Category: Uncategorized

Fannie and Freddie

Reading the coverage about Fannie Mae and Freddie Mac, a recent comment by a senior HSBC economist, reviewing the attitudes and approach of central bankers, came to mind: “U.S. central bankers are like the U.S. military ~ rush in, all guns blazing and never mind the collateral damage”.

Who is shaping our brave new world?

Picking up on my immediately preceding post, an excellent article, The road ahead, in The Law Gazette on the future of legal services.

In the present turn down it may sometimes seem difficult to look beyond the month end figures, but long term survival requires it, to say nothing of what the up and coming generation expects.

I cannot do better than paste in the final paragraphs,

For Susskind, the questions he always poses to the profession are: why is it that people pay lawyers good money? What value is it they’re bringing? The best answer he has seen comes from accountants KPMG, whose global mission statement is, he paraphrased, ‘we exist to turn our knowledge into value for the benefit of our clients’.

‘I think it’s a fantastic way of summarising what all of us as professional advisers seek to do,’ Susskind concluded. ‘We have knowledge, expertise, inside ideas that clients want to apply in their circumstances. It doesn’t say we exist to supply one-to-one consultative advisory service on an hourly billing basis…

‘The thing I want people to think about in the future is in the legal market we have to strive to find even more imaginative and creative and, I suspect, cost-effective ways of transferring our knowledge to our clients in a way they can apply in their circumstances.’

To do so, we also have to work out our strategies taking into account three or four key issues

1) The future will not be more of the same. Read Futurewise, Six Faces of Global Challenge by Patrick Dixon.

    2) The market for legal services is not effective: if you haven’t yet read Stephen Mayson’s paper Legal Services Reforms: Catalyst, Cataclysm or Catastrophe, you should. The problem? ‘An oversupply of qualified people without a corresponding increase in “qualified lawyer” work’; the result? ‘Too many qualified lawyers, too many law firms, and too many equity partners: and a market ripe for reform. . .  [leading to] consolidation, merger, and, occasionally, failure’.

      3) Legislation is simply accelerating inevitable change: the Legal Services Act will open the profession to new entrants, but technology, the great driver of change, is already altering the way our clients seek and take legal services (and this takes me back to The mobile lawyer, posted yesterday).

        4) The aspirations and expectations of the next generation, and the one following them, are not the same as those of us who currently determine the course of law firms.

          The mobile lawyer

          Shortly after reading The Road Ahead in the latest Law Gazette (I will come back to that in a later post), I read Jordan Furlong’s post Lawyers in the smartphone era in Law 21.

          I cannot help but feel somewhat depressed by Furlong’s vision of the future for lawyers, the consequence he anticipates of two smartphone-related developments.

          The first is that thanks to smartphones, every lawyer is going to be mobile.It’s true that the Blackberry has already made itself a significant presence in the lives of many business lawyers, for better and for worse. But as a general rule, the lawyer’s center of gravity remains where it’s always been: her office, where she keeps her desk, chair, landline phone, files, books, and desktop computer. That center of gravity is now shifting to the lawyer herself. With the smartphones of the near future at her command, that lawyer will be able to do everything on the road — call, e-mail, Web browse, review files, read cases, write memos, etc. — that she now does in the office. In fact, it’ll be expected of her. A lawyer with a smartphone is a walking law firm — one that hardly ever closes. Lawyers who obsessively check their smartphone messages are considered antisocial nuisances today, but before long, they’ll be the norm. I’m not saying that’s good, but I am saying it’s pretty much inevitable.

          In many ways, I think we are already there. It may not be smartphones yet in the UK, but the BlackBerry is ubiquitous, and for many lawyers it is not where their desk is that is important, but where their client’s desk is. For lawyers, as for many other professionals, mobility is essential (although I remain to be convinced by the BlackBerry).

          And Furlong’s second impact category?

          Among the tens of thousands of future applications [being developed by iPhone, BlackBerry, and others] will be many that deliver legal services directly to clients. For lawyers, this development could represent either a threat (yet another way in which computers are reducing traditional lawyer work to a series of algorithms) or an opportunity (someone with legal knowhow and experience has to design those algorithms; why not a law firm?). But either way, over the next decade, smartphones will become a legal service delivery medium. Now’s the time for lawyers to start dealing with that.

          Some people will say that there’s no way a simple cellphone will ever be able to do lawyer work. Some people used to say that about computers, too. So I’ll take this opportunity to update one of my axioms: the problem won’t be  smartphones doing what lawyers can do; it’ll be lawyers continuing to do what smartphones can do.