Martin Langan
Friday, 5 February 2010

I work from home most of the time, but when I call my lawyer clients they are almost invariably in the office. All that changed during the recent cold snap, when heavy snowfalls made travelling very hazardous. Suddenly, lawyers up and down the country were logging onto their networks from home studies, dining tables and garden sheds.

A common theme emerged when I talked to these stranded souls. Making allowances for being caught out by the speed at which winter descended, most of my colleagues enthused about how productive they were compared with their usual routines. No distractions, travel time replaced by remunerative activity, no office politics, all contributed to improvements in quality and quantity of output, greater energy and a general feeling of well being.

No need to talk about how technology makes this possible. We know that web-accessed servers and applications, email, conference calls, videoconferencing and so on are available. These thoughts are more to do with why we take advantage of these facilities only when we have to.

Do we fill roads, trains and buses twice a day, five days a week, because we want to work that way, or just because it’s conventional? The 20th century invented the office as we know it and that environment once made a lot of sense. It created and maintained the infrastructure needed to enable people to work together for a common purpose. This rationale is less compelling these days, as we prove when the snow falls.

The weather’s now warmed up again (slightly) and the big commute is back on. Will it take a new Ice Age for that to change for good?

Alastair Moyes
Tuesday, 2 February 2010

The ongoing debate about complaints and dissatisfied clients raises the issue of bad publicity and how to deal with it. Given that there are a number of websites that collect complaints and achieve Google rankings, is there anything a firm can do?

From the point of view of marketing management and websites, the answer is: not much. Trying to get the offending material removed will cost money and often amounts to a pyrrhic victory – if it can be achieved at all.

Taken in a wider context, the internet is only providing a convenient place for people’s grievances to be aired. Those people who are dissatisfied, whether they voice their feelings online or not, will tell others anyway and there’s no way to stop word of mouth. Or is there? Isn’t that what PR is for?

While considering the implications of complaint websites and the wider PR issue of how to deal with bad news affecting a firm, I called a friend who is a public relations specialist in brand protection and media, Rob Shimmin.

Several ideas emerged from our discussion. If your firm is suddenly the focus of high-profile media attention, get professional help immediately. Crisis PR, like legal work, is worth every penny if you get help early.

In a less pressing situation that nevertheless demands a response, think through what your firm actually stands for, the benefits of the services it provides and (where possible) two or three examples of satisfied clients. Work towards having more positive messages about your firm than negative ones.

Also bear in mind that information also needs to be disseminated within the firm when such issues arise. It’s worth providing an internal memo that informs everyone of the position and the firm’s response. That way everyone knows what to say if they’re asked.

If you find your firm listed on a complaints website, it’s only a disaster if that’s the only message out there about your firm.

Masked IT Man
Monday, 25 January 2010

Tube journeys in London are a wonderfully varied experience. One minute you are chatting to a friendly tourist about where Harrods is, the next you are wondering if the enormous person who has parked themselves next to you has bought two tickets, to cater for the fact that they are taking most of your seat space, along with their own. When I am not wrestling with those variables, I like to see what gadgets people are using. Yesterday a shabby-looking chap whisked out a strange device – a laptop keyboard with a tiny monochrome screen. Turns out it was a portable typewriter, and in the time it took to travel about eight stops, he had written a huge chunk of material.

It struck me that sometimes simple really does work best. Not only was the device much quicker to use than a laptop, the absence of a foldout screen made it more rugged and more portable. Perfect if you have an idea for a blog or report and want to type instantly.

Typing, of course, is a large variable in any law firm. Even with the advent of better dictation and transcription technology, as well as automated routines and document systems that have enabled them to produce typed output much more quickly, law firms still employ vast numbers of secretarial staff. I am not sure what percentage of a secretary’s time is taken up with typing, but it must amount to a substantial sum once you multiply it by the number of them in an organisation.

Digital dictation was really spawned by speech recognition. Or to put it another way, speech recognition back in the late 1990s was appalling, so some bright spark decided that using the bits from it to make dictation more streamlined was the answer. Nowadays most law firms use this technology. As the market gets more saturated, the vendors look to other avenues for additional revenue, and – lo and behold – the spectre of speech recognition has made a return. Digital dictation software can now be linked to speech recognition engines. This means that the person dictating can send the output to a speech recognition engine rather than a secretary, thus reducing the time taken to type. The neat bit of these set-ups is that the secretary can then review and correct the output. The corrections get relayed to the speech recognition engine, which means it will be more accurate for the user next time round.

Other than the cost of installation, I can’t think of a downside to this approach. Most secretaries I speak to think they have too much to do, so moving their role slightly from typist to reviewer not only eases the burden, but also allows them to concentrate on more important elements of their work. Some may argue that it is a step down the slippery slope to the removal of secretaries altogether, but I don’t see that. Most, if not all, legal people need administrative support, and the current atmosphere of cost reduction should point firms in the direction of making better use of their support staff. Surely reviewing work is quicker than typing it, as well as being more interesting.

There are of course other benefits. Travelling lawyers can get material transcribed any time of the day or night, and those fee-earners who do prefer to produce their own output get to produce documents faster.

If there are efficiency gains to be made in terms of secretarial staffing, I would expect the natural attrition rates for these posts to allow this to happen seamlessly. A switched on HR department should be able to provide data on this. What’s not to like?

Lisa Pearson
Thursday, 21 January 2010

As a non-lawyer (I refuse to use the terms fee-earner and non fee-earner, or 'fee-burner' as I heard it called recently), I find it frustrating that many lawyers lack commercial awareness, that is the ability and desire to really talk to clients, find out what they want, what they will do with it, how much they expect to pay and then deliver it that way.

Having worked in many other industries before venturing into law, it was a shock to the system to find that many of my new colleagues had never worked in any other firm, let alone in any other type of business, and those questions were rarely even considered.

The problem is this: the world is changing, fast, and if law firms want to keep up they have to change fast, too. This, as I have discovered from conversations with many firms, is a big ask. The English law firm is almost an institution, things have remained the same for decades: clients come to you, their children come to you, their children’s children come to you. It is this way because that’s the way it has always been. So it is understandable to a degree that the 'it’s worked for a hundred years, why change it now?' attitude exists. The problem is that the rest of the world has moved on.

At my firm we thought we’d found the perfect solution. If we want to educate our lawyers as to the importance of marketing (putting the client at the centre of everything we do), to make them more aware of the need to compete in an increasingly competitive market and give them the tools to do so, we have to catch them young and help them start off on the right track before they develop the 'ivory tower' mentality. So we had the bright idea of having each of our trainees do a seat in Business Development (much like the Gazette's Masked IT Man's suggestion to put trainees in IT for a week). Perfect… except that it's not permitted by the Law Society because it's not legal training, so it cannot constitute part of the legal training contract.

So I would like to start a revolution: let’s get it included in the LPC, and let’s equip these youngsters with the knowledge and skills to understand the competitive market they are entering. Let’s train them to put the client at the heart of everything they do, to be effective networkers – after all, people buy from people. You can technically be the best in your field, but if you can’t look someone in the eye when you speak to them, or you hide behind emails and shy away from people, you’ll never gain their trust. And who wants a solicitor they don’t feel they can trust?

The other reason this would be a good move is that lawyers tend to look backwards, not forwards. Many legal relationships are based on transactional matters, where lawyers perform a necessary task and then may not be needed again for months (or even years, in the case of private individuals). This means that lawyers look at clients in terms of the transaction at hand instead of the lifetime value of the client, and developing a strong and lasting relationship, which will ultimately prove to be more profitable.

So let’s start giving tomorrow’s partners the knowledge and skills to be more commercial and to look at the business of servicing clients – not just practising law.

Lisa Pearson is business development manager for Manchester firm George Davies Solicitors

Sue Bramall
Friday, 15 January 2010

With an hour to kill at the dentist on Monday, with my son in the hot seat, I took along a little light reading – the recent YouGov survey results published on behalf of the Legal Services Board. There is comparatively little hard statistical consumer data available for professional services, so I was intrigued about what might be revealed.

The LSB press release and the Gazette headline both focused on the fact that most consumers don’t know what lawyers do. The actual question asked respondents ‘How much knowledge do you have about what lawyers do in general?’ Only 11% of respondents answered that they ‘didn’t know’ or had ‘no knowledge at all’. The remaining 89% had a ‘little knowledge’(58%), a ‘fair amount’ (28%) or a ‘great deal’ (4%). Isn’t a little knowledge enough?

I considered what the orthodontist might be doing to my son’s teeth and thought that I knew very little, and I was happy enough. He had been recommended by a friend who, and from what little I do know of the dental profession, would have trained for many years and been closely supervised before being allowed to practise.

A later question asked ‘...Imagine that you were unsatisfied with the service provided by a lawyer. Would you know how to go about making a complaint...’. Some 66% of respondents replied that they would not know how, and I reflected that this was probably a good thing. I am only familiar with the process for holiday complaints as I have had two bad experiences which have involved several months’ work in obtaining a refund. I would be happier if I had not acquired that knowledge and hope that I will not need to become familiar with the process for complaints regarding dentistry.

Interestingly, the survey did not ask the consumer if they had ever complained about legal advice or why. It did ask about levels of satisfaction and received a very positive response overall with only 10% of respondents saying that they were ‘dissatisfied’ or ‘very dissatisfied’. Backing this up, 67% of respondents were ‘fairly likely’ or ‘very likely’ to recommend the lawyer that they had used to a friend.

Another piece of good news (for the moment) was that 77% of respondents did not shop around and did not want to or need to.

The survey contains a great deal more interesting information, and it will be interesting to hear if there are plans to repeat this and how often in order to establish trends. I can think of a number of other questions that I would like to have included – as may readers of the In Business blog. Suggestions please?

Rupert White
Wednesday, 13 January 2010

Are law firms more like publishing businesses than they think, and what might that mean?

This sounds like an odd question, probably, if you're a lawyer and/or you run a law firm, but bear with me for a few hundred words more than we normally allow on the blogs. I'm conducting this gedankenexperiment because I've always thought that legal and publishing are ‘similar’ in that they can both, in large part, to my mind be described thus: transactional content production businesses based around information gathering and transformation. That means that they may face similar challenges (or ‘problems’ in old money) and may even be able to face up to those challenges having learned from each other’s approaches. I could be wrong, but it’s worth discussing, which our LinkedIn group has been doing.

James Dunning of management consultancy Geotrupes posted a discussion asking whether law firms might experience the same problems faced by media businesses as the internet burned through their revenue models. The responses were fascinating – mainly because, as usual, they showed how disparate the views are on this issue within the profession and its service industry.

‘Confusion over strategy; lack of focus on customer service; antiquated pricing systems, and lack of professional management – that sounds like the old newspaper industry to me. The next year should be very interesting,’ said Peter Blair of Mar-aon Consulting.

John Harman, director of multimedia at The College of Law, said: ‘Law firm discussions about the way forward with technology and internet etc is certainly reminiscent of the music industry circa 1999 – you have to change the framework, not just the picture in the frame. Ironically, social networking for instance is much more attuned to old school legal practice than many give credit to.’ I think that’s perceptive and accurate (the music industry has also faced very similar problems to the newspaper businesses and it is, of course, ‘media’), and it’s why we created the Gazette’s social media channels.

Marianne Barber, knowledge services deputy director at The College of Law, also backed that point: ‘It’s not about the technology but recognising that these tools can mimic face-to-face skills to create the necessary relationships, thus enabling a business to spread far wider than its traditional market [my emphasis]. This applies equally to law, I would have thought, as to any other client-based enterprise.’ I emphasise those words because to me diversification is key to building revenue for media businesses and may well be key to legal’s future too.

Stephen Kuncewicz, an IP, media & entertainment lawyer with Ralli in Manchester, was unequivocal: ‘This issue is one of if not the biggest facing our profession… [and] I can’t fail to see how the answer is anything but an unqualified “yes”. Not only that, but “it’s happening already”.

‘The unavoidable fact remains that the world, our playing field and our clients are changing around us at an exponential rate and we’re struggling to keep pace, let alone catch up. The profession faces a number or fundamental challenges which find a great many parallels in the media industries, with the most obvious being that our business model is out of date and becoming rapidly unfit for purpose.’

Business law specialist Spencer Laymond at Palmers Solicitors in London seems to agree. ‘If you stick your head in the stand, yes your bottom is probably going to get bitten. Those that don’t embrace change are at risk. But if you are complacent at anything, you are not going to survive and that’s no truer for the legal market than a universal principle of life.

‘Those firms that take the initiative and modernise their practice will be fine. I don’t believe there will be as much confusion and crisis as the hype [says], though. A fundamental key to the success of a firm is not the internet, but the client relationship and source of referral work.’

But of course the internet will change forever the choice of mode for the client relationship, and the way referrals function. Now, I’m not saying that the public will suddenly turn in droves to infomediaries like Moneysupermarket or their ilk for lawyers tomorrow. But I do think that the internet will push the creation of more technologies that allow law firms to do more than they have traditionally done, do what they do more cheaply, and diversify their revenue streams, and those firms that don’t do that will lose out.

This is exactly what the media businesses are trying to do. They used to be businesses filled with capable, expensive specialists, with two streams of revenue – advertising and sales. Sales have fallen off a cliff (and have been doing so for years) and advertising revenue, especially in recruitment, has been winging its way online for years.

This isn’t about making people pay for news content – not even Murdoch would say that's the way to make money from publishing, even if he is doing it. Right now, cash is coming from non-content sources. For example, British newspapers are selling white-labelled legal and all kinds of other ‘products’; they’re littered with ‘reader offers’ and suchlike, all passing some money to the business; certain newspapers make millions from online gambling. I’m obviously not saying law firms should do this. But something like this, perhaps, is inevitable.

To be clear, I’m saying that Susskind and many before him speaking to other sectors are likely right about commoditisation because they’re being proved right in media right now - in other words, it wasn't new - and it's down to this: what you always did that made money may not be your (primary) revenue stream of the future; but that doesn’t mean you can’t make money if you can see that you ‘own’ relationships, and use those to create new revenue streams.

So, how will you do that?

Masked IT Man
Friday, 8 January 2010

A minor landmark in the world of technology occurred just before Christmas. Well, actually it’s a legal issue mostly. Microsoft has agreed not to bundle Internet Explorer with its Windows operating system. Not exactly eye-popping news for most, but for some it marks the end of Microsoft using its market monopoly position to influence user choices. Today, Internet Explorer – tomorrow Microsoft Word. Or, maybe not.

The scenario for the consumer is that new PCs will include a browser of the manufacturer’s choice. Or possibly, depending on how PC manufacturers play it, a list of browsers from which the user can choose. That doesn’t stop Microsoft, or anyone else, making friendly suggestions about which browser manufacturers install, or the choices they leave on the machine. But would that in itself breach antitrust regulations? Don’t ask me, I’m only the IT guy, but I reckon it does still leave the door open for further shenanigans.

Ideally, for the other browser manufacturers, a new PC would have a list of browsers and the user would decide at the time of setting up the PC. But then you have the extra time it takes to set up the machine, and the agony of choice, when you were least expecting it. Maybe the PC manufacturers could perfect a soft-touch screen that you can stick pins in to help you choose (you could also stick them in your eyes if it all got too much).

One would assume that this is a little bit of bad news for Microsoft’s lawyers, now twiddling their thumbs and looking elsewhere for work, but no doubt there will be opportunities in the future for rivals to litigate against the Redmond giant. Looking a bit further forward, there looms the possibility of another player taking up Microsoft’s monopoly mantle, and maybe as a result straying into the same legal territory. Google has released its own operating system, which is to run on netbooks – the tiny devices that look like shrunken laptops. This is designed to compete against the Microsoft Windows variant that netbooks mostly use at present (there are a few Linux variations out there as well). As Google has already released its suite of (browser-based) office applications, it looks like it is encroaching on Microsoft’s turf inch by inch.

For me, the best bit of this is that the only internet browser that will run on Google’s operating system is its own product (Google Chrome). Isn’t that the sort of Microsoft behaviour everyone has been complaining about for the past few years? Personally, I find it quite funny. Not only is Google attempting to steal Microsoft’s market, it also appear to be stealing its marketing techniques.

The reaction of the alternative browser companies has been, rather predictably, that more choice will lead to better browsers being released. I’m not that convinced. More choice means buyers having to work out which browser is best, which in turn may lead to browser companies loading them with trinkets to generate more downloads.

If you extend Google’s current form, how long before you are buying your Google netbook device with instant access to all its free browser-based software products, using its in situ browser? Nothing to stop it doing this with PCs and laptops as well.

Doesn’t sound too bad, until we all end up buying them and wind up in Google’s pocket. I never much liked being in Microsoft’s pocket, so I’m not sure I want to be in any one else’s. Bah humbug. I’m off to write my own browser software.

Alastair Moyes
Wednesday, 6 January 2010

This year will see a significant change in the supply of legal services to domestic and SME business. I’ll make a prediction here that I’ll review this time in 2011. There will emerge two types of solicitors firms by the end of the year: those that have fully adopted IT systems for service delivery and those that have not.

This is not a new idea – the precursors have been around for some years. What I’m saying is that 2010 will be the year that solicitors see the implementation of this approach in a way that changes how clients access legal services. There’s going to be a lot of time, effort and money put into a promotional surge in an attempt to gain a return on the investment from adopting this approach. So the profession will see the change first.

But there may be a problem on the demand side of the market equation (that old balance of supply and demand). Is the domestic and SME market ready to embrace new supply, really new ways of delivering legal services? The potential market for legal services is often pegged at approximately £10bn, but this market may be confused or reluctant to use or trust a new approach to accessing legal services.

I’m now thinking specifically of a new offering I hear is in the offing that is a major departure from the consumer’s general perception of solicitors, that being: office-based and charging by the hour. We know this view can and is changing further – I suggest 2010 will see that shift in perception accelerate.

If the consumers do adopt this new approach, then what of those firms that have not adopted the IT delivery systems? I would suggest they will have a tough fight to retain their clients.

What to do? Not surprisingly I would suggest that marketing management can provide the answers. Whichever side of the IT divide you find your firm on, you must develop a clear set of benefits that clients understand and can easily access. Whether you use IT and web delivery, or just telephone, email and the post is not so important. These are all tools for capturing clients’ needs. What does matter is that the clients you choose to serve know how easy it is to contact you and get a solution to their problem.

While this year the profession may be troubled by another IT debate, it will be the focus on servicing clients’ needs that will be the mark of success in 2010. Here’s to an exciting new decade.

Martin Langan
Friday, 18 December 2009

Are you offering your clients a bill payment method that is in ‘terminal decline’? That is how the board of the UK Payments Council this week described cheque transactions. No, I’d never heard of the UK Payments Council either, but apparently they can dictate how we pay for stuff and they have decreed that cheques should be no more after 2018.

The first cheque was written 350 years ago and, even though there might be some firms still around that were using the then state-of-the-art cheque technology back in the 17th century, that’s no excuse for any of us still to be offering this paper and post process as virtually the only way for clients to pay our bills. I’ll wager a wad of counterfoils, though, that there is still a great deal of this going on.

Not only must this seem archaic to clients who in their dealings with the rest of the world never have to think of digging out a chequebook, but it’s pretty inconvenient too. It’s far easier to pay online, either through the client’s own bank account or via the firm’s website (which weren’t around in the 1600s either).

Stepping away from online payments, many firms make even payment by credit card unattractive by insisting on levying an additional charge to cover the credit company’s commission. I don’t say that this doesn’t happen in any other commercial enterprise, but mostly folks are used to paying by card without any extras on top and frankly it looks a bit mean to be charged for the privilege of doing so.

Even out of self interest firms should be making it as easy as possible for clients to pay their bills, so that any loss made on credit company commission payments is offset by less bank borrowing to pay salaries and other overheads while waiting for costs to be paid.

In 1990, 10.9 million cheques were processed a day. Last year the number had dropped to 3.8 million and, if current trends continue, the figure will be 1.5 million by 2018. Don’t be the last to give it up, and don’t wait until you have to – go on, make it easy for your clients, and for you.

Alastair Moyes
Wednesday, 16 December 2009

Here is an easy measure of how well your firm might face up to the increasing competition in the legal services market: did your firm send out personalised Christmas cards this year?

If you did, was it as difficult to sort out as it has been in previous years? Or did you settle for a few hand-written cards from the solicitors who could spare the time to do it? Or did you just not bother?

For the firms that have, well done – it’s an opportunity taken to remind your past satisfied clients that you are available to help them. But for many firms it’s a struggle. Questions abound, like: where is the list we used last year? Does it need updating? How many partners and staff need to check it before it’s sent out? Which client databases to use? Do we use the ‘Christmas Card check-box’ list in the practice management system? How long will it take to check it for rather important notes like ‘Mr. Smith (deceased)’, or ‘Ms Smith (she was Jones)’ or ‘Smith – do not act for these people’?

These are real examples of (false) name fields in live client databases I have seen. I still find it amazing that solicitors, highly trained people, known for their attention to detail, still cannot be responsible for entering data into a computer system in a regular manner.

If fee-earners and their support staff just take a moment to look at what they’re doing and the value that has to the firm, it would save many people a lot of time. If your firm can quickly and easily send out personalised cards and letters to defined groups of satisfied clients, then you have the magic ability to compete in the new market for legal services. Being able to do this easily is not just good because it helps the marketing people save time.

So, if the thought of sorting out the Christmas card list is dreadful every year, make sure you do something about it in 2010.