Good ideas for hard times

Thursday 26 July 2012 by Lucy Scott-Moncrieff

Less than two weeks ago and fresh into my presidency the Gazette reported that I would be using LinkedIn as a way for the Law Society to hear about members’ ideas on how to face market challenges in our sector.

Since then, I have been impressed by the ideas that have come in as well as the collaborative attitude of those who have posted those ideas. These are good ideas for hard times, hence the title of this piece and the name of this ongoing initiative.

The ideas are wide-ranging and make good business sense. The idea of this process, is to share these ideas with the profession, and also for the Law Society to take them on board in developing its policies and services.

I have been active on the site, and have contributed information about my firm which I hope may be of some value to others. In my virtual firm, fee-earners keep 70% of the fees they bring in, while the remaining 30% covers office costs, insurance, compliance, complaints, quality assurance and partners' profits. We are able to do this by cutting overheads to the bone.

Others have generously posted ideas that remind us that we need to be businesslike as well as professional. For example, someone has suggested a new approach to complaints handling to ensure lawyers in a legal practice can focus on what they are trained to do - practise law.

What has really stood out from some of the examples is evidence of success. Many of these initiatives have worked for firms. A firm posted on the LinkedIn thread that it had just had its most successful year. How did it do it? It explains that it focused efforts on its specialist market - owner-managed businesses. It returned an annual fees increase of 37%.

Another example was the post telling us that a firm had negotiated a two-year professional indemnity insurance deal from an insurer, which gave it certainty and reduced time spent renewing.

A couple of lawyers have also highlighted the benefits of making the most of marketing and media opportunities. There are some specialist legal PR firms out there who can assist in proactive media relations and marketing and may help many firms to tell the public what it is they do.

The diverse nature of the posts just show that there are ideas and initiatives out there that can make a difference, from looking at ways to reduce energy costs to launching a subscription legal service for landlords and tenants, even inter-firm collaboration or something as simple as avoiding high printer/copier contracts have the potential to make a difference for some firms.

There are many more initiatives out there that we want to here about. There is no deadline to the Good Ideas for Hard Times initiative. It is ongoing and all input is welcome. Some ideas might be developed further by the Law Society, others might be advanced by firms participating in this exercise. However, the overall aim is to make sure that even in difficult times our profession can thrive and continue to develop and embrace new ways of doing business in an increasingly challenging era.

You can get a taste of just some of the good ideas that have emerged so far.

Lucy Scott-Moncrieff, is president of the Law Society

Comments

Embrace the digital

Still surprised how many firms have not seen the true benefit of digital technology against remaining paper-centric. It's not just about digital document management or time recording software where the advantages are obvious, but understanding the customer from their initial google search right through to their final bill. 10 years ago people compared car insurance quotes by calling several businesses and picking the lowest quote. The businesses not playing the price comparison game now (and there's one very famous example) are locked out of the biggest marketplace. Web comparison - either through a comparison site or by browsing a company website is what consumers crave. You get the information without the hard sell, you can browse while doing other things and come to a (fairly) informed decision before you even contact a firm. Even if that person doesn't convert into a client, their contact details remain with the firm for future marketing. If they do, the ability is there to track all their activity from that initial browsing through all their interactions with you, building a clearer understanding of what they want. This makes for a stronger relationship and more opportunities for future business going forward.

Understanding marketing management

The lively LinkedIn thread has generated a lot of discussion and touched on marketing issues. As this summary concludes there are many things firms can do.
From the work Marketlaw does with solicitors firms around the country, understand what marketing is and can do for a firm is an essential part of a successful future. PR is only one part of how a firm can promote the benefits of the services it offers. A clear understanding of who the target client markets are must underpin all promotional effort in PR, advertising, direct mail, digital and social media campaigns.

The President’s own firm demonstrates an alternative approach to the market by reducing costs to service clients’ needs. In a more competitive market using marketing management systems to understand the how to deliver the right services and the promotional messages to your firm’s target market groups will be an essential element in all firms.

As solicitors suggest to their clients and Marketlaw suggests to solicitors, seeking professional advice at the earliest opportunity will bring the best results more quickly and efficiently than trying to sort it out yourself. Marketing is a not difficult but it takes time and experience to get it right and that becomes more complex in a rapidly changing market.

The Law Society can help, as a starter have a look the book Market Legal Services, available from the online books shop. http://www.lawsocietyshop.org.uk/ecom_lawsoc/public/saleproduct.jsf?catalogueCode=9781853287565

Modernising

I am greatly encouraged by the initiative and the idea that the legal profession is actively looking for new ideas. However, I wonder whether it is the lack of new ideas that is the challenge or rather a resistance to change. I work quite widely with some major law firms in government and the private sector. I have watched over the years as the legal profession has moved from paper and DX to email albeit reluctantly in many cases. This transition lagged well behind other industries and professions. It is now unusual to find a law firm who is not using email. What we have noted now though is a failure to recognise that email is insecure and yet significant number of law firms are simply not interested in their exposure and the exposure to their clients in sending confidential information in clear across the internet. The reluctance to change was surprising. The world is moving fast and customer expectation moves ever faster. The customer base gets ever better services from the retail and financial industries and their expectations are high. You are dealing with a relatively tech savvy customer base. They expect the latest technology and ease of use but they also expect their suppliers and service providers to keep up. It is not just the quality of the service now, its also about how that service is delivered. You would not dream of banking online without a secure website, you would not hand your credit card over to a website that was not over an SSL (https:) connection. You would not have a computer without anti-virus! And I am sure there is not a lawyer amongst you that would advise a client to send confidential information across the internet in clear. But this is what the legal industry does every single day in vast numbers. We have tried to address this with a number of firms who simply are not interested in such improvements (doing nothing and adding a disclaimer has been good enough to date, so why change). There are those who have embraced new technology like mkryptor, pki and pgp but most do not see the need to change and modernise. If the legal industry is to deal with hard times it will not be about a change to adoption of a specific product or provision of a specific service. It will need to be about a culture change that embraces change as the norm and modernisation as a continual improvement programme and BAU. To stay in steady state until forced to change and then grab on limpet like until the next change is forced is not the way to go in hard times.

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