Law firm leaders: Technology to shape client relationships in coming years

BDO’s Law Firm Leadership Survey polled the managing partners and senior partners of 63 law firms about how the pace of change, technology and changing law firm structures are likely to have an impact on the relationships between law firms and their clients over the next five years.

The key changes predicted included different methods of communication, more remote working and changes to fees and fee arrangements. Many predicted that technology would change how legal advice was delivered and enable remote and flexible working.

They also thought that younger clients would expect to use new technologies and apps as they do in other aspects of their lives. However, technology was seen as driver of change to working practices rather than a change in itself.

One Scottish law firm leader said: “I expect that our clients will continue to expect us to be available whenever they need us to be and to give good commercial solutions-oriented advice. Those fundamentals are unlikely to change because of technology. However, the means of delivery may change and may enable us to be more efficient in delivering the advice.”

Participants often referred to connectivity and integration in their responses, with 57 per cent also citing collaboration as underpinning future client relationships where being an integral part of the team rather than just a service provider will be key to future success and survival. New technology will also drive changes, particularly where legal advice becomes commoditised or the cost of delivery is dramatically reduced.

One UK managing partner said: “I think there will be greater automation and transparency enabling clients to keep up to date with and even control how transactions are progressing and how fees are being incurred.”

The research also found that while many respondents predicted an increase in the use of remote working and less face to face meetings, there will be a need to build closer relationships with clients. As one law firm leader said, “clients will continue to value personal relationships, perhaps more than ever”.

Martin Gill, lead partner for BDO in Scotland, commented: “Law firm leaders agree that change is inevitable and that their clients have different expectations about what legal services are provided and how they are delivered. The need for legal leaders to adapt and embrace technology is key but so too is the importance of listening to what clients want and for firms to adapt their offering to align with their needs.”