributedrsquo firm Keystone Law and a 2016 LPM conference speaker says

12 36 27 13 12

Lack of fundsAcquiring high-quality staffInability to create change within the firmTechnologyThe traditional partnership business model

Out of these which factor is having the biggest impact on the SME legal market

Client pressures on cost (eg fixed fees)Technology creating advantage for competitorsConsolidationDifficulty in finding routes to growth (eg funding)Something else

What is the greatest hurdle to your firmrsquos growth or further success

LEGAL PRACTICE MANAGEMENT24

SEPTEMBER 2016LPM INSIGHTS

offering a more flexible remote or mobile working set-up for everyone in a firm is an excellent way to attract talent (Keystonersquos model of course is founded on remote working) Perhaps the majority of legal management leaders polled at the 2016 LPM conference agree since their firms have either adopted a flexible remote or mobile working set-up are planning to adopt one or are considering adopting one ndash though there are other advantages to remote working such as reducing overheads In any case the results indicate that the SME legal working landscape is becoming considerably more flexible

But remote working doesnrsquot work for everyone Mary Mocklow CEO at West Midlands firm Talbots Law and 2016 LPM conference delegate says that their high-street set-up wouldnrsquot allow it ldquoThe majority of our staff are client-facing and need to be present at the office ndash and while there are other staff at Talbots that might benefit from remote working you canrsquot have a policy for one and not for allrdquo

CYBER THREATSTechnology was clearly a significant concern for legal management leaders who attended the 2016 LPM conference Patterson at Thackray Williams says some firms have had a hard time finding software that caters to their needs as a business and an LPM conference poll seems to back this up just under half of legal management leaders polled at the conference thought project teams should write law firm software indicating a desire for cross-department input into its creation But the poll also indicates that legal software providers have to a large extent been meeting their clientsrsquo needs

The rising threat of cybercrime was also a clear concern for LPM conference delegates ndash 92 of SME legal management leaders said their firms have cyber risk on their management meeting agendas Stuttaford at TSP says ldquoItrsquos something firms need to be constantly aware of and take precautions against not just by purchasing good firewall and antivirus software but by educating staff about password discipline authentication processes and suchrdquo

32 18 14 33 3

Is cyber risk on your management meeting agenda

92

5 3

Yes No Dont know

Is your firm moving to a more flexible workingremote or mobile working set-up for everyone in it

YesNoConsidering itWe already do itDont know

LEGAL PRACTICE MANAGEMENT25

SEPTEMBER 2016LPM INSIGHTS

PRESSURES AND PRICINGClient pressures on cost was also a major concern for legal management leaders polled at the conference so it may not be surprising that just over half of them said 50 or more of their firmrsquos work is some form of fixed fee This doesnrsquot necessarily suggest that the other half arenrsquot open to the concept of fixed fee ndash Mocklow at Talbots points out that fixed fees work for certain types of work ldquoHigh-street firms like Talbots can benefit greatly from fixed fees which is why 75 of our work is fixed fee but itrsquos more difficult to apply to firms that specialise in something like admiralty lawrdquo

The industry seems to think that the value of service has been lost to the price obsession in some areas but not in others ndash and while pricing is clearly a vital issue for SME firms 88 of legal management leaders polled at the LPM conference thought that itrsquos lsquoone of a range of important factorsrsquo or lsquonot as important as other thingsrsquo Patterson at Thackray Williams says that maintaining a good relationship with clients is often more important than pricing though pricing can be a means to achieving client satisfaction ldquoIt also depends on the client ndash in something like conveyancing first-time buyers might be looking for fixed fees or the cheapest price but for commercial clients that may not be as important as reputation or relationshiprdquo

TREASURE MAPPINGLegal process mapping often used by lsquobig lawrsquo and making inroads into SME legal could potentially make SME firms a great deal more efficient and therefore more competitive Two-thirds of legal management leaders polled had heard of process mapping and 79 thought that it is relevant to the business of law Stuttaford at TSP says he agrees ldquoFirms should look at their processes learn from them and figure out how to improve those processes ndash this question really made us look at what TSP has done so far in terms of what legal processes wersquove mapped and whenrdquo

To sum up LPM conference delegates were aware of the challenges that face them but were mostly optimistic nonetheless This may be because they know they need to change and in spite of the fact that change isnrsquot really understood at their firms are planning to mend their ways to meet future market pressures ndash generally putting the client first while keeping talent and technology high on their agendas LPM

Are aware of this thing called legal process mapping

66

34

Has the value of service been lost to the price obsession

23

23

54

Yes No Depends on the service Dont know

Yes No

How important is price in winning business

8

4

67

21

CriticalMore important than almost all factorsIts one of a range of important factorsNot as important as other things such as relationshipsIts one of the less important things in reality

What is the greatest hurdle to your firmrsquos Are aware of this thing called legal process mapping

LEGAL PRACTICE MANAGEMENT27

SEPTEMBER 2016COLUMNSSPONSORED EDITORIAL

Welcome back LPM readers ndash the new school term has started summer is (pretty much) over and the UK is back in full throttle after the summer break And what a break itrsquos been at

File Queen HQ (wersquove taken the time to get our clients up and running with augustprojects as well as started our new Instagram feed filequeenadds)

With the start of the new learning year wersquore focused on the education of you lovely LPM readers ndash with our attention turning back to the General Data Protection Regulation You may remember that in our last LPM article we ran through the 12 steps to tackle the GDPR helped by the awesome people at the Information Commissionerrsquos Office ndash wersquove provided a link to their 12-step resource via our website wwwarchivestoragenetnewsgdpr

Over the next three columns wersquoll be taking these steps and breaking them down for you ndash starting with step one awareness The File Queen (myself) and the team at ADDS have been promoting this step as the most important for all legal practices

ldquoWhyrdquo we hear you holler Well this step is the all-important life raft that unites your practice and team members to help you in the GDPR fight for survival (dramatic I know)

Getting the team on board ndash this buy-in needs to include all ranks of staff ndash from the managing partners to your suppliers But how do you do this Well here are some File Queen tips for when we at ADDS are rolling out projects

Lunch and learn ndash with a register People love to eat and be social so get your legal business to book in a couple of lunch and learn sessions Donrsquot limit this to one date ndash you must run at least two or three so people have the option of which dates to attend Make sure you make a register for those that actually turn up (we all know a calendar acceptance doesnrsquot mean theyrsquoll actually appear) This will allow you to chase down the members of the team you need to get on board for the next one

Have some decent sandwiches nibbles and soft drinks and give the team an overview of the GDPR Run through the 12 steps and make sure you educate them on why everything is so important (make sure you mention the increased fines and audits) During this time let the team know that there are several steps along the way that yoursquoll need their help and support for and which you wonrsquot be able to achieve on your own Tell them that the businessrsquos reputation and brand is on the line and that you need everyone on board to lend a helping hand and spread the word

Another great File Queen tip at this stage is also to get some additional funding from the practice manager for a wine and quiz night at the end of the lunch and learn periods This can be part of your social gathering on a Friday straight after work ndash with some more nibbles and wine Assign people to teams and have a GDPR quiz The winning team gets an award and everyone has fun and learns at the same time Follow our twitter feed as wersquoll be tweeting some great questions to ask thefilequeen GDPRQUIZ

We know itrsquos a lot to organise but there are only four months left in 2016 and GDPR practices must be in place by 25 May 2018 And believe me when you have to roll out rather hard core legislation you have to make it fun and interactive to get people on board LPM

ABOUT

NATASHA RAWLEY THE FILE QUEEN

EDUCATING YOUR PROS

ADDSSaving firms from paper hellContact Natasha on0800 328 0272wwwarchivestoragenet

LEGAL PRACTICE MANAGEMENT28

SEPTEMBER 2016FEATURES

28

Patrick Wingrove talks to the founders of Proelium Law about their work providing legal advice in high-risk environments and conflict zones and the challenges of setting up shop in a new and risky area of law

Legal commandosProelium

Compared to the day-to-day lives of Proelium Law founders and partners Richard Stephens (above left) and Adrian Powell (centre) the average lawyer leads a pretty humdrum life Though UK-based the

firm has a strong international focus ndash Stephens and Powell regularly travel to provide legal and business advice to companies and individuals in high-risk professions or working in hazardous environments across the globe including conflict zones in Iraq Syria and Afghanistan Powell says that itrsquos a challenging but exciting area of law to be in and that ldquono two days are ever the samerdquo

The firm was established as an ABS in November 2015 allowing Powell and Stephens to operate as partners although Stephens isnrsquot a lawyer Powell qualified as a solicitor in 2004 after spending 11 years of his career in the British army and post-2006 worked on various high-risk projects around the world ndash giving him the inspiration for Proelium He says ldquoThe idea came to me in Baghdad in 2009 while working for a private security company as a legal adviser ndash I thought lsquoWhy isnrsquot there a firm doing thisrsquo But I soon realised that I needed someone on the ground who wasnrsquot a lawyer to help make it happenrdquo

That person was Stephens He previously served in the Royal Marines worked as a Whitehall-based strategic planner for the UK government and commanded a special operations regiment (which is why we couldnrsquot show you his face but itrsquos a nice issue of LPM) He now works primarily on the business development side of Proelium ldquoJoining Adrian who Irsquod previously worked with on projects around the

LAW FIRM PROFILE

LEGAL PRACTICE MANAGEMENT29

SEPTEMBER 2016FEATURES

world at a firm meant I could do fascinating and important work with the credibility that being a partner in a regulated business providesrdquo he says

Their work has certainly been interesting Proelium has cast its net far within the niche high-risk sector ndash advising UK-based service providers on the complexities of working in hostile environments conducting business and human rights due diligence and ensuring anti-money laundering counter terrorist-financing and anti-bribery compliance for companies intending to run in high-risk areas or conflict zones to name a few Recently theyrsquove also been working on developing capability for national intelligence organisations overseas ndash but for fear of being jailed for treason Stephens and Powell didnrsquot elaborate hellip

Powell says that the challenges companies face in these areas are numerous ldquoTherersquos a real technical knowledge in understanding how organisations physically work overseas These companies are good at what they do but that doesnrsquot necessarily translate into being business-savvy when it comes to operating in frontier markets ndash thatrsquos where Proelium adds valuerdquo For example after a client was recently exposed on an arms deal they were able to quickly discern liability and ensure that all necessary agencies and departments were appropriately informed

Powell and Stephens joke about how theyrsquore the number-one firm in their sector ndash admitting that to their knowledge theyrsquore the only firm that specialises in this area of law They added that itrsquos an untapped niche in which Proelium will be a pioneering force but which has also recently come onto the radar of a larger firm Theyrsquore alluding of course to Proeliumrsquos recent venture with Harrison Clark Rickerbys ndash a joining that combines Proeliumrsquos experience working in high-risk jurisdictions with the manpower and existing defence and security expertise of

HCR Powell says ldquoWhat they donrsquot have is our connections and our experience They like the idea of the sector because they see it as an interesting area and the partnership will allow us to offer a wealth of different legal services while letting us focus on what we do bestrdquo

As part of their ambitions for Proelium Powell and Stephens are keen to train a new generation of lawyers whorsquoll specialise in the high-risk sector ldquoWe have confidence in what the younger generation has to offer and we want them in our industry to continue our work in this relatively untapped areardquo says Powell Stephens adds that itrsquos also a matter of succession planning ldquoWe want the firm to operate long into the future but we donrsquot necessarily want to be running it ourselves for the next 20 yearsrdquo Proelium currently employs two interns as part of this commitment including University of Surrey law student Ruby Jamieson (pictured) She says ldquoWorking [at Proelium] has given me loads of insight already ndash itrsquos very niche

very new and Irsquove really enjoyed helping develop the business I feel that itrsquoll open a lot of doors when I graduaterdquo

In terms of expansion Proelium has recently opened a new office in the City of London Powell says that his home was originally the firmrsquos practising address but a large portion of their client-base is in London ldquoand we couldnrsquot keep having our meetings in coffee shopsrdquo

But Powell and Stephens are firm believers in the concept of remote working which works particularly well for their business

ldquoMost of our clients are either in London or outside the EU so Irsquom always away but all my phone calls are redirected from the new office to my mobile so I can keep in touch with clients whether Irsquom in Dubai or Baghdadrdquo says Stephens Powell adds that he feels remote working has the added benefit of keeping staff happy by letting them work from home which he says certainly makes him more productive as a fee earner

Proelium isnrsquot looking to expand into areas it has no interest in like family law but theyrsquore taking a keen interest in the emerging area of cyber law and are considering taking steps into that world ldquoLike high-risk law no onersquos really wrapped their arms around cyber law yet Therersquos cyber law in the US but it doesnrsquot exist per se in the UK except in terms of data protectionrdquo

When asked what advice they could give to SME firms based on their unique experiences in their sector Powell and Stephens said firms should know the areas of law they practise inside and out Powell says ldquoWersquore concerned with being experts in our field ndash a lot of our clients have peoplersquos lives in their hands and are not in the business of nonsense which is why they come to us We give sound researched legal advice based on experience and if we donrsquot know something we send the client to someone who doesrdquo LPM

ldquoCompanies are good at what they do but that doesnrsquot necessarily translate into being business-savvy when it comes to operating in frontier markets ndash thatrsquos where Proelium adds valuerdquo

Proelium

Two fee earners four total staff

Offices City of London Wirral Cheltenham

Specialisms International criminal commercial and conflict law due diligence sensitive investigations

LPM FACT FILE

ldquod2u is the UKrsquos number one outsourced transcription service for medical and legal professionals and highly competitive all over the world We pride ourselves on saving our clients time and money as well as offering state-of-the-art security and a first-rate servicerdquo Daryl Leigh CEO dictate2us

LPM magazine has agreed a special deal for its readers with dictate2us ndash 5 off your monthly

transcription bill for one year if you sign up through the dedicated LPM link or call and quote LPM2016 when signing up You can trial the service for free before committing

CUT COSTS INCREASE EFFICIENCYAll firms could benefit from outsourcing transcription to dictate2us ndash but even more so with our LPM deal 5 off your first year

wwwdictate2uscomlpm

Use d2u and enjoy the benefits ofbull Fast turnaround timesbull Secure and confidential servicebull Secetarial cost reductions of up to 60bull Guaranteed 985 minimum accuracybull iPhone Android and Blackberry apps with one-hour turnaroundbull 100 output - only pay for the time you talkbull Free no obligation trial

This special LPM magazine reader deal only relates to customers that execute an agreement for a minimum term of 12 months with a minimum monthly commitment of 500 minutes LPM magazine sought two law firm references for dictate2us to verify its claims for quality and delivery The 5 deal only applies to the first paying year the customer is with dictate2us LPM magazine is not responsible or liable in any way for work done by dictate2us and is an advertising referrer only

d u2 dic t a t e 2 u s

SPECIAL READER OFFER

The d2u Transcriber app is free to download from Apple and Android app stores and BlackBerry App World

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WHEN CALLING

LPMLEGAL PRACTICE MANAGEMENT

LPMLEGAL PRACTICE MANAGEMENT

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LEGAL PRACTICE MANAGEMENT31

SEPTEMBER 2016FEATURES

Patrick Wingrove speaks to management leaders from SME and top 100 law firms that have recently achieved significant growth to find out how to go from acorn to oak tree

FROM MINNOW TO

For many SME firms growth is the goal ndash but it doesnrsquot have to happen in the ways that many have scaled in the past The era of organic slow quiet steady partnership development over decades is

increasingly at odds with a fast-paced digital world Strategies for growth in the legal market are now closer than ever to the rest of the business world ndash and any size firm can learn how to do it

Big or small there are similar tools in the box for making growth happen and similar challenges Lessons abound but some of the best can be taken from those firms not far outside the famous lsquotop 100rsquo legal businesses in the land ndash those that have already grown up and now have the top tier in their sights There are also lessons to draw from smaller but rapidly scaling law firms

There are many growth strategies for organic and acquisitive growth ndash and no easy answer for which is right for your firm To shine a light on the subject wersquove spoken both to SME and top 100 firms about growth and how to do it (and importantly how not to do it)

MAMMOTH

LEGAL PRACTICE MANAGEMENT32

SEPTEMBER 2016FEATURES

MODELS OF GROWTH According to the Lawyer the two fastest growing firms in the top 200 this year are Midlands-based Knights and lsquodistributedrsquo firm Keystone Law ndash currently placed 119 and 122 in the 2015 UK 200 rankings but whose revenue will now put them well inside the 2016 top 100 (due for release October 2016) Both attribute their growth to non-traditional business models ndash and very different non-traditional models at that

Knights corporatised in 2014 to remove the barriers from its decision making processes which CEO David Beech says has been the key to its growth ldquoEquity partnerships donrsquot grow particularly quickly because itrsquos hard to achieve consensus and make decisions that enable fundamental or rapid growth among equity partnersrdquo

Knights acquired Oxford-based Darbys earlier this year ndash a move largely behind the revenue increase that will put them in the top 100 ndash and completed the transition inside three months which Beech says would have been next to impossible under their old business structure ldquoNot only was a quick turnaround good for the books it saved significant time and money that could be invested elsewhere in the businessrdquo he says

Top 100 firm Simpson Millar is one step

ahead of Knights The firm broke the glass ceiling to become a top 100 firm in 2015 and like Knights the firm attributes its growing success to corporatisation ndash but in a different manner

It sought to be and was eventually acquired by PLC Fairpoint Group in 2014 Simpson Millar continues to run as an LLP under the same management team and existing trading brands but as a business unit within Fairpoint

Managing partner Peter Watson says that one of the key reasons to pursue this particular growth strategy was to provide an injection of capital for MampA ldquoWe completed the sizeable acquisition of Colemans last year for example which we were only able to do with considerable investment from Fairpointrdquo

Being part of a PLC has also given the firm access to strong MampA and project management capabilities ldquoAcquiring Colemans doubled the business overnight ndash for something like that you need strong MampA experience and access to that team within Fairpoint was crucial in getting the deal across the linerdquo says Watson Simpson Millar also built a strong digital strategy launched new products and focused on pricing ldquoCall it fixed fees or packaged fees the point of it was to say to consumers

Square One Law

Revenue pound5m

31 fee earners 53 total staff

Offices Newcastle-upon-Tyne

Specialisms Commercial corporate property employment EU and competition law finance litigation private client

LPM FACT FILE

Knights

Revenue pound40m (year end 2017)

375 fee earners 450 total staff

Offices Chester Cheltenham Newcastle-under-Lyme Derby Oxford Hale

Specialisms Full service firm

LPM FACT FILE

LEGAL PRACTICE MANAGEMENT33

SEPTEMBER 2016FEATURES

lsquoWith us you know exactly what yoursquoll get and how much itrsquoll costrsquordquo

PEOPLE PLEASERSThe ability to implement change has also been an important part of delivering a growth strategy This isnrsquot necessarily surprising ndash polling at the 2016 Legal Practice Management conference showed that legal business managers thought it was one of the greatest hurdles to a firmrsquos growth or success only topped by acquiring high-quality staff In Knightsrsquo case the two challenges were addressed together Beech says Knightsrsquo corporate rather than partnership structure also allows it to recruit talented people without having to deal with the inherent politics of an equity partnership

ldquoAcquiring the best talent has been a central part of our growth strategy ndash if a candidate can help the business through expertise or client following we can just recruit themrdquo he added

But a successful growth strategy incorporating talent isnrsquot just about recruiting quickly as we analysed in the July 2016 issue of LPM ndash itrsquos about recruiting well Firms also need to make themselves an attractive prospect for legal talent in order to grow

William Robins operations director at Keystone Law says his firmrsquos lsquodispersedrsquo model allows it to do that by offering new fee earners the chance to work remotely with less supervision ldquoWersquore typically hiring about a lawyer a week ndash bringing their expertise fee-earning capability and client following with them ndash and that is the core part of our growth strategyrdquo The firm has buttressed its recruitment capability by hiring a director of recruitment to focus almost entirely on lawyer enrolment (recruiting talent to recruit talent ndash neat)

Though the distributed model may not be for everyone says Robins implementing some form of flexible mobile or remote working should be part of any firmrsquos growth strategy because it allows firms to increase their fee-earning capability without accruing fixed overheads such as office premises

And there are other ways to be talent-attractive As a core part of its growth strategy Newcastle-based firm Square One Law ndash which achieved 30 growth in the

last financial year ndash has pledged to create a supportive and inspirational team environment offering high-calibre work to attract the best talent Ian Gilthorpe senior partner at Square One says ldquoGood people want to be inspired to be valued for what they do and feel as though theyrsquore making a contribution The key is to engage with all your staff to facilitate a culture where staff feel happy at work work for each other trust each other and ensure that they see the value in what they do ndash if you do that more talent will comerdquo

He added that itrsquos important for

recruitment to convey staff satisfaction to the outside world which Square One has achieved by including staff video-testimonials on its website

But recruiting is only half of an effective people strategy ndash the other is retention Simpson Millar has attempted to create an environment that its talented staff wonrsquot want to leave Says Watson ldquoToo many firms worry about what will happen if their rainmaker goes somewhere else and takes clients with them ndash so they put the shackles on make them feel unhappy and make it so that they canrsquot realise their full potentialrdquo Creating such an environment makes firms an attractive target for lateral hires when they should be building a place people want to join

PRACTICE AREASSME legal businesses donrsquot necessarily need to change their business models completely to achieve the same growth as

Thorntons

Revenue pound20m

209 fee earners 430 total staff

Offices Dundee Edinburgh St Andrews Perth Cupcar Kirkcaldy Anstruther Arbroath Montrose Forfar

Specialisms Full service firm

Keystone

Revenue pound202m

198 fee earners 230 total staff

Offices London Bristol Isle of Man Australia

Specialisms Corporate and commercial dispute resolution property

LPM FACT FILE

LPM FACT FILE

Equity partnerships donrsquot grow particularly quickly because itrsquos hard to achieve consensus and make decisions that enable fundamental or rapid growth among equity partners David Beech CEO Knights

Simpson Millar

Revenue pound316m

322 fee earners 539 total staff

Offices Birmingham Bristol Cardiff Cheadle Hulme Gateshead Kingston-upon-Thames Lancaster Leeds Park Place Leeds St Pauls Street (head office) London Manchester Newcastle

Specialisms Full service firm

LPM FACT FILE

LEGAL PRACTICE MANAGEMENT34

SEPTEMBER 2016FEATURES

our examples but removing blockers from decision-making making themselves more attractive to talent and finding the right funding for growth are increasingly important and the partnership structure may not enable it

But of course that means asking some turkeys to vote in a Yuletide election Fortunately there are other ways to achieve impressive growth mainly investment andor expansion into new geographic or practice areas

Watson says that Simpson Millar wouldnrsquot have been an attractive prospect to Fairpoint had the firm not spent time growing organically by expanding into new areas of law

ldquoWe went from being a predominantly trade union PI firm to having a broad base of 16 types of work ndash with strong heads in charge of each committed to driving growth in their departments ndash which gave us a large boost in revenuerdquo The firm achieved this through small acquisitions of other firms that had expertise in particularly lucrative areas of law

But firms shouldnrsquot just look at expanding in lucrative areas ndash they should focus on areas where their reputations deliver an advantage Scotlandrsquos Thorntons for example ndash which last year leapt from 134 to 108 in the 2015 UK 200 rankings ndash invested in six departments as part of its growth strategy

Thorntons joint managing partner Scott Milne says ldquoWe didnrsquot exclude other areas but we saw that these areas were profitable and that more importantly we had considerable expertise in them ndash we also considered that these are areas that are unlikely to be affected by future economic downturnrdquo This included investing in niche areas of law where the firm has a geographic competitive advantage ldquoWersquore lucky to be surrounded by some of the best farmland in the UK ndash wersquore well known for our expertise in rural business law which is why we invested heavily in itrdquo

ORGANIC V ACQUISITIONIn several ways choosing an effective growth strategy very much boils down to MampA versus organic growth ndash every business model talent or area expansion strategy appears to revolve around one or both But which is the best to achieve the kind of growth thatrsquoll propel firms to a lsquohockey stickrsquo on their revenue forecasts The short answer is it depends on whatrsquos best for a firm at a given time It either

needs to fit the firm ndash or the firm needs to change to fit the goal

Beech says that acquisition has been excellent for Knights because itrsquos a fast and effective form of expansion ndash the acquisition of Darbys more than doubled its revenue But MampA poses a significant challenge to finding firms with the right cultural fit

ldquoFirms need to establish a single culture in order to implement growth ndash everyone needs to be working towards the same goalrdquo He added that when a firm completes a merger or acquisition that firm has to be integrated from day one which is much more difficult if it has a significantly different culture Knights is planning to continue recruiting and complete more acquisitions in the next year to maintain the growth curve

Of course the big problem with acquisition is money Robins at Keystone says his firm lies at the opposite end of this

INFORMATION IS EMPOWERING

Lemington Spa-based firm Wright Hassall has a specific goal of breaking into the top 100 and as part of its growth strategy expanded into areas of the UK where its expertise is highly sought after ndash using customer relationship management in the background to underpin the firmrsquos activities in specific areas Martyn Wells IT director at the firm says ldquoWersquove zoomed in on specific industry sectors that we know are performing well in the Midlands sectors where we have a superb reputationrdquo Expanding geographically as Wells outlines needs data to get right Thorntons for example identified various lsquomicro-marketsrsquo in Scotland close to its base of operations ldquoWe acquired a firm in St Andrews because itrsquos like a micro-economy (or micro-market) that doesnrsquot seem to be affected by price drops in the residential market elsewhererdquo says Thorntons joint managing partner Scott Milne Knights has another take on the geographic targeting idea ndash it intends to stay out of the large cities (London Manchester Leeds for example) and expand into areas where there is little competition As David Beech CEO at Knights explains ldquoLast September we acquired a small team in Chester of about 11 lawyers and now thatrsquos expanded to just over 70 ndash and the main reason wersquove been able to do that is because there isnrsquot a lot of competition thererdquoUltimately this all comes down to research finding out what to invest in or where to expand and perhaps most importantly finding out what clients want

LEGAL PRACTICE MANAGEMENT35

SEPTEMBER 2016FEATURES

spectrum to the way Knights has grown emphasising organic growth finding innovative means to attract talent using technology to drive efficiency and branching out into new areas of law or new markets to achieve significant growth

Square One Law also espouses the organic route ndash believing that firms with growth in mind should focus on ensuring their external brand reflects the businessrsquos internal culture and behaviours of its team creating lsquosynergyrsquo between the business and its clients

Gilthorpe says ldquoMergers ndash and there is no such thing as a true merger ndash and acquisitions can be a distraction as you look to create a new culture and separate the wheat from the chaff and this can soak up a lot of energy that would otherwise be put to use in driving the progression of the business and the focus on client servicerdquo

The best option for some firms may be a

calculated combination of MampA and organic Thorntons for example having made several acquisitions is now focusing on organic growth moving away from geographical expansion and towards developing locations and its brand

Watson at Simpson Millar sums the mixed approach up thus ldquoItrsquos a mixture Acquisition is still very much a part of the mix but in parallel to that itrsquos important to demonstrate that yoursquore developing ongoing work rather than being driven solely by acquisitionrdquo

There are clearly many different ways to achieve healthy and assertive growth though there are no easy answers as to which way is right for your firm But it is clear that growth doesnrsquot have to happen in the ways many have previously achieved it ndash innovation and lateral thinking are the means of achieving significant growth (which might one day propel you into the top 100 you never know) LPM

LEGAL PRACTICE MANAGEMENT36

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

INDUSTRY VIEWS

36LEGAL PRACTICE MANAGEMENT

Legal is becoming an ever more digital industry giving firms the chance to become more efficient flexible agile and collaborative

INDUSTRY VIEWS INDEX

ONLINEOFFICES

36

SPONSORED EDITORIAL

INDUSTRY VIEWS

37 INTERVIEW

Paperless processLinetimersquos Tony Klejnow explains the benefits of using matter management software for law firms and their clients

39 INTERVIEW

Virtual expansionNigel Redwood Nasstarrsquos CEO talks about the advantages of having a managed flexible IT infrastructure

LEGAL PRACTICE MANAGEMENT37

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT37

Competition and price pressures and an increasingly digital client base are all significant drivers for law firms to become paperless

businesses Tony Klejnow Linetimersquos managing director says firms could achieve competitive advantage by introducing paperless solutions across their businesses ndash but a particular lsquoeasy winrsquo area is matter management

ldquoFee earners are required to keep detailed records of their cases but the amount of time and money they waste physically printing filing looking for collaborating on and updating files is alarmingrdquo says Klejnow Law firms have traditionally been reluctant to adopt paperless

workflow solutions he adds because workflow doesnrsquot apply to 99 of fee earnersrsquo work ldquoBut if they adopted paperless solutions in their back office processes they could reduce costs without affecting client service boost productivity and promote collaboration ndash making them more efficient flexible and cost effective and making them more competitive in an ever-changing legal marketrdquo

MATTER MATTERSDocument and matter management tools ndash like those in Linetimersquos legal software product Liberate ndash electronically store and organise all case documentation in an online database Klejnow says that there are two immediate benefits of paperless matter

PAPERLESS PROCESS

Tony Klejnow managing director at Linetime talks to LPM about the benefits of the paperless office ndash starting with filing and back office processes

INDUSTRY VIEWS

Linetime is a specialist provider of Microsoft-based practice and case management solutions Clients include mid-tier law firms and in-house legal departmentswwwlinetimecouk

ABOUT THE SPONSOR

SPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT38

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT 38

management The first is reducing paper and storage costs

ldquoIf case documentation is electronically stored once a case is finished you no longer have a five-inches-thick file that has to be stored for six years ndash which has to reside somewhere and costs firms time space and moneyrdquo The second is eliminating filing time ndash for example instead of printing and filing emails and attachments fee earners drag and drop emails directly from Outlook into the database ldquoand attachments are automatically stripped from emails and appropriately filedrdquo says Klejnow

And Klejnow says paperless filing systems donrsquot just facilitate efficiency this way ndash they also improve general process efficiency by facilitating collaboration between fee earners Solicitors can use document and matter management to view and work on matters at the same time a difficult if not impossible prospect when working with paper files Klejnow says ldquoWithout document management legal professionals work in silos but with it they immediately share datardquo He adds that Liberate has an additional collaboration tool to help further improve collaborative efficiency in firms ldquoIf I choose to lsquocollaboratersquo a document with you on Liberate Outlook will prompt you to review that document by simply acknowledging the notificationrdquo

In this respect moving to become a paperless business provides greater flexibility for fee earners who can collaborate with colleagues working remotely or in different offices Klejnow says ldquoPaper files can only reside in one location but electronic files can be accessed from any office and when working from home or with clientsrdquo On the other side of the coin having digital files maintains a greater level of productivity in a law firm office ldquoIf your colleague is absent from the office you can easily find documents that you might have otherwise wasted a significant portion of your day looking forrdquo he adds

Improved external collaboration is also a benefit that firms can reap from paperless matter management With an electronic system you can go into a case history bundle documents into one PDF file and quickly submit that to the third party improving collaboration between fee earners and clients who want to do everything online This has the added benefit of improving accuracy and facilitating greater efficiency by involving clients in the process ldquoGood matter management software should also let you push e-forms to clients to be filled in and that information is automatically transferred straight to the online database ndash which saves fee earners

time and is a more accurate because the information doesnrsquot have to be constantly re-enteredrdquo says Klejnow

This extra level of collaboration within legal businesses that hasnrsquot been possible until now has long been needed because it improves efficiency and productivity which makes the business more profitable and competitive Klejnow adds that what firms save by adopting matter management they should reinvest in becoming fully paperless digital businesses

ldquoCase management solutions can improve efficiency to an even greater extent and keep firms competitive in the age of the alternative business structuresrdquo

VISIBLE COMPLIANCEIn response to firms reluctant to adopt paperless technologies like document and matter management for fear of losing delicate information to cybercriminals Klejnow says those systems provide an additional level of security ldquoTaking data and attachments out of Outlook and storing them on a database is much more secure than leaving them on your hard drive If you leave

your laptop on a train for example all your important data is safely stored on a server and not instantly accessible by opportunist criminalsrdquo

Document and matter management also offers a greater level of security in fee earner and client communications ldquoIf I want you to check that the data we have for you is accurate Liberate will

direct you to a page holding your data and at the same time it will push out an SMS text with a pin code to your phone Unless you input the code you canrsquot get to the web page ndash which means if one of your solicitors accidentally sends an email to the wrong person or itrsquos intercepted it doesnrsquot matter The data stays safe ndash this level of security is crucial in this age of cybercrimerdquo

These security features clearly have significant benefits for compliance which is important in a market increasingly dictated by regulation including the relatively new General Data Protection Regulation says Klejnow

ldquoCompliance officers need to be seen by regulators to have monitored and reviewed everything thatrsquos happened in their firm which is considerably easier with a paperless system Liberate has lsquoversion controlrsquo which allows compliance officers to keep tabs on every change made to a document as well as a compliance module which lets them view whatrsquos happening on a case (to ensure that money laundering checks have been carried out and so on) and records the fact that yoursquove reviewed thisrdquo LPM

Without document management legal professionals work in silos but with it they immediately share data

INTERVIEW

LEGAL PRACTICE MANAGEMENT39

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LPM readers may already know the Nasstar Group ndash but by a different name Nasstar was launched by regular LPM-contributor e-knownet to consolidate four discrete hosted

managed IT businesses (including e-knownet) after a period of significant acquisition Nigel Redwood chief executive officer at Nasstar says merger and acquisition and consolidating brands is challenging but having a flexible hosted IT infrastructure makes the process significantly easier

ldquoManaged IT services are enormously beneficial for firms that are expanding or consolidating particularly after MampA in terms of time and productivity cost savings and flexibilityrdquo He adds that by just having managed desktops firms can attain competitive advantage by reducing overheads and becoming more flexible and agile

Nasstar has experience helping SME firms with their IT systems after MampA and knows what problems to look out for creating unity among staff used to using different systems and processes the cost and time it takes to expand an IT infrastructure and the geographic distance between new offices

Redwood says that MampA can be an excellent way for legal businesses to expand into new sectors but that consolidating new departments using different IT systems and processes is challenging

ldquoOur acquisitions for example introduced new sector focuses for us in the SME legal market ndash wersquove consolidated these into a wider service base under Nasstar and facilitated unity among staff using virtual IT solutions

rdquoVirtual IT solutions help facilitate unity across the business by providing a level of consistency in an IT infrastructure Everyone immediately uses the same applications on the same versions from wherever theyrsquore working creating unity faster collaboration across teams and effective information sharingrdquo Hosted IT infrastructures are also continually updated giving staff instant access to new updates applications and technologies as they become available

The next significant challenge firms face after MampA is expanding their IT infrastructure to accommodate an influx of new staff ndash but Redwood says virtual IT solutions let firms expand their IT infrastructure at the flick of a switch

ldquoWith virtual IT firms arenrsquot held back by the size of their servers or the amount of computer power theyrsquove got ndash they simply call their IT provider and ask for an upgrade when previously theyrsquod have been

subject to lengthy and costly IT upgradesrdquo Virtual IT solutions are also easy to budget for

Redwood says ldquoYoursquore not going to be surprised by an increased fixed asset expenditure ndash services like those offered by Nasstar are an operational cost and fixed per user per month through a scalable cost modelrdquo

Geographic distance inhibiting collaboration between merged offices is also a key consideration for firms after MampA but virtual IT solutions solve this problem Redwood says a virtual IT infrastructure can minimise travel through the use of hosted virtual meeting rooms and video technology Staff can use this technology from virtually anywhere which is why it also lends itself well to remote flexible or mobile working set-ups

VIRTUAL WORKPLACERemote working is becoming an increasingly present feature of the legal landscape because of its cost saving and recruitment and retention advantages ndash the majority of firms at the LPM conference 2016 were moving towards a flexible remote or mobile working set-up or already had one

Redwood says virtual IT solutions better enable staff who work remotely ldquoHosted managed desktop solutions for example let staff work with the same applications from any device in the world safely and securelyrdquo

But remote working isnrsquot only about enabling the current workforce itrsquos about attracting future talent Redwood says that millennials donrsquot necessarily want to work as their predecessors did ndash they expect greater flexibility in the workplace which at one level can be achieved by remote working facilitated by a managed desktop

ldquoAnd itrsquos not only about attracting millennialsrdquo he says ldquoSME firms with flexible working set-ups are becoming more attractive to experienced legal talent who may be frustrated by the rigidity of their firmrdquo As a firm expands its workforce in this manner firms with virtual IT solutions reap the lsquodoublersquo cost saving benefits of not having to expand their premises or IT infrastructure accordingly

Some firms are resistant to remote working based on hosted IT services believing they arenrsquot secure ndash but Redwood says that argument ldquocan be put to bedrdquo

ldquoFor an in-house IT team to have the level of security that an organisation like ours can deliver is near impossible financially as well as in terms of the

VIRTUALSANITYNigel Redwood CEO at Nasstar talks to LPM about how managed IT can help SME firms achieve competitive advantage by making them more agile and flexible

LEGAL PRACTICE MANAGEMENT40

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

INTERVIEW

level of systems and technologies they deployrdquo Cybercrime is of course a scary and constantly evolving threat but Redwood points out that virtual IT systems have dedicated teams monitoring these threats evolving cyber defences and changing systems accordingly

ldquoThis capability not only makes [firms] a lot more secure but gives peace of mind in terms of compliancerdquo

ONLINE ADVANTAGE Redwood says virtual IT infrastructures donrsquot just pertain to lsquobig lawrsquo but to SME firms as well ndash perhaps more so

ldquoVirtual IT systems are a way for SME firms to stay competitive against their larger

counterparts and ABSs ndash it gives them a greater ability to expand it lets them adopt more flexible and agile models and is easy to budget forrdquo Firms can also expect virtual IT solutions to enable better alignment of IT resources to business needs enhanced usability with anywhere anytime access and in-built business continuity

But the greatest advantage virtual IT offers SME firms over big law is agility Redwood says ldquoBig IT departments in firms can be slow to react cumbersome and held back by the limitations of hardware infrastructure and security issues ndash all of that is removed with a solution like ours and the customer has access to fast-moving agile ITrdquo LPM

ABOUT THE SPONSOR

Nasstar is a provider of managed IT services and tailor-made cloud hosted solutions ndash delivering innovative secure and agile IT to help clients accomplish their business objectiveswwwnasstarcom

Page 14: LPM September 2016

0800 328 0272 | wwwarchivestoragenet

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LEGAL PRACTICE MANAGEMENT16

SEPTEMBER 2016COLUMNSSPONSORED EDITORIAL

DOUG HARGROVE THE TECHNOLOGIST

DISRUPTION TO GO

ABOUT Change isnrsquot anything new itrsquos just another word for evolution But lsquodisruptionrsquo is certainly one of the words of the decade and one that is

usually connected to revolution ndash a significant alteration to the status quo and one that has far more immediate impacts

Disruption is also the go-to word for business commentators ndash especially when it comes to lsquodisruptive techrsquo ndash talking about new business start-ups or innovations Take the very latest craze to hit the headlines ndash Pokeacutemon Go has seemingly gripped the world these last few weeks with stock valuations heading skyward and comments about the app lsquodisruptingrsquo mobile gaming But therersquos nothing disruptive about the game it takes and utilises technology thatrsquos been around for nearly a decade (geolocation and augmented reality) and applies it in a new way Itrsquos that application of technology thatrsquos causing the disruption

Businesses like Uber and Netflix have built compelling business models on the groundwork of technology that is now pervasive (the smartphone and broadband internet respectively) Therersquos a lot here that firms can learn from itrsquos not necessarily about inventing new technology but about finding ways to use existing technology to create a new approach

So what opportunities are there for law firms to disrupt This can be looked at in two ways ndash disruption to the existing law firm business model and disruption to the user experience The first scenario has already been covered at length and is nothing new for the legal market there are already plenty of law firms out there

looking to change the way a law firm delivers its services to its clients and prospects ndash from franchise models to virtualised law firms Disruption to the law firm business model has been an ongoing force ever since the term ABS became associated with legal practices

The second scenario is a different matter It seems legal clients have been patiently waiting for the lsquodisruptive service deliveryrsquo model to come and there is plenty of opportunity out there for firms to position themselves differently with the modern consumer of legal services

Take a brief example of where old (or rather existing) technology can be used to differentiate ndash videoconferencing Itrsquos a fairly ubiquitous piece of technology thanks to the rise of Skype Facetime and the webcam which gives an instant user experience and a one-to-one connection that bridges the remoteness of a phone call and the need to travel for a meeting It doesnrsquot take much of a leap to imagine a service that allows consumers to access a lawyer instantly using this technology (maybe even a concept that combines the franchise model with an Uber-style app ndash connecting clients to the next available expert from a selection of associated law firms) The point is you donrsquot have to invent something new to be a disrupter ndash donrsquot be afraid to take existing technology and repurpose it to gain a competitive advantage

There are plenty of consumers of legal services who are willing to try out a new service or offering in the search for that great new experience ndash and for those law firms prepared to take the risk and disrupt there really is an opportunity to catch lsquoem all LPM

Advanced LegalRevolutionary solutions for legal services Contact Doug on 01476 573 718wwwadvanced-legalcouk

Advisory

Design

Development

Delivery

Support

If you would like to know morethen please get in touch

wwwsoftclcominfosoftclcomFREEPHONE 0808 164 0000

Leeds office15 St Pauls Street Leeds LS1 2JG

Manchester officeExchange Quay Building 8 Suite 21 Salford Manchester M5 3EJ

Helping Law Firms to improve business performance through their use of IT

C

M

Y

CM

MY

CY

CMY

K

SoftwareCloud_A4_Advert_V4pdf 1 20082016 1130

LEGAL PRACTICE MANAGEMENT18

SEPTEMBER 2016COLUMNS

JANINE PARKER THE BROKER

WHAT PRICE EXCLUSIVITY

Itrsquos that wonderful time of year when the annual bombardment of brokers begins on your never-silent telephones All of them can ldquocarry out a full market exerciserdquo for you that will of course save you money

But whatrsquos the reality The marketplace is still murky and as a profession we donrsquot help ourselves by keeping it opaque So letrsquos objectively consider many of the claims brokers make attempt to clarify the true mechanics behind the market and consider how to best utilise it for the benefit of your firm

Since 2000 and the demise of the Solicitors Indemnity Fund competition for solicitors professional indemnity has increased This hasnrsquot always been generated through the number of insurers but the ever-increasing number of brokers who purport to be experts in this very niche area of insurance This has increased pressure on insurers to lower prices (a good thing for clients up to a certain point) but this pressure combined with some extreme economic factors has contributed to many insurers withdrawing from the market over the past decade

Competition is good for consumers and it encourages innovation to make sure that brokers and insurers can differentiate themselves by developing their product offering

Some brokers organise lsquoexclusiversquo arrangements with insurers often segmented by the number of partners within the firm ndash which is a very artificial way of dividing up the profession But this is the marketplace wersquore in today and itrsquos worth looking a little closer at these lsquoexclusivesrsquo

All the direct access points are listed in the Law Society buyer guide and in practice itrsquos only a handful of brokers who actually hold the exclusive with direct access to the underwriters It is essential to note that these exclusive agreements are not always lsquotiedrsquo arrangements The broker is not bound to place all their business with their one exclusive insurer and itrsquos often the case that those brokers who hold the exclusive arrangement also enjoy strong relationships with the open market insurers

To increase distribution brokers who hold exclusive arrangements will offer access to other brokers who wish to take advantage of the exclusive products available These brokers donrsquot have their own facilities There are many commercial reasons for opening an exclusive to other brokers but itrsquos important to note that the extra broker in the chain will dilute your relationship with the placing broker and ultimately your insurer Marketing materials can often be unclear as access to exclusives is readily used ndash but in reality these brokers will be approaching another broker to do this

Often law firms will be unaware of the number of brokers in the chain and will unwittingly be paying additional brokerage and fees unnecessarily Direct access allows for better communication between your firm and insurers which can often lead to more competitive pricing Removing a broker from the chain can lead to the process of claims handling being more efficient and effective as there are less obstacles in the chain of communication

In summary no one broker has direct access to every insurer and it is possible to approach more than one broker and not be at risk of flooding the market If using more than one broker be clear who you would like them to approach and be aware whether they have to go through another broker to ultimately reach the insurer LPM

ABOUT

SPONSORED EDITORIAL

ParagonBetter broking for legalContact Janine on 020 7280 8200wwwparagonbrokerscom

LPMLEGAL PRACTICE MANAGEMENT

SUPPLEMENT SEPTEMBER 2016

BUSINESS INFORMATION FOR EVERYONE IN PRACTICE MANAGEMENT

LPM INSIGHTS

Sponsored by

How do SME law firm management leaders see the future

LEGAL PRACTICE MANAGEMENT20

SEPTEMBER 2016LPM INSIGHTS

ALL CHANGE

22WHATrsquoS NEXT We analyse the 2016 LPM conference polling data

2 1 COMMENT Accesspointrsquos Richard Roebuck on legalrsquos increasing digital dangers

Change and transformation are words that strike fear into the most hardened of legal management hearts because they are hard to do and even

harder to make stick But change must happen inside todayrsquos SME law firms to make sure they stay in business in tomorrowrsquos world

At this yearrsquos Legal Practice Management conference in London we polled our audience of law firm management delegates on a range of topics Some questions wersquove been asking since our first LPM conference back in the misty era of 2012 Much has changed in the world since then (new UK governments drones are now lsquoa thingrsquo Donald Trump) but legal not so much The rise of the ABS has been slow (though impactful) and the recession has for many businesses faded into a distant memory compared to the Brexit debate

But SME law firms rightly smell a real need for change in the wind ndash and perhaps though they seem to find it hard to name that change the clues are legion Letrsquos find some

LPM London 2016 delegates named the greatest hurdles to their firmsrsquo growth or further success as lsquoacquiring high-quality staffrsquo and the lsquoinability to create change within the firmrsquo Might the solution to one lie in the other Great talent wants to flock to fresh and vigorous businesses and younger legal eagles are increasingly shy of throwing their lots in with the fusty world of partnership Law firm leaders must look at how their businesses are run and who runs them and how people work if they are to attract great people ndash and in doing so they will create the change they seek

Herersquos another 52 of delegates named lsquoclient pressures on costrsquo the factor thatrsquos having the biggest impact on the SME legal market ndash but when asked how important price is when winning business 67 said itrsquos just lsquoone of a range of important factorsrsquo while 21 said itrsquos lsquonot as important as other things such as relationshipsrsquo This is a disparity I canrsquot quite understand but it doesnrsquot sound like the SME legal market truly gets the shift thatrsquos happening on the client side and how much change needs to happen inside firms to meet this challenge

Read on and come to your own conclusions but I think the clues are now becoming obvious I hope your firm sees them too LPM

Rupert Collins-White editor-in-chiefLPMmag | rupertwlsncouk

You donrsquot as the song goes need to be a weatherman to know which way the wind is blowing in the legal market ndash but just because the clues are there doesnrsquot mean you can be complacent about acting on them

CONTENTS

FEATURES

LEGAL PRACTICE MANAGEMENT21

SEPTEMBER 2016LPM INSIGHTS

MORE TECHMORE SECURITY

INTRODUCTION TO THE RESEARCH FROM OUR SPONSOR RICHARD ROEBUCK MANAGING DIRECTOR ACCESSPOINT

After a recent period of uncertainty it would now seem that most firms are confident about their future especially in light of Brexit Whatrsquos also certain is

that most firms are very conscious that to compete they will need to change and adapt themselves for the challenges ahead

With growing concerns about the lack of high-quality people available and what appears to be a reliance on quality individuals driving more lucrative fee-earning work is it time for a gear change

Perhaps the dawn of high-volume low-margin fixed fee work which many firms feared has now arrived As always with change there are challenges to be faced but for those clever early adopters there lies opportunity Making light of the more process-driven tasks and finding more effective efficient ways of completion to deliver client-facing benefits seems key to the wider future of the fixed fee legal landscape

With the growing acceptance of cloud technology and the increasing introduction of new software applications and solutions the legal world has moved on at an improved pace this past couple of years And the world is now clearly keen for more ndash to satisfy its desire for a more accessible and mobile working environment What is key for this trend is that the lsquoquality of the deliverablersquo has an ongoing programme of improvement that benefits both the firm and its clients

As progress pulls us forward there will always be elements arrayed against us Alongside the opportunities hiding in the polling from LPM this year therersquos also a sense of fear and concern around possibly the biggest threat to risk and security there is right now ndash the dark byproduct of technological success cybercrime

Cybercrime is fast growing with ever more complex attacks making headlines It is now one of the most common criminal offences in the UK An increasing number of individuals are exploiting the speed and anonymity of the internet to commit a wide range of criminal activities having no conscience and knowing no borders

It isnrsquot our fault websites get hacked but poor internet safety habits can put us at risk Reusing passwords or using weak passwords make us easy targets for identity theft Remembering multiple passwords can be a pain but there are web services and associated applications that can help such as two factor authentication quality mail management systems URL threat protection and mail encryption

For many firms the biggest threats tend to be by way of the ever-open door into our networks and devices ndash email

Our eagerness to respond almost instantly to emails throughout what will be for most an already pressured day is perhaps the dominant daily activity to foster an unwanted lapse in security In the past 18 months alone I have seen three firms that were truly caught out ndash some with the potential for significant financial penalty by opening email attachments The most common lsquogotcharsquo is an email that appears to have come from the office scanning platform whereby the email address has been cleverly spoofed to appear legitimate (for example downstairscopiermyfirmdomaincouk) There are so many existing and newly circulating threats of this calibre and type that even the most aggressive of filtering systems struggle to keep up

Do you know the name(s) of your copiers and the associated email addresses Do you stop to think before opening the innocuous Word attachment ldquoDoesnrsquot our scanner usually send PDF files Why has a covering note not been included with the attachmentrdquo Stop think and call for advice

Another infamous scam is the spoofing of email addresses of key people within your firm ndash for example an email to the head of accounts appears to be from the senior partner ldquoPlease send pound17000 to account X at your earliest convenience and confirm once processedrdquo it says Stop ndash is this your agreed process

As the demand grows and we extend our reach out into the online world so cybercrime advances ever closer seeking unauthorised access through our front door Quite clearly online is the future but we need to embrace it with the necessary skill sets and processes in place for our convenience wellbeing and prosperity LPM

There are so many existing and newly circulating threats of this calibre and type that even the most aggressive of filtering systems struggle to keep up

Accesspoint are independent legal IT specialists who consult on a variety of information technology-related issues offering the best in IT solutions to help firms work more effectively

Contact Richard and the team on 0203 189 2645wwwtheaccesspointcouk

LEGAL PRACTICE MANAGEMENT22

SEPTEMBER 2016LPM INSIGHTS

SME law firms are in a battle for survival Whether they know it or not they have huge challenges to face in the next few years ndash around succession planning technology replacing lawyers and being

used by competitors to attain a competitive edge and catering to clients who increasingly want cost predictability transparency and availability

These market pressures were addressed at the LPM conference in May 2016 which was attended by over 100 delegates all SME legal management leaders The delegates were polled on the day about what they thought of the pressures facing them and how theyrsquore planning to overcome them ndash and their answers provide valuable insight into the SME legal market

The polling results show that LPM conference delegates were aware of the severity of the challenges they face Three-quarters of legal management leaders we polled at the 2016 LPM conference thought that the challenges theyrsquoll face in the next five to 10 years will be lsquomorersquo or lsquomuch morersquo serious than in past years And 58 of delegates thought that the challenges in the next year to two years will be lsquomore serious than in past yearsrsquo

How they will face these challenges depends at least partly on attitude ndash whether they believe they can win or will eventually lose the war Fortunately most LPM conference delegates were optimistic about their firmsrsquo futures - 81 were either lsquocautiouslyrsquo or lsquoveryrsquo optimistic about their place in the legal market of the future

This doesnrsquot necessarily suggest that theyrsquore confident in the market overall particularly after the market instability brought by Brexit Legal management leaders might believe their firm is the only one thatrsquoll survive due to expertise in a particular area or niche In any case it indicates market confidence and a confidence in the ability of their firm to compete and succeed

But is this optimism misplaced in a market where the future is increasingly uncertain and competitive Are firms really ready for change on a huge scale as their confidence might suggest What are the issues currently keeping SME legal leaders awake at night

In this report LPM shines a light on the SME legal market through the eyes of our legal management leader audience ndash those driving their firms through an uncertain new world

WHATrsquoS NEXTChange is on the agenda for LPM firms but how to address the biggest challenges and which ones to face first is a tough call finds Patrick Wingrove

More serious than in past yearsMuch more serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch less serious than in past years

51

14

8

3

24

More serious than in past yearsMuch more serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch less serious than in past years

How would you rate the challenges your firm faces in the next five to 10 years

More serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch more serious than in past yearsMuch less serious than in past years

58

17

6

0

19

More serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch more serious than in past yearsMuch less serious than in past years

How would you rate the challenges your firm faces in the next year to two years

What is the greatest hurdle to your firmrsquos growth or further success

What is the greatest hurdle to your firmrsquos growth or further success

LEGAL PRACTICE MANAGEMENT23

SEPTEMBER 2016LPM INSIGHTS

TIMES THEY ARE A CHANGINrsquo The overriding theme of the 2016 LPM conference was change ndash how firms can implement it the drivers behind it and the various blockers to it But the first step to change is gauging which factors will have the biggest impact on the legal market Just over half of legal management leaders we polled thought client pressures on cost like demanding fixed fees will have the biggest impact while just over a quarter thought it will be competitors attaining a market advantage using technology

How quickly do firms need to respond to these oncoming market pressures Well 86 of LPM conference delegates thought that change needs to happen in their firms within the next two to five years But 14 said that their firm doesnrsquot need to change significantly perhaps because theyrsquove beaten the rest to the punch their legal business is somehow immune to new pressures ndash or they have their heads in the sand

Legal has traditionally been resistant to change and itrsquos not surprising that some firms still are says Sean Stuttaford COO at Essex firm Thompson Smith and Puxon (TSP) and 2016 LPM conference delegate ldquoThere are still firms out there where partners donrsquot have computers on their desks ndash theyrsquore stuck in their ways and just point blank refuse to

52 26 5 12 5

develop their business for the futurerdquoBut legal management leaders willing to implement

change may still find it difficult as 60 of LPM conference delegates polled thought that lsquochange isnrsquot really understood at their firmrsquo

GROWING PAINSJust over a quarter of LPM conference delegates also thought that an inability to create change within their firm would be the greatest hurdle to the businessrsquos growth or further success ndash though Stuttaford at TSP suggests voters might have blamed the traditional partnership business model for the same reason

But acquiring high-quality staff was considered to be the greatest hurdle for growth or success by 36 of delegates Rebecca Patterson HR manager at Kent firm Thackray Williams and 2016 LPM conference delegate says that she agrees with this result ldquoOur firm has a particularly tough time finding quality support staff ndash we could perhaps stand to invest more in competency frameworks and performance management and training opportunities to aid recruitment and retentionrdquo

William Robins operations director at lsquodistributedrsquo firm Keystone Law and a 2016 LPM conference speaker says

12 36 27 13 12

Lack of fundsAcquiring high-quality staffInability to create change within the firmTechnologyThe traditional partnership business model

Out of these which factor is having the biggest impact on the SME legal market

Client pressures on cost (eg fixed fees)Technology creating advantage for competitorsConsolidationDifficulty in finding routes to growth (eg funding)Something else

What is the greatest hurdle to your firmrsquos growth or further success

LEGAL PRACTICE MANAGEMENT24

SEPTEMBER 2016LPM INSIGHTS

offering a more flexible remote or mobile working set-up for everyone in a firm is an excellent way to attract talent (Keystonersquos model of course is founded on remote working) Perhaps the majority of legal management leaders polled at the 2016 LPM conference agree since their firms have either adopted a flexible remote or mobile working set-up are planning to adopt one or are considering adopting one ndash though there are other advantages to remote working such as reducing overheads In any case the results indicate that the SME legal working landscape is becoming considerably more flexible

But remote working doesnrsquot work for everyone Mary Mocklow CEO at West Midlands firm Talbots Law and 2016 LPM conference delegate says that their high-street set-up wouldnrsquot allow it ldquoThe majority of our staff are client-facing and need to be present at the office ndash and while there are other staff at Talbots that might benefit from remote working you canrsquot have a policy for one and not for allrdquo

CYBER THREATSTechnology was clearly a significant concern for legal management leaders who attended the 2016 LPM conference Patterson at Thackray Williams says some firms have had a hard time finding software that caters to their needs as a business and an LPM conference poll seems to back this up just under half of legal management leaders polled at the conference thought project teams should write law firm software indicating a desire for cross-department input into its creation But the poll also indicates that legal software providers have to a large extent been meeting their clientsrsquo needs

The rising threat of cybercrime was also a clear concern for LPM conference delegates ndash 92 of SME legal management leaders said their firms have cyber risk on their management meeting agendas Stuttaford at TSP says ldquoItrsquos something firms need to be constantly aware of and take precautions against not just by purchasing good firewall and antivirus software but by educating staff about password discipline authentication processes and suchrdquo

32 18 14 33 3

Is cyber risk on your management meeting agenda

92

5 3

Yes No Dont know

Is your firm moving to a more flexible workingremote or mobile working set-up for everyone in it

YesNoConsidering itWe already do itDont know

LEGAL PRACTICE MANAGEMENT25

SEPTEMBER 2016LPM INSIGHTS

PRESSURES AND PRICINGClient pressures on cost was also a major concern for legal management leaders polled at the conference so it may not be surprising that just over half of them said 50 or more of their firmrsquos work is some form of fixed fee This doesnrsquot necessarily suggest that the other half arenrsquot open to the concept of fixed fee ndash Mocklow at Talbots points out that fixed fees work for certain types of work ldquoHigh-street firms like Talbots can benefit greatly from fixed fees which is why 75 of our work is fixed fee but itrsquos more difficult to apply to firms that specialise in something like admiralty lawrdquo

The industry seems to think that the value of service has been lost to the price obsession in some areas but not in others ndash and while pricing is clearly a vital issue for SME firms 88 of legal management leaders polled at the LPM conference thought that itrsquos lsquoone of a range of important factorsrsquo or lsquonot as important as other thingsrsquo Patterson at Thackray Williams says that maintaining a good relationship with clients is often more important than pricing though pricing can be a means to achieving client satisfaction ldquoIt also depends on the client ndash in something like conveyancing first-time buyers might be looking for fixed fees or the cheapest price but for commercial clients that may not be as important as reputation or relationshiprdquo

TREASURE MAPPINGLegal process mapping often used by lsquobig lawrsquo and making inroads into SME legal could potentially make SME firms a great deal more efficient and therefore more competitive Two-thirds of legal management leaders polled had heard of process mapping and 79 thought that it is relevant to the business of law Stuttaford at TSP says he agrees ldquoFirms should look at their processes learn from them and figure out how to improve those processes ndash this question really made us look at what TSP has done so far in terms of what legal processes wersquove mapped and whenrdquo

To sum up LPM conference delegates were aware of the challenges that face them but were mostly optimistic nonetheless This may be because they know they need to change and in spite of the fact that change isnrsquot really understood at their firms are planning to mend their ways to meet future market pressures ndash generally putting the client first while keeping talent and technology high on their agendas LPM

Are aware of this thing called legal process mapping

66

34

Has the value of service been lost to the price obsession

23

23

54

Yes No Depends on the service Dont know

Yes No

How important is price in winning business

8

4

67

21

CriticalMore important than almost all factorsIts one of a range of important factorsNot as important as other things such as relationshipsIts one of the less important things in reality

What is the greatest hurdle to your firmrsquos Are aware of this thing called legal process mapping

LEGAL PRACTICE MANAGEMENT27

SEPTEMBER 2016COLUMNSSPONSORED EDITORIAL

Welcome back LPM readers ndash the new school term has started summer is (pretty much) over and the UK is back in full throttle after the summer break And what a break itrsquos been at

File Queen HQ (wersquove taken the time to get our clients up and running with augustprojects as well as started our new Instagram feed filequeenadds)

With the start of the new learning year wersquore focused on the education of you lovely LPM readers ndash with our attention turning back to the General Data Protection Regulation You may remember that in our last LPM article we ran through the 12 steps to tackle the GDPR helped by the awesome people at the Information Commissionerrsquos Office ndash wersquove provided a link to their 12-step resource via our website wwwarchivestoragenetnewsgdpr

Over the next three columns wersquoll be taking these steps and breaking them down for you ndash starting with step one awareness The File Queen (myself) and the team at ADDS have been promoting this step as the most important for all legal practices

ldquoWhyrdquo we hear you holler Well this step is the all-important life raft that unites your practice and team members to help you in the GDPR fight for survival (dramatic I know)

Getting the team on board ndash this buy-in needs to include all ranks of staff ndash from the managing partners to your suppliers But how do you do this Well here are some File Queen tips for when we at ADDS are rolling out projects

Lunch and learn ndash with a register People love to eat and be social so get your legal business to book in a couple of lunch and learn sessions Donrsquot limit this to one date ndash you must run at least two or three so people have the option of which dates to attend Make sure you make a register for those that actually turn up (we all know a calendar acceptance doesnrsquot mean theyrsquoll actually appear) This will allow you to chase down the members of the team you need to get on board for the next one

Have some decent sandwiches nibbles and soft drinks and give the team an overview of the GDPR Run through the 12 steps and make sure you educate them on why everything is so important (make sure you mention the increased fines and audits) During this time let the team know that there are several steps along the way that yoursquoll need their help and support for and which you wonrsquot be able to achieve on your own Tell them that the businessrsquos reputation and brand is on the line and that you need everyone on board to lend a helping hand and spread the word

Another great File Queen tip at this stage is also to get some additional funding from the practice manager for a wine and quiz night at the end of the lunch and learn periods This can be part of your social gathering on a Friday straight after work ndash with some more nibbles and wine Assign people to teams and have a GDPR quiz The winning team gets an award and everyone has fun and learns at the same time Follow our twitter feed as wersquoll be tweeting some great questions to ask thefilequeen GDPRQUIZ

We know itrsquos a lot to organise but there are only four months left in 2016 and GDPR practices must be in place by 25 May 2018 And believe me when you have to roll out rather hard core legislation you have to make it fun and interactive to get people on board LPM

ABOUT

NATASHA RAWLEY THE FILE QUEEN

EDUCATING YOUR PROS

ADDSSaving firms from paper hellContact Natasha on0800 328 0272wwwarchivestoragenet

LEGAL PRACTICE MANAGEMENT28

SEPTEMBER 2016FEATURES

28

Patrick Wingrove talks to the founders of Proelium Law about their work providing legal advice in high-risk environments and conflict zones and the challenges of setting up shop in a new and risky area of law

Legal commandosProelium

Compared to the day-to-day lives of Proelium Law founders and partners Richard Stephens (above left) and Adrian Powell (centre) the average lawyer leads a pretty humdrum life Though UK-based the

firm has a strong international focus ndash Stephens and Powell regularly travel to provide legal and business advice to companies and individuals in high-risk professions or working in hazardous environments across the globe including conflict zones in Iraq Syria and Afghanistan Powell says that itrsquos a challenging but exciting area of law to be in and that ldquono two days are ever the samerdquo

The firm was established as an ABS in November 2015 allowing Powell and Stephens to operate as partners although Stephens isnrsquot a lawyer Powell qualified as a solicitor in 2004 after spending 11 years of his career in the British army and post-2006 worked on various high-risk projects around the world ndash giving him the inspiration for Proelium He says ldquoThe idea came to me in Baghdad in 2009 while working for a private security company as a legal adviser ndash I thought lsquoWhy isnrsquot there a firm doing thisrsquo But I soon realised that I needed someone on the ground who wasnrsquot a lawyer to help make it happenrdquo

That person was Stephens He previously served in the Royal Marines worked as a Whitehall-based strategic planner for the UK government and commanded a special operations regiment (which is why we couldnrsquot show you his face but itrsquos a nice issue of LPM) He now works primarily on the business development side of Proelium ldquoJoining Adrian who Irsquod previously worked with on projects around the

LAW FIRM PROFILE

LEGAL PRACTICE MANAGEMENT29

SEPTEMBER 2016FEATURES

world at a firm meant I could do fascinating and important work with the credibility that being a partner in a regulated business providesrdquo he says

Their work has certainly been interesting Proelium has cast its net far within the niche high-risk sector ndash advising UK-based service providers on the complexities of working in hostile environments conducting business and human rights due diligence and ensuring anti-money laundering counter terrorist-financing and anti-bribery compliance for companies intending to run in high-risk areas or conflict zones to name a few Recently theyrsquove also been working on developing capability for national intelligence organisations overseas ndash but for fear of being jailed for treason Stephens and Powell didnrsquot elaborate hellip

Powell says that the challenges companies face in these areas are numerous ldquoTherersquos a real technical knowledge in understanding how organisations physically work overseas These companies are good at what they do but that doesnrsquot necessarily translate into being business-savvy when it comes to operating in frontier markets ndash thatrsquos where Proelium adds valuerdquo For example after a client was recently exposed on an arms deal they were able to quickly discern liability and ensure that all necessary agencies and departments were appropriately informed

Powell and Stephens joke about how theyrsquore the number-one firm in their sector ndash admitting that to their knowledge theyrsquore the only firm that specialises in this area of law They added that itrsquos an untapped niche in which Proelium will be a pioneering force but which has also recently come onto the radar of a larger firm Theyrsquore alluding of course to Proeliumrsquos recent venture with Harrison Clark Rickerbys ndash a joining that combines Proeliumrsquos experience working in high-risk jurisdictions with the manpower and existing defence and security expertise of

HCR Powell says ldquoWhat they donrsquot have is our connections and our experience They like the idea of the sector because they see it as an interesting area and the partnership will allow us to offer a wealth of different legal services while letting us focus on what we do bestrdquo

As part of their ambitions for Proelium Powell and Stephens are keen to train a new generation of lawyers whorsquoll specialise in the high-risk sector ldquoWe have confidence in what the younger generation has to offer and we want them in our industry to continue our work in this relatively untapped areardquo says Powell Stephens adds that itrsquos also a matter of succession planning ldquoWe want the firm to operate long into the future but we donrsquot necessarily want to be running it ourselves for the next 20 yearsrdquo Proelium currently employs two interns as part of this commitment including University of Surrey law student Ruby Jamieson (pictured) She says ldquoWorking [at Proelium] has given me loads of insight already ndash itrsquos very niche

very new and Irsquove really enjoyed helping develop the business I feel that itrsquoll open a lot of doors when I graduaterdquo

In terms of expansion Proelium has recently opened a new office in the City of London Powell says that his home was originally the firmrsquos practising address but a large portion of their client-base is in London ldquoand we couldnrsquot keep having our meetings in coffee shopsrdquo

But Powell and Stephens are firm believers in the concept of remote working which works particularly well for their business

ldquoMost of our clients are either in London or outside the EU so Irsquom always away but all my phone calls are redirected from the new office to my mobile so I can keep in touch with clients whether Irsquom in Dubai or Baghdadrdquo says Stephens Powell adds that he feels remote working has the added benefit of keeping staff happy by letting them work from home which he says certainly makes him more productive as a fee earner

Proelium isnrsquot looking to expand into areas it has no interest in like family law but theyrsquore taking a keen interest in the emerging area of cyber law and are considering taking steps into that world ldquoLike high-risk law no onersquos really wrapped their arms around cyber law yet Therersquos cyber law in the US but it doesnrsquot exist per se in the UK except in terms of data protectionrdquo

When asked what advice they could give to SME firms based on their unique experiences in their sector Powell and Stephens said firms should know the areas of law they practise inside and out Powell says ldquoWersquore concerned with being experts in our field ndash a lot of our clients have peoplersquos lives in their hands and are not in the business of nonsense which is why they come to us We give sound researched legal advice based on experience and if we donrsquot know something we send the client to someone who doesrdquo LPM

ldquoCompanies are good at what they do but that doesnrsquot necessarily translate into being business-savvy when it comes to operating in frontier markets ndash thatrsquos where Proelium adds valuerdquo

Proelium

Two fee earners four total staff

Offices City of London Wirral Cheltenham

Specialisms International criminal commercial and conflict law due diligence sensitive investigations

LPM FACT FILE

ldquod2u is the UKrsquos number one outsourced transcription service for medical and legal professionals and highly competitive all over the world We pride ourselves on saving our clients time and money as well as offering state-of-the-art security and a first-rate servicerdquo Daryl Leigh CEO dictate2us

LPM magazine has agreed a special deal for its readers with dictate2us ndash 5 off your monthly

transcription bill for one year if you sign up through the dedicated LPM link or call and quote LPM2016 when signing up You can trial the service for free before committing

CUT COSTS INCREASE EFFICIENCYAll firms could benefit from outsourcing transcription to dictate2us ndash but even more so with our LPM deal 5 off your first year

wwwdictate2uscomlpm

Use d2u and enjoy the benefits ofbull Fast turnaround timesbull Secure and confidential servicebull Secetarial cost reductions of up to 60bull Guaranteed 985 minimum accuracybull iPhone Android and Blackberry apps with one-hour turnaroundbull 100 output - only pay for the time you talkbull Free no obligation trial

This special LPM magazine reader deal only relates to customers that execute an agreement for a minimum term of 12 months with a minimum monthly commitment of 500 minutes LPM magazine sought two law firm references for dictate2us to verify its claims for quality and delivery The 5 deal only applies to the first paying year the customer is with dictate2us LPM magazine is not responsible or liable in any way for work done by dictate2us and is an advertising referrer only

d u2 dic t a t e 2 u s

SPECIAL READER OFFER

The d2u Transcriber app is free to download from Apple and Android app stores and BlackBerry App World

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YOUR FIRMrsquoS FIRST YEAR OF

TRANSCRIPTIONSIGN UP ONLINE

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WHEN CALLING

LPMLEGAL PRACTICE MANAGEMENT

LPMLEGAL PRACTICE MANAGEMENT

DictateBRIEFINGv2indd 1 28042016 1336

LEGAL PRACTICE MANAGEMENT31

SEPTEMBER 2016FEATURES

Patrick Wingrove speaks to management leaders from SME and top 100 law firms that have recently achieved significant growth to find out how to go from acorn to oak tree

FROM MINNOW TO

For many SME firms growth is the goal ndash but it doesnrsquot have to happen in the ways that many have scaled in the past The era of organic slow quiet steady partnership development over decades is

increasingly at odds with a fast-paced digital world Strategies for growth in the legal market are now closer than ever to the rest of the business world ndash and any size firm can learn how to do it

Big or small there are similar tools in the box for making growth happen and similar challenges Lessons abound but some of the best can be taken from those firms not far outside the famous lsquotop 100rsquo legal businesses in the land ndash those that have already grown up and now have the top tier in their sights There are also lessons to draw from smaller but rapidly scaling law firms

There are many growth strategies for organic and acquisitive growth ndash and no easy answer for which is right for your firm To shine a light on the subject wersquove spoken both to SME and top 100 firms about growth and how to do it (and importantly how not to do it)

MAMMOTH

LEGAL PRACTICE MANAGEMENT32

SEPTEMBER 2016FEATURES

MODELS OF GROWTH According to the Lawyer the two fastest growing firms in the top 200 this year are Midlands-based Knights and lsquodistributedrsquo firm Keystone Law ndash currently placed 119 and 122 in the 2015 UK 200 rankings but whose revenue will now put them well inside the 2016 top 100 (due for release October 2016) Both attribute their growth to non-traditional business models ndash and very different non-traditional models at that

Knights corporatised in 2014 to remove the barriers from its decision making processes which CEO David Beech says has been the key to its growth ldquoEquity partnerships donrsquot grow particularly quickly because itrsquos hard to achieve consensus and make decisions that enable fundamental or rapid growth among equity partnersrdquo

Knights acquired Oxford-based Darbys earlier this year ndash a move largely behind the revenue increase that will put them in the top 100 ndash and completed the transition inside three months which Beech says would have been next to impossible under their old business structure ldquoNot only was a quick turnaround good for the books it saved significant time and money that could be invested elsewhere in the businessrdquo he says

Top 100 firm Simpson Millar is one step

ahead of Knights The firm broke the glass ceiling to become a top 100 firm in 2015 and like Knights the firm attributes its growing success to corporatisation ndash but in a different manner

It sought to be and was eventually acquired by PLC Fairpoint Group in 2014 Simpson Millar continues to run as an LLP under the same management team and existing trading brands but as a business unit within Fairpoint

Managing partner Peter Watson says that one of the key reasons to pursue this particular growth strategy was to provide an injection of capital for MampA ldquoWe completed the sizeable acquisition of Colemans last year for example which we were only able to do with considerable investment from Fairpointrdquo

Being part of a PLC has also given the firm access to strong MampA and project management capabilities ldquoAcquiring Colemans doubled the business overnight ndash for something like that you need strong MampA experience and access to that team within Fairpoint was crucial in getting the deal across the linerdquo says Watson Simpson Millar also built a strong digital strategy launched new products and focused on pricing ldquoCall it fixed fees or packaged fees the point of it was to say to consumers

Square One Law

Revenue pound5m

31 fee earners 53 total staff

Offices Newcastle-upon-Tyne

Specialisms Commercial corporate property employment EU and competition law finance litigation private client

LPM FACT FILE

Knights

Revenue pound40m (year end 2017)

375 fee earners 450 total staff

Offices Chester Cheltenham Newcastle-under-Lyme Derby Oxford Hale

Specialisms Full service firm

LPM FACT FILE

LEGAL PRACTICE MANAGEMENT33

SEPTEMBER 2016FEATURES

lsquoWith us you know exactly what yoursquoll get and how much itrsquoll costrsquordquo

PEOPLE PLEASERSThe ability to implement change has also been an important part of delivering a growth strategy This isnrsquot necessarily surprising ndash polling at the 2016 Legal Practice Management conference showed that legal business managers thought it was one of the greatest hurdles to a firmrsquos growth or success only topped by acquiring high-quality staff In Knightsrsquo case the two challenges were addressed together Beech says Knightsrsquo corporate rather than partnership structure also allows it to recruit talented people without having to deal with the inherent politics of an equity partnership

ldquoAcquiring the best talent has been a central part of our growth strategy ndash if a candidate can help the business through expertise or client following we can just recruit themrdquo he added

But a successful growth strategy incorporating talent isnrsquot just about recruiting quickly as we analysed in the July 2016 issue of LPM ndash itrsquos about recruiting well Firms also need to make themselves an attractive prospect for legal talent in order to grow

William Robins operations director at Keystone Law says his firmrsquos lsquodispersedrsquo model allows it to do that by offering new fee earners the chance to work remotely with less supervision ldquoWersquore typically hiring about a lawyer a week ndash bringing their expertise fee-earning capability and client following with them ndash and that is the core part of our growth strategyrdquo The firm has buttressed its recruitment capability by hiring a director of recruitment to focus almost entirely on lawyer enrolment (recruiting talent to recruit talent ndash neat)

Though the distributed model may not be for everyone says Robins implementing some form of flexible mobile or remote working should be part of any firmrsquos growth strategy because it allows firms to increase their fee-earning capability without accruing fixed overheads such as office premises

And there are other ways to be talent-attractive As a core part of its growth strategy Newcastle-based firm Square One Law ndash which achieved 30 growth in the

last financial year ndash has pledged to create a supportive and inspirational team environment offering high-calibre work to attract the best talent Ian Gilthorpe senior partner at Square One says ldquoGood people want to be inspired to be valued for what they do and feel as though theyrsquore making a contribution The key is to engage with all your staff to facilitate a culture where staff feel happy at work work for each other trust each other and ensure that they see the value in what they do ndash if you do that more talent will comerdquo

He added that itrsquos important for

recruitment to convey staff satisfaction to the outside world which Square One has achieved by including staff video-testimonials on its website

But recruiting is only half of an effective people strategy ndash the other is retention Simpson Millar has attempted to create an environment that its talented staff wonrsquot want to leave Says Watson ldquoToo many firms worry about what will happen if their rainmaker goes somewhere else and takes clients with them ndash so they put the shackles on make them feel unhappy and make it so that they canrsquot realise their full potentialrdquo Creating such an environment makes firms an attractive target for lateral hires when they should be building a place people want to join

PRACTICE AREASSME legal businesses donrsquot necessarily need to change their business models completely to achieve the same growth as

Thorntons

Revenue pound20m

209 fee earners 430 total staff

Offices Dundee Edinburgh St Andrews Perth Cupcar Kirkcaldy Anstruther Arbroath Montrose Forfar

Specialisms Full service firm

Keystone

Revenue pound202m

198 fee earners 230 total staff

Offices London Bristol Isle of Man Australia

Specialisms Corporate and commercial dispute resolution property

LPM FACT FILE

LPM FACT FILE

Equity partnerships donrsquot grow particularly quickly because itrsquos hard to achieve consensus and make decisions that enable fundamental or rapid growth among equity partners David Beech CEO Knights

Simpson Millar

Revenue pound316m

322 fee earners 539 total staff

Offices Birmingham Bristol Cardiff Cheadle Hulme Gateshead Kingston-upon-Thames Lancaster Leeds Park Place Leeds St Pauls Street (head office) London Manchester Newcastle

Specialisms Full service firm

LPM FACT FILE

LEGAL PRACTICE MANAGEMENT34

SEPTEMBER 2016FEATURES

our examples but removing blockers from decision-making making themselves more attractive to talent and finding the right funding for growth are increasingly important and the partnership structure may not enable it

But of course that means asking some turkeys to vote in a Yuletide election Fortunately there are other ways to achieve impressive growth mainly investment andor expansion into new geographic or practice areas

Watson says that Simpson Millar wouldnrsquot have been an attractive prospect to Fairpoint had the firm not spent time growing organically by expanding into new areas of law

ldquoWe went from being a predominantly trade union PI firm to having a broad base of 16 types of work ndash with strong heads in charge of each committed to driving growth in their departments ndash which gave us a large boost in revenuerdquo The firm achieved this through small acquisitions of other firms that had expertise in particularly lucrative areas of law

But firms shouldnrsquot just look at expanding in lucrative areas ndash they should focus on areas where their reputations deliver an advantage Scotlandrsquos Thorntons for example ndash which last year leapt from 134 to 108 in the 2015 UK 200 rankings ndash invested in six departments as part of its growth strategy

Thorntons joint managing partner Scott Milne says ldquoWe didnrsquot exclude other areas but we saw that these areas were profitable and that more importantly we had considerable expertise in them ndash we also considered that these are areas that are unlikely to be affected by future economic downturnrdquo This included investing in niche areas of law where the firm has a geographic competitive advantage ldquoWersquore lucky to be surrounded by some of the best farmland in the UK ndash wersquore well known for our expertise in rural business law which is why we invested heavily in itrdquo

ORGANIC V ACQUISITIONIn several ways choosing an effective growth strategy very much boils down to MampA versus organic growth ndash every business model talent or area expansion strategy appears to revolve around one or both But which is the best to achieve the kind of growth thatrsquoll propel firms to a lsquohockey stickrsquo on their revenue forecasts The short answer is it depends on whatrsquos best for a firm at a given time It either

needs to fit the firm ndash or the firm needs to change to fit the goal

Beech says that acquisition has been excellent for Knights because itrsquos a fast and effective form of expansion ndash the acquisition of Darbys more than doubled its revenue But MampA poses a significant challenge to finding firms with the right cultural fit

ldquoFirms need to establish a single culture in order to implement growth ndash everyone needs to be working towards the same goalrdquo He added that when a firm completes a merger or acquisition that firm has to be integrated from day one which is much more difficult if it has a significantly different culture Knights is planning to continue recruiting and complete more acquisitions in the next year to maintain the growth curve

Of course the big problem with acquisition is money Robins at Keystone says his firm lies at the opposite end of this

INFORMATION IS EMPOWERING

Lemington Spa-based firm Wright Hassall has a specific goal of breaking into the top 100 and as part of its growth strategy expanded into areas of the UK where its expertise is highly sought after ndash using customer relationship management in the background to underpin the firmrsquos activities in specific areas Martyn Wells IT director at the firm says ldquoWersquove zoomed in on specific industry sectors that we know are performing well in the Midlands sectors where we have a superb reputationrdquo Expanding geographically as Wells outlines needs data to get right Thorntons for example identified various lsquomicro-marketsrsquo in Scotland close to its base of operations ldquoWe acquired a firm in St Andrews because itrsquos like a micro-economy (or micro-market) that doesnrsquot seem to be affected by price drops in the residential market elsewhererdquo says Thorntons joint managing partner Scott Milne Knights has another take on the geographic targeting idea ndash it intends to stay out of the large cities (London Manchester Leeds for example) and expand into areas where there is little competition As David Beech CEO at Knights explains ldquoLast September we acquired a small team in Chester of about 11 lawyers and now thatrsquos expanded to just over 70 ndash and the main reason wersquove been able to do that is because there isnrsquot a lot of competition thererdquoUltimately this all comes down to research finding out what to invest in or where to expand and perhaps most importantly finding out what clients want

LEGAL PRACTICE MANAGEMENT35

SEPTEMBER 2016FEATURES

spectrum to the way Knights has grown emphasising organic growth finding innovative means to attract talent using technology to drive efficiency and branching out into new areas of law or new markets to achieve significant growth

Square One Law also espouses the organic route ndash believing that firms with growth in mind should focus on ensuring their external brand reflects the businessrsquos internal culture and behaviours of its team creating lsquosynergyrsquo between the business and its clients

Gilthorpe says ldquoMergers ndash and there is no such thing as a true merger ndash and acquisitions can be a distraction as you look to create a new culture and separate the wheat from the chaff and this can soak up a lot of energy that would otherwise be put to use in driving the progression of the business and the focus on client servicerdquo

The best option for some firms may be a

calculated combination of MampA and organic Thorntons for example having made several acquisitions is now focusing on organic growth moving away from geographical expansion and towards developing locations and its brand

Watson at Simpson Millar sums the mixed approach up thus ldquoItrsquos a mixture Acquisition is still very much a part of the mix but in parallel to that itrsquos important to demonstrate that yoursquore developing ongoing work rather than being driven solely by acquisitionrdquo

There are clearly many different ways to achieve healthy and assertive growth though there are no easy answers as to which way is right for your firm But it is clear that growth doesnrsquot have to happen in the ways many have previously achieved it ndash innovation and lateral thinking are the means of achieving significant growth (which might one day propel you into the top 100 you never know) LPM

LEGAL PRACTICE MANAGEMENT36

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

INDUSTRY VIEWS

36LEGAL PRACTICE MANAGEMENT

Legal is becoming an ever more digital industry giving firms the chance to become more efficient flexible agile and collaborative

INDUSTRY VIEWS INDEX

ONLINEOFFICES

36

SPONSORED EDITORIAL

INDUSTRY VIEWS

37 INTERVIEW

Paperless processLinetimersquos Tony Klejnow explains the benefits of using matter management software for law firms and their clients

39 INTERVIEW

Virtual expansionNigel Redwood Nasstarrsquos CEO talks about the advantages of having a managed flexible IT infrastructure

LEGAL PRACTICE MANAGEMENT37

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT37

Competition and price pressures and an increasingly digital client base are all significant drivers for law firms to become paperless

businesses Tony Klejnow Linetimersquos managing director says firms could achieve competitive advantage by introducing paperless solutions across their businesses ndash but a particular lsquoeasy winrsquo area is matter management

ldquoFee earners are required to keep detailed records of their cases but the amount of time and money they waste physically printing filing looking for collaborating on and updating files is alarmingrdquo says Klejnow Law firms have traditionally been reluctant to adopt paperless

workflow solutions he adds because workflow doesnrsquot apply to 99 of fee earnersrsquo work ldquoBut if they adopted paperless solutions in their back office processes they could reduce costs without affecting client service boost productivity and promote collaboration ndash making them more efficient flexible and cost effective and making them more competitive in an ever-changing legal marketrdquo

MATTER MATTERSDocument and matter management tools ndash like those in Linetimersquos legal software product Liberate ndash electronically store and organise all case documentation in an online database Klejnow says that there are two immediate benefits of paperless matter

PAPERLESS PROCESS

Tony Klejnow managing director at Linetime talks to LPM about the benefits of the paperless office ndash starting with filing and back office processes

INDUSTRY VIEWS

Linetime is a specialist provider of Microsoft-based practice and case management solutions Clients include mid-tier law firms and in-house legal departmentswwwlinetimecouk

ABOUT THE SPONSOR

SPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT38

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT 38

management The first is reducing paper and storage costs

ldquoIf case documentation is electronically stored once a case is finished you no longer have a five-inches-thick file that has to be stored for six years ndash which has to reside somewhere and costs firms time space and moneyrdquo The second is eliminating filing time ndash for example instead of printing and filing emails and attachments fee earners drag and drop emails directly from Outlook into the database ldquoand attachments are automatically stripped from emails and appropriately filedrdquo says Klejnow

And Klejnow says paperless filing systems donrsquot just facilitate efficiency this way ndash they also improve general process efficiency by facilitating collaboration between fee earners Solicitors can use document and matter management to view and work on matters at the same time a difficult if not impossible prospect when working with paper files Klejnow says ldquoWithout document management legal professionals work in silos but with it they immediately share datardquo He adds that Liberate has an additional collaboration tool to help further improve collaborative efficiency in firms ldquoIf I choose to lsquocollaboratersquo a document with you on Liberate Outlook will prompt you to review that document by simply acknowledging the notificationrdquo

In this respect moving to become a paperless business provides greater flexibility for fee earners who can collaborate with colleagues working remotely or in different offices Klejnow says ldquoPaper files can only reside in one location but electronic files can be accessed from any office and when working from home or with clientsrdquo On the other side of the coin having digital files maintains a greater level of productivity in a law firm office ldquoIf your colleague is absent from the office you can easily find documents that you might have otherwise wasted a significant portion of your day looking forrdquo he adds

Improved external collaboration is also a benefit that firms can reap from paperless matter management With an electronic system you can go into a case history bundle documents into one PDF file and quickly submit that to the third party improving collaboration between fee earners and clients who want to do everything online This has the added benefit of improving accuracy and facilitating greater efficiency by involving clients in the process ldquoGood matter management software should also let you push e-forms to clients to be filled in and that information is automatically transferred straight to the online database ndash which saves fee earners

time and is a more accurate because the information doesnrsquot have to be constantly re-enteredrdquo says Klejnow

This extra level of collaboration within legal businesses that hasnrsquot been possible until now has long been needed because it improves efficiency and productivity which makes the business more profitable and competitive Klejnow adds that what firms save by adopting matter management they should reinvest in becoming fully paperless digital businesses

ldquoCase management solutions can improve efficiency to an even greater extent and keep firms competitive in the age of the alternative business structuresrdquo

VISIBLE COMPLIANCEIn response to firms reluctant to adopt paperless technologies like document and matter management for fear of losing delicate information to cybercriminals Klejnow says those systems provide an additional level of security ldquoTaking data and attachments out of Outlook and storing them on a database is much more secure than leaving them on your hard drive If you leave

your laptop on a train for example all your important data is safely stored on a server and not instantly accessible by opportunist criminalsrdquo

Document and matter management also offers a greater level of security in fee earner and client communications ldquoIf I want you to check that the data we have for you is accurate Liberate will

direct you to a page holding your data and at the same time it will push out an SMS text with a pin code to your phone Unless you input the code you canrsquot get to the web page ndash which means if one of your solicitors accidentally sends an email to the wrong person or itrsquos intercepted it doesnrsquot matter The data stays safe ndash this level of security is crucial in this age of cybercrimerdquo

These security features clearly have significant benefits for compliance which is important in a market increasingly dictated by regulation including the relatively new General Data Protection Regulation says Klejnow

ldquoCompliance officers need to be seen by regulators to have monitored and reviewed everything thatrsquos happened in their firm which is considerably easier with a paperless system Liberate has lsquoversion controlrsquo which allows compliance officers to keep tabs on every change made to a document as well as a compliance module which lets them view whatrsquos happening on a case (to ensure that money laundering checks have been carried out and so on) and records the fact that yoursquove reviewed thisrdquo LPM

Without document management legal professionals work in silos but with it they immediately share data

INTERVIEW

LEGAL PRACTICE MANAGEMENT39

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LPM readers may already know the Nasstar Group ndash but by a different name Nasstar was launched by regular LPM-contributor e-knownet to consolidate four discrete hosted

managed IT businesses (including e-knownet) after a period of significant acquisition Nigel Redwood chief executive officer at Nasstar says merger and acquisition and consolidating brands is challenging but having a flexible hosted IT infrastructure makes the process significantly easier

ldquoManaged IT services are enormously beneficial for firms that are expanding or consolidating particularly after MampA in terms of time and productivity cost savings and flexibilityrdquo He adds that by just having managed desktops firms can attain competitive advantage by reducing overheads and becoming more flexible and agile

Nasstar has experience helping SME firms with their IT systems after MampA and knows what problems to look out for creating unity among staff used to using different systems and processes the cost and time it takes to expand an IT infrastructure and the geographic distance between new offices

Redwood says that MampA can be an excellent way for legal businesses to expand into new sectors but that consolidating new departments using different IT systems and processes is challenging

ldquoOur acquisitions for example introduced new sector focuses for us in the SME legal market ndash wersquove consolidated these into a wider service base under Nasstar and facilitated unity among staff using virtual IT solutions

rdquoVirtual IT solutions help facilitate unity across the business by providing a level of consistency in an IT infrastructure Everyone immediately uses the same applications on the same versions from wherever theyrsquore working creating unity faster collaboration across teams and effective information sharingrdquo Hosted IT infrastructures are also continually updated giving staff instant access to new updates applications and technologies as they become available

The next significant challenge firms face after MampA is expanding their IT infrastructure to accommodate an influx of new staff ndash but Redwood says virtual IT solutions let firms expand their IT infrastructure at the flick of a switch

ldquoWith virtual IT firms arenrsquot held back by the size of their servers or the amount of computer power theyrsquove got ndash they simply call their IT provider and ask for an upgrade when previously theyrsquod have been

subject to lengthy and costly IT upgradesrdquo Virtual IT solutions are also easy to budget for

Redwood says ldquoYoursquore not going to be surprised by an increased fixed asset expenditure ndash services like those offered by Nasstar are an operational cost and fixed per user per month through a scalable cost modelrdquo

Geographic distance inhibiting collaboration between merged offices is also a key consideration for firms after MampA but virtual IT solutions solve this problem Redwood says a virtual IT infrastructure can minimise travel through the use of hosted virtual meeting rooms and video technology Staff can use this technology from virtually anywhere which is why it also lends itself well to remote flexible or mobile working set-ups

VIRTUAL WORKPLACERemote working is becoming an increasingly present feature of the legal landscape because of its cost saving and recruitment and retention advantages ndash the majority of firms at the LPM conference 2016 were moving towards a flexible remote or mobile working set-up or already had one

Redwood says virtual IT solutions better enable staff who work remotely ldquoHosted managed desktop solutions for example let staff work with the same applications from any device in the world safely and securelyrdquo

But remote working isnrsquot only about enabling the current workforce itrsquos about attracting future talent Redwood says that millennials donrsquot necessarily want to work as their predecessors did ndash they expect greater flexibility in the workplace which at one level can be achieved by remote working facilitated by a managed desktop

ldquoAnd itrsquos not only about attracting millennialsrdquo he says ldquoSME firms with flexible working set-ups are becoming more attractive to experienced legal talent who may be frustrated by the rigidity of their firmrdquo As a firm expands its workforce in this manner firms with virtual IT solutions reap the lsquodoublersquo cost saving benefits of not having to expand their premises or IT infrastructure accordingly

Some firms are resistant to remote working based on hosted IT services believing they arenrsquot secure ndash but Redwood says that argument ldquocan be put to bedrdquo

ldquoFor an in-house IT team to have the level of security that an organisation like ours can deliver is near impossible financially as well as in terms of the

VIRTUALSANITYNigel Redwood CEO at Nasstar talks to LPM about how managed IT can help SME firms achieve competitive advantage by making them more agile and flexible

LEGAL PRACTICE MANAGEMENT40

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

INTERVIEW

level of systems and technologies they deployrdquo Cybercrime is of course a scary and constantly evolving threat but Redwood points out that virtual IT systems have dedicated teams monitoring these threats evolving cyber defences and changing systems accordingly

ldquoThis capability not only makes [firms] a lot more secure but gives peace of mind in terms of compliancerdquo

ONLINE ADVANTAGE Redwood says virtual IT infrastructures donrsquot just pertain to lsquobig lawrsquo but to SME firms as well ndash perhaps more so

ldquoVirtual IT systems are a way for SME firms to stay competitive against their larger

counterparts and ABSs ndash it gives them a greater ability to expand it lets them adopt more flexible and agile models and is easy to budget forrdquo Firms can also expect virtual IT solutions to enable better alignment of IT resources to business needs enhanced usability with anywhere anytime access and in-built business continuity

But the greatest advantage virtual IT offers SME firms over big law is agility Redwood says ldquoBig IT departments in firms can be slow to react cumbersome and held back by the limitations of hardware infrastructure and security issues ndash all of that is removed with a solution like ours and the customer has access to fast-moving agile ITrdquo LPM

ABOUT THE SPONSOR

Nasstar is a provider of managed IT services and tailor-made cloud hosted solutions ndash delivering innovative secure and agile IT to help clients accomplish their business objectiveswwwnasstarcom

Page 15: LPM September 2016

LEGAL PRACTICE MANAGEMENT16

SEPTEMBER 2016COLUMNSSPONSORED EDITORIAL

DOUG HARGROVE THE TECHNOLOGIST

DISRUPTION TO GO

ABOUT Change isnrsquot anything new itrsquos just another word for evolution But lsquodisruptionrsquo is certainly one of the words of the decade and one that is

usually connected to revolution ndash a significant alteration to the status quo and one that has far more immediate impacts

Disruption is also the go-to word for business commentators ndash especially when it comes to lsquodisruptive techrsquo ndash talking about new business start-ups or innovations Take the very latest craze to hit the headlines ndash Pokeacutemon Go has seemingly gripped the world these last few weeks with stock valuations heading skyward and comments about the app lsquodisruptingrsquo mobile gaming But therersquos nothing disruptive about the game it takes and utilises technology thatrsquos been around for nearly a decade (geolocation and augmented reality) and applies it in a new way Itrsquos that application of technology thatrsquos causing the disruption

Businesses like Uber and Netflix have built compelling business models on the groundwork of technology that is now pervasive (the smartphone and broadband internet respectively) Therersquos a lot here that firms can learn from itrsquos not necessarily about inventing new technology but about finding ways to use existing technology to create a new approach

So what opportunities are there for law firms to disrupt This can be looked at in two ways ndash disruption to the existing law firm business model and disruption to the user experience The first scenario has already been covered at length and is nothing new for the legal market there are already plenty of law firms out there

looking to change the way a law firm delivers its services to its clients and prospects ndash from franchise models to virtualised law firms Disruption to the law firm business model has been an ongoing force ever since the term ABS became associated with legal practices

The second scenario is a different matter It seems legal clients have been patiently waiting for the lsquodisruptive service deliveryrsquo model to come and there is plenty of opportunity out there for firms to position themselves differently with the modern consumer of legal services

Take a brief example of where old (or rather existing) technology can be used to differentiate ndash videoconferencing Itrsquos a fairly ubiquitous piece of technology thanks to the rise of Skype Facetime and the webcam which gives an instant user experience and a one-to-one connection that bridges the remoteness of a phone call and the need to travel for a meeting It doesnrsquot take much of a leap to imagine a service that allows consumers to access a lawyer instantly using this technology (maybe even a concept that combines the franchise model with an Uber-style app ndash connecting clients to the next available expert from a selection of associated law firms) The point is you donrsquot have to invent something new to be a disrupter ndash donrsquot be afraid to take existing technology and repurpose it to gain a competitive advantage

There are plenty of consumers of legal services who are willing to try out a new service or offering in the search for that great new experience ndash and for those law firms prepared to take the risk and disrupt there really is an opportunity to catch lsquoem all LPM

Advanced LegalRevolutionary solutions for legal services Contact Doug on 01476 573 718wwwadvanced-legalcouk

Advisory

Design

Development

Delivery

Support

If you would like to know morethen please get in touch

wwwsoftclcominfosoftclcomFREEPHONE 0808 164 0000

Leeds office15 St Pauls Street Leeds LS1 2JG

Manchester officeExchange Quay Building 8 Suite 21 Salford Manchester M5 3EJ

Helping Law Firms to improve business performance through their use of IT

C

M

Y

CM

MY

CY

CMY

K

SoftwareCloud_A4_Advert_V4pdf 1 20082016 1130

LEGAL PRACTICE MANAGEMENT18

SEPTEMBER 2016COLUMNS

JANINE PARKER THE BROKER

WHAT PRICE EXCLUSIVITY

Itrsquos that wonderful time of year when the annual bombardment of brokers begins on your never-silent telephones All of them can ldquocarry out a full market exerciserdquo for you that will of course save you money

But whatrsquos the reality The marketplace is still murky and as a profession we donrsquot help ourselves by keeping it opaque So letrsquos objectively consider many of the claims brokers make attempt to clarify the true mechanics behind the market and consider how to best utilise it for the benefit of your firm

Since 2000 and the demise of the Solicitors Indemnity Fund competition for solicitors professional indemnity has increased This hasnrsquot always been generated through the number of insurers but the ever-increasing number of brokers who purport to be experts in this very niche area of insurance This has increased pressure on insurers to lower prices (a good thing for clients up to a certain point) but this pressure combined with some extreme economic factors has contributed to many insurers withdrawing from the market over the past decade

Competition is good for consumers and it encourages innovation to make sure that brokers and insurers can differentiate themselves by developing their product offering

Some brokers organise lsquoexclusiversquo arrangements with insurers often segmented by the number of partners within the firm ndash which is a very artificial way of dividing up the profession But this is the marketplace wersquore in today and itrsquos worth looking a little closer at these lsquoexclusivesrsquo

All the direct access points are listed in the Law Society buyer guide and in practice itrsquos only a handful of brokers who actually hold the exclusive with direct access to the underwriters It is essential to note that these exclusive agreements are not always lsquotiedrsquo arrangements The broker is not bound to place all their business with their one exclusive insurer and itrsquos often the case that those brokers who hold the exclusive arrangement also enjoy strong relationships with the open market insurers

To increase distribution brokers who hold exclusive arrangements will offer access to other brokers who wish to take advantage of the exclusive products available These brokers donrsquot have their own facilities There are many commercial reasons for opening an exclusive to other brokers but itrsquos important to note that the extra broker in the chain will dilute your relationship with the placing broker and ultimately your insurer Marketing materials can often be unclear as access to exclusives is readily used ndash but in reality these brokers will be approaching another broker to do this

Often law firms will be unaware of the number of brokers in the chain and will unwittingly be paying additional brokerage and fees unnecessarily Direct access allows for better communication between your firm and insurers which can often lead to more competitive pricing Removing a broker from the chain can lead to the process of claims handling being more efficient and effective as there are less obstacles in the chain of communication

In summary no one broker has direct access to every insurer and it is possible to approach more than one broker and not be at risk of flooding the market If using more than one broker be clear who you would like them to approach and be aware whether they have to go through another broker to ultimately reach the insurer LPM

ABOUT

SPONSORED EDITORIAL

ParagonBetter broking for legalContact Janine on 020 7280 8200wwwparagonbrokerscom

LPMLEGAL PRACTICE MANAGEMENT

SUPPLEMENT SEPTEMBER 2016

BUSINESS INFORMATION FOR EVERYONE IN PRACTICE MANAGEMENT

LPM INSIGHTS

Sponsored by

How do SME law firm management leaders see the future

LEGAL PRACTICE MANAGEMENT20

SEPTEMBER 2016LPM INSIGHTS

ALL CHANGE

22WHATrsquoS NEXT We analyse the 2016 LPM conference polling data

2 1 COMMENT Accesspointrsquos Richard Roebuck on legalrsquos increasing digital dangers

Change and transformation are words that strike fear into the most hardened of legal management hearts because they are hard to do and even

harder to make stick But change must happen inside todayrsquos SME law firms to make sure they stay in business in tomorrowrsquos world

At this yearrsquos Legal Practice Management conference in London we polled our audience of law firm management delegates on a range of topics Some questions wersquove been asking since our first LPM conference back in the misty era of 2012 Much has changed in the world since then (new UK governments drones are now lsquoa thingrsquo Donald Trump) but legal not so much The rise of the ABS has been slow (though impactful) and the recession has for many businesses faded into a distant memory compared to the Brexit debate

But SME law firms rightly smell a real need for change in the wind ndash and perhaps though they seem to find it hard to name that change the clues are legion Letrsquos find some

LPM London 2016 delegates named the greatest hurdles to their firmsrsquo growth or further success as lsquoacquiring high-quality staffrsquo and the lsquoinability to create change within the firmrsquo Might the solution to one lie in the other Great talent wants to flock to fresh and vigorous businesses and younger legal eagles are increasingly shy of throwing their lots in with the fusty world of partnership Law firm leaders must look at how their businesses are run and who runs them and how people work if they are to attract great people ndash and in doing so they will create the change they seek

Herersquos another 52 of delegates named lsquoclient pressures on costrsquo the factor thatrsquos having the biggest impact on the SME legal market ndash but when asked how important price is when winning business 67 said itrsquos just lsquoone of a range of important factorsrsquo while 21 said itrsquos lsquonot as important as other things such as relationshipsrsquo This is a disparity I canrsquot quite understand but it doesnrsquot sound like the SME legal market truly gets the shift thatrsquos happening on the client side and how much change needs to happen inside firms to meet this challenge

Read on and come to your own conclusions but I think the clues are now becoming obvious I hope your firm sees them too LPM

Rupert Collins-White editor-in-chiefLPMmag | rupertwlsncouk

You donrsquot as the song goes need to be a weatherman to know which way the wind is blowing in the legal market ndash but just because the clues are there doesnrsquot mean you can be complacent about acting on them

CONTENTS

FEATURES

LEGAL PRACTICE MANAGEMENT21

SEPTEMBER 2016LPM INSIGHTS

MORE TECHMORE SECURITY

INTRODUCTION TO THE RESEARCH FROM OUR SPONSOR RICHARD ROEBUCK MANAGING DIRECTOR ACCESSPOINT

After a recent period of uncertainty it would now seem that most firms are confident about their future especially in light of Brexit Whatrsquos also certain is

that most firms are very conscious that to compete they will need to change and adapt themselves for the challenges ahead

With growing concerns about the lack of high-quality people available and what appears to be a reliance on quality individuals driving more lucrative fee-earning work is it time for a gear change

Perhaps the dawn of high-volume low-margin fixed fee work which many firms feared has now arrived As always with change there are challenges to be faced but for those clever early adopters there lies opportunity Making light of the more process-driven tasks and finding more effective efficient ways of completion to deliver client-facing benefits seems key to the wider future of the fixed fee legal landscape

With the growing acceptance of cloud technology and the increasing introduction of new software applications and solutions the legal world has moved on at an improved pace this past couple of years And the world is now clearly keen for more ndash to satisfy its desire for a more accessible and mobile working environment What is key for this trend is that the lsquoquality of the deliverablersquo has an ongoing programme of improvement that benefits both the firm and its clients

As progress pulls us forward there will always be elements arrayed against us Alongside the opportunities hiding in the polling from LPM this year therersquos also a sense of fear and concern around possibly the biggest threat to risk and security there is right now ndash the dark byproduct of technological success cybercrime

Cybercrime is fast growing with ever more complex attacks making headlines It is now one of the most common criminal offences in the UK An increasing number of individuals are exploiting the speed and anonymity of the internet to commit a wide range of criminal activities having no conscience and knowing no borders

It isnrsquot our fault websites get hacked but poor internet safety habits can put us at risk Reusing passwords or using weak passwords make us easy targets for identity theft Remembering multiple passwords can be a pain but there are web services and associated applications that can help such as two factor authentication quality mail management systems URL threat protection and mail encryption

For many firms the biggest threats tend to be by way of the ever-open door into our networks and devices ndash email

Our eagerness to respond almost instantly to emails throughout what will be for most an already pressured day is perhaps the dominant daily activity to foster an unwanted lapse in security In the past 18 months alone I have seen three firms that were truly caught out ndash some with the potential for significant financial penalty by opening email attachments The most common lsquogotcharsquo is an email that appears to have come from the office scanning platform whereby the email address has been cleverly spoofed to appear legitimate (for example downstairscopiermyfirmdomaincouk) There are so many existing and newly circulating threats of this calibre and type that even the most aggressive of filtering systems struggle to keep up

Do you know the name(s) of your copiers and the associated email addresses Do you stop to think before opening the innocuous Word attachment ldquoDoesnrsquot our scanner usually send PDF files Why has a covering note not been included with the attachmentrdquo Stop think and call for advice

Another infamous scam is the spoofing of email addresses of key people within your firm ndash for example an email to the head of accounts appears to be from the senior partner ldquoPlease send pound17000 to account X at your earliest convenience and confirm once processedrdquo it says Stop ndash is this your agreed process

As the demand grows and we extend our reach out into the online world so cybercrime advances ever closer seeking unauthorised access through our front door Quite clearly online is the future but we need to embrace it with the necessary skill sets and processes in place for our convenience wellbeing and prosperity LPM

There are so many existing and newly circulating threats of this calibre and type that even the most aggressive of filtering systems struggle to keep up

Accesspoint are independent legal IT specialists who consult on a variety of information technology-related issues offering the best in IT solutions to help firms work more effectively

Contact Richard and the team on 0203 189 2645wwwtheaccesspointcouk

LEGAL PRACTICE MANAGEMENT22

SEPTEMBER 2016LPM INSIGHTS

SME law firms are in a battle for survival Whether they know it or not they have huge challenges to face in the next few years ndash around succession planning technology replacing lawyers and being

used by competitors to attain a competitive edge and catering to clients who increasingly want cost predictability transparency and availability

These market pressures were addressed at the LPM conference in May 2016 which was attended by over 100 delegates all SME legal management leaders The delegates were polled on the day about what they thought of the pressures facing them and how theyrsquore planning to overcome them ndash and their answers provide valuable insight into the SME legal market

The polling results show that LPM conference delegates were aware of the severity of the challenges they face Three-quarters of legal management leaders we polled at the 2016 LPM conference thought that the challenges theyrsquoll face in the next five to 10 years will be lsquomorersquo or lsquomuch morersquo serious than in past years And 58 of delegates thought that the challenges in the next year to two years will be lsquomore serious than in past yearsrsquo

How they will face these challenges depends at least partly on attitude ndash whether they believe they can win or will eventually lose the war Fortunately most LPM conference delegates were optimistic about their firmsrsquo futures - 81 were either lsquocautiouslyrsquo or lsquoveryrsquo optimistic about their place in the legal market of the future

This doesnrsquot necessarily suggest that theyrsquore confident in the market overall particularly after the market instability brought by Brexit Legal management leaders might believe their firm is the only one thatrsquoll survive due to expertise in a particular area or niche In any case it indicates market confidence and a confidence in the ability of their firm to compete and succeed

But is this optimism misplaced in a market where the future is increasingly uncertain and competitive Are firms really ready for change on a huge scale as their confidence might suggest What are the issues currently keeping SME legal leaders awake at night

In this report LPM shines a light on the SME legal market through the eyes of our legal management leader audience ndash those driving their firms through an uncertain new world

WHATrsquoS NEXTChange is on the agenda for LPM firms but how to address the biggest challenges and which ones to face first is a tough call finds Patrick Wingrove

More serious than in past yearsMuch more serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch less serious than in past years

51

14

8

3

24

More serious than in past yearsMuch more serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch less serious than in past years

How would you rate the challenges your firm faces in the next five to 10 years

More serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch more serious than in past yearsMuch less serious than in past years

58

17

6

0

19

More serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch more serious than in past yearsMuch less serious than in past years

How would you rate the challenges your firm faces in the next year to two years

What is the greatest hurdle to your firmrsquos growth or further success

What is the greatest hurdle to your firmrsquos growth or further success

LEGAL PRACTICE MANAGEMENT23

SEPTEMBER 2016LPM INSIGHTS

TIMES THEY ARE A CHANGINrsquo The overriding theme of the 2016 LPM conference was change ndash how firms can implement it the drivers behind it and the various blockers to it But the first step to change is gauging which factors will have the biggest impact on the legal market Just over half of legal management leaders we polled thought client pressures on cost like demanding fixed fees will have the biggest impact while just over a quarter thought it will be competitors attaining a market advantage using technology

How quickly do firms need to respond to these oncoming market pressures Well 86 of LPM conference delegates thought that change needs to happen in their firms within the next two to five years But 14 said that their firm doesnrsquot need to change significantly perhaps because theyrsquove beaten the rest to the punch their legal business is somehow immune to new pressures ndash or they have their heads in the sand

Legal has traditionally been resistant to change and itrsquos not surprising that some firms still are says Sean Stuttaford COO at Essex firm Thompson Smith and Puxon (TSP) and 2016 LPM conference delegate ldquoThere are still firms out there where partners donrsquot have computers on their desks ndash theyrsquore stuck in their ways and just point blank refuse to

52 26 5 12 5

develop their business for the futurerdquoBut legal management leaders willing to implement

change may still find it difficult as 60 of LPM conference delegates polled thought that lsquochange isnrsquot really understood at their firmrsquo

GROWING PAINSJust over a quarter of LPM conference delegates also thought that an inability to create change within their firm would be the greatest hurdle to the businessrsquos growth or further success ndash though Stuttaford at TSP suggests voters might have blamed the traditional partnership business model for the same reason

But acquiring high-quality staff was considered to be the greatest hurdle for growth or success by 36 of delegates Rebecca Patterson HR manager at Kent firm Thackray Williams and 2016 LPM conference delegate says that she agrees with this result ldquoOur firm has a particularly tough time finding quality support staff ndash we could perhaps stand to invest more in competency frameworks and performance management and training opportunities to aid recruitment and retentionrdquo

William Robins operations director at lsquodistributedrsquo firm Keystone Law and a 2016 LPM conference speaker says

12 36 27 13 12

Lack of fundsAcquiring high-quality staffInability to create change within the firmTechnologyThe traditional partnership business model

Out of these which factor is having the biggest impact on the SME legal market

Client pressures on cost (eg fixed fees)Technology creating advantage for competitorsConsolidationDifficulty in finding routes to growth (eg funding)Something else

What is the greatest hurdle to your firmrsquos growth or further success

LEGAL PRACTICE MANAGEMENT24

SEPTEMBER 2016LPM INSIGHTS

offering a more flexible remote or mobile working set-up for everyone in a firm is an excellent way to attract talent (Keystonersquos model of course is founded on remote working) Perhaps the majority of legal management leaders polled at the 2016 LPM conference agree since their firms have either adopted a flexible remote or mobile working set-up are planning to adopt one or are considering adopting one ndash though there are other advantages to remote working such as reducing overheads In any case the results indicate that the SME legal working landscape is becoming considerably more flexible

But remote working doesnrsquot work for everyone Mary Mocklow CEO at West Midlands firm Talbots Law and 2016 LPM conference delegate says that their high-street set-up wouldnrsquot allow it ldquoThe majority of our staff are client-facing and need to be present at the office ndash and while there are other staff at Talbots that might benefit from remote working you canrsquot have a policy for one and not for allrdquo

CYBER THREATSTechnology was clearly a significant concern for legal management leaders who attended the 2016 LPM conference Patterson at Thackray Williams says some firms have had a hard time finding software that caters to their needs as a business and an LPM conference poll seems to back this up just under half of legal management leaders polled at the conference thought project teams should write law firm software indicating a desire for cross-department input into its creation But the poll also indicates that legal software providers have to a large extent been meeting their clientsrsquo needs

The rising threat of cybercrime was also a clear concern for LPM conference delegates ndash 92 of SME legal management leaders said their firms have cyber risk on their management meeting agendas Stuttaford at TSP says ldquoItrsquos something firms need to be constantly aware of and take precautions against not just by purchasing good firewall and antivirus software but by educating staff about password discipline authentication processes and suchrdquo

32 18 14 33 3

Is cyber risk on your management meeting agenda

92

5 3

Yes No Dont know

Is your firm moving to a more flexible workingremote or mobile working set-up for everyone in it

YesNoConsidering itWe already do itDont know

LEGAL PRACTICE MANAGEMENT25

SEPTEMBER 2016LPM INSIGHTS

PRESSURES AND PRICINGClient pressures on cost was also a major concern for legal management leaders polled at the conference so it may not be surprising that just over half of them said 50 or more of their firmrsquos work is some form of fixed fee This doesnrsquot necessarily suggest that the other half arenrsquot open to the concept of fixed fee ndash Mocklow at Talbots points out that fixed fees work for certain types of work ldquoHigh-street firms like Talbots can benefit greatly from fixed fees which is why 75 of our work is fixed fee but itrsquos more difficult to apply to firms that specialise in something like admiralty lawrdquo

The industry seems to think that the value of service has been lost to the price obsession in some areas but not in others ndash and while pricing is clearly a vital issue for SME firms 88 of legal management leaders polled at the LPM conference thought that itrsquos lsquoone of a range of important factorsrsquo or lsquonot as important as other thingsrsquo Patterson at Thackray Williams says that maintaining a good relationship with clients is often more important than pricing though pricing can be a means to achieving client satisfaction ldquoIt also depends on the client ndash in something like conveyancing first-time buyers might be looking for fixed fees or the cheapest price but for commercial clients that may not be as important as reputation or relationshiprdquo

TREASURE MAPPINGLegal process mapping often used by lsquobig lawrsquo and making inroads into SME legal could potentially make SME firms a great deal more efficient and therefore more competitive Two-thirds of legal management leaders polled had heard of process mapping and 79 thought that it is relevant to the business of law Stuttaford at TSP says he agrees ldquoFirms should look at their processes learn from them and figure out how to improve those processes ndash this question really made us look at what TSP has done so far in terms of what legal processes wersquove mapped and whenrdquo

To sum up LPM conference delegates were aware of the challenges that face them but were mostly optimistic nonetheless This may be because they know they need to change and in spite of the fact that change isnrsquot really understood at their firms are planning to mend their ways to meet future market pressures ndash generally putting the client first while keeping talent and technology high on their agendas LPM

Are aware of this thing called legal process mapping

66

34

Has the value of service been lost to the price obsession

23

23

54

Yes No Depends on the service Dont know

Yes No

How important is price in winning business

8

4

67

21

CriticalMore important than almost all factorsIts one of a range of important factorsNot as important as other things such as relationshipsIts one of the less important things in reality

What is the greatest hurdle to your firmrsquos Are aware of this thing called legal process mapping

LEGAL PRACTICE MANAGEMENT27

SEPTEMBER 2016COLUMNSSPONSORED EDITORIAL

Welcome back LPM readers ndash the new school term has started summer is (pretty much) over and the UK is back in full throttle after the summer break And what a break itrsquos been at

File Queen HQ (wersquove taken the time to get our clients up and running with augustprojects as well as started our new Instagram feed filequeenadds)

With the start of the new learning year wersquore focused on the education of you lovely LPM readers ndash with our attention turning back to the General Data Protection Regulation You may remember that in our last LPM article we ran through the 12 steps to tackle the GDPR helped by the awesome people at the Information Commissionerrsquos Office ndash wersquove provided a link to their 12-step resource via our website wwwarchivestoragenetnewsgdpr

Over the next three columns wersquoll be taking these steps and breaking them down for you ndash starting with step one awareness The File Queen (myself) and the team at ADDS have been promoting this step as the most important for all legal practices

ldquoWhyrdquo we hear you holler Well this step is the all-important life raft that unites your practice and team members to help you in the GDPR fight for survival (dramatic I know)

Getting the team on board ndash this buy-in needs to include all ranks of staff ndash from the managing partners to your suppliers But how do you do this Well here are some File Queen tips for when we at ADDS are rolling out projects

Lunch and learn ndash with a register People love to eat and be social so get your legal business to book in a couple of lunch and learn sessions Donrsquot limit this to one date ndash you must run at least two or three so people have the option of which dates to attend Make sure you make a register for those that actually turn up (we all know a calendar acceptance doesnrsquot mean theyrsquoll actually appear) This will allow you to chase down the members of the team you need to get on board for the next one

Have some decent sandwiches nibbles and soft drinks and give the team an overview of the GDPR Run through the 12 steps and make sure you educate them on why everything is so important (make sure you mention the increased fines and audits) During this time let the team know that there are several steps along the way that yoursquoll need their help and support for and which you wonrsquot be able to achieve on your own Tell them that the businessrsquos reputation and brand is on the line and that you need everyone on board to lend a helping hand and spread the word

Another great File Queen tip at this stage is also to get some additional funding from the practice manager for a wine and quiz night at the end of the lunch and learn periods This can be part of your social gathering on a Friday straight after work ndash with some more nibbles and wine Assign people to teams and have a GDPR quiz The winning team gets an award and everyone has fun and learns at the same time Follow our twitter feed as wersquoll be tweeting some great questions to ask thefilequeen GDPRQUIZ

We know itrsquos a lot to organise but there are only four months left in 2016 and GDPR practices must be in place by 25 May 2018 And believe me when you have to roll out rather hard core legislation you have to make it fun and interactive to get people on board LPM

ABOUT

NATASHA RAWLEY THE FILE QUEEN

EDUCATING YOUR PROS

ADDSSaving firms from paper hellContact Natasha on0800 328 0272wwwarchivestoragenet

LEGAL PRACTICE MANAGEMENT28

SEPTEMBER 2016FEATURES

28

Patrick Wingrove talks to the founders of Proelium Law about their work providing legal advice in high-risk environments and conflict zones and the challenges of setting up shop in a new and risky area of law

Legal commandosProelium

Compared to the day-to-day lives of Proelium Law founders and partners Richard Stephens (above left) and Adrian Powell (centre) the average lawyer leads a pretty humdrum life Though UK-based the

firm has a strong international focus ndash Stephens and Powell regularly travel to provide legal and business advice to companies and individuals in high-risk professions or working in hazardous environments across the globe including conflict zones in Iraq Syria and Afghanistan Powell says that itrsquos a challenging but exciting area of law to be in and that ldquono two days are ever the samerdquo

The firm was established as an ABS in November 2015 allowing Powell and Stephens to operate as partners although Stephens isnrsquot a lawyer Powell qualified as a solicitor in 2004 after spending 11 years of his career in the British army and post-2006 worked on various high-risk projects around the world ndash giving him the inspiration for Proelium He says ldquoThe idea came to me in Baghdad in 2009 while working for a private security company as a legal adviser ndash I thought lsquoWhy isnrsquot there a firm doing thisrsquo But I soon realised that I needed someone on the ground who wasnrsquot a lawyer to help make it happenrdquo

That person was Stephens He previously served in the Royal Marines worked as a Whitehall-based strategic planner for the UK government and commanded a special operations regiment (which is why we couldnrsquot show you his face but itrsquos a nice issue of LPM) He now works primarily on the business development side of Proelium ldquoJoining Adrian who Irsquod previously worked with on projects around the

LAW FIRM PROFILE

LEGAL PRACTICE MANAGEMENT29

SEPTEMBER 2016FEATURES

world at a firm meant I could do fascinating and important work with the credibility that being a partner in a regulated business providesrdquo he says

Their work has certainly been interesting Proelium has cast its net far within the niche high-risk sector ndash advising UK-based service providers on the complexities of working in hostile environments conducting business and human rights due diligence and ensuring anti-money laundering counter terrorist-financing and anti-bribery compliance for companies intending to run in high-risk areas or conflict zones to name a few Recently theyrsquove also been working on developing capability for national intelligence organisations overseas ndash but for fear of being jailed for treason Stephens and Powell didnrsquot elaborate hellip

Powell says that the challenges companies face in these areas are numerous ldquoTherersquos a real technical knowledge in understanding how organisations physically work overseas These companies are good at what they do but that doesnrsquot necessarily translate into being business-savvy when it comes to operating in frontier markets ndash thatrsquos where Proelium adds valuerdquo For example after a client was recently exposed on an arms deal they were able to quickly discern liability and ensure that all necessary agencies and departments were appropriately informed

Powell and Stephens joke about how theyrsquore the number-one firm in their sector ndash admitting that to their knowledge theyrsquore the only firm that specialises in this area of law They added that itrsquos an untapped niche in which Proelium will be a pioneering force but which has also recently come onto the radar of a larger firm Theyrsquore alluding of course to Proeliumrsquos recent venture with Harrison Clark Rickerbys ndash a joining that combines Proeliumrsquos experience working in high-risk jurisdictions with the manpower and existing defence and security expertise of

HCR Powell says ldquoWhat they donrsquot have is our connections and our experience They like the idea of the sector because they see it as an interesting area and the partnership will allow us to offer a wealth of different legal services while letting us focus on what we do bestrdquo

As part of their ambitions for Proelium Powell and Stephens are keen to train a new generation of lawyers whorsquoll specialise in the high-risk sector ldquoWe have confidence in what the younger generation has to offer and we want them in our industry to continue our work in this relatively untapped areardquo says Powell Stephens adds that itrsquos also a matter of succession planning ldquoWe want the firm to operate long into the future but we donrsquot necessarily want to be running it ourselves for the next 20 yearsrdquo Proelium currently employs two interns as part of this commitment including University of Surrey law student Ruby Jamieson (pictured) She says ldquoWorking [at Proelium] has given me loads of insight already ndash itrsquos very niche

very new and Irsquove really enjoyed helping develop the business I feel that itrsquoll open a lot of doors when I graduaterdquo

In terms of expansion Proelium has recently opened a new office in the City of London Powell says that his home was originally the firmrsquos practising address but a large portion of their client-base is in London ldquoand we couldnrsquot keep having our meetings in coffee shopsrdquo

But Powell and Stephens are firm believers in the concept of remote working which works particularly well for their business

ldquoMost of our clients are either in London or outside the EU so Irsquom always away but all my phone calls are redirected from the new office to my mobile so I can keep in touch with clients whether Irsquom in Dubai or Baghdadrdquo says Stephens Powell adds that he feels remote working has the added benefit of keeping staff happy by letting them work from home which he says certainly makes him more productive as a fee earner

Proelium isnrsquot looking to expand into areas it has no interest in like family law but theyrsquore taking a keen interest in the emerging area of cyber law and are considering taking steps into that world ldquoLike high-risk law no onersquos really wrapped their arms around cyber law yet Therersquos cyber law in the US but it doesnrsquot exist per se in the UK except in terms of data protectionrdquo

When asked what advice they could give to SME firms based on their unique experiences in their sector Powell and Stephens said firms should know the areas of law they practise inside and out Powell says ldquoWersquore concerned with being experts in our field ndash a lot of our clients have peoplersquos lives in their hands and are not in the business of nonsense which is why they come to us We give sound researched legal advice based on experience and if we donrsquot know something we send the client to someone who doesrdquo LPM

ldquoCompanies are good at what they do but that doesnrsquot necessarily translate into being business-savvy when it comes to operating in frontier markets ndash thatrsquos where Proelium adds valuerdquo

Proelium

Two fee earners four total staff

Offices City of London Wirral Cheltenham

Specialisms International criminal commercial and conflict law due diligence sensitive investigations

LPM FACT FILE

ldquod2u is the UKrsquos number one outsourced transcription service for medical and legal professionals and highly competitive all over the world We pride ourselves on saving our clients time and money as well as offering state-of-the-art security and a first-rate servicerdquo Daryl Leigh CEO dictate2us

LPM magazine has agreed a special deal for its readers with dictate2us ndash 5 off your monthly

transcription bill for one year if you sign up through the dedicated LPM link or call and quote LPM2016 when signing up You can trial the service for free before committing

CUT COSTS INCREASE EFFICIENCYAll firms could benefit from outsourcing transcription to dictate2us ndash but even more so with our LPM deal 5 off your first year

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Use d2u and enjoy the benefits ofbull Fast turnaround timesbull Secure and confidential servicebull Secetarial cost reductions of up to 60bull Guaranteed 985 minimum accuracybull iPhone Android and Blackberry apps with one-hour turnaroundbull 100 output - only pay for the time you talkbull Free no obligation trial

This special LPM magazine reader deal only relates to customers that execute an agreement for a minimum term of 12 months with a minimum monthly commitment of 500 minutes LPM magazine sought two law firm references for dictate2us to verify its claims for quality and delivery The 5 deal only applies to the first paying year the customer is with dictate2us LPM magazine is not responsible or liable in any way for work done by dictate2us and is an advertising referrer only

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LPMLEGAL PRACTICE MANAGEMENT

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LEGAL PRACTICE MANAGEMENT31

SEPTEMBER 2016FEATURES

Patrick Wingrove speaks to management leaders from SME and top 100 law firms that have recently achieved significant growth to find out how to go from acorn to oak tree

FROM MINNOW TO

For many SME firms growth is the goal ndash but it doesnrsquot have to happen in the ways that many have scaled in the past The era of organic slow quiet steady partnership development over decades is

increasingly at odds with a fast-paced digital world Strategies for growth in the legal market are now closer than ever to the rest of the business world ndash and any size firm can learn how to do it

Big or small there are similar tools in the box for making growth happen and similar challenges Lessons abound but some of the best can be taken from those firms not far outside the famous lsquotop 100rsquo legal businesses in the land ndash those that have already grown up and now have the top tier in their sights There are also lessons to draw from smaller but rapidly scaling law firms

There are many growth strategies for organic and acquisitive growth ndash and no easy answer for which is right for your firm To shine a light on the subject wersquove spoken both to SME and top 100 firms about growth and how to do it (and importantly how not to do it)

MAMMOTH

LEGAL PRACTICE MANAGEMENT32

SEPTEMBER 2016FEATURES

MODELS OF GROWTH According to the Lawyer the two fastest growing firms in the top 200 this year are Midlands-based Knights and lsquodistributedrsquo firm Keystone Law ndash currently placed 119 and 122 in the 2015 UK 200 rankings but whose revenue will now put them well inside the 2016 top 100 (due for release October 2016) Both attribute their growth to non-traditional business models ndash and very different non-traditional models at that

Knights corporatised in 2014 to remove the barriers from its decision making processes which CEO David Beech says has been the key to its growth ldquoEquity partnerships donrsquot grow particularly quickly because itrsquos hard to achieve consensus and make decisions that enable fundamental or rapid growth among equity partnersrdquo

Knights acquired Oxford-based Darbys earlier this year ndash a move largely behind the revenue increase that will put them in the top 100 ndash and completed the transition inside three months which Beech says would have been next to impossible under their old business structure ldquoNot only was a quick turnaround good for the books it saved significant time and money that could be invested elsewhere in the businessrdquo he says

Top 100 firm Simpson Millar is one step

ahead of Knights The firm broke the glass ceiling to become a top 100 firm in 2015 and like Knights the firm attributes its growing success to corporatisation ndash but in a different manner

It sought to be and was eventually acquired by PLC Fairpoint Group in 2014 Simpson Millar continues to run as an LLP under the same management team and existing trading brands but as a business unit within Fairpoint

Managing partner Peter Watson says that one of the key reasons to pursue this particular growth strategy was to provide an injection of capital for MampA ldquoWe completed the sizeable acquisition of Colemans last year for example which we were only able to do with considerable investment from Fairpointrdquo

Being part of a PLC has also given the firm access to strong MampA and project management capabilities ldquoAcquiring Colemans doubled the business overnight ndash for something like that you need strong MampA experience and access to that team within Fairpoint was crucial in getting the deal across the linerdquo says Watson Simpson Millar also built a strong digital strategy launched new products and focused on pricing ldquoCall it fixed fees or packaged fees the point of it was to say to consumers

Square One Law

Revenue pound5m

31 fee earners 53 total staff

Offices Newcastle-upon-Tyne

Specialisms Commercial corporate property employment EU and competition law finance litigation private client

LPM FACT FILE

Knights

Revenue pound40m (year end 2017)

375 fee earners 450 total staff

Offices Chester Cheltenham Newcastle-under-Lyme Derby Oxford Hale

Specialisms Full service firm

LPM FACT FILE

LEGAL PRACTICE MANAGEMENT33

SEPTEMBER 2016FEATURES

lsquoWith us you know exactly what yoursquoll get and how much itrsquoll costrsquordquo

PEOPLE PLEASERSThe ability to implement change has also been an important part of delivering a growth strategy This isnrsquot necessarily surprising ndash polling at the 2016 Legal Practice Management conference showed that legal business managers thought it was one of the greatest hurdles to a firmrsquos growth or success only topped by acquiring high-quality staff In Knightsrsquo case the two challenges were addressed together Beech says Knightsrsquo corporate rather than partnership structure also allows it to recruit talented people without having to deal with the inherent politics of an equity partnership

ldquoAcquiring the best talent has been a central part of our growth strategy ndash if a candidate can help the business through expertise or client following we can just recruit themrdquo he added

But a successful growth strategy incorporating talent isnrsquot just about recruiting quickly as we analysed in the July 2016 issue of LPM ndash itrsquos about recruiting well Firms also need to make themselves an attractive prospect for legal talent in order to grow

William Robins operations director at Keystone Law says his firmrsquos lsquodispersedrsquo model allows it to do that by offering new fee earners the chance to work remotely with less supervision ldquoWersquore typically hiring about a lawyer a week ndash bringing their expertise fee-earning capability and client following with them ndash and that is the core part of our growth strategyrdquo The firm has buttressed its recruitment capability by hiring a director of recruitment to focus almost entirely on lawyer enrolment (recruiting talent to recruit talent ndash neat)

Though the distributed model may not be for everyone says Robins implementing some form of flexible mobile or remote working should be part of any firmrsquos growth strategy because it allows firms to increase their fee-earning capability without accruing fixed overheads such as office premises

And there are other ways to be talent-attractive As a core part of its growth strategy Newcastle-based firm Square One Law ndash which achieved 30 growth in the

last financial year ndash has pledged to create a supportive and inspirational team environment offering high-calibre work to attract the best talent Ian Gilthorpe senior partner at Square One says ldquoGood people want to be inspired to be valued for what they do and feel as though theyrsquore making a contribution The key is to engage with all your staff to facilitate a culture where staff feel happy at work work for each other trust each other and ensure that they see the value in what they do ndash if you do that more talent will comerdquo

He added that itrsquos important for

recruitment to convey staff satisfaction to the outside world which Square One has achieved by including staff video-testimonials on its website

But recruiting is only half of an effective people strategy ndash the other is retention Simpson Millar has attempted to create an environment that its talented staff wonrsquot want to leave Says Watson ldquoToo many firms worry about what will happen if their rainmaker goes somewhere else and takes clients with them ndash so they put the shackles on make them feel unhappy and make it so that they canrsquot realise their full potentialrdquo Creating such an environment makes firms an attractive target for lateral hires when they should be building a place people want to join

PRACTICE AREASSME legal businesses donrsquot necessarily need to change their business models completely to achieve the same growth as

Thorntons

Revenue pound20m

209 fee earners 430 total staff

Offices Dundee Edinburgh St Andrews Perth Cupcar Kirkcaldy Anstruther Arbroath Montrose Forfar

Specialisms Full service firm

Keystone

Revenue pound202m

198 fee earners 230 total staff

Offices London Bristol Isle of Man Australia

Specialisms Corporate and commercial dispute resolution property

LPM FACT FILE

LPM FACT FILE

Equity partnerships donrsquot grow particularly quickly because itrsquos hard to achieve consensus and make decisions that enable fundamental or rapid growth among equity partners David Beech CEO Knights

Simpson Millar

Revenue pound316m

322 fee earners 539 total staff

Offices Birmingham Bristol Cardiff Cheadle Hulme Gateshead Kingston-upon-Thames Lancaster Leeds Park Place Leeds St Pauls Street (head office) London Manchester Newcastle

Specialisms Full service firm

LPM FACT FILE

LEGAL PRACTICE MANAGEMENT34

SEPTEMBER 2016FEATURES

our examples but removing blockers from decision-making making themselves more attractive to talent and finding the right funding for growth are increasingly important and the partnership structure may not enable it

But of course that means asking some turkeys to vote in a Yuletide election Fortunately there are other ways to achieve impressive growth mainly investment andor expansion into new geographic or practice areas

Watson says that Simpson Millar wouldnrsquot have been an attractive prospect to Fairpoint had the firm not spent time growing organically by expanding into new areas of law

ldquoWe went from being a predominantly trade union PI firm to having a broad base of 16 types of work ndash with strong heads in charge of each committed to driving growth in their departments ndash which gave us a large boost in revenuerdquo The firm achieved this through small acquisitions of other firms that had expertise in particularly lucrative areas of law

But firms shouldnrsquot just look at expanding in lucrative areas ndash they should focus on areas where their reputations deliver an advantage Scotlandrsquos Thorntons for example ndash which last year leapt from 134 to 108 in the 2015 UK 200 rankings ndash invested in six departments as part of its growth strategy

Thorntons joint managing partner Scott Milne says ldquoWe didnrsquot exclude other areas but we saw that these areas were profitable and that more importantly we had considerable expertise in them ndash we also considered that these are areas that are unlikely to be affected by future economic downturnrdquo This included investing in niche areas of law where the firm has a geographic competitive advantage ldquoWersquore lucky to be surrounded by some of the best farmland in the UK ndash wersquore well known for our expertise in rural business law which is why we invested heavily in itrdquo

ORGANIC V ACQUISITIONIn several ways choosing an effective growth strategy very much boils down to MampA versus organic growth ndash every business model talent or area expansion strategy appears to revolve around one or both But which is the best to achieve the kind of growth thatrsquoll propel firms to a lsquohockey stickrsquo on their revenue forecasts The short answer is it depends on whatrsquos best for a firm at a given time It either

needs to fit the firm ndash or the firm needs to change to fit the goal

Beech says that acquisition has been excellent for Knights because itrsquos a fast and effective form of expansion ndash the acquisition of Darbys more than doubled its revenue But MampA poses a significant challenge to finding firms with the right cultural fit

ldquoFirms need to establish a single culture in order to implement growth ndash everyone needs to be working towards the same goalrdquo He added that when a firm completes a merger or acquisition that firm has to be integrated from day one which is much more difficult if it has a significantly different culture Knights is planning to continue recruiting and complete more acquisitions in the next year to maintain the growth curve

Of course the big problem with acquisition is money Robins at Keystone says his firm lies at the opposite end of this

INFORMATION IS EMPOWERING

Lemington Spa-based firm Wright Hassall has a specific goal of breaking into the top 100 and as part of its growth strategy expanded into areas of the UK where its expertise is highly sought after ndash using customer relationship management in the background to underpin the firmrsquos activities in specific areas Martyn Wells IT director at the firm says ldquoWersquove zoomed in on specific industry sectors that we know are performing well in the Midlands sectors where we have a superb reputationrdquo Expanding geographically as Wells outlines needs data to get right Thorntons for example identified various lsquomicro-marketsrsquo in Scotland close to its base of operations ldquoWe acquired a firm in St Andrews because itrsquos like a micro-economy (or micro-market) that doesnrsquot seem to be affected by price drops in the residential market elsewhererdquo says Thorntons joint managing partner Scott Milne Knights has another take on the geographic targeting idea ndash it intends to stay out of the large cities (London Manchester Leeds for example) and expand into areas where there is little competition As David Beech CEO at Knights explains ldquoLast September we acquired a small team in Chester of about 11 lawyers and now thatrsquos expanded to just over 70 ndash and the main reason wersquove been able to do that is because there isnrsquot a lot of competition thererdquoUltimately this all comes down to research finding out what to invest in or where to expand and perhaps most importantly finding out what clients want

LEGAL PRACTICE MANAGEMENT35

SEPTEMBER 2016FEATURES

spectrum to the way Knights has grown emphasising organic growth finding innovative means to attract talent using technology to drive efficiency and branching out into new areas of law or new markets to achieve significant growth

Square One Law also espouses the organic route ndash believing that firms with growth in mind should focus on ensuring their external brand reflects the businessrsquos internal culture and behaviours of its team creating lsquosynergyrsquo between the business and its clients

Gilthorpe says ldquoMergers ndash and there is no such thing as a true merger ndash and acquisitions can be a distraction as you look to create a new culture and separate the wheat from the chaff and this can soak up a lot of energy that would otherwise be put to use in driving the progression of the business and the focus on client servicerdquo

The best option for some firms may be a

calculated combination of MampA and organic Thorntons for example having made several acquisitions is now focusing on organic growth moving away from geographical expansion and towards developing locations and its brand

Watson at Simpson Millar sums the mixed approach up thus ldquoItrsquos a mixture Acquisition is still very much a part of the mix but in parallel to that itrsquos important to demonstrate that yoursquore developing ongoing work rather than being driven solely by acquisitionrdquo

There are clearly many different ways to achieve healthy and assertive growth though there are no easy answers as to which way is right for your firm But it is clear that growth doesnrsquot have to happen in the ways many have previously achieved it ndash innovation and lateral thinking are the means of achieving significant growth (which might one day propel you into the top 100 you never know) LPM

LEGAL PRACTICE MANAGEMENT36

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

INDUSTRY VIEWS

36LEGAL PRACTICE MANAGEMENT

Legal is becoming an ever more digital industry giving firms the chance to become more efficient flexible agile and collaborative

INDUSTRY VIEWS INDEX

ONLINEOFFICES

36

SPONSORED EDITORIAL

INDUSTRY VIEWS

37 INTERVIEW

Paperless processLinetimersquos Tony Klejnow explains the benefits of using matter management software for law firms and their clients

39 INTERVIEW

Virtual expansionNigel Redwood Nasstarrsquos CEO talks about the advantages of having a managed flexible IT infrastructure

LEGAL PRACTICE MANAGEMENT37

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT37

Competition and price pressures and an increasingly digital client base are all significant drivers for law firms to become paperless

businesses Tony Klejnow Linetimersquos managing director says firms could achieve competitive advantage by introducing paperless solutions across their businesses ndash but a particular lsquoeasy winrsquo area is matter management

ldquoFee earners are required to keep detailed records of their cases but the amount of time and money they waste physically printing filing looking for collaborating on and updating files is alarmingrdquo says Klejnow Law firms have traditionally been reluctant to adopt paperless

workflow solutions he adds because workflow doesnrsquot apply to 99 of fee earnersrsquo work ldquoBut if they adopted paperless solutions in their back office processes they could reduce costs without affecting client service boost productivity and promote collaboration ndash making them more efficient flexible and cost effective and making them more competitive in an ever-changing legal marketrdquo

MATTER MATTERSDocument and matter management tools ndash like those in Linetimersquos legal software product Liberate ndash electronically store and organise all case documentation in an online database Klejnow says that there are two immediate benefits of paperless matter

PAPERLESS PROCESS

Tony Klejnow managing director at Linetime talks to LPM about the benefits of the paperless office ndash starting with filing and back office processes

INDUSTRY VIEWS

Linetime is a specialist provider of Microsoft-based practice and case management solutions Clients include mid-tier law firms and in-house legal departmentswwwlinetimecouk

ABOUT THE SPONSOR

SPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT38

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT 38

management The first is reducing paper and storage costs

ldquoIf case documentation is electronically stored once a case is finished you no longer have a five-inches-thick file that has to be stored for six years ndash which has to reside somewhere and costs firms time space and moneyrdquo The second is eliminating filing time ndash for example instead of printing and filing emails and attachments fee earners drag and drop emails directly from Outlook into the database ldquoand attachments are automatically stripped from emails and appropriately filedrdquo says Klejnow

And Klejnow says paperless filing systems donrsquot just facilitate efficiency this way ndash they also improve general process efficiency by facilitating collaboration between fee earners Solicitors can use document and matter management to view and work on matters at the same time a difficult if not impossible prospect when working with paper files Klejnow says ldquoWithout document management legal professionals work in silos but with it they immediately share datardquo He adds that Liberate has an additional collaboration tool to help further improve collaborative efficiency in firms ldquoIf I choose to lsquocollaboratersquo a document with you on Liberate Outlook will prompt you to review that document by simply acknowledging the notificationrdquo

In this respect moving to become a paperless business provides greater flexibility for fee earners who can collaborate with colleagues working remotely or in different offices Klejnow says ldquoPaper files can only reside in one location but electronic files can be accessed from any office and when working from home or with clientsrdquo On the other side of the coin having digital files maintains a greater level of productivity in a law firm office ldquoIf your colleague is absent from the office you can easily find documents that you might have otherwise wasted a significant portion of your day looking forrdquo he adds

Improved external collaboration is also a benefit that firms can reap from paperless matter management With an electronic system you can go into a case history bundle documents into one PDF file and quickly submit that to the third party improving collaboration between fee earners and clients who want to do everything online This has the added benefit of improving accuracy and facilitating greater efficiency by involving clients in the process ldquoGood matter management software should also let you push e-forms to clients to be filled in and that information is automatically transferred straight to the online database ndash which saves fee earners

time and is a more accurate because the information doesnrsquot have to be constantly re-enteredrdquo says Klejnow

This extra level of collaboration within legal businesses that hasnrsquot been possible until now has long been needed because it improves efficiency and productivity which makes the business more profitable and competitive Klejnow adds that what firms save by adopting matter management they should reinvest in becoming fully paperless digital businesses

ldquoCase management solutions can improve efficiency to an even greater extent and keep firms competitive in the age of the alternative business structuresrdquo

VISIBLE COMPLIANCEIn response to firms reluctant to adopt paperless technologies like document and matter management for fear of losing delicate information to cybercriminals Klejnow says those systems provide an additional level of security ldquoTaking data and attachments out of Outlook and storing them on a database is much more secure than leaving them on your hard drive If you leave

your laptop on a train for example all your important data is safely stored on a server and not instantly accessible by opportunist criminalsrdquo

Document and matter management also offers a greater level of security in fee earner and client communications ldquoIf I want you to check that the data we have for you is accurate Liberate will

direct you to a page holding your data and at the same time it will push out an SMS text with a pin code to your phone Unless you input the code you canrsquot get to the web page ndash which means if one of your solicitors accidentally sends an email to the wrong person or itrsquos intercepted it doesnrsquot matter The data stays safe ndash this level of security is crucial in this age of cybercrimerdquo

These security features clearly have significant benefits for compliance which is important in a market increasingly dictated by regulation including the relatively new General Data Protection Regulation says Klejnow

ldquoCompliance officers need to be seen by regulators to have monitored and reviewed everything thatrsquos happened in their firm which is considerably easier with a paperless system Liberate has lsquoversion controlrsquo which allows compliance officers to keep tabs on every change made to a document as well as a compliance module which lets them view whatrsquos happening on a case (to ensure that money laundering checks have been carried out and so on) and records the fact that yoursquove reviewed thisrdquo LPM

Without document management legal professionals work in silos but with it they immediately share data

INTERVIEW

LEGAL PRACTICE MANAGEMENT39

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LPM readers may already know the Nasstar Group ndash but by a different name Nasstar was launched by regular LPM-contributor e-knownet to consolidate four discrete hosted

managed IT businesses (including e-knownet) after a period of significant acquisition Nigel Redwood chief executive officer at Nasstar says merger and acquisition and consolidating brands is challenging but having a flexible hosted IT infrastructure makes the process significantly easier

ldquoManaged IT services are enormously beneficial for firms that are expanding or consolidating particularly after MampA in terms of time and productivity cost savings and flexibilityrdquo He adds that by just having managed desktops firms can attain competitive advantage by reducing overheads and becoming more flexible and agile

Nasstar has experience helping SME firms with their IT systems after MampA and knows what problems to look out for creating unity among staff used to using different systems and processes the cost and time it takes to expand an IT infrastructure and the geographic distance between new offices

Redwood says that MampA can be an excellent way for legal businesses to expand into new sectors but that consolidating new departments using different IT systems and processes is challenging

ldquoOur acquisitions for example introduced new sector focuses for us in the SME legal market ndash wersquove consolidated these into a wider service base under Nasstar and facilitated unity among staff using virtual IT solutions

rdquoVirtual IT solutions help facilitate unity across the business by providing a level of consistency in an IT infrastructure Everyone immediately uses the same applications on the same versions from wherever theyrsquore working creating unity faster collaboration across teams and effective information sharingrdquo Hosted IT infrastructures are also continually updated giving staff instant access to new updates applications and technologies as they become available

The next significant challenge firms face after MampA is expanding their IT infrastructure to accommodate an influx of new staff ndash but Redwood says virtual IT solutions let firms expand their IT infrastructure at the flick of a switch

ldquoWith virtual IT firms arenrsquot held back by the size of their servers or the amount of computer power theyrsquove got ndash they simply call their IT provider and ask for an upgrade when previously theyrsquod have been

subject to lengthy and costly IT upgradesrdquo Virtual IT solutions are also easy to budget for

Redwood says ldquoYoursquore not going to be surprised by an increased fixed asset expenditure ndash services like those offered by Nasstar are an operational cost and fixed per user per month through a scalable cost modelrdquo

Geographic distance inhibiting collaboration between merged offices is also a key consideration for firms after MampA but virtual IT solutions solve this problem Redwood says a virtual IT infrastructure can minimise travel through the use of hosted virtual meeting rooms and video technology Staff can use this technology from virtually anywhere which is why it also lends itself well to remote flexible or mobile working set-ups

VIRTUAL WORKPLACERemote working is becoming an increasingly present feature of the legal landscape because of its cost saving and recruitment and retention advantages ndash the majority of firms at the LPM conference 2016 were moving towards a flexible remote or mobile working set-up or already had one

Redwood says virtual IT solutions better enable staff who work remotely ldquoHosted managed desktop solutions for example let staff work with the same applications from any device in the world safely and securelyrdquo

But remote working isnrsquot only about enabling the current workforce itrsquos about attracting future talent Redwood says that millennials donrsquot necessarily want to work as their predecessors did ndash they expect greater flexibility in the workplace which at one level can be achieved by remote working facilitated by a managed desktop

ldquoAnd itrsquos not only about attracting millennialsrdquo he says ldquoSME firms with flexible working set-ups are becoming more attractive to experienced legal talent who may be frustrated by the rigidity of their firmrdquo As a firm expands its workforce in this manner firms with virtual IT solutions reap the lsquodoublersquo cost saving benefits of not having to expand their premises or IT infrastructure accordingly

Some firms are resistant to remote working based on hosted IT services believing they arenrsquot secure ndash but Redwood says that argument ldquocan be put to bedrdquo

ldquoFor an in-house IT team to have the level of security that an organisation like ours can deliver is near impossible financially as well as in terms of the

VIRTUALSANITYNigel Redwood CEO at Nasstar talks to LPM about how managed IT can help SME firms achieve competitive advantage by making them more agile and flexible

LEGAL PRACTICE MANAGEMENT40

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

INTERVIEW

level of systems and technologies they deployrdquo Cybercrime is of course a scary and constantly evolving threat but Redwood points out that virtual IT systems have dedicated teams monitoring these threats evolving cyber defences and changing systems accordingly

ldquoThis capability not only makes [firms] a lot more secure but gives peace of mind in terms of compliancerdquo

ONLINE ADVANTAGE Redwood says virtual IT infrastructures donrsquot just pertain to lsquobig lawrsquo but to SME firms as well ndash perhaps more so

ldquoVirtual IT systems are a way for SME firms to stay competitive against their larger

counterparts and ABSs ndash it gives them a greater ability to expand it lets them adopt more flexible and agile models and is easy to budget forrdquo Firms can also expect virtual IT solutions to enable better alignment of IT resources to business needs enhanced usability with anywhere anytime access and in-built business continuity

But the greatest advantage virtual IT offers SME firms over big law is agility Redwood says ldquoBig IT departments in firms can be slow to react cumbersome and held back by the limitations of hardware infrastructure and security issues ndash all of that is removed with a solution like ours and the customer has access to fast-moving agile ITrdquo LPM

ABOUT THE SPONSOR

Nasstar is a provider of managed IT services and tailor-made cloud hosted solutions ndash delivering innovative secure and agile IT to help clients accomplish their business objectiveswwwnasstarcom

Page 16: LPM September 2016

Advisory

Design

Development

Delivery

Support

If you would like to know morethen please get in touch

wwwsoftclcominfosoftclcomFREEPHONE 0808 164 0000

Leeds office15 St Pauls Street Leeds LS1 2JG

Manchester officeExchange Quay Building 8 Suite 21 Salford Manchester M5 3EJ

Helping Law Firms to improve business performance through their use of IT

C

M

Y

CM

MY

CY

CMY

K

SoftwareCloud_A4_Advert_V4pdf 1 20082016 1130

LEGAL PRACTICE MANAGEMENT18

SEPTEMBER 2016COLUMNS

JANINE PARKER THE BROKER

WHAT PRICE EXCLUSIVITY

Itrsquos that wonderful time of year when the annual bombardment of brokers begins on your never-silent telephones All of them can ldquocarry out a full market exerciserdquo for you that will of course save you money

But whatrsquos the reality The marketplace is still murky and as a profession we donrsquot help ourselves by keeping it opaque So letrsquos objectively consider many of the claims brokers make attempt to clarify the true mechanics behind the market and consider how to best utilise it for the benefit of your firm

Since 2000 and the demise of the Solicitors Indemnity Fund competition for solicitors professional indemnity has increased This hasnrsquot always been generated through the number of insurers but the ever-increasing number of brokers who purport to be experts in this very niche area of insurance This has increased pressure on insurers to lower prices (a good thing for clients up to a certain point) but this pressure combined with some extreme economic factors has contributed to many insurers withdrawing from the market over the past decade

Competition is good for consumers and it encourages innovation to make sure that brokers and insurers can differentiate themselves by developing their product offering

Some brokers organise lsquoexclusiversquo arrangements with insurers often segmented by the number of partners within the firm ndash which is a very artificial way of dividing up the profession But this is the marketplace wersquore in today and itrsquos worth looking a little closer at these lsquoexclusivesrsquo

All the direct access points are listed in the Law Society buyer guide and in practice itrsquos only a handful of brokers who actually hold the exclusive with direct access to the underwriters It is essential to note that these exclusive agreements are not always lsquotiedrsquo arrangements The broker is not bound to place all their business with their one exclusive insurer and itrsquos often the case that those brokers who hold the exclusive arrangement also enjoy strong relationships with the open market insurers

To increase distribution brokers who hold exclusive arrangements will offer access to other brokers who wish to take advantage of the exclusive products available These brokers donrsquot have their own facilities There are many commercial reasons for opening an exclusive to other brokers but itrsquos important to note that the extra broker in the chain will dilute your relationship with the placing broker and ultimately your insurer Marketing materials can often be unclear as access to exclusives is readily used ndash but in reality these brokers will be approaching another broker to do this

Often law firms will be unaware of the number of brokers in the chain and will unwittingly be paying additional brokerage and fees unnecessarily Direct access allows for better communication between your firm and insurers which can often lead to more competitive pricing Removing a broker from the chain can lead to the process of claims handling being more efficient and effective as there are less obstacles in the chain of communication

In summary no one broker has direct access to every insurer and it is possible to approach more than one broker and not be at risk of flooding the market If using more than one broker be clear who you would like them to approach and be aware whether they have to go through another broker to ultimately reach the insurer LPM

ABOUT

SPONSORED EDITORIAL

ParagonBetter broking for legalContact Janine on 020 7280 8200wwwparagonbrokerscom

LPMLEGAL PRACTICE MANAGEMENT

SUPPLEMENT SEPTEMBER 2016

BUSINESS INFORMATION FOR EVERYONE IN PRACTICE MANAGEMENT

LPM INSIGHTS

Sponsored by

How do SME law firm management leaders see the future

LEGAL PRACTICE MANAGEMENT20

SEPTEMBER 2016LPM INSIGHTS

ALL CHANGE

22WHATrsquoS NEXT We analyse the 2016 LPM conference polling data

2 1 COMMENT Accesspointrsquos Richard Roebuck on legalrsquos increasing digital dangers

Change and transformation are words that strike fear into the most hardened of legal management hearts because they are hard to do and even

harder to make stick But change must happen inside todayrsquos SME law firms to make sure they stay in business in tomorrowrsquos world

At this yearrsquos Legal Practice Management conference in London we polled our audience of law firm management delegates on a range of topics Some questions wersquove been asking since our first LPM conference back in the misty era of 2012 Much has changed in the world since then (new UK governments drones are now lsquoa thingrsquo Donald Trump) but legal not so much The rise of the ABS has been slow (though impactful) and the recession has for many businesses faded into a distant memory compared to the Brexit debate

But SME law firms rightly smell a real need for change in the wind ndash and perhaps though they seem to find it hard to name that change the clues are legion Letrsquos find some

LPM London 2016 delegates named the greatest hurdles to their firmsrsquo growth or further success as lsquoacquiring high-quality staffrsquo and the lsquoinability to create change within the firmrsquo Might the solution to one lie in the other Great talent wants to flock to fresh and vigorous businesses and younger legal eagles are increasingly shy of throwing their lots in with the fusty world of partnership Law firm leaders must look at how their businesses are run and who runs them and how people work if they are to attract great people ndash and in doing so they will create the change they seek

Herersquos another 52 of delegates named lsquoclient pressures on costrsquo the factor thatrsquos having the biggest impact on the SME legal market ndash but when asked how important price is when winning business 67 said itrsquos just lsquoone of a range of important factorsrsquo while 21 said itrsquos lsquonot as important as other things such as relationshipsrsquo This is a disparity I canrsquot quite understand but it doesnrsquot sound like the SME legal market truly gets the shift thatrsquos happening on the client side and how much change needs to happen inside firms to meet this challenge

Read on and come to your own conclusions but I think the clues are now becoming obvious I hope your firm sees them too LPM

Rupert Collins-White editor-in-chiefLPMmag | rupertwlsncouk

You donrsquot as the song goes need to be a weatherman to know which way the wind is blowing in the legal market ndash but just because the clues are there doesnrsquot mean you can be complacent about acting on them

CONTENTS

FEATURES

LEGAL PRACTICE MANAGEMENT21

SEPTEMBER 2016LPM INSIGHTS

MORE TECHMORE SECURITY

INTRODUCTION TO THE RESEARCH FROM OUR SPONSOR RICHARD ROEBUCK MANAGING DIRECTOR ACCESSPOINT

After a recent period of uncertainty it would now seem that most firms are confident about their future especially in light of Brexit Whatrsquos also certain is

that most firms are very conscious that to compete they will need to change and adapt themselves for the challenges ahead

With growing concerns about the lack of high-quality people available and what appears to be a reliance on quality individuals driving more lucrative fee-earning work is it time for a gear change

Perhaps the dawn of high-volume low-margin fixed fee work which many firms feared has now arrived As always with change there are challenges to be faced but for those clever early adopters there lies opportunity Making light of the more process-driven tasks and finding more effective efficient ways of completion to deliver client-facing benefits seems key to the wider future of the fixed fee legal landscape

With the growing acceptance of cloud technology and the increasing introduction of new software applications and solutions the legal world has moved on at an improved pace this past couple of years And the world is now clearly keen for more ndash to satisfy its desire for a more accessible and mobile working environment What is key for this trend is that the lsquoquality of the deliverablersquo has an ongoing programme of improvement that benefits both the firm and its clients

As progress pulls us forward there will always be elements arrayed against us Alongside the opportunities hiding in the polling from LPM this year therersquos also a sense of fear and concern around possibly the biggest threat to risk and security there is right now ndash the dark byproduct of technological success cybercrime

Cybercrime is fast growing with ever more complex attacks making headlines It is now one of the most common criminal offences in the UK An increasing number of individuals are exploiting the speed and anonymity of the internet to commit a wide range of criminal activities having no conscience and knowing no borders

It isnrsquot our fault websites get hacked but poor internet safety habits can put us at risk Reusing passwords or using weak passwords make us easy targets for identity theft Remembering multiple passwords can be a pain but there are web services and associated applications that can help such as two factor authentication quality mail management systems URL threat protection and mail encryption

For many firms the biggest threats tend to be by way of the ever-open door into our networks and devices ndash email

Our eagerness to respond almost instantly to emails throughout what will be for most an already pressured day is perhaps the dominant daily activity to foster an unwanted lapse in security In the past 18 months alone I have seen three firms that were truly caught out ndash some with the potential for significant financial penalty by opening email attachments The most common lsquogotcharsquo is an email that appears to have come from the office scanning platform whereby the email address has been cleverly spoofed to appear legitimate (for example downstairscopiermyfirmdomaincouk) There are so many existing and newly circulating threats of this calibre and type that even the most aggressive of filtering systems struggle to keep up

Do you know the name(s) of your copiers and the associated email addresses Do you stop to think before opening the innocuous Word attachment ldquoDoesnrsquot our scanner usually send PDF files Why has a covering note not been included with the attachmentrdquo Stop think and call for advice

Another infamous scam is the spoofing of email addresses of key people within your firm ndash for example an email to the head of accounts appears to be from the senior partner ldquoPlease send pound17000 to account X at your earliest convenience and confirm once processedrdquo it says Stop ndash is this your agreed process

As the demand grows and we extend our reach out into the online world so cybercrime advances ever closer seeking unauthorised access through our front door Quite clearly online is the future but we need to embrace it with the necessary skill sets and processes in place for our convenience wellbeing and prosperity LPM

There are so many existing and newly circulating threats of this calibre and type that even the most aggressive of filtering systems struggle to keep up

Accesspoint are independent legal IT specialists who consult on a variety of information technology-related issues offering the best in IT solutions to help firms work more effectively

Contact Richard and the team on 0203 189 2645wwwtheaccesspointcouk

LEGAL PRACTICE MANAGEMENT22

SEPTEMBER 2016LPM INSIGHTS

SME law firms are in a battle for survival Whether they know it or not they have huge challenges to face in the next few years ndash around succession planning technology replacing lawyers and being

used by competitors to attain a competitive edge and catering to clients who increasingly want cost predictability transparency and availability

These market pressures were addressed at the LPM conference in May 2016 which was attended by over 100 delegates all SME legal management leaders The delegates were polled on the day about what they thought of the pressures facing them and how theyrsquore planning to overcome them ndash and their answers provide valuable insight into the SME legal market

The polling results show that LPM conference delegates were aware of the severity of the challenges they face Three-quarters of legal management leaders we polled at the 2016 LPM conference thought that the challenges theyrsquoll face in the next five to 10 years will be lsquomorersquo or lsquomuch morersquo serious than in past years And 58 of delegates thought that the challenges in the next year to two years will be lsquomore serious than in past yearsrsquo

How they will face these challenges depends at least partly on attitude ndash whether they believe they can win or will eventually lose the war Fortunately most LPM conference delegates were optimistic about their firmsrsquo futures - 81 were either lsquocautiouslyrsquo or lsquoveryrsquo optimistic about their place in the legal market of the future

This doesnrsquot necessarily suggest that theyrsquore confident in the market overall particularly after the market instability brought by Brexit Legal management leaders might believe their firm is the only one thatrsquoll survive due to expertise in a particular area or niche In any case it indicates market confidence and a confidence in the ability of their firm to compete and succeed

But is this optimism misplaced in a market where the future is increasingly uncertain and competitive Are firms really ready for change on a huge scale as their confidence might suggest What are the issues currently keeping SME legal leaders awake at night

In this report LPM shines a light on the SME legal market through the eyes of our legal management leader audience ndash those driving their firms through an uncertain new world

WHATrsquoS NEXTChange is on the agenda for LPM firms but how to address the biggest challenges and which ones to face first is a tough call finds Patrick Wingrove

More serious than in past yearsMuch more serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch less serious than in past years

51

14

8

3

24

More serious than in past yearsMuch more serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch less serious than in past years

How would you rate the challenges your firm faces in the next five to 10 years

More serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch more serious than in past yearsMuch less serious than in past years

58

17

6

0

19

More serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch more serious than in past yearsMuch less serious than in past years

How would you rate the challenges your firm faces in the next year to two years

What is the greatest hurdle to your firmrsquos growth or further success

What is the greatest hurdle to your firmrsquos growth or further success

LEGAL PRACTICE MANAGEMENT23

SEPTEMBER 2016LPM INSIGHTS

TIMES THEY ARE A CHANGINrsquo The overriding theme of the 2016 LPM conference was change ndash how firms can implement it the drivers behind it and the various blockers to it But the first step to change is gauging which factors will have the biggest impact on the legal market Just over half of legal management leaders we polled thought client pressures on cost like demanding fixed fees will have the biggest impact while just over a quarter thought it will be competitors attaining a market advantage using technology

How quickly do firms need to respond to these oncoming market pressures Well 86 of LPM conference delegates thought that change needs to happen in their firms within the next two to five years But 14 said that their firm doesnrsquot need to change significantly perhaps because theyrsquove beaten the rest to the punch their legal business is somehow immune to new pressures ndash or they have their heads in the sand

Legal has traditionally been resistant to change and itrsquos not surprising that some firms still are says Sean Stuttaford COO at Essex firm Thompson Smith and Puxon (TSP) and 2016 LPM conference delegate ldquoThere are still firms out there where partners donrsquot have computers on their desks ndash theyrsquore stuck in their ways and just point blank refuse to

52 26 5 12 5

develop their business for the futurerdquoBut legal management leaders willing to implement

change may still find it difficult as 60 of LPM conference delegates polled thought that lsquochange isnrsquot really understood at their firmrsquo

GROWING PAINSJust over a quarter of LPM conference delegates also thought that an inability to create change within their firm would be the greatest hurdle to the businessrsquos growth or further success ndash though Stuttaford at TSP suggests voters might have blamed the traditional partnership business model for the same reason

But acquiring high-quality staff was considered to be the greatest hurdle for growth or success by 36 of delegates Rebecca Patterson HR manager at Kent firm Thackray Williams and 2016 LPM conference delegate says that she agrees with this result ldquoOur firm has a particularly tough time finding quality support staff ndash we could perhaps stand to invest more in competency frameworks and performance management and training opportunities to aid recruitment and retentionrdquo

William Robins operations director at lsquodistributedrsquo firm Keystone Law and a 2016 LPM conference speaker says

12 36 27 13 12

Lack of fundsAcquiring high-quality staffInability to create change within the firmTechnologyThe traditional partnership business model

Out of these which factor is having the biggest impact on the SME legal market

Client pressures on cost (eg fixed fees)Technology creating advantage for competitorsConsolidationDifficulty in finding routes to growth (eg funding)Something else

What is the greatest hurdle to your firmrsquos growth or further success

LEGAL PRACTICE MANAGEMENT24

SEPTEMBER 2016LPM INSIGHTS

offering a more flexible remote or mobile working set-up for everyone in a firm is an excellent way to attract talent (Keystonersquos model of course is founded on remote working) Perhaps the majority of legal management leaders polled at the 2016 LPM conference agree since their firms have either adopted a flexible remote or mobile working set-up are planning to adopt one or are considering adopting one ndash though there are other advantages to remote working such as reducing overheads In any case the results indicate that the SME legal working landscape is becoming considerably more flexible

But remote working doesnrsquot work for everyone Mary Mocklow CEO at West Midlands firm Talbots Law and 2016 LPM conference delegate says that their high-street set-up wouldnrsquot allow it ldquoThe majority of our staff are client-facing and need to be present at the office ndash and while there are other staff at Talbots that might benefit from remote working you canrsquot have a policy for one and not for allrdquo

CYBER THREATSTechnology was clearly a significant concern for legal management leaders who attended the 2016 LPM conference Patterson at Thackray Williams says some firms have had a hard time finding software that caters to their needs as a business and an LPM conference poll seems to back this up just under half of legal management leaders polled at the conference thought project teams should write law firm software indicating a desire for cross-department input into its creation But the poll also indicates that legal software providers have to a large extent been meeting their clientsrsquo needs

The rising threat of cybercrime was also a clear concern for LPM conference delegates ndash 92 of SME legal management leaders said their firms have cyber risk on their management meeting agendas Stuttaford at TSP says ldquoItrsquos something firms need to be constantly aware of and take precautions against not just by purchasing good firewall and antivirus software but by educating staff about password discipline authentication processes and suchrdquo

32 18 14 33 3

Is cyber risk on your management meeting agenda

92

5 3

Yes No Dont know

Is your firm moving to a more flexible workingremote or mobile working set-up for everyone in it

YesNoConsidering itWe already do itDont know

LEGAL PRACTICE MANAGEMENT25

SEPTEMBER 2016LPM INSIGHTS

PRESSURES AND PRICINGClient pressures on cost was also a major concern for legal management leaders polled at the conference so it may not be surprising that just over half of them said 50 or more of their firmrsquos work is some form of fixed fee This doesnrsquot necessarily suggest that the other half arenrsquot open to the concept of fixed fee ndash Mocklow at Talbots points out that fixed fees work for certain types of work ldquoHigh-street firms like Talbots can benefit greatly from fixed fees which is why 75 of our work is fixed fee but itrsquos more difficult to apply to firms that specialise in something like admiralty lawrdquo

The industry seems to think that the value of service has been lost to the price obsession in some areas but not in others ndash and while pricing is clearly a vital issue for SME firms 88 of legal management leaders polled at the LPM conference thought that itrsquos lsquoone of a range of important factorsrsquo or lsquonot as important as other thingsrsquo Patterson at Thackray Williams says that maintaining a good relationship with clients is often more important than pricing though pricing can be a means to achieving client satisfaction ldquoIt also depends on the client ndash in something like conveyancing first-time buyers might be looking for fixed fees or the cheapest price but for commercial clients that may not be as important as reputation or relationshiprdquo

TREASURE MAPPINGLegal process mapping often used by lsquobig lawrsquo and making inroads into SME legal could potentially make SME firms a great deal more efficient and therefore more competitive Two-thirds of legal management leaders polled had heard of process mapping and 79 thought that it is relevant to the business of law Stuttaford at TSP says he agrees ldquoFirms should look at their processes learn from them and figure out how to improve those processes ndash this question really made us look at what TSP has done so far in terms of what legal processes wersquove mapped and whenrdquo

To sum up LPM conference delegates were aware of the challenges that face them but were mostly optimistic nonetheless This may be because they know they need to change and in spite of the fact that change isnrsquot really understood at their firms are planning to mend their ways to meet future market pressures ndash generally putting the client first while keeping talent and technology high on their agendas LPM

Are aware of this thing called legal process mapping

66

34

Has the value of service been lost to the price obsession

23

23

54

Yes No Depends on the service Dont know

Yes No

How important is price in winning business

8

4

67

21

CriticalMore important than almost all factorsIts one of a range of important factorsNot as important as other things such as relationshipsIts one of the less important things in reality

What is the greatest hurdle to your firmrsquos Are aware of this thing called legal process mapping

LEGAL PRACTICE MANAGEMENT27

SEPTEMBER 2016COLUMNSSPONSORED EDITORIAL

Welcome back LPM readers ndash the new school term has started summer is (pretty much) over and the UK is back in full throttle after the summer break And what a break itrsquos been at

File Queen HQ (wersquove taken the time to get our clients up and running with augustprojects as well as started our new Instagram feed filequeenadds)

With the start of the new learning year wersquore focused on the education of you lovely LPM readers ndash with our attention turning back to the General Data Protection Regulation You may remember that in our last LPM article we ran through the 12 steps to tackle the GDPR helped by the awesome people at the Information Commissionerrsquos Office ndash wersquove provided a link to their 12-step resource via our website wwwarchivestoragenetnewsgdpr

Over the next three columns wersquoll be taking these steps and breaking them down for you ndash starting with step one awareness The File Queen (myself) and the team at ADDS have been promoting this step as the most important for all legal practices

ldquoWhyrdquo we hear you holler Well this step is the all-important life raft that unites your practice and team members to help you in the GDPR fight for survival (dramatic I know)

Getting the team on board ndash this buy-in needs to include all ranks of staff ndash from the managing partners to your suppliers But how do you do this Well here are some File Queen tips for when we at ADDS are rolling out projects

Lunch and learn ndash with a register People love to eat and be social so get your legal business to book in a couple of lunch and learn sessions Donrsquot limit this to one date ndash you must run at least two or three so people have the option of which dates to attend Make sure you make a register for those that actually turn up (we all know a calendar acceptance doesnrsquot mean theyrsquoll actually appear) This will allow you to chase down the members of the team you need to get on board for the next one

Have some decent sandwiches nibbles and soft drinks and give the team an overview of the GDPR Run through the 12 steps and make sure you educate them on why everything is so important (make sure you mention the increased fines and audits) During this time let the team know that there are several steps along the way that yoursquoll need their help and support for and which you wonrsquot be able to achieve on your own Tell them that the businessrsquos reputation and brand is on the line and that you need everyone on board to lend a helping hand and spread the word

Another great File Queen tip at this stage is also to get some additional funding from the practice manager for a wine and quiz night at the end of the lunch and learn periods This can be part of your social gathering on a Friday straight after work ndash with some more nibbles and wine Assign people to teams and have a GDPR quiz The winning team gets an award and everyone has fun and learns at the same time Follow our twitter feed as wersquoll be tweeting some great questions to ask thefilequeen GDPRQUIZ

We know itrsquos a lot to organise but there are only four months left in 2016 and GDPR practices must be in place by 25 May 2018 And believe me when you have to roll out rather hard core legislation you have to make it fun and interactive to get people on board LPM

ABOUT

NATASHA RAWLEY THE FILE QUEEN

EDUCATING YOUR PROS

ADDSSaving firms from paper hellContact Natasha on0800 328 0272wwwarchivestoragenet

LEGAL PRACTICE MANAGEMENT28

SEPTEMBER 2016FEATURES

28

Patrick Wingrove talks to the founders of Proelium Law about their work providing legal advice in high-risk environments and conflict zones and the challenges of setting up shop in a new and risky area of law

Legal commandosProelium

Compared to the day-to-day lives of Proelium Law founders and partners Richard Stephens (above left) and Adrian Powell (centre) the average lawyer leads a pretty humdrum life Though UK-based the

firm has a strong international focus ndash Stephens and Powell regularly travel to provide legal and business advice to companies and individuals in high-risk professions or working in hazardous environments across the globe including conflict zones in Iraq Syria and Afghanistan Powell says that itrsquos a challenging but exciting area of law to be in and that ldquono two days are ever the samerdquo

The firm was established as an ABS in November 2015 allowing Powell and Stephens to operate as partners although Stephens isnrsquot a lawyer Powell qualified as a solicitor in 2004 after spending 11 years of his career in the British army and post-2006 worked on various high-risk projects around the world ndash giving him the inspiration for Proelium He says ldquoThe idea came to me in Baghdad in 2009 while working for a private security company as a legal adviser ndash I thought lsquoWhy isnrsquot there a firm doing thisrsquo But I soon realised that I needed someone on the ground who wasnrsquot a lawyer to help make it happenrdquo

That person was Stephens He previously served in the Royal Marines worked as a Whitehall-based strategic planner for the UK government and commanded a special operations regiment (which is why we couldnrsquot show you his face but itrsquos a nice issue of LPM) He now works primarily on the business development side of Proelium ldquoJoining Adrian who Irsquod previously worked with on projects around the

LAW FIRM PROFILE

LEGAL PRACTICE MANAGEMENT29

SEPTEMBER 2016FEATURES

world at a firm meant I could do fascinating and important work with the credibility that being a partner in a regulated business providesrdquo he says

Their work has certainly been interesting Proelium has cast its net far within the niche high-risk sector ndash advising UK-based service providers on the complexities of working in hostile environments conducting business and human rights due diligence and ensuring anti-money laundering counter terrorist-financing and anti-bribery compliance for companies intending to run in high-risk areas or conflict zones to name a few Recently theyrsquove also been working on developing capability for national intelligence organisations overseas ndash but for fear of being jailed for treason Stephens and Powell didnrsquot elaborate hellip

Powell says that the challenges companies face in these areas are numerous ldquoTherersquos a real technical knowledge in understanding how organisations physically work overseas These companies are good at what they do but that doesnrsquot necessarily translate into being business-savvy when it comes to operating in frontier markets ndash thatrsquos where Proelium adds valuerdquo For example after a client was recently exposed on an arms deal they were able to quickly discern liability and ensure that all necessary agencies and departments were appropriately informed

Powell and Stephens joke about how theyrsquore the number-one firm in their sector ndash admitting that to their knowledge theyrsquore the only firm that specialises in this area of law They added that itrsquos an untapped niche in which Proelium will be a pioneering force but which has also recently come onto the radar of a larger firm Theyrsquore alluding of course to Proeliumrsquos recent venture with Harrison Clark Rickerbys ndash a joining that combines Proeliumrsquos experience working in high-risk jurisdictions with the manpower and existing defence and security expertise of

HCR Powell says ldquoWhat they donrsquot have is our connections and our experience They like the idea of the sector because they see it as an interesting area and the partnership will allow us to offer a wealth of different legal services while letting us focus on what we do bestrdquo

As part of their ambitions for Proelium Powell and Stephens are keen to train a new generation of lawyers whorsquoll specialise in the high-risk sector ldquoWe have confidence in what the younger generation has to offer and we want them in our industry to continue our work in this relatively untapped areardquo says Powell Stephens adds that itrsquos also a matter of succession planning ldquoWe want the firm to operate long into the future but we donrsquot necessarily want to be running it ourselves for the next 20 yearsrdquo Proelium currently employs two interns as part of this commitment including University of Surrey law student Ruby Jamieson (pictured) She says ldquoWorking [at Proelium] has given me loads of insight already ndash itrsquos very niche

very new and Irsquove really enjoyed helping develop the business I feel that itrsquoll open a lot of doors when I graduaterdquo

In terms of expansion Proelium has recently opened a new office in the City of London Powell says that his home was originally the firmrsquos practising address but a large portion of their client-base is in London ldquoand we couldnrsquot keep having our meetings in coffee shopsrdquo

But Powell and Stephens are firm believers in the concept of remote working which works particularly well for their business

ldquoMost of our clients are either in London or outside the EU so Irsquom always away but all my phone calls are redirected from the new office to my mobile so I can keep in touch with clients whether Irsquom in Dubai or Baghdadrdquo says Stephens Powell adds that he feels remote working has the added benefit of keeping staff happy by letting them work from home which he says certainly makes him more productive as a fee earner

Proelium isnrsquot looking to expand into areas it has no interest in like family law but theyrsquore taking a keen interest in the emerging area of cyber law and are considering taking steps into that world ldquoLike high-risk law no onersquos really wrapped their arms around cyber law yet Therersquos cyber law in the US but it doesnrsquot exist per se in the UK except in terms of data protectionrdquo

When asked what advice they could give to SME firms based on their unique experiences in their sector Powell and Stephens said firms should know the areas of law they practise inside and out Powell says ldquoWersquore concerned with being experts in our field ndash a lot of our clients have peoplersquos lives in their hands and are not in the business of nonsense which is why they come to us We give sound researched legal advice based on experience and if we donrsquot know something we send the client to someone who doesrdquo LPM

ldquoCompanies are good at what they do but that doesnrsquot necessarily translate into being business-savvy when it comes to operating in frontier markets ndash thatrsquos where Proelium adds valuerdquo

Proelium

Two fee earners four total staff

Offices City of London Wirral Cheltenham

Specialisms International criminal commercial and conflict law due diligence sensitive investigations

LPM FACT FILE

ldquod2u is the UKrsquos number one outsourced transcription service for medical and legal professionals and highly competitive all over the world We pride ourselves on saving our clients time and money as well as offering state-of-the-art security and a first-rate servicerdquo Daryl Leigh CEO dictate2us

LPM magazine has agreed a special deal for its readers with dictate2us ndash 5 off your monthly

transcription bill for one year if you sign up through the dedicated LPM link or call and quote LPM2016 when signing up You can trial the service for free before committing

CUT COSTS INCREASE EFFICIENCYAll firms could benefit from outsourcing transcription to dictate2us ndash but even more so with our LPM deal 5 off your first year

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Use d2u and enjoy the benefits ofbull Fast turnaround timesbull Secure and confidential servicebull Secetarial cost reductions of up to 60bull Guaranteed 985 minimum accuracybull iPhone Android and Blackberry apps with one-hour turnaroundbull 100 output - only pay for the time you talkbull Free no obligation trial

This special LPM magazine reader deal only relates to customers that execute an agreement for a minimum term of 12 months with a minimum monthly commitment of 500 minutes LPM magazine sought two law firm references for dictate2us to verify its claims for quality and delivery The 5 deal only applies to the first paying year the customer is with dictate2us LPM magazine is not responsible or liable in any way for work done by dictate2us and is an advertising referrer only

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LPMLEGAL PRACTICE MANAGEMENT

LPMLEGAL PRACTICE MANAGEMENT

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LEGAL PRACTICE MANAGEMENT31

SEPTEMBER 2016FEATURES

Patrick Wingrove speaks to management leaders from SME and top 100 law firms that have recently achieved significant growth to find out how to go from acorn to oak tree

FROM MINNOW TO

For many SME firms growth is the goal ndash but it doesnrsquot have to happen in the ways that many have scaled in the past The era of organic slow quiet steady partnership development over decades is

increasingly at odds with a fast-paced digital world Strategies for growth in the legal market are now closer than ever to the rest of the business world ndash and any size firm can learn how to do it

Big or small there are similar tools in the box for making growth happen and similar challenges Lessons abound but some of the best can be taken from those firms not far outside the famous lsquotop 100rsquo legal businesses in the land ndash those that have already grown up and now have the top tier in their sights There are also lessons to draw from smaller but rapidly scaling law firms

There are many growth strategies for organic and acquisitive growth ndash and no easy answer for which is right for your firm To shine a light on the subject wersquove spoken both to SME and top 100 firms about growth and how to do it (and importantly how not to do it)

MAMMOTH

LEGAL PRACTICE MANAGEMENT32

SEPTEMBER 2016FEATURES

MODELS OF GROWTH According to the Lawyer the two fastest growing firms in the top 200 this year are Midlands-based Knights and lsquodistributedrsquo firm Keystone Law ndash currently placed 119 and 122 in the 2015 UK 200 rankings but whose revenue will now put them well inside the 2016 top 100 (due for release October 2016) Both attribute their growth to non-traditional business models ndash and very different non-traditional models at that

Knights corporatised in 2014 to remove the barriers from its decision making processes which CEO David Beech says has been the key to its growth ldquoEquity partnerships donrsquot grow particularly quickly because itrsquos hard to achieve consensus and make decisions that enable fundamental or rapid growth among equity partnersrdquo

Knights acquired Oxford-based Darbys earlier this year ndash a move largely behind the revenue increase that will put them in the top 100 ndash and completed the transition inside three months which Beech says would have been next to impossible under their old business structure ldquoNot only was a quick turnaround good for the books it saved significant time and money that could be invested elsewhere in the businessrdquo he says

Top 100 firm Simpson Millar is one step

ahead of Knights The firm broke the glass ceiling to become a top 100 firm in 2015 and like Knights the firm attributes its growing success to corporatisation ndash but in a different manner

It sought to be and was eventually acquired by PLC Fairpoint Group in 2014 Simpson Millar continues to run as an LLP under the same management team and existing trading brands but as a business unit within Fairpoint

Managing partner Peter Watson says that one of the key reasons to pursue this particular growth strategy was to provide an injection of capital for MampA ldquoWe completed the sizeable acquisition of Colemans last year for example which we were only able to do with considerable investment from Fairpointrdquo

Being part of a PLC has also given the firm access to strong MampA and project management capabilities ldquoAcquiring Colemans doubled the business overnight ndash for something like that you need strong MampA experience and access to that team within Fairpoint was crucial in getting the deal across the linerdquo says Watson Simpson Millar also built a strong digital strategy launched new products and focused on pricing ldquoCall it fixed fees or packaged fees the point of it was to say to consumers

Square One Law

Revenue pound5m

31 fee earners 53 total staff

Offices Newcastle-upon-Tyne

Specialisms Commercial corporate property employment EU and competition law finance litigation private client

LPM FACT FILE

Knights

Revenue pound40m (year end 2017)

375 fee earners 450 total staff

Offices Chester Cheltenham Newcastle-under-Lyme Derby Oxford Hale

Specialisms Full service firm

LPM FACT FILE

LEGAL PRACTICE MANAGEMENT33

SEPTEMBER 2016FEATURES

lsquoWith us you know exactly what yoursquoll get and how much itrsquoll costrsquordquo

PEOPLE PLEASERSThe ability to implement change has also been an important part of delivering a growth strategy This isnrsquot necessarily surprising ndash polling at the 2016 Legal Practice Management conference showed that legal business managers thought it was one of the greatest hurdles to a firmrsquos growth or success only topped by acquiring high-quality staff In Knightsrsquo case the two challenges were addressed together Beech says Knightsrsquo corporate rather than partnership structure also allows it to recruit talented people without having to deal with the inherent politics of an equity partnership

ldquoAcquiring the best talent has been a central part of our growth strategy ndash if a candidate can help the business through expertise or client following we can just recruit themrdquo he added

But a successful growth strategy incorporating talent isnrsquot just about recruiting quickly as we analysed in the July 2016 issue of LPM ndash itrsquos about recruiting well Firms also need to make themselves an attractive prospect for legal talent in order to grow

William Robins operations director at Keystone Law says his firmrsquos lsquodispersedrsquo model allows it to do that by offering new fee earners the chance to work remotely with less supervision ldquoWersquore typically hiring about a lawyer a week ndash bringing their expertise fee-earning capability and client following with them ndash and that is the core part of our growth strategyrdquo The firm has buttressed its recruitment capability by hiring a director of recruitment to focus almost entirely on lawyer enrolment (recruiting talent to recruit talent ndash neat)

Though the distributed model may not be for everyone says Robins implementing some form of flexible mobile or remote working should be part of any firmrsquos growth strategy because it allows firms to increase their fee-earning capability without accruing fixed overheads such as office premises

And there are other ways to be talent-attractive As a core part of its growth strategy Newcastle-based firm Square One Law ndash which achieved 30 growth in the

last financial year ndash has pledged to create a supportive and inspirational team environment offering high-calibre work to attract the best talent Ian Gilthorpe senior partner at Square One says ldquoGood people want to be inspired to be valued for what they do and feel as though theyrsquore making a contribution The key is to engage with all your staff to facilitate a culture where staff feel happy at work work for each other trust each other and ensure that they see the value in what they do ndash if you do that more talent will comerdquo

He added that itrsquos important for

recruitment to convey staff satisfaction to the outside world which Square One has achieved by including staff video-testimonials on its website

But recruiting is only half of an effective people strategy ndash the other is retention Simpson Millar has attempted to create an environment that its talented staff wonrsquot want to leave Says Watson ldquoToo many firms worry about what will happen if their rainmaker goes somewhere else and takes clients with them ndash so they put the shackles on make them feel unhappy and make it so that they canrsquot realise their full potentialrdquo Creating such an environment makes firms an attractive target for lateral hires when they should be building a place people want to join

PRACTICE AREASSME legal businesses donrsquot necessarily need to change their business models completely to achieve the same growth as

Thorntons

Revenue pound20m

209 fee earners 430 total staff

Offices Dundee Edinburgh St Andrews Perth Cupcar Kirkcaldy Anstruther Arbroath Montrose Forfar

Specialisms Full service firm

Keystone

Revenue pound202m

198 fee earners 230 total staff

Offices London Bristol Isle of Man Australia

Specialisms Corporate and commercial dispute resolution property

LPM FACT FILE

LPM FACT FILE

Equity partnerships donrsquot grow particularly quickly because itrsquos hard to achieve consensus and make decisions that enable fundamental or rapid growth among equity partners David Beech CEO Knights

Simpson Millar

Revenue pound316m

322 fee earners 539 total staff

Offices Birmingham Bristol Cardiff Cheadle Hulme Gateshead Kingston-upon-Thames Lancaster Leeds Park Place Leeds St Pauls Street (head office) London Manchester Newcastle

Specialisms Full service firm

LPM FACT FILE

LEGAL PRACTICE MANAGEMENT34

SEPTEMBER 2016FEATURES

our examples but removing blockers from decision-making making themselves more attractive to talent and finding the right funding for growth are increasingly important and the partnership structure may not enable it

But of course that means asking some turkeys to vote in a Yuletide election Fortunately there are other ways to achieve impressive growth mainly investment andor expansion into new geographic or practice areas

Watson says that Simpson Millar wouldnrsquot have been an attractive prospect to Fairpoint had the firm not spent time growing organically by expanding into new areas of law

ldquoWe went from being a predominantly trade union PI firm to having a broad base of 16 types of work ndash with strong heads in charge of each committed to driving growth in their departments ndash which gave us a large boost in revenuerdquo The firm achieved this through small acquisitions of other firms that had expertise in particularly lucrative areas of law

But firms shouldnrsquot just look at expanding in lucrative areas ndash they should focus on areas where their reputations deliver an advantage Scotlandrsquos Thorntons for example ndash which last year leapt from 134 to 108 in the 2015 UK 200 rankings ndash invested in six departments as part of its growth strategy

Thorntons joint managing partner Scott Milne says ldquoWe didnrsquot exclude other areas but we saw that these areas were profitable and that more importantly we had considerable expertise in them ndash we also considered that these are areas that are unlikely to be affected by future economic downturnrdquo This included investing in niche areas of law where the firm has a geographic competitive advantage ldquoWersquore lucky to be surrounded by some of the best farmland in the UK ndash wersquore well known for our expertise in rural business law which is why we invested heavily in itrdquo

ORGANIC V ACQUISITIONIn several ways choosing an effective growth strategy very much boils down to MampA versus organic growth ndash every business model talent or area expansion strategy appears to revolve around one or both But which is the best to achieve the kind of growth thatrsquoll propel firms to a lsquohockey stickrsquo on their revenue forecasts The short answer is it depends on whatrsquos best for a firm at a given time It either

needs to fit the firm ndash or the firm needs to change to fit the goal

Beech says that acquisition has been excellent for Knights because itrsquos a fast and effective form of expansion ndash the acquisition of Darbys more than doubled its revenue But MampA poses a significant challenge to finding firms with the right cultural fit

ldquoFirms need to establish a single culture in order to implement growth ndash everyone needs to be working towards the same goalrdquo He added that when a firm completes a merger or acquisition that firm has to be integrated from day one which is much more difficult if it has a significantly different culture Knights is planning to continue recruiting and complete more acquisitions in the next year to maintain the growth curve

Of course the big problem with acquisition is money Robins at Keystone says his firm lies at the opposite end of this

INFORMATION IS EMPOWERING

Lemington Spa-based firm Wright Hassall has a specific goal of breaking into the top 100 and as part of its growth strategy expanded into areas of the UK where its expertise is highly sought after ndash using customer relationship management in the background to underpin the firmrsquos activities in specific areas Martyn Wells IT director at the firm says ldquoWersquove zoomed in on specific industry sectors that we know are performing well in the Midlands sectors where we have a superb reputationrdquo Expanding geographically as Wells outlines needs data to get right Thorntons for example identified various lsquomicro-marketsrsquo in Scotland close to its base of operations ldquoWe acquired a firm in St Andrews because itrsquos like a micro-economy (or micro-market) that doesnrsquot seem to be affected by price drops in the residential market elsewhererdquo says Thorntons joint managing partner Scott Milne Knights has another take on the geographic targeting idea ndash it intends to stay out of the large cities (London Manchester Leeds for example) and expand into areas where there is little competition As David Beech CEO at Knights explains ldquoLast September we acquired a small team in Chester of about 11 lawyers and now thatrsquos expanded to just over 70 ndash and the main reason wersquove been able to do that is because there isnrsquot a lot of competition thererdquoUltimately this all comes down to research finding out what to invest in or where to expand and perhaps most importantly finding out what clients want

LEGAL PRACTICE MANAGEMENT35

SEPTEMBER 2016FEATURES

spectrum to the way Knights has grown emphasising organic growth finding innovative means to attract talent using technology to drive efficiency and branching out into new areas of law or new markets to achieve significant growth

Square One Law also espouses the organic route ndash believing that firms with growth in mind should focus on ensuring their external brand reflects the businessrsquos internal culture and behaviours of its team creating lsquosynergyrsquo between the business and its clients

Gilthorpe says ldquoMergers ndash and there is no such thing as a true merger ndash and acquisitions can be a distraction as you look to create a new culture and separate the wheat from the chaff and this can soak up a lot of energy that would otherwise be put to use in driving the progression of the business and the focus on client servicerdquo

The best option for some firms may be a

calculated combination of MampA and organic Thorntons for example having made several acquisitions is now focusing on organic growth moving away from geographical expansion and towards developing locations and its brand

Watson at Simpson Millar sums the mixed approach up thus ldquoItrsquos a mixture Acquisition is still very much a part of the mix but in parallel to that itrsquos important to demonstrate that yoursquore developing ongoing work rather than being driven solely by acquisitionrdquo

There are clearly many different ways to achieve healthy and assertive growth though there are no easy answers as to which way is right for your firm But it is clear that growth doesnrsquot have to happen in the ways many have previously achieved it ndash innovation and lateral thinking are the means of achieving significant growth (which might one day propel you into the top 100 you never know) LPM

LEGAL PRACTICE MANAGEMENT36

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

INDUSTRY VIEWS

36LEGAL PRACTICE MANAGEMENT

Legal is becoming an ever more digital industry giving firms the chance to become more efficient flexible agile and collaborative

INDUSTRY VIEWS INDEX

ONLINEOFFICES

36

SPONSORED EDITORIAL

INDUSTRY VIEWS

37 INTERVIEW

Paperless processLinetimersquos Tony Klejnow explains the benefits of using matter management software for law firms and their clients

39 INTERVIEW

Virtual expansionNigel Redwood Nasstarrsquos CEO talks about the advantages of having a managed flexible IT infrastructure

LEGAL PRACTICE MANAGEMENT37

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT37

Competition and price pressures and an increasingly digital client base are all significant drivers for law firms to become paperless

businesses Tony Klejnow Linetimersquos managing director says firms could achieve competitive advantage by introducing paperless solutions across their businesses ndash but a particular lsquoeasy winrsquo area is matter management

ldquoFee earners are required to keep detailed records of their cases but the amount of time and money they waste physically printing filing looking for collaborating on and updating files is alarmingrdquo says Klejnow Law firms have traditionally been reluctant to adopt paperless

workflow solutions he adds because workflow doesnrsquot apply to 99 of fee earnersrsquo work ldquoBut if they adopted paperless solutions in their back office processes they could reduce costs without affecting client service boost productivity and promote collaboration ndash making them more efficient flexible and cost effective and making them more competitive in an ever-changing legal marketrdquo

MATTER MATTERSDocument and matter management tools ndash like those in Linetimersquos legal software product Liberate ndash electronically store and organise all case documentation in an online database Klejnow says that there are two immediate benefits of paperless matter

PAPERLESS PROCESS

Tony Klejnow managing director at Linetime talks to LPM about the benefits of the paperless office ndash starting with filing and back office processes

INDUSTRY VIEWS

Linetime is a specialist provider of Microsoft-based practice and case management solutions Clients include mid-tier law firms and in-house legal departmentswwwlinetimecouk

ABOUT THE SPONSOR

SPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT38

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT 38

management The first is reducing paper and storage costs

ldquoIf case documentation is electronically stored once a case is finished you no longer have a five-inches-thick file that has to be stored for six years ndash which has to reside somewhere and costs firms time space and moneyrdquo The second is eliminating filing time ndash for example instead of printing and filing emails and attachments fee earners drag and drop emails directly from Outlook into the database ldquoand attachments are automatically stripped from emails and appropriately filedrdquo says Klejnow

And Klejnow says paperless filing systems donrsquot just facilitate efficiency this way ndash they also improve general process efficiency by facilitating collaboration between fee earners Solicitors can use document and matter management to view and work on matters at the same time a difficult if not impossible prospect when working with paper files Klejnow says ldquoWithout document management legal professionals work in silos but with it they immediately share datardquo He adds that Liberate has an additional collaboration tool to help further improve collaborative efficiency in firms ldquoIf I choose to lsquocollaboratersquo a document with you on Liberate Outlook will prompt you to review that document by simply acknowledging the notificationrdquo

In this respect moving to become a paperless business provides greater flexibility for fee earners who can collaborate with colleagues working remotely or in different offices Klejnow says ldquoPaper files can only reside in one location but electronic files can be accessed from any office and when working from home or with clientsrdquo On the other side of the coin having digital files maintains a greater level of productivity in a law firm office ldquoIf your colleague is absent from the office you can easily find documents that you might have otherwise wasted a significant portion of your day looking forrdquo he adds

Improved external collaboration is also a benefit that firms can reap from paperless matter management With an electronic system you can go into a case history bundle documents into one PDF file and quickly submit that to the third party improving collaboration between fee earners and clients who want to do everything online This has the added benefit of improving accuracy and facilitating greater efficiency by involving clients in the process ldquoGood matter management software should also let you push e-forms to clients to be filled in and that information is automatically transferred straight to the online database ndash which saves fee earners

time and is a more accurate because the information doesnrsquot have to be constantly re-enteredrdquo says Klejnow

This extra level of collaboration within legal businesses that hasnrsquot been possible until now has long been needed because it improves efficiency and productivity which makes the business more profitable and competitive Klejnow adds that what firms save by adopting matter management they should reinvest in becoming fully paperless digital businesses

ldquoCase management solutions can improve efficiency to an even greater extent and keep firms competitive in the age of the alternative business structuresrdquo

VISIBLE COMPLIANCEIn response to firms reluctant to adopt paperless technologies like document and matter management for fear of losing delicate information to cybercriminals Klejnow says those systems provide an additional level of security ldquoTaking data and attachments out of Outlook and storing them on a database is much more secure than leaving them on your hard drive If you leave

your laptop on a train for example all your important data is safely stored on a server and not instantly accessible by opportunist criminalsrdquo

Document and matter management also offers a greater level of security in fee earner and client communications ldquoIf I want you to check that the data we have for you is accurate Liberate will

direct you to a page holding your data and at the same time it will push out an SMS text with a pin code to your phone Unless you input the code you canrsquot get to the web page ndash which means if one of your solicitors accidentally sends an email to the wrong person or itrsquos intercepted it doesnrsquot matter The data stays safe ndash this level of security is crucial in this age of cybercrimerdquo

These security features clearly have significant benefits for compliance which is important in a market increasingly dictated by regulation including the relatively new General Data Protection Regulation says Klejnow

ldquoCompliance officers need to be seen by regulators to have monitored and reviewed everything thatrsquos happened in their firm which is considerably easier with a paperless system Liberate has lsquoversion controlrsquo which allows compliance officers to keep tabs on every change made to a document as well as a compliance module which lets them view whatrsquos happening on a case (to ensure that money laundering checks have been carried out and so on) and records the fact that yoursquove reviewed thisrdquo LPM

Without document management legal professionals work in silos but with it they immediately share data

INTERVIEW

LEGAL PRACTICE MANAGEMENT39

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LPM readers may already know the Nasstar Group ndash but by a different name Nasstar was launched by regular LPM-contributor e-knownet to consolidate four discrete hosted

managed IT businesses (including e-knownet) after a period of significant acquisition Nigel Redwood chief executive officer at Nasstar says merger and acquisition and consolidating brands is challenging but having a flexible hosted IT infrastructure makes the process significantly easier

ldquoManaged IT services are enormously beneficial for firms that are expanding or consolidating particularly after MampA in terms of time and productivity cost savings and flexibilityrdquo He adds that by just having managed desktops firms can attain competitive advantage by reducing overheads and becoming more flexible and agile

Nasstar has experience helping SME firms with their IT systems after MampA and knows what problems to look out for creating unity among staff used to using different systems and processes the cost and time it takes to expand an IT infrastructure and the geographic distance between new offices

Redwood says that MampA can be an excellent way for legal businesses to expand into new sectors but that consolidating new departments using different IT systems and processes is challenging

ldquoOur acquisitions for example introduced new sector focuses for us in the SME legal market ndash wersquove consolidated these into a wider service base under Nasstar and facilitated unity among staff using virtual IT solutions

rdquoVirtual IT solutions help facilitate unity across the business by providing a level of consistency in an IT infrastructure Everyone immediately uses the same applications on the same versions from wherever theyrsquore working creating unity faster collaboration across teams and effective information sharingrdquo Hosted IT infrastructures are also continually updated giving staff instant access to new updates applications and technologies as they become available

The next significant challenge firms face after MampA is expanding their IT infrastructure to accommodate an influx of new staff ndash but Redwood says virtual IT solutions let firms expand their IT infrastructure at the flick of a switch

ldquoWith virtual IT firms arenrsquot held back by the size of their servers or the amount of computer power theyrsquove got ndash they simply call their IT provider and ask for an upgrade when previously theyrsquod have been

subject to lengthy and costly IT upgradesrdquo Virtual IT solutions are also easy to budget for

Redwood says ldquoYoursquore not going to be surprised by an increased fixed asset expenditure ndash services like those offered by Nasstar are an operational cost and fixed per user per month through a scalable cost modelrdquo

Geographic distance inhibiting collaboration between merged offices is also a key consideration for firms after MampA but virtual IT solutions solve this problem Redwood says a virtual IT infrastructure can minimise travel through the use of hosted virtual meeting rooms and video technology Staff can use this technology from virtually anywhere which is why it also lends itself well to remote flexible or mobile working set-ups

VIRTUAL WORKPLACERemote working is becoming an increasingly present feature of the legal landscape because of its cost saving and recruitment and retention advantages ndash the majority of firms at the LPM conference 2016 were moving towards a flexible remote or mobile working set-up or already had one

Redwood says virtual IT solutions better enable staff who work remotely ldquoHosted managed desktop solutions for example let staff work with the same applications from any device in the world safely and securelyrdquo

But remote working isnrsquot only about enabling the current workforce itrsquos about attracting future talent Redwood says that millennials donrsquot necessarily want to work as their predecessors did ndash they expect greater flexibility in the workplace which at one level can be achieved by remote working facilitated by a managed desktop

ldquoAnd itrsquos not only about attracting millennialsrdquo he says ldquoSME firms with flexible working set-ups are becoming more attractive to experienced legal talent who may be frustrated by the rigidity of their firmrdquo As a firm expands its workforce in this manner firms with virtual IT solutions reap the lsquodoublersquo cost saving benefits of not having to expand their premises or IT infrastructure accordingly

Some firms are resistant to remote working based on hosted IT services believing they arenrsquot secure ndash but Redwood says that argument ldquocan be put to bedrdquo

ldquoFor an in-house IT team to have the level of security that an organisation like ours can deliver is near impossible financially as well as in terms of the

VIRTUALSANITYNigel Redwood CEO at Nasstar talks to LPM about how managed IT can help SME firms achieve competitive advantage by making them more agile and flexible

LEGAL PRACTICE MANAGEMENT40

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

INTERVIEW

level of systems and technologies they deployrdquo Cybercrime is of course a scary and constantly evolving threat but Redwood points out that virtual IT systems have dedicated teams monitoring these threats evolving cyber defences and changing systems accordingly

ldquoThis capability not only makes [firms] a lot more secure but gives peace of mind in terms of compliancerdquo

ONLINE ADVANTAGE Redwood says virtual IT infrastructures donrsquot just pertain to lsquobig lawrsquo but to SME firms as well ndash perhaps more so

ldquoVirtual IT systems are a way for SME firms to stay competitive against their larger

counterparts and ABSs ndash it gives them a greater ability to expand it lets them adopt more flexible and agile models and is easy to budget forrdquo Firms can also expect virtual IT solutions to enable better alignment of IT resources to business needs enhanced usability with anywhere anytime access and in-built business continuity

But the greatest advantage virtual IT offers SME firms over big law is agility Redwood says ldquoBig IT departments in firms can be slow to react cumbersome and held back by the limitations of hardware infrastructure and security issues ndash all of that is removed with a solution like ours and the customer has access to fast-moving agile ITrdquo LPM

ABOUT THE SPONSOR

Nasstar is a provider of managed IT services and tailor-made cloud hosted solutions ndash delivering innovative secure and agile IT to help clients accomplish their business objectiveswwwnasstarcom

Page 17: LPM September 2016

LEGAL PRACTICE MANAGEMENT18

SEPTEMBER 2016COLUMNS

JANINE PARKER THE BROKER

WHAT PRICE EXCLUSIVITY

Itrsquos that wonderful time of year when the annual bombardment of brokers begins on your never-silent telephones All of them can ldquocarry out a full market exerciserdquo for you that will of course save you money

But whatrsquos the reality The marketplace is still murky and as a profession we donrsquot help ourselves by keeping it opaque So letrsquos objectively consider many of the claims brokers make attempt to clarify the true mechanics behind the market and consider how to best utilise it for the benefit of your firm

Since 2000 and the demise of the Solicitors Indemnity Fund competition for solicitors professional indemnity has increased This hasnrsquot always been generated through the number of insurers but the ever-increasing number of brokers who purport to be experts in this very niche area of insurance This has increased pressure on insurers to lower prices (a good thing for clients up to a certain point) but this pressure combined with some extreme economic factors has contributed to many insurers withdrawing from the market over the past decade

Competition is good for consumers and it encourages innovation to make sure that brokers and insurers can differentiate themselves by developing their product offering

Some brokers organise lsquoexclusiversquo arrangements with insurers often segmented by the number of partners within the firm ndash which is a very artificial way of dividing up the profession But this is the marketplace wersquore in today and itrsquos worth looking a little closer at these lsquoexclusivesrsquo

All the direct access points are listed in the Law Society buyer guide and in practice itrsquos only a handful of brokers who actually hold the exclusive with direct access to the underwriters It is essential to note that these exclusive agreements are not always lsquotiedrsquo arrangements The broker is not bound to place all their business with their one exclusive insurer and itrsquos often the case that those brokers who hold the exclusive arrangement also enjoy strong relationships with the open market insurers

To increase distribution brokers who hold exclusive arrangements will offer access to other brokers who wish to take advantage of the exclusive products available These brokers donrsquot have their own facilities There are many commercial reasons for opening an exclusive to other brokers but itrsquos important to note that the extra broker in the chain will dilute your relationship with the placing broker and ultimately your insurer Marketing materials can often be unclear as access to exclusives is readily used ndash but in reality these brokers will be approaching another broker to do this

Often law firms will be unaware of the number of brokers in the chain and will unwittingly be paying additional brokerage and fees unnecessarily Direct access allows for better communication between your firm and insurers which can often lead to more competitive pricing Removing a broker from the chain can lead to the process of claims handling being more efficient and effective as there are less obstacles in the chain of communication

In summary no one broker has direct access to every insurer and it is possible to approach more than one broker and not be at risk of flooding the market If using more than one broker be clear who you would like them to approach and be aware whether they have to go through another broker to ultimately reach the insurer LPM

ABOUT

SPONSORED EDITORIAL

ParagonBetter broking for legalContact Janine on 020 7280 8200wwwparagonbrokerscom

LPMLEGAL PRACTICE MANAGEMENT

SUPPLEMENT SEPTEMBER 2016

BUSINESS INFORMATION FOR EVERYONE IN PRACTICE MANAGEMENT

LPM INSIGHTS

Sponsored by

How do SME law firm management leaders see the future

LEGAL PRACTICE MANAGEMENT20

SEPTEMBER 2016LPM INSIGHTS

ALL CHANGE

22WHATrsquoS NEXT We analyse the 2016 LPM conference polling data

2 1 COMMENT Accesspointrsquos Richard Roebuck on legalrsquos increasing digital dangers

Change and transformation are words that strike fear into the most hardened of legal management hearts because they are hard to do and even

harder to make stick But change must happen inside todayrsquos SME law firms to make sure they stay in business in tomorrowrsquos world

At this yearrsquos Legal Practice Management conference in London we polled our audience of law firm management delegates on a range of topics Some questions wersquove been asking since our first LPM conference back in the misty era of 2012 Much has changed in the world since then (new UK governments drones are now lsquoa thingrsquo Donald Trump) but legal not so much The rise of the ABS has been slow (though impactful) and the recession has for many businesses faded into a distant memory compared to the Brexit debate

But SME law firms rightly smell a real need for change in the wind ndash and perhaps though they seem to find it hard to name that change the clues are legion Letrsquos find some

LPM London 2016 delegates named the greatest hurdles to their firmsrsquo growth or further success as lsquoacquiring high-quality staffrsquo and the lsquoinability to create change within the firmrsquo Might the solution to one lie in the other Great talent wants to flock to fresh and vigorous businesses and younger legal eagles are increasingly shy of throwing their lots in with the fusty world of partnership Law firm leaders must look at how their businesses are run and who runs them and how people work if they are to attract great people ndash and in doing so they will create the change they seek

Herersquos another 52 of delegates named lsquoclient pressures on costrsquo the factor thatrsquos having the biggest impact on the SME legal market ndash but when asked how important price is when winning business 67 said itrsquos just lsquoone of a range of important factorsrsquo while 21 said itrsquos lsquonot as important as other things such as relationshipsrsquo This is a disparity I canrsquot quite understand but it doesnrsquot sound like the SME legal market truly gets the shift thatrsquos happening on the client side and how much change needs to happen inside firms to meet this challenge

Read on and come to your own conclusions but I think the clues are now becoming obvious I hope your firm sees them too LPM

Rupert Collins-White editor-in-chiefLPMmag | rupertwlsncouk

You donrsquot as the song goes need to be a weatherman to know which way the wind is blowing in the legal market ndash but just because the clues are there doesnrsquot mean you can be complacent about acting on them

CONTENTS

FEATURES

LEGAL PRACTICE MANAGEMENT21

SEPTEMBER 2016LPM INSIGHTS

MORE TECHMORE SECURITY

INTRODUCTION TO THE RESEARCH FROM OUR SPONSOR RICHARD ROEBUCK MANAGING DIRECTOR ACCESSPOINT

After a recent period of uncertainty it would now seem that most firms are confident about their future especially in light of Brexit Whatrsquos also certain is

that most firms are very conscious that to compete they will need to change and adapt themselves for the challenges ahead

With growing concerns about the lack of high-quality people available and what appears to be a reliance on quality individuals driving more lucrative fee-earning work is it time for a gear change

Perhaps the dawn of high-volume low-margin fixed fee work which many firms feared has now arrived As always with change there are challenges to be faced but for those clever early adopters there lies opportunity Making light of the more process-driven tasks and finding more effective efficient ways of completion to deliver client-facing benefits seems key to the wider future of the fixed fee legal landscape

With the growing acceptance of cloud technology and the increasing introduction of new software applications and solutions the legal world has moved on at an improved pace this past couple of years And the world is now clearly keen for more ndash to satisfy its desire for a more accessible and mobile working environment What is key for this trend is that the lsquoquality of the deliverablersquo has an ongoing programme of improvement that benefits both the firm and its clients

As progress pulls us forward there will always be elements arrayed against us Alongside the opportunities hiding in the polling from LPM this year therersquos also a sense of fear and concern around possibly the biggest threat to risk and security there is right now ndash the dark byproduct of technological success cybercrime

Cybercrime is fast growing with ever more complex attacks making headlines It is now one of the most common criminal offences in the UK An increasing number of individuals are exploiting the speed and anonymity of the internet to commit a wide range of criminal activities having no conscience and knowing no borders

It isnrsquot our fault websites get hacked but poor internet safety habits can put us at risk Reusing passwords or using weak passwords make us easy targets for identity theft Remembering multiple passwords can be a pain but there are web services and associated applications that can help such as two factor authentication quality mail management systems URL threat protection and mail encryption

For many firms the biggest threats tend to be by way of the ever-open door into our networks and devices ndash email

Our eagerness to respond almost instantly to emails throughout what will be for most an already pressured day is perhaps the dominant daily activity to foster an unwanted lapse in security In the past 18 months alone I have seen three firms that were truly caught out ndash some with the potential for significant financial penalty by opening email attachments The most common lsquogotcharsquo is an email that appears to have come from the office scanning platform whereby the email address has been cleverly spoofed to appear legitimate (for example downstairscopiermyfirmdomaincouk) There are so many existing and newly circulating threats of this calibre and type that even the most aggressive of filtering systems struggle to keep up

Do you know the name(s) of your copiers and the associated email addresses Do you stop to think before opening the innocuous Word attachment ldquoDoesnrsquot our scanner usually send PDF files Why has a covering note not been included with the attachmentrdquo Stop think and call for advice

Another infamous scam is the spoofing of email addresses of key people within your firm ndash for example an email to the head of accounts appears to be from the senior partner ldquoPlease send pound17000 to account X at your earliest convenience and confirm once processedrdquo it says Stop ndash is this your agreed process

As the demand grows and we extend our reach out into the online world so cybercrime advances ever closer seeking unauthorised access through our front door Quite clearly online is the future but we need to embrace it with the necessary skill sets and processes in place for our convenience wellbeing and prosperity LPM

There are so many existing and newly circulating threats of this calibre and type that even the most aggressive of filtering systems struggle to keep up

Accesspoint are independent legal IT specialists who consult on a variety of information technology-related issues offering the best in IT solutions to help firms work more effectively

Contact Richard and the team on 0203 189 2645wwwtheaccesspointcouk

LEGAL PRACTICE MANAGEMENT22

SEPTEMBER 2016LPM INSIGHTS

SME law firms are in a battle for survival Whether they know it or not they have huge challenges to face in the next few years ndash around succession planning technology replacing lawyers and being

used by competitors to attain a competitive edge and catering to clients who increasingly want cost predictability transparency and availability

These market pressures were addressed at the LPM conference in May 2016 which was attended by over 100 delegates all SME legal management leaders The delegates were polled on the day about what they thought of the pressures facing them and how theyrsquore planning to overcome them ndash and their answers provide valuable insight into the SME legal market

The polling results show that LPM conference delegates were aware of the severity of the challenges they face Three-quarters of legal management leaders we polled at the 2016 LPM conference thought that the challenges theyrsquoll face in the next five to 10 years will be lsquomorersquo or lsquomuch morersquo serious than in past years And 58 of delegates thought that the challenges in the next year to two years will be lsquomore serious than in past yearsrsquo

How they will face these challenges depends at least partly on attitude ndash whether they believe they can win or will eventually lose the war Fortunately most LPM conference delegates were optimistic about their firmsrsquo futures - 81 were either lsquocautiouslyrsquo or lsquoveryrsquo optimistic about their place in the legal market of the future

This doesnrsquot necessarily suggest that theyrsquore confident in the market overall particularly after the market instability brought by Brexit Legal management leaders might believe their firm is the only one thatrsquoll survive due to expertise in a particular area or niche In any case it indicates market confidence and a confidence in the ability of their firm to compete and succeed

But is this optimism misplaced in a market where the future is increasingly uncertain and competitive Are firms really ready for change on a huge scale as their confidence might suggest What are the issues currently keeping SME legal leaders awake at night

In this report LPM shines a light on the SME legal market through the eyes of our legal management leader audience ndash those driving their firms through an uncertain new world

WHATrsquoS NEXTChange is on the agenda for LPM firms but how to address the biggest challenges and which ones to face first is a tough call finds Patrick Wingrove

More serious than in past yearsMuch more serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch less serious than in past years

51

14

8

3

24

More serious than in past yearsMuch more serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch less serious than in past years

How would you rate the challenges your firm faces in the next five to 10 years

More serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch more serious than in past yearsMuch less serious than in past years

58

17

6

0

19

More serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch more serious than in past yearsMuch less serious than in past years

How would you rate the challenges your firm faces in the next year to two years

What is the greatest hurdle to your firmrsquos growth or further success

What is the greatest hurdle to your firmrsquos growth or further success

LEGAL PRACTICE MANAGEMENT23

SEPTEMBER 2016LPM INSIGHTS

TIMES THEY ARE A CHANGINrsquo The overriding theme of the 2016 LPM conference was change ndash how firms can implement it the drivers behind it and the various blockers to it But the first step to change is gauging which factors will have the biggest impact on the legal market Just over half of legal management leaders we polled thought client pressures on cost like demanding fixed fees will have the biggest impact while just over a quarter thought it will be competitors attaining a market advantage using technology

How quickly do firms need to respond to these oncoming market pressures Well 86 of LPM conference delegates thought that change needs to happen in their firms within the next two to five years But 14 said that their firm doesnrsquot need to change significantly perhaps because theyrsquove beaten the rest to the punch their legal business is somehow immune to new pressures ndash or they have their heads in the sand

Legal has traditionally been resistant to change and itrsquos not surprising that some firms still are says Sean Stuttaford COO at Essex firm Thompson Smith and Puxon (TSP) and 2016 LPM conference delegate ldquoThere are still firms out there where partners donrsquot have computers on their desks ndash theyrsquore stuck in their ways and just point blank refuse to

52 26 5 12 5

develop their business for the futurerdquoBut legal management leaders willing to implement

change may still find it difficult as 60 of LPM conference delegates polled thought that lsquochange isnrsquot really understood at their firmrsquo

GROWING PAINSJust over a quarter of LPM conference delegates also thought that an inability to create change within their firm would be the greatest hurdle to the businessrsquos growth or further success ndash though Stuttaford at TSP suggests voters might have blamed the traditional partnership business model for the same reason

But acquiring high-quality staff was considered to be the greatest hurdle for growth or success by 36 of delegates Rebecca Patterson HR manager at Kent firm Thackray Williams and 2016 LPM conference delegate says that she agrees with this result ldquoOur firm has a particularly tough time finding quality support staff ndash we could perhaps stand to invest more in competency frameworks and performance management and training opportunities to aid recruitment and retentionrdquo

William Robins operations director at lsquodistributedrsquo firm Keystone Law and a 2016 LPM conference speaker says

12 36 27 13 12

Lack of fundsAcquiring high-quality staffInability to create change within the firmTechnologyThe traditional partnership business model

Out of these which factor is having the biggest impact on the SME legal market

Client pressures on cost (eg fixed fees)Technology creating advantage for competitorsConsolidationDifficulty in finding routes to growth (eg funding)Something else

What is the greatest hurdle to your firmrsquos growth or further success

LEGAL PRACTICE MANAGEMENT24

SEPTEMBER 2016LPM INSIGHTS

offering a more flexible remote or mobile working set-up for everyone in a firm is an excellent way to attract talent (Keystonersquos model of course is founded on remote working) Perhaps the majority of legal management leaders polled at the 2016 LPM conference agree since their firms have either adopted a flexible remote or mobile working set-up are planning to adopt one or are considering adopting one ndash though there are other advantages to remote working such as reducing overheads In any case the results indicate that the SME legal working landscape is becoming considerably more flexible

But remote working doesnrsquot work for everyone Mary Mocklow CEO at West Midlands firm Talbots Law and 2016 LPM conference delegate says that their high-street set-up wouldnrsquot allow it ldquoThe majority of our staff are client-facing and need to be present at the office ndash and while there are other staff at Talbots that might benefit from remote working you canrsquot have a policy for one and not for allrdquo

CYBER THREATSTechnology was clearly a significant concern for legal management leaders who attended the 2016 LPM conference Patterson at Thackray Williams says some firms have had a hard time finding software that caters to their needs as a business and an LPM conference poll seems to back this up just under half of legal management leaders polled at the conference thought project teams should write law firm software indicating a desire for cross-department input into its creation But the poll also indicates that legal software providers have to a large extent been meeting their clientsrsquo needs

The rising threat of cybercrime was also a clear concern for LPM conference delegates ndash 92 of SME legal management leaders said their firms have cyber risk on their management meeting agendas Stuttaford at TSP says ldquoItrsquos something firms need to be constantly aware of and take precautions against not just by purchasing good firewall and antivirus software but by educating staff about password discipline authentication processes and suchrdquo

32 18 14 33 3

Is cyber risk on your management meeting agenda

92

5 3

Yes No Dont know

Is your firm moving to a more flexible workingremote or mobile working set-up for everyone in it

YesNoConsidering itWe already do itDont know

LEGAL PRACTICE MANAGEMENT25

SEPTEMBER 2016LPM INSIGHTS

PRESSURES AND PRICINGClient pressures on cost was also a major concern for legal management leaders polled at the conference so it may not be surprising that just over half of them said 50 or more of their firmrsquos work is some form of fixed fee This doesnrsquot necessarily suggest that the other half arenrsquot open to the concept of fixed fee ndash Mocklow at Talbots points out that fixed fees work for certain types of work ldquoHigh-street firms like Talbots can benefit greatly from fixed fees which is why 75 of our work is fixed fee but itrsquos more difficult to apply to firms that specialise in something like admiralty lawrdquo

The industry seems to think that the value of service has been lost to the price obsession in some areas but not in others ndash and while pricing is clearly a vital issue for SME firms 88 of legal management leaders polled at the LPM conference thought that itrsquos lsquoone of a range of important factorsrsquo or lsquonot as important as other thingsrsquo Patterson at Thackray Williams says that maintaining a good relationship with clients is often more important than pricing though pricing can be a means to achieving client satisfaction ldquoIt also depends on the client ndash in something like conveyancing first-time buyers might be looking for fixed fees or the cheapest price but for commercial clients that may not be as important as reputation or relationshiprdquo

TREASURE MAPPINGLegal process mapping often used by lsquobig lawrsquo and making inroads into SME legal could potentially make SME firms a great deal more efficient and therefore more competitive Two-thirds of legal management leaders polled had heard of process mapping and 79 thought that it is relevant to the business of law Stuttaford at TSP says he agrees ldquoFirms should look at their processes learn from them and figure out how to improve those processes ndash this question really made us look at what TSP has done so far in terms of what legal processes wersquove mapped and whenrdquo

To sum up LPM conference delegates were aware of the challenges that face them but were mostly optimistic nonetheless This may be because they know they need to change and in spite of the fact that change isnrsquot really understood at their firms are planning to mend their ways to meet future market pressures ndash generally putting the client first while keeping talent and technology high on their agendas LPM

Are aware of this thing called legal process mapping

66

34

Has the value of service been lost to the price obsession

23

23

54

Yes No Depends on the service Dont know

Yes No

How important is price in winning business

8

4

67

21

CriticalMore important than almost all factorsIts one of a range of important factorsNot as important as other things such as relationshipsIts one of the less important things in reality

What is the greatest hurdle to your firmrsquos Are aware of this thing called legal process mapping

LEGAL PRACTICE MANAGEMENT27

SEPTEMBER 2016COLUMNSSPONSORED EDITORIAL

Welcome back LPM readers ndash the new school term has started summer is (pretty much) over and the UK is back in full throttle after the summer break And what a break itrsquos been at

File Queen HQ (wersquove taken the time to get our clients up and running with augustprojects as well as started our new Instagram feed filequeenadds)

With the start of the new learning year wersquore focused on the education of you lovely LPM readers ndash with our attention turning back to the General Data Protection Regulation You may remember that in our last LPM article we ran through the 12 steps to tackle the GDPR helped by the awesome people at the Information Commissionerrsquos Office ndash wersquove provided a link to their 12-step resource via our website wwwarchivestoragenetnewsgdpr

Over the next three columns wersquoll be taking these steps and breaking them down for you ndash starting with step one awareness The File Queen (myself) and the team at ADDS have been promoting this step as the most important for all legal practices

ldquoWhyrdquo we hear you holler Well this step is the all-important life raft that unites your practice and team members to help you in the GDPR fight for survival (dramatic I know)

Getting the team on board ndash this buy-in needs to include all ranks of staff ndash from the managing partners to your suppliers But how do you do this Well here are some File Queen tips for when we at ADDS are rolling out projects

Lunch and learn ndash with a register People love to eat and be social so get your legal business to book in a couple of lunch and learn sessions Donrsquot limit this to one date ndash you must run at least two or three so people have the option of which dates to attend Make sure you make a register for those that actually turn up (we all know a calendar acceptance doesnrsquot mean theyrsquoll actually appear) This will allow you to chase down the members of the team you need to get on board for the next one

Have some decent sandwiches nibbles and soft drinks and give the team an overview of the GDPR Run through the 12 steps and make sure you educate them on why everything is so important (make sure you mention the increased fines and audits) During this time let the team know that there are several steps along the way that yoursquoll need their help and support for and which you wonrsquot be able to achieve on your own Tell them that the businessrsquos reputation and brand is on the line and that you need everyone on board to lend a helping hand and spread the word

Another great File Queen tip at this stage is also to get some additional funding from the practice manager for a wine and quiz night at the end of the lunch and learn periods This can be part of your social gathering on a Friday straight after work ndash with some more nibbles and wine Assign people to teams and have a GDPR quiz The winning team gets an award and everyone has fun and learns at the same time Follow our twitter feed as wersquoll be tweeting some great questions to ask thefilequeen GDPRQUIZ

We know itrsquos a lot to organise but there are only four months left in 2016 and GDPR practices must be in place by 25 May 2018 And believe me when you have to roll out rather hard core legislation you have to make it fun and interactive to get people on board LPM

ABOUT

NATASHA RAWLEY THE FILE QUEEN

EDUCATING YOUR PROS

ADDSSaving firms from paper hellContact Natasha on0800 328 0272wwwarchivestoragenet

LEGAL PRACTICE MANAGEMENT28

SEPTEMBER 2016FEATURES

28

Patrick Wingrove talks to the founders of Proelium Law about their work providing legal advice in high-risk environments and conflict zones and the challenges of setting up shop in a new and risky area of law

Legal commandosProelium

Compared to the day-to-day lives of Proelium Law founders and partners Richard Stephens (above left) and Adrian Powell (centre) the average lawyer leads a pretty humdrum life Though UK-based the

firm has a strong international focus ndash Stephens and Powell regularly travel to provide legal and business advice to companies and individuals in high-risk professions or working in hazardous environments across the globe including conflict zones in Iraq Syria and Afghanistan Powell says that itrsquos a challenging but exciting area of law to be in and that ldquono two days are ever the samerdquo

The firm was established as an ABS in November 2015 allowing Powell and Stephens to operate as partners although Stephens isnrsquot a lawyer Powell qualified as a solicitor in 2004 after spending 11 years of his career in the British army and post-2006 worked on various high-risk projects around the world ndash giving him the inspiration for Proelium He says ldquoThe idea came to me in Baghdad in 2009 while working for a private security company as a legal adviser ndash I thought lsquoWhy isnrsquot there a firm doing thisrsquo But I soon realised that I needed someone on the ground who wasnrsquot a lawyer to help make it happenrdquo

That person was Stephens He previously served in the Royal Marines worked as a Whitehall-based strategic planner for the UK government and commanded a special operations regiment (which is why we couldnrsquot show you his face but itrsquos a nice issue of LPM) He now works primarily on the business development side of Proelium ldquoJoining Adrian who Irsquod previously worked with on projects around the

LAW FIRM PROFILE

LEGAL PRACTICE MANAGEMENT29

SEPTEMBER 2016FEATURES

world at a firm meant I could do fascinating and important work with the credibility that being a partner in a regulated business providesrdquo he says

Their work has certainly been interesting Proelium has cast its net far within the niche high-risk sector ndash advising UK-based service providers on the complexities of working in hostile environments conducting business and human rights due diligence and ensuring anti-money laundering counter terrorist-financing and anti-bribery compliance for companies intending to run in high-risk areas or conflict zones to name a few Recently theyrsquove also been working on developing capability for national intelligence organisations overseas ndash but for fear of being jailed for treason Stephens and Powell didnrsquot elaborate hellip

Powell says that the challenges companies face in these areas are numerous ldquoTherersquos a real technical knowledge in understanding how organisations physically work overseas These companies are good at what they do but that doesnrsquot necessarily translate into being business-savvy when it comes to operating in frontier markets ndash thatrsquos where Proelium adds valuerdquo For example after a client was recently exposed on an arms deal they were able to quickly discern liability and ensure that all necessary agencies and departments were appropriately informed

Powell and Stephens joke about how theyrsquore the number-one firm in their sector ndash admitting that to their knowledge theyrsquore the only firm that specialises in this area of law They added that itrsquos an untapped niche in which Proelium will be a pioneering force but which has also recently come onto the radar of a larger firm Theyrsquore alluding of course to Proeliumrsquos recent venture with Harrison Clark Rickerbys ndash a joining that combines Proeliumrsquos experience working in high-risk jurisdictions with the manpower and existing defence and security expertise of

HCR Powell says ldquoWhat they donrsquot have is our connections and our experience They like the idea of the sector because they see it as an interesting area and the partnership will allow us to offer a wealth of different legal services while letting us focus on what we do bestrdquo

As part of their ambitions for Proelium Powell and Stephens are keen to train a new generation of lawyers whorsquoll specialise in the high-risk sector ldquoWe have confidence in what the younger generation has to offer and we want them in our industry to continue our work in this relatively untapped areardquo says Powell Stephens adds that itrsquos also a matter of succession planning ldquoWe want the firm to operate long into the future but we donrsquot necessarily want to be running it ourselves for the next 20 yearsrdquo Proelium currently employs two interns as part of this commitment including University of Surrey law student Ruby Jamieson (pictured) She says ldquoWorking [at Proelium] has given me loads of insight already ndash itrsquos very niche

very new and Irsquove really enjoyed helping develop the business I feel that itrsquoll open a lot of doors when I graduaterdquo

In terms of expansion Proelium has recently opened a new office in the City of London Powell says that his home was originally the firmrsquos practising address but a large portion of their client-base is in London ldquoand we couldnrsquot keep having our meetings in coffee shopsrdquo

But Powell and Stephens are firm believers in the concept of remote working which works particularly well for their business

ldquoMost of our clients are either in London or outside the EU so Irsquom always away but all my phone calls are redirected from the new office to my mobile so I can keep in touch with clients whether Irsquom in Dubai or Baghdadrdquo says Stephens Powell adds that he feels remote working has the added benefit of keeping staff happy by letting them work from home which he says certainly makes him more productive as a fee earner

Proelium isnrsquot looking to expand into areas it has no interest in like family law but theyrsquore taking a keen interest in the emerging area of cyber law and are considering taking steps into that world ldquoLike high-risk law no onersquos really wrapped their arms around cyber law yet Therersquos cyber law in the US but it doesnrsquot exist per se in the UK except in terms of data protectionrdquo

When asked what advice they could give to SME firms based on their unique experiences in their sector Powell and Stephens said firms should know the areas of law they practise inside and out Powell says ldquoWersquore concerned with being experts in our field ndash a lot of our clients have peoplersquos lives in their hands and are not in the business of nonsense which is why they come to us We give sound researched legal advice based on experience and if we donrsquot know something we send the client to someone who doesrdquo LPM

ldquoCompanies are good at what they do but that doesnrsquot necessarily translate into being business-savvy when it comes to operating in frontier markets ndash thatrsquos where Proelium adds valuerdquo

Proelium

Two fee earners four total staff

Offices City of London Wirral Cheltenham

Specialisms International criminal commercial and conflict law due diligence sensitive investigations

LPM FACT FILE

ldquod2u is the UKrsquos number one outsourced transcription service for medical and legal professionals and highly competitive all over the world We pride ourselves on saving our clients time and money as well as offering state-of-the-art security and a first-rate servicerdquo Daryl Leigh CEO dictate2us

LPM magazine has agreed a special deal for its readers with dictate2us ndash 5 off your monthly

transcription bill for one year if you sign up through the dedicated LPM link or call and quote LPM2016 when signing up You can trial the service for free before committing

CUT COSTS INCREASE EFFICIENCYAll firms could benefit from outsourcing transcription to dictate2us ndash but even more so with our LPM deal 5 off your first year

wwwdictate2uscomlpm

Use d2u and enjoy the benefits ofbull Fast turnaround timesbull Secure and confidential servicebull Secetarial cost reductions of up to 60bull Guaranteed 985 minimum accuracybull iPhone Android and Blackberry apps with one-hour turnaroundbull 100 output - only pay for the time you talkbull Free no obligation trial

This special LPM magazine reader deal only relates to customers that execute an agreement for a minimum term of 12 months with a minimum monthly commitment of 500 minutes LPM magazine sought two law firm references for dictate2us to verify its claims for quality and delivery The 5 deal only applies to the first paying year the customer is with dictate2us LPM magazine is not responsible or liable in any way for work done by dictate2us and is an advertising referrer only

d u2 dic t a t e 2 u s

SPECIAL READER OFFER

The d2u Transcriber app is free to download from Apple and Android app stores and BlackBerry App World

OFFER 5 OFF

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WHEN CALLING

LPMLEGAL PRACTICE MANAGEMENT

LPMLEGAL PRACTICE MANAGEMENT

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LEGAL PRACTICE MANAGEMENT31

SEPTEMBER 2016FEATURES

Patrick Wingrove speaks to management leaders from SME and top 100 law firms that have recently achieved significant growth to find out how to go from acorn to oak tree

FROM MINNOW TO

For many SME firms growth is the goal ndash but it doesnrsquot have to happen in the ways that many have scaled in the past The era of organic slow quiet steady partnership development over decades is

increasingly at odds with a fast-paced digital world Strategies for growth in the legal market are now closer than ever to the rest of the business world ndash and any size firm can learn how to do it

Big or small there are similar tools in the box for making growth happen and similar challenges Lessons abound but some of the best can be taken from those firms not far outside the famous lsquotop 100rsquo legal businesses in the land ndash those that have already grown up and now have the top tier in their sights There are also lessons to draw from smaller but rapidly scaling law firms

There are many growth strategies for organic and acquisitive growth ndash and no easy answer for which is right for your firm To shine a light on the subject wersquove spoken both to SME and top 100 firms about growth and how to do it (and importantly how not to do it)

MAMMOTH

LEGAL PRACTICE MANAGEMENT32

SEPTEMBER 2016FEATURES

MODELS OF GROWTH According to the Lawyer the two fastest growing firms in the top 200 this year are Midlands-based Knights and lsquodistributedrsquo firm Keystone Law ndash currently placed 119 and 122 in the 2015 UK 200 rankings but whose revenue will now put them well inside the 2016 top 100 (due for release October 2016) Both attribute their growth to non-traditional business models ndash and very different non-traditional models at that

Knights corporatised in 2014 to remove the barriers from its decision making processes which CEO David Beech says has been the key to its growth ldquoEquity partnerships donrsquot grow particularly quickly because itrsquos hard to achieve consensus and make decisions that enable fundamental or rapid growth among equity partnersrdquo

Knights acquired Oxford-based Darbys earlier this year ndash a move largely behind the revenue increase that will put them in the top 100 ndash and completed the transition inside three months which Beech says would have been next to impossible under their old business structure ldquoNot only was a quick turnaround good for the books it saved significant time and money that could be invested elsewhere in the businessrdquo he says

Top 100 firm Simpson Millar is one step

ahead of Knights The firm broke the glass ceiling to become a top 100 firm in 2015 and like Knights the firm attributes its growing success to corporatisation ndash but in a different manner

It sought to be and was eventually acquired by PLC Fairpoint Group in 2014 Simpson Millar continues to run as an LLP under the same management team and existing trading brands but as a business unit within Fairpoint

Managing partner Peter Watson says that one of the key reasons to pursue this particular growth strategy was to provide an injection of capital for MampA ldquoWe completed the sizeable acquisition of Colemans last year for example which we were only able to do with considerable investment from Fairpointrdquo

Being part of a PLC has also given the firm access to strong MampA and project management capabilities ldquoAcquiring Colemans doubled the business overnight ndash for something like that you need strong MampA experience and access to that team within Fairpoint was crucial in getting the deal across the linerdquo says Watson Simpson Millar also built a strong digital strategy launched new products and focused on pricing ldquoCall it fixed fees or packaged fees the point of it was to say to consumers

Square One Law

Revenue pound5m

31 fee earners 53 total staff

Offices Newcastle-upon-Tyne

Specialisms Commercial corporate property employment EU and competition law finance litigation private client

LPM FACT FILE

Knights

Revenue pound40m (year end 2017)

375 fee earners 450 total staff

Offices Chester Cheltenham Newcastle-under-Lyme Derby Oxford Hale

Specialisms Full service firm

LPM FACT FILE

LEGAL PRACTICE MANAGEMENT33

SEPTEMBER 2016FEATURES

lsquoWith us you know exactly what yoursquoll get and how much itrsquoll costrsquordquo

PEOPLE PLEASERSThe ability to implement change has also been an important part of delivering a growth strategy This isnrsquot necessarily surprising ndash polling at the 2016 Legal Practice Management conference showed that legal business managers thought it was one of the greatest hurdles to a firmrsquos growth or success only topped by acquiring high-quality staff In Knightsrsquo case the two challenges were addressed together Beech says Knightsrsquo corporate rather than partnership structure also allows it to recruit talented people without having to deal with the inherent politics of an equity partnership

ldquoAcquiring the best talent has been a central part of our growth strategy ndash if a candidate can help the business through expertise or client following we can just recruit themrdquo he added

But a successful growth strategy incorporating talent isnrsquot just about recruiting quickly as we analysed in the July 2016 issue of LPM ndash itrsquos about recruiting well Firms also need to make themselves an attractive prospect for legal talent in order to grow

William Robins operations director at Keystone Law says his firmrsquos lsquodispersedrsquo model allows it to do that by offering new fee earners the chance to work remotely with less supervision ldquoWersquore typically hiring about a lawyer a week ndash bringing their expertise fee-earning capability and client following with them ndash and that is the core part of our growth strategyrdquo The firm has buttressed its recruitment capability by hiring a director of recruitment to focus almost entirely on lawyer enrolment (recruiting talent to recruit talent ndash neat)

Though the distributed model may not be for everyone says Robins implementing some form of flexible mobile or remote working should be part of any firmrsquos growth strategy because it allows firms to increase their fee-earning capability without accruing fixed overheads such as office premises

And there are other ways to be talent-attractive As a core part of its growth strategy Newcastle-based firm Square One Law ndash which achieved 30 growth in the

last financial year ndash has pledged to create a supportive and inspirational team environment offering high-calibre work to attract the best talent Ian Gilthorpe senior partner at Square One says ldquoGood people want to be inspired to be valued for what they do and feel as though theyrsquore making a contribution The key is to engage with all your staff to facilitate a culture where staff feel happy at work work for each other trust each other and ensure that they see the value in what they do ndash if you do that more talent will comerdquo

He added that itrsquos important for

recruitment to convey staff satisfaction to the outside world which Square One has achieved by including staff video-testimonials on its website

But recruiting is only half of an effective people strategy ndash the other is retention Simpson Millar has attempted to create an environment that its talented staff wonrsquot want to leave Says Watson ldquoToo many firms worry about what will happen if their rainmaker goes somewhere else and takes clients with them ndash so they put the shackles on make them feel unhappy and make it so that they canrsquot realise their full potentialrdquo Creating such an environment makes firms an attractive target for lateral hires when they should be building a place people want to join

PRACTICE AREASSME legal businesses donrsquot necessarily need to change their business models completely to achieve the same growth as

Thorntons

Revenue pound20m

209 fee earners 430 total staff

Offices Dundee Edinburgh St Andrews Perth Cupcar Kirkcaldy Anstruther Arbroath Montrose Forfar

Specialisms Full service firm

Keystone

Revenue pound202m

198 fee earners 230 total staff

Offices London Bristol Isle of Man Australia

Specialisms Corporate and commercial dispute resolution property

LPM FACT FILE

LPM FACT FILE

Equity partnerships donrsquot grow particularly quickly because itrsquos hard to achieve consensus and make decisions that enable fundamental or rapid growth among equity partners David Beech CEO Knights

Simpson Millar

Revenue pound316m

322 fee earners 539 total staff

Offices Birmingham Bristol Cardiff Cheadle Hulme Gateshead Kingston-upon-Thames Lancaster Leeds Park Place Leeds St Pauls Street (head office) London Manchester Newcastle

Specialisms Full service firm

LPM FACT FILE

LEGAL PRACTICE MANAGEMENT34

SEPTEMBER 2016FEATURES

our examples but removing blockers from decision-making making themselves more attractive to talent and finding the right funding for growth are increasingly important and the partnership structure may not enable it

But of course that means asking some turkeys to vote in a Yuletide election Fortunately there are other ways to achieve impressive growth mainly investment andor expansion into new geographic or practice areas

Watson says that Simpson Millar wouldnrsquot have been an attractive prospect to Fairpoint had the firm not spent time growing organically by expanding into new areas of law

ldquoWe went from being a predominantly trade union PI firm to having a broad base of 16 types of work ndash with strong heads in charge of each committed to driving growth in their departments ndash which gave us a large boost in revenuerdquo The firm achieved this through small acquisitions of other firms that had expertise in particularly lucrative areas of law

But firms shouldnrsquot just look at expanding in lucrative areas ndash they should focus on areas where their reputations deliver an advantage Scotlandrsquos Thorntons for example ndash which last year leapt from 134 to 108 in the 2015 UK 200 rankings ndash invested in six departments as part of its growth strategy

Thorntons joint managing partner Scott Milne says ldquoWe didnrsquot exclude other areas but we saw that these areas were profitable and that more importantly we had considerable expertise in them ndash we also considered that these are areas that are unlikely to be affected by future economic downturnrdquo This included investing in niche areas of law where the firm has a geographic competitive advantage ldquoWersquore lucky to be surrounded by some of the best farmland in the UK ndash wersquore well known for our expertise in rural business law which is why we invested heavily in itrdquo

ORGANIC V ACQUISITIONIn several ways choosing an effective growth strategy very much boils down to MampA versus organic growth ndash every business model talent or area expansion strategy appears to revolve around one or both But which is the best to achieve the kind of growth thatrsquoll propel firms to a lsquohockey stickrsquo on their revenue forecasts The short answer is it depends on whatrsquos best for a firm at a given time It either

needs to fit the firm ndash or the firm needs to change to fit the goal

Beech says that acquisition has been excellent for Knights because itrsquos a fast and effective form of expansion ndash the acquisition of Darbys more than doubled its revenue But MampA poses a significant challenge to finding firms with the right cultural fit

ldquoFirms need to establish a single culture in order to implement growth ndash everyone needs to be working towards the same goalrdquo He added that when a firm completes a merger or acquisition that firm has to be integrated from day one which is much more difficult if it has a significantly different culture Knights is planning to continue recruiting and complete more acquisitions in the next year to maintain the growth curve

Of course the big problem with acquisition is money Robins at Keystone says his firm lies at the opposite end of this

INFORMATION IS EMPOWERING

Lemington Spa-based firm Wright Hassall has a specific goal of breaking into the top 100 and as part of its growth strategy expanded into areas of the UK where its expertise is highly sought after ndash using customer relationship management in the background to underpin the firmrsquos activities in specific areas Martyn Wells IT director at the firm says ldquoWersquove zoomed in on specific industry sectors that we know are performing well in the Midlands sectors where we have a superb reputationrdquo Expanding geographically as Wells outlines needs data to get right Thorntons for example identified various lsquomicro-marketsrsquo in Scotland close to its base of operations ldquoWe acquired a firm in St Andrews because itrsquos like a micro-economy (or micro-market) that doesnrsquot seem to be affected by price drops in the residential market elsewhererdquo says Thorntons joint managing partner Scott Milne Knights has another take on the geographic targeting idea ndash it intends to stay out of the large cities (London Manchester Leeds for example) and expand into areas where there is little competition As David Beech CEO at Knights explains ldquoLast September we acquired a small team in Chester of about 11 lawyers and now thatrsquos expanded to just over 70 ndash and the main reason wersquove been able to do that is because there isnrsquot a lot of competition thererdquoUltimately this all comes down to research finding out what to invest in or where to expand and perhaps most importantly finding out what clients want

LEGAL PRACTICE MANAGEMENT35

SEPTEMBER 2016FEATURES

spectrum to the way Knights has grown emphasising organic growth finding innovative means to attract talent using technology to drive efficiency and branching out into new areas of law or new markets to achieve significant growth

Square One Law also espouses the organic route ndash believing that firms with growth in mind should focus on ensuring their external brand reflects the businessrsquos internal culture and behaviours of its team creating lsquosynergyrsquo between the business and its clients

Gilthorpe says ldquoMergers ndash and there is no such thing as a true merger ndash and acquisitions can be a distraction as you look to create a new culture and separate the wheat from the chaff and this can soak up a lot of energy that would otherwise be put to use in driving the progression of the business and the focus on client servicerdquo

The best option for some firms may be a

calculated combination of MampA and organic Thorntons for example having made several acquisitions is now focusing on organic growth moving away from geographical expansion and towards developing locations and its brand

Watson at Simpson Millar sums the mixed approach up thus ldquoItrsquos a mixture Acquisition is still very much a part of the mix but in parallel to that itrsquos important to demonstrate that yoursquore developing ongoing work rather than being driven solely by acquisitionrdquo

There are clearly many different ways to achieve healthy and assertive growth though there are no easy answers as to which way is right for your firm But it is clear that growth doesnrsquot have to happen in the ways many have previously achieved it ndash innovation and lateral thinking are the means of achieving significant growth (which might one day propel you into the top 100 you never know) LPM

LEGAL PRACTICE MANAGEMENT36

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

INDUSTRY VIEWS

36LEGAL PRACTICE MANAGEMENT

Legal is becoming an ever more digital industry giving firms the chance to become more efficient flexible agile and collaborative

INDUSTRY VIEWS INDEX

ONLINEOFFICES

36

SPONSORED EDITORIAL

INDUSTRY VIEWS

37 INTERVIEW

Paperless processLinetimersquos Tony Klejnow explains the benefits of using matter management software for law firms and their clients

39 INTERVIEW

Virtual expansionNigel Redwood Nasstarrsquos CEO talks about the advantages of having a managed flexible IT infrastructure

LEGAL PRACTICE MANAGEMENT37

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT37

Competition and price pressures and an increasingly digital client base are all significant drivers for law firms to become paperless

businesses Tony Klejnow Linetimersquos managing director says firms could achieve competitive advantage by introducing paperless solutions across their businesses ndash but a particular lsquoeasy winrsquo area is matter management

ldquoFee earners are required to keep detailed records of their cases but the amount of time and money they waste physically printing filing looking for collaborating on and updating files is alarmingrdquo says Klejnow Law firms have traditionally been reluctant to adopt paperless

workflow solutions he adds because workflow doesnrsquot apply to 99 of fee earnersrsquo work ldquoBut if they adopted paperless solutions in their back office processes they could reduce costs without affecting client service boost productivity and promote collaboration ndash making them more efficient flexible and cost effective and making them more competitive in an ever-changing legal marketrdquo

MATTER MATTERSDocument and matter management tools ndash like those in Linetimersquos legal software product Liberate ndash electronically store and organise all case documentation in an online database Klejnow says that there are two immediate benefits of paperless matter

PAPERLESS PROCESS

Tony Klejnow managing director at Linetime talks to LPM about the benefits of the paperless office ndash starting with filing and back office processes

INDUSTRY VIEWS

Linetime is a specialist provider of Microsoft-based practice and case management solutions Clients include mid-tier law firms and in-house legal departmentswwwlinetimecouk

ABOUT THE SPONSOR

SPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT38

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT 38

management The first is reducing paper and storage costs

ldquoIf case documentation is electronically stored once a case is finished you no longer have a five-inches-thick file that has to be stored for six years ndash which has to reside somewhere and costs firms time space and moneyrdquo The second is eliminating filing time ndash for example instead of printing and filing emails and attachments fee earners drag and drop emails directly from Outlook into the database ldquoand attachments are automatically stripped from emails and appropriately filedrdquo says Klejnow

And Klejnow says paperless filing systems donrsquot just facilitate efficiency this way ndash they also improve general process efficiency by facilitating collaboration between fee earners Solicitors can use document and matter management to view and work on matters at the same time a difficult if not impossible prospect when working with paper files Klejnow says ldquoWithout document management legal professionals work in silos but with it they immediately share datardquo He adds that Liberate has an additional collaboration tool to help further improve collaborative efficiency in firms ldquoIf I choose to lsquocollaboratersquo a document with you on Liberate Outlook will prompt you to review that document by simply acknowledging the notificationrdquo

In this respect moving to become a paperless business provides greater flexibility for fee earners who can collaborate with colleagues working remotely or in different offices Klejnow says ldquoPaper files can only reside in one location but electronic files can be accessed from any office and when working from home or with clientsrdquo On the other side of the coin having digital files maintains a greater level of productivity in a law firm office ldquoIf your colleague is absent from the office you can easily find documents that you might have otherwise wasted a significant portion of your day looking forrdquo he adds

Improved external collaboration is also a benefit that firms can reap from paperless matter management With an electronic system you can go into a case history bundle documents into one PDF file and quickly submit that to the third party improving collaboration between fee earners and clients who want to do everything online This has the added benefit of improving accuracy and facilitating greater efficiency by involving clients in the process ldquoGood matter management software should also let you push e-forms to clients to be filled in and that information is automatically transferred straight to the online database ndash which saves fee earners

time and is a more accurate because the information doesnrsquot have to be constantly re-enteredrdquo says Klejnow

This extra level of collaboration within legal businesses that hasnrsquot been possible until now has long been needed because it improves efficiency and productivity which makes the business more profitable and competitive Klejnow adds that what firms save by adopting matter management they should reinvest in becoming fully paperless digital businesses

ldquoCase management solutions can improve efficiency to an even greater extent and keep firms competitive in the age of the alternative business structuresrdquo

VISIBLE COMPLIANCEIn response to firms reluctant to adopt paperless technologies like document and matter management for fear of losing delicate information to cybercriminals Klejnow says those systems provide an additional level of security ldquoTaking data and attachments out of Outlook and storing them on a database is much more secure than leaving them on your hard drive If you leave

your laptop on a train for example all your important data is safely stored on a server and not instantly accessible by opportunist criminalsrdquo

Document and matter management also offers a greater level of security in fee earner and client communications ldquoIf I want you to check that the data we have for you is accurate Liberate will

direct you to a page holding your data and at the same time it will push out an SMS text with a pin code to your phone Unless you input the code you canrsquot get to the web page ndash which means if one of your solicitors accidentally sends an email to the wrong person or itrsquos intercepted it doesnrsquot matter The data stays safe ndash this level of security is crucial in this age of cybercrimerdquo

These security features clearly have significant benefits for compliance which is important in a market increasingly dictated by regulation including the relatively new General Data Protection Regulation says Klejnow

ldquoCompliance officers need to be seen by regulators to have monitored and reviewed everything thatrsquos happened in their firm which is considerably easier with a paperless system Liberate has lsquoversion controlrsquo which allows compliance officers to keep tabs on every change made to a document as well as a compliance module which lets them view whatrsquos happening on a case (to ensure that money laundering checks have been carried out and so on) and records the fact that yoursquove reviewed thisrdquo LPM

Without document management legal professionals work in silos but with it they immediately share data

INTERVIEW

LEGAL PRACTICE MANAGEMENT39

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LPM readers may already know the Nasstar Group ndash but by a different name Nasstar was launched by regular LPM-contributor e-knownet to consolidate four discrete hosted

managed IT businesses (including e-knownet) after a period of significant acquisition Nigel Redwood chief executive officer at Nasstar says merger and acquisition and consolidating brands is challenging but having a flexible hosted IT infrastructure makes the process significantly easier

ldquoManaged IT services are enormously beneficial for firms that are expanding or consolidating particularly after MampA in terms of time and productivity cost savings and flexibilityrdquo He adds that by just having managed desktops firms can attain competitive advantage by reducing overheads and becoming more flexible and agile

Nasstar has experience helping SME firms with their IT systems after MampA and knows what problems to look out for creating unity among staff used to using different systems and processes the cost and time it takes to expand an IT infrastructure and the geographic distance between new offices

Redwood says that MampA can be an excellent way for legal businesses to expand into new sectors but that consolidating new departments using different IT systems and processes is challenging

ldquoOur acquisitions for example introduced new sector focuses for us in the SME legal market ndash wersquove consolidated these into a wider service base under Nasstar and facilitated unity among staff using virtual IT solutions

rdquoVirtual IT solutions help facilitate unity across the business by providing a level of consistency in an IT infrastructure Everyone immediately uses the same applications on the same versions from wherever theyrsquore working creating unity faster collaboration across teams and effective information sharingrdquo Hosted IT infrastructures are also continually updated giving staff instant access to new updates applications and technologies as they become available

The next significant challenge firms face after MampA is expanding their IT infrastructure to accommodate an influx of new staff ndash but Redwood says virtual IT solutions let firms expand their IT infrastructure at the flick of a switch

ldquoWith virtual IT firms arenrsquot held back by the size of their servers or the amount of computer power theyrsquove got ndash they simply call their IT provider and ask for an upgrade when previously theyrsquod have been

subject to lengthy and costly IT upgradesrdquo Virtual IT solutions are also easy to budget for

Redwood says ldquoYoursquore not going to be surprised by an increased fixed asset expenditure ndash services like those offered by Nasstar are an operational cost and fixed per user per month through a scalable cost modelrdquo

Geographic distance inhibiting collaboration between merged offices is also a key consideration for firms after MampA but virtual IT solutions solve this problem Redwood says a virtual IT infrastructure can minimise travel through the use of hosted virtual meeting rooms and video technology Staff can use this technology from virtually anywhere which is why it also lends itself well to remote flexible or mobile working set-ups

VIRTUAL WORKPLACERemote working is becoming an increasingly present feature of the legal landscape because of its cost saving and recruitment and retention advantages ndash the majority of firms at the LPM conference 2016 were moving towards a flexible remote or mobile working set-up or already had one

Redwood says virtual IT solutions better enable staff who work remotely ldquoHosted managed desktop solutions for example let staff work with the same applications from any device in the world safely and securelyrdquo

But remote working isnrsquot only about enabling the current workforce itrsquos about attracting future talent Redwood says that millennials donrsquot necessarily want to work as their predecessors did ndash they expect greater flexibility in the workplace which at one level can be achieved by remote working facilitated by a managed desktop

ldquoAnd itrsquos not only about attracting millennialsrdquo he says ldquoSME firms with flexible working set-ups are becoming more attractive to experienced legal talent who may be frustrated by the rigidity of their firmrdquo As a firm expands its workforce in this manner firms with virtual IT solutions reap the lsquodoublersquo cost saving benefits of not having to expand their premises or IT infrastructure accordingly

Some firms are resistant to remote working based on hosted IT services believing they arenrsquot secure ndash but Redwood says that argument ldquocan be put to bedrdquo

ldquoFor an in-house IT team to have the level of security that an organisation like ours can deliver is near impossible financially as well as in terms of the

VIRTUALSANITYNigel Redwood CEO at Nasstar talks to LPM about how managed IT can help SME firms achieve competitive advantage by making them more agile and flexible

LEGAL PRACTICE MANAGEMENT40

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

INTERVIEW

level of systems and technologies they deployrdquo Cybercrime is of course a scary and constantly evolving threat but Redwood points out that virtual IT systems have dedicated teams monitoring these threats evolving cyber defences and changing systems accordingly

ldquoThis capability not only makes [firms] a lot more secure but gives peace of mind in terms of compliancerdquo

ONLINE ADVANTAGE Redwood says virtual IT infrastructures donrsquot just pertain to lsquobig lawrsquo but to SME firms as well ndash perhaps more so

ldquoVirtual IT systems are a way for SME firms to stay competitive against their larger

counterparts and ABSs ndash it gives them a greater ability to expand it lets them adopt more flexible and agile models and is easy to budget forrdquo Firms can also expect virtual IT solutions to enable better alignment of IT resources to business needs enhanced usability with anywhere anytime access and in-built business continuity

But the greatest advantage virtual IT offers SME firms over big law is agility Redwood says ldquoBig IT departments in firms can be slow to react cumbersome and held back by the limitations of hardware infrastructure and security issues ndash all of that is removed with a solution like ours and the customer has access to fast-moving agile ITrdquo LPM

ABOUT THE SPONSOR

Nasstar is a provider of managed IT services and tailor-made cloud hosted solutions ndash delivering innovative secure and agile IT to help clients accomplish their business objectiveswwwnasstarcom

Page 18: LPM September 2016

LPMLEGAL PRACTICE MANAGEMENT

SUPPLEMENT SEPTEMBER 2016

BUSINESS INFORMATION FOR EVERYONE IN PRACTICE MANAGEMENT

LPM INSIGHTS

Sponsored by

How do SME law firm management leaders see the future

LEGAL PRACTICE MANAGEMENT20

SEPTEMBER 2016LPM INSIGHTS

ALL CHANGE

22WHATrsquoS NEXT We analyse the 2016 LPM conference polling data

2 1 COMMENT Accesspointrsquos Richard Roebuck on legalrsquos increasing digital dangers

Change and transformation are words that strike fear into the most hardened of legal management hearts because they are hard to do and even

harder to make stick But change must happen inside todayrsquos SME law firms to make sure they stay in business in tomorrowrsquos world

At this yearrsquos Legal Practice Management conference in London we polled our audience of law firm management delegates on a range of topics Some questions wersquove been asking since our first LPM conference back in the misty era of 2012 Much has changed in the world since then (new UK governments drones are now lsquoa thingrsquo Donald Trump) but legal not so much The rise of the ABS has been slow (though impactful) and the recession has for many businesses faded into a distant memory compared to the Brexit debate

But SME law firms rightly smell a real need for change in the wind ndash and perhaps though they seem to find it hard to name that change the clues are legion Letrsquos find some

LPM London 2016 delegates named the greatest hurdles to their firmsrsquo growth or further success as lsquoacquiring high-quality staffrsquo and the lsquoinability to create change within the firmrsquo Might the solution to one lie in the other Great talent wants to flock to fresh and vigorous businesses and younger legal eagles are increasingly shy of throwing their lots in with the fusty world of partnership Law firm leaders must look at how their businesses are run and who runs them and how people work if they are to attract great people ndash and in doing so they will create the change they seek

Herersquos another 52 of delegates named lsquoclient pressures on costrsquo the factor thatrsquos having the biggest impact on the SME legal market ndash but when asked how important price is when winning business 67 said itrsquos just lsquoone of a range of important factorsrsquo while 21 said itrsquos lsquonot as important as other things such as relationshipsrsquo This is a disparity I canrsquot quite understand but it doesnrsquot sound like the SME legal market truly gets the shift thatrsquos happening on the client side and how much change needs to happen inside firms to meet this challenge

Read on and come to your own conclusions but I think the clues are now becoming obvious I hope your firm sees them too LPM

Rupert Collins-White editor-in-chiefLPMmag | rupertwlsncouk

You donrsquot as the song goes need to be a weatherman to know which way the wind is blowing in the legal market ndash but just because the clues are there doesnrsquot mean you can be complacent about acting on them

CONTENTS

FEATURES

LEGAL PRACTICE MANAGEMENT21

SEPTEMBER 2016LPM INSIGHTS

MORE TECHMORE SECURITY

INTRODUCTION TO THE RESEARCH FROM OUR SPONSOR RICHARD ROEBUCK MANAGING DIRECTOR ACCESSPOINT

After a recent period of uncertainty it would now seem that most firms are confident about their future especially in light of Brexit Whatrsquos also certain is

that most firms are very conscious that to compete they will need to change and adapt themselves for the challenges ahead

With growing concerns about the lack of high-quality people available and what appears to be a reliance on quality individuals driving more lucrative fee-earning work is it time for a gear change

Perhaps the dawn of high-volume low-margin fixed fee work which many firms feared has now arrived As always with change there are challenges to be faced but for those clever early adopters there lies opportunity Making light of the more process-driven tasks and finding more effective efficient ways of completion to deliver client-facing benefits seems key to the wider future of the fixed fee legal landscape

With the growing acceptance of cloud technology and the increasing introduction of new software applications and solutions the legal world has moved on at an improved pace this past couple of years And the world is now clearly keen for more ndash to satisfy its desire for a more accessible and mobile working environment What is key for this trend is that the lsquoquality of the deliverablersquo has an ongoing programme of improvement that benefits both the firm and its clients

As progress pulls us forward there will always be elements arrayed against us Alongside the opportunities hiding in the polling from LPM this year therersquos also a sense of fear and concern around possibly the biggest threat to risk and security there is right now ndash the dark byproduct of technological success cybercrime

Cybercrime is fast growing with ever more complex attacks making headlines It is now one of the most common criminal offences in the UK An increasing number of individuals are exploiting the speed and anonymity of the internet to commit a wide range of criminal activities having no conscience and knowing no borders

It isnrsquot our fault websites get hacked but poor internet safety habits can put us at risk Reusing passwords or using weak passwords make us easy targets for identity theft Remembering multiple passwords can be a pain but there are web services and associated applications that can help such as two factor authentication quality mail management systems URL threat protection and mail encryption

For many firms the biggest threats tend to be by way of the ever-open door into our networks and devices ndash email

Our eagerness to respond almost instantly to emails throughout what will be for most an already pressured day is perhaps the dominant daily activity to foster an unwanted lapse in security In the past 18 months alone I have seen three firms that were truly caught out ndash some with the potential for significant financial penalty by opening email attachments The most common lsquogotcharsquo is an email that appears to have come from the office scanning platform whereby the email address has been cleverly spoofed to appear legitimate (for example downstairscopiermyfirmdomaincouk) There are so many existing and newly circulating threats of this calibre and type that even the most aggressive of filtering systems struggle to keep up

Do you know the name(s) of your copiers and the associated email addresses Do you stop to think before opening the innocuous Word attachment ldquoDoesnrsquot our scanner usually send PDF files Why has a covering note not been included with the attachmentrdquo Stop think and call for advice

Another infamous scam is the spoofing of email addresses of key people within your firm ndash for example an email to the head of accounts appears to be from the senior partner ldquoPlease send pound17000 to account X at your earliest convenience and confirm once processedrdquo it says Stop ndash is this your agreed process

As the demand grows and we extend our reach out into the online world so cybercrime advances ever closer seeking unauthorised access through our front door Quite clearly online is the future but we need to embrace it with the necessary skill sets and processes in place for our convenience wellbeing and prosperity LPM

There are so many existing and newly circulating threats of this calibre and type that even the most aggressive of filtering systems struggle to keep up

Accesspoint are independent legal IT specialists who consult on a variety of information technology-related issues offering the best in IT solutions to help firms work more effectively

Contact Richard and the team on 0203 189 2645wwwtheaccesspointcouk

LEGAL PRACTICE MANAGEMENT22

SEPTEMBER 2016LPM INSIGHTS

SME law firms are in a battle for survival Whether they know it or not they have huge challenges to face in the next few years ndash around succession planning technology replacing lawyers and being

used by competitors to attain a competitive edge and catering to clients who increasingly want cost predictability transparency and availability

These market pressures were addressed at the LPM conference in May 2016 which was attended by over 100 delegates all SME legal management leaders The delegates were polled on the day about what they thought of the pressures facing them and how theyrsquore planning to overcome them ndash and their answers provide valuable insight into the SME legal market

The polling results show that LPM conference delegates were aware of the severity of the challenges they face Three-quarters of legal management leaders we polled at the 2016 LPM conference thought that the challenges theyrsquoll face in the next five to 10 years will be lsquomorersquo or lsquomuch morersquo serious than in past years And 58 of delegates thought that the challenges in the next year to two years will be lsquomore serious than in past yearsrsquo

How they will face these challenges depends at least partly on attitude ndash whether they believe they can win or will eventually lose the war Fortunately most LPM conference delegates were optimistic about their firmsrsquo futures - 81 were either lsquocautiouslyrsquo or lsquoveryrsquo optimistic about their place in the legal market of the future

This doesnrsquot necessarily suggest that theyrsquore confident in the market overall particularly after the market instability brought by Brexit Legal management leaders might believe their firm is the only one thatrsquoll survive due to expertise in a particular area or niche In any case it indicates market confidence and a confidence in the ability of their firm to compete and succeed

But is this optimism misplaced in a market where the future is increasingly uncertain and competitive Are firms really ready for change on a huge scale as their confidence might suggest What are the issues currently keeping SME legal leaders awake at night

In this report LPM shines a light on the SME legal market through the eyes of our legal management leader audience ndash those driving their firms through an uncertain new world

WHATrsquoS NEXTChange is on the agenda for LPM firms but how to address the biggest challenges and which ones to face first is a tough call finds Patrick Wingrove

More serious than in past yearsMuch more serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch less serious than in past years

51

14

8

3

24

More serious than in past yearsMuch more serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch less serious than in past years

How would you rate the challenges your firm faces in the next five to 10 years

More serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch more serious than in past yearsMuch less serious than in past years

58

17

6

0

19

More serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch more serious than in past yearsMuch less serious than in past years

How would you rate the challenges your firm faces in the next year to two years

What is the greatest hurdle to your firmrsquos growth or further success

What is the greatest hurdle to your firmrsquos growth or further success

LEGAL PRACTICE MANAGEMENT23

SEPTEMBER 2016LPM INSIGHTS

TIMES THEY ARE A CHANGINrsquo The overriding theme of the 2016 LPM conference was change ndash how firms can implement it the drivers behind it and the various blockers to it But the first step to change is gauging which factors will have the biggest impact on the legal market Just over half of legal management leaders we polled thought client pressures on cost like demanding fixed fees will have the biggest impact while just over a quarter thought it will be competitors attaining a market advantage using technology

How quickly do firms need to respond to these oncoming market pressures Well 86 of LPM conference delegates thought that change needs to happen in their firms within the next two to five years But 14 said that their firm doesnrsquot need to change significantly perhaps because theyrsquove beaten the rest to the punch their legal business is somehow immune to new pressures ndash or they have their heads in the sand

Legal has traditionally been resistant to change and itrsquos not surprising that some firms still are says Sean Stuttaford COO at Essex firm Thompson Smith and Puxon (TSP) and 2016 LPM conference delegate ldquoThere are still firms out there where partners donrsquot have computers on their desks ndash theyrsquore stuck in their ways and just point blank refuse to

52 26 5 12 5

develop their business for the futurerdquoBut legal management leaders willing to implement

change may still find it difficult as 60 of LPM conference delegates polled thought that lsquochange isnrsquot really understood at their firmrsquo

GROWING PAINSJust over a quarter of LPM conference delegates also thought that an inability to create change within their firm would be the greatest hurdle to the businessrsquos growth or further success ndash though Stuttaford at TSP suggests voters might have blamed the traditional partnership business model for the same reason

But acquiring high-quality staff was considered to be the greatest hurdle for growth or success by 36 of delegates Rebecca Patterson HR manager at Kent firm Thackray Williams and 2016 LPM conference delegate says that she agrees with this result ldquoOur firm has a particularly tough time finding quality support staff ndash we could perhaps stand to invest more in competency frameworks and performance management and training opportunities to aid recruitment and retentionrdquo

William Robins operations director at lsquodistributedrsquo firm Keystone Law and a 2016 LPM conference speaker says

12 36 27 13 12

Lack of fundsAcquiring high-quality staffInability to create change within the firmTechnologyThe traditional partnership business model

Out of these which factor is having the biggest impact on the SME legal market

Client pressures on cost (eg fixed fees)Technology creating advantage for competitorsConsolidationDifficulty in finding routes to growth (eg funding)Something else

What is the greatest hurdle to your firmrsquos growth or further success

LEGAL PRACTICE MANAGEMENT24

SEPTEMBER 2016LPM INSIGHTS

offering a more flexible remote or mobile working set-up for everyone in a firm is an excellent way to attract talent (Keystonersquos model of course is founded on remote working) Perhaps the majority of legal management leaders polled at the 2016 LPM conference agree since their firms have either adopted a flexible remote or mobile working set-up are planning to adopt one or are considering adopting one ndash though there are other advantages to remote working such as reducing overheads In any case the results indicate that the SME legal working landscape is becoming considerably more flexible

But remote working doesnrsquot work for everyone Mary Mocklow CEO at West Midlands firm Talbots Law and 2016 LPM conference delegate says that their high-street set-up wouldnrsquot allow it ldquoThe majority of our staff are client-facing and need to be present at the office ndash and while there are other staff at Talbots that might benefit from remote working you canrsquot have a policy for one and not for allrdquo

CYBER THREATSTechnology was clearly a significant concern for legal management leaders who attended the 2016 LPM conference Patterson at Thackray Williams says some firms have had a hard time finding software that caters to their needs as a business and an LPM conference poll seems to back this up just under half of legal management leaders polled at the conference thought project teams should write law firm software indicating a desire for cross-department input into its creation But the poll also indicates that legal software providers have to a large extent been meeting their clientsrsquo needs

The rising threat of cybercrime was also a clear concern for LPM conference delegates ndash 92 of SME legal management leaders said their firms have cyber risk on their management meeting agendas Stuttaford at TSP says ldquoItrsquos something firms need to be constantly aware of and take precautions against not just by purchasing good firewall and antivirus software but by educating staff about password discipline authentication processes and suchrdquo

32 18 14 33 3

Is cyber risk on your management meeting agenda

92

5 3

Yes No Dont know

Is your firm moving to a more flexible workingremote or mobile working set-up for everyone in it

YesNoConsidering itWe already do itDont know

LEGAL PRACTICE MANAGEMENT25

SEPTEMBER 2016LPM INSIGHTS

PRESSURES AND PRICINGClient pressures on cost was also a major concern for legal management leaders polled at the conference so it may not be surprising that just over half of them said 50 or more of their firmrsquos work is some form of fixed fee This doesnrsquot necessarily suggest that the other half arenrsquot open to the concept of fixed fee ndash Mocklow at Talbots points out that fixed fees work for certain types of work ldquoHigh-street firms like Talbots can benefit greatly from fixed fees which is why 75 of our work is fixed fee but itrsquos more difficult to apply to firms that specialise in something like admiralty lawrdquo

The industry seems to think that the value of service has been lost to the price obsession in some areas but not in others ndash and while pricing is clearly a vital issue for SME firms 88 of legal management leaders polled at the LPM conference thought that itrsquos lsquoone of a range of important factorsrsquo or lsquonot as important as other thingsrsquo Patterson at Thackray Williams says that maintaining a good relationship with clients is often more important than pricing though pricing can be a means to achieving client satisfaction ldquoIt also depends on the client ndash in something like conveyancing first-time buyers might be looking for fixed fees or the cheapest price but for commercial clients that may not be as important as reputation or relationshiprdquo

TREASURE MAPPINGLegal process mapping often used by lsquobig lawrsquo and making inroads into SME legal could potentially make SME firms a great deal more efficient and therefore more competitive Two-thirds of legal management leaders polled had heard of process mapping and 79 thought that it is relevant to the business of law Stuttaford at TSP says he agrees ldquoFirms should look at their processes learn from them and figure out how to improve those processes ndash this question really made us look at what TSP has done so far in terms of what legal processes wersquove mapped and whenrdquo

To sum up LPM conference delegates were aware of the challenges that face them but were mostly optimistic nonetheless This may be because they know they need to change and in spite of the fact that change isnrsquot really understood at their firms are planning to mend their ways to meet future market pressures ndash generally putting the client first while keeping talent and technology high on their agendas LPM

Are aware of this thing called legal process mapping

66

34

Has the value of service been lost to the price obsession

23

23

54

Yes No Depends on the service Dont know

Yes No

How important is price in winning business

8

4

67

21

CriticalMore important than almost all factorsIts one of a range of important factorsNot as important as other things such as relationshipsIts one of the less important things in reality

What is the greatest hurdle to your firmrsquos Are aware of this thing called legal process mapping

LEGAL PRACTICE MANAGEMENT27

SEPTEMBER 2016COLUMNSSPONSORED EDITORIAL

Welcome back LPM readers ndash the new school term has started summer is (pretty much) over and the UK is back in full throttle after the summer break And what a break itrsquos been at

File Queen HQ (wersquove taken the time to get our clients up and running with augustprojects as well as started our new Instagram feed filequeenadds)

With the start of the new learning year wersquore focused on the education of you lovely LPM readers ndash with our attention turning back to the General Data Protection Regulation You may remember that in our last LPM article we ran through the 12 steps to tackle the GDPR helped by the awesome people at the Information Commissionerrsquos Office ndash wersquove provided a link to their 12-step resource via our website wwwarchivestoragenetnewsgdpr

Over the next three columns wersquoll be taking these steps and breaking them down for you ndash starting with step one awareness The File Queen (myself) and the team at ADDS have been promoting this step as the most important for all legal practices

ldquoWhyrdquo we hear you holler Well this step is the all-important life raft that unites your practice and team members to help you in the GDPR fight for survival (dramatic I know)

Getting the team on board ndash this buy-in needs to include all ranks of staff ndash from the managing partners to your suppliers But how do you do this Well here are some File Queen tips for when we at ADDS are rolling out projects

Lunch and learn ndash with a register People love to eat and be social so get your legal business to book in a couple of lunch and learn sessions Donrsquot limit this to one date ndash you must run at least two or three so people have the option of which dates to attend Make sure you make a register for those that actually turn up (we all know a calendar acceptance doesnrsquot mean theyrsquoll actually appear) This will allow you to chase down the members of the team you need to get on board for the next one

Have some decent sandwiches nibbles and soft drinks and give the team an overview of the GDPR Run through the 12 steps and make sure you educate them on why everything is so important (make sure you mention the increased fines and audits) During this time let the team know that there are several steps along the way that yoursquoll need their help and support for and which you wonrsquot be able to achieve on your own Tell them that the businessrsquos reputation and brand is on the line and that you need everyone on board to lend a helping hand and spread the word

Another great File Queen tip at this stage is also to get some additional funding from the practice manager for a wine and quiz night at the end of the lunch and learn periods This can be part of your social gathering on a Friday straight after work ndash with some more nibbles and wine Assign people to teams and have a GDPR quiz The winning team gets an award and everyone has fun and learns at the same time Follow our twitter feed as wersquoll be tweeting some great questions to ask thefilequeen GDPRQUIZ

We know itrsquos a lot to organise but there are only four months left in 2016 and GDPR practices must be in place by 25 May 2018 And believe me when you have to roll out rather hard core legislation you have to make it fun and interactive to get people on board LPM

ABOUT

NATASHA RAWLEY THE FILE QUEEN

EDUCATING YOUR PROS

ADDSSaving firms from paper hellContact Natasha on0800 328 0272wwwarchivestoragenet

LEGAL PRACTICE MANAGEMENT28

SEPTEMBER 2016FEATURES

28

Patrick Wingrove talks to the founders of Proelium Law about their work providing legal advice in high-risk environments and conflict zones and the challenges of setting up shop in a new and risky area of law

Legal commandosProelium

Compared to the day-to-day lives of Proelium Law founders and partners Richard Stephens (above left) and Adrian Powell (centre) the average lawyer leads a pretty humdrum life Though UK-based the

firm has a strong international focus ndash Stephens and Powell regularly travel to provide legal and business advice to companies and individuals in high-risk professions or working in hazardous environments across the globe including conflict zones in Iraq Syria and Afghanistan Powell says that itrsquos a challenging but exciting area of law to be in and that ldquono two days are ever the samerdquo

The firm was established as an ABS in November 2015 allowing Powell and Stephens to operate as partners although Stephens isnrsquot a lawyer Powell qualified as a solicitor in 2004 after spending 11 years of his career in the British army and post-2006 worked on various high-risk projects around the world ndash giving him the inspiration for Proelium He says ldquoThe idea came to me in Baghdad in 2009 while working for a private security company as a legal adviser ndash I thought lsquoWhy isnrsquot there a firm doing thisrsquo But I soon realised that I needed someone on the ground who wasnrsquot a lawyer to help make it happenrdquo

That person was Stephens He previously served in the Royal Marines worked as a Whitehall-based strategic planner for the UK government and commanded a special operations regiment (which is why we couldnrsquot show you his face but itrsquos a nice issue of LPM) He now works primarily on the business development side of Proelium ldquoJoining Adrian who Irsquod previously worked with on projects around the

LAW FIRM PROFILE

LEGAL PRACTICE MANAGEMENT29

SEPTEMBER 2016FEATURES

world at a firm meant I could do fascinating and important work with the credibility that being a partner in a regulated business providesrdquo he says

Their work has certainly been interesting Proelium has cast its net far within the niche high-risk sector ndash advising UK-based service providers on the complexities of working in hostile environments conducting business and human rights due diligence and ensuring anti-money laundering counter terrorist-financing and anti-bribery compliance for companies intending to run in high-risk areas or conflict zones to name a few Recently theyrsquove also been working on developing capability for national intelligence organisations overseas ndash but for fear of being jailed for treason Stephens and Powell didnrsquot elaborate hellip

Powell says that the challenges companies face in these areas are numerous ldquoTherersquos a real technical knowledge in understanding how organisations physically work overseas These companies are good at what they do but that doesnrsquot necessarily translate into being business-savvy when it comes to operating in frontier markets ndash thatrsquos where Proelium adds valuerdquo For example after a client was recently exposed on an arms deal they were able to quickly discern liability and ensure that all necessary agencies and departments were appropriately informed

Powell and Stephens joke about how theyrsquore the number-one firm in their sector ndash admitting that to their knowledge theyrsquore the only firm that specialises in this area of law They added that itrsquos an untapped niche in which Proelium will be a pioneering force but which has also recently come onto the radar of a larger firm Theyrsquore alluding of course to Proeliumrsquos recent venture with Harrison Clark Rickerbys ndash a joining that combines Proeliumrsquos experience working in high-risk jurisdictions with the manpower and existing defence and security expertise of

HCR Powell says ldquoWhat they donrsquot have is our connections and our experience They like the idea of the sector because they see it as an interesting area and the partnership will allow us to offer a wealth of different legal services while letting us focus on what we do bestrdquo

As part of their ambitions for Proelium Powell and Stephens are keen to train a new generation of lawyers whorsquoll specialise in the high-risk sector ldquoWe have confidence in what the younger generation has to offer and we want them in our industry to continue our work in this relatively untapped areardquo says Powell Stephens adds that itrsquos also a matter of succession planning ldquoWe want the firm to operate long into the future but we donrsquot necessarily want to be running it ourselves for the next 20 yearsrdquo Proelium currently employs two interns as part of this commitment including University of Surrey law student Ruby Jamieson (pictured) She says ldquoWorking [at Proelium] has given me loads of insight already ndash itrsquos very niche

very new and Irsquove really enjoyed helping develop the business I feel that itrsquoll open a lot of doors when I graduaterdquo

In terms of expansion Proelium has recently opened a new office in the City of London Powell says that his home was originally the firmrsquos practising address but a large portion of their client-base is in London ldquoand we couldnrsquot keep having our meetings in coffee shopsrdquo

But Powell and Stephens are firm believers in the concept of remote working which works particularly well for their business

ldquoMost of our clients are either in London or outside the EU so Irsquom always away but all my phone calls are redirected from the new office to my mobile so I can keep in touch with clients whether Irsquom in Dubai or Baghdadrdquo says Stephens Powell adds that he feels remote working has the added benefit of keeping staff happy by letting them work from home which he says certainly makes him more productive as a fee earner

Proelium isnrsquot looking to expand into areas it has no interest in like family law but theyrsquore taking a keen interest in the emerging area of cyber law and are considering taking steps into that world ldquoLike high-risk law no onersquos really wrapped their arms around cyber law yet Therersquos cyber law in the US but it doesnrsquot exist per se in the UK except in terms of data protectionrdquo

When asked what advice they could give to SME firms based on their unique experiences in their sector Powell and Stephens said firms should know the areas of law they practise inside and out Powell says ldquoWersquore concerned with being experts in our field ndash a lot of our clients have peoplersquos lives in their hands and are not in the business of nonsense which is why they come to us We give sound researched legal advice based on experience and if we donrsquot know something we send the client to someone who doesrdquo LPM

ldquoCompanies are good at what they do but that doesnrsquot necessarily translate into being business-savvy when it comes to operating in frontier markets ndash thatrsquos where Proelium adds valuerdquo

Proelium

Two fee earners four total staff

Offices City of London Wirral Cheltenham

Specialisms International criminal commercial and conflict law due diligence sensitive investigations

LPM FACT FILE

ldquod2u is the UKrsquos number one outsourced transcription service for medical and legal professionals and highly competitive all over the world We pride ourselves on saving our clients time and money as well as offering state-of-the-art security and a first-rate servicerdquo Daryl Leigh CEO dictate2us

LPM magazine has agreed a special deal for its readers with dictate2us ndash 5 off your monthly

transcription bill for one year if you sign up through the dedicated LPM link or call and quote LPM2016 when signing up You can trial the service for free before committing

CUT COSTS INCREASE EFFICIENCYAll firms could benefit from outsourcing transcription to dictate2us ndash but even more so with our LPM deal 5 off your first year

wwwdictate2uscomlpm

Use d2u and enjoy the benefits ofbull Fast turnaround timesbull Secure and confidential servicebull Secetarial cost reductions of up to 60bull Guaranteed 985 minimum accuracybull iPhone Android and Blackberry apps with one-hour turnaroundbull 100 output - only pay for the time you talkbull Free no obligation trial

This special LPM magazine reader deal only relates to customers that execute an agreement for a minimum term of 12 months with a minimum monthly commitment of 500 minutes LPM magazine sought two law firm references for dictate2us to verify its claims for quality and delivery The 5 deal only applies to the first paying year the customer is with dictate2us LPM magazine is not responsible or liable in any way for work done by dictate2us and is an advertising referrer only

d u2 dic t a t e 2 u s

SPECIAL READER OFFER

The d2u Transcriber app is free to download from Apple and Android app stores and BlackBerry App World

OFFER 5 OFF

YOUR FIRMrsquoS FIRST YEAR OF

TRANSCRIPTIONSIGN UP ONLINE

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WHEN CALLING

LPMLEGAL PRACTICE MANAGEMENT

LPMLEGAL PRACTICE MANAGEMENT

DictateBRIEFINGv2indd 1 28042016 1336

LEGAL PRACTICE MANAGEMENT31

SEPTEMBER 2016FEATURES

Patrick Wingrove speaks to management leaders from SME and top 100 law firms that have recently achieved significant growth to find out how to go from acorn to oak tree

FROM MINNOW TO

For many SME firms growth is the goal ndash but it doesnrsquot have to happen in the ways that many have scaled in the past The era of organic slow quiet steady partnership development over decades is

increasingly at odds with a fast-paced digital world Strategies for growth in the legal market are now closer than ever to the rest of the business world ndash and any size firm can learn how to do it

Big or small there are similar tools in the box for making growth happen and similar challenges Lessons abound but some of the best can be taken from those firms not far outside the famous lsquotop 100rsquo legal businesses in the land ndash those that have already grown up and now have the top tier in their sights There are also lessons to draw from smaller but rapidly scaling law firms

There are many growth strategies for organic and acquisitive growth ndash and no easy answer for which is right for your firm To shine a light on the subject wersquove spoken both to SME and top 100 firms about growth and how to do it (and importantly how not to do it)

MAMMOTH

LEGAL PRACTICE MANAGEMENT32

SEPTEMBER 2016FEATURES

MODELS OF GROWTH According to the Lawyer the two fastest growing firms in the top 200 this year are Midlands-based Knights and lsquodistributedrsquo firm Keystone Law ndash currently placed 119 and 122 in the 2015 UK 200 rankings but whose revenue will now put them well inside the 2016 top 100 (due for release October 2016) Both attribute their growth to non-traditional business models ndash and very different non-traditional models at that

Knights corporatised in 2014 to remove the barriers from its decision making processes which CEO David Beech says has been the key to its growth ldquoEquity partnerships donrsquot grow particularly quickly because itrsquos hard to achieve consensus and make decisions that enable fundamental or rapid growth among equity partnersrdquo

Knights acquired Oxford-based Darbys earlier this year ndash a move largely behind the revenue increase that will put them in the top 100 ndash and completed the transition inside three months which Beech says would have been next to impossible under their old business structure ldquoNot only was a quick turnaround good for the books it saved significant time and money that could be invested elsewhere in the businessrdquo he says

Top 100 firm Simpson Millar is one step

ahead of Knights The firm broke the glass ceiling to become a top 100 firm in 2015 and like Knights the firm attributes its growing success to corporatisation ndash but in a different manner

It sought to be and was eventually acquired by PLC Fairpoint Group in 2014 Simpson Millar continues to run as an LLP under the same management team and existing trading brands but as a business unit within Fairpoint

Managing partner Peter Watson says that one of the key reasons to pursue this particular growth strategy was to provide an injection of capital for MampA ldquoWe completed the sizeable acquisition of Colemans last year for example which we were only able to do with considerable investment from Fairpointrdquo

Being part of a PLC has also given the firm access to strong MampA and project management capabilities ldquoAcquiring Colemans doubled the business overnight ndash for something like that you need strong MampA experience and access to that team within Fairpoint was crucial in getting the deal across the linerdquo says Watson Simpson Millar also built a strong digital strategy launched new products and focused on pricing ldquoCall it fixed fees or packaged fees the point of it was to say to consumers

Square One Law

Revenue pound5m

31 fee earners 53 total staff

Offices Newcastle-upon-Tyne

Specialisms Commercial corporate property employment EU and competition law finance litigation private client

LPM FACT FILE

Knights

Revenue pound40m (year end 2017)

375 fee earners 450 total staff

Offices Chester Cheltenham Newcastle-under-Lyme Derby Oxford Hale

Specialisms Full service firm

LPM FACT FILE

LEGAL PRACTICE MANAGEMENT33

SEPTEMBER 2016FEATURES

lsquoWith us you know exactly what yoursquoll get and how much itrsquoll costrsquordquo

PEOPLE PLEASERSThe ability to implement change has also been an important part of delivering a growth strategy This isnrsquot necessarily surprising ndash polling at the 2016 Legal Practice Management conference showed that legal business managers thought it was one of the greatest hurdles to a firmrsquos growth or success only topped by acquiring high-quality staff In Knightsrsquo case the two challenges were addressed together Beech says Knightsrsquo corporate rather than partnership structure also allows it to recruit talented people without having to deal with the inherent politics of an equity partnership

ldquoAcquiring the best talent has been a central part of our growth strategy ndash if a candidate can help the business through expertise or client following we can just recruit themrdquo he added

But a successful growth strategy incorporating talent isnrsquot just about recruiting quickly as we analysed in the July 2016 issue of LPM ndash itrsquos about recruiting well Firms also need to make themselves an attractive prospect for legal talent in order to grow

William Robins operations director at Keystone Law says his firmrsquos lsquodispersedrsquo model allows it to do that by offering new fee earners the chance to work remotely with less supervision ldquoWersquore typically hiring about a lawyer a week ndash bringing their expertise fee-earning capability and client following with them ndash and that is the core part of our growth strategyrdquo The firm has buttressed its recruitment capability by hiring a director of recruitment to focus almost entirely on lawyer enrolment (recruiting talent to recruit talent ndash neat)

Though the distributed model may not be for everyone says Robins implementing some form of flexible mobile or remote working should be part of any firmrsquos growth strategy because it allows firms to increase their fee-earning capability without accruing fixed overheads such as office premises

And there are other ways to be talent-attractive As a core part of its growth strategy Newcastle-based firm Square One Law ndash which achieved 30 growth in the

last financial year ndash has pledged to create a supportive and inspirational team environment offering high-calibre work to attract the best talent Ian Gilthorpe senior partner at Square One says ldquoGood people want to be inspired to be valued for what they do and feel as though theyrsquore making a contribution The key is to engage with all your staff to facilitate a culture where staff feel happy at work work for each other trust each other and ensure that they see the value in what they do ndash if you do that more talent will comerdquo

He added that itrsquos important for

recruitment to convey staff satisfaction to the outside world which Square One has achieved by including staff video-testimonials on its website

But recruiting is only half of an effective people strategy ndash the other is retention Simpson Millar has attempted to create an environment that its talented staff wonrsquot want to leave Says Watson ldquoToo many firms worry about what will happen if their rainmaker goes somewhere else and takes clients with them ndash so they put the shackles on make them feel unhappy and make it so that they canrsquot realise their full potentialrdquo Creating such an environment makes firms an attractive target for lateral hires when they should be building a place people want to join

PRACTICE AREASSME legal businesses donrsquot necessarily need to change their business models completely to achieve the same growth as

Thorntons

Revenue pound20m

209 fee earners 430 total staff

Offices Dundee Edinburgh St Andrews Perth Cupcar Kirkcaldy Anstruther Arbroath Montrose Forfar

Specialisms Full service firm

Keystone

Revenue pound202m

198 fee earners 230 total staff

Offices London Bristol Isle of Man Australia

Specialisms Corporate and commercial dispute resolution property

LPM FACT FILE

LPM FACT FILE

Equity partnerships donrsquot grow particularly quickly because itrsquos hard to achieve consensus and make decisions that enable fundamental or rapid growth among equity partners David Beech CEO Knights

Simpson Millar

Revenue pound316m

322 fee earners 539 total staff

Offices Birmingham Bristol Cardiff Cheadle Hulme Gateshead Kingston-upon-Thames Lancaster Leeds Park Place Leeds St Pauls Street (head office) London Manchester Newcastle

Specialisms Full service firm

LPM FACT FILE

LEGAL PRACTICE MANAGEMENT34

SEPTEMBER 2016FEATURES

our examples but removing blockers from decision-making making themselves more attractive to talent and finding the right funding for growth are increasingly important and the partnership structure may not enable it

But of course that means asking some turkeys to vote in a Yuletide election Fortunately there are other ways to achieve impressive growth mainly investment andor expansion into new geographic or practice areas

Watson says that Simpson Millar wouldnrsquot have been an attractive prospect to Fairpoint had the firm not spent time growing organically by expanding into new areas of law

ldquoWe went from being a predominantly trade union PI firm to having a broad base of 16 types of work ndash with strong heads in charge of each committed to driving growth in their departments ndash which gave us a large boost in revenuerdquo The firm achieved this through small acquisitions of other firms that had expertise in particularly lucrative areas of law

But firms shouldnrsquot just look at expanding in lucrative areas ndash they should focus on areas where their reputations deliver an advantage Scotlandrsquos Thorntons for example ndash which last year leapt from 134 to 108 in the 2015 UK 200 rankings ndash invested in six departments as part of its growth strategy

Thorntons joint managing partner Scott Milne says ldquoWe didnrsquot exclude other areas but we saw that these areas were profitable and that more importantly we had considerable expertise in them ndash we also considered that these are areas that are unlikely to be affected by future economic downturnrdquo This included investing in niche areas of law where the firm has a geographic competitive advantage ldquoWersquore lucky to be surrounded by some of the best farmland in the UK ndash wersquore well known for our expertise in rural business law which is why we invested heavily in itrdquo

ORGANIC V ACQUISITIONIn several ways choosing an effective growth strategy very much boils down to MampA versus organic growth ndash every business model talent or area expansion strategy appears to revolve around one or both But which is the best to achieve the kind of growth thatrsquoll propel firms to a lsquohockey stickrsquo on their revenue forecasts The short answer is it depends on whatrsquos best for a firm at a given time It either

needs to fit the firm ndash or the firm needs to change to fit the goal

Beech says that acquisition has been excellent for Knights because itrsquos a fast and effective form of expansion ndash the acquisition of Darbys more than doubled its revenue But MampA poses a significant challenge to finding firms with the right cultural fit

ldquoFirms need to establish a single culture in order to implement growth ndash everyone needs to be working towards the same goalrdquo He added that when a firm completes a merger or acquisition that firm has to be integrated from day one which is much more difficult if it has a significantly different culture Knights is planning to continue recruiting and complete more acquisitions in the next year to maintain the growth curve

Of course the big problem with acquisition is money Robins at Keystone says his firm lies at the opposite end of this

INFORMATION IS EMPOWERING

Lemington Spa-based firm Wright Hassall has a specific goal of breaking into the top 100 and as part of its growth strategy expanded into areas of the UK where its expertise is highly sought after ndash using customer relationship management in the background to underpin the firmrsquos activities in specific areas Martyn Wells IT director at the firm says ldquoWersquove zoomed in on specific industry sectors that we know are performing well in the Midlands sectors where we have a superb reputationrdquo Expanding geographically as Wells outlines needs data to get right Thorntons for example identified various lsquomicro-marketsrsquo in Scotland close to its base of operations ldquoWe acquired a firm in St Andrews because itrsquos like a micro-economy (or micro-market) that doesnrsquot seem to be affected by price drops in the residential market elsewhererdquo says Thorntons joint managing partner Scott Milne Knights has another take on the geographic targeting idea ndash it intends to stay out of the large cities (London Manchester Leeds for example) and expand into areas where there is little competition As David Beech CEO at Knights explains ldquoLast September we acquired a small team in Chester of about 11 lawyers and now thatrsquos expanded to just over 70 ndash and the main reason wersquove been able to do that is because there isnrsquot a lot of competition thererdquoUltimately this all comes down to research finding out what to invest in or where to expand and perhaps most importantly finding out what clients want

LEGAL PRACTICE MANAGEMENT35

SEPTEMBER 2016FEATURES

spectrum to the way Knights has grown emphasising organic growth finding innovative means to attract talent using technology to drive efficiency and branching out into new areas of law or new markets to achieve significant growth

Square One Law also espouses the organic route ndash believing that firms with growth in mind should focus on ensuring their external brand reflects the businessrsquos internal culture and behaviours of its team creating lsquosynergyrsquo between the business and its clients

Gilthorpe says ldquoMergers ndash and there is no such thing as a true merger ndash and acquisitions can be a distraction as you look to create a new culture and separate the wheat from the chaff and this can soak up a lot of energy that would otherwise be put to use in driving the progression of the business and the focus on client servicerdquo

The best option for some firms may be a

calculated combination of MampA and organic Thorntons for example having made several acquisitions is now focusing on organic growth moving away from geographical expansion and towards developing locations and its brand

Watson at Simpson Millar sums the mixed approach up thus ldquoItrsquos a mixture Acquisition is still very much a part of the mix but in parallel to that itrsquos important to demonstrate that yoursquore developing ongoing work rather than being driven solely by acquisitionrdquo

There are clearly many different ways to achieve healthy and assertive growth though there are no easy answers as to which way is right for your firm But it is clear that growth doesnrsquot have to happen in the ways many have previously achieved it ndash innovation and lateral thinking are the means of achieving significant growth (which might one day propel you into the top 100 you never know) LPM

LEGAL PRACTICE MANAGEMENT36

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

INDUSTRY VIEWS

36LEGAL PRACTICE MANAGEMENT

Legal is becoming an ever more digital industry giving firms the chance to become more efficient flexible agile and collaborative

INDUSTRY VIEWS INDEX

ONLINEOFFICES

36

SPONSORED EDITORIAL

INDUSTRY VIEWS

37 INTERVIEW

Paperless processLinetimersquos Tony Klejnow explains the benefits of using matter management software for law firms and their clients

39 INTERVIEW

Virtual expansionNigel Redwood Nasstarrsquos CEO talks about the advantages of having a managed flexible IT infrastructure

LEGAL PRACTICE MANAGEMENT37

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT37

Competition and price pressures and an increasingly digital client base are all significant drivers for law firms to become paperless

businesses Tony Klejnow Linetimersquos managing director says firms could achieve competitive advantage by introducing paperless solutions across their businesses ndash but a particular lsquoeasy winrsquo area is matter management

ldquoFee earners are required to keep detailed records of their cases but the amount of time and money they waste physically printing filing looking for collaborating on and updating files is alarmingrdquo says Klejnow Law firms have traditionally been reluctant to adopt paperless

workflow solutions he adds because workflow doesnrsquot apply to 99 of fee earnersrsquo work ldquoBut if they adopted paperless solutions in their back office processes they could reduce costs without affecting client service boost productivity and promote collaboration ndash making them more efficient flexible and cost effective and making them more competitive in an ever-changing legal marketrdquo

MATTER MATTERSDocument and matter management tools ndash like those in Linetimersquos legal software product Liberate ndash electronically store and organise all case documentation in an online database Klejnow says that there are two immediate benefits of paperless matter

PAPERLESS PROCESS

Tony Klejnow managing director at Linetime talks to LPM about the benefits of the paperless office ndash starting with filing and back office processes

INDUSTRY VIEWS

Linetime is a specialist provider of Microsoft-based practice and case management solutions Clients include mid-tier law firms and in-house legal departmentswwwlinetimecouk

ABOUT THE SPONSOR

SPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT38

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT 38

management The first is reducing paper and storage costs

ldquoIf case documentation is electronically stored once a case is finished you no longer have a five-inches-thick file that has to be stored for six years ndash which has to reside somewhere and costs firms time space and moneyrdquo The second is eliminating filing time ndash for example instead of printing and filing emails and attachments fee earners drag and drop emails directly from Outlook into the database ldquoand attachments are automatically stripped from emails and appropriately filedrdquo says Klejnow

And Klejnow says paperless filing systems donrsquot just facilitate efficiency this way ndash they also improve general process efficiency by facilitating collaboration between fee earners Solicitors can use document and matter management to view and work on matters at the same time a difficult if not impossible prospect when working with paper files Klejnow says ldquoWithout document management legal professionals work in silos but with it they immediately share datardquo He adds that Liberate has an additional collaboration tool to help further improve collaborative efficiency in firms ldquoIf I choose to lsquocollaboratersquo a document with you on Liberate Outlook will prompt you to review that document by simply acknowledging the notificationrdquo

In this respect moving to become a paperless business provides greater flexibility for fee earners who can collaborate with colleagues working remotely or in different offices Klejnow says ldquoPaper files can only reside in one location but electronic files can be accessed from any office and when working from home or with clientsrdquo On the other side of the coin having digital files maintains a greater level of productivity in a law firm office ldquoIf your colleague is absent from the office you can easily find documents that you might have otherwise wasted a significant portion of your day looking forrdquo he adds

Improved external collaboration is also a benefit that firms can reap from paperless matter management With an electronic system you can go into a case history bundle documents into one PDF file and quickly submit that to the third party improving collaboration between fee earners and clients who want to do everything online This has the added benefit of improving accuracy and facilitating greater efficiency by involving clients in the process ldquoGood matter management software should also let you push e-forms to clients to be filled in and that information is automatically transferred straight to the online database ndash which saves fee earners

time and is a more accurate because the information doesnrsquot have to be constantly re-enteredrdquo says Klejnow

This extra level of collaboration within legal businesses that hasnrsquot been possible until now has long been needed because it improves efficiency and productivity which makes the business more profitable and competitive Klejnow adds that what firms save by adopting matter management they should reinvest in becoming fully paperless digital businesses

ldquoCase management solutions can improve efficiency to an even greater extent and keep firms competitive in the age of the alternative business structuresrdquo

VISIBLE COMPLIANCEIn response to firms reluctant to adopt paperless technologies like document and matter management for fear of losing delicate information to cybercriminals Klejnow says those systems provide an additional level of security ldquoTaking data and attachments out of Outlook and storing them on a database is much more secure than leaving them on your hard drive If you leave

your laptop on a train for example all your important data is safely stored on a server and not instantly accessible by opportunist criminalsrdquo

Document and matter management also offers a greater level of security in fee earner and client communications ldquoIf I want you to check that the data we have for you is accurate Liberate will

direct you to a page holding your data and at the same time it will push out an SMS text with a pin code to your phone Unless you input the code you canrsquot get to the web page ndash which means if one of your solicitors accidentally sends an email to the wrong person or itrsquos intercepted it doesnrsquot matter The data stays safe ndash this level of security is crucial in this age of cybercrimerdquo

These security features clearly have significant benefits for compliance which is important in a market increasingly dictated by regulation including the relatively new General Data Protection Regulation says Klejnow

ldquoCompliance officers need to be seen by regulators to have monitored and reviewed everything thatrsquos happened in their firm which is considerably easier with a paperless system Liberate has lsquoversion controlrsquo which allows compliance officers to keep tabs on every change made to a document as well as a compliance module which lets them view whatrsquos happening on a case (to ensure that money laundering checks have been carried out and so on) and records the fact that yoursquove reviewed thisrdquo LPM

Without document management legal professionals work in silos but with it they immediately share data

INTERVIEW

LEGAL PRACTICE MANAGEMENT39

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LPM readers may already know the Nasstar Group ndash but by a different name Nasstar was launched by regular LPM-contributor e-knownet to consolidate four discrete hosted

managed IT businesses (including e-knownet) after a period of significant acquisition Nigel Redwood chief executive officer at Nasstar says merger and acquisition and consolidating brands is challenging but having a flexible hosted IT infrastructure makes the process significantly easier

ldquoManaged IT services are enormously beneficial for firms that are expanding or consolidating particularly after MampA in terms of time and productivity cost savings and flexibilityrdquo He adds that by just having managed desktops firms can attain competitive advantage by reducing overheads and becoming more flexible and agile

Nasstar has experience helping SME firms with their IT systems after MampA and knows what problems to look out for creating unity among staff used to using different systems and processes the cost and time it takes to expand an IT infrastructure and the geographic distance between new offices

Redwood says that MampA can be an excellent way for legal businesses to expand into new sectors but that consolidating new departments using different IT systems and processes is challenging

ldquoOur acquisitions for example introduced new sector focuses for us in the SME legal market ndash wersquove consolidated these into a wider service base under Nasstar and facilitated unity among staff using virtual IT solutions

rdquoVirtual IT solutions help facilitate unity across the business by providing a level of consistency in an IT infrastructure Everyone immediately uses the same applications on the same versions from wherever theyrsquore working creating unity faster collaboration across teams and effective information sharingrdquo Hosted IT infrastructures are also continually updated giving staff instant access to new updates applications and technologies as they become available

The next significant challenge firms face after MampA is expanding their IT infrastructure to accommodate an influx of new staff ndash but Redwood says virtual IT solutions let firms expand their IT infrastructure at the flick of a switch

ldquoWith virtual IT firms arenrsquot held back by the size of their servers or the amount of computer power theyrsquove got ndash they simply call their IT provider and ask for an upgrade when previously theyrsquod have been

subject to lengthy and costly IT upgradesrdquo Virtual IT solutions are also easy to budget for

Redwood says ldquoYoursquore not going to be surprised by an increased fixed asset expenditure ndash services like those offered by Nasstar are an operational cost and fixed per user per month through a scalable cost modelrdquo

Geographic distance inhibiting collaboration between merged offices is also a key consideration for firms after MampA but virtual IT solutions solve this problem Redwood says a virtual IT infrastructure can minimise travel through the use of hosted virtual meeting rooms and video technology Staff can use this technology from virtually anywhere which is why it also lends itself well to remote flexible or mobile working set-ups

VIRTUAL WORKPLACERemote working is becoming an increasingly present feature of the legal landscape because of its cost saving and recruitment and retention advantages ndash the majority of firms at the LPM conference 2016 were moving towards a flexible remote or mobile working set-up or already had one

Redwood says virtual IT solutions better enable staff who work remotely ldquoHosted managed desktop solutions for example let staff work with the same applications from any device in the world safely and securelyrdquo

But remote working isnrsquot only about enabling the current workforce itrsquos about attracting future talent Redwood says that millennials donrsquot necessarily want to work as their predecessors did ndash they expect greater flexibility in the workplace which at one level can be achieved by remote working facilitated by a managed desktop

ldquoAnd itrsquos not only about attracting millennialsrdquo he says ldquoSME firms with flexible working set-ups are becoming more attractive to experienced legal talent who may be frustrated by the rigidity of their firmrdquo As a firm expands its workforce in this manner firms with virtual IT solutions reap the lsquodoublersquo cost saving benefits of not having to expand their premises or IT infrastructure accordingly

Some firms are resistant to remote working based on hosted IT services believing they arenrsquot secure ndash but Redwood says that argument ldquocan be put to bedrdquo

ldquoFor an in-house IT team to have the level of security that an organisation like ours can deliver is near impossible financially as well as in terms of the

VIRTUALSANITYNigel Redwood CEO at Nasstar talks to LPM about how managed IT can help SME firms achieve competitive advantage by making them more agile and flexible

LEGAL PRACTICE MANAGEMENT40

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

INTERVIEW

level of systems and technologies they deployrdquo Cybercrime is of course a scary and constantly evolving threat but Redwood points out that virtual IT systems have dedicated teams monitoring these threats evolving cyber defences and changing systems accordingly

ldquoThis capability not only makes [firms] a lot more secure but gives peace of mind in terms of compliancerdquo

ONLINE ADVANTAGE Redwood says virtual IT infrastructures donrsquot just pertain to lsquobig lawrsquo but to SME firms as well ndash perhaps more so

ldquoVirtual IT systems are a way for SME firms to stay competitive against their larger

counterparts and ABSs ndash it gives them a greater ability to expand it lets them adopt more flexible and agile models and is easy to budget forrdquo Firms can also expect virtual IT solutions to enable better alignment of IT resources to business needs enhanced usability with anywhere anytime access and in-built business continuity

But the greatest advantage virtual IT offers SME firms over big law is agility Redwood says ldquoBig IT departments in firms can be slow to react cumbersome and held back by the limitations of hardware infrastructure and security issues ndash all of that is removed with a solution like ours and the customer has access to fast-moving agile ITrdquo LPM

ABOUT THE SPONSOR

Nasstar is a provider of managed IT services and tailor-made cloud hosted solutions ndash delivering innovative secure and agile IT to help clients accomplish their business objectiveswwwnasstarcom

Page 19: LPM September 2016

LEGAL PRACTICE MANAGEMENT20

SEPTEMBER 2016LPM INSIGHTS

ALL CHANGE

22WHATrsquoS NEXT We analyse the 2016 LPM conference polling data

2 1 COMMENT Accesspointrsquos Richard Roebuck on legalrsquos increasing digital dangers

Change and transformation are words that strike fear into the most hardened of legal management hearts because they are hard to do and even

harder to make stick But change must happen inside todayrsquos SME law firms to make sure they stay in business in tomorrowrsquos world

At this yearrsquos Legal Practice Management conference in London we polled our audience of law firm management delegates on a range of topics Some questions wersquove been asking since our first LPM conference back in the misty era of 2012 Much has changed in the world since then (new UK governments drones are now lsquoa thingrsquo Donald Trump) but legal not so much The rise of the ABS has been slow (though impactful) and the recession has for many businesses faded into a distant memory compared to the Brexit debate

But SME law firms rightly smell a real need for change in the wind ndash and perhaps though they seem to find it hard to name that change the clues are legion Letrsquos find some

LPM London 2016 delegates named the greatest hurdles to their firmsrsquo growth or further success as lsquoacquiring high-quality staffrsquo and the lsquoinability to create change within the firmrsquo Might the solution to one lie in the other Great talent wants to flock to fresh and vigorous businesses and younger legal eagles are increasingly shy of throwing their lots in with the fusty world of partnership Law firm leaders must look at how their businesses are run and who runs them and how people work if they are to attract great people ndash and in doing so they will create the change they seek

Herersquos another 52 of delegates named lsquoclient pressures on costrsquo the factor thatrsquos having the biggest impact on the SME legal market ndash but when asked how important price is when winning business 67 said itrsquos just lsquoone of a range of important factorsrsquo while 21 said itrsquos lsquonot as important as other things such as relationshipsrsquo This is a disparity I canrsquot quite understand but it doesnrsquot sound like the SME legal market truly gets the shift thatrsquos happening on the client side and how much change needs to happen inside firms to meet this challenge

Read on and come to your own conclusions but I think the clues are now becoming obvious I hope your firm sees them too LPM

Rupert Collins-White editor-in-chiefLPMmag | rupertwlsncouk

You donrsquot as the song goes need to be a weatherman to know which way the wind is blowing in the legal market ndash but just because the clues are there doesnrsquot mean you can be complacent about acting on them

CONTENTS

FEATURES

LEGAL PRACTICE MANAGEMENT21

SEPTEMBER 2016LPM INSIGHTS

MORE TECHMORE SECURITY

INTRODUCTION TO THE RESEARCH FROM OUR SPONSOR RICHARD ROEBUCK MANAGING DIRECTOR ACCESSPOINT

After a recent period of uncertainty it would now seem that most firms are confident about their future especially in light of Brexit Whatrsquos also certain is

that most firms are very conscious that to compete they will need to change and adapt themselves for the challenges ahead

With growing concerns about the lack of high-quality people available and what appears to be a reliance on quality individuals driving more lucrative fee-earning work is it time for a gear change

Perhaps the dawn of high-volume low-margin fixed fee work which many firms feared has now arrived As always with change there are challenges to be faced but for those clever early adopters there lies opportunity Making light of the more process-driven tasks and finding more effective efficient ways of completion to deliver client-facing benefits seems key to the wider future of the fixed fee legal landscape

With the growing acceptance of cloud technology and the increasing introduction of new software applications and solutions the legal world has moved on at an improved pace this past couple of years And the world is now clearly keen for more ndash to satisfy its desire for a more accessible and mobile working environment What is key for this trend is that the lsquoquality of the deliverablersquo has an ongoing programme of improvement that benefits both the firm and its clients

As progress pulls us forward there will always be elements arrayed against us Alongside the opportunities hiding in the polling from LPM this year therersquos also a sense of fear and concern around possibly the biggest threat to risk and security there is right now ndash the dark byproduct of technological success cybercrime

Cybercrime is fast growing with ever more complex attacks making headlines It is now one of the most common criminal offences in the UK An increasing number of individuals are exploiting the speed and anonymity of the internet to commit a wide range of criminal activities having no conscience and knowing no borders

It isnrsquot our fault websites get hacked but poor internet safety habits can put us at risk Reusing passwords or using weak passwords make us easy targets for identity theft Remembering multiple passwords can be a pain but there are web services and associated applications that can help such as two factor authentication quality mail management systems URL threat protection and mail encryption

For many firms the biggest threats tend to be by way of the ever-open door into our networks and devices ndash email

Our eagerness to respond almost instantly to emails throughout what will be for most an already pressured day is perhaps the dominant daily activity to foster an unwanted lapse in security In the past 18 months alone I have seen three firms that were truly caught out ndash some with the potential for significant financial penalty by opening email attachments The most common lsquogotcharsquo is an email that appears to have come from the office scanning platform whereby the email address has been cleverly spoofed to appear legitimate (for example downstairscopiermyfirmdomaincouk) There are so many existing and newly circulating threats of this calibre and type that even the most aggressive of filtering systems struggle to keep up

Do you know the name(s) of your copiers and the associated email addresses Do you stop to think before opening the innocuous Word attachment ldquoDoesnrsquot our scanner usually send PDF files Why has a covering note not been included with the attachmentrdquo Stop think and call for advice

Another infamous scam is the spoofing of email addresses of key people within your firm ndash for example an email to the head of accounts appears to be from the senior partner ldquoPlease send pound17000 to account X at your earliest convenience and confirm once processedrdquo it says Stop ndash is this your agreed process

As the demand grows and we extend our reach out into the online world so cybercrime advances ever closer seeking unauthorised access through our front door Quite clearly online is the future but we need to embrace it with the necessary skill sets and processes in place for our convenience wellbeing and prosperity LPM

There are so many existing and newly circulating threats of this calibre and type that even the most aggressive of filtering systems struggle to keep up

Accesspoint are independent legal IT specialists who consult on a variety of information technology-related issues offering the best in IT solutions to help firms work more effectively

Contact Richard and the team on 0203 189 2645wwwtheaccesspointcouk

LEGAL PRACTICE MANAGEMENT22

SEPTEMBER 2016LPM INSIGHTS

SME law firms are in a battle for survival Whether they know it or not they have huge challenges to face in the next few years ndash around succession planning technology replacing lawyers and being

used by competitors to attain a competitive edge and catering to clients who increasingly want cost predictability transparency and availability

These market pressures were addressed at the LPM conference in May 2016 which was attended by over 100 delegates all SME legal management leaders The delegates were polled on the day about what they thought of the pressures facing them and how theyrsquore planning to overcome them ndash and their answers provide valuable insight into the SME legal market

The polling results show that LPM conference delegates were aware of the severity of the challenges they face Three-quarters of legal management leaders we polled at the 2016 LPM conference thought that the challenges theyrsquoll face in the next five to 10 years will be lsquomorersquo or lsquomuch morersquo serious than in past years And 58 of delegates thought that the challenges in the next year to two years will be lsquomore serious than in past yearsrsquo

How they will face these challenges depends at least partly on attitude ndash whether they believe they can win or will eventually lose the war Fortunately most LPM conference delegates were optimistic about their firmsrsquo futures - 81 were either lsquocautiouslyrsquo or lsquoveryrsquo optimistic about their place in the legal market of the future

This doesnrsquot necessarily suggest that theyrsquore confident in the market overall particularly after the market instability brought by Brexit Legal management leaders might believe their firm is the only one thatrsquoll survive due to expertise in a particular area or niche In any case it indicates market confidence and a confidence in the ability of their firm to compete and succeed

But is this optimism misplaced in a market where the future is increasingly uncertain and competitive Are firms really ready for change on a huge scale as their confidence might suggest What are the issues currently keeping SME legal leaders awake at night

In this report LPM shines a light on the SME legal market through the eyes of our legal management leader audience ndash those driving their firms through an uncertain new world

WHATrsquoS NEXTChange is on the agenda for LPM firms but how to address the biggest challenges and which ones to face first is a tough call finds Patrick Wingrove

More serious than in past yearsMuch more serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch less serious than in past years

51

14

8

3

24

More serious than in past yearsMuch more serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch less serious than in past years

How would you rate the challenges your firm faces in the next five to 10 years

More serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch more serious than in past yearsMuch less serious than in past years

58

17

6

0

19

More serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch more serious than in past yearsMuch less serious than in past years

How would you rate the challenges your firm faces in the next year to two years

What is the greatest hurdle to your firmrsquos growth or further success

What is the greatest hurdle to your firmrsquos growth or further success

LEGAL PRACTICE MANAGEMENT23

SEPTEMBER 2016LPM INSIGHTS

TIMES THEY ARE A CHANGINrsquo The overriding theme of the 2016 LPM conference was change ndash how firms can implement it the drivers behind it and the various blockers to it But the first step to change is gauging which factors will have the biggest impact on the legal market Just over half of legal management leaders we polled thought client pressures on cost like demanding fixed fees will have the biggest impact while just over a quarter thought it will be competitors attaining a market advantage using technology

How quickly do firms need to respond to these oncoming market pressures Well 86 of LPM conference delegates thought that change needs to happen in their firms within the next two to five years But 14 said that their firm doesnrsquot need to change significantly perhaps because theyrsquove beaten the rest to the punch their legal business is somehow immune to new pressures ndash or they have their heads in the sand

Legal has traditionally been resistant to change and itrsquos not surprising that some firms still are says Sean Stuttaford COO at Essex firm Thompson Smith and Puxon (TSP) and 2016 LPM conference delegate ldquoThere are still firms out there where partners donrsquot have computers on their desks ndash theyrsquore stuck in their ways and just point blank refuse to

52 26 5 12 5

develop their business for the futurerdquoBut legal management leaders willing to implement

change may still find it difficult as 60 of LPM conference delegates polled thought that lsquochange isnrsquot really understood at their firmrsquo

GROWING PAINSJust over a quarter of LPM conference delegates also thought that an inability to create change within their firm would be the greatest hurdle to the businessrsquos growth or further success ndash though Stuttaford at TSP suggests voters might have blamed the traditional partnership business model for the same reason

But acquiring high-quality staff was considered to be the greatest hurdle for growth or success by 36 of delegates Rebecca Patterson HR manager at Kent firm Thackray Williams and 2016 LPM conference delegate says that she agrees with this result ldquoOur firm has a particularly tough time finding quality support staff ndash we could perhaps stand to invest more in competency frameworks and performance management and training opportunities to aid recruitment and retentionrdquo

William Robins operations director at lsquodistributedrsquo firm Keystone Law and a 2016 LPM conference speaker says

12 36 27 13 12

Lack of fundsAcquiring high-quality staffInability to create change within the firmTechnologyThe traditional partnership business model

Out of these which factor is having the biggest impact on the SME legal market

Client pressures on cost (eg fixed fees)Technology creating advantage for competitorsConsolidationDifficulty in finding routes to growth (eg funding)Something else

What is the greatest hurdle to your firmrsquos growth or further success

LEGAL PRACTICE MANAGEMENT24

SEPTEMBER 2016LPM INSIGHTS

offering a more flexible remote or mobile working set-up for everyone in a firm is an excellent way to attract talent (Keystonersquos model of course is founded on remote working) Perhaps the majority of legal management leaders polled at the 2016 LPM conference agree since their firms have either adopted a flexible remote or mobile working set-up are planning to adopt one or are considering adopting one ndash though there are other advantages to remote working such as reducing overheads In any case the results indicate that the SME legal working landscape is becoming considerably more flexible

But remote working doesnrsquot work for everyone Mary Mocklow CEO at West Midlands firm Talbots Law and 2016 LPM conference delegate says that their high-street set-up wouldnrsquot allow it ldquoThe majority of our staff are client-facing and need to be present at the office ndash and while there are other staff at Talbots that might benefit from remote working you canrsquot have a policy for one and not for allrdquo

CYBER THREATSTechnology was clearly a significant concern for legal management leaders who attended the 2016 LPM conference Patterson at Thackray Williams says some firms have had a hard time finding software that caters to their needs as a business and an LPM conference poll seems to back this up just under half of legal management leaders polled at the conference thought project teams should write law firm software indicating a desire for cross-department input into its creation But the poll also indicates that legal software providers have to a large extent been meeting their clientsrsquo needs

The rising threat of cybercrime was also a clear concern for LPM conference delegates ndash 92 of SME legal management leaders said their firms have cyber risk on their management meeting agendas Stuttaford at TSP says ldquoItrsquos something firms need to be constantly aware of and take precautions against not just by purchasing good firewall and antivirus software but by educating staff about password discipline authentication processes and suchrdquo

32 18 14 33 3

Is cyber risk on your management meeting agenda

92

5 3

Yes No Dont know

Is your firm moving to a more flexible workingremote or mobile working set-up for everyone in it

YesNoConsidering itWe already do itDont know

LEGAL PRACTICE MANAGEMENT25

SEPTEMBER 2016LPM INSIGHTS

PRESSURES AND PRICINGClient pressures on cost was also a major concern for legal management leaders polled at the conference so it may not be surprising that just over half of them said 50 or more of their firmrsquos work is some form of fixed fee This doesnrsquot necessarily suggest that the other half arenrsquot open to the concept of fixed fee ndash Mocklow at Talbots points out that fixed fees work for certain types of work ldquoHigh-street firms like Talbots can benefit greatly from fixed fees which is why 75 of our work is fixed fee but itrsquos more difficult to apply to firms that specialise in something like admiralty lawrdquo

The industry seems to think that the value of service has been lost to the price obsession in some areas but not in others ndash and while pricing is clearly a vital issue for SME firms 88 of legal management leaders polled at the LPM conference thought that itrsquos lsquoone of a range of important factorsrsquo or lsquonot as important as other thingsrsquo Patterson at Thackray Williams says that maintaining a good relationship with clients is often more important than pricing though pricing can be a means to achieving client satisfaction ldquoIt also depends on the client ndash in something like conveyancing first-time buyers might be looking for fixed fees or the cheapest price but for commercial clients that may not be as important as reputation or relationshiprdquo

TREASURE MAPPINGLegal process mapping often used by lsquobig lawrsquo and making inroads into SME legal could potentially make SME firms a great deal more efficient and therefore more competitive Two-thirds of legal management leaders polled had heard of process mapping and 79 thought that it is relevant to the business of law Stuttaford at TSP says he agrees ldquoFirms should look at their processes learn from them and figure out how to improve those processes ndash this question really made us look at what TSP has done so far in terms of what legal processes wersquove mapped and whenrdquo

To sum up LPM conference delegates were aware of the challenges that face them but were mostly optimistic nonetheless This may be because they know they need to change and in spite of the fact that change isnrsquot really understood at their firms are planning to mend their ways to meet future market pressures ndash generally putting the client first while keeping talent and technology high on their agendas LPM

Are aware of this thing called legal process mapping

66

34

Has the value of service been lost to the price obsession

23

23

54

Yes No Depends on the service Dont know

Yes No

How important is price in winning business

8

4

67

21

CriticalMore important than almost all factorsIts one of a range of important factorsNot as important as other things such as relationshipsIts one of the less important things in reality

What is the greatest hurdle to your firmrsquos Are aware of this thing called legal process mapping

LEGAL PRACTICE MANAGEMENT27

SEPTEMBER 2016COLUMNSSPONSORED EDITORIAL

Welcome back LPM readers ndash the new school term has started summer is (pretty much) over and the UK is back in full throttle after the summer break And what a break itrsquos been at

File Queen HQ (wersquove taken the time to get our clients up and running with augustprojects as well as started our new Instagram feed filequeenadds)

With the start of the new learning year wersquore focused on the education of you lovely LPM readers ndash with our attention turning back to the General Data Protection Regulation You may remember that in our last LPM article we ran through the 12 steps to tackle the GDPR helped by the awesome people at the Information Commissionerrsquos Office ndash wersquove provided a link to their 12-step resource via our website wwwarchivestoragenetnewsgdpr

Over the next three columns wersquoll be taking these steps and breaking them down for you ndash starting with step one awareness The File Queen (myself) and the team at ADDS have been promoting this step as the most important for all legal practices

ldquoWhyrdquo we hear you holler Well this step is the all-important life raft that unites your practice and team members to help you in the GDPR fight for survival (dramatic I know)

Getting the team on board ndash this buy-in needs to include all ranks of staff ndash from the managing partners to your suppliers But how do you do this Well here are some File Queen tips for when we at ADDS are rolling out projects

Lunch and learn ndash with a register People love to eat and be social so get your legal business to book in a couple of lunch and learn sessions Donrsquot limit this to one date ndash you must run at least two or three so people have the option of which dates to attend Make sure you make a register for those that actually turn up (we all know a calendar acceptance doesnrsquot mean theyrsquoll actually appear) This will allow you to chase down the members of the team you need to get on board for the next one

Have some decent sandwiches nibbles and soft drinks and give the team an overview of the GDPR Run through the 12 steps and make sure you educate them on why everything is so important (make sure you mention the increased fines and audits) During this time let the team know that there are several steps along the way that yoursquoll need their help and support for and which you wonrsquot be able to achieve on your own Tell them that the businessrsquos reputation and brand is on the line and that you need everyone on board to lend a helping hand and spread the word

Another great File Queen tip at this stage is also to get some additional funding from the practice manager for a wine and quiz night at the end of the lunch and learn periods This can be part of your social gathering on a Friday straight after work ndash with some more nibbles and wine Assign people to teams and have a GDPR quiz The winning team gets an award and everyone has fun and learns at the same time Follow our twitter feed as wersquoll be tweeting some great questions to ask thefilequeen GDPRQUIZ

We know itrsquos a lot to organise but there are only four months left in 2016 and GDPR practices must be in place by 25 May 2018 And believe me when you have to roll out rather hard core legislation you have to make it fun and interactive to get people on board LPM

ABOUT

NATASHA RAWLEY THE FILE QUEEN

EDUCATING YOUR PROS

ADDSSaving firms from paper hellContact Natasha on0800 328 0272wwwarchivestoragenet

LEGAL PRACTICE MANAGEMENT28

SEPTEMBER 2016FEATURES

28

Patrick Wingrove talks to the founders of Proelium Law about their work providing legal advice in high-risk environments and conflict zones and the challenges of setting up shop in a new and risky area of law

Legal commandosProelium

Compared to the day-to-day lives of Proelium Law founders and partners Richard Stephens (above left) and Adrian Powell (centre) the average lawyer leads a pretty humdrum life Though UK-based the

firm has a strong international focus ndash Stephens and Powell regularly travel to provide legal and business advice to companies and individuals in high-risk professions or working in hazardous environments across the globe including conflict zones in Iraq Syria and Afghanistan Powell says that itrsquos a challenging but exciting area of law to be in and that ldquono two days are ever the samerdquo

The firm was established as an ABS in November 2015 allowing Powell and Stephens to operate as partners although Stephens isnrsquot a lawyer Powell qualified as a solicitor in 2004 after spending 11 years of his career in the British army and post-2006 worked on various high-risk projects around the world ndash giving him the inspiration for Proelium He says ldquoThe idea came to me in Baghdad in 2009 while working for a private security company as a legal adviser ndash I thought lsquoWhy isnrsquot there a firm doing thisrsquo But I soon realised that I needed someone on the ground who wasnrsquot a lawyer to help make it happenrdquo

That person was Stephens He previously served in the Royal Marines worked as a Whitehall-based strategic planner for the UK government and commanded a special operations regiment (which is why we couldnrsquot show you his face but itrsquos a nice issue of LPM) He now works primarily on the business development side of Proelium ldquoJoining Adrian who Irsquod previously worked with on projects around the

LAW FIRM PROFILE

LEGAL PRACTICE MANAGEMENT29

SEPTEMBER 2016FEATURES

world at a firm meant I could do fascinating and important work with the credibility that being a partner in a regulated business providesrdquo he says

Their work has certainly been interesting Proelium has cast its net far within the niche high-risk sector ndash advising UK-based service providers on the complexities of working in hostile environments conducting business and human rights due diligence and ensuring anti-money laundering counter terrorist-financing and anti-bribery compliance for companies intending to run in high-risk areas or conflict zones to name a few Recently theyrsquove also been working on developing capability for national intelligence organisations overseas ndash but for fear of being jailed for treason Stephens and Powell didnrsquot elaborate hellip

Powell says that the challenges companies face in these areas are numerous ldquoTherersquos a real technical knowledge in understanding how organisations physically work overseas These companies are good at what they do but that doesnrsquot necessarily translate into being business-savvy when it comes to operating in frontier markets ndash thatrsquos where Proelium adds valuerdquo For example after a client was recently exposed on an arms deal they were able to quickly discern liability and ensure that all necessary agencies and departments were appropriately informed

Powell and Stephens joke about how theyrsquore the number-one firm in their sector ndash admitting that to their knowledge theyrsquore the only firm that specialises in this area of law They added that itrsquos an untapped niche in which Proelium will be a pioneering force but which has also recently come onto the radar of a larger firm Theyrsquore alluding of course to Proeliumrsquos recent venture with Harrison Clark Rickerbys ndash a joining that combines Proeliumrsquos experience working in high-risk jurisdictions with the manpower and existing defence and security expertise of

HCR Powell says ldquoWhat they donrsquot have is our connections and our experience They like the idea of the sector because they see it as an interesting area and the partnership will allow us to offer a wealth of different legal services while letting us focus on what we do bestrdquo

As part of their ambitions for Proelium Powell and Stephens are keen to train a new generation of lawyers whorsquoll specialise in the high-risk sector ldquoWe have confidence in what the younger generation has to offer and we want them in our industry to continue our work in this relatively untapped areardquo says Powell Stephens adds that itrsquos also a matter of succession planning ldquoWe want the firm to operate long into the future but we donrsquot necessarily want to be running it ourselves for the next 20 yearsrdquo Proelium currently employs two interns as part of this commitment including University of Surrey law student Ruby Jamieson (pictured) She says ldquoWorking [at Proelium] has given me loads of insight already ndash itrsquos very niche

very new and Irsquove really enjoyed helping develop the business I feel that itrsquoll open a lot of doors when I graduaterdquo

In terms of expansion Proelium has recently opened a new office in the City of London Powell says that his home was originally the firmrsquos practising address but a large portion of their client-base is in London ldquoand we couldnrsquot keep having our meetings in coffee shopsrdquo

But Powell and Stephens are firm believers in the concept of remote working which works particularly well for their business

ldquoMost of our clients are either in London or outside the EU so Irsquom always away but all my phone calls are redirected from the new office to my mobile so I can keep in touch with clients whether Irsquom in Dubai or Baghdadrdquo says Stephens Powell adds that he feels remote working has the added benefit of keeping staff happy by letting them work from home which he says certainly makes him more productive as a fee earner

Proelium isnrsquot looking to expand into areas it has no interest in like family law but theyrsquore taking a keen interest in the emerging area of cyber law and are considering taking steps into that world ldquoLike high-risk law no onersquos really wrapped their arms around cyber law yet Therersquos cyber law in the US but it doesnrsquot exist per se in the UK except in terms of data protectionrdquo

When asked what advice they could give to SME firms based on their unique experiences in their sector Powell and Stephens said firms should know the areas of law they practise inside and out Powell says ldquoWersquore concerned with being experts in our field ndash a lot of our clients have peoplersquos lives in their hands and are not in the business of nonsense which is why they come to us We give sound researched legal advice based on experience and if we donrsquot know something we send the client to someone who doesrdquo LPM

ldquoCompanies are good at what they do but that doesnrsquot necessarily translate into being business-savvy when it comes to operating in frontier markets ndash thatrsquos where Proelium adds valuerdquo

Proelium

Two fee earners four total staff

Offices City of London Wirral Cheltenham

Specialisms International criminal commercial and conflict law due diligence sensitive investigations

LPM FACT FILE

ldquod2u is the UKrsquos number one outsourced transcription service for medical and legal professionals and highly competitive all over the world We pride ourselves on saving our clients time and money as well as offering state-of-the-art security and a first-rate servicerdquo Daryl Leigh CEO dictate2us

LPM magazine has agreed a special deal for its readers with dictate2us ndash 5 off your monthly

transcription bill for one year if you sign up through the dedicated LPM link or call and quote LPM2016 when signing up You can trial the service for free before committing

CUT COSTS INCREASE EFFICIENCYAll firms could benefit from outsourcing transcription to dictate2us ndash but even more so with our LPM deal 5 off your first year

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Use d2u and enjoy the benefits ofbull Fast turnaround timesbull Secure and confidential servicebull Secetarial cost reductions of up to 60bull Guaranteed 985 minimum accuracybull iPhone Android and Blackberry apps with one-hour turnaroundbull 100 output - only pay for the time you talkbull Free no obligation trial

This special LPM magazine reader deal only relates to customers that execute an agreement for a minimum term of 12 months with a minimum monthly commitment of 500 minutes LPM magazine sought two law firm references for dictate2us to verify its claims for quality and delivery The 5 deal only applies to the first paying year the customer is with dictate2us LPM magazine is not responsible or liable in any way for work done by dictate2us and is an advertising referrer only

d u2 dic t a t e 2 u s

SPECIAL READER OFFER

The d2u Transcriber app is free to download from Apple and Android app stores and BlackBerry App World

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LPMLEGAL PRACTICE MANAGEMENT

LPMLEGAL PRACTICE MANAGEMENT

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LEGAL PRACTICE MANAGEMENT31

SEPTEMBER 2016FEATURES

Patrick Wingrove speaks to management leaders from SME and top 100 law firms that have recently achieved significant growth to find out how to go from acorn to oak tree

FROM MINNOW TO

For many SME firms growth is the goal ndash but it doesnrsquot have to happen in the ways that many have scaled in the past The era of organic slow quiet steady partnership development over decades is

increasingly at odds with a fast-paced digital world Strategies for growth in the legal market are now closer than ever to the rest of the business world ndash and any size firm can learn how to do it

Big or small there are similar tools in the box for making growth happen and similar challenges Lessons abound but some of the best can be taken from those firms not far outside the famous lsquotop 100rsquo legal businesses in the land ndash those that have already grown up and now have the top tier in their sights There are also lessons to draw from smaller but rapidly scaling law firms

There are many growth strategies for organic and acquisitive growth ndash and no easy answer for which is right for your firm To shine a light on the subject wersquove spoken both to SME and top 100 firms about growth and how to do it (and importantly how not to do it)

MAMMOTH

LEGAL PRACTICE MANAGEMENT32

SEPTEMBER 2016FEATURES

MODELS OF GROWTH According to the Lawyer the two fastest growing firms in the top 200 this year are Midlands-based Knights and lsquodistributedrsquo firm Keystone Law ndash currently placed 119 and 122 in the 2015 UK 200 rankings but whose revenue will now put them well inside the 2016 top 100 (due for release October 2016) Both attribute their growth to non-traditional business models ndash and very different non-traditional models at that

Knights corporatised in 2014 to remove the barriers from its decision making processes which CEO David Beech says has been the key to its growth ldquoEquity partnerships donrsquot grow particularly quickly because itrsquos hard to achieve consensus and make decisions that enable fundamental or rapid growth among equity partnersrdquo

Knights acquired Oxford-based Darbys earlier this year ndash a move largely behind the revenue increase that will put them in the top 100 ndash and completed the transition inside three months which Beech says would have been next to impossible under their old business structure ldquoNot only was a quick turnaround good for the books it saved significant time and money that could be invested elsewhere in the businessrdquo he says

Top 100 firm Simpson Millar is one step

ahead of Knights The firm broke the glass ceiling to become a top 100 firm in 2015 and like Knights the firm attributes its growing success to corporatisation ndash but in a different manner

It sought to be and was eventually acquired by PLC Fairpoint Group in 2014 Simpson Millar continues to run as an LLP under the same management team and existing trading brands but as a business unit within Fairpoint

Managing partner Peter Watson says that one of the key reasons to pursue this particular growth strategy was to provide an injection of capital for MampA ldquoWe completed the sizeable acquisition of Colemans last year for example which we were only able to do with considerable investment from Fairpointrdquo

Being part of a PLC has also given the firm access to strong MampA and project management capabilities ldquoAcquiring Colemans doubled the business overnight ndash for something like that you need strong MampA experience and access to that team within Fairpoint was crucial in getting the deal across the linerdquo says Watson Simpson Millar also built a strong digital strategy launched new products and focused on pricing ldquoCall it fixed fees or packaged fees the point of it was to say to consumers

Square One Law

Revenue pound5m

31 fee earners 53 total staff

Offices Newcastle-upon-Tyne

Specialisms Commercial corporate property employment EU and competition law finance litigation private client

LPM FACT FILE

Knights

Revenue pound40m (year end 2017)

375 fee earners 450 total staff

Offices Chester Cheltenham Newcastle-under-Lyme Derby Oxford Hale

Specialisms Full service firm

LPM FACT FILE

LEGAL PRACTICE MANAGEMENT33

SEPTEMBER 2016FEATURES

lsquoWith us you know exactly what yoursquoll get and how much itrsquoll costrsquordquo

PEOPLE PLEASERSThe ability to implement change has also been an important part of delivering a growth strategy This isnrsquot necessarily surprising ndash polling at the 2016 Legal Practice Management conference showed that legal business managers thought it was one of the greatest hurdles to a firmrsquos growth or success only topped by acquiring high-quality staff In Knightsrsquo case the two challenges were addressed together Beech says Knightsrsquo corporate rather than partnership structure also allows it to recruit talented people without having to deal with the inherent politics of an equity partnership

ldquoAcquiring the best talent has been a central part of our growth strategy ndash if a candidate can help the business through expertise or client following we can just recruit themrdquo he added

But a successful growth strategy incorporating talent isnrsquot just about recruiting quickly as we analysed in the July 2016 issue of LPM ndash itrsquos about recruiting well Firms also need to make themselves an attractive prospect for legal talent in order to grow

William Robins operations director at Keystone Law says his firmrsquos lsquodispersedrsquo model allows it to do that by offering new fee earners the chance to work remotely with less supervision ldquoWersquore typically hiring about a lawyer a week ndash bringing their expertise fee-earning capability and client following with them ndash and that is the core part of our growth strategyrdquo The firm has buttressed its recruitment capability by hiring a director of recruitment to focus almost entirely on lawyer enrolment (recruiting talent to recruit talent ndash neat)

Though the distributed model may not be for everyone says Robins implementing some form of flexible mobile or remote working should be part of any firmrsquos growth strategy because it allows firms to increase their fee-earning capability without accruing fixed overheads such as office premises

And there are other ways to be talent-attractive As a core part of its growth strategy Newcastle-based firm Square One Law ndash which achieved 30 growth in the

last financial year ndash has pledged to create a supportive and inspirational team environment offering high-calibre work to attract the best talent Ian Gilthorpe senior partner at Square One says ldquoGood people want to be inspired to be valued for what they do and feel as though theyrsquore making a contribution The key is to engage with all your staff to facilitate a culture where staff feel happy at work work for each other trust each other and ensure that they see the value in what they do ndash if you do that more talent will comerdquo

He added that itrsquos important for

recruitment to convey staff satisfaction to the outside world which Square One has achieved by including staff video-testimonials on its website

But recruiting is only half of an effective people strategy ndash the other is retention Simpson Millar has attempted to create an environment that its talented staff wonrsquot want to leave Says Watson ldquoToo many firms worry about what will happen if their rainmaker goes somewhere else and takes clients with them ndash so they put the shackles on make them feel unhappy and make it so that they canrsquot realise their full potentialrdquo Creating such an environment makes firms an attractive target for lateral hires when they should be building a place people want to join

PRACTICE AREASSME legal businesses donrsquot necessarily need to change their business models completely to achieve the same growth as

Thorntons

Revenue pound20m

209 fee earners 430 total staff

Offices Dundee Edinburgh St Andrews Perth Cupcar Kirkcaldy Anstruther Arbroath Montrose Forfar

Specialisms Full service firm

Keystone

Revenue pound202m

198 fee earners 230 total staff

Offices London Bristol Isle of Man Australia

Specialisms Corporate and commercial dispute resolution property

LPM FACT FILE

LPM FACT FILE

Equity partnerships donrsquot grow particularly quickly because itrsquos hard to achieve consensus and make decisions that enable fundamental or rapid growth among equity partners David Beech CEO Knights

Simpson Millar

Revenue pound316m

322 fee earners 539 total staff

Offices Birmingham Bristol Cardiff Cheadle Hulme Gateshead Kingston-upon-Thames Lancaster Leeds Park Place Leeds St Pauls Street (head office) London Manchester Newcastle

Specialisms Full service firm

LPM FACT FILE

LEGAL PRACTICE MANAGEMENT34

SEPTEMBER 2016FEATURES

our examples but removing blockers from decision-making making themselves more attractive to talent and finding the right funding for growth are increasingly important and the partnership structure may not enable it

But of course that means asking some turkeys to vote in a Yuletide election Fortunately there are other ways to achieve impressive growth mainly investment andor expansion into new geographic or practice areas

Watson says that Simpson Millar wouldnrsquot have been an attractive prospect to Fairpoint had the firm not spent time growing organically by expanding into new areas of law

ldquoWe went from being a predominantly trade union PI firm to having a broad base of 16 types of work ndash with strong heads in charge of each committed to driving growth in their departments ndash which gave us a large boost in revenuerdquo The firm achieved this through small acquisitions of other firms that had expertise in particularly lucrative areas of law

But firms shouldnrsquot just look at expanding in lucrative areas ndash they should focus on areas where their reputations deliver an advantage Scotlandrsquos Thorntons for example ndash which last year leapt from 134 to 108 in the 2015 UK 200 rankings ndash invested in six departments as part of its growth strategy

Thorntons joint managing partner Scott Milne says ldquoWe didnrsquot exclude other areas but we saw that these areas were profitable and that more importantly we had considerable expertise in them ndash we also considered that these are areas that are unlikely to be affected by future economic downturnrdquo This included investing in niche areas of law where the firm has a geographic competitive advantage ldquoWersquore lucky to be surrounded by some of the best farmland in the UK ndash wersquore well known for our expertise in rural business law which is why we invested heavily in itrdquo

ORGANIC V ACQUISITIONIn several ways choosing an effective growth strategy very much boils down to MampA versus organic growth ndash every business model talent or area expansion strategy appears to revolve around one or both But which is the best to achieve the kind of growth thatrsquoll propel firms to a lsquohockey stickrsquo on their revenue forecasts The short answer is it depends on whatrsquos best for a firm at a given time It either

needs to fit the firm ndash or the firm needs to change to fit the goal

Beech says that acquisition has been excellent for Knights because itrsquos a fast and effective form of expansion ndash the acquisition of Darbys more than doubled its revenue But MampA poses a significant challenge to finding firms with the right cultural fit

ldquoFirms need to establish a single culture in order to implement growth ndash everyone needs to be working towards the same goalrdquo He added that when a firm completes a merger or acquisition that firm has to be integrated from day one which is much more difficult if it has a significantly different culture Knights is planning to continue recruiting and complete more acquisitions in the next year to maintain the growth curve

Of course the big problem with acquisition is money Robins at Keystone says his firm lies at the opposite end of this

INFORMATION IS EMPOWERING

Lemington Spa-based firm Wright Hassall has a specific goal of breaking into the top 100 and as part of its growth strategy expanded into areas of the UK where its expertise is highly sought after ndash using customer relationship management in the background to underpin the firmrsquos activities in specific areas Martyn Wells IT director at the firm says ldquoWersquove zoomed in on specific industry sectors that we know are performing well in the Midlands sectors where we have a superb reputationrdquo Expanding geographically as Wells outlines needs data to get right Thorntons for example identified various lsquomicro-marketsrsquo in Scotland close to its base of operations ldquoWe acquired a firm in St Andrews because itrsquos like a micro-economy (or micro-market) that doesnrsquot seem to be affected by price drops in the residential market elsewhererdquo says Thorntons joint managing partner Scott Milne Knights has another take on the geographic targeting idea ndash it intends to stay out of the large cities (London Manchester Leeds for example) and expand into areas where there is little competition As David Beech CEO at Knights explains ldquoLast September we acquired a small team in Chester of about 11 lawyers and now thatrsquos expanded to just over 70 ndash and the main reason wersquove been able to do that is because there isnrsquot a lot of competition thererdquoUltimately this all comes down to research finding out what to invest in or where to expand and perhaps most importantly finding out what clients want

LEGAL PRACTICE MANAGEMENT35

SEPTEMBER 2016FEATURES

spectrum to the way Knights has grown emphasising organic growth finding innovative means to attract talent using technology to drive efficiency and branching out into new areas of law or new markets to achieve significant growth

Square One Law also espouses the organic route ndash believing that firms with growth in mind should focus on ensuring their external brand reflects the businessrsquos internal culture and behaviours of its team creating lsquosynergyrsquo between the business and its clients

Gilthorpe says ldquoMergers ndash and there is no such thing as a true merger ndash and acquisitions can be a distraction as you look to create a new culture and separate the wheat from the chaff and this can soak up a lot of energy that would otherwise be put to use in driving the progression of the business and the focus on client servicerdquo

The best option for some firms may be a

calculated combination of MampA and organic Thorntons for example having made several acquisitions is now focusing on organic growth moving away from geographical expansion and towards developing locations and its brand

Watson at Simpson Millar sums the mixed approach up thus ldquoItrsquos a mixture Acquisition is still very much a part of the mix but in parallel to that itrsquos important to demonstrate that yoursquore developing ongoing work rather than being driven solely by acquisitionrdquo

There are clearly many different ways to achieve healthy and assertive growth though there are no easy answers as to which way is right for your firm But it is clear that growth doesnrsquot have to happen in the ways many have previously achieved it ndash innovation and lateral thinking are the means of achieving significant growth (which might one day propel you into the top 100 you never know) LPM

LEGAL PRACTICE MANAGEMENT36

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

INDUSTRY VIEWS

36LEGAL PRACTICE MANAGEMENT

Legal is becoming an ever more digital industry giving firms the chance to become more efficient flexible agile and collaborative

INDUSTRY VIEWS INDEX

ONLINEOFFICES

36

SPONSORED EDITORIAL

INDUSTRY VIEWS

37 INTERVIEW

Paperless processLinetimersquos Tony Klejnow explains the benefits of using matter management software for law firms and their clients

39 INTERVIEW

Virtual expansionNigel Redwood Nasstarrsquos CEO talks about the advantages of having a managed flexible IT infrastructure

LEGAL PRACTICE MANAGEMENT37

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT37

Competition and price pressures and an increasingly digital client base are all significant drivers for law firms to become paperless

businesses Tony Klejnow Linetimersquos managing director says firms could achieve competitive advantage by introducing paperless solutions across their businesses ndash but a particular lsquoeasy winrsquo area is matter management

ldquoFee earners are required to keep detailed records of their cases but the amount of time and money they waste physically printing filing looking for collaborating on and updating files is alarmingrdquo says Klejnow Law firms have traditionally been reluctant to adopt paperless

workflow solutions he adds because workflow doesnrsquot apply to 99 of fee earnersrsquo work ldquoBut if they adopted paperless solutions in their back office processes they could reduce costs without affecting client service boost productivity and promote collaboration ndash making them more efficient flexible and cost effective and making them more competitive in an ever-changing legal marketrdquo

MATTER MATTERSDocument and matter management tools ndash like those in Linetimersquos legal software product Liberate ndash electronically store and organise all case documentation in an online database Klejnow says that there are two immediate benefits of paperless matter

PAPERLESS PROCESS

Tony Klejnow managing director at Linetime talks to LPM about the benefits of the paperless office ndash starting with filing and back office processes

INDUSTRY VIEWS

Linetime is a specialist provider of Microsoft-based practice and case management solutions Clients include mid-tier law firms and in-house legal departmentswwwlinetimecouk

ABOUT THE SPONSOR

SPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT38

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT 38

management The first is reducing paper and storage costs

ldquoIf case documentation is electronically stored once a case is finished you no longer have a five-inches-thick file that has to be stored for six years ndash which has to reside somewhere and costs firms time space and moneyrdquo The second is eliminating filing time ndash for example instead of printing and filing emails and attachments fee earners drag and drop emails directly from Outlook into the database ldquoand attachments are automatically stripped from emails and appropriately filedrdquo says Klejnow

And Klejnow says paperless filing systems donrsquot just facilitate efficiency this way ndash they also improve general process efficiency by facilitating collaboration between fee earners Solicitors can use document and matter management to view and work on matters at the same time a difficult if not impossible prospect when working with paper files Klejnow says ldquoWithout document management legal professionals work in silos but with it they immediately share datardquo He adds that Liberate has an additional collaboration tool to help further improve collaborative efficiency in firms ldquoIf I choose to lsquocollaboratersquo a document with you on Liberate Outlook will prompt you to review that document by simply acknowledging the notificationrdquo

In this respect moving to become a paperless business provides greater flexibility for fee earners who can collaborate with colleagues working remotely or in different offices Klejnow says ldquoPaper files can only reside in one location but electronic files can be accessed from any office and when working from home or with clientsrdquo On the other side of the coin having digital files maintains a greater level of productivity in a law firm office ldquoIf your colleague is absent from the office you can easily find documents that you might have otherwise wasted a significant portion of your day looking forrdquo he adds

Improved external collaboration is also a benefit that firms can reap from paperless matter management With an electronic system you can go into a case history bundle documents into one PDF file and quickly submit that to the third party improving collaboration between fee earners and clients who want to do everything online This has the added benefit of improving accuracy and facilitating greater efficiency by involving clients in the process ldquoGood matter management software should also let you push e-forms to clients to be filled in and that information is automatically transferred straight to the online database ndash which saves fee earners

time and is a more accurate because the information doesnrsquot have to be constantly re-enteredrdquo says Klejnow

This extra level of collaboration within legal businesses that hasnrsquot been possible until now has long been needed because it improves efficiency and productivity which makes the business more profitable and competitive Klejnow adds that what firms save by adopting matter management they should reinvest in becoming fully paperless digital businesses

ldquoCase management solutions can improve efficiency to an even greater extent and keep firms competitive in the age of the alternative business structuresrdquo

VISIBLE COMPLIANCEIn response to firms reluctant to adopt paperless technologies like document and matter management for fear of losing delicate information to cybercriminals Klejnow says those systems provide an additional level of security ldquoTaking data and attachments out of Outlook and storing them on a database is much more secure than leaving them on your hard drive If you leave

your laptop on a train for example all your important data is safely stored on a server and not instantly accessible by opportunist criminalsrdquo

Document and matter management also offers a greater level of security in fee earner and client communications ldquoIf I want you to check that the data we have for you is accurate Liberate will

direct you to a page holding your data and at the same time it will push out an SMS text with a pin code to your phone Unless you input the code you canrsquot get to the web page ndash which means if one of your solicitors accidentally sends an email to the wrong person or itrsquos intercepted it doesnrsquot matter The data stays safe ndash this level of security is crucial in this age of cybercrimerdquo

These security features clearly have significant benefits for compliance which is important in a market increasingly dictated by regulation including the relatively new General Data Protection Regulation says Klejnow

ldquoCompliance officers need to be seen by regulators to have monitored and reviewed everything thatrsquos happened in their firm which is considerably easier with a paperless system Liberate has lsquoversion controlrsquo which allows compliance officers to keep tabs on every change made to a document as well as a compliance module which lets them view whatrsquos happening on a case (to ensure that money laundering checks have been carried out and so on) and records the fact that yoursquove reviewed thisrdquo LPM

Without document management legal professionals work in silos but with it they immediately share data

INTERVIEW

LEGAL PRACTICE MANAGEMENT39

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LPM readers may already know the Nasstar Group ndash but by a different name Nasstar was launched by regular LPM-contributor e-knownet to consolidate four discrete hosted

managed IT businesses (including e-knownet) after a period of significant acquisition Nigel Redwood chief executive officer at Nasstar says merger and acquisition and consolidating brands is challenging but having a flexible hosted IT infrastructure makes the process significantly easier

ldquoManaged IT services are enormously beneficial for firms that are expanding or consolidating particularly after MampA in terms of time and productivity cost savings and flexibilityrdquo He adds that by just having managed desktops firms can attain competitive advantage by reducing overheads and becoming more flexible and agile

Nasstar has experience helping SME firms with their IT systems after MampA and knows what problems to look out for creating unity among staff used to using different systems and processes the cost and time it takes to expand an IT infrastructure and the geographic distance between new offices

Redwood says that MampA can be an excellent way for legal businesses to expand into new sectors but that consolidating new departments using different IT systems and processes is challenging

ldquoOur acquisitions for example introduced new sector focuses for us in the SME legal market ndash wersquove consolidated these into a wider service base under Nasstar and facilitated unity among staff using virtual IT solutions

rdquoVirtual IT solutions help facilitate unity across the business by providing a level of consistency in an IT infrastructure Everyone immediately uses the same applications on the same versions from wherever theyrsquore working creating unity faster collaboration across teams and effective information sharingrdquo Hosted IT infrastructures are also continually updated giving staff instant access to new updates applications and technologies as they become available

The next significant challenge firms face after MampA is expanding their IT infrastructure to accommodate an influx of new staff ndash but Redwood says virtual IT solutions let firms expand their IT infrastructure at the flick of a switch

ldquoWith virtual IT firms arenrsquot held back by the size of their servers or the amount of computer power theyrsquove got ndash they simply call their IT provider and ask for an upgrade when previously theyrsquod have been

subject to lengthy and costly IT upgradesrdquo Virtual IT solutions are also easy to budget for

Redwood says ldquoYoursquore not going to be surprised by an increased fixed asset expenditure ndash services like those offered by Nasstar are an operational cost and fixed per user per month through a scalable cost modelrdquo

Geographic distance inhibiting collaboration between merged offices is also a key consideration for firms after MampA but virtual IT solutions solve this problem Redwood says a virtual IT infrastructure can minimise travel through the use of hosted virtual meeting rooms and video technology Staff can use this technology from virtually anywhere which is why it also lends itself well to remote flexible or mobile working set-ups

VIRTUAL WORKPLACERemote working is becoming an increasingly present feature of the legal landscape because of its cost saving and recruitment and retention advantages ndash the majority of firms at the LPM conference 2016 were moving towards a flexible remote or mobile working set-up or already had one

Redwood says virtual IT solutions better enable staff who work remotely ldquoHosted managed desktop solutions for example let staff work with the same applications from any device in the world safely and securelyrdquo

But remote working isnrsquot only about enabling the current workforce itrsquos about attracting future talent Redwood says that millennials donrsquot necessarily want to work as their predecessors did ndash they expect greater flexibility in the workplace which at one level can be achieved by remote working facilitated by a managed desktop

ldquoAnd itrsquos not only about attracting millennialsrdquo he says ldquoSME firms with flexible working set-ups are becoming more attractive to experienced legal talent who may be frustrated by the rigidity of their firmrdquo As a firm expands its workforce in this manner firms with virtual IT solutions reap the lsquodoublersquo cost saving benefits of not having to expand their premises or IT infrastructure accordingly

Some firms are resistant to remote working based on hosted IT services believing they arenrsquot secure ndash but Redwood says that argument ldquocan be put to bedrdquo

ldquoFor an in-house IT team to have the level of security that an organisation like ours can deliver is near impossible financially as well as in terms of the

VIRTUALSANITYNigel Redwood CEO at Nasstar talks to LPM about how managed IT can help SME firms achieve competitive advantage by making them more agile and flexible

LEGAL PRACTICE MANAGEMENT40

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

INTERVIEW

level of systems and technologies they deployrdquo Cybercrime is of course a scary and constantly evolving threat but Redwood points out that virtual IT systems have dedicated teams monitoring these threats evolving cyber defences and changing systems accordingly

ldquoThis capability not only makes [firms] a lot more secure but gives peace of mind in terms of compliancerdquo

ONLINE ADVANTAGE Redwood says virtual IT infrastructures donrsquot just pertain to lsquobig lawrsquo but to SME firms as well ndash perhaps more so

ldquoVirtual IT systems are a way for SME firms to stay competitive against their larger

counterparts and ABSs ndash it gives them a greater ability to expand it lets them adopt more flexible and agile models and is easy to budget forrdquo Firms can also expect virtual IT solutions to enable better alignment of IT resources to business needs enhanced usability with anywhere anytime access and in-built business continuity

But the greatest advantage virtual IT offers SME firms over big law is agility Redwood says ldquoBig IT departments in firms can be slow to react cumbersome and held back by the limitations of hardware infrastructure and security issues ndash all of that is removed with a solution like ours and the customer has access to fast-moving agile ITrdquo LPM

ABOUT THE SPONSOR

Nasstar is a provider of managed IT services and tailor-made cloud hosted solutions ndash delivering innovative secure and agile IT to help clients accomplish their business objectiveswwwnasstarcom

Page 20: LPM September 2016

LEGAL PRACTICE MANAGEMENT21

SEPTEMBER 2016LPM INSIGHTS

MORE TECHMORE SECURITY

INTRODUCTION TO THE RESEARCH FROM OUR SPONSOR RICHARD ROEBUCK MANAGING DIRECTOR ACCESSPOINT

After a recent period of uncertainty it would now seem that most firms are confident about their future especially in light of Brexit Whatrsquos also certain is

that most firms are very conscious that to compete they will need to change and adapt themselves for the challenges ahead

With growing concerns about the lack of high-quality people available and what appears to be a reliance on quality individuals driving more lucrative fee-earning work is it time for a gear change

Perhaps the dawn of high-volume low-margin fixed fee work which many firms feared has now arrived As always with change there are challenges to be faced but for those clever early adopters there lies opportunity Making light of the more process-driven tasks and finding more effective efficient ways of completion to deliver client-facing benefits seems key to the wider future of the fixed fee legal landscape

With the growing acceptance of cloud technology and the increasing introduction of new software applications and solutions the legal world has moved on at an improved pace this past couple of years And the world is now clearly keen for more ndash to satisfy its desire for a more accessible and mobile working environment What is key for this trend is that the lsquoquality of the deliverablersquo has an ongoing programme of improvement that benefits both the firm and its clients

As progress pulls us forward there will always be elements arrayed against us Alongside the opportunities hiding in the polling from LPM this year therersquos also a sense of fear and concern around possibly the biggest threat to risk and security there is right now ndash the dark byproduct of technological success cybercrime

Cybercrime is fast growing with ever more complex attacks making headlines It is now one of the most common criminal offences in the UK An increasing number of individuals are exploiting the speed and anonymity of the internet to commit a wide range of criminal activities having no conscience and knowing no borders

It isnrsquot our fault websites get hacked but poor internet safety habits can put us at risk Reusing passwords or using weak passwords make us easy targets for identity theft Remembering multiple passwords can be a pain but there are web services and associated applications that can help such as two factor authentication quality mail management systems URL threat protection and mail encryption

For many firms the biggest threats tend to be by way of the ever-open door into our networks and devices ndash email

Our eagerness to respond almost instantly to emails throughout what will be for most an already pressured day is perhaps the dominant daily activity to foster an unwanted lapse in security In the past 18 months alone I have seen three firms that were truly caught out ndash some with the potential for significant financial penalty by opening email attachments The most common lsquogotcharsquo is an email that appears to have come from the office scanning platform whereby the email address has been cleverly spoofed to appear legitimate (for example downstairscopiermyfirmdomaincouk) There are so many existing and newly circulating threats of this calibre and type that even the most aggressive of filtering systems struggle to keep up

Do you know the name(s) of your copiers and the associated email addresses Do you stop to think before opening the innocuous Word attachment ldquoDoesnrsquot our scanner usually send PDF files Why has a covering note not been included with the attachmentrdquo Stop think and call for advice

Another infamous scam is the spoofing of email addresses of key people within your firm ndash for example an email to the head of accounts appears to be from the senior partner ldquoPlease send pound17000 to account X at your earliest convenience and confirm once processedrdquo it says Stop ndash is this your agreed process

As the demand grows and we extend our reach out into the online world so cybercrime advances ever closer seeking unauthorised access through our front door Quite clearly online is the future but we need to embrace it with the necessary skill sets and processes in place for our convenience wellbeing and prosperity LPM

There are so many existing and newly circulating threats of this calibre and type that even the most aggressive of filtering systems struggle to keep up

Accesspoint are independent legal IT specialists who consult on a variety of information technology-related issues offering the best in IT solutions to help firms work more effectively

Contact Richard and the team on 0203 189 2645wwwtheaccesspointcouk

LEGAL PRACTICE MANAGEMENT22

SEPTEMBER 2016LPM INSIGHTS

SME law firms are in a battle for survival Whether they know it or not they have huge challenges to face in the next few years ndash around succession planning technology replacing lawyers and being

used by competitors to attain a competitive edge and catering to clients who increasingly want cost predictability transparency and availability

These market pressures were addressed at the LPM conference in May 2016 which was attended by over 100 delegates all SME legal management leaders The delegates were polled on the day about what they thought of the pressures facing them and how theyrsquore planning to overcome them ndash and their answers provide valuable insight into the SME legal market

The polling results show that LPM conference delegates were aware of the severity of the challenges they face Three-quarters of legal management leaders we polled at the 2016 LPM conference thought that the challenges theyrsquoll face in the next five to 10 years will be lsquomorersquo or lsquomuch morersquo serious than in past years And 58 of delegates thought that the challenges in the next year to two years will be lsquomore serious than in past yearsrsquo

How they will face these challenges depends at least partly on attitude ndash whether they believe they can win or will eventually lose the war Fortunately most LPM conference delegates were optimistic about their firmsrsquo futures - 81 were either lsquocautiouslyrsquo or lsquoveryrsquo optimistic about their place in the legal market of the future

This doesnrsquot necessarily suggest that theyrsquore confident in the market overall particularly after the market instability brought by Brexit Legal management leaders might believe their firm is the only one thatrsquoll survive due to expertise in a particular area or niche In any case it indicates market confidence and a confidence in the ability of their firm to compete and succeed

But is this optimism misplaced in a market where the future is increasingly uncertain and competitive Are firms really ready for change on a huge scale as their confidence might suggest What are the issues currently keeping SME legal leaders awake at night

In this report LPM shines a light on the SME legal market through the eyes of our legal management leader audience ndash those driving their firms through an uncertain new world

WHATrsquoS NEXTChange is on the agenda for LPM firms but how to address the biggest challenges and which ones to face first is a tough call finds Patrick Wingrove

More serious than in past yearsMuch more serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch less serious than in past years

51

14

8

3

24

More serious than in past yearsMuch more serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch less serious than in past years

How would you rate the challenges your firm faces in the next five to 10 years

More serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch more serious than in past yearsMuch less serious than in past years

58

17

6

0

19

More serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch more serious than in past yearsMuch less serious than in past years

How would you rate the challenges your firm faces in the next year to two years

What is the greatest hurdle to your firmrsquos growth or further success

What is the greatest hurdle to your firmrsquos growth or further success

LEGAL PRACTICE MANAGEMENT23

SEPTEMBER 2016LPM INSIGHTS

TIMES THEY ARE A CHANGINrsquo The overriding theme of the 2016 LPM conference was change ndash how firms can implement it the drivers behind it and the various blockers to it But the first step to change is gauging which factors will have the biggest impact on the legal market Just over half of legal management leaders we polled thought client pressures on cost like demanding fixed fees will have the biggest impact while just over a quarter thought it will be competitors attaining a market advantage using technology

How quickly do firms need to respond to these oncoming market pressures Well 86 of LPM conference delegates thought that change needs to happen in their firms within the next two to five years But 14 said that their firm doesnrsquot need to change significantly perhaps because theyrsquove beaten the rest to the punch their legal business is somehow immune to new pressures ndash or they have their heads in the sand

Legal has traditionally been resistant to change and itrsquos not surprising that some firms still are says Sean Stuttaford COO at Essex firm Thompson Smith and Puxon (TSP) and 2016 LPM conference delegate ldquoThere are still firms out there where partners donrsquot have computers on their desks ndash theyrsquore stuck in their ways and just point blank refuse to

52 26 5 12 5

develop their business for the futurerdquoBut legal management leaders willing to implement

change may still find it difficult as 60 of LPM conference delegates polled thought that lsquochange isnrsquot really understood at their firmrsquo

GROWING PAINSJust over a quarter of LPM conference delegates also thought that an inability to create change within their firm would be the greatest hurdle to the businessrsquos growth or further success ndash though Stuttaford at TSP suggests voters might have blamed the traditional partnership business model for the same reason

But acquiring high-quality staff was considered to be the greatest hurdle for growth or success by 36 of delegates Rebecca Patterson HR manager at Kent firm Thackray Williams and 2016 LPM conference delegate says that she agrees with this result ldquoOur firm has a particularly tough time finding quality support staff ndash we could perhaps stand to invest more in competency frameworks and performance management and training opportunities to aid recruitment and retentionrdquo

William Robins operations director at lsquodistributedrsquo firm Keystone Law and a 2016 LPM conference speaker says

12 36 27 13 12

Lack of fundsAcquiring high-quality staffInability to create change within the firmTechnologyThe traditional partnership business model

Out of these which factor is having the biggest impact on the SME legal market

Client pressures on cost (eg fixed fees)Technology creating advantage for competitorsConsolidationDifficulty in finding routes to growth (eg funding)Something else

What is the greatest hurdle to your firmrsquos growth or further success

LEGAL PRACTICE MANAGEMENT24

SEPTEMBER 2016LPM INSIGHTS

offering a more flexible remote or mobile working set-up for everyone in a firm is an excellent way to attract talent (Keystonersquos model of course is founded on remote working) Perhaps the majority of legal management leaders polled at the 2016 LPM conference agree since their firms have either adopted a flexible remote or mobile working set-up are planning to adopt one or are considering adopting one ndash though there are other advantages to remote working such as reducing overheads In any case the results indicate that the SME legal working landscape is becoming considerably more flexible

But remote working doesnrsquot work for everyone Mary Mocklow CEO at West Midlands firm Talbots Law and 2016 LPM conference delegate says that their high-street set-up wouldnrsquot allow it ldquoThe majority of our staff are client-facing and need to be present at the office ndash and while there are other staff at Talbots that might benefit from remote working you canrsquot have a policy for one and not for allrdquo

CYBER THREATSTechnology was clearly a significant concern for legal management leaders who attended the 2016 LPM conference Patterson at Thackray Williams says some firms have had a hard time finding software that caters to their needs as a business and an LPM conference poll seems to back this up just under half of legal management leaders polled at the conference thought project teams should write law firm software indicating a desire for cross-department input into its creation But the poll also indicates that legal software providers have to a large extent been meeting their clientsrsquo needs

The rising threat of cybercrime was also a clear concern for LPM conference delegates ndash 92 of SME legal management leaders said their firms have cyber risk on their management meeting agendas Stuttaford at TSP says ldquoItrsquos something firms need to be constantly aware of and take precautions against not just by purchasing good firewall and antivirus software but by educating staff about password discipline authentication processes and suchrdquo

32 18 14 33 3

Is cyber risk on your management meeting agenda

92

5 3

Yes No Dont know

Is your firm moving to a more flexible workingremote or mobile working set-up for everyone in it

YesNoConsidering itWe already do itDont know

LEGAL PRACTICE MANAGEMENT25

SEPTEMBER 2016LPM INSIGHTS

PRESSURES AND PRICINGClient pressures on cost was also a major concern for legal management leaders polled at the conference so it may not be surprising that just over half of them said 50 or more of their firmrsquos work is some form of fixed fee This doesnrsquot necessarily suggest that the other half arenrsquot open to the concept of fixed fee ndash Mocklow at Talbots points out that fixed fees work for certain types of work ldquoHigh-street firms like Talbots can benefit greatly from fixed fees which is why 75 of our work is fixed fee but itrsquos more difficult to apply to firms that specialise in something like admiralty lawrdquo

The industry seems to think that the value of service has been lost to the price obsession in some areas but not in others ndash and while pricing is clearly a vital issue for SME firms 88 of legal management leaders polled at the LPM conference thought that itrsquos lsquoone of a range of important factorsrsquo or lsquonot as important as other thingsrsquo Patterson at Thackray Williams says that maintaining a good relationship with clients is often more important than pricing though pricing can be a means to achieving client satisfaction ldquoIt also depends on the client ndash in something like conveyancing first-time buyers might be looking for fixed fees or the cheapest price but for commercial clients that may not be as important as reputation or relationshiprdquo

TREASURE MAPPINGLegal process mapping often used by lsquobig lawrsquo and making inroads into SME legal could potentially make SME firms a great deal more efficient and therefore more competitive Two-thirds of legal management leaders polled had heard of process mapping and 79 thought that it is relevant to the business of law Stuttaford at TSP says he agrees ldquoFirms should look at their processes learn from them and figure out how to improve those processes ndash this question really made us look at what TSP has done so far in terms of what legal processes wersquove mapped and whenrdquo

To sum up LPM conference delegates were aware of the challenges that face them but were mostly optimistic nonetheless This may be because they know they need to change and in spite of the fact that change isnrsquot really understood at their firms are planning to mend their ways to meet future market pressures ndash generally putting the client first while keeping talent and technology high on their agendas LPM

Are aware of this thing called legal process mapping

66

34

Has the value of service been lost to the price obsession

23

23

54

Yes No Depends on the service Dont know

Yes No

How important is price in winning business

8

4

67

21

CriticalMore important than almost all factorsIts one of a range of important factorsNot as important as other things such as relationshipsIts one of the less important things in reality

What is the greatest hurdle to your firmrsquos Are aware of this thing called legal process mapping

LEGAL PRACTICE MANAGEMENT27

SEPTEMBER 2016COLUMNSSPONSORED EDITORIAL

Welcome back LPM readers ndash the new school term has started summer is (pretty much) over and the UK is back in full throttle after the summer break And what a break itrsquos been at

File Queen HQ (wersquove taken the time to get our clients up and running with augustprojects as well as started our new Instagram feed filequeenadds)

With the start of the new learning year wersquore focused on the education of you lovely LPM readers ndash with our attention turning back to the General Data Protection Regulation You may remember that in our last LPM article we ran through the 12 steps to tackle the GDPR helped by the awesome people at the Information Commissionerrsquos Office ndash wersquove provided a link to their 12-step resource via our website wwwarchivestoragenetnewsgdpr

Over the next three columns wersquoll be taking these steps and breaking them down for you ndash starting with step one awareness The File Queen (myself) and the team at ADDS have been promoting this step as the most important for all legal practices

ldquoWhyrdquo we hear you holler Well this step is the all-important life raft that unites your practice and team members to help you in the GDPR fight for survival (dramatic I know)

Getting the team on board ndash this buy-in needs to include all ranks of staff ndash from the managing partners to your suppliers But how do you do this Well here are some File Queen tips for when we at ADDS are rolling out projects

Lunch and learn ndash with a register People love to eat and be social so get your legal business to book in a couple of lunch and learn sessions Donrsquot limit this to one date ndash you must run at least two or three so people have the option of which dates to attend Make sure you make a register for those that actually turn up (we all know a calendar acceptance doesnrsquot mean theyrsquoll actually appear) This will allow you to chase down the members of the team you need to get on board for the next one

Have some decent sandwiches nibbles and soft drinks and give the team an overview of the GDPR Run through the 12 steps and make sure you educate them on why everything is so important (make sure you mention the increased fines and audits) During this time let the team know that there are several steps along the way that yoursquoll need their help and support for and which you wonrsquot be able to achieve on your own Tell them that the businessrsquos reputation and brand is on the line and that you need everyone on board to lend a helping hand and spread the word

Another great File Queen tip at this stage is also to get some additional funding from the practice manager for a wine and quiz night at the end of the lunch and learn periods This can be part of your social gathering on a Friday straight after work ndash with some more nibbles and wine Assign people to teams and have a GDPR quiz The winning team gets an award and everyone has fun and learns at the same time Follow our twitter feed as wersquoll be tweeting some great questions to ask thefilequeen GDPRQUIZ

We know itrsquos a lot to organise but there are only four months left in 2016 and GDPR practices must be in place by 25 May 2018 And believe me when you have to roll out rather hard core legislation you have to make it fun and interactive to get people on board LPM

ABOUT

NATASHA RAWLEY THE FILE QUEEN

EDUCATING YOUR PROS

ADDSSaving firms from paper hellContact Natasha on0800 328 0272wwwarchivestoragenet

LEGAL PRACTICE MANAGEMENT28

SEPTEMBER 2016FEATURES

28

Patrick Wingrove talks to the founders of Proelium Law about their work providing legal advice in high-risk environments and conflict zones and the challenges of setting up shop in a new and risky area of law

Legal commandosProelium

Compared to the day-to-day lives of Proelium Law founders and partners Richard Stephens (above left) and Adrian Powell (centre) the average lawyer leads a pretty humdrum life Though UK-based the

firm has a strong international focus ndash Stephens and Powell regularly travel to provide legal and business advice to companies and individuals in high-risk professions or working in hazardous environments across the globe including conflict zones in Iraq Syria and Afghanistan Powell says that itrsquos a challenging but exciting area of law to be in and that ldquono two days are ever the samerdquo

The firm was established as an ABS in November 2015 allowing Powell and Stephens to operate as partners although Stephens isnrsquot a lawyer Powell qualified as a solicitor in 2004 after spending 11 years of his career in the British army and post-2006 worked on various high-risk projects around the world ndash giving him the inspiration for Proelium He says ldquoThe idea came to me in Baghdad in 2009 while working for a private security company as a legal adviser ndash I thought lsquoWhy isnrsquot there a firm doing thisrsquo But I soon realised that I needed someone on the ground who wasnrsquot a lawyer to help make it happenrdquo

That person was Stephens He previously served in the Royal Marines worked as a Whitehall-based strategic planner for the UK government and commanded a special operations regiment (which is why we couldnrsquot show you his face but itrsquos a nice issue of LPM) He now works primarily on the business development side of Proelium ldquoJoining Adrian who Irsquod previously worked with on projects around the

LAW FIRM PROFILE

LEGAL PRACTICE MANAGEMENT29

SEPTEMBER 2016FEATURES

world at a firm meant I could do fascinating and important work with the credibility that being a partner in a regulated business providesrdquo he says

Their work has certainly been interesting Proelium has cast its net far within the niche high-risk sector ndash advising UK-based service providers on the complexities of working in hostile environments conducting business and human rights due diligence and ensuring anti-money laundering counter terrorist-financing and anti-bribery compliance for companies intending to run in high-risk areas or conflict zones to name a few Recently theyrsquove also been working on developing capability for national intelligence organisations overseas ndash but for fear of being jailed for treason Stephens and Powell didnrsquot elaborate hellip

Powell says that the challenges companies face in these areas are numerous ldquoTherersquos a real technical knowledge in understanding how organisations physically work overseas These companies are good at what they do but that doesnrsquot necessarily translate into being business-savvy when it comes to operating in frontier markets ndash thatrsquos where Proelium adds valuerdquo For example after a client was recently exposed on an arms deal they were able to quickly discern liability and ensure that all necessary agencies and departments were appropriately informed

Powell and Stephens joke about how theyrsquore the number-one firm in their sector ndash admitting that to their knowledge theyrsquore the only firm that specialises in this area of law They added that itrsquos an untapped niche in which Proelium will be a pioneering force but which has also recently come onto the radar of a larger firm Theyrsquore alluding of course to Proeliumrsquos recent venture with Harrison Clark Rickerbys ndash a joining that combines Proeliumrsquos experience working in high-risk jurisdictions with the manpower and existing defence and security expertise of

HCR Powell says ldquoWhat they donrsquot have is our connections and our experience They like the idea of the sector because they see it as an interesting area and the partnership will allow us to offer a wealth of different legal services while letting us focus on what we do bestrdquo

As part of their ambitions for Proelium Powell and Stephens are keen to train a new generation of lawyers whorsquoll specialise in the high-risk sector ldquoWe have confidence in what the younger generation has to offer and we want them in our industry to continue our work in this relatively untapped areardquo says Powell Stephens adds that itrsquos also a matter of succession planning ldquoWe want the firm to operate long into the future but we donrsquot necessarily want to be running it ourselves for the next 20 yearsrdquo Proelium currently employs two interns as part of this commitment including University of Surrey law student Ruby Jamieson (pictured) She says ldquoWorking [at Proelium] has given me loads of insight already ndash itrsquos very niche

very new and Irsquove really enjoyed helping develop the business I feel that itrsquoll open a lot of doors when I graduaterdquo

In terms of expansion Proelium has recently opened a new office in the City of London Powell says that his home was originally the firmrsquos practising address but a large portion of their client-base is in London ldquoand we couldnrsquot keep having our meetings in coffee shopsrdquo

But Powell and Stephens are firm believers in the concept of remote working which works particularly well for their business

ldquoMost of our clients are either in London or outside the EU so Irsquom always away but all my phone calls are redirected from the new office to my mobile so I can keep in touch with clients whether Irsquom in Dubai or Baghdadrdquo says Stephens Powell adds that he feels remote working has the added benefit of keeping staff happy by letting them work from home which he says certainly makes him more productive as a fee earner

Proelium isnrsquot looking to expand into areas it has no interest in like family law but theyrsquore taking a keen interest in the emerging area of cyber law and are considering taking steps into that world ldquoLike high-risk law no onersquos really wrapped their arms around cyber law yet Therersquos cyber law in the US but it doesnrsquot exist per se in the UK except in terms of data protectionrdquo

When asked what advice they could give to SME firms based on their unique experiences in their sector Powell and Stephens said firms should know the areas of law they practise inside and out Powell says ldquoWersquore concerned with being experts in our field ndash a lot of our clients have peoplersquos lives in their hands and are not in the business of nonsense which is why they come to us We give sound researched legal advice based on experience and if we donrsquot know something we send the client to someone who doesrdquo LPM

ldquoCompanies are good at what they do but that doesnrsquot necessarily translate into being business-savvy when it comes to operating in frontier markets ndash thatrsquos where Proelium adds valuerdquo

Proelium

Two fee earners four total staff

Offices City of London Wirral Cheltenham

Specialisms International criminal commercial and conflict law due diligence sensitive investigations

LPM FACT FILE

ldquod2u is the UKrsquos number one outsourced transcription service for medical and legal professionals and highly competitive all over the world We pride ourselves on saving our clients time and money as well as offering state-of-the-art security and a first-rate servicerdquo Daryl Leigh CEO dictate2us

LPM magazine has agreed a special deal for its readers with dictate2us ndash 5 off your monthly

transcription bill for one year if you sign up through the dedicated LPM link or call and quote LPM2016 when signing up You can trial the service for free before committing

CUT COSTS INCREASE EFFICIENCYAll firms could benefit from outsourcing transcription to dictate2us ndash but even more so with our LPM deal 5 off your first year

wwwdictate2uscomlpm

Use d2u and enjoy the benefits ofbull Fast turnaround timesbull Secure and confidential servicebull Secetarial cost reductions of up to 60bull Guaranteed 985 minimum accuracybull iPhone Android and Blackberry apps with one-hour turnaroundbull 100 output - only pay for the time you talkbull Free no obligation trial

This special LPM magazine reader deal only relates to customers that execute an agreement for a minimum term of 12 months with a minimum monthly commitment of 500 minutes LPM magazine sought two law firm references for dictate2us to verify its claims for quality and delivery The 5 deal only applies to the first paying year the customer is with dictate2us LPM magazine is not responsible or liable in any way for work done by dictate2us and is an advertising referrer only

d u2 dic t a t e 2 u s

SPECIAL READER OFFER

The d2u Transcriber app is free to download from Apple and Android app stores and BlackBerry App World

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WHEN CALLING

LPMLEGAL PRACTICE MANAGEMENT

LPMLEGAL PRACTICE MANAGEMENT

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LEGAL PRACTICE MANAGEMENT31

SEPTEMBER 2016FEATURES

Patrick Wingrove speaks to management leaders from SME and top 100 law firms that have recently achieved significant growth to find out how to go from acorn to oak tree

FROM MINNOW TO

For many SME firms growth is the goal ndash but it doesnrsquot have to happen in the ways that many have scaled in the past The era of organic slow quiet steady partnership development over decades is

increasingly at odds with a fast-paced digital world Strategies for growth in the legal market are now closer than ever to the rest of the business world ndash and any size firm can learn how to do it

Big or small there are similar tools in the box for making growth happen and similar challenges Lessons abound but some of the best can be taken from those firms not far outside the famous lsquotop 100rsquo legal businesses in the land ndash those that have already grown up and now have the top tier in their sights There are also lessons to draw from smaller but rapidly scaling law firms

There are many growth strategies for organic and acquisitive growth ndash and no easy answer for which is right for your firm To shine a light on the subject wersquove spoken both to SME and top 100 firms about growth and how to do it (and importantly how not to do it)

MAMMOTH

LEGAL PRACTICE MANAGEMENT32

SEPTEMBER 2016FEATURES

MODELS OF GROWTH According to the Lawyer the two fastest growing firms in the top 200 this year are Midlands-based Knights and lsquodistributedrsquo firm Keystone Law ndash currently placed 119 and 122 in the 2015 UK 200 rankings but whose revenue will now put them well inside the 2016 top 100 (due for release October 2016) Both attribute their growth to non-traditional business models ndash and very different non-traditional models at that

Knights corporatised in 2014 to remove the barriers from its decision making processes which CEO David Beech says has been the key to its growth ldquoEquity partnerships donrsquot grow particularly quickly because itrsquos hard to achieve consensus and make decisions that enable fundamental or rapid growth among equity partnersrdquo

Knights acquired Oxford-based Darbys earlier this year ndash a move largely behind the revenue increase that will put them in the top 100 ndash and completed the transition inside three months which Beech says would have been next to impossible under their old business structure ldquoNot only was a quick turnaround good for the books it saved significant time and money that could be invested elsewhere in the businessrdquo he says

Top 100 firm Simpson Millar is one step

ahead of Knights The firm broke the glass ceiling to become a top 100 firm in 2015 and like Knights the firm attributes its growing success to corporatisation ndash but in a different manner

It sought to be and was eventually acquired by PLC Fairpoint Group in 2014 Simpson Millar continues to run as an LLP under the same management team and existing trading brands but as a business unit within Fairpoint

Managing partner Peter Watson says that one of the key reasons to pursue this particular growth strategy was to provide an injection of capital for MampA ldquoWe completed the sizeable acquisition of Colemans last year for example which we were only able to do with considerable investment from Fairpointrdquo

Being part of a PLC has also given the firm access to strong MampA and project management capabilities ldquoAcquiring Colemans doubled the business overnight ndash for something like that you need strong MampA experience and access to that team within Fairpoint was crucial in getting the deal across the linerdquo says Watson Simpson Millar also built a strong digital strategy launched new products and focused on pricing ldquoCall it fixed fees or packaged fees the point of it was to say to consumers

Square One Law

Revenue pound5m

31 fee earners 53 total staff

Offices Newcastle-upon-Tyne

Specialisms Commercial corporate property employment EU and competition law finance litigation private client

LPM FACT FILE

Knights

Revenue pound40m (year end 2017)

375 fee earners 450 total staff

Offices Chester Cheltenham Newcastle-under-Lyme Derby Oxford Hale

Specialisms Full service firm

LPM FACT FILE

LEGAL PRACTICE MANAGEMENT33

SEPTEMBER 2016FEATURES

lsquoWith us you know exactly what yoursquoll get and how much itrsquoll costrsquordquo

PEOPLE PLEASERSThe ability to implement change has also been an important part of delivering a growth strategy This isnrsquot necessarily surprising ndash polling at the 2016 Legal Practice Management conference showed that legal business managers thought it was one of the greatest hurdles to a firmrsquos growth or success only topped by acquiring high-quality staff In Knightsrsquo case the two challenges were addressed together Beech says Knightsrsquo corporate rather than partnership structure also allows it to recruit talented people without having to deal with the inherent politics of an equity partnership

ldquoAcquiring the best talent has been a central part of our growth strategy ndash if a candidate can help the business through expertise or client following we can just recruit themrdquo he added

But a successful growth strategy incorporating talent isnrsquot just about recruiting quickly as we analysed in the July 2016 issue of LPM ndash itrsquos about recruiting well Firms also need to make themselves an attractive prospect for legal talent in order to grow

William Robins operations director at Keystone Law says his firmrsquos lsquodispersedrsquo model allows it to do that by offering new fee earners the chance to work remotely with less supervision ldquoWersquore typically hiring about a lawyer a week ndash bringing their expertise fee-earning capability and client following with them ndash and that is the core part of our growth strategyrdquo The firm has buttressed its recruitment capability by hiring a director of recruitment to focus almost entirely on lawyer enrolment (recruiting talent to recruit talent ndash neat)

Though the distributed model may not be for everyone says Robins implementing some form of flexible mobile or remote working should be part of any firmrsquos growth strategy because it allows firms to increase their fee-earning capability without accruing fixed overheads such as office premises

And there are other ways to be talent-attractive As a core part of its growth strategy Newcastle-based firm Square One Law ndash which achieved 30 growth in the

last financial year ndash has pledged to create a supportive and inspirational team environment offering high-calibre work to attract the best talent Ian Gilthorpe senior partner at Square One says ldquoGood people want to be inspired to be valued for what they do and feel as though theyrsquore making a contribution The key is to engage with all your staff to facilitate a culture where staff feel happy at work work for each other trust each other and ensure that they see the value in what they do ndash if you do that more talent will comerdquo

He added that itrsquos important for

recruitment to convey staff satisfaction to the outside world which Square One has achieved by including staff video-testimonials on its website

But recruiting is only half of an effective people strategy ndash the other is retention Simpson Millar has attempted to create an environment that its talented staff wonrsquot want to leave Says Watson ldquoToo many firms worry about what will happen if their rainmaker goes somewhere else and takes clients with them ndash so they put the shackles on make them feel unhappy and make it so that they canrsquot realise their full potentialrdquo Creating such an environment makes firms an attractive target for lateral hires when they should be building a place people want to join

PRACTICE AREASSME legal businesses donrsquot necessarily need to change their business models completely to achieve the same growth as

Thorntons

Revenue pound20m

209 fee earners 430 total staff

Offices Dundee Edinburgh St Andrews Perth Cupcar Kirkcaldy Anstruther Arbroath Montrose Forfar

Specialisms Full service firm

Keystone

Revenue pound202m

198 fee earners 230 total staff

Offices London Bristol Isle of Man Australia

Specialisms Corporate and commercial dispute resolution property

LPM FACT FILE

LPM FACT FILE

Equity partnerships donrsquot grow particularly quickly because itrsquos hard to achieve consensus and make decisions that enable fundamental or rapid growth among equity partners David Beech CEO Knights

Simpson Millar

Revenue pound316m

322 fee earners 539 total staff

Offices Birmingham Bristol Cardiff Cheadle Hulme Gateshead Kingston-upon-Thames Lancaster Leeds Park Place Leeds St Pauls Street (head office) London Manchester Newcastle

Specialisms Full service firm

LPM FACT FILE

LEGAL PRACTICE MANAGEMENT34

SEPTEMBER 2016FEATURES

our examples but removing blockers from decision-making making themselves more attractive to talent and finding the right funding for growth are increasingly important and the partnership structure may not enable it

But of course that means asking some turkeys to vote in a Yuletide election Fortunately there are other ways to achieve impressive growth mainly investment andor expansion into new geographic or practice areas

Watson says that Simpson Millar wouldnrsquot have been an attractive prospect to Fairpoint had the firm not spent time growing organically by expanding into new areas of law

ldquoWe went from being a predominantly trade union PI firm to having a broad base of 16 types of work ndash with strong heads in charge of each committed to driving growth in their departments ndash which gave us a large boost in revenuerdquo The firm achieved this through small acquisitions of other firms that had expertise in particularly lucrative areas of law

But firms shouldnrsquot just look at expanding in lucrative areas ndash they should focus on areas where their reputations deliver an advantage Scotlandrsquos Thorntons for example ndash which last year leapt from 134 to 108 in the 2015 UK 200 rankings ndash invested in six departments as part of its growth strategy

Thorntons joint managing partner Scott Milne says ldquoWe didnrsquot exclude other areas but we saw that these areas were profitable and that more importantly we had considerable expertise in them ndash we also considered that these are areas that are unlikely to be affected by future economic downturnrdquo This included investing in niche areas of law where the firm has a geographic competitive advantage ldquoWersquore lucky to be surrounded by some of the best farmland in the UK ndash wersquore well known for our expertise in rural business law which is why we invested heavily in itrdquo

ORGANIC V ACQUISITIONIn several ways choosing an effective growth strategy very much boils down to MampA versus organic growth ndash every business model talent or area expansion strategy appears to revolve around one or both But which is the best to achieve the kind of growth thatrsquoll propel firms to a lsquohockey stickrsquo on their revenue forecasts The short answer is it depends on whatrsquos best for a firm at a given time It either

needs to fit the firm ndash or the firm needs to change to fit the goal

Beech says that acquisition has been excellent for Knights because itrsquos a fast and effective form of expansion ndash the acquisition of Darbys more than doubled its revenue But MampA poses a significant challenge to finding firms with the right cultural fit

ldquoFirms need to establish a single culture in order to implement growth ndash everyone needs to be working towards the same goalrdquo He added that when a firm completes a merger or acquisition that firm has to be integrated from day one which is much more difficult if it has a significantly different culture Knights is planning to continue recruiting and complete more acquisitions in the next year to maintain the growth curve

Of course the big problem with acquisition is money Robins at Keystone says his firm lies at the opposite end of this

INFORMATION IS EMPOWERING

Lemington Spa-based firm Wright Hassall has a specific goal of breaking into the top 100 and as part of its growth strategy expanded into areas of the UK where its expertise is highly sought after ndash using customer relationship management in the background to underpin the firmrsquos activities in specific areas Martyn Wells IT director at the firm says ldquoWersquove zoomed in on specific industry sectors that we know are performing well in the Midlands sectors where we have a superb reputationrdquo Expanding geographically as Wells outlines needs data to get right Thorntons for example identified various lsquomicro-marketsrsquo in Scotland close to its base of operations ldquoWe acquired a firm in St Andrews because itrsquos like a micro-economy (or micro-market) that doesnrsquot seem to be affected by price drops in the residential market elsewhererdquo says Thorntons joint managing partner Scott Milne Knights has another take on the geographic targeting idea ndash it intends to stay out of the large cities (London Manchester Leeds for example) and expand into areas where there is little competition As David Beech CEO at Knights explains ldquoLast September we acquired a small team in Chester of about 11 lawyers and now thatrsquos expanded to just over 70 ndash and the main reason wersquove been able to do that is because there isnrsquot a lot of competition thererdquoUltimately this all comes down to research finding out what to invest in or where to expand and perhaps most importantly finding out what clients want

LEGAL PRACTICE MANAGEMENT35

SEPTEMBER 2016FEATURES

spectrum to the way Knights has grown emphasising organic growth finding innovative means to attract talent using technology to drive efficiency and branching out into new areas of law or new markets to achieve significant growth

Square One Law also espouses the organic route ndash believing that firms with growth in mind should focus on ensuring their external brand reflects the businessrsquos internal culture and behaviours of its team creating lsquosynergyrsquo between the business and its clients

Gilthorpe says ldquoMergers ndash and there is no such thing as a true merger ndash and acquisitions can be a distraction as you look to create a new culture and separate the wheat from the chaff and this can soak up a lot of energy that would otherwise be put to use in driving the progression of the business and the focus on client servicerdquo

The best option for some firms may be a

calculated combination of MampA and organic Thorntons for example having made several acquisitions is now focusing on organic growth moving away from geographical expansion and towards developing locations and its brand

Watson at Simpson Millar sums the mixed approach up thus ldquoItrsquos a mixture Acquisition is still very much a part of the mix but in parallel to that itrsquos important to demonstrate that yoursquore developing ongoing work rather than being driven solely by acquisitionrdquo

There are clearly many different ways to achieve healthy and assertive growth though there are no easy answers as to which way is right for your firm But it is clear that growth doesnrsquot have to happen in the ways many have previously achieved it ndash innovation and lateral thinking are the means of achieving significant growth (which might one day propel you into the top 100 you never know) LPM

LEGAL PRACTICE MANAGEMENT36

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

INDUSTRY VIEWS

36LEGAL PRACTICE MANAGEMENT

Legal is becoming an ever more digital industry giving firms the chance to become more efficient flexible agile and collaborative

INDUSTRY VIEWS INDEX

ONLINEOFFICES

36

SPONSORED EDITORIAL

INDUSTRY VIEWS

37 INTERVIEW

Paperless processLinetimersquos Tony Klejnow explains the benefits of using matter management software for law firms and their clients

39 INTERVIEW

Virtual expansionNigel Redwood Nasstarrsquos CEO talks about the advantages of having a managed flexible IT infrastructure

LEGAL PRACTICE MANAGEMENT37

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT37

Competition and price pressures and an increasingly digital client base are all significant drivers for law firms to become paperless

businesses Tony Klejnow Linetimersquos managing director says firms could achieve competitive advantage by introducing paperless solutions across their businesses ndash but a particular lsquoeasy winrsquo area is matter management

ldquoFee earners are required to keep detailed records of their cases but the amount of time and money they waste physically printing filing looking for collaborating on and updating files is alarmingrdquo says Klejnow Law firms have traditionally been reluctant to adopt paperless

workflow solutions he adds because workflow doesnrsquot apply to 99 of fee earnersrsquo work ldquoBut if they adopted paperless solutions in their back office processes they could reduce costs without affecting client service boost productivity and promote collaboration ndash making them more efficient flexible and cost effective and making them more competitive in an ever-changing legal marketrdquo

MATTER MATTERSDocument and matter management tools ndash like those in Linetimersquos legal software product Liberate ndash electronically store and organise all case documentation in an online database Klejnow says that there are two immediate benefits of paperless matter

PAPERLESS PROCESS

Tony Klejnow managing director at Linetime talks to LPM about the benefits of the paperless office ndash starting with filing and back office processes

INDUSTRY VIEWS

Linetime is a specialist provider of Microsoft-based practice and case management solutions Clients include mid-tier law firms and in-house legal departmentswwwlinetimecouk

ABOUT THE SPONSOR

SPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT38

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT 38

management The first is reducing paper and storage costs

ldquoIf case documentation is electronically stored once a case is finished you no longer have a five-inches-thick file that has to be stored for six years ndash which has to reside somewhere and costs firms time space and moneyrdquo The second is eliminating filing time ndash for example instead of printing and filing emails and attachments fee earners drag and drop emails directly from Outlook into the database ldquoand attachments are automatically stripped from emails and appropriately filedrdquo says Klejnow

And Klejnow says paperless filing systems donrsquot just facilitate efficiency this way ndash they also improve general process efficiency by facilitating collaboration between fee earners Solicitors can use document and matter management to view and work on matters at the same time a difficult if not impossible prospect when working with paper files Klejnow says ldquoWithout document management legal professionals work in silos but with it they immediately share datardquo He adds that Liberate has an additional collaboration tool to help further improve collaborative efficiency in firms ldquoIf I choose to lsquocollaboratersquo a document with you on Liberate Outlook will prompt you to review that document by simply acknowledging the notificationrdquo

In this respect moving to become a paperless business provides greater flexibility for fee earners who can collaborate with colleagues working remotely or in different offices Klejnow says ldquoPaper files can only reside in one location but electronic files can be accessed from any office and when working from home or with clientsrdquo On the other side of the coin having digital files maintains a greater level of productivity in a law firm office ldquoIf your colleague is absent from the office you can easily find documents that you might have otherwise wasted a significant portion of your day looking forrdquo he adds

Improved external collaboration is also a benefit that firms can reap from paperless matter management With an electronic system you can go into a case history bundle documents into one PDF file and quickly submit that to the third party improving collaboration between fee earners and clients who want to do everything online This has the added benefit of improving accuracy and facilitating greater efficiency by involving clients in the process ldquoGood matter management software should also let you push e-forms to clients to be filled in and that information is automatically transferred straight to the online database ndash which saves fee earners

time and is a more accurate because the information doesnrsquot have to be constantly re-enteredrdquo says Klejnow

This extra level of collaboration within legal businesses that hasnrsquot been possible until now has long been needed because it improves efficiency and productivity which makes the business more profitable and competitive Klejnow adds that what firms save by adopting matter management they should reinvest in becoming fully paperless digital businesses

ldquoCase management solutions can improve efficiency to an even greater extent and keep firms competitive in the age of the alternative business structuresrdquo

VISIBLE COMPLIANCEIn response to firms reluctant to adopt paperless technologies like document and matter management for fear of losing delicate information to cybercriminals Klejnow says those systems provide an additional level of security ldquoTaking data and attachments out of Outlook and storing them on a database is much more secure than leaving them on your hard drive If you leave

your laptop on a train for example all your important data is safely stored on a server and not instantly accessible by opportunist criminalsrdquo

Document and matter management also offers a greater level of security in fee earner and client communications ldquoIf I want you to check that the data we have for you is accurate Liberate will

direct you to a page holding your data and at the same time it will push out an SMS text with a pin code to your phone Unless you input the code you canrsquot get to the web page ndash which means if one of your solicitors accidentally sends an email to the wrong person or itrsquos intercepted it doesnrsquot matter The data stays safe ndash this level of security is crucial in this age of cybercrimerdquo

These security features clearly have significant benefits for compliance which is important in a market increasingly dictated by regulation including the relatively new General Data Protection Regulation says Klejnow

ldquoCompliance officers need to be seen by regulators to have monitored and reviewed everything thatrsquos happened in their firm which is considerably easier with a paperless system Liberate has lsquoversion controlrsquo which allows compliance officers to keep tabs on every change made to a document as well as a compliance module which lets them view whatrsquos happening on a case (to ensure that money laundering checks have been carried out and so on) and records the fact that yoursquove reviewed thisrdquo LPM

Without document management legal professionals work in silos but with it they immediately share data

INTERVIEW

LEGAL PRACTICE MANAGEMENT39

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LPM readers may already know the Nasstar Group ndash but by a different name Nasstar was launched by regular LPM-contributor e-knownet to consolidate four discrete hosted

managed IT businesses (including e-knownet) after a period of significant acquisition Nigel Redwood chief executive officer at Nasstar says merger and acquisition and consolidating brands is challenging but having a flexible hosted IT infrastructure makes the process significantly easier

ldquoManaged IT services are enormously beneficial for firms that are expanding or consolidating particularly after MampA in terms of time and productivity cost savings and flexibilityrdquo He adds that by just having managed desktops firms can attain competitive advantage by reducing overheads and becoming more flexible and agile

Nasstar has experience helping SME firms with their IT systems after MampA and knows what problems to look out for creating unity among staff used to using different systems and processes the cost and time it takes to expand an IT infrastructure and the geographic distance between new offices

Redwood says that MampA can be an excellent way for legal businesses to expand into new sectors but that consolidating new departments using different IT systems and processes is challenging

ldquoOur acquisitions for example introduced new sector focuses for us in the SME legal market ndash wersquove consolidated these into a wider service base under Nasstar and facilitated unity among staff using virtual IT solutions

rdquoVirtual IT solutions help facilitate unity across the business by providing a level of consistency in an IT infrastructure Everyone immediately uses the same applications on the same versions from wherever theyrsquore working creating unity faster collaboration across teams and effective information sharingrdquo Hosted IT infrastructures are also continually updated giving staff instant access to new updates applications and technologies as they become available

The next significant challenge firms face after MampA is expanding their IT infrastructure to accommodate an influx of new staff ndash but Redwood says virtual IT solutions let firms expand their IT infrastructure at the flick of a switch

ldquoWith virtual IT firms arenrsquot held back by the size of their servers or the amount of computer power theyrsquove got ndash they simply call their IT provider and ask for an upgrade when previously theyrsquod have been

subject to lengthy and costly IT upgradesrdquo Virtual IT solutions are also easy to budget for

Redwood says ldquoYoursquore not going to be surprised by an increased fixed asset expenditure ndash services like those offered by Nasstar are an operational cost and fixed per user per month through a scalable cost modelrdquo

Geographic distance inhibiting collaboration between merged offices is also a key consideration for firms after MampA but virtual IT solutions solve this problem Redwood says a virtual IT infrastructure can minimise travel through the use of hosted virtual meeting rooms and video technology Staff can use this technology from virtually anywhere which is why it also lends itself well to remote flexible or mobile working set-ups

VIRTUAL WORKPLACERemote working is becoming an increasingly present feature of the legal landscape because of its cost saving and recruitment and retention advantages ndash the majority of firms at the LPM conference 2016 were moving towards a flexible remote or mobile working set-up or already had one

Redwood says virtual IT solutions better enable staff who work remotely ldquoHosted managed desktop solutions for example let staff work with the same applications from any device in the world safely and securelyrdquo

But remote working isnrsquot only about enabling the current workforce itrsquos about attracting future talent Redwood says that millennials donrsquot necessarily want to work as their predecessors did ndash they expect greater flexibility in the workplace which at one level can be achieved by remote working facilitated by a managed desktop

ldquoAnd itrsquos not only about attracting millennialsrdquo he says ldquoSME firms with flexible working set-ups are becoming more attractive to experienced legal talent who may be frustrated by the rigidity of their firmrdquo As a firm expands its workforce in this manner firms with virtual IT solutions reap the lsquodoublersquo cost saving benefits of not having to expand their premises or IT infrastructure accordingly

Some firms are resistant to remote working based on hosted IT services believing they arenrsquot secure ndash but Redwood says that argument ldquocan be put to bedrdquo

ldquoFor an in-house IT team to have the level of security that an organisation like ours can deliver is near impossible financially as well as in terms of the

VIRTUALSANITYNigel Redwood CEO at Nasstar talks to LPM about how managed IT can help SME firms achieve competitive advantage by making them more agile and flexible

LEGAL PRACTICE MANAGEMENT40

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

INTERVIEW

level of systems and technologies they deployrdquo Cybercrime is of course a scary and constantly evolving threat but Redwood points out that virtual IT systems have dedicated teams monitoring these threats evolving cyber defences and changing systems accordingly

ldquoThis capability not only makes [firms] a lot more secure but gives peace of mind in terms of compliancerdquo

ONLINE ADVANTAGE Redwood says virtual IT infrastructures donrsquot just pertain to lsquobig lawrsquo but to SME firms as well ndash perhaps more so

ldquoVirtual IT systems are a way for SME firms to stay competitive against their larger

counterparts and ABSs ndash it gives them a greater ability to expand it lets them adopt more flexible and agile models and is easy to budget forrdquo Firms can also expect virtual IT solutions to enable better alignment of IT resources to business needs enhanced usability with anywhere anytime access and in-built business continuity

But the greatest advantage virtual IT offers SME firms over big law is agility Redwood says ldquoBig IT departments in firms can be slow to react cumbersome and held back by the limitations of hardware infrastructure and security issues ndash all of that is removed with a solution like ours and the customer has access to fast-moving agile ITrdquo LPM

ABOUT THE SPONSOR

Nasstar is a provider of managed IT services and tailor-made cloud hosted solutions ndash delivering innovative secure and agile IT to help clients accomplish their business objectiveswwwnasstarcom

Page 21: LPM September 2016

LEGAL PRACTICE MANAGEMENT22

SEPTEMBER 2016LPM INSIGHTS

SME law firms are in a battle for survival Whether they know it or not they have huge challenges to face in the next few years ndash around succession planning technology replacing lawyers and being

used by competitors to attain a competitive edge and catering to clients who increasingly want cost predictability transparency and availability

These market pressures were addressed at the LPM conference in May 2016 which was attended by over 100 delegates all SME legal management leaders The delegates were polled on the day about what they thought of the pressures facing them and how theyrsquore planning to overcome them ndash and their answers provide valuable insight into the SME legal market

The polling results show that LPM conference delegates were aware of the severity of the challenges they face Three-quarters of legal management leaders we polled at the 2016 LPM conference thought that the challenges theyrsquoll face in the next five to 10 years will be lsquomorersquo or lsquomuch morersquo serious than in past years And 58 of delegates thought that the challenges in the next year to two years will be lsquomore serious than in past yearsrsquo

How they will face these challenges depends at least partly on attitude ndash whether they believe they can win or will eventually lose the war Fortunately most LPM conference delegates were optimistic about their firmsrsquo futures - 81 were either lsquocautiouslyrsquo or lsquoveryrsquo optimistic about their place in the legal market of the future

This doesnrsquot necessarily suggest that theyrsquore confident in the market overall particularly after the market instability brought by Brexit Legal management leaders might believe their firm is the only one thatrsquoll survive due to expertise in a particular area or niche In any case it indicates market confidence and a confidence in the ability of their firm to compete and succeed

But is this optimism misplaced in a market where the future is increasingly uncertain and competitive Are firms really ready for change on a huge scale as their confidence might suggest What are the issues currently keeping SME legal leaders awake at night

In this report LPM shines a light on the SME legal market through the eyes of our legal management leader audience ndash those driving their firms through an uncertain new world

WHATrsquoS NEXTChange is on the agenda for LPM firms but how to address the biggest challenges and which ones to face first is a tough call finds Patrick Wingrove

More serious than in past yearsMuch more serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch less serious than in past years

51

14

8

3

24

More serious than in past yearsMuch more serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch less serious than in past years

How would you rate the challenges your firm faces in the next five to 10 years

More serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch more serious than in past yearsMuch less serious than in past years

58

17

6

0

19

More serious than in past yearsSimilar to past yearsLess serious than in past yearsMuch more serious than in past yearsMuch less serious than in past years

How would you rate the challenges your firm faces in the next year to two years

What is the greatest hurdle to your firmrsquos growth or further success

What is the greatest hurdle to your firmrsquos growth or further success

LEGAL PRACTICE MANAGEMENT23

SEPTEMBER 2016LPM INSIGHTS

TIMES THEY ARE A CHANGINrsquo The overriding theme of the 2016 LPM conference was change ndash how firms can implement it the drivers behind it and the various blockers to it But the first step to change is gauging which factors will have the biggest impact on the legal market Just over half of legal management leaders we polled thought client pressures on cost like demanding fixed fees will have the biggest impact while just over a quarter thought it will be competitors attaining a market advantage using technology

How quickly do firms need to respond to these oncoming market pressures Well 86 of LPM conference delegates thought that change needs to happen in their firms within the next two to five years But 14 said that their firm doesnrsquot need to change significantly perhaps because theyrsquove beaten the rest to the punch their legal business is somehow immune to new pressures ndash or they have their heads in the sand

Legal has traditionally been resistant to change and itrsquos not surprising that some firms still are says Sean Stuttaford COO at Essex firm Thompson Smith and Puxon (TSP) and 2016 LPM conference delegate ldquoThere are still firms out there where partners donrsquot have computers on their desks ndash theyrsquore stuck in their ways and just point blank refuse to

52 26 5 12 5

develop their business for the futurerdquoBut legal management leaders willing to implement

change may still find it difficult as 60 of LPM conference delegates polled thought that lsquochange isnrsquot really understood at their firmrsquo

GROWING PAINSJust over a quarter of LPM conference delegates also thought that an inability to create change within their firm would be the greatest hurdle to the businessrsquos growth or further success ndash though Stuttaford at TSP suggests voters might have blamed the traditional partnership business model for the same reason

But acquiring high-quality staff was considered to be the greatest hurdle for growth or success by 36 of delegates Rebecca Patterson HR manager at Kent firm Thackray Williams and 2016 LPM conference delegate says that she agrees with this result ldquoOur firm has a particularly tough time finding quality support staff ndash we could perhaps stand to invest more in competency frameworks and performance management and training opportunities to aid recruitment and retentionrdquo

William Robins operations director at lsquodistributedrsquo firm Keystone Law and a 2016 LPM conference speaker says

12 36 27 13 12

Lack of fundsAcquiring high-quality staffInability to create change within the firmTechnologyThe traditional partnership business model

Out of these which factor is having the biggest impact on the SME legal market

Client pressures on cost (eg fixed fees)Technology creating advantage for competitorsConsolidationDifficulty in finding routes to growth (eg funding)Something else

What is the greatest hurdle to your firmrsquos growth or further success

LEGAL PRACTICE MANAGEMENT24

SEPTEMBER 2016LPM INSIGHTS

offering a more flexible remote or mobile working set-up for everyone in a firm is an excellent way to attract talent (Keystonersquos model of course is founded on remote working) Perhaps the majority of legal management leaders polled at the 2016 LPM conference agree since their firms have either adopted a flexible remote or mobile working set-up are planning to adopt one or are considering adopting one ndash though there are other advantages to remote working such as reducing overheads In any case the results indicate that the SME legal working landscape is becoming considerably more flexible

But remote working doesnrsquot work for everyone Mary Mocklow CEO at West Midlands firm Talbots Law and 2016 LPM conference delegate says that their high-street set-up wouldnrsquot allow it ldquoThe majority of our staff are client-facing and need to be present at the office ndash and while there are other staff at Talbots that might benefit from remote working you canrsquot have a policy for one and not for allrdquo

CYBER THREATSTechnology was clearly a significant concern for legal management leaders who attended the 2016 LPM conference Patterson at Thackray Williams says some firms have had a hard time finding software that caters to their needs as a business and an LPM conference poll seems to back this up just under half of legal management leaders polled at the conference thought project teams should write law firm software indicating a desire for cross-department input into its creation But the poll also indicates that legal software providers have to a large extent been meeting their clientsrsquo needs

The rising threat of cybercrime was also a clear concern for LPM conference delegates ndash 92 of SME legal management leaders said their firms have cyber risk on their management meeting agendas Stuttaford at TSP says ldquoItrsquos something firms need to be constantly aware of and take precautions against not just by purchasing good firewall and antivirus software but by educating staff about password discipline authentication processes and suchrdquo

32 18 14 33 3

Is cyber risk on your management meeting agenda

92

5 3

Yes No Dont know

Is your firm moving to a more flexible workingremote or mobile working set-up for everyone in it

YesNoConsidering itWe already do itDont know

LEGAL PRACTICE MANAGEMENT25

SEPTEMBER 2016LPM INSIGHTS

PRESSURES AND PRICINGClient pressures on cost was also a major concern for legal management leaders polled at the conference so it may not be surprising that just over half of them said 50 or more of their firmrsquos work is some form of fixed fee This doesnrsquot necessarily suggest that the other half arenrsquot open to the concept of fixed fee ndash Mocklow at Talbots points out that fixed fees work for certain types of work ldquoHigh-street firms like Talbots can benefit greatly from fixed fees which is why 75 of our work is fixed fee but itrsquos more difficult to apply to firms that specialise in something like admiralty lawrdquo

The industry seems to think that the value of service has been lost to the price obsession in some areas but not in others ndash and while pricing is clearly a vital issue for SME firms 88 of legal management leaders polled at the LPM conference thought that itrsquos lsquoone of a range of important factorsrsquo or lsquonot as important as other thingsrsquo Patterson at Thackray Williams says that maintaining a good relationship with clients is often more important than pricing though pricing can be a means to achieving client satisfaction ldquoIt also depends on the client ndash in something like conveyancing first-time buyers might be looking for fixed fees or the cheapest price but for commercial clients that may not be as important as reputation or relationshiprdquo

TREASURE MAPPINGLegal process mapping often used by lsquobig lawrsquo and making inroads into SME legal could potentially make SME firms a great deal more efficient and therefore more competitive Two-thirds of legal management leaders polled had heard of process mapping and 79 thought that it is relevant to the business of law Stuttaford at TSP says he agrees ldquoFirms should look at their processes learn from them and figure out how to improve those processes ndash this question really made us look at what TSP has done so far in terms of what legal processes wersquove mapped and whenrdquo

To sum up LPM conference delegates were aware of the challenges that face them but were mostly optimistic nonetheless This may be because they know they need to change and in spite of the fact that change isnrsquot really understood at their firms are planning to mend their ways to meet future market pressures ndash generally putting the client first while keeping talent and technology high on their agendas LPM

Are aware of this thing called legal process mapping

66

34

Has the value of service been lost to the price obsession

23

23

54

Yes No Depends on the service Dont know

Yes No

How important is price in winning business

8

4

67

21

CriticalMore important than almost all factorsIts one of a range of important factorsNot as important as other things such as relationshipsIts one of the less important things in reality

What is the greatest hurdle to your firmrsquos Are aware of this thing called legal process mapping

LEGAL PRACTICE MANAGEMENT27

SEPTEMBER 2016COLUMNSSPONSORED EDITORIAL

Welcome back LPM readers ndash the new school term has started summer is (pretty much) over and the UK is back in full throttle after the summer break And what a break itrsquos been at

File Queen HQ (wersquove taken the time to get our clients up and running with augustprojects as well as started our new Instagram feed filequeenadds)

With the start of the new learning year wersquore focused on the education of you lovely LPM readers ndash with our attention turning back to the General Data Protection Regulation You may remember that in our last LPM article we ran through the 12 steps to tackle the GDPR helped by the awesome people at the Information Commissionerrsquos Office ndash wersquove provided a link to their 12-step resource via our website wwwarchivestoragenetnewsgdpr

Over the next three columns wersquoll be taking these steps and breaking them down for you ndash starting with step one awareness The File Queen (myself) and the team at ADDS have been promoting this step as the most important for all legal practices

ldquoWhyrdquo we hear you holler Well this step is the all-important life raft that unites your practice and team members to help you in the GDPR fight for survival (dramatic I know)

Getting the team on board ndash this buy-in needs to include all ranks of staff ndash from the managing partners to your suppliers But how do you do this Well here are some File Queen tips for when we at ADDS are rolling out projects

Lunch and learn ndash with a register People love to eat and be social so get your legal business to book in a couple of lunch and learn sessions Donrsquot limit this to one date ndash you must run at least two or three so people have the option of which dates to attend Make sure you make a register for those that actually turn up (we all know a calendar acceptance doesnrsquot mean theyrsquoll actually appear) This will allow you to chase down the members of the team you need to get on board for the next one

Have some decent sandwiches nibbles and soft drinks and give the team an overview of the GDPR Run through the 12 steps and make sure you educate them on why everything is so important (make sure you mention the increased fines and audits) During this time let the team know that there are several steps along the way that yoursquoll need their help and support for and which you wonrsquot be able to achieve on your own Tell them that the businessrsquos reputation and brand is on the line and that you need everyone on board to lend a helping hand and spread the word

Another great File Queen tip at this stage is also to get some additional funding from the practice manager for a wine and quiz night at the end of the lunch and learn periods This can be part of your social gathering on a Friday straight after work ndash with some more nibbles and wine Assign people to teams and have a GDPR quiz The winning team gets an award and everyone has fun and learns at the same time Follow our twitter feed as wersquoll be tweeting some great questions to ask thefilequeen GDPRQUIZ

We know itrsquos a lot to organise but there are only four months left in 2016 and GDPR practices must be in place by 25 May 2018 And believe me when you have to roll out rather hard core legislation you have to make it fun and interactive to get people on board LPM

ABOUT

NATASHA RAWLEY THE FILE QUEEN

EDUCATING YOUR PROS

ADDSSaving firms from paper hellContact Natasha on0800 328 0272wwwarchivestoragenet

LEGAL PRACTICE MANAGEMENT28

SEPTEMBER 2016FEATURES

28

Patrick Wingrove talks to the founders of Proelium Law about their work providing legal advice in high-risk environments and conflict zones and the challenges of setting up shop in a new and risky area of law

Legal commandosProelium

Compared to the day-to-day lives of Proelium Law founders and partners Richard Stephens (above left) and Adrian Powell (centre) the average lawyer leads a pretty humdrum life Though UK-based the

firm has a strong international focus ndash Stephens and Powell regularly travel to provide legal and business advice to companies and individuals in high-risk professions or working in hazardous environments across the globe including conflict zones in Iraq Syria and Afghanistan Powell says that itrsquos a challenging but exciting area of law to be in and that ldquono two days are ever the samerdquo

The firm was established as an ABS in November 2015 allowing Powell and Stephens to operate as partners although Stephens isnrsquot a lawyer Powell qualified as a solicitor in 2004 after spending 11 years of his career in the British army and post-2006 worked on various high-risk projects around the world ndash giving him the inspiration for Proelium He says ldquoThe idea came to me in Baghdad in 2009 while working for a private security company as a legal adviser ndash I thought lsquoWhy isnrsquot there a firm doing thisrsquo But I soon realised that I needed someone on the ground who wasnrsquot a lawyer to help make it happenrdquo

That person was Stephens He previously served in the Royal Marines worked as a Whitehall-based strategic planner for the UK government and commanded a special operations regiment (which is why we couldnrsquot show you his face but itrsquos a nice issue of LPM) He now works primarily on the business development side of Proelium ldquoJoining Adrian who Irsquod previously worked with on projects around the

LAW FIRM PROFILE

LEGAL PRACTICE MANAGEMENT29

SEPTEMBER 2016FEATURES

world at a firm meant I could do fascinating and important work with the credibility that being a partner in a regulated business providesrdquo he says

Their work has certainly been interesting Proelium has cast its net far within the niche high-risk sector ndash advising UK-based service providers on the complexities of working in hostile environments conducting business and human rights due diligence and ensuring anti-money laundering counter terrorist-financing and anti-bribery compliance for companies intending to run in high-risk areas or conflict zones to name a few Recently theyrsquove also been working on developing capability for national intelligence organisations overseas ndash but for fear of being jailed for treason Stephens and Powell didnrsquot elaborate hellip

Powell says that the challenges companies face in these areas are numerous ldquoTherersquos a real technical knowledge in understanding how organisations physically work overseas These companies are good at what they do but that doesnrsquot necessarily translate into being business-savvy when it comes to operating in frontier markets ndash thatrsquos where Proelium adds valuerdquo For example after a client was recently exposed on an arms deal they were able to quickly discern liability and ensure that all necessary agencies and departments were appropriately informed

Powell and Stephens joke about how theyrsquore the number-one firm in their sector ndash admitting that to their knowledge theyrsquore the only firm that specialises in this area of law They added that itrsquos an untapped niche in which Proelium will be a pioneering force but which has also recently come onto the radar of a larger firm Theyrsquore alluding of course to Proeliumrsquos recent venture with Harrison Clark Rickerbys ndash a joining that combines Proeliumrsquos experience working in high-risk jurisdictions with the manpower and existing defence and security expertise of

HCR Powell says ldquoWhat they donrsquot have is our connections and our experience They like the idea of the sector because they see it as an interesting area and the partnership will allow us to offer a wealth of different legal services while letting us focus on what we do bestrdquo

As part of their ambitions for Proelium Powell and Stephens are keen to train a new generation of lawyers whorsquoll specialise in the high-risk sector ldquoWe have confidence in what the younger generation has to offer and we want them in our industry to continue our work in this relatively untapped areardquo says Powell Stephens adds that itrsquos also a matter of succession planning ldquoWe want the firm to operate long into the future but we donrsquot necessarily want to be running it ourselves for the next 20 yearsrdquo Proelium currently employs two interns as part of this commitment including University of Surrey law student Ruby Jamieson (pictured) She says ldquoWorking [at Proelium] has given me loads of insight already ndash itrsquos very niche

very new and Irsquove really enjoyed helping develop the business I feel that itrsquoll open a lot of doors when I graduaterdquo

In terms of expansion Proelium has recently opened a new office in the City of London Powell says that his home was originally the firmrsquos practising address but a large portion of their client-base is in London ldquoand we couldnrsquot keep having our meetings in coffee shopsrdquo

But Powell and Stephens are firm believers in the concept of remote working which works particularly well for their business

ldquoMost of our clients are either in London or outside the EU so Irsquom always away but all my phone calls are redirected from the new office to my mobile so I can keep in touch with clients whether Irsquom in Dubai or Baghdadrdquo says Stephens Powell adds that he feels remote working has the added benefit of keeping staff happy by letting them work from home which he says certainly makes him more productive as a fee earner

Proelium isnrsquot looking to expand into areas it has no interest in like family law but theyrsquore taking a keen interest in the emerging area of cyber law and are considering taking steps into that world ldquoLike high-risk law no onersquos really wrapped their arms around cyber law yet Therersquos cyber law in the US but it doesnrsquot exist per se in the UK except in terms of data protectionrdquo

When asked what advice they could give to SME firms based on their unique experiences in their sector Powell and Stephens said firms should know the areas of law they practise inside and out Powell says ldquoWersquore concerned with being experts in our field ndash a lot of our clients have peoplersquos lives in their hands and are not in the business of nonsense which is why they come to us We give sound researched legal advice based on experience and if we donrsquot know something we send the client to someone who doesrdquo LPM

ldquoCompanies are good at what they do but that doesnrsquot necessarily translate into being business-savvy when it comes to operating in frontier markets ndash thatrsquos where Proelium adds valuerdquo

Proelium

Two fee earners four total staff

Offices City of London Wirral Cheltenham

Specialisms International criminal commercial and conflict law due diligence sensitive investigations

LPM FACT FILE

ldquod2u is the UKrsquos number one outsourced transcription service for medical and legal professionals and highly competitive all over the world We pride ourselves on saving our clients time and money as well as offering state-of-the-art security and a first-rate servicerdquo Daryl Leigh CEO dictate2us

LPM magazine has agreed a special deal for its readers with dictate2us ndash 5 off your monthly

transcription bill for one year if you sign up through the dedicated LPM link or call and quote LPM2016 when signing up You can trial the service for free before committing

CUT COSTS INCREASE EFFICIENCYAll firms could benefit from outsourcing transcription to dictate2us ndash but even more so with our LPM deal 5 off your first year

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Use d2u and enjoy the benefits ofbull Fast turnaround timesbull Secure and confidential servicebull Secetarial cost reductions of up to 60bull Guaranteed 985 minimum accuracybull iPhone Android and Blackberry apps with one-hour turnaroundbull 100 output - only pay for the time you talkbull Free no obligation trial

This special LPM magazine reader deal only relates to customers that execute an agreement for a minimum term of 12 months with a minimum monthly commitment of 500 minutes LPM magazine sought two law firm references for dictate2us to verify its claims for quality and delivery The 5 deal only applies to the first paying year the customer is with dictate2us LPM magazine is not responsible or liable in any way for work done by dictate2us and is an advertising referrer only

d u2 dic t a t e 2 u s

SPECIAL READER OFFER

The d2u Transcriber app is free to download from Apple and Android app stores and BlackBerry App World

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LPMLEGAL PRACTICE MANAGEMENT

LPMLEGAL PRACTICE MANAGEMENT

DictateBRIEFINGv2indd 1 28042016 1336

LEGAL PRACTICE MANAGEMENT31

SEPTEMBER 2016FEATURES

Patrick Wingrove speaks to management leaders from SME and top 100 law firms that have recently achieved significant growth to find out how to go from acorn to oak tree

FROM MINNOW TO

For many SME firms growth is the goal ndash but it doesnrsquot have to happen in the ways that many have scaled in the past The era of organic slow quiet steady partnership development over decades is

increasingly at odds with a fast-paced digital world Strategies for growth in the legal market are now closer than ever to the rest of the business world ndash and any size firm can learn how to do it

Big or small there are similar tools in the box for making growth happen and similar challenges Lessons abound but some of the best can be taken from those firms not far outside the famous lsquotop 100rsquo legal businesses in the land ndash those that have already grown up and now have the top tier in their sights There are also lessons to draw from smaller but rapidly scaling law firms

There are many growth strategies for organic and acquisitive growth ndash and no easy answer for which is right for your firm To shine a light on the subject wersquove spoken both to SME and top 100 firms about growth and how to do it (and importantly how not to do it)

MAMMOTH

LEGAL PRACTICE MANAGEMENT32

SEPTEMBER 2016FEATURES

MODELS OF GROWTH According to the Lawyer the two fastest growing firms in the top 200 this year are Midlands-based Knights and lsquodistributedrsquo firm Keystone Law ndash currently placed 119 and 122 in the 2015 UK 200 rankings but whose revenue will now put them well inside the 2016 top 100 (due for release October 2016) Both attribute their growth to non-traditional business models ndash and very different non-traditional models at that

Knights corporatised in 2014 to remove the barriers from its decision making processes which CEO David Beech says has been the key to its growth ldquoEquity partnerships donrsquot grow particularly quickly because itrsquos hard to achieve consensus and make decisions that enable fundamental or rapid growth among equity partnersrdquo

Knights acquired Oxford-based Darbys earlier this year ndash a move largely behind the revenue increase that will put them in the top 100 ndash and completed the transition inside three months which Beech says would have been next to impossible under their old business structure ldquoNot only was a quick turnaround good for the books it saved significant time and money that could be invested elsewhere in the businessrdquo he says

Top 100 firm Simpson Millar is one step

ahead of Knights The firm broke the glass ceiling to become a top 100 firm in 2015 and like Knights the firm attributes its growing success to corporatisation ndash but in a different manner

It sought to be and was eventually acquired by PLC Fairpoint Group in 2014 Simpson Millar continues to run as an LLP under the same management team and existing trading brands but as a business unit within Fairpoint

Managing partner Peter Watson says that one of the key reasons to pursue this particular growth strategy was to provide an injection of capital for MampA ldquoWe completed the sizeable acquisition of Colemans last year for example which we were only able to do with considerable investment from Fairpointrdquo

Being part of a PLC has also given the firm access to strong MampA and project management capabilities ldquoAcquiring Colemans doubled the business overnight ndash for something like that you need strong MampA experience and access to that team within Fairpoint was crucial in getting the deal across the linerdquo says Watson Simpson Millar also built a strong digital strategy launched new products and focused on pricing ldquoCall it fixed fees or packaged fees the point of it was to say to consumers

Square One Law

Revenue pound5m

31 fee earners 53 total staff

Offices Newcastle-upon-Tyne

Specialisms Commercial corporate property employment EU and competition law finance litigation private client

LPM FACT FILE

Knights

Revenue pound40m (year end 2017)

375 fee earners 450 total staff

Offices Chester Cheltenham Newcastle-under-Lyme Derby Oxford Hale

Specialisms Full service firm

LPM FACT FILE

LEGAL PRACTICE MANAGEMENT33

SEPTEMBER 2016FEATURES

lsquoWith us you know exactly what yoursquoll get and how much itrsquoll costrsquordquo

PEOPLE PLEASERSThe ability to implement change has also been an important part of delivering a growth strategy This isnrsquot necessarily surprising ndash polling at the 2016 Legal Practice Management conference showed that legal business managers thought it was one of the greatest hurdles to a firmrsquos growth or success only topped by acquiring high-quality staff In Knightsrsquo case the two challenges were addressed together Beech says Knightsrsquo corporate rather than partnership structure also allows it to recruit talented people without having to deal with the inherent politics of an equity partnership

ldquoAcquiring the best talent has been a central part of our growth strategy ndash if a candidate can help the business through expertise or client following we can just recruit themrdquo he added

But a successful growth strategy incorporating talent isnrsquot just about recruiting quickly as we analysed in the July 2016 issue of LPM ndash itrsquos about recruiting well Firms also need to make themselves an attractive prospect for legal talent in order to grow

William Robins operations director at Keystone Law says his firmrsquos lsquodispersedrsquo model allows it to do that by offering new fee earners the chance to work remotely with less supervision ldquoWersquore typically hiring about a lawyer a week ndash bringing their expertise fee-earning capability and client following with them ndash and that is the core part of our growth strategyrdquo The firm has buttressed its recruitment capability by hiring a director of recruitment to focus almost entirely on lawyer enrolment (recruiting talent to recruit talent ndash neat)

Though the distributed model may not be for everyone says Robins implementing some form of flexible mobile or remote working should be part of any firmrsquos growth strategy because it allows firms to increase their fee-earning capability without accruing fixed overheads such as office premises

And there are other ways to be talent-attractive As a core part of its growth strategy Newcastle-based firm Square One Law ndash which achieved 30 growth in the

last financial year ndash has pledged to create a supportive and inspirational team environment offering high-calibre work to attract the best talent Ian Gilthorpe senior partner at Square One says ldquoGood people want to be inspired to be valued for what they do and feel as though theyrsquore making a contribution The key is to engage with all your staff to facilitate a culture where staff feel happy at work work for each other trust each other and ensure that they see the value in what they do ndash if you do that more talent will comerdquo

He added that itrsquos important for

recruitment to convey staff satisfaction to the outside world which Square One has achieved by including staff video-testimonials on its website

But recruiting is only half of an effective people strategy ndash the other is retention Simpson Millar has attempted to create an environment that its talented staff wonrsquot want to leave Says Watson ldquoToo many firms worry about what will happen if their rainmaker goes somewhere else and takes clients with them ndash so they put the shackles on make them feel unhappy and make it so that they canrsquot realise their full potentialrdquo Creating such an environment makes firms an attractive target for lateral hires when they should be building a place people want to join

PRACTICE AREASSME legal businesses donrsquot necessarily need to change their business models completely to achieve the same growth as

Thorntons

Revenue pound20m

209 fee earners 430 total staff

Offices Dundee Edinburgh St Andrews Perth Cupcar Kirkcaldy Anstruther Arbroath Montrose Forfar

Specialisms Full service firm

Keystone

Revenue pound202m

198 fee earners 230 total staff

Offices London Bristol Isle of Man Australia

Specialisms Corporate and commercial dispute resolution property

LPM FACT FILE

LPM FACT FILE

Equity partnerships donrsquot grow particularly quickly because itrsquos hard to achieve consensus and make decisions that enable fundamental or rapid growth among equity partners David Beech CEO Knights

Simpson Millar

Revenue pound316m

322 fee earners 539 total staff

Offices Birmingham Bristol Cardiff Cheadle Hulme Gateshead Kingston-upon-Thames Lancaster Leeds Park Place Leeds St Pauls Street (head office) London Manchester Newcastle

Specialisms Full service firm

LPM FACT FILE

LEGAL PRACTICE MANAGEMENT34

SEPTEMBER 2016FEATURES

our examples but removing blockers from decision-making making themselves more attractive to talent and finding the right funding for growth are increasingly important and the partnership structure may not enable it

But of course that means asking some turkeys to vote in a Yuletide election Fortunately there are other ways to achieve impressive growth mainly investment andor expansion into new geographic or practice areas

Watson says that Simpson Millar wouldnrsquot have been an attractive prospect to Fairpoint had the firm not spent time growing organically by expanding into new areas of law

ldquoWe went from being a predominantly trade union PI firm to having a broad base of 16 types of work ndash with strong heads in charge of each committed to driving growth in their departments ndash which gave us a large boost in revenuerdquo The firm achieved this through small acquisitions of other firms that had expertise in particularly lucrative areas of law

But firms shouldnrsquot just look at expanding in lucrative areas ndash they should focus on areas where their reputations deliver an advantage Scotlandrsquos Thorntons for example ndash which last year leapt from 134 to 108 in the 2015 UK 200 rankings ndash invested in six departments as part of its growth strategy

Thorntons joint managing partner Scott Milne says ldquoWe didnrsquot exclude other areas but we saw that these areas were profitable and that more importantly we had considerable expertise in them ndash we also considered that these are areas that are unlikely to be affected by future economic downturnrdquo This included investing in niche areas of law where the firm has a geographic competitive advantage ldquoWersquore lucky to be surrounded by some of the best farmland in the UK ndash wersquore well known for our expertise in rural business law which is why we invested heavily in itrdquo

ORGANIC V ACQUISITIONIn several ways choosing an effective growth strategy very much boils down to MampA versus organic growth ndash every business model talent or area expansion strategy appears to revolve around one or both But which is the best to achieve the kind of growth thatrsquoll propel firms to a lsquohockey stickrsquo on their revenue forecasts The short answer is it depends on whatrsquos best for a firm at a given time It either

needs to fit the firm ndash or the firm needs to change to fit the goal

Beech says that acquisition has been excellent for Knights because itrsquos a fast and effective form of expansion ndash the acquisition of Darbys more than doubled its revenue But MampA poses a significant challenge to finding firms with the right cultural fit

ldquoFirms need to establish a single culture in order to implement growth ndash everyone needs to be working towards the same goalrdquo He added that when a firm completes a merger or acquisition that firm has to be integrated from day one which is much more difficult if it has a significantly different culture Knights is planning to continue recruiting and complete more acquisitions in the next year to maintain the growth curve

Of course the big problem with acquisition is money Robins at Keystone says his firm lies at the opposite end of this

INFORMATION IS EMPOWERING

Lemington Spa-based firm Wright Hassall has a specific goal of breaking into the top 100 and as part of its growth strategy expanded into areas of the UK where its expertise is highly sought after ndash using customer relationship management in the background to underpin the firmrsquos activities in specific areas Martyn Wells IT director at the firm says ldquoWersquove zoomed in on specific industry sectors that we know are performing well in the Midlands sectors where we have a superb reputationrdquo Expanding geographically as Wells outlines needs data to get right Thorntons for example identified various lsquomicro-marketsrsquo in Scotland close to its base of operations ldquoWe acquired a firm in St Andrews because itrsquos like a micro-economy (or micro-market) that doesnrsquot seem to be affected by price drops in the residential market elsewhererdquo says Thorntons joint managing partner Scott Milne Knights has another take on the geographic targeting idea ndash it intends to stay out of the large cities (London Manchester Leeds for example) and expand into areas where there is little competition As David Beech CEO at Knights explains ldquoLast September we acquired a small team in Chester of about 11 lawyers and now thatrsquos expanded to just over 70 ndash and the main reason wersquove been able to do that is because there isnrsquot a lot of competition thererdquoUltimately this all comes down to research finding out what to invest in or where to expand and perhaps most importantly finding out what clients want

LEGAL PRACTICE MANAGEMENT35

SEPTEMBER 2016FEATURES

spectrum to the way Knights has grown emphasising organic growth finding innovative means to attract talent using technology to drive efficiency and branching out into new areas of law or new markets to achieve significant growth

Square One Law also espouses the organic route ndash believing that firms with growth in mind should focus on ensuring their external brand reflects the businessrsquos internal culture and behaviours of its team creating lsquosynergyrsquo between the business and its clients

Gilthorpe says ldquoMergers ndash and there is no such thing as a true merger ndash and acquisitions can be a distraction as you look to create a new culture and separate the wheat from the chaff and this can soak up a lot of energy that would otherwise be put to use in driving the progression of the business and the focus on client servicerdquo

The best option for some firms may be a

calculated combination of MampA and organic Thorntons for example having made several acquisitions is now focusing on organic growth moving away from geographical expansion and towards developing locations and its brand

Watson at Simpson Millar sums the mixed approach up thus ldquoItrsquos a mixture Acquisition is still very much a part of the mix but in parallel to that itrsquos important to demonstrate that yoursquore developing ongoing work rather than being driven solely by acquisitionrdquo

There are clearly many different ways to achieve healthy and assertive growth though there are no easy answers as to which way is right for your firm But it is clear that growth doesnrsquot have to happen in the ways many have previously achieved it ndash innovation and lateral thinking are the means of achieving significant growth (which might one day propel you into the top 100 you never know) LPM

LEGAL PRACTICE MANAGEMENT36

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

INDUSTRY VIEWS

36LEGAL PRACTICE MANAGEMENT

Legal is becoming an ever more digital industry giving firms the chance to become more efficient flexible agile and collaborative

INDUSTRY VIEWS INDEX

ONLINEOFFICES

36

SPONSORED EDITORIAL

INDUSTRY VIEWS

37 INTERVIEW

Paperless processLinetimersquos Tony Klejnow explains the benefits of using matter management software for law firms and their clients

39 INTERVIEW

Virtual expansionNigel Redwood Nasstarrsquos CEO talks about the advantages of having a managed flexible IT infrastructure

LEGAL PRACTICE MANAGEMENT37

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT37

Competition and price pressures and an increasingly digital client base are all significant drivers for law firms to become paperless

businesses Tony Klejnow Linetimersquos managing director says firms could achieve competitive advantage by introducing paperless solutions across their businesses ndash but a particular lsquoeasy winrsquo area is matter management

ldquoFee earners are required to keep detailed records of their cases but the amount of time and money they waste physically printing filing looking for collaborating on and updating files is alarmingrdquo says Klejnow Law firms have traditionally been reluctant to adopt paperless

workflow solutions he adds because workflow doesnrsquot apply to 99 of fee earnersrsquo work ldquoBut if they adopted paperless solutions in their back office processes they could reduce costs without affecting client service boost productivity and promote collaboration ndash making them more efficient flexible and cost effective and making them more competitive in an ever-changing legal marketrdquo

MATTER MATTERSDocument and matter management tools ndash like those in Linetimersquos legal software product Liberate ndash electronically store and organise all case documentation in an online database Klejnow says that there are two immediate benefits of paperless matter

PAPERLESS PROCESS

Tony Klejnow managing director at Linetime talks to LPM about the benefits of the paperless office ndash starting with filing and back office processes

INDUSTRY VIEWS

Linetime is a specialist provider of Microsoft-based practice and case management solutions Clients include mid-tier law firms and in-house legal departmentswwwlinetimecouk

ABOUT THE SPONSOR

SPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT38

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT 38

management The first is reducing paper and storage costs

ldquoIf case documentation is electronically stored once a case is finished you no longer have a five-inches-thick file that has to be stored for six years ndash which has to reside somewhere and costs firms time space and moneyrdquo The second is eliminating filing time ndash for example instead of printing and filing emails and attachments fee earners drag and drop emails directly from Outlook into the database ldquoand attachments are automatically stripped from emails and appropriately filedrdquo says Klejnow

And Klejnow says paperless filing systems donrsquot just facilitate efficiency this way ndash they also improve general process efficiency by facilitating collaboration between fee earners Solicitors can use document and matter management to view and work on matters at the same time a difficult if not impossible prospect when working with paper files Klejnow says ldquoWithout document management legal professionals work in silos but with it they immediately share datardquo He adds that Liberate has an additional collaboration tool to help further improve collaborative efficiency in firms ldquoIf I choose to lsquocollaboratersquo a document with you on Liberate Outlook will prompt you to review that document by simply acknowledging the notificationrdquo

In this respect moving to become a paperless business provides greater flexibility for fee earners who can collaborate with colleagues working remotely or in different offices Klejnow says ldquoPaper files can only reside in one location but electronic files can be accessed from any office and when working from home or with clientsrdquo On the other side of the coin having digital files maintains a greater level of productivity in a law firm office ldquoIf your colleague is absent from the office you can easily find documents that you might have otherwise wasted a significant portion of your day looking forrdquo he adds

Improved external collaboration is also a benefit that firms can reap from paperless matter management With an electronic system you can go into a case history bundle documents into one PDF file and quickly submit that to the third party improving collaboration between fee earners and clients who want to do everything online This has the added benefit of improving accuracy and facilitating greater efficiency by involving clients in the process ldquoGood matter management software should also let you push e-forms to clients to be filled in and that information is automatically transferred straight to the online database ndash which saves fee earners

time and is a more accurate because the information doesnrsquot have to be constantly re-enteredrdquo says Klejnow

This extra level of collaboration within legal businesses that hasnrsquot been possible until now has long been needed because it improves efficiency and productivity which makes the business more profitable and competitive Klejnow adds that what firms save by adopting matter management they should reinvest in becoming fully paperless digital businesses

ldquoCase management solutions can improve efficiency to an even greater extent and keep firms competitive in the age of the alternative business structuresrdquo

VISIBLE COMPLIANCEIn response to firms reluctant to adopt paperless technologies like document and matter management for fear of losing delicate information to cybercriminals Klejnow says those systems provide an additional level of security ldquoTaking data and attachments out of Outlook and storing them on a database is much more secure than leaving them on your hard drive If you leave

your laptop on a train for example all your important data is safely stored on a server and not instantly accessible by opportunist criminalsrdquo

Document and matter management also offers a greater level of security in fee earner and client communications ldquoIf I want you to check that the data we have for you is accurate Liberate will

direct you to a page holding your data and at the same time it will push out an SMS text with a pin code to your phone Unless you input the code you canrsquot get to the web page ndash which means if one of your solicitors accidentally sends an email to the wrong person or itrsquos intercepted it doesnrsquot matter The data stays safe ndash this level of security is crucial in this age of cybercrimerdquo

These security features clearly have significant benefits for compliance which is important in a market increasingly dictated by regulation including the relatively new General Data Protection Regulation says Klejnow

ldquoCompliance officers need to be seen by regulators to have monitored and reviewed everything thatrsquos happened in their firm which is considerably easier with a paperless system Liberate has lsquoversion controlrsquo which allows compliance officers to keep tabs on every change made to a document as well as a compliance module which lets them view whatrsquos happening on a case (to ensure that money laundering checks have been carried out and so on) and records the fact that yoursquove reviewed thisrdquo LPM

Without document management legal professionals work in silos but with it they immediately share data

INTERVIEW

LEGAL PRACTICE MANAGEMENT39

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LPM readers may already know the Nasstar Group ndash but by a different name Nasstar was launched by regular LPM-contributor e-knownet to consolidate four discrete hosted

managed IT businesses (including e-knownet) after a period of significant acquisition Nigel Redwood chief executive officer at Nasstar says merger and acquisition and consolidating brands is challenging but having a flexible hosted IT infrastructure makes the process significantly easier

ldquoManaged IT services are enormously beneficial for firms that are expanding or consolidating particularly after MampA in terms of time and productivity cost savings and flexibilityrdquo He adds that by just having managed desktops firms can attain competitive advantage by reducing overheads and becoming more flexible and agile

Nasstar has experience helping SME firms with their IT systems after MampA and knows what problems to look out for creating unity among staff used to using different systems and processes the cost and time it takes to expand an IT infrastructure and the geographic distance between new offices

Redwood says that MampA can be an excellent way for legal businesses to expand into new sectors but that consolidating new departments using different IT systems and processes is challenging

ldquoOur acquisitions for example introduced new sector focuses for us in the SME legal market ndash wersquove consolidated these into a wider service base under Nasstar and facilitated unity among staff using virtual IT solutions

rdquoVirtual IT solutions help facilitate unity across the business by providing a level of consistency in an IT infrastructure Everyone immediately uses the same applications on the same versions from wherever theyrsquore working creating unity faster collaboration across teams and effective information sharingrdquo Hosted IT infrastructures are also continually updated giving staff instant access to new updates applications and technologies as they become available

The next significant challenge firms face after MampA is expanding their IT infrastructure to accommodate an influx of new staff ndash but Redwood says virtual IT solutions let firms expand their IT infrastructure at the flick of a switch

ldquoWith virtual IT firms arenrsquot held back by the size of their servers or the amount of computer power theyrsquove got ndash they simply call their IT provider and ask for an upgrade when previously theyrsquod have been

subject to lengthy and costly IT upgradesrdquo Virtual IT solutions are also easy to budget for

Redwood says ldquoYoursquore not going to be surprised by an increased fixed asset expenditure ndash services like those offered by Nasstar are an operational cost and fixed per user per month through a scalable cost modelrdquo

Geographic distance inhibiting collaboration between merged offices is also a key consideration for firms after MampA but virtual IT solutions solve this problem Redwood says a virtual IT infrastructure can minimise travel through the use of hosted virtual meeting rooms and video technology Staff can use this technology from virtually anywhere which is why it also lends itself well to remote flexible or mobile working set-ups

VIRTUAL WORKPLACERemote working is becoming an increasingly present feature of the legal landscape because of its cost saving and recruitment and retention advantages ndash the majority of firms at the LPM conference 2016 were moving towards a flexible remote or mobile working set-up or already had one

Redwood says virtual IT solutions better enable staff who work remotely ldquoHosted managed desktop solutions for example let staff work with the same applications from any device in the world safely and securelyrdquo

But remote working isnrsquot only about enabling the current workforce itrsquos about attracting future talent Redwood says that millennials donrsquot necessarily want to work as their predecessors did ndash they expect greater flexibility in the workplace which at one level can be achieved by remote working facilitated by a managed desktop

ldquoAnd itrsquos not only about attracting millennialsrdquo he says ldquoSME firms with flexible working set-ups are becoming more attractive to experienced legal talent who may be frustrated by the rigidity of their firmrdquo As a firm expands its workforce in this manner firms with virtual IT solutions reap the lsquodoublersquo cost saving benefits of not having to expand their premises or IT infrastructure accordingly

Some firms are resistant to remote working based on hosted IT services believing they arenrsquot secure ndash but Redwood says that argument ldquocan be put to bedrdquo

ldquoFor an in-house IT team to have the level of security that an organisation like ours can deliver is near impossible financially as well as in terms of the

VIRTUALSANITYNigel Redwood CEO at Nasstar talks to LPM about how managed IT can help SME firms achieve competitive advantage by making them more agile and flexible

LEGAL PRACTICE MANAGEMENT40

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

INTERVIEW

level of systems and technologies they deployrdquo Cybercrime is of course a scary and constantly evolving threat but Redwood points out that virtual IT systems have dedicated teams monitoring these threats evolving cyber defences and changing systems accordingly

ldquoThis capability not only makes [firms] a lot more secure but gives peace of mind in terms of compliancerdquo

ONLINE ADVANTAGE Redwood says virtual IT infrastructures donrsquot just pertain to lsquobig lawrsquo but to SME firms as well ndash perhaps more so

ldquoVirtual IT systems are a way for SME firms to stay competitive against their larger

counterparts and ABSs ndash it gives them a greater ability to expand it lets them adopt more flexible and agile models and is easy to budget forrdquo Firms can also expect virtual IT solutions to enable better alignment of IT resources to business needs enhanced usability with anywhere anytime access and in-built business continuity

But the greatest advantage virtual IT offers SME firms over big law is agility Redwood says ldquoBig IT departments in firms can be slow to react cumbersome and held back by the limitations of hardware infrastructure and security issues ndash all of that is removed with a solution like ours and the customer has access to fast-moving agile ITrdquo LPM

ABOUT THE SPONSOR

Nasstar is a provider of managed IT services and tailor-made cloud hosted solutions ndash delivering innovative secure and agile IT to help clients accomplish their business objectiveswwwnasstarcom

Page 22: LPM September 2016

LEGAL PRACTICE MANAGEMENT23

SEPTEMBER 2016LPM INSIGHTS

TIMES THEY ARE A CHANGINrsquo The overriding theme of the 2016 LPM conference was change ndash how firms can implement it the drivers behind it and the various blockers to it But the first step to change is gauging which factors will have the biggest impact on the legal market Just over half of legal management leaders we polled thought client pressures on cost like demanding fixed fees will have the biggest impact while just over a quarter thought it will be competitors attaining a market advantage using technology

How quickly do firms need to respond to these oncoming market pressures Well 86 of LPM conference delegates thought that change needs to happen in their firms within the next two to five years But 14 said that their firm doesnrsquot need to change significantly perhaps because theyrsquove beaten the rest to the punch their legal business is somehow immune to new pressures ndash or they have their heads in the sand

Legal has traditionally been resistant to change and itrsquos not surprising that some firms still are says Sean Stuttaford COO at Essex firm Thompson Smith and Puxon (TSP) and 2016 LPM conference delegate ldquoThere are still firms out there where partners donrsquot have computers on their desks ndash theyrsquore stuck in their ways and just point blank refuse to

52 26 5 12 5

develop their business for the futurerdquoBut legal management leaders willing to implement

change may still find it difficult as 60 of LPM conference delegates polled thought that lsquochange isnrsquot really understood at their firmrsquo

GROWING PAINSJust over a quarter of LPM conference delegates also thought that an inability to create change within their firm would be the greatest hurdle to the businessrsquos growth or further success ndash though Stuttaford at TSP suggests voters might have blamed the traditional partnership business model for the same reason

But acquiring high-quality staff was considered to be the greatest hurdle for growth or success by 36 of delegates Rebecca Patterson HR manager at Kent firm Thackray Williams and 2016 LPM conference delegate says that she agrees with this result ldquoOur firm has a particularly tough time finding quality support staff ndash we could perhaps stand to invest more in competency frameworks and performance management and training opportunities to aid recruitment and retentionrdquo

William Robins operations director at lsquodistributedrsquo firm Keystone Law and a 2016 LPM conference speaker says

12 36 27 13 12

Lack of fundsAcquiring high-quality staffInability to create change within the firmTechnologyThe traditional partnership business model

Out of these which factor is having the biggest impact on the SME legal market

Client pressures on cost (eg fixed fees)Technology creating advantage for competitorsConsolidationDifficulty in finding routes to growth (eg funding)Something else

What is the greatest hurdle to your firmrsquos growth or further success

LEGAL PRACTICE MANAGEMENT24

SEPTEMBER 2016LPM INSIGHTS

offering a more flexible remote or mobile working set-up for everyone in a firm is an excellent way to attract talent (Keystonersquos model of course is founded on remote working) Perhaps the majority of legal management leaders polled at the 2016 LPM conference agree since their firms have either adopted a flexible remote or mobile working set-up are planning to adopt one or are considering adopting one ndash though there are other advantages to remote working such as reducing overheads In any case the results indicate that the SME legal working landscape is becoming considerably more flexible

But remote working doesnrsquot work for everyone Mary Mocklow CEO at West Midlands firm Talbots Law and 2016 LPM conference delegate says that their high-street set-up wouldnrsquot allow it ldquoThe majority of our staff are client-facing and need to be present at the office ndash and while there are other staff at Talbots that might benefit from remote working you canrsquot have a policy for one and not for allrdquo

CYBER THREATSTechnology was clearly a significant concern for legal management leaders who attended the 2016 LPM conference Patterson at Thackray Williams says some firms have had a hard time finding software that caters to their needs as a business and an LPM conference poll seems to back this up just under half of legal management leaders polled at the conference thought project teams should write law firm software indicating a desire for cross-department input into its creation But the poll also indicates that legal software providers have to a large extent been meeting their clientsrsquo needs

The rising threat of cybercrime was also a clear concern for LPM conference delegates ndash 92 of SME legal management leaders said their firms have cyber risk on their management meeting agendas Stuttaford at TSP says ldquoItrsquos something firms need to be constantly aware of and take precautions against not just by purchasing good firewall and antivirus software but by educating staff about password discipline authentication processes and suchrdquo

32 18 14 33 3

Is cyber risk on your management meeting agenda

92

5 3

Yes No Dont know

Is your firm moving to a more flexible workingremote or mobile working set-up for everyone in it

YesNoConsidering itWe already do itDont know

LEGAL PRACTICE MANAGEMENT25

SEPTEMBER 2016LPM INSIGHTS

PRESSURES AND PRICINGClient pressures on cost was also a major concern for legal management leaders polled at the conference so it may not be surprising that just over half of them said 50 or more of their firmrsquos work is some form of fixed fee This doesnrsquot necessarily suggest that the other half arenrsquot open to the concept of fixed fee ndash Mocklow at Talbots points out that fixed fees work for certain types of work ldquoHigh-street firms like Talbots can benefit greatly from fixed fees which is why 75 of our work is fixed fee but itrsquos more difficult to apply to firms that specialise in something like admiralty lawrdquo

The industry seems to think that the value of service has been lost to the price obsession in some areas but not in others ndash and while pricing is clearly a vital issue for SME firms 88 of legal management leaders polled at the LPM conference thought that itrsquos lsquoone of a range of important factorsrsquo or lsquonot as important as other thingsrsquo Patterson at Thackray Williams says that maintaining a good relationship with clients is often more important than pricing though pricing can be a means to achieving client satisfaction ldquoIt also depends on the client ndash in something like conveyancing first-time buyers might be looking for fixed fees or the cheapest price but for commercial clients that may not be as important as reputation or relationshiprdquo

TREASURE MAPPINGLegal process mapping often used by lsquobig lawrsquo and making inroads into SME legal could potentially make SME firms a great deal more efficient and therefore more competitive Two-thirds of legal management leaders polled had heard of process mapping and 79 thought that it is relevant to the business of law Stuttaford at TSP says he agrees ldquoFirms should look at their processes learn from them and figure out how to improve those processes ndash this question really made us look at what TSP has done so far in terms of what legal processes wersquove mapped and whenrdquo

To sum up LPM conference delegates were aware of the challenges that face them but were mostly optimistic nonetheless This may be because they know they need to change and in spite of the fact that change isnrsquot really understood at their firms are planning to mend their ways to meet future market pressures ndash generally putting the client first while keeping talent and technology high on their agendas LPM

Are aware of this thing called legal process mapping

66

34

Has the value of service been lost to the price obsession

23

23

54

Yes No Depends on the service Dont know

Yes No

How important is price in winning business

8

4

67

21

CriticalMore important than almost all factorsIts one of a range of important factorsNot as important as other things such as relationshipsIts one of the less important things in reality

What is the greatest hurdle to your firmrsquos Are aware of this thing called legal process mapping

LEGAL PRACTICE MANAGEMENT27

SEPTEMBER 2016COLUMNSSPONSORED EDITORIAL

Welcome back LPM readers ndash the new school term has started summer is (pretty much) over and the UK is back in full throttle after the summer break And what a break itrsquos been at

File Queen HQ (wersquove taken the time to get our clients up and running with augustprojects as well as started our new Instagram feed filequeenadds)

With the start of the new learning year wersquore focused on the education of you lovely LPM readers ndash with our attention turning back to the General Data Protection Regulation You may remember that in our last LPM article we ran through the 12 steps to tackle the GDPR helped by the awesome people at the Information Commissionerrsquos Office ndash wersquove provided a link to their 12-step resource via our website wwwarchivestoragenetnewsgdpr

Over the next three columns wersquoll be taking these steps and breaking them down for you ndash starting with step one awareness The File Queen (myself) and the team at ADDS have been promoting this step as the most important for all legal practices

ldquoWhyrdquo we hear you holler Well this step is the all-important life raft that unites your practice and team members to help you in the GDPR fight for survival (dramatic I know)

Getting the team on board ndash this buy-in needs to include all ranks of staff ndash from the managing partners to your suppliers But how do you do this Well here are some File Queen tips for when we at ADDS are rolling out projects

Lunch and learn ndash with a register People love to eat and be social so get your legal business to book in a couple of lunch and learn sessions Donrsquot limit this to one date ndash you must run at least two or three so people have the option of which dates to attend Make sure you make a register for those that actually turn up (we all know a calendar acceptance doesnrsquot mean theyrsquoll actually appear) This will allow you to chase down the members of the team you need to get on board for the next one

Have some decent sandwiches nibbles and soft drinks and give the team an overview of the GDPR Run through the 12 steps and make sure you educate them on why everything is so important (make sure you mention the increased fines and audits) During this time let the team know that there are several steps along the way that yoursquoll need their help and support for and which you wonrsquot be able to achieve on your own Tell them that the businessrsquos reputation and brand is on the line and that you need everyone on board to lend a helping hand and spread the word

Another great File Queen tip at this stage is also to get some additional funding from the practice manager for a wine and quiz night at the end of the lunch and learn periods This can be part of your social gathering on a Friday straight after work ndash with some more nibbles and wine Assign people to teams and have a GDPR quiz The winning team gets an award and everyone has fun and learns at the same time Follow our twitter feed as wersquoll be tweeting some great questions to ask thefilequeen GDPRQUIZ

We know itrsquos a lot to organise but there are only four months left in 2016 and GDPR practices must be in place by 25 May 2018 And believe me when you have to roll out rather hard core legislation you have to make it fun and interactive to get people on board LPM

ABOUT

NATASHA RAWLEY THE FILE QUEEN

EDUCATING YOUR PROS

ADDSSaving firms from paper hellContact Natasha on0800 328 0272wwwarchivestoragenet

LEGAL PRACTICE MANAGEMENT28

SEPTEMBER 2016FEATURES

28

Patrick Wingrove talks to the founders of Proelium Law about their work providing legal advice in high-risk environments and conflict zones and the challenges of setting up shop in a new and risky area of law

Legal commandosProelium

Compared to the day-to-day lives of Proelium Law founders and partners Richard Stephens (above left) and Adrian Powell (centre) the average lawyer leads a pretty humdrum life Though UK-based the

firm has a strong international focus ndash Stephens and Powell regularly travel to provide legal and business advice to companies and individuals in high-risk professions or working in hazardous environments across the globe including conflict zones in Iraq Syria and Afghanistan Powell says that itrsquos a challenging but exciting area of law to be in and that ldquono two days are ever the samerdquo

The firm was established as an ABS in November 2015 allowing Powell and Stephens to operate as partners although Stephens isnrsquot a lawyer Powell qualified as a solicitor in 2004 after spending 11 years of his career in the British army and post-2006 worked on various high-risk projects around the world ndash giving him the inspiration for Proelium He says ldquoThe idea came to me in Baghdad in 2009 while working for a private security company as a legal adviser ndash I thought lsquoWhy isnrsquot there a firm doing thisrsquo But I soon realised that I needed someone on the ground who wasnrsquot a lawyer to help make it happenrdquo

That person was Stephens He previously served in the Royal Marines worked as a Whitehall-based strategic planner for the UK government and commanded a special operations regiment (which is why we couldnrsquot show you his face but itrsquos a nice issue of LPM) He now works primarily on the business development side of Proelium ldquoJoining Adrian who Irsquod previously worked with on projects around the

LAW FIRM PROFILE

LEGAL PRACTICE MANAGEMENT29

SEPTEMBER 2016FEATURES

world at a firm meant I could do fascinating and important work with the credibility that being a partner in a regulated business providesrdquo he says

Their work has certainly been interesting Proelium has cast its net far within the niche high-risk sector ndash advising UK-based service providers on the complexities of working in hostile environments conducting business and human rights due diligence and ensuring anti-money laundering counter terrorist-financing and anti-bribery compliance for companies intending to run in high-risk areas or conflict zones to name a few Recently theyrsquove also been working on developing capability for national intelligence organisations overseas ndash but for fear of being jailed for treason Stephens and Powell didnrsquot elaborate hellip

Powell says that the challenges companies face in these areas are numerous ldquoTherersquos a real technical knowledge in understanding how organisations physically work overseas These companies are good at what they do but that doesnrsquot necessarily translate into being business-savvy when it comes to operating in frontier markets ndash thatrsquos where Proelium adds valuerdquo For example after a client was recently exposed on an arms deal they were able to quickly discern liability and ensure that all necessary agencies and departments were appropriately informed

Powell and Stephens joke about how theyrsquore the number-one firm in their sector ndash admitting that to their knowledge theyrsquore the only firm that specialises in this area of law They added that itrsquos an untapped niche in which Proelium will be a pioneering force but which has also recently come onto the radar of a larger firm Theyrsquore alluding of course to Proeliumrsquos recent venture with Harrison Clark Rickerbys ndash a joining that combines Proeliumrsquos experience working in high-risk jurisdictions with the manpower and existing defence and security expertise of

HCR Powell says ldquoWhat they donrsquot have is our connections and our experience They like the idea of the sector because they see it as an interesting area and the partnership will allow us to offer a wealth of different legal services while letting us focus on what we do bestrdquo

As part of their ambitions for Proelium Powell and Stephens are keen to train a new generation of lawyers whorsquoll specialise in the high-risk sector ldquoWe have confidence in what the younger generation has to offer and we want them in our industry to continue our work in this relatively untapped areardquo says Powell Stephens adds that itrsquos also a matter of succession planning ldquoWe want the firm to operate long into the future but we donrsquot necessarily want to be running it ourselves for the next 20 yearsrdquo Proelium currently employs two interns as part of this commitment including University of Surrey law student Ruby Jamieson (pictured) She says ldquoWorking [at Proelium] has given me loads of insight already ndash itrsquos very niche

very new and Irsquove really enjoyed helping develop the business I feel that itrsquoll open a lot of doors when I graduaterdquo

In terms of expansion Proelium has recently opened a new office in the City of London Powell says that his home was originally the firmrsquos practising address but a large portion of their client-base is in London ldquoand we couldnrsquot keep having our meetings in coffee shopsrdquo

But Powell and Stephens are firm believers in the concept of remote working which works particularly well for their business

ldquoMost of our clients are either in London or outside the EU so Irsquom always away but all my phone calls are redirected from the new office to my mobile so I can keep in touch with clients whether Irsquom in Dubai or Baghdadrdquo says Stephens Powell adds that he feels remote working has the added benefit of keeping staff happy by letting them work from home which he says certainly makes him more productive as a fee earner

Proelium isnrsquot looking to expand into areas it has no interest in like family law but theyrsquore taking a keen interest in the emerging area of cyber law and are considering taking steps into that world ldquoLike high-risk law no onersquos really wrapped their arms around cyber law yet Therersquos cyber law in the US but it doesnrsquot exist per se in the UK except in terms of data protectionrdquo

When asked what advice they could give to SME firms based on their unique experiences in their sector Powell and Stephens said firms should know the areas of law they practise inside and out Powell says ldquoWersquore concerned with being experts in our field ndash a lot of our clients have peoplersquos lives in their hands and are not in the business of nonsense which is why they come to us We give sound researched legal advice based on experience and if we donrsquot know something we send the client to someone who doesrdquo LPM

ldquoCompanies are good at what they do but that doesnrsquot necessarily translate into being business-savvy when it comes to operating in frontier markets ndash thatrsquos where Proelium adds valuerdquo

Proelium

Two fee earners four total staff

Offices City of London Wirral Cheltenham

Specialisms International criminal commercial and conflict law due diligence sensitive investigations

LPM FACT FILE

ldquod2u is the UKrsquos number one outsourced transcription service for medical and legal professionals and highly competitive all over the world We pride ourselves on saving our clients time and money as well as offering state-of-the-art security and a first-rate servicerdquo Daryl Leigh CEO dictate2us

LPM magazine has agreed a special deal for its readers with dictate2us ndash 5 off your monthly

transcription bill for one year if you sign up through the dedicated LPM link or call and quote LPM2016 when signing up You can trial the service for free before committing

CUT COSTS INCREASE EFFICIENCYAll firms could benefit from outsourcing transcription to dictate2us ndash but even more so with our LPM deal 5 off your first year

wwwdictate2uscomlpm

Use d2u and enjoy the benefits ofbull Fast turnaround timesbull Secure and confidential servicebull Secetarial cost reductions of up to 60bull Guaranteed 985 minimum accuracybull iPhone Android and Blackberry apps with one-hour turnaroundbull 100 output - only pay for the time you talkbull Free no obligation trial

This special LPM magazine reader deal only relates to customers that execute an agreement for a minimum term of 12 months with a minimum monthly commitment of 500 minutes LPM magazine sought two law firm references for dictate2us to verify its claims for quality and delivery The 5 deal only applies to the first paying year the customer is with dictate2us LPM magazine is not responsible or liable in any way for work done by dictate2us and is an advertising referrer only

d u2 dic t a t e 2 u s

SPECIAL READER OFFER

The d2u Transcriber app is free to download from Apple and Android app stores and BlackBerry App World

OFFER 5 OFF

YOUR FIRMrsquoS FIRST YEAR OF

TRANSCRIPTIONSIGN UP ONLINE

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WHEN CALLING

LPMLEGAL PRACTICE MANAGEMENT

LPMLEGAL PRACTICE MANAGEMENT

DictateBRIEFINGv2indd 1 28042016 1336

LEGAL PRACTICE MANAGEMENT31

SEPTEMBER 2016FEATURES

Patrick Wingrove speaks to management leaders from SME and top 100 law firms that have recently achieved significant growth to find out how to go from acorn to oak tree

FROM MINNOW TO

For many SME firms growth is the goal ndash but it doesnrsquot have to happen in the ways that many have scaled in the past The era of organic slow quiet steady partnership development over decades is

increasingly at odds with a fast-paced digital world Strategies for growth in the legal market are now closer than ever to the rest of the business world ndash and any size firm can learn how to do it

Big or small there are similar tools in the box for making growth happen and similar challenges Lessons abound but some of the best can be taken from those firms not far outside the famous lsquotop 100rsquo legal businesses in the land ndash those that have already grown up and now have the top tier in their sights There are also lessons to draw from smaller but rapidly scaling law firms

There are many growth strategies for organic and acquisitive growth ndash and no easy answer for which is right for your firm To shine a light on the subject wersquove spoken both to SME and top 100 firms about growth and how to do it (and importantly how not to do it)

MAMMOTH

LEGAL PRACTICE MANAGEMENT32

SEPTEMBER 2016FEATURES

MODELS OF GROWTH According to the Lawyer the two fastest growing firms in the top 200 this year are Midlands-based Knights and lsquodistributedrsquo firm Keystone Law ndash currently placed 119 and 122 in the 2015 UK 200 rankings but whose revenue will now put them well inside the 2016 top 100 (due for release October 2016) Both attribute their growth to non-traditional business models ndash and very different non-traditional models at that

Knights corporatised in 2014 to remove the barriers from its decision making processes which CEO David Beech says has been the key to its growth ldquoEquity partnerships donrsquot grow particularly quickly because itrsquos hard to achieve consensus and make decisions that enable fundamental or rapid growth among equity partnersrdquo

Knights acquired Oxford-based Darbys earlier this year ndash a move largely behind the revenue increase that will put them in the top 100 ndash and completed the transition inside three months which Beech says would have been next to impossible under their old business structure ldquoNot only was a quick turnaround good for the books it saved significant time and money that could be invested elsewhere in the businessrdquo he says

Top 100 firm Simpson Millar is one step

ahead of Knights The firm broke the glass ceiling to become a top 100 firm in 2015 and like Knights the firm attributes its growing success to corporatisation ndash but in a different manner

It sought to be and was eventually acquired by PLC Fairpoint Group in 2014 Simpson Millar continues to run as an LLP under the same management team and existing trading brands but as a business unit within Fairpoint

Managing partner Peter Watson says that one of the key reasons to pursue this particular growth strategy was to provide an injection of capital for MampA ldquoWe completed the sizeable acquisition of Colemans last year for example which we were only able to do with considerable investment from Fairpointrdquo

Being part of a PLC has also given the firm access to strong MampA and project management capabilities ldquoAcquiring Colemans doubled the business overnight ndash for something like that you need strong MampA experience and access to that team within Fairpoint was crucial in getting the deal across the linerdquo says Watson Simpson Millar also built a strong digital strategy launched new products and focused on pricing ldquoCall it fixed fees or packaged fees the point of it was to say to consumers

Square One Law

Revenue pound5m

31 fee earners 53 total staff

Offices Newcastle-upon-Tyne

Specialisms Commercial corporate property employment EU and competition law finance litigation private client

LPM FACT FILE

Knights

Revenue pound40m (year end 2017)

375 fee earners 450 total staff

Offices Chester Cheltenham Newcastle-under-Lyme Derby Oxford Hale

Specialisms Full service firm

LPM FACT FILE

LEGAL PRACTICE MANAGEMENT33

SEPTEMBER 2016FEATURES

lsquoWith us you know exactly what yoursquoll get and how much itrsquoll costrsquordquo

PEOPLE PLEASERSThe ability to implement change has also been an important part of delivering a growth strategy This isnrsquot necessarily surprising ndash polling at the 2016 Legal Practice Management conference showed that legal business managers thought it was one of the greatest hurdles to a firmrsquos growth or success only topped by acquiring high-quality staff In Knightsrsquo case the two challenges were addressed together Beech says Knightsrsquo corporate rather than partnership structure also allows it to recruit talented people without having to deal with the inherent politics of an equity partnership

ldquoAcquiring the best talent has been a central part of our growth strategy ndash if a candidate can help the business through expertise or client following we can just recruit themrdquo he added

But a successful growth strategy incorporating talent isnrsquot just about recruiting quickly as we analysed in the July 2016 issue of LPM ndash itrsquos about recruiting well Firms also need to make themselves an attractive prospect for legal talent in order to grow

William Robins operations director at Keystone Law says his firmrsquos lsquodispersedrsquo model allows it to do that by offering new fee earners the chance to work remotely with less supervision ldquoWersquore typically hiring about a lawyer a week ndash bringing their expertise fee-earning capability and client following with them ndash and that is the core part of our growth strategyrdquo The firm has buttressed its recruitment capability by hiring a director of recruitment to focus almost entirely on lawyer enrolment (recruiting talent to recruit talent ndash neat)

Though the distributed model may not be for everyone says Robins implementing some form of flexible mobile or remote working should be part of any firmrsquos growth strategy because it allows firms to increase their fee-earning capability without accruing fixed overheads such as office premises

And there are other ways to be talent-attractive As a core part of its growth strategy Newcastle-based firm Square One Law ndash which achieved 30 growth in the

last financial year ndash has pledged to create a supportive and inspirational team environment offering high-calibre work to attract the best talent Ian Gilthorpe senior partner at Square One says ldquoGood people want to be inspired to be valued for what they do and feel as though theyrsquore making a contribution The key is to engage with all your staff to facilitate a culture where staff feel happy at work work for each other trust each other and ensure that they see the value in what they do ndash if you do that more talent will comerdquo

He added that itrsquos important for

recruitment to convey staff satisfaction to the outside world which Square One has achieved by including staff video-testimonials on its website

But recruiting is only half of an effective people strategy ndash the other is retention Simpson Millar has attempted to create an environment that its talented staff wonrsquot want to leave Says Watson ldquoToo many firms worry about what will happen if their rainmaker goes somewhere else and takes clients with them ndash so they put the shackles on make them feel unhappy and make it so that they canrsquot realise their full potentialrdquo Creating such an environment makes firms an attractive target for lateral hires when they should be building a place people want to join

PRACTICE AREASSME legal businesses donrsquot necessarily need to change their business models completely to achieve the same growth as

Thorntons

Revenue pound20m

209 fee earners 430 total staff

Offices Dundee Edinburgh St Andrews Perth Cupcar Kirkcaldy Anstruther Arbroath Montrose Forfar

Specialisms Full service firm

Keystone

Revenue pound202m

198 fee earners 230 total staff

Offices London Bristol Isle of Man Australia

Specialisms Corporate and commercial dispute resolution property

LPM FACT FILE

LPM FACT FILE

Equity partnerships donrsquot grow particularly quickly because itrsquos hard to achieve consensus and make decisions that enable fundamental or rapid growth among equity partners David Beech CEO Knights

Simpson Millar

Revenue pound316m

322 fee earners 539 total staff

Offices Birmingham Bristol Cardiff Cheadle Hulme Gateshead Kingston-upon-Thames Lancaster Leeds Park Place Leeds St Pauls Street (head office) London Manchester Newcastle

Specialisms Full service firm

LPM FACT FILE

LEGAL PRACTICE MANAGEMENT34

SEPTEMBER 2016FEATURES

our examples but removing blockers from decision-making making themselves more attractive to talent and finding the right funding for growth are increasingly important and the partnership structure may not enable it

But of course that means asking some turkeys to vote in a Yuletide election Fortunately there are other ways to achieve impressive growth mainly investment andor expansion into new geographic or practice areas

Watson says that Simpson Millar wouldnrsquot have been an attractive prospect to Fairpoint had the firm not spent time growing organically by expanding into new areas of law

ldquoWe went from being a predominantly trade union PI firm to having a broad base of 16 types of work ndash with strong heads in charge of each committed to driving growth in their departments ndash which gave us a large boost in revenuerdquo The firm achieved this through small acquisitions of other firms that had expertise in particularly lucrative areas of law

But firms shouldnrsquot just look at expanding in lucrative areas ndash they should focus on areas where their reputations deliver an advantage Scotlandrsquos Thorntons for example ndash which last year leapt from 134 to 108 in the 2015 UK 200 rankings ndash invested in six departments as part of its growth strategy

Thorntons joint managing partner Scott Milne says ldquoWe didnrsquot exclude other areas but we saw that these areas were profitable and that more importantly we had considerable expertise in them ndash we also considered that these are areas that are unlikely to be affected by future economic downturnrdquo This included investing in niche areas of law where the firm has a geographic competitive advantage ldquoWersquore lucky to be surrounded by some of the best farmland in the UK ndash wersquore well known for our expertise in rural business law which is why we invested heavily in itrdquo

ORGANIC V ACQUISITIONIn several ways choosing an effective growth strategy very much boils down to MampA versus organic growth ndash every business model talent or area expansion strategy appears to revolve around one or both But which is the best to achieve the kind of growth thatrsquoll propel firms to a lsquohockey stickrsquo on their revenue forecasts The short answer is it depends on whatrsquos best for a firm at a given time It either

needs to fit the firm ndash or the firm needs to change to fit the goal

Beech says that acquisition has been excellent for Knights because itrsquos a fast and effective form of expansion ndash the acquisition of Darbys more than doubled its revenue But MampA poses a significant challenge to finding firms with the right cultural fit

ldquoFirms need to establish a single culture in order to implement growth ndash everyone needs to be working towards the same goalrdquo He added that when a firm completes a merger or acquisition that firm has to be integrated from day one which is much more difficult if it has a significantly different culture Knights is planning to continue recruiting and complete more acquisitions in the next year to maintain the growth curve

Of course the big problem with acquisition is money Robins at Keystone says his firm lies at the opposite end of this

INFORMATION IS EMPOWERING

Lemington Spa-based firm Wright Hassall has a specific goal of breaking into the top 100 and as part of its growth strategy expanded into areas of the UK where its expertise is highly sought after ndash using customer relationship management in the background to underpin the firmrsquos activities in specific areas Martyn Wells IT director at the firm says ldquoWersquove zoomed in on specific industry sectors that we know are performing well in the Midlands sectors where we have a superb reputationrdquo Expanding geographically as Wells outlines needs data to get right Thorntons for example identified various lsquomicro-marketsrsquo in Scotland close to its base of operations ldquoWe acquired a firm in St Andrews because itrsquos like a micro-economy (or micro-market) that doesnrsquot seem to be affected by price drops in the residential market elsewhererdquo says Thorntons joint managing partner Scott Milne Knights has another take on the geographic targeting idea ndash it intends to stay out of the large cities (London Manchester Leeds for example) and expand into areas where there is little competition As David Beech CEO at Knights explains ldquoLast September we acquired a small team in Chester of about 11 lawyers and now thatrsquos expanded to just over 70 ndash and the main reason wersquove been able to do that is because there isnrsquot a lot of competition thererdquoUltimately this all comes down to research finding out what to invest in or where to expand and perhaps most importantly finding out what clients want

LEGAL PRACTICE MANAGEMENT35

SEPTEMBER 2016FEATURES

spectrum to the way Knights has grown emphasising organic growth finding innovative means to attract talent using technology to drive efficiency and branching out into new areas of law or new markets to achieve significant growth

Square One Law also espouses the organic route ndash believing that firms with growth in mind should focus on ensuring their external brand reflects the businessrsquos internal culture and behaviours of its team creating lsquosynergyrsquo between the business and its clients

Gilthorpe says ldquoMergers ndash and there is no such thing as a true merger ndash and acquisitions can be a distraction as you look to create a new culture and separate the wheat from the chaff and this can soak up a lot of energy that would otherwise be put to use in driving the progression of the business and the focus on client servicerdquo

The best option for some firms may be a

calculated combination of MampA and organic Thorntons for example having made several acquisitions is now focusing on organic growth moving away from geographical expansion and towards developing locations and its brand

Watson at Simpson Millar sums the mixed approach up thus ldquoItrsquos a mixture Acquisition is still very much a part of the mix but in parallel to that itrsquos important to demonstrate that yoursquore developing ongoing work rather than being driven solely by acquisitionrdquo

There are clearly many different ways to achieve healthy and assertive growth though there are no easy answers as to which way is right for your firm But it is clear that growth doesnrsquot have to happen in the ways many have previously achieved it ndash innovation and lateral thinking are the means of achieving significant growth (which might one day propel you into the top 100 you never know) LPM

LEGAL PRACTICE MANAGEMENT36

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

INDUSTRY VIEWS

36LEGAL PRACTICE MANAGEMENT

Legal is becoming an ever more digital industry giving firms the chance to become more efficient flexible agile and collaborative

INDUSTRY VIEWS INDEX

ONLINEOFFICES

36

SPONSORED EDITORIAL

INDUSTRY VIEWS

37 INTERVIEW

Paperless processLinetimersquos Tony Klejnow explains the benefits of using matter management software for law firms and their clients

39 INTERVIEW

Virtual expansionNigel Redwood Nasstarrsquos CEO talks about the advantages of having a managed flexible IT infrastructure

LEGAL PRACTICE MANAGEMENT37

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT37

Competition and price pressures and an increasingly digital client base are all significant drivers for law firms to become paperless

businesses Tony Klejnow Linetimersquos managing director says firms could achieve competitive advantage by introducing paperless solutions across their businesses ndash but a particular lsquoeasy winrsquo area is matter management

ldquoFee earners are required to keep detailed records of their cases but the amount of time and money they waste physically printing filing looking for collaborating on and updating files is alarmingrdquo says Klejnow Law firms have traditionally been reluctant to adopt paperless

workflow solutions he adds because workflow doesnrsquot apply to 99 of fee earnersrsquo work ldquoBut if they adopted paperless solutions in their back office processes they could reduce costs without affecting client service boost productivity and promote collaboration ndash making them more efficient flexible and cost effective and making them more competitive in an ever-changing legal marketrdquo

MATTER MATTERSDocument and matter management tools ndash like those in Linetimersquos legal software product Liberate ndash electronically store and organise all case documentation in an online database Klejnow says that there are two immediate benefits of paperless matter

PAPERLESS PROCESS

Tony Klejnow managing director at Linetime talks to LPM about the benefits of the paperless office ndash starting with filing and back office processes

INDUSTRY VIEWS

Linetime is a specialist provider of Microsoft-based practice and case management solutions Clients include mid-tier law firms and in-house legal departmentswwwlinetimecouk

ABOUT THE SPONSOR

SPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT38

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT 38

management The first is reducing paper and storage costs

ldquoIf case documentation is electronically stored once a case is finished you no longer have a five-inches-thick file that has to be stored for six years ndash which has to reside somewhere and costs firms time space and moneyrdquo The second is eliminating filing time ndash for example instead of printing and filing emails and attachments fee earners drag and drop emails directly from Outlook into the database ldquoand attachments are automatically stripped from emails and appropriately filedrdquo says Klejnow

And Klejnow says paperless filing systems donrsquot just facilitate efficiency this way ndash they also improve general process efficiency by facilitating collaboration between fee earners Solicitors can use document and matter management to view and work on matters at the same time a difficult if not impossible prospect when working with paper files Klejnow says ldquoWithout document management legal professionals work in silos but with it they immediately share datardquo He adds that Liberate has an additional collaboration tool to help further improve collaborative efficiency in firms ldquoIf I choose to lsquocollaboratersquo a document with you on Liberate Outlook will prompt you to review that document by simply acknowledging the notificationrdquo

In this respect moving to become a paperless business provides greater flexibility for fee earners who can collaborate with colleagues working remotely or in different offices Klejnow says ldquoPaper files can only reside in one location but electronic files can be accessed from any office and when working from home or with clientsrdquo On the other side of the coin having digital files maintains a greater level of productivity in a law firm office ldquoIf your colleague is absent from the office you can easily find documents that you might have otherwise wasted a significant portion of your day looking forrdquo he adds

Improved external collaboration is also a benefit that firms can reap from paperless matter management With an electronic system you can go into a case history bundle documents into one PDF file and quickly submit that to the third party improving collaboration between fee earners and clients who want to do everything online This has the added benefit of improving accuracy and facilitating greater efficiency by involving clients in the process ldquoGood matter management software should also let you push e-forms to clients to be filled in and that information is automatically transferred straight to the online database ndash which saves fee earners

time and is a more accurate because the information doesnrsquot have to be constantly re-enteredrdquo says Klejnow

This extra level of collaboration within legal businesses that hasnrsquot been possible until now has long been needed because it improves efficiency and productivity which makes the business more profitable and competitive Klejnow adds that what firms save by adopting matter management they should reinvest in becoming fully paperless digital businesses

ldquoCase management solutions can improve efficiency to an even greater extent and keep firms competitive in the age of the alternative business structuresrdquo

VISIBLE COMPLIANCEIn response to firms reluctant to adopt paperless technologies like document and matter management for fear of losing delicate information to cybercriminals Klejnow says those systems provide an additional level of security ldquoTaking data and attachments out of Outlook and storing them on a database is much more secure than leaving them on your hard drive If you leave

your laptop on a train for example all your important data is safely stored on a server and not instantly accessible by opportunist criminalsrdquo

Document and matter management also offers a greater level of security in fee earner and client communications ldquoIf I want you to check that the data we have for you is accurate Liberate will

direct you to a page holding your data and at the same time it will push out an SMS text with a pin code to your phone Unless you input the code you canrsquot get to the web page ndash which means if one of your solicitors accidentally sends an email to the wrong person or itrsquos intercepted it doesnrsquot matter The data stays safe ndash this level of security is crucial in this age of cybercrimerdquo

These security features clearly have significant benefits for compliance which is important in a market increasingly dictated by regulation including the relatively new General Data Protection Regulation says Klejnow

ldquoCompliance officers need to be seen by regulators to have monitored and reviewed everything thatrsquos happened in their firm which is considerably easier with a paperless system Liberate has lsquoversion controlrsquo which allows compliance officers to keep tabs on every change made to a document as well as a compliance module which lets them view whatrsquos happening on a case (to ensure that money laundering checks have been carried out and so on) and records the fact that yoursquove reviewed thisrdquo LPM

Without document management legal professionals work in silos but with it they immediately share data

INTERVIEW

LEGAL PRACTICE MANAGEMENT39

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LPM readers may already know the Nasstar Group ndash but by a different name Nasstar was launched by regular LPM-contributor e-knownet to consolidate four discrete hosted

managed IT businesses (including e-knownet) after a period of significant acquisition Nigel Redwood chief executive officer at Nasstar says merger and acquisition and consolidating brands is challenging but having a flexible hosted IT infrastructure makes the process significantly easier

ldquoManaged IT services are enormously beneficial for firms that are expanding or consolidating particularly after MampA in terms of time and productivity cost savings and flexibilityrdquo He adds that by just having managed desktops firms can attain competitive advantage by reducing overheads and becoming more flexible and agile

Nasstar has experience helping SME firms with their IT systems after MampA and knows what problems to look out for creating unity among staff used to using different systems and processes the cost and time it takes to expand an IT infrastructure and the geographic distance between new offices

Redwood says that MampA can be an excellent way for legal businesses to expand into new sectors but that consolidating new departments using different IT systems and processes is challenging

ldquoOur acquisitions for example introduced new sector focuses for us in the SME legal market ndash wersquove consolidated these into a wider service base under Nasstar and facilitated unity among staff using virtual IT solutions

rdquoVirtual IT solutions help facilitate unity across the business by providing a level of consistency in an IT infrastructure Everyone immediately uses the same applications on the same versions from wherever theyrsquore working creating unity faster collaboration across teams and effective information sharingrdquo Hosted IT infrastructures are also continually updated giving staff instant access to new updates applications and technologies as they become available

The next significant challenge firms face after MampA is expanding their IT infrastructure to accommodate an influx of new staff ndash but Redwood says virtual IT solutions let firms expand their IT infrastructure at the flick of a switch

ldquoWith virtual IT firms arenrsquot held back by the size of their servers or the amount of computer power theyrsquove got ndash they simply call their IT provider and ask for an upgrade when previously theyrsquod have been

subject to lengthy and costly IT upgradesrdquo Virtual IT solutions are also easy to budget for

Redwood says ldquoYoursquore not going to be surprised by an increased fixed asset expenditure ndash services like those offered by Nasstar are an operational cost and fixed per user per month through a scalable cost modelrdquo

Geographic distance inhibiting collaboration between merged offices is also a key consideration for firms after MampA but virtual IT solutions solve this problem Redwood says a virtual IT infrastructure can minimise travel through the use of hosted virtual meeting rooms and video technology Staff can use this technology from virtually anywhere which is why it also lends itself well to remote flexible or mobile working set-ups

VIRTUAL WORKPLACERemote working is becoming an increasingly present feature of the legal landscape because of its cost saving and recruitment and retention advantages ndash the majority of firms at the LPM conference 2016 were moving towards a flexible remote or mobile working set-up or already had one

Redwood says virtual IT solutions better enable staff who work remotely ldquoHosted managed desktop solutions for example let staff work with the same applications from any device in the world safely and securelyrdquo

But remote working isnrsquot only about enabling the current workforce itrsquos about attracting future talent Redwood says that millennials donrsquot necessarily want to work as their predecessors did ndash they expect greater flexibility in the workplace which at one level can be achieved by remote working facilitated by a managed desktop

ldquoAnd itrsquos not only about attracting millennialsrdquo he says ldquoSME firms with flexible working set-ups are becoming more attractive to experienced legal talent who may be frustrated by the rigidity of their firmrdquo As a firm expands its workforce in this manner firms with virtual IT solutions reap the lsquodoublersquo cost saving benefits of not having to expand their premises or IT infrastructure accordingly

Some firms are resistant to remote working based on hosted IT services believing they arenrsquot secure ndash but Redwood says that argument ldquocan be put to bedrdquo

ldquoFor an in-house IT team to have the level of security that an organisation like ours can deliver is near impossible financially as well as in terms of the

VIRTUALSANITYNigel Redwood CEO at Nasstar talks to LPM about how managed IT can help SME firms achieve competitive advantage by making them more agile and flexible

LEGAL PRACTICE MANAGEMENT40

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

INTERVIEW

level of systems and technologies they deployrdquo Cybercrime is of course a scary and constantly evolving threat but Redwood points out that virtual IT systems have dedicated teams monitoring these threats evolving cyber defences and changing systems accordingly

ldquoThis capability not only makes [firms] a lot more secure but gives peace of mind in terms of compliancerdquo

ONLINE ADVANTAGE Redwood says virtual IT infrastructures donrsquot just pertain to lsquobig lawrsquo but to SME firms as well ndash perhaps more so

ldquoVirtual IT systems are a way for SME firms to stay competitive against their larger

counterparts and ABSs ndash it gives them a greater ability to expand it lets them adopt more flexible and agile models and is easy to budget forrdquo Firms can also expect virtual IT solutions to enable better alignment of IT resources to business needs enhanced usability with anywhere anytime access and in-built business continuity

But the greatest advantage virtual IT offers SME firms over big law is agility Redwood says ldquoBig IT departments in firms can be slow to react cumbersome and held back by the limitations of hardware infrastructure and security issues ndash all of that is removed with a solution like ours and the customer has access to fast-moving agile ITrdquo LPM

ABOUT THE SPONSOR

Nasstar is a provider of managed IT services and tailor-made cloud hosted solutions ndash delivering innovative secure and agile IT to help clients accomplish their business objectiveswwwnasstarcom

Page 23: LPM September 2016

LEGAL PRACTICE MANAGEMENT24

SEPTEMBER 2016LPM INSIGHTS

offering a more flexible remote or mobile working set-up for everyone in a firm is an excellent way to attract talent (Keystonersquos model of course is founded on remote working) Perhaps the majority of legal management leaders polled at the 2016 LPM conference agree since their firms have either adopted a flexible remote or mobile working set-up are planning to adopt one or are considering adopting one ndash though there are other advantages to remote working such as reducing overheads In any case the results indicate that the SME legal working landscape is becoming considerably more flexible

But remote working doesnrsquot work for everyone Mary Mocklow CEO at West Midlands firm Talbots Law and 2016 LPM conference delegate says that their high-street set-up wouldnrsquot allow it ldquoThe majority of our staff are client-facing and need to be present at the office ndash and while there are other staff at Talbots that might benefit from remote working you canrsquot have a policy for one and not for allrdquo

CYBER THREATSTechnology was clearly a significant concern for legal management leaders who attended the 2016 LPM conference Patterson at Thackray Williams says some firms have had a hard time finding software that caters to their needs as a business and an LPM conference poll seems to back this up just under half of legal management leaders polled at the conference thought project teams should write law firm software indicating a desire for cross-department input into its creation But the poll also indicates that legal software providers have to a large extent been meeting their clientsrsquo needs

The rising threat of cybercrime was also a clear concern for LPM conference delegates ndash 92 of SME legal management leaders said their firms have cyber risk on their management meeting agendas Stuttaford at TSP says ldquoItrsquos something firms need to be constantly aware of and take precautions against not just by purchasing good firewall and antivirus software but by educating staff about password discipline authentication processes and suchrdquo

32 18 14 33 3

Is cyber risk on your management meeting agenda

92

5 3

Yes No Dont know

Is your firm moving to a more flexible workingremote or mobile working set-up for everyone in it

YesNoConsidering itWe already do itDont know

LEGAL PRACTICE MANAGEMENT25

SEPTEMBER 2016LPM INSIGHTS

PRESSURES AND PRICINGClient pressures on cost was also a major concern for legal management leaders polled at the conference so it may not be surprising that just over half of them said 50 or more of their firmrsquos work is some form of fixed fee This doesnrsquot necessarily suggest that the other half arenrsquot open to the concept of fixed fee ndash Mocklow at Talbots points out that fixed fees work for certain types of work ldquoHigh-street firms like Talbots can benefit greatly from fixed fees which is why 75 of our work is fixed fee but itrsquos more difficult to apply to firms that specialise in something like admiralty lawrdquo

The industry seems to think that the value of service has been lost to the price obsession in some areas but not in others ndash and while pricing is clearly a vital issue for SME firms 88 of legal management leaders polled at the LPM conference thought that itrsquos lsquoone of a range of important factorsrsquo or lsquonot as important as other thingsrsquo Patterson at Thackray Williams says that maintaining a good relationship with clients is often more important than pricing though pricing can be a means to achieving client satisfaction ldquoIt also depends on the client ndash in something like conveyancing first-time buyers might be looking for fixed fees or the cheapest price but for commercial clients that may not be as important as reputation or relationshiprdquo

TREASURE MAPPINGLegal process mapping often used by lsquobig lawrsquo and making inroads into SME legal could potentially make SME firms a great deal more efficient and therefore more competitive Two-thirds of legal management leaders polled had heard of process mapping and 79 thought that it is relevant to the business of law Stuttaford at TSP says he agrees ldquoFirms should look at their processes learn from them and figure out how to improve those processes ndash this question really made us look at what TSP has done so far in terms of what legal processes wersquove mapped and whenrdquo

To sum up LPM conference delegates were aware of the challenges that face them but were mostly optimistic nonetheless This may be because they know they need to change and in spite of the fact that change isnrsquot really understood at their firms are planning to mend their ways to meet future market pressures ndash generally putting the client first while keeping talent and technology high on their agendas LPM

Are aware of this thing called legal process mapping

66

34

Has the value of service been lost to the price obsession

23

23

54

Yes No Depends on the service Dont know

Yes No

How important is price in winning business

8

4

67

21

CriticalMore important than almost all factorsIts one of a range of important factorsNot as important as other things such as relationshipsIts one of the less important things in reality

What is the greatest hurdle to your firmrsquos Are aware of this thing called legal process mapping

LEGAL PRACTICE MANAGEMENT27

SEPTEMBER 2016COLUMNSSPONSORED EDITORIAL

Welcome back LPM readers ndash the new school term has started summer is (pretty much) over and the UK is back in full throttle after the summer break And what a break itrsquos been at

File Queen HQ (wersquove taken the time to get our clients up and running with augustprojects as well as started our new Instagram feed filequeenadds)

With the start of the new learning year wersquore focused on the education of you lovely LPM readers ndash with our attention turning back to the General Data Protection Regulation You may remember that in our last LPM article we ran through the 12 steps to tackle the GDPR helped by the awesome people at the Information Commissionerrsquos Office ndash wersquove provided a link to their 12-step resource via our website wwwarchivestoragenetnewsgdpr

Over the next three columns wersquoll be taking these steps and breaking them down for you ndash starting with step one awareness The File Queen (myself) and the team at ADDS have been promoting this step as the most important for all legal practices

ldquoWhyrdquo we hear you holler Well this step is the all-important life raft that unites your practice and team members to help you in the GDPR fight for survival (dramatic I know)

Getting the team on board ndash this buy-in needs to include all ranks of staff ndash from the managing partners to your suppliers But how do you do this Well here are some File Queen tips for when we at ADDS are rolling out projects

Lunch and learn ndash with a register People love to eat and be social so get your legal business to book in a couple of lunch and learn sessions Donrsquot limit this to one date ndash you must run at least two or three so people have the option of which dates to attend Make sure you make a register for those that actually turn up (we all know a calendar acceptance doesnrsquot mean theyrsquoll actually appear) This will allow you to chase down the members of the team you need to get on board for the next one

Have some decent sandwiches nibbles and soft drinks and give the team an overview of the GDPR Run through the 12 steps and make sure you educate them on why everything is so important (make sure you mention the increased fines and audits) During this time let the team know that there are several steps along the way that yoursquoll need their help and support for and which you wonrsquot be able to achieve on your own Tell them that the businessrsquos reputation and brand is on the line and that you need everyone on board to lend a helping hand and spread the word

Another great File Queen tip at this stage is also to get some additional funding from the practice manager for a wine and quiz night at the end of the lunch and learn periods This can be part of your social gathering on a Friday straight after work ndash with some more nibbles and wine Assign people to teams and have a GDPR quiz The winning team gets an award and everyone has fun and learns at the same time Follow our twitter feed as wersquoll be tweeting some great questions to ask thefilequeen GDPRQUIZ

We know itrsquos a lot to organise but there are only four months left in 2016 and GDPR practices must be in place by 25 May 2018 And believe me when you have to roll out rather hard core legislation you have to make it fun and interactive to get people on board LPM

ABOUT

NATASHA RAWLEY THE FILE QUEEN

EDUCATING YOUR PROS

ADDSSaving firms from paper hellContact Natasha on0800 328 0272wwwarchivestoragenet

LEGAL PRACTICE MANAGEMENT28

SEPTEMBER 2016FEATURES

28

Patrick Wingrove talks to the founders of Proelium Law about their work providing legal advice in high-risk environments and conflict zones and the challenges of setting up shop in a new and risky area of law

Legal commandosProelium

Compared to the day-to-day lives of Proelium Law founders and partners Richard Stephens (above left) and Adrian Powell (centre) the average lawyer leads a pretty humdrum life Though UK-based the

firm has a strong international focus ndash Stephens and Powell regularly travel to provide legal and business advice to companies and individuals in high-risk professions or working in hazardous environments across the globe including conflict zones in Iraq Syria and Afghanistan Powell says that itrsquos a challenging but exciting area of law to be in and that ldquono two days are ever the samerdquo

The firm was established as an ABS in November 2015 allowing Powell and Stephens to operate as partners although Stephens isnrsquot a lawyer Powell qualified as a solicitor in 2004 after spending 11 years of his career in the British army and post-2006 worked on various high-risk projects around the world ndash giving him the inspiration for Proelium He says ldquoThe idea came to me in Baghdad in 2009 while working for a private security company as a legal adviser ndash I thought lsquoWhy isnrsquot there a firm doing thisrsquo But I soon realised that I needed someone on the ground who wasnrsquot a lawyer to help make it happenrdquo

That person was Stephens He previously served in the Royal Marines worked as a Whitehall-based strategic planner for the UK government and commanded a special operations regiment (which is why we couldnrsquot show you his face but itrsquos a nice issue of LPM) He now works primarily on the business development side of Proelium ldquoJoining Adrian who Irsquod previously worked with on projects around the

LAW FIRM PROFILE

LEGAL PRACTICE MANAGEMENT29

SEPTEMBER 2016FEATURES

world at a firm meant I could do fascinating and important work with the credibility that being a partner in a regulated business providesrdquo he says

Their work has certainly been interesting Proelium has cast its net far within the niche high-risk sector ndash advising UK-based service providers on the complexities of working in hostile environments conducting business and human rights due diligence and ensuring anti-money laundering counter terrorist-financing and anti-bribery compliance for companies intending to run in high-risk areas or conflict zones to name a few Recently theyrsquove also been working on developing capability for national intelligence organisations overseas ndash but for fear of being jailed for treason Stephens and Powell didnrsquot elaborate hellip

Powell says that the challenges companies face in these areas are numerous ldquoTherersquos a real technical knowledge in understanding how organisations physically work overseas These companies are good at what they do but that doesnrsquot necessarily translate into being business-savvy when it comes to operating in frontier markets ndash thatrsquos where Proelium adds valuerdquo For example after a client was recently exposed on an arms deal they were able to quickly discern liability and ensure that all necessary agencies and departments were appropriately informed

Powell and Stephens joke about how theyrsquore the number-one firm in their sector ndash admitting that to their knowledge theyrsquore the only firm that specialises in this area of law They added that itrsquos an untapped niche in which Proelium will be a pioneering force but which has also recently come onto the radar of a larger firm Theyrsquore alluding of course to Proeliumrsquos recent venture with Harrison Clark Rickerbys ndash a joining that combines Proeliumrsquos experience working in high-risk jurisdictions with the manpower and existing defence and security expertise of

HCR Powell says ldquoWhat they donrsquot have is our connections and our experience They like the idea of the sector because they see it as an interesting area and the partnership will allow us to offer a wealth of different legal services while letting us focus on what we do bestrdquo

As part of their ambitions for Proelium Powell and Stephens are keen to train a new generation of lawyers whorsquoll specialise in the high-risk sector ldquoWe have confidence in what the younger generation has to offer and we want them in our industry to continue our work in this relatively untapped areardquo says Powell Stephens adds that itrsquos also a matter of succession planning ldquoWe want the firm to operate long into the future but we donrsquot necessarily want to be running it ourselves for the next 20 yearsrdquo Proelium currently employs two interns as part of this commitment including University of Surrey law student Ruby Jamieson (pictured) She says ldquoWorking [at Proelium] has given me loads of insight already ndash itrsquos very niche

very new and Irsquove really enjoyed helping develop the business I feel that itrsquoll open a lot of doors when I graduaterdquo

In terms of expansion Proelium has recently opened a new office in the City of London Powell says that his home was originally the firmrsquos practising address but a large portion of their client-base is in London ldquoand we couldnrsquot keep having our meetings in coffee shopsrdquo

But Powell and Stephens are firm believers in the concept of remote working which works particularly well for their business

ldquoMost of our clients are either in London or outside the EU so Irsquom always away but all my phone calls are redirected from the new office to my mobile so I can keep in touch with clients whether Irsquom in Dubai or Baghdadrdquo says Stephens Powell adds that he feels remote working has the added benefit of keeping staff happy by letting them work from home which he says certainly makes him more productive as a fee earner

Proelium isnrsquot looking to expand into areas it has no interest in like family law but theyrsquore taking a keen interest in the emerging area of cyber law and are considering taking steps into that world ldquoLike high-risk law no onersquos really wrapped their arms around cyber law yet Therersquos cyber law in the US but it doesnrsquot exist per se in the UK except in terms of data protectionrdquo

When asked what advice they could give to SME firms based on their unique experiences in their sector Powell and Stephens said firms should know the areas of law they practise inside and out Powell says ldquoWersquore concerned with being experts in our field ndash a lot of our clients have peoplersquos lives in their hands and are not in the business of nonsense which is why they come to us We give sound researched legal advice based on experience and if we donrsquot know something we send the client to someone who doesrdquo LPM

ldquoCompanies are good at what they do but that doesnrsquot necessarily translate into being business-savvy when it comes to operating in frontier markets ndash thatrsquos where Proelium adds valuerdquo

Proelium

Two fee earners four total staff

Offices City of London Wirral Cheltenham

Specialisms International criminal commercial and conflict law due diligence sensitive investigations

LPM FACT FILE

ldquod2u is the UKrsquos number one outsourced transcription service for medical and legal professionals and highly competitive all over the world We pride ourselves on saving our clients time and money as well as offering state-of-the-art security and a first-rate servicerdquo Daryl Leigh CEO dictate2us

LPM magazine has agreed a special deal for its readers with dictate2us ndash 5 off your monthly

transcription bill for one year if you sign up through the dedicated LPM link or call and quote LPM2016 when signing up You can trial the service for free before committing

CUT COSTS INCREASE EFFICIENCYAll firms could benefit from outsourcing transcription to dictate2us ndash but even more so with our LPM deal 5 off your first year

wwwdictate2uscomlpm

Use d2u and enjoy the benefits ofbull Fast turnaround timesbull Secure and confidential servicebull Secetarial cost reductions of up to 60bull Guaranteed 985 minimum accuracybull iPhone Android and Blackberry apps with one-hour turnaroundbull 100 output - only pay for the time you talkbull Free no obligation trial

This special LPM magazine reader deal only relates to customers that execute an agreement for a minimum term of 12 months with a minimum monthly commitment of 500 minutes LPM magazine sought two law firm references for dictate2us to verify its claims for quality and delivery The 5 deal only applies to the first paying year the customer is with dictate2us LPM magazine is not responsible or liable in any way for work done by dictate2us and is an advertising referrer only

d u2 dic t a t e 2 u s

SPECIAL READER OFFER

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LPMLEGAL PRACTICE MANAGEMENT

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LEGAL PRACTICE MANAGEMENT31

SEPTEMBER 2016FEATURES

Patrick Wingrove speaks to management leaders from SME and top 100 law firms that have recently achieved significant growth to find out how to go from acorn to oak tree

FROM MINNOW TO

For many SME firms growth is the goal ndash but it doesnrsquot have to happen in the ways that many have scaled in the past The era of organic slow quiet steady partnership development over decades is

increasingly at odds with a fast-paced digital world Strategies for growth in the legal market are now closer than ever to the rest of the business world ndash and any size firm can learn how to do it

Big or small there are similar tools in the box for making growth happen and similar challenges Lessons abound but some of the best can be taken from those firms not far outside the famous lsquotop 100rsquo legal businesses in the land ndash those that have already grown up and now have the top tier in their sights There are also lessons to draw from smaller but rapidly scaling law firms

There are many growth strategies for organic and acquisitive growth ndash and no easy answer for which is right for your firm To shine a light on the subject wersquove spoken both to SME and top 100 firms about growth and how to do it (and importantly how not to do it)

MAMMOTH

LEGAL PRACTICE MANAGEMENT32

SEPTEMBER 2016FEATURES

MODELS OF GROWTH According to the Lawyer the two fastest growing firms in the top 200 this year are Midlands-based Knights and lsquodistributedrsquo firm Keystone Law ndash currently placed 119 and 122 in the 2015 UK 200 rankings but whose revenue will now put them well inside the 2016 top 100 (due for release October 2016) Both attribute their growth to non-traditional business models ndash and very different non-traditional models at that

Knights corporatised in 2014 to remove the barriers from its decision making processes which CEO David Beech says has been the key to its growth ldquoEquity partnerships donrsquot grow particularly quickly because itrsquos hard to achieve consensus and make decisions that enable fundamental or rapid growth among equity partnersrdquo

Knights acquired Oxford-based Darbys earlier this year ndash a move largely behind the revenue increase that will put them in the top 100 ndash and completed the transition inside three months which Beech says would have been next to impossible under their old business structure ldquoNot only was a quick turnaround good for the books it saved significant time and money that could be invested elsewhere in the businessrdquo he says

Top 100 firm Simpson Millar is one step

ahead of Knights The firm broke the glass ceiling to become a top 100 firm in 2015 and like Knights the firm attributes its growing success to corporatisation ndash but in a different manner

It sought to be and was eventually acquired by PLC Fairpoint Group in 2014 Simpson Millar continues to run as an LLP under the same management team and existing trading brands but as a business unit within Fairpoint

Managing partner Peter Watson says that one of the key reasons to pursue this particular growth strategy was to provide an injection of capital for MampA ldquoWe completed the sizeable acquisition of Colemans last year for example which we were only able to do with considerable investment from Fairpointrdquo

Being part of a PLC has also given the firm access to strong MampA and project management capabilities ldquoAcquiring Colemans doubled the business overnight ndash for something like that you need strong MampA experience and access to that team within Fairpoint was crucial in getting the deal across the linerdquo says Watson Simpson Millar also built a strong digital strategy launched new products and focused on pricing ldquoCall it fixed fees or packaged fees the point of it was to say to consumers

Square One Law

Revenue pound5m

31 fee earners 53 total staff

Offices Newcastle-upon-Tyne

Specialisms Commercial corporate property employment EU and competition law finance litigation private client

LPM FACT FILE

Knights

Revenue pound40m (year end 2017)

375 fee earners 450 total staff

Offices Chester Cheltenham Newcastle-under-Lyme Derby Oxford Hale

Specialisms Full service firm

LPM FACT FILE

LEGAL PRACTICE MANAGEMENT33

SEPTEMBER 2016FEATURES

lsquoWith us you know exactly what yoursquoll get and how much itrsquoll costrsquordquo

PEOPLE PLEASERSThe ability to implement change has also been an important part of delivering a growth strategy This isnrsquot necessarily surprising ndash polling at the 2016 Legal Practice Management conference showed that legal business managers thought it was one of the greatest hurdles to a firmrsquos growth or success only topped by acquiring high-quality staff In Knightsrsquo case the two challenges were addressed together Beech says Knightsrsquo corporate rather than partnership structure also allows it to recruit talented people without having to deal with the inherent politics of an equity partnership

ldquoAcquiring the best talent has been a central part of our growth strategy ndash if a candidate can help the business through expertise or client following we can just recruit themrdquo he added

But a successful growth strategy incorporating talent isnrsquot just about recruiting quickly as we analysed in the July 2016 issue of LPM ndash itrsquos about recruiting well Firms also need to make themselves an attractive prospect for legal talent in order to grow

William Robins operations director at Keystone Law says his firmrsquos lsquodispersedrsquo model allows it to do that by offering new fee earners the chance to work remotely with less supervision ldquoWersquore typically hiring about a lawyer a week ndash bringing their expertise fee-earning capability and client following with them ndash and that is the core part of our growth strategyrdquo The firm has buttressed its recruitment capability by hiring a director of recruitment to focus almost entirely on lawyer enrolment (recruiting talent to recruit talent ndash neat)

Though the distributed model may not be for everyone says Robins implementing some form of flexible mobile or remote working should be part of any firmrsquos growth strategy because it allows firms to increase their fee-earning capability without accruing fixed overheads such as office premises

And there are other ways to be talent-attractive As a core part of its growth strategy Newcastle-based firm Square One Law ndash which achieved 30 growth in the

last financial year ndash has pledged to create a supportive and inspirational team environment offering high-calibre work to attract the best talent Ian Gilthorpe senior partner at Square One says ldquoGood people want to be inspired to be valued for what they do and feel as though theyrsquore making a contribution The key is to engage with all your staff to facilitate a culture where staff feel happy at work work for each other trust each other and ensure that they see the value in what they do ndash if you do that more talent will comerdquo

He added that itrsquos important for

recruitment to convey staff satisfaction to the outside world which Square One has achieved by including staff video-testimonials on its website

But recruiting is only half of an effective people strategy ndash the other is retention Simpson Millar has attempted to create an environment that its talented staff wonrsquot want to leave Says Watson ldquoToo many firms worry about what will happen if their rainmaker goes somewhere else and takes clients with them ndash so they put the shackles on make them feel unhappy and make it so that they canrsquot realise their full potentialrdquo Creating such an environment makes firms an attractive target for lateral hires when they should be building a place people want to join

PRACTICE AREASSME legal businesses donrsquot necessarily need to change their business models completely to achieve the same growth as

Thorntons

Revenue pound20m

209 fee earners 430 total staff

Offices Dundee Edinburgh St Andrews Perth Cupcar Kirkcaldy Anstruther Arbroath Montrose Forfar

Specialisms Full service firm

Keystone

Revenue pound202m

198 fee earners 230 total staff

Offices London Bristol Isle of Man Australia

Specialisms Corporate and commercial dispute resolution property

LPM FACT FILE

LPM FACT FILE

Equity partnerships donrsquot grow particularly quickly because itrsquos hard to achieve consensus and make decisions that enable fundamental or rapid growth among equity partners David Beech CEO Knights

Simpson Millar

Revenue pound316m

322 fee earners 539 total staff

Offices Birmingham Bristol Cardiff Cheadle Hulme Gateshead Kingston-upon-Thames Lancaster Leeds Park Place Leeds St Pauls Street (head office) London Manchester Newcastle

Specialisms Full service firm

LPM FACT FILE

LEGAL PRACTICE MANAGEMENT34

SEPTEMBER 2016FEATURES

our examples but removing blockers from decision-making making themselves more attractive to talent and finding the right funding for growth are increasingly important and the partnership structure may not enable it

But of course that means asking some turkeys to vote in a Yuletide election Fortunately there are other ways to achieve impressive growth mainly investment andor expansion into new geographic or practice areas

Watson says that Simpson Millar wouldnrsquot have been an attractive prospect to Fairpoint had the firm not spent time growing organically by expanding into new areas of law

ldquoWe went from being a predominantly trade union PI firm to having a broad base of 16 types of work ndash with strong heads in charge of each committed to driving growth in their departments ndash which gave us a large boost in revenuerdquo The firm achieved this through small acquisitions of other firms that had expertise in particularly lucrative areas of law

But firms shouldnrsquot just look at expanding in lucrative areas ndash they should focus on areas where their reputations deliver an advantage Scotlandrsquos Thorntons for example ndash which last year leapt from 134 to 108 in the 2015 UK 200 rankings ndash invested in six departments as part of its growth strategy

Thorntons joint managing partner Scott Milne says ldquoWe didnrsquot exclude other areas but we saw that these areas were profitable and that more importantly we had considerable expertise in them ndash we also considered that these are areas that are unlikely to be affected by future economic downturnrdquo This included investing in niche areas of law where the firm has a geographic competitive advantage ldquoWersquore lucky to be surrounded by some of the best farmland in the UK ndash wersquore well known for our expertise in rural business law which is why we invested heavily in itrdquo

ORGANIC V ACQUISITIONIn several ways choosing an effective growth strategy very much boils down to MampA versus organic growth ndash every business model talent or area expansion strategy appears to revolve around one or both But which is the best to achieve the kind of growth thatrsquoll propel firms to a lsquohockey stickrsquo on their revenue forecasts The short answer is it depends on whatrsquos best for a firm at a given time It either

needs to fit the firm ndash or the firm needs to change to fit the goal

Beech says that acquisition has been excellent for Knights because itrsquos a fast and effective form of expansion ndash the acquisition of Darbys more than doubled its revenue But MampA poses a significant challenge to finding firms with the right cultural fit

ldquoFirms need to establish a single culture in order to implement growth ndash everyone needs to be working towards the same goalrdquo He added that when a firm completes a merger or acquisition that firm has to be integrated from day one which is much more difficult if it has a significantly different culture Knights is planning to continue recruiting and complete more acquisitions in the next year to maintain the growth curve

Of course the big problem with acquisition is money Robins at Keystone says his firm lies at the opposite end of this

INFORMATION IS EMPOWERING

Lemington Spa-based firm Wright Hassall has a specific goal of breaking into the top 100 and as part of its growth strategy expanded into areas of the UK where its expertise is highly sought after ndash using customer relationship management in the background to underpin the firmrsquos activities in specific areas Martyn Wells IT director at the firm says ldquoWersquove zoomed in on specific industry sectors that we know are performing well in the Midlands sectors where we have a superb reputationrdquo Expanding geographically as Wells outlines needs data to get right Thorntons for example identified various lsquomicro-marketsrsquo in Scotland close to its base of operations ldquoWe acquired a firm in St Andrews because itrsquos like a micro-economy (or micro-market) that doesnrsquot seem to be affected by price drops in the residential market elsewhererdquo says Thorntons joint managing partner Scott Milne Knights has another take on the geographic targeting idea ndash it intends to stay out of the large cities (London Manchester Leeds for example) and expand into areas where there is little competition As David Beech CEO at Knights explains ldquoLast September we acquired a small team in Chester of about 11 lawyers and now thatrsquos expanded to just over 70 ndash and the main reason wersquove been able to do that is because there isnrsquot a lot of competition thererdquoUltimately this all comes down to research finding out what to invest in or where to expand and perhaps most importantly finding out what clients want

LEGAL PRACTICE MANAGEMENT35

SEPTEMBER 2016FEATURES

spectrum to the way Knights has grown emphasising organic growth finding innovative means to attract talent using technology to drive efficiency and branching out into new areas of law or new markets to achieve significant growth

Square One Law also espouses the organic route ndash believing that firms with growth in mind should focus on ensuring their external brand reflects the businessrsquos internal culture and behaviours of its team creating lsquosynergyrsquo between the business and its clients

Gilthorpe says ldquoMergers ndash and there is no such thing as a true merger ndash and acquisitions can be a distraction as you look to create a new culture and separate the wheat from the chaff and this can soak up a lot of energy that would otherwise be put to use in driving the progression of the business and the focus on client servicerdquo

The best option for some firms may be a

calculated combination of MampA and organic Thorntons for example having made several acquisitions is now focusing on organic growth moving away from geographical expansion and towards developing locations and its brand

Watson at Simpson Millar sums the mixed approach up thus ldquoItrsquos a mixture Acquisition is still very much a part of the mix but in parallel to that itrsquos important to demonstrate that yoursquore developing ongoing work rather than being driven solely by acquisitionrdquo

There are clearly many different ways to achieve healthy and assertive growth though there are no easy answers as to which way is right for your firm But it is clear that growth doesnrsquot have to happen in the ways many have previously achieved it ndash innovation and lateral thinking are the means of achieving significant growth (which might one day propel you into the top 100 you never know) LPM

LEGAL PRACTICE MANAGEMENT36

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

INDUSTRY VIEWS

36LEGAL PRACTICE MANAGEMENT

Legal is becoming an ever more digital industry giving firms the chance to become more efficient flexible agile and collaborative

INDUSTRY VIEWS INDEX

ONLINEOFFICES

36

SPONSORED EDITORIAL

INDUSTRY VIEWS

37 INTERVIEW

Paperless processLinetimersquos Tony Klejnow explains the benefits of using matter management software for law firms and their clients

39 INTERVIEW

Virtual expansionNigel Redwood Nasstarrsquos CEO talks about the advantages of having a managed flexible IT infrastructure

LEGAL PRACTICE MANAGEMENT37

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT37

Competition and price pressures and an increasingly digital client base are all significant drivers for law firms to become paperless

businesses Tony Klejnow Linetimersquos managing director says firms could achieve competitive advantage by introducing paperless solutions across their businesses ndash but a particular lsquoeasy winrsquo area is matter management

ldquoFee earners are required to keep detailed records of their cases but the amount of time and money they waste physically printing filing looking for collaborating on and updating files is alarmingrdquo says Klejnow Law firms have traditionally been reluctant to adopt paperless

workflow solutions he adds because workflow doesnrsquot apply to 99 of fee earnersrsquo work ldquoBut if they adopted paperless solutions in their back office processes they could reduce costs without affecting client service boost productivity and promote collaboration ndash making them more efficient flexible and cost effective and making them more competitive in an ever-changing legal marketrdquo

MATTER MATTERSDocument and matter management tools ndash like those in Linetimersquos legal software product Liberate ndash electronically store and organise all case documentation in an online database Klejnow says that there are two immediate benefits of paperless matter

PAPERLESS PROCESS

Tony Klejnow managing director at Linetime talks to LPM about the benefits of the paperless office ndash starting with filing and back office processes

INDUSTRY VIEWS

Linetime is a specialist provider of Microsoft-based practice and case management solutions Clients include mid-tier law firms and in-house legal departmentswwwlinetimecouk

ABOUT THE SPONSOR

SPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT38

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT 38

management The first is reducing paper and storage costs

ldquoIf case documentation is electronically stored once a case is finished you no longer have a five-inches-thick file that has to be stored for six years ndash which has to reside somewhere and costs firms time space and moneyrdquo The second is eliminating filing time ndash for example instead of printing and filing emails and attachments fee earners drag and drop emails directly from Outlook into the database ldquoand attachments are automatically stripped from emails and appropriately filedrdquo says Klejnow

And Klejnow says paperless filing systems donrsquot just facilitate efficiency this way ndash they also improve general process efficiency by facilitating collaboration between fee earners Solicitors can use document and matter management to view and work on matters at the same time a difficult if not impossible prospect when working with paper files Klejnow says ldquoWithout document management legal professionals work in silos but with it they immediately share datardquo He adds that Liberate has an additional collaboration tool to help further improve collaborative efficiency in firms ldquoIf I choose to lsquocollaboratersquo a document with you on Liberate Outlook will prompt you to review that document by simply acknowledging the notificationrdquo

In this respect moving to become a paperless business provides greater flexibility for fee earners who can collaborate with colleagues working remotely or in different offices Klejnow says ldquoPaper files can only reside in one location but electronic files can be accessed from any office and when working from home or with clientsrdquo On the other side of the coin having digital files maintains a greater level of productivity in a law firm office ldquoIf your colleague is absent from the office you can easily find documents that you might have otherwise wasted a significant portion of your day looking forrdquo he adds

Improved external collaboration is also a benefit that firms can reap from paperless matter management With an electronic system you can go into a case history bundle documents into one PDF file and quickly submit that to the third party improving collaboration between fee earners and clients who want to do everything online This has the added benefit of improving accuracy and facilitating greater efficiency by involving clients in the process ldquoGood matter management software should also let you push e-forms to clients to be filled in and that information is automatically transferred straight to the online database ndash which saves fee earners

time and is a more accurate because the information doesnrsquot have to be constantly re-enteredrdquo says Klejnow

This extra level of collaboration within legal businesses that hasnrsquot been possible until now has long been needed because it improves efficiency and productivity which makes the business more profitable and competitive Klejnow adds that what firms save by adopting matter management they should reinvest in becoming fully paperless digital businesses

ldquoCase management solutions can improve efficiency to an even greater extent and keep firms competitive in the age of the alternative business structuresrdquo

VISIBLE COMPLIANCEIn response to firms reluctant to adopt paperless technologies like document and matter management for fear of losing delicate information to cybercriminals Klejnow says those systems provide an additional level of security ldquoTaking data and attachments out of Outlook and storing them on a database is much more secure than leaving them on your hard drive If you leave

your laptop on a train for example all your important data is safely stored on a server and not instantly accessible by opportunist criminalsrdquo

Document and matter management also offers a greater level of security in fee earner and client communications ldquoIf I want you to check that the data we have for you is accurate Liberate will

direct you to a page holding your data and at the same time it will push out an SMS text with a pin code to your phone Unless you input the code you canrsquot get to the web page ndash which means if one of your solicitors accidentally sends an email to the wrong person or itrsquos intercepted it doesnrsquot matter The data stays safe ndash this level of security is crucial in this age of cybercrimerdquo

These security features clearly have significant benefits for compliance which is important in a market increasingly dictated by regulation including the relatively new General Data Protection Regulation says Klejnow

ldquoCompliance officers need to be seen by regulators to have monitored and reviewed everything thatrsquos happened in their firm which is considerably easier with a paperless system Liberate has lsquoversion controlrsquo which allows compliance officers to keep tabs on every change made to a document as well as a compliance module which lets them view whatrsquos happening on a case (to ensure that money laundering checks have been carried out and so on) and records the fact that yoursquove reviewed thisrdquo LPM

Without document management legal professionals work in silos but with it they immediately share data

INTERVIEW

LEGAL PRACTICE MANAGEMENT39

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LPM readers may already know the Nasstar Group ndash but by a different name Nasstar was launched by regular LPM-contributor e-knownet to consolidate four discrete hosted

managed IT businesses (including e-knownet) after a period of significant acquisition Nigel Redwood chief executive officer at Nasstar says merger and acquisition and consolidating brands is challenging but having a flexible hosted IT infrastructure makes the process significantly easier

ldquoManaged IT services are enormously beneficial for firms that are expanding or consolidating particularly after MampA in terms of time and productivity cost savings and flexibilityrdquo He adds that by just having managed desktops firms can attain competitive advantage by reducing overheads and becoming more flexible and agile

Nasstar has experience helping SME firms with their IT systems after MampA and knows what problems to look out for creating unity among staff used to using different systems and processes the cost and time it takes to expand an IT infrastructure and the geographic distance between new offices

Redwood says that MampA can be an excellent way for legal businesses to expand into new sectors but that consolidating new departments using different IT systems and processes is challenging

ldquoOur acquisitions for example introduced new sector focuses for us in the SME legal market ndash wersquove consolidated these into a wider service base under Nasstar and facilitated unity among staff using virtual IT solutions

rdquoVirtual IT solutions help facilitate unity across the business by providing a level of consistency in an IT infrastructure Everyone immediately uses the same applications on the same versions from wherever theyrsquore working creating unity faster collaboration across teams and effective information sharingrdquo Hosted IT infrastructures are also continually updated giving staff instant access to new updates applications and technologies as they become available

The next significant challenge firms face after MampA is expanding their IT infrastructure to accommodate an influx of new staff ndash but Redwood says virtual IT solutions let firms expand their IT infrastructure at the flick of a switch

ldquoWith virtual IT firms arenrsquot held back by the size of their servers or the amount of computer power theyrsquove got ndash they simply call their IT provider and ask for an upgrade when previously theyrsquod have been

subject to lengthy and costly IT upgradesrdquo Virtual IT solutions are also easy to budget for

Redwood says ldquoYoursquore not going to be surprised by an increased fixed asset expenditure ndash services like those offered by Nasstar are an operational cost and fixed per user per month through a scalable cost modelrdquo

Geographic distance inhibiting collaboration between merged offices is also a key consideration for firms after MampA but virtual IT solutions solve this problem Redwood says a virtual IT infrastructure can minimise travel through the use of hosted virtual meeting rooms and video technology Staff can use this technology from virtually anywhere which is why it also lends itself well to remote flexible or mobile working set-ups

VIRTUAL WORKPLACERemote working is becoming an increasingly present feature of the legal landscape because of its cost saving and recruitment and retention advantages ndash the majority of firms at the LPM conference 2016 were moving towards a flexible remote or mobile working set-up or already had one

Redwood says virtual IT solutions better enable staff who work remotely ldquoHosted managed desktop solutions for example let staff work with the same applications from any device in the world safely and securelyrdquo

But remote working isnrsquot only about enabling the current workforce itrsquos about attracting future talent Redwood says that millennials donrsquot necessarily want to work as their predecessors did ndash they expect greater flexibility in the workplace which at one level can be achieved by remote working facilitated by a managed desktop

ldquoAnd itrsquos not only about attracting millennialsrdquo he says ldquoSME firms with flexible working set-ups are becoming more attractive to experienced legal talent who may be frustrated by the rigidity of their firmrdquo As a firm expands its workforce in this manner firms with virtual IT solutions reap the lsquodoublersquo cost saving benefits of not having to expand their premises or IT infrastructure accordingly

Some firms are resistant to remote working based on hosted IT services believing they arenrsquot secure ndash but Redwood says that argument ldquocan be put to bedrdquo

ldquoFor an in-house IT team to have the level of security that an organisation like ours can deliver is near impossible financially as well as in terms of the

VIRTUALSANITYNigel Redwood CEO at Nasstar talks to LPM about how managed IT can help SME firms achieve competitive advantage by making them more agile and flexible

LEGAL PRACTICE MANAGEMENT40

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

INTERVIEW

level of systems and technologies they deployrdquo Cybercrime is of course a scary and constantly evolving threat but Redwood points out that virtual IT systems have dedicated teams monitoring these threats evolving cyber defences and changing systems accordingly

ldquoThis capability not only makes [firms] a lot more secure but gives peace of mind in terms of compliancerdquo

ONLINE ADVANTAGE Redwood says virtual IT infrastructures donrsquot just pertain to lsquobig lawrsquo but to SME firms as well ndash perhaps more so

ldquoVirtual IT systems are a way for SME firms to stay competitive against their larger

counterparts and ABSs ndash it gives them a greater ability to expand it lets them adopt more flexible and agile models and is easy to budget forrdquo Firms can also expect virtual IT solutions to enable better alignment of IT resources to business needs enhanced usability with anywhere anytime access and in-built business continuity

But the greatest advantage virtual IT offers SME firms over big law is agility Redwood says ldquoBig IT departments in firms can be slow to react cumbersome and held back by the limitations of hardware infrastructure and security issues ndash all of that is removed with a solution like ours and the customer has access to fast-moving agile ITrdquo LPM

ABOUT THE SPONSOR

Nasstar is a provider of managed IT services and tailor-made cloud hosted solutions ndash delivering innovative secure and agile IT to help clients accomplish their business objectiveswwwnasstarcom

Page 24: LPM September 2016

LEGAL PRACTICE MANAGEMENT25

SEPTEMBER 2016LPM INSIGHTS

PRESSURES AND PRICINGClient pressures on cost was also a major concern for legal management leaders polled at the conference so it may not be surprising that just over half of them said 50 or more of their firmrsquos work is some form of fixed fee This doesnrsquot necessarily suggest that the other half arenrsquot open to the concept of fixed fee ndash Mocklow at Talbots points out that fixed fees work for certain types of work ldquoHigh-street firms like Talbots can benefit greatly from fixed fees which is why 75 of our work is fixed fee but itrsquos more difficult to apply to firms that specialise in something like admiralty lawrdquo

The industry seems to think that the value of service has been lost to the price obsession in some areas but not in others ndash and while pricing is clearly a vital issue for SME firms 88 of legal management leaders polled at the LPM conference thought that itrsquos lsquoone of a range of important factorsrsquo or lsquonot as important as other thingsrsquo Patterson at Thackray Williams says that maintaining a good relationship with clients is often more important than pricing though pricing can be a means to achieving client satisfaction ldquoIt also depends on the client ndash in something like conveyancing first-time buyers might be looking for fixed fees or the cheapest price but for commercial clients that may not be as important as reputation or relationshiprdquo

TREASURE MAPPINGLegal process mapping often used by lsquobig lawrsquo and making inroads into SME legal could potentially make SME firms a great deal more efficient and therefore more competitive Two-thirds of legal management leaders polled had heard of process mapping and 79 thought that it is relevant to the business of law Stuttaford at TSP says he agrees ldquoFirms should look at their processes learn from them and figure out how to improve those processes ndash this question really made us look at what TSP has done so far in terms of what legal processes wersquove mapped and whenrdquo

To sum up LPM conference delegates were aware of the challenges that face them but were mostly optimistic nonetheless This may be because they know they need to change and in spite of the fact that change isnrsquot really understood at their firms are planning to mend their ways to meet future market pressures ndash generally putting the client first while keeping talent and technology high on their agendas LPM

Are aware of this thing called legal process mapping

66

34

Has the value of service been lost to the price obsession

23

23

54

Yes No Depends on the service Dont know

Yes No

How important is price in winning business

8

4

67

21

CriticalMore important than almost all factorsIts one of a range of important factorsNot as important as other things such as relationshipsIts one of the less important things in reality

What is the greatest hurdle to your firmrsquos Are aware of this thing called legal process mapping

LEGAL PRACTICE MANAGEMENT27

SEPTEMBER 2016COLUMNSSPONSORED EDITORIAL

Welcome back LPM readers ndash the new school term has started summer is (pretty much) over and the UK is back in full throttle after the summer break And what a break itrsquos been at

File Queen HQ (wersquove taken the time to get our clients up and running with augustprojects as well as started our new Instagram feed filequeenadds)

With the start of the new learning year wersquore focused on the education of you lovely LPM readers ndash with our attention turning back to the General Data Protection Regulation You may remember that in our last LPM article we ran through the 12 steps to tackle the GDPR helped by the awesome people at the Information Commissionerrsquos Office ndash wersquove provided a link to their 12-step resource via our website wwwarchivestoragenetnewsgdpr

Over the next three columns wersquoll be taking these steps and breaking them down for you ndash starting with step one awareness The File Queen (myself) and the team at ADDS have been promoting this step as the most important for all legal practices

ldquoWhyrdquo we hear you holler Well this step is the all-important life raft that unites your practice and team members to help you in the GDPR fight for survival (dramatic I know)

Getting the team on board ndash this buy-in needs to include all ranks of staff ndash from the managing partners to your suppliers But how do you do this Well here are some File Queen tips for when we at ADDS are rolling out projects

Lunch and learn ndash with a register People love to eat and be social so get your legal business to book in a couple of lunch and learn sessions Donrsquot limit this to one date ndash you must run at least two or three so people have the option of which dates to attend Make sure you make a register for those that actually turn up (we all know a calendar acceptance doesnrsquot mean theyrsquoll actually appear) This will allow you to chase down the members of the team you need to get on board for the next one

Have some decent sandwiches nibbles and soft drinks and give the team an overview of the GDPR Run through the 12 steps and make sure you educate them on why everything is so important (make sure you mention the increased fines and audits) During this time let the team know that there are several steps along the way that yoursquoll need their help and support for and which you wonrsquot be able to achieve on your own Tell them that the businessrsquos reputation and brand is on the line and that you need everyone on board to lend a helping hand and spread the word

Another great File Queen tip at this stage is also to get some additional funding from the practice manager for a wine and quiz night at the end of the lunch and learn periods This can be part of your social gathering on a Friday straight after work ndash with some more nibbles and wine Assign people to teams and have a GDPR quiz The winning team gets an award and everyone has fun and learns at the same time Follow our twitter feed as wersquoll be tweeting some great questions to ask thefilequeen GDPRQUIZ

We know itrsquos a lot to organise but there are only four months left in 2016 and GDPR practices must be in place by 25 May 2018 And believe me when you have to roll out rather hard core legislation you have to make it fun and interactive to get people on board LPM

ABOUT

NATASHA RAWLEY THE FILE QUEEN

EDUCATING YOUR PROS

ADDSSaving firms from paper hellContact Natasha on0800 328 0272wwwarchivestoragenet

LEGAL PRACTICE MANAGEMENT28

SEPTEMBER 2016FEATURES

28

Patrick Wingrove talks to the founders of Proelium Law about their work providing legal advice in high-risk environments and conflict zones and the challenges of setting up shop in a new and risky area of law

Legal commandosProelium

Compared to the day-to-day lives of Proelium Law founders and partners Richard Stephens (above left) and Adrian Powell (centre) the average lawyer leads a pretty humdrum life Though UK-based the

firm has a strong international focus ndash Stephens and Powell regularly travel to provide legal and business advice to companies and individuals in high-risk professions or working in hazardous environments across the globe including conflict zones in Iraq Syria and Afghanistan Powell says that itrsquos a challenging but exciting area of law to be in and that ldquono two days are ever the samerdquo

The firm was established as an ABS in November 2015 allowing Powell and Stephens to operate as partners although Stephens isnrsquot a lawyer Powell qualified as a solicitor in 2004 after spending 11 years of his career in the British army and post-2006 worked on various high-risk projects around the world ndash giving him the inspiration for Proelium He says ldquoThe idea came to me in Baghdad in 2009 while working for a private security company as a legal adviser ndash I thought lsquoWhy isnrsquot there a firm doing thisrsquo But I soon realised that I needed someone on the ground who wasnrsquot a lawyer to help make it happenrdquo

That person was Stephens He previously served in the Royal Marines worked as a Whitehall-based strategic planner for the UK government and commanded a special operations regiment (which is why we couldnrsquot show you his face but itrsquos a nice issue of LPM) He now works primarily on the business development side of Proelium ldquoJoining Adrian who Irsquod previously worked with on projects around the

LAW FIRM PROFILE

LEGAL PRACTICE MANAGEMENT29

SEPTEMBER 2016FEATURES

world at a firm meant I could do fascinating and important work with the credibility that being a partner in a regulated business providesrdquo he says

Their work has certainly been interesting Proelium has cast its net far within the niche high-risk sector ndash advising UK-based service providers on the complexities of working in hostile environments conducting business and human rights due diligence and ensuring anti-money laundering counter terrorist-financing and anti-bribery compliance for companies intending to run in high-risk areas or conflict zones to name a few Recently theyrsquove also been working on developing capability for national intelligence organisations overseas ndash but for fear of being jailed for treason Stephens and Powell didnrsquot elaborate hellip

Powell says that the challenges companies face in these areas are numerous ldquoTherersquos a real technical knowledge in understanding how organisations physically work overseas These companies are good at what they do but that doesnrsquot necessarily translate into being business-savvy when it comes to operating in frontier markets ndash thatrsquos where Proelium adds valuerdquo For example after a client was recently exposed on an arms deal they were able to quickly discern liability and ensure that all necessary agencies and departments were appropriately informed

Powell and Stephens joke about how theyrsquore the number-one firm in their sector ndash admitting that to their knowledge theyrsquore the only firm that specialises in this area of law They added that itrsquos an untapped niche in which Proelium will be a pioneering force but which has also recently come onto the radar of a larger firm Theyrsquore alluding of course to Proeliumrsquos recent venture with Harrison Clark Rickerbys ndash a joining that combines Proeliumrsquos experience working in high-risk jurisdictions with the manpower and existing defence and security expertise of

HCR Powell says ldquoWhat they donrsquot have is our connections and our experience They like the idea of the sector because they see it as an interesting area and the partnership will allow us to offer a wealth of different legal services while letting us focus on what we do bestrdquo

As part of their ambitions for Proelium Powell and Stephens are keen to train a new generation of lawyers whorsquoll specialise in the high-risk sector ldquoWe have confidence in what the younger generation has to offer and we want them in our industry to continue our work in this relatively untapped areardquo says Powell Stephens adds that itrsquos also a matter of succession planning ldquoWe want the firm to operate long into the future but we donrsquot necessarily want to be running it ourselves for the next 20 yearsrdquo Proelium currently employs two interns as part of this commitment including University of Surrey law student Ruby Jamieson (pictured) She says ldquoWorking [at Proelium] has given me loads of insight already ndash itrsquos very niche

very new and Irsquove really enjoyed helping develop the business I feel that itrsquoll open a lot of doors when I graduaterdquo

In terms of expansion Proelium has recently opened a new office in the City of London Powell says that his home was originally the firmrsquos practising address but a large portion of their client-base is in London ldquoand we couldnrsquot keep having our meetings in coffee shopsrdquo

But Powell and Stephens are firm believers in the concept of remote working which works particularly well for their business

ldquoMost of our clients are either in London or outside the EU so Irsquom always away but all my phone calls are redirected from the new office to my mobile so I can keep in touch with clients whether Irsquom in Dubai or Baghdadrdquo says Stephens Powell adds that he feels remote working has the added benefit of keeping staff happy by letting them work from home which he says certainly makes him more productive as a fee earner

Proelium isnrsquot looking to expand into areas it has no interest in like family law but theyrsquore taking a keen interest in the emerging area of cyber law and are considering taking steps into that world ldquoLike high-risk law no onersquos really wrapped their arms around cyber law yet Therersquos cyber law in the US but it doesnrsquot exist per se in the UK except in terms of data protectionrdquo

When asked what advice they could give to SME firms based on their unique experiences in their sector Powell and Stephens said firms should know the areas of law they practise inside and out Powell says ldquoWersquore concerned with being experts in our field ndash a lot of our clients have peoplersquos lives in their hands and are not in the business of nonsense which is why they come to us We give sound researched legal advice based on experience and if we donrsquot know something we send the client to someone who doesrdquo LPM

ldquoCompanies are good at what they do but that doesnrsquot necessarily translate into being business-savvy when it comes to operating in frontier markets ndash thatrsquos where Proelium adds valuerdquo

Proelium

Two fee earners four total staff

Offices City of London Wirral Cheltenham

Specialisms International criminal commercial and conflict law due diligence sensitive investigations

LPM FACT FILE

ldquod2u is the UKrsquos number one outsourced transcription service for medical and legal professionals and highly competitive all over the world We pride ourselves on saving our clients time and money as well as offering state-of-the-art security and a first-rate servicerdquo Daryl Leigh CEO dictate2us

LPM magazine has agreed a special deal for its readers with dictate2us ndash 5 off your monthly

transcription bill for one year if you sign up through the dedicated LPM link or call and quote LPM2016 when signing up You can trial the service for free before committing

CUT COSTS INCREASE EFFICIENCYAll firms could benefit from outsourcing transcription to dictate2us ndash but even more so with our LPM deal 5 off your first year

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Use d2u and enjoy the benefits ofbull Fast turnaround timesbull Secure and confidential servicebull Secetarial cost reductions of up to 60bull Guaranteed 985 minimum accuracybull iPhone Android and Blackberry apps with one-hour turnaroundbull 100 output - only pay for the time you talkbull Free no obligation trial

This special LPM magazine reader deal only relates to customers that execute an agreement for a minimum term of 12 months with a minimum monthly commitment of 500 minutes LPM magazine sought two law firm references for dictate2us to verify its claims for quality and delivery The 5 deal only applies to the first paying year the customer is with dictate2us LPM magazine is not responsible or liable in any way for work done by dictate2us and is an advertising referrer only

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LPMLEGAL PRACTICE MANAGEMENT

LPMLEGAL PRACTICE MANAGEMENT

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LEGAL PRACTICE MANAGEMENT31

SEPTEMBER 2016FEATURES

Patrick Wingrove speaks to management leaders from SME and top 100 law firms that have recently achieved significant growth to find out how to go from acorn to oak tree

FROM MINNOW TO

For many SME firms growth is the goal ndash but it doesnrsquot have to happen in the ways that many have scaled in the past The era of organic slow quiet steady partnership development over decades is

increasingly at odds with a fast-paced digital world Strategies for growth in the legal market are now closer than ever to the rest of the business world ndash and any size firm can learn how to do it

Big or small there are similar tools in the box for making growth happen and similar challenges Lessons abound but some of the best can be taken from those firms not far outside the famous lsquotop 100rsquo legal businesses in the land ndash those that have already grown up and now have the top tier in their sights There are also lessons to draw from smaller but rapidly scaling law firms

There are many growth strategies for organic and acquisitive growth ndash and no easy answer for which is right for your firm To shine a light on the subject wersquove spoken both to SME and top 100 firms about growth and how to do it (and importantly how not to do it)

MAMMOTH

LEGAL PRACTICE MANAGEMENT32

SEPTEMBER 2016FEATURES

MODELS OF GROWTH According to the Lawyer the two fastest growing firms in the top 200 this year are Midlands-based Knights and lsquodistributedrsquo firm Keystone Law ndash currently placed 119 and 122 in the 2015 UK 200 rankings but whose revenue will now put them well inside the 2016 top 100 (due for release October 2016) Both attribute their growth to non-traditional business models ndash and very different non-traditional models at that

Knights corporatised in 2014 to remove the barriers from its decision making processes which CEO David Beech says has been the key to its growth ldquoEquity partnerships donrsquot grow particularly quickly because itrsquos hard to achieve consensus and make decisions that enable fundamental or rapid growth among equity partnersrdquo

Knights acquired Oxford-based Darbys earlier this year ndash a move largely behind the revenue increase that will put them in the top 100 ndash and completed the transition inside three months which Beech says would have been next to impossible under their old business structure ldquoNot only was a quick turnaround good for the books it saved significant time and money that could be invested elsewhere in the businessrdquo he says

Top 100 firm Simpson Millar is one step

ahead of Knights The firm broke the glass ceiling to become a top 100 firm in 2015 and like Knights the firm attributes its growing success to corporatisation ndash but in a different manner

It sought to be and was eventually acquired by PLC Fairpoint Group in 2014 Simpson Millar continues to run as an LLP under the same management team and existing trading brands but as a business unit within Fairpoint

Managing partner Peter Watson says that one of the key reasons to pursue this particular growth strategy was to provide an injection of capital for MampA ldquoWe completed the sizeable acquisition of Colemans last year for example which we were only able to do with considerable investment from Fairpointrdquo

Being part of a PLC has also given the firm access to strong MampA and project management capabilities ldquoAcquiring Colemans doubled the business overnight ndash for something like that you need strong MampA experience and access to that team within Fairpoint was crucial in getting the deal across the linerdquo says Watson Simpson Millar also built a strong digital strategy launched new products and focused on pricing ldquoCall it fixed fees or packaged fees the point of it was to say to consumers

Square One Law

Revenue pound5m

31 fee earners 53 total staff

Offices Newcastle-upon-Tyne

Specialisms Commercial corporate property employment EU and competition law finance litigation private client

LPM FACT FILE

Knights

Revenue pound40m (year end 2017)

375 fee earners 450 total staff

Offices Chester Cheltenham Newcastle-under-Lyme Derby Oxford Hale

Specialisms Full service firm

LPM FACT FILE

LEGAL PRACTICE MANAGEMENT33

SEPTEMBER 2016FEATURES

lsquoWith us you know exactly what yoursquoll get and how much itrsquoll costrsquordquo

PEOPLE PLEASERSThe ability to implement change has also been an important part of delivering a growth strategy This isnrsquot necessarily surprising ndash polling at the 2016 Legal Practice Management conference showed that legal business managers thought it was one of the greatest hurdles to a firmrsquos growth or success only topped by acquiring high-quality staff In Knightsrsquo case the two challenges were addressed together Beech says Knightsrsquo corporate rather than partnership structure also allows it to recruit talented people without having to deal with the inherent politics of an equity partnership

ldquoAcquiring the best talent has been a central part of our growth strategy ndash if a candidate can help the business through expertise or client following we can just recruit themrdquo he added

But a successful growth strategy incorporating talent isnrsquot just about recruiting quickly as we analysed in the July 2016 issue of LPM ndash itrsquos about recruiting well Firms also need to make themselves an attractive prospect for legal talent in order to grow

William Robins operations director at Keystone Law says his firmrsquos lsquodispersedrsquo model allows it to do that by offering new fee earners the chance to work remotely with less supervision ldquoWersquore typically hiring about a lawyer a week ndash bringing their expertise fee-earning capability and client following with them ndash and that is the core part of our growth strategyrdquo The firm has buttressed its recruitment capability by hiring a director of recruitment to focus almost entirely on lawyer enrolment (recruiting talent to recruit talent ndash neat)

Though the distributed model may not be for everyone says Robins implementing some form of flexible mobile or remote working should be part of any firmrsquos growth strategy because it allows firms to increase their fee-earning capability without accruing fixed overheads such as office premises

And there are other ways to be talent-attractive As a core part of its growth strategy Newcastle-based firm Square One Law ndash which achieved 30 growth in the

last financial year ndash has pledged to create a supportive and inspirational team environment offering high-calibre work to attract the best talent Ian Gilthorpe senior partner at Square One says ldquoGood people want to be inspired to be valued for what they do and feel as though theyrsquore making a contribution The key is to engage with all your staff to facilitate a culture where staff feel happy at work work for each other trust each other and ensure that they see the value in what they do ndash if you do that more talent will comerdquo

He added that itrsquos important for

recruitment to convey staff satisfaction to the outside world which Square One has achieved by including staff video-testimonials on its website

But recruiting is only half of an effective people strategy ndash the other is retention Simpson Millar has attempted to create an environment that its talented staff wonrsquot want to leave Says Watson ldquoToo many firms worry about what will happen if their rainmaker goes somewhere else and takes clients with them ndash so they put the shackles on make them feel unhappy and make it so that they canrsquot realise their full potentialrdquo Creating such an environment makes firms an attractive target for lateral hires when they should be building a place people want to join

PRACTICE AREASSME legal businesses donrsquot necessarily need to change their business models completely to achieve the same growth as

Thorntons

Revenue pound20m

209 fee earners 430 total staff

Offices Dundee Edinburgh St Andrews Perth Cupcar Kirkcaldy Anstruther Arbroath Montrose Forfar

Specialisms Full service firm

Keystone

Revenue pound202m

198 fee earners 230 total staff

Offices London Bristol Isle of Man Australia

Specialisms Corporate and commercial dispute resolution property

LPM FACT FILE

LPM FACT FILE

Equity partnerships donrsquot grow particularly quickly because itrsquos hard to achieve consensus and make decisions that enable fundamental or rapid growth among equity partners David Beech CEO Knights

Simpson Millar

Revenue pound316m

322 fee earners 539 total staff

Offices Birmingham Bristol Cardiff Cheadle Hulme Gateshead Kingston-upon-Thames Lancaster Leeds Park Place Leeds St Pauls Street (head office) London Manchester Newcastle

Specialisms Full service firm

LPM FACT FILE

LEGAL PRACTICE MANAGEMENT34

SEPTEMBER 2016FEATURES

our examples but removing blockers from decision-making making themselves more attractive to talent and finding the right funding for growth are increasingly important and the partnership structure may not enable it

But of course that means asking some turkeys to vote in a Yuletide election Fortunately there are other ways to achieve impressive growth mainly investment andor expansion into new geographic or practice areas

Watson says that Simpson Millar wouldnrsquot have been an attractive prospect to Fairpoint had the firm not spent time growing organically by expanding into new areas of law

ldquoWe went from being a predominantly trade union PI firm to having a broad base of 16 types of work ndash with strong heads in charge of each committed to driving growth in their departments ndash which gave us a large boost in revenuerdquo The firm achieved this through small acquisitions of other firms that had expertise in particularly lucrative areas of law

But firms shouldnrsquot just look at expanding in lucrative areas ndash they should focus on areas where their reputations deliver an advantage Scotlandrsquos Thorntons for example ndash which last year leapt from 134 to 108 in the 2015 UK 200 rankings ndash invested in six departments as part of its growth strategy

Thorntons joint managing partner Scott Milne says ldquoWe didnrsquot exclude other areas but we saw that these areas were profitable and that more importantly we had considerable expertise in them ndash we also considered that these are areas that are unlikely to be affected by future economic downturnrdquo This included investing in niche areas of law where the firm has a geographic competitive advantage ldquoWersquore lucky to be surrounded by some of the best farmland in the UK ndash wersquore well known for our expertise in rural business law which is why we invested heavily in itrdquo

ORGANIC V ACQUISITIONIn several ways choosing an effective growth strategy very much boils down to MampA versus organic growth ndash every business model talent or area expansion strategy appears to revolve around one or both But which is the best to achieve the kind of growth thatrsquoll propel firms to a lsquohockey stickrsquo on their revenue forecasts The short answer is it depends on whatrsquos best for a firm at a given time It either

needs to fit the firm ndash or the firm needs to change to fit the goal

Beech says that acquisition has been excellent for Knights because itrsquos a fast and effective form of expansion ndash the acquisition of Darbys more than doubled its revenue But MampA poses a significant challenge to finding firms with the right cultural fit

ldquoFirms need to establish a single culture in order to implement growth ndash everyone needs to be working towards the same goalrdquo He added that when a firm completes a merger or acquisition that firm has to be integrated from day one which is much more difficult if it has a significantly different culture Knights is planning to continue recruiting and complete more acquisitions in the next year to maintain the growth curve

Of course the big problem with acquisition is money Robins at Keystone says his firm lies at the opposite end of this

INFORMATION IS EMPOWERING

Lemington Spa-based firm Wright Hassall has a specific goal of breaking into the top 100 and as part of its growth strategy expanded into areas of the UK where its expertise is highly sought after ndash using customer relationship management in the background to underpin the firmrsquos activities in specific areas Martyn Wells IT director at the firm says ldquoWersquove zoomed in on specific industry sectors that we know are performing well in the Midlands sectors where we have a superb reputationrdquo Expanding geographically as Wells outlines needs data to get right Thorntons for example identified various lsquomicro-marketsrsquo in Scotland close to its base of operations ldquoWe acquired a firm in St Andrews because itrsquos like a micro-economy (or micro-market) that doesnrsquot seem to be affected by price drops in the residential market elsewhererdquo says Thorntons joint managing partner Scott Milne Knights has another take on the geographic targeting idea ndash it intends to stay out of the large cities (London Manchester Leeds for example) and expand into areas where there is little competition As David Beech CEO at Knights explains ldquoLast September we acquired a small team in Chester of about 11 lawyers and now thatrsquos expanded to just over 70 ndash and the main reason wersquove been able to do that is because there isnrsquot a lot of competition thererdquoUltimately this all comes down to research finding out what to invest in or where to expand and perhaps most importantly finding out what clients want

LEGAL PRACTICE MANAGEMENT35

SEPTEMBER 2016FEATURES

spectrum to the way Knights has grown emphasising organic growth finding innovative means to attract talent using technology to drive efficiency and branching out into new areas of law or new markets to achieve significant growth

Square One Law also espouses the organic route ndash believing that firms with growth in mind should focus on ensuring their external brand reflects the businessrsquos internal culture and behaviours of its team creating lsquosynergyrsquo between the business and its clients

Gilthorpe says ldquoMergers ndash and there is no such thing as a true merger ndash and acquisitions can be a distraction as you look to create a new culture and separate the wheat from the chaff and this can soak up a lot of energy that would otherwise be put to use in driving the progression of the business and the focus on client servicerdquo

The best option for some firms may be a

calculated combination of MampA and organic Thorntons for example having made several acquisitions is now focusing on organic growth moving away from geographical expansion and towards developing locations and its brand

Watson at Simpson Millar sums the mixed approach up thus ldquoItrsquos a mixture Acquisition is still very much a part of the mix but in parallel to that itrsquos important to demonstrate that yoursquore developing ongoing work rather than being driven solely by acquisitionrdquo

There are clearly many different ways to achieve healthy and assertive growth though there are no easy answers as to which way is right for your firm But it is clear that growth doesnrsquot have to happen in the ways many have previously achieved it ndash innovation and lateral thinking are the means of achieving significant growth (which might one day propel you into the top 100 you never know) LPM

LEGAL PRACTICE MANAGEMENT36

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

INDUSTRY VIEWS

36LEGAL PRACTICE MANAGEMENT

Legal is becoming an ever more digital industry giving firms the chance to become more efficient flexible agile and collaborative

INDUSTRY VIEWS INDEX

ONLINEOFFICES

36

SPONSORED EDITORIAL

INDUSTRY VIEWS

37 INTERVIEW

Paperless processLinetimersquos Tony Klejnow explains the benefits of using matter management software for law firms and their clients

39 INTERVIEW

Virtual expansionNigel Redwood Nasstarrsquos CEO talks about the advantages of having a managed flexible IT infrastructure

LEGAL PRACTICE MANAGEMENT37

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT37

Competition and price pressures and an increasingly digital client base are all significant drivers for law firms to become paperless

businesses Tony Klejnow Linetimersquos managing director says firms could achieve competitive advantage by introducing paperless solutions across their businesses ndash but a particular lsquoeasy winrsquo area is matter management

ldquoFee earners are required to keep detailed records of their cases but the amount of time and money they waste physically printing filing looking for collaborating on and updating files is alarmingrdquo says Klejnow Law firms have traditionally been reluctant to adopt paperless

workflow solutions he adds because workflow doesnrsquot apply to 99 of fee earnersrsquo work ldquoBut if they adopted paperless solutions in their back office processes they could reduce costs without affecting client service boost productivity and promote collaboration ndash making them more efficient flexible and cost effective and making them more competitive in an ever-changing legal marketrdquo

MATTER MATTERSDocument and matter management tools ndash like those in Linetimersquos legal software product Liberate ndash electronically store and organise all case documentation in an online database Klejnow says that there are two immediate benefits of paperless matter

PAPERLESS PROCESS

Tony Klejnow managing director at Linetime talks to LPM about the benefits of the paperless office ndash starting with filing and back office processes

INDUSTRY VIEWS

Linetime is a specialist provider of Microsoft-based practice and case management solutions Clients include mid-tier law firms and in-house legal departmentswwwlinetimecouk

ABOUT THE SPONSOR

SPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT38

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT 38

management The first is reducing paper and storage costs

ldquoIf case documentation is electronically stored once a case is finished you no longer have a five-inches-thick file that has to be stored for six years ndash which has to reside somewhere and costs firms time space and moneyrdquo The second is eliminating filing time ndash for example instead of printing and filing emails and attachments fee earners drag and drop emails directly from Outlook into the database ldquoand attachments are automatically stripped from emails and appropriately filedrdquo says Klejnow

And Klejnow says paperless filing systems donrsquot just facilitate efficiency this way ndash they also improve general process efficiency by facilitating collaboration between fee earners Solicitors can use document and matter management to view and work on matters at the same time a difficult if not impossible prospect when working with paper files Klejnow says ldquoWithout document management legal professionals work in silos but with it they immediately share datardquo He adds that Liberate has an additional collaboration tool to help further improve collaborative efficiency in firms ldquoIf I choose to lsquocollaboratersquo a document with you on Liberate Outlook will prompt you to review that document by simply acknowledging the notificationrdquo

In this respect moving to become a paperless business provides greater flexibility for fee earners who can collaborate with colleagues working remotely or in different offices Klejnow says ldquoPaper files can only reside in one location but electronic files can be accessed from any office and when working from home or with clientsrdquo On the other side of the coin having digital files maintains a greater level of productivity in a law firm office ldquoIf your colleague is absent from the office you can easily find documents that you might have otherwise wasted a significant portion of your day looking forrdquo he adds

Improved external collaboration is also a benefit that firms can reap from paperless matter management With an electronic system you can go into a case history bundle documents into one PDF file and quickly submit that to the third party improving collaboration between fee earners and clients who want to do everything online This has the added benefit of improving accuracy and facilitating greater efficiency by involving clients in the process ldquoGood matter management software should also let you push e-forms to clients to be filled in and that information is automatically transferred straight to the online database ndash which saves fee earners

time and is a more accurate because the information doesnrsquot have to be constantly re-enteredrdquo says Klejnow

This extra level of collaboration within legal businesses that hasnrsquot been possible until now has long been needed because it improves efficiency and productivity which makes the business more profitable and competitive Klejnow adds that what firms save by adopting matter management they should reinvest in becoming fully paperless digital businesses

ldquoCase management solutions can improve efficiency to an even greater extent and keep firms competitive in the age of the alternative business structuresrdquo

VISIBLE COMPLIANCEIn response to firms reluctant to adopt paperless technologies like document and matter management for fear of losing delicate information to cybercriminals Klejnow says those systems provide an additional level of security ldquoTaking data and attachments out of Outlook and storing them on a database is much more secure than leaving them on your hard drive If you leave

your laptop on a train for example all your important data is safely stored on a server and not instantly accessible by opportunist criminalsrdquo

Document and matter management also offers a greater level of security in fee earner and client communications ldquoIf I want you to check that the data we have for you is accurate Liberate will

direct you to a page holding your data and at the same time it will push out an SMS text with a pin code to your phone Unless you input the code you canrsquot get to the web page ndash which means if one of your solicitors accidentally sends an email to the wrong person or itrsquos intercepted it doesnrsquot matter The data stays safe ndash this level of security is crucial in this age of cybercrimerdquo

These security features clearly have significant benefits for compliance which is important in a market increasingly dictated by regulation including the relatively new General Data Protection Regulation says Klejnow

ldquoCompliance officers need to be seen by regulators to have monitored and reviewed everything thatrsquos happened in their firm which is considerably easier with a paperless system Liberate has lsquoversion controlrsquo which allows compliance officers to keep tabs on every change made to a document as well as a compliance module which lets them view whatrsquos happening on a case (to ensure that money laundering checks have been carried out and so on) and records the fact that yoursquove reviewed thisrdquo LPM

Without document management legal professionals work in silos but with it they immediately share data

INTERVIEW

LEGAL PRACTICE MANAGEMENT39

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LPM readers may already know the Nasstar Group ndash but by a different name Nasstar was launched by regular LPM-contributor e-knownet to consolidate four discrete hosted

managed IT businesses (including e-knownet) after a period of significant acquisition Nigel Redwood chief executive officer at Nasstar says merger and acquisition and consolidating brands is challenging but having a flexible hosted IT infrastructure makes the process significantly easier

ldquoManaged IT services are enormously beneficial for firms that are expanding or consolidating particularly after MampA in terms of time and productivity cost savings and flexibilityrdquo He adds that by just having managed desktops firms can attain competitive advantage by reducing overheads and becoming more flexible and agile

Nasstar has experience helping SME firms with their IT systems after MampA and knows what problems to look out for creating unity among staff used to using different systems and processes the cost and time it takes to expand an IT infrastructure and the geographic distance between new offices

Redwood says that MampA can be an excellent way for legal businesses to expand into new sectors but that consolidating new departments using different IT systems and processes is challenging

ldquoOur acquisitions for example introduced new sector focuses for us in the SME legal market ndash wersquove consolidated these into a wider service base under Nasstar and facilitated unity among staff using virtual IT solutions

rdquoVirtual IT solutions help facilitate unity across the business by providing a level of consistency in an IT infrastructure Everyone immediately uses the same applications on the same versions from wherever theyrsquore working creating unity faster collaboration across teams and effective information sharingrdquo Hosted IT infrastructures are also continually updated giving staff instant access to new updates applications and technologies as they become available

The next significant challenge firms face after MampA is expanding their IT infrastructure to accommodate an influx of new staff ndash but Redwood says virtual IT solutions let firms expand their IT infrastructure at the flick of a switch

ldquoWith virtual IT firms arenrsquot held back by the size of their servers or the amount of computer power theyrsquove got ndash they simply call their IT provider and ask for an upgrade when previously theyrsquod have been

subject to lengthy and costly IT upgradesrdquo Virtual IT solutions are also easy to budget for

Redwood says ldquoYoursquore not going to be surprised by an increased fixed asset expenditure ndash services like those offered by Nasstar are an operational cost and fixed per user per month through a scalable cost modelrdquo

Geographic distance inhibiting collaboration between merged offices is also a key consideration for firms after MampA but virtual IT solutions solve this problem Redwood says a virtual IT infrastructure can minimise travel through the use of hosted virtual meeting rooms and video technology Staff can use this technology from virtually anywhere which is why it also lends itself well to remote flexible or mobile working set-ups

VIRTUAL WORKPLACERemote working is becoming an increasingly present feature of the legal landscape because of its cost saving and recruitment and retention advantages ndash the majority of firms at the LPM conference 2016 were moving towards a flexible remote or mobile working set-up or already had one

Redwood says virtual IT solutions better enable staff who work remotely ldquoHosted managed desktop solutions for example let staff work with the same applications from any device in the world safely and securelyrdquo

But remote working isnrsquot only about enabling the current workforce itrsquos about attracting future talent Redwood says that millennials donrsquot necessarily want to work as their predecessors did ndash they expect greater flexibility in the workplace which at one level can be achieved by remote working facilitated by a managed desktop

ldquoAnd itrsquos not only about attracting millennialsrdquo he says ldquoSME firms with flexible working set-ups are becoming more attractive to experienced legal talent who may be frustrated by the rigidity of their firmrdquo As a firm expands its workforce in this manner firms with virtual IT solutions reap the lsquodoublersquo cost saving benefits of not having to expand their premises or IT infrastructure accordingly

Some firms are resistant to remote working based on hosted IT services believing they arenrsquot secure ndash but Redwood says that argument ldquocan be put to bedrdquo

ldquoFor an in-house IT team to have the level of security that an organisation like ours can deliver is near impossible financially as well as in terms of the

VIRTUALSANITYNigel Redwood CEO at Nasstar talks to LPM about how managed IT can help SME firms achieve competitive advantage by making them more agile and flexible

LEGAL PRACTICE MANAGEMENT40

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

INTERVIEW

level of systems and technologies they deployrdquo Cybercrime is of course a scary and constantly evolving threat but Redwood points out that virtual IT systems have dedicated teams monitoring these threats evolving cyber defences and changing systems accordingly

ldquoThis capability not only makes [firms] a lot more secure but gives peace of mind in terms of compliancerdquo

ONLINE ADVANTAGE Redwood says virtual IT infrastructures donrsquot just pertain to lsquobig lawrsquo but to SME firms as well ndash perhaps more so

ldquoVirtual IT systems are a way for SME firms to stay competitive against their larger

counterparts and ABSs ndash it gives them a greater ability to expand it lets them adopt more flexible and agile models and is easy to budget forrdquo Firms can also expect virtual IT solutions to enable better alignment of IT resources to business needs enhanced usability with anywhere anytime access and in-built business continuity

But the greatest advantage virtual IT offers SME firms over big law is agility Redwood says ldquoBig IT departments in firms can be slow to react cumbersome and held back by the limitations of hardware infrastructure and security issues ndash all of that is removed with a solution like ours and the customer has access to fast-moving agile ITrdquo LPM

ABOUT THE SPONSOR

Nasstar is a provider of managed IT services and tailor-made cloud hosted solutions ndash delivering innovative secure and agile IT to help clients accomplish their business objectiveswwwnasstarcom

Page 25: LPM September 2016

LEGAL PRACTICE MANAGEMENT27

SEPTEMBER 2016COLUMNSSPONSORED EDITORIAL

Welcome back LPM readers ndash the new school term has started summer is (pretty much) over and the UK is back in full throttle after the summer break And what a break itrsquos been at

File Queen HQ (wersquove taken the time to get our clients up and running with augustprojects as well as started our new Instagram feed filequeenadds)

With the start of the new learning year wersquore focused on the education of you lovely LPM readers ndash with our attention turning back to the General Data Protection Regulation You may remember that in our last LPM article we ran through the 12 steps to tackle the GDPR helped by the awesome people at the Information Commissionerrsquos Office ndash wersquove provided a link to their 12-step resource via our website wwwarchivestoragenetnewsgdpr

Over the next three columns wersquoll be taking these steps and breaking them down for you ndash starting with step one awareness The File Queen (myself) and the team at ADDS have been promoting this step as the most important for all legal practices

ldquoWhyrdquo we hear you holler Well this step is the all-important life raft that unites your practice and team members to help you in the GDPR fight for survival (dramatic I know)

Getting the team on board ndash this buy-in needs to include all ranks of staff ndash from the managing partners to your suppliers But how do you do this Well here are some File Queen tips for when we at ADDS are rolling out projects

Lunch and learn ndash with a register People love to eat and be social so get your legal business to book in a couple of lunch and learn sessions Donrsquot limit this to one date ndash you must run at least two or three so people have the option of which dates to attend Make sure you make a register for those that actually turn up (we all know a calendar acceptance doesnrsquot mean theyrsquoll actually appear) This will allow you to chase down the members of the team you need to get on board for the next one

Have some decent sandwiches nibbles and soft drinks and give the team an overview of the GDPR Run through the 12 steps and make sure you educate them on why everything is so important (make sure you mention the increased fines and audits) During this time let the team know that there are several steps along the way that yoursquoll need their help and support for and which you wonrsquot be able to achieve on your own Tell them that the businessrsquos reputation and brand is on the line and that you need everyone on board to lend a helping hand and spread the word

Another great File Queen tip at this stage is also to get some additional funding from the practice manager for a wine and quiz night at the end of the lunch and learn periods This can be part of your social gathering on a Friday straight after work ndash with some more nibbles and wine Assign people to teams and have a GDPR quiz The winning team gets an award and everyone has fun and learns at the same time Follow our twitter feed as wersquoll be tweeting some great questions to ask thefilequeen GDPRQUIZ

We know itrsquos a lot to organise but there are only four months left in 2016 and GDPR practices must be in place by 25 May 2018 And believe me when you have to roll out rather hard core legislation you have to make it fun and interactive to get people on board LPM

ABOUT

NATASHA RAWLEY THE FILE QUEEN

EDUCATING YOUR PROS

ADDSSaving firms from paper hellContact Natasha on0800 328 0272wwwarchivestoragenet

LEGAL PRACTICE MANAGEMENT28

SEPTEMBER 2016FEATURES

28

Patrick Wingrove talks to the founders of Proelium Law about their work providing legal advice in high-risk environments and conflict zones and the challenges of setting up shop in a new and risky area of law

Legal commandosProelium

Compared to the day-to-day lives of Proelium Law founders and partners Richard Stephens (above left) and Adrian Powell (centre) the average lawyer leads a pretty humdrum life Though UK-based the

firm has a strong international focus ndash Stephens and Powell regularly travel to provide legal and business advice to companies and individuals in high-risk professions or working in hazardous environments across the globe including conflict zones in Iraq Syria and Afghanistan Powell says that itrsquos a challenging but exciting area of law to be in and that ldquono two days are ever the samerdquo

The firm was established as an ABS in November 2015 allowing Powell and Stephens to operate as partners although Stephens isnrsquot a lawyer Powell qualified as a solicitor in 2004 after spending 11 years of his career in the British army and post-2006 worked on various high-risk projects around the world ndash giving him the inspiration for Proelium He says ldquoThe idea came to me in Baghdad in 2009 while working for a private security company as a legal adviser ndash I thought lsquoWhy isnrsquot there a firm doing thisrsquo But I soon realised that I needed someone on the ground who wasnrsquot a lawyer to help make it happenrdquo

That person was Stephens He previously served in the Royal Marines worked as a Whitehall-based strategic planner for the UK government and commanded a special operations regiment (which is why we couldnrsquot show you his face but itrsquos a nice issue of LPM) He now works primarily on the business development side of Proelium ldquoJoining Adrian who Irsquod previously worked with on projects around the

LAW FIRM PROFILE

LEGAL PRACTICE MANAGEMENT29

SEPTEMBER 2016FEATURES

world at a firm meant I could do fascinating and important work with the credibility that being a partner in a regulated business providesrdquo he says

Their work has certainly been interesting Proelium has cast its net far within the niche high-risk sector ndash advising UK-based service providers on the complexities of working in hostile environments conducting business and human rights due diligence and ensuring anti-money laundering counter terrorist-financing and anti-bribery compliance for companies intending to run in high-risk areas or conflict zones to name a few Recently theyrsquove also been working on developing capability for national intelligence organisations overseas ndash but for fear of being jailed for treason Stephens and Powell didnrsquot elaborate hellip

Powell says that the challenges companies face in these areas are numerous ldquoTherersquos a real technical knowledge in understanding how organisations physically work overseas These companies are good at what they do but that doesnrsquot necessarily translate into being business-savvy when it comes to operating in frontier markets ndash thatrsquos where Proelium adds valuerdquo For example after a client was recently exposed on an arms deal they were able to quickly discern liability and ensure that all necessary agencies and departments were appropriately informed

Powell and Stephens joke about how theyrsquore the number-one firm in their sector ndash admitting that to their knowledge theyrsquore the only firm that specialises in this area of law They added that itrsquos an untapped niche in which Proelium will be a pioneering force but which has also recently come onto the radar of a larger firm Theyrsquore alluding of course to Proeliumrsquos recent venture with Harrison Clark Rickerbys ndash a joining that combines Proeliumrsquos experience working in high-risk jurisdictions with the manpower and existing defence and security expertise of

HCR Powell says ldquoWhat they donrsquot have is our connections and our experience They like the idea of the sector because they see it as an interesting area and the partnership will allow us to offer a wealth of different legal services while letting us focus on what we do bestrdquo

As part of their ambitions for Proelium Powell and Stephens are keen to train a new generation of lawyers whorsquoll specialise in the high-risk sector ldquoWe have confidence in what the younger generation has to offer and we want them in our industry to continue our work in this relatively untapped areardquo says Powell Stephens adds that itrsquos also a matter of succession planning ldquoWe want the firm to operate long into the future but we donrsquot necessarily want to be running it ourselves for the next 20 yearsrdquo Proelium currently employs two interns as part of this commitment including University of Surrey law student Ruby Jamieson (pictured) She says ldquoWorking [at Proelium] has given me loads of insight already ndash itrsquos very niche

very new and Irsquove really enjoyed helping develop the business I feel that itrsquoll open a lot of doors when I graduaterdquo

In terms of expansion Proelium has recently opened a new office in the City of London Powell says that his home was originally the firmrsquos practising address but a large portion of their client-base is in London ldquoand we couldnrsquot keep having our meetings in coffee shopsrdquo

But Powell and Stephens are firm believers in the concept of remote working which works particularly well for their business

ldquoMost of our clients are either in London or outside the EU so Irsquom always away but all my phone calls are redirected from the new office to my mobile so I can keep in touch with clients whether Irsquom in Dubai or Baghdadrdquo says Stephens Powell adds that he feels remote working has the added benefit of keeping staff happy by letting them work from home which he says certainly makes him more productive as a fee earner

Proelium isnrsquot looking to expand into areas it has no interest in like family law but theyrsquore taking a keen interest in the emerging area of cyber law and are considering taking steps into that world ldquoLike high-risk law no onersquos really wrapped their arms around cyber law yet Therersquos cyber law in the US but it doesnrsquot exist per se in the UK except in terms of data protectionrdquo

When asked what advice they could give to SME firms based on their unique experiences in their sector Powell and Stephens said firms should know the areas of law they practise inside and out Powell says ldquoWersquore concerned with being experts in our field ndash a lot of our clients have peoplersquos lives in their hands and are not in the business of nonsense which is why they come to us We give sound researched legal advice based on experience and if we donrsquot know something we send the client to someone who doesrdquo LPM

ldquoCompanies are good at what they do but that doesnrsquot necessarily translate into being business-savvy when it comes to operating in frontier markets ndash thatrsquos where Proelium adds valuerdquo

Proelium

Two fee earners four total staff

Offices City of London Wirral Cheltenham

Specialisms International criminal commercial and conflict law due diligence sensitive investigations

LPM FACT FILE

ldquod2u is the UKrsquos number one outsourced transcription service for medical and legal professionals and highly competitive all over the world We pride ourselves on saving our clients time and money as well as offering state-of-the-art security and a first-rate servicerdquo Daryl Leigh CEO dictate2us

LPM magazine has agreed a special deal for its readers with dictate2us ndash 5 off your monthly

transcription bill for one year if you sign up through the dedicated LPM link or call and quote LPM2016 when signing up You can trial the service for free before committing

CUT COSTS INCREASE EFFICIENCYAll firms could benefit from outsourcing transcription to dictate2us ndash but even more so with our LPM deal 5 off your first year

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Use d2u and enjoy the benefits ofbull Fast turnaround timesbull Secure and confidential servicebull Secetarial cost reductions of up to 60bull Guaranteed 985 minimum accuracybull iPhone Android and Blackberry apps with one-hour turnaroundbull 100 output - only pay for the time you talkbull Free no obligation trial

This special LPM magazine reader deal only relates to customers that execute an agreement for a minimum term of 12 months with a minimum monthly commitment of 500 minutes LPM magazine sought two law firm references for dictate2us to verify its claims for quality and delivery The 5 deal only applies to the first paying year the customer is with dictate2us LPM magazine is not responsible or liable in any way for work done by dictate2us and is an advertising referrer only

d u2 dic t a t e 2 u s

SPECIAL READER OFFER

The d2u Transcriber app is free to download from Apple and Android app stores and BlackBerry App World

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LPMLEGAL PRACTICE MANAGEMENT

LPMLEGAL PRACTICE MANAGEMENT

DictateBRIEFINGv2indd 1 28042016 1336

LEGAL PRACTICE MANAGEMENT31

SEPTEMBER 2016FEATURES

Patrick Wingrove speaks to management leaders from SME and top 100 law firms that have recently achieved significant growth to find out how to go from acorn to oak tree

FROM MINNOW TO

For many SME firms growth is the goal ndash but it doesnrsquot have to happen in the ways that many have scaled in the past The era of organic slow quiet steady partnership development over decades is

increasingly at odds with a fast-paced digital world Strategies for growth in the legal market are now closer than ever to the rest of the business world ndash and any size firm can learn how to do it

Big or small there are similar tools in the box for making growth happen and similar challenges Lessons abound but some of the best can be taken from those firms not far outside the famous lsquotop 100rsquo legal businesses in the land ndash those that have already grown up and now have the top tier in their sights There are also lessons to draw from smaller but rapidly scaling law firms

There are many growth strategies for organic and acquisitive growth ndash and no easy answer for which is right for your firm To shine a light on the subject wersquove spoken both to SME and top 100 firms about growth and how to do it (and importantly how not to do it)

MAMMOTH

LEGAL PRACTICE MANAGEMENT32

SEPTEMBER 2016FEATURES

MODELS OF GROWTH According to the Lawyer the two fastest growing firms in the top 200 this year are Midlands-based Knights and lsquodistributedrsquo firm Keystone Law ndash currently placed 119 and 122 in the 2015 UK 200 rankings but whose revenue will now put them well inside the 2016 top 100 (due for release October 2016) Both attribute their growth to non-traditional business models ndash and very different non-traditional models at that

Knights corporatised in 2014 to remove the barriers from its decision making processes which CEO David Beech says has been the key to its growth ldquoEquity partnerships donrsquot grow particularly quickly because itrsquos hard to achieve consensus and make decisions that enable fundamental or rapid growth among equity partnersrdquo

Knights acquired Oxford-based Darbys earlier this year ndash a move largely behind the revenue increase that will put them in the top 100 ndash and completed the transition inside three months which Beech says would have been next to impossible under their old business structure ldquoNot only was a quick turnaround good for the books it saved significant time and money that could be invested elsewhere in the businessrdquo he says

Top 100 firm Simpson Millar is one step

ahead of Knights The firm broke the glass ceiling to become a top 100 firm in 2015 and like Knights the firm attributes its growing success to corporatisation ndash but in a different manner

It sought to be and was eventually acquired by PLC Fairpoint Group in 2014 Simpson Millar continues to run as an LLP under the same management team and existing trading brands but as a business unit within Fairpoint

Managing partner Peter Watson says that one of the key reasons to pursue this particular growth strategy was to provide an injection of capital for MampA ldquoWe completed the sizeable acquisition of Colemans last year for example which we were only able to do with considerable investment from Fairpointrdquo

Being part of a PLC has also given the firm access to strong MampA and project management capabilities ldquoAcquiring Colemans doubled the business overnight ndash for something like that you need strong MampA experience and access to that team within Fairpoint was crucial in getting the deal across the linerdquo says Watson Simpson Millar also built a strong digital strategy launched new products and focused on pricing ldquoCall it fixed fees or packaged fees the point of it was to say to consumers

Square One Law

Revenue pound5m

31 fee earners 53 total staff

Offices Newcastle-upon-Tyne

Specialisms Commercial corporate property employment EU and competition law finance litigation private client

LPM FACT FILE

Knights

Revenue pound40m (year end 2017)

375 fee earners 450 total staff

Offices Chester Cheltenham Newcastle-under-Lyme Derby Oxford Hale

Specialisms Full service firm

LPM FACT FILE

LEGAL PRACTICE MANAGEMENT33

SEPTEMBER 2016FEATURES

lsquoWith us you know exactly what yoursquoll get and how much itrsquoll costrsquordquo

PEOPLE PLEASERSThe ability to implement change has also been an important part of delivering a growth strategy This isnrsquot necessarily surprising ndash polling at the 2016 Legal Practice Management conference showed that legal business managers thought it was one of the greatest hurdles to a firmrsquos growth or success only topped by acquiring high-quality staff In Knightsrsquo case the two challenges were addressed together Beech says Knightsrsquo corporate rather than partnership structure also allows it to recruit talented people without having to deal with the inherent politics of an equity partnership

ldquoAcquiring the best talent has been a central part of our growth strategy ndash if a candidate can help the business through expertise or client following we can just recruit themrdquo he added

But a successful growth strategy incorporating talent isnrsquot just about recruiting quickly as we analysed in the July 2016 issue of LPM ndash itrsquos about recruiting well Firms also need to make themselves an attractive prospect for legal talent in order to grow

William Robins operations director at Keystone Law says his firmrsquos lsquodispersedrsquo model allows it to do that by offering new fee earners the chance to work remotely with less supervision ldquoWersquore typically hiring about a lawyer a week ndash bringing their expertise fee-earning capability and client following with them ndash and that is the core part of our growth strategyrdquo The firm has buttressed its recruitment capability by hiring a director of recruitment to focus almost entirely on lawyer enrolment (recruiting talent to recruit talent ndash neat)

Though the distributed model may not be for everyone says Robins implementing some form of flexible mobile or remote working should be part of any firmrsquos growth strategy because it allows firms to increase their fee-earning capability without accruing fixed overheads such as office premises

And there are other ways to be talent-attractive As a core part of its growth strategy Newcastle-based firm Square One Law ndash which achieved 30 growth in the

last financial year ndash has pledged to create a supportive and inspirational team environment offering high-calibre work to attract the best talent Ian Gilthorpe senior partner at Square One says ldquoGood people want to be inspired to be valued for what they do and feel as though theyrsquore making a contribution The key is to engage with all your staff to facilitate a culture where staff feel happy at work work for each other trust each other and ensure that they see the value in what they do ndash if you do that more talent will comerdquo

He added that itrsquos important for

recruitment to convey staff satisfaction to the outside world which Square One has achieved by including staff video-testimonials on its website

But recruiting is only half of an effective people strategy ndash the other is retention Simpson Millar has attempted to create an environment that its talented staff wonrsquot want to leave Says Watson ldquoToo many firms worry about what will happen if their rainmaker goes somewhere else and takes clients with them ndash so they put the shackles on make them feel unhappy and make it so that they canrsquot realise their full potentialrdquo Creating such an environment makes firms an attractive target for lateral hires when they should be building a place people want to join

PRACTICE AREASSME legal businesses donrsquot necessarily need to change their business models completely to achieve the same growth as

Thorntons

Revenue pound20m

209 fee earners 430 total staff

Offices Dundee Edinburgh St Andrews Perth Cupcar Kirkcaldy Anstruther Arbroath Montrose Forfar

Specialisms Full service firm

Keystone

Revenue pound202m

198 fee earners 230 total staff

Offices London Bristol Isle of Man Australia

Specialisms Corporate and commercial dispute resolution property

LPM FACT FILE

LPM FACT FILE

Equity partnerships donrsquot grow particularly quickly because itrsquos hard to achieve consensus and make decisions that enable fundamental or rapid growth among equity partners David Beech CEO Knights

Simpson Millar

Revenue pound316m

322 fee earners 539 total staff

Offices Birmingham Bristol Cardiff Cheadle Hulme Gateshead Kingston-upon-Thames Lancaster Leeds Park Place Leeds St Pauls Street (head office) London Manchester Newcastle

Specialisms Full service firm

LPM FACT FILE

LEGAL PRACTICE MANAGEMENT34

SEPTEMBER 2016FEATURES

our examples but removing blockers from decision-making making themselves more attractive to talent and finding the right funding for growth are increasingly important and the partnership structure may not enable it

But of course that means asking some turkeys to vote in a Yuletide election Fortunately there are other ways to achieve impressive growth mainly investment andor expansion into new geographic or practice areas

Watson says that Simpson Millar wouldnrsquot have been an attractive prospect to Fairpoint had the firm not spent time growing organically by expanding into new areas of law

ldquoWe went from being a predominantly trade union PI firm to having a broad base of 16 types of work ndash with strong heads in charge of each committed to driving growth in their departments ndash which gave us a large boost in revenuerdquo The firm achieved this through small acquisitions of other firms that had expertise in particularly lucrative areas of law

But firms shouldnrsquot just look at expanding in lucrative areas ndash they should focus on areas where their reputations deliver an advantage Scotlandrsquos Thorntons for example ndash which last year leapt from 134 to 108 in the 2015 UK 200 rankings ndash invested in six departments as part of its growth strategy

Thorntons joint managing partner Scott Milne says ldquoWe didnrsquot exclude other areas but we saw that these areas were profitable and that more importantly we had considerable expertise in them ndash we also considered that these are areas that are unlikely to be affected by future economic downturnrdquo This included investing in niche areas of law where the firm has a geographic competitive advantage ldquoWersquore lucky to be surrounded by some of the best farmland in the UK ndash wersquore well known for our expertise in rural business law which is why we invested heavily in itrdquo

ORGANIC V ACQUISITIONIn several ways choosing an effective growth strategy very much boils down to MampA versus organic growth ndash every business model talent or area expansion strategy appears to revolve around one or both But which is the best to achieve the kind of growth thatrsquoll propel firms to a lsquohockey stickrsquo on their revenue forecasts The short answer is it depends on whatrsquos best for a firm at a given time It either

needs to fit the firm ndash or the firm needs to change to fit the goal

Beech says that acquisition has been excellent for Knights because itrsquos a fast and effective form of expansion ndash the acquisition of Darbys more than doubled its revenue But MampA poses a significant challenge to finding firms with the right cultural fit

ldquoFirms need to establish a single culture in order to implement growth ndash everyone needs to be working towards the same goalrdquo He added that when a firm completes a merger or acquisition that firm has to be integrated from day one which is much more difficult if it has a significantly different culture Knights is planning to continue recruiting and complete more acquisitions in the next year to maintain the growth curve

Of course the big problem with acquisition is money Robins at Keystone says his firm lies at the opposite end of this

INFORMATION IS EMPOWERING

Lemington Spa-based firm Wright Hassall has a specific goal of breaking into the top 100 and as part of its growth strategy expanded into areas of the UK where its expertise is highly sought after ndash using customer relationship management in the background to underpin the firmrsquos activities in specific areas Martyn Wells IT director at the firm says ldquoWersquove zoomed in on specific industry sectors that we know are performing well in the Midlands sectors where we have a superb reputationrdquo Expanding geographically as Wells outlines needs data to get right Thorntons for example identified various lsquomicro-marketsrsquo in Scotland close to its base of operations ldquoWe acquired a firm in St Andrews because itrsquos like a micro-economy (or micro-market) that doesnrsquot seem to be affected by price drops in the residential market elsewhererdquo says Thorntons joint managing partner Scott Milne Knights has another take on the geographic targeting idea ndash it intends to stay out of the large cities (London Manchester Leeds for example) and expand into areas where there is little competition As David Beech CEO at Knights explains ldquoLast September we acquired a small team in Chester of about 11 lawyers and now thatrsquos expanded to just over 70 ndash and the main reason wersquove been able to do that is because there isnrsquot a lot of competition thererdquoUltimately this all comes down to research finding out what to invest in or where to expand and perhaps most importantly finding out what clients want

LEGAL PRACTICE MANAGEMENT35

SEPTEMBER 2016FEATURES

spectrum to the way Knights has grown emphasising organic growth finding innovative means to attract talent using technology to drive efficiency and branching out into new areas of law or new markets to achieve significant growth

Square One Law also espouses the organic route ndash believing that firms with growth in mind should focus on ensuring their external brand reflects the businessrsquos internal culture and behaviours of its team creating lsquosynergyrsquo between the business and its clients

Gilthorpe says ldquoMergers ndash and there is no such thing as a true merger ndash and acquisitions can be a distraction as you look to create a new culture and separate the wheat from the chaff and this can soak up a lot of energy that would otherwise be put to use in driving the progression of the business and the focus on client servicerdquo

The best option for some firms may be a

calculated combination of MampA and organic Thorntons for example having made several acquisitions is now focusing on organic growth moving away from geographical expansion and towards developing locations and its brand

Watson at Simpson Millar sums the mixed approach up thus ldquoItrsquos a mixture Acquisition is still very much a part of the mix but in parallel to that itrsquos important to demonstrate that yoursquore developing ongoing work rather than being driven solely by acquisitionrdquo

There are clearly many different ways to achieve healthy and assertive growth though there are no easy answers as to which way is right for your firm But it is clear that growth doesnrsquot have to happen in the ways many have previously achieved it ndash innovation and lateral thinking are the means of achieving significant growth (which might one day propel you into the top 100 you never know) LPM

LEGAL PRACTICE MANAGEMENT36

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

INDUSTRY VIEWS

36LEGAL PRACTICE MANAGEMENT

Legal is becoming an ever more digital industry giving firms the chance to become more efficient flexible agile and collaborative

INDUSTRY VIEWS INDEX

ONLINEOFFICES

36

SPONSORED EDITORIAL

INDUSTRY VIEWS

37 INTERVIEW

Paperless processLinetimersquos Tony Klejnow explains the benefits of using matter management software for law firms and their clients

39 INTERVIEW

Virtual expansionNigel Redwood Nasstarrsquos CEO talks about the advantages of having a managed flexible IT infrastructure

LEGAL PRACTICE MANAGEMENT37

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT37

Competition and price pressures and an increasingly digital client base are all significant drivers for law firms to become paperless

businesses Tony Klejnow Linetimersquos managing director says firms could achieve competitive advantage by introducing paperless solutions across their businesses ndash but a particular lsquoeasy winrsquo area is matter management

ldquoFee earners are required to keep detailed records of their cases but the amount of time and money they waste physically printing filing looking for collaborating on and updating files is alarmingrdquo says Klejnow Law firms have traditionally been reluctant to adopt paperless

workflow solutions he adds because workflow doesnrsquot apply to 99 of fee earnersrsquo work ldquoBut if they adopted paperless solutions in their back office processes they could reduce costs without affecting client service boost productivity and promote collaboration ndash making them more efficient flexible and cost effective and making them more competitive in an ever-changing legal marketrdquo

MATTER MATTERSDocument and matter management tools ndash like those in Linetimersquos legal software product Liberate ndash electronically store and organise all case documentation in an online database Klejnow says that there are two immediate benefits of paperless matter

PAPERLESS PROCESS

Tony Klejnow managing director at Linetime talks to LPM about the benefits of the paperless office ndash starting with filing and back office processes

INDUSTRY VIEWS

Linetime is a specialist provider of Microsoft-based practice and case management solutions Clients include mid-tier law firms and in-house legal departmentswwwlinetimecouk

ABOUT THE SPONSOR

SPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT38

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT 38

management The first is reducing paper and storage costs

ldquoIf case documentation is electronically stored once a case is finished you no longer have a five-inches-thick file that has to be stored for six years ndash which has to reside somewhere and costs firms time space and moneyrdquo The second is eliminating filing time ndash for example instead of printing and filing emails and attachments fee earners drag and drop emails directly from Outlook into the database ldquoand attachments are automatically stripped from emails and appropriately filedrdquo says Klejnow

And Klejnow says paperless filing systems donrsquot just facilitate efficiency this way ndash they also improve general process efficiency by facilitating collaboration between fee earners Solicitors can use document and matter management to view and work on matters at the same time a difficult if not impossible prospect when working with paper files Klejnow says ldquoWithout document management legal professionals work in silos but with it they immediately share datardquo He adds that Liberate has an additional collaboration tool to help further improve collaborative efficiency in firms ldquoIf I choose to lsquocollaboratersquo a document with you on Liberate Outlook will prompt you to review that document by simply acknowledging the notificationrdquo

In this respect moving to become a paperless business provides greater flexibility for fee earners who can collaborate with colleagues working remotely or in different offices Klejnow says ldquoPaper files can only reside in one location but electronic files can be accessed from any office and when working from home or with clientsrdquo On the other side of the coin having digital files maintains a greater level of productivity in a law firm office ldquoIf your colleague is absent from the office you can easily find documents that you might have otherwise wasted a significant portion of your day looking forrdquo he adds

Improved external collaboration is also a benefit that firms can reap from paperless matter management With an electronic system you can go into a case history bundle documents into one PDF file and quickly submit that to the third party improving collaboration between fee earners and clients who want to do everything online This has the added benefit of improving accuracy and facilitating greater efficiency by involving clients in the process ldquoGood matter management software should also let you push e-forms to clients to be filled in and that information is automatically transferred straight to the online database ndash which saves fee earners

time and is a more accurate because the information doesnrsquot have to be constantly re-enteredrdquo says Klejnow

This extra level of collaboration within legal businesses that hasnrsquot been possible until now has long been needed because it improves efficiency and productivity which makes the business more profitable and competitive Klejnow adds that what firms save by adopting matter management they should reinvest in becoming fully paperless digital businesses

ldquoCase management solutions can improve efficiency to an even greater extent and keep firms competitive in the age of the alternative business structuresrdquo

VISIBLE COMPLIANCEIn response to firms reluctant to adopt paperless technologies like document and matter management for fear of losing delicate information to cybercriminals Klejnow says those systems provide an additional level of security ldquoTaking data and attachments out of Outlook and storing them on a database is much more secure than leaving them on your hard drive If you leave

your laptop on a train for example all your important data is safely stored on a server and not instantly accessible by opportunist criminalsrdquo

Document and matter management also offers a greater level of security in fee earner and client communications ldquoIf I want you to check that the data we have for you is accurate Liberate will

direct you to a page holding your data and at the same time it will push out an SMS text with a pin code to your phone Unless you input the code you canrsquot get to the web page ndash which means if one of your solicitors accidentally sends an email to the wrong person or itrsquos intercepted it doesnrsquot matter The data stays safe ndash this level of security is crucial in this age of cybercrimerdquo

These security features clearly have significant benefits for compliance which is important in a market increasingly dictated by regulation including the relatively new General Data Protection Regulation says Klejnow

ldquoCompliance officers need to be seen by regulators to have monitored and reviewed everything thatrsquos happened in their firm which is considerably easier with a paperless system Liberate has lsquoversion controlrsquo which allows compliance officers to keep tabs on every change made to a document as well as a compliance module which lets them view whatrsquos happening on a case (to ensure that money laundering checks have been carried out and so on) and records the fact that yoursquove reviewed thisrdquo LPM

Without document management legal professionals work in silos but with it they immediately share data

INTERVIEW

LEGAL PRACTICE MANAGEMENT39

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LPM readers may already know the Nasstar Group ndash but by a different name Nasstar was launched by regular LPM-contributor e-knownet to consolidate four discrete hosted

managed IT businesses (including e-knownet) after a period of significant acquisition Nigel Redwood chief executive officer at Nasstar says merger and acquisition and consolidating brands is challenging but having a flexible hosted IT infrastructure makes the process significantly easier

ldquoManaged IT services are enormously beneficial for firms that are expanding or consolidating particularly after MampA in terms of time and productivity cost savings and flexibilityrdquo He adds that by just having managed desktops firms can attain competitive advantage by reducing overheads and becoming more flexible and agile

Nasstar has experience helping SME firms with their IT systems after MampA and knows what problems to look out for creating unity among staff used to using different systems and processes the cost and time it takes to expand an IT infrastructure and the geographic distance between new offices

Redwood says that MampA can be an excellent way for legal businesses to expand into new sectors but that consolidating new departments using different IT systems and processes is challenging

ldquoOur acquisitions for example introduced new sector focuses for us in the SME legal market ndash wersquove consolidated these into a wider service base under Nasstar and facilitated unity among staff using virtual IT solutions

rdquoVirtual IT solutions help facilitate unity across the business by providing a level of consistency in an IT infrastructure Everyone immediately uses the same applications on the same versions from wherever theyrsquore working creating unity faster collaboration across teams and effective information sharingrdquo Hosted IT infrastructures are also continually updated giving staff instant access to new updates applications and technologies as they become available

The next significant challenge firms face after MampA is expanding their IT infrastructure to accommodate an influx of new staff ndash but Redwood says virtual IT solutions let firms expand their IT infrastructure at the flick of a switch

ldquoWith virtual IT firms arenrsquot held back by the size of their servers or the amount of computer power theyrsquove got ndash they simply call their IT provider and ask for an upgrade when previously theyrsquod have been

subject to lengthy and costly IT upgradesrdquo Virtual IT solutions are also easy to budget for

Redwood says ldquoYoursquore not going to be surprised by an increased fixed asset expenditure ndash services like those offered by Nasstar are an operational cost and fixed per user per month through a scalable cost modelrdquo

Geographic distance inhibiting collaboration between merged offices is also a key consideration for firms after MampA but virtual IT solutions solve this problem Redwood says a virtual IT infrastructure can minimise travel through the use of hosted virtual meeting rooms and video technology Staff can use this technology from virtually anywhere which is why it also lends itself well to remote flexible or mobile working set-ups

VIRTUAL WORKPLACERemote working is becoming an increasingly present feature of the legal landscape because of its cost saving and recruitment and retention advantages ndash the majority of firms at the LPM conference 2016 were moving towards a flexible remote or mobile working set-up or already had one

Redwood says virtual IT solutions better enable staff who work remotely ldquoHosted managed desktop solutions for example let staff work with the same applications from any device in the world safely and securelyrdquo

But remote working isnrsquot only about enabling the current workforce itrsquos about attracting future talent Redwood says that millennials donrsquot necessarily want to work as their predecessors did ndash they expect greater flexibility in the workplace which at one level can be achieved by remote working facilitated by a managed desktop

ldquoAnd itrsquos not only about attracting millennialsrdquo he says ldquoSME firms with flexible working set-ups are becoming more attractive to experienced legal talent who may be frustrated by the rigidity of their firmrdquo As a firm expands its workforce in this manner firms with virtual IT solutions reap the lsquodoublersquo cost saving benefits of not having to expand their premises or IT infrastructure accordingly

Some firms are resistant to remote working based on hosted IT services believing they arenrsquot secure ndash but Redwood says that argument ldquocan be put to bedrdquo

ldquoFor an in-house IT team to have the level of security that an organisation like ours can deliver is near impossible financially as well as in terms of the

VIRTUALSANITYNigel Redwood CEO at Nasstar talks to LPM about how managed IT can help SME firms achieve competitive advantage by making them more agile and flexible

LEGAL PRACTICE MANAGEMENT40

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

INTERVIEW

level of systems and technologies they deployrdquo Cybercrime is of course a scary and constantly evolving threat but Redwood points out that virtual IT systems have dedicated teams monitoring these threats evolving cyber defences and changing systems accordingly

ldquoThis capability not only makes [firms] a lot more secure but gives peace of mind in terms of compliancerdquo

ONLINE ADVANTAGE Redwood says virtual IT infrastructures donrsquot just pertain to lsquobig lawrsquo but to SME firms as well ndash perhaps more so

ldquoVirtual IT systems are a way for SME firms to stay competitive against their larger

counterparts and ABSs ndash it gives them a greater ability to expand it lets them adopt more flexible and agile models and is easy to budget forrdquo Firms can also expect virtual IT solutions to enable better alignment of IT resources to business needs enhanced usability with anywhere anytime access and in-built business continuity

But the greatest advantage virtual IT offers SME firms over big law is agility Redwood says ldquoBig IT departments in firms can be slow to react cumbersome and held back by the limitations of hardware infrastructure and security issues ndash all of that is removed with a solution like ours and the customer has access to fast-moving agile ITrdquo LPM

ABOUT THE SPONSOR

Nasstar is a provider of managed IT services and tailor-made cloud hosted solutions ndash delivering innovative secure and agile IT to help clients accomplish their business objectiveswwwnasstarcom

Page 26: LPM September 2016

LEGAL PRACTICE MANAGEMENT28

SEPTEMBER 2016FEATURES

28

Patrick Wingrove talks to the founders of Proelium Law about their work providing legal advice in high-risk environments and conflict zones and the challenges of setting up shop in a new and risky area of law

Legal commandosProelium

Compared to the day-to-day lives of Proelium Law founders and partners Richard Stephens (above left) and Adrian Powell (centre) the average lawyer leads a pretty humdrum life Though UK-based the

firm has a strong international focus ndash Stephens and Powell regularly travel to provide legal and business advice to companies and individuals in high-risk professions or working in hazardous environments across the globe including conflict zones in Iraq Syria and Afghanistan Powell says that itrsquos a challenging but exciting area of law to be in and that ldquono two days are ever the samerdquo

The firm was established as an ABS in November 2015 allowing Powell and Stephens to operate as partners although Stephens isnrsquot a lawyer Powell qualified as a solicitor in 2004 after spending 11 years of his career in the British army and post-2006 worked on various high-risk projects around the world ndash giving him the inspiration for Proelium He says ldquoThe idea came to me in Baghdad in 2009 while working for a private security company as a legal adviser ndash I thought lsquoWhy isnrsquot there a firm doing thisrsquo But I soon realised that I needed someone on the ground who wasnrsquot a lawyer to help make it happenrdquo

That person was Stephens He previously served in the Royal Marines worked as a Whitehall-based strategic planner for the UK government and commanded a special operations regiment (which is why we couldnrsquot show you his face but itrsquos a nice issue of LPM) He now works primarily on the business development side of Proelium ldquoJoining Adrian who Irsquod previously worked with on projects around the

LAW FIRM PROFILE

LEGAL PRACTICE MANAGEMENT29

SEPTEMBER 2016FEATURES

world at a firm meant I could do fascinating and important work with the credibility that being a partner in a regulated business providesrdquo he says

Their work has certainly been interesting Proelium has cast its net far within the niche high-risk sector ndash advising UK-based service providers on the complexities of working in hostile environments conducting business and human rights due diligence and ensuring anti-money laundering counter terrorist-financing and anti-bribery compliance for companies intending to run in high-risk areas or conflict zones to name a few Recently theyrsquove also been working on developing capability for national intelligence organisations overseas ndash but for fear of being jailed for treason Stephens and Powell didnrsquot elaborate hellip

Powell says that the challenges companies face in these areas are numerous ldquoTherersquos a real technical knowledge in understanding how organisations physically work overseas These companies are good at what they do but that doesnrsquot necessarily translate into being business-savvy when it comes to operating in frontier markets ndash thatrsquos where Proelium adds valuerdquo For example after a client was recently exposed on an arms deal they were able to quickly discern liability and ensure that all necessary agencies and departments were appropriately informed

Powell and Stephens joke about how theyrsquore the number-one firm in their sector ndash admitting that to their knowledge theyrsquore the only firm that specialises in this area of law They added that itrsquos an untapped niche in which Proelium will be a pioneering force but which has also recently come onto the radar of a larger firm Theyrsquore alluding of course to Proeliumrsquos recent venture with Harrison Clark Rickerbys ndash a joining that combines Proeliumrsquos experience working in high-risk jurisdictions with the manpower and existing defence and security expertise of

HCR Powell says ldquoWhat they donrsquot have is our connections and our experience They like the idea of the sector because they see it as an interesting area and the partnership will allow us to offer a wealth of different legal services while letting us focus on what we do bestrdquo

As part of their ambitions for Proelium Powell and Stephens are keen to train a new generation of lawyers whorsquoll specialise in the high-risk sector ldquoWe have confidence in what the younger generation has to offer and we want them in our industry to continue our work in this relatively untapped areardquo says Powell Stephens adds that itrsquos also a matter of succession planning ldquoWe want the firm to operate long into the future but we donrsquot necessarily want to be running it ourselves for the next 20 yearsrdquo Proelium currently employs two interns as part of this commitment including University of Surrey law student Ruby Jamieson (pictured) She says ldquoWorking [at Proelium] has given me loads of insight already ndash itrsquos very niche

very new and Irsquove really enjoyed helping develop the business I feel that itrsquoll open a lot of doors when I graduaterdquo

In terms of expansion Proelium has recently opened a new office in the City of London Powell says that his home was originally the firmrsquos practising address but a large portion of their client-base is in London ldquoand we couldnrsquot keep having our meetings in coffee shopsrdquo

But Powell and Stephens are firm believers in the concept of remote working which works particularly well for their business

ldquoMost of our clients are either in London or outside the EU so Irsquom always away but all my phone calls are redirected from the new office to my mobile so I can keep in touch with clients whether Irsquom in Dubai or Baghdadrdquo says Stephens Powell adds that he feels remote working has the added benefit of keeping staff happy by letting them work from home which he says certainly makes him more productive as a fee earner

Proelium isnrsquot looking to expand into areas it has no interest in like family law but theyrsquore taking a keen interest in the emerging area of cyber law and are considering taking steps into that world ldquoLike high-risk law no onersquos really wrapped their arms around cyber law yet Therersquos cyber law in the US but it doesnrsquot exist per se in the UK except in terms of data protectionrdquo

When asked what advice they could give to SME firms based on their unique experiences in their sector Powell and Stephens said firms should know the areas of law they practise inside and out Powell says ldquoWersquore concerned with being experts in our field ndash a lot of our clients have peoplersquos lives in their hands and are not in the business of nonsense which is why they come to us We give sound researched legal advice based on experience and if we donrsquot know something we send the client to someone who doesrdquo LPM

ldquoCompanies are good at what they do but that doesnrsquot necessarily translate into being business-savvy when it comes to operating in frontier markets ndash thatrsquos where Proelium adds valuerdquo

Proelium

Two fee earners four total staff

Offices City of London Wirral Cheltenham

Specialisms International criminal commercial and conflict law due diligence sensitive investigations

LPM FACT FILE

ldquod2u is the UKrsquos number one outsourced transcription service for medical and legal professionals and highly competitive all over the world We pride ourselves on saving our clients time and money as well as offering state-of-the-art security and a first-rate servicerdquo Daryl Leigh CEO dictate2us

LPM magazine has agreed a special deal for its readers with dictate2us ndash 5 off your monthly

transcription bill for one year if you sign up through the dedicated LPM link or call and quote LPM2016 when signing up You can trial the service for free before committing

CUT COSTS INCREASE EFFICIENCYAll firms could benefit from outsourcing transcription to dictate2us ndash but even more so with our LPM deal 5 off your first year

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Use d2u and enjoy the benefits ofbull Fast turnaround timesbull Secure and confidential servicebull Secetarial cost reductions of up to 60bull Guaranteed 985 minimum accuracybull iPhone Android and Blackberry apps with one-hour turnaroundbull 100 output - only pay for the time you talkbull Free no obligation trial

This special LPM magazine reader deal only relates to customers that execute an agreement for a minimum term of 12 months with a minimum monthly commitment of 500 minutes LPM magazine sought two law firm references for dictate2us to verify its claims for quality and delivery The 5 deal only applies to the first paying year the customer is with dictate2us LPM magazine is not responsible or liable in any way for work done by dictate2us and is an advertising referrer only

d u2 dic t a t e 2 u s

SPECIAL READER OFFER

The d2u Transcriber app is free to download from Apple and Android app stores and BlackBerry App World

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LPMLEGAL PRACTICE MANAGEMENT

LPMLEGAL PRACTICE MANAGEMENT

DictateBRIEFINGv2indd 1 28042016 1336

LEGAL PRACTICE MANAGEMENT31

SEPTEMBER 2016FEATURES

Patrick Wingrove speaks to management leaders from SME and top 100 law firms that have recently achieved significant growth to find out how to go from acorn to oak tree

FROM MINNOW TO

For many SME firms growth is the goal ndash but it doesnrsquot have to happen in the ways that many have scaled in the past The era of organic slow quiet steady partnership development over decades is

increasingly at odds with a fast-paced digital world Strategies for growth in the legal market are now closer than ever to the rest of the business world ndash and any size firm can learn how to do it

Big or small there are similar tools in the box for making growth happen and similar challenges Lessons abound but some of the best can be taken from those firms not far outside the famous lsquotop 100rsquo legal businesses in the land ndash those that have already grown up and now have the top tier in their sights There are also lessons to draw from smaller but rapidly scaling law firms

There are many growth strategies for organic and acquisitive growth ndash and no easy answer for which is right for your firm To shine a light on the subject wersquove spoken both to SME and top 100 firms about growth and how to do it (and importantly how not to do it)

MAMMOTH

LEGAL PRACTICE MANAGEMENT32

SEPTEMBER 2016FEATURES

MODELS OF GROWTH According to the Lawyer the two fastest growing firms in the top 200 this year are Midlands-based Knights and lsquodistributedrsquo firm Keystone Law ndash currently placed 119 and 122 in the 2015 UK 200 rankings but whose revenue will now put them well inside the 2016 top 100 (due for release October 2016) Both attribute their growth to non-traditional business models ndash and very different non-traditional models at that

Knights corporatised in 2014 to remove the barriers from its decision making processes which CEO David Beech says has been the key to its growth ldquoEquity partnerships donrsquot grow particularly quickly because itrsquos hard to achieve consensus and make decisions that enable fundamental or rapid growth among equity partnersrdquo

Knights acquired Oxford-based Darbys earlier this year ndash a move largely behind the revenue increase that will put them in the top 100 ndash and completed the transition inside three months which Beech says would have been next to impossible under their old business structure ldquoNot only was a quick turnaround good for the books it saved significant time and money that could be invested elsewhere in the businessrdquo he says

Top 100 firm Simpson Millar is one step

ahead of Knights The firm broke the glass ceiling to become a top 100 firm in 2015 and like Knights the firm attributes its growing success to corporatisation ndash but in a different manner

It sought to be and was eventually acquired by PLC Fairpoint Group in 2014 Simpson Millar continues to run as an LLP under the same management team and existing trading brands but as a business unit within Fairpoint

Managing partner Peter Watson says that one of the key reasons to pursue this particular growth strategy was to provide an injection of capital for MampA ldquoWe completed the sizeable acquisition of Colemans last year for example which we were only able to do with considerable investment from Fairpointrdquo

Being part of a PLC has also given the firm access to strong MampA and project management capabilities ldquoAcquiring Colemans doubled the business overnight ndash for something like that you need strong MampA experience and access to that team within Fairpoint was crucial in getting the deal across the linerdquo says Watson Simpson Millar also built a strong digital strategy launched new products and focused on pricing ldquoCall it fixed fees or packaged fees the point of it was to say to consumers

Square One Law

Revenue pound5m

31 fee earners 53 total staff

Offices Newcastle-upon-Tyne

Specialisms Commercial corporate property employment EU and competition law finance litigation private client

LPM FACT FILE

Knights

Revenue pound40m (year end 2017)

375 fee earners 450 total staff

Offices Chester Cheltenham Newcastle-under-Lyme Derby Oxford Hale

Specialisms Full service firm

LPM FACT FILE

LEGAL PRACTICE MANAGEMENT33

SEPTEMBER 2016FEATURES

lsquoWith us you know exactly what yoursquoll get and how much itrsquoll costrsquordquo

PEOPLE PLEASERSThe ability to implement change has also been an important part of delivering a growth strategy This isnrsquot necessarily surprising ndash polling at the 2016 Legal Practice Management conference showed that legal business managers thought it was one of the greatest hurdles to a firmrsquos growth or success only topped by acquiring high-quality staff In Knightsrsquo case the two challenges were addressed together Beech says Knightsrsquo corporate rather than partnership structure also allows it to recruit talented people without having to deal with the inherent politics of an equity partnership

ldquoAcquiring the best talent has been a central part of our growth strategy ndash if a candidate can help the business through expertise or client following we can just recruit themrdquo he added

But a successful growth strategy incorporating talent isnrsquot just about recruiting quickly as we analysed in the July 2016 issue of LPM ndash itrsquos about recruiting well Firms also need to make themselves an attractive prospect for legal talent in order to grow

William Robins operations director at Keystone Law says his firmrsquos lsquodispersedrsquo model allows it to do that by offering new fee earners the chance to work remotely with less supervision ldquoWersquore typically hiring about a lawyer a week ndash bringing their expertise fee-earning capability and client following with them ndash and that is the core part of our growth strategyrdquo The firm has buttressed its recruitment capability by hiring a director of recruitment to focus almost entirely on lawyer enrolment (recruiting talent to recruit talent ndash neat)

Though the distributed model may not be for everyone says Robins implementing some form of flexible mobile or remote working should be part of any firmrsquos growth strategy because it allows firms to increase their fee-earning capability without accruing fixed overheads such as office premises

And there are other ways to be talent-attractive As a core part of its growth strategy Newcastle-based firm Square One Law ndash which achieved 30 growth in the

last financial year ndash has pledged to create a supportive and inspirational team environment offering high-calibre work to attract the best talent Ian Gilthorpe senior partner at Square One says ldquoGood people want to be inspired to be valued for what they do and feel as though theyrsquore making a contribution The key is to engage with all your staff to facilitate a culture where staff feel happy at work work for each other trust each other and ensure that they see the value in what they do ndash if you do that more talent will comerdquo

He added that itrsquos important for

recruitment to convey staff satisfaction to the outside world which Square One has achieved by including staff video-testimonials on its website

But recruiting is only half of an effective people strategy ndash the other is retention Simpson Millar has attempted to create an environment that its talented staff wonrsquot want to leave Says Watson ldquoToo many firms worry about what will happen if their rainmaker goes somewhere else and takes clients with them ndash so they put the shackles on make them feel unhappy and make it so that they canrsquot realise their full potentialrdquo Creating such an environment makes firms an attractive target for lateral hires when they should be building a place people want to join

PRACTICE AREASSME legal businesses donrsquot necessarily need to change their business models completely to achieve the same growth as

Thorntons

Revenue pound20m

209 fee earners 430 total staff

Offices Dundee Edinburgh St Andrews Perth Cupcar Kirkcaldy Anstruther Arbroath Montrose Forfar

Specialisms Full service firm

Keystone

Revenue pound202m

198 fee earners 230 total staff

Offices London Bristol Isle of Man Australia

Specialisms Corporate and commercial dispute resolution property

LPM FACT FILE

LPM FACT FILE

Equity partnerships donrsquot grow particularly quickly because itrsquos hard to achieve consensus and make decisions that enable fundamental or rapid growth among equity partners David Beech CEO Knights

Simpson Millar

Revenue pound316m

322 fee earners 539 total staff

Offices Birmingham Bristol Cardiff Cheadle Hulme Gateshead Kingston-upon-Thames Lancaster Leeds Park Place Leeds St Pauls Street (head office) London Manchester Newcastle

Specialisms Full service firm

LPM FACT FILE

LEGAL PRACTICE MANAGEMENT34

SEPTEMBER 2016FEATURES

our examples but removing blockers from decision-making making themselves more attractive to talent and finding the right funding for growth are increasingly important and the partnership structure may not enable it

But of course that means asking some turkeys to vote in a Yuletide election Fortunately there are other ways to achieve impressive growth mainly investment andor expansion into new geographic or practice areas

Watson says that Simpson Millar wouldnrsquot have been an attractive prospect to Fairpoint had the firm not spent time growing organically by expanding into new areas of law

ldquoWe went from being a predominantly trade union PI firm to having a broad base of 16 types of work ndash with strong heads in charge of each committed to driving growth in their departments ndash which gave us a large boost in revenuerdquo The firm achieved this through small acquisitions of other firms that had expertise in particularly lucrative areas of law

But firms shouldnrsquot just look at expanding in lucrative areas ndash they should focus on areas where their reputations deliver an advantage Scotlandrsquos Thorntons for example ndash which last year leapt from 134 to 108 in the 2015 UK 200 rankings ndash invested in six departments as part of its growth strategy

Thorntons joint managing partner Scott Milne says ldquoWe didnrsquot exclude other areas but we saw that these areas were profitable and that more importantly we had considerable expertise in them ndash we also considered that these are areas that are unlikely to be affected by future economic downturnrdquo This included investing in niche areas of law where the firm has a geographic competitive advantage ldquoWersquore lucky to be surrounded by some of the best farmland in the UK ndash wersquore well known for our expertise in rural business law which is why we invested heavily in itrdquo

ORGANIC V ACQUISITIONIn several ways choosing an effective growth strategy very much boils down to MampA versus organic growth ndash every business model talent or area expansion strategy appears to revolve around one or both But which is the best to achieve the kind of growth thatrsquoll propel firms to a lsquohockey stickrsquo on their revenue forecasts The short answer is it depends on whatrsquos best for a firm at a given time It either

needs to fit the firm ndash or the firm needs to change to fit the goal

Beech says that acquisition has been excellent for Knights because itrsquos a fast and effective form of expansion ndash the acquisition of Darbys more than doubled its revenue But MampA poses a significant challenge to finding firms with the right cultural fit

ldquoFirms need to establish a single culture in order to implement growth ndash everyone needs to be working towards the same goalrdquo He added that when a firm completes a merger or acquisition that firm has to be integrated from day one which is much more difficult if it has a significantly different culture Knights is planning to continue recruiting and complete more acquisitions in the next year to maintain the growth curve

Of course the big problem with acquisition is money Robins at Keystone says his firm lies at the opposite end of this

INFORMATION IS EMPOWERING

Lemington Spa-based firm Wright Hassall has a specific goal of breaking into the top 100 and as part of its growth strategy expanded into areas of the UK where its expertise is highly sought after ndash using customer relationship management in the background to underpin the firmrsquos activities in specific areas Martyn Wells IT director at the firm says ldquoWersquove zoomed in on specific industry sectors that we know are performing well in the Midlands sectors where we have a superb reputationrdquo Expanding geographically as Wells outlines needs data to get right Thorntons for example identified various lsquomicro-marketsrsquo in Scotland close to its base of operations ldquoWe acquired a firm in St Andrews because itrsquos like a micro-economy (or micro-market) that doesnrsquot seem to be affected by price drops in the residential market elsewhererdquo says Thorntons joint managing partner Scott Milne Knights has another take on the geographic targeting idea ndash it intends to stay out of the large cities (London Manchester Leeds for example) and expand into areas where there is little competition As David Beech CEO at Knights explains ldquoLast September we acquired a small team in Chester of about 11 lawyers and now thatrsquos expanded to just over 70 ndash and the main reason wersquove been able to do that is because there isnrsquot a lot of competition thererdquoUltimately this all comes down to research finding out what to invest in or where to expand and perhaps most importantly finding out what clients want

LEGAL PRACTICE MANAGEMENT35

SEPTEMBER 2016FEATURES

spectrum to the way Knights has grown emphasising organic growth finding innovative means to attract talent using technology to drive efficiency and branching out into new areas of law or new markets to achieve significant growth

Square One Law also espouses the organic route ndash believing that firms with growth in mind should focus on ensuring their external brand reflects the businessrsquos internal culture and behaviours of its team creating lsquosynergyrsquo between the business and its clients

Gilthorpe says ldquoMergers ndash and there is no such thing as a true merger ndash and acquisitions can be a distraction as you look to create a new culture and separate the wheat from the chaff and this can soak up a lot of energy that would otherwise be put to use in driving the progression of the business and the focus on client servicerdquo

The best option for some firms may be a

calculated combination of MampA and organic Thorntons for example having made several acquisitions is now focusing on organic growth moving away from geographical expansion and towards developing locations and its brand

Watson at Simpson Millar sums the mixed approach up thus ldquoItrsquos a mixture Acquisition is still very much a part of the mix but in parallel to that itrsquos important to demonstrate that yoursquore developing ongoing work rather than being driven solely by acquisitionrdquo

There are clearly many different ways to achieve healthy and assertive growth though there are no easy answers as to which way is right for your firm But it is clear that growth doesnrsquot have to happen in the ways many have previously achieved it ndash innovation and lateral thinking are the means of achieving significant growth (which might one day propel you into the top 100 you never know) LPM

LEGAL PRACTICE MANAGEMENT36

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

INDUSTRY VIEWS

36LEGAL PRACTICE MANAGEMENT

Legal is becoming an ever more digital industry giving firms the chance to become more efficient flexible agile and collaborative

INDUSTRY VIEWS INDEX

ONLINEOFFICES

36

SPONSORED EDITORIAL

INDUSTRY VIEWS

37 INTERVIEW

Paperless processLinetimersquos Tony Klejnow explains the benefits of using matter management software for law firms and their clients

39 INTERVIEW

Virtual expansionNigel Redwood Nasstarrsquos CEO talks about the advantages of having a managed flexible IT infrastructure

LEGAL PRACTICE MANAGEMENT37

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT37

Competition and price pressures and an increasingly digital client base are all significant drivers for law firms to become paperless

businesses Tony Klejnow Linetimersquos managing director says firms could achieve competitive advantage by introducing paperless solutions across their businesses ndash but a particular lsquoeasy winrsquo area is matter management

ldquoFee earners are required to keep detailed records of their cases but the amount of time and money they waste physically printing filing looking for collaborating on and updating files is alarmingrdquo says Klejnow Law firms have traditionally been reluctant to adopt paperless

workflow solutions he adds because workflow doesnrsquot apply to 99 of fee earnersrsquo work ldquoBut if they adopted paperless solutions in their back office processes they could reduce costs without affecting client service boost productivity and promote collaboration ndash making them more efficient flexible and cost effective and making them more competitive in an ever-changing legal marketrdquo

MATTER MATTERSDocument and matter management tools ndash like those in Linetimersquos legal software product Liberate ndash electronically store and organise all case documentation in an online database Klejnow says that there are two immediate benefits of paperless matter

PAPERLESS PROCESS

Tony Klejnow managing director at Linetime talks to LPM about the benefits of the paperless office ndash starting with filing and back office processes

INDUSTRY VIEWS

Linetime is a specialist provider of Microsoft-based practice and case management solutions Clients include mid-tier law firms and in-house legal departmentswwwlinetimecouk

ABOUT THE SPONSOR

SPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT38

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT 38

management The first is reducing paper and storage costs

ldquoIf case documentation is electronically stored once a case is finished you no longer have a five-inches-thick file that has to be stored for six years ndash which has to reside somewhere and costs firms time space and moneyrdquo The second is eliminating filing time ndash for example instead of printing and filing emails and attachments fee earners drag and drop emails directly from Outlook into the database ldquoand attachments are automatically stripped from emails and appropriately filedrdquo says Klejnow

And Klejnow says paperless filing systems donrsquot just facilitate efficiency this way ndash they also improve general process efficiency by facilitating collaboration between fee earners Solicitors can use document and matter management to view and work on matters at the same time a difficult if not impossible prospect when working with paper files Klejnow says ldquoWithout document management legal professionals work in silos but with it they immediately share datardquo He adds that Liberate has an additional collaboration tool to help further improve collaborative efficiency in firms ldquoIf I choose to lsquocollaboratersquo a document with you on Liberate Outlook will prompt you to review that document by simply acknowledging the notificationrdquo

In this respect moving to become a paperless business provides greater flexibility for fee earners who can collaborate with colleagues working remotely or in different offices Klejnow says ldquoPaper files can only reside in one location but electronic files can be accessed from any office and when working from home or with clientsrdquo On the other side of the coin having digital files maintains a greater level of productivity in a law firm office ldquoIf your colleague is absent from the office you can easily find documents that you might have otherwise wasted a significant portion of your day looking forrdquo he adds

Improved external collaboration is also a benefit that firms can reap from paperless matter management With an electronic system you can go into a case history bundle documents into one PDF file and quickly submit that to the third party improving collaboration between fee earners and clients who want to do everything online This has the added benefit of improving accuracy and facilitating greater efficiency by involving clients in the process ldquoGood matter management software should also let you push e-forms to clients to be filled in and that information is automatically transferred straight to the online database ndash which saves fee earners

time and is a more accurate because the information doesnrsquot have to be constantly re-enteredrdquo says Klejnow

This extra level of collaboration within legal businesses that hasnrsquot been possible until now has long been needed because it improves efficiency and productivity which makes the business more profitable and competitive Klejnow adds that what firms save by adopting matter management they should reinvest in becoming fully paperless digital businesses

ldquoCase management solutions can improve efficiency to an even greater extent and keep firms competitive in the age of the alternative business structuresrdquo

VISIBLE COMPLIANCEIn response to firms reluctant to adopt paperless technologies like document and matter management for fear of losing delicate information to cybercriminals Klejnow says those systems provide an additional level of security ldquoTaking data and attachments out of Outlook and storing them on a database is much more secure than leaving them on your hard drive If you leave

your laptop on a train for example all your important data is safely stored on a server and not instantly accessible by opportunist criminalsrdquo

Document and matter management also offers a greater level of security in fee earner and client communications ldquoIf I want you to check that the data we have for you is accurate Liberate will

direct you to a page holding your data and at the same time it will push out an SMS text with a pin code to your phone Unless you input the code you canrsquot get to the web page ndash which means if one of your solicitors accidentally sends an email to the wrong person or itrsquos intercepted it doesnrsquot matter The data stays safe ndash this level of security is crucial in this age of cybercrimerdquo

These security features clearly have significant benefits for compliance which is important in a market increasingly dictated by regulation including the relatively new General Data Protection Regulation says Klejnow

ldquoCompliance officers need to be seen by regulators to have monitored and reviewed everything thatrsquos happened in their firm which is considerably easier with a paperless system Liberate has lsquoversion controlrsquo which allows compliance officers to keep tabs on every change made to a document as well as a compliance module which lets them view whatrsquos happening on a case (to ensure that money laundering checks have been carried out and so on) and records the fact that yoursquove reviewed thisrdquo LPM

Without document management legal professionals work in silos but with it they immediately share data

INTERVIEW

LEGAL PRACTICE MANAGEMENT39

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LPM readers may already know the Nasstar Group ndash but by a different name Nasstar was launched by regular LPM-contributor e-knownet to consolidate four discrete hosted

managed IT businesses (including e-knownet) after a period of significant acquisition Nigel Redwood chief executive officer at Nasstar says merger and acquisition and consolidating brands is challenging but having a flexible hosted IT infrastructure makes the process significantly easier

ldquoManaged IT services are enormously beneficial for firms that are expanding or consolidating particularly after MampA in terms of time and productivity cost savings and flexibilityrdquo He adds that by just having managed desktops firms can attain competitive advantage by reducing overheads and becoming more flexible and agile

Nasstar has experience helping SME firms with their IT systems after MampA and knows what problems to look out for creating unity among staff used to using different systems and processes the cost and time it takes to expand an IT infrastructure and the geographic distance between new offices

Redwood says that MampA can be an excellent way for legal businesses to expand into new sectors but that consolidating new departments using different IT systems and processes is challenging

ldquoOur acquisitions for example introduced new sector focuses for us in the SME legal market ndash wersquove consolidated these into a wider service base under Nasstar and facilitated unity among staff using virtual IT solutions

rdquoVirtual IT solutions help facilitate unity across the business by providing a level of consistency in an IT infrastructure Everyone immediately uses the same applications on the same versions from wherever theyrsquore working creating unity faster collaboration across teams and effective information sharingrdquo Hosted IT infrastructures are also continually updated giving staff instant access to new updates applications and technologies as they become available

The next significant challenge firms face after MampA is expanding their IT infrastructure to accommodate an influx of new staff ndash but Redwood says virtual IT solutions let firms expand their IT infrastructure at the flick of a switch

ldquoWith virtual IT firms arenrsquot held back by the size of their servers or the amount of computer power theyrsquove got ndash they simply call their IT provider and ask for an upgrade when previously theyrsquod have been

subject to lengthy and costly IT upgradesrdquo Virtual IT solutions are also easy to budget for

Redwood says ldquoYoursquore not going to be surprised by an increased fixed asset expenditure ndash services like those offered by Nasstar are an operational cost and fixed per user per month through a scalable cost modelrdquo

Geographic distance inhibiting collaboration between merged offices is also a key consideration for firms after MampA but virtual IT solutions solve this problem Redwood says a virtual IT infrastructure can minimise travel through the use of hosted virtual meeting rooms and video technology Staff can use this technology from virtually anywhere which is why it also lends itself well to remote flexible or mobile working set-ups

VIRTUAL WORKPLACERemote working is becoming an increasingly present feature of the legal landscape because of its cost saving and recruitment and retention advantages ndash the majority of firms at the LPM conference 2016 were moving towards a flexible remote or mobile working set-up or already had one

Redwood says virtual IT solutions better enable staff who work remotely ldquoHosted managed desktop solutions for example let staff work with the same applications from any device in the world safely and securelyrdquo

But remote working isnrsquot only about enabling the current workforce itrsquos about attracting future talent Redwood says that millennials donrsquot necessarily want to work as their predecessors did ndash they expect greater flexibility in the workplace which at one level can be achieved by remote working facilitated by a managed desktop

ldquoAnd itrsquos not only about attracting millennialsrdquo he says ldquoSME firms with flexible working set-ups are becoming more attractive to experienced legal talent who may be frustrated by the rigidity of their firmrdquo As a firm expands its workforce in this manner firms with virtual IT solutions reap the lsquodoublersquo cost saving benefits of not having to expand their premises or IT infrastructure accordingly

Some firms are resistant to remote working based on hosted IT services believing they arenrsquot secure ndash but Redwood says that argument ldquocan be put to bedrdquo

ldquoFor an in-house IT team to have the level of security that an organisation like ours can deliver is near impossible financially as well as in terms of the

VIRTUALSANITYNigel Redwood CEO at Nasstar talks to LPM about how managed IT can help SME firms achieve competitive advantage by making them more agile and flexible

LEGAL PRACTICE MANAGEMENT40

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

INTERVIEW

level of systems and technologies they deployrdquo Cybercrime is of course a scary and constantly evolving threat but Redwood points out that virtual IT systems have dedicated teams monitoring these threats evolving cyber defences and changing systems accordingly

ldquoThis capability not only makes [firms] a lot more secure but gives peace of mind in terms of compliancerdquo

ONLINE ADVANTAGE Redwood says virtual IT infrastructures donrsquot just pertain to lsquobig lawrsquo but to SME firms as well ndash perhaps more so

ldquoVirtual IT systems are a way for SME firms to stay competitive against their larger

counterparts and ABSs ndash it gives them a greater ability to expand it lets them adopt more flexible and agile models and is easy to budget forrdquo Firms can also expect virtual IT solutions to enable better alignment of IT resources to business needs enhanced usability with anywhere anytime access and in-built business continuity

But the greatest advantage virtual IT offers SME firms over big law is agility Redwood says ldquoBig IT departments in firms can be slow to react cumbersome and held back by the limitations of hardware infrastructure and security issues ndash all of that is removed with a solution like ours and the customer has access to fast-moving agile ITrdquo LPM

ABOUT THE SPONSOR

Nasstar is a provider of managed IT services and tailor-made cloud hosted solutions ndash delivering innovative secure and agile IT to help clients accomplish their business objectiveswwwnasstarcom

Page 27: LPM September 2016

LEGAL PRACTICE MANAGEMENT29

SEPTEMBER 2016FEATURES

world at a firm meant I could do fascinating and important work with the credibility that being a partner in a regulated business providesrdquo he says

Their work has certainly been interesting Proelium has cast its net far within the niche high-risk sector ndash advising UK-based service providers on the complexities of working in hostile environments conducting business and human rights due diligence and ensuring anti-money laundering counter terrorist-financing and anti-bribery compliance for companies intending to run in high-risk areas or conflict zones to name a few Recently theyrsquove also been working on developing capability for national intelligence organisations overseas ndash but for fear of being jailed for treason Stephens and Powell didnrsquot elaborate hellip

Powell says that the challenges companies face in these areas are numerous ldquoTherersquos a real technical knowledge in understanding how organisations physically work overseas These companies are good at what they do but that doesnrsquot necessarily translate into being business-savvy when it comes to operating in frontier markets ndash thatrsquos where Proelium adds valuerdquo For example after a client was recently exposed on an arms deal they were able to quickly discern liability and ensure that all necessary agencies and departments were appropriately informed

Powell and Stephens joke about how theyrsquore the number-one firm in their sector ndash admitting that to their knowledge theyrsquore the only firm that specialises in this area of law They added that itrsquos an untapped niche in which Proelium will be a pioneering force but which has also recently come onto the radar of a larger firm Theyrsquore alluding of course to Proeliumrsquos recent venture with Harrison Clark Rickerbys ndash a joining that combines Proeliumrsquos experience working in high-risk jurisdictions with the manpower and existing defence and security expertise of

HCR Powell says ldquoWhat they donrsquot have is our connections and our experience They like the idea of the sector because they see it as an interesting area and the partnership will allow us to offer a wealth of different legal services while letting us focus on what we do bestrdquo

As part of their ambitions for Proelium Powell and Stephens are keen to train a new generation of lawyers whorsquoll specialise in the high-risk sector ldquoWe have confidence in what the younger generation has to offer and we want them in our industry to continue our work in this relatively untapped areardquo says Powell Stephens adds that itrsquos also a matter of succession planning ldquoWe want the firm to operate long into the future but we donrsquot necessarily want to be running it ourselves for the next 20 yearsrdquo Proelium currently employs two interns as part of this commitment including University of Surrey law student Ruby Jamieson (pictured) She says ldquoWorking [at Proelium] has given me loads of insight already ndash itrsquos very niche

very new and Irsquove really enjoyed helping develop the business I feel that itrsquoll open a lot of doors when I graduaterdquo

In terms of expansion Proelium has recently opened a new office in the City of London Powell says that his home was originally the firmrsquos practising address but a large portion of their client-base is in London ldquoand we couldnrsquot keep having our meetings in coffee shopsrdquo

But Powell and Stephens are firm believers in the concept of remote working which works particularly well for their business

ldquoMost of our clients are either in London or outside the EU so Irsquom always away but all my phone calls are redirected from the new office to my mobile so I can keep in touch with clients whether Irsquom in Dubai or Baghdadrdquo says Stephens Powell adds that he feels remote working has the added benefit of keeping staff happy by letting them work from home which he says certainly makes him more productive as a fee earner

Proelium isnrsquot looking to expand into areas it has no interest in like family law but theyrsquore taking a keen interest in the emerging area of cyber law and are considering taking steps into that world ldquoLike high-risk law no onersquos really wrapped their arms around cyber law yet Therersquos cyber law in the US but it doesnrsquot exist per se in the UK except in terms of data protectionrdquo

When asked what advice they could give to SME firms based on their unique experiences in their sector Powell and Stephens said firms should know the areas of law they practise inside and out Powell says ldquoWersquore concerned with being experts in our field ndash a lot of our clients have peoplersquos lives in their hands and are not in the business of nonsense which is why they come to us We give sound researched legal advice based on experience and if we donrsquot know something we send the client to someone who doesrdquo LPM

ldquoCompanies are good at what they do but that doesnrsquot necessarily translate into being business-savvy when it comes to operating in frontier markets ndash thatrsquos where Proelium adds valuerdquo

Proelium

Two fee earners four total staff

Offices City of London Wirral Cheltenham

Specialisms International criminal commercial and conflict law due diligence sensitive investigations

LPM FACT FILE

ldquod2u is the UKrsquos number one outsourced transcription service for medical and legal professionals and highly competitive all over the world We pride ourselves on saving our clients time and money as well as offering state-of-the-art security and a first-rate servicerdquo Daryl Leigh CEO dictate2us

LPM magazine has agreed a special deal for its readers with dictate2us ndash 5 off your monthly

transcription bill for one year if you sign up through the dedicated LPM link or call and quote LPM2016 when signing up You can trial the service for free before committing

CUT COSTS INCREASE EFFICIENCYAll firms could benefit from outsourcing transcription to dictate2us ndash but even more so with our LPM deal 5 off your first year

wwwdictate2uscomlpm

Use d2u and enjoy the benefits ofbull Fast turnaround timesbull Secure and confidential servicebull Secetarial cost reductions of up to 60bull Guaranteed 985 minimum accuracybull iPhone Android and Blackberry apps with one-hour turnaroundbull 100 output - only pay for the time you talkbull Free no obligation trial

This special LPM magazine reader deal only relates to customers that execute an agreement for a minimum term of 12 months with a minimum monthly commitment of 500 minutes LPM magazine sought two law firm references for dictate2us to verify its claims for quality and delivery The 5 deal only applies to the first paying year the customer is with dictate2us LPM magazine is not responsible or liable in any way for work done by dictate2us and is an advertising referrer only

d u2 dic t a t e 2 u s

SPECIAL READER OFFER

The d2u Transcriber app is free to download from Apple and Android app stores and BlackBerry App World

OFFER 5 OFF

YOUR FIRMrsquoS FIRST YEAR OF

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LPMLEGAL PRACTICE MANAGEMENT

LPMLEGAL PRACTICE MANAGEMENT

DictateBRIEFINGv2indd 1 28042016 1336

LEGAL PRACTICE MANAGEMENT31

SEPTEMBER 2016FEATURES

Patrick Wingrove speaks to management leaders from SME and top 100 law firms that have recently achieved significant growth to find out how to go from acorn to oak tree

FROM MINNOW TO

For many SME firms growth is the goal ndash but it doesnrsquot have to happen in the ways that many have scaled in the past The era of organic slow quiet steady partnership development over decades is

increasingly at odds with a fast-paced digital world Strategies for growth in the legal market are now closer than ever to the rest of the business world ndash and any size firm can learn how to do it

Big or small there are similar tools in the box for making growth happen and similar challenges Lessons abound but some of the best can be taken from those firms not far outside the famous lsquotop 100rsquo legal businesses in the land ndash those that have already grown up and now have the top tier in their sights There are also lessons to draw from smaller but rapidly scaling law firms

There are many growth strategies for organic and acquisitive growth ndash and no easy answer for which is right for your firm To shine a light on the subject wersquove spoken both to SME and top 100 firms about growth and how to do it (and importantly how not to do it)

MAMMOTH

LEGAL PRACTICE MANAGEMENT32

SEPTEMBER 2016FEATURES

MODELS OF GROWTH According to the Lawyer the two fastest growing firms in the top 200 this year are Midlands-based Knights and lsquodistributedrsquo firm Keystone Law ndash currently placed 119 and 122 in the 2015 UK 200 rankings but whose revenue will now put them well inside the 2016 top 100 (due for release October 2016) Both attribute their growth to non-traditional business models ndash and very different non-traditional models at that

Knights corporatised in 2014 to remove the barriers from its decision making processes which CEO David Beech says has been the key to its growth ldquoEquity partnerships donrsquot grow particularly quickly because itrsquos hard to achieve consensus and make decisions that enable fundamental or rapid growth among equity partnersrdquo

Knights acquired Oxford-based Darbys earlier this year ndash a move largely behind the revenue increase that will put them in the top 100 ndash and completed the transition inside three months which Beech says would have been next to impossible under their old business structure ldquoNot only was a quick turnaround good for the books it saved significant time and money that could be invested elsewhere in the businessrdquo he says

Top 100 firm Simpson Millar is one step

ahead of Knights The firm broke the glass ceiling to become a top 100 firm in 2015 and like Knights the firm attributes its growing success to corporatisation ndash but in a different manner

It sought to be and was eventually acquired by PLC Fairpoint Group in 2014 Simpson Millar continues to run as an LLP under the same management team and existing trading brands but as a business unit within Fairpoint

Managing partner Peter Watson says that one of the key reasons to pursue this particular growth strategy was to provide an injection of capital for MampA ldquoWe completed the sizeable acquisition of Colemans last year for example which we were only able to do with considerable investment from Fairpointrdquo

Being part of a PLC has also given the firm access to strong MampA and project management capabilities ldquoAcquiring Colemans doubled the business overnight ndash for something like that you need strong MampA experience and access to that team within Fairpoint was crucial in getting the deal across the linerdquo says Watson Simpson Millar also built a strong digital strategy launched new products and focused on pricing ldquoCall it fixed fees or packaged fees the point of it was to say to consumers

Square One Law

Revenue pound5m

31 fee earners 53 total staff

Offices Newcastle-upon-Tyne

Specialisms Commercial corporate property employment EU and competition law finance litigation private client

LPM FACT FILE

Knights

Revenue pound40m (year end 2017)

375 fee earners 450 total staff

Offices Chester Cheltenham Newcastle-under-Lyme Derby Oxford Hale

Specialisms Full service firm

LPM FACT FILE

LEGAL PRACTICE MANAGEMENT33

SEPTEMBER 2016FEATURES

lsquoWith us you know exactly what yoursquoll get and how much itrsquoll costrsquordquo

PEOPLE PLEASERSThe ability to implement change has also been an important part of delivering a growth strategy This isnrsquot necessarily surprising ndash polling at the 2016 Legal Practice Management conference showed that legal business managers thought it was one of the greatest hurdles to a firmrsquos growth or success only topped by acquiring high-quality staff In Knightsrsquo case the two challenges were addressed together Beech says Knightsrsquo corporate rather than partnership structure also allows it to recruit talented people without having to deal with the inherent politics of an equity partnership

ldquoAcquiring the best talent has been a central part of our growth strategy ndash if a candidate can help the business through expertise or client following we can just recruit themrdquo he added

But a successful growth strategy incorporating talent isnrsquot just about recruiting quickly as we analysed in the July 2016 issue of LPM ndash itrsquos about recruiting well Firms also need to make themselves an attractive prospect for legal talent in order to grow

William Robins operations director at Keystone Law says his firmrsquos lsquodispersedrsquo model allows it to do that by offering new fee earners the chance to work remotely with less supervision ldquoWersquore typically hiring about a lawyer a week ndash bringing their expertise fee-earning capability and client following with them ndash and that is the core part of our growth strategyrdquo The firm has buttressed its recruitment capability by hiring a director of recruitment to focus almost entirely on lawyer enrolment (recruiting talent to recruit talent ndash neat)

Though the distributed model may not be for everyone says Robins implementing some form of flexible mobile or remote working should be part of any firmrsquos growth strategy because it allows firms to increase their fee-earning capability without accruing fixed overheads such as office premises

And there are other ways to be talent-attractive As a core part of its growth strategy Newcastle-based firm Square One Law ndash which achieved 30 growth in the

last financial year ndash has pledged to create a supportive and inspirational team environment offering high-calibre work to attract the best talent Ian Gilthorpe senior partner at Square One says ldquoGood people want to be inspired to be valued for what they do and feel as though theyrsquore making a contribution The key is to engage with all your staff to facilitate a culture where staff feel happy at work work for each other trust each other and ensure that they see the value in what they do ndash if you do that more talent will comerdquo

He added that itrsquos important for

recruitment to convey staff satisfaction to the outside world which Square One has achieved by including staff video-testimonials on its website

But recruiting is only half of an effective people strategy ndash the other is retention Simpson Millar has attempted to create an environment that its talented staff wonrsquot want to leave Says Watson ldquoToo many firms worry about what will happen if their rainmaker goes somewhere else and takes clients with them ndash so they put the shackles on make them feel unhappy and make it so that they canrsquot realise their full potentialrdquo Creating such an environment makes firms an attractive target for lateral hires when they should be building a place people want to join

PRACTICE AREASSME legal businesses donrsquot necessarily need to change their business models completely to achieve the same growth as

Thorntons

Revenue pound20m

209 fee earners 430 total staff

Offices Dundee Edinburgh St Andrews Perth Cupcar Kirkcaldy Anstruther Arbroath Montrose Forfar

Specialisms Full service firm

Keystone

Revenue pound202m

198 fee earners 230 total staff

Offices London Bristol Isle of Man Australia

Specialisms Corporate and commercial dispute resolution property

LPM FACT FILE

LPM FACT FILE

Equity partnerships donrsquot grow particularly quickly because itrsquos hard to achieve consensus and make decisions that enable fundamental or rapid growth among equity partners David Beech CEO Knights

Simpson Millar

Revenue pound316m

322 fee earners 539 total staff

Offices Birmingham Bristol Cardiff Cheadle Hulme Gateshead Kingston-upon-Thames Lancaster Leeds Park Place Leeds St Pauls Street (head office) London Manchester Newcastle

Specialisms Full service firm

LPM FACT FILE

LEGAL PRACTICE MANAGEMENT34

SEPTEMBER 2016FEATURES

our examples but removing blockers from decision-making making themselves more attractive to talent and finding the right funding for growth are increasingly important and the partnership structure may not enable it

But of course that means asking some turkeys to vote in a Yuletide election Fortunately there are other ways to achieve impressive growth mainly investment andor expansion into new geographic or practice areas

Watson says that Simpson Millar wouldnrsquot have been an attractive prospect to Fairpoint had the firm not spent time growing organically by expanding into new areas of law

ldquoWe went from being a predominantly trade union PI firm to having a broad base of 16 types of work ndash with strong heads in charge of each committed to driving growth in their departments ndash which gave us a large boost in revenuerdquo The firm achieved this through small acquisitions of other firms that had expertise in particularly lucrative areas of law

But firms shouldnrsquot just look at expanding in lucrative areas ndash they should focus on areas where their reputations deliver an advantage Scotlandrsquos Thorntons for example ndash which last year leapt from 134 to 108 in the 2015 UK 200 rankings ndash invested in six departments as part of its growth strategy

Thorntons joint managing partner Scott Milne says ldquoWe didnrsquot exclude other areas but we saw that these areas were profitable and that more importantly we had considerable expertise in them ndash we also considered that these are areas that are unlikely to be affected by future economic downturnrdquo This included investing in niche areas of law where the firm has a geographic competitive advantage ldquoWersquore lucky to be surrounded by some of the best farmland in the UK ndash wersquore well known for our expertise in rural business law which is why we invested heavily in itrdquo

ORGANIC V ACQUISITIONIn several ways choosing an effective growth strategy very much boils down to MampA versus organic growth ndash every business model talent or area expansion strategy appears to revolve around one or both But which is the best to achieve the kind of growth thatrsquoll propel firms to a lsquohockey stickrsquo on their revenue forecasts The short answer is it depends on whatrsquos best for a firm at a given time It either

needs to fit the firm ndash or the firm needs to change to fit the goal

Beech says that acquisition has been excellent for Knights because itrsquos a fast and effective form of expansion ndash the acquisition of Darbys more than doubled its revenue But MampA poses a significant challenge to finding firms with the right cultural fit

ldquoFirms need to establish a single culture in order to implement growth ndash everyone needs to be working towards the same goalrdquo He added that when a firm completes a merger or acquisition that firm has to be integrated from day one which is much more difficult if it has a significantly different culture Knights is planning to continue recruiting and complete more acquisitions in the next year to maintain the growth curve

Of course the big problem with acquisition is money Robins at Keystone says his firm lies at the opposite end of this

INFORMATION IS EMPOWERING

Lemington Spa-based firm Wright Hassall has a specific goal of breaking into the top 100 and as part of its growth strategy expanded into areas of the UK where its expertise is highly sought after ndash using customer relationship management in the background to underpin the firmrsquos activities in specific areas Martyn Wells IT director at the firm says ldquoWersquove zoomed in on specific industry sectors that we know are performing well in the Midlands sectors where we have a superb reputationrdquo Expanding geographically as Wells outlines needs data to get right Thorntons for example identified various lsquomicro-marketsrsquo in Scotland close to its base of operations ldquoWe acquired a firm in St Andrews because itrsquos like a micro-economy (or micro-market) that doesnrsquot seem to be affected by price drops in the residential market elsewhererdquo says Thorntons joint managing partner Scott Milne Knights has another take on the geographic targeting idea ndash it intends to stay out of the large cities (London Manchester Leeds for example) and expand into areas where there is little competition As David Beech CEO at Knights explains ldquoLast September we acquired a small team in Chester of about 11 lawyers and now thatrsquos expanded to just over 70 ndash and the main reason wersquove been able to do that is because there isnrsquot a lot of competition thererdquoUltimately this all comes down to research finding out what to invest in or where to expand and perhaps most importantly finding out what clients want

LEGAL PRACTICE MANAGEMENT35

SEPTEMBER 2016FEATURES

spectrum to the way Knights has grown emphasising organic growth finding innovative means to attract talent using technology to drive efficiency and branching out into new areas of law or new markets to achieve significant growth

Square One Law also espouses the organic route ndash believing that firms with growth in mind should focus on ensuring their external brand reflects the businessrsquos internal culture and behaviours of its team creating lsquosynergyrsquo between the business and its clients

Gilthorpe says ldquoMergers ndash and there is no such thing as a true merger ndash and acquisitions can be a distraction as you look to create a new culture and separate the wheat from the chaff and this can soak up a lot of energy that would otherwise be put to use in driving the progression of the business and the focus on client servicerdquo

The best option for some firms may be a

calculated combination of MampA and organic Thorntons for example having made several acquisitions is now focusing on organic growth moving away from geographical expansion and towards developing locations and its brand

Watson at Simpson Millar sums the mixed approach up thus ldquoItrsquos a mixture Acquisition is still very much a part of the mix but in parallel to that itrsquos important to demonstrate that yoursquore developing ongoing work rather than being driven solely by acquisitionrdquo

There are clearly many different ways to achieve healthy and assertive growth though there are no easy answers as to which way is right for your firm But it is clear that growth doesnrsquot have to happen in the ways many have previously achieved it ndash innovation and lateral thinking are the means of achieving significant growth (which might one day propel you into the top 100 you never know) LPM

LEGAL PRACTICE MANAGEMENT36

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

INDUSTRY VIEWS

36LEGAL PRACTICE MANAGEMENT

Legal is becoming an ever more digital industry giving firms the chance to become more efficient flexible agile and collaborative

INDUSTRY VIEWS INDEX

ONLINEOFFICES

36

SPONSORED EDITORIAL

INDUSTRY VIEWS

37 INTERVIEW

Paperless processLinetimersquos Tony Klejnow explains the benefits of using matter management software for law firms and their clients

39 INTERVIEW

Virtual expansionNigel Redwood Nasstarrsquos CEO talks about the advantages of having a managed flexible IT infrastructure

LEGAL PRACTICE MANAGEMENT37

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT37

Competition and price pressures and an increasingly digital client base are all significant drivers for law firms to become paperless

businesses Tony Klejnow Linetimersquos managing director says firms could achieve competitive advantage by introducing paperless solutions across their businesses ndash but a particular lsquoeasy winrsquo area is matter management

ldquoFee earners are required to keep detailed records of their cases but the amount of time and money they waste physically printing filing looking for collaborating on and updating files is alarmingrdquo says Klejnow Law firms have traditionally been reluctant to adopt paperless

workflow solutions he adds because workflow doesnrsquot apply to 99 of fee earnersrsquo work ldquoBut if they adopted paperless solutions in their back office processes they could reduce costs without affecting client service boost productivity and promote collaboration ndash making them more efficient flexible and cost effective and making them more competitive in an ever-changing legal marketrdquo

MATTER MATTERSDocument and matter management tools ndash like those in Linetimersquos legal software product Liberate ndash electronically store and organise all case documentation in an online database Klejnow says that there are two immediate benefits of paperless matter

PAPERLESS PROCESS

Tony Klejnow managing director at Linetime talks to LPM about the benefits of the paperless office ndash starting with filing and back office processes

INDUSTRY VIEWS

Linetime is a specialist provider of Microsoft-based practice and case management solutions Clients include mid-tier law firms and in-house legal departmentswwwlinetimecouk

ABOUT THE SPONSOR

SPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT38

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT 38

management The first is reducing paper and storage costs

ldquoIf case documentation is electronically stored once a case is finished you no longer have a five-inches-thick file that has to be stored for six years ndash which has to reside somewhere and costs firms time space and moneyrdquo The second is eliminating filing time ndash for example instead of printing and filing emails and attachments fee earners drag and drop emails directly from Outlook into the database ldquoand attachments are automatically stripped from emails and appropriately filedrdquo says Klejnow

And Klejnow says paperless filing systems donrsquot just facilitate efficiency this way ndash they also improve general process efficiency by facilitating collaboration between fee earners Solicitors can use document and matter management to view and work on matters at the same time a difficult if not impossible prospect when working with paper files Klejnow says ldquoWithout document management legal professionals work in silos but with it they immediately share datardquo He adds that Liberate has an additional collaboration tool to help further improve collaborative efficiency in firms ldquoIf I choose to lsquocollaboratersquo a document with you on Liberate Outlook will prompt you to review that document by simply acknowledging the notificationrdquo

In this respect moving to become a paperless business provides greater flexibility for fee earners who can collaborate with colleagues working remotely or in different offices Klejnow says ldquoPaper files can only reside in one location but electronic files can be accessed from any office and when working from home or with clientsrdquo On the other side of the coin having digital files maintains a greater level of productivity in a law firm office ldquoIf your colleague is absent from the office you can easily find documents that you might have otherwise wasted a significant portion of your day looking forrdquo he adds

Improved external collaboration is also a benefit that firms can reap from paperless matter management With an electronic system you can go into a case history bundle documents into one PDF file and quickly submit that to the third party improving collaboration between fee earners and clients who want to do everything online This has the added benefit of improving accuracy and facilitating greater efficiency by involving clients in the process ldquoGood matter management software should also let you push e-forms to clients to be filled in and that information is automatically transferred straight to the online database ndash which saves fee earners

time and is a more accurate because the information doesnrsquot have to be constantly re-enteredrdquo says Klejnow

This extra level of collaboration within legal businesses that hasnrsquot been possible until now has long been needed because it improves efficiency and productivity which makes the business more profitable and competitive Klejnow adds that what firms save by adopting matter management they should reinvest in becoming fully paperless digital businesses

ldquoCase management solutions can improve efficiency to an even greater extent and keep firms competitive in the age of the alternative business structuresrdquo

VISIBLE COMPLIANCEIn response to firms reluctant to adopt paperless technologies like document and matter management for fear of losing delicate information to cybercriminals Klejnow says those systems provide an additional level of security ldquoTaking data and attachments out of Outlook and storing them on a database is much more secure than leaving them on your hard drive If you leave

your laptop on a train for example all your important data is safely stored on a server and not instantly accessible by opportunist criminalsrdquo

Document and matter management also offers a greater level of security in fee earner and client communications ldquoIf I want you to check that the data we have for you is accurate Liberate will

direct you to a page holding your data and at the same time it will push out an SMS text with a pin code to your phone Unless you input the code you canrsquot get to the web page ndash which means if one of your solicitors accidentally sends an email to the wrong person or itrsquos intercepted it doesnrsquot matter The data stays safe ndash this level of security is crucial in this age of cybercrimerdquo

These security features clearly have significant benefits for compliance which is important in a market increasingly dictated by regulation including the relatively new General Data Protection Regulation says Klejnow

ldquoCompliance officers need to be seen by regulators to have monitored and reviewed everything thatrsquos happened in their firm which is considerably easier with a paperless system Liberate has lsquoversion controlrsquo which allows compliance officers to keep tabs on every change made to a document as well as a compliance module which lets them view whatrsquos happening on a case (to ensure that money laundering checks have been carried out and so on) and records the fact that yoursquove reviewed thisrdquo LPM

Without document management legal professionals work in silos but with it they immediately share data

INTERVIEW

LEGAL PRACTICE MANAGEMENT39

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LPM readers may already know the Nasstar Group ndash but by a different name Nasstar was launched by regular LPM-contributor e-knownet to consolidate four discrete hosted

managed IT businesses (including e-knownet) after a period of significant acquisition Nigel Redwood chief executive officer at Nasstar says merger and acquisition and consolidating brands is challenging but having a flexible hosted IT infrastructure makes the process significantly easier

ldquoManaged IT services are enormously beneficial for firms that are expanding or consolidating particularly after MampA in terms of time and productivity cost savings and flexibilityrdquo He adds that by just having managed desktops firms can attain competitive advantage by reducing overheads and becoming more flexible and agile

Nasstar has experience helping SME firms with their IT systems after MampA and knows what problems to look out for creating unity among staff used to using different systems and processes the cost and time it takes to expand an IT infrastructure and the geographic distance between new offices

Redwood says that MampA can be an excellent way for legal businesses to expand into new sectors but that consolidating new departments using different IT systems and processes is challenging

ldquoOur acquisitions for example introduced new sector focuses for us in the SME legal market ndash wersquove consolidated these into a wider service base under Nasstar and facilitated unity among staff using virtual IT solutions

rdquoVirtual IT solutions help facilitate unity across the business by providing a level of consistency in an IT infrastructure Everyone immediately uses the same applications on the same versions from wherever theyrsquore working creating unity faster collaboration across teams and effective information sharingrdquo Hosted IT infrastructures are also continually updated giving staff instant access to new updates applications and technologies as they become available

The next significant challenge firms face after MampA is expanding their IT infrastructure to accommodate an influx of new staff ndash but Redwood says virtual IT solutions let firms expand their IT infrastructure at the flick of a switch

ldquoWith virtual IT firms arenrsquot held back by the size of their servers or the amount of computer power theyrsquove got ndash they simply call their IT provider and ask for an upgrade when previously theyrsquod have been

subject to lengthy and costly IT upgradesrdquo Virtual IT solutions are also easy to budget for

Redwood says ldquoYoursquore not going to be surprised by an increased fixed asset expenditure ndash services like those offered by Nasstar are an operational cost and fixed per user per month through a scalable cost modelrdquo

Geographic distance inhibiting collaboration between merged offices is also a key consideration for firms after MampA but virtual IT solutions solve this problem Redwood says a virtual IT infrastructure can minimise travel through the use of hosted virtual meeting rooms and video technology Staff can use this technology from virtually anywhere which is why it also lends itself well to remote flexible or mobile working set-ups

VIRTUAL WORKPLACERemote working is becoming an increasingly present feature of the legal landscape because of its cost saving and recruitment and retention advantages ndash the majority of firms at the LPM conference 2016 were moving towards a flexible remote or mobile working set-up or already had one

Redwood says virtual IT solutions better enable staff who work remotely ldquoHosted managed desktop solutions for example let staff work with the same applications from any device in the world safely and securelyrdquo

But remote working isnrsquot only about enabling the current workforce itrsquos about attracting future talent Redwood says that millennials donrsquot necessarily want to work as their predecessors did ndash they expect greater flexibility in the workplace which at one level can be achieved by remote working facilitated by a managed desktop

ldquoAnd itrsquos not only about attracting millennialsrdquo he says ldquoSME firms with flexible working set-ups are becoming more attractive to experienced legal talent who may be frustrated by the rigidity of their firmrdquo As a firm expands its workforce in this manner firms with virtual IT solutions reap the lsquodoublersquo cost saving benefits of not having to expand their premises or IT infrastructure accordingly

Some firms are resistant to remote working based on hosted IT services believing they arenrsquot secure ndash but Redwood says that argument ldquocan be put to bedrdquo

ldquoFor an in-house IT team to have the level of security that an organisation like ours can deliver is near impossible financially as well as in terms of the

VIRTUALSANITYNigel Redwood CEO at Nasstar talks to LPM about how managed IT can help SME firms achieve competitive advantage by making them more agile and flexible

LEGAL PRACTICE MANAGEMENT40

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

INTERVIEW

level of systems and technologies they deployrdquo Cybercrime is of course a scary and constantly evolving threat but Redwood points out that virtual IT systems have dedicated teams monitoring these threats evolving cyber defences and changing systems accordingly

ldquoThis capability not only makes [firms] a lot more secure but gives peace of mind in terms of compliancerdquo

ONLINE ADVANTAGE Redwood says virtual IT infrastructures donrsquot just pertain to lsquobig lawrsquo but to SME firms as well ndash perhaps more so

ldquoVirtual IT systems are a way for SME firms to stay competitive against their larger

counterparts and ABSs ndash it gives them a greater ability to expand it lets them adopt more flexible and agile models and is easy to budget forrdquo Firms can also expect virtual IT solutions to enable better alignment of IT resources to business needs enhanced usability with anywhere anytime access and in-built business continuity

But the greatest advantage virtual IT offers SME firms over big law is agility Redwood says ldquoBig IT departments in firms can be slow to react cumbersome and held back by the limitations of hardware infrastructure and security issues ndash all of that is removed with a solution like ours and the customer has access to fast-moving agile ITrdquo LPM

ABOUT THE SPONSOR

Nasstar is a provider of managed IT services and tailor-made cloud hosted solutions ndash delivering innovative secure and agile IT to help clients accomplish their business objectiveswwwnasstarcom

Page 28: LPM September 2016

ldquod2u is the UKrsquos number one outsourced transcription service for medical and legal professionals and highly competitive all over the world We pride ourselves on saving our clients time and money as well as offering state-of-the-art security and a first-rate servicerdquo Daryl Leigh CEO dictate2us

LPM magazine has agreed a special deal for its readers with dictate2us ndash 5 off your monthly

transcription bill for one year if you sign up through the dedicated LPM link or call and quote LPM2016 when signing up You can trial the service for free before committing

CUT COSTS INCREASE EFFICIENCYAll firms could benefit from outsourcing transcription to dictate2us ndash but even more so with our LPM deal 5 off your first year

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Use d2u and enjoy the benefits ofbull Fast turnaround timesbull Secure and confidential servicebull Secetarial cost reductions of up to 60bull Guaranteed 985 minimum accuracybull iPhone Android and Blackberry apps with one-hour turnaroundbull 100 output - only pay for the time you talkbull Free no obligation trial

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LPMLEGAL PRACTICE MANAGEMENT

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DictateBRIEFINGv2indd 1 28042016 1336

LEGAL PRACTICE MANAGEMENT31

SEPTEMBER 2016FEATURES

Patrick Wingrove speaks to management leaders from SME and top 100 law firms that have recently achieved significant growth to find out how to go from acorn to oak tree

FROM MINNOW TO

For many SME firms growth is the goal ndash but it doesnrsquot have to happen in the ways that many have scaled in the past The era of organic slow quiet steady partnership development over decades is

increasingly at odds with a fast-paced digital world Strategies for growth in the legal market are now closer than ever to the rest of the business world ndash and any size firm can learn how to do it

Big or small there are similar tools in the box for making growth happen and similar challenges Lessons abound but some of the best can be taken from those firms not far outside the famous lsquotop 100rsquo legal businesses in the land ndash those that have already grown up and now have the top tier in their sights There are also lessons to draw from smaller but rapidly scaling law firms

There are many growth strategies for organic and acquisitive growth ndash and no easy answer for which is right for your firm To shine a light on the subject wersquove spoken both to SME and top 100 firms about growth and how to do it (and importantly how not to do it)

MAMMOTH

LEGAL PRACTICE MANAGEMENT32

SEPTEMBER 2016FEATURES

MODELS OF GROWTH According to the Lawyer the two fastest growing firms in the top 200 this year are Midlands-based Knights and lsquodistributedrsquo firm Keystone Law ndash currently placed 119 and 122 in the 2015 UK 200 rankings but whose revenue will now put them well inside the 2016 top 100 (due for release October 2016) Both attribute their growth to non-traditional business models ndash and very different non-traditional models at that

Knights corporatised in 2014 to remove the barriers from its decision making processes which CEO David Beech says has been the key to its growth ldquoEquity partnerships donrsquot grow particularly quickly because itrsquos hard to achieve consensus and make decisions that enable fundamental or rapid growth among equity partnersrdquo

Knights acquired Oxford-based Darbys earlier this year ndash a move largely behind the revenue increase that will put them in the top 100 ndash and completed the transition inside three months which Beech says would have been next to impossible under their old business structure ldquoNot only was a quick turnaround good for the books it saved significant time and money that could be invested elsewhere in the businessrdquo he says

Top 100 firm Simpson Millar is one step

ahead of Knights The firm broke the glass ceiling to become a top 100 firm in 2015 and like Knights the firm attributes its growing success to corporatisation ndash but in a different manner

It sought to be and was eventually acquired by PLC Fairpoint Group in 2014 Simpson Millar continues to run as an LLP under the same management team and existing trading brands but as a business unit within Fairpoint

Managing partner Peter Watson says that one of the key reasons to pursue this particular growth strategy was to provide an injection of capital for MampA ldquoWe completed the sizeable acquisition of Colemans last year for example which we were only able to do with considerable investment from Fairpointrdquo

Being part of a PLC has also given the firm access to strong MampA and project management capabilities ldquoAcquiring Colemans doubled the business overnight ndash for something like that you need strong MampA experience and access to that team within Fairpoint was crucial in getting the deal across the linerdquo says Watson Simpson Millar also built a strong digital strategy launched new products and focused on pricing ldquoCall it fixed fees or packaged fees the point of it was to say to consumers

Square One Law

Revenue pound5m

31 fee earners 53 total staff

Offices Newcastle-upon-Tyne

Specialisms Commercial corporate property employment EU and competition law finance litigation private client

LPM FACT FILE

Knights

Revenue pound40m (year end 2017)

375 fee earners 450 total staff

Offices Chester Cheltenham Newcastle-under-Lyme Derby Oxford Hale

Specialisms Full service firm

LPM FACT FILE

LEGAL PRACTICE MANAGEMENT33

SEPTEMBER 2016FEATURES

lsquoWith us you know exactly what yoursquoll get and how much itrsquoll costrsquordquo

PEOPLE PLEASERSThe ability to implement change has also been an important part of delivering a growth strategy This isnrsquot necessarily surprising ndash polling at the 2016 Legal Practice Management conference showed that legal business managers thought it was one of the greatest hurdles to a firmrsquos growth or success only topped by acquiring high-quality staff In Knightsrsquo case the two challenges were addressed together Beech says Knightsrsquo corporate rather than partnership structure also allows it to recruit talented people without having to deal with the inherent politics of an equity partnership

ldquoAcquiring the best talent has been a central part of our growth strategy ndash if a candidate can help the business through expertise or client following we can just recruit themrdquo he added

But a successful growth strategy incorporating talent isnrsquot just about recruiting quickly as we analysed in the July 2016 issue of LPM ndash itrsquos about recruiting well Firms also need to make themselves an attractive prospect for legal talent in order to grow

William Robins operations director at Keystone Law says his firmrsquos lsquodispersedrsquo model allows it to do that by offering new fee earners the chance to work remotely with less supervision ldquoWersquore typically hiring about a lawyer a week ndash bringing their expertise fee-earning capability and client following with them ndash and that is the core part of our growth strategyrdquo The firm has buttressed its recruitment capability by hiring a director of recruitment to focus almost entirely on lawyer enrolment (recruiting talent to recruit talent ndash neat)

Though the distributed model may not be for everyone says Robins implementing some form of flexible mobile or remote working should be part of any firmrsquos growth strategy because it allows firms to increase their fee-earning capability without accruing fixed overheads such as office premises

And there are other ways to be talent-attractive As a core part of its growth strategy Newcastle-based firm Square One Law ndash which achieved 30 growth in the

last financial year ndash has pledged to create a supportive and inspirational team environment offering high-calibre work to attract the best talent Ian Gilthorpe senior partner at Square One says ldquoGood people want to be inspired to be valued for what they do and feel as though theyrsquore making a contribution The key is to engage with all your staff to facilitate a culture where staff feel happy at work work for each other trust each other and ensure that they see the value in what they do ndash if you do that more talent will comerdquo

He added that itrsquos important for

recruitment to convey staff satisfaction to the outside world which Square One has achieved by including staff video-testimonials on its website

But recruiting is only half of an effective people strategy ndash the other is retention Simpson Millar has attempted to create an environment that its talented staff wonrsquot want to leave Says Watson ldquoToo many firms worry about what will happen if their rainmaker goes somewhere else and takes clients with them ndash so they put the shackles on make them feel unhappy and make it so that they canrsquot realise their full potentialrdquo Creating such an environment makes firms an attractive target for lateral hires when they should be building a place people want to join

PRACTICE AREASSME legal businesses donrsquot necessarily need to change their business models completely to achieve the same growth as

Thorntons

Revenue pound20m

209 fee earners 430 total staff

Offices Dundee Edinburgh St Andrews Perth Cupcar Kirkcaldy Anstruther Arbroath Montrose Forfar

Specialisms Full service firm

Keystone

Revenue pound202m

198 fee earners 230 total staff

Offices London Bristol Isle of Man Australia

Specialisms Corporate and commercial dispute resolution property

LPM FACT FILE

LPM FACT FILE

Equity partnerships donrsquot grow particularly quickly because itrsquos hard to achieve consensus and make decisions that enable fundamental or rapid growth among equity partners David Beech CEO Knights

Simpson Millar

Revenue pound316m

322 fee earners 539 total staff

Offices Birmingham Bristol Cardiff Cheadle Hulme Gateshead Kingston-upon-Thames Lancaster Leeds Park Place Leeds St Pauls Street (head office) London Manchester Newcastle

Specialisms Full service firm

LPM FACT FILE

LEGAL PRACTICE MANAGEMENT34

SEPTEMBER 2016FEATURES

our examples but removing blockers from decision-making making themselves more attractive to talent and finding the right funding for growth are increasingly important and the partnership structure may not enable it

But of course that means asking some turkeys to vote in a Yuletide election Fortunately there are other ways to achieve impressive growth mainly investment andor expansion into new geographic or practice areas

Watson says that Simpson Millar wouldnrsquot have been an attractive prospect to Fairpoint had the firm not spent time growing organically by expanding into new areas of law

ldquoWe went from being a predominantly trade union PI firm to having a broad base of 16 types of work ndash with strong heads in charge of each committed to driving growth in their departments ndash which gave us a large boost in revenuerdquo The firm achieved this through small acquisitions of other firms that had expertise in particularly lucrative areas of law

But firms shouldnrsquot just look at expanding in lucrative areas ndash they should focus on areas where their reputations deliver an advantage Scotlandrsquos Thorntons for example ndash which last year leapt from 134 to 108 in the 2015 UK 200 rankings ndash invested in six departments as part of its growth strategy

Thorntons joint managing partner Scott Milne says ldquoWe didnrsquot exclude other areas but we saw that these areas were profitable and that more importantly we had considerable expertise in them ndash we also considered that these are areas that are unlikely to be affected by future economic downturnrdquo This included investing in niche areas of law where the firm has a geographic competitive advantage ldquoWersquore lucky to be surrounded by some of the best farmland in the UK ndash wersquore well known for our expertise in rural business law which is why we invested heavily in itrdquo

ORGANIC V ACQUISITIONIn several ways choosing an effective growth strategy very much boils down to MampA versus organic growth ndash every business model talent or area expansion strategy appears to revolve around one or both But which is the best to achieve the kind of growth thatrsquoll propel firms to a lsquohockey stickrsquo on their revenue forecasts The short answer is it depends on whatrsquos best for a firm at a given time It either

needs to fit the firm ndash or the firm needs to change to fit the goal

Beech says that acquisition has been excellent for Knights because itrsquos a fast and effective form of expansion ndash the acquisition of Darbys more than doubled its revenue But MampA poses a significant challenge to finding firms with the right cultural fit

ldquoFirms need to establish a single culture in order to implement growth ndash everyone needs to be working towards the same goalrdquo He added that when a firm completes a merger or acquisition that firm has to be integrated from day one which is much more difficult if it has a significantly different culture Knights is planning to continue recruiting and complete more acquisitions in the next year to maintain the growth curve

Of course the big problem with acquisition is money Robins at Keystone says his firm lies at the opposite end of this

INFORMATION IS EMPOWERING

Lemington Spa-based firm Wright Hassall has a specific goal of breaking into the top 100 and as part of its growth strategy expanded into areas of the UK where its expertise is highly sought after ndash using customer relationship management in the background to underpin the firmrsquos activities in specific areas Martyn Wells IT director at the firm says ldquoWersquove zoomed in on specific industry sectors that we know are performing well in the Midlands sectors where we have a superb reputationrdquo Expanding geographically as Wells outlines needs data to get right Thorntons for example identified various lsquomicro-marketsrsquo in Scotland close to its base of operations ldquoWe acquired a firm in St Andrews because itrsquos like a micro-economy (or micro-market) that doesnrsquot seem to be affected by price drops in the residential market elsewhererdquo says Thorntons joint managing partner Scott Milne Knights has another take on the geographic targeting idea ndash it intends to stay out of the large cities (London Manchester Leeds for example) and expand into areas where there is little competition As David Beech CEO at Knights explains ldquoLast September we acquired a small team in Chester of about 11 lawyers and now thatrsquos expanded to just over 70 ndash and the main reason wersquove been able to do that is because there isnrsquot a lot of competition thererdquoUltimately this all comes down to research finding out what to invest in or where to expand and perhaps most importantly finding out what clients want

LEGAL PRACTICE MANAGEMENT35

SEPTEMBER 2016FEATURES

spectrum to the way Knights has grown emphasising organic growth finding innovative means to attract talent using technology to drive efficiency and branching out into new areas of law or new markets to achieve significant growth

Square One Law also espouses the organic route ndash believing that firms with growth in mind should focus on ensuring their external brand reflects the businessrsquos internal culture and behaviours of its team creating lsquosynergyrsquo between the business and its clients

Gilthorpe says ldquoMergers ndash and there is no such thing as a true merger ndash and acquisitions can be a distraction as you look to create a new culture and separate the wheat from the chaff and this can soak up a lot of energy that would otherwise be put to use in driving the progression of the business and the focus on client servicerdquo

The best option for some firms may be a

calculated combination of MampA and organic Thorntons for example having made several acquisitions is now focusing on organic growth moving away from geographical expansion and towards developing locations and its brand

Watson at Simpson Millar sums the mixed approach up thus ldquoItrsquos a mixture Acquisition is still very much a part of the mix but in parallel to that itrsquos important to demonstrate that yoursquore developing ongoing work rather than being driven solely by acquisitionrdquo

There are clearly many different ways to achieve healthy and assertive growth though there are no easy answers as to which way is right for your firm But it is clear that growth doesnrsquot have to happen in the ways many have previously achieved it ndash innovation and lateral thinking are the means of achieving significant growth (which might one day propel you into the top 100 you never know) LPM

LEGAL PRACTICE MANAGEMENT36

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

INDUSTRY VIEWS

36LEGAL PRACTICE MANAGEMENT

Legal is becoming an ever more digital industry giving firms the chance to become more efficient flexible agile and collaborative

INDUSTRY VIEWS INDEX

ONLINEOFFICES

36

SPONSORED EDITORIAL

INDUSTRY VIEWS

37 INTERVIEW

Paperless processLinetimersquos Tony Klejnow explains the benefits of using matter management software for law firms and their clients

39 INTERVIEW

Virtual expansionNigel Redwood Nasstarrsquos CEO talks about the advantages of having a managed flexible IT infrastructure

LEGAL PRACTICE MANAGEMENT37

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT37

Competition and price pressures and an increasingly digital client base are all significant drivers for law firms to become paperless

businesses Tony Klejnow Linetimersquos managing director says firms could achieve competitive advantage by introducing paperless solutions across their businesses ndash but a particular lsquoeasy winrsquo area is matter management

ldquoFee earners are required to keep detailed records of their cases but the amount of time and money they waste physically printing filing looking for collaborating on and updating files is alarmingrdquo says Klejnow Law firms have traditionally been reluctant to adopt paperless

workflow solutions he adds because workflow doesnrsquot apply to 99 of fee earnersrsquo work ldquoBut if they adopted paperless solutions in their back office processes they could reduce costs without affecting client service boost productivity and promote collaboration ndash making them more efficient flexible and cost effective and making them more competitive in an ever-changing legal marketrdquo

MATTER MATTERSDocument and matter management tools ndash like those in Linetimersquos legal software product Liberate ndash electronically store and organise all case documentation in an online database Klejnow says that there are two immediate benefits of paperless matter

PAPERLESS PROCESS

Tony Klejnow managing director at Linetime talks to LPM about the benefits of the paperless office ndash starting with filing and back office processes

INDUSTRY VIEWS

Linetime is a specialist provider of Microsoft-based practice and case management solutions Clients include mid-tier law firms and in-house legal departmentswwwlinetimecouk

ABOUT THE SPONSOR

SPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT38

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT 38

management The first is reducing paper and storage costs

ldquoIf case documentation is electronically stored once a case is finished you no longer have a five-inches-thick file that has to be stored for six years ndash which has to reside somewhere and costs firms time space and moneyrdquo The second is eliminating filing time ndash for example instead of printing and filing emails and attachments fee earners drag and drop emails directly from Outlook into the database ldquoand attachments are automatically stripped from emails and appropriately filedrdquo says Klejnow

And Klejnow says paperless filing systems donrsquot just facilitate efficiency this way ndash they also improve general process efficiency by facilitating collaboration between fee earners Solicitors can use document and matter management to view and work on matters at the same time a difficult if not impossible prospect when working with paper files Klejnow says ldquoWithout document management legal professionals work in silos but with it they immediately share datardquo He adds that Liberate has an additional collaboration tool to help further improve collaborative efficiency in firms ldquoIf I choose to lsquocollaboratersquo a document with you on Liberate Outlook will prompt you to review that document by simply acknowledging the notificationrdquo

In this respect moving to become a paperless business provides greater flexibility for fee earners who can collaborate with colleagues working remotely or in different offices Klejnow says ldquoPaper files can only reside in one location but electronic files can be accessed from any office and when working from home or with clientsrdquo On the other side of the coin having digital files maintains a greater level of productivity in a law firm office ldquoIf your colleague is absent from the office you can easily find documents that you might have otherwise wasted a significant portion of your day looking forrdquo he adds

Improved external collaboration is also a benefit that firms can reap from paperless matter management With an electronic system you can go into a case history bundle documents into one PDF file and quickly submit that to the third party improving collaboration between fee earners and clients who want to do everything online This has the added benefit of improving accuracy and facilitating greater efficiency by involving clients in the process ldquoGood matter management software should also let you push e-forms to clients to be filled in and that information is automatically transferred straight to the online database ndash which saves fee earners

time and is a more accurate because the information doesnrsquot have to be constantly re-enteredrdquo says Klejnow

This extra level of collaboration within legal businesses that hasnrsquot been possible until now has long been needed because it improves efficiency and productivity which makes the business more profitable and competitive Klejnow adds that what firms save by adopting matter management they should reinvest in becoming fully paperless digital businesses

ldquoCase management solutions can improve efficiency to an even greater extent and keep firms competitive in the age of the alternative business structuresrdquo

VISIBLE COMPLIANCEIn response to firms reluctant to adopt paperless technologies like document and matter management for fear of losing delicate information to cybercriminals Klejnow says those systems provide an additional level of security ldquoTaking data and attachments out of Outlook and storing them on a database is much more secure than leaving them on your hard drive If you leave

your laptop on a train for example all your important data is safely stored on a server and not instantly accessible by opportunist criminalsrdquo

Document and matter management also offers a greater level of security in fee earner and client communications ldquoIf I want you to check that the data we have for you is accurate Liberate will

direct you to a page holding your data and at the same time it will push out an SMS text with a pin code to your phone Unless you input the code you canrsquot get to the web page ndash which means if one of your solicitors accidentally sends an email to the wrong person or itrsquos intercepted it doesnrsquot matter The data stays safe ndash this level of security is crucial in this age of cybercrimerdquo

These security features clearly have significant benefits for compliance which is important in a market increasingly dictated by regulation including the relatively new General Data Protection Regulation says Klejnow

ldquoCompliance officers need to be seen by regulators to have monitored and reviewed everything thatrsquos happened in their firm which is considerably easier with a paperless system Liberate has lsquoversion controlrsquo which allows compliance officers to keep tabs on every change made to a document as well as a compliance module which lets them view whatrsquos happening on a case (to ensure that money laundering checks have been carried out and so on) and records the fact that yoursquove reviewed thisrdquo LPM

Without document management legal professionals work in silos but with it they immediately share data

INTERVIEW

LEGAL PRACTICE MANAGEMENT39

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LPM readers may already know the Nasstar Group ndash but by a different name Nasstar was launched by regular LPM-contributor e-knownet to consolidate four discrete hosted

managed IT businesses (including e-knownet) after a period of significant acquisition Nigel Redwood chief executive officer at Nasstar says merger and acquisition and consolidating brands is challenging but having a flexible hosted IT infrastructure makes the process significantly easier

ldquoManaged IT services are enormously beneficial for firms that are expanding or consolidating particularly after MampA in terms of time and productivity cost savings and flexibilityrdquo He adds that by just having managed desktops firms can attain competitive advantage by reducing overheads and becoming more flexible and agile

Nasstar has experience helping SME firms with their IT systems after MampA and knows what problems to look out for creating unity among staff used to using different systems and processes the cost and time it takes to expand an IT infrastructure and the geographic distance between new offices

Redwood says that MampA can be an excellent way for legal businesses to expand into new sectors but that consolidating new departments using different IT systems and processes is challenging

ldquoOur acquisitions for example introduced new sector focuses for us in the SME legal market ndash wersquove consolidated these into a wider service base under Nasstar and facilitated unity among staff using virtual IT solutions

rdquoVirtual IT solutions help facilitate unity across the business by providing a level of consistency in an IT infrastructure Everyone immediately uses the same applications on the same versions from wherever theyrsquore working creating unity faster collaboration across teams and effective information sharingrdquo Hosted IT infrastructures are also continually updated giving staff instant access to new updates applications and technologies as they become available

The next significant challenge firms face after MampA is expanding their IT infrastructure to accommodate an influx of new staff ndash but Redwood says virtual IT solutions let firms expand their IT infrastructure at the flick of a switch

ldquoWith virtual IT firms arenrsquot held back by the size of their servers or the amount of computer power theyrsquove got ndash they simply call their IT provider and ask for an upgrade when previously theyrsquod have been

subject to lengthy and costly IT upgradesrdquo Virtual IT solutions are also easy to budget for

Redwood says ldquoYoursquore not going to be surprised by an increased fixed asset expenditure ndash services like those offered by Nasstar are an operational cost and fixed per user per month through a scalable cost modelrdquo

Geographic distance inhibiting collaboration between merged offices is also a key consideration for firms after MampA but virtual IT solutions solve this problem Redwood says a virtual IT infrastructure can minimise travel through the use of hosted virtual meeting rooms and video technology Staff can use this technology from virtually anywhere which is why it also lends itself well to remote flexible or mobile working set-ups

VIRTUAL WORKPLACERemote working is becoming an increasingly present feature of the legal landscape because of its cost saving and recruitment and retention advantages ndash the majority of firms at the LPM conference 2016 were moving towards a flexible remote or mobile working set-up or already had one

Redwood says virtual IT solutions better enable staff who work remotely ldquoHosted managed desktop solutions for example let staff work with the same applications from any device in the world safely and securelyrdquo

But remote working isnrsquot only about enabling the current workforce itrsquos about attracting future talent Redwood says that millennials donrsquot necessarily want to work as their predecessors did ndash they expect greater flexibility in the workplace which at one level can be achieved by remote working facilitated by a managed desktop

ldquoAnd itrsquos not only about attracting millennialsrdquo he says ldquoSME firms with flexible working set-ups are becoming more attractive to experienced legal talent who may be frustrated by the rigidity of their firmrdquo As a firm expands its workforce in this manner firms with virtual IT solutions reap the lsquodoublersquo cost saving benefits of not having to expand their premises or IT infrastructure accordingly

Some firms are resistant to remote working based on hosted IT services believing they arenrsquot secure ndash but Redwood says that argument ldquocan be put to bedrdquo

ldquoFor an in-house IT team to have the level of security that an organisation like ours can deliver is near impossible financially as well as in terms of the

VIRTUALSANITYNigel Redwood CEO at Nasstar talks to LPM about how managed IT can help SME firms achieve competitive advantage by making them more agile and flexible

LEGAL PRACTICE MANAGEMENT40

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

INTERVIEW

level of systems and technologies they deployrdquo Cybercrime is of course a scary and constantly evolving threat but Redwood points out that virtual IT systems have dedicated teams monitoring these threats evolving cyber defences and changing systems accordingly

ldquoThis capability not only makes [firms] a lot more secure but gives peace of mind in terms of compliancerdquo

ONLINE ADVANTAGE Redwood says virtual IT infrastructures donrsquot just pertain to lsquobig lawrsquo but to SME firms as well ndash perhaps more so

ldquoVirtual IT systems are a way for SME firms to stay competitive against their larger

counterparts and ABSs ndash it gives them a greater ability to expand it lets them adopt more flexible and agile models and is easy to budget forrdquo Firms can also expect virtual IT solutions to enable better alignment of IT resources to business needs enhanced usability with anywhere anytime access and in-built business continuity

But the greatest advantage virtual IT offers SME firms over big law is agility Redwood says ldquoBig IT departments in firms can be slow to react cumbersome and held back by the limitations of hardware infrastructure and security issues ndash all of that is removed with a solution like ours and the customer has access to fast-moving agile ITrdquo LPM

ABOUT THE SPONSOR

Nasstar is a provider of managed IT services and tailor-made cloud hosted solutions ndash delivering innovative secure and agile IT to help clients accomplish their business objectiveswwwnasstarcom

Page 29: LPM September 2016

LEGAL PRACTICE MANAGEMENT31

SEPTEMBER 2016FEATURES

Patrick Wingrove speaks to management leaders from SME and top 100 law firms that have recently achieved significant growth to find out how to go from acorn to oak tree

FROM MINNOW TO

For many SME firms growth is the goal ndash but it doesnrsquot have to happen in the ways that many have scaled in the past The era of organic slow quiet steady partnership development over decades is

increasingly at odds with a fast-paced digital world Strategies for growth in the legal market are now closer than ever to the rest of the business world ndash and any size firm can learn how to do it

Big or small there are similar tools in the box for making growth happen and similar challenges Lessons abound but some of the best can be taken from those firms not far outside the famous lsquotop 100rsquo legal businesses in the land ndash those that have already grown up and now have the top tier in their sights There are also lessons to draw from smaller but rapidly scaling law firms

There are many growth strategies for organic and acquisitive growth ndash and no easy answer for which is right for your firm To shine a light on the subject wersquove spoken both to SME and top 100 firms about growth and how to do it (and importantly how not to do it)

MAMMOTH

LEGAL PRACTICE MANAGEMENT32

SEPTEMBER 2016FEATURES

MODELS OF GROWTH According to the Lawyer the two fastest growing firms in the top 200 this year are Midlands-based Knights and lsquodistributedrsquo firm Keystone Law ndash currently placed 119 and 122 in the 2015 UK 200 rankings but whose revenue will now put them well inside the 2016 top 100 (due for release October 2016) Both attribute their growth to non-traditional business models ndash and very different non-traditional models at that

Knights corporatised in 2014 to remove the barriers from its decision making processes which CEO David Beech says has been the key to its growth ldquoEquity partnerships donrsquot grow particularly quickly because itrsquos hard to achieve consensus and make decisions that enable fundamental or rapid growth among equity partnersrdquo

Knights acquired Oxford-based Darbys earlier this year ndash a move largely behind the revenue increase that will put them in the top 100 ndash and completed the transition inside three months which Beech says would have been next to impossible under their old business structure ldquoNot only was a quick turnaround good for the books it saved significant time and money that could be invested elsewhere in the businessrdquo he says

Top 100 firm Simpson Millar is one step

ahead of Knights The firm broke the glass ceiling to become a top 100 firm in 2015 and like Knights the firm attributes its growing success to corporatisation ndash but in a different manner

It sought to be and was eventually acquired by PLC Fairpoint Group in 2014 Simpson Millar continues to run as an LLP under the same management team and existing trading brands but as a business unit within Fairpoint

Managing partner Peter Watson says that one of the key reasons to pursue this particular growth strategy was to provide an injection of capital for MampA ldquoWe completed the sizeable acquisition of Colemans last year for example which we were only able to do with considerable investment from Fairpointrdquo

Being part of a PLC has also given the firm access to strong MampA and project management capabilities ldquoAcquiring Colemans doubled the business overnight ndash for something like that you need strong MampA experience and access to that team within Fairpoint was crucial in getting the deal across the linerdquo says Watson Simpson Millar also built a strong digital strategy launched new products and focused on pricing ldquoCall it fixed fees or packaged fees the point of it was to say to consumers

Square One Law

Revenue pound5m

31 fee earners 53 total staff

Offices Newcastle-upon-Tyne

Specialisms Commercial corporate property employment EU and competition law finance litigation private client

LPM FACT FILE

Knights

Revenue pound40m (year end 2017)

375 fee earners 450 total staff

Offices Chester Cheltenham Newcastle-under-Lyme Derby Oxford Hale

Specialisms Full service firm

LPM FACT FILE

LEGAL PRACTICE MANAGEMENT33

SEPTEMBER 2016FEATURES

lsquoWith us you know exactly what yoursquoll get and how much itrsquoll costrsquordquo

PEOPLE PLEASERSThe ability to implement change has also been an important part of delivering a growth strategy This isnrsquot necessarily surprising ndash polling at the 2016 Legal Practice Management conference showed that legal business managers thought it was one of the greatest hurdles to a firmrsquos growth or success only topped by acquiring high-quality staff In Knightsrsquo case the two challenges were addressed together Beech says Knightsrsquo corporate rather than partnership structure also allows it to recruit talented people without having to deal with the inherent politics of an equity partnership

ldquoAcquiring the best talent has been a central part of our growth strategy ndash if a candidate can help the business through expertise or client following we can just recruit themrdquo he added

But a successful growth strategy incorporating talent isnrsquot just about recruiting quickly as we analysed in the July 2016 issue of LPM ndash itrsquos about recruiting well Firms also need to make themselves an attractive prospect for legal talent in order to grow

William Robins operations director at Keystone Law says his firmrsquos lsquodispersedrsquo model allows it to do that by offering new fee earners the chance to work remotely with less supervision ldquoWersquore typically hiring about a lawyer a week ndash bringing their expertise fee-earning capability and client following with them ndash and that is the core part of our growth strategyrdquo The firm has buttressed its recruitment capability by hiring a director of recruitment to focus almost entirely on lawyer enrolment (recruiting talent to recruit talent ndash neat)

Though the distributed model may not be for everyone says Robins implementing some form of flexible mobile or remote working should be part of any firmrsquos growth strategy because it allows firms to increase their fee-earning capability without accruing fixed overheads such as office premises

And there are other ways to be talent-attractive As a core part of its growth strategy Newcastle-based firm Square One Law ndash which achieved 30 growth in the

last financial year ndash has pledged to create a supportive and inspirational team environment offering high-calibre work to attract the best talent Ian Gilthorpe senior partner at Square One says ldquoGood people want to be inspired to be valued for what they do and feel as though theyrsquore making a contribution The key is to engage with all your staff to facilitate a culture where staff feel happy at work work for each other trust each other and ensure that they see the value in what they do ndash if you do that more talent will comerdquo

He added that itrsquos important for

recruitment to convey staff satisfaction to the outside world which Square One has achieved by including staff video-testimonials on its website

But recruiting is only half of an effective people strategy ndash the other is retention Simpson Millar has attempted to create an environment that its talented staff wonrsquot want to leave Says Watson ldquoToo many firms worry about what will happen if their rainmaker goes somewhere else and takes clients with them ndash so they put the shackles on make them feel unhappy and make it so that they canrsquot realise their full potentialrdquo Creating such an environment makes firms an attractive target for lateral hires when they should be building a place people want to join

PRACTICE AREASSME legal businesses donrsquot necessarily need to change their business models completely to achieve the same growth as

Thorntons

Revenue pound20m

209 fee earners 430 total staff

Offices Dundee Edinburgh St Andrews Perth Cupcar Kirkcaldy Anstruther Arbroath Montrose Forfar

Specialisms Full service firm

Keystone

Revenue pound202m

198 fee earners 230 total staff

Offices London Bristol Isle of Man Australia

Specialisms Corporate and commercial dispute resolution property

LPM FACT FILE

LPM FACT FILE

Equity partnerships donrsquot grow particularly quickly because itrsquos hard to achieve consensus and make decisions that enable fundamental or rapid growth among equity partners David Beech CEO Knights

Simpson Millar

Revenue pound316m

322 fee earners 539 total staff

Offices Birmingham Bristol Cardiff Cheadle Hulme Gateshead Kingston-upon-Thames Lancaster Leeds Park Place Leeds St Pauls Street (head office) London Manchester Newcastle

Specialisms Full service firm

LPM FACT FILE

LEGAL PRACTICE MANAGEMENT34

SEPTEMBER 2016FEATURES

our examples but removing blockers from decision-making making themselves more attractive to talent and finding the right funding for growth are increasingly important and the partnership structure may not enable it

But of course that means asking some turkeys to vote in a Yuletide election Fortunately there are other ways to achieve impressive growth mainly investment andor expansion into new geographic or practice areas

Watson says that Simpson Millar wouldnrsquot have been an attractive prospect to Fairpoint had the firm not spent time growing organically by expanding into new areas of law

ldquoWe went from being a predominantly trade union PI firm to having a broad base of 16 types of work ndash with strong heads in charge of each committed to driving growth in their departments ndash which gave us a large boost in revenuerdquo The firm achieved this through small acquisitions of other firms that had expertise in particularly lucrative areas of law

But firms shouldnrsquot just look at expanding in lucrative areas ndash they should focus on areas where their reputations deliver an advantage Scotlandrsquos Thorntons for example ndash which last year leapt from 134 to 108 in the 2015 UK 200 rankings ndash invested in six departments as part of its growth strategy

Thorntons joint managing partner Scott Milne says ldquoWe didnrsquot exclude other areas but we saw that these areas were profitable and that more importantly we had considerable expertise in them ndash we also considered that these are areas that are unlikely to be affected by future economic downturnrdquo This included investing in niche areas of law where the firm has a geographic competitive advantage ldquoWersquore lucky to be surrounded by some of the best farmland in the UK ndash wersquore well known for our expertise in rural business law which is why we invested heavily in itrdquo

ORGANIC V ACQUISITIONIn several ways choosing an effective growth strategy very much boils down to MampA versus organic growth ndash every business model talent or area expansion strategy appears to revolve around one or both But which is the best to achieve the kind of growth thatrsquoll propel firms to a lsquohockey stickrsquo on their revenue forecasts The short answer is it depends on whatrsquos best for a firm at a given time It either

needs to fit the firm ndash or the firm needs to change to fit the goal

Beech says that acquisition has been excellent for Knights because itrsquos a fast and effective form of expansion ndash the acquisition of Darbys more than doubled its revenue But MampA poses a significant challenge to finding firms with the right cultural fit

ldquoFirms need to establish a single culture in order to implement growth ndash everyone needs to be working towards the same goalrdquo He added that when a firm completes a merger or acquisition that firm has to be integrated from day one which is much more difficult if it has a significantly different culture Knights is planning to continue recruiting and complete more acquisitions in the next year to maintain the growth curve

Of course the big problem with acquisition is money Robins at Keystone says his firm lies at the opposite end of this

INFORMATION IS EMPOWERING

Lemington Spa-based firm Wright Hassall has a specific goal of breaking into the top 100 and as part of its growth strategy expanded into areas of the UK where its expertise is highly sought after ndash using customer relationship management in the background to underpin the firmrsquos activities in specific areas Martyn Wells IT director at the firm says ldquoWersquove zoomed in on specific industry sectors that we know are performing well in the Midlands sectors where we have a superb reputationrdquo Expanding geographically as Wells outlines needs data to get right Thorntons for example identified various lsquomicro-marketsrsquo in Scotland close to its base of operations ldquoWe acquired a firm in St Andrews because itrsquos like a micro-economy (or micro-market) that doesnrsquot seem to be affected by price drops in the residential market elsewhererdquo says Thorntons joint managing partner Scott Milne Knights has another take on the geographic targeting idea ndash it intends to stay out of the large cities (London Manchester Leeds for example) and expand into areas where there is little competition As David Beech CEO at Knights explains ldquoLast September we acquired a small team in Chester of about 11 lawyers and now thatrsquos expanded to just over 70 ndash and the main reason wersquove been able to do that is because there isnrsquot a lot of competition thererdquoUltimately this all comes down to research finding out what to invest in or where to expand and perhaps most importantly finding out what clients want

LEGAL PRACTICE MANAGEMENT35

SEPTEMBER 2016FEATURES

spectrum to the way Knights has grown emphasising organic growth finding innovative means to attract talent using technology to drive efficiency and branching out into new areas of law or new markets to achieve significant growth

Square One Law also espouses the organic route ndash believing that firms with growth in mind should focus on ensuring their external brand reflects the businessrsquos internal culture and behaviours of its team creating lsquosynergyrsquo between the business and its clients

Gilthorpe says ldquoMergers ndash and there is no such thing as a true merger ndash and acquisitions can be a distraction as you look to create a new culture and separate the wheat from the chaff and this can soak up a lot of energy that would otherwise be put to use in driving the progression of the business and the focus on client servicerdquo

The best option for some firms may be a

calculated combination of MampA and organic Thorntons for example having made several acquisitions is now focusing on organic growth moving away from geographical expansion and towards developing locations and its brand

Watson at Simpson Millar sums the mixed approach up thus ldquoItrsquos a mixture Acquisition is still very much a part of the mix but in parallel to that itrsquos important to demonstrate that yoursquore developing ongoing work rather than being driven solely by acquisitionrdquo

There are clearly many different ways to achieve healthy and assertive growth though there are no easy answers as to which way is right for your firm But it is clear that growth doesnrsquot have to happen in the ways many have previously achieved it ndash innovation and lateral thinking are the means of achieving significant growth (which might one day propel you into the top 100 you never know) LPM

LEGAL PRACTICE MANAGEMENT36

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

INDUSTRY VIEWS

36LEGAL PRACTICE MANAGEMENT

Legal is becoming an ever more digital industry giving firms the chance to become more efficient flexible agile and collaborative

INDUSTRY VIEWS INDEX

ONLINEOFFICES

36

SPONSORED EDITORIAL

INDUSTRY VIEWS

37 INTERVIEW

Paperless processLinetimersquos Tony Klejnow explains the benefits of using matter management software for law firms and their clients

39 INTERVIEW

Virtual expansionNigel Redwood Nasstarrsquos CEO talks about the advantages of having a managed flexible IT infrastructure

LEGAL PRACTICE MANAGEMENT37

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT37

Competition and price pressures and an increasingly digital client base are all significant drivers for law firms to become paperless

businesses Tony Klejnow Linetimersquos managing director says firms could achieve competitive advantage by introducing paperless solutions across their businesses ndash but a particular lsquoeasy winrsquo area is matter management

ldquoFee earners are required to keep detailed records of their cases but the amount of time and money they waste physically printing filing looking for collaborating on and updating files is alarmingrdquo says Klejnow Law firms have traditionally been reluctant to adopt paperless

workflow solutions he adds because workflow doesnrsquot apply to 99 of fee earnersrsquo work ldquoBut if they adopted paperless solutions in their back office processes they could reduce costs without affecting client service boost productivity and promote collaboration ndash making them more efficient flexible and cost effective and making them more competitive in an ever-changing legal marketrdquo

MATTER MATTERSDocument and matter management tools ndash like those in Linetimersquos legal software product Liberate ndash electronically store and organise all case documentation in an online database Klejnow says that there are two immediate benefits of paperless matter

PAPERLESS PROCESS

Tony Klejnow managing director at Linetime talks to LPM about the benefits of the paperless office ndash starting with filing and back office processes

INDUSTRY VIEWS

Linetime is a specialist provider of Microsoft-based practice and case management solutions Clients include mid-tier law firms and in-house legal departmentswwwlinetimecouk

ABOUT THE SPONSOR

SPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT38

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT 38

management The first is reducing paper and storage costs

ldquoIf case documentation is electronically stored once a case is finished you no longer have a five-inches-thick file that has to be stored for six years ndash which has to reside somewhere and costs firms time space and moneyrdquo The second is eliminating filing time ndash for example instead of printing and filing emails and attachments fee earners drag and drop emails directly from Outlook into the database ldquoand attachments are automatically stripped from emails and appropriately filedrdquo says Klejnow

And Klejnow says paperless filing systems donrsquot just facilitate efficiency this way ndash they also improve general process efficiency by facilitating collaboration between fee earners Solicitors can use document and matter management to view and work on matters at the same time a difficult if not impossible prospect when working with paper files Klejnow says ldquoWithout document management legal professionals work in silos but with it they immediately share datardquo He adds that Liberate has an additional collaboration tool to help further improve collaborative efficiency in firms ldquoIf I choose to lsquocollaboratersquo a document with you on Liberate Outlook will prompt you to review that document by simply acknowledging the notificationrdquo

In this respect moving to become a paperless business provides greater flexibility for fee earners who can collaborate with colleagues working remotely or in different offices Klejnow says ldquoPaper files can only reside in one location but electronic files can be accessed from any office and when working from home or with clientsrdquo On the other side of the coin having digital files maintains a greater level of productivity in a law firm office ldquoIf your colleague is absent from the office you can easily find documents that you might have otherwise wasted a significant portion of your day looking forrdquo he adds

Improved external collaboration is also a benefit that firms can reap from paperless matter management With an electronic system you can go into a case history bundle documents into one PDF file and quickly submit that to the third party improving collaboration between fee earners and clients who want to do everything online This has the added benefit of improving accuracy and facilitating greater efficiency by involving clients in the process ldquoGood matter management software should also let you push e-forms to clients to be filled in and that information is automatically transferred straight to the online database ndash which saves fee earners

time and is a more accurate because the information doesnrsquot have to be constantly re-enteredrdquo says Klejnow

This extra level of collaboration within legal businesses that hasnrsquot been possible until now has long been needed because it improves efficiency and productivity which makes the business more profitable and competitive Klejnow adds that what firms save by adopting matter management they should reinvest in becoming fully paperless digital businesses

ldquoCase management solutions can improve efficiency to an even greater extent and keep firms competitive in the age of the alternative business structuresrdquo

VISIBLE COMPLIANCEIn response to firms reluctant to adopt paperless technologies like document and matter management for fear of losing delicate information to cybercriminals Klejnow says those systems provide an additional level of security ldquoTaking data and attachments out of Outlook and storing them on a database is much more secure than leaving them on your hard drive If you leave

your laptop on a train for example all your important data is safely stored on a server and not instantly accessible by opportunist criminalsrdquo

Document and matter management also offers a greater level of security in fee earner and client communications ldquoIf I want you to check that the data we have for you is accurate Liberate will

direct you to a page holding your data and at the same time it will push out an SMS text with a pin code to your phone Unless you input the code you canrsquot get to the web page ndash which means if one of your solicitors accidentally sends an email to the wrong person or itrsquos intercepted it doesnrsquot matter The data stays safe ndash this level of security is crucial in this age of cybercrimerdquo

These security features clearly have significant benefits for compliance which is important in a market increasingly dictated by regulation including the relatively new General Data Protection Regulation says Klejnow

ldquoCompliance officers need to be seen by regulators to have monitored and reviewed everything thatrsquos happened in their firm which is considerably easier with a paperless system Liberate has lsquoversion controlrsquo which allows compliance officers to keep tabs on every change made to a document as well as a compliance module which lets them view whatrsquos happening on a case (to ensure that money laundering checks have been carried out and so on) and records the fact that yoursquove reviewed thisrdquo LPM

Without document management legal professionals work in silos but with it they immediately share data

INTERVIEW

LEGAL PRACTICE MANAGEMENT39

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LPM readers may already know the Nasstar Group ndash but by a different name Nasstar was launched by regular LPM-contributor e-knownet to consolidate four discrete hosted

managed IT businesses (including e-knownet) after a period of significant acquisition Nigel Redwood chief executive officer at Nasstar says merger and acquisition and consolidating brands is challenging but having a flexible hosted IT infrastructure makes the process significantly easier

ldquoManaged IT services are enormously beneficial for firms that are expanding or consolidating particularly after MampA in terms of time and productivity cost savings and flexibilityrdquo He adds that by just having managed desktops firms can attain competitive advantage by reducing overheads and becoming more flexible and agile

Nasstar has experience helping SME firms with their IT systems after MampA and knows what problems to look out for creating unity among staff used to using different systems and processes the cost and time it takes to expand an IT infrastructure and the geographic distance between new offices

Redwood says that MampA can be an excellent way for legal businesses to expand into new sectors but that consolidating new departments using different IT systems and processes is challenging

ldquoOur acquisitions for example introduced new sector focuses for us in the SME legal market ndash wersquove consolidated these into a wider service base under Nasstar and facilitated unity among staff using virtual IT solutions

rdquoVirtual IT solutions help facilitate unity across the business by providing a level of consistency in an IT infrastructure Everyone immediately uses the same applications on the same versions from wherever theyrsquore working creating unity faster collaboration across teams and effective information sharingrdquo Hosted IT infrastructures are also continually updated giving staff instant access to new updates applications and technologies as they become available

The next significant challenge firms face after MampA is expanding their IT infrastructure to accommodate an influx of new staff ndash but Redwood says virtual IT solutions let firms expand their IT infrastructure at the flick of a switch

ldquoWith virtual IT firms arenrsquot held back by the size of their servers or the amount of computer power theyrsquove got ndash they simply call their IT provider and ask for an upgrade when previously theyrsquod have been

subject to lengthy and costly IT upgradesrdquo Virtual IT solutions are also easy to budget for

Redwood says ldquoYoursquore not going to be surprised by an increased fixed asset expenditure ndash services like those offered by Nasstar are an operational cost and fixed per user per month through a scalable cost modelrdquo

Geographic distance inhibiting collaboration between merged offices is also a key consideration for firms after MampA but virtual IT solutions solve this problem Redwood says a virtual IT infrastructure can minimise travel through the use of hosted virtual meeting rooms and video technology Staff can use this technology from virtually anywhere which is why it also lends itself well to remote flexible or mobile working set-ups

VIRTUAL WORKPLACERemote working is becoming an increasingly present feature of the legal landscape because of its cost saving and recruitment and retention advantages ndash the majority of firms at the LPM conference 2016 were moving towards a flexible remote or mobile working set-up or already had one

Redwood says virtual IT solutions better enable staff who work remotely ldquoHosted managed desktop solutions for example let staff work with the same applications from any device in the world safely and securelyrdquo

But remote working isnrsquot only about enabling the current workforce itrsquos about attracting future talent Redwood says that millennials donrsquot necessarily want to work as their predecessors did ndash they expect greater flexibility in the workplace which at one level can be achieved by remote working facilitated by a managed desktop

ldquoAnd itrsquos not only about attracting millennialsrdquo he says ldquoSME firms with flexible working set-ups are becoming more attractive to experienced legal talent who may be frustrated by the rigidity of their firmrdquo As a firm expands its workforce in this manner firms with virtual IT solutions reap the lsquodoublersquo cost saving benefits of not having to expand their premises or IT infrastructure accordingly

Some firms are resistant to remote working based on hosted IT services believing they arenrsquot secure ndash but Redwood says that argument ldquocan be put to bedrdquo

ldquoFor an in-house IT team to have the level of security that an organisation like ours can deliver is near impossible financially as well as in terms of the

VIRTUALSANITYNigel Redwood CEO at Nasstar talks to LPM about how managed IT can help SME firms achieve competitive advantage by making them more agile and flexible

LEGAL PRACTICE MANAGEMENT40

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

INTERVIEW

level of systems and technologies they deployrdquo Cybercrime is of course a scary and constantly evolving threat but Redwood points out that virtual IT systems have dedicated teams monitoring these threats evolving cyber defences and changing systems accordingly

ldquoThis capability not only makes [firms] a lot more secure but gives peace of mind in terms of compliancerdquo

ONLINE ADVANTAGE Redwood says virtual IT infrastructures donrsquot just pertain to lsquobig lawrsquo but to SME firms as well ndash perhaps more so

ldquoVirtual IT systems are a way for SME firms to stay competitive against their larger

counterparts and ABSs ndash it gives them a greater ability to expand it lets them adopt more flexible and agile models and is easy to budget forrdquo Firms can also expect virtual IT solutions to enable better alignment of IT resources to business needs enhanced usability with anywhere anytime access and in-built business continuity

But the greatest advantage virtual IT offers SME firms over big law is agility Redwood says ldquoBig IT departments in firms can be slow to react cumbersome and held back by the limitations of hardware infrastructure and security issues ndash all of that is removed with a solution like ours and the customer has access to fast-moving agile ITrdquo LPM

ABOUT THE SPONSOR

Nasstar is a provider of managed IT services and tailor-made cloud hosted solutions ndash delivering innovative secure and agile IT to help clients accomplish their business objectiveswwwnasstarcom

Page 30: LPM September 2016

LEGAL PRACTICE MANAGEMENT32

SEPTEMBER 2016FEATURES

MODELS OF GROWTH According to the Lawyer the two fastest growing firms in the top 200 this year are Midlands-based Knights and lsquodistributedrsquo firm Keystone Law ndash currently placed 119 and 122 in the 2015 UK 200 rankings but whose revenue will now put them well inside the 2016 top 100 (due for release October 2016) Both attribute their growth to non-traditional business models ndash and very different non-traditional models at that

Knights corporatised in 2014 to remove the barriers from its decision making processes which CEO David Beech says has been the key to its growth ldquoEquity partnerships donrsquot grow particularly quickly because itrsquos hard to achieve consensus and make decisions that enable fundamental or rapid growth among equity partnersrdquo

Knights acquired Oxford-based Darbys earlier this year ndash a move largely behind the revenue increase that will put them in the top 100 ndash and completed the transition inside three months which Beech says would have been next to impossible under their old business structure ldquoNot only was a quick turnaround good for the books it saved significant time and money that could be invested elsewhere in the businessrdquo he says

Top 100 firm Simpson Millar is one step

ahead of Knights The firm broke the glass ceiling to become a top 100 firm in 2015 and like Knights the firm attributes its growing success to corporatisation ndash but in a different manner

It sought to be and was eventually acquired by PLC Fairpoint Group in 2014 Simpson Millar continues to run as an LLP under the same management team and existing trading brands but as a business unit within Fairpoint

Managing partner Peter Watson says that one of the key reasons to pursue this particular growth strategy was to provide an injection of capital for MampA ldquoWe completed the sizeable acquisition of Colemans last year for example which we were only able to do with considerable investment from Fairpointrdquo

Being part of a PLC has also given the firm access to strong MampA and project management capabilities ldquoAcquiring Colemans doubled the business overnight ndash for something like that you need strong MampA experience and access to that team within Fairpoint was crucial in getting the deal across the linerdquo says Watson Simpson Millar also built a strong digital strategy launched new products and focused on pricing ldquoCall it fixed fees or packaged fees the point of it was to say to consumers

Square One Law

Revenue pound5m

31 fee earners 53 total staff

Offices Newcastle-upon-Tyne

Specialisms Commercial corporate property employment EU and competition law finance litigation private client

LPM FACT FILE

Knights

Revenue pound40m (year end 2017)

375 fee earners 450 total staff

Offices Chester Cheltenham Newcastle-under-Lyme Derby Oxford Hale

Specialisms Full service firm

LPM FACT FILE

LEGAL PRACTICE MANAGEMENT33

SEPTEMBER 2016FEATURES

lsquoWith us you know exactly what yoursquoll get and how much itrsquoll costrsquordquo

PEOPLE PLEASERSThe ability to implement change has also been an important part of delivering a growth strategy This isnrsquot necessarily surprising ndash polling at the 2016 Legal Practice Management conference showed that legal business managers thought it was one of the greatest hurdles to a firmrsquos growth or success only topped by acquiring high-quality staff In Knightsrsquo case the two challenges were addressed together Beech says Knightsrsquo corporate rather than partnership structure also allows it to recruit talented people without having to deal with the inherent politics of an equity partnership

ldquoAcquiring the best talent has been a central part of our growth strategy ndash if a candidate can help the business through expertise or client following we can just recruit themrdquo he added

But a successful growth strategy incorporating talent isnrsquot just about recruiting quickly as we analysed in the July 2016 issue of LPM ndash itrsquos about recruiting well Firms also need to make themselves an attractive prospect for legal talent in order to grow

William Robins operations director at Keystone Law says his firmrsquos lsquodispersedrsquo model allows it to do that by offering new fee earners the chance to work remotely with less supervision ldquoWersquore typically hiring about a lawyer a week ndash bringing their expertise fee-earning capability and client following with them ndash and that is the core part of our growth strategyrdquo The firm has buttressed its recruitment capability by hiring a director of recruitment to focus almost entirely on lawyer enrolment (recruiting talent to recruit talent ndash neat)

Though the distributed model may not be for everyone says Robins implementing some form of flexible mobile or remote working should be part of any firmrsquos growth strategy because it allows firms to increase their fee-earning capability without accruing fixed overheads such as office premises

And there are other ways to be talent-attractive As a core part of its growth strategy Newcastle-based firm Square One Law ndash which achieved 30 growth in the

last financial year ndash has pledged to create a supportive and inspirational team environment offering high-calibre work to attract the best talent Ian Gilthorpe senior partner at Square One says ldquoGood people want to be inspired to be valued for what they do and feel as though theyrsquore making a contribution The key is to engage with all your staff to facilitate a culture where staff feel happy at work work for each other trust each other and ensure that they see the value in what they do ndash if you do that more talent will comerdquo

He added that itrsquos important for

recruitment to convey staff satisfaction to the outside world which Square One has achieved by including staff video-testimonials on its website

But recruiting is only half of an effective people strategy ndash the other is retention Simpson Millar has attempted to create an environment that its talented staff wonrsquot want to leave Says Watson ldquoToo many firms worry about what will happen if their rainmaker goes somewhere else and takes clients with them ndash so they put the shackles on make them feel unhappy and make it so that they canrsquot realise their full potentialrdquo Creating such an environment makes firms an attractive target for lateral hires when they should be building a place people want to join

PRACTICE AREASSME legal businesses donrsquot necessarily need to change their business models completely to achieve the same growth as

Thorntons

Revenue pound20m

209 fee earners 430 total staff

Offices Dundee Edinburgh St Andrews Perth Cupcar Kirkcaldy Anstruther Arbroath Montrose Forfar

Specialisms Full service firm

Keystone

Revenue pound202m

198 fee earners 230 total staff

Offices London Bristol Isle of Man Australia

Specialisms Corporate and commercial dispute resolution property

LPM FACT FILE

LPM FACT FILE

Equity partnerships donrsquot grow particularly quickly because itrsquos hard to achieve consensus and make decisions that enable fundamental or rapid growth among equity partners David Beech CEO Knights

Simpson Millar

Revenue pound316m

322 fee earners 539 total staff

Offices Birmingham Bristol Cardiff Cheadle Hulme Gateshead Kingston-upon-Thames Lancaster Leeds Park Place Leeds St Pauls Street (head office) London Manchester Newcastle

Specialisms Full service firm

LPM FACT FILE

LEGAL PRACTICE MANAGEMENT34

SEPTEMBER 2016FEATURES

our examples but removing blockers from decision-making making themselves more attractive to talent and finding the right funding for growth are increasingly important and the partnership structure may not enable it

But of course that means asking some turkeys to vote in a Yuletide election Fortunately there are other ways to achieve impressive growth mainly investment andor expansion into new geographic or practice areas

Watson says that Simpson Millar wouldnrsquot have been an attractive prospect to Fairpoint had the firm not spent time growing organically by expanding into new areas of law

ldquoWe went from being a predominantly trade union PI firm to having a broad base of 16 types of work ndash with strong heads in charge of each committed to driving growth in their departments ndash which gave us a large boost in revenuerdquo The firm achieved this through small acquisitions of other firms that had expertise in particularly lucrative areas of law

But firms shouldnrsquot just look at expanding in lucrative areas ndash they should focus on areas where their reputations deliver an advantage Scotlandrsquos Thorntons for example ndash which last year leapt from 134 to 108 in the 2015 UK 200 rankings ndash invested in six departments as part of its growth strategy

Thorntons joint managing partner Scott Milne says ldquoWe didnrsquot exclude other areas but we saw that these areas were profitable and that more importantly we had considerable expertise in them ndash we also considered that these are areas that are unlikely to be affected by future economic downturnrdquo This included investing in niche areas of law where the firm has a geographic competitive advantage ldquoWersquore lucky to be surrounded by some of the best farmland in the UK ndash wersquore well known for our expertise in rural business law which is why we invested heavily in itrdquo

ORGANIC V ACQUISITIONIn several ways choosing an effective growth strategy very much boils down to MampA versus organic growth ndash every business model talent or area expansion strategy appears to revolve around one or both But which is the best to achieve the kind of growth thatrsquoll propel firms to a lsquohockey stickrsquo on their revenue forecasts The short answer is it depends on whatrsquos best for a firm at a given time It either

needs to fit the firm ndash or the firm needs to change to fit the goal

Beech says that acquisition has been excellent for Knights because itrsquos a fast and effective form of expansion ndash the acquisition of Darbys more than doubled its revenue But MampA poses a significant challenge to finding firms with the right cultural fit

ldquoFirms need to establish a single culture in order to implement growth ndash everyone needs to be working towards the same goalrdquo He added that when a firm completes a merger or acquisition that firm has to be integrated from day one which is much more difficult if it has a significantly different culture Knights is planning to continue recruiting and complete more acquisitions in the next year to maintain the growth curve

Of course the big problem with acquisition is money Robins at Keystone says his firm lies at the opposite end of this

INFORMATION IS EMPOWERING

Lemington Spa-based firm Wright Hassall has a specific goal of breaking into the top 100 and as part of its growth strategy expanded into areas of the UK where its expertise is highly sought after ndash using customer relationship management in the background to underpin the firmrsquos activities in specific areas Martyn Wells IT director at the firm says ldquoWersquove zoomed in on specific industry sectors that we know are performing well in the Midlands sectors where we have a superb reputationrdquo Expanding geographically as Wells outlines needs data to get right Thorntons for example identified various lsquomicro-marketsrsquo in Scotland close to its base of operations ldquoWe acquired a firm in St Andrews because itrsquos like a micro-economy (or micro-market) that doesnrsquot seem to be affected by price drops in the residential market elsewhererdquo says Thorntons joint managing partner Scott Milne Knights has another take on the geographic targeting idea ndash it intends to stay out of the large cities (London Manchester Leeds for example) and expand into areas where there is little competition As David Beech CEO at Knights explains ldquoLast September we acquired a small team in Chester of about 11 lawyers and now thatrsquos expanded to just over 70 ndash and the main reason wersquove been able to do that is because there isnrsquot a lot of competition thererdquoUltimately this all comes down to research finding out what to invest in or where to expand and perhaps most importantly finding out what clients want

LEGAL PRACTICE MANAGEMENT35

SEPTEMBER 2016FEATURES

spectrum to the way Knights has grown emphasising organic growth finding innovative means to attract talent using technology to drive efficiency and branching out into new areas of law or new markets to achieve significant growth

Square One Law also espouses the organic route ndash believing that firms with growth in mind should focus on ensuring their external brand reflects the businessrsquos internal culture and behaviours of its team creating lsquosynergyrsquo between the business and its clients

Gilthorpe says ldquoMergers ndash and there is no such thing as a true merger ndash and acquisitions can be a distraction as you look to create a new culture and separate the wheat from the chaff and this can soak up a lot of energy that would otherwise be put to use in driving the progression of the business and the focus on client servicerdquo

The best option for some firms may be a

calculated combination of MampA and organic Thorntons for example having made several acquisitions is now focusing on organic growth moving away from geographical expansion and towards developing locations and its brand

Watson at Simpson Millar sums the mixed approach up thus ldquoItrsquos a mixture Acquisition is still very much a part of the mix but in parallel to that itrsquos important to demonstrate that yoursquore developing ongoing work rather than being driven solely by acquisitionrdquo

There are clearly many different ways to achieve healthy and assertive growth though there are no easy answers as to which way is right for your firm But it is clear that growth doesnrsquot have to happen in the ways many have previously achieved it ndash innovation and lateral thinking are the means of achieving significant growth (which might one day propel you into the top 100 you never know) LPM

LEGAL PRACTICE MANAGEMENT36

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

INDUSTRY VIEWS

36LEGAL PRACTICE MANAGEMENT

Legal is becoming an ever more digital industry giving firms the chance to become more efficient flexible agile and collaborative

INDUSTRY VIEWS INDEX

ONLINEOFFICES

36

SPONSORED EDITORIAL

INDUSTRY VIEWS

37 INTERVIEW

Paperless processLinetimersquos Tony Klejnow explains the benefits of using matter management software for law firms and their clients

39 INTERVIEW

Virtual expansionNigel Redwood Nasstarrsquos CEO talks about the advantages of having a managed flexible IT infrastructure

LEGAL PRACTICE MANAGEMENT37

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT37

Competition and price pressures and an increasingly digital client base are all significant drivers for law firms to become paperless

businesses Tony Klejnow Linetimersquos managing director says firms could achieve competitive advantage by introducing paperless solutions across their businesses ndash but a particular lsquoeasy winrsquo area is matter management

ldquoFee earners are required to keep detailed records of their cases but the amount of time and money they waste physically printing filing looking for collaborating on and updating files is alarmingrdquo says Klejnow Law firms have traditionally been reluctant to adopt paperless

workflow solutions he adds because workflow doesnrsquot apply to 99 of fee earnersrsquo work ldquoBut if they adopted paperless solutions in their back office processes they could reduce costs without affecting client service boost productivity and promote collaboration ndash making them more efficient flexible and cost effective and making them more competitive in an ever-changing legal marketrdquo

MATTER MATTERSDocument and matter management tools ndash like those in Linetimersquos legal software product Liberate ndash electronically store and organise all case documentation in an online database Klejnow says that there are two immediate benefits of paperless matter

PAPERLESS PROCESS

Tony Klejnow managing director at Linetime talks to LPM about the benefits of the paperless office ndash starting with filing and back office processes

INDUSTRY VIEWS

Linetime is a specialist provider of Microsoft-based practice and case management solutions Clients include mid-tier law firms and in-house legal departmentswwwlinetimecouk

ABOUT THE SPONSOR

SPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT38

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT 38

management The first is reducing paper and storage costs

ldquoIf case documentation is electronically stored once a case is finished you no longer have a five-inches-thick file that has to be stored for six years ndash which has to reside somewhere and costs firms time space and moneyrdquo The second is eliminating filing time ndash for example instead of printing and filing emails and attachments fee earners drag and drop emails directly from Outlook into the database ldquoand attachments are automatically stripped from emails and appropriately filedrdquo says Klejnow

And Klejnow says paperless filing systems donrsquot just facilitate efficiency this way ndash they also improve general process efficiency by facilitating collaboration between fee earners Solicitors can use document and matter management to view and work on matters at the same time a difficult if not impossible prospect when working with paper files Klejnow says ldquoWithout document management legal professionals work in silos but with it they immediately share datardquo He adds that Liberate has an additional collaboration tool to help further improve collaborative efficiency in firms ldquoIf I choose to lsquocollaboratersquo a document with you on Liberate Outlook will prompt you to review that document by simply acknowledging the notificationrdquo

In this respect moving to become a paperless business provides greater flexibility for fee earners who can collaborate with colleagues working remotely or in different offices Klejnow says ldquoPaper files can only reside in one location but electronic files can be accessed from any office and when working from home or with clientsrdquo On the other side of the coin having digital files maintains a greater level of productivity in a law firm office ldquoIf your colleague is absent from the office you can easily find documents that you might have otherwise wasted a significant portion of your day looking forrdquo he adds

Improved external collaboration is also a benefit that firms can reap from paperless matter management With an electronic system you can go into a case history bundle documents into one PDF file and quickly submit that to the third party improving collaboration between fee earners and clients who want to do everything online This has the added benefit of improving accuracy and facilitating greater efficiency by involving clients in the process ldquoGood matter management software should also let you push e-forms to clients to be filled in and that information is automatically transferred straight to the online database ndash which saves fee earners

time and is a more accurate because the information doesnrsquot have to be constantly re-enteredrdquo says Klejnow

This extra level of collaboration within legal businesses that hasnrsquot been possible until now has long been needed because it improves efficiency and productivity which makes the business more profitable and competitive Klejnow adds that what firms save by adopting matter management they should reinvest in becoming fully paperless digital businesses

ldquoCase management solutions can improve efficiency to an even greater extent and keep firms competitive in the age of the alternative business structuresrdquo

VISIBLE COMPLIANCEIn response to firms reluctant to adopt paperless technologies like document and matter management for fear of losing delicate information to cybercriminals Klejnow says those systems provide an additional level of security ldquoTaking data and attachments out of Outlook and storing them on a database is much more secure than leaving them on your hard drive If you leave

your laptop on a train for example all your important data is safely stored on a server and not instantly accessible by opportunist criminalsrdquo

Document and matter management also offers a greater level of security in fee earner and client communications ldquoIf I want you to check that the data we have for you is accurate Liberate will

direct you to a page holding your data and at the same time it will push out an SMS text with a pin code to your phone Unless you input the code you canrsquot get to the web page ndash which means if one of your solicitors accidentally sends an email to the wrong person or itrsquos intercepted it doesnrsquot matter The data stays safe ndash this level of security is crucial in this age of cybercrimerdquo

These security features clearly have significant benefits for compliance which is important in a market increasingly dictated by regulation including the relatively new General Data Protection Regulation says Klejnow

ldquoCompliance officers need to be seen by regulators to have monitored and reviewed everything thatrsquos happened in their firm which is considerably easier with a paperless system Liberate has lsquoversion controlrsquo which allows compliance officers to keep tabs on every change made to a document as well as a compliance module which lets them view whatrsquos happening on a case (to ensure that money laundering checks have been carried out and so on) and records the fact that yoursquove reviewed thisrdquo LPM

Without document management legal professionals work in silos but with it they immediately share data

INTERVIEW

LEGAL PRACTICE MANAGEMENT39

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LPM readers may already know the Nasstar Group ndash but by a different name Nasstar was launched by regular LPM-contributor e-knownet to consolidate four discrete hosted

managed IT businesses (including e-knownet) after a period of significant acquisition Nigel Redwood chief executive officer at Nasstar says merger and acquisition and consolidating brands is challenging but having a flexible hosted IT infrastructure makes the process significantly easier

ldquoManaged IT services are enormously beneficial for firms that are expanding or consolidating particularly after MampA in terms of time and productivity cost savings and flexibilityrdquo He adds that by just having managed desktops firms can attain competitive advantage by reducing overheads and becoming more flexible and agile

Nasstar has experience helping SME firms with their IT systems after MampA and knows what problems to look out for creating unity among staff used to using different systems and processes the cost and time it takes to expand an IT infrastructure and the geographic distance between new offices

Redwood says that MampA can be an excellent way for legal businesses to expand into new sectors but that consolidating new departments using different IT systems and processes is challenging

ldquoOur acquisitions for example introduced new sector focuses for us in the SME legal market ndash wersquove consolidated these into a wider service base under Nasstar and facilitated unity among staff using virtual IT solutions

rdquoVirtual IT solutions help facilitate unity across the business by providing a level of consistency in an IT infrastructure Everyone immediately uses the same applications on the same versions from wherever theyrsquore working creating unity faster collaboration across teams and effective information sharingrdquo Hosted IT infrastructures are also continually updated giving staff instant access to new updates applications and technologies as they become available

The next significant challenge firms face after MampA is expanding their IT infrastructure to accommodate an influx of new staff ndash but Redwood says virtual IT solutions let firms expand their IT infrastructure at the flick of a switch

ldquoWith virtual IT firms arenrsquot held back by the size of their servers or the amount of computer power theyrsquove got ndash they simply call their IT provider and ask for an upgrade when previously theyrsquod have been

subject to lengthy and costly IT upgradesrdquo Virtual IT solutions are also easy to budget for

Redwood says ldquoYoursquore not going to be surprised by an increased fixed asset expenditure ndash services like those offered by Nasstar are an operational cost and fixed per user per month through a scalable cost modelrdquo

Geographic distance inhibiting collaboration between merged offices is also a key consideration for firms after MampA but virtual IT solutions solve this problem Redwood says a virtual IT infrastructure can minimise travel through the use of hosted virtual meeting rooms and video technology Staff can use this technology from virtually anywhere which is why it also lends itself well to remote flexible or mobile working set-ups

VIRTUAL WORKPLACERemote working is becoming an increasingly present feature of the legal landscape because of its cost saving and recruitment and retention advantages ndash the majority of firms at the LPM conference 2016 were moving towards a flexible remote or mobile working set-up or already had one

Redwood says virtual IT solutions better enable staff who work remotely ldquoHosted managed desktop solutions for example let staff work with the same applications from any device in the world safely and securelyrdquo

But remote working isnrsquot only about enabling the current workforce itrsquos about attracting future talent Redwood says that millennials donrsquot necessarily want to work as their predecessors did ndash they expect greater flexibility in the workplace which at one level can be achieved by remote working facilitated by a managed desktop

ldquoAnd itrsquos not only about attracting millennialsrdquo he says ldquoSME firms with flexible working set-ups are becoming more attractive to experienced legal talent who may be frustrated by the rigidity of their firmrdquo As a firm expands its workforce in this manner firms with virtual IT solutions reap the lsquodoublersquo cost saving benefits of not having to expand their premises or IT infrastructure accordingly

Some firms are resistant to remote working based on hosted IT services believing they arenrsquot secure ndash but Redwood says that argument ldquocan be put to bedrdquo

ldquoFor an in-house IT team to have the level of security that an organisation like ours can deliver is near impossible financially as well as in terms of the

VIRTUALSANITYNigel Redwood CEO at Nasstar talks to LPM about how managed IT can help SME firms achieve competitive advantage by making them more agile and flexible

LEGAL PRACTICE MANAGEMENT40

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

INTERVIEW

level of systems and technologies they deployrdquo Cybercrime is of course a scary and constantly evolving threat but Redwood points out that virtual IT systems have dedicated teams monitoring these threats evolving cyber defences and changing systems accordingly

ldquoThis capability not only makes [firms] a lot more secure but gives peace of mind in terms of compliancerdquo

ONLINE ADVANTAGE Redwood says virtual IT infrastructures donrsquot just pertain to lsquobig lawrsquo but to SME firms as well ndash perhaps more so

ldquoVirtual IT systems are a way for SME firms to stay competitive against their larger

counterparts and ABSs ndash it gives them a greater ability to expand it lets them adopt more flexible and agile models and is easy to budget forrdquo Firms can also expect virtual IT solutions to enable better alignment of IT resources to business needs enhanced usability with anywhere anytime access and in-built business continuity

But the greatest advantage virtual IT offers SME firms over big law is agility Redwood says ldquoBig IT departments in firms can be slow to react cumbersome and held back by the limitations of hardware infrastructure and security issues ndash all of that is removed with a solution like ours and the customer has access to fast-moving agile ITrdquo LPM

ABOUT THE SPONSOR

Nasstar is a provider of managed IT services and tailor-made cloud hosted solutions ndash delivering innovative secure and agile IT to help clients accomplish their business objectiveswwwnasstarcom

Page 31: LPM September 2016

LEGAL PRACTICE MANAGEMENT33

SEPTEMBER 2016FEATURES

lsquoWith us you know exactly what yoursquoll get and how much itrsquoll costrsquordquo

PEOPLE PLEASERSThe ability to implement change has also been an important part of delivering a growth strategy This isnrsquot necessarily surprising ndash polling at the 2016 Legal Practice Management conference showed that legal business managers thought it was one of the greatest hurdles to a firmrsquos growth or success only topped by acquiring high-quality staff In Knightsrsquo case the two challenges were addressed together Beech says Knightsrsquo corporate rather than partnership structure also allows it to recruit talented people without having to deal with the inherent politics of an equity partnership

ldquoAcquiring the best talent has been a central part of our growth strategy ndash if a candidate can help the business through expertise or client following we can just recruit themrdquo he added

But a successful growth strategy incorporating talent isnrsquot just about recruiting quickly as we analysed in the July 2016 issue of LPM ndash itrsquos about recruiting well Firms also need to make themselves an attractive prospect for legal talent in order to grow

William Robins operations director at Keystone Law says his firmrsquos lsquodispersedrsquo model allows it to do that by offering new fee earners the chance to work remotely with less supervision ldquoWersquore typically hiring about a lawyer a week ndash bringing their expertise fee-earning capability and client following with them ndash and that is the core part of our growth strategyrdquo The firm has buttressed its recruitment capability by hiring a director of recruitment to focus almost entirely on lawyer enrolment (recruiting talent to recruit talent ndash neat)

Though the distributed model may not be for everyone says Robins implementing some form of flexible mobile or remote working should be part of any firmrsquos growth strategy because it allows firms to increase their fee-earning capability without accruing fixed overheads such as office premises

And there are other ways to be talent-attractive As a core part of its growth strategy Newcastle-based firm Square One Law ndash which achieved 30 growth in the

last financial year ndash has pledged to create a supportive and inspirational team environment offering high-calibre work to attract the best talent Ian Gilthorpe senior partner at Square One says ldquoGood people want to be inspired to be valued for what they do and feel as though theyrsquore making a contribution The key is to engage with all your staff to facilitate a culture where staff feel happy at work work for each other trust each other and ensure that they see the value in what they do ndash if you do that more talent will comerdquo

He added that itrsquos important for

recruitment to convey staff satisfaction to the outside world which Square One has achieved by including staff video-testimonials on its website

But recruiting is only half of an effective people strategy ndash the other is retention Simpson Millar has attempted to create an environment that its talented staff wonrsquot want to leave Says Watson ldquoToo many firms worry about what will happen if their rainmaker goes somewhere else and takes clients with them ndash so they put the shackles on make them feel unhappy and make it so that they canrsquot realise their full potentialrdquo Creating such an environment makes firms an attractive target for lateral hires when they should be building a place people want to join

PRACTICE AREASSME legal businesses donrsquot necessarily need to change their business models completely to achieve the same growth as

Thorntons

Revenue pound20m

209 fee earners 430 total staff

Offices Dundee Edinburgh St Andrews Perth Cupcar Kirkcaldy Anstruther Arbroath Montrose Forfar

Specialisms Full service firm

Keystone

Revenue pound202m

198 fee earners 230 total staff

Offices London Bristol Isle of Man Australia

Specialisms Corporate and commercial dispute resolution property

LPM FACT FILE

LPM FACT FILE

Equity partnerships donrsquot grow particularly quickly because itrsquos hard to achieve consensus and make decisions that enable fundamental or rapid growth among equity partners David Beech CEO Knights

Simpson Millar

Revenue pound316m

322 fee earners 539 total staff

Offices Birmingham Bristol Cardiff Cheadle Hulme Gateshead Kingston-upon-Thames Lancaster Leeds Park Place Leeds St Pauls Street (head office) London Manchester Newcastle

Specialisms Full service firm

LPM FACT FILE

LEGAL PRACTICE MANAGEMENT34

SEPTEMBER 2016FEATURES

our examples but removing blockers from decision-making making themselves more attractive to talent and finding the right funding for growth are increasingly important and the partnership structure may not enable it

But of course that means asking some turkeys to vote in a Yuletide election Fortunately there are other ways to achieve impressive growth mainly investment andor expansion into new geographic or practice areas

Watson says that Simpson Millar wouldnrsquot have been an attractive prospect to Fairpoint had the firm not spent time growing organically by expanding into new areas of law

ldquoWe went from being a predominantly trade union PI firm to having a broad base of 16 types of work ndash with strong heads in charge of each committed to driving growth in their departments ndash which gave us a large boost in revenuerdquo The firm achieved this through small acquisitions of other firms that had expertise in particularly lucrative areas of law

But firms shouldnrsquot just look at expanding in lucrative areas ndash they should focus on areas where their reputations deliver an advantage Scotlandrsquos Thorntons for example ndash which last year leapt from 134 to 108 in the 2015 UK 200 rankings ndash invested in six departments as part of its growth strategy

Thorntons joint managing partner Scott Milne says ldquoWe didnrsquot exclude other areas but we saw that these areas were profitable and that more importantly we had considerable expertise in them ndash we also considered that these are areas that are unlikely to be affected by future economic downturnrdquo This included investing in niche areas of law where the firm has a geographic competitive advantage ldquoWersquore lucky to be surrounded by some of the best farmland in the UK ndash wersquore well known for our expertise in rural business law which is why we invested heavily in itrdquo

ORGANIC V ACQUISITIONIn several ways choosing an effective growth strategy very much boils down to MampA versus organic growth ndash every business model talent or area expansion strategy appears to revolve around one or both But which is the best to achieve the kind of growth thatrsquoll propel firms to a lsquohockey stickrsquo on their revenue forecasts The short answer is it depends on whatrsquos best for a firm at a given time It either

needs to fit the firm ndash or the firm needs to change to fit the goal

Beech says that acquisition has been excellent for Knights because itrsquos a fast and effective form of expansion ndash the acquisition of Darbys more than doubled its revenue But MampA poses a significant challenge to finding firms with the right cultural fit

ldquoFirms need to establish a single culture in order to implement growth ndash everyone needs to be working towards the same goalrdquo He added that when a firm completes a merger or acquisition that firm has to be integrated from day one which is much more difficult if it has a significantly different culture Knights is planning to continue recruiting and complete more acquisitions in the next year to maintain the growth curve

Of course the big problem with acquisition is money Robins at Keystone says his firm lies at the opposite end of this

INFORMATION IS EMPOWERING

Lemington Spa-based firm Wright Hassall has a specific goal of breaking into the top 100 and as part of its growth strategy expanded into areas of the UK where its expertise is highly sought after ndash using customer relationship management in the background to underpin the firmrsquos activities in specific areas Martyn Wells IT director at the firm says ldquoWersquove zoomed in on specific industry sectors that we know are performing well in the Midlands sectors where we have a superb reputationrdquo Expanding geographically as Wells outlines needs data to get right Thorntons for example identified various lsquomicro-marketsrsquo in Scotland close to its base of operations ldquoWe acquired a firm in St Andrews because itrsquos like a micro-economy (or micro-market) that doesnrsquot seem to be affected by price drops in the residential market elsewhererdquo says Thorntons joint managing partner Scott Milne Knights has another take on the geographic targeting idea ndash it intends to stay out of the large cities (London Manchester Leeds for example) and expand into areas where there is little competition As David Beech CEO at Knights explains ldquoLast September we acquired a small team in Chester of about 11 lawyers and now thatrsquos expanded to just over 70 ndash and the main reason wersquove been able to do that is because there isnrsquot a lot of competition thererdquoUltimately this all comes down to research finding out what to invest in or where to expand and perhaps most importantly finding out what clients want

LEGAL PRACTICE MANAGEMENT35

SEPTEMBER 2016FEATURES

spectrum to the way Knights has grown emphasising organic growth finding innovative means to attract talent using technology to drive efficiency and branching out into new areas of law or new markets to achieve significant growth

Square One Law also espouses the organic route ndash believing that firms with growth in mind should focus on ensuring their external brand reflects the businessrsquos internal culture and behaviours of its team creating lsquosynergyrsquo between the business and its clients

Gilthorpe says ldquoMergers ndash and there is no such thing as a true merger ndash and acquisitions can be a distraction as you look to create a new culture and separate the wheat from the chaff and this can soak up a lot of energy that would otherwise be put to use in driving the progression of the business and the focus on client servicerdquo

The best option for some firms may be a

calculated combination of MampA and organic Thorntons for example having made several acquisitions is now focusing on organic growth moving away from geographical expansion and towards developing locations and its brand

Watson at Simpson Millar sums the mixed approach up thus ldquoItrsquos a mixture Acquisition is still very much a part of the mix but in parallel to that itrsquos important to demonstrate that yoursquore developing ongoing work rather than being driven solely by acquisitionrdquo

There are clearly many different ways to achieve healthy and assertive growth though there are no easy answers as to which way is right for your firm But it is clear that growth doesnrsquot have to happen in the ways many have previously achieved it ndash innovation and lateral thinking are the means of achieving significant growth (which might one day propel you into the top 100 you never know) LPM

LEGAL PRACTICE MANAGEMENT36

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

INDUSTRY VIEWS

36LEGAL PRACTICE MANAGEMENT

Legal is becoming an ever more digital industry giving firms the chance to become more efficient flexible agile and collaborative

INDUSTRY VIEWS INDEX

ONLINEOFFICES

36

SPONSORED EDITORIAL

INDUSTRY VIEWS

37 INTERVIEW

Paperless processLinetimersquos Tony Klejnow explains the benefits of using matter management software for law firms and their clients

39 INTERVIEW

Virtual expansionNigel Redwood Nasstarrsquos CEO talks about the advantages of having a managed flexible IT infrastructure

LEGAL PRACTICE MANAGEMENT37

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT37

Competition and price pressures and an increasingly digital client base are all significant drivers for law firms to become paperless

businesses Tony Klejnow Linetimersquos managing director says firms could achieve competitive advantage by introducing paperless solutions across their businesses ndash but a particular lsquoeasy winrsquo area is matter management

ldquoFee earners are required to keep detailed records of their cases but the amount of time and money they waste physically printing filing looking for collaborating on and updating files is alarmingrdquo says Klejnow Law firms have traditionally been reluctant to adopt paperless

workflow solutions he adds because workflow doesnrsquot apply to 99 of fee earnersrsquo work ldquoBut if they adopted paperless solutions in their back office processes they could reduce costs without affecting client service boost productivity and promote collaboration ndash making them more efficient flexible and cost effective and making them more competitive in an ever-changing legal marketrdquo

MATTER MATTERSDocument and matter management tools ndash like those in Linetimersquos legal software product Liberate ndash electronically store and organise all case documentation in an online database Klejnow says that there are two immediate benefits of paperless matter

PAPERLESS PROCESS

Tony Klejnow managing director at Linetime talks to LPM about the benefits of the paperless office ndash starting with filing and back office processes

INDUSTRY VIEWS

Linetime is a specialist provider of Microsoft-based practice and case management solutions Clients include mid-tier law firms and in-house legal departmentswwwlinetimecouk

ABOUT THE SPONSOR

SPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT38

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT 38

management The first is reducing paper and storage costs

ldquoIf case documentation is electronically stored once a case is finished you no longer have a five-inches-thick file that has to be stored for six years ndash which has to reside somewhere and costs firms time space and moneyrdquo The second is eliminating filing time ndash for example instead of printing and filing emails and attachments fee earners drag and drop emails directly from Outlook into the database ldquoand attachments are automatically stripped from emails and appropriately filedrdquo says Klejnow

And Klejnow says paperless filing systems donrsquot just facilitate efficiency this way ndash they also improve general process efficiency by facilitating collaboration between fee earners Solicitors can use document and matter management to view and work on matters at the same time a difficult if not impossible prospect when working with paper files Klejnow says ldquoWithout document management legal professionals work in silos but with it they immediately share datardquo He adds that Liberate has an additional collaboration tool to help further improve collaborative efficiency in firms ldquoIf I choose to lsquocollaboratersquo a document with you on Liberate Outlook will prompt you to review that document by simply acknowledging the notificationrdquo

In this respect moving to become a paperless business provides greater flexibility for fee earners who can collaborate with colleagues working remotely or in different offices Klejnow says ldquoPaper files can only reside in one location but electronic files can be accessed from any office and when working from home or with clientsrdquo On the other side of the coin having digital files maintains a greater level of productivity in a law firm office ldquoIf your colleague is absent from the office you can easily find documents that you might have otherwise wasted a significant portion of your day looking forrdquo he adds

Improved external collaboration is also a benefit that firms can reap from paperless matter management With an electronic system you can go into a case history bundle documents into one PDF file and quickly submit that to the third party improving collaboration between fee earners and clients who want to do everything online This has the added benefit of improving accuracy and facilitating greater efficiency by involving clients in the process ldquoGood matter management software should also let you push e-forms to clients to be filled in and that information is automatically transferred straight to the online database ndash which saves fee earners

time and is a more accurate because the information doesnrsquot have to be constantly re-enteredrdquo says Klejnow

This extra level of collaboration within legal businesses that hasnrsquot been possible until now has long been needed because it improves efficiency and productivity which makes the business more profitable and competitive Klejnow adds that what firms save by adopting matter management they should reinvest in becoming fully paperless digital businesses

ldquoCase management solutions can improve efficiency to an even greater extent and keep firms competitive in the age of the alternative business structuresrdquo

VISIBLE COMPLIANCEIn response to firms reluctant to adopt paperless technologies like document and matter management for fear of losing delicate information to cybercriminals Klejnow says those systems provide an additional level of security ldquoTaking data and attachments out of Outlook and storing them on a database is much more secure than leaving them on your hard drive If you leave

your laptop on a train for example all your important data is safely stored on a server and not instantly accessible by opportunist criminalsrdquo

Document and matter management also offers a greater level of security in fee earner and client communications ldquoIf I want you to check that the data we have for you is accurate Liberate will

direct you to a page holding your data and at the same time it will push out an SMS text with a pin code to your phone Unless you input the code you canrsquot get to the web page ndash which means if one of your solicitors accidentally sends an email to the wrong person or itrsquos intercepted it doesnrsquot matter The data stays safe ndash this level of security is crucial in this age of cybercrimerdquo

These security features clearly have significant benefits for compliance which is important in a market increasingly dictated by regulation including the relatively new General Data Protection Regulation says Klejnow

ldquoCompliance officers need to be seen by regulators to have monitored and reviewed everything thatrsquos happened in their firm which is considerably easier with a paperless system Liberate has lsquoversion controlrsquo which allows compliance officers to keep tabs on every change made to a document as well as a compliance module which lets them view whatrsquos happening on a case (to ensure that money laundering checks have been carried out and so on) and records the fact that yoursquove reviewed thisrdquo LPM

Without document management legal professionals work in silos but with it they immediately share data

INTERVIEW

LEGAL PRACTICE MANAGEMENT39

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LPM readers may already know the Nasstar Group ndash but by a different name Nasstar was launched by regular LPM-contributor e-knownet to consolidate four discrete hosted

managed IT businesses (including e-knownet) after a period of significant acquisition Nigel Redwood chief executive officer at Nasstar says merger and acquisition and consolidating brands is challenging but having a flexible hosted IT infrastructure makes the process significantly easier

ldquoManaged IT services are enormously beneficial for firms that are expanding or consolidating particularly after MampA in terms of time and productivity cost savings and flexibilityrdquo He adds that by just having managed desktops firms can attain competitive advantage by reducing overheads and becoming more flexible and agile

Nasstar has experience helping SME firms with their IT systems after MampA and knows what problems to look out for creating unity among staff used to using different systems and processes the cost and time it takes to expand an IT infrastructure and the geographic distance between new offices

Redwood says that MampA can be an excellent way for legal businesses to expand into new sectors but that consolidating new departments using different IT systems and processes is challenging

ldquoOur acquisitions for example introduced new sector focuses for us in the SME legal market ndash wersquove consolidated these into a wider service base under Nasstar and facilitated unity among staff using virtual IT solutions

rdquoVirtual IT solutions help facilitate unity across the business by providing a level of consistency in an IT infrastructure Everyone immediately uses the same applications on the same versions from wherever theyrsquore working creating unity faster collaboration across teams and effective information sharingrdquo Hosted IT infrastructures are also continually updated giving staff instant access to new updates applications and technologies as they become available

The next significant challenge firms face after MampA is expanding their IT infrastructure to accommodate an influx of new staff ndash but Redwood says virtual IT solutions let firms expand their IT infrastructure at the flick of a switch

ldquoWith virtual IT firms arenrsquot held back by the size of their servers or the amount of computer power theyrsquove got ndash they simply call their IT provider and ask for an upgrade when previously theyrsquod have been

subject to lengthy and costly IT upgradesrdquo Virtual IT solutions are also easy to budget for

Redwood says ldquoYoursquore not going to be surprised by an increased fixed asset expenditure ndash services like those offered by Nasstar are an operational cost and fixed per user per month through a scalable cost modelrdquo

Geographic distance inhibiting collaboration between merged offices is also a key consideration for firms after MampA but virtual IT solutions solve this problem Redwood says a virtual IT infrastructure can minimise travel through the use of hosted virtual meeting rooms and video technology Staff can use this technology from virtually anywhere which is why it also lends itself well to remote flexible or mobile working set-ups

VIRTUAL WORKPLACERemote working is becoming an increasingly present feature of the legal landscape because of its cost saving and recruitment and retention advantages ndash the majority of firms at the LPM conference 2016 were moving towards a flexible remote or mobile working set-up or already had one

Redwood says virtual IT solutions better enable staff who work remotely ldquoHosted managed desktop solutions for example let staff work with the same applications from any device in the world safely and securelyrdquo

But remote working isnrsquot only about enabling the current workforce itrsquos about attracting future talent Redwood says that millennials donrsquot necessarily want to work as their predecessors did ndash they expect greater flexibility in the workplace which at one level can be achieved by remote working facilitated by a managed desktop

ldquoAnd itrsquos not only about attracting millennialsrdquo he says ldquoSME firms with flexible working set-ups are becoming more attractive to experienced legal talent who may be frustrated by the rigidity of their firmrdquo As a firm expands its workforce in this manner firms with virtual IT solutions reap the lsquodoublersquo cost saving benefits of not having to expand their premises or IT infrastructure accordingly

Some firms are resistant to remote working based on hosted IT services believing they arenrsquot secure ndash but Redwood says that argument ldquocan be put to bedrdquo

ldquoFor an in-house IT team to have the level of security that an organisation like ours can deliver is near impossible financially as well as in terms of the

VIRTUALSANITYNigel Redwood CEO at Nasstar talks to LPM about how managed IT can help SME firms achieve competitive advantage by making them more agile and flexible

LEGAL PRACTICE MANAGEMENT40

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

INTERVIEW

level of systems and technologies they deployrdquo Cybercrime is of course a scary and constantly evolving threat but Redwood points out that virtual IT systems have dedicated teams monitoring these threats evolving cyber defences and changing systems accordingly

ldquoThis capability not only makes [firms] a lot more secure but gives peace of mind in terms of compliancerdquo

ONLINE ADVANTAGE Redwood says virtual IT infrastructures donrsquot just pertain to lsquobig lawrsquo but to SME firms as well ndash perhaps more so

ldquoVirtual IT systems are a way for SME firms to stay competitive against their larger

counterparts and ABSs ndash it gives them a greater ability to expand it lets them adopt more flexible and agile models and is easy to budget forrdquo Firms can also expect virtual IT solutions to enable better alignment of IT resources to business needs enhanced usability with anywhere anytime access and in-built business continuity

But the greatest advantage virtual IT offers SME firms over big law is agility Redwood says ldquoBig IT departments in firms can be slow to react cumbersome and held back by the limitations of hardware infrastructure and security issues ndash all of that is removed with a solution like ours and the customer has access to fast-moving agile ITrdquo LPM

ABOUT THE SPONSOR

Nasstar is a provider of managed IT services and tailor-made cloud hosted solutions ndash delivering innovative secure and agile IT to help clients accomplish their business objectiveswwwnasstarcom

Page 32: LPM September 2016

LEGAL PRACTICE MANAGEMENT34

SEPTEMBER 2016FEATURES

our examples but removing blockers from decision-making making themselves more attractive to talent and finding the right funding for growth are increasingly important and the partnership structure may not enable it

But of course that means asking some turkeys to vote in a Yuletide election Fortunately there are other ways to achieve impressive growth mainly investment andor expansion into new geographic or practice areas

Watson says that Simpson Millar wouldnrsquot have been an attractive prospect to Fairpoint had the firm not spent time growing organically by expanding into new areas of law

ldquoWe went from being a predominantly trade union PI firm to having a broad base of 16 types of work ndash with strong heads in charge of each committed to driving growth in their departments ndash which gave us a large boost in revenuerdquo The firm achieved this through small acquisitions of other firms that had expertise in particularly lucrative areas of law

But firms shouldnrsquot just look at expanding in lucrative areas ndash they should focus on areas where their reputations deliver an advantage Scotlandrsquos Thorntons for example ndash which last year leapt from 134 to 108 in the 2015 UK 200 rankings ndash invested in six departments as part of its growth strategy

Thorntons joint managing partner Scott Milne says ldquoWe didnrsquot exclude other areas but we saw that these areas were profitable and that more importantly we had considerable expertise in them ndash we also considered that these are areas that are unlikely to be affected by future economic downturnrdquo This included investing in niche areas of law where the firm has a geographic competitive advantage ldquoWersquore lucky to be surrounded by some of the best farmland in the UK ndash wersquore well known for our expertise in rural business law which is why we invested heavily in itrdquo

ORGANIC V ACQUISITIONIn several ways choosing an effective growth strategy very much boils down to MampA versus organic growth ndash every business model talent or area expansion strategy appears to revolve around one or both But which is the best to achieve the kind of growth thatrsquoll propel firms to a lsquohockey stickrsquo on their revenue forecasts The short answer is it depends on whatrsquos best for a firm at a given time It either

needs to fit the firm ndash or the firm needs to change to fit the goal

Beech says that acquisition has been excellent for Knights because itrsquos a fast and effective form of expansion ndash the acquisition of Darbys more than doubled its revenue But MampA poses a significant challenge to finding firms with the right cultural fit

ldquoFirms need to establish a single culture in order to implement growth ndash everyone needs to be working towards the same goalrdquo He added that when a firm completes a merger or acquisition that firm has to be integrated from day one which is much more difficult if it has a significantly different culture Knights is planning to continue recruiting and complete more acquisitions in the next year to maintain the growth curve

Of course the big problem with acquisition is money Robins at Keystone says his firm lies at the opposite end of this

INFORMATION IS EMPOWERING

Lemington Spa-based firm Wright Hassall has a specific goal of breaking into the top 100 and as part of its growth strategy expanded into areas of the UK where its expertise is highly sought after ndash using customer relationship management in the background to underpin the firmrsquos activities in specific areas Martyn Wells IT director at the firm says ldquoWersquove zoomed in on specific industry sectors that we know are performing well in the Midlands sectors where we have a superb reputationrdquo Expanding geographically as Wells outlines needs data to get right Thorntons for example identified various lsquomicro-marketsrsquo in Scotland close to its base of operations ldquoWe acquired a firm in St Andrews because itrsquos like a micro-economy (or micro-market) that doesnrsquot seem to be affected by price drops in the residential market elsewhererdquo says Thorntons joint managing partner Scott Milne Knights has another take on the geographic targeting idea ndash it intends to stay out of the large cities (London Manchester Leeds for example) and expand into areas where there is little competition As David Beech CEO at Knights explains ldquoLast September we acquired a small team in Chester of about 11 lawyers and now thatrsquos expanded to just over 70 ndash and the main reason wersquove been able to do that is because there isnrsquot a lot of competition thererdquoUltimately this all comes down to research finding out what to invest in or where to expand and perhaps most importantly finding out what clients want

LEGAL PRACTICE MANAGEMENT35

SEPTEMBER 2016FEATURES

spectrum to the way Knights has grown emphasising organic growth finding innovative means to attract talent using technology to drive efficiency and branching out into new areas of law or new markets to achieve significant growth

Square One Law also espouses the organic route ndash believing that firms with growth in mind should focus on ensuring their external brand reflects the businessrsquos internal culture and behaviours of its team creating lsquosynergyrsquo between the business and its clients

Gilthorpe says ldquoMergers ndash and there is no such thing as a true merger ndash and acquisitions can be a distraction as you look to create a new culture and separate the wheat from the chaff and this can soak up a lot of energy that would otherwise be put to use in driving the progression of the business and the focus on client servicerdquo

The best option for some firms may be a

calculated combination of MampA and organic Thorntons for example having made several acquisitions is now focusing on organic growth moving away from geographical expansion and towards developing locations and its brand

Watson at Simpson Millar sums the mixed approach up thus ldquoItrsquos a mixture Acquisition is still very much a part of the mix but in parallel to that itrsquos important to demonstrate that yoursquore developing ongoing work rather than being driven solely by acquisitionrdquo

There are clearly many different ways to achieve healthy and assertive growth though there are no easy answers as to which way is right for your firm But it is clear that growth doesnrsquot have to happen in the ways many have previously achieved it ndash innovation and lateral thinking are the means of achieving significant growth (which might one day propel you into the top 100 you never know) LPM

LEGAL PRACTICE MANAGEMENT36

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

INDUSTRY VIEWS

36LEGAL PRACTICE MANAGEMENT

Legal is becoming an ever more digital industry giving firms the chance to become more efficient flexible agile and collaborative

INDUSTRY VIEWS INDEX

ONLINEOFFICES

36

SPONSORED EDITORIAL

INDUSTRY VIEWS

37 INTERVIEW

Paperless processLinetimersquos Tony Klejnow explains the benefits of using matter management software for law firms and their clients

39 INTERVIEW

Virtual expansionNigel Redwood Nasstarrsquos CEO talks about the advantages of having a managed flexible IT infrastructure

LEGAL PRACTICE MANAGEMENT37

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT37

Competition and price pressures and an increasingly digital client base are all significant drivers for law firms to become paperless

businesses Tony Klejnow Linetimersquos managing director says firms could achieve competitive advantage by introducing paperless solutions across their businesses ndash but a particular lsquoeasy winrsquo area is matter management

ldquoFee earners are required to keep detailed records of their cases but the amount of time and money they waste physically printing filing looking for collaborating on and updating files is alarmingrdquo says Klejnow Law firms have traditionally been reluctant to adopt paperless

workflow solutions he adds because workflow doesnrsquot apply to 99 of fee earnersrsquo work ldquoBut if they adopted paperless solutions in their back office processes they could reduce costs without affecting client service boost productivity and promote collaboration ndash making them more efficient flexible and cost effective and making them more competitive in an ever-changing legal marketrdquo

MATTER MATTERSDocument and matter management tools ndash like those in Linetimersquos legal software product Liberate ndash electronically store and organise all case documentation in an online database Klejnow says that there are two immediate benefits of paperless matter

PAPERLESS PROCESS

Tony Klejnow managing director at Linetime talks to LPM about the benefits of the paperless office ndash starting with filing and back office processes

INDUSTRY VIEWS

Linetime is a specialist provider of Microsoft-based practice and case management solutions Clients include mid-tier law firms and in-house legal departmentswwwlinetimecouk

ABOUT THE SPONSOR

SPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT38

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT 38

management The first is reducing paper and storage costs

ldquoIf case documentation is electronically stored once a case is finished you no longer have a five-inches-thick file that has to be stored for six years ndash which has to reside somewhere and costs firms time space and moneyrdquo The second is eliminating filing time ndash for example instead of printing and filing emails and attachments fee earners drag and drop emails directly from Outlook into the database ldquoand attachments are automatically stripped from emails and appropriately filedrdquo says Klejnow

And Klejnow says paperless filing systems donrsquot just facilitate efficiency this way ndash they also improve general process efficiency by facilitating collaboration between fee earners Solicitors can use document and matter management to view and work on matters at the same time a difficult if not impossible prospect when working with paper files Klejnow says ldquoWithout document management legal professionals work in silos but with it they immediately share datardquo He adds that Liberate has an additional collaboration tool to help further improve collaborative efficiency in firms ldquoIf I choose to lsquocollaboratersquo a document with you on Liberate Outlook will prompt you to review that document by simply acknowledging the notificationrdquo

In this respect moving to become a paperless business provides greater flexibility for fee earners who can collaborate with colleagues working remotely or in different offices Klejnow says ldquoPaper files can only reside in one location but electronic files can be accessed from any office and when working from home or with clientsrdquo On the other side of the coin having digital files maintains a greater level of productivity in a law firm office ldquoIf your colleague is absent from the office you can easily find documents that you might have otherwise wasted a significant portion of your day looking forrdquo he adds

Improved external collaboration is also a benefit that firms can reap from paperless matter management With an electronic system you can go into a case history bundle documents into one PDF file and quickly submit that to the third party improving collaboration between fee earners and clients who want to do everything online This has the added benefit of improving accuracy and facilitating greater efficiency by involving clients in the process ldquoGood matter management software should also let you push e-forms to clients to be filled in and that information is automatically transferred straight to the online database ndash which saves fee earners

time and is a more accurate because the information doesnrsquot have to be constantly re-enteredrdquo says Klejnow

This extra level of collaboration within legal businesses that hasnrsquot been possible until now has long been needed because it improves efficiency and productivity which makes the business more profitable and competitive Klejnow adds that what firms save by adopting matter management they should reinvest in becoming fully paperless digital businesses

ldquoCase management solutions can improve efficiency to an even greater extent and keep firms competitive in the age of the alternative business structuresrdquo

VISIBLE COMPLIANCEIn response to firms reluctant to adopt paperless technologies like document and matter management for fear of losing delicate information to cybercriminals Klejnow says those systems provide an additional level of security ldquoTaking data and attachments out of Outlook and storing them on a database is much more secure than leaving them on your hard drive If you leave

your laptop on a train for example all your important data is safely stored on a server and not instantly accessible by opportunist criminalsrdquo

Document and matter management also offers a greater level of security in fee earner and client communications ldquoIf I want you to check that the data we have for you is accurate Liberate will

direct you to a page holding your data and at the same time it will push out an SMS text with a pin code to your phone Unless you input the code you canrsquot get to the web page ndash which means if one of your solicitors accidentally sends an email to the wrong person or itrsquos intercepted it doesnrsquot matter The data stays safe ndash this level of security is crucial in this age of cybercrimerdquo

These security features clearly have significant benefits for compliance which is important in a market increasingly dictated by regulation including the relatively new General Data Protection Regulation says Klejnow

ldquoCompliance officers need to be seen by regulators to have monitored and reviewed everything thatrsquos happened in their firm which is considerably easier with a paperless system Liberate has lsquoversion controlrsquo which allows compliance officers to keep tabs on every change made to a document as well as a compliance module which lets them view whatrsquos happening on a case (to ensure that money laundering checks have been carried out and so on) and records the fact that yoursquove reviewed thisrdquo LPM

Without document management legal professionals work in silos but with it they immediately share data

INTERVIEW

LEGAL PRACTICE MANAGEMENT39

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LPM readers may already know the Nasstar Group ndash but by a different name Nasstar was launched by regular LPM-contributor e-knownet to consolidate four discrete hosted

managed IT businesses (including e-knownet) after a period of significant acquisition Nigel Redwood chief executive officer at Nasstar says merger and acquisition and consolidating brands is challenging but having a flexible hosted IT infrastructure makes the process significantly easier

ldquoManaged IT services are enormously beneficial for firms that are expanding or consolidating particularly after MampA in terms of time and productivity cost savings and flexibilityrdquo He adds that by just having managed desktops firms can attain competitive advantage by reducing overheads and becoming more flexible and agile

Nasstar has experience helping SME firms with their IT systems after MampA and knows what problems to look out for creating unity among staff used to using different systems and processes the cost and time it takes to expand an IT infrastructure and the geographic distance between new offices

Redwood says that MampA can be an excellent way for legal businesses to expand into new sectors but that consolidating new departments using different IT systems and processes is challenging

ldquoOur acquisitions for example introduced new sector focuses for us in the SME legal market ndash wersquove consolidated these into a wider service base under Nasstar and facilitated unity among staff using virtual IT solutions

rdquoVirtual IT solutions help facilitate unity across the business by providing a level of consistency in an IT infrastructure Everyone immediately uses the same applications on the same versions from wherever theyrsquore working creating unity faster collaboration across teams and effective information sharingrdquo Hosted IT infrastructures are also continually updated giving staff instant access to new updates applications and technologies as they become available

The next significant challenge firms face after MampA is expanding their IT infrastructure to accommodate an influx of new staff ndash but Redwood says virtual IT solutions let firms expand their IT infrastructure at the flick of a switch

ldquoWith virtual IT firms arenrsquot held back by the size of their servers or the amount of computer power theyrsquove got ndash they simply call their IT provider and ask for an upgrade when previously theyrsquod have been

subject to lengthy and costly IT upgradesrdquo Virtual IT solutions are also easy to budget for

Redwood says ldquoYoursquore not going to be surprised by an increased fixed asset expenditure ndash services like those offered by Nasstar are an operational cost and fixed per user per month through a scalable cost modelrdquo

Geographic distance inhibiting collaboration between merged offices is also a key consideration for firms after MampA but virtual IT solutions solve this problem Redwood says a virtual IT infrastructure can minimise travel through the use of hosted virtual meeting rooms and video technology Staff can use this technology from virtually anywhere which is why it also lends itself well to remote flexible or mobile working set-ups

VIRTUAL WORKPLACERemote working is becoming an increasingly present feature of the legal landscape because of its cost saving and recruitment and retention advantages ndash the majority of firms at the LPM conference 2016 were moving towards a flexible remote or mobile working set-up or already had one

Redwood says virtual IT solutions better enable staff who work remotely ldquoHosted managed desktop solutions for example let staff work with the same applications from any device in the world safely and securelyrdquo

But remote working isnrsquot only about enabling the current workforce itrsquos about attracting future talent Redwood says that millennials donrsquot necessarily want to work as their predecessors did ndash they expect greater flexibility in the workplace which at one level can be achieved by remote working facilitated by a managed desktop

ldquoAnd itrsquos not only about attracting millennialsrdquo he says ldquoSME firms with flexible working set-ups are becoming more attractive to experienced legal talent who may be frustrated by the rigidity of their firmrdquo As a firm expands its workforce in this manner firms with virtual IT solutions reap the lsquodoublersquo cost saving benefits of not having to expand their premises or IT infrastructure accordingly

Some firms are resistant to remote working based on hosted IT services believing they arenrsquot secure ndash but Redwood says that argument ldquocan be put to bedrdquo

ldquoFor an in-house IT team to have the level of security that an organisation like ours can deliver is near impossible financially as well as in terms of the

VIRTUALSANITYNigel Redwood CEO at Nasstar talks to LPM about how managed IT can help SME firms achieve competitive advantage by making them more agile and flexible

LEGAL PRACTICE MANAGEMENT40

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

INTERVIEW

level of systems and technologies they deployrdquo Cybercrime is of course a scary and constantly evolving threat but Redwood points out that virtual IT systems have dedicated teams monitoring these threats evolving cyber defences and changing systems accordingly

ldquoThis capability not only makes [firms] a lot more secure but gives peace of mind in terms of compliancerdquo

ONLINE ADVANTAGE Redwood says virtual IT infrastructures donrsquot just pertain to lsquobig lawrsquo but to SME firms as well ndash perhaps more so

ldquoVirtual IT systems are a way for SME firms to stay competitive against their larger

counterparts and ABSs ndash it gives them a greater ability to expand it lets them adopt more flexible and agile models and is easy to budget forrdquo Firms can also expect virtual IT solutions to enable better alignment of IT resources to business needs enhanced usability with anywhere anytime access and in-built business continuity

But the greatest advantage virtual IT offers SME firms over big law is agility Redwood says ldquoBig IT departments in firms can be slow to react cumbersome and held back by the limitations of hardware infrastructure and security issues ndash all of that is removed with a solution like ours and the customer has access to fast-moving agile ITrdquo LPM

ABOUT THE SPONSOR

Nasstar is a provider of managed IT services and tailor-made cloud hosted solutions ndash delivering innovative secure and agile IT to help clients accomplish their business objectiveswwwnasstarcom

Page 33: LPM September 2016

LEGAL PRACTICE MANAGEMENT35

SEPTEMBER 2016FEATURES

spectrum to the way Knights has grown emphasising organic growth finding innovative means to attract talent using technology to drive efficiency and branching out into new areas of law or new markets to achieve significant growth

Square One Law also espouses the organic route ndash believing that firms with growth in mind should focus on ensuring their external brand reflects the businessrsquos internal culture and behaviours of its team creating lsquosynergyrsquo between the business and its clients

Gilthorpe says ldquoMergers ndash and there is no such thing as a true merger ndash and acquisitions can be a distraction as you look to create a new culture and separate the wheat from the chaff and this can soak up a lot of energy that would otherwise be put to use in driving the progression of the business and the focus on client servicerdquo

The best option for some firms may be a

calculated combination of MampA and organic Thorntons for example having made several acquisitions is now focusing on organic growth moving away from geographical expansion and towards developing locations and its brand

Watson at Simpson Millar sums the mixed approach up thus ldquoItrsquos a mixture Acquisition is still very much a part of the mix but in parallel to that itrsquos important to demonstrate that yoursquore developing ongoing work rather than being driven solely by acquisitionrdquo

There are clearly many different ways to achieve healthy and assertive growth though there are no easy answers as to which way is right for your firm But it is clear that growth doesnrsquot have to happen in the ways many have previously achieved it ndash innovation and lateral thinking are the means of achieving significant growth (which might one day propel you into the top 100 you never know) LPM

LEGAL PRACTICE MANAGEMENT36

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

INDUSTRY VIEWS

36LEGAL PRACTICE MANAGEMENT

Legal is becoming an ever more digital industry giving firms the chance to become more efficient flexible agile and collaborative

INDUSTRY VIEWS INDEX

ONLINEOFFICES

36

SPONSORED EDITORIAL

INDUSTRY VIEWS

37 INTERVIEW

Paperless processLinetimersquos Tony Klejnow explains the benefits of using matter management software for law firms and their clients

39 INTERVIEW

Virtual expansionNigel Redwood Nasstarrsquos CEO talks about the advantages of having a managed flexible IT infrastructure

LEGAL PRACTICE MANAGEMENT37

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT37

Competition and price pressures and an increasingly digital client base are all significant drivers for law firms to become paperless

businesses Tony Klejnow Linetimersquos managing director says firms could achieve competitive advantage by introducing paperless solutions across their businesses ndash but a particular lsquoeasy winrsquo area is matter management

ldquoFee earners are required to keep detailed records of their cases but the amount of time and money they waste physically printing filing looking for collaborating on and updating files is alarmingrdquo says Klejnow Law firms have traditionally been reluctant to adopt paperless

workflow solutions he adds because workflow doesnrsquot apply to 99 of fee earnersrsquo work ldquoBut if they adopted paperless solutions in their back office processes they could reduce costs without affecting client service boost productivity and promote collaboration ndash making them more efficient flexible and cost effective and making them more competitive in an ever-changing legal marketrdquo

MATTER MATTERSDocument and matter management tools ndash like those in Linetimersquos legal software product Liberate ndash electronically store and organise all case documentation in an online database Klejnow says that there are two immediate benefits of paperless matter

PAPERLESS PROCESS

Tony Klejnow managing director at Linetime talks to LPM about the benefits of the paperless office ndash starting with filing and back office processes

INDUSTRY VIEWS

Linetime is a specialist provider of Microsoft-based practice and case management solutions Clients include mid-tier law firms and in-house legal departmentswwwlinetimecouk

ABOUT THE SPONSOR

SPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT38

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT 38

management The first is reducing paper and storage costs

ldquoIf case documentation is electronically stored once a case is finished you no longer have a five-inches-thick file that has to be stored for six years ndash which has to reside somewhere and costs firms time space and moneyrdquo The second is eliminating filing time ndash for example instead of printing and filing emails and attachments fee earners drag and drop emails directly from Outlook into the database ldquoand attachments are automatically stripped from emails and appropriately filedrdquo says Klejnow

And Klejnow says paperless filing systems donrsquot just facilitate efficiency this way ndash they also improve general process efficiency by facilitating collaboration between fee earners Solicitors can use document and matter management to view and work on matters at the same time a difficult if not impossible prospect when working with paper files Klejnow says ldquoWithout document management legal professionals work in silos but with it they immediately share datardquo He adds that Liberate has an additional collaboration tool to help further improve collaborative efficiency in firms ldquoIf I choose to lsquocollaboratersquo a document with you on Liberate Outlook will prompt you to review that document by simply acknowledging the notificationrdquo

In this respect moving to become a paperless business provides greater flexibility for fee earners who can collaborate with colleagues working remotely or in different offices Klejnow says ldquoPaper files can only reside in one location but electronic files can be accessed from any office and when working from home or with clientsrdquo On the other side of the coin having digital files maintains a greater level of productivity in a law firm office ldquoIf your colleague is absent from the office you can easily find documents that you might have otherwise wasted a significant portion of your day looking forrdquo he adds

Improved external collaboration is also a benefit that firms can reap from paperless matter management With an electronic system you can go into a case history bundle documents into one PDF file and quickly submit that to the third party improving collaboration between fee earners and clients who want to do everything online This has the added benefit of improving accuracy and facilitating greater efficiency by involving clients in the process ldquoGood matter management software should also let you push e-forms to clients to be filled in and that information is automatically transferred straight to the online database ndash which saves fee earners

time and is a more accurate because the information doesnrsquot have to be constantly re-enteredrdquo says Klejnow

This extra level of collaboration within legal businesses that hasnrsquot been possible until now has long been needed because it improves efficiency and productivity which makes the business more profitable and competitive Klejnow adds that what firms save by adopting matter management they should reinvest in becoming fully paperless digital businesses

ldquoCase management solutions can improve efficiency to an even greater extent and keep firms competitive in the age of the alternative business structuresrdquo

VISIBLE COMPLIANCEIn response to firms reluctant to adopt paperless technologies like document and matter management for fear of losing delicate information to cybercriminals Klejnow says those systems provide an additional level of security ldquoTaking data and attachments out of Outlook and storing them on a database is much more secure than leaving them on your hard drive If you leave

your laptop on a train for example all your important data is safely stored on a server and not instantly accessible by opportunist criminalsrdquo

Document and matter management also offers a greater level of security in fee earner and client communications ldquoIf I want you to check that the data we have for you is accurate Liberate will

direct you to a page holding your data and at the same time it will push out an SMS text with a pin code to your phone Unless you input the code you canrsquot get to the web page ndash which means if one of your solicitors accidentally sends an email to the wrong person or itrsquos intercepted it doesnrsquot matter The data stays safe ndash this level of security is crucial in this age of cybercrimerdquo

These security features clearly have significant benefits for compliance which is important in a market increasingly dictated by regulation including the relatively new General Data Protection Regulation says Klejnow

ldquoCompliance officers need to be seen by regulators to have monitored and reviewed everything thatrsquos happened in their firm which is considerably easier with a paperless system Liberate has lsquoversion controlrsquo which allows compliance officers to keep tabs on every change made to a document as well as a compliance module which lets them view whatrsquos happening on a case (to ensure that money laundering checks have been carried out and so on) and records the fact that yoursquove reviewed thisrdquo LPM

Without document management legal professionals work in silos but with it they immediately share data

INTERVIEW

LEGAL PRACTICE MANAGEMENT39

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LPM readers may already know the Nasstar Group ndash but by a different name Nasstar was launched by regular LPM-contributor e-knownet to consolidate four discrete hosted

managed IT businesses (including e-knownet) after a period of significant acquisition Nigel Redwood chief executive officer at Nasstar says merger and acquisition and consolidating brands is challenging but having a flexible hosted IT infrastructure makes the process significantly easier

ldquoManaged IT services are enormously beneficial for firms that are expanding or consolidating particularly after MampA in terms of time and productivity cost savings and flexibilityrdquo He adds that by just having managed desktops firms can attain competitive advantage by reducing overheads and becoming more flexible and agile

Nasstar has experience helping SME firms with their IT systems after MampA and knows what problems to look out for creating unity among staff used to using different systems and processes the cost and time it takes to expand an IT infrastructure and the geographic distance between new offices

Redwood says that MampA can be an excellent way for legal businesses to expand into new sectors but that consolidating new departments using different IT systems and processes is challenging

ldquoOur acquisitions for example introduced new sector focuses for us in the SME legal market ndash wersquove consolidated these into a wider service base under Nasstar and facilitated unity among staff using virtual IT solutions

rdquoVirtual IT solutions help facilitate unity across the business by providing a level of consistency in an IT infrastructure Everyone immediately uses the same applications on the same versions from wherever theyrsquore working creating unity faster collaboration across teams and effective information sharingrdquo Hosted IT infrastructures are also continually updated giving staff instant access to new updates applications and technologies as they become available

The next significant challenge firms face after MampA is expanding their IT infrastructure to accommodate an influx of new staff ndash but Redwood says virtual IT solutions let firms expand their IT infrastructure at the flick of a switch

ldquoWith virtual IT firms arenrsquot held back by the size of their servers or the amount of computer power theyrsquove got ndash they simply call their IT provider and ask for an upgrade when previously theyrsquod have been

subject to lengthy and costly IT upgradesrdquo Virtual IT solutions are also easy to budget for

Redwood says ldquoYoursquore not going to be surprised by an increased fixed asset expenditure ndash services like those offered by Nasstar are an operational cost and fixed per user per month through a scalable cost modelrdquo

Geographic distance inhibiting collaboration between merged offices is also a key consideration for firms after MampA but virtual IT solutions solve this problem Redwood says a virtual IT infrastructure can minimise travel through the use of hosted virtual meeting rooms and video technology Staff can use this technology from virtually anywhere which is why it also lends itself well to remote flexible or mobile working set-ups

VIRTUAL WORKPLACERemote working is becoming an increasingly present feature of the legal landscape because of its cost saving and recruitment and retention advantages ndash the majority of firms at the LPM conference 2016 were moving towards a flexible remote or mobile working set-up or already had one

Redwood says virtual IT solutions better enable staff who work remotely ldquoHosted managed desktop solutions for example let staff work with the same applications from any device in the world safely and securelyrdquo

But remote working isnrsquot only about enabling the current workforce itrsquos about attracting future talent Redwood says that millennials donrsquot necessarily want to work as their predecessors did ndash they expect greater flexibility in the workplace which at one level can be achieved by remote working facilitated by a managed desktop

ldquoAnd itrsquos not only about attracting millennialsrdquo he says ldquoSME firms with flexible working set-ups are becoming more attractive to experienced legal talent who may be frustrated by the rigidity of their firmrdquo As a firm expands its workforce in this manner firms with virtual IT solutions reap the lsquodoublersquo cost saving benefits of not having to expand their premises or IT infrastructure accordingly

Some firms are resistant to remote working based on hosted IT services believing they arenrsquot secure ndash but Redwood says that argument ldquocan be put to bedrdquo

ldquoFor an in-house IT team to have the level of security that an organisation like ours can deliver is near impossible financially as well as in terms of the

VIRTUALSANITYNigel Redwood CEO at Nasstar talks to LPM about how managed IT can help SME firms achieve competitive advantage by making them more agile and flexible

LEGAL PRACTICE MANAGEMENT40

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

INTERVIEW

level of systems and technologies they deployrdquo Cybercrime is of course a scary and constantly evolving threat but Redwood points out that virtual IT systems have dedicated teams monitoring these threats evolving cyber defences and changing systems accordingly

ldquoThis capability not only makes [firms] a lot more secure but gives peace of mind in terms of compliancerdquo

ONLINE ADVANTAGE Redwood says virtual IT infrastructures donrsquot just pertain to lsquobig lawrsquo but to SME firms as well ndash perhaps more so

ldquoVirtual IT systems are a way for SME firms to stay competitive against their larger

counterparts and ABSs ndash it gives them a greater ability to expand it lets them adopt more flexible and agile models and is easy to budget forrdquo Firms can also expect virtual IT solutions to enable better alignment of IT resources to business needs enhanced usability with anywhere anytime access and in-built business continuity

But the greatest advantage virtual IT offers SME firms over big law is agility Redwood says ldquoBig IT departments in firms can be slow to react cumbersome and held back by the limitations of hardware infrastructure and security issues ndash all of that is removed with a solution like ours and the customer has access to fast-moving agile ITrdquo LPM

ABOUT THE SPONSOR

Nasstar is a provider of managed IT services and tailor-made cloud hosted solutions ndash delivering innovative secure and agile IT to help clients accomplish their business objectiveswwwnasstarcom

Page 34: LPM September 2016

LEGAL PRACTICE MANAGEMENT36

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

INDUSTRY VIEWS

36LEGAL PRACTICE MANAGEMENT

Legal is becoming an ever more digital industry giving firms the chance to become more efficient flexible agile and collaborative

INDUSTRY VIEWS INDEX

ONLINEOFFICES

36

SPONSORED EDITORIAL

INDUSTRY VIEWS

37 INTERVIEW

Paperless processLinetimersquos Tony Klejnow explains the benefits of using matter management software for law firms and their clients

39 INTERVIEW

Virtual expansionNigel Redwood Nasstarrsquos CEO talks about the advantages of having a managed flexible IT infrastructure

LEGAL PRACTICE MANAGEMENT37

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT37

Competition and price pressures and an increasingly digital client base are all significant drivers for law firms to become paperless

businesses Tony Klejnow Linetimersquos managing director says firms could achieve competitive advantage by introducing paperless solutions across their businesses ndash but a particular lsquoeasy winrsquo area is matter management

ldquoFee earners are required to keep detailed records of their cases but the amount of time and money they waste physically printing filing looking for collaborating on and updating files is alarmingrdquo says Klejnow Law firms have traditionally been reluctant to adopt paperless

workflow solutions he adds because workflow doesnrsquot apply to 99 of fee earnersrsquo work ldquoBut if they adopted paperless solutions in their back office processes they could reduce costs without affecting client service boost productivity and promote collaboration ndash making them more efficient flexible and cost effective and making them more competitive in an ever-changing legal marketrdquo

MATTER MATTERSDocument and matter management tools ndash like those in Linetimersquos legal software product Liberate ndash electronically store and organise all case documentation in an online database Klejnow says that there are two immediate benefits of paperless matter

PAPERLESS PROCESS

Tony Klejnow managing director at Linetime talks to LPM about the benefits of the paperless office ndash starting with filing and back office processes

INDUSTRY VIEWS

Linetime is a specialist provider of Microsoft-based practice and case management solutions Clients include mid-tier law firms and in-house legal departmentswwwlinetimecouk

ABOUT THE SPONSOR

SPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT38

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT 38

management The first is reducing paper and storage costs

ldquoIf case documentation is electronically stored once a case is finished you no longer have a five-inches-thick file that has to be stored for six years ndash which has to reside somewhere and costs firms time space and moneyrdquo The second is eliminating filing time ndash for example instead of printing and filing emails and attachments fee earners drag and drop emails directly from Outlook into the database ldquoand attachments are automatically stripped from emails and appropriately filedrdquo says Klejnow

And Klejnow says paperless filing systems donrsquot just facilitate efficiency this way ndash they also improve general process efficiency by facilitating collaboration between fee earners Solicitors can use document and matter management to view and work on matters at the same time a difficult if not impossible prospect when working with paper files Klejnow says ldquoWithout document management legal professionals work in silos but with it they immediately share datardquo He adds that Liberate has an additional collaboration tool to help further improve collaborative efficiency in firms ldquoIf I choose to lsquocollaboratersquo a document with you on Liberate Outlook will prompt you to review that document by simply acknowledging the notificationrdquo

In this respect moving to become a paperless business provides greater flexibility for fee earners who can collaborate with colleagues working remotely or in different offices Klejnow says ldquoPaper files can only reside in one location but electronic files can be accessed from any office and when working from home or with clientsrdquo On the other side of the coin having digital files maintains a greater level of productivity in a law firm office ldquoIf your colleague is absent from the office you can easily find documents that you might have otherwise wasted a significant portion of your day looking forrdquo he adds

Improved external collaboration is also a benefit that firms can reap from paperless matter management With an electronic system you can go into a case history bundle documents into one PDF file and quickly submit that to the third party improving collaboration between fee earners and clients who want to do everything online This has the added benefit of improving accuracy and facilitating greater efficiency by involving clients in the process ldquoGood matter management software should also let you push e-forms to clients to be filled in and that information is automatically transferred straight to the online database ndash which saves fee earners

time and is a more accurate because the information doesnrsquot have to be constantly re-enteredrdquo says Klejnow

This extra level of collaboration within legal businesses that hasnrsquot been possible until now has long been needed because it improves efficiency and productivity which makes the business more profitable and competitive Klejnow adds that what firms save by adopting matter management they should reinvest in becoming fully paperless digital businesses

ldquoCase management solutions can improve efficiency to an even greater extent and keep firms competitive in the age of the alternative business structuresrdquo

VISIBLE COMPLIANCEIn response to firms reluctant to adopt paperless technologies like document and matter management for fear of losing delicate information to cybercriminals Klejnow says those systems provide an additional level of security ldquoTaking data and attachments out of Outlook and storing them on a database is much more secure than leaving them on your hard drive If you leave

your laptop on a train for example all your important data is safely stored on a server and not instantly accessible by opportunist criminalsrdquo

Document and matter management also offers a greater level of security in fee earner and client communications ldquoIf I want you to check that the data we have for you is accurate Liberate will

direct you to a page holding your data and at the same time it will push out an SMS text with a pin code to your phone Unless you input the code you canrsquot get to the web page ndash which means if one of your solicitors accidentally sends an email to the wrong person or itrsquos intercepted it doesnrsquot matter The data stays safe ndash this level of security is crucial in this age of cybercrimerdquo

These security features clearly have significant benefits for compliance which is important in a market increasingly dictated by regulation including the relatively new General Data Protection Regulation says Klejnow

ldquoCompliance officers need to be seen by regulators to have monitored and reviewed everything thatrsquos happened in their firm which is considerably easier with a paperless system Liberate has lsquoversion controlrsquo which allows compliance officers to keep tabs on every change made to a document as well as a compliance module which lets them view whatrsquos happening on a case (to ensure that money laundering checks have been carried out and so on) and records the fact that yoursquove reviewed thisrdquo LPM

Without document management legal professionals work in silos but with it they immediately share data

INTERVIEW

LEGAL PRACTICE MANAGEMENT39

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LPM readers may already know the Nasstar Group ndash but by a different name Nasstar was launched by regular LPM-contributor e-knownet to consolidate four discrete hosted

managed IT businesses (including e-knownet) after a period of significant acquisition Nigel Redwood chief executive officer at Nasstar says merger and acquisition and consolidating brands is challenging but having a flexible hosted IT infrastructure makes the process significantly easier

ldquoManaged IT services are enormously beneficial for firms that are expanding or consolidating particularly after MampA in terms of time and productivity cost savings and flexibilityrdquo He adds that by just having managed desktops firms can attain competitive advantage by reducing overheads and becoming more flexible and agile

Nasstar has experience helping SME firms with their IT systems after MampA and knows what problems to look out for creating unity among staff used to using different systems and processes the cost and time it takes to expand an IT infrastructure and the geographic distance between new offices

Redwood says that MampA can be an excellent way for legal businesses to expand into new sectors but that consolidating new departments using different IT systems and processes is challenging

ldquoOur acquisitions for example introduced new sector focuses for us in the SME legal market ndash wersquove consolidated these into a wider service base under Nasstar and facilitated unity among staff using virtual IT solutions

rdquoVirtual IT solutions help facilitate unity across the business by providing a level of consistency in an IT infrastructure Everyone immediately uses the same applications on the same versions from wherever theyrsquore working creating unity faster collaboration across teams and effective information sharingrdquo Hosted IT infrastructures are also continually updated giving staff instant access to new updates applications and technologies as they become available

The next significant challenge firms face after MampA is expanding their IT infrastructure to accommodate an influx of new staff ndash but Redwood says virtual IT solutions let firms expand their IT infrastructure at the flick of a switch

ldquoWith virtual IT firms arenrsquot held back by the size of their servers or the amount of computer power theyrsquove got ndash they simply call their IT provider and ask for an upgrade when previously theyrsquod have been

subject to lengthy and costly IT upgradesrdquo Virtual IT solutions are also easy to budget for

Redwood says ldquoYoursquore not going to be surprised by an increased fixed asset expenditure ndash services like those offered by Nasstar are an operational cost and fixed per user per month through a scalable cost modelrdquo

Geographic distance inhibiting collaboration between merged offices is also a key consideration for firms after MampA but virtual IT solutions solve this problem Redwood says a virtual IT infrastructure can minimise travel through the use of hosted virtual meeting rooms and video technology Staff can use this technology from virtually anywhere which is why it also lends itself well to remote flexible or mobile working set-ups

VIRTUAL WORKPLACERemote working is becoming an increasingly present feature of the legal landscape because of its cost saving and recruitment and retention advantages ndash the majority of firms at the LPM conference 2016 were moving towards a flexible remote or mobile working set-up or already had one

Redwood says virtual IT solutions better enable staff who work remotely ldquoHosted managed desktop solutions for example let staff work with the same applications from any device in the world safely and securelyrdquo

But remote working isnrsquot only about enabling the current workforce itrsquos about attracting future talent Redwood says that millennials donrsquot necessarily want to work as their predecessors did ndash they expect greater flexibility in the workplace which at one level can be achieved by remote working facilitated by a managed desktop

ldquoAnd itrsquos not only about attracting millennialsrdquo he says ldquoSME firms with flexible working set-ups are becoming more attractive to experienced legal talent who may be frustrated by the rigidity of their firmrdquo As a firm expands its workforce in this manner firms with virtual IT solutions reap the lsquodoublersquo cost saving benefits of not having to expand their premises or IT infrastructure accordingly

Some firms are resistant to remote working based on hosted IT services believing they arenrsquot secure ndash but Redwood says that argument ldquocan be put to bedrdquo

ldquoFor an in-house IT team to have the level of security that an organisation like ours can deliver is near impossible financially as well as in terms of the

VIRTUALSANITYNigel Redwood CEO at Nasstar talks to LPM about how managed IT can help SME firms achieve competitive advantage by making them more agile and flexible

LEGAL PRACTICE MANAGEMENT40

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

INTERVIEW

level of systems and technologies they deployrdquo Cybercrime is of course a scary and constantly evolving threat but Redwood points out that virtual IT systems have dedicated teams monitoring these threats evolving cyber defences and changing systems accordingly

ldquoThis capability not only makes [firms] a lot more secure but gives peace of mind in terms of compliancerdquo

ONLINE ADVANTAGE Redwood says virtual IT infrastructures donrsquot just pertain to lsquobig lawrsquo but to SME firms as well ndash perhaps more so

ldquoVirtual IT systems are a way for SME firms to stay competitive against their larger

counterparts and ABSs ndash it gives them a greater ability to expand it lets them adopt more flexible and agile models and is easy to budget forrdquo Firms can also expect virtual IT solutions to enable better alignment of IT resources to business needs enhanced usability with anywhere anytime access and in-built business continuity

But the greatest advantage virtual IT offers SME firms over big law is agility Redwood says ldquoBig IT departments in firms can be slow to react cumbersome and held back by the limitations of hardware infrastructure and security issues ndash all of that is removed with a solution like ours and the customer has access to fast-moving agile ITrdquo LPM

ABOUT THE SPONSOR

Nasstar is a provider of managed IT services and tailor-made cloud hosted solutions ndash delivering innovative secure and agile IT to help clients accomplish their business objectiveswwwnasstarcom

Page 35: LPM September 2016

LEGAL PRACTICE MANAGEMENT37

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT37

Competition and price pressures and an increasingly digital client base are all significant drivers for law firms to become paperless

businesses Tony Klejnow Linetimersquos managing director says firms could achieve competitive advantage by introducing paperless solutions across their businesses ndash but a particular lsquoeasy winrsquo area is matter management

ldquoFee earners are required to keep detailed records of their cases but the amount of time and money they waste physically printing filing looking for collaborating on and updating files is alarmingrdquo says Klejnow Law firms have traditionally been reluctant to adopt paperless

workflow solutions he adds because workflow doesnrsquot apply to 99 of fee earnersrsquo work ldquoBut if they adopted paperless solutions in their back office processes they could reduce costs without affecting client service boost productivity and promote collaboration ndash making them more efficient flexible and cost effective and making them more competitive in an ever-changing legal marketrdquo

MATTER MATTERSDocument and matter management tools ndash like those in Linetimersquos legal software product Liberate ndash electronically store and organise all case documentation in an online database Klejnow says that there are two immediate benefits of paperless matter

PAPERLESS PROCESS

Tony Klejnow managing director at Linetime talks to LPM about the benefits of the paperless office ndash starting with filing and back office processes

INDUSTRY VIEWS

Linetime is a specialist provider of Microsoft-based practice and case management solutions Clients include mid-tier law firms and in-house legal departmentswwwlinetimecouk

ABOUT THE SPONSOR

SPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT38

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT 38

management The first is reducing paper and storage costs

ldquoIf case documentation is electronically stored once a case is finished you no longer have a five-inches-thick file that has to be stored for six years ndash which has to reside somewhere and costs firms time space and moneyrdquo The second is eliminating filing time ndash for example instead of printing and filing emails and attachments fee earners drag and drop emails directly from Outlook into the database ldquoand attachments are automatically stripped from emails and appropriately filedrdquo says Klejnow

And Klejnow says paperless filing systems donrsquot just facilitate efficiency this way ndash they also improve general process efficiency by facilitating collaboration between fee earners Solicitors can use document and matter management to view and work on matters at the same time a difficult if not impossible prospect when working with paper files Klejnow says ldquoWithout document management legal professionals work in silos but with it they immediately share datardquo He adds that Liberate has an additional collaboration tool to help further improve collaborative efficiency in firms ldquoIf I choose to lsquocollaboratersquo a document with you on Liberate Outlook will prompt you to review that document by simply acknowledging the notificationrdquo

In this respect moving to become a paperless business provides greater flexibility for fee earners who can collaborate with colleagues working remotely or in different offices Klejnow says ldquoPaper files can only reside in one location but electronic files can be accessed from any office and when working from home or with clientsrdquo On the other side of the coin having digital files maintains a greater level of productivity in a law firm office ldquoIf your colleague is absent from the office you can easily find documents that you might have otherwise wasted a significant portion of your day looking forrdquo he adds

Improved external collaboration is also a benefit that firms can reap from paperless matter management With an electronic system you can go into a case history bundle documents into one PDF file and quickly submit that to the third party improving collaboration between fee earners and clients who want to do everything online This has the added benefit of improving accuracy and facilitating greater efficiency by involving clients in the process ldquoGood matter management software should also let you push e-forms to clients to be filled in and that information is automatically transferred straight to the online database ndash which saves fee earners

time and is a more accurate because the information doesnrsquot have to be constantly re-enteredrdquo says Klejnow

This extra level of collaboration within legal businesses that hasnrsquot been possible until now has long been needed because it improves efficiency and productivity which makes the business more profitable and competitive Klejnow adds that what firms save by adopting matter management they should reinvest in becoming fully paperless digital businesses

ldquoCase management solutions can improve efficiency to an even greater extent and keep firms competitive in the age of the alternative business structuresrdquo

VISIBLE COMPLIANCEIn response to firms reluctant to adopt paperless technologies like document and matter management for fear of losing delicate information to cybercriminals Klejnow says those systems provide an additional level of security ldquoTaking data and attachments out of Outlook and storing them on a database is much more secure than leaving them on your hard drive If you leave

your laptop on a train for example all your important data is safely stored on a server and not instantly accessible by opportunist criminalsrdquo

Document and matter management also offers a greater level of security in fee earner and client communications ldquoIf I want you to check that the data we have for you is accurate Liberate will

direct you to a page holding your data and at the same time it will push out an SMS text with a pin code to your phone Unless you input the code you canrsquot get to the web page ndash which means if one of your solicitors accidentally sends an email to the wrong person or itrsquos intercepted it doesnrsquot matter The data stays safe ndash this level of security is crucial in this age of cybercrimerdquo

These security features clearly have significant benefits for compliance which is important in a market increasingly dictated by regulation including the relatively new General Data Protection Regulation says Klejnow

ldquoCompliance officers need to be seen by regulators to have monitored and reviewed everything thatrsquos happened in their firm which is considerably easier with a paperless system Liberate has lsquoversion controlrsquo which allows compliance officers to keep tabs on every change made to a document as well as a compliance module which lets them view whatrsquos happening on a case (to ensure that money laundering checks have been carried out and so on) and records the fact that yoursquove reviewed thisrdquo LPM

Without document management legal professionals work in silos but with it they immediately share data

INTERVIEW

LEGAL PRACTICE MANAGEMENT39

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LPM readers may already know the Nasstar Group ndash but by a different name Nasstar was launched by regular LPM-contributor e-knownet to consolidate four discrete hosted

managed IT businesses (including e-knownet) after a period of significant acquisition Nigel Redwood chief executive officer at Nasstar says merger and acquisition and consolidating brands is challenging but having a flexible hosted IT infrastructure makes the process significantly easier

ldquoManaged IT services are enormously beneficial for firms that are expanding or consolidating particularly after MampA in terms of time and productivity cost savings and flexibilityrdquo He adds that by just having managed desktops firms can attain competitive advantage by reducing overheads and becoming more flexible and agile

Nasstar has experience helping SME firms with their IT systems after MampA and knows what problems to look out for creating unity among staff used to using different systems and processes the cost and time it takes to expand an IT infrastructure and the geographic distance between new offices

Redwood says that MampA can be an excellent way for legal businesses to expand into new sectors but that consolidating new departments using different IT systems and processes is challenging

ldquoOur acquisitions for example introduced new sector focuses for us in the SME legal market ndash wersquove consolidated these into a wider service base under Nasstar and facilitated unity among staff using virtual IT solutions

rdquoVirtual IT solutions help facilitate unity across the business by providing a level of consistency in an IT infrastructure Everyone immediately uses the same applications on the same versions from wherever theyrsquore working creating unity faster collaboration across teams and effective information sharingrdquo Hosted IT infrastructures are also continually updated giving staff instant access to new updates applications and technologies as they become available

The next significant challenge firms face after MampA is expanding their IT infrastructure to accommodate an influx of new staff ndash but Redwood says virtual IT solutions let firms expand their IT infrastructure at the flick of a switch

ldquoWith virtual IT firms arenrsquot held back by the size of their servers or the amount of computer power theyrsquove got ndash they simply call their IT provider and ask for an upgrade when previously theyrsquod have been

subject to lengthy and costly IT upgradesrdquo Virtual IT solutions are also easy to budget for

Redwood says ldquoYoursquore not going to be surprised by an increased fixed asset expenditure ndash services like those offered by Nasstar are an operational cost and fixed per user per month through a scalable cost modelrdquo

Geographic distance inhibiting collaboration between merged offices is also a key consideration for firms after MampA but virtual IT solutions solve this problem Redwood says a virtual IT infrastructure can minimise travel through the use of hosted virtual meeting rooms and video technology Staff can use this technology from virtually anywhere which is why it also lends itself well to remote flexible or mobile working set-ups

VIRTUAL WORKPLACERemote working is becoming an increasingly present feature of the legal landscape because of its cost saving and recruitment and retention advantages ndash the majority of firms at the LPM conference 2016 were moving towards a flexible remote or mobile working set-up or already had one

Redwood says virtual IT solutions better enable staff who work remotely ldquoHosted managed desktop solutions for example let staff work with the same applications from any device in the world safely and securelyrdquo

But remote working isnrsquot only about enabling the current workforce itrsquos about attracting future talent Redwood says that millennials donrsquot necessarily want to work as their predecessors did ndash they expect greater flexibility in the workplace which at one level can be achieved by remote working facilitated by a managed desktop

ldquoAnd itrsquos not only about attracting millennialsrdquo he says ldquoSME firms with flexible working set-ups are becoming more attractive to experienced legal talent who may be frustrated by the rigidity of their firmrdquo As a firm expands its workforce in this manner firms with virtual IT solutions reap the lsquodoublersquo cost saving benefits of not having to expand their premises or IT infrastructure accordingly

Some firms are resistant to remote working based on hosted IT services believing they arenrsquot secure ndash but Redwood says that argument ldquocan be put to bedrdquo

ldquoFor an in-house IT team to have the level of security that an organisation like ours can deliver is near impossible financially as well as in terms of the

VIRTUALSANITYNigel Redwood CEO at Nasstar talks to LPM about how managed IT can help SME firms achieve competitive advantage by making them more agile and flexible

LEGAL PRACTICE MANAGEMENT40

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

INTERVIEW

level of systems and technologies they deployrdquo Cybercrime is of course a scary and constantly evolving threat but Redwood points out that virtual IT systems have dedicated teams monitoring these threats evolving cyber defences and changing systems accordingly

ldquoThis capability not only makes [firms] a lot more secure but gives peace of mind in terms of compliancerdquo

ONLINE ADVANTAGE Redwood says virtual IT infrastructures donrsquot just pertain to lsquobig lawrsquo but to SME firms as well ndash perhaps more so

ldquoVirtual IT systems are a way for SME firms to stay competitive against their larger

counterparts and ABSs ndash it gives them a greater ability to expand it lets them adopt more flexible and agile models and is easy to budget forrdquo Firms can also expect virtual IT solutions to enable better alignment of IT resources to business needs enhanced usability with anywhere anytime access and in-built business continuity

But the greatest advantage virtual IT offers SME firms over big law is agility Redwood says ldquoBig IT departments in firms can be slow to react cumbersome and held back by the limitations of hardware infrastructure and security issues ndash all of that is removed with a solution like ours and the customer has access to fast-moving agile ITrdquo LPM

ABOUT THE SPONSOR

Nasstar is a provider of managed IT services and tailor-made cloud hosted solutions ndash delivering innovative secure and agile IT to help clients accomplish their business objectiveswwwnasstarcom

Page 36: LPM September 2016

LEGAL PRACTICE MANAGEMENT38

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LEGAL PRACTICE MANAGEMENT 38

management The first is reducing paper and storage costs

ldquoIf case documentation is electronically stored once a case is finished you no longer have a five-inches-thick file that has to be stored for six years ndash which has to reside somewhere and costs firms time space and moneyrdquo The second is eliminating filing time ndash for example instead of printing and filing emails and attachments fee earners drag and drop emails directly from Outlook into the database ldquoand attachments are automatically stripped from emails and appropriately filedrdquo says Klejnow

And Klejnow says paperless filing systems donrsquot just facilitate efficiency this way ndash they also improve general process efficiency by facilitating collaboration between fee earners Solicitors can use document and matter management to view and work on matters at the same time a difficult if not impossible prospect when working with paper files Klejnow says ldquoWithout document management legal professionals work in silos but with it they immediately share datardquo He adds that Liberate has an additional collaboration tool to help further improve collaborative efficiency in firms ldquoIf I choose to lsquocollaboratersquo a document with you on Liberate Outlook will prompt you to review that document by simply acknowledging the notificationrdquo

In this respect moving to become a paperless business provides greater flexibility for fee earners who can collaborate with colleagues working remotely or in different offices Klejnow says ldquoPaper files can only reside in one location but electronic files can be accessed from any office and when working from home or with clientsrdquo On the other side of the coin having digital files maintains a greater level of productivity in a law firm office ldquoIf your colleague is absent from the office you can easily find documents that you might have otherwise wasted a significant portion of your day looking forrdquo he adds

Improved external collaboration is also a benefit that firms can reap from paperless matter management With an electronic system you can go into a case history bundle documents into one PDF file and quickly submit that to the third party improving collaboration between fee earners and clients who want to do everything online This has the added benefit of improving accuracy and facilitating greater efficiency by involving clients in the process ldquoGood matter management software should also let you push e-forms to clients to be filled in and that information is automatically transferred straight to the online database ndash which saves fee earners

time and is a more accurate because the information doesnrsquot have to be constantly re-enteredrdquo says Klejnow

This extra level of collaboration within legal businesses that hasnrsquot been possible until now has long been needed because it improves efficiency and productivity which makes the business more profitable and competitive Klejnow adds that what firms save by adopting matter management they should reinvest in becoming fully paperless digital businesses

ldquoCase management solutions can improve efficiency to an even greater extent and keep firms competitive in the age of the alternative business structuresrdquo

VISIBLE COMPLIANCEIn response to firms reluctant to adopt paperless technologies like document and matter management for fear of losing delicate information to cybercriminals Klejnow says those systems provide an additional level of security ldquoTaking data and attachments out of Outlook and storing them on a database is much more secure than leaving them on your hard drive If you leave

your laptop on a train for example all your important data is safely stored on a server and not instantly accessible by opportunist criminalsrdquo

Document and matter management also offers a greater level of security in fee earner and client communications ldquoIf I want you to check that the data we have for you is accurate Liberate will

direct you to a page holding your data and at the same time it will push out an SMS text with a pin code to your phone Unless you input the code you canrsquot get to the web page ndash which means if one of your solicitors accidentally sends an email to the wrong person or itrsquos intercepted it doesnrsquot matter The data stays safe ndash this level of security is crucial in this age of cybercrimerdquo

These security features clearly have significant benefits for compliance which is important in a market increasingly dictated by regulation including the relatively new General Data Protection Regulation says Klejnow

ldquoCompliance officers need to be seen by regulators to have monitored and reviewed everything thatrsquos happened in their firm which is considerably easier with a paperless system Liberate has lsquoversion controlrsquo which allows compliance officers to keep tabs on every change made to a document as well as a compliance module which lets them view whatrsquos happening on a case (to ensure that money laundering checks have been carried out and so on) and records the fact that yoursquove reviewed thisrdquo LPM

Without document management legal professionals work in silos but with it they immediately share data

INTERVIEW

LEGAL PRACTICE MANAGEMENT39

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LPM readers may already know the Nasstar Group ndash but by a different name Nasstar was launched by regular LPM-contributor e-knownet to consolidate four discrete hosted

managed IT businesses (including e-knownet) after a period of significant acquisition Nigel Redwood chief executive officer at Nasstar says merger and acquisition and consolidating brands is challenging but having a flexible hosted IT infrastructure makes the process significantly easier

ldquoManaged IT services are enormously beneficial for firms that are expanding or consolidating particularly after MampA in terms of time and productivity cost savings and flexibilityrdquo He adds that by just having managed desktops firms can attain competitive advantage by reducing overheads and becoming more flexible and agile

Nasstar has experience helping SME firms with their IT systems after MampA and knows what problems to look out for creating unity among staff used to using different systems and processes the cost and time it takes to expand an IT infrastructure and the geographic distance between new offices

Redwood says that MampA can be an excellent way for legal businesses to expand into new sectors but that consolidating new departments using different IT systems and processes is challenging

ldquoOur acquisitions for example introduced new sector focuses for us in the SME legal market ndash wersquove consolidated these into a wider service base under Nasstar and facilitated unity among staff using virtual IT solutions

rdquoVirtual IT solutions help facilitate unity across the business by providing a level of consistency in an IT infrastructure Everyone immediately uses the same applications on the same versions from wherever theyrsquore working creating unity faster collaboration across teams and effective information sharingrdquo Hosted IT infrastructures are also continually updated giving staff instant access to new updates applications and technologies as they become available

The next significant challenge firms face after MampA is expanding their IT infrastructure to accommodate an influx of new staff ndash but Redwood says virtual IT solutions let firms expand their IT infrastructure at the flick of a switch

ldquoWith virtual IT firms arenrsquot held back by the size of their servers or the amount of computer power theyrsquove got ndash they simply call their IT provider and ask for an upgrade when previously theyrsquod have been

subject to lengthy and costly IT upgradesrdquo Virtual IT solutions are also easy to budget for

Redwood says ldquoYoursquore not going to be surprised by an increased fixed asset expenditure ndash services like those offered by Nasstar are an operational cost and fixed per user per month through a scalable cost modelrdquo

Geographic distance inhibiting collaboration between merged offices is also a key consideration for firms after MampA but virtual IT solutions solve this problem Redwood says a virtual IT infrastructure can minimise travel through the use of hosted virtual meeting rooms and video technology Staff can use this technology from virtually anywhere which is why it also lends itself well to remote flexible or mobile working set-ups

VIRTUAL WORKPLACERemote working is becoming an increasingly present feature of the legal landscape because of its cost saving and recruitment and retention advantages ndash the majority of firms at the LPM conference 2016 were moving towards a flexible remote or mobile working set-up or already had one

Redwood says virtual IT solutions better enable staff who work remotely ldquoHosted managed desktop solutions for example let staff work with the same applications from any device in the world safely and securelyrdquo

But remote working isnrsquot only about enabling the current workforce itrsquos about attracting future talent Redwood says that millennials donrsquot necessarily want to work as their predecessors did ndash they expect greater flexibility in the workplace which at one level can be achieved by remote working facilitated by a managed desktop

ldquoAnd itrsquos not only about attracting millennialsrdquo he says ldquoSME firms with flexible working set-ups are becoming more attractive to experienced legal talent who may be frustrated by the rigidity of their firmrdquo As a firm expands its workforce in this manner firms with virtual IT solutions reap the lsquodoublersquo cost saving benefits of not having to expand their premises or IT infrastructure accordingly

Some firms are resistant to remote working based on hosted IT services believing they arenrsquot secure ndash but Redwood says that argument ldquocan be put to bedrdquo

ldquoFor an in-house IT team to have the level of security that an organisation like ours can deliver is near impossible financially as well as in terms of the

VIRTUALSANITYNigel Redwood CEO at Nasstar talks to LPM about how managed IT can help SME firms achieve competitive advantage by making them more agile and flexible

LEGAL PRACTICE MANAGEMENT40

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

INTERVIEW

level of systems and technologies they deployrdquo Cybercrime is of course a scary and constantly evolving threat but Redwood points out that virtual IT systems have dedicated teams monitoring these threats evolving cyber defences and changing systems accordingly

ldquoThis capability not only makes [firms] a lot more secure but gives peace of mind in terms of compliancerdquo

ONLINE ADVANTAGE Redwood says virtual IT infrastructures donrsquot just pertain to lsquobig lawrsquo but to SME firms as well ndash perhaps more so

ldquoVirtual IT systems are a way for SME firms to stay competitive against their larger

counterparts and ABSs ndash it gives them a greater ability to expand it lets them adopt more flexible and agile models and is easy to budget forrdquo Firms can also expect virtual IT solutions to enable better alignment of IT resources to business needs enhanced usability with anywhere anytime access and in-built business continuity

But the greatest advantage virtual IT offers SME firms over big law is agility Redwood says ldquoBig IT departments in firms can be slow to react cumbersome and held back by the limitations of hardware infrastructure and security issues ndash all of that is removed with a solution like ours and the customer has access to fast-moving agile ITrdquo LPM

ABOUT THE SPONSOR

Nasstar is a provider of managed IT services and tailor-made cloud hosted solutions ndash delivering innovative secure and agile IT to help clients accomplish their business objectiveswwwnasstarcom

Page 37: LPM September 2016

LEGAL PRACTICE MANAGEMENT39

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

LPM readers may already know the Nasstar Group ndash but by a different name Nasstar was launched by regular LPM-contributor e-knownet to consolidate four discrete hosted

managed IT businesses (including e-knownet) after a period of significant acquisition Nigel Redwood chief executive officer at Nasstar says merger and acquisition and consolidating brands is challenging but having a flexible hosted IT infrastructure makes the process significantly easier

ldquoManaged IT services are enormously beneficial for firms that are expanding or consolidating particularly after MampA in terms of time and productivity cost savings and flexibilityrdquo He adds that by just having managed desktops firms can attain competitive advantage by reducing overheads and becoming more flexible and agile

Nasstar has experience helping SME firms with their IT systems after MampA and knows what problems to look out for creating unity among staff used to using different systems and processes the cost and time it takes to expand an IT infrastructure and the geographic distance between new offices

Redwood says that MampA can be an excellent way for legal businesses to expand into new sectors but that consolidating new departments using different IT systems and processes is challenging

ldquoOur acquisitions for example introduced new sector focuses for us in the SME legal market ndash wersquove consolidated these into a wider service base under Nasstar and facilitated unity among staff using virtual IT solutions

rdquoVirtual IT solutions help facilitate unity across the business by providing a level of consistency in an IT infrastructure Everyone immediately uses the same applications on the same versions from wherever theyrsquore working creating unity faster collaboration across teams and effective information sharingrdquo Hosted IT infrastructures are also continually updated giving staff instant access to new updates applications and technologies as they become available

The next significant challenge firms face after MampA is expanding their IT infrastructure to accommodate an influx of new staff ndash but Redwood says virtual IT solutions let firms expand their IT infrastructure at the flick of a switch

ldquoWith virtual IT firms arenrsquot held back by the size of their servers or the amount of computer power theyrsquove got ndash they simply call their IT provider and ask for an upgrade when previously theyrsquod have been

subject to lengthy and costly IT upgradesrdquo Virtual IT solutions are also easy to budget for

Redwood says ldquoYoursquore not going to be surprised by an increased fixed asset expenditure ndash services like those offered by Nasstar are an operational cost and fixed per user per month through a scalable cost modelrdquo

Geographic distance inhibiting collaboration between merged offices is also a key consideration for firms after MampA but virtual IT solutions solve this problem Redwood says a virtual IT infrastructure can minimise travel through the use of hosted virtual meeting rooms and video technology Staff can use this technology from virtually anywhere which is why it also lends itself well to remote flexible or mobile working set-ups

VIRTUAL WORKPLACERemote working is becoming an increasingly present feature of the legal landscape because of its cost saving and recruitment and retention advantages ndash the majority of firms at the LPM conference 2016 were moving towards a flexible remote or mobile working set-up or already had one

Redwood says virtual IT solutions better enable staff who work remotely ldquoHosted managed desktop solutions for example let staff work with the same applications from any device in the world safely and securelyrdquo

But remote working isnrsquot only about enabling the current workforce itrsquos about attracting future talent Redwood says that millennials donrsquot necessarily want to work as their predecessors did ndash they expect greater flexibility in the workplace which at one level can be achieved by remote working facilitated by a managed desktop

ldquoAnd itrsquos not only about attracting millennialsrdquo he says ldquoSME firms with flexible working set-ups are becoming more attractive to experienced legal talent who may be frustrated by the rigidity of their firmrdquo As a firm expands its workforce in this manner firms with virtual IT solutions reap the lsquodoublersquo cost saving benefits of not having to expand their premises or IT infrastructure accordingly

Some firms are resistant to remote working based on hosted IT services believing they arenrsquot secure ndash but Redwood says that argument ldquocan be put to bedrdquo

ldquoFor an in-house IT team to have the level of security that an organisation like ours can deliver is near impossible financially as well as in terms of the

VIRTUALSANITYNigel Redwood CEO at Nasstar talks to LPM about how managed IT can help SME firms achieve competitive advantage by making them more agile and flexible

LEGAL PRACTICE MANAGEMENT40

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

INTERVIEW

level of systems and technologies they deployrdquo Cybercrime is of course a scary and constantly evolving threat but Redwood points out that virtual IT systems have dedicated teams monitoring these threats evolving cyber defences and changing systems accordingly

ldquoThis capability not only makes [firms] a lot more secure but gives peace of mind in terms of compliancerdquo

ONLINE ADVANTAGE Redwood says virtual IT infrastructures donrsquot just pertain to lsquobig lawrsquo but to SME firms as well ndash perhaps more so

ldquoVirtual IT systems are a way for SME firms to stay competitive against their larger

counterparts and ABSs ndash it gives them a greater ability to expand it lets them adopt more flexible and agile models and is easy to budget forrdquo Firms can also expect virtual IT solutions to enable better alignment of IT resources to business needs enhanced usability with anywhere anytime access and in-built business continuity

But the greatest advantage virtual IT offers SME firms over big law is agility Redwood says ldquoBig IT departments in firms can be slow to react cumbersome and held back by the limitations of hardware infrastructure and security issues ndash all of that is removed with a solution like ours and the customer has access to fast-moving agile ITrdquo LPM

ABOUT THE SPONSOR

Nasstar is a provider of managed IT services and tailor-made cloud hosted solutions ndash delivering innovative secure and agile IT to help clients accomplish their business objectiveswwwnasstarcom

Page 38: LPM September 2016

LEGAL PRACTICE MANAGEMENT40

SEPTEMBER 2016INDUSTRY VIEWSSPONSORED EDITORIAL

INTERVIEW

level of systems and technologies they deployrdquo Cybercrime is of course a scary and constantly evolving threat but Redwood points out that virtual IT systems have dedicated teams monitoring these threats evolving cyber defences and changing systems accordingly

ldquoThis capability not only makes [firms] a lot more secure but gives peace of mind in terms of compliancerdquo

ONLINE ADVANTAGE Redwood says virtual IT infrastructures donrsquot just pertain to lsquobig lawrsquo but to SME firms as well ndash perhaps more so

ldquoVirtual IT systems are a way for SME firms to stay competitive against their larger

counterparts and ABSs ndash it gives them a greater ability to expand it lets them adopt more flexible and agile models and is easy to budget forrdquo Firms can also expect virtual IT solutions to enable better alignment of IT resources to business needs enhanced usability with anywhere anytime access and in-built business continuity

But the greatest advantage virtual IT offers SME firms over big law is agility Redwood says ldquoBig IT departments in firms can be slow to react cumbersome and held back by the limitations of hardware infrastructure and security issues ndash all of that is removed with a solution like ours and the customer has access to fast-moving agile ITrdquo LPM

ABOUT THE SPONSOR

Nasstar is a provider of managed IT services and tailor-made cloud hosted solutions ndash delivering innovative secure and agile IT to help clients accomplish their business objectiveswwwnasstarcom