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

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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


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Reshaping Business Models within SME Law Firms

William Robins – Operations Director Keystone Law

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How are we all doing? Business Good?

  • You report you are feeling optimistic
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But change is coming

  • How will you deal with change
  • Will it blow you away?
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What’s the problem?

  • Rise of millennials
  • Change in client expectations
  • Increasing costs and falling revenues
  • TECHNOLOGY
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Rise of millennials

  • Carrot and stick no longer works
  • Millenials have been brought up differently
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Change in client expectations

  • They have
  • Processised
  • Internationalised
  • Embraced technology and remote working
  • Why haven’t you?
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Increasing costs and falling revenues

Increasing costs

  • Rents up
  • Rates up
  • Wages up
  • Knowhow suppliers up
  • Technology suppliers up
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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
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Technology

  • Document automation
  • Personal digital assistants
  • Legal apps
  • They are eating our lunch
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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...
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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?
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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
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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?

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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?
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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!
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Artificial Intelligence

  • Our distorted view of AI
  • The gulf between Einstein and the village idiot
  • The status quo
  • The rate of improvement
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Artificial Intelligence

  • Einstein and Village idiots not so far apart
  • AI improving rapidly
  • Moore’s Law
  • Kurtzweil's ‘The Singularity’….
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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
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The effect of computers inside law

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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?
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Preparing for the future

  • Which route to take?
  • Full AI
  • Craftspeople model
  • Paralegal model
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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?
  • What’s your competitive advantage?
  • What opportunities can you address?
  • What problems do you have?
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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
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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
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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)
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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
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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
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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
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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?
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Questions

William.robins@keystonelaw.co.uk

@KeystoneOps