Canadian Lawyer

w w w . C A N A D I A N L a w y e r m a g . c o m J U L Y 2 0 1 6 19 a measure that is a win for clients and the firm. It's not merely unbundling of current services and then charging for the disparate parts, it's creation of new value that needs not be rooted in pure accounting and financial advisory. Fur- ther, those results can only be achieved by leveraging an ecosystem of players. In Remaking Law Firms, which was recently released by George Beaton and Imme Kaschner, they provide a compel- ling and empirically researched global snapshot on the challenges and oppor- tunities facing large law firms in transi- tion. Among the prevailing themes is the idea that remaking law firms will require greater reverence and respect for law firm personnel who aren't equity or income partner lawyers. They aren't lawyers at all! They're increasingly proj- ect managers, technologists, and pro- cess professionals who are getting the bulk of the air time in client pitches rather than the lead lawyers. That's an internal ecosystem and it's driven by the client. Do we really believe law firms will compensate these valuable contributions on par with equity partners? While law firms can and will be remade to varying degrees, the external ecosystem is going to accelerate more nimbly and with greater velocity. The professionals who make up the increas- ingly valuable roles inside law firms will also join legal service providers as well as the vast number of consultancies, agencies, and technology players, both established and in the startup space. All of these players work collaboratively and often in concert on behalf of the same cli- ent engagement — while at other times competing against each other. Similarly, because of client demands, they will also work with law firms on delivery, but also, on occasion, in competition for certain aspects of work. For those professionals who are not lawyers, there is a wealth of opportu- nity in the broader ecosystem to pursue fulfilling work without a lot of the tar of law firm culture slowing things down. They can choose to still be in the legal services industry without being housed in the glass tower and marble tables of a law firm. In fact, they can serve legal and other industries at the same time. If I'm an IT, process, or other domain expertise professional, I've got more meaningful (and lucrative) things to do than teach lawyers how to best man- age e-mail on behalf of my law firm employer. It's this wealth of opportunity to ser- vice law firms, in-house departments, and other legal consumers from the out- side that is encouraging and empower- ing for other members of the ecosystem along with the ability to service and part- ner with a global rather than regional market. Indeed, the burgeoning ecosys- tem possibilities are what has fuelled the activities of LegalX, including its upcom- ing collaboration with the Canadian Bar Association at its annual conference in Ottawa in August. Five early-stage legal technology startups will get a chance in August to participate in The Pitch, the first-ever legal innovation startup competition where five finalists will be guaranteed an interview with the Chinese Angels Mentor Program where, if selected (and pending due diligence), they will receive an equity investment of no less than $200,000. It also comes with a residency at LegalX (virtual or otherwise), which vaults companies into the ecosystem of makers and users, both big and small, within the legal ecosystem. Knowledge, experience, skills, infra- structure, and especially ethics are not the exclusive domain of lawyers and nei- ther is the provision of all the necessary services that make up the ecosystem. Much of the "knowledge" of lawyers can be acquired and accessed by many other means. The only thing over which a law firm has an entrenched monopoly are those aspects of risk and "assurances" to the client that there are disciplin- ary consequences for a firm or lawyer's negligence or malpractice. Even then, regulators struggle to police the most egregious scallywags like Javad Heydary, who carried on practice for years in the Ontario market without repercussions. The only thing more mysterious than the inability to discipline Heydary after years of abuse was his ultimate death and the regulators' further inability to confirm he had passed, notwithstanding having access to the caput mortuum. Competition is relevant and will con- tinue to be, just as law firms are relevant and will continue to be. However, the best products and services that are both innovative and market connected are clearly going to be the result of collab- orative forces in a broader ecosystem rather than the historic Coke v. Pepsi battle for the taste buds. It's not the end of lawyers or law firms but definitely a reshuffling of their importance in the broader value chain. Aron Solomon is the head of LegalX and a senior adviser at MaRS Discovery Dis- trict in Toronto. Jason Moyse is industry lead of LegalX and manager of legal business services at Elevate Services serv- ing global law firms and corporate legal departments. Canadian Lawyer Corporate Counsel Survey COMING SOON ATTENTION IN-HOUSE COUNSEL! Weigh in on relationships with external law fi rms, alternative fee arrangements and more Survey open August 15 – September 12 canadianlawyermag.com/surveys Untitled-5 1 2016-06-14 4:03 PM

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