Set in stone: meeting the new rules regarding fixed fees for clinical negligence cases

Clinical negligence is the latest area of law to come under the spotlight of politicians and civil servants seeking to reign in the legal sector's pull on the public purse. The motivation for this change has little to do with patient rights and everything to do with the current state of the NHS' legal bill: £1.3 billion and rising at last count.

By October this year, most of us expect there to be a new regime in place that radically alters the financial realities of running a clinical negligence practice. Time is running out for firms to prepare themselves for the new system.

At Fletchers, our process of change started in earnest three years ago, as we began to rethink how to structure and run our practice in preparation for exactly this kind of eventuality. As a result, we believe that we operate a lean and effective process that's ready for whatever the new regime of fixed fees has in store for us. Along the way we've learnt some vital lessons.

Strike the right balance between legal and support teams

Legal work on a case file is only one aspect of the overall task that needs to be completed. By creating a team approach to claims management, we've been able to break down tasks between specialists (both legal and administrative).

For example, by creating the new role of junior paralegal, we have developed a group of specialists responsible for the time-consuming work of reviewing records and reports (as well as ensuring these crucial documents are supplied by defendants and experts in a timely manner).

As a result, we've found that this work is not only completed more cost effectively, but also with greater care and attention. Rather than this being one more task for a busy lawyer to squeeze into his or her day, the solicitor can proceed with absolute confidence. They are certain that all aspects of the case have been fully researched and that they have all the crucial information at their fingertips when applying their judgement.

With this, and other innovations, we have created a smooth process to ensure the effective movement of each file through our system, with everyone providing the appropriate support at the right stage.

Far from diluting the role of the solicitor, we have found that it actually improves their performance and the value added to each case. By increasing their focus on the issues that matter and arming them with the information they need, they are able to make the right decisions in the best interest of clients.

Appreciating the value of specialist administration

A major part of our growth as a business and our investment in people has been in the form of specialist administrators. Administrative and clerical staff are the glue that holds an effective system together, allowing solicitors to focus on the task in hand with absolute confidence and minimum distraction.

This has also led to an expansion of our training and professional development programme as a firm, making sure all staff (including the administrators) continue to develop their skills and value to the business.

Each member of staff has their bespoke development plan called 'Me-Learning'. They can also take advantage of weekly drop-in sessions overseen by senior fee earners, to discuss any aspect of a file that is causing them concern.

Such an approach creates a culture of openness and mutual support within the team that minimizes the risk of error or poor practice.

It also creates greater job satisfaction and the opportunity for career progression within the firm. We believe this creates happier and more motivated teams and, in the long-term, greater levels of staff retention.

Effective marketing puts you in control

Another major investment has been to build a marketing function that provides a strong flow of new cases into the firm. This has meant learning a range of new skills, as well as getting the right third party advice and support.

In particular, we have invested in our own brands that speak directly to specific audiences (based on extensive market research into clients and their major concerns and fears) and digital marketing (making us a preferred option for those injured through clinical negligence when they come to research their situation online).

Applying techniques that may be commonplace in other industries, but relatively new to most law firms, we've been able to make massive strides in a short space of time and make fewer mistakes along the way than might otherwise have been the case.

This regular flow of work not only gives greater financial stability for the firm, but also means we operate without compromise. As we're not beholden to anyone else, we don't have to change our way of working to sell an insurance policy or use a specific medical agency.

It also means that we control the flow of work into the firm, turning the volume up or down as we require. In simple terms, it means no one can pull the rug out from under our feet.

With fixed fees changing the financial worth of cases, having tried and tested cost per acquisition for new cases (and having worked hard to make this figure as low as possible), means we can adapt to new circumstances with clarity and confidence.

Each pound spent on effective client management will be repaid many times over

When profit margins are tight, any systematic cause of delay or error can be the difference between firms thriving or declining.

Therefore, it is crucial to invest in paperless systems that encourage and enable collaborative working between members of the team. Gone forever are the days of routing through bundles of filing cabinets. As are delays waiting for a specific members of staff to come back from holiday in order to be sure of exactly where a crucial aspect of a case is up to.

Again, these may seem obvious to those outside the law, but this is still the reality for a surprising number of firms.

When such systems work well, all members of the team can work quickly and effectively, helping them to focus on the task in hand. In addition, it generates greater confidence amongst clients and encourages greater efficiency in other parties involved in the process.

As fixed fees come into force, such processes will become even more crucial, especially on lower value cases where there is a potential incentive for defendants to increase the time (and therefore cost) of handling cases, rendering them unprofitable.

Always take the bespoke option

A variety of solutions are marketed to law firms looking to increase the efficiencies of claims management. However, we found none of the off-the-shelf solutions to be quite suitable for the structure we sought to create.

We'd strongly recommend creating bespoke systems to fit around your vision, rather than building a practice to suit the predilections of a software developer. Whatever the skills of the residents of Palo Alto, they don't extend to understanding the vagaries of the UK hospital administrators or the difference between a C5 and C6 spinal injury. Taking this path may be more expensive, but the long-term benefits make it more than worth the money. What may seem like a minor compromise today, will feel like a major pain (and a drain on resources) over the coming months and years.

Taking the bespoke option also means you retain the right to make further innovations in the future, helping you incorporate new ideas and lessons learned along the way. In an ever-changing world, this flexibility is crucial.

Look beyond the law for the right talent

Law firms need to find alternatives to the traditional ways of doing business. For this, it's logical to look outside the sector for inspiration.

In September 2015, we achieved a major milestone in this aim by gaining approval as an Alternative Business Structure (ABS). This has enabled greater innovation within the firm, for example appointing non-solicitors as directors, allowing the business to draw upon senior talent from outside of the legal sector.

Such input has been crucial to making the firm fit to respond to a rapidly changing legal sector.

We now have three non-lawyer non executive directors from a variety of backgrounds. Their input has been crucial in encouraging us to go beyond what felt safe and comfortable. Applying lessons from other sectors and finding tried and tested solutions to meet the challenges posed by developments such as the introduction of fixed fees.

The only thing that has been a constant in the recent history of the legal sector has been change. Responding decisively and early is the only way to ensure sustained success.

The impending consultation over fixed fees is a case in point. Although we need to fight for change to be fair, the fact that change is coming feels inevitable. Waiting to see how the land lies before taking the necessary steps will only rob you of the time needed to plan and implement change.

As part of this process, and as a profession, we need to learn to be more outward looking, recognising that we share the same challenges as many other businesses that have evolved effective solutions over decades and have been quick to adopt and adapt new technologies.

An optimist could see such change as a major opportunity. The chance to build better businesses, operating more efficiently, with happier teams and more satisfied clients.

Ed Fletcher is chief executive of Fletchers Solicitors (www.fletcherssolicitors.co.uk)

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