Infographic SmartLaw and the legal landscape-round5 · technology, so making smart investments is...
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The average law firm loses 15% of their top clients each year 60% of large firms now offer client portals to improve communication and service SmartLaw and the legal landscape The evolution of the industry has created new demands and client expectations. Law firms that practice SmartLaw have turned their attention to five core areas. Investment in client relationships, culture change, technology, data and process have started to pay off, but the potential of this practice is still being discovered. Client-focused firms win more business. Clients are adapting to the new speed of business and they want more than simple legal expertise from their external counsel. Clients are looking for convenience, transparency, collaboration and efficiency. And increasingly, they are willing to walk away from existing relationships with outside counsel to seek out more innovative firms. 15% of clients said they received good service from their lawyers 40% of lawyers believe they’re good at client service... 80% 66% of corporate law departments consider it a high or medium priority to allocate more work to firms that proactively show their value 66% “Clients don’t need just advice…They need processes, automation, project management, risk management, predictability, productivity and self-service tools, data analysis, fingertip access to insights, more control of their matters, as well as legal knowledge and advice.” - Dan Wright, Osborne Clarke Solutions, SmartLaw 2.0 60% ...while only A culture of change nurtures innovation. Leading law firms understand that the shift in client expectations requires them to think differently and embrace change. Firms that encourage their lawyers to think outside of the traditional law firm model are finding new strategies that pay dividends. Technology empowers better legal service delivery Technology gives lawyers and law firms the tools to meet client demand for more transparency, collaboration, efficiency and value without adding headcount. The market is saturated with legal technology, so making smart investments is more important than ever. Technology empowers better legal service delivery. Technology gives lawyers and law firms the tools to meet client demand for more transparency, collaboration, efficiency and value without adding headcount. The market is saturated with legal technology, so making smart investments is more important than ever. 77% of lawyers believe that innovation is important to the firm’s long-term growth and prosperity Herbert Smith Freehills empowers employees with 10 days per year to focus on innovation projects “We put off the hard work of changing behavior and reengineering process because we hope, in vain, that some technology will come along to make it easy.” - D. Casey Flaherty, SmartLaw 2.0 RSG consulting identified empowering visionaries as one of four key factors to award-winning innovation 77% 10 days empowering visionaries Investments in legal tech 2018: $1 billion over 40 deals Investments in legal tech 2017: $233 million over 61 deals 57% 68% 94% 57% of firms budget for technology... but 68% don’t believe they are making the most of their investments 94% of lawyers believe that technology is making them more efficient “For those firms that don’t start their transformation journey very soon, profitability will slide inexorably, and lack of succession will lead to extinction.” - George Beaton, beaton, SmartLaw 2.0 Legal data is valuable. The rise of legal technology and artificial intelligence has reduced the cost and level of effort required to collect and analyse valuable legal data. Firms are now leveraging their data to improve risk management, efficiency, forecasting and budgeting. “At a time when there is an increasing focus on ‘big data’ outside of our industry, we’re lagging severely in our use of data and missing opportunities to create significant value and modernise services.” - Andrew Baker, HBR consulting, SmartLaw 2.0 70% 44% 70% of lawyers believe that analytics has given their firm a competitive edge 44% of firms are using AI and 57% believe that AI will lower the cost of legal services in the next 5 years 57% $362 million of investment in AI legal tech in 2018 $362 m Process improvements pay off. Process improvement has a direct impact on efficiency, which in turn enhances client loyalty and firm profitability. From automating tasks and document assembly to embracing legal project management, a focus on firm-wide process improvement results in better realisation, consistency, data collection and more. “Fundamentally, firms can’t keep reinventing the wheel every time they undertake a piece of work, they must continuously improve on the way it has been done before. This is why a focus on process is so crucial for law firms to thrive in the future.” - Stuart Barr, HighQ, SmartLaw 2.0 62% of legal project management users reported more productive relationships with clients Lawyers report spending 60% of their time drafting documents The SmartLaw lifecycle Prepare for the future with a focus on SmartLaw that supports client engagement and business growth. 62% 60% LawGeex. LegalTech hits $1 billion investment as lawyers embrace automation. (2018, December 05). Retrieved from https://blog.lawgeex.com/legaltech-hits-1-billion-in- vestment-as-lawyers-embrace-automation/ Shields, A. (2019, January 09). TECHREPORT 2018: Marketing. Retrieved March 15, 2019, from https://www.lawtechnologytoday.org/2019/01/techreport-2018-marketing/ LawWeek Intelligence. (n.d.). Legal Technology Report 2018. Retrieved from https://imag- es.law.com/media/legalweek/LWI_Fulcrum_Report_Aug2018/mobile/index.html Bloomberg Law. (n.d.). Analytics Give Law Firms the Competitive Edge. Retrieved from https://biglawbusiness.com/analytics-give-law-firms-the-competitive-edge Association of Legal Administrators. (n.d.). 7 Steps to Better Profitability. Retrieved from http://gimbalcanada.com/wp-content/uploads/2018/08/White-Pa- per-2018-Profitability-FINAL.pdf Thomson Reuters. (n.d.). Legal Document Management. Retrieved March 15, 2019, from https://legalsolutions.thomsonreuters.co.uk/content/dam/open- web/documents/pdf/uki-legal-solutions/brochures/document-automation-buyers-guide.pdf Sources: Rynowecer, M. (2015, August 26). Your Law Firm Is Leaking Clients. Retrieved from https://www.bticonsulting.com/themadclientist/2015/8/26/your-law-firm-is-leaking-clients Lexisnexis. (2017). Amplifying the voice of the client in law firms. Retrieved from http://www.lexisnexis.co.uk/pdf/3799_LN_VOTC_Online.pdf Thomson Reuters. (2018). State of Legal Technology. Retrieved March 15, 2019, from http://www.elite.com/documents/2018/05/2018-state-legal-technology-report.pdf/ Reach, C. S. (2018, October 29). TECHREPORT 2018: Budgeting and Planning. Retrieved from https://www.lawtechnologytoday.org/2018/10/techreport-2018-budgeting-and-planning/ Parnell, D. J. (2019, January 23). The State of Law Firm Innovation 2018. Retrieved from https://www.law.com/2019/01/23/the-state-of-law-firm-innova- tion-2018/?slreturn=20190211162203 Herbert Smith Freehills. (2019, February 13). Herbert Smith Freehills Rolls Out 10-Days Per-Year to Work on Innovation Projects. Retrieved from https://www.herbertsmithfree- hills.com/news/herbert-smith-free-hills-rolls-out-global-initiative-giving-staff-10-days-per- year-to-work-on Client demand requires innovation within the firm Innovation is powered by technology Technology captures and analyses data Data reveals process improvement opportunities Improved processes create efficiency and add value for clients highq.com What do lawyers and law firms need to do to prepare for the future? Download the ebook To explore the new future of law, we posed the question to experts from across the legal industry. They offered advice that manages to be both practical and philosophical.
Transcript of Infographic SmartLaw and the legal landscape-round5 · technology, so making smart investments is...
The average law firm loses 15% of their top clients
each year
60% of large firms now offerclient portals to improve
communication and service
SmartLaw and the legal landscapeThe evolution of the industry has created new demands and client expectations.
Law firms that practice SmartLaw have turned their attention to five core areas. Investment in client relationships, culture change, technology, data and process have
started to pay off, but the potential of this practice is still being discovered.
Client-focused firms win more business.Clients are adapting to the new speed of business and they want more than simple legal expertise from their external counsel. Clients are looking for convenience, transparency,
collaboration and efficiency. And increasingly, they are willing to walk away from existing relationships with outside counsel to seek out more innovative firms.
15%
of clientssaid they received
good servicefrom their lawyers
40%of lawyers
believe they’regood at
client service...
80%
66% of corporate law departments consider it a high or medium priority to allocate more work to firms that proactively show their value
66%
“Clients don’t need just advice…They need processes, automation,project management, risk management, predictability, productivity and self-service tools, data analysis, fingertip access to insights, more control
of their matters, as well as legal knowledge and advice.”
- Dan Wright, Osborne Clarke Solutions, SmartLaw 2.0
60%
...while only
A culture of change nurtures innovation.Leading law firms understand that the shift in client expectations requires them to think differently and embrace change. Firms that encourage their lawyers to think outside of
the traditional law firm model are finding new strategies that pay dividends.
Technology empowers better legal service deliveryTechnology gives lawyers and law firms the tools to meet client demand for more transparency,
collaboration, efficiency and value without adding headcount. The market is saturated with legal technology, so making smart investments is more important than ever.
Technology empowers better legal service delivery.Technology gives lawyers and law firms the tools to meet client demand for more transparency,
collaboration, efficiency and value without adding headcount. The market is saturated with legal technology, so making smart investments is more important than ever.
77% of lawyers believe that innovation is important to
the firm’s long-term growth and prosperity
Herbert Smith Freehillsempowers employees with 10 days per year to focus
on innovation projects
“We put off the hard work of changing behavior and reengineering process because we hope, in vain, that some technology will come
along to make it easy.”
- D. Casey Flaherty, SmartLaw 2.0
RSG consulting identified empowering visionaries as one of four key factors to
award-winning innovation
77% 10 daysempoweringvisionaries
Investments inlegal tech 2018:
$1 billionover 40 deals
Investments inlegal tech 2017:
$233 millionover 61 deals
57%
68% 94%
57% of firms budget for
technology...
but 68% don’t believe they are making the most
of their investments
94% of lawyers believe that technology is making
them more efficient
“For those firms that don’t start their transformation journeyvery soon, profitability will slide inexorably, and lack of succession
will lead to extinction.”
- George Beaton, beaton, SmartLaw 2.0
Legal data is valuable.The rise of legal technology and artificial intelligence has reduced the cost and level of
effort required to collect and analyse valuable legal data. Firms are now leveraging their data to improve risk management, efficiency, forecasting and budgeting.
“At a time when there is an increasing focus on ‘big data’ outside of our industry, we’re lagging severely in our use of data and missing opportunities to create significant value and modernise services.”
- Andrew Baker, HBR consulting, SmartLaw 2.0
70%44%
70% of lawyers believe that analytics has given their firm a
competitive edge
44% of firms are using AI and 57% believe that AI will lower the cost of
legal services in the next 5 years
57%
$362 million of investment in AI legal tech in 2018
$362 m
Process improvements pay off.Process improvement has a direct impact on efficiency, which in turn enhances client
loyalty and firm profitability. From automating tasks and document assembly to embracing legal project management, a focus on firm-wide process improvement results
in better realisation, consistency, data collection and more.
“Fundamentally, firms can’t keep reinventing the wheel every time they undertake a piece of work, they must continuously improve on the way it has been done before.
This is why a focus on process is so crucial for law firms to thrive in the future.”
- Stuart Barr, HighQ, SmartLaw 2.0
62% of legal project management users reported more
productive relationships with clients
Lawyers report spending 60% of their time
drafting documents
The SmartLaw lifecyclePrepare for the future with a focus on SmartLaw that supports client
engagement and business growth.
62% 60%
LawGeex. LegalTech hits $1 billion investment as lawyers embrace automation. (2018, December 05). Retrieved from https://blog.lawgeex.com/legaltech-hits-1-billion-in-vestment-as-lawyers-embrace-automation/
Shields, A. (2019, January 09). TECHREPORT 2018: Marketing. Retrieved March 15, 2019, from https://www.lawtechnologytoday.org/2019/01/techreport-2018-marketing/
LawWeek Intelligence. (n.d.). Legal Technology Report 2018. Retrieved from https://imag-es.law.com/media/legalweek/LWI_Fulcrum_Report_Aug2018/mobile/index.html
Bloomberg Law. (n.d.). Analytics Give Law Firms the Competitive Edge. Retrieved from https://biglawbusiness.com/analytics-give-law-firms-the-competitive-edge
Association of Legal Administrators. (n.d.). 7 Steps to Better Profitability. Retrieved from http://gimbalcanada.com/wp-content/uploads/2018/08/White-Pa-per-2018-Profitability-FINAL.pdf
Thomson Reuters. (n.d.). Legal Document Management. Retrieved March 15, 2019, from https://legalsolutions.thomsonreuters.co.uk/content/dam/open-web/documents/pdf/uki-legal-solutions/brochures/document-automation-buyers-guide.pdf
Sources:
Rynowecer, M. (2015, August 26). Your Law Firm Is Leaking Clients. Retrieved from https://www.bticonsulting.com/themadclientist/2015/8/26/your-law-firm-is-leaking-clients
Lexisnexis. (2017). Amplifying the voice of the client in law firms. Retrieved from http://www.lexisnexis.co.uk/pdf/3799_LN_VOTC_Online.pdf
Thomson Reuters. (2018). State of Legal Technology. Retrieved March 15, 2019, from http://www.elite.com/documents/2018/05/2018-state-legal-technology-report.pdf/
Reach, C. S. (2018, October 29). TECHREPORT 2018: Budgeting and Planning. Retrieved from https://www.lawtechnologytoday.org/2018/10/techreport-2018-budgeting-and-planning/
Parnell, D. J. (2019, January 23). The State of Law Firm Innovation 2018. Retrieved from https://www.law.com/2019/01/23/the-state-of-law-firm-innova-tion-2018/?slreturn=20190211162203
Herbert Smith Freehills. (2019, February 13). Herbert Smith Freehills Rolls Out 10-Days Per-Year to Work on Innovation Projects. Retrieved from https://www.herbertsmithfree-hills.com/news/herbert-smith-free-hills-rolls-out-global-initiative-giving-staff-10-days-per-year-to-work-on
Client demand requires innovation
within the firm
Innovationis powered by
technology
Technologycaptures andanalyses data
Data reveals processimprovementopportunities
Improved processescreate efficiency andadd value for clients
highq.com
What do lawyers and law firms need to do to prepare for the future?
Download the ebook
To explore the new future of law, we posed the question to experts from across the legal industry. They offered advice that manages to be both practical and philosophical.
