Brave New World
^ TOPThe Legal Services Bill
"The law and lawyers will at some stage touch the lives of just about every member of our society." Thus, accurately, said the Lord Chancellor on the second reading of the Legal Services Bill. Likewise the new bill will considerably affect, for better or for worse, for richer or for poorer, the working lives and prospects of all providers of legal services.
As 2007 commences, and assuming that the Legal Services Bill is passed this year and is implemented, it is perhaps worth thinking about how the legal landscape might look a year from now as we enter 2008.
^ TOPRadical Shift
Any radical shift in the structure of the legal market and in particular regarding the potential structures through which legal services can be offered is bound to involve huge changes. Big winners and big losers. The difficulty is knowing precisely how those changes will impact in practice, and how best to position yourself to be amongst the winners rather than the losers.
^ TOPBig Winners and Big Losers
The biggest firms may be looking towards a stock market float. How to time that so as to get the maximum benefit will be the tricky question. Both the partners and the firms that get it wrong, will be considerably worse off than those who get the timing right. Similarly medium-sized firms may be looking to use raising capital as a means of breaking into the big-time. Some will succeed, others fail spectacularly.
The same considerations apply as regards whether and to what extent arrangements should be made with other professionals. Will the benefit of referrals outweigh the risk of conflicts?
^ TOPTwin Squeeze
In any event we can expect relentless pressure upon small out-of-town firms. Only the savviest will survive the twin squeeze of loss of public funding work/receipts and the competition from bigger firms looking to maximise their opportunities.
The same dilemmas will affect the Bar. Individual barristers may have to decide whether to stay with Chambers or go with firms. Chambers themselves will have to decide whether the huge entity, or the smaller specialist niche are best likely to prosper in the changed circumstances. Some Chambers will undoubtedly be unable to survive the next few years.
^ TOPGone Forever
Even though the changes may not all occur at once, their being in prospect will have an immediate impact. By this time next year we are all likely to be thinking that the old way of doing business has gone for ever.