Law Firm Economic Model Is Under Pressure

The legal industry is transitioning from guild to marketplace, writes Mark Cohen, in Forbes. This change will accelerate when lawyers no longer control both sides of legal service engagements, but not until then, because law firm and in-house attorneys are all lawyers, and indoctrinated with some key legal myths: all ‘legal’ work (as defined by lawyers) must be performed exclusively by lawyers; every case is sui generis and must be approached as such; and lawyers are uniquely qualified to procure and deliver legal services. However, technology, the financial crisis, and globalization have produced a new buy-sell dynamic for all goods and services, including law. Legal services can be delivered by lawyers, other professionals, and/or technology. Because law is not solely about lawyers anymore, enormous pressure is being exerted on the traditional law firm structure and economic model.