What Is the Lexcel Standard?

Introduced in 1998 to the world as a response to the growing need for consistency and quality in legal services, the Lexcel standard has become a beacon of legal best practice. Inspired in part by ISO standards, this framework, developed by the Law Society of England and Wales, aims to empower legal professionals to enhance their operational efficiency, regulatory compliance, and client satisfaction, whilst reducing risk and nurturing innovation, growth and performance.

Join us as we delve into the world of Lexcel, exploring the transformative impact it can have on legal practices and helping you discover how it can turn challenges into opportunities for growth.

What is the Lexcel standard?

Lexcel is a legal practice quality mark for client care, compliance and practice management. It employs the methodology of “plan, do, review” and establishes controls which must be documented, maintained, and overseen by suitable responsible persons. The “plan, do, review” approach will be familiar with firms that already hold CQS, WIQS, ISO or SQM certification.

As of August 2023, there were 9,465 SRA authorised law firms in the UK (which is down from over 10,000 in 2021). Of those, the Lexcel standard has been adopted by around 17% (1,578) UK firms and legal departments, of which, around 9% are in-house departments.

The Lexcel standard encompasses seven core areas, designed to enhance the quality and efficiency of legal practices:

• Client care
• Risk management
• People management
• Structure and strategy
• Financial management
• Information management
• File and case management

Client care

Lexcel firms are committed to providing exceptional service to clients. The Lexcel standard emphasises:

• Effective Communication: Prompt and clear communication with clients, keeping them informed about their matters and proactively addressing their concerns.
• Client Feedback: Establishing mechanisms for obtaining and acting upon client feedback to continuously improve service quality.
• Client Satisfaction: Monitoring and enhancing overall client satisfaction to build strong, long-term relationships.

In essence, client care under Lexcel aims to prioritise clients' needs, ensuring they receive the best possible level of service and attention throughout their legal engagements.

Risk management

Lexcel specifies controls to identify and mitigate potential risks within a legal practice. This includes:

• Compliance: Ensuring adherence to legal and regulatory requirements, including Anti-Money Laundering and the SRA Code of Conduct
• Supervision: Implementing effective supervision and oversight mechanisms
• Continuous Improvement: Promoting a culture of ongoing risk assessment and improvement
• Key Date Management: Emphasising the importance of tracking deadlines, court dates and appointments to prevent delays and ensure timely action
• Outsourcing: Controls to specify, manage and monitor quality of service, value and safeguards with outsourced service providers.

Ultimately, the risk management component aims to minimise legal, financial and operational risks to enhance the overall stability and performance of a law firm.

People management

The people management aspect of Lexcel focuses on creating a positive work environment within a legal practice, to achieve outcomes including:

• Staff Development: Ensuring that employees receive appropriate training and opportunities for professional growth
• Motivated Workforce: Encouraging and maintaining a motivated and engaged team of legal professionals
• Well-being: Promoting the well-being and mental health of staff members
• Effective Leadership: Demonstrating strong leadership and management practices within the organisation
• Equality and Diversity: Ensuring equal opportunities and diversity within the workplace

Lexcel aims to support firms in nurturing and maintaining a skilled, knowledgeable, content, and diverse workforce, essential for delivering high-quality legal services and maintaining a healthy organisational culture.

Structure and strategy

The structure and strategy requirements of Lexcel spotlight a law firm’s evaluation of their governance, structure, strategy, business continuity, and long-term planning. It looks for:

• Effective leadership
• A well-defined organisational structure
• Clearly defined roles and responsibilities
• Transparent decision-making processes
• Effective risk assessment and mitigation measures
• A commitment to continuous improvement
• Identification of resources to meet the needs of the client groups to be served

This section of the Lexcel standard aims to ensure that legal practices have a clear and effective organisational structure and strategic plan in place to enable the delivery of high-quality legal services.

Financial management

Where financial management is concerned, Lexcel wants to see that legal firms maintain sound financial practices. It includes:

• Financial Controls: Implementing robust financial controls to prevent errors, fraud, and mismanagement of funds
• Billing and Fee Arrangements: Ensuring transparent and fair billing practices while accommodating various fee arrangements
• Client Funds Management: Properly handling and safeguarding client funds and settlements, adhering to regulatory requirements
• Budgeting and Financial Planning: Developing budgets and financial plans to maintain the financial health and sustainability of the firm
• Debt Management: Managing debt and financial liabilities effectively to reduce financial risks

Overall, this area of Lexcel aims to promote financial stability, integrity, and transparency within legal practices.

Information management

The legal sector is founded upon the accuracy, protection and efficient use of confidential information. The information management considerations of Lexcel include:

• Data Handling: Properly managing and safeguarding client information, maintaining confidentiality, and adhering to data protection regulations
• Record-Keeping: Maintaining accurate and organised records of cases, transactions and client communications
• IT Systems Security: Implementing robust cybersecurity measures to protect sensitive data and ensure the integrity of IT systems
• Software, devices and applications: Checking that these are kept up to date and are fit for purpose.
• Email and website Management: Controls to manage appropriate and secure use of electronic information systems and resources.
• Document Management: Efficiently storing and retrieving documents and information
• Knowledge Sharing: Promoting knowledge-sharing and collaboration among staff to improve case management and client service

By addressing these elements, Lexcel supports law firms as they maintain their data security, and enhance overall operational efficiency.

File and case management

The file and case management considerations of Lexcel focus on evaluating how law firms efficiently and effectively manage their matters and client files. This includes:

• Suitable Organisation: Lexcel looks for systems and procedures to keep client files organised, making it easy to access information when needed
• Matter Progress Monitoring: Lexcel seeks processes for monitoring the progress of cases, ensuring they move forward smoothly and that clients are informed
• Keeping clients informed: Clients should always be clear as to the status of their matter and who is handling and supervising it.
• Risk Mitigation: It aims to minimise the risk of errors or omissions by establishing clear procedures for handling matters

Overall, this area of Lexcel ensures that legal firms handle matters with precision and efficiency, ultimately benefiting both the firm and its clients.

What are the benefits of Lexcel accreditation?

Lexcel isn't just a certification; it's a commitment to excellence that sets a high bar for legal practices. The upshot is that accreditation offers a number of benefits to legal firms, and legal departments, including:

• Flexibility: There is no single “right way” to implement Lexcel. Every law firm is different and Lexcel recognises and supports this.
• Competitive advantage: Accreditation sets firms apart in a competitive market, attracting clients and demonstrating a dedication to excellence.
• Mergers and acquisitions: Lexcel demonstrates that a firm is operating with a robust set of controls and that all of its staff are sharing a ‘common approach’, making such firms very attractive for on-boarding.
• Attracting and retaining quality staff: Applicants and jobseekers, at all levels, feel reassured by the stability and progression that Lexcel describes and supports.
• A prerequisite for offering certain additional services: Law firms must now hold either a Lexcel accreditation or the Legal Aid Agency’s Specialist Quality Mark to hold a legal aid contract with the Legal Aid Agency (LAA).
• Conversions: Potential clients can prefer law firms with Lexcel accreditation, as it signifies a commitment to high standards of service, ethics and professionalism. This is especially true of procurement teams within the public sector who have to ensure funds from the public purse are being spent wisely, and where due diligence is an important part of the procurement process.
• Client satisfaction and retention rates: It emphasises client care, leading to improved client relationships, loyalty, positive feedback, and improved client retention.
• Operational efficiency: Lexcel helps firms streamline their operations, reducing errors, enhancing productivity, and saving time and resources.
• Risk mitigation and reduction: By implementing robust risk management practices, Lexcel helps firms identify and mitigate potential issues, reducing legal and financial risks. This proved itself to be invaluable on 23rd March 2020 when the whole of the UK entered the first Coronavirus lockdown.
• Improved staff development and team morale: Lexcel encourages staff training and development, leading to a more skilled and motivated workforce. Also, having clearly defined roles, responsibilities, processes and controls can help reduce stress in the workplace.
• Financial stability: Proper financial management and controls can lead to better financial health and sustainability.
• Reduced PLI premiums: Whilst insurers don’t publicly disclose public liability insurance discounts for Lexcel accreditations, it is believed that insurers do factor certain accreditations into their underwriting risk assessments which can have an impact on premium calculations.
• Compliance: Lexcel helps firms to comply with legal regulations and ethical guidelines, reducing the risk of disciplinary actions.
• Continuous Improvement: The framework promotes a culture of continuous improvement, ensuring firms adapt to changing industry standards and client needs.
• Recognition: Lexcel accreditation is a recognised mark of excellence within the legal industry, enhancing a firm's reputation.
• And finally, increased profitability: All of the above ultimately lead to an organisation which is more robust, efficient and streamlined, with increased new business opportunities and reduced costs.

Who can apply for Lexcel accreditation?

Eligibility is open to all SRA authorised practices and departments regardless of their size. This includes sole practitioners and local authority legal departments. There are two versions of Lexcel;

• Lexcel 6.1 is available to law firms operating within England and Wales. Lexcel 6.1 is also further divided into two sub-versions:
  • Legal practices – partnerships, limited liability partnerships, sole practitioners, incorporated law firms and alternative business structures (ABSs) regulated by the Solicitors Regulation Authority
  • In-house legal departments – including those in corporations, the public sector (including ABSs), law centres, not-for-profits and government organisations
• Lexcel International v5.1 is for practices located in foreign jurisdictions or for branch offices overseas.

Further information on the application process can be found on the Law Society website.

How much does Lexcel accreditation cost?

Firms must apply for their annual assessment, which incurs a registration/application fee from the Law Society;

• For Lexcel England and Wales v6.1, the cost is calculated based on the number of fee earners within the organisation
• For Lexcel International v5.1, if you’re a private practice, the cost is calculated based on the number of partners in your practice

As a guide, the annual fee for Lexcel 6.1 starts from just £78 (excluding VAT), and Lexcel v5.1 starts from just £62 (excluding VAT). The full tariff is available on the Law Society website.

The second annual cost is that paid to the relevant assessment body for the conduct of the assessment itself. The pricing is determined according to Law Society scoping guidelines which take into account the size and structure of the firm or department that is to be assessed. Many firms also seek external help with preparation for their first assessment, or with preparation for each subsequent annual assessment. Costs for this vary depending on how much assistance is required; at PDA Legal, where possible we endeavour to operate on a fixed price basis so that costs are transparent, progress can be tracked and your budgeting is straightforward.

How difficult is it to achieve Lexcel accreditation?

As described above, accreditation offers a number of compelling benefits. However, achieving Lexcel accreditation can be a challenging process and it is for this reason that many practices opt to utilise the skills, knowledge and experience of external consultants, such as PDA Legal.

The scale of the challenge will really depend on a number of factors such as:

• Firm size and complexity
• Quality of existing systems, policies and procedures
• Commitment to compliance from within the organisation
• Current training and developmental regimens
• The firm’s existing familiarity with standards compliance and external audits

That said, Lexcel accreditation for most firms doesn’t ask for anything that they shouldn’t already be doing to some extent for compliance with existing requirements by the SRA, LAA, GDPR, insurers or the Law Society. In many cases, the overarching task is to define and align these processes.

The most important thing to remember is that you don’t need to do this alone. The team at PDA Legal can guide and support you throughout the process, enabling you to get to an application-suitable position in a faster, more efficient, and less stressful way than flying solo.

What will an assessor be looking for?

Members of the PDA team having conducted 10% of the original Lexcel accreditations, delivered the mandatory training on Lexcel v6.1 to all of the UK Lexcel assessors and over 300 firms across the country, written and delivered educational material on Lexcel for the Law Society, and conducted thousands of Lexcel visits and assessments. We have an unsurpassed appreciation of what’s involved. As a rough guide, a Lexcel assessment will comprise the following core areas:

• Desktop review of the Office Manual and some Central Documents
• Review of open and closed matter files
• Interviews with fee earners and support staff
• Review of outstanding Central Documents and Audit Trailing

Feedback will then be provided to the appropriate person(s) as determined by the firm.

Where any non-compliances are identified, satisfactory completion of any corrective action must take place within 21 days (for minor non-compliances) and 90 days (for major non-compliances). It is important to recognise that by and large the difference between a 'minor' or 'major' non-compliance is simply defined by the amount of time it will take for the firm to generate the agreed corrective action.

Should you use Lexcel templates or checklists for your application?

Generally speaking, we do not recommend using templates. That is because every firm is unique, as are their staff, processes, ways of working, etc. One of the advantages of Lexcel is that it is flexible so there are different ways in which you can achieve compliance. In a nutshell, raw templates cannot possibly take into account all of the many variables, and so they instil a false sense of security whilst leaving potential issues undiscovered.

Another significant drawback in using “one-size-fits-all” templates is that you miss out on the additional value-adding benefits of working with experts in the field. We have worked with Lexcel for over 25 years, supported more than 500 law firms, and trained all of the UK’s assessors on V6.1. We know therefore, with 100% certainty, that a static document falls a long way short versus calling upon the wealth of knowledge and experience which we have garnered over the years.

Checklists can be a useful way to evaluate your current position. The Law Society has provided two self-assessment checklists:

• Lexcel self-assessment checklist for legal practices
• Lexcel self-assessment checklist for in-house legal departments

How long does Lexcel accreditation last for?

Lexcel accreditation lasts for three years. During each three year cycle, your firm will be subject to:

• annual maintenance visits at the end of year one (AMV1) and year two (AMV2), and
• a full re-assessment at the end of year three

If the Lexcel standard changes during that time, which does happen from time to time, then you will need to assimilate the new version of the standard before your next assessment.

How to apply

To apply for Lexcel accreditation, you will need to:

• Read the various guidance documents which are available on the Law Society website
• Complete the appropriate self-assessment form
• Choose an assessment body
• Complete the application form. This needs to be submitted to the Law Society at least six weeks before your assessment date.
• Pay the application fee (see above re. costs)
• Pay the assessment fee to the assessment body
• Complete the assessor’s assessment visit successfully
• The Law Society will then review the assessment results to determine as to whether or not your firm has successfully achieved accreditation status

We can help your law firm achieve and sustain your Lexcel accreditation

As mentioned above, Lexcel accreditation yields compelling benefits, but is often challenging to implement without experienced support. The good news is that you don’t need to do it alone.

Every legal practice that has chosen to be Lexcel accredited, that we have consulted with, has achieved or retained their Lexcel accreditation.

At PDA Legal we have over 25 years of experience in all aspects of Lexcel including training, auditing and consulting, and we trained all of the UK’s assessors and hundreds of law firms. We are uniquely placed to provide you with unrivalled support and assistance to help you successfully achieve Lexcel accredited status.

Contact us today for a free initial consultation