The Legal Sector 2011

- Your turn for deregulation- Prepare for change

- Winners and losers?

Dale Bostock

Relationship Director,

Lloyds TSB Commercial

April 2011

Legal Services Act 2007

Economic recession

Civil legal aid facing ‘devastation’ after £154m cutThursday 18 November 2010 by James Dean

Lawyers warned this week that civil legal aid services could be devastated by

government plans that would see the total annual income of legal aid providers slashed by up to £154m.The proposed reforms would cut state help to all but the very poorest, the Law Society

warned.Nearly 550,000 cases a year – including 265,000 family cases – will no longer be eligible for legal aid, and fees in civil and family cases will be cut by 10% across the board, the Ministry of Justice proposed in its consultation paper published on Monday.

£ Client Account Interest

•O.5 % base rate

• MoJ consultation:

Skimming?

The perfect storm

The Legal Practice in 2011

Who?and yet…

IT savvy?

What do they have in common?

Legal Firm Partner

All born in 1953

Average age of a partner in a law firm :

58

Tony Blair, Mark Thatcher, Chakka Khan, Paul Mariner

Succession Planning

Walking wounded EnlightenedUndecided?

Apathetic?

In denial?

Catalysts

Deregulation Technology

Globalisation

Transactional firms

Process driven

New entrants

Corporate

London

Provincial

High St

Professional Indemnity Insurance

large

small

young old

succession

disorganised

committees

frustration

management

disconnect

corporate

Internal politics

It’s not too late…

You can defend your position

Strategies

This could cost you your independence

Sales

is not a dirty word

All hands on deck!

Segment your market – create micro markets

Create brand awareness – then brand loyalty

‘the place you occupy in the consciousness of your constituents’

Brand

ARE YOU READY FOR THE NEW CONVEYANCING QUALITY SCHEME?

The Conveyancing Quality Scheme will provide a recognised quality standard for residential conveyancing practices. Achievement

of membership will establish a level of credibility for member firms with stakeholders (regulators, lenders, insurers and consumers)

based upon: the integrity of the Senior Responsible Officer and other key conveyancing staff. the firm's adherence to good practice

management standards. adherence to prudent and efficient conveyancing procedures through the scheme protocol. This scheme

will create a trusted community which will deter fraud - year on year it will drive up standards.

The Scheme is scheduled to start running in April 2011. There is little doubt that the scheme will create a two tiered grouping

of conveyancing solicitors: those with the accreditation and those without. If this scheme turns out to be similar to the Duty

Solicitor Scheme then solicitors' firms who are not members of the scheme can expect to see an enormous dimunition in

work.

clients - customers

What does your ideal client look like?

Optimise IT

To summarise:

8 strategies

to defend your independence

1. Be innovative in your business development

– create a ‘sales culture’

1. Segment

– create micro-markets and niches

3. Create a brand

– live the brand values

4. Join the flight to quality

5. Differentiate between clients and customers

– create packages of services

6. Think like a client (not a lawyer)

7. Make the most of IT

– lower production costs, become easier to deal with, find new customers & clients

8. Measure and monitor what you need to manage

- produce and use meaningful management information

Discuss

Decide

Do

Speakers Notes

Dale Bostock April 2011

Backcloth

Legal practice 2011

Strategies

Catalysts to change

Legal Sector

Legal Services Act

FraudPII

Recession

Property market

LSC funding

Client Account

Interest

Skimming?

Perfect Storm

10,000 firms

85% < 4 partners

Average age of partner 58

Reputation vs profit And yet Brand awareness Negligible

70% new entrants = women

Change Slow to act

Paralysed By indecision

Stepped response Staff morale Low

Ostrich

Sales

Innovate

Quality

Clients vs Customers

IT

Business Planning

LSA6th October 2011

PIIARP = 300

Run off costs6 years

Succession

Stress

Politics

Speakers Notes

Dale Bostock April 2011

Ostrich

Innovate

Quality

Clients vs Customers

IT

Business Planning

Sales

S t r a t e g i e s

SegmentSpecialise

Niche

Brand CreateAwareness

Loyalty

Solicitor

Promote

SRA regulated

Qualified

Practice cert

Assurance

Reserved

Advocacy

Litigation

Reserved instrument

Probate

Notary

Oaths

Lexcel

Structure Policies

Strategy Marketing

Financial mgt

Info mgt Facilities

People

Operational risk mgt

Client care

File / case Mgt

Conveyancing Quality Scheme

IIP

Clients

RelationshipContactType

Frequency

Repeat business

Package value

Ideal ClientLooks like?

CustomersVolume

Commoditisation

Both want

Prompt response

Advice / innovation

Minimise pain

FeedbackSatisfaction

Practice Management

CRMDatabase

WebWebinars

Online AccessDirect Law-15% discount

BudgetingGoal setting

Mgt Information

Fees

Lock-up

Cash generation

By

Loacation

Department

Fee earner

OverheadsDrawingsTax

MonitoringAccountability

Regularity

Not a dirty word

Culture

All Hands On deck

Brains Rent

Knowledge Package

Cross sales InternalTrust

Politics