Law firms are changing shape. Real estate needs to keep up.
Law firms are reinventing themselves. The office will be a key device in supporting this business transformation. It too, however, will need to transform.
2 minutes to read
Technological advancement, fiercer competition, changing client and employee demands, and Covid-19 are driving fundamental change amongst UK law firms. Four main operating models are emerging:
1. Tech-enabled:
Law firms that use technology to provide legal services.
Example: Allen & Overy runs an advanced delivery team that helps clients to select and deploy the optimal LegalTech solution.
2. Legal +:
Law firms that offer business support services as well as consulting solutions that go beyond legal services.
EXAMPLE: DLA Piper launched a separate umbrella brand called Law& to target broader advisory services.
3. Flexible resourcing:
Law firms offering clients flexible resourcing solutions.
Example: Ashurst operates a flexible resourcing platform through a partnership with Cognia Law and Elevate, which allows it to tap into a pool of around 30,000 individuals.
4. Purpose-led:
A strategy that creates financial value while simultaneously doing good, serving employees, customers and society as a whole.
Example: Pinsent Masons is implementing a purpose-led strategy. Actions include dropping hourly billing targets for rewarding performance against four metrics: trust among colleagues, trust among clients, impact on the environment and its community, and conduct as a purpose-led organisation.
So what for real estate?
Law firms are changing fast and real estate will need to keep up, given its vital role in supporting, facilitating and portraying strategic intent. Indeed all of the respondents to our law firm (Y)OUR SPACE survey believe that real estate is a key strategic device within their business, ranking corporate brand and image first in a range of strategic agenda items that real estate is best able to support.
Taking the purpose-led business model mentioned above as an example, in practice this could mean relocating to sustainable and inclusive buildings that reflect a purpose-led culture and ambition. It could also mean paying far more attention to the workplace wellbeing agenda. It may even increase focus on how the building or development a company occupies can integrate with and directly benefit the local community. Indeed, Pinsent Mason’s new offices in Edinburgh fully reflects their purpose-led strategy featuring a outdoor space, energy efficient lighting, solar panels and an environmental management system. The building has a BREEAM “Excellent” rating.
We have established that law firms are changing shape. We have also established the crucial role that real estate plays in supporting business transformation. Effective law firm real estate decision makers will recognise this and develop a deep understanding of the changing nature of their law firm, using this to build and maintain a “fit for purpose” portfolio.