Law firms urged to embrace change

LAW firms must change the way they operate by embracing technology and putting their clients at the heart of their thinking,  if they are to meet future challenges.

This was the message from speakers at the Legal Services 2016 Conference last week, organised and hosted by Manchester-based sector recruitment specialists Jepson Holt and Totuus Consulting.

Keynote speaker Chris Moat, chief executive of AIM-listed Fairpoint Group, predicted further technology-led “disruption” and consolidation among smaller firms.

Moat, whose Lancashire company has acquired two law firms, Simpson Millar and more recently Coleman CTTS  in the last two years, said the consumer legal market place bears similarities with high street insurance in 1990s.

“It’s very fragmented, there are something like 10,000 firms, and even at the top end of the market, there are not massive players, so there’s a lot to play for.”

Moat, who earlier in his career ran challenger insurance brand Direct Line said consumers are increasingly looking for transparency of cost and process.

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“Traditionally law firms’ rewards have been driven by time on the clock – and while that’s unquestionably anattractive status quo – it does mean that the market can be disrupted.

“Alternative Business Structures was the enabler for us to enter the market and we have focused on putting a process around a professional service. There’s a ready supply of consolidation opportunities too and I feel technology is there to be grasped.

“Within Fairpoint our move into legal services with the acquisitions has allowed us to expand our service offering and we’ve made massive strides. It’s given us a platform to move forward as legal services now account for nearly half of our revenues.”

Charlie Keeling, a former HR director at Cylde & Co, and 31-year veteran of  professional services, tackled the ‘people agenda’ at the event.

He argued that in the modern workplace – where staff are more willing to move – talent management was crucial for firms.

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“The millennials have totally different aspirations on life – employee loyalty is out of the window so a a ‘one size fits all’ approach to people development just won’t work.”

He added: “Law firms need first of all to put themselves in the clients’ shoes, and ask what is the buyer looking for. With technical excellence a given, what they want is consistency of service, value for money and better and nicer people to work with.”

“There needs to be a greater focus on leadership in firms – particularly around client relationships. Lawyers need to ask ‘What is keeping the CEO of my client awake at night? What can I do to help?”

Richard Hodkinson, chief technology office at Manchester-based national law firm DWF, said new cloud-based software could be a “game changer” for firms, but does come with risks around data storage and security.

He predicted that artificial intelligence software would be used widely throughout the legal sector, for instance by mining data held by clients to spot trends and possible trends.

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Clifton Harrison, recently appointed director of business development at Eversheds, said there is “no magic bullet” to reinvention in the sector.

“There’s a complex set of levers that firms need to pull to achieve growth. At the heart of this they need to understand their clients and the principle issues and pain points they face.”

Phil Jepson, chairman of Jepson Holt said: “We were delighted with the calibre of the event and those who attended it. Our speakers addressed  the key challenges that legal business face and will face and gave some real insight.

“The feedback we have had is really positive and I want to say thank you again to all of those who helped us to make there event happen.”

Additional videos with speakers, presentation videos and presentation slides will be available shortly at http://legalservices2016.com/