PI Brief Update

The Changing Face of a Law Firm - Jeanette Aspinall, Fletchers Solicitors

09/10/13. When the delayed Jackson reforms finally came into effect in April this year, firms across the UK braced for the worst. Six months on, Jeanette Aspinall, head of medical negligence at Fletchers Solicitors, reveals an industry in flux and how the changes have led to innovation.

Earlier this year, redundancies, corporate mergers, even bankruptcy felt imminent for many. Indeed, since the changes to civil litigation were introduced under the Legal Aid, Sentencing and Punishment of Offenders Act 2012, both small and larger firms have closed doors. Others have chosen to wind back their personal injury offering due to diminished profitability, and others still have announced what seem unlikely mergers.

Initial speculation about the crippling impact of the changes, however, has for the most part remained just that - speculation. More surprisingly still, the ban on referral fees among other restrictions may have pushed solicitors in the PI arena to review their commercial approach and focus on strengthening services to cater to genuine demand. The legal landscape is fast changing, and arguably for the better.

Disrupting the dynamic of a ‘no win, no fee’ business model has clearly upset the business model of a traditional law firm. Billed as an attempt to restore balance to a system riddled with inflated insurance policies and excessive fees, the end of recoverable after-the-event insurance premiums, coupled with the advent of a widely criticised fixed-cost scheme, has undoubtedly seen profits slow. But of course that is the point. The move has effectively forced PI solicitors to embrace new marketing strategies in order to promote services, as well as to source new clients.

Fletchers was fortunately in a relatively strong position to comply with the referral fee ban, using its freedom as a limited company to innovate and put in place alternative strategies. As a limited business, the management team was able to react quickly and make decisions which would have taken much longer to achieve in a traditional partnership structure.

Resources could be turned on and off and allocated to commercial sweet spots, while in a partnership each partner would still require their share of the marketing support. Additional legal and admin support was also put in place and practitioners were freed of non-core activities, allowing them to be the very best lawyer that they could be.

With media and audiences increasingly segmented, it’s crucial that PI solicitors connect with potential clients in a variety of ways. Brand consistency and a recognisable media presence are hallmarks of any thriving organisation, and the business of personal injury law is no exception.

This doesn’t necessarily mean spending more on advertising and marketing campaigns; rather, it warrants spending time to properly define targets, as well as to refine brand messages. In a digital age, a staggering number of law firms continue to ignore the opportunities of internet marketing. An interactive and informative website can form the basis for succinct online visibility, and is also a highly accountable communications tool. And yes, you still need to work hard and keep the clients that you do have happy.

Fostering a reputation for strong litigation work that means existing clients will actively refer your services will certainly help to combat any effects of the referral fee sanction. But it’s the law firms that are willing to go that one step further to innovate and transform their business models into stronger versions that will succeed and seize market share.

Jeanette Aspinall
Fletchers Solicitors
twitter.com/netaspinall

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