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International Edition

The confidentiality hole

Every day law firms treat client communication with unwitting disdain. Confidential or sensitive material is passed around on email, completely unprotected; law firms might as well commit the contents to open postcards for the world to read.The legal profession has been woefully slow to consider, let alone embrace email encryption, although security measures proliferate in IT environs. The position is reckless, not to say potentially negligent.Recent research has revealed an alarmingly apathetic approach to the whole issue of email encryption. Many firms take the view that, unless clients specifically ask them to tackle the issue, they are not going to bother. Indeed, some have admitted they hope that clients do not ask them to encrypt email because they would have no idea how to do it.
6 minute read

International Edition

Relocation, Relocation

There have been a wealth of great opportunities abroad for British lawyers for some time now, but the number of people in the profession willing to broaden their horizons has risen noticeably in recent months. Law firms are faring better than a lot of industries in the recent economic downturn, but the overall state of the economy has given many legal professionals reason to take the first exploratory steps into a career overseas.
7 minute read

International Edition

Money talks

Law firms are reporting that clients are becoming more fee-sensitive, thanks to the economic gloom - winning work at the right price is becoming harder. So how do you handle fee resistance and negotiate the right deal for the client and your firm?The first obstruction to successful fee negotiations is often the mindset of the negotiator. Those who lack confidence in their fees and/or do not see the value in their proposition tend to be less successful than those who do. In a recent workshop, we met a lawyer who said he "struggled to close deals". In the session, it became clear that his lack of confidence coloured his whole approach to client meetings. He really believed clients were fee-resistant and everything they said seemed to reinforce his view; his lack of confidence was palpable. In contrast, one of his colleagues was very successful at fee negotiations. Her confidence was evident and she knew how to handle fee resistance.
6 minute read

International Edition

Management: When cultures collide

"Culture is not a major issue in my business. While the projects I manage may cover multiple jurisdictions, we are all fluent in English. We all understand each other and work together perfectly well".
7 minute read

International Edition

On the record

On the recordA number of factors are converging to make this a time of review and change for the legal sector. Opportunities presented by the Legal Services Act, combined with an empowered client and affordable legal technology, means that those firms standing still risk extinction. What is more, strict compliance regulations and the public's awareness of recent data protection failings are throwing the spotlight on a law firm's ability in records management. Like many sectors, law firms are looking at new ways to cut costs, improve service and find positions of strength in the turbulent market. The dual goal is to deliver improved customer service while increasing profits per partner.Clearly, given the industry's heavy reliance on document-intensive processes, this is a key area for seeking efficiency and cost reduction through technology. The 2008 Pitney Bowes Legal Insight Report takes this as its central theme, focusing specifically on records management competency within the industry. Fifty of the UK's leading law firms were asked to respond to questions around their own, and the industry's, records management procedures. The resulting data presents a clear view of the sector's current status and an insight into the future strategy of an industry no longer set apart.The survey found that almost two-thirds of law firms have no strategic policy in place covering the migration of hard copy records to digital. For a sector that is currently heavily reliant on paper-based processes this finding makes for remarkable reading. Not only are current practices antiquated, it would seem that the majority of firms have no plans to change. But is this really the case? Pitney Bowes' discussions with law firms do not indicate that the sector is simply content to continue along the well-trodden paper records path. Rather, here is a sector with a genuine desire to improve and automate-but one that is simply overwhelmed by the task ahead.The sheer volume of paper being retained, coupled with the fact that navigation of these existing records is manual and time-consuming, prevents many businesses from taking the important first step towards change. The consensus is that such migration would be too disruptive, too demanding of senior employee time and crucially, too expensive to consider.The truth, however, is a distance removed from this perception. The important action is to draw a line in the sand-to create a start point from which future strategy can be implemented. Only once this line is drawn can law firms truly embrace digitisation and begin to think strategically. One option is to agree a date from which all further incoming documentation is to be digitised. Once this procedure is implemented and running smoothly, the business can then focus on migrating the remaining archive from paper to digital-over a period of time and in a modular fashion. Of course, the necessary IT infrastructure needs to be sourced, implemented and managed. Again, many businesses baulk at the decisions to be taken, having neither the time nor the knowledge to make informed choices. It is here that business process outsourcing partners can demonstrate real value. Expert third-party partners will know the market, will have access to a range of appropriate technology and will have the capacity to oversee the ongoing information management operation.The survey also found that two-thirds of firms store their documents in their central offices. This statistic is damning. The cost burden of storing paper records centrally is vast. Consider the location of top law firms and the percentage situated in London's square mile: now consider the cost per-square-metre of such office space. The average filing cabinet requires approximately one square metre of space to house the cabinet itself and allow sufficient space for its drawers to be opened and the contents accessed. Multiply this requirement several times over and the sums quickly add up to serious wastage.Central records storage is not merely a financial burden. Today's law firms are asked to be flexible, to have the ability to set up team and office structures to meet client requirements and to adapt quickly to new ways of working. This approach demands a working environment that is spacious, open-planned and geared towards the client. Hard-copy archives certainly do not fit this mould. Additionally, mergers and acquisitions continue to make the headlines. Companies might be asked to pool resources, to make office space available for additional staff or to swap team locations around. Again, paper files simply are not conducive to a lean, efficient and flexible operation.There are alternatives to this scenario and several businesses, while not yet at the stage of digitisation, are at least storing records off-site, either at their own out-of-town premises or those run by third-party partners. However, this strategy, unless managed efficiently, has its own inefficiencies and hidden costs. For example, many law firms are finding that the cost of couriering documents to and from premises is prohibitive, and that courier firms are proving unreliable. The survey also found that almost a quarter (22%) of firms admit that the relatively simple process of document retrieval causes disruption - a serious cause for concern. This disruption is solely caused by manual, paper-based systems. The immense volume of archived material becomes a maze of information - and even the most efficient and studiously indexed paper files are not immune from simple human error.The technology exists to eradicate this disruption - safeguarding brand reputation, maintaining client relations and achieving full compliance. Certainly, law firms have extensive experience with other IT solutions-database management techniques, for example (possibly related to the fact that, without client details, bills can not be accurately despatched and will not be paid on time!). But, in the majority of cases, the next step-information management-has not been taken. The advantages to be gained through a fully integrated records management solution cannot be ignored. Nominated personnel have instant access to information relating to a case, client, location and time-period, however the business chooses to categorise its data. Information can be shared across the office or across different geographies, bringing expertise together and expediting decision making. Every type of record-a scribbled note, email, phone conversation, case file-can be captured, indexed and made available at the touch of a button. Reports, presentations, proposals-all can be produced, on demand, with the need for manual intervention reduced to a minimum. This is not to say that law firms must become paperless environments. There is still a resistance, for example, to reading multi-page documents on a monitor screen. But an office environment with less paper is certainly achievable, and eliminating the disruption caused by document retrieval must impact positively on customer service.Scrutiny of billing structures will only increase as new entrants bring a fresh approach to the marketplace. As a result, law firms can not rely on ever-rising fees and must introduce leaner, more efficient processes to achieve the desired profit margins.Records management competency can save money, boost client service and enable firms to meet ever more stringent compliance demands. There is a genuine desire for change. But only by drawing a line in the sand can the first step towards meaningful change be taken. Richard Thompson is managing director at Pitney Bowes Management Services.
7 minute read

International Edition

Switch your skills

While it was bound to happen sooner or later, opinions differ as to just how bad the credit crunch is. But it is generally agreed that the City is taking something of a kicking; for City lawyers this has raised some valid concerns about the safety of their current role.
7 minute read

International Edition

Mind your migrants

Many City employers, including law firms, have come to rely on a readily available turnover of foreign workers. This was particularly the case during the boom years when a shortage of qualified UK lawyers meant many law firms looked to Antipodeans. Although recruitment might have reduced in certain areas due to the impact of the credit crunch and global slowdown, those in charge of recruitment should nonetheless be aware of the effects of the radical immigration changes being phased in this year.
7 minute read

International Edition

Value your firm

At the end of last year, the Legal Services Act gained Royal Assent, with provisions for alternative business structures (ABS) heralding opportunities for major changes in our legal services market - currently estimated to be worth £19bn. Although the law - which allows law firms to go into business with other professionals and list on the stock market - does not come into force until 2011, both investors and existing law firms are starting to rethink the delivery of legal services and explore market potential. This is an unprecedented opportunity for financial institutions and retailers to provide a range of legal products and for investors to take equity in existing legal practices.
8 minute read

International Edition

Target your future

Readers of the discussions in Legal Week in March on the merits of marketing and business development at law firms could be excused for believing that they had been transported back to the 1980s, as this debate has been around for 25 years. A substantial number of lawyers undoubtedly do not rate their marketing and business development (BD) departments highly, and the role and value of the service seems as low and unclear as ever. With staff turnover in this function as high as 30%-40%, one question clearly emerges: is there a role for professional marketers in the legal profession?
7 minute read

International Edition

Upwardly mobile

Ambitious associates are increasingly seeking out direct moves into partnership at a new firm. Sloane Poulton reports on the challenges and potential benefits of such a switch
6 minute read

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