“𝘌𝘷𝘦𝘯 𝘪𝘧 𝘺𝘰𝘶 𝘤𝘩𝘢𝘳𝘨𝘦 𝘣𝘺 𝘵𝘩𝘦 𝘩𝘰𝘶𝘳, 𝘺𝘰𝘶’𝘳𝘦 𝘯𝘰𝘵 𝘴𝘦𝘭𝘭𝘪𝘯𝘨 𝘩𝘰𝘶𝘳𝘴. 𝘠𝘰𝘶’𝘳𝘦 𝘴𝘦𝘭𝘭𝘪𝘯𝘨 𝘴𝘰𝘮𝘦𝘵𝘩𝘪𝘯𝘨 𝘤𝘭𝘪𝘦𝘯𝘵𝘴 𝘤𝘢𝘯 𝘶𝘴𝘦.”
– Seth Godin (Kinds of Value)
𝗪𝗵𝗮𝘁 𝗰𝗹𝗶𝗲𝗻𝘁𝘀 𝗮𝗰𝘁𝘂𝗮𝗹𝗹𝘆 𝗯𝘂𝘆:
• Experience
• Understanding | Empathy
• Risk Mitigation & Reduction
• Responsiveness
• Decision Making
—–
Get in touch 📩 if you want to have a chat about building a sustainable 🌱 and profitable 💰 practice
Just posted this elsewhere, so thought I would share it here.
I highly suspect the traditional model of ‘Cheap – Good – Fast’, where you can pick 2 out of the 3 options, will be blown-up in the new AI world.
What I expect we will see going forward is:
Trust –> Context –> Speed
Where:
Going forward, clients will get to select all 3 and professionals will need to rejig their offering to deliver on them!
rws_01
The size of your firm has no bearing on the amount you can charge clients.
Now if you have read the above quote and thought to yourself “of course the size of your firm has no bearing on the amount you can charge clients, clearly Smith has lost it again!“, then bear with me.
In a recent matter before the Central District of California, the Honorable Michael W Fitzgerald disagreed with the notion that the size of a law firm should have no bearing on the amount you can charge clients when he stated:
“it is simply unreasonable to award big law rates to a four-person firm representing mom-and-pop warehouses.”
In what is otherwise far reaching commentary on the history and application of the billable hour (well worth a read in itself), Fitzgerald’s ruling is troubling; not least because it is based on a premise that bigger means better — and better means more expensive. Now that could be true. But it doesn’t make it so.
Conversely, should I, as a client, be happy to pay more because the attorney acting on my matter works in a firm that has seven floors over one that has one? Surely the answer here is “no”, I’m paying for outcomes over inputs.
But that’s not the case here. If we follow Fitzgerald’s reasoning in this case, the real drivers of price: (a) Perceived expertise and relevance; (b) Client experience and accessibility; and (c) Outcome certainty and risk management, are certainly consideration, but no longer primary.
rws_01
Read pretty much any report on the legal market over the past 20 years and the story is the same: Growth, growth, growth. But, a recent report by legal advisory boutique Taha & Watmough would suggest that, while that may be true at some level, the real story is a little less rosy.
Meaning the average equity partner at a top 100 [UK] law firm is earning less [in real terms] today than 10 years ago.
Given the rise in salaries and other costs here in Australia over that period, I wouldn’t see our numbers as being too different to those above.
So the next time you see stats telling you how well law firms are doing, remember:
“Vanity metrics are the fine China of analytics – pretty to look at, but useless at the table.”
Get in touch if you want to have a chat about how you can sustainably grow your firm
rws_01
If you missed it, The Financial Times is reporting that ‘Private equity overcomes California hurdle to expansion in US legal market’ stating that:
Private equity has scored a partial victory in its push to expand in the US legal market, after lobbyists softened legislation in California that threatened to disrupt liberalisation of law firm ownership rules.
Attorneys in the country’s largest state will be allowed to partner on some legal work with investor-owned law firms under the terms of a law signed by Governor Gavin Newsom.
By far the largest legal market in the world, what does this development mean for the future of the US – indeed Global – legal market?
While this compromise isn’t a full liberalisation of the Californian (let alone US) legal market, along with the recent liberalisation of neighbouring Arizona’s legal market, which now allows non-lawyers to own law firms under an “alternative business structure” (ABS) model, it’s certainly a crack in the door.
For private equity, it’ll be a sign that resistance to change from within the profession can be negotiated down. For California’s legal establishment, it’s a signal that – finally – the status quo is no longer politically or economically inevitable. For the Global legal market, it’s further evidence, if it were needed, that despite all of the challenges that come with owning a law firm, private equity very much remains interested in this asset class.
Earlier today The 𝘈𝘶𝘴𝘵𝘳𝘢𝘭𝘪𝘢𝘯 𝘍𝘪𝘯𝘢𝘯𝘤𝘪𝘢𝘭 𝘙𝘦𝘷𝘪𝘦𝘸 published the results of its Law Graduate Salary Range Survey.
Makes for an interesting read. On the one hand, nowhere near as high as overseas markets such as London, HK and the US. On the other hand, Grads on A$130K would have been unthinkable 5 – 10 years ago!
𝗛𝗼𝘄 𝗺𝘂𝗰𝗵 𝗶𝘀 𝗮 𝗵𝗮𝗻𝗱𝗯𝗮𝗴 𝘄𝗼𝗿𝘁𝗵?
In this case, a staggering A$15.3 million.
𝗧𝗵𝗲 𝘃𝗮𝗹𝘂𝗲 𝗼𝗳 𝘀𝘁𝗼𝗿𝘆𝘁𝗲𝗹𝗹𝗶𝗻𝗴
Unlike most handbags however, this one has a story to tell.
It was the very first Birkin bag.
Designed by Hermès executive Jean-Louis Dumas in 1984, following a chance encounter on a flight with actress and singer Jane Birkin (hence the name), the bag was used daily by Birkin for nearly a decade before she donated it to an Aids Charity auction.
What the sale of this bag evidences though is how value extends beyond material worth. Value is not the $$$ signs you seen on the price-tag; it’s about the stories we tell, the history we preserve, and the emotional connections we forge.
The sale of this bag is a powerful reminder to professionals that authenticity and narrative can elevate your service offering from ordinary to iconic.
It is your powerful – and likely only – differentiator. It is what clients are willing to pay for.
Link to article: https://lnkd.in/gfsrSmMK
As we navigate 2025, Australian midsize law firms find themselves at a pivotal crossroads—balancing client expectations, talent retention and the promise (and pitfalls) of technology. The recently released 2025 Australian Midsize Law Firm Priorities Report by Actionstep offers a deep dive into what’s shaping the future for these firms.
Here’s s summary of what you need to know from the Report—and how your firm can stay ahead.
It’s clear—client satisfaction is king.
71% of midsize firms rank it as their top priority for protecting and growing revenue. But it’s not just about delivering legal outcomes; it’s about building trust-based relationships, offering personalised service and consistently exceeding expectations.
Interestingly, firms are focusing more on deepening relationships with existing clients rather than chasing new business. In fact, 37% see expanding existing client accounts as their primary growth strategy for 2025.
✅ Takeaway: If your firm isn’t investing in client experience, you’re leaving growth on the table.
While technology grabs headlines, midsize firms know that people drive performance.
However, when employees consider leaving, pay and remuneration become the decisive factor. This signals a clear message: while meaningful work keeps people engaged, competitive compensation keeps them committed.
✅ Takeaway: Create a workplace where talent thrives—offer challenging work, clear career paths and ensure your pay structures remain competitive.
Despite recognising efficiency challenges, midsize firms remain cautious adopters of automation and AI:
There’s also a noticeable gap in digital client experience. While firms excel in personalised, human-centric service, only 41% feel confident in their digital touchpoints like client portals and automated communications.
✅ Takeaway: Embrace technology—not to replace people, but to empower them. Automation can reduce workloads, freeing your team to focus on high-value client interactions.
With client trust on the line, cybersecurity is non-negotiable. Yet, the biggest risk isn’t technology—it’s human error. Over 63% of firms cite staff behaviour (think password sharing, weak authentication practices) as their top vulnerability.
✅ Takeaway: Build a security-first culture. Regular training, robust protocols, and smart tools like multi-factor authentication are essential to protect both your firm and your clients.
2025 presents both challenges and opportunities for Australia’s midsize law firms. Those that blend human expertise with smart technology, prioritise client relationships, and invest in their people will be best positioned to thrive in an increasingly competitive market.
Is your firm ready to seize the moment?
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The legal profession is no stranger to disruption, but the pace and complexity of change facing the sector today are unprecedented. The International Bar Association’s (IBA) 2024 White Paper on the Future of Legal Services offers an essential pulse-check on the challenges—and opportunities—facing lawyers, law firms and legal institutions globally.
Based on a wide-reaching survey of legal professionals from around the world, this Report uncovers where the industry is heading and how well it’s preparing for the journey.
Here’s a summary of what you need to know in the Report:
The IBA’s Future of Legal Services Commission was established to analyse how the legal profession is evolving. Through its annual survey, it aims to identify priority challenges, assess sector readiness and provide guidance for law firms, legal service providers, and policymakers.
The 2024 report doubled its response rate compared to 2023, reflecting growing engagement from professionals across continents.
The report structures its analysis around four core themes:
Within these themes lie 17 specific challenges—from the rise of artificial intelligence (AI) and ESG expectations to mental health, diversity and the integrity of justice systems.
AI remains the most talked-about disruptor—and for good reason. The report identifies AI-related challenges (like training, integration and client expectations) as the top medium-term risk for the legal sector. Yet, despite this recognition, organizational readiness is still low. AI is too often treated as a future problem, delaying much-needed action today.
Top AI concern: Change management and training—not just tech implementation.
Mental health and wellbeing continue to gain attention. The survey reveals a generational divide: under-45s see it as the most pressing challenge over the next five years, while over-45s don’t place it as highly. Regardless, readiness remains lacking.
Key takeaway: Law firms must invest in mental health support now to retain top talent.
The profession is feeling more confident about its ability to attract and retain talent—though it’s still a high-impact concern. Financial performance and profitability, meanwhile, have emerged as the number one short-term challenge, reflecting heightened economic pressures.
While ESG issues received less attention than in 2023, connected themes like diversity, equity and inclusion (DE&I) and climate impact are still gaining ground outside of the USA.
Firms appear better prepared than before, but the recent shift in focus in the USA raises questions about long-term ESG strategy.
Challenges like access to justice and the independence of the profession have seen a drop in perceived impact—possibly because they lack a clear “owner” within organizations. However, political uncertainty (e.g., elections, legislative changes) is now drawing more attention due to its direct commercial relevance.
According to the Report, the following areas deserve immediate strategic attention:
The legal sector is at a crossroads. AI is reshaping the delivery of services, talent dynamics are shifting and clients are demanding more socially responsible practices. While the profession shows resilience and growing awareness, gaps between awareness and readiness remain significant.
The IBA’s White Paper offers a roadmap—not just for what’s changing, but for how to respond. The challenge for firms and legal institutions now is clear: prioritize smarter, act sooner, and build the capacity to adapt faster.
Want to dive deeper into the report? You can find the full 2024 White Paper on the International Bar Association’s website: www.ibanet.org
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The recently published 2025 EY Law General Counsel Study reveals how corporate in-house legal departments are responding to major external disruptions—ranging from geopolitical instability and regulatory complexity to technological transformation—to drive confident innovation.
While these trends demand agility and modernisation in legal operations and risk management, internal barriers like budget limitations and resistance to change often slow progress.
In-house legal departments identify three major disruptors shaping their strategies:
These factors are pushing legal teams to rethink their approaches to compliance, governance and operational efficiency.
Engaging stakeholders and assessing operational maturity enhances planning and execution. Yet only 11% of departments conducted stakeholder interviews last year—an untapped opportunity.
With only 24% completing recent spend assessments, legal departments should:
To increase agility and expertise:
With 64% prioritizing upskilling and reskilling, focus areas include:
Fewer than 50% have a clearly defined risk governance model:
While 75% aim to refine their legal tech strategies, only 25% prioritize Generative AI (GenAI):
The 2025 EY Law General Counsel Study highlights the urgency for legal departments to adapt amid growing complexity.
By embracing innovation in sourcing, talent, tech, and governance, legal teams can build more agile, efficient, and future-proof operations.
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