Fact: the legal profession is operating in a mature market undergoing significant change.
Fact: many lawyers think the change doesn’t apply to them (after all, while their colleagues and peers might not, they have great client relationships and provide unique services) or that clients don’t understand what is involved and are just seeking to pay less for something worth far more.
I wish these lawyers could see what I regularly see and hear what I regularly hear. Clients, under ever increasing pressure to provide integrated, practical legal input while reducing costs, express frustration due to the lack of data, innovation and partnership offered by their lawyers. The result is that many relationships either limp along on life support or are suddenly terminated after years of a lawyer being the go-to provider.
I know from working with consumers of legal services that while they are indeed often seeking to pay less in the aggregate for legal services, they are also often willing to maintain or even increase spend on certain must-have elements of services and are quite pleased to see changes in the nature and type of services received (from scope to product to process). As a result, change doesn’t need to be a zero sum game for providers.
Those clients who truly do want the exact same product for less are sending a clear message that they no longer see the work as unique or worth what they are asked to spend. In that situation, lawyers have two choices; they can:
- stick to what they know, continue as they always have, and eventually operate at a loss or lose the client’s business, or
- figure out how to help their clients address the same issue (not necessarily with the same product) for less.
I also know from working with firms that many are frustrated by the lack of attention, input and appreciation they receive from their clients. Examples abound of firms receiving detailed RFP requests with no ability to ask questions or receive context regarding the underlying business objectives. In many instances, firms work hard to suggest complex alternative fee arrangement options, only to have clients select something from off the menu – a fixed reduction in hourly rates. More often than not these situations arise when clients don’t have the data or time required to provide the necessary context or assess whether the suggested alternative fee arrangements are reasonable.
While clients do bear some responsibility for addressing the current state of affairs, at the end of the day the lawyers are the service providers and the onus is on them to come up with viable solutions. Even with cooperative clients, no silver bullet will completely address a rapidly, ever-evolving operating reality. Given the complexity of forces and interests at play, I have yet to see a firm-client relationship that is above improvement or lends itself to a quick fix. You would think these attributes would make finding a solution right up most lawyers’ alleys. After all, what lawyer doesn’t love a nice juicy problem to solve? Puzzling then that many avoid this problem like the plague. While many reasons for this aversion exist, two particular qualities hinder many lawyers’ ability to successfully take the action needed to thrive in the long term.
The first is the pursuit of perfection. Not only does a quest for the perfect legal answer fly in the face of what most clients seek, but it can also kill relationships. I have seen lawyers steadfastly cling to their historical approach of producing their ideal legal product only to lose their book of business to lawyers willing to innovate and take new approaches to clients’ needs. The journey to innovative approaches is rife with missteps, dead ends, mistakes and imperfections. Recognizing that no one right answer is out there in this time of change, and that trial and error are part of the iterative development and change process, is required for lawyers to adapt and adopt an approach that works for everyone.
The second is the perception that lawyers need not be hasty in figuring out how to proceed – after all, plenty of time remains before they will (if ever) face a burning bridge. So, many observe from afar the myriad of existing technologies that can help lawyers adapt to the new market. They consider and often reject Legal Project Management (LPM) principles, processes, tools and techniques that support identifying and making the change necessary to adapt to the new market realities. They are apparently waiting for technology that is simple, intuitive, inexpensive and helpful enough to make adoption a no-brainer. They are waiting for a simple template that can be presented in a one hour LPM workshop, adopted the instant they leave the session, and allow them to address all their clients’ needs without changing their approach to practice. They wait until everyone else has accepted and adopted a new approach. As they wait, they fail to realize that they are the frog in the pot of boiling water. Sadly, it may well only be at full-boil when those lawyers realize the water is too hot because the bridge is burning.
Some level of data gathering, analysis, strategic thinking, decision making, hard work, risk-taking and failures are inevitable for lawyers to make the adjustments necessary to successfully continue to delight their clients, while living a life that doesn’t involve routinely toiling behind their desks until the wee hours of the morning for a sliver of an ever shrinking pie. My money is on the lawyers, firms and organizations that are taking the temperature of the water and figuring out how to use technologies, LPM principles, tools and techniques to help them insulate themselves and – ultimately – jump out of the pot.