News Briefs
Online addicts
A survey of legal professionals suggests firms are starting to rapidly embrace social networking. Australian software solutions firm Stratatel Limited has found that a quarter of respondents to a law firm survey have already adopted social media for external communications, and many more are considering the move. The survey also reveals that respondents saw the biggest benefits of social networking to be around marketing, participation in projects and the sharing of ideas. On the flip side, firms are conscious of potential dangers, including reputational damage and privacy conflicts if the social media platforms are not used wisely. Wikis remain a popular collaboration tool, while Facebook, LinkedIn and YouTube appear to be the most popular social networking sites.
Positive vibe
It seems that private businesses in Australia remain an upbeat lot. The eighth edition of the PwC
Private Business Barometer reports that bosses are reporting stronger profits and ongoing optimism as Australia emerges from the global financial crisis. Key findings in the report include:
most businesses that met or exceeded set revenue targets attribute their success to sticking to their strategic direction and relying on at least two core strategies to fuel growth
15 per cent of businesses have changed or are planning to change their business banking relationship
to boost competitiveness, about half of all businesses are offering performance-based incentives, while 45 per cent are offering more competitive salaries
more than a quarter of businesses use online social networking for their business, with Facebook being the main platform
about 86 per cent of businesses expect wage costs to rise over the next 12 months, with the average increase tipped to be 7 per cent.
Happy times
Have you noticed that happy people seem to get ahead and be more successful than gloomy types? It comes as no surprise to Harvard University lecturer Shawn Achor. News network AAP reports that Achor, author of The Happiness Advantage, says being happy can improve people's productivity and performance. Even better, it is a skill we can all learn. How? Some of the keys include meditating (it can rewire the brain to raise levels of happiness and lower stress); finding something to look forward to (and put it on the calendar so you do not miss it); being kind (giving to friends or strangers cuts stress and aids mental health); making your surroundings positive (with happy snaps of the family on the desk, for example); and spending money (on experiences that create a long-lasting positive emotion, rather than just buying things).
British trends
This year's FT Innovative Lawyers report from Britain has some informative finding for firms Down Under. The survey indicates that many more law firms are embracing the concept of unbundling their services so that low-value work can be done either through the smart use of technology or in a low-cost jurisdiction. Legal process outsourcing is now firmly entrenched. At the same time, however, ‘insourcing' is a trend. This reflects the fact that in-house legal teams have become better at delivering their legal work - and jobs that were previously outsourced are often now being done more efficiently internally. The report also suggests time-based billing is now just one of several billing approaches. Clients report that what they really want are fee arrangements that are sustainable and repeatable. On other matters, the nature of legal work is changing and becoming more complex, especially with the rise of emerging markets such as China and India.
Tax wishlist
Tax reform and mergers and acquisitions activity are on the mind of Australian CFOs, according to the latest Deloitte CFO Quarterly Survey. It shows that nearly two-thirds of Australian CFOs expect a sustained and possibly erratic economic recovery over the next two years. The percentage of CFOs who expect a quick recovery has fallen, down to 16 per cent from 28 per cent last quarter. On a strong note, the percentage of CFOs who are more optimistic about their own company's financial prospects than they were three months ago has increased from 40 per cent to 55 per cent this quarter. The single biggest threat to their business is the sustainability and speed of the economic recovery, according to one in four CFOs. A further 8 per cent selected the impact of a slowdown in China's growth. A third of CFOs say the top economic priority for the Gillard Government should be providing business with certainty around a number of key tax issues such as the minerals resource rent tax and corporate taxation levels. Deloitte also reports that 94 per cent of CFOs expect M&A levels to increase across Australia, albeit from a fairly low base.
