The Orange Rag

Accelerating account and project management through minimal IT footprint

Guest article** by Eric Hunter *

Here’s a theory: The cloud enables firms to adopt a Legal Project Management (LPM) approach to billing, financial management, even client relations, with a minimal technology footprint – all based on the introduction of a disciplined process, yet perhaps unorthodox approach. LPM in the cloud promotes a team and account management philosophy including a broader attorney and firm user base all collaborating to provide better client service. While recently speaking at the LawTech Futures event in London, I heard a futurist give a fascinating perspective on how we are evolving from the economics of scarcity to the economics of ubiquity …basically having easy access to everything! If we indeed have unlimited access, thanks to Google for information, Facebook for interpersonal connections and cloud deployments for collaboration, we should be open to exploring creative and social ways (think in terms of spheres as opposed to ‘top to bottom’ lines) to organize our attorneys into teams and deliver better client service.

It isn’t about technology

A lot of debate is being generated on the buzz topics of LPM and Alternative Fee Arrangements (AFAs), especially how they can be applied to business driven initiatives. The key to a successful LPM and AFA approach, I feel, lies within client integration, and hence embracing the economics of ubiquity as alluded to above.  In the information age, information and associated outputs are abundant, but how do we best organize, manage and share meaningful interactions and deliverables seamlessly with our clients? This can be achieved by creating two organizational models – through shifting focus away from the billable side of the house to the alternative/flat fee side; and by creating a team driven alternative staffing environment as opposed to the traditional legal model.

Many firms are already adopting variations of this approach. However, embracing this approach by integrating client relation management initiatives via an account management model through all layers of the firm is something new. Also, utilizing enterprise driven social media as a behavioral change push in this direction is also novel and rather ‘atypical’. The bottom line though: It isn’t about the technology for technology’s sake. Technology driven initiatives are meant to evolve behind the scenes, creating a consistent innovative backdrop towards behavioral change. As an example, Facebook or Google+ continually evolve technologically, but to the user, this essentially takes place in the background, unbeknownst to them. And even if this evolution results in a major change such as a new user interface, it is an innovative step forward, further revolutionizing the information sharing medium we experience every day.

Let’s talk just a bit further about enterprise-driven social media. As platforms like Salesforce, Amazon, Facebook, Microsoft, Google and Apple all compete and integrate through social media driven solutions for ad revenue and market share, the natural collaboration and team building approach becomes a fluid business integration enhancement. Meaning what? Meaning, when deploying enterprise-driven social media, the natural innovation integration enhancements these players make within a hosted environment directly translate to business-level change and innovation. In turn, these environments lend themselves to legal project management,  alternative fees, alternative staffing and alternative business models.

Legal Project Management and Alternative Fee Arrangements are a natural bi-product of this goal within the legal industry. What occurs is a ‘team approach’ driven through a minimal technology footprint. Traditionally a project management team approach is an example where processes are streamlined from the attorney/administrative staffing standpoint. For example, rather than ‘secretaries’ & ‘attorneys’ we instead pool work across several resources with the project deliverable as the consistent element between parties. This model alters the attorney/staffing ratio & reduces costs across the board.

The additional layer of expediency comes from the account management integration concept – where KM attorneys, marketers and account managers are all managing projects for the firm and with clients. A pyramid approach starting with the chief marketing officer creates account managers layered and integrated through all practice areas. This pyramid allows client relations to flow with both a centralized/decentralized approach, from the top of the pyramid down through the ranks. Are new resources brought in to enhance this process? Yes and no. Existing resources are re-thought, re-aligned, and integrated into this pyramid approach. Additional resources are then allocated as the process is streamlined.

Social Media and the Spherical Business Model

Much has been written in terms of the relevance and application of social media in law firm settings. To me, the potential of social media in legal is based on the acceptance of the concept that the social media client relations approach does not stop with our external sharing and collaboration. How is information being relayed and targeted? Through the individual. Both Facebook & Google+ take this approach…. leveraging the ‘circles’ concept to allow firms to funnel information both internally and externally. This allows individual streaming and a decentralized approach to targeted information sharing while centralized where appropriate. What does that mean? It means that we as an industry can no longer divorce process from technology. One drives the other. The business model itself becomes spherical as opposed to linear.

The entire approach with hosted unified social media platforms as an enterprise solution like Google Apps is the shared experience. There are no longer single users, every element of the application is geared towards team and project management related growth. Client relations must be re-thought and integrated through account management layers to meet these demands. What are the bi-products of such an approach? Transparency across the board and all elements, an intranet that is more Facebook than traditional corporate – or to put it another way, the user interface for organization and client alike is decentralized like Facebook & Google+. Therefore the information is delivered, accessible and shareable in the most expedient way possible. In this way, both intranet/knowledge portal – it’s all the same shared communication experience.

When elements of the work product are accessible to the client for team driven collaboration in this fashion of course the billable hour concept will ultimately be put to the test. So how do we begin towards flat fees and afa’s becoming the standard? Dissect the work product, approach the work product in phases and rebuild within a shared environment. In other words, the work product is no longer linear. We have in turn an organization that is no longer linear. We instead have a spherical organization, with over-arching circles interlacing account management through all practice areas, clients, and work product.

New Business Models & Beyond

When re-adapting to these business models what is the end result? LPM and AFA’s are just the beginning. The economics of scarcity evolving to the economics of ubiquity becomes the reality. Where the UK is moving with their potential business revolution of non-equity integration can ultimately tie in with hosted integration through enterprise driven social media solutions. A spherical model driving the adoption between decentralized and centralized nonlinear models is what will lead to success. As an increasing number of solutions integrate, more and more opportunities arise for investment within hosted innovation models, with onsite innovation investments leading the alternative staffing driven elements of the future.

Competition between Facebook, Apple, Google, Microsoft, and SalesForce has popularized the hosted collaboration approach, aka the vertical agnostic approach. LPM and AFAs are nothing more than examples of the legal profession adapting the bigger picture other industries are driving, and what hosted collaboration platforms are re-engineering within the consumer driven arena. Behavioral driven consumer social platforms can be leveraged by the enterprise for organizational driven re-organization and alternative staffing models based off the re-engineered centralized information sharing evolution these platforms provide. The end result is a minimal technology footprint with the primary focus on process and behavior.

* About the author Eric Hunter is the Director of Knowledge, Innovation & Technology Strategies at Bradford & Barthel LLP. Over the past two years, Eric has integrated a Google-driven social media knowledge and collaboration environment within the firm and is constantly looking to leverage innovation solutions to enhance client service interaction while driving business optimization solutions internally. Eric speaks and writes on competitive strategy and collaborative cloud solutions globally and is the recipient of ILTA’s 2010 ‘Knowledge Management Champion’ Distinguished Peer and ILTA’s 2010 ‘Innovative Member’ awards. Eric can be reached at ehunter@bradfordbarthel.com and follow him on Twitter @thelihunter

** The original article previously appeared in LJN’s Legal Tech Newsletter, an ALM Publication and is being re-published with permission.

RPC shortlisted for Guardian Innovation Nation award

City law firm RPC (Reynolds Porter Chamberlain LLP) has been shortlisted for an award in a competition that rewards the most innovative use of technology in the UK public and private sectors. The competition – called Innovation Nation – is being run by The Guardian, in conjunction with Virgin Media Business.

RPC is shortlisted in the Innovation in Enterprise category following  work on its Edge social business intrane. Developed in conjunction with Dachis Group, Edge uses social media content and aggregation tools – such as wikis and blogs – to help people across the business easily access the knowledge and insight they need to provide service to clients.

Director of Knowledge Management & Capability at RPC Andrew Woolfson says: “Edge allows us to tap into people’s wealth of information and expertise at RPC by breaking down the kinds of knowledge silo that often afflict professional services firms. Reflecting our open and innovative culture, Edge leads to increased transparency and collaboration across the business, which in turn helps us to work more efficiently and deliver better service to our clients.”

For more details about the category - www.guardian.co.uk/innovation-nation-awards/innovation-nation-shortlist-enterprise - voting for the award closes on 28 May.

It was 25 years ago today – Eclipse gets out the silver for its anniversary

Eclipse Legal Systems – the UK’s largest independently owned legal IT provider – is celebrating its 25^th birthday in 2012. The company was founded on 17^th May 1987 by Steve Ough (now Chief Software Architect) and has gone on to become the market’s leading case management software vendor.  Its Proclaim solution is in use by over 16,000 individuals at 650 organisations. As part of the year’s celebrations, Eclipse’s 2012 company conference (to which all 120 staff are invited) is taking place over a weekend in Barcelona.

Steve Ough comments: “It’s an incredibly proud time for us – the business has gone from one man (literally, me!) to a headcount of 120 (and we are actively recruiting for more).  Many of our clients have been with us for a large part of our history (some for 20 years) and we are looking forward to continued growth and success in the years to come.”

Here is a brief timeline of Eclipse’s history:

May 1987

Eclipse Computer Systems is founded by Steve Ough (now Chief Software Architect).  The company develops and supplies its first Case Management and document production system to a Legal Expenses Insurer.  This first product was entitled CHAMP (Claims Handling And Management Programme).

1988

Eclipse is incorporated as a limited company.  The firm develops a full accounting and sales order processing system for a Cutlery importer, Lancasters, and continues to expand in the legal sector.

1990

A growing Eclipse (now numbering 5 staff!) moves premises to Merchants House (Little Germany, Bradford).  A new Case Management system entitled ‘Chase’ is born.  Proactive marketing begins and sees Eclipse attend the much-missed Barbican Legal IT event (the biggest exhibition in the calendar at that time).

1992

Russell Thomson (now Chief Business Executive) and Dolores Evelyn (now Sales Director) join as Eclipse’s first dedicated sales team.

1994

Eclipse picks up speed, seeing the 20th client sign up for its ‘Chase for Windows’ system.

1996

Russell Thomson becomes a shareholder and joins Steve on the Board of Directors.

1997

The very first Eclipse staff conference taking place abroad – all staff are taken to Dublin for a weekend event.  This tradition has continued and Eclipse takes all staff for an annual conference event (locations have included Portugal, Spain, The Alps, Amsterdam).

1999

The new Eclipse Case Management system is launched – Proclaim.  Surge in new client wins and Chase upgrades including current clients such as Barnetts Solicitors, MSL Legal Expenses and Colemans-ctts.

2002

Proclaim Accounts launched as Eclipse expands its legal IT footprint into Practice Management Systems.  The expanding company (now numbering 30 staff) moves to Kelso House (Little Germany, Bradford) and becomes a Law Society Recommended Legal IT Provider.  Eclipse retained this badge every year until the demise of the Law Society’s Software Solutions Guide in 2009.  2002 also sees a market first – Eclipse launches FileView, the legal IT sector’s first real-time online case tracking tool.

2005

Growth continues, with turnover reaching £3million and the Proclaim end-user figure passing the 5,000 mark.

2007

Eclipse wins its first international client – 1car1 (Australia), a vehicle hire and management firm.

2008

Proclaim wins the coveted “Integrated System of the Year” prize at the Legal Technology Awards.  The Proclaim Hosted (SaaS) solution is launched, providing clients with the option of hosting at Eclipse’s data centre or at the location of their choosing.

2009

Record results in the Law Society’s Software Solutions Guide – Eclipse ranks 1st in 7 categories.  The company expands into purpose-designed buildings at its Bradford base, with headroom for 200 staff.

2010

Longstanding employees Mick Thompson, Tracy Blencowe and Dolores Evelyn are promoted to the Board of Directors to assist Steve and Russell in the next stage of growth.

2011

Eclipse’s turnover hits a record high of £8 million, staff headcount exceeds 100 and the company announces a record 104 new client wins in the 2010/11 financial year.

2012

Eclipse is the first-to-market with Case Management solutions designed exclusively for Alternative Business Structures.  Turnover reaches £9million and staff headcount exceeds 120.

Bighand changes hands for £49 million

BigHand, the digital dictation and voice productivity software developer, has been acquired by Bridgepoint Development Capital together with management in a transaction totalling £49 million. Founded in 1996, Bighand is the largest provider of voice productivity software to the legal, healthcare and professional services market in the UK and has a growing international client base.  It currently supports over 150,000 professionals globally, across 1,450 organisations and has offices in London, Chicago, Sydney and Toronto. BDC has acquired the business from LDC (part of the Lloyds banking group) who first invested in the team in 2006 in a primary buyout.

Alan Payne, partner at Bridgepoint Development Capital, says that penetration of voice productivity solutions, although strong in some markets, has still further to go in many others and is growing especially on the back of demand for its use from mobile devices and recent advances in voice-to-text conversion technology. “Voice productivity software can yield very significant efficiency gains and cost savings to its users. BigHand is highly rated for its product capability and quality of service and is now recognised as a market leader, especially by the legal community.”

The company is the branded market leader in the supply of voice productivity solutions to the UK legal market and is the No 1 supplier in the US, Dutch and Australian law firms market. In healthcare, it is the number one accredited supplier to the UK’s NHS.

BigHand CEO Jon Ardron added: “We consider Bridgepoint’s support to be very good news for our clients and our staff as we invest for the future.  We have exciting plans for new products and services, there are a range of untapped growth opportunities for our business in both existing and newer markets and with the support of our new shareholder we expect to grow our market share, build our customer base in target markets as well as extend our capabilities through targeted acquisitions.”

Ken Hills Director, LDC added: “This is a great next step for a company which still has the ambition to develop further. The movement into SaaS markets is particularly encouraging and bodes well for the future.”

BDC will acquire the company from LDC who will roll-over a portion of their proceeds to take a minority stake in the business along with a significant investment from management.

COMMENT: Considering the original LDC buyout placed a reported £16 million value on the Bighand business, a £33 million increase since 2006 is good going. We also hear that all the current senior management are not only staying but have increased their personal shareholdings in the business. And we also hear the company now has a war chest it will be using for acquisitions, international expansion and new product development.

Background: Debt for the transaction was provided by the incumbent provider HSBC. Advisers involved in the transaction are: for Bridgepoint Development Capital – E&Y (M&A and debt advisory), First Capital  (Valuation and exit), Travers Smith (legal), AMR (commercial due diligence) & for LDC – Marks Baughan & Co (Corporate Finance); for management – CMS Cameron McKenna (legal), KPMG (financial and tax).

Bridgepoint Development Capital provides funding to businesses headquartered in France, the Nordic region and the UK, typically buyouts valued up to €150 million. BDC has a team of 17 investment professionals wholly dedicated to its investment activity and operating from offices in London, Paris and Stockholm. Recent transactions include the buyout of aerospace component manufacturer Shimtech Industries involving the acquisition and merging of four businesses within Hampson Industries’ Aerospace Components & Structures division in a transaction totalling $84 million; and a growth capital investment in Evander Glazing & Locks, the nationwide 24/7 emergency response and repair provider of locks and glazing.  BDC is part of Bridgepoint, the international private equity group, which invests in businesses valued between €200 million and €1 billion across Europe, from a network of nine offices in Frankfurt, Helsinki, Istanbul, London, Madrid, Milan, Paris, Stockholm and Warsaw.

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Something for the weekend: new product development

Freeth Cartwright renew outsourcing deal with Quiss

Regional law firm Freeth Cartwright LLP has reappointed incumbent IT outsourcing specialist Quiss Technology as a result of a successful working relationship spanning more than a decade. The new contract is signed as Freeth Cartwright LLP looks to install new infrastructure worth more than £1.5 million for more than 500 seats. The investment will ensure partners and their teams have access to the most innovative technology with which to offer excellent levels of service to clients across a range of business sectors including leisure, energy, manufacturing, retail and transport.

The contract also includes the installation of a virtualised network, offering improved efficiency across the firm’s nine offices located in London, Nottingham, Derby, Leicester, Stoke, Birmingham, Milton Keynes, Sheffield and Manchester.  The ‘Works’ package – Quiss’ total IT outsourcing solution which is tailored for individual clients – means existing applications will be upgraded to integrate with the new infrastructure. Quiss technicians will remain on site throughout the installation to ensure compatibility tests are completed and staff are fully trained on the new systems and equipment. Laptops and tablets will be made secure via robust encryption tools to protect confidential case management systems – crucial to the trust relationship required between solicitors and their clients.

Peter Smith, Chief Executive of Freeth Cartwright LLP, said: “Our firm has grown substantially over the last ten years and Quiss has been with us all the way. We’ve said before that our partnership with them has enabled us to revolutionise the way we do business – this remains true to this day. We need to know how changing technological advancements can help us not only lead to efficiencies internally but also how they can help us add value to our clients. Our relationship with Quiss allows us to do that well.”

The first contract signed between Quiss and Freeth Cartwright LLP was back in 2001; with a remit to bring consistency across the firm. With outdated infrastructure and an IT team which had seen a number of personnel changes, this rapidly-expanding law firm needed a stable and knowledgable IT provision with the expertise to install and modernise systems and train staff across all office locations. Since then, Quiss has guided the firm through numerous challenges and issues – including an office flood – with little or no downtime.

Quiss Managing Director, Andy Michael, said: “We’ve been awarded this latest contract as testament to many years of excellent client service. Quiss has a simple but effective ethos – excel in the day-to-day technical IT provision and remember that the client relationship is absolutely key. It’s so important to not just provide a team that are experts in their field but that we maintain regular client contact. It’s this formula that has led to us retaining clients for many, many years. We’re an integral part of our client’s business and we understand how they operate and what works best for them. This way we can offer real value and solve any potential issues as soon as they arise.”

For further information about the Quiss Works package visit www.quiss.co.uk

May issue of American Legal Technology Insider newsletter out now

The May 2012 issue of the American Legal Technology Insider newsletter (No.46) is out now. The top stories include:

• Jillson in the ediscovery hot seat at Daegis

• the Aderant & Omega deal

• the apps flood continues

• Generations X, Y & Z – the kids are alright

• May’s wins, deals, swapouts, rollouts & new product launches

Either click on the newsletter image or click here May ALTi to download your own free copy. You can also have your own copy delivered directly to your email inbox – just email subs@legaltechnology.com and include the words American Insider Subs in the subject line. The next issue will be out on 11th June.

New research suggests law firms pay too much for ICT

New research conducted by Mercato ITelligence on the purchase price of standard ICT products has revealed that law firms are paying margins of anywhere up to 145% when buying from suppliers. The average margin paid was 23% – considerably higher than the industry best practice rate of 3% recommended by SOCITM. With Gartner predicting £493 billion will be spent on ICT in Western Europe this year, it is clear many millions are being wasted by purchasing products at excessive prices.

The one consolation law firms can take is that there are other sectors where even higher margins are being paid. Here is the Top Ten (and apologies for formatting)…

Sector                                    Average Margin            Highest Margin
Housing Associations            36%                                           731%
Retail                                         35%                                           225%
NHS                                           28%                                           231%
Pharmaceutical                       28%                                           60%
University                                27%                                            557%
Legal                                      23%                                        145%
Insurance                                 22%                                           368%
Telecoms/Media                     19%                                           506%
Banks                                        19%                                            82%
Utility                                        17%                                            393%

Mercato research shows that 81% of organisations do not secure best value when they make investments in ICT.  Volatility in the market makes it difficult for buyers to gather data and find the optimum price. Mercato ITelligence has been proven to save organisations up to 24% on their IT spend. It is the only benchmarking tool approved for the government G-Cloud and is used by 30% of UK Police Forces, a number of Local Government organisations and an extensive amount of private sector businesses. www.mercatoITelligence.co.uk

Stobart Group drives into legal services market

The UK logistics business, the Stobart Group (yes, the Eddie Stobart trucking group) has launched a new service that will link members of the public and businesses direct to a barrister without needing to employ a solicitor.

Stobart Barristers, which offers access to a UK-wide network of specialist barristers for any area of law, uses a pricing model under which its clients agree and pay a fixed-fee through a ‘pay-as-you-go’ model during the litigation process. The new division, headed up by the Group’s legal director Trevor Howarth, has been formed following Stobart’s decision to employ its own barristers without a solicitor in 2008, a move which has created significant savings on the company’s annual legal fees. (Members of the public, or businesses, have been able to engage direct with barristers since the introduction of Direct Public Access (DPA) legislation in 2004.) Stobart Barristers says its fixed fee model will help it unlock a latent demand for barristers’ services.

Once its clients have received a barrister’s opinion, which the service would typically look to deliver in under seven days, its sister company Stobart Barrister Support Services can provide the necessary paralegal support to help a barrister prepare their case instead of a solicitor.Overall, Stobart says that its fixed fee model of delivering barrister’s services will be up to 50% cheaper than if provided via a solicitor. Stobart Barristers also provides one of the few ways for members of the public to pay for a barrister’s service as despite the introduction of DPA legislation barristers are still not allowed to accept fees direct from members of the public.

Trevor Howarth, Stobart Barrister’s managing director, said: “This is a new market for the Group and one where we see significant potential to grow by offering the public the chance to benefit from a model we have successfully honed for our own business over the past few years. The legal services industry continues to undergo significant changes that are allowing new entrants to the market with innovative business models to provide faster and less expensive services than those offered under traditional models.

“DPA has been around for around eight years now but it hasn’t been widely adopted because consumers and businesses don’t know where to look or which barrister to pick, leaving many to still having to rely on the advice of their solicitor. But in doing so they are forced to pay significant fees. Our model cuts out waste and opens up access to a national panel of barristers that are selected for their ability to meet our clients’ needs.

“People want assurances over what financial liabilities they may have if they were to pursue a litigation process but typically face an open ended process where costs remain unknown. Through providing a fixed-fee service we can help give people greater clarity over what level of exposure they face.”

The service will operate a confidential call line seven days a week from 8am to 10pm.

Consumers can call the helpline direct on 0845 287 4735 or visit www.stobartbarristers.co.uk