Tag Archives: tesco law

General Legal IT

ABS on ABS (or another blummin’ story on alternative business structures!)

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The move in the legal world to alternative business structures has generated a great deal of interest over the past few years. For a while it’s seemed a lot of talk and little action, but it now seems there are some interesting developments happening. Following Irwin Mitchell, Hill Dickinson and Kennedys are the latest UK Top 50 to confirm plans to move to ABS. And then this week Australia’s Slater & Gordon, the world’s first publicly listed law firm, moves for Russell Jones & Walker.

I’ve been a little sceptical of how revolutionary “Tesco Law” will be. Sure I can see it in the personal injury and clinical negligence arena, for example, where there is a lot of standardised legal work. But outside that, I’m not sure. For existing businesses I can’t see beyond the move being like an IPO for the partners, what’s the incentive to grow that business after the “float”? Most entrepreneurs after an IPO of their business leave with their money and start again. In a law firm though the product of the business is the lawyer (unless it’s standardised legal work where processes and standard documents have been be created, but then we’re back to my first point!).

However, I read with interest the story of Liverpool’s Silverbeck Rymer which is set to be acquired by software and outsourcing firm Quindell Portfolio. As a Legal IT professional this move kind of excites me, a company with the technology and the processes taking over a law firm to get the legal expertise? The business process and IT systems being front and centre in building and growing that business!

The other interesting possible development could be for new entrants to gain the access to capital from investors. This could allow those partners from big firms to setup new firms or maybe entrepreneurs who see the opportunities that then work with some young lawyers to build the next generation of law firm?

It’s an interesting time to be in legal and could lead to some very exciting opportunities in legal IT. Maybe I’ll try and persuade a couple of friends who work in the IT dept of one of the aforementioned UK Top 50 to guest blog post in a years time on what changes ABS has brought to their dept!

 

If you want some further reading on “Tesco Law” there’s a good in depth commentary on Legal Week entitled “Reverberations and revolutions – change grips the market as ‘Tesco law’ finally launches”

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Legal

Sainsbury’s Law

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Come on you’d turn away if I said this was another “Tesco Law” will change things forever story. I read this post last Friday on the Guardian website and the part where it talked about brands got me thinking.

The Legal Services Board and its consumer panel are looking at the problems consumers have in identifying quality in legal services – research shows that people focus on service levels, which they can understand, rather than the ability of the lawyer to do the job, which is much harder to judge. They have a degree of respect "bordering on awe" for lawyers, the panel reported recently, and trust that the lawyer knows what he or she is talking about.

It is into this void that solicitors fear brand names will come and offer a consumer-friendly service that will win the loyalty of a public intimidated by the legal process. A recent survey by YouGov found that 60% of people would consider buying legal services from one of 16 named brands, from Barclays to Kwik-Fit, indicating interest in the concept but also a certain doubt at such a radical change in the traditional model.

It got me thinking about the big supermarket brands foray into the banking world. The Sainsbury and Tesco brand certainly shifted accounts of a number of their customers. I’m sure that customers of NatWest and HSBC when asked in 1996 whether they would consider banking with Sainsbury’s were equally sceptical, but Sainsbury’s Bank  now has around 1.5m customers.

But look behind the banks and you’ll see the banking powerhouses, Sainsbury’s is a 50:50 venture with Lloyds Banking Group and Tesco for ten years until 2008 was 50:50 with the Royal Bank of Scotland.

What about in 2022 looking back at a “Sainsbury’s Legal Services” venture and seeing how the successful 50:50 joint venture between Sainsbury’s and Eversheds became a respected brand across consumer legal services? Should the high street lawyers be turning from worrying about the high street brands and look to see if BigLaw is about to move in on their territory to expand?

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Legal

“A company from here doing rather well over there” and vice versa

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No I didn’t stop blogging over the last three weeks to spend the time on the campaign trail for the Computer Weekly blog awards! I’ve just had too much on in and out of work to come up with something to blog about (which reminds me of a previous post!)

I’ve had in mind a post about the mergers in legal this year. A follow up to the post I put up in July 2009 titled “Consolidation within the UK 200?” in which I predicted a series of mergers outside the top 20. I thought at the time that the competition in the legal market due to the downturn would force a squeeze in the mid-sized firms, but it looks like the consolidation has been nearer the top. There have been a number of transatlantic mergers within the top 20 (well top 25), not the “magic circle” but in those firms just below (in fact those below the transatlantic trailblazer DLA Piper).

We’ve had Denton Wilde Sapte and Sonnenschein Nath & Rosenthal, Hammonds and Squire Sanders & Dempsey, Lovells and Hogan & Hartson and SJ Berwin in talks with Orrick Herrington & Sutcliffe and then Proskauer Rose.

Norton Rose has taken a slightly different route into North America with it’s merger with Canadian firm Ogilvy Renault. It’s almost a shame UK law firms aren’t listed on the stock exchange as I’d be hedging a bet and buying up some shares in Herbert Smith!

So the consolidation is happening at a pace, but rather than on a national level it’s the globalisation of the larger law firms that’s leading the way.  I don’t think it’s over, there is still a mixed market out there. Some firms are now posting a rise in turnover, yet there are others that are posting an equal percentage drop.

I therefore stand by my earlier post. The consolidation at the top will only strengthen the brands of the large law firms, allowing them to hoover up more of the big (and medium) plc work. The mid sized firms will be subject to a pincer movement from the “big brand firms” above and also from the new firms that will emerge on the back of the Legal Services Act 2007.

What will the mid sized law firm look like in 5 years time? Will the £75m turnover “Jones, Jones and Smith” still exist or will they be background engine rooms for “Tesco” and “Sainsbury’s” in a legal world that has a few global big brand firms and household name branded legal services?

Whilst writing this post I came across a great document on the upcoming “Big Bang” for legal, it’s called “The Big Bang Report – Opportunities and threats in the new legal services market”.

Oh and no I didn’t win the IT professional (male) blogger award unfortunately, but it was great to be recognised by Computer Weekly and short-listed. Maybe next year!

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