TLOMA Today

It’s that time of the year when we are busy with holidays, lunches and events along with wrapping up the year. Thank you to everyone who attended the Holiday Networking Lunch at Biagio Ristorante.

As we get closer to the end of the year, remember to take advantage of the 10% discount on your annual membership. The discount is in effect until the end of December; your membership is due January 1, 2024.  Don’t let your membership lapse!

New to the TLOMA website, we have provided a section under Membership for links on Diversity, Equity and Inclusion and Wellness Resources. If you have a resource that you think might be valuable to our members, please email TLOMA and they will be added.

Happy Holidays and we will see you in the New Year!!

*Note that the TLOMA office will be closed between Christmas and New Years Eve.

Human Resources SIG Leader - Nicole Hunter

What a great 2 years!  Thank you to all the TLOMA members who attended the HR SIG sessions during 2022 and 2023.  Over the last two years we heard from experts on topics such as DEI, mental health, employment law issues, hybrid work environments, and total rewards.

A special thank you to Karen Gerhardt, Joanne Gibson-Davis (Education Coordinator 2022), and Ava Isaacson (Education Coordinator 2023) for their support and assistance with organizing the sessions.

I thoroughly enjoyed my time as the 2022/2023 HR SIG leader and I know you are in good hands with Anthony Belmonte, the incoming HR SIG Leader for 2024/2025.

Happy Holidays everyone!  

Compensation Committee Chair - Katherine Mather

Compensation Committee has been working in partnership with Normandin Beaudry, a leader in actuarial and total rewards consulting services, to produce the annual Suite of Compensation Surveys to all TLOMA members.  In 2023 we re-designed the committee into two groups: a technical team with experience and knowledge in compensation and salary structuring; and a marketing team who devoted their time and efforts into expanding the participation levels of member firms in the survey.  There were 56 participating firms in the Business Services survey (TBS) and 44 participating firms in the Associates survey (TAC).  With thanks to the Marketing team this year, we saw an increase of 10% in participation levels. 

Also, the annual Merit Increase survey was conducted and the results were provided in November 2023 to those participating firms.  In 2024 we are excited to produce the Total Rewards Survey (completed every three years) in addition to the annual TBS and TAC surveys.  We look forward to your participation!

Facilities SIG Leader - Gabor Balogh

I am approaching my 10^th year anniversary as a Tloma member.

Being the 2022-2023 Facilities SIG leader was great way to give back to the Tloma community.
This was also a great learning experience for me, and it allowed me to connect with some great people.

A special thanks to Karen Gerhardt, Joanne Gibson-Davis, and Ava Isaacson for all their help and support.

A warm welcome to Chuck White as the new Facilities SIG leader for 2024.

A seismic shift has occurred in the operational landscape of Canadian law firms, propelling them into an era of unparalleled digital transformation. Like their global counterparts, many firms are embracing digitization, transitioning from traditional on-premises systems to cloud-based solutions and adopting modern communication tools such as Zoom and Microsoft Teams. While these changes promise heightened efficiencies and greater accessibility, they introduce a new set of challenges, particularly in information governance and the protection of sensitive legal information.

In this article Chris Giles delves into the driving forces behind the escalating significance of a data minimization strategy. He explores the hurdles associated with the migration to the cloud, the mounting cyber threats, the intricate web of privacy legislation and the promising business development opportunities entwined with effective information management. Finally, he suggests a five-step roadmap to establishing a robust information governance framework.

Drivers for information governance and data minimization

There was a time when attorneys and firms were much more comfortable keeping client records and data indefinitely than they were destroying them. But that time has now passed and in today’s legal landscape data minimization has become essential. Firms that don’t practice data minimization have greater exposure through security breaches. They also run the risk of some dire cost, performance and reputational consequences.

1. Migration of document management systems (DMS) to the cloud

Firms need to think seriously about the avoidable costs of excess data storage. Until quite recently, data storage was a fixed, and relatively manageable cost. But with the use of cloud collaboration services rocketing, the cost of continually increasing electronic data storage volumes could fast become uncomfortable.

This is borne out by a December 2022 study that showed that 500 technology leaders in mid-to-large sized organizations are spending up to one-third of their IT budget on ballooning data storage costs. Survey respondents also thought that the rising costs of data would be “unsustainable” by 2025.[1] 

2. Cybersecurity concerns and ransomware attacks

A significant danger is the growing incidence of cybercrime targeted at law firms.

Cybercriminals know law firms hold a wealth of data worth stealing, which is also often ransom-worthy and relatively – in comparison with financial services and big pharma for example – poorly protected.

And this risk is not likely to recede any time soon. According to ABA’s 2021 cybersecurity report, ransomware is: “An increasing threat to attorneys and law firms of all sizes”.[2]  And unfortunately, the low ebb in international relations between the West and Russia and China only exacerbates the threat, since the Russian and Chinese governments are not currently minded to clamp down on their homegrown cybercriminals. Quite the opposite.

3. Compliance with privacy legislation

Navigating the intricate landscape of privacy legislation has become a pressing concern for firms. The Personal Information Protection and Electronic Documents Act (PIPEDA), alongside global counterparts like GDPR and CCPA, has introduced a complex set of principles. From accountability to openness and access, law firms need to ensure meticulous compliance to avoid legal consequences and safeguard their reputation.

4. Compliance with the demands of your clients and profession

The next compliance booby-trap for firms is Outside Counsel Guidelines, which are becoming more ubiquitous and more demanding. Whereas they were initially conceived as a mechanism to help ensure the client is getting value for money from the firm, in the light of rising cybercrime OCGs are becoming more prescriptive around how and for how long firms holds client data. In addition, some clients – particularly big corporates – are setting their own “gold standards” for data management that go beyond existing or anticipated legislation, and which are being passed on in OCGs.

5. Business development opportunities and operational efficiency

Information governance is emerging not only as a shield against risks, but also as a catalyst for business development opportunities. Embracing leaner data sets paves the way for operational efficiencies and strategic data management positions law firms to optimize systems, streamline processes and respond with agility to client needs.

It's also the case that when firms prospect for new business and when clients are reviewing the firms they want to retain, reassurances are needed about how data, some of which is hyper-sensitive information, is being stored and actively managed in line with best practice. The ability to point to rigorous information governance systems will strengthen your hand in competitive pitches.

6. Data integrity and truth in an AI world

As artificial intelligence gains prominence in the legal sector, the integrity of data is becoming paramount. Accurate and reliable data will be the lifeblood of AI applications in legal research, document review and predictive analytics. Information governance will be the bedrock that will ensure the veracity and reliability of data to enhance the efficacy of AI in legal practice.

What should firms do now? – A 5 step plan

Acknowledging the numerous and growing risks and opportunities that law firms face when excess information isn’t systematically minimized does not make the daunting task firms face in tackling the issue any easier.

The trick is not to be overwhelmed by the magnitude of the task of taming data, but rather to approach it in a systematic and methodical way.

1.  Establish a committee

An information governance program requires collaboration. A cross departmental team would commonly consist of heads of departments or practice groups, the CIO, CISO, General Counsel, DPO and, of course the Director of Information Governance. The committee is the reference point for all subsequent activity and ensures representation and buy-in from across the firm.

2.  Determine and document the location of your data

A comprehensive mapping exercise is foundational to understanding your data landscape. You need to include less obvious locations like redundant servers and ‘shadow IT’ in places outside the boundary of the firm’s sanctioned and provisioned IT infrastructure. Plus, don’t overlook the firm’s other records residing in HR, finance, etc.

Once you know where your firm’s information assets are located, look to categorize and classify them by as many metadata perimeters as possible. Do they contain personally identifiable information (PII), intellectual property or are they confidential or commercially sensitive? Data should also be classified in terms of document type, practice group, department, office or jurisdiction where these have a bearing on retention and disposition; and client engagement requirements (if any) around retention/disposition.

3.  Develop a simple retention and disposition policy

Simplicity is key when crafting a retention and disposition policy. Focus on clarity rather than complexity. Define how long different types of information will be retained and establish criteria for disposition. If impractical, explore alternative policies that remain effective and practical.

4.  Implement the policy

Systematic implementation of the retention and disposition policy is critical.  Address backlogs based on the age of the data, prioritizing “low-hanging fruit” and bulk retention decisions as these quick wins can build momentum.

Simultaneously, begin mapping the retention process for more recent material, ensuring a comprehensive approach to information governance.

5.  Overcome challenges to move forward with destruction decisions

Persistence is key as reaching destruction decisions can be hard.

Help the attorneys who are going to authorize data destruction by giving them all the information they need to reach a decision. This includes confirming that no fees are outstanding and the date on which the firm’s criteria for a closed matter have been met. Then follow the preordained destruction procedure. Paper needs to be shredded or pulverized, and electronic files must be deleted beyond retrieval or reconstruction and not just archived.

Proceed iteratively

When we talk of five steps, it’s not necessary to complete them sequentially. Don’t destroy data until you have a policy in place, but otherwise don’t wait for one step to be completed before the next one starts. Do what you can when you can. But it’s also sensible to prioritize your areas of highest risk.

Finally, know that you don’t need to execute data retention and disposition unaided. Sophisticated software tools, such as iCompli, have been developed to help – for instance by automating how a data retention and disposition policy is systematically applied to mapped data. You should start talking to software vendors early in the process to minimize redundant effort and maximize the efficiency of your data retention and disposition project from day one.

To find out more watch on demand the recent TLOMA Technology SIG, where Chris Giles presented this topic. You can also get in touch with the team at LegalRM to discuss your firm’s strategy for taming data and achieving information governance.  

I find that midsize firms are keen to win new business and are willing to be flexible when we are working on fees and/or alternative fee arrangements (AFAs). For the sake of this article, I will classify midsize law firms as those that provide several services and have more than a handful of lawyers or are boutique firms.

A legal operations consultant and former VP Strategic Advisor to the General Counsel at a large Canadian insurance company told me that midsize firms frequently offer less resistance to alternative fee arrangements as they have more flexibility.

There is a sweet spot for midsized firms in the marketplace. These firms are in a good situation because they are leaders in specific markets; many have a geographical niche and feature practice areas needed in certain localities. They often specialize in industries like oil and gas and pharmaceuticals and are sought out by corporations in those industries.

Midsize firms are frequently the target for mergers with Big Law because they service the enviable mid-market growth sector. Mid-market clients do not believe they can afford Big Law's services and gravitate to smaller firms. Midsize law firms need to be more aggressive in the start-up tech market as this is a fast-growing sector. Smaller firms already have a strong foothold in the small-to-medium enterprise sector and are in an ideal position to specialize in this market.

Midsize Firms are Attractive to Big Business

Law firms use the apprenticeship model — training their associates by pairing them with a senior partner. Junior lawyers at smaller firms have the advantage of working with senior lawyers who are actively handling matters of all sizes. It is an excellent opportunity for these junior lawyers to learn the trade because they get a breadth of training and are not pigeonholed into a narrow range of work. Clients appreciate that the associates working on their matters receive thorough and expansive training.

As mentioned earlier, price is another reason why midsize law firms appeal to clients. Smaller firms continue to be utilized by Big Businesses as they offer the lowest, most competitive rates. These midsize firms are often localized but have sometimes branched out to multiple cities within a specific region. Big Business finds them attractive because of pricing and typically utilizes these firms for highly commoditized, transactional matters (e.g., collection recoveries, IP, collateral security registrations). Clients tend to stick to the firms they are most familiar with that are economically priced, utilizing them heavily for transactional work, which can be very lucrative for these types of firms.

So, what do legal operations/procurement professionals think about midsize law firms? They like them and appreciate the value these firms lend to the marketplace. Indeed, law firms of all sizes have a place in today's legal market. Each has its strengths and challenges, and each can put itself in a position to win more business and compete in various markets by focusing on quality of service, appropriate pricing, and delivery models.

In accounting and medical surgery, skipping the foundational steps can be catastrophic. While it might seem unusual to draw a parallel between finance and health care, stay with me for a moment and let’s imagine ourselves in a hospital, awaiting surgery.

The Critical Check-In

Imagine this: you find yourself walking into a pristine hospital. There's an important surgery scheduled, and you are the patient. You walk past waiting patients and approach the reception; fill out your forms and complete the check-in. A few moments later the receptionist calls your name and gestures for you to enter the operating room. But something seems wrong. You then realize you haven’t been prepped. No nurse has reviewed your vitals, and no one came to ensure your overall readiness for the procedure. Nonetheless, you do as you’re told, and you walk right into the operating room, and the doctor greets you, standing behind the operating table, with a scalpel in hand, and says, “Good morning! Let’s get started!”

The thought of walking straight into surgery without the necessary preparation is unthinkable and irresponsible. If you can appreciate the need for the role of preparation in this scenario, consider the same relevance if you approach an accountant without seeing a bookkeeper first. This order of operations is especially true when dealing with the financials of a law firm.

Order of Operations: Bookkeeper Before Accountant

The far-fetched scenario above, unsettling as it is in a medical setting, provides a clear analogy when we pivot to the world of legal accounting. Imagine entering the realm of financial decisions for a law firm without the crucial step of bookkeeping, the process that prepares and organizes financial and client data. Just as the nurse is essential for prepping a patient for surgery, a legal bookkeeper is indispensable in laying the groundwork for meaningful accounting and Law Society obligations in a firm.

In the intricate world of legal finance, bookkeepers act as meticulous preparers. We are responsible for logging each financial transaction which includes the movement of money in and out of each client trust account. This attention to detail is not merely about organization, it's also about compliance. In legal accounting, especially, the stakes are high. Errors can not only result in financial discrepancies, but they can also lead to compliance issues.

The Accountant's Role: Surgery Based on Bookkeeper's Prep

Once this groundwork is laid by the legal bookkeeper, the accountant steps into the picture, much like a surgeon who operates based on the preliminary checks and preparations done by the nursing team. The accountant, equipped with advanced knowledge and expertise, relies on the data prepared by the bookkeeper to analyze, interpret, and provide strategic insights and information. They ensure that the firm remains compliant with evolving regulations, they also optimize tax positions and offer advice that can impact the firm's fiscal health and growth strategies.

But, what if that first step, the meticulous bookkeeping, is skipped? The accountant would be working with raw, unorganized data, leading to inefficiencies, exorbitant accounting costs, delays, and a higher potential for lost opportunities – as many financial decisions must be made within a tight timeline. In essence, bypassing the bookkeeper in the financial process is as reckless as bypassing the nurse before a medical procedure.

The Essential Role of Legal Bookkeepers for Compliance and Growth

Legal accounting requires a commitment to precision. The complexities of legal financial transactions, combined with the nuances of regulatory compliance, make bookkeeping that much more important in law practice. As lawyers know, every detail in a case can be pivotal; similarly, every financial transaction, no matter how minute, plays a role in the broader financial health and integrity of a legal firm, especially considering client funds.

For law firms aiming for both compliance and fiscal growth, understanding and appreciating the role of legal bookkeepers is essential. Just as every successful legal case hinges on the careful preparation of documents, every sound financial decision relies on the meticulous work of bookkeepers. And just as no patient should be ushered directly into an operating room without proper preparation, no financial package should be prepared without the foundational work completed by a competent and reliable legal bookkeeper, particularly with a law firm.

The COVID-19 pandemic brought about a major shift in how professionals, especially lawyers, communicate and conduct business. Initially a stopgap for the in-person meetings that the pandemic made impossible, Zoom quickly evolved into a standard communication platform, revered for its convenience and efficiency. Today, it stands as a crucial tool for lawyers, providing a bridge to connect with clients, colleagues, and the courts, regardless of physical location.

Making the right impression on Zoom is just as critical as in a traditional courtroom or office setting. Here are some tips to help ensure that every Zoom call reflects the highest standards of the legal profession.

Dress for Success

Even on video calls, appearance matters. Dress as you would for an in-person meeting. This doesn’t just convey professionalism; it also puts you in the right mindset for work. Remember that solid colors often work better on camera than busy patterns, which can be distracting.

Use Optimal Lighting and Camera Angle

Good lighting is crucial. Natural light is best, but if that’s not possible, make sure your face is well-lit and avoid harsh shadows. Position your camera at eye level to mimic the effect of face-to-face conversation. This can involve elevating your laptop or camera to avoid the unflattering ‘up-the-nose’ angle. Looking directly into the camera, rather than at the screen, when speaking also helps in creating a more direct and engaged interaction.

Apply a Professional Background

Your background should be tidy and professional. Anything cluttered or distracting can take the focus away from you. If you don’t have a suitable space, Zoom’s virtual backgrounds can be a great alternative. However, choose wisely – a virtual background of a bookshelf or a simple, professional scene is typically more appropriate than a beach or outer space scene.

Remember That Sound Quality Matters

Good sound quality is just as important as a good visual. Use a quality microphone if your laptop’s built-in mic doesn’t provide clear audio. You should also be in a quiet environment to avoid background noise – a barking dog or a ringing phone can be very distracting and appear unprofessional.

Test Your Tech

Before an important meeting, do a quick test run to ensure everything works correctly. Check your internet connection, sound, and video and confirm your familiarity with Zoom features like screen sharing or the chat function. Being technologically adept shows you're prepared and respectful of others' time.

Maintain Professional Etiquette

In a virtual setting, it's easy to become a bit too casual. Maintain professional etiquette as you would in an in-person meeting. This includes not interrupting others, being mindful of your body language, and staying attentive. Turning off notifications on your phone and computer can help minimize distractions.

Engage Effectively

In a virtual environment, it can be more challenging to read cues and engage effectively. Therefore, be deliberate in your communication. Speak clearly, pause for questions, and be aware that there might be a slight delay in communication. Using names when addressing questions or comments can help keep the conversation clear and engaged.

Be Prepared for Technical Issues

Technical glitches can happen, even to the best-prepared individuals. Have a backup plan in case your internet fails, like a phone ready to dial in. If you encounter issues during a call, remain calm and professional. Your ability to handle these situations gracefully can leave a positive impression.

Questions About Video Conferencing Platforms?

With virtual meetings becoming more common, especially in the legal sector, mastering Zoom etiquette is increasingly important. Presenting yourself professionally enhances your reputation and provides clients with the assurance that they are in good hands. Never forget that the core principles of professionalism and preparedness remain constant, whether you’re in a physical office or a virtual one.

If you would like to learn more about video conferencing or other IT tools  for law firms, head to our website for short informational videos.

Definitive legal market positioning leads to an authoritative brand.

Being everything to everyone means you’re nothing to no one. This is why your legal market position is critical to surviving while your brand is key to thriving.

Legal market positioning is foundational to business success. However, many legal service providers ranging from law firms, law companies and sole practitioners to paraprofessional organizations, legal outsourcing operations, legal tech, and legal consulting either inadvertently miss or choose to skip this important step. This is an unfortunate omission since market positioning enables distinction, heightens recognition and leads to a well-defined brand that acts as a beacon for clients seeking particular expertise.

Granted, there are pluses and minuses of developing a solidly defined legal market position, however the risks are relatively minor and short-term while the rewards are enormous and will stand you in good stead for many years to come.

The Risks 

One of the reasons that market positioning is overlooked or sidestepped is that even though it’s a basic business principle, the consequences of this undertaking can appear to be personal. This is especially true if market positioning is not crisply defined and established prior to the start of a new business.

It is a more difficult process for a mature legal business, however it’s doable and can make all the difference in terms of shifting from survival to thriving. Mid to mature stage legal market repositioning is a sign of moving with changing times, which enables the ignition of a revamped business to be propelled to fresh markets and new heights.

I speak from experience having overhauled my own legal market consulting practice in 2022, then waiting a year for the market to react and speak before tighten up my offerings and go-to-market strategy in 2023. The results are spectacular: international reach, deeper work, sophisticated clientele, and strongest financial year ever.

This can happen to you, too. Having helped legal entities reposition to take advantage of changing markets, client needs and conditions much more often in the last five of my 25-year practice than ever before, I expect law firm repositioning to accelerate as more competition enters the legal marketplace and the rapid evolution of AI-based technologies impact and, in some cases, upends the business of legal services.

True Grit

Obviously, a mid- or late-stage position change is not for the faint of heart. However, it’s a sign that the entity recognizes a need for change in order to survive. Recognizing a need is one thing; acting on it demands audacity, perseverance, flexibility, patience and iron will.

This is because market positioning requires examining a firm or individual’s legal offerings in the cold, hard light of business rather than from the more familiar aspect of practice. Understanding what industries, services and practices are financially strong now and expected to remain profitable for the next 10 years will enable defined market positioning on which to build brand strength.

For law firms in particular, market positioning or repositioning can be a politically charged and sensitive undertaking because the potential exists for individuals or groups to feel slighted or disenfranchised. This is because even though market positioning is based on hard numbers that prove profitability as well as assessing current and future legal market conditions, it’s fair to expect that resentment, anger and hurt can surface as a result of focus being maximized in some areas and minimizing in others.

Furthermore, this is when a firm can leverage change to trim down to fighting weight. This means rightsizing where removing an individual, group or practice to operate as a standalone can be an astute decision that is often beneficial to all parties. Then again, it can happen that some individuals or groups may continue with their practice in a business-as-usual manner even though the firm itself repositions in the market and rebrands accordingly.

The Rewards

Rewards are evident when clear and concise positioning along with acquisition of business-savvy talent and appropriate key clients that sit squarely in the centre of a firm or individual’s expertise wheelhouse enables a clearly distinct and unique legal market brand. This one-of-one brand acts as a beacon to attract ideal clients needing a particular type, talent, and delivery of legal service expertise.

Brand strength is the highly rewarded hallmark of a modern entity in today’s ever-changing legal service provider marketplace.

It’s understandable that developing a tightly defined market position and brand can be tough. And so it should be. It’s the true test for legal entities of all descriptions to demonstrate that they have the determination and grit to cut a swatch through the competition by claiming key strengths and defining demonstrable traits, and then standing firmly on their record by remaining unwaveringly dedicated to their market position and brand.

With a steadily increasing number of players coming into the legal marketplace, a solid market position that establishes you as the go-to whether by industry, expertise or geography that is supported by a unique, provable and market-differentiating brand is more vital than it has ever been before.

This article – one of my most popular ever – has been updated. The original appeared in Canadian Lawyer, March 2019 and on The Dialogue on Remaking Law Firms.

Name of Organization:  IN Studio Design

Company Overview:

1. IN Studio is a 40 person Commercial Interior Design Practice with offices in both Toronto and Calgary
2. IN Studio is fully licensed in both Provinces to provide services from Pre-design strategic planning, Interior Design through building permit and final occupancy.

1. How many years have you been a Business Partner of TLOMA? IN Studio is new to TLOMA.  

2. What has been your partnership experience with TLOMA over the years?  IN Studio has been invited and spoken at TLOMA events periodically over the last 5 years, meeting law professionals during each experience. 

3. Favorite TLOMA memory?  At one of our first speaking events, one of your law firms approached our practice to assist with their plans for a future workspace – what an honor. That opportunity evolved into a lengthy and wonderful relationship whereby our firm provided the Architectural framework for that firm to flourish and continuing helping others. That client over the years became a trusted friend, whereby if there was ever a need…we would be there.   

4. What is your favorite lunch spot during the workweek? Not my desk! Our café where I can chat with the staff, I don’t get the opportunity to visit with on a daily basis – I always learn something new.

5. What is the name of your favorite restaurant? My Vegetable gardens.

6. What is your favorite comfort food? Anything my family is cooking together.

7. Name one thing you can't live without? My rubber boots. I live in the country, there is nothing more humbling or grounding than a walk in the mud.

8. If you had to sing a Karaoke song to describe the real you, what song would you sing? Dancing Queen by ABBA (But only if the audience was armed with earplugs).