A Survival Guide for Legal Practice Managers

A Survival Guide for Legal Practice Managers

How to successfully navigate the information-rich digital world

Tuesday, June 27, 2017

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By Whit Lee, Executive Director, Strategy & Legal Software Solutions, LexisNexis Asia Pacific


We live in an age of information, powered by technology. Where once a collection of Encyclopedia Britannica was required to find the answer to an obscure question raised in a lively pub discussion, now all that is needed is a 4G signal on one of the many devices inevitably resting on the table.

There are immeasurable benefits to technological development; for one, the wealth of our individual knowledge has grown colossally. But value doesn’t lie in information itself. Even a mountain of data and information does not necessarily equate to better intelligence and decision-making. Value comes from applying analytical and critical thought processes to that information.

The loss of analytical thinking


Over the last few years, studies have started to emerge revealing that we are gradually adapting to respond to information in an automatic, uncritical way. A generation of ‘digital natives’ will be entering the workforce in the coming decade, remarkable for their intrinsic aptitude for technology, but worrisome for their lack of critical nous.

In a Stanford University study published in November 2016, students were asked to evaluate the reliability of information posted online in order to assess their ability to apply critical thinking. For those of us who grew up using libraries, the findings are somewhat alarming: 82% of younger high school students were unable to differentiate between sponsored ad content and genuine news posted online, and nearly 40% of older students believed that a photo of misshapen daisies proved that there were toxic conditions around the Fukushima nuclear plant in Japan – despite it being a viral post with no identifiable location characteristics or source given.

We are inundated by information, so it’s perhaps unsurprising that the Z Generation find it hard to distinguish between fact and fiction. But what it does highlight is the importance of maintaining skills in analytical reasoning. In order to successfully navigate the digital world, we need to adopt a scientific approach of critical, rational and effortful thought. In short: we all need to think like lawyers.

The rise of the machine


Hollywood has long visualised the future of machines, and fact is now surpassing fiction…though some may say the advent of artificial intelligence is far less exciting than we have come to expect; machines will not be taking over the world. But we still need to be prepared for further rapid technological advancement.

We know that the digitally-powered information-overload is not going to slow, but what we will see in the future are tools powered by artificial intelligence that take the analysis of data out of our hands, presenting us just with the most accurate and relevant answers we require. So why maintain skills in analytical thinking ourselves? Well, an answer doesn’t necessarily equate to a decision. A human element will always be necessary to assess and evaluate answers – which are, of course, simply condensed pieces of information.

The analytical thought process of a human is inherently different to that of a machine, because a human can take into account personal experience, empathy, and external drivers across a wide range of topics. Intelligent machines will remove the ambiguity of confirmation bias and the fallacy of false news, but are devoid of emotional intellect; humans are what give information meaning.

In practice management, as artificial intelligence tools start to enhance workflows and provide improved outcomes for lawyers and clients alike, intellectual agility will still be required in the analysis of information in order to make decisions and take actions that best suit the business. So while investment is made in the latest technology, so too must investment be made in that almighty gadget we each possess: our brains.

The future belongs not to those who will build the digital world, but those who will work in collaboration with it to deliver excellence that has undercurrents of both machine and emotional intelligence.

Editor's Note

Thought Leadership Awards NominationsLexisNexis is the proud partner for the 2017 ALPMA/LexisNexis Thought Leadership Awards. If your firm has successfully implemented an innovative new initiative or is doing something different in response to the digital world, then enter the project for an award. Nominations are open until 21 June. Nominate online now.

Winners will be announced at the 2017 ALPMA Summit, held from 13-15 September at the Brisbane Exhibition and Convention Centre. This year's Summit 'Sailing the 4C's' focuses on the four key 21st learning skills of Collaboration, Critical-thinking, Creativity and Communication. Readers interested in learning more about building analytical thinking skills at their firm should register before July 20 for early bird savings. Register now.


About our Guest Blogger

Whit LeeWhit leads the Legal Software Solutions (LSS) team, which delivers cloud-based and on-premise tools that drive improved outcomes for clients, helping them to make better decisions by combining world-class LexisNexis content with practice management workflow solutions.  Whit is also responsible for strategy and business development for the LexisNexis Asia Pacific business. As strategy lead, Whit is focused on how the organization is executing today as well as planning for tomorrow – ensuring we have the right resources allocated to deliver on both short and long term goals and that our investments in new products and solutions deliver value to customers. Whit holds a Bachelor of Science degree from the University of Tennessee and an MBA from Harvard Business School.


The Dangers of Silent Malware

Tuesday, June 20, 2017

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By James Walker, Managing Director, Computer One


Ransomware masks a more serious threat, and your law firm’s network may already be compromised. Here’s how to know...

In early May 2017, the world witnessed the largest ransomware attack in history. Within 72 hours the WannaCry ransomware had encrypted files in more than 200,000 organisations across more than 150 countries - thanks to its novel use of an email entry point and then self-propagation through network protocols. It was the largest ransomware attack in history.

Or so we thought.

Less than one week later, on May 18th, came the news that WannaCry was not the first programme to take advantage of recently released National Security Agency exploits. Another variant, called Adylkuzz had already been infecting computers for three weeks, potentially on an even greater scale.

It was a benevolent kind of attack - this time


The creator of Adylkuzz had used the same exploits as WannaCry to create a botnet (an army of slave devices) and used it to mine the Monero cryptocurrency. Effectively, they had created a supercomputer capable of mining the currency quickly, making early gains that may later be worth millions.

And no-one even noticed.

It was only when researchers at Proofpoint looked into the WannaCry attack that it was discovered at all. Because although system resources were being stolen, Adylkuzz was generally a benevolent system infection, with the payoff for the creator not coming directly from the victims.

But its discovery underlines a new era for ransomware and corporate espionage.

A typical ransomware attack is messy and violent. It encrypts your files and demands a ransom as fast and as noticeably as possible. What it does, and what the creators want from you, is black and white.

Software that is designed to remain low-profile and undetected on your firm’s network for as long as possible represents a nastier kind of infection. Often called Advanced Persistent Threats (APT’s), the function and use of such software is not clear and the purpose of the attack can only be determined after detection and observation.

This kind of software goes hand in hand with secret file theft or erasure, secret recording of voice and video, untraceable physical security breaches and more. The creativity of the threat actor is the only real limit.

Every device connected to your network has the potential to be a spy on your conversations, actions and files. Every laptop has the ability to record sound and video. Every IP phone is connected to your network and could be compromised. Digital video cameras, physical access controls and more all have potentially dangerous exposure to your network and your firm's intellectual property.


Your firm may already have been infected. But here’s what you can do...


It’s not all doom and gloom. The development of this new kind of signatureless, pervasive but low-profile threat has spawned a new generation of cyber-security products specifically designed to counter APT’s.

Cisco Umbrella, for example, covers every endpoint in your network, looking for out-of-character network traffic. A laptop that starts transmitting packets of information to a remote and rarely-contacted network at 2am, or a printer that moves a lot of data outside business hours may be silently syphoning your firm’s secrets.

Umbrella compares the traffic it has observed to what it knows is “normal” for your system. It also checks every connection to an IP address against a database of suspect IP addresses forged from witnessing over 60 million IP requests every day – Cisco claims it sees nearly 2% of the entire Internet’s traffic, giving it a solid base of trusted vs. suspicious IP addresses.

If the destination IP address is already flagged, Umbrella can suspend the transmission and report it to your IT team. If it’s not flagged it can still generate a request for a deeper investigation, so that you can stop the exfiltration of data.

Another product, called Darktrace works along similar lines. Darktrace sits over your entire network, observing the behaviour of all the endpoints connected to the system. Developed by Cambridge mathematicians and former MI5 operatives, it observes a wide range of activities, connection requests and data transfers to identify suspicious activity and can even stop malicious activity autonomously, just seconds into an APT’s deployment.

There’s always the question: “Why would an attacker care about hacking us?”

All this concern over APT’s seems the stuff of spy thrillers that wouldn’t really apply in the context of most Australian law firms - until you put yourself in the shoes of the attacker. Inside information on new patents, details of messy celebrity divorces, and discussions around setting up foreign entities for listed companies are all valuable assets in the hands of someone who can make money from them.

Even if an attacker doesn’t intend to make money directly from the knowledge, threatening to expose your firm to serious reputational and economic damage by leaking stolen information is a serious threat that we know is already making attackers rich – you just don’t hear about it because ransoms are being paid quietly.

The economic motivation is clear and real. The tools are readily available and new, silent attacks are happening every week. It’s not a case of “if”, but “when”, your network will be compromised. 

And “when” may already be in the past.

Editor's Note


Interested in learning more about IT defences and the steps you can take to mitigate the risk of a data breach in your firm and the next steps to take should a breach occur? Then come along to ALPMA QLD's July practice management seminar "What your firm needs to know about the upcoming Mandatory Data Breach Notification" presented by James Walker, Managing Director, Computer One on July 19 in Brisbane. Register now for this event. 

About our Guest Blogger 

James WalkerJames Walker is the Managing Director of Computer One, an IT Services company that covers the full spectrum of delivery, from a Managed Helpdesk through to complex project management, Network Management and Information Security. Computer One has been working with legal firms for almost 15 years and has experience in solving a range of IT challenges faced by the legal fraternity, from software integration to security, network configuration and productivity enhancement.

Computer One is offering a free two week proof of value trial which could immediately identify if your network has already been compromised.  Contact Computer One on 1300 667 871 or sales@computerone.com.au to arrange.


Managing Brand Integration

Tuesday, June 13, 2017

By Tineke Mann, eBusiness Manager, TIMG 


Mergers and acquisitions are common in the legal sector – but as many who have embarked down this path know, getting the post-acquisition integration right is not always easy! In this post, we share some of the key learnings from our acquisition of LitSupport in the hope that this will help you on your journey.

The Information Management Group (TIMG) embarked upon the challenge of successfully acquiring a complementary brand to enhance their service offering in early 2014. TIMG solve information management problems daily for thousands of businesses, large and small, in every major industry, across Australia and New Zealand. Our offering is simple; help clients store, manage, integrate and access important information securely, compliantly and effortlessly.

By December 2014, TIMG successfully acquired LitSupport; a leading organisation that specialises in providing secure and confidential information management services to law firms and corporate legal departments. The brainchild of Val Pitt some 20 years ago, LitSupport grew from a home-based business to a national organisation with over 130 employees and a service network spanning Perth, Melbourne, Sydney and Brisbane.

Why integrate?


Why would LitSupport embrace being absorbed into TIMG you may ask? 

“Times were changing. The legal industry was and is facing increasing pressure to improve performance and manage costs across all areas of operations” Val Pitt, Communications Manager, LitSupport said. “A union with TIMG enables us to deliver greater efficiencies and innovative solutions for our clients.”

TIMG similarly identified the need for innovation in the managed services and information management space. 

Chris Cotterrell, General Manager TIMG Australia recognised the need to provide a complete service offering to clients, ensuring they continued to grow and revolutionise the space.

“Investigations were completed by Ernst & Young, our parent company Freightways and TIMG management and it was decided that LitSupport offered the services we needed to compete in our industry, as well as offering an excellent cultural fit for both teams”.

The combined expertise in both companies has seen a positive outcome with TIMG now offering a full suite of services with greater capabilities to their clients. 

The integration challenges


The transition, however, has not been easy and has had opposing challenges for both parties in different ways.

Val acknowledges the positives and negatives that have accompanied the journey and acquisition of LitSupport within TIMG. 

“The hardest part for me has been letting go of decision making after twenty-one years of being the key decision maker. In contrast, the most rewarding part of the integration has been being part of a much larger organisation where accountability is shared and you are surrounded by many levels of support and expertise”.

The journey for TIMG has been focused on driving the acquisition from a strategic perspective, ensuring goals in the immediate future and in years to come are achieved. 

“There were areas we needed to tackle head on, areas that required a longer strategy to ensure a smooth transition, and areas we had little control over,” Chris said.

Mr Cotterrell explains how an earn-out period is still in place until 1 July 2017 and resulted in TIMG having limited authority for the first two and a half years of the acquisition which came with its own set of challenges.

Consideration factors in brand acquisition extend far beyond the immediate strategic vision. Chris Cotterrell explains: 

“Culturally, it’s difficult to integrate small owned business structures with a larger organisation that operate with a more corporate structure and related governance”.

“TIMG managers and those involved with LitSupport have been very excited about the service offering and the value this service will have for TIMG clients. TIMG has successfully signed an agreement with Ringtail to resell it as LitReview in line with the TIMG branding. This is an exciting development as legal and corporate clients will now have access to the most advanced eDiscovery tools” he continues.

Advice for others


With every acquisition, ensuring clear communication to clients is vital. 

“Branding and synergies will be the main focus in our immediate plans, with a five-year aim to triple the digitisation and processing revenue” Chris states.

As with all business changes, learnings will be had and will be different depending on the side of the table you sit at. 

Val recalls the experience: “I would not have changed a thing. I never look back – the future is way too bright. If I could offer advice to an organisation exploring the same avenue, I would encourage them to choose carefully, be prepared for change and commit to a successful merger”.

For TIMG the acquisition and integration challenges continue as the company continues to grow. 

At the start of the acquisition, integrating finance and payroll was prioritised; swiftly followed by the integration of CRM and job management to ensure client workflow remained unaffected.

“We should have taken a much more active role in cost control at that point of the journey. Costs blew out and bringing these back in line has been a painful process” Chris recalls. 

Internal considerations should also be allowed for, he said.

“More time should have been spent earlier with LitSupport staff to help them adjust to our wider vision. It’s taken almost three years to adjust the view that we are not two separate businesses, but one; TIMG.” 

As Chris highlights, people and their behaviours play an important role in any acquisition, and the management of these behaviours is time-consuming but necessary to provide clear vision and to set realistic expectations.

“If I could advise a business who were about to take on a similar journey, I would advise them to manage expectations, review systems and processes and don’t assume they will be compliant just because of certifications. 

Above all, make sure the cultures of the two businesses will work well together” Chis advises.

About our Guest Blogger


Tineke MannTineke Mann is the eBusiness Manager for TIMG, the information management service provider. Tineke is passionate about helping lawyers simplify their work-life through more efficient management of records and top data security. In addition to working closely with a range of clients tailoring solutions, she manages teams of eDiscovery experts, Online Backup specialists and in-house developers.









Blockchain & Smart Contracts…Why is it important, and what can I do with it?

Tuesday, June 06, 2017

By Ashley Kelso, Senior Associate, AustraLaw


There are a number of technologies at the moment that are on the verge of bringing a wave of innovations to many industries. These include:

  • Machine learning
  • Internet of things
  • Blockchain and distributed ledger
  • Smart Contracts
  • IPFS (decentralised storage of data)

We in the legal industry must at least gain a working knowledge of these technologies if we are to leverage them, give effective advice to our clients, and address the risks that they entail.

Most of the above technologies are fairly self-explanatory:

  • Machine learning allows us to train a computer by trial and error to perform repetitive analytical tasks (this holds major potential to allow smaller firms to punch above their weight)
  • The internet of things is about feeding data from sensors to an internet-connected server and then performing some action or analysis on it (the weather app on your iPhone is an example)
  • Decentralised storage is basically a cross between bit torrent (peer-to-peer file sharing) and dropbox (cloud-based storage). i.e. files are sourced from ‘the cloud’ by reference to their content rather than their location on a server. So if an identical copy of the file you are after is located on a computer nearby, your computer doesn’t have to pull that same content all the way from a server in the US.

However, smart contracts and blockchain technology require a little more explaining. As smart contracts are built on blockchain (e.g. Ethereum) and distributed ledger (E.g. Corda) technology, it best to start with an explanation of blockchain.

Blockchain – how does it work?


As an engineer I always found it more effective, when dealing with complex ideas, to communicate them visually through diagrams and drawings. Blockchain technology is a complex idea. This video provides an excellent visual explanation of what a blockchain is and what it is useful for.


Blockchain as a register of transactions


As the video demonstrates, blockchain provides the benefits of:

  • A trusted common register of information that is highly resistant to forgery
  • Decentralised recording of transactional data (good for data preservation, but also a privacy issue)

The importance of reliable common registers to record the exchange of property rights between parties will be well familiar to those involved in conveyancing and sale of business work.

Smart contracts


The first blockchain technology was Bitcoin. This simply tracked the creation and exchange of bitcoins between users. However, it is the next generation of blockchain technology called Ethereum that has really got people interested. This is because Ethereum allows users to customise the kinds of transactions that are performed, recorded, and tracked on the Ethereum blockchain.

Users can do this by writing smart contracts and loading them onto the Ethereum blockchain. In simplistic terms, a smart contract defines the items of value that parties to the contract will be exchanging, and the rules by which they will be exchanged. (i.e. Define the things whose state will be tracked, and how their state will change based on the information that the contract receives).

What do smart contracts look like?


To avoid talking too much in the abstract, here is an example of a smart contract from the Ethereum website.  It is written in a programming language called Solidity.
In basic terms, the ‘functions’ become actions that users can perform on the contract – for example, to tell the contract to process a transaction between two parties, or to check the balance of an account. Ethereum provides an application called the Ethereum Wallet that allows you to load your contracts on to the Ethereum blockchain and provides a user interface to interact with your contracts.

Risks and benefits of smart contracts


Smart contracts are the reason that people are talking about blockchain. Benefits include:

  • Automatic execution of the contractual effect of events (i.e. reducing the legwork of contract administration)
  • Automatically generates a record of all transactions that is highly resistant to forgery
  • Ability to create entire trading environments and schemes to exchange customised items of value (e.g. could be used to implement a private carbon credit scheme)

Negatives of smart contracts on Ethereum include:

  • Privacy of contract data
  • Difficult to prevent a party from exploiting a bug in the contract code
  • Charges Ether to process transactions (Ether is the currency of Ethereum)

There is a rapidly growing developer community around this technology; AustraLaw has already had an enquiry about drafting a smart contract; and a quick glance at the Enterprise Ethereum Alliance site demonstrates keen interest from major corporates (including Thomson Reuters). Exciting and uncertain times lay ahead.

More information


Corporates experimenting with blockchain technology

  • The Commonwealth Bank participated in a successful demonstration of the use of smart contract-IoT system which allowed payment to be trigged once a shipment of cotton reached a geographical location.
  • The Queensland Treasury Corporation and the Commonwealth Bank have demonstrated the ability to use smart contracts for the auction and issuance of bonds. 

About our Guest Blogger

Ashley KelsoAshley Kelso is a senior associate at AustraLaw. He holds degrees in mechatronics engineering and law. Prior to becoming a lawyer he worked in project management and systems engineering roles in the Department of Defence. This background allows him to communicate effectively across multiple disciplines and industries to assist clients more efficiently with their ADR and contract needs.

Ashley has a keen interest in applying the tools and methodologies of engineering to optimise the quality and efficiency of legal services.






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