Introduction
The COVID pandemic brought uncertainty and upheaval worldwide, impacting the legal sector as well. In law firms, it served as an accelerant to change, providing immense opportunities. Realizing the new, permanent altered reality, firms are grasping the necessity and considerable opportunity at hand, advancing initiatives that had previously been rejected, shelved, or edging along. Instead of continuing as they always have, firms can seize the moment to focus on becoming law firms of the future. We propose a framework for the Law Firm of the Future, setting out seven critical pillars on which it must be built and the foundations that support those pillars.
An opportunity not to repeat the past
During the 2008-09 Great Recession, the legal industry experienced some adjustments but largely focused on riding out the stormy weather. Ultimately, there were very few major changes in how legal organizations operated. This was due, in part, by the nature of law firms, in which change comes slowly. Law firms have costly structures and operations, their business models are cash-based, and change comes hard because of firms' inherent characteristics, such as the partnership structure, adherence to tradition, and tendency to follow established norms.
Law firms historically placed low priority on innovation, lagging behind other industries in client centricity, digital transformation, and service delivery improvements. However, recent times have seen a new wave of firm leadership embracing broader experience and innovative thinking, leading to the creation of innovation leader roles and the adoption of new technologies and delivery models.
The accelerated need for change in the legal sector, prompting firms to adapt their practices for remote work and reconsider their workplace strategies, has opened firms up to an immense opportunity to capitalize on that accelerating change.
Pressure is coming from all corners of the market – clients, new competition, and other innovative law firms—and opportunities abound.
The law firm of the future
Our Law Firm of the Future initiative aims to explore the challenges and opportunities that law firms will encounter, providing a framework to examine the big issues they will face, how they will be structured and must operate, and the initiatives they must undertake to be successful.
The Law Firm of the Future is built on seven essential pillars that are critical to positioning the firm in the marketplace and with its people, for sustained growth and success. Those pillars include:
- Growth
- Talent
- Client centricity
- Service delivery transformation
- Cost structure
- Digital transformation
- The workplace of the future
These pillars are supported by the foundations that enable the success of everything the firm does:
- Leadership
- Collaboration
- Innovation
- Value creation
- Risk management
- Culture and change
Realizing the new, permanently altered reality of remote work, firms are grasping both the necessity and the considerable opportunity at hand.
Embracing the opportunities presented by change - to client relationships, the work your firm does with them, the talent model, culture, and cost structure - can lead to immense benefits. Failing to act may result in significant negative impacts from the economy, clients, and competition advancing ahead of your firm.
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- Business operations
- Operational performance
- Organizational design
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