NNLS Magazine issue 34

Norfolk Law Magazine of the Norfolk & Norwich Law Society - www.nnls.org - Winter 2017/18

Inside...

All the pictures from this year’s Countdown, upcoming CPD and social events, news from The Law Society and more...

Norfolk Law - Contents - 3

This issue...

Welcome to the Winter edition of Norfolk Law - produced in the depths of the worst snow we have seen for years! Read on to find out who won Countdown 2018, info on this year’s Annual Dinner which goes from strength to strength, and the 2018 Law Walk, where we are hoping for some slightly brighter weather! We also have an update from our Law Society Council Member and our usual mix of what’s happening locally on the law scene - office design, consultations and even a crossword!

Norfolk L Magazine

aw

of the Norf olk & Norw ich Law Soci ety - www.nnls .org - Wint er 2017/8

Inside...

All the picture s from this year’s Cou and social ntdown, upc events, new oming CPD s from The Law Society and more...

Contents 4

President’s Report

18

Law Office Design

5

Committee

20

Crossword

6

Countdown 2018

21

Five Cardinal Sins of Leaders in Law Firms

8

Dates for your diary

22

Read Before You Leap!

9

Important Notices

24

CON29DW

10

Richard Barr’s Law Society Update

26

The ‘3 Ps’ of Valuations

15

A case for reversing Caveat Emptor?

28

Six Key Characteristics of Highly Successful Law Firms

16

Norfolk Junior Lawyers

30

Looking for Appropriate Home Care Services

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4 - Norfolk Law - President’s Report

President’s Report Many of you reading this will have been relieved to hear that the Legal Services Board has given itself more time to approve or reject plans to change the way solicitors qualify. The Solicitors Qualifying Exam is due to be introduced in 2020 and the LSB originally had until mid February to confirm whether the SRA’s application to press ahead with implementation was approved. That deadline has been extended until early March, during which time it is expected the SRA will need to answer questions regarding the content and administration of the SQE as well as addressing the proposal that those taking the exam will not have needed to have undertaken either a degree in law or a conversion course. NNLS will be following this decision carefully, mindful of the impact this will have on member firms and those wishing to support the younger generation in entering a career in law.

January’s Insolvency training courtesy of Hardwick Chambers proved very successful and over the next few weeks we have a family law

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Advertising Simon Castell Managing Editor Sue Bailey Layout Stuart Turner pp. 5-20 David Coffey pp. 21-32

training session and training about GDPR coming up. We are also organising several social events for later in the year, including the annual dinner which will take place on 21 September. We have been trying to research the age of Norfolk and Norwich Law Society and our best estimate suggests this is the society’s 175th year and we intend to make this year’s dinner an extra special event in celebration of this significant milestone.

My condolences are offered on behalf of NNLS to the family of Carolyn Phillips who passed away in December 2017 shortly after being diagnosed with pancreatic cancer. Carolyn had worked as a lawyer in Norfolk for 38 years by the time of her retirement in 2015. She was also a committee member of NNLS for many years and was a valued member of the legal community.

Sue Bailey President Norfolk & Norwich Law Society

Accounts Tony Kay

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Norfolk Law - Committee - 5

6 - Norfolk Law - Event Preview

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Norfolk Law - Event Preview - 7

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8 - Norfolk Law - Event Review

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Norfolk Law - Event Review - 9

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10 - Norfolk Law - Law Society News

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12 - Norfolk Law - Law Society News

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Norfolk Law - Law Society Update - 13

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Norfolk Law - Consultation - 15

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16 - Norfolk Law - Junior Lawyers

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18 - Norfolk Law - Local News

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20 - Norfolk Law - Crossword

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Norfolk Law - Advertorial - 21

The five cardinal sins of leaders in professional firms

By Fiona Hotston Moore – Partner, Ensors Chartered Accountants

1) “ ....this is how we have always done it” I have lost count of how many times I have heard this said in professional firms of all sizes. Professional firms often work on an apprenticeship basis where experienced professionals recruit and hire trainees who will work their way up the greasy ladder. Inevitably, the future of these trainees is largely in the hands of the old timers who have been in the firm “man and boy”. Sadly, this culture tends to discourage new ideas and innovation; even experienced and proven hires from outside will struggle to promote change without critical mass. Firms who hire externally should encourage those recruited to critically review the processes of the firm and then make sure they listen to their views.

2) “...why change? We are doing okay?”

It’s all too easy when profits are okay for leaders to stay in their comfort zone rather than address the apparently small issues that hold the firm back from greatness. The comfort zone is probably the greatest barrier to success for all professional firms. Unfortunately, for today’s professional firms, “doing okay” can quickly slide into poor performance which then leads to the drift of the best professionals which in itself accelerates the slide in performance.

3) “...first things first, we need a committee...”

Committees kill innovation. Successful entrepreneurial firms are able to make small changes quickly, give professionals sufficient autonomy to try new things, share ideas and celebrate success.

4) “...its just the way he is” or “ but he is our best business winner” or “he is a maverick” or ‘he is just driven” Unfortunately partnerships can be like marriage and all too often poor behaviour by employees or even partners has been tolerated by the leaders of the firm for many years. In such cases it is very hard to summon up the enthusiasm to tackle the behaviour even when it is raised in staff surveys, exit interviews etc. Unfortunately inaction, or the perception of inaction, is tantamount to condoning unacceptable behaviour and will impact the performance of a team and the retention and recruitment of future stars. I have myself been told that the behaviour of an individual is tolerated because of the danger of losing their financial contribution to the firm and yet, if they were to leave, you often find that quite the opposite is true.

5) “they are too good for us and we won’t be able to retain them” Too often professional firms recruit for competence rather than excellence. The aspirations of those recruiting staff are set low. There is a dearth of talent in the professional sector today and firms should be willing to create opportunities for strong candidates who will drive innovation and demonstrate commitment to client lead services.

Fiona Hotston Moore T: 07770 642 491 E: Fiona.hotstonmoore@ensors.co.uk www.ensors.co.uk/for-law-soc/

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22 - Norfolk Law - Advertorial

Your software swap checklist: Read before you leap!

By Julian Bryan, Managing Director, Quill Considering changing software suppliers?

If, for whatever reason, software change is essential, we’ve compiled five questions to ask yourself and prospective suppliers to help you really assess your options and carefully research the marketplace before you switch over.

The preparatory stage of your software swap project necessitates watching software demonstrations, meeting key personnel, reading contractual documents, including terms and conditions, asking this series of probing questions then evaluating your combined results.

As an evolving profession, it’s easy to see why law firms upgrade their systems from time to time. You may expand or contract in size, adjust your area specialisms, accommodate new legislation and reform, merge or separate, face ever-moredemanding clients or maybe you simply made the wrong technology choice in the first place and support from your existing supplier is poor.

Software purchase isn’t a straightforward decision because there’s an inevitable time investment on your part as you roll out new systems. Your new supplier can, of course, ease this process by assisting you throughout implementation, data transfer and end user training.

This is a major contributory factor to any successful conversion.

Selecting the right technology partner, then, is paramount, particularly as this is possibly the beginning of a long-lasting working relationship between your two businesses. If your legacy IT infrastructure is ill

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suited to your current and future requirements, it’s time to tackle those tricky software decisions.

When it comes to the allimportant questioning phase, here are the five questions:1. Are you happy with the system’s legal accounts and compliance capabilities?

Accounting functionality should be easy to use by fee earners, cashiers and managers alike, in order to simplify logging of expenses, billing, posting of e-chits, monetary transfers, bank reconciliations, supplier payments, financial reporting and other accounts-related tasks. A single system for client and office accounts is much preferable, otherwise you’ll be constantly toggling between applications and wasting valuable (potentially chargeable) time in the process.

Compliant accounts management is dependent upon accuracy and due diligence.

Search for a package that comes with an in-built warning system, automatic anomaly reports, AML scanning, identity verification, conflict checking and other risk management tools so that compliance with the SRA Accounts Rules, CLC Accounts Code and Scottish Accounts Rules is assured.

2. Have you established your exit strategy if your software choice doesn’t work out?

Contracts are occasionally outgrown. Check under what types of circumstances the contract can be terminated, specified notice period and what happens post-termination. For example, your supplier should act as the custodian, not owner, of your data and documents.

Ensure everything’s exportable upon migration, and that formats and names are preserved.

Thereafter, your supplier should delete from their stores, otherwise you’ll fall foul of data protection rules. With imminent

Data Protection Bill and GDPR laws coming into force this May, your duties in this respect are more onerous than ever before. Heavier too are the fines imposed for non-compliance.

Your supplier must follow the right procedures in safeguarding your valuable data.

3. Does your potential software supplier belong to the Legal Software Suppliers Association (LSSA)?

The LSSA is the UK body for legal systems developers and vendors whose aim is to set and maintain professional standards within the sector and manage areas of mutual interest between solicitors, legislative bodies, government agencies and software houses.

As such, member firms are bound by the LSSA’s strict rules and code of practice. For you, this provides a guarantee of the highest quality software and highest standards of service.

4. Can you speak with a real human being on the phone for help and support?

Will you be dealing with an actual person when you become an end user? Sometimes there’s no substitute for being able to pick up the phone and speak with someone who understands what you’re going through and can rectify your dilemma.

Consider time zones, standard support hours and availability of extended out-of-hours support.

What promises are made within SLAs with regards to system uptime, monitoring, maintenance and service responsiveness?

These metrics provide your business continuity and disaster recovery plans.

For those busy periods during which phone interaction just isn’t possible, of course, email, fax and online chat options are important too. It’s highly likely you’ll utilise all these communication methods as time progresses.

5. What’s in the contract and can you digest at length before signing?

It’s the small print that often causes problems.

Look at assigned liabilities, responsibilities and disclaimers.

Don’t be rushed into signing contracts without having been given sufficient time to read and analyse first. If your supplier is forcefully requesting your signature, and you feel pressured to commit against your will, alarm bells should be ringing.

Contracts signed in haste often lead to disappointment and / or surprise, escalating costs.

There’s a justifiable reason why contracts are lengthy documents. It’s a legally binding agreement between you and your supplier. Insist on having the necessary time to pore over the content of your contract, and only sign when you feel ready and comfortable doing so.

To conclude, by following this plan, you’ll find out exactly what being a client will feel like, both in terms of software usability and staff interaction, as well as what happens should you later decide to cancel your subscription.

While this is certainly a good starting point to your software swap, it’s by no means an exhaustive list. There are other pressing questions to ask, not least regarding cyber security measures, data centre credibility, industry track record and live reference sites.

Julian Bryan joined Quill as Managing Director in 2012 and is also the Chair of the Legal Software Suppliers Association. Quill is the UK’s largest privately owned legal software and outsourced legal cashiering provider with 40 years’ experience supplying outsourced services, legal accounts and practice management software to the legal profession. To contact the Quill team, call 0161 236 2910 or email info@quill.co.uk.

26 - Norfolk Law - Advertorial

3P’s of Valuations: Probate, Partnership and Pre-nuptials How many businesses have a partners’ or directors’ agreement? I am sure most lawyers are for ever pointing this out to their clients, or bemoaning the lack of one when things go wrong. Well in the same way forensic accountants are always pointing out the lack of an independent valuation of that business is just as foolish, both at the time any agreement is signed or when it all goes wrong.

Take a standard partnership agreement. It will talk about the respective rights and responsibilities of the partners, who does what, and how to resolve problems etc. The first agreement will usually be fine financially because assets in a new partnership are usually, but not always valued. New partners joining may get a share of the partnership assets, but what are those assets worth?

It matters not only if things go wrong, but effectively the existing partners are selling a share of the partnership, and that has capital gains tax implications. They might not realise it but it does, and it may, indeed in my experience often is, actually a capital loss or gain to be reported on their tax return, and you cannot use the balance sheet value for this purpose.

Likewise, we have seen recently a professional negligence case against an advisor who advised on a partnership agreement that gave each partner 50% of the partnership when the business came together when in actuality one set of assets was worth far more than the other.

Business valuations need not be expensive. A ballpark valuation is likely to be less than a days work, and so typically costs a few hundred pounds. That can then save hours of argument years down the line. A recent case for a Norfolk partnership saw a partnership breakup where the agreement only spoke of the share of profits, but neither side had considered the split of capital assets, because nothing says that has to follow the profit share. A retrospective valuation of the two businesses that came together is perfectly possible, and that gives an easy starting point, but cheaper and better in the eyes of the court is a valuation done at the time, and £500 at the time saves thousands later.

Similarly valuations of a business at time of marriage are still proving useful on any subsequent divorce. Today I have been in Cambridge County Court sorting out a matrimonial case where one side, for unrelated reasons, had a valuation of the family business at or about the time of the marriage, and that has totally undermined the other side’s case for the value they have added to the business.

Finally who has seen a will that leaves the business to one party and other assets to other parties, and then somewhere in the wordy bit says something like “and in recognition of Son 1 getting the business, Son 2 gets £50,000” - arguments abound. Equally the IHT return on leaving any part of a family business requires a valuation, and you would be surprised how often the value of a business for probate gives a lower valuation because the deceased was key to the business, so just taking a balance sheet valuation will nearly always be wrong, usually to the detriment of the estate.

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The Chamber of Experts * Forensic Accounting * Medical * Veterinary Science

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Visit our website at: www.the-chamber-of-experts.co.uk Contact: Tim Vogel BSc, ACA Tel: 01760 725 880 Fax: 01760 724 855 Email: vogel@gybea.co.uk DX: 31767 Swaffham 48 The Street, Sporle, Swaffham, Norfolk PE32 2DR Tim Vogel is an experienced Forensic accountant with a national reputation. He has appeared in courts ranging from Dereham Magistrates to the Court of Appeal. He founded The Chamber of Experts to sit alongside his busy accountancy practice and runs both from sunny Swaffham. 01760 725880, vogel@gybea.co.uk

28 - Norfolk Law - Advertorial

6 key characteristics of highly successful law firms Successful law firms share many common characteristics. There is no single, magic formula for success. Every firm is different and their service offerings and markets can vary widely. That said, there do seem to be overriding principles which, when put into place in a firm, yield results.

Create a clear business strategy.

This is probably the most critical characteristic. Armed with both a clearly defined service proposition and market you wish to serve, you are half way there.

Once these are decided, there is no room for distracting forays into areas that might dilute the main proposition.

On its own this is not enough.

You should make sure that the strategic message is understood by all staff and is broadcast externally to allow clients and potential clients to digest and understand.

Differentiate your practice.

With a clearly defined strategy established and communicated, your USPs (Unique Selling Propositions) should enable you to differentiate your practice in the marketplace. However, that is only half the differentiation story. As any good marketing professional will tell you, you should back this up with brand values which appeal to your clients.

After developing your service offerings, your markets and your USPs, it’s time to develop a “style”

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that will appeal to your clients.

As a result, your brand values will become clear in their minds.

Put your clients front and centre.

The most successful firms go to great lengths to make sure the services they provide are consistent and timely. Paying lip service to client care rather than delivering it is not enough.

Establish protocols which allow you to manage your clients’ expectations. These should cover, pricing, delivery timings and information updates as well as warnings of any potential delays.

When you have these protocols in place, audit them regularly.

Also, perform periodic client surveys. These will allow you to fine tune your service delivery and keep abreast of changing client demands.

Allow the managing partner to manage.

This one really can be a pot boiler for some practices. In some, the lead role is something to be avoided at all cost due to the impact it will have on fee earning ability. In others, many senior partners try to do both jobs and end up falling between two stools.

The most successful practices have a managing partner who devotes the overwhelming majority of his or her time to management and client development. More and more are considering a managing partner who is business qualified manager rather than just an LLB. If you aspire to lead your practice, you must accept that your fee earning days may well be over.

You may like to consider getting a

sound business qualification such as an MBA too.

Be the best place to work.

Organisations that develop their staff, invest in them and create an enjoyable workplace culture outperform those which do not.

It’s not rocket science. Engaged, committed staff perform better and the revolving door syndrome is avoided. Perpetually recruiting replacements for disgruntled leavers is an expensive hobby.

Use technology to improve the practice.

Firms that invest in new technology and modern practice management systems are the real winners. Good IT systems and software provide significant advantages.

For example, in LawWare’s software, compliance, efficiency, client relationship management and accounts are all designed into the same package. Its main benefits are to help your staff, assist in client development and keep the SRA and various Law Societies happy. It’s a small price to pay for something that will make you more efficient and productive.

Needless to say, this list of 8 characteristics is not exhaustive. However, they are as good a place as any to start and should provide you with plenty of food for thought.

Mike O’Donnell, 2018.

LawWare Limited.

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30 - Norfolk Law - Advertorial

Looking for appropriate home care services is like travelling down a road paved with obstacles.

A relative or a friend is approaching the stage where it is likely that some care support will be needed. Talking it through about what form this support should take and then finding a care agency to provide the service sounds simple enough. The reality is likely to be different.

There are several excellent voluntary organisations that offer information about the care sector but unless you have one in your area or can research their websites on the internet or on others such as NHS Choices, you may find it difficult.

Libraries may have some or no information, or it will be hard to locate unless you ask. There are no standard leaflets which are universal. (There used to be one for NHS Continuing Care, but this is no longer freely available).

Regardless of where the information is found it is likely that finding the right care package is going to take time. The process for many is often described as ‘frustrating and time consuming’. This is especially the case for working people as most of the care sector, including social services are not weekend friendly.

Having a care service means that it must be paid for.

Depending on financial circumstances this may be State funded or partially State funded. If the State is going to fund all or part of a care package and is going to contract with an agency this will take time to become reality and in the interim a person may have to make their own arrangements.

If a person is funding their own care, then they need to locate a care provider to support their needs. It might be thought that in a city or urban area this would be easier than in a rural location, but this is not necessarily the case. In city and urban areas there will be more providers but also more people to support.

Many care providers have one main customer, their local council. This may mean that though they could provide the support asked for, it may not be at a time of choice, a person may have to have several, different care workers coming in or simply they may not be able to help.

Hourly care, shift care, night sitters, night sleepers, ‘pop in’ 15-minute visits, 24-hour care, live-in care, specialised care, domestic care and companionship care, will all be available but not in every locality. The cost of care services can be different for the same type of care package from different providers.

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Contrasting the financial rates charged for weekdays, weekends, night times, bank holidays, having employed care workers or self-employed care workers as provided by Introductory agencies is not always easy to do as some providers will want to make an assessment visit first and will not offer a ‘ball park’ figure.

To make the journey a little easier before the time of need, the advice is to investigate what is available in the local area, download details, ask for brochures and put the information in a safe place.

Angela Gifford MD of Able Community Care info@ablecommunitycare.com