I n n o v a t i o n Redesign

&

Future of the legal practice

Juan C. Luna luna@lawgistic.com August, 2015 ACC / Huston Presentation

D I S C L A I M E R

This not NOT

an attempt to preach … or assume

That the end of lawyers is near…

nor

An attempt to assume that our

jobs will be done by robots

“The legal profession is undergoing

intense structural and economic pressures

It may be transformed or it may evolve in more moderate

steps, but regardless…

it is changing

The challenge for client/law firm leaders is to help

shape and anticipate the future of the profession.

IN WHICH INDUSTRY WOULD YOU TIPICALLY FIND A

chief data scientist (CDS) ?

New Reality

Evolution & Trends

Innovation

REDESIGNING THE BUSINESS

OF LAW

BUSINESS HAS CHANGED - SO MUST LEGAL SERVICES

…an ongoin theme stated at the conferences was that: In today´s economic and regulatory environment General Counsel and Law Firms need to actively seek new ways to improve process costs, control, efficiency, quality, service, measurement, compliance and governance

It´s about new tools & process improvement

So many industries other than law have experienced disruption in recent years that, paradoxically, disruption has become almost commonplace.

Disruption

refers to the process by which an industry dominated by high cost and complex products or services is transformed by innovation

marked by certain key elements: simplicity convenience accessibility affordability Technology, of course, has been the principal catalyst for disruption,

(“CAGR” stands for “compound annual growth rate,” and “PPEP” stands for “profit per equity partner.”)

Hildebrandt Consulting

Some facts CEB, formerly known as Corporate Executive Board, study found that

legal department employees say: • they’re working 20% harder than they were three years ago. • only 25% of general counsel believe their staffs are currently performing at

the highest level. • Almost 70% of GCs say their teams need to become more adaptive and

agile to respond to various trends, such as frequent organizational change, cross-organizational collaboration and the increased use of information technology.

And more than one-fourth of GCs say their teams need to be more entrepreneurial

3 Changes Reshaping the Legal Industry

1. Commoditization The internet has opened up a wealth of alternative legal services options, driving down prices and making basic legal services more easily accessible to the general public. With the rise of companies like LegalZoom, RocketLawyer, and DocStoc, and the newcomers like WeVorce, Trademarkia, and Shake, it seems this market for commoditized legal offerings is really only getting started

3 Changes Reshaping the Legal Industry

2. Consolidation and Specialization

Dire times are on the horizon for Big Law. Layoffs are plentiful,

business models are in upheaval, and more and more

associates are jumping off the partner track and starting their

own firms, or joining boutique firms.

The days of careless spending and lavish perks are coming to

an end, and operational efficiency is now on every

law firm partner’s and GC’s mind

3 Changes Reshaping the Legal Industry

3. Automation and Technology

The third of the massive changes reshaping the legal industry is

highly interrelated with the other two, and that is automation and

the proliferation of technology in the practice of law.

Technology is no longer a convenience… It is a necessity

SOME OTHER PEOPLE THINK THERE ARE MORE….

The legal profession has not benefited

from technology like other professional

services industries have.

However….

The market is screaming for

something different,

something that’s more affordable, accessible, and predictable.

Companies are turning toward alternative legal services To reduce their spend

Planting the seed of change

Corporate Counsel Institutes Research centers on the evolving global legal profession

Teaching… Disruptive Innovation in the Market for Legal Services -

Experts say….. the market for legal technology is as

much as $400 billion.

Legal service companies and legal consultancies of every stripe have emerged in response to the full-blown unbundling of legal tasks that has played out over the past decade.

9 Tech Startups Disrupting the Legal Industry

Docket Alarm is a legal research tool that processes full-text searches across lawsuits and producing analytics and predictions. Real-time alerts are delivered to your inbox or mobile device.

IP Nexus is a global, online service for intellectual property that matches inventors, startups and universities with lawyers, patent attorneys and other pros who can help an entrepreneur protect their invention.

Lawdingo handles the entire process — marketing, screening, intake, routing and payment of the attorney-client process.

MeWe, Inc is mobile software that simplifies compliance resulting in a more accessible platform for small businesses and consumers.

One400 is a digital marketing agency for the legal industry.

Jerry Nelson @Journey_America

PatentVector is a company that has canvassed global patent registries and developed a suite of tools for discovering important patents.

PlainLegal is intake software that collects the intake information attorneys need including client information, document assembly, and docketing.

Priori Legal is an online platform for businesses to find, hire legal services. Connecting businesses with a network of established attorneys, Priori Legal make sure to find lawyers at discounted and transparent rates

Shake is a platform that makes the law accessible and understandable to consumers and small business owners. An added feature of the platform allows for users to create, sign and send legally binding agreements digitally in seconds.

…an incomplete inventory of NewLaw

1. Aligning Human Talent with Legal Tasks

A.New-Model Law Firms •Brilliant Law – “Legal advice and expertise you can trust, at prices your business can afford – the fixed price legal services solution for you and your business.” (UK) •Clearspire – “We offer a complete, value-driven solution for outsourcing complex legal matters … a radically new and efficient law firm for the 21st century.” (US) •Cloudigy Law – “A cloud-based intellectual property & technology law firm.” (US) •Co-Op Legal Services – “Our legal team provides confidential help, exactly the level of advice and support you need with fixed fee pricing for most services.” (UK) •Gunner Cooke – “A boutique corporate law firm with one, clear vision: to challenge, improve and evolve the way legal services are provided.” (UK) •HiveLegal – “Law firm which improves the experience for our clients, our team and our network.” (Australia) •Hunoval Law – “A premier law firm for default servicing clients. Our dynamic leadership leverages cutting-edge proprietary technologies and Six Sigma process analysis.” (US) •Jacoby & Meyers – “It’s our goal to make the legal system more accessible and more affordable for everyone, and we’ll evaluate your case or legal matter for free.” (US) •Justice Cafe – “We are striving to bridge the justice gap by dishing up affordable legal help in our communities.” (US) •Keystone Law – “A dispersed business model, with senior solicitors working from satellite offices, supported by a central London office.” (UK) •LegalForce – “A modern progressive law firm based in Silicon Valley with over 23,000 clients worldwide.” (US) •Marque Lawyers – “We started our firm with the desire to practise law in a new and better manner, and in particular to do away with the business of charging for legal services on the basis of the time spent doing it.” (Australia) •Potomac Law – “We are able to offer clients exactly what they are seeking: sophisticated legal advice from knowledgeable attorneys at attractive rates.” (US) •Quality Solicitors – “A group of modern, progressive law firms spread across the UK, each one chosen because their clients tell us that they deliver great customer service.” (UK) •Riverview Law – “We deliver fixed-fee legal advice for businesses of all sizes. We are changing the way businesses use, measure and buy legal services.” (UK) •Salvos Legal – “We provide quality commercial and property law advice on a paid basis. However, all of our fees fund our ‘legal aid’ sister firm. Both are wholly owned by The Salvation Army.” (Australia) •Seyfarth Lean – “A distinctive client service model that provides a different way of thinking about and delivering legal services.” (US) •Slater & Gordon – “A leading consumer law firm in Australia with a growing presence in the UK consumer law market. We employ 1,200 people in 70 locations across Australia and 1,300 people in 18 locations in the UK. ” (Australia) •VLP Law Group – “We provide sophisticated legal advice in a wide range of practice areas, but our overhead is low, our staffing lean, our fees flexible and value-driven.” (US) •Winn Solicitors – “We are national road traffic accident specialists. With Winns, you have no excess to pay.” (UK)

B. Project/Flex/Dispersed Legal Talent Providers

•Advent Balance – “A firm that combines the expertise of outside counsel with the best qualities of a sophisticated in-house team.” (Australia) •Avokka Virtual GC – “Virtual counsel. Real results. Shift your thinking about legal counsel. Change the way you do business.” (Canada) •Axiom – “A 1,000-person firm, serving nearly half the F100 through 12 offices and 4 centers of excellence globally.” (US) •Bespoke Law – “A network of experienced lawyers who are available to provide clients with tailored support without watching the clock.” (Australia) •Cognition – “A team of highly experienced and skilled lawyers offering first-class business legal counsel either on-site or off-site, on a flexible, as-needed basis.” (Canada) •Conduit – “We pride ourselves on providing knowledgeable and effective legal counsel to address your needs as they emerge within your business.” (Canada) •Custom Counsel – “We are a nationwide collective of over 100 experienced attorneys who provide project-based legal services to other attorneys.” (US) •Daily General Counsel – “We come to your place of business for a full day and help you to solve your most pressing legal-related business problems.” (US) •Delegatus – “We have reinvented the law firm business model for you.” (Canada) •Eversheds Agile – “We meet a demand by clients for temporary, high-quality legal professionals that provide peace of mind and a link to an international law firm.” (UK) •Fondia – “A strategy that breaks with traditional law firm culture to transform the experience of clients and staff.” (Finland) •Halebury Law – “Your external in-house lawyers – offering clients senior ex in-house lawyers on a flexible basis.” (UK) •Intermix Legal – “Experienced freelance attorneys providing project-based legal support services to law firms & solo practitioners.” •Lawyers On Demand – “You can flex the size and capability of your team just when you need to.” (UK) •Paragon – “We provide embedded attorneys on a project basis to assist with overflow work, hiring gaps, interim backfills and special projects.” (US)

C. Managed Legal Support Services •Elevate Legal Services – “A global legal service provider helping law firms and corporate legal departments operate more effectively.” (US) •LeClair Ryan Legal Solutions – “We provide a wide range of support services and incorporate best-in-class technology and quality control processes which will be uniquely integrated into the law firm’s litigation and transactional practice areas.” (US) •MiamiLex – “A revolutionary alliance of the School of Law at the University of Miami and UnitedLex, a leading global provider of legal support and technology services.” (US) •Novus Law – “We provide legal document management, review and analysis services for lawyers that are measurably more accurate, faster and less expensive.” (US) •Obelisk Legal Support – “We provide flexible, affordable and quality support for in-house legal teams and law firms.” (UK) •OnRamp Apprentice – “We hire recent law grads to work on large scale ‘contract genome mapping’ projects.” (US) •Pangea3 – “The global leader in legal outsourcing. Our LPO provides comprehensive legal services to corporate lawyers and law firms.” (US) •Radiant Law – “Outsourcing, IT, commercial contracts from negotiations to disputes. We bring together legal judgement, process and technology. ” (UK) •United Lex – “The global leader in legal services outsourcing, provides litigation, contracts and IP services to corporations and law firms.” (US)

2. Applying Technology to the Performance of Legal Tasks

A. Tools To Help Lawyers Do Legal Work Differently

•AAA ClauseBuilder – “‘Designed to assist individuals and organizations develop clear and effective arbitration and mediation agreements.” (US) •BrightLeaf – “A technology-driven service that automates the entire process of abstracting information from all your contracts for upload to your CMS or for use with our abstraction analysis tool.” (US) •CaseText – “Judicial opinions and statutes are annotated with analysis by prominent law professors and attorneys at leading firms, giving you unique insight. And everything is 100% free.” (US) •DealStage: “Enables attorneys and transactional professionals to better manage the deal process lifecycle from drafting to closing.” (US) •ClearAccess IP – “Serving the patent marketplace by lowering transactions and streamlining data management at the prosecution level.” (US) •Diligence Engine – “Technology-enhanced contract review: faster and more accurate.” (Canada) •Judicata – “Mapping the legal genome to help you better understand the law.” (US) •Jurify – “We harness the collective genius of legal titans to deliver a complete set of resources on legal topics in one quick search.” (US) •KM Standards – “Our patented software allows you to build model forms from your own agreements, audit entire contract sets, and quickly review incoming contracts.” (US) •Koncision Contract Automation – “A subscription-based service providing lawyers with document-assembly templates for business contracts.” (US) •Legal Systematics – “We deliver automated document drafting programs and other advanced knowledge tools for making legal work more efficient.” (US) •Lex Machina – “We provide legal analytics to companies and law firms, enabling them to craft successful strategies, win cases, and close business.” (US) •Littler CaseSmart – “A case management solution that combines a Littler-developed proprietary technology platform with rigorous quality assurance measures.” (US) •Mootus – “We help law students and lawyers build skills, reputation and knowledge for free through open, online legal argument.” (US) •Neota Logic – “We transform expertise into answers and action.” (US) •Ravel Law – “Data-driven legal research and analytics.” (US) •Sky Analytics – “Helps reduce legal spend, control legal costs and benchmark legal spend.” (US) •TyMetrix – “The leader in bringing advanced technologies to critical dimensions of legal transactions and analytics.” (US)

B. Tools To Help Clients Resolve Disputes Directly •CleanSplit – “An easy-to-use tool that allows divorcing couples to divide their property without confrontation while saving time and legal fees.” (US) •Fair Outcomes – “Provides parties involved in disputes or difficult negotiations with access to newly developed proprietary systems that allow fair and equitable outcomes to be achieved with remarkable efficiency.” (US) •Fixed – “The easiest way to fix a parking ticket.” (US) •Modria – “The world’s leading Online Dispute Resolution platform.” (US) •Picture It Settled – “Using neural networks to examine the behaviour of negotiators in thousands of cases, we can predict what an opponent will do, thereby saving time and money while optimizing settlements.” (US) •Rechtwijzer – “Rechtwijzer 1.0 was … an appropriate, trustable legal helping hand that would assist people throughout their conflicts. [Rechtwijzer 2.0] enhances its services from diagnosing and referral into dispute-solving.” (The Netherlands) •Resolve Your Dispute – “A self-help online tool for consumers to settle disputes with a business.” (Canada) •Road Traffic Representation – “We provide you free expert advice to help you with your motor offence, from speeding fines to driving without insurance.” (UK) •WeVorce – “Divorce is more than a legal problem. … You’ll come out with the necessary legal documents as well as a lifetime of tools, knowledge and agreements as you begin again.” (US)

C. Tools to Help Clients Conduct Their Own Legal Matters •A2J Author – “A software tool that delivers greater access to justice for self-represented litigants by enabling non-technical authors from the courts, clerk’s offices, legal services programs, and website editors to rapidly build and implement customer friendly web-based interfaces for document assembly.” (US) •Docracy – “The web’s only open collection of legal contracts and the best way to negotiate and sign documents online.” (US) •EverPlans – “We provide guides, resources and a platform to help you create a plan that contains everything your loved ones will need if something happens to you.” (US) •Fair Document – “You get all your necessary estate planning documents completed quickly, and our streamlined process of working with an attorney affords peace of mind.” (US) •Iron Tech Lawyer – “A competition held at Georgetown Law, where student teams show off apps built in our Technology Innovation and Law Practice practicum.” (US) •Law Help Interactive – “Helps you fill out legal forms. Answer a series of questions and print your legal form. The forms are free and have been created by nonprofit legal aid programs and courts.” (US) •Lexspot – “Our online platform … makes the convoluted and expensive immigration process easy and affordable. ” (US) •Peppercorn – “Create legal agreements, in multiple languages, in just minutes.” (Italy) •Probate Wizard – “Probate is daunting. We make it simple. … the most advanced DIY probate system in the UK.” (UK) •Shake – “We strive to combine the simplicity, convenience, and collaborative spirit of a handshake with the protection of a legal agreement.” (US) •Smart Legal Forms – “Designed for US consumers and small business who want to resolve their legal problems at the lowest possible cost.” (US)

fact

the advent of Big Data and analytic technologies have transformed many aspects of legal practice

Law Departments vs. Law Firms:

What Innovation Really Looks Like

Lawfirm

Law firms, long the sole providers of legal services, now operate amid products and service providers—not to mention global competition as well as bulked-up in-house legal departments — that comprise the legal supply chain.

We are a global collaborative innovation platform

focused on developing, deploying, and investing in

new technologies and processes to transform the

practice of law around the world.

RethinkLaw is on a mission to

provoke thought and drive innovation in the business of law—leading to greater efficiency and positive change for the benefit of clients, firms and lawyers alike.

Axiom created RethinkLaw to be an impartial home for innovative thinking and discussion, a place to work out what our industry wants to look like when it grows up

Eversheds Consulting is a unique mix of highly experienced consultants, lawyers, risk specialists who can help clients deliver their objectives and improve efficiency.

Dentons’ innovation arm—NextLaw Labs—has partnered with IBM to develop a program that will allow startups to create and deploy legal applications more quickly

Although the legal industry has a reputation for being behind the times when it comes to adopting technology, a recent BTI Consulting survey of nearly 700 corporate counsel at Fortune 1000 companies revealed that more law firms are using client-facing technology.

Dentons Rolls Out NextLaw Labs to Develop New Technologies We've seen and heard of Big Law and New Law; the latest "law" firm business model could very well be known as "Next Law"—

May 18, 2015 10:58 AM Eastern Daylight Time PALO ALTO, Calif.--(BUSINESS WIRE)--Dentons, the global law firm, today announced that it is launching NextLaw Labs, a global collaborative innovation platform focused on developing, deploying, and investing in new technologies and processes to transform the practice of law around the world.

NextLaw Labs will invest in promising companies and develop a suite of new technologies that fundamentally change the practice of law, improving client service and enhancing client solutions.

IN WHICH INDUSTRY WOULD YOU TIPICALLY FIND A

chief data scientist (CDS)?

Remember the question….?

AmLaw 100 law firm Drinker Biddle & Reath has named Bennett Borden the firm’s first chief data scientist (CDS). In this role, Borden will oversee the implementation of technologies and services that apply use of data analytics and other cutting edge tools to the practice of law. The move positions Drinker Biddle as one of the first firms—possibly in the world—to carve out a leadership position overseeing data analytics, with the impetus for the new role coming from the firm’s longstanding views on the importance of governing information.

Bennett B. Borden is a partner in the firm's Litigation Group, Chief Data Scientist, and Co-chair of the Information Governance and eDiscovery Group. He is also an executive managing director of the firm's subsidiary, Tritura Information Governance LLC, which provides state of the art ediscovery technology and services to the firm's clients.

In- House

law department started with foundational tools such as e-billing and contract management and later expanded to workflow, benchmarking and dashboarding technologies.

Law departments should run like a business Dupont legal model…30 years ago

General Counsel are confronting increasing pressure to pare down legal costs which translates to an opening for new providers and models…. But…. they are responding in one of two ways: (1) taking more work in-house; and/or (2) putting more pressure on outside providers to discount.

Either way, the response is reshuffling the existing deck rather than using a fresh one. While several in-house departments are doing some very creative things to deliver legal services more efficiently… most are still operating largely within the traditional delivery framework rather than replacing it with a new one.

So many options, so little time

General Counsel, Chief Legal Officers, and others charged with

engaging the services of lawyers… Not too long ago, it was a much simpler process: select a law firm; send them the file; and pay the invoice. No more Technology, globalization, the steady and cumulatively astronomical rise of legal fees, and regulatory issues—not to mention the global financial crisis of 2008 and its aftermath—have created a new landscape for lawyers and the clients they service. This was underscored by the ACC’s launch of its “ Value Challenge” …..bridge the “cost-value” divide and to provide enhanced value for their services

So many options, so little time

“many options” arose. A snapshot of the new landscape includes the following reference points:

A proliferation of legal service providers Unlike law firms that are strictly regulated, service providers are largely unregulated and employ attorneys (as well as paraprofessionals as well as professionals from other disciplines, notably technologists and consultants) in an ever-widening array of legal tasks once performed exclusively by law firms

So many options, so little time

“many options” arose. A snapshot of the new landscape includes the following reference points:

Increased competition among law firms. It’s a buyer’s market. Not only can GC’s routinely exact significant discounts from firm rack rates, but they can—and frequently do—put firms through RFP’s, demand alternative fee arrangements (“AFA’s”), and decree who can and cannot work on their outsourced files.

So many options, so little time

“many options” arose. A snapshot of the new landscape includes the following reference points:

Foreign competition as well as the threat of new entrants. It is only a matter of time before UK-based firms, who operate in an alternative business structures (“ABS”) environment, set up shop in the States. How can they do this? There are several viable workarounds for the existing U.S. regulatory system which prohibits key elements of the ABS structure including multi-disciplinary practice, non-lawyer ownership and management of law firms, and other measures intended to encourage innovation, reduce legal cost, and otherwise benefit clients, not lawyers

So many options, so little time

“many options” arose. A snapshot of the new landscape includes the following reference points:

The “competition” from in-house legal departments. Many companies have decided that, for a myriad of reasons, it is preferable to beef up their in-house departments than to outsource the bulk of their legal work.

Conclusion…

Client demand for simplicity, convenience, accessibility, and affordability of legal services will be the catalyst for legal disruption — just as it has been in other industries. Technology will be the means by which that disruption will occur, providing client access to a wide range of providers who will operate in a model that enables them to reduce the cost of services substantially.

One last comment…

The truth The reality of things The fundamental facts……..

• “Big Law” or “Old Law” (aka a traditional law firm) is not in the business of

solving legal problems – it is in the business of billing hours to solve legal problems.

• “New Law” (e.g., LPO’s, Axiom, Huron, etc.) is in the business of billing lower cost

hours to solve legal problems.

• “Enlightened Law” (e.g., Riverview, Valorem, etc) is in the business of solving

legal problems effectively and efficiently.

• “Next Law” is in the business of preventing legal problems from ever arising.

In-house counsel teams are uniquely situated to understand and deliver on the prevention focus – precisely because that’s what a high performance legal team does. The problem is that most in-house teams are just as risk-averse as outside counsel and generally overwhelmed with reactive work. As such, very few are actually focused on the right vision

As attorneys, the time is now

to take action and find ways to

leverage technology for our benefit.

Don’t sit idly on the sideline and get

blindsided…

like the taxi drivers did

www.lawgistic.com

832 431 3255

info@lawgistic.com

We a legal consulting firm based in Mexico and Houston, with operations throughout LatinAmerica

we have re-defined the practice and business of law,

offering solutions for

legal Services & legal Management

helping companies

achieve business success by improving legal performance

we are not inventing a new industry…

they are just applying common sense to the legal practice

Lawgistic

is a legal consulting firm based in Mexico and Houston

they have re-defined the practice and business of law,

offering solutions for

legal Services & legal Management

helping companies

achieve business success by improving legal performance

they are not inventing a new industry…

they are just applying common sense to the legal practice

We designed our services so you can focus on business opportunities…Not on legal problems.

As outside legal support, we work as a seamless extension of your team, providing practical legal advice, while controlling risks and ensuring corporate compliance.

On-Demand Legal Counsel / Latin-American Legal support / Government a�airs

As In-house strategic advisors, we help manage projects and legal operations in the most e�ective way, continuously seeking opportunities to add value.

Consulting / Compliance / Outsourcing / Legal Management

How you choose to use us is up to you. Our goal is to provide you with the right expertise and tools, to successfully tackle the challenges you face.

Legal Services & Legal ManagementLawgistic rede�nes the practice and business of law.

We can help your company improve its legal performance, reduce risk and save on legal costs

Our model is simple….We are e�ciency experts

Our Mission Help our clients manage, control and resolve legal issues – more e�ciently and e�ectively. We do this by o�ering: Key performance indicators Value-driven prioritization Accountability around budgetary expenses Expanded use of technology

Our Values

Impact Ensuring consistent, measurable contributions to clients’ pro�tability and leveraging all legal and non-legal assets and resources for their bene�t.

Intimacy Building trust through developing a deep understanding of the client’s business needs, while delivering work that meets the highest professional, ethical and business standards.

Imagination Working with the client to create and expand the depth and breadth of their partnership, being trustworthy, open and fair.

Innovation Focusing on evolving client’s needs, o�ering comprehensive and cost e�ective legal coverage.

Headquartered in Houston and Mexico City, Lawgistic makes the practice and business of law more e�ective and e�cient to decrease operating costs and improve legal performance.

Lawgistic envisions a global business environment in which Corporate Counsel proactively contributes to corporate results by leveraging business-driven strategies and best-in-class resources to achieve unprecedented levels of e�ciency, productivity and quality.

Choose Lawgistic to deliver �exible, professional legal support and client service with outstanding value and unparalleled commitment to meet your unique needs – on time, on target and on budget.

To learn more, please visit www.lawgistic.com