Mind the gap! Does your firm have the right digital skills to remain competitive?

Amongst the fervour of the pandemic, you may recall the backlash to the Government’s ad campaign to promote cyber security jobs, which suggested ballet dancers could retrain in tech. Whilst somewhat misguided and ill-timed, its genesis was in the growing demand for digital talent in the UK.

It’s estimated there will be a skills gap in the UK equating to 3 million technology jobs by 2025, with approximately 7,000 specifically in the legal sector. That’s a challenge for firms, due to higher recruitment costs and the required investment in continuous training and development to keep up. With the added problem that what might be in vogue today could easily be redundant tomorrow.

The need to invest in digital skills and deliver value now

There seems to be little doubt that the demand for digital talent is already outstripping supply. A study by Technation found that despite the impact of the pandemic, there was a 36% growth in technology roles being advertised in the UK during June 2020. Whilst the Department of Education's Skills Survey revealed that 30% of these vacancies resulted from poor digital skills generally. An academic study by Microsoft and Goldsmiths, University of London, found that 69% of UK leaders believed that their organisations had a digital skills gap in 2020. With 70% expecting to experience one during the following year. Although understandable, even more alarming, was that the best digital talent wanted to work for the most digitally mature businesses. Potentially leaving those that were already behind their competitors, even more so.

You might reasonably have expected education to play an important role in rectifying this imbalance. Unfortunately, the Learning and Work Institute; WorldSkills UK, and Enginuity report indicates that there has been a 40% decline in pupils taking Information and Communication Technology (ICT) subjects at GCSE since 2015. Inevitably leading to a significant shortfall in our being able to fill existing and future vacancies, according to Dr Neil Bentley-Gockmann, WorldSkills UK CEO.

Key factors for your success

There are a number of factors which lawyers can address to help them retain the competitive advantage they might already have or plan to build, and also provide exceptional customer service excellence, as follows:  

• Being prepared to invest more in both consumptive, and productive digital skills. (Consumptive skills result from being able to use technology developed by others, for example, software like Excel and Word. Whereas productive is the development of technology and software for others to use.)
• Managers; Directors, and Heads of Departments should preferably learn all they can about the digital transformation which is taking place to get a good overview of it. This can then be passed down through the various levels of the business and discussed. Before creating a budget to buy what you need; internal policies on how to go about using and developing lawtech, also how this will affect your long-term plans for the business.
• Provide the most up-to-date technology you can for your employees to use, and continuous training. Self-learning is an important factor for everyone in the business to take on board. So that your employees have a productive and helpful mindset concerning the changes you are looking to make.
• Training programmes need to be done in bite-size pieces. Lawyers with full diaries; key dates to meet, and litigation schedules might understandably have their thoughts elsewhere.
• Be aware of the developments in technology, and how these might help you. Such as the inCase mobile app. With features ranging from electronic signatures to an easier onboarding process, and a user-friendly case management system.
• Stay adaptable, and stop using any strategies or processes which no longer serve your employees or clients. If your new technology becomes obsolete in the future you will again need to be flexible enough to replace or upgrade this.
• Get HR on board when sourcing new talent; re-visit your acquisition strategy, and set up training contracts or job training schemes to attract the people you want to employ to fill any digital skill gaps in your business.
• Possibly arrange an innovation day for the firm, encouraging employees from all departments and clients to attend, to generate new ideas for digital opportunities. Ask clients what improvements they would like to see, and how they could benefit from them.

Eversheds Sutherland's legal technology graduate scheme

In an article published on 6th October 2021, Aishah Hussain reported that Eversheds Sutherland had launched a 2-year scheme, with a starting salary of £25,000, for 6 applicants to work within the firm's legal service design team and have an opportunity to work in two of Eversheds' five practice groups during their 2nd year. Leading to graduates being able to apply for a permanent position at the end of this period. The training was specifically designed to help applicants not only gain a variety of business skills, but also increase their knowledge and understanding of "artificial intelligence, workflow automation, app development, and data analysis."

You can find out more about this on Eversheds Sutherland's website, and how it offers an alternative career path for those who don't want to qualify as lawyers. An increasing number of firms are also now adopting similar schemes, including Addleshaw Goddard and Macfarlanes.

Individual lawyers with the right mindset

Mike McGlinchey, Head of Consulting and Technology at Pinsent Masons, makes the point in an article dated 30th June 2021 that whilst many legal businesses may now be embracing digital transformation, it's equally important for individual lawyers to not only be fully trained but take an interest in acquiring their own digital skills. Maintaining, and developing this interest, is even more important when the organisation they work for is still playing catch up in acquiring the most up-to-date software and technology. Especially when those concerned will more than likely compare their digital tools at work to the ones they use at home. Without this commitment, any investment made can end up being a waste of time, and money.

It's also worth noting here that not using legal technology properly can present a risk to protecting the confidentiality of client data. Breaching the lawyer's duty of care in failing to provide a proper service.

There is obviously a diverse range of online courses out there from application-specific training, e.g. using video conferencing to Computer Science for Lawyers. The University of Law has even launched the University Legal Technology Research Academy (ULTRA), assisting lawyers to keep ahead of the curve in all things tech in the legal profession. For example, in understanding the basic principles of machine learning. Empowering them to solve problems in a different way.

But just how much should you invest in lawtech?

The right level of investment will differ between individual businesses, but usually involves a number of factors:

• Your budget, or financial status in seeking a loan.
• The size of the existing business.
• Perception of the need, or desire for change, and the collective feeling within your practice about digital upskilling which will either be a hindrance or help.
• Your decision on whether the upskilling and use of lawtech will be to meet existing requirements or facilitate growth.
• Possibly surprisingly, your actual knowledge of what is available, and understanding of how this can help you achieve your goals.

However you approach this challenge, getting it right is vitally important! Bob Dolinsky indicates in an article dated 1st April 2021 that being left behind could well be a problem for some firms in the future. Others are already making large investments in technology, but without focusing first on their employees having the skills and knowledge to identify the specific resources they need. There are those too who have failed to develop the resources they purchased so that these are not being used optimally. Giving a lower return on investment than might otherwise have been the case.

Other benefits of digital upskilling

Another article of interest dated 10th December 2021 by Efi Chalikopoulou considers how the extensive use of technology and training has proceeded in the United States' legal sector. Illustrating what might also be achieved in the UK:

• Digital tools to help ensure compliance with existing and future regulations, also security. Similarly, the excellent management of sensitive data received from clients and making e-discovery a much easier task.
• In-house technology developed, using machine learning to assist in the assessment of cases; identify potential clients, and support employees.
• Analysing the effectiveness of strategies so that the organisation can become more competitive in pricing, and not bill unnecessary hours.
• Building an app for partners to review billing and pricing.
• Not only increasing client service excellence, but insights obtained from data analysis have also helped with mentoring associates. When partners found the increased use of technology gave them more time to do this.
• The ability to predict the likely outcome of litigation or a contract going ahead, and financial performance.
• The creation of a model predicting future demand for specific legal services, and client relationships which were likely to grow. Helping the firm become more strategic in developing new business, and managing existing clients.
• Creating new data strategies; a governance model; analytics, and dashboards being used to drive decision making. For example, tracking diversity data to support decisions on hiring; promotions; training, and staffing issues.
• The ability to provide additional services for clients, despite these not being of a legal nature. Including management of property portfolios; intellectual property strategy, and consulting. Other professionals working alongside the firm's lawyers, allowing the expansion of the legal business, and stronger relationships with existing clients.
• Different legal organisations joined a working group, sharing information on legislative and regulatory changes. Focusing on topics like data privacy, and compliance. The members of the group included lawyers; IT; finance, and marketing professionals. Enabling them to respond to clients faster, and develop new software products. Also providing junior lawyers with an opportunity to develop their expertise and reputation.

The bridge between the legal industry and technology

Yasmina Kone, interim graduate recruitment manager at Clifford Chance, takes the view that:

“...the best teams are those which are most diverse because they arrive at the most creative solutions. Recruiting trainees from different degree backgrounds ensures that we have different perspectives reflected in our teams, and therefore provide the best client service.”

All of which certainly provides food for thought, and the increased use of lawtech along with digital upskilling does have a number of benefits. Not least giving you a competitive edge, and the opportunity to provide exceptional customer service excellence.

If for no other reason, survival of the strongest also has to be an important consideration in the struggle to get the right talent. Allowing you to adapt and thrive. As you turn this challenge into a truly exciting opportunity for your business to flourish and grow.