The changes of 2020 will impact the future of law, but will bring opportunity

While we have studied the legal industry’s evolution for years, 2020 brings some unprecedented changes. We predict the future of law will support more lawyers in independent practice.

Layoffs bring new opportunities

So many headlines bring depressing news lately, but the outlook does not have to be all doom and gloom for lawyers. Yes, many large firms have announced layoffs, paycuts and more in the wake of the pandemic. However, these belt-tightening measures could lead to some changes in the legal industry that allow for more innovation and a higher level of service delivery.

Some lawyers will begin to specialize in in-demand practice areas, while offering desirable flexibility and non-traditional billing and working models to clients. Others will reinvent themselves to meet other niches within the legal industry.

As Mark A. Cohen, Forbes contributor, notes:

“Qualified legal professionals will have many career options. The future lawyer might be a crisis manager, legal process designer, project manager, supply chain expert, data analyst, risk manager, coder, entrepreneur, or legal technologist, among other things. Many more will lawyers will fill positions that have yet to be created.”

He goes on to say that clients will opt for skilled individuals and teams rather than traditional law-firm models. Even before the pandemic, legal clients were beginning to demand more from legal counsel in terms of quality and value. Now, that demand will become more intense. Clients will need to know that their legal investment will result in favorable returns at a fair cost.

Preparing for the future

Small and large law firms alike can take measures to ensure success this year and beyond. All law firms should focus on creating lean operating models, which includes:

  • Reducing overhead costs, such as rent and equipment
  • Maximizing people resources by hiring strategically, collaborating with other attorneys, and outsourcing some business functions
  • Developing a strong network that supports word-of-mouth referrals, which reduces the need for paid marketing
  • Targeting the right client niches to maximize revenue
  • Investing in technology and tools that improve efficiency and client service
  • Cutting extraneous expenses, such as business association memberships that no longer serve your firm

The realities of 2020 mean that operating with a status quo mindset is just not an option. All firms must adjust. Take time to understand the true needs of the market. If your service offerings or processes don’t match those needs, find ways to tweak your business model.

The nimble independent

Independent lawyers and small law firms enjoy greater ability to flex and innovate as market needs change. During a downturn, that can mean targeting new practice areas that will see a boost in demand (think health care, privacy, technology and estate planning). It can also mean providing services to in-house counsel teams or larger firms stretched too thin to meet client demand.

Independent law firms also have an opportunity to collaborate with other independents on an as-needed basis. Without the complicated structure and hierarchy of a large firm, lawyers can come together and drift apart as appropriate for each case or client opportunity.

As legal clients face the pressure of downsizing, bankruptcy or suspending operations, independent lawyers can offer ad hoc services and alternative payment options to those in need.

On a personal level, operating autonomously allows you to more easily balance work and personal demands. Many independents have chosen that path to escape the pressure and long hours of a large firm, and those individuals now have more reason to celebrate their choice.

While we ideally won’t live in a socially distanced reality for the long-term, the ability to make time for both professional and personal commitments will have universal appeal for the foreseeable future. For lawyers who have been laid off, or who are struggling with the demands of work during a pandemic, starting an independent practice provides a viable and attractive alternative.

For law firms of all sizes, reducing overhead has become a major focus for 2020. To learn more about how our law firm real estate solutions can help, contact us today.