Here’s How the Anti-Establishment Movement is Impacting the Law Firms You Rely On

“Big isn’t necessarily beautiful – in fact things can get quite ugly.” Michael Siebold is chair of elite global legal network Interlaw, and here Lawyer Monthly benefits from his expert opinion on the impact of social and political anti-establishment shifts on the structure and effectiveness of the legal sector.

2016 was undoubtedly a year of political and business shocks. From the unexpected Brexit vote in the UK, to the surprise result of the US election, the anti-establishment challenge to the so-called political ‘elite’ will have ramifications across the world, including in upcoming European elections.

No matter what your political allegiance, challenging the status quo appears to tap into the current zeitgeist, and the corporate world hasn’t been immune to this movement either, with established norms being challenged by developments in technology, as well as shifting social attitudes and expectations. Change is the new normal, and businesses who view disruption as a negative are unlikely to be at the forefront of innovation. This year is already shaping up to be a period of uncertainty for businesses in all parts of the world, as the full impact of the shifting political sands start to hit.

I have worked in the legal sector for almost three decades and, during this time, have witnessed wholesale change in the way lawyers operate and interact with clients. However, throughout this period, the established international law firm model has continued to dominate the sector – until now.

Large law firms seem to be suffering from growing pains. Increasingly, we are seeing established law firm brands review their international footprint, with high profile office closures hitting the headlines. Similarly, there have been a number of failed merger attempts and a preference for less committed ‘combination’ arrangements which allow multiple firms to create the façade of a single brand, when the reality is quite different. The demise of KWM Europe is perhaps the most compelling case for calling time on the big corporate law firm model. It shows that big isn’t necessarily beautiful – in fact things can get quite ugly.

Too often in large global law firms, collaboration between countries is difficult and often forced because there isn’t the investment in the necessary infrastructure to make it work. For clients, this can impact on the consistency of service, which negates the biggest perceived benefit of buying into a single legal services provider.

General counsel are looking for genuine local expertise in every jurisdiction in which they operate, and are starting to see through the ’emperor’s new clothes’ approach from global law firms who take little more than a logo to some parts of the world. It is becoming increasingly apparent that the international law firm model isn’t agile enough to respond to the fluctuating needs of the new breed of multi-national client.

While many of the largest law firms have spent the past decade jostling for position in a flag-planting exercise of expansion, the elite legal networks have evolved into a viable alternative for multi-national clients – offering the consistency in service and expertise that clients are seeking in each of their geographical markets.

As the chairman of the one of the leading networks, I’ve had a ring-side seat to watch this transformation, and would be the first to admit that the network model needed to shed its club-like status and grasp the opportunity to respond to the changing needs of global clients. Today, Interlaw has successfully grown to an elite global legal practice with more than 7,000 lawyers in over 140 cities, thanks to the commitment and investment of our member firms, combined with the strength of our selection process. In the past year alone, we increased our presence in China, and in Central America with the addition of BLP – with offices in Costa Rica, El Salvador, Honduras and Nicaragua – and also expanded to new territories through Rokas law firm in Greece and Tohme law firm in Lebanon, with further expansion set to come in the year ahead.

Once a new member comes on board, we are ready to hit the ground running. Unlike the multiple post-merger issues global firms face or the ‘bedding in’ period of organic growth, networks can respond more rapidly and confidently to client demand in new and emerging markets. We are infrastructure-light, but efficient and focus our investment on training and technology to create the best possible client experience.

The way the corporate world operates is evolving at an unprecedented rate, and professional services providers have to keep pace and be willing to work in a different way. This is particularly true for the legal sector, which has held on to established norms for too long at the expense of client need. In a more uncertain world, clients have become braver and are increasingly willing to try something new. The very best of the networks are already reaping the rewards and will continue to do so as they successfully challenge the ‘old school’, big firm approach.