Over the past year, law firms have had to rethink abruptly in the face of the global crisis generated by the pandemic and have implemented or accelerated decisions they had planned for the medium or long term, such as opening up to teleworking or providing legal services through technological tools that many viewed with some scepticism. The legal sector has suffered major changes to its nature, which has forced law firms to adapt these rapid decisions.
The force of circumstances and the open-mindedness of law firms made them realise that the changes were closer than they had imagined and that many of them did not imply at all that legal practice would lose its usual quality.
However, behind the scenes, firms had to rethink strategies at great speed, strengthen their ability to communicate assertively with their clients and their own teams as never before, invest heavily in technology and training, and reconsider the ambition of their turnover targets, given the economic and political instability that has affected their clients.
It should not be forgotten that the country’s productive sector was paralysed and that its gradual reactivation was accompanied by an avalanche of regulations that sometimes disrupted business practices and, in the worst cases, definitively sentenced, for public health reasons, the closure of thousands of commercial establishments. Many transactions and processes were also affected by court closures, while, in parallel, the number of applications for insolvency proceedings increased.
So, what should law firms keep or change from last year in 2021? What is in store for them in a year in which no one can let their guard down?
5 keys for the legal sector in 2021
- Emerging technologies: Firms quickly turned to the use of technology to continue providing their services online and this process of technological incorporation must continue to deepen. Although many firms found the biggest obstacle in the change of mentality (cultural), it is also true that the new tools imply a long learning and training process so that investments in support and training make a clear difference in the quality of service and responsiveness to clients. What is interesting is that all the possibilities of e-learning and legaltech, including developments in artificial intelligence (AI), are no longer a distant goal but a priority. Today’s clients are indifferent to whether their lawyer works from home or from a luxurious office. What is more important is how you apply the use of technology to your industry expertise, what solutions you offer them in terms of confidence and speed to their needs, and what advantages you gain over your competitors to secure your position in a market that is as competitive as it is unpredictable.
- Tactical rethinking of the brand: In the previous section we gave great prominence to technology. In this one, the way we do things, that is, the human aspect of the service provided by lawyers and the structures of the firms that accompany them in that work. On the former, it is worth recalling the words of Electra Japonas, CEO of The Law Boutique: “I think the biggest change we will see within the legal sector in 2021 is a shift towards a more human way of delivering legal services, more firms implementing design thinking and legal design principles in their legal documents and ways of working and, in general, a more direct and simpler approach to the law. I think we are moving towards a world where the law is much more integrated as part of a commercial brand; the law doesn’t have to be boring and people are becoming more and more aware of that”. As for the latter, Alternative Legal Service Provider (ALSP) structures are likely to continue to take hold in the interest of greater fee flexibility, decentralisation of services to intermediate cities and municipalities; much more calculated risk and cost management in the operation of firms; and proximity and quality to ensure client loyalty. As we have seen in the past two years, even the rigid and vertical structures of the big law firms have seen ALSPs as the ace up their sleeve when it comes to this “new way” of providing legal services to increasingly demanding clients.
- The three channels of communication: Law firm communication will continue to be important in three ways: one, towards clients, so that they are aware of the firm’s news, receive newsletters or current legal content relevant to their industries or sectors, and perceive dynamism and ongoing activity as a differentiating element. The second way deals with communication towards the market as a reputational strategy that contributes to the positioning of the firm as a brand. It is not a matter of communicating everything or of saturating, but of building a communication that, supported by different platforms (including social networks, webinars, etc.) and channels, contributes to this objective of recognition. Finally, it is very important to incorporate internal communication as a central part of the firm’s entire communication strategy. Digital communication will become increasingly important.
- Client acquisition: Growing in an environment of political and economic uncertainty will be difficult for all industries, including law firms. However, law firms will continue to be their clients’ best allies and will contribute to the development of new business, risk prevention and timely resolution of business contingencies. In the face of an increasingly narrow market, law firms will continue to rely on digital marketing and especially business development tools to identify and contact potential clients (including in-house counsel and general counsel), such as LinkedIn Sales Navigator, which leverages data from this recognised professional network to reach relevant clients in different legal practice areas. Segmenting the market by industry or sector is a winning strategy.
- Human talent and work environment: In the new reality, clients will value firms that are empathetic to diversity, inclusion and equality much more highly. In fact, there are companies that prefer to hire only firms committed to these principles and discard those that are not. The same applies to firms aligned with corporate social responsibility. On the other hand, human talent areas will continue to play a very important role in the construction of a friendly working environment and in the implementation of a sufficiently attractive career plan within firms and the legal sector. Beyond non-presence, they depend on their cohesion as a team and on maintaining a close link with the values and principles that inspire them. If one thing is clear, it is that in 2021 human talent will be much more sought after.
In conclusion, 2021 will be a year in which firms will continue to focus on innovation, technology and remote services in a changing regulatory and economic environment. While 2020 left great lessons, accelerated change and sowed great challenges, it is no exaggeration to say that this is one of the most challenging and interesting times the legal sector has ever seen. The future is now.
Gericó Associates is pioneer on Legal Marketing Consultancy services, LegalCom and Business Development in Europe and Latin America. If your firm needs councelling looking for new trends and challenges within the legal sector, do not hesitate to contact us by clicking here.