New Directions in Legal Services

New Directions in Legal Services examines the fast pace of change in the legal services sector, driven in part by new technologies, and considers what the future holds.

Legal services providers today need to innovate in their business models, delivery methods, and moreover in their value propositions in order to compete against competition coming in all shapes and sizes (and from unexpected quarters).New Directions in Legal Services examines the fast pace of change in the legal services sector, driven in part by new technologies, and considers what the future holds.We also look at some examples of new business models and service delivery methods that are disrupting the market, and the new approaches to pricing and profitability that are necessary to support new ways of working and delivering legal services.With research, insight and real world case studies from law firm leaders, NewLaw pioneers, in-house counsels, academics, consultants, and legal futurists New Directions in Legal Services covers:The impact of technology on the traditional law firm business modelNew business models altering the legal services landscape, driven by AI and emerging technologiesMoving beyond AI and CC, what is the next big thing for legal services?How Design Thinking can be applied to legal service designThe evolving legal talent poolRethinking pricing and profitability to support new ways of delivering legal servicesUmbrella models for law firmsUnbundling legal services and new options for in-house teamsLaw firm-client collaboration through the managed legal networkBusiness model innovation - Implementing and sustaining changeThe message to the legal sector could not be clearer: innovate or die. New Directions in Legal Services clearly outlines how individuals, law firms, and legal departments are accepting the challenge and are innovating alongside the New Law service providers that have taken root in the industry to provide a growing array of options for lawyers and clients

Executive summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .viiAbout the authors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xiChapter 1: Why the developments to the competence divide (and notthe digital divide) will make or break the law fi rm business model . . . . . . . . . .1By Emma Ziercke, research assistant, and Markus Hartung, director, at theBucerius Center on the Legal Profession (CLP) at the Bucerius Law SchoolFrom information asymmetry to the closing competence divide:An elusive aspect of the law fi rm paradigm . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1How legal technology will change the business of law . . . . . . . . . . . . . . . . . . . 3Is legal technology really changing the law fi rm model? . . . . . . . . . . . . . . . . . 5Information equilibrium, but in a dynamic market? . . . . . . . . . . . . . . . . . . . . . 9Chapter 2: AI and fi ve new business models for legal services . . . . . . . . . . . .11By Joanna Goodman, writer, editor, and IT columnist for the Law SocietyGazette and the Guardian Media NetworkNew business model 1: The lawtech start-up . . . . . . . . . . . . . . . . . . . . . . . . . . . 13New business model 2: The legal chatbot . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15New business model 3: Online legal advice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17New business model 4: The legal platform as a service . . . . . . . . . . . . . . . . . 19New business model 5: The legal engineer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21Chapter 3: What is the next big thing for legal services? . . . . . . . . . . . . . . . . 23By Chrissie Lightfoot, CEO of Robot Lawyer LISA and CEO of EntrepreneurLawyer LimitedSuspicions and reinventions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24From AlphaGo to AlphaLaw? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24Four aspects of legal services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26Time equals money . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27ContentsNew-Directions_RO_2017.indd iii ew-Directions_RO_2017.indd iii 27/07/2017 13:23 7/07/2017 13:23Evolving legal artifi cial intelligence from carthorse to racehorse . . . . . . . . . 28Inviolable lawyers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29Paper-pusher pushout . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30Renovating private practice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31Chapter 4: The missing ‘E’ in legal innovation . . . . . . . . . . . . . . . . . . . . . . . . . . 33By John Alber, futurist at the International Legal Technology AssociationInnovation talk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33Apple innovation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34Design Thinking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36A new model? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38Chapter 5: The evolving legal talent pool . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41By Debbie Epstein Henry, founder of DEH Consulting, Speaking, WritingChapter 6: Rethinking pricing and profi tability . . . . . . . . . . . . . . . . . . . . . . . . . 45By Michael Roster, co-chair of the Association of Corporate Counsel’s ValueChallenge steering committee; previously managing partner of Morrison &Foerster’s Los Angeles offi ce and GC of Stanford UniversityThe historical problem . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45Use of market data to determine pricing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46Matrix budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47The three Es . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48Multi-disciplinary practices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49Chapter 7: A new business model for a sustainable future . . . . . . . . . . . . . . 51By Martyn Caplan, founder and director of Lawyers Inc.The traditional legal model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51Potential threats to the fi nancial stability and future of a legal practice . . 52Creating a different business model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55It’s good to talk – and we will listen . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57Chapter 8: Evolving business models in legal services . . . . . . . . . . . . . . . . . . . 59By Janvi Patel, executive chairwoman and founder of HaleburyTraditional law fi rms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59The in-house model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60Unbundling legal services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63Our evolution – The Halebury model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64Next stage of the evolution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67New-Directions_RO_2017.indd iv ew-Directions_RO_2017.indd iv 27/07/2017 13:23 7/07/2017 13:23New Directions in Legal ServicesChapter 9: Law fi rm-client collaboration through the managed legalnetwork . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69By Richard Tapp, company secretary and director of legal servicesCarillion plc and Fleur Kitchingman, senior vice president of legal andcorporate secretary, Carillion CanadaIntroduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69Agenda for change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70Our aspirations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71Our processes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71Reflections on collaboration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76Chapter 10: Business model innovation – Implementing andsustaining change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77By Mike Polson, director of Ashurst Advance and co-head of innovation atAshurst, and Christie Guimond, R&D strategy manager at Ashurst AdvanceDrivers for change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77Traditional Big Law vs Evolving Big Law models . . . . . . . . . . . . . . . . . . . . . . . . . 78The evolving business model in practice – Ashurst Advance . . . . . . . . . . . . . . . . . . 80Implementing and sustaining change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81Parallels from the past? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84