Reshaping Business Models within SME Law Firms William Robins - PowerPoint PPT Presentation

Reshaping Business Models within SME Law Firms William Robins – Operations Director Keystone Law 18/05/2016 1 www.keystonelaw.co.uk

How are we all doing? Business Good? • You report you are feeling optimistic 18/05/2016 2 www.keystonelaw.co.uk

But change is coming • How will you deal with change • Will it blow you away? 18/05/2016 3 www.keystonelaw.co.uk

What’s the problem? • Rise of millennials • Change in client expectations • Increasing costs and falling revenues • TECHNOLOGY 18/05/2016 4 www.keystonelaw.co.uk

Rise of millennials • Carrot and stick no longer works • Millenials have been brought up differently 18/05/2016 5 www.keystonelaw.co.uk

Change in client expectations • They have • Processised • Internationalised • Embraced technology and remote working • Why haven’t you? 18/05/2016 6 www.keystonelaw.co.uk

Increasing costs and falling revenues Increasing costs • Rents up • Rates up • Wages up • Knowhow suppliers up • Technology suppliers up 18/05/2016 7 www.keystonelaw.co.uk

Increasing costs and falling revenues Falling revenues • Clients expect to pay less • Clients can and do shop around • The big law firms are coming down the value chain • Non law firms coming up the value chain 18/05/2016 8 www.keystonelaw.co.uk

Technology • Document automation • Personal digital assistants • Legal apps • They are eating our lunch 18/05/2016 9 www.keystonelaw.co.uk

Technology – Good news or bad? Good News • Technology can help us to be more efficient • Technology will allow us to offer services at lower rates and increase both the market and the addressable market • Technology can help us to reduce cost and increase margins • But... 18/05/2016 10 www.keystonelaw.co.uk

Technology – Good news or bad? Bad News • What are legal services? - Knowing and understanding the law - Using the law to solve problems - Advising clients • Can computers really do this? 18/05/2016 11 www.keystonelaw.co.uk

How have computers changed our lives outside the law? • The Internet – The connected world • Search – redistribution of knowledge and easy retrieval of knowledge • AI/Bigdata – customers who bought… • Robots replacing human labour - Drones pick stock in the logistics business - Self check outs - 3D printing (manufacturing at home) - Self driving taxis 18/05/2016 12 www.keystonelaw.co.uk

The effect of computers outside law McKinsey Global 2016 2m industrial robots 2025 75m industrial robots But that’s just industry, what about professional services? 18/05/2016 13 www.keystonelaw.co.uk

The effect of computers outside law • 2011 Watson won Jeopardy! • 2016 Watson technology being used in medicine • Faster and more accurate diagnoses • Able to do 20 man years of work in ten minutes (1 million x faster than us) • Ok, but what about law? 18/05/2016 14 www.keystonelaw.co.uk

Preparing for the future • Change is certain • Game changing technology is still a few years away • Effects of technology will be wide spread • By 2035 47% of all jobs will have disappeared in the UK, 77% in China and 83% in Ethiopia (University of Oxford) • But beware the boiled frog! 18/05/2016 15 www.keystonelaw.co.uk

Artificial Intelligence • Our distorted view of AI • The gulf between Einstein and the village idiot • The status quo • The rate of improvement 18/05/2016 16 www.keystonelaw.co.uk

Artificial Intelligence • Einstein and Village idiots not so far apart • AI improving rapidly • Moore’s Law • Kurtzweil's ‘The Singularity’…. 18/05/2016 17 www.keystonelaw.co.uk

The effect of computers inside law • Riverview – digital legal assistant “The Advisory and Smart Assistants we launch later this year will do lower level legal work and provide suggestions for what advice should be given.” - Karl Chapman • Epoq – contract drafting • Rocket Lawyer/Legal Zoom • Ross AI • Keystone Law 18/05/2016 18 www.keystonelaw.co.uk

The effect of computers inside law 18/05/2016 19 www.keystonelaw.co.uk

The effect of computers inside law • What’s the connection? • These companies are using technology for competitive advantage • Your firm needs to be doing this • But how? 18/05/2016 20 www.keystonelaw.co.uk

Preparing for the future • Which route to take? • Full AI • Craftspeople model • Paralegal model 18/05/2016 21 www.keystonelaw.co.uk

Preparing for the future • Where do you start? • By looking at yourself • (Or get an outsider to take a look?) • What’s your market (geography/service/sector/price)? • What do you offer clients? • W hat’s your competitive advantage? • What opportunities can you address? • What problems do you have? 18/05/2016 22 www.keystonelaw.co.uk

Preparing for the future • Where do you want to be in the market? • Ceasing part(s) of your practice • Improving part(s) of your practice • No change 18/05/2016 23 www.keystonelaw.co.uk

Time to act Ceasing part(s) of your practice • No shame • High water mark? • Your market might have changed • Use funds to invest in what you do best 18/05/2016 24 www.keystonelaw.co.uk

Preparing for the future Improving part(s) of your practice • Gradually, start changing now to - Increase agility - Increase efficiency - Change remuneration models - Change focus - Change culture - Change working practices (e.g. remote working) 18/05/2016 25 www.keystonelaw.co.uk

Preparing for the future • How to improve - agility – move to variable costs, which includes… - changing remuneration models, don’t forget - culture - working practices (e.g. remote working) - efficiency – delegate/processise/outsource/invest in IT => re-price? - focus – high value, bespoke, empathy, use the IT 18/05/2016 26 www.keystonelaw.co.uk

A last word on… • IT • Get the right IT - A challenge in a changing market - Employ an IT consultant/director and LISTEN to what he says 18/05/2016 27 www.keystonelaw.co.uk

A last word on… • Remote working • Reduce costs (lease and rates) • Less commuting • Less politics • Happier colleagues (remember happiness?) • Continuity of service • Portfolio career • Access to millennials and disenfranchised workers 18/05/2016 28 www.keystonelaw.co.uk

Remote Working How to implement remote working • Plan • It’s not just about IT • What’s the culture of your business? • Who should be able to work remotely? • How will IT facilitate this? 18/05/2016 29 www.keystonelaw.co.uk

Questions William.robins@keystonelaw.co.uk @KeystoneOps 18/05/2016 30 www.keystonelaw.co.uk