At the touch of a button

Ahead of 2020’s Covid lockdowns and restrictions, many smaller firms had already invested in cloud-based case and practice management systems and some had added online client resources, including portals and mobile apps. But it took the pandemic to bring digital transformation and cutting-edge online applications to the high street.

In the (almost) three years since many services were forced online, SME law firms have embraced tech and innovation. But they still have to decide when to invest in technology and automation, and when a more traditional personalised service – a meeting or a phone call – is a key differentiator.

SME firms’ technology choices around procurement and the perennial ‘buy-or-build’ dilemma have also changed. As low-code and no-code applications have become generally available, more tech-savvy firms are moving on from one-size-fits-all systems and building out their own add-ons and solutions. And they are not being dissuaded when this becomes more complex and involves working with developers. Another growing trend is that firms are leveraging robust and increasingly sophisticated features offered by big tech platforms (Microsoft, Google and Amazon Web Services). This signals another move away from traditional legal-specific systems and solutions.

Big tech v bespoke tech

High-street firm Carreg Law, in Llandeilo in rural Wales, is one such example. The firm chose to use commercial/consumer technology for document management rather than legal-specific systems. When director Edward Friend established the firm in 2014, he was a ‘digital nomad’, working remotely from locations all over the world. So he needed robust, cloud-based technology. As the firm grew into a hybrid model, with 10 employees working from the firm’s office and remotely from home, he wanted to ensure that everyone who joined could easily and independently use the firm’s software and systems. So he chose standard systems for data access and storage: ‘I looked for the most robust, simple and approachable technology for data storage and Microsoft and Apple are the best at that. We use Microsoft File Explorer and Mac Finder, and Dropbox for file storage as it works on every device.’

The Clio case management system (CMS) was chosen for the same reasons. ‘It is cloud-based, reliable, and easy to use, and importantly it integrates with all the big tech providers,’ says Friend. ‘Much of legal software ignores the user interface or makes it too complicated to use, whereas Clio, like the big tech providers, have made their software intuitive so that untrained users can easily access it.’

The biggest challenge for Friend and his colleagues is connectivity, particularly when working remotely. Rural Wales does not have a reliable broadband infrastructure. This brings challenges with regard to teamwork and client communication, so most client meetings take place in the office. To that end, Friend is upgrading the hardware, which is vital to ensure that users want to use it, and has introduced 49-inch monitors. He is always looking for add-ons that work with Office 365 and Clio to boost efficiency and speed. Redundancy is an important consideration in building a software stack. In other words, ensuring that there is appropriate back-up if one system fails, and that data can be retrieved in a usable format.

While Friend is interested in AI and automation, he has not found anything that works for his firm’s profile and brand. ‘Current AI products don’t meet the ethos of the firm – to provide personable, high-quality legal advice… They miss out the warmth and approachability that help to differentiate us.’ Friend, who is also a notary public, adds that clients seeking advice on important personal decisions, like wills, estate planning and official documentation, want to consult a qualified adviser, rather than interact with an algorithm. Client conversations often uncover unforeseen questions or complexities.

Ben Darby, managing partner of Darby & Darby Solicitors, which has three offices in Devon, agrees. ‘A good law firm is tech-enabled, and uses humans advisedly,’ he says. However, when it comes to choosing tech for his firm, he has taken the opposite approach, and is building a bespoke CMS.

While his firm is currently using an off-the-shelf CMS, Darby’s rationale for choosing to build a new one from scratch is that legal tech is too lawyer-centric. ‘At least 50% of people who interact with our systems are not lawyers, yet firms are managed by lawyers who have the buying power.’ Another problem with off-the-shelf systems is they often lack easy integration with the plethora of new online tools that have become available since the pandemic. These tools include identity checker apps that use selfies, as well as e-signature, cybersecurity and marketing applications.

Darby highlights the gap between the lawtech community and what is really happening on the high street. ‘In the lawtech world people are building new racing cars, but there is no racetrack to run them on,’ he complains. ‘We talk about robotics, blockchain, crypto and the metaverse, but I spend an hour every morning opening the post, and people still mail in their passports.’ This contrasts with what he sees in other industries. ‘We use mobile banking, we have QuickBooks and Xero for accounting, and AI-powered insurance comparison sites. Yet lawyers still receive high volumes of post – from government departments and public institutions as well as from clients.’

Darby started developing his new CMS in March 2021, through a government-funded knowledge transfer partnership with Exeter University’s computer science department. Here, he is collaborating with a software engineer, a professor of AI and a data scientist. Having outsourced the initial build to a private development agency, he now has an MVP (minimum viable product) ready for testing. There is some back-end automation, using Amazon Web Services’ machine-learning tools, mostly around document management. ‘There are elements of what we do as lawyers that require a personal touch, but there are so many routine tasks that can be streamlined,’ he says.

What differentiates the new system is that clients can choose how they interact with the firm, and their own data. This is the same way that banks manage client preferences – you can choose to receive paper or online statements. ‘At the moment, if someone wants a copy of their will, I have to speak to an archivist. Under the new system, which will be accessible via the desktop or an app, they will be able to access their will or the deeds of their house. It’s about giving clients control over their data and their relationship with their solicitors, in contrast with the current general operating model,’ explains Darby. He stresses that as well as enhancing efficiency and the consumer experience, introducing automation will improve the public perception of lawyers. ‘We don’t help our image as a profession when the vast majority of case management systems are focused inwardly on the law firm.’ In quoting Richard Susskind – ‘the business that kills you won’t look like you’ – Darby encourages other firms to also look outside ‘the legal bubble’ to see the way forward.

Combining big tech and legal tech

Stephenson Law, which was launched in 2017 to provide straightforward, empowering advice to fast-growth businesses, has always been entirely virtual. It has no offices – everyone works remotely and meetings are conducted in co-working spaces.

Founder and CEO Alice Stephenson, who is based in Amsterdam, takes an entrepreneurial approach to technology. The firm combines cloud-based general business systems and applications – Microsoft, Xero, and HubSpot – with Clio’s off-the-shelf CMS and bespoke add-ons. SUPO is a business intelligence tool that pulls data from Clio and Xero; and Roost is a client onboarding and compliance platform that Stephenson Law built from scratch.

‘Where Clio doesn’t meet our requirements, because like most legal tech products, it was developed for more traditional firms, we have introduced add-ons, and built our own products,’ explains Stephenson. Roost is a workflow that takes the firm’s clients, who tend to be tech-savvy entrepreneurs, through the entire onboarding process, including identity verification and AML (anti-money laundering). Stephenson Law is looking to offset the cost of developing its own software by partnering with other law firms for ongoing development.

Stephenson has honed her buy-and-build IT strategy: ‘In the early days, I signed up to a mix of different products, but because they didn’t integrate properly, we had issues around data management. So last year we went back to the drawing board, mapped the data flows between our clients and our team, and built APIs (application programming interfaces) to connect our systems. For example, between Roost and HubSpot so that everything updates automatically when a client onboards. Our AML tool integrates with public registers, so onboarding clients can use selfie-based interfaces like Thirdfort.’

Branding is an important focus for Stephenson Law. Last year the firm rebuilt its website and hosted an in-person event in London. Stephenson has a striking personal brand: she regularly speaks at events and has developed a powerful social media presence. Her latest outreach is Lawscape, a subscription-based membership community for law firm leaders. This facilitates networking, referrals, peer and expert support, and monthly masterclasses on management topics.

On-chain communication

Inspire Legal is another entrepreneurial firm that combines an off-the-shelf CMS with customised add-ons and cutting-edge technology. Inspire Legal was founded in March 2020 – just a week into the first lockdown. It is a hybrid model with an office in Scarborough, North Yorkshire, and its self-employed consultant lawyers mostly work remotely. As founder and CEO Natalie Foster explains, the firm has been working in the cloud since day one and all documents and business processes are digital and online. It has just swapped its CMS for Actionstep, chosen for its easy integration with other tools – notably InfoTrack’s conveyancing software and Verify 365 identity verification – and openness to customisation. ‘The objective is to make life as easy as possible for our consultants and staff and to provide the best possible client experience,’ says Foster. Inspire Legal worked with Actionstep to integrate compliance checks into matter workflows, to ensure that matters cannot be completed without the required compliance checks. ‘This removes a significant amount of supervision from remote work, and allows us to use our CMS to ensure best practice is followed across the firm.’

Foster acknowledges that it is easier for start-ups like Inspire Legal than established firms to work with innovative technology. Starting from scratch has enabled her to build a bespoke tech stack, comprising off-the-shelf systems with customised features.

'I’m not sure that someone would admit on a Zoom call that they were uncomfortable about a decision, or were being unduly influenced'

Nino Cuffaro

An innovative blockchain system for managing conveyancing communication has also been developed. This will effectively open a portal for all parties involved in a conveyancing transaction, including the client, the estate agent, the mortgage lender, and HM Land Registry. Progress notes are automatically transmitted to all parties in an immutable communication chain, thereby removing the need for daily check-ins and conversations. ‘This will allow us to get on with the legal work, the system will automatically share every update as it happens, pulling in information from all our systems,’ explains Foster, adding that this way of managing transactions will be optional rather than mandatory. Like Darby, she is looking to give clients more direct access to their matters and more control over their relationship with their law firm.

Consultant solicitor Nino Cuffaro, who is the small firms representative on the Law Society Council, appreciates the value that technology brings to smaller firms, and is keen to help other firms share experiences and learn to use CMSs as effectively as possible. ‘Many firms have invested in Clio or Quill but have not used most of their features,’ he notes. However, as a specialist in sensitive topics such as probate and lasting power of attorney, like Friend and Darby, he is careful to highlight the importance of recognising when technology may not be appropriate.

While Cuffaro’s YouTube channel (see box) helped break taboos by engaging people with awkward subjects such as making wills and lasting power of attorney, he is concerned about the possibility of tech and automation compromising vulnerable people. Tech that allows remote witnessing and e-signatures saves time and increases efficiency; but it is not suitable for everyone. ‘Sometimes when I get people alone, a different story emerges,’ he says. ‘That is where tech becomes a limitation: I’m not sure that someone would admit on a Zoom call that they were uncomfortable about a decision, or were being unduly influenced, and it is not always possible to see whether anyone else is in the room.’ Probate questionnaires are another example. Sometimes it is easier to guide a client through the process than expect them to manage it online.

Like Friend and Darby, Cuffaro values a hybrid approach that includes in-person meetings. An important part of the high street experience is personalisation, and it is important to retain that, even in a mostly digital world.

 

Joanna Goodman is a freelance journalist