Embracing Innovation to Prepare for A New Culture of Fixed Fees

The legal sector is no stranger to radical change. Take the Jackson reforms, for example, which forced personal injury firms to rethink how they sourced new business. And most recently, with the consultation period underway on fixed fees for medical negligence, this is another area of law set to be overhauled.

By October of this year, it’s expected that a fixed fees system will be in place for clinical negligence claims in England and Wales. The system will place a cap on the amount that lawyers can charge for claims of medical negligence where damages are under a certain limit (most likely up to £250,000).

The aim of the new system is to bring down the NHS’ huge legal bill; £1.3 billion at the last count. Given the increasing number of public spending cuts, the current cost of NHS negligence is politically and economically hard to stomach.

But for the firms handling such cases of negligence, a system of fixed fees could mean financial difficulties, with some cases becoming less financially viable to pursue.

With time running out before the new regime is implemented, firms need to be proactive and prepare themselves early on before the changes take root. Now is the time to rethink business structures and implement new processes that will be able to withstand any challenges that the system may bring.

Investing in effective case management

When systems and processes work well, members of staff are able to operate more efficiently and effectively. As a result, clients have greater confidence their case is being handled by a professional and experienced team, and other parties involved in the process are also encouraged to be more efficient.  

Any errors to business systems or processes cause real headaches. And when profit margins are tight, errors can have bigger consequences, even leading to a firm’s decline in the worst possible cases.

This is why it’s vital to invest in paperless solutions. Gone are the days of manually searching through endless files of paperwork, and we no longer have to wait for members of staff to come back into the office after a holiday to get an update on where a crucial part of a case is up to. Paperless solutions allow employees to communicate and share documents quickly and easily. With the implementation of fixed fees restricting the amount of time lawyers can spend on a case, efficient handling of cases is now even more crucial.

 Developing effective marketing strategies

As fixed fees will change the financial value of cases, it’s important that firms have a sustainable amount of work coming in to make sure they occupy a strong position in the market. Having a regular flow of work gives the business better financial stability and more control over the direction the firm is heading in.

The key is to invest in effective marketing strategies that will build the brand and help the firm appeal directly to the public. Clients will be more inclined to approach a firm that has a positive image and understands their needs, concerns and fears.

This way of working also means firms can better manage the volume of work they have coming in; increase marketing efforts to bring in more work when needed, or turn down the amount of marketing during really busy periods. It is going to be difficult to reply on third parties to bring in new business. When fixed fees are introduced, firms need to have this control so they’re not dependent on other companies and can adapt to the needs of the industry with confidence.

Attracting talent from outside of the sector

In light of the proposed changes, it’s time for firms to think beyond the law profession and start to become more business-minded. After all, each firm is a business. Those firms which begin to innovate and embrace new strategies will be the ones to flourish in this fast-changing sector.

Of course, this isn’t without its challenges. Lawyers will have spent years of their lives training in their specific areas of law, but running a business might go beyond their typical skill set. This is where professionals from outside of the legal industry can play a huge part. Bringing in experts from other industries can provide new outlooks and approaches when it comes to solving issues, and these people will be able to offer knowledge outside of a lawyer’s training to help grow the firm.

For example, in September 2015, Fletchers Solicitors gained approval as an Alternative Business Structure (ABS). This meant that we were able to draw upon senior talent from outside of the legal sector – we now have three non-lawyer non-executive directors from a variety of backgrounds. This has been a big enabler for innovation within the firm, and has been crucial in making sure we are prepared to deal with any changes that may occur within the sector, such as fixed fees.

Creating the right support teams

The legal industry typically places a lot of demands on a lawyer and their days are often extremely busy. Their role involves more than just carrying out legal work on their case files, and their day can also be filled with administration jobs and the time-consuming job of reviewing records and reports.

As with any business, it’s important that employees feel as though there is support in place so they’re able to perform their role effectively. We’ve found that by creating teams to deal with the different stages of a case, everyone can focus their attention on a specific area, instead of having to juggle crippling workloads. For example, our junior paralegals are in charge of acquiring all the crucial information and research for each case. This helps to support the lawyers and means they can focus their attention on more important matters, such as making legal judgements.

Applying a team approach to the management of cases not only means work is completed more cost effectively, but also with greater care and attention. Cases will be moved through the legal process more smoothly and in a timely manner, with everyone having clear responsibilities for each stage.

To keep teams motivated and working well together, regular training and support meetings should also be put in place. Training sessions help employees develop and improve their skills so they’re of continued value to the business. Setting up support meetings gives everyone the opportunity to discuss any areas that may be causing concern, particular when handling cases, which in turn creates a positive and open culture within the firm. A great working environment makes for a happier workforce and will go towards minimising errors or inaccuracies.

Bespoke is best

In the rapidly changing legal sector, flexibility is crucial. Moving away from traditional solutions when it comes to case management and opting for the bespoke route is a great enabler. Many solutions are marketed to legal firms from software developers, but these are typically very a very ridged and structured ‘one size fits all’ option. Software developers are usually very skilled in what they do, however understanding the difference between a wrist fracture case and a C6 spinal injury case is unlikely to be one of their specialist abilities.

In comparison, investing in bespoke solutions gives firms more freedom to develop a system that will meet its specific needs and goals. This option opens the door to future innovation and allows the firm to adapt systems to incorporate new ideas or changes that will inevitably occur within law.

As we move further into 2016, its time to start accepting that change is coming. Although it’s still to be decided how these changes will take effect, time is running out to make the necessary preparations. Traditionally, the legal sector has been slow to innovate and has been set in its ways. But with change becoming a common phenomenon in recent years, as a profession, we need to recognise that reacting early is the best approach. In fact, change represents the opportunity to develop better ways of doing business and this should certainly be embraced by the industry.

 

For more information, please visit www.fletcherssolicitors.co.uk