How is technology changing the way you meet client needs? Which areas will be most affected by new tech?

We have sought to be very proactive in utilising technology to meet client needs because it is a key vehicle for delivery of value to clients. Much of the focus in the business of law is rightfully on the impact of artificial intelligence (AI) and blockchain.

Like many firms, we are using and developing AI technologies to automate repetitive tasks, such as document review and management, to complete work faster and reduce the risk of error. At the same time, blockchain solutions are coming online to replace traditional ledger-based tasks like security ownership, real estate titles, etc., while also creating self-effecting ‘smart contracts’.

Building on our pioneering experience as an early leader in e-Discovery Analysis and Technology (e-DAT), we continue to be at the forefront of technological development including, for example, our role as a co-developer with a leading global technology provider of its recently-launched, industry-wide interconnected platform that combines knowledge management, project management, price modelling, billing data, and matter mapping capability. We also have invested in our own internal, private, and permissioned blockchain, placing us among the first firms to begin implementing the technology, which we will expand and leverage across our globally integrated platform.

How do you differentiate your offering in an increasingly crowded and competitive market?

We do what we do best. We focus on our clients in everything we do. We are a highly integrated and collaborative global law firm with a multi-disciplinary client focus built to deliver solutions and results that clients need in order to grow, manage, and protect their businesses.

We serve clients in a variety of industry sectors, with particular profile in energy, financial services, healthcare, manufacturing and industrial, and technology. Our practice and geographic reach is extraordinary in its focus on seamless service, solutions, results and delivery of value.

What innovation have you introduced that has added the most value?

For us, innovation extends far beyond technology. We find that the most valuable asset is our culture of supporting innovation. Our client-focused teams include human-centred design practitioners who help us better understand our client service needs to develop and deliver creative, cost-effective, real world solutions. Our team also includes certified change management specialists who work alongside our clients and lawyers to drive innovation and continuous improvement.

These tech-savvy professionals work hand-in-hand with our lawyers and clients, using legal project management and process improvement techniques to address all facets of our service delivery and operations. Through this partnership with our clients, we have elevated the way we collaborate, escalated the speed at which we can develop and deliver solutions, and enhanced the security of valuable legal platforms and data.

To promote adoption of our innovative solutions over the past couple of years, we have featured a hands-on and interactive line-up of new and emerging technologies, products, and ideas at our global partner retreat, all designed to add value to clients in the course of our delivery of legal services. We call it the ‘Avenue of Innovation’. Our partners love it. It has been an extraordinarily valuable and engaging way to pilot, educate, and develop best practices for the benefit of clients. It helps meet the threshold challenge – firm-wide education about the resources that our firm, and the fertile minds across our platform, have in the works and in practical use that are available to enhance and improve our service to our clients.

What have been the main changes in the way you charge for your work in recent years? What percentage of work is charged out with alternatives to the billable hour?

In many markets, the billable hour as a foundational piece of the billing approach is far from dead – many clients prefer the familiarity and straightforward manner of this form of pricing, at least as a base. Having said that, there are some parts of the globe where the billable hour is on its last leg, if not yet deceased.

In all markets, alternative fee arrangements are here to stay, and will only increase on a percentage basis as time goes on. We don’t try to break down the percentage in any precise way; there is too much overlap these days for that statistic to be particularly meaningful. We believe it is in our interest, and in our client’s interest, to be open and creative regarding pricing strategies that can be mutually beneficial. This means our lawyers have to get better at legal project management through a culture of continuous improvement. For that reason, we have invested in education and training in that discipline, and this pays off for both the law firm and the client, and is increasingly a skillset that clients expect to see from their law firm.

The rise of legal operations has increased law firms’ focus on metrics and data – which metrics are clients most focused on now?

Clients are increasingly recognising that pricing of legal services is a poor proxy for quality and even less of a proxy for value. They need to justify their outside counsel spend relative to their budget and the value that the client receives from that work. The actual metrics can vary by clients, who often have an internal scorecard that compares their internal ratings of complexity and risk or value.

We are often asked how efficiently we are managing the work (e.g. days a file is open and number of timekeepers involved), the appropriateness of our staffing as compared to the client’s perceived complexity (e.g. leverage), and what other services/value we offer (e.g. CLE programmes).

Finally, we also see an increasing focus on objectively measuring diversity – not just our percentage of lawyers or partners, etc., but more granular evaluation of the diversity of our client service team makeup, in terms of either hours or fees as a percentage of our firm’s total for that client. Here, as in all other aspects, the key for us is working with our clients to understand what business drivers are critical for them and how we can help deliver our service, and monitor our own performance along the way, to help the client achieve its quantitative benchmarks.

What made you want to become the new chair of Payne Hicks Beach and what do you hope to achieve?

It is a great honour to be responsible for a firm that has been around for almost 300 years. The private client landscape has altered dramatically in the last 25 years with an explosion of private wealth, and at the same time, the firm has evolved.

We continue to provide top-class private client and family advice as well as property, dispute resolution, employment, and corporate. However, we now provide new services such as reputation management and citizenship and immigration advice as well. My job as chair is to make sure we do everything to service the needs of ultra-high-net-worth (UHNW) clients and to attract the best practitioners to so that we can continue to attract the best clients.

How will your role/involvement in client-facing work change upon becoming chair?

I will be supported by Dominic Crossley (head of dispute resolution) and Jonathan Gatward (head of corporate) on our new management board, and we have an experienced director of management, Virginia Farquharson, who has run the firm for several years, so it will be business as usual for my clients.

What’s changes do you hope to make in the firm that will benefit clients?

I want to focus on excellence and client service. We are not planning any drastic changes.

What does Payne Hicks Beach do differently from its competitors?

We’ve been in the business of looking after clients for almost 300 years so we understand the concept of long-term client relationships – I think that is what we do best.

What does innovation mean to Payne Hicks Beach? How can firms generally be better at innovation?

For Payne Hicks Beach innovation is about responding to clients’ needs – too often firms look at everything from their own perspective. When you are dealing with families and individuals you have to put yourself into their shoes.

Is technology changing the way the firm interacts with clients and the services it provides them?

Yes – the way in which we work since the advent of email has completely changed the solicitor’s job, and that has a knock on effect for support services, such as secretaries and IT. We can now provide electronic access to documents which not only applies to commercial clients but also to traditional landed estates who, for the first time, have access to documents that would previously have been confined to a strong room.

What do you think are the top three things your clients want and why?

Empathy, expertise, and good value for money. These are all essential if you are to develop a long-term relationship with your clients and be able to add value.

What are the specific challenges of working for UHNW individuals as opposed to high-profile corporate entities?

Individuals are not answerable to shareholders or a board – they are able to make irrational or emotional decisions which can make advising them challenging as well as deeply rewarding because of the direct impact advice will have. This is why empathy is particularly important.

What are the biggest challenges facing firms of your size and specialty in the UK?

The ever increasing complexity of tax legislation is particularly challenging for the private client practitioner. The regulatory environment has also become more demanding.

What specific trends are you seeing in the legal services market?

It is always challenging to recruit good candidates and we are constantly on the lookout.

How does the firm retain talent in an increasingly competitive marketplace?

The quality of the work (and the clients) is a major incentive, as is the opportunity to work with some of the country’s leading lawyers in a collegiate and collaborative culture.

What do you look for in a lawyer wanting to make partner?

As well as technical expertise, I am looking for someone who is commercially astute and is able to generate work either from existing clients or by attracting new clients.

What are your firm’s policies on diversity and inclusion, as well as wellbeing?

We are committed to providing equal opportunities and the firm ensures that everyone is equally valued, respected, and treated with dignity and fairness. We have regular training on diversity and inclusion. We have also adopted an agile working policy to assist members of the firm to work from home.

What has been your greatest achievement, both in a professional and personal capability, to date?

Moving to Payne Hicks Beach in 2012 with my clients and followed by a small team of solicitors and trust managers from my previous firm was not only an achievement but also one of my best decisions.

How would you define your firm’s culture? How important is firm culture to you?

Our firm’s culture is based on (i) collaboration and respect in order to offer the best possible multidisciplinary service in the market; (ii) helping our clients to make business happen and to make better business decisions; and (iii) assuring the best and constant development of our members, clients, and that of our society.

What’s the main change you’ve made in the firm that will benefit clients?

The institutionalisation process of our firm to assure that our clients receive advice from the most qualified and specialised professionals within the firm. More recently, in the past year we created a new area in the firm responsible for innovation and within its responsibilities, this area has established a project management process to achieve a more efficient service for our clients.

What does innovation mean to you and how can firms be better at it?

For us, innovation is any new procedure, process or structure developed by our teams to implement a transaction or to develop a product in order to provide a better and more efficient service to our clients. In this respect, technology becomes a tool, however, creating a culture within the firm that results in trained lawyers incentivised to innovate is even more important.

Is technology changing the way you interact with your clients, and the services you can provide them?

It is starting to impact for purposes of cybersecurity (financial sector) and payment processes; but it will accelerate its impact in the years to come. We therefore need to create a more technological environment to create and incentivise a culture that focus more on innovation and technology.

What are the biggest challenges facing firms of your size in Mexico?

Becoming more institutionalised and consequently more strategical ready to adapt to the new challenges our market is presenting and avoiding internal competition.

What are the top things most clients want and why?

• More knowledge of their business and closer collaboration with their GCs;
• Lawyers that resolve problems, but not only legal problems;
• More creativity on fee arrangements;
• Innovation

What have you found is the best way to retain talent – both at partner and associate levels?

Assuring that our talent is convinced that the firm: (i) is committed to their professional and personal development; (ii) assigns responsibilities to our associates; and (iii) provides them the opportunity of working in projects that have a certain purpose aligned with their motivations.

The foregoing is supported by having a career plan, through constant feedback and by establishing coaching and training programmes aimed to develop their professional and soft skills.

Organisations like ours need to create the platform that will allow people to develop themselves at their maximum level and thereby permitting them to make better and larger contributions to the firm, our clients, and our country.

Since becoming managing partner what’s surprised you most about running a firm?

The challenge of being a good leader by learning to better listening and communicating to our partners and teams; as well as convincing partners to look to their firm as a business and act accordingly.

How has your role/involvement in client-facing work changed since becoming managing partner?

The compensation committee has set forth my objectives which relate more to institutionalising the clients’ relationship, focus on strategy, and on positioning the firm in the international markets, as well as participating together with other partners in those transactions where my participation could contribute some value.

Clients understand that my partners will be the ones performing the work and that my role is more strategic but that I will intervene as requested and needed.

What advice would you give to the next generation of partners ready to rise the ranks?

Devote 10% of your time to learning about your client’s business and to develop a closer relationship; get the support of the firm’s BD area and share your information with those areas; support the leaders of the firm and become one of them in due course.

Do your job with passion and enjoyment; protect and live our values and culture; develop the capability of listening to our partners; assure that we hire people based on their potential; and continue focusing on the development of both professional and soft skills of the firm’s members.

Finally, trust our business model and measure performance.

What are your firm’s policies on diversity and inclusion?

The creation and implementation of a sustainability plan is a fundamental part of the process of institutionalisation of our law firm. Currently our main axes of social responsibility are diversity and inclusion policies, individual participations with the community, a pro bono programme, teaching, collaborations in forums, inclusion policies, and good working conditions, among others.

In order to achieve this goal, we are now in the process of integrating our projects into a single platform that allows us to position ourselves nationally and internationally, strengthen a culture of global social responsibility and, by the end of this year, join the UN Global Compact.

How would you define your firm’s culture?

Our firm was founded in the US in 1979 by a group of lawyers, staff, and clients who left a large corporate firm because they believed in doing things differently. Four decades later, this belief is still a cornerstone of the firm’s culture. Our Brussels office was started in 1999, and has become a family within the family, where staff and attorneys work together in a cohesive, collaborative way. We find that it results in smart, down-to-earth professionals who embrace the challenge of practicing sophisticated, complex law.

Our professionals value having a life outside of work and always treat clients the way they themselves would like to be treated. It should therefore come as no surprise that Crowell & Moring takes great pride in the fact that when new lawyers in any Crowell & Moring office are asked why they joined the firm, the people and the culture are always among the top reasons.

What’s the main change you’ve made in the firm in the past few years that will benefit clients?

Our legal project management programme (LPM) is much more than a necessary response to expanding business risks and shrinking legal-services budgets. It is a framework for providing top-notch legal counsel and litigation services in a manner that ensures predictability, accountability and efficiency. We have developed a suite of in-house LPM tools and mandated their use for certain types of clients and engagements.

Legal project management is not a new development at Crowell & Moring, and many LPM processes and best practices have been in use at the firm for years. What distinguishes our LPM programme today is the creation and implementation of our linked, proprietary tools: Matter Planning and Matter Management.

Our Matter Planning tool is the foundation of our LPM system. Developed in tandem with our in-house information technology department and legal practice leaders, Matter Planning features the ability to create a budget or to use a suite of customisable templates that enable the input of key engagement data: statement of work (desired legal outcome(s) from the client’s perspective, key assumptions to develop the budget, what’s in scope and out-of-scope, constraints and risks), timekeeper resources, and various pricing scenarios to develop realistic budgets based on the particular facts and circumstances of each matter.

Matter Management is a flexible, intuitive tool that enables input, review, analysis and reporting of legal project data. Our IT department worked closely with firm partners, counsel, associates, and paralegals to identify the information that is most important in helping them manage and complete even the most complex client projects. Client input and feedback is equally important, and we spoke to a number of in-house counsel to better understand and incorporate their information requirements.

Our Matter Management system enables our lawyers and paralegals to monitor actual hours and time-value progress against budgeted amounts and milestones. We are able to update and track tasks and deliverables by person responsible, add important dates to a shared calendar and set upcoming alerts, maintain discussions between team members and project participants, log open issues and track them to resolution, and produce effective, understandable reports.

When a project or matter is concluded, it is not yet complete. Matter Management further enables us to track lessons learned and conduct post-mortem analyses so that we can improve our processes and develop additional best practices that reduce client risk and improve satisfaction.

When our clients succeed, we succeed. LPM helps us achieve this common goal.

What are the biggest challenges facing firms of your size in Belgium?

For a law firm of the size of our Belgian office, the challenges lie in growth and in establishing the processes needed to accompany this growth whilst remaining agile. Most firms, and companies, face an uphill battle once they hit a certain size. The struggle is about taking the next step towards becoming a mid-sized law firm in Belgium and finding the people with the right attitude to join. And once they’ve joined, the struggle consists in setting up processes and procedures to uphold the required professional level, without jeopardising the present agile culture.

What have you found is the best way to retain talented partners and associates?

The most important factor in retaining people – whether associates, partners, or staff – is ‘firm culture’. Excellent coaching, exciting matters, great client encounters and high tech are almost a given these days. What you want to strive for (and what we have established) is an open culture in which every individual can thrive and be a member of several multi-purpose teams. Also, the current generation wants to be involved in (the organisation of) the firm. We incite people to take initiative, to come with new ideas and to, collaboratively, realise as much as possible. It’s because of this undefined ‘firm culture’ that people want to stay aboard.

What are your firm’s policies on diversity and inclusion?

Diversity is, for us, about creating a culture of inclusion. We are a multinational firm that embraces different backgrounds, ideas, traditions, and perspectives. In January 2019, we were part of the launch of the Brussels-based Legal Diversity & Inclusion Alliance (LDIA) of which we are a founding member. We are committed to creating a workplace where there is no room for discrimination or prejudice.

At Crowell & Moring, people are recognised for their unique talents, backgrounds, and perspectives. Our commitment to diversity and inclusion takes the form of a pledge to eliminate discrimination in the workplace, to promote an inclusive organisational culture, and to take tangible actions to fulfil our mission. We strongly believe that combining our efforts will greatly aid our progress towards achieving these goals.

In 2017, Crowell & Moring provided unconscious bias training for those in leadership positions, including the management board, practice group leaders, the lawyer development and recruiting committees, and senior staff members. We also hosted the firm’s inaugural Diversity & Inclusion Retreat, which brought together more than 70 of the firm’s LGBTQ+ attorneys and attorneys of colour for two days of business, professional, and networking development opportunities. In the spirit of continued dialogue, we also worked with external consultants to create diversity dialogues, in which almost 300 lawyers and staff participated in small group discussions, designed to be a safe forum for exploring how current events and other external issues affect internal firm dynamics.

In 2018, the firm launched Sponsorship 2.0 – Yearly Cohort, building on our foundation of sponsorship (original pilot in 2012). We have collaborated with an external consultant to create an opportunity for 36 of our lawyers – associates, counsel, and partners – to participate in sponsorship circles, including workshops and informal gatherings, over six months in 2018. Circles focus on inclusivity of women and diverse lawyers, consisting of two sponsors (partners) and two protégés (mid-level associate or counsel) that are strong performers, from a broad range of practice areas and geographic locations. We have also committed to abide by the Mansfield Rule, as part of the Diversity Lab’s Mansfield Rule 2.0 initiative, which will further drive our efforts to ensure that we have diverse individuals under consideration for firm leadership positions, in lateral recruiting, and for promotions.

More recently, Chambers Associate ranked Crowell & Moring fifth for ‘Best Firms for Diversity’ in its 2018 survey (among 40 leading firms); Law360 ranked Crowell & Moring fifth in its 2018 Diversity Snapshot for ‘Best Law Firms for Minority Attorneys’ in the 300–599 lawyers category; and Vault ranked Crowell & Moring 12th in its 2019 Associate Survey for ‘Overall Diversity,’ ‘Diversity for Minorities,’ and ‘Diversity for Women’ and 11th for ‘Diversity for LGBT Individuals’.

How can law firms best encourage innovation?

By embracing innovation in our culture and by listening to what clients want. Innovation at Crowell is about encouraging everyone to share their ideas and about working together across all levels contributing to the spirit of innovation with the goal of doing great work for our clients even better than before. It’s about aligning our business with our clients’ businesses. And it’s about embracing technology, which goes back to culture.

Is technology changing the way you interact with your clients, and the services you can provide them?

Absolutely. Technology is a game changer for the HOW we interact with clients and HOW we can provide services to them. But technology is not about the WHY. This quote sums it up very well: ‘Technology will never replace the comfort, trust, and human connection clients may get from knowing their lawyer is looking out for them and has their back.’ And even with technology, clients will want a trusted relationship, but preferably with someone who is tech-knowledgeable.

Differentiation is critical to buyers of legal services – how do you stand apart from the rest of the market?

At first, we would have said ‘culture’ but we know it’s very difficult to explain. There are of course other differentiators and amongst the most common ‘modern ones’ we go for the depth-of-expertise combined with a significant investment in the understanding of our clients business, and a no-nonsense pragmatic approach. We add on top of that culture and innovative service delivery models where applicable. A combination of those will help us to stand out.

What do you think are the top three things most clients want and why?

In our experience, this depends enormously on when, where, who, and how you ask this question. Maybe you can generate a top three for a certain sub-geographic market but even then you will find striking differences between positions, sectors, specific preoccupations, and locations.

Based on our experience, in our market, and combined with market research, we can state that the top three things clients want is (not necessarily in this order): level of service (responsiveness, interaction, personal touch), quality of work (although that is a given), and efficiency.

How have your roles/involvement in client-facing work changed since becoming managing partners?

It’s common knowledge that being a managing partner of a law firm brings about challenges. It can be difficult to balance all the different responsibilities required for the smooth running of the business. For this balance to work, a solid team of attorneys is a prerequisite. The strength of both our IP and competition departments is what makes it work. Kristof was sole managing partner of the Brussels office for five years. In April 2017, Thomas joined him as co-managing partner, and their reliable tandem has given Kristof some breathing space and has capably steered the Brussels office ever since.

In conclusion, the managing partner role did not change our involvement in our legal practice. We are still on top of things, develop strategies, review briefs and plead cases. The leg work, however, is done by a committed team. The MP role forces us to staff and manage better which is beneficial for the respective teams and the Brussels office. The MP role should also not be overestimated. Very often, MPs get side tracked and lose sight of their practices/clients and hide behind the management role. We try to avoid this at all costs.