LinkedIn popular with a majority of solicitors but little use of other social media

A majority – 56% – are on LinkedIn, but no other networking or social media tool is used by a majority.  Most solicitors on LinkedIn and other sites are mainly re-active users rather than pro-active users. In other words, they are more likely to be looking at content on these sites rather than adding content.

Just over a third (36%) say they add content once a week or more but over twice as many (74%) look at content once a week or more.  Another 33% only add content a few times a year.

Free copy of the full report – Use of Social Media and Networking Sites by Solicitors.

An article based on the survey by Core Legal member Caroline Newman, founder and CEO of Lawdacity (www.lawdacity.com ) was published in the New Law Journal in May 2013. Click here for details.

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How the new rules are interpreted and who chooses to play by them and how they are enforced will be of great interest to any law firm with an interest in staying in this, very visible, part of the legal services sector. Especially those High Street law firms that are not part of a collective marketing panel/arrangement or who have a substantial SEO and Google Adwords budget.

The Ministry of Justice has been lobbied hard by the insurance industry. The consequence is regulatory proposals to reduce the fixed recoverable costs for claims up to £10,000 processed from £1,200 down to £500 and for claims valued up to £25,000, fixed costs will be set at £800.

Insurers haven’t had it all their own way as basically they’ve had to bite the hand that feeds (their own).The outlawing of referral fees is one reason why our insurance premiums are unlikely to come down anytime time soon. A ‘no lose’ situation for the insurers, to the detriment of ‘no win, no fee’ for claimants?

Personal injury solicitors’ representatives such as the Association of Personal Injury Lawyers (APIL) made the point that a single, one-off item such as drawing up a Will can often cost more than £500. Insurance companies counter this by saying that the level of skill needed to process most claims does not require the payment of hourly rates of £150.

High Street personal injury solicitors are crying ‘foul’ and highlighting problems that could well arise – reduced access to justice for many, reduced quality of advice and poorer service being three. They also believe that insurers, having been able to set the legislation agenda will then be able to dictate the future processes and prescribe the financial outcomes.

Some of the big brands may still advertise a ‘100% No win, no fee service…’ but they should add ‘… for the claims we take on’. In this new environment ‘risk assessment’ will become very important and personal injury solicitors will need to be very rigorous in deciding which claims they take on, as they will not be able to recover the costs for the cases they may lose.

For these reasons personal injury solicitors will have to start charging a success fee meaning that compensation amounts will drop. This is where the public will start to notice a difference, actually paying for legal advice for accident claims. Not unreasonable in isolation, but it shows where we’ve got to in terms of what consumers have come to expect.

But are the public willing to pay that price or will they hunt around for the best deal? It’s back to those perceptions of value, and defining the key components of that.

If you’d like the whole briefing document in advance of the next installments over the coming weeks please email jon@fedoraconsultancy.co.uk

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2. Legallybetter.co.uk prediction – damage limitation required for the High Street solicitor ‘brand’ in 2013
3. Alternative Business Structures (ABS) – High Street and Specialist Firms Grasp the Opportunities

Founder CoreLegal  member of Jon Hepburn from The Fedora Consultancy takes a look at how the current situation has emerged. This article is extracted from a recently published briefing document on reputation issues affecting law firms and solicitors. 

The public is largely unaware of these changes and will assume the ‘right to claim’ will continue to exist. The concept of ‘No win, no fee’ has become embedded in our national psyche and has altered perceptions about solicitors permanently. So in the world of legal advice on accident claims, what has happened and should anyone feel sorry for solicitors?

The growth of the ‘compensation culture’ arose in the late 1990’s when commercial organisations were encouraged by the Government to become involved in the provision of access to justice in order to reduce the financial burden on the public purse with regard to the provision of Legal Aid.

Since then a combination of incomplete regulation, ‘game-changing’ legislation, major new competitors, new technology and a huge cultural shift in attitudes towards accident claims forever altered the legal services market.

Whilst regulation and legislation struggled to catch up, an entire industry developed for a whole range of service providers profiting from the changes. Insurance companies, personal injury solicitors and doctors amongst others were all able to profit significantly. At the same time questions were being raised about some of the ethical practices and promotional activities being used by some ‘less than scrupulous’ opportunists.

The good times were continuing for claimants and solicitors, but clouds were gathering. Previously there hadn’t been the political will or, for that matter, pressure on insurer’s profit levels (many of the latter are owned by the banks, but the latter in recent years haven’t been in the best of shape financially) – and so it was agreed ‘that something must be done’.

Somebody had to pay for all this, and it wasn’t going to be the insurance industry. The insurers had to settle claims, pay success fees and other costs – not possibly what they’d bargained for back in the late 1990’s. They were however, much keener on raising premium levels, ‘capturing’ claimants and getting a referral fee selling the claims to law firms only too willing to ‘buy business’.

Statistically there is a compelling case that the market needed ‘a correction’. Why? The level of road traffic accident claims in the UK is much higher than accident claims in comparable countries (with similar traffic congestion levels), such as Germany and the Netherlands.

Saturation point has been reached; a hugely competitive accident claim litigation market had developed unlike anywhere else in Europe. On one side of which stand claimant personal injury solicitors; on the other the insurance industry, and it is the latter who seem to have succeeded in the PR battle to get the regulatory changes they were looking for – which are now in the final stages of becoming the new litigation rules for the accident claim industry.

If you’d like the whole briefing document in advance of future installments over the coming weeks please email jon@fedoraconsultancy.co.uk

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1. Legallybetter.co.uk prediction – damage limitation required for the High Street solicitor ‘brand’ in 2013
2. Who’ll Pay For Legal Advice About An Accident Claim?
3. One Missed Day Makes Merger Costs Soar – Broker Claims

Lisa Newton (CoreLegal founder member and founder of Boogles Ltd, the London-based specialist bookkeeping service for solicitors and barristers) offers her latest perspective on what can be the difference between profit and loss for  law firms.

The start of a new financial year is always a good time to review all contracts and terms and conditions. Are you on the right tariff? (phone, utilities) Are you subscribed to products / services which you don’t actually use? (magazines, info sites).

The key thing to remember is that it’s the pennies, which make the pounds. And often, we overlook the small costs, but when combined, they add up to BIG costs. It’s not about being dramatic and making people redundant, or counting the paperclips, but just periodically reviewing every single cost and asking yourself – do we really need it?

• Is it necessary? What value is it adding? Are we on the right purchasing level?
• And if we need it, can we negotiate a better deal? Is there an alternative?

FINDING VALUE

Sometimes, you might not get a CHEAPER deal, but you might get more value. There was one client who had a telephone answering service for £50 per month, they got 30 calls answered, but when they swapped to an alternative service provider, they got 50 calls answered for the £50. And because their average number of calls per month was around the 40 mark, they saved money by the fact that the £50 covered them for their needs. And instead of trying to keep to a 30 calls limit, they had the flexibility for knowing that they were more or less covered, and they could budget on £50 as being more or less fixed.

Some businesses miss the lesson. They’re busy being busy. They just want to sell more. They don’t care about doing a review. But if they just stopped, and analysed the situation for a few hours, just even once a year – they’d probably identify a few cost savings that would make spending the time to take a look at this kind of thing more than worthwhile.

Look for things that add cost and not value.

Likewise, as a solicitor, your time is your most precious asset. Are they some false economies happening in your business? Are you trying to do everything yourself e.g. answer the phones or divert to your mobile, when if you spent a few pounds, you’d actually be more productive, save yourself from worry and free up your time to do something better for your business ?

It’s a fine balance, but these are the types of things you that should review periodically. Think for a minute – what tasks take you ages? What do you dread doing and always put off? (Just the brain energy and time spent THINKING about doing a task, let alone motivating yourself to actually get the task DONE can waste a lot of time).

What could you outsource? For example are you using your Saturday afternoons to catch up with your paperwork? Why not let a bookkeeper take care of it, and give yourself a break?

Who could you have on your team who can help you look out for your best interests?

• Do you want to spend hours scouring the market for the best deal on ‘insurance’? Are you confident you’re getting good value for money? Could you get a quote (costs you nothing) and let that broker take the legwork from you?
• The thing with running a small business, is that it all hinges on you. And whilst you can operate on all four cylinders for a while, after some time, the pressure will start to take its toll. Self employed people have to juggle many things, and think about lots of different aspects of the business that after a time, one can become fatigued.

So back to the weight loss analogy…

it’s not about being anorexic to shed the weight – this would be unhealthy. As would going to the gym for 3 hours a day and becoming a fitness freak… a business, which is fighting the flab, has the same issues. So starving it of resources and cutting off everything will cause difficulties. And going over the top with everything is taking it to the other extreme, so a levelled approach is best.

And again, just like in fitness, coaching plays an important role. If you needed a coach or help with just putting it all together and finding that balance in your business, then via CoreLegal we have partners who specialise in exactly this.

The important thing is that you just aim to keep your business lean and trim at all times. Don’t let the excess unnecessary costs pile on. And just keep monitoring the expenses column because these items tend to creep on when we’re not paying attention. So make sure you pay attention to the costs, or get someone on your team who will do this for you.

Find out more about Boogles’ specialist bookkeeping services for solicitors at http://www.booglesltd.com/ or call 020 3371 8894

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3. Outsourcing for Smaller Law Firms: Core Legal White Paper – Part 1 of 4

David Mort, IRN Director, will be at the Show to discuss any research requirements with you, and to explain more about the services available from Core Legal.

The Legal IT Business Show is the largest exhibition in Europe to showcase technology and business process innovations for the legal sector.

In 2013 the show has 60+ exhibitors and a full programme of seminars, demo sessions, and thought-leadership sessions.

For the latest programme and to register for your FREE visitor pass, please visit: http://www.legalitbizshow.com/FKN2349IRNEM2.

Unique reference code: FKN2349IRNEM2.

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This blog from Lisa Newton (CoreLegal founder member and founder of Boogles Ltd, the London-based specialist bookkeeping service for solicitors and barristers) will give you three ideas of what you can track on the FINANCE side of your business… and why its so important.

This person is usually the bookkeeper / accountant. The thing is, there’s lots of things you can track and measure… number of clients, number of client enquiries, website hits etc., but these are all along the lines of marketing.

SALES

It’s a very obvious one – sales. What is the sales turnover? Is it more (or less) than the same time last year? What was the sales target? Are you on track? Have you smashed it? Or are you far behind? Normally, most people have a very good idea of what their sales are. That’s often the one thing they’re on top of. Many people like to use it as a benchmark for themselves, as a measure of their success or self-worth but in reality – its not the one which will indicate whether the business is any good. It shows you what you’ve billed. Which may not even be what you’ve collected in! … so despite the popularity of this key indicator – don’t let it dazzle you. It’s only part of the picture.

Imagine this scenario. A solicitor is working around the clock. Being very ‘productive’. Charging for every billable minute they can use. They have a faithful secretary who is assisting them with their paperwork, they’re renting a small office space. And they clock up £100,000 of billable hours. They’re really pleased, but then they look at the profit & loss account which their bookkeeper has produced for them, and they see that their ‘profitability’ is just £2,000 – and they can’t understand why. So then they look at the lines underneath the ‘sales’ figure – which is a list of the ‘expenses’ and they’re rather alarmed at the amount they’ve spent… travel, training, marketing, wages … and suddenly, they feel quite dejected.

PROFITABILITY

In their ‘excitement’ of just counting the sales… they failed to realise that there is a ‘cost’ to generating these sales. And although they’d like to pay themselves ‘£5000’ a month… the business isn’t going to sustain it because there are other expenses to take into account. Profitability is important. Especially, if you wish to sell your firm, or to raise finance – a potential investor or buyer wants to buy a profitable business. If there’s no profits, then its not worth anything to them.

So bear in mind the drawings you take, and the profitability of the business. Many solicitors don’t see their ‘business’ as a business. They see it as a vehicle to pay them as much money as possible. They leave nothing in the business to grow it or sustain it, meaning, its not really a business, but a well-paid job. And that’s fine… if that’s what you want it to be.

DEBTORS – AMOUNTS OWED TO YOU

For whatever strange reason… many solicitors don’t like to pursue debts owed to them. But its not a phenomena which only solicitors suffer from… other small business owners and self-employed people have the same problem. The difficulty though, is that you have to keep track of this figure… You shouldn’t ever count UNPAID invoices in your mind in the sales figure… that ‘sale’ may never come in. And many people make this mistake, and they end up spending money which they don’t yet have (and may never have), and this can cause them to run into problems.

ALARM BELLS

The first indicator is that you make have problems is in the cash in the bank… when the bank starts running into the red… alarm bells should start to ring. Another sign, is not having the VAT or HMRC payments when its due. If this has ever happened to you – slow down, and just LOOK at what money is where.

Often, professionals are busy working on what they do best – their profession, to necessarily have time to work these things out. It’s the kind of detail which they’d rather not concern themselves with. Some people just check their bank account – and as long as some money is in there – they feel fine… but they may not have any idea of their real financial situation because they’ve not taken a look at the whole picture.

If you’ve ever been in a situation when you don’t want to face the picture, when you don’t want to open the envelope, when its not something you want to face – then the best thing you can do is to work something out with your accountant and bookkeeper, and face it together on a monthly basis at least. These things have a tendency not to get any smaller or to disappear. They just linger and fester, so its better to face it, get a plan in place and don’t spend what hasn’t come in yet!

Find out more about Boogles’ specialist bookkeeping services for solicitors athttp://www.booglesltd.com/ or call 020 3371 8894

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But how can you get the best from all that it has to offer? What are the best practices, what actually works and what should you be doing?

This latest seminar hosted by CPD provider ProFirma is both for solicitors who are actively involved or may have only just got started. 3 hours CPD and an Early Bird booking discount.

LinkedIn for Lawyers

A half-day seminar hosted by CPD provider ProFirma

Friday, March 8th 2013.     1:30 – 5:00pm, London.  3 hours CPD.   Price: £70/£80.

The presentations from our three highly knowledgeable speakers will:

• take a strategic view of LinkedIn and its use in a rapidly evolving market
• present case studies and show practical techniques that solicitors can use now
• show how some joined-up thinking to turn online and offline connections into the start of a meaningful business relationship

To book visit - http://www.socialmediaforlawfirms.eventbrite.com/ You’ll also find more about the presenters and their experience helping legal services professionals.

YOUR EXPERT PRESENTERS

Tom Worner (ProFirma):

• Where legal sector is at the moment
• How Social Media can help lawyers
• Guide to LinkedIn as part of overall strategy

Graham Aikin (TheBizLinks):

• Practical steps to take and in what order
• Case studies – what actually works for business?
• Which parts of LI work for lawyers?

Jason Cobine (Beyond Networking):

• Complementing social media with offline activities
• Taking offline contacts online and vice versa
• Making the first meeting count

Get the know-how you need at this seminar. Book today for the Early Bird discount.

The event also provides an excellent opportunity to network following the presentations.

Please note: Due to the popularity of our events there are no refunds yet you can send someone in your place, even at the very last minute.

Date: Friday 8th March 2012.       Price: £70/£80       Time: 1:30 – 5:00pm

Venue: The Bloomsbury Suite, Hotel Russell, 1-8 Russell Square, London, WC1B 5BE www.londonrussellhotel.co.uk

Tube: Russell Square (Piccadilly Line)

 To book: visit - http://www.socialmediaforlawfirms.eventbrite.com/

CoreLegal is an alliance of brilliant minds – we are a one-stop shop for lawyers who want solutions now.  Find out more at www.corelegal.net

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A new briefing document for smaller law firms published by Legally Better Ltd takes an in-depth look at how the collective reputation and solicitor ‘brand’ has become increasingly tarnished. There is a specific focus on smaller personal injury law firms, how they lost the Jackson reforms regulatory battle to the insurance industry and what high street law firms can do to address the situation many now find themselves in.

Of interest to Practice Managers, COLPs/COFAs, Partners and management teams at smaller law firms the subject is looked at in the context of other ‘pillars of society’. Over the last 12 months a number of professions and institutions – including the BBC, the Church, several Police forces and MPs – did little to enhance their own respective collective reputations.

There are insights from an experienced personal injury lawyer and a marketing expert specialising in advising smaller law firms. This includes advice on business development strategies to be considered as a result of the regulatory changes affecting the personal injury sector that are set to benefit the insurance industry but not necessarily the consumer when it comes to access to justice.

Commenting on the briefing document, Jon Hepburn, Managing Director of Legally Better Ltd said, “For smaller law firms is it every man for themselves as the new competition and new regulations come into effect? The time for collective action to significantly influence the proposed regulations regarding accident claim litigation has now probably passed and many law firms’ future could be out of their hands.”

Jon went on to say “We have taken a neutral approach to the issues behind and history surrounding how law firms have arrived at the current situation and have identified specific opportunities and practical ideas that smaller law firms can adopt. The document draws comparisons with other industry sectors and provides useful insights to identify the reasons why this happens, who is responsible and why we should care.”

Highlights of the briefing document include:

• Reputation issues that are currently affecting many institutions, organisations and individuals – including solicitors.
• The nature/perceived outcomes of an occupation affects a consumer’s perceptions of value.
• A short history of the changes to the personal injury market – to put the current situation in context.
• Shifting consumer attitudes, the power of the internet and impact of social media.
• The public’s lack of awareness of forthcoming changes in access to justice for PI claims. Will they be prepared to pay for legal advice for their accident claim? Are they aware of the influence the insurance industry has?
• Recognition that something needed to change to address the ‘compensation culture’ but the proposed changes are perceived as unrealistic by accident claim solicitors.
• The necessity of cherry picking of the ‘best’ cases by insurers and solicitors alike will reduce access to justice for some sections of soclety.
• A potential increase in professional negligence claims against solicitors.
• Observations as to how high street personal injury law firms can try and compete with the new competition and practical advice on what smaller law firms can do and there are a number of questions/discussion points at the end.

For a copy of the document please email jon.hepburn@legallybetter.co.uk

Related posts:

1. ‘Claims, blame and regulatory change’. Rebuilding reputations
2. Who’ll Pay For Legal Advice About An Accident Claim?
3. Alternative Business Structures (ABS) – High Street and Specialist Firms Grasp the Opportunities

Lisa Newton (CoreLegal founder member and founder of Boogles Ltd, the London-based specialist bookkeeping service for solicitors and barristers) offers her perspective on what can be the difference between profit and loss for  law firms.

Where are you actually making money?

You need to ask yourself this question. Try not to blindly go from one year to another without knowing the answer to this question. This is where recording data accurately really does help. Imagine you are an ‘employment lawyer’. Instead of recording all billable time as just ‘sales’ it’s more helpful to classify the sale more specifically. E.g. tribunal hearing, consulting, training/talks, employment contracts….  It is easy to ‘think’ that you’re making more sales in one area, without realising, that you’re actually spending more TIME in that area, but it doesn’t necessarily mean its profitable or useful time.

Its easy to be side-tracked.

We tend to like to do the jobs / tasks we like to do – but that doesn’t make them any more profitable. Once you’ve identified the areas which actually make you money – your job is then to increase the activity in this area, and find other income streams to add to your business.

The best thing about looking at an income & expenses statement, is that it will clearly show you, in black and white – what the list of income items are. Aside from those that are active streams (sales), there will be some passive streams (hopefully) – bank interest, maybe commissions received. Retainer income can also be a useful one to have on your income chart. Can you charge people to be their employment lawyer on a ‘retainer’ basis?

There are only 24 hours in a day, so the aim of the game, is to be able to charge for hours that you don’t actually have to physically work. This is where your business can make you money.

Stop the loss

The fastest way to make more money right now is to stop losing money! Most people in business are so focused and concentrated on sales and billing, that they’ve lost count and allowed their expenses to spiral out of control. Sometimes this will happen because we slip. We take our eye off the ball.. and the next thing we know… someone else is spending on our behalf (the secretary) and all sorts of things have turned up at the office or we don’t monitor the spend, and end up on direct debits and standing orders for a range of things that ‘seemed like a good idea at the time’ but eventually, just end up being expenses. And its at times like those that you need to just STOP. Spend a morning going through all the direct debits and standing orders on the account, and see if you recognise them all and whether they’re actually still needed. Sometimes, when a chunk of money comes in, people end up buying something equally as large and the money goes right back out the door again.Sometimes, (when times were bustling), you sign up to contracts that are 12, 24 or 36 months in length, which were easily affordable at the time of signing, but now that things have s lowed a bit, it’s a bit more tricky. So if you find yourself in this situation – don’t bury your head in the sand, but try and come to an arrangement. Cancel if you can. Its often the little, seemingly small monthly expenses which can mount up when combined and they just weigh down the business.

Fix your processes, and ensure money on account is coming in and that you run a regular (weekly) or fortnightly income and expense account – so that you can keep track that MORE is always coming in, than going out.

Often, small businesses get trapped,and realise that their fixed costs (money going out) is high, and fixed, whereas their income is variable and unstable, so they can’t effectively trust that there’ll be enough month-to-month. And this can become a huge source of stress and tension. If you find yourself in this situation, then get a grip on whats going out, and then work on finding a way to get a reliable (fixed) monthly amount coming in to you.

An impartial set of eyes on the numbers, such as those of a bookkeeper can be a huge help in these situations as they can alert you to where the business is heading.

Find out more about Boogles’ specialist bookkeeping services for solicitors at http://www.booglesltd.com/ or call 020 3371 8894

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Seems a simple enough and sensible Date Protection Act question for Solicitors and Barristers to ask, but be surprised by the number of IT companies, outsource IT service providers and cloud service providers who will try to side-step the question or convince you it is unnecessary to even ask.

CoreLegal member company Parachute IT take a look at one of the hot IT topics – Cloud computing. Following the publication of a recent guide on this subject they provide expert insights that solicitors and barristers should be aware of.

If you persist, you are likely to be told to accept that hundreds of their satisfied customers already use their services. You may also hear that their solution is fully compliant with all standards and regulations. These facts may be true, but of course your question has not actually been answered.

The ICO – Information Commissioner’s Office (Data Protection Act 1998 and all that) issued a new document “Guidance on the use of cloud computing” in October of last year. So as is usually the case with regulatory compliance matters; it is evolving to meet current and future challenges and obligations.

• It says that this document is part of a series of guidance that goes into more detail than their long-standing Guide to Data Protection; to help organisations more fully understand their obligations as well as to promote good practice. This latest publication explains what you should consider prior to a move to Cloud computing for the processing of personal data.
• It provides a far more comprehensive explanation that previously given about data protection compliance issues that can arise when personal data is processed in the Cloud.
• It acknowledges that a shift towards much greater use of cloud computing is well underway. Technology advancement, mobile access to information and more affordable pricing are usually the essential business drivers forcing a change to Cloud computing.

Sometimes, organisations are compelled to move to cloud solutions that are provided as an instant disaster recovery option, when an aged on-premise computer system or network long due for replacement; finally grinds to a halt and cannot be revived.

Cloud services are also extremely attractive propositions for smaller legal firms (including start-ups and sole practitioners) due to the low cost of entry and ownership and the possibilities of rapid expansion.

The ICO also published the “Personal Information Online Code of Practice” in July 2010. The code covers how the Data Protection Act applies to the collection and use of personal data online and gives advice for organisations that do business or provide services online.

Their latest publication stresses that Cloud providers should use this latest guidance to update their knowledge and awareness of what their current and prospective Cloud customers may need to deal with on data protection matters, and to help them make their products and services more appealing and relevant to customers that are subject to Data Protection Law and regulatory compliance.

At Parachute IT, we already do this for many of our customers operating in regulated professions and in sectors where compliance, outstanding service and quality standards matter.

Visit our website at www.parachuteit.co.uk and see for yourself. IT Services you can depend on 24/7. Find out what our support and consultancy services could mean for you. Call us on 08445 885 500 or email us today.

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