1. FEATURES
PEER TO PEER: THE QUARTERLY MAGAZINE OF ILTA48
The Hidden Potential
of Transactional Law
RETHINKYour Business Model

2. WWW.ILTANET.ORG 49
We can probably all agree on a few things:
1. Law firms are continually pressed to
do more with less
2. Lawyers are increasingly turning to
consultants to reduce costs and to
alternative fee structures to attract
and retain clients
3. Those measures simply aren’t enough
It doesn’t have to be that way. It is still
possible for law firms to be profitable, and
sometimes in unexpected ways. Consider,
for instance, the transactional law space —
possibly one of the most underexploited
areas of legal practice.
QUESTIONING THE STATUS QUO
In the United States, transactional work
has fallen into a variety of categories. In
larger firms, it’s one of the departments that
forms part of a full-service offering and is
frequently considered an auxiliary function
provided to high-profile clients — often as
a loss leader. There are also boutique firms
and regional players of different sizes that
practice in typical transactional law areas
like residential real estate, personal injury,
intellectual property and debt collection.
While transactional law firms and
departments want to be profitable, their
current business model prevents them from
working to their fullest potential. Part of
the challenge stems from the “hoarding”
mentality that appears to be building in
some firms — a mentality that results in
lawyers keeping work instead of delegating
it, so they can amass billable hours and
cement their positions in the firm, even if it
means sacrificing efficiency. In other cases,
firms realize there’s an issue but continue
to throw resources at the problem blindly,
hoping to find yet another solution that
will inevitably be short-lived instead of
undertaking a more comprehensive review
of the situation.
All of which raises the question: How
long can transactional law continue to be
delivered in the way it is today? Global trends
tell us the status quo has to change.
A BETTER WAY?
Change is already underway in jurisdictions
other than the United States. For instance,
in the United Kingdom over the last several
years, legislative amendments have opened
the door to alternative business structures
(ABS) that have enabled non-lawyers to get
involved in the management or ownership of
businesses that provide legal services. As a
result, organizations other than law firms —
including one of the U.K.’s leading grocers —
can now offer consumers another option for
their legal needs, primarily in the transactional
law arena. Similarly, in Australia, a change in
legislation paved the way for law firms to raise
funds through an initial public offering (IPO),
allowing non-lawyers to invest in the firms.
In these jurisdictions, as alternative
business models become more prevalent,
the line is getting blurry between the roles
lawyers and non-lawyers play in the provision
of legal services. Increased competition has
highlighted the commoditized nature of
transactional law and has put pressure on
traditional law firms to deliver services in
faster, cheaper, smarter ways.
Although these types of legislative
changes haven’t been introduced in the U.S.
yet, it’s only a matter of time until they are.
We’ll eventually see consumers getting a will
and power of attorney with their laundry
detergent at a big-box store. That can only
mean even further pressure on firms and the
way they operate.
How will firms deal with that kind of
competition? It won’t be enough to continue
to throw resources at processes that are
inefficient or that emphasize people instead
of workflows.
Instead, wholesale change is needed.
And the sooner, the better.
RE-ENGINEERING FOR THE FUTURE
Although technology will play a critical role
in future-proofing your firm, it’s even more
critical to rethink your business model first.
Law firms have traditionally focused on the
people part of the equation — sometimes at
the expense of efficiency. It’s time to develop
the workflows that will make firms operate as
efficiently as possible. Once those workflows
are established, firms can implement the
technology that will best support their new
processes.
As alternative business
models become more
prevalent, the line is
getting blurry between
the roles lawyers and
non-lawyers play in
the provision of legal
services.
About the Author
Jeffrey Brandt has been the CIO for several top 100 U.S. law firms.
With almost 30 years of experience in legal automation, Jeffrey
now consults with law firms and professionals on a diverse range
of information and knowledge management projects. Jeffrey is also
the Editor of the PinHawk Legal Technology Digest and a frequent
educational speaker. Contact Jeffrey at jeffrey.k.brandt@gmail.com.

3. PEER TO PEER: THE QUARTERLY MAGAZINE OF ILTA50
FEATURES
Drawing on the example of the
evolution of transactional law in other
jurisdictions and that of U.S. firms that
seem to be on the right path, we offer
the following suggestions to start you on
making your transactional law practice
more profitable:
• Revise Your Organizational
Structure: Reconsider how your firm
is organized and managed. Lawyers
are trained to excel in the practice
of law, but they might not have the
same capacity for the business of law.
Advancements in the U.K. demonstrate
the value of letting lawyers do the
lawyering while non-lawyers take care
of the business aspects of running
a practice — such as the marketing,
relationship management and
rainmaking obligations that lawyers are
saddled with under traditional models.
This approach sets non-traditional U.S.
law firms apart.
• Develop Efficient Workflows: Make
workflows and not people the “heroes”
of your firm — and make them as
efficient as possible. Do away with
the hallowed billable hour mechanism
and watch the culture that encourages
hoarding of work dissipate. Examine
the steps required in each transaction
and “chunk” out the work to make its
execution more streamlined. Chances
are, legal skills aren’t required for every
step. This enforced allocation of work
In response to the growing dissatisfaction expressed by clients about the value of the legal services they receive, here are
some alternative business structures that have surfaced throughout the industry:
Established in the U.K. in
2011, Riverview Law offers
legal services at fixed fees,
leveraging effective technology
and workflow systems. Taking
advantage of the change in
U.K. legislation, Riverview Law
has brought on AdviserPlus
Business Solutions and DLA
Piper as strategic investors.
riverviewlaw.com
It isn’t a law firm or an LPO,
and according to The Wall
Street Journal, “Axiom aims to
disrupt the way legal services
are delivered to the country’s
largest companies.” Axiom’s
innovation lies, in part, in
doing away with the traditional
trappings of the law practice:
partnership pyramids, lavish
offices and a mistrust of
technology.
axiomlaw.com
A network of independent law
firms with in-depth experience
in more than 100 countries
worldwide, Lex Mundi can offer
clients expert representation
in the most challenging
cross-border transactions and
disputes. Member law firms are
located throughout Europe, the
Middle East, Africa, Asia and the
Pacific, Latin America and the
Caribbean, and North America.
lexmundi.com
Clearspire was launched in
2011 and “merges the best of
legal and business practices”
by allowing attorneys to focus
on the law, while business
experts manage the firm’s
operations. The firm functions
with an emphasis on promoting
collaboration, delivering value
and implementing efficient
workflows — all supported by
innovative methodologies and
technologies.
clearspire.com
Riverview Law Axiom Law Lex Mundi Clearspire
Examples of Firms Moving in the Right Direction
About the Author
Andrew Hutchinson is the Head of Sales (North America and EMEA)
at RBRO Solutions. Responsible for the expansion of RBRO’s client
base in his targeted regions, Andrew’s global knowledge of the legal
industry gives him unique insights into emerging technologies that
could potentially shape law firms in the U.S. and abroad. Contact
Andrew at ahutchinson@rbrosolutions.com.

4. WWW.ILTANET.ORG 51
About the Author
Howard Russell is the Co-CEO at RBRO Solutions. As the driving force
behind RBRO’s suite of offerings, Howard leverages the company’s
software tools and service capabilities to help law firms gain the greatest
value from their content. Recognized for his legal technology expertise,
Howard was the 2011 recipient of ILTA’s Consultant of the Year award.
Contact Howard at hrussell@rbrosolutions.com.
they deliver services in the face of
shrinking margins. Some firms are
attracting business by building new
models that offer white-label services
to corporations.
• Underpin Innovations with
Technology: Once you have clear,
established workflows that work and
processes in place that determine
how each incoming matter is going
to be handled and by whom, it’s time
to turn to the technology piece of the
equation. The challenge here is that
many technologies used address firms’
issues and needs as they currently
exist — including accounting based on
billable hours — but not for the future.
Changing the way firms operate and
handle matters means the technology
used to support those processes
must be different. It’s time to look
at developing systems that focus on
efficiencies and incorporate various
aspects of innovative workflows,
like direct feeds from clients, mobile
access, data acquisition and integrity,
collaboration, and document assembly
and management — all integrated
through a common platform. By
investigating technologies used in other
industries successful at automating
workflows, law firms might get insight
into the functionality, interface and
platform that will be the most effective
for the long term.
UNTAPPED POTENTIAL
Implementing the kind of comprehensive
change that will enable firms to turn a
transactional law practice from a loss leader
to a profit center is something akin to
getting an ocean liner to change direction
midcourse. However, though it might seem
unwieldy, it’s not impossible. And there’s too
much at stake to not try.
person can be consulted for their
existing expertise. An “expertise
system” can allow you to incorporate
your HR data with your ERM, with
a feedback loop that continues to
reinforce the system so component
parts of cases go to the right people
more and more of the time. And if
the U.K. example bears any weight,
external collaboration will also become
more commonplace as firms must
become more creative in the ways
will result in the delivery of a cheaper,
faster and better product to clients.
Plus, lawyers will be able to focus
exclusively on those tasks that require
their expertise.
• Make Collaboration a Priority: Both
internal and external collaboration
have the potential to increase your
firm’s profitability. For instance, if
you gain enough information about
everyone in your practice, the right
The Co-operative Group is the
U.K.’s largest mutual business.
It’s owned by nearly eight
million members and operates
4,500 retail outlets, including
food, funeral arrangements,
insurance, pharmacy — and
now legal services. Members
can turn to The Group for
assistance with everything from
family law and wills and estates
to real estate and personal
injury claims.
co-operativelegalservices.co.uk
Parabis was the first private
equity-backed organization
to be granted an ABS licence
in the U.K. It changed the way
legal and non-legal professional
services are delivered to the
insurance sector. Carving out a
niche in the transactional law
marketplace, Parabis generates
more than £100 million of
revenue in personal injury work
alone.
parabisgroup.co.uk
The Co-operative Group Parabis Group