Articles

Opening Keynote with Clio CEO Jack Newton

March 5, 2020


[upbeat music] [Narrator] Thrive. It means to grow vigorously,
to prosper, to flourish. So what does it mean to
thrive in the practice of law? Ace the LSAT’s, get accepted
into a T14, graduate, crush the bar, clerk at a
top three in a big city. #hustle. Become associate, big
case load, make partner, get your name on the door,
impossible case load, low job satisfaction, burnout. Work is life. Is this what it really means to thrive? That’s not success. Law is shifting. For me, thriving is
providing a workspace that allows attorneys to
live their best lives. To make the world a better place. Just maximizing billable hours, just maximizing revenue is not a recipe for a satisfying career. I’m a lawyers because I want to figure out how to make law better. I like having an
impact on people’s lives. So that change, the
change from this image of me into an image of us. [Narrator] Together, we can change the definition of what it means to thrive. It’s not just about dollar
signs and corner offices. It can be about making it easier to find lawyers and giving legal help to those that need it the most. About making it easier for
clients to love working with us, and building a system where clients lives and our quality of life can
be improved at the same time. I see a future where we are
really leveraging technology and being super adaptable to our clients. We have to make changes
to make processes better and to make people’s lives better. That’s where I see the future going. It’s not about where
are we getting money from. It’s who can we help and
how can we help them? And for us being lawyers
we’re part of that solution. ‘Cause it helps us to
constantly improve the system. That’s our duty and obligation. [Narrator] That’s how we can transform the practice of law for good. That’s how we thrive. [Man] All right. [Announcer] Ladies and gentlemen, put your hands together and welcome to the stage the founder and
CEO of Clio, Jack Newton! (upbeat music)
(audience applauding) Welcome everyone. (audience applauding) I’m so excited to be here
with you this morning. This is just incredible. Let’s hear it once again
for Jessie Herring. That was a incredible opening. (audience applauding)
(audience cheering) If you can believe it
we get to start everyday at Clio in the Vancouver
office with Jessie. It’s energizing and
exhausting but really amazing. And welcome to the seventh
annual Clio Cloud Conference. This will be our biggest
and best conference yet, and I’m so excited to share
some really exciting news, some new insights and some
new product developments with you over the next hour. We’ve got an incredible two days in store for you and welcome. It’s gonna be unbelievable. As you saw from the opening video, our conference theme this
year is around thriving and the reason we like
the concept of thriving so much is we think every lawyer, every legal professional can really define what thriving means for them. This isn’t necessarily imposing our view of what thriving looks like on you. This isn’t necessarily saying
it’s about revenue growth or it’s about growing head count in your firm or it’s about billables. Thriving means different
things for different people, but we believe we can provide a framework for how
every law firm can thrive and that’s what I’ll be talking
about over the next hour. As Jessie mentioned the hashtag for the conference is #ClioCloud9. Please, use this hashtag on Instagram, on Twitter, on Facebook
as you share photos and insights and thoughts about what you’re experiencing
at the conference. This is how you share what’s going on with both the attendees in this room as well as the tens of thousands of people that are tracking this conference on Twitter and other social media, and it lets you share the
experience of what it’s like to be at the Clio Cloud
Conference outside of these walls. Every single year we’ve
managed to trend on Twitter if you can believe it and I have no doubt this will do the same this year. This year we also welcome our biggest audience ever to Clio Con. As you can tell by looking around, we have our largest Clio
Cloud Conference audience ever with over 2,000 attendees in this room. The conference is completely sold out which is just incredible
and if you can believe it, we started this conference seven years ago at the Hotel Saxon Chicago
with just 200 attendees. And in seven short years we’ve
grown the conference 10 fold. I’m curious, do we have
anyone in the audience that was at the very first Clio Con? Put up your hand. That’s awesome. Thank you for coming back. And who’s here for the first time? How many first timers do
we have in the audience? That’s also incredible. Welcome. You are in for an incredible ride, and for everyone else in the
audience that is returning for a second or third
or more time, welcome. We are so thankful for
your continuing support of the conference and
people that come year after year really help form the foundation of how we build the community that has become the Clio Cloud Conference. So thank you. Incredibly the conference has also grown from what was primarily
a North American event in the first couple of years to what is now truly an international audience. We have attendees from
over 15 different countries and six continents if you can believe it. So, we’re looking to cross the seventh off the list next year so if you know any lawyers in Antarctica, tell them that Jack Newton will give them a free conference pass
for next year’s conference ’cause we wanna cross that off the list. We have what is one of the
most compelling keynote speaker lineups lined up for you over the next couple of days as well. We’re kicking off in the afternoon keynote with Glenn Greenwald. Many of you know the name Glenn Greenwald from his involvement in
the Edward Snowden saga. Glenn is also certainly
a controversial speaker, and over the course of Clio Con, we have not hesitated to
invite controversial speakers to the stage because we want Clio Con to be thought provoking and we truly think that you can’t have thought provoked without some amount of controversy. We’re not making people think carefully, if we’re not presenting them with ideas that they might disagree with. So we’re really excited to see what Glenn brings to the
stage this afternoon, and he’s gonna be talking about
the importance of privacy, and there’s truly almost
no one better on the planet to have a behind the scenes take on what privacy means and
the importance of privacy in the 21st Century and
importantly how lawyers can be directly involved in advocating for a citizen’s rights around privacy. So I’m really excited to see what Glenn has to share with us this afternoon. Our morning keynote tomorrow is gonna be from Deanna Van
Buren and Shaka Senghor. And these are two
incredible thought leaders on the topic of reforming justice. And their TED sensations
in their own right, best selling authors and well
known speakers on the topic, and they’ll be presenting us
some really innovative thoughts on what criminal justice reform looks like in tomorrow mornings session and we think this is a really natural follow on to what was certainly one of
the most powerful keynotes last year which was given
to us by Bryan Stevenson. So, really excited to
see what Deanna Van Buren and Shaka present us tomorrow morning. And finally we’ll be rounding out the afternoon keynote
with Daniel Pink tomorrow. Daniel Pink is certainly someone that to me personally has been one of the most influential thinkers
on what motivation means and the importance of intrinsic
versus extrinsic motivation. He’s a speaker we refer
to constantly at Clio as we talk about what building a high performing team looks like, and he’s gonna be giving us a really interesting talk tomorrow about how to control time in a better way. A lot of us talk about
how important timing is. We talk about the fact
that timing is everything, but we often talk about
like it’s something that is outside of our control, and what Daniel Pink will
be talking to us about is how we can actually better control time and turn it to our advantage. How to make time our ally, not our enemy. We also have an incredible set of session speakers to enjoy
over the next two days. We’ve assembled what is truly the best and brightest minds in Legal to be presenting to us
with dispatches from the forefront of Legal innovation to be talking about innovative
business models in Legal, to be talking about
criminal justice reform. There’s a wide range of
topics from every aspect of the industry that you’re gonna be able to take in over the next two days and truly one of the toughest decisions you’ll have over the next two days is deciding which session to attend. But don’t worry. We’re recording
all of them and will make them available to you
after the conference. Tonight we’re also celebrating
The Reisman Awards, and as Jessie mentioned The Reisman Awards are named in honor of what was our very first customer
that joined us back in 2008, Catherine Merino Reisman who I think is actually sitting over there. Thank you Catherine and
thrilled to be celebrating– (audience applauding) Thrilled to be celebrating these awards for the third inaugural or the
third annual Reisman Awards. We’ll be recognizing law firm innovation in four categories
including legal innovation, best new law firm, community
champion and best growth story. And this year we’ve added
a fifth category which is excellence in client service and we had so many interesting
submissions for this category. We had more submissions
for The Reisman Awards than we’ve ever had in the awards history. So, this will a be super
exciting celebration tonight. So be sure to attend
this event this evening. I also wanna spend a moment thanking the sponsors of the 2019
Clio Cloud Conference. We truly could not do this conference without the support of these sponsors. We have over 90 companies supporting the Clio Cloud Conference, including our diamonds sponsor, Law Pay, and our second diamond
sponsor, PWC Insights Officer. If we could have a huge round of applause for these two headline sponsors
I’d really appreciate it. (audience applauding) And I also wanna recognize
our gold sponsors, our silver sponsors, our bronze sponsors, and our starter sponsors. A huge round of applause please. This conference would not
be possible without them. (audience applauding) And last but not least we have over a dozen media partners
helping cover this event, write articles about the presentations we’ll see over the next two days and especially as issued dispatches around what law firm innovation looks like and what’s happening on the
ground here at Clio Con. So huge thank you to our
media and event partners for joining us and
covering the conference. Thank you very much. (audience applauding) We’ll also be celebrating the second annual launch code competition. This is certainly one of my favorite parts of the conference. We’re able to celebrate
the best new integration to be launched on the Clio platform. We give away $100,000 cash
prize to the winning company and this year we have an incredible lineup of companies submitting for
this award including Casetext, Community Lawyer, firmTRAK,
Heymarket and Wise Time. Give a huge round of
applause to these companies. They’re doing incredible things and one of them will be walking away with $100,000 grand prize this afternoon and we have an incredible roster of judges including Janine Sickmeyer, Dan Lear and Molly McDonough who will be selecting the winner this afternoon. So, I’d like to set the stage
for this morning’s keynote with a callback to
Clio’s mission statement. This has been the mission
we’ve been pursuing for the last decade and
that is to transform the practice of law for good. There’s a deliberate
double meaning in here where we talk about the fast that we’re not only transforming the law
and trying to make law better, we’re trying to make lawyers happier, we’re trying to make clients happier and we’re trying to grow
the total opportunity that exists for lawyers
but we’re also trying to make this our permanent dent in the universe as
Steve Jobs would put it. When you talk to the members of Team Clio over the next two days, you’ll see I think a group of employees that are really committed
to a mission in a deep way. You’ll see a level of commitment and conviction from our team that you just don’t see
in the average company, and that’s because they’re
so enrolled in this mission. I get asked often how we’re able to recruit some of the
top talent in the world. We’re able to beat companies
that are trying to, companies like Google and
Amazon and Shopify and Facebook that have tried to recruit employees that have ended up choosing Clio because they truly believe in this mission and believe in their opportunity
and Clio’s opportunity to truly transform the legal industry. It’s an exciting opportunity that everyone in this company
is really excited about. And over the course of this year just over the last couple of months, there’s been an extra large
spotlight shone on Clio because we were able to secure a series D financing round
of over 250 million dollars which is really pretty incredible
in a few different ways. Number one, this is the
largest growth equity round in a legal company ever. (audience cheering)
(audience applauding) Number two and Canadians
are usually pretty humble but I’m gonna brag about
this one a little bit. This was actually the
largest growth equity round in Canadian history. So this was the largest investment for a Canadian company ever. (audience applauding) But I really wanna make it clear that this investment is about something much bigger than just Clio. This is a huge enabling investment for Clio to do big things
for the legal industry. And we’ve seen even in just the couple of months since we announced this funding the ripple effect that this funding is having on the industry. Number one, it’s accelerating investment into Legal as a whole. There are dozens of venture capitalists and private equity investors that perked up their ears and realized that legal tech is actually a thing. That legal tech is a really exciting space and that there’s a ton of opportunity to innovate and deliver
innovation in Legal. So we’re gonna see I’m sure what will be the biggest investment
year ever in Legal this year, but I’m optimistic that 2020 will bring a bigger
investment year than ever because we’ve truly shone the spotlight on the unbelievable opportunity that legal tech offers investors in terms of driving innovation and driving long term
returns for those investors. We also think that this is an investment in the legal industry as a whole and I’ll talk a little bit more about what this means
in the next few slides, but it’s a bet that Legal
can actually thrive. That individual law firms can thrive, that Clio as a company can thrive, but more importantly we can actually grow the overall opportunity that exists for lawyers full stop with
this investment round. I also wanna spend a moment talking about the specific investors we selected in this process and we are
in the enviable position of being pursued by
every tier one investor that you can think of. And again, we were in the
very enviable position of being able to select and interview the companies we ended up choosing as financial partners for the
next chapter of Clio’s growth and the partners we chose
were TCV and JMI Equity. Now, if you’re not in
the investment space, these names may not be
immediately recognizable to you but these are what are
widely regarded as two of the best financial and
strategic partners that anybody, any company could choose to work with. And to give you a sense
of the portfolio companies we are living amongst right now, you can see that companies like Airbnb, Netflix, Peloton, Expedia,
Spotify and dozens of other recognizable brands are part of Clio’s fellow
portfolio companies today. And what’s truly exciting
about these companies is not that they’re
just enormous successes and clear category leaders, in their respective
industries but these companies have all fundamentally transformed their respective industries. If you look at the landscape of what vacation home rentals looked like before Airbnb entered
that space, it’s night and day. Netflix needs no further explanation to explain the fact that their was no streaming before
Netflix completely created that space and disrupted an industry. Peloton, Expedia, Spotify. These are all companies
that have innovated in a really significant way and fundamentally
transformed their industries. We’re also really excited to
welcome Mark Britton aboard, both as an investor and a board member as part of this investment round. Mark is in the audience
here somewhere as well, so welcome Mark and we’re so excited to have Mark’s unbelievable experience in both building Avvo and
in being a business leader in the North American business community. I had the privileged of
becoming friends with Mark over the course of his decade
plus of building Avvo, and my decade plus of building Clio where we’re almost neighbors. Mark’s just a few, a
couple hundred miles south of Vancouver and Seattle and I always had a huge respect and admiration for what Mark was doing with Avvo, the kind of culture he built in his company and the kind of innovation that Avvo’s driving in the Legal space. And we’re really thrilled
to have Mark join our board and I would really appreciate it if you gave Mark a warm
welcome to the Clio team. Welcome Mark. (audience applauding) Jared Crea published an
article earlier this week, an attorney at work and his comment, what his commentary’s on Mark joining the team was it just feels
right to have Mark Britton back in the legal field
and I really agree. Mark will also be giving a talk this afternoon at 3:15 titled, “Lawyers Are From Mars,
Business People Are from Venus.” And I think this is, once you
see the rest of his keynote, I hope you’ll agree it will
be a great complimentary talk to what I present over the next hour. So what I’d love to spend
a few minutes talking about with you is really
what is the thesis that our new investors got behind with what Clio can do in the legal space? It’s been fun for me to see
some of the prognosticating on Twitter and elsewhere around what this 250 million dollar
investment round is all about, and I’m gonna share that
with you this morning. It’s no secret. I’m happy to talk publicly about what our plans are and it’s important I talk about what those plans are because everyone in this room is partners with us in building that plan and executing that plan. And the plan really has two key pillars. Number one is building the
operating system for Legal, and this is something we have
been building brick by brick over the last decade and thank you for all of you that have been part of that journey over the last 10 years, and what me and Ryan saw over 11 years ago when we founded Clio
was a huge opportunity. We saw the fact that the
average law office really had insignificantly
adopted technologically. We saw law offices that in 1920 or in 2008 when we founded Clio weren’t really fundamentally operating all that differently than they would have been in 1908 which is
where this picture is from and I’m sure many of you have colleagues that are still using pen and paper. When our new investors talked about what Clio’s main competitor is, I think they were hoping I would mention another software company, something obvious that we might be able to list a competitive matrix with and I said frankly our
competition is pen and paper. Our competition is the 70% of lawyers that don’t use any kind of
practice management system at all and when you look at the
opportunity that exists in legal, I truly believe that legal
is the last major industry to be fundamentally
transformed by technology. Back when I was in university
studying computer science, doctors and lawyers were often mentioned in the same breath as two laggards in adopting new technology
and I think today, doctors have actually
done a ton to innovate. Over half of hospitals
in the United States often some form of
telemedicine for example. So doctors have been busy innovating and doing great things
over the last decade and I think to a large degree
this room obviously accepted, lawyers have not been innovating
at nearly the same pace. The opportunity we see with building the operating system for Legal is in building a standardized set of tools that lawyers of all stripes, law firms of all sizes can adopt, and in the same way when
1980 Bill Gates stated what seemed like an
impossibly audacious vision for Microsoft which was to put a PC on every desk and in every home, we have the same vision for Clio. We wanna see Clio in every law office. We wanna see Clio on
every desk and furthermore in every lawyers pocket
on their smartphone. And Bill Gates vision also talked about the fact that you wanna build a foundation on which other
applications can be built. And the same way that Windows
is an operating system, we want Clio to be an operating system that other applications
can be built on top of and importantly other companies
can be built on top of. For me what will look like
success with the Clio platform is when there is other
multimillion dollar revenue scale companies built on top of Clio. And we’ve already seen that happen and it will continue to
accelerate over the next decade and we want Clio to be the foundation upon which those companies are built. And what we’re providing
with the operating system from legal is a common set of tools and a common set of
key application objects like time tracking and documents
that these applications can reuse rather than reinventing the wheel every single time, these applications can tie in to the existing foundations
that Clio has built and focus on delivering
true incremental value for example in a specific practice area. Another way about
thinking about our vision for the operation system for Legal is to look at the smartphone space. You can think about Clio as
the core operating system like iOS or like Android and we provide the fundamental tools like
matters and notes and contacts that other applications
can be built on top of. And you can see obviously huge successes with this business model in app stores like Apple’s and Google’s which now have two million plus apps available. We’re playing a bit of catch up but we’re making great progress. And Clio Con today we’re announcing over 35 new integration partners being added to our platform, many of which are here exhibiting
and sponsoring the event. So please be sure to
engage with these companies and find out about the new products and services they’re offering. And we’ve seen unbelievable progress with the Clio platform
over the last five years where we now have almost
200 integration partners tied into the platform. So, we’ve seen really incredible progress and you as Clio customers
have an unbelievable range of applications you can use
to expand Clio’s capabilities. So that’s part one. That’s part one of the master plan is building the operating system for Legal and I think we’re already well on our way to do that but there’s still
a lot of work to be done. We’re a decade into this but I still think in a lot of ways we’re
just getting started. Part two is calling back to something I talked about last year which is really all about increasing access to justice, but I’m also gonna explain the kind of specific take I have on
what access to justice means. So first of all if we
look at the legal space, if we look at the opportunity
that exists out there, let’s first look at the demand side which is the consumers
that need legal services. Consumers that need their
legal problems solved, and I think what’s really interesting is the U.S. legal market is a 437
billion dollar a year market. It’s an enormous market but that is truly just represented as the tip
of the iceberg in this diagram and I think what’s really interesting and what represents an
unbelievable opportunity is the fact that 77% of legal problems did not receive legal
assistance over the last year. So that’s the demand side and then if we look at the supply side, lawyers that can help
clients solve their problems. From the “Legal Trends Report” we know that 81% of lawyers say they’re
looking for more clients. This is the number one
thing that lawyers tell us they’re looking for
to grow their law firm. So this is a pretty
amazing disconnect right? It almost seems like a paradox. We have clients clamoring for
legal services on one side, and lawyers clamoring
for clients on the other and somehow these two halves of the equation aren’t being connected. And that’s the second part of what we see as an enormous opportunity not just for Clio but for the Legal space as whole. And this is the thesis
that our new investors have really gotten behind
and are putting fuel into is confidence that Clio
over the next decade can help transform this landscape and better connect the supply and demand side of legal services. Now, I’d love for you
to humor me for a minute to talk about the access to justice gap as a product market fit problem. And as a technology guy this is a really natural way for
me to frame the problem but I think it’s also an instructive way for innovative lawyers to think about the problem as well because as a useful reframe and
a useful way of thinking about the way you’re
developing legal services. So let’s start with the product. When we’re talking
about product market fit this is a phrase that was popularized by Mark Andreessen who was one of the most famous venture
capital investors on the planet. He runs a venture capital firm called Andreessen Horowitz
with Ben Horowitz. He invented the first
web browser NCSA Mosaic. He founded Netscape and sold it for hundreds of millions of dollars. So this guy knows his stuff when it comes to product market fit and let’s first talk about the product side of the equation. The product in this
analogy is legal services and I think it’s really important not to think about these
in a really generic way but in a really specific way. The product is the specific
legal services you’re offering. It’s the way you package them up. It’s the pricing that you use. It’s the workflow that consumers use to purchase the product. It’s whether it’s on your website or not. Everything around how you
package your legal services, everything how you charge
your legal services is what decides the product
side of the equation. And then we have a market, right? We have a market for legal services. This is everyone on the planet that might have a legal need of some kind. And then when we talk about the concept of product market fit it’s really the overlap that exists between
the product and the market. So when we talk about that
access to justice gap, I think what we’re actually talking abut is the fact that
the 77% of legal needs that are unmet by lawyers and the fact there’s 81% of lawyers
that want more clients, is just evidence that there is
actually very little overlap even though we’re a few thousand years into building this profession, there’s actually very little overlap between legal services and
how lawyers deliver them and the way that consumers wanna consume those legal services. And the vast opportunity
that exists for lawyers is to innovate and look at
this access to justice gap as an opportunity rather than an obstacle and I think lawyers and
regulators especially are very analytical and that’s a strength in a lot of ways but one of the places that’s a weakness is when we talk about the access to justice gap like it’s some kind of externality that someone else needs to solve. I hear a lot of lawyers
and regulators talking about the fact that somebody needs to solve the access to justice problem, but this is actually a market opportunity that exists for everyone in this room to go out and solve for and in solving for this problem you will in your own specific way help bridge
this access to justice gap. And here’s another frame for that problem just to make it really concrete. When Howard Schultz bought Starbucks, and expanded it from one
store near Pike Place Market in Seattle to the vast
worldwide enterprise it is today with over 25,000 stores, he didn’t talk about
an access to coffee gap that somebody needed to solve. He saw that there was a lot of Americans drinking really shitty coffee and that we could do better and that he wanted to make a high
quality European cafe experience available to every American no matter where they were in the country and this took several
years for him to build but he built an unbelievable
not just North American but worldwide empire
with the simple premise that you can go into any
Starbucks around the world and be guaranteed to
get a good cup of coffee that is very standardized globally. So he didn’t talk about an
access to coffee problem that somebody needed to solve for him. He saw a gigantic opportunity and I think that’s exactly the opportunity that exists for lawyers
today is to tap into this enormous market
opportunity where if we bring this product market fit
opportunity together, again just a tiny amount of overlap, just a tiny amount of product market fit that we’ve created over
the last 4,000 years is a $437,000,000,000 opportunity, that implies that the
rest of the opportunity is worth at least 1.4 trillion. So when we’re talking about the kind of opportunity that exists for lawyers that are willing to innovate, we’re talking about an opportunity that is in the trillions of dollars. And I’m not trying to be hyperbolic when I state that I truly believe that lawyers that realize this opportunity and realize that this gigantic gap between the product that is legal services as they’re offered today and
the enormous latent demand that exists in the
market on the demand side that this is not an extrinsic problem for somebody else to solve, but an opportunity for us collectively and by the way when I
say us I truly mean us, the people in this room
can solve together. And in solving this we will not only increase access to justice, we will unlock an unbelievable amount of value for everyone in Legal to grow the overall market opportunity. And the other, what might
be controversial statement that I wanna assert is I really think that everyone in this
room is an entrepreneur. Even the way you were
trained in law school to be a lawyer and often not trained in any aspect of how to run a business, you are truly an entrepreneur in that by definition an entrepreneur is someone that is struggling to connect a product with a market and create
product market fit, and I think the most exciting thing about being a lawyer
today is that technology and the tools available to us allow us to develop innovative legal services and deliver legal services in a way that just wasn’t possible
just five or 10 years ago and in doing so we can unlock an enormous, enormous market opportunity. So those are the two pieces
of the investment thesis that TCD and JMI got behind and that I’m really passionate about and all of team Clio is passionate about is this dual prong approach of building the operating system for legal and growing the total market opportunity for lawyers by increasing
product market fit between the way lawyers
deliver legal services today and the way consumers want
to consume legal services. So in the second part of the keynote I’d love to outline a
framework we’ve developed for building a world
class thriving law firm. And this is really the sum total of many of my findings and my teams findings over the last decade of building Clio and working with thousands
of the most innovative, most forward thinking
law firms on the planet. And what we’ve looked for is patterns that we can extract around what are the common threads we see in the best most thriving law firms on the planet. So there’s two pieces to this. The first is around performance and I’ll explain what
I mean by performance. Back in 2016 we published the
integral legal trends report, and this was really a seminal moment both for Clio and for
the industry at large because there had never been a report like the “Legal Trends
Report” published in legal. The “Legal Trends Report”
as a quick refresher was a report based on data analyzed from tens of thousands
of law firms using Clio as well as external surveys
and through anonymized and aggregated data statistics we were able to provide
key insights on how the average law firm runs and what some of the opportunities might, what some of the
opportunities for law firms becoming more productive looked like. And this was a pretty devastating set of findings that we presented in the first “Legal Trends Report”. This was really a big
moment for the legal space and caused a lot of people
to pick up their heads and take notice around how
much work needed to be done in terms of improving
law firms efficiency. So first let’s look at utilization rate and I’m gonna get into a few details over the next couple of slides. Please dial in and pay attention for these slides because we’re gonna be talking about these three concepts a lot over the next 20 minutes or so. The first concept is utilization rate. Utilization rate is the number
of billable hours worked in a given day divided by the total number of hours you have in a work day. So if you worked for
example of billable time for two hours of your day, and let’s say optimistically
your work day was eight hours, you would have a 25% utilization rate. Next, and you can think about
this as a bit of a funnel, next we have the realization rate. So once you have your utilization rate and a certain number of
billable hours worked in a day, the realization rate is how many of those hours that you decide to actually put on an invoice
that you send to you clients. So it’s the number of
hours invoiced divided by the number of billable
hours worked in a day. So out of those two hours
in my eight hour work day, if I decided to bill one
out of those two hours and write the other off my
realization rate would be 50%. And finally we have the collection rate and the collection rate is how much of the invoice hours I send to clients that I actually get paid for. So net of any bad debt that might exist, clients that decide not to pay me, that’s my collection rate. And what we saw in these three statistics was on average the utilization
rate for lawyers across the United States was 31%, the realization rate for lawyers was 81%, and the collection rate
for lawyers was 86%. And what this collectively formed was what we described
as a devastating funnel where the average lawyer was only working on billable case work for
two and a half hours a day. Only two out of those two and
a half hours were realized and on average only 1.7 of those hours was paid to us by clients. So there’s only 1.7 hours of
true revenue generating work that gets deposited into my bank account at the end of every day. And we felt that these unit economics for the legal industry
just were not good enough. There’s obviously a lot of
work that needs to be done to improve law firm
efficiency and productivity. And we’ve been enhancing and rounding out the story and deep
diving into this story over the last three sets
of “Legal Trends Report” and what we’re thrilled to announce at today’s Clio Cloud Conference is the fourth edition of
the “Legal Trends Report,” the 2019 “Legal Trends Report”
which is being published and made available for free this morning. So be sure to download the PDF for free from our website and
you can also track down the report on the conference app. George Psiharis will also be giving an in depth presentation on every aspect of the 2019 “Legal Trends Report” in the Harbor Ballroom
right after this talk. But I wanna share a few key highlights from this years “Legal Trends Report” and I am so exited to share
these insights for you because I truly think they’re some of the most important insights we’ve delivered in the
“Legal Trends Report” since the inaugural edition back in 2016. And what inspired this
years “Legal Trends Report” was a fantastic book by Jim
Collins called “Good To Great.” This is a book that Jim
published over a decade ago and what he did was analyzed thousands of publicly traded companies and try to identify the
performance characteristics and the culture characteristics
that helped a small handful, 11 of these companies stand
apart from their peers and deliver results that were
truly great not just good. And what we were able to with Clio data in this years “Legal Trends Report” is do the first at
scale longitudinal study of law firm performance. So again, by looking at aggregated and anonymized data of over five years of data in Clio we were able to identify really what are the good,
great and stable law firms? And what really helps separate them? We created three segments
of categorization in the “Legal Trends Report” this year. In this good to great analysis we took one group of law firms that were identified as the growing firms. These were firms that had sustained growth of over 20% revenue growth. We had a stable group of law firms that has essentially flat growth and finally a set of shrinking firms that saw declining growth of over 20%. So again, just so everyone’s clear at the data we’re looking
here what we’re looking at is thousands and thousands of firms in each one of these segments
and we ask the question, are there underlying data characteristics that help us identify what are the traits of growing firms and what helps them pull apart from and
differentiate themselves from stable and shrinking firms? With the view that if we
can unlock this secret, we can tell everyone in this room, we can tell every Clio customer what it means to become a growing firm. What metrics you need to dial in and focus on to pull apart from the pack. And what I’m really
excited to share with you is we did figure out that formula and here’s what it looks like. Number one, growing firms when you look and I’m gonna be presenting a lot of data over the next five or 10 minutes. It’s gonna seem like a lot but sit down with the “Legal
Trends Report” tonight, read it front to cover and we’re gonna go in depth on
every single one of these. George will deep dive on this in his talk in 10, 15 and again I hope to provide a broad overview that is a good synthesis
of the overall story here. With growing firms what we saw
was 112% revenue growth over that five year period
which is truly incredible. These firms have more than doubled in revenue scale over
this five year period. They had 57% client
growth, 57% matter growth and 32% lawyer growth meaning their head count in terms of numbers of lawyers grew by 32% and I think the interesting observation here is that the revenue growth
vastly outstripped any of the underlying drivers of that growth from a client matter
or lawyer perspective. Stable firms, similarly
have 0% revenue growth over that time frame and very stagnate either growth or minor declines in terms of matters and
number of lawyer at the firm. And finally shrinking firms saw essentially the opposite pattern. Almost the mirror image of what we saw with growing firms where
revenue growth deteriorated at a rate that was much faster than any of the underlying growth
indicators like matter, client or lawyer count. So the question that we asked was if revenue growth is so decoupled from some of what might
the obvious drivers of that revenue growth might be like number of matters
or number of lawyers, what else could be driving that? So we asked a few questions like could it be average hourly rate? And interestingly the answer was no. In fact what is maybe most interesting is that the shrinking
firms actually build more on average than growing and stable firms. So the average hourly
rate was not the answer for what separated these firms. We then looked at realization and collection rate across these firms and what you can see is
that both dimensions, growing firms earn more from the work they perform relative
to the shrinking firms. So you can see that in realization rate, the realization rate for both growing and stable firms was in the 89 to 93%, but what’s very interesting is we saw a really precipitous decline in realization and collection rates in shrinking firms over this time frame. But the real smoking gun in
our good to great analysis was around utilization rate
and what we saw was that, and to me this was one of the
most fascinating data insights we have in the 2019 “Legal Trends Report” is the fact that growing
and shrinking firms actually started off at the beginning of this longitudinal analysis with growth, with utilization rates
that were almost identical but growing firms figured out a way of improving their utilization rate which again is just the
number of billable hours they had per day on average divided by the length of their work day, they were able to improve
their utilization rate by one to 2% every year. And shrinking firms conversely saw their utilization rate shrink
by one to 2% every year, but the cumulative impact of this over a five year time span as we can see is that shrinking firms
had a utilization rate of just over 20% and growing firms had a utilization rate of just about 33%, and in relative terms growing
firms had a utilization rate that was 50% higher than shrinking firms. So I think this is such
an incredible insight for us to take pause
and soak up for a minute because what it really show us is that the cumulative impact
of small improvements on a yearly basis can really amplify over a course of a five year period and finding that 1% utilization rate by the way equates to
about 20 hours a year. So this isn’t a massive difference. This is a relatively small difference. If you can find a way of investing in a tool or technology
or workflow or process that helps you get back 20
hours of billable time a year, that’s putting you on the path to be a growing firm and think about that. That’s just an hour and a half a month. It’s not that much
efficiency that you need to be driving but the amazing thing is I think the important finding is that once you implement
that improvement, and make a one to 2% improvement
in your utilization rate, that’s something that you can build upon. That’s gonna be a dividend that pays back every year that you practice. So think about an investment
that you make today. If you’re practicing for another 20 years, that investment in improving
your utilization rate will pay you back 20 times
over over that time frame and help you become one
of the growing firms. So what we did is we
thought at a high level about this productivity
story and the context of the “Legal Trends
Report” and really think that we can categorize
firms in two dimensions. There’s firms that are
nascent and just starting to put their arms around what these key performance indicators are and how they can be improving them and then there’s firms that
have really unlocked this code. Figured out how to be more productive and fall into this productive category. Now, the second dimension
that we think about in terms of what it takes to build a truly thriving law firm
is around client experience. And I wanna spend a moment just explaining what I mean by this because I think it’s one of the most important
opportunities that exist. When we’re talking about
this product market fit gap, I believe the vast
majority of the opportunity we have to execute against
relates to the client experience. When I think about the Clio
roadmap for the next decade, the vast majority of the road map’s gonna be dedicated to innovation in this dimension in
the client experience. And this is for one key
reason and that’s the fact that we’re seeing the
consumerization of legal services. And what I mean by the
consumerization of legal services is that consumers expectations
are shifting rapidly. When we look at the apps
that consumers are using and when I say consumers by the way I don’t necessarily
mean just lawyers that, or consumers that are
non business consumers, legal services, I mean everyone. Whether you’re engaging with a lawyer for corporate work or getting a new will done, this all applies. And the basic concept is that, the effortless experiences which many of you have heard me
talk about for years now, these effortless experiences
that other industries are delivering to consumers are shifting their expectations of what
working with a lawyer looks like. When we have things like
the Starbucks app and again, Howard Schultz has done a
great job of discovering how to drive innovation in something as simple as buying coffee, he’s made is so simple for us to order a coffee and pay for a coffee
using our smartphone app. The Starbucks payment
app, the Starbucks card is a more widely used digital currency than the digital currencies Apple Pay and Google respectably have Google Pay which is really incredible. When you look at the
convenience of online ordering where you can order your coffee on the way to work and just pick
it up with it waiting for you at the mobile takeout window, I installed this app and started using it and I’m sure my consumption
of Starbucks coffee probably went up by about 30 or 40% just because they made this
experience so effortless. We’ll look at examples that
I talked about earlier. Airbnb makes it so simple to
book a vacation home rental. That usage or the number of
vacation rentals worldwide has gone up by several
orders of magnitude. Uber makes ordering your own limousine or your own taxi something
that’s just a few taps away. Amazon makes ordering a product and getting to your doorstep something that is often done just in the same day. So these are the apps and the experiences that consumers are experiencing dozens of times in a given week and this is reframing their expectations of how lawyers deliver
legal services to them. And this just isn’t, this isn’t just on the consumer side by the way. I talked earlier about doctors innovating. There’s unbelievable innovation happening in Telehealth where you
no longer need to go to an emergency room or family doctor to get your medical problems addressed. You can use apps that put you in touch with a doctor instantly like this Babylon system from TELUS. Many applications even that we thought would always live in bricks and mortar, things like buying glasses. We have systems like
augmented reality available on everyone’s smart phone that can show you what a pair of glasses will look like on your face without having
to walk into a store. You can even see what a
piece of furniture looks like in your living room with these
AR tools without ever walking into a showroom or without having to buy something and see
if it fits in your space. So this is what the future of
consumer services looks like on every front and I think
it’s really important for us to realize this wave
of change is coming for legal. We might be able to dodge
it for a few more years then other industries but it will hit us and it will present an
enormous opportunity for everyone that can
get ahead of this wave. I think there’s some great examples of how the consumerization of IT is also creating huge opportunities for companies like Slack. I think what’s so interesting about Slack is when it launched in
2013 it was regarded, it was entering a space
that was largely regarded as having reached its end state. There was companies like HipChat that were widely used and widely liked by their customers but
when Slack launched, they had 8,000 customers sign up for it in the first 24 hours that they launched because they just did so
many little things better than HipChat did and they’ve now become a multi billion dollar
publicly traded company and are the most widely used
chat tool in workplaces. And again this was
because they just focused on making the experience better than their competitors and they were able to enter a
space that many regarded as crowded and commodified and they won. I think another great example of this on the business side is Zoom. Zoom created video conferencing
that just worked, right? For anyone that hasn’t, has
everyone used Zoom by the way? I’m just curious how
many people have used it. It’s amazing isn’t it? It just works and for anyone like me that would power up WebEx
and get frustrated with it, having to to download 16 updates and you end up showing up late to your video conference ’cause it spent half a day
updating, this is the kind of experience based
opportunity that exists. I think what’s most fascinating
about the Zoom story is the CEO and founder of Zoom Eric Yuan, actually worked at WebEx and he left WebEx because he saw a company that was not responding to its customers needs. He saw a company that was drifting apart from the market it once had
great product market fit for and he said if I’m not gonna be allowed to fix this problem here I’m
gonna go solve it on my own. And he founded Zoom and
he solved the problem and again he’s created a
multi billion dollar company that has publicly traded
in the most widely used video conferencing solution now, again in a space that many regarded as having been completely dominated and won over and it had
reached and end state and instead he showed that
innovation was still possible. Now the second piece of
data I’d like to present under this client experience umbrella is again from the 2019
“Legal Trends Report” and I think you’re gonna
find this section fascinating ’cause what we’re gonna talk about is how consumers shop for lawyers, and what we did is we’ve doubled down on the consumer research we did last year and went even deeper to understand how the average consumer
finds and selects a lawyer and what traits lawyers need to have to be the lawyer that the client ends up picking to work with in the end. So first of all we asked
one foundational question which is how do clients find a lawyer? And many of us know that a large portion of consumers ask for referrals. We’ve talked at past
Clio Cloud Conferences how important referrals are. And although 59% of
clients look for referrals, 57% of them are looking
for lawyers on their own. They’re looking in
directories like Google, they’re looking in directories like Avvo, and 16% of those consumers do both. So I think one really important finding is we’ve often talked about how referrals, how important referrals are but a very, very important channel is consumers that are doing their own research and we see this actually as the most, what we expect will be
the most rapidly growing way that consumers are
trying to find lawyers. The next piece of data we looked at is what is the expected
response time for lawyers? When a client contacts you how quickly do they expect you to
get in contact with them and what found was the
79% of consumers expect a response within 24 hours. So this is kind of the magic threshold for you to be thinking about and faster is better by the way. I’ll talk a little bit
about that in the next slide because 57% of clients told us that they contacted more than one lawyer. So, clients are shopping around. But I think what is really interesting is that 42% of lawyers or clients rather say that they stop shopping if they like the first lawyer they speak with. So although 24 hours
is kind of the cut off, most clients will end up working with a lawyer that gets
back to them faster provided they like the lawyer they speak to. So, be likable I guess which
is probably the hardest part. (audience laughs) And then be the first to get back in touch with a client and that
client will be yours. Now here’s one mic drop moment and I unfortunately
don’t have a mic to drop, but 64% of clients told us they contacted a law firm that never responded to them. And when we got back the
consumer data that told us this, we were highly skeptical and we wanted to dig into this further but we wanted to pull at the thread for
a few different reasons. Number one, this was a large scale survey. We surveyed over 2,000 consumers, so we were confident we
weren’t looking at noisy data. And I also remember the conversation that I had with Mark Britton when he was still with Avvo
from a couple years prior where he told me that the response rates for leads that Avvo was sending to its lawyer clients was under 20%. Which to me was incredible because these are leads that lawyers
on the lawyer platform are paying for and Avvo is handing those leads over to a
lawyer saying here’s a lead that probably wants to pay you money and less than one in five of
the lawyers in the lawyer, on the Avvo platform were actually getting back to those clients. So between this data point and the anecdote I got from Mark, we decide to kick off a large scale study where we hired an
independent research firm to call and email over 1,000 law firms where we wanted to put
these law firms to the test. And in putting these
law firms to the test, we wanted to essentially
have this research firm, pose as a client, engage
with these law firms and see what the response
rates for these law firms were. So there were 1,000 law firms, selected at random
across the United States in a variety of different practice areas and you can drill into the details in George’s talk later this morning, but I wanna share some of the high level findings in this test. So first I wanna emphasize a few important characteristics
about the study. Number one, we emailed
1,000 of these law firms to test what their
email responsiveness was and we also did a qualitative scoring of how high quality the
responses to the emails were. We also phoned a subset of these firms. 500 of these firms to understand what their phone responsiveness was and here’s where some I think really groundbreaking
findings start to fall out. Let’s look at the email side first of all. 60% of the firms that we emailed, again posing as a client asking for them to work with us with
a very plausible story for why we’d want to work with them. 60% of the firms that got an inbound lead that walked talked and looked like a lead did not respond to that lead. Of the 60% that did respond, 71% responded with what we considered an inadequate response. And this was a very
technical grading process we used where we looked
at the kinda information that was in the email
response and we identified what we considered the best response and the worst response and one
of the inadequate responses we got for example was
thanks for your email, can you please phone me? (audience laughs) That happened a lot. And again as a consumer
when we’re thinking about the client experience
if I have emailed you it’s probably a pretty good indication this is my preferred
mode of communication. When you tell me phone you, I probably haven’t phoned you in the first place because
I’m busy during the day, I have a job that doesn’t
afford that convenience, whatever the answer might
be email is best for me and you’re inside telling
me to phone you back. So that’s the email side of the dimension where there’s obviously
a lot of work to be done. Let’s look next to the phone base data. And again hold onto your seats. (audience laughs) 56% of lawyers answered our phone call which is great but that
obviously leaves the flip side. 44% of firms that did not
answer the phone call. 39% of our calls went to voicemail. And 57% of the voicemails we left were not returned within three days. (audience laughs) And the reason we’re
presenting this data by the way is not to ask you what
exactly would you say and do around here but instead to prompt a really important discussion because what we realize is that
there’s no lawyer looking at their phone ring and deciding not to pick it up because
they don’t want business. Again, 81% of lawyers are
looking for more clients. We know that they’re not too
bust to pick up the phone. I’m sorry, they are too
bust to pick up the phone. We know there’s structural aspects of practicing law that
work against your ability to be responsive to clients and we view the huge opportunity that exists for Clio and for the technologies we deliver and the processes that we hope to help you adopt to
make you more responsive to clients because there’s an unbelievable amount
of opportunity out here. When we talk about the fact that there’s a product
market fit problem in Legal one of the things we’re talking about is the fact that you can
actually improve access to justice literally just
by picking up the phone. Right? When we’re talking about this
being a hard problem to solve, this is not, yeah, do we
need some applause for this? This is the kind of
opportunity that exists and this is the exiting opportunity because there’s so much market potential to be unlocked doing simple things like picking up the phone, responding to an email,
communicating with clients in the channel in which they
prefer to be communicated with. So this is the client experience dimension of delivering legal services that we think is a second really important dimension for us to think about when it comes to innovating in legal services. What we’ve done is put
all of this together in a framework that we call
the Law Firm Maturity Model, and this is a framework that
we’ve been using internally at Clio for the last year and thinking about how we do product development and how we deliver
innovations to law firms. But I think this is actually a model that law firms can equally well
adopt within their law firms to think about how
they’re evolving as firms and how they can turn
into thriving law firms. And I’ll again provide
a really brief recap of what we’re talking about here. One really important dimension
of being a thriving law firm and in tapping into this
unbelievable latent legal market that exists is being productive. Adopting the latest technologies so that you can be efficient in delivering your legal services so that you can deliver
those legal services maybe at a lower price point
or a more convenient way or a different package
than you were in the past. That you can internally
get your utilization rate into that 30, 40 plus percent range so that you’re a growing firm. The second dimension that I think is such a huge opportunity because as you can tell from the
“Legal Trends Report” data things are in a sorry
state of affairs in Legal. There is an enormous,
enormous amount of opportunity for firms to choose to innovate on the client experience dimension and that’s where I think there is so, so much opportunity both for us as a company developing new technologies but for everyone in this room that wants to repackage and redesign the way they’re executing
it within their law firms. So with that I’d like to shift gears and talk a little bit about
those product innovations we’ve been working on over the last year that really help fit into
this law firm maturity model and deliver on the kind of
thriving law firm vision that I’ve talked about for the last hour. Let’s first talk about legal productivity. I wanna summarize both some big features and some small features
that are reflective of us listening to your feedback over the last year in terms
of what you wanna see in Clio. Number one. We made a set of really significant
updates to our calender. We redesigned the calendar
from the ground up and we’ve made dozens and
dozens of improvements over the last year
listening to your feedback. One of the most important developments in the calender in the last year is that we’ve made the syncs between Clio and all of our external calendar services like Google Calendar real time where you’re no longer
waiting even minutes or in some cases hours
for those syncs to finish. They all happen in total real time. We’ve also made significant
upgrades to contacts. Some small. Again we now allow
middle names in contacts so they’re not always huge features but maybe deserving of applause. Thank you. Apologies for omitting that 10 years ago. It took us awhile to fix it. We allow you to, we’ve
improved the contact card that is every matter
to make the information that relates to a contact
more easily accessible to you within the Clio app. We’ve made over 21 meaningful enhancements to the Zapier integration
where again using the Zapier integration you can connect to over 2,500 other applications and we’ve made it much easier for you to connect into new types of workflows and actions with Zapier. We rolled out improved email and add ins. So with once click you can now log all the emails from a
thread really easily. The email integrations now are now available on mobile as well. So if you’re using Gmail, the Google enhancements,
the add ins for Gmail are available on both iOS and Android. And time tracking can now be done directly within our email integrations. And in Outlook you can now
log emails to closed matters. We also and this was a
big, big set of requests that we integrated into massive upgrades to our custom field. We now let you set up custom field sets and customize those layouts
and more easily show and hide custom field sets as you’re working through your matters. And you can also customize
you data tables easily. Full text search was a
feature we announced last year and rolled out in data at
the Clio Cloud Conference. We’re now indexing over
a billion documents for our full text search and making it easy for you to find
any snippet of text to cross all the documents that exist in Clio in a fraction of a second. And we’ve also been hard at work in building a ground up
redesign of our mobile app. This is something we’re
really excited about and really proud to announce and one of the things we view as
being really important, I know some of you nod knowingly at this picture knowing
this is what working on the go looks like
for the modern lawyer. We know again through
the “Legal Trends Report” that 85% of lawyers spend more than an hour on the day trying
to get work done on the go and a first class mobile
experience is something that’s obviously really key to that and what we kicked off last
year was a ground up redesign and re-architecting of
the Clio mobile app. We actually started writing this app from scratch for a few different reasons. One was to adapt to modern usage patterns that had emerged in the eight years since we rolled out the first Clio mobile app. The mobile landscape
had changed and evolved and improved in a lot of ways. And we wanted to come up with an app that was best in class, adopting some of those new usage patterns
and improved usage patterns. From a technical
standpoint we also rebuilt the app from the ground
up using a framework that allows us to code one app that works on both iOS and Android. So this means that forevermore iOS and Android will have the same set of features at the same time
as we roll them out for mobile. Which is huge because ultimately what this unlocks is enormous velocity within our team where they’ll
be delivering mobile features on more rapid basis than they’ve ever been able to in the past. Common workflows like adding, accessing your calendar,
viewing documents, accessing your most
recent list of matters, are now and secure chat with your clients, are now completely reimagined experiences that are vastly superior to the
original version of the app. We’ve got a couple customer
testimonials to share. You can see that our
customers are thrilled with the new workflows
the Clio app affords and are just super happy
with the app overall. The new app, the new Clio
mobile app is available today on both the App Store and on Google Play. Let’s talk for a minute
about firm performance. This is the second of the three pillars I wanna talk about in the product front and I wanna spend a moment
talking about Clio Payments. Clio Payments is the credit
card payment processing solution directly integrated within Clio. And I think what is
amazing is that just over the last 12 months our customers, Clio customers are processing
over a billion dollars of payments through Clio Payments which is truly incredible. (audience applauding) If you’re still on the fence about whether credit card
payments are the future of how legal payments will happen, I hope this strikes home with you. This shows you just how number one, consumers want to pay by credit card and this is good for you as well. When we look at the data that shows us how quickly electronic
payments get paid, what we see is that 57% of invoices that are sent by via Clio Payments that allow credit card payments to be made get paid in the same day. So yes, there are some
small credit card fees to pay when you accept
credit card transactions but I think not using credit card payments because those get in the way is really missing the
forest through the trees because you can be
getting paid the same day and eliminate all the risk of bad debt by using credit card payments. This is huge. Another feature we rolled out recently that has just exploded in
uptake is Outstanding Balances and I’ll how you really quickly, oh, we got some fans of
Outstanding Balances in the crowd. It makes our product teams day by the way when spontaneous
applause erupts for this stuff. What Outstanding Balances lets you do is send a simple email to your clients that provides a summary
of all the invoices that are unpaid and
allows them with one click to make a payment against
all the outstanding invoices. And this is a great way
to very politely remind your clients that they owe you money but it’s also a great client experience for them because they don’t need to go sifting through their
mail to figure out what four or five invoices they haven’t paid for you and make five or six different checks to pay you and settle down with you. They can look at one
email and click one button and in one smooth workflow settle up on all their outstanding
costs of balances with you. So huge new feature. Expense categories are something we rolled out recently again to huge acclaim. This is something that lets
you get a better understanding, a more fine regained view of your expenses and what are your recoverable versus your unrecoverable expenses. We have rolled out huge improvements to our accounting
integrations with a vision of eliminating all duplicate entry between Clio and your accounting systems. We’ve made huge strides in this direction. Thank you and it’s only
gonna get better from here. Another massive improvement
we’ve rolled out just in the last few
months is non billable time and the ability for you to easily track your non billable time in Clio. And one of the reasons that this is so important is when we
talk bout utilization rate and when we talk about
the fact that you need to be improving your
utilization rate over time, tracking your non billable
time is so, so key to this. So again, you can easily flag
any time entry as non billable and see that rolled up
in a simple visualization and rolled up in Clio’s various reports. Now, this is one of the
features I’m most excited to announce and one of the questions we’ve had over the years
with Clio especially since we launched the
“Legal Trends Report,” excuse me, back in 2016 is okay, I hear about this devastating funnel. I see that I need to
drive my utilization rate, my realization rate
and my collection rate. I also just saw Jack talk about this Law Firm Maturity Model. I’m super excited about it. How do I track my firm performance? How do I track how I’m doing on the X axis of this Law Firm Maturity Model? And one of the gaps and
certainly a gap I acknowledge is that Clio to this point hasn’t provided the tools for you to really easily look at those law firm performance
metrics in real time. And what we’re releasing at Clio Con today is a firm performance dashboard that allows you in real time, thank you. (audience applauding) Allows you in real time to track your utilization rate for
example and importantly how that utilization rate
is changing over time. So this allows you to keep a pulse on exactly how you are doing
in terms of utilization rate. We also give you real time dashboards for how your realization rate is tracking. Again that’s tracking how much you’re discounting your time
or discounting your bills. And finally we provide a live dashboard to track your collection rate over time. So this is shipping today. Early access is available
to attendees of Clio Con. To get this new feature
activated on your account, come visit us at a Clio Lab and we’ll flick it on for you. Super excited to sign
up folks in this room and start getting feedback
on the performance dashboard. Let’s talk next about
the client experience. One of our visions with Clio is to solve for this end
to end client experience where we want every
touch point that you have with a client to be
something that gets better thanks to the fact you’re using Clio and we want our customers to have a competitive advantage
in the market place because they’re using Clio. And one of our major investments last year was in acquiring Lexicata and over the course of the last year we transformed that product into Clio Grow. We’ve invested in
improving the performance and security of Lexicata. We’ve migrated almost
all of Lexicata customers over to Clio Grow and we’ve more than doubled the Lexicata customer base over the course of that
last year on Clio Grow. So the adoption we’ve seen with Clio Grow has just been incredible. The feedback we’ve gotten from customers has been amazing and
it’s been the first part of Clio that’s extended into
the client acquisition part of the consumer life cycle. Wanted to share a few stats in terms of the adoption we’ve seen with Clio Grow. We’ve seen over 85,000 intake forms sent, 60,000 documents esigned,
217,000 matters created and over 32,000 appointments scheduled. 32,000 appointments scheduled. That’s pretty incredible. Now, I wanna talk about
one of the first major new features we’ve added to Clio Grow by setting the stage by talking about the fact that again, the stat from this years
“Legal Trends Report” that 42% of clients stopped shopping with the first lawyer they speak with. And something we gave a lot of thought to was how can we increase the responsiveness of lawyers that use Clio and
help them win that client? And what we looked at was the inefficiency of setting appointments. We looked at some data that showed us that it takes on average eight emails to schedule an appointment over email and we all know what this looks like because it makes us wanna put a gun in our mouth every time it happens. Does Thursday at two o’clock work for you? No, I’m sorry. How about Friday at one at one p.m.? No, I’m out for lunch. Can we talk on Monday at two? And again, this goes back and forth on average about four times, eight emails in total and
a really poor experience both for your client and for yourself. It’s hurting your productivity and every minute that those emails are going back and forth
is a minute another lawyer might get to that client. And again, we know we can do better. We have our ear to the ground in terms of what’s happening in
the consumer app landscape and we know that with apps
like Uber and OpenTable, client expectations are
shifting to a place where you can easily book these
appointments online. And what we’re releasing at Clio Con today is the Clio Grow Scheduler that allows you to put a widget on your website or to send a link to a client where you, okay, it sounds like some
people are already excited. Thank you. (audience applauding) And when a client clicks
on this link to book now, you can publish specific
availability slots in your Clio calendar. Your client can browse through
those availability slots, pick a day that they
want to work with you, pick a specific time that
they wanna work with you, confirm that appointment,
fill out a few details that by the way goes right
into Clio’s intake system so you never need to
type this information in and shows up as a calendar
entry on the clients device. (audience applauding) Yeah, this is super cool. It gets better. On your side in your Clio calendar with zero intervention from your yourself, you sit down in the morning with your cup of coffee in hand and just start going through the initial consultation requests that were setup thanks to Clio Grow. This appointment will
show up in your calendar again with zero intervention from you. It will show it up in your funnel, in your lead intake funnel
with zero intervention and your client has had a
responsive amazing experience with you with, while you
could still be asleep by the way which is incredible. This is what we think the
future of legal looks like. We’re also gonna be adding
payments to this feature shortly so that if you wanna collect, all right. Super fan over here, thank you. We’re gonna add payments to this so that when you first
engage with a client if you want an initial
consultation fee for example, you’ll be able to collect that at the end of the intake process. Your client can put in
their contact information and by the time they sit down
for that initial consultation with you they’ve already paid. So a really incredibly feature and you can see more about
this at the Clio Lab. (audience applauding) I talked at the beginning
of this segment talking about how this Law Firm Maturity Model is really helping set the stage for product innovation at Clio. This is something we’re
using a lot internally to help drive our product
development road map and what we’re looking
at and if you’re looking for a common theme in some of the features we’re announcing at Clio Con today, things like Scheduler, Mobile, Clio Payments and the Firm Dashboard are all things that let you move into this thriving quadrant of
the Law Firm Maturity Model. By implementing and
adopting these features, you’re both making your
law firm more performant but you’re also delivering
a better client experience to your clients and your
perspective clients. And we think that is just the kind of win win that is magical. That’s something that will be driving so much of our product
innovation over the next decade and why we’re so excited
over the next two days to hear from you about what else you’d like to see us doing on this front. Now to conclude I want to again call back to our mission to transform
the practice of law for good, and although I’ve just finished talking about the product and the platform that we’re building with Clio, I want everyone to
realize that transforming the practice of law for good involves a lot more than just building a product. We’ve obviously been investing in the last decade and doing things much beyond just building software. We launched the Clio Cloud Conference with a view to the fact that we needed to gather with our most
innovative customers. We needed to gather with
the most innovative people in Legal and build something
much bigger than just Clio. We wanted to build a conference where we’re talking about what the future of law looks like and what
the next two days about is gathering together and
co-creating what the looks like. This is a conference where
you’re an active participant in working with us and building what the future of law looks like. We’re investing a lot in helping spread the best practices and
help the thought leaders in Legal be heard to a larger audience. This year we launched
the “Matters” podcast which has already seen
over 30,000 downloads and been recognized as one of the best legal podcasts available. Something we’re really proud of. For years we’ve been
publishing blog articles about innovation in Legal and
best practices you can adopt. We’ve traveled the world. We’ve exhibited at hundreds of conferences across the United States
around the world spreading the word about Clio and the future of law. We’ve written white papers on this and of course most recently launched the “Legal Trends Report”
where for the last four years we’ve published what has
become a ground breaking and important publication in Legal that is both quoted by academics and adopted by innovative law firms as the bench mark for
their law firm practices. But something I’m really excited to share with you as the final thing, the final reveal of the Clio Cloud keynote is something I’ve been working on for the last year and it’s a book. It’s a book called “The
Client Centered Law Firm” and what it is is really a collection of my thoughts and my learnings over the last decade of
building Clio and working with thousands of law firms
that have been blazing a trail in terms of what innovative client centered law
firm design looks like. And this is a collection of my learnings and experiences that I’m
excited to share with all of you and again we view as part
of the bigger movement of creating a promising
future for legal services. I have been honored to receive
some early positive press from a draft manuscript we’ve circulated in advance from folks like Jordan Furlong, Bob Ambrogi who’s joining us here and from entrepreneurs
like Janine Sickmeyer, the founder of NextChapter. This book is available
for pre-order today. It will be available in January of 2020 in just a few short months. You can check it out at the
clientcenteredlawfirm.com. And I’m really keen to hear you feedback on this book and hopefully it provides a really great set of best practices you can
adopt in your law firm along the dimension of
improving your client experience as described in the Law
Firm Maturity Model. So with that I’d like to
conclude the opening keynote for the Clio Cloud Conference. We’re so excited for the next two days. I really want everyone in this room to look at the next two days as an opportunity to co-invent with us, to co-create what the future of the practice of law looks like. Have an amazing time and I look forward to engaging with you
over the next two days. Thanks very much. (audience applauding) (gentle upbeat music)

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