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7/28/2019 Is It Surprising That We Are So Little Loved
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Simon Goldhill Consultancy 2013
www.simongoldhill.co.uk
Is it surprising that we are so little loved?
According to Professor Gillian Hadfield1
we all live in a world that is flooded with law.
But what of the everyday life that falls short of crisis, that sets the path on which a crisis
may occur or may be averted? We live in an everyday world that is, in fact, flooded with
law how our children are supposed to be treated in school, what lenders are supposed to
tell us when they sell us a mortgage, when our employers can and cannot change our
conditions of work or pay, what is fair play in consumer markets, and so on. Every time wesign a document, click a box that says I Agree, enter a retail shop, or get on a local bus we
navigate a world that is defined by legal obligations and rights and, importantly, one that
assumes that the ordinary citizen who moves in this world is doing so as a functioning,
choosing, legal agent. Should that citizen end up in a crisis that requires more active use or
response to the legal systemfiling or responding to a lawsuit or enforcement actionshe
will inevitably be treated as if she functioned with this kind of legal agency on the path that
brought her to this point: bound by the contracts she agreed to or the risks she was given
notice of or the legal consequences of the actions she took in caring for her children.2
Surely lawyers, with their training, experience and understanding of legal issues, should be
overwhelmed with demand for their help in navigating a safe route through our daily existence? Yet
all the evidence suggests otherwise.
The Legal Services Board has recently published an analysis by Professor Pascoe Pleasence and Dr
Nigel J Balmer of an extensive and far reaching survey of nearly 10,000 small businesses3
into their
use of legal services and responses to legal problems.4
These same authors have previously
conducted similar extensive research into the consumer legal market5
and, in their view, there are
striking similarities between the current way in which the consumer and the small businesses legal
markets operate.
1Kirtland Professor of Law and Professor of Economics, University of Southern California
2Fordham Urban Law Journal, Volume 37, Issue 1 2009, pages 131-132
3comprising of a demographic mix of single person businesses, micro businesses with fewer than 10
employees and small businesses with fewer than 50 employees4
In Need of Advice? Findings of a Small Business Legal Needs Benchmarking Survey, Pleasence and Balmer,
LSB https://research.legalservicesboard.org.uk/wp-content/media/In-Need-of-Advice-report.pdf5
English and Welsh Civil and Social Justice Panel Survey: Wave 1, Pleasence, Balmer et al,2011, Legal ServicesCommission
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Simon Goldhill Consultancy 2013
www.simongoldhill.co.uk
One major problem is that, despite Professor Hadfields views, there are many instances where
issues that have a legal flavour are simply not recognised as such. So where individuals and small
businesses have a problem where legal advice could be of benefit, they often look elsewhere forhelp. Theres not much that individual lawyers can do to influence this; this may be an area where
so-called Public Legal Education can, in due course, have an effect, but thats a topic for a different
article.6
What is highly revealing, however, is the response of both individuals and small businesses once, in
each case roughly a third of the time, they recognise that they are facing a legal problem.
The percentages turning to lawyers (solicitors or barristers) for any help or advice when faced with a
legal problem are strikingly small.
Problem resolution strategies
Small businesses Individuals
No action 9.0% 10.4%
Dealt with entirely by self 51.9% 45.7%
Informal help from colleagues & friends 10.1% 14.5%
Formal independent help 29.0% 29.3%
From lawyers 15.9% 6.5%
From non-lawyers 13.1% 22.8%
6
Watch this space!
9%
51.90%
10.10%
15.90%
13.10%
Small businesses
No action
Self help
Informal help
Legal help
Help from
non-lawyers
10.40%
45.70%
14.50%
6.50%
22.80%
Individuals
No action
Self help
Informal help
Legal help
Non-legal
help
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Simon Goldhill Consultancy 2013
www.simongoldhill.co.uk
By contrast, the proportion of small businesses and individuals who look for no help at all is
staggeringly high. And there is a real and significant cost. The Department of Justice economists have
estimated the cost to individuals as over 13.5bn over a 3 year period. For small businesses thecost could be much higher as much as 100bn a year.
What an opportunity! And what should law firms be doing to take advantage of it?
For many, the biggest challenge will be to get beyond the passive mentality of just being there when
clients decide they need them. There is a wealth of other research7
which demonstrates quite clearly
that people (and businesses) tend only turn to lawyers for event-drive transactions (rare at best, if
not merely once or twice a lifetime). Lawyers only tend to get used when people dont think that
they can deal with an issue or transaction without them.
Thats an awfully difficult service to try to sell. Come and see me when you decide to move
house/change your Will again/when one of your parents dies in 10 years time doesnt lend itself to
a client-centric marketing and sales strategy. This lack of a strong distribution channel is one
significant reason why many firms business models appear vulnerable. I know from my own days as
a commercial litigator how difficult it is to build a practice on the back of a series of unfortunate one-
offs and reluctant purchases. While I was confident that I could bring in the new work to meet my
targets (and I did), it was simply impossible to demonstrate where it would be coming from.
Developing sustainable business is difficult to achieve on a mixture of hope and opportunism!
So back to that question I posed above. One answer is a move away from the current largely reactive
engagement with the public. Firms need to get properly and pro-actively engaged with their existing
and potential client base. This goes much further than just sending out legal newsletters and news of
staff charity fund-raising days. Im talking here about a real shift in mind-set, adopting the sort of
customer service values that operate successfully in the commercial world outside of the legal
market to provide things that people actually find of value.
This may be anathema to those who equate commercial values with an inevitable lack of the
standards that only a professional can provide. Im afraid that they are wrong. The reason that
Amazon and Tesco have become successful is by looking after their customers, not ripping them off.
In any event, the liberalisation of the market means that, whatever they think, what is successful in
the commercial world will be introduced into the legal market.
So amongst the ideas that might work, how about providing, for free (yes, really!), the sort of
information that enables individuals and businesses to understand the flood of law that surrounds
them and that there are ways to access advice and assistance that suit them, without all of the
actual and perceived risks that put people off approaching lawyers. And break down some of the
7See, for instance the Baseline Survey to Assess the Impact of Legal Services Reform, Ministry of Justice,
March 2010 and YouGov/SixthSense, Legal Services, November 2010
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Simon Goldhill Consultancy 2013
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barriers make yourself accessible via the internet, demystify the language you use to
communicate, remove the ticking clock. There are even ways to put the client in control of the
extent of the legal input they require and pay for.
And lets use technology not to replace people, but to assist. When you see the newly elected
President of the Birmingham Law Society take pride in the fact that he does not have a computer,
you have to wonder why he feels this is such a good thing for his clients. Is this really his vision for
the future, or simply a hankering to keep past methods that make him feel comfortable?
Those of us who are looking towards the future of the legal market are starting to see a rather
different picture emerging8. There will be greater focus on the needs of the client and the potential
client rather than operating in a way that suits the service provider. The move towards innovation
in business models, distribution strategies and technology will help to bridge the substantial gapbetween law firms and the client base.
Will we ever be loved? That may be stretching it a bit. But it will be a good start if we can become
better understood, more respected and perhaps most importantly for those in practice - used
more frequently.
Simon Goldhill
31 May 2013
8See, for instance, Baker Tillys Legal Innovation Report 2013, June 2013 and their discussion of the start of
unbundling legal services