New Directions in Legal Services

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 model New business models altering the legal services landscape, driven by AI and emerging technologies Moving beyond AI and CC, what is the next big thing for legal services? How Design Thinking can be applied to legal service design The evolving legal talent pool Rethinking pricing and profitability to support new ways of delivering legal services Umbrella models for law firms Unbundling legal services and new options for in-house teams Law firm-client collaboration through the managed legal network Business model innovation - Implementing and sustaining change The 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

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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 New-Directions_RO_2017.indd iii ew-Directions_RO_2017.indd iii 27/07/2017 13:23 7/07/2017 13:23 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 New…