- While more modern ‘dispersed’ law firms have many advantages over the traditional model, they can lack the sense of ownership. This can leave lawyers feeling isolated or frustrated.
The UK’s legal profession, with its centuries-old heritage of partnership, is a model that has been replicated across the globe, for good reason. The ownership element of the traditional partnership model has made our legal profession a global success. It underpins the symbiotic nature of the relationship between partner and firm, countering the old adage that a law firm is merely a group of sole practitioners working under the same roof.
Twenty years ago, it would be almost unthinkable that this hierarchical model would face an existential threat. However, it appears that is exactly what is happening. Also referred to as ‘new model law firms’, consultant law practices have boomed in the last decade. While the traditional law firm is still the predominant model in the UK, as recently reported in City AM, the consultant model ‘will become the dominant model among high street and mid-market law firms in the next five years’.
From a growing dissatisfaction with work-life balance, to the realisation that there is a ceiling to financial reward and recognition in many firms, lawyers are leaving old law for new models, in their hundreds.
With one in five lawyers reporting they’ve experienced less stress working remotely during lockdown, this exodus will only accelerate. Some 85% of lawyers say they want to change how they work post-pandemic, according to a Thomson Reuters survey in April, ‘The State of the UK Legal Market 2021’ (see: bit.ly/2YuWfuw). As reported in City AM it is now estimated that a third of all UK lawyers could be working under the legal consultant banner in five years’ time.
With consultant law firms flourishing, it appears that the UK is now leading the way again in legal innovation. But, does that mean that we should give up on the roots of legal partnership entirely?
While modern dispersed law firms have many advantages over the traditional model, including greater freedom and autonomy, they can often lack a sense of ownership. Alongside greater flexibility, lawyers working as consultants can enjoy large fee splits, however there’s an overall lack of interest in the firm itself.
The lack of formal partnership and shared goals can leave lawyers feeling isolated or frustrated. The risk for lawyers leaving traditional firms is that they join a model that lacks any sense of collective, long-term reward. For experienced lawyers who, in traditional firms, are on their way to partnership (or may already be there), this can be a deal breaker.
For decades the measure of success for lawyers has been partnership. Alongside the financial rewards, it provides lawyers with increased ownership and true cohesion. However, the reality of traditional partnership can leave some wondering if the blood, sweat and tears it took to make it to the top were worth it. From never-ending partnership meetings to gruelling hours, partnership can quickly see passionate and talented lawyers taken away from what they love—law—to something else entirely.
Today’s lawyers have a much more holistic view of success. Yes, they want financial reward, but they also want the freedom to determine their own ways of working. They want to deliver great services to their clients without fielding partnership administration and politics. Now, the ability to take control of your career, find balance and still reap financial reward is seen by many as the ultimate goal.
New ways of working, such as the consultant model are giving lawyers full autonomy over their work, with the potential to earn significantly more than at a traditional law firm. However, that’s not to say that the partnership model has no place in modern law firms. What has always made the traditional law firm successful is the sense of ownership partnership brings. New model law firms such as Valemus, of which I am founder and managing director, allow lawyers to define success on their terms, but unlike other new law firms, we recognise the importance of being part of a team working towards a common goal.
Investing in your future
That’s why we made the decision to challenge the ‘traditional’ consultant model and introduce an Exit Plan for our partner-level consultants. This means that on joining, each Valemus partner receives exit shares to ensure that lawyers find reward beyond being just a billing consultant. It addresses the need to feel part of something bigger, having an interest in a firm and its future.
At Valemus we refer to all our lawyers as partners, as that’s what they are; experienced, talented lawyers who, together, are passionate about being part of the firm’s future—with the rewards that come with contributing towards this future. We are working to offer the rewards of the partnership model—investment in the future without partnership’s archaic binds; politics, billing targets and inflexibility.
In contrast with other sectors, innovation in the legal sector has been arguably slow. That is changing but as this evolution accelerates we must not eschew what works in the name of ‘progress’. New law needn’t mean a lonely path of each for themselves—partnership in a common goal has a powerful place. As Howard Schulz, Starbucks tycoon aptly said, ‘Success is best when it’s shared.’
Oliver Brice is Founder and Managing Director at Valemus Law. Find out more at lifestyle-law.com.
