LSSA - Legal Software Suppliers Associations

Law Firms strongly against Law Society Case + Practice Management proposal

Press Release

Law Firms strongly against Law Society Case + Practice Management proposal

99% of law firms surveyed disagree with The Law Society’s view of endorsing only one or two case + practice management software suppliers

In a survey by the Legal Software Suppliers Association (LSSA) 236 out of 237 senior representatives of over 200 law firms said they were opposed to the Law Society’s proposal to have one (or a very small number of) preferred supplier/s of case and practice management software to the legal profession.

Early in 2014 the Law Society began a tendering process to endorse one preferred supplier of case and practice management software. The LSSA immediately privately then publicly registered its opposition to this, the reasons for which are detailed in the Open Letter of 10th April 2014 (see Appendix 3 below). Several times the LSSA requested meetings with the Law Society to discuss this issue but was not successful in obtaining a meeting. It has subsequently transpired that the Law Society is now looking to appoint more than one preferred supplier, but the legal profession is virtually unanimous in its opposition to this process.

Chief Executive of the LSSA, Roger Hancock comments: “Diverse Case and Practice Management solutions reflect the requirements of the legal profession from the smallest to the largest, the specialist niche firms as well as those in general practice. The Law Society should take note of its membership’s views regarding a preferred supplier of case and practice management software. The profession does not want this, and considers it totally impractical for a variety of reasons. We call upon the Law Society to abandon this scheme that the industry is so against.”

Attached to this press release are several comments from survey respondents, further comments are available to view. One example is: “Case management software and packages vary vastly in terms of price and relevance to a practice. Firms should be given the option to choose one that is relevant to and affordable by them. One size does not necessarily fit all.” For more comments see Appendix 2 below.

When asked to comment on the LSSA’s survey findings the Law Society press office made no comment.

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About the Legal Software Suppliers Association (LSSA)

The Legal Software Suppliers Association (LSSA) is the UK industry body for legal systems developers and vendors.   Representing most of the leading UK suppliers, the LSSA sets and maintains professional standards within the legal software industry, and also manages areas of mutual interest between lawyers and software providers. The LSSA is committed to developing clear channels of communication, so that law firms can gain the maximum benefit from their selected software solutions.

The LSSA provides a highly representative and unified voice for the legal software industry and is therefore best placed to provide a strong focus in establishing standards and cooperation between suppliers, professional bodies, and government organisations.  The Association has set up and actively contributes to a number of different working parties and forums, representing and lobbying on behalf of its members with HM Land Registry, HMRC, Court Service and the LAA.

For more information please visit www.lssa.co.uk

Press Contact:

Chaz Brooks Tel: 01483 537 890   Email: chazb@chazb.com  Web:  www.chazb.com

 

APPENDIX 1 – The questionnaire:

Your opinion of The Law Society’s plans to tender for a SINGLE ‘preferred legal software supplier’?

I DISAGREE with The Law Society’s view of endorsing only one or two practice/case management software suppliers

I AGREE with The Law Society’s view of endorsing only one or two practice/case management software suppliers

Any further comments?

Background information accompanying the questionnaire:

In February this year, we were contacted by The Law Society of England & Wales and invited to take part in a tender process which would lead to them selecting and endorsing one preferred supplier of practice and case management software.

They were offering the one successful supplier ‘unrivalled exposure to the legal sector’ and they told us there would be ‘an endorsement fee, commission payable to the law society  on software sales by the successful supplier and they would expect a committed marketing spend from that supplier through law society channels’.

We were concerned their tendering process was to involve an element of financial bidding and also that the Law Society was underestimating the complexity of the legal software marketplace.   After discussion with the Law Society, it became clear that they were viewing legal software as a commodity and that the people running the process didn’t appreciate the levels of sophistication inherent in the multi-faceted, integrated software solutions available to the legal profession – i.e. to law firms of all sizes and specialisms.

As the LSSA, we raised our concerns with the Law Society regarding their plans and suggested they work with us to find a solution that would better serve the market.

i.e. a Law Society service that would highlight suppliers who can:

•         demonstrate they meet the required standards in terms of practice and case management software
•         continue to provide the investment in the development of legal software
•         offer the diversity the legal profession demands
•         …and above all provide the benefits of healthy competition

The Law Society have said the tendering process has come about because they are ‘brokering the demands of its members to supply practice and case management software as highlighted by research they conducted last year.’  However, we believe their plans will damage the legal software industry which will in turn damage the legal profession, stifle healthy competition and probably put some of the smaller software suppliers out of business.

We are confident, following a number of conversations, that our client base is of the same opinion as us.  We would now like to be able to present hard evidence regarding opinion from our client base on this.

We appreciate how busy you are, so we have put together a Short Online Survey [above] which basically gives you two options and a comments box to complete.  We value your opinion highly as the senior person responsible for IT at the Practice.  However, if you feel that a colleague should be completing this short survey for us too, we would be grateful if you would pass this email on.

With many thanks

Roger Hancock
Chief Executive – LSSA

 

APPENDIX 2 – Selected comments from participants of the survey

“All firms need to access the competition, otherwise a single provider firm cannot provide the service and could increase prices and one would not have a say in the matter”

“Unless I am convinced that the Law Society will endorse providers on the basis that a selection of products have been fairly tested and are the best for their membership, rather than being the best for providing income for the Law Society, I disagree that the Law Society should a preferred legal software provider. I don’t think the Law Society can ever genuinely reflect that, so a preferred provider endorsement is just a cash cow.”

“If the Law Society is so minded, they could have a checklist of what is to be included in a case management system for all suppliers to meet as a minimum but in terms of compliance only – otherwise different suppliers and their products serve different needs so it is difficult to identify one or two only.”

“I think the present system works well. I was on the Law Society Council from 1996 to 2005 when I recall this topic came up for discussion and it was agreed that the Law Society did not have the skills or resources to get involved in providing legal software. I do not have any objection to the Law Society approving suppliers who satisfy a standard set of requirements.”

“Case management software and packages vary vastly in terms of price and relevance to a practice. Firms should be given the option to chose one that is relevant to and affordable by them. One size does not necessarily fit all.”

“Having one preferred supplier is ridiculous as how can one software system suit all needs and all budgets. As a Sole Practitioner we would be at a severe disadvantage as we would not have the economies of scale and we would also be a very small voice.”

“A one size fits all solution is thoroughly misguided. All law firms are different as are their requirements in terms of case management, financial management and time management. OFR encourages each firm (within the bounds of outcomes and IB’s) to establish its own systems to ensure compliance and best practice depending on the type of practice it is and the type of clients it serves. The Law Society proposal goes a good many miles down the road towards prescriptive practice management, something the SRA, through OFR is set against. I would urge the decision makers in this matter to acquaint themselves with the observations of the SRA during the consultation process before the introduction of the 2011 Code of Conduct.”

“The legal profession as a group has lost all faith in the law society and will never abide by a forced monopoly of a useful and complicated service that requires a level of competition in order to best serve its clients.”

“A single preferred supplier cannot be of benefit to the profession as a whole. It will simply serve to reduce competition in the marketplace and force practitioners, through economic pressures, to go with the Law Society’s endorsed product – regardless of whether that product is in fact a good fit with the particular firm. Far better, surely, to have some sort of LS approval kitemark – if indeed the LS does really need to get involved in this at all.”

“I am most disturbed by the endorsement fee/commission arrangement proposed by the Law Society. This hardly smacks of an objective assessment of what is best -and best value – in the market. A range of approved suppliers taking account of the range of practice sizes and specialisms would be much more helpful to the profession but even in that case I would not want to see the Law Society making money off its “endorsement”, particularly in an area where they themselves have no credible expertise.”

“the Law Society’s proposal seems unjust, shortsighted and designed with nothing else in mind to other than to provide the Law Society with another revenue stream – not what I would expect from our industry body – how could the proposed changes be good for the industry? hopefully not a sign of the way the way that the Law Society are headed – pretty shocked by this actually.”

“The Law Soc should NOT receive any commission payments for recommending a preferred supplier.”

More comments from participants of the survey are available on request

 

APPENDIX 3 – Open Letter from the LSSA to The Law Society – 10 April 2014

Nigel Spencer
The Law Society
113 Chancery Lane
London
WC2A 1PL

10 April 2014

Dear Mr Spencer

Law Society Preferred IT supplier.

The Legal Software Suppliers Association (LSSA) is concerned that the existing proposal for a Preferred IT supplier for the Law Society is not in the best interests of the Profession.  A majority of LSSA member companies have decided not take part in the tendering process.  The reasons why the LSSA has adopted this stance are as follows:

l  The proposed process is not transparent with insufficient clarity in the documents about the selection criteria, costs, and process for phase two.  Similarly the process is being run on too tight a timetable to give potential suppliers the time to give the PQQ the attention it deserves.

l  The existing proposal appears not to take into account the huge variation of professional needs reflecting those of different areas of law, size of firms, degrees of IT maturity and commercial models.

l  There can be no one size fits all solution, every firm has unique requirements.

l  We believe the current proposal to be inappropriate due to it being an anti-competitive intrusion into a vibrant and competitive market. In addition it is

◦      potentially not compliant with SRA rules requiring firms to operate in appropriate and effective ways for the benefit of their clients.

◦      misleading in that Practice and Case management software is not a simple commodity similar to those supplied by your existing commercial partners.

◦      potentially going to result in the closure/merger of software suppliers and therefore a reduction in the range of available products for Law Society members.

◦      unfair to smaller suppliers who may not be able to afford to take part.

◦      based on the selection of a Preferred Supplier by means of competitive tendering, a proposition deemed as unacceptable by the Law Society in relation to Legal Aid.

Whilst the LSSA considers the existing proposal to be unacceptable and impractical we are very keen to co-operate and collaborate with The Law Society in providing positive guidance to meet the needs of the members. The now abandoned Software Solutions Guide provided this in the past and was much appreciated by your membership. A modernisation or a development of this might again help the Profession in the complex area of software provision and could also provide revenue to the Law Society as it did previously. We also suggested an application by LSSA itself which was rejected by the Law Society without any reason.

In the light of the withdrawal of most of the main suppliers from the process we would urge you to reconsider your approach and look forward to further discussions.

Yours sincerely,

Roger Hancock
Chief Executive

This letter is endorsed by 15 member companies of the LSSA from the smallest to the largest.