Global Legal Services Require Deep Local Roots

The last 18 months have changed how the world works, and the legal sector is no exception. We seem to have almost daily announcements from firms that are planning to adopt long-term flexible working policies, permanently reduce office capacity and introduce a blend of office and home-based working. As such, this hybrid model of working – mixing both virtual and in-office – is likely to become the norm in the post-pandemic world.

However, while virtual working in some form is here to stay, we are also seeing an emerging trend of law firms moving a few people into new markets without establishing a “real” base. These law firms “without real estate” could be a step too far, particularly when it comes to providing the best service to global clients, supporting local communities and nurturing and attracting the next generation of legal talent.

Clients need expert local knowledge they can trust

Interlaw has argued in the past that corporate “flag planting” – where major firms open an office in a jurisdiction and parachute in a few lawyers with the belief that they will win work by trading upon their reputation and track record – is no substitute for in-depth market knowledge that only established local firms can provide, particularly for global clients.

While we are working in different times, virtual working is not a completely new phenomenon. Pre-pandemic, we were already operating in a world where clients were increasingly requiring borderless, tech-savvy, enterprising and accessible legal services providers that could combine global reach with in-depth local expertise. Elite global networks had become agile, digitally enabled organisations capable of servicing the most complex, multi-jurisdictional client needs and providing a real alternative to the “traditional” international law firm model.

However, to not have an office base in an overseas jurisdiction at all would arguably go against what clients really want to see from their law firms. Pre-pandemic, Interlaw conducted global research among general counsel to find out what they wanted from an international legal provider, which revealed they were more focussed on the calibre of the service they received than the structure of their provider. With this focus on quality in mind, many general counsels also reported difficulties in finding a single law firm with the geographical reach in the practice areas they needed and reported issues around inconsistent working practices between the offices of international firms, as well as inconsistent local insight and cultural awareness.

These law firms “without real estate” could be a step too far.

This need for consistently high standards across all geographical markets is arguably impossible to deliver if the firm chooses not to put down firm roots in the jurisdictions in which it operates. Ours is a profession built on trust and relationships – clients want to know they can trust their legal provider to deliver the best service and advice, both in terms of legal knowledge and understanding the nuances of the local culture of that jurisdiction.

While we have all had to manage our client relationships virtually over the past eighteen months, clients still want the reassurance that their firm has an established base in the relevant jurisdiction. Having no office gives the impression that the presence in that region is transient, which can be withdrawn as quickly as it can appear. In a time of uncertainty, clients want as much certainty as possible – something only an established, expert firm in-country can provide.

Local firms provide much more than legal knowledge

One thing that always strikes me when I talk to our partner firms is just how involved they are in their local communities. They offer so much more than high-quality legal advice – they support local initiatives, nurture home-grown talent by encouraging people from all backgrounds to consider a career in law, and provide pro-bono advice to charities and other not-for-profit organisations. Our lawyers sit on the boards of organisations that want to drive greater diversity in the legal sector, are heavily involved in their local jurisdictions’ networking groups and are recognized for their corporate social responsibility work in supporting vulnerable groups in their society.

For example, following the devastating blast in Lebanon last year, our partner firm, Tohme Law Firm, provided pro bono legal support to NGOs and supported an initiative called “Together LiBeirut”, whose volunteer members are dedicated to helping with the reconstruction effort in the city, as well as providing medical and mental health support to those impacted by the blast.

In a time of uncertainty, clients want as much certainty as possible – something only an established, expert firm in-country can provide.

These are things that you do not get if you move a few non-local lawyers into a region without establishing those deep local connections.

The next generation of lawyers need to experience the office environment

It has been documented by many commentators that junior lawyers are likely to be the hardest hit by the pandemic. For these lawyers, it has resulted in a complete change to both how they work and how they are mentored and coached towards the next stages of their careers.

At the end of last year, Interlaw set out to gauge the impact the huge upheaval has had on the next generation of legal talent and their career ambitions. Interviewing over 100 lawyers at senior associate level and below as part of our next generation lawyers initiative, many acknowledged the positives that could come from a more hybrid way of working, including a better work / life balance and an improved use of technology in the legal industry to streamline some of the processes.

However, while working from home and increased access to digital platforms have several major benefits, the respondents acknowledged that this had also resulted in longer working hours due to a lack of clear definition around the working day. Importantly, they also miss face-to-face interaction with peers, mentors and clients – a crucial factor in the development of the next generation of legal talent.

The balance between more formal and informal mentoring is something that was also discussed at some of our recent virtual events. While formal mentoring and training are clearly important, many also talked about how they are missing the more informal side of learning about the profession, such as stopping by someone’s office for a catch-up or working closely alongside their mentor on a piece of work. As one of our participants said: “The best mentorship happens if it comes naturally.”

So, if law firms believe that they can operate without a base in a country, but via just a few individuals parachuted in, they run a real risk of missing out on the legal talent of the future. Similarly, the country concerned also runs a real risk of missing out on developing its own home-grown legal talent of the future.

Forward to better

While some virtual practices have undoubtedly improved how the legal sector operates, abandoning the office culture completely would be counterproductive, particularly when it comes to providing the best quality international legal advice to clients, supporting local communities and developing the next generation of lawyers. For clients, having an established base provides the reassurance that they are working with a high-quality firm with deep local knowledge, and for new talent, it provides the “on the job” learning and mentoring that is impossible to create online.

The most effective hybrid model for global legal services should be the best of both worlds. We should be taking the best of innovation from the past eighteen months and blending it with tried and tested ways of working to create something of value for our international clients, our local communities and the future of the profession.

Glenn M Cunningham, Chair

Interlaw

Email: gcunningham@goodwin.com

Glenn M Cunningham is Chair of elite global network Interlaw, which has over 7,500 lawyers based in over 150 cities around the world. Providing organisations across the globe with the highest quality cross-border legal advice, Interlaw and its partner firms offer a seamless, efficient, cost-effective level of service attune to local laws, rules, regulations and customs.

Glenn is also Chair of Shipman & Goodwin’s business litigation and intellectual property practice groups, representing publicly traded and privately held companies in intellectual property and technology cases. He is based in Hartford, Connecticut, USA.