I used to believe the UK legal profession was more imaginative than it got credit for – now I find with an increasingly jaded eye what fresh thinking there is has become stretched ludicrously thin. The vast majority of technology and new models are deployed to make the existing law firm a little more efficient to defensively preserve partner profits.
On one level, you can salute the hard-headed focus on margin. On the another, there are increasingly ominous questions about what worship of margin above other considerations will do to the legal industry at a time of structural pressure. You do not have to be devotees of Peter Drucker or Clayton Christensen to believe that aspiring to run law firms on 50%-plus margins creates a huge amount of competitive space for new entrants to operate and forge potent beachheads. It seems highly debatable that the legal industry will over the next 10 to 20 years sustain large swathes of providers operating on such fat returns. Continue reading “Comment: The great distraction – The innovation bandwagon has hobbled law’s market forces”
