New Directions in Legal Services (eBook)

Executive summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .vii
About the authors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xi
Chapter 1: Why the developments to the competence divide (and not
the digital divide) will make or break the law fi rm business model . . . . . . . . . .1
By Emma Ziercke, research assistant, and Markus Hartung, director, at the
Bucerius Center on the Legal Profession (CLP) at the Bucerius Law School
From information asymmetry to the closing competence divide:
An elusive aspect of the law fi rm paradigm . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
How legal technology will change the business of law . . . . . . . . . . . . . . . . . . . 3
Is legal technology really changing the law fi rm model? . . . . . . . . . . . . . . . . . 5
Information equilibrium, but in a dynamic market? . . . . . . . . . . . . . . . . . . . . . 9
Chapter 2: AI and fi ve new business models for legal services . . . . . . . . . . . .11
By Joanna Goodman, writer, editor, and IT columnist for the Law Society
Gazette and the Guardian Media Network
New business model 1: The lawtech start-up . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
New business model 2: The legal chatbot . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
New business model 3: Online legal advice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
New business model 4: The legal platform as a service . . . . . . . . . . . . . . . . . 19
New business model 5: The legal engineer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Chapter 3: What is the next big thing for legal services? . . . . . . . . . . . . . . . . 23
By Chrissie Lightfoot, CEO of Robot Lawyer LISA and CEO of Entrepreneur
Lawyer Limited
Suspicions and reinventions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
From AlphaGo to AlphaLaw? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Four aspects of legal services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Time equals money . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Contents
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Evolving legal artifi cial intelligence from carthorse to racehorse . . . . . . . . . 28
Inviolable lawyers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Paper-pusher pushout . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Renovating private practice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Chapter 4: The missing ‘E’ in legal innovation . . . . . . . . . . . . . . . . . . . . . . . . . . 33
By John Alber, futurist at the International Legal Technology Association
Innovation talk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Apple innovation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
Design Thinking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
A new model? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
Chapter 5: The evolving legal talent pool . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
By Debbie Epstein Henry, founder of DEH Consulting, Speaking, Writing
Chapter 6: Rethinking pricing and profi tability . . . . . . . . . . . . . . . . . . . . . . . . . 45
By Michael Roster, co-chair of the Association of Corporate Counsel’s Value
Challenge steering committee; previously managing partner of Morrison &
Foerster’s Los Angeles offi ce and GC of Stanford University
The historical problem . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
Use of market data to determine pricing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
Matrix budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
The three Es . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
Multi-disciplinary practices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
Chapter 7: A new business model for a sustainable future . . . . . . . . . . . . . . 51
By Martyn Caplan, founder and director of Lawyers Inc.
The traditional legal model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
Potential threats to the fi nancial stability and future of a legal practice . . 52
Creating a different business model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
It’s good to talk – and we will listen . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
Chapter 8: Evolving business models in legal services . . . . . . . . . . . . . . . . . . . 59
By Janvi Patel, executive chairwoman and founder of Halebury
Traditional law fi rms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
The in-house model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
Unbundling legal services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
Our evolution – The Halebury model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
Next stage of the evolution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66
Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
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New Directions in Legal Services
Chapter 9: Law fi rm-client collaboration through the managed legal
network . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
By Richard Tapp, company secretary and director of legal services,
Carillion plc and Fleur Kitchingman, senior vice president of legal and
corporate secretary, Carillion Canada
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
Agenda for change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
Our aspirations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
Our processes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
Reflections on collaboration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
Chapter 10: Business model innovation – Implementing and
sustaining change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
By Mike Polson, director of Ashurst Advance and co-head of innovation at
Ashurst, and Christie Guimond, R&D strategy manager at Ashurst Advance
Drivers for change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
Traditional Big Law vs Evolving Big Law models . . . . . . . . . . . . . . . . . . . . . . . . . 78
The evolving business model in practice – Ashurst Advance . . . . . . . . . . . . . . . . . . 80
Implementing and sustaining change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81
Parallels from the past? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84