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The Next Ten Years: How Much Change?

Eversheds, the international law firm, has recently released a survey predicting changes within the legal industry over the next ten years. I tend to disagree with the conclusions as stated in the news release. It strikes me the survey underestimates the impact of outside capital flowing into law firms as is happening now in Australia, is on the horizon in the UK and will by necessity follow in the US.

As the report observed, the legal sector globally is approximately £217bn, and strongly profitable. This is a very attractive market that will, once it is allowed, attract huge amounts of outside capital. That outside capital will require attractive returns which will drive innovation, efficiency and consolidation. What the profession considers commoditization, outside capital will view as scalability. As users of legal services, many money managers will have opinions as to the practice changes they intend to make to accompany their investments. Just as it has in technology, many of these changes will be driven by those under thirty. Venture capital will, for example, provide young associates a new career option beyond their current choice of practicing law, and that is founding companies to improve the process of law.

I recall a WSJ editorial in the early 1990s lamenting the decline of writing skills with the rise of voice mail and 800 numbers. People weren't writing letters or memos anymore; they were communicating verbally on the phone. And then the Internet happened and millions of people are sending email, instant messages and posting blogs. Writing skills have become more important than ever -- well, maybe not for IM. Similarly, who predicted Google, Apple's iPod or the rapid rise of the digital camera? Disruptive change is nearly impossible to predict.

My guess is that the legal profession is on the cusp of major change over the next ten years.

Executive Wisdom

Ron: Modern technology spawns ever-expanding oceans of records. Records are the grist of expensive disputes, investigations and litigation. Thus technology creates more and more and more opportunity for "lawyer work".

To manage this ever-growing legal beast, executives need to be smarter and think more strategically. They need to do more than turn legal issues over to the lawyers and their culture.

One idea: Provide executives a board of strategic advisors. The board would review legal matters for an enterprise from a business perspective -- including cost management, strategic alternatives, creative outcomes and the like. The board could provide executives independent analysis and advice. Any given board might have just 3 or so members, participating largely via electronic communication. The board could pull together experts with varied experience sets, from any place in the world. --Ben

Welcome to the Vallex Fund Forum

As the founder of The Vallex Fund, I would like to welcome you to our Forum. There are many thoughtful blawgs on the web today; it's difficult to make a fresh contribution. We do hope though that over time the contents of this website, our white papers and your Forum postings will contribute to the dialog on important law-related matters, particularly those regarding how entrepreneurs and new, innovative companies can contribute to the legal profession.

We realize many of the topics we've raised here at The Vallex Fund are controversial. We are also laypersons, not attorneys, so have never walked in the shoes many of you wear every day as you pursue the law. But we have experienced firsthand many of the issues long discussed in the profession from the perspective of witness, expert, plaintiff and defendant. We felt we could make a contribution by expressing our views and Call for Legal Entrepreneurship as clearly and objectively as possible. We hope we have done so.

Once again, welcome. We look forward to lively and productive conversations here at the Forum.

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