Tag Archives: Legal

General IT, General Legal IT

Does IT matter in law firms?

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I read my copy of Computing magazine today and the comment section caught my eye. It was an article entitled “Focus Resources on what really matters” by Martin Butler, the basic premise is that IT has become caught up in a drive for efficiency at the expense of business success. In the current “economic climate” there is of course a natural tendency for cutting costs, corporate IT departments are usually large cost centres and thus are prime targets for cost savings. 

It reminded me though of an article I read some years ago about the shift of IT to a utility function akin to the railways or electricity companies (IT Doesn’t Matter by Nicholas G. Carr published in the Harvard Business Review). The premise being that these businesses “open opportunities for forward-looking companies to gain strong competitive advantages. But as their availability increases and their cost decreases – as they become ubiquitous – they become commodity input”.

These are opposite views of IT, one as a continuing driver for business growth and one as a driver for business efficiency and cost savings.

Now, I’ve started reading Richard Susskind’s “The End of Lawyers?” and I’m currently at the point where he talks about “technology lag”. This is the lag between two forms of technology: data processing and knowledge processing. The former (data processing) he puts as the “use of technology to capture, distribute, reproduce and disseminate information.”, the later (knowledge processing) a “set of technologies that help us analyse, sift through and sort out the mountains of data that we have created and helps make them more manageable.”

Richard Susskind points out that we are between these two forms of technology, in law firms I agree. And I think Martin Butler’s view of the IT function is the one that will facilitate this move and be able to supply the “Knowledge Processing” in law firms. I’m afraid that Nicolas Carr’s IT function will give us very efficient and cost effective departments that are stuck in “Data Processing”! It’ll be interesting as we climb out of the recession which law firm IT departments become.

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Legal

UK big law partner caught blogging

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Let me guess you clicked on that link for the same reason you might click on a sports link of “Ryan Giggs signs for Liverpool” or a politics link of “Gordon Brown resigns”, it seems so unlikely that you have to find out more.

Blogging is old hat, the term was first coined back in 1997. However this doesn’t mean they are obsolete by any means, in that time they have grown to the position where they are starting to really challenge television and newspapers when it comes to breaking and shaping news stories.

In the US blogs have been used widely in business for a number of years and with great effectiveness in politics. In the UK there are some great blogs out there and bloggers (especially political bloggers) appear regularly on the 24 hour news channels now. However I would argue that blogs really haven’t hit the mainstream in business and certainly not in UK law.

There are some UK legal bloggers out there, but your average big law partner isn’t blogging. It’s probably a similar argument that a certain MP for Salford used “I’m not against new media. YouTube if you want to. But it’s no substitute for knocking on doors or setting up a stall in the town centre”, this may be true but why not use both?

So to all the lawyers, what’s stopping you?

And if your IT dept hasn’t given you the software or shown you how here are some resources:-

What is a blog? Watch this video “Blogs in Plain English”

How do I start? Start by setting up a blog on WordPress.com or Blogger.com

That’s pretty much all you need.

So go on give it a try I’m sure your clients would appreciate hearing from what you have to say, you never know it may also lead to some business coming your way!

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Legal

Free! Why £0.00 Is the Future of Business

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I caught sight of this article “Free! Why $0.00 Is the Future of Business” in The Spectator. It suggests a new business model where the product is free, the consumer gets the product for nothing and the business makes its money elsewhere. This is especially prevalent online where the thought of paying for things you would in the “real world” are, well, crazy (would you pay to read your quality daily newspaper online? conversely would you expect the paper copy of your quality daily newspaper free?).

The Spectator points out that the business model isn’t necessarily that new, but what is new is it’s less a marketing trick to get your product out there but a new economy, in the words of the Wired article :

Once a marketing gimmick, free has emerged as a full-fledged economy. Offering free music proved successful for Radiohead, Trent Reznor of Nine Inch Nails, and a swarm of other bands on MySpace that grasped the audience-building merits of zero. The fastest-growing parts of the gaming industry are ad-supported casual games online and free-to-try massively multiplayer online games. Virtually everything Google does is free to consumers, from Gmail to Picasa to GOOG-411.

In the UK an ISP revolutionised the market in the early days of the internet boom. Traditionally (before broadband) you would pay a monthly fee for your ISP and then your phone calls on top of that. Freeserve came on the market and dispensed with the monthly charge, making its money from a proportion of the call charge. Within a year it had grown to 1.5m subscribers and changed the market forever.

So my question is can this business model be translated to legal work?

From a consumer point of view I remember buying my first house in 1995 and getting the conveyancing for nothing (thanks to the builder).

But could a law firm really offer services for nothing?

Could we every get to the point that the knowledge systems in law firms become so good that a simple search could trawl thousands of precedents and cases in a firms KM (Knowledge Management) and DM (Document Management) systems and bring you back the agreements that could be used with virtually no partner/associate billable time. Meaning very low costs that could be covered elsewhere (e.g. by adverts)?

I imagine the response now is “Don’t be stupid!” but then I’m sure if I stood in “Our Price” or “HMV” music stores 20 years ago and said “in the future you’ll be able to get every record and tape in this store in far better audio quality, for free!”

I’d had said the same thing back then “Don’t be stupid!”. And now we have Spotify!

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General IT, Legal

Let’s all pick on twitter

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OK the new kid on the block has grown fast, 974% last year apparently! Everyone’s talking about it, in the legal world it’s on every conference agenda. It’s big news.

So it comes as a shock when people question its value. And judging by recent articles and posts on the web the time is ripe to try and knock twitter from its podium:

And thus it get’s articles written about it, repeated and quoted in blogs and twitter itself (yes I understand the irony!)

To me though people are missing the point, twitter isn’t facebook or myspace so comparisons with them doesn’t work.  It is just a brand for micro blogging (there are plenty of others out there: kwippy, plurk, jaiku, identica etc). Yes, twitter as a brand may fail but micro blogging is here to stay.

Face-to-face, letters, telephone, fax, email, instant messaging (IM) and twitter (micro blogging)

They’re just all just forms of communication, nothing more nothing less. People will prefer one over the other, over a period of time one form may get used much more than others. But none of them are going away.

IM has been around for years, but it’s only just starting to move into the business world (outside IT depts). But in a short time it will take off in businesses and we’ll see email usage fall away, just as we saw the use of telephones fall once email exploded on the scene (don’t believe it, just ask any 16 year old how much they use email!).

Micro blogging will start to appear too in corporate environments as people experiment with laconi.ca and jaiku.

My guess though is that Larry Bodine doesn’t necessarily think twitter is a waste of time, he’s in marketing and one sure fire way to get your name out there is to shout the opposite to what everyone else is shouting (after all it was only 5 months ago that “Twitter is valuable to legal professionals”) . And everyone has taken notice, I bet Larry has more speaking engagements and requests for articles than at any time in the last 12 months!

He may actually be right on twitter not being an effective law firm marketing tool, but as for being “sucked into the black hole of buzz about twitter” it isn’t a black hole, twitter or micro blogging will be just like the telephone here to stay for a long time!

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General IT, General Legal IT

laconi.ca – implementing a twitter-clone or microblogging in a law firm

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What started as a business request for a “tickertape” application on the intranet has led us to the verge of implementing laconi.ca in our firm.

What is laconi.ca?

It’s basically a twitter-clone, a “Free and Open Source microblogging platform”, take a look at identi.ca which is a public implementation of laconi.ca.  For us though the laconi.ca application has been implemented on the homepage of the intranet, but the beauty of laconi.ca is you can just as easily use one of the twitter clients that support it (e.g. Thwirl).

At the moment the implementation is just in pilot with one practice group, but I can see word of mouth spreading this virally within the firm, like twitter has spread on the web.

Although I can claim some credit for thinking there was scope for a “corporate twitter” behind the firewall (see my post on Jaiku back in January), I can’t claim the credit for this implementation. Either by being the person to suggest the solution to the request for the “tickertape” application nor for being the team looking after it.

Our application architect saw laconi.ca as the solution and has implemented the application, here are some of the technical details:

laconi.ca is installed on the intranet on IIS/PHP5 utilising ISAPI_Rewrite from Helicon Tech (http://www.isapirewrite.com/), to a MySql 5 Database.

A javascript ajax front end was developed to laconi.ca’s twitter api utilising the jquery framework. All ui updates are via ajax – as it had to be compatible with IE6 🙁

User authentication is performed by NTLM challenge/response and delegated (via javascript header manipulation) to laconi.ca in order to avoid prompting the user for a login.

The javascript/html/css is bundled as a SharePoint content webpart which is displayed on the Firm’s intranet homepage.

Laconi.ca user accounts are kept in sync with AD via a java based ESB (enterprise service bus) message listener.

The application itself looks simple (just like twitter!) and that’s the beauty of it. It just does what it does without any complicated UI to learn.

microblogging

I really hope it takes off, as I think microblogging will prove to be an invaluable tool for a law firm. I’ll post an update down the line to update on how it goes.

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Legal

The billable hour isn’t going anywhere!

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@taxgirl on twitter “If I read one more piece about "demise of the billable hour," I’ll scream. BigLaw is reactionary, sure, but I don’t expect dramatic shift.”

That tweet the other day made me smile as I’ve been thinking of doing a post on “billable hour”, I mean it’s a written rule for a legal blog right? But I couldn’t quite get my thoughts straight on it, something didn’t quite fit. I mean are the clients of law firms really crying out for fixed fee’s or do they just want lower fees? Or are they even crying out at all? And if they aren’t then why would a business radically change a model that has generated it lots of money?

Also it’s not that new, some work has already shifted to fixed fee or pre-packaged work. Firms like Optima Legal have business models built like this. But will biglaw step into this arena in a big way or just leave it to the niche production line firms?

I’m going out on a limb and guessing nothings going to change anytime soon and the billable hour model is here to stay for the majority of medium and large firms.

I know this goes against a lot of legal bloggers, but it was an example I was trying to pull together for an argument for abolishing the billable hour that drew me to this opposing conclusion. Let me give you the example, I was thinking of when you service your car (or any garage visit).

Say you’ve a VW Passat standard model nothing fancy. There are thousands of this model on the road. It’s a 40,000 mile service and the garage you are taking it to has done this service hundreds of times, and if it’s a VW dealer then most likely on this very model. The cost is estimated at about £170. But it’ll depend on what needs doing.

At 5pm you pick up the car and get the bill:-

  • 67GDHS67- Oil Filter x 1 – £40
  • 888GH28 – Aero wiper blades – £10
  • 89897DH – Duckhams Hypergrade – £35
  • Replace oil filter (1hr) – £20
  • Replace wiper blades (.5hr) – £5
  • Oil replacement (2hr) – £40
  • Check brake fluid – £20
  • Check timing belt – £25
  • Miscellaneous service labour (2hr) – £40
  • Total service cost – £235

The next day someone else will take their Passat into the same garage and will get charged just £170 for the service as it didn’t need any extra work.

As a client of the garage do I want them to charge me a flat rate? Do I want to know exactly how much it will cost?

My immediate answer is yes of course, but then I think about it more and start to change my mind. In fact I conclude, no not really. I started to think that for the garage to charge a flat rate they’d have to manage the service a bit like a project, they’d break it down into components, estimate risks of extra work and add float for these possible risks. Basically if I was the guy who paid £170, I would probably pay a flat fee of £190 to ensure that everyone’s bill was also £190 (the garage moving some of the costs of the possible extra work around).

As the other guy, having had years of experiencing how the garage used to charge, I wouldn’t be too happy with this new model. In that I’d effectively paying for all the other people’s extra work.

There’s always the “project tensions” to consider when working to fixed price. When you try to bundle up a piece of work (or project) it requires you to manage the three tensions: Time, Cost and Quality. Time in most cases would be critical to ensure customer service and to manage the throughput of work in the garage, therefore if the flat fee is fixed and too low to cover the work then naturally your quality will drop. Customers aren’t going to be too happy about this.

So after some thought on this example, I thought “you know, if I was a law firm client I think I would want to see the full breakdown and I think I’d accept sometimes I’d pay that bit extra on difficult jobs to get my work on time and of a consistent high quality.”

So if the client isn’t too concerned about changing the model, what about from a lawyers perspective? The recent AmLaw 100 stats show that although the PPP (Profits per Partner) has dropped in this recession the average is still over $1m. So is the crunch so bad that radical changes will be in order? I don’t think so.

And that draws me to my conclusion stated earlier, the billable hour is here to stay!

BUT, what I do think will change is that law firms will look at the hours billed and see how internally they can gain more profit from each task on a case. Are there tasks that can be done more cheaply? Using junior members of the team, outsourcing some work, using technology better etc? Can they ensure that all the time is billed and not missed.

Also from a clients perspective. If I think back to the garage example, I too would be looking at the hours billed and thinking. Why can’t that be sourced cheaper, why is that dealer charging X for labour and this one charging Y. In the legal world the client relationship should mean the client can start to encourage better/cheaper ways.

But all this requires the visibility of a breakdown of the bill, not an overall flat fee!

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General Legal IT, Legal

From Novell and Word Perfect to global data centres – law firm IT : a history

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There was a blog post doing the rounds over Easter via twitter about a law firms marketing dept that asked an employee to stop re-tweeting the firms twitter posts made me think twice about writing a post on the brief history of our IT dept. But then I give our marketing team a bit more credit than that, so here goes. A blog post whose sole purpose is just for a bit of light end of week reading.

I include the name the firm as it really doesn’t take more than a few clicks to work out which law firm I work for. And so before you read on you might also want to read my disclaimer, especially if you’re a lawyer just so you’re under no illusions that this is some kind of official blog post 🙂

The IT dept as it stands now had its genesis back in the city of Bradford in West Yorkshire. It was housed in a lovely 1960’s office block (see photos below), a building called Arndale House. At the time the firm was known as Dibb Lupton Broomhead and was still very much a Yorkshire firm rather than the global organisation it is now. At that time there was also an IT presence in the main Sheffield office (a team looking after the network and a couple of Unix boxes, the helpdesk, the training team and the IT director), however it was the smaller team based in Bradford which was the start of what would become the global IT dept (the Bradford team quickly grew in those early days from 3 to approximately 9 people – 5 of whom still work for the firm).

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At the time the firm was on a Novell network with the main desktop application being Word Perfect and it only had internal email (although an external AOL account was available from one IT machine!!).

The Bradford team was crammed into 3 small rooms, sharing the floor with the old DMRU teams, before growing slowly to take some open plan space outside these rooms and finally relocating to take half of the floor when it brought in some infrastructure teams and application support (all that was left in Sheffield was the help desk by this time and the firm had merged with Alsop Wilkinson to become the the burgundy national firm Dibb Lupton Alsop)

dibbluptonalsop

At this point external email was up and running, Windows 2000 had replaced Novell, the firms intranet was in place (together with a flickering candle for the ‘I’ of iSIS at Christmas time! It was after all when animated GIF’s ruled the web!) and some thoughts on a matter centric DMS for the firm were starting to emerge (if you worked in the the dept at that time then do you remember 80/20? The ideas from which generated the firms home grown matter centric DMS years before WorkSite 8).

Growth for the dept mirrored the firm and by Y2K it had re-camped again to take an entire floor, two below its previous home in Arndale House. A large open plan aircraft hanger of an office now housed all the IT dept (helpdesk, business systems development, technical development and support teams for applications and infrastructure).

There was a relocation of many of the servers running the IT services from Sheffield to two rows of racks in a nice new server room on the same floor as the dept (apart from the dodgy air conditioning which required portable units to be introduced on many occasions. In fact dodgy air conditioning seems to be a recurring theme in all the offices the dept has been located!)

DLA-blue-squareBy 2001 the firm had become the blue squared DLA and the IT dept had relocated from Bradford to Leeds, this would enable it to continue to grow to meet the needs of the growing firm and for it to be closer to the firms offices in Leeds centre which were a much larger part of the firm than the operation in Bradford. Park Row House in Leeds centre was the new home (see photos below).

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It was the first time the dept had had meeting rooms, build and test rooms as well as a purpose built test server set up. The time at Park Row introduced many of the key cornerstones of the firms current environment. It also saw the firm start to grow its international IT hubs to support the non-UK offices.

DLA-round-square DLA-piper-rudnick-gray-cary

The switch from rounded DLA through DLA Piper Rudnick  Gray Cary to DLA Piper saw the IT dept out grow Park Row House and move to its present location in Leeds. The main IT dept is still located here but it now has key regional teams in Amsterdam, Hong Kong, Moscow, Vienna and Dubai, as well as a number of IT personal in most offices for local support and training.

th_100_0401copy

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Legal

Last time it was manufacturing, this time it’s white collars turn!

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Almost every day on twitter or in the legal press there are stories of law firms cutting lawyers and/or staff. As I write this post according to The Lawyer the total UK legal redundancies stand at 2727. In fact it may be easier to reel off a list of those firms that haven’t yet made layoffs (note I say yet, I would bet that layoffs are being considered across all firms)

So is this recession worse than 1980’s? Are companies really in bad shape?

I read an article recently on two types of recession:

  • “boring recession” – troughs in the business cycle e.g. 1989-1992
  • “dramatic recession” – big transformations in the economy. e.g. 1980-1982

The article above points out that the early eighties recession stripped out much outdated manufacturing, mining etc. The recession forcing the market to do exactly what markets do and correct itself.

So what category is this recession? Boring or Dramatic? I’m going to take a guess at dramatic, but this time it’s not blue collar industries that the market is correcting, but white collar ones!

This is the reason we’re seeing so many law firms shedding jobs. Though it’ll probably take more than this wave of layoffs to “correct the market”. I don’t think we’ll see another wave of redundancies, as I think a lot of firms will have stripped out the numbers they can afford to lose without compromising the organisations. What I do think though is that we’ll start to see radical changes in law firms; new billing models, exploitation of technology (to take a quote “no longer need clerks and pupils to search libraries, copy forms and wrap bundles in pink ribbon”), commoditisation of legal work etc.

But I think the biggest impact we’ll see though is in the upturn. This time there are many more well educated, ambitious, highly talented people that have been made redundant. Some of these will “rebel” against the old way of doing law, they’ll not go back to working for one of the old firms and they’ll start new firms. There was a wave of small business entrepreneurs that came out of the last dramatic recession, this time those entrepreneurs could end up completely reshaping delivery of legal services. (it may not take the upturn to bring this about, I saw an article today which shows this could be already starting to happen!)

It’ll be interesting to see how the current Lawyer UK 100 and AmLaw 100 keep up! Who’ll do a Microsoft and shift like they did when they turned 180 degree and embraced the internet and who will be the Lotus sitting back complaining that that upstart Microsoft didn’t do things their way and took their business away?

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Legal

Are you ready for the upturn?

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There is so much in the news about the economic turmoil. Clifford Chance, Linklaters, Hammonds making redundancies, we’re questioning the very make up of our firms, Osborne Clarke outsourcing staff, the list goes on and on. Then there’s the commentators all over the media predicting the worst recession since 19xx and our own Prime Minister making a “slip” and claiming we’re in a world depression! What with the weather as well (Brits, we always give a mention to the weather!), you just want to bunker down and hope it goes away quickly, right?

So is now the time to ask whether we’re ready for the upturn?

I say “Yes I think we should” and I think others are starting to give the same answer. Seth Godin this week makes a case for getting some breathing room and being creative at times like this to “change the game”. Lee Bryant of headshift, again this week, puts forward a case for using the recession as an opportunity to introduce web 2.0 into Law Firms.

Now is a time for support departments in law firms to shine, a time to equip the firm for the upturn. While the lawyers work hard to keep the clients and win the business in a difficult market, the support staff can ensure things are ready for when the firm begins to grow again. Because irrespective of all the comment on whether things will get worse or when things will end, one thing is for certain, it will end and there will be an upturn in the economy!

What can we do?

  • For years in the “good times” we’ve wished for a period of consolidation to shore up the foundations. A chance to get those IT systems “sorted”, a chance to really look at costs and get even better deals with suppliers, exploit the the systems we have rather than add more systems, a chance to exploit Knowledge Management and show the value it can really deliver (I’m not a KM practitioner, but read Karen and Toby’s articles), etc
  • It’s a time to look at those destructive technologies. How can we get these into organisations, ready to be exploited when the upturn appears. And not be chasing the pack trying to implement these systems when they are the norm and our firms are growing. Remember some of the new technologies now will be the next equivalent of corporate email (and email will probably be dead!).
  • Time to be wary and look after your remaining staff. Growth will bring churn into your departments, there will be opportunities galore for people as other firms grow and need to move beyond the skeleton staff they’ve had to operate with under current times. Your best people will be out the door first if they haven’t been “looked after”.
  • Maybe now it’s time to use any downsizing to re-organise and refresh your teams, mould them for what’s to come. Not for what is now!

But basically get out of the bunker, be creative and get ready! The upturn is coming!

Update: I wrote this Wednesday evening and scheduled it to post on the blog today. Every day though I realise getting back in the bunker is so easy to do, today I find a relative is facing redundancy and all those questions and worry creep back! I still stand by the post though, the upturn will come and for those of use fortunate to keep our jobs the time to look ahead and get creative is now!

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General Legal IT

Efficiency and productivity cont.

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Following on from my post yesterday I caught this post from Thoughtful Legal Management. Overall I think David’s and my sentiments are similar, we are both looking at how IT can help efficiency or productivity.

I can’t help pull up on the point within the post though “ Their IT technicians, I suspect, have set up their system in a matter that does not fully meet the business needs of the law firm and the staff and lawyers working there.”

This is where we (the collective we, IT and the lawyers) are going wrong, the lawyers think IT need to see the world through the same lens as them and IT wish that the level of IT knowledge in the lawyers were higher. For IT to work we need both sides to understand each other.

Much as the media would like to portray the geek in the basement advocating it should be “turned off and on again” we’re not all like that. I like to think that although I’m in IT I do know a bit about how lawyers work just like when I worked in the utility industry I took time to understand the requirements of that business. But I know I’ve still plenty to learn, but I see it as my responsibility to do so.

Back to David’s post though, I’d like to see “Microsoft to focus on productivity from the ground-up; by paying more attention to the smaller business user rather than the consumer market” too and in my opinion they should start to learn the mantra “less is more”!

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