- Legal consultancy offers the opportunity for lawyers to work independently and manage their own caseload, while reducing the cost and time burden of being self-employed.
- Research suggests that a third of the profession could be working as consultants by 2026.
- Adapting to a legal consultancy model may pose some challenges for traditional law firms, such as the need to invest in the necessary technology and infrastructure.
The past three years have shifted working structures in almost every industry, and the legal sector is no different. As with many employees across sectors, lawyers are increasingly seeking a better work/life balance and more flexibility within their roles.
As a result, we have seen the growth of the legal consultant model within the UK market. The legal consultancy model offers lawyers a central service platform, brand and management infrastructure to allow them to operate. In a good practice, consultants will also be able to add value through learning and development, compliance and complaints support, and HR support. The lawyers themselves are self-employed consultants, who retain an average of 70% of their earnings, with the remainder taken by the consultancy firm.
This model offers a way for solicitors to work independently and manage their own caseload, while removing a significant element of the cost and time burden of being self-employed, such as procuring professional indemnity insurance. Consultants are also able to scale their operation within a lean environment, recruiting their own consultants and employees. It has therefore become an attractive and viable alternative way of working for experienced lawyers that offers increased earnings and a better work/life balance.
This movement is disrupting the legal market. The growth outlook for the consultancy model is particularly strong in the UK, where the legal sector remains fragmented, creating an all-to-play-for market for law firms. As a result, it is anticipated that firms offering consultancy operations will be well-positioned as the sector consolidates. Research from Codex Edge and ATLAS has found that alternative law firms (ALFs) are growing at a faster pace than their traditional counterparts. Arden Partners PLC has also estimated that around 50,000 solicitors—a third of the profession—could be working as consultants by 2026.
Broadening horizons
For Taylor Rose MW, it has been a key driver of our continued expansion. We currently have circa 700 fee-earning consultants in the firm—a figure that is growing considerably year on year. Our integrated growth strategy, where the development of our traditional practice through mergers and acquisitions continues alongside the growth of the consultancy division, is paying dividends as it enables our consultants to benefit from referrals and increased marketing and business development capability, enabling us to win bigger contracts and attract and retain talent more effectively.
However, the fragmented nature of the legal services sector is not just a UK phenomenon. Other markets, such as Australia, have clear similarities. Australia has 55,000 lawyers and 18,000 law firms—totalling an average of only three lawyers per firm. This distribution highlights the opportunity for these new and progressive ways of working for law firms within the country.
However, despite this opportunity, only a few firms have recognised the opportunity to grow the consultancy offering at speed and scale. For this reason, Taylor Rose MW has embarked upon a partnership with GTC, one of the few Australian firms with an established presence in consultancy in Australia, which sees the Taylor Rose brand expand internationally for the first time. The partnership will allow us to offer GTC our centralised platform, market expertise and support for our consultancy model, while GTC brings its local market knowledge to the table.
Challenges to overcome
Recognising the value of the consultancy model, and fast-tracked by the pandemic, more firms are attracted by it. Not all will succeed, and challenges exist for those attempting to deploy it. Firstly, infrastructure to support such a model requires significant investment. This is something that cannot be overlooked, both by legacy and challenger law firms alike. The consultancy model requires a strong, centralised service platform providing consultants with remote access, as well as sophisticated IT support and systems. Ensuring firms have the technology to support this infrastructure is vital and continues to be one of the key challenges for legacy firms operating on outdated systems. Investment must be made in these areas to ensure that any challenges that arise operationally are overcome.
Scalable structures and processes are also key and must be established from the outset to allow the firm to scale quickly and manage the change effectively. We like to draw inspiration from beyond the boundaries of the legal sector, such as from platform businesses like Uber or Amazon. Our ambition is to use our scale to connect legal work from major brands with individual consultants who wouldn’t be able to win the work independently. Developing the slick, scalable, technology-driven platforms and processes is to manage this model is therefore vital to the creating the best possible experience for both clients and consultants.
As the legal sector across the globe increasingly recognises the value of the consultancy model, we can expect to see consolidation across markets worldwide. This new way of working is setting new boundaries for the legal sector. While there is space for both traditional and consultancy operations, firms must continue to ensure they are receptive to the innovation of the sector which is coming down the line. Those investing in technology and reliable infrastructure that improves both client and lawyer experiences will be best-placed to thrive in the new world of legal services.
Adrian Jaggard, CEO at AIIC Group (www.aiic-group.com) & Taylor Rose MW (www.taylor-rose.co.uk).
