The future-ready legal businessSam Nickless, COO + Partner, Gilbert + Tobin

#LawFest2019

ChallengeThe future – closer, faster and more uncertainLaw firms – structurally challenged in responding

#LawFest2019

Future readyPortfolio of responses –including being willing to challenge own business

The defining shift for legal businesses

• Labour as the primary unit of production

• Owned by key labour(partnerships)

• Significant manual tasks and cognitive labour

• Priced according to scarcity of labour (time)

• Value from ‘moments of genius’ but revenue from hours on the tools #LawFest2019

Labour• Capital (technology)

increasingly relevant• New sources of investment

capital• Automation of tasks• Priced according to value

created• Reduced return from hourly

billing

Labour + Capitalto

Capital is coming

CB Insights deal data for ‘LegalTech’

Legal businesses will look different

#LawFest2019The Boston Consulting Group – How Legal Technology will change the Business of Law

Structural challenges

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Lots of… …but not much

Money CapitalThreats PressureTalent Capacity

Noise Signal

So what do you do?

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The future ready state

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• Need for change• Governance / decision-making• Willing to disrupt – i.e. reduce hours

Mindset

• Dedicated resources• What % of revenue on R&D?• Capital beyond this year’s distribution?

Investment

• Get off the flip chart• Portfolio of actions on core business and

disruptionAction

Innovation by committee…

• Bullet point

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The readiness journey

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The ‘Committees’

phase

Awareness: strategic view of

futureGet started Deepen and

embed

One firm’s example

#LawFest2019

The ‘Committees’

phase

Awareness: strategic view of

futureGet started Deepen and

embed

Ditched the Committees

Major strategic intervention –scenario modelling

Productivity focusDelivery focused innovation group

Investment in disruptor

Resourced Legal Services Innovation teamPromoted leader to PartnerIncreasing client contact (egtenders, secondments)GT Innovate – client services

Getting startedSystematic – process reviews

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Opportunistic –ideas from teams

Final thoughts

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@samnickless@gtlaw