The next top model: Law firm edition

As you probably know, I wrote a book a couple of years ago strongly suggesting that the traditional law firm, shot through with various defects, is a poor fit for the new legal market and won’t survive competition from newer and better models for legal services. Smarter people than me have since asked: Okay, supposing you’re right about that — and we’ll know soon enough if you are or aren’t —  then what exactly is going to replace your much-maligned traditional law firm?

It’s a good question, and luckily for me, I’m not the only one pondering it. Managing partners, industry consultants, conference organizers, and venture capitalists have been kicking this one around for a few years now. The consensus answer, up to this point, has essentially been “something that’s not a law firm,” and there are plenty of candidates for consideration.

We’ve seen the emergence, over the past several years, of legal process outsourcers, legal technology platforms, flex-time and project lawyer companies, and managed legal services providers, These and other entities have collectively been grouped  under banners like “NewLaw,” “alternative legal services providers,” and the latest term, “law companies.” Together, they already represent about a US$10 billion slice of the legal market.

Most of these businesses share several common features, including:

  • corporate structure and governance,
  • investments of external funding,
  • extensive use of process and technology,
  • reliance on people who aren’t lawyers,
  • focus on efficiency and cost control, and
  • ability to leverage knowledge and data.

Search iStock for “future office model” and this is what you get.

But you could more easily describe all these entities simply by saying that “they’re not law firms.” Because the characteristics of law firms are well-known: Lawyer-owned and -operated, expensive, elite, inefficient, lawyer-centric, risk-averse, kind of pretentious, and a little out of touch. Defining your new legal business by distancing yourself from these attributes is a pretty good way to get clients’ attention in a shifting market.

So it’s fashionable, and maybe even reasonable, to assume that traditional law firms will largely be replaced by their diametric opposites — the alternative legal business, the agile legal company, the AI-powered legal machine. I’m confident these businesses will secure a significant space for themselves in the new legal market, and I suppose it’s even possible that ALSPs and law companies will turn out to be the dominant species of legal services supplier in future.

But here’s another possibility. Maybe traditional law firms will be replaced not by law companies, but by law firms — radically different law firms, to be specific. Law firms that, while still lawyer-owned and -operated, are also:

  • efficient,
  • accessible,
  • progressive,
  • modernized,
  • collaborative, and
  • resolutely, enthusiastically client-first.

These won’t be old law firms with a fresh coat of innovation paint. They will be systematically distinct from old law firms, based on a whole new model, right down to their DNA.

I think there’s a place in the market for law firms like this — a really big place, in fact. And I want to find them. I want to identify, profile, and publicize law firms around the world that are — right now, today — throwing away the outdated attributes of their forebears while keeping the most important parts and adding new and better elements to their core function: allowing lawyers to truly meet clients’ most pressing and important legal needs.

In short, I want to conduct a search for the next law firm model. And I’d like you to help me.

Why should we do this? Three main reasons:

1. Tens of thousands of bright, hard-working lawyers worldwide, associates and partners alike, feel trapped inside traditional law firms, deep in debt and deeper in regret for having chosen what turned out to be a disheartening workplace. They can sense how dysfunctional their firms are, distant from their clients and often damaging to their employees, and they yearn for a better environment in which to exercise their skills and serve their clients. But they don’t know where else to go, or how they could go about building anything different and better.

2. Many more lawyers have walked out of those firms, or have been cut loose by them, or were never even hired in the first place — they’re exiles from the traditional platforms for practising law. But they can’t, or don’t want to, hang out solo shingles or get jobs with law companies — they want to work in law firms, just not at the cost of their personal and professional well-being. And they’re joined every year by thousands of law school graduates who have already heard about, or will soon learn, what’s in store for them. All these lawyers long for better, radically different law firms, too.

Doesn’t look that futuristic, to be honest.

3. Clients still need law firms. No disrespect to law companies, which generate a wide range of high-quality legal solutions for clients in a timely and affordable fashion. But I expect most of them would readily agree that they can’t and don’t want to provide every kind of legal service. In particular, they don’t offer legal advice, personal advocacy, strategic counsel, complex legal opinions, and other mid- or high-level legal services, and most of them have no ambitions in that direction. Clients, both individuals and organizations, need mid- and high-level legal services, and I think they’d welcome with open arms the arrival of radically different and better law firms that can deliver them.

And one other factor, on the personal side: If this effort to identify radically different law firms succeeds, and if these examples can be used to design templates for building more such law firms in future, then I’m thinking of making this the subject of my next book.

So my request of you today is: Help me find the next law firm model. I’d like you to nominate law firms that meet the criteria described below, regardless of size or jurisdiction. You can add your nominees in the comments, or send them to me via the email contact form at the bottom of the page. Feel free to immodestly nominate your own firm if it qualifies. If I can accumulate a critical mass of nominees, I’ll list a selection of them in a subsequent post, and I’ll follow up with some of them to arrange more in-depth interviews for a book.

Here are my criteria.

1. The law firm must be no more than 15 years old. (Founded in 2004 or later.)

2. The law firm must not be a law company or ALSP of the kind described in the third paragraph above.

3. The law firm must feature at least one (and preferably more) of the following attributes:

a) New Structure: The firm is not a lawyer partnership, it divides ownership from management from labour, and/or it has a strict corporate decision-making governance system to which lawyers have surrendered autonomy over the firm’s decisions and direction.

b) Greater Accessibility: The firm is physically located, marketed, and/or priced for maximum client convenience, affordability, and relevance. The firm knows where its clients are, and it goes out to meet them there with offerings they can understand and afford.

c) Fresh Markets: The firm is heavily focused on markets that either are brand-new, or have been traditionally under-served, or have been locked out of the legal services world for all practical purposes. The firm has identified and is unlocking latent legal markets.

d) Serious Technology: The firm offers extensive client-facing technology that provides legal answers or solves legal problems, and/or it has used technology to build super-efficient internal systems for creating legal products and services that improve profit margins.

e) Outsourcing: The firm repeatedly partners with law companies or ALSPs (e.g., LPOs, flex agencies, managed legal services providers) to complement its more advanced offerings. The firm identifies what law companies can do more effectively than it can, and collaborates accordingly.

f) Better Pricing: The firm prices most or all its work on a subscription, fixed-fee, risk-sharing, and/or incentives-driven basis. Hourly billing of lawyer work does not necessarily disqualify a firm, but its overall pricing must be intensely client-focused and outcome- or value-based.

“Simple and stylish manager office.” Futurism meter reads: 0.

g) Smarter Compensation: The firm generously rewards lawyers for a wide range of activities and outcomes (including client satisfaction, contribution to productivity, mentoring of juniors, leadership and management) other than hours billed and clients landed.

h) Leveraged Knowledge: The firm makes extensive use of legal knowledge resources and business/competitive/client intelligence to create new services, serve clients better, improve internal productivity, and/or sharpen external competitiveness.

i) Diversified Sales: The firm applies resources other than lawyers to generate new business opportunities from new and/or existing clients, including sales professionals and industry data. Rainmakers and partners are not the sole or critical engine of the firm’s new business generation efforts.

j) Multiple Disciplines: The firm employs (or if permitted, extends equity to) “non-lawyer” professionals and technicians who play significant client-facing and/or revenue-generating and/or system re-engineering roles. And it doesn’t call them “non-lawyers.”

I want to be clear that this is not a “legal innovation contest.” I’m not interested in receiving a raft of submissions from firms that have added one or two innovative tweaks to a standard law firm partnership. I’m looking for law firms that are truly, radically different from the traditional law firm model, such that the criteria above exemplify that essential difference, rather than constitute mere bolted-on accessories to the old familiar model. And I’m looking for firms that have done this recently enough that they can serve as an inspiration and a template for today’s and tomorrow’s lawyers to follow their lead.

Also note my use of strong modifiers in the criteria: “intensely,” “repeatedly,” “extensive,” “maximum,” and so forth. Again, this is to separate traditional firms that are (admirably) trying some different things from the radically different law firms I’m seeking — those for which these attributes and activities are the everyday rule, rather than the exception.

We need new and better law firms to replace the old and struggling ones now littering the legal landscape. We need to give young lawyers and law students examples and templates to help them build their own sustainable, profitable, fulfilling, client-focused, radically new firms. We need to give the client world better mousetraps to whose doors they can beat a path. In short, we need to find and promote examples of the next great law firm model. Your help would be invaluable.



9 Comments

  1. Adam Pekarsky

    Jordan
    Another great piece. Thanks for writing it. Sadly, I’ve been recruiting lawyers for nearly 20 years and have worked with 20 of the 30 largest firms in Canada in nearly every province and I can’t think of a single one that fits the bill for Next Top Model. If it exists, they’ll own the market. I taught a course at U of C law school last fall and I assure you that ‘your father’s Oldsmobile’ is not what they’re looking for.
    Adam

  2. MICHAEL O'HORO

    This is a bold and worthwhile undertaking, my friend. I wish you luck, and also hope that you have a high threshold for disappointment.

  3. Jordan Furlong

    I’m happy to report some promising early returns by email and Linked. Here are a few of the firms I’ve been alerted to — some I already knew, while others are new to me. Keep them coming!

    – Marashlian & Donahue, USA (https://commlawgroup.com/)

    – Counter Tax Lawyers, Canada (https://www.countertax.ca/)

    – Hive Legal, Australia (https://hivelegal.com.au)

    – SynchLaw, Sweden (http://www.synchlaw.se)

    – My Home Move, UK (https://www.myhomemove.com)

    – Lex Futura, Switzerland (https://www.lexfutura.ch/)

    – Venture Legal, USA (https://venturelegalkc.com/)

    – Miller Titerle, Canada (http://www.millertiterle.com/why-we-do-it/)

  4. Jeff Carr

    Elevate Next. It is NOT an ALSP — it is a law firm founded by Patrick Lamb and Nicole Auerbach — the founders of NextLaw US lawfim, Valorem — one of the true pioneers in the #LawLand wasteland of delivered value. It is affiliated with Elevate and in combination, customers can engage them for a full range of legal services consistent with US regulatory restrictions on the “practice of law”

  5. Mike O'Horo

    Gee, the pattern is so subtle: Not in the US.


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