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
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