Can small law firms get the biggest work?

One of the better legal blogs is What About Clients? written by Dan Hull, partner at Hull McGuire.

His blog has made observations on the prospects of small law firms obtaining the work that, say, Magic Circles or large US ones do.

“The point is this: 90% of the important corporate legal work being done right now by firms between 500 and 3000 lawyers can be done by boutiques and smaller firms. If it has the right people, your firm can land Fortune 500 companies and keep them.”

Inspiring stuff for the smaller provider; you can compete for the work.

Dan is also disparaging about the expansion of large law firms:

“Sure, some branch offices are better than others, but …. if you are in-house counsel working for a great company, and doing business everywhere, is there any reason to keep engaging your US or UK-based law firms that expanded in the past few years all over the globe like spastic hamburger franchises?

When those firms expanded internationally, they diluted their talent and "gene" pool, and their value to your company, and you know it.

Larger firms, to get larger, acquired lawyers and smaller law firms in the US and abroad they wouldn't have looked at twice 15 years ago.”

From my point of view, it is remarkable that, in these times, big businesses have not been so willing to go to the more niche and nimble law firm.

The key is providing effective client service.

 However, there are some compelling reasons why this will change:

1. Rising commercial competition. The law perhaps represents one of the last professions to open up to more completion.
2. Increased use of technology, meaning that it is far easier for more nimble firms to set up and service big corporate firms.
3. The recession bringing yet more corporate pressure and the need to deliver.
4. Increasing expansion of legal markets encourages use of different business models. The hourly rate is under increasing attack. Law firms should perhaps look to provide different services; by way of example, my firm offers employment law, mediation and training.

Ultimately, these are some of reasons why the pre-eminence of the larger law firm must be at risk.


Justin Patten

Justin is a commercial mediator accredited by the Academy of Experts and has been a fully qualified solicitor since 1997. Justin founded Human Law Mediation in December 2002, providing mediation solutions and training together with expertise in employment law. His firm’s website is at www.human-law.co.uk

Comments

[litigation solicitor stockport]

I think the size of the firm does not necessarily dictate the size of the cases they receive. Reputation can be earnt no matter what the size of the firm.

[solicitor macclesfield]

I don't think it is the size of the firm that is the real issue

[ghh]

Increasing expansion of legal markets encourages use of different business models. The hourly rate is under increasing attack. Law firms should perhaps look to provide different services; by way of example, my firm offers employment law, mediation and training.