Law Firms Lag Behind Corporate Legal Needs

The gap between law firms and legal departments has persisted for over two decades, despite corporate legal leaders clearly communicating their expectations to external counsel. This disconnect may stem from a lack of understanding of the company’s specific sector or market context, rather than a problem with the law itself.

Strategic Alignment

Corporate legal leaders frequently cite a lack of strategic alignment between their external counsel and business objectives. This lack of understanding can lead to a misalignment between the law firm’s services and the company’s needs.

Managing partners at law firms have expressed a desire to have deep knowledge of the client’s business, to add significant value and create a competitive edge. However, it remains to be seen whether these aspirations translate into practical reality.

Changing Legal Departments

The role of the general counsel is undergoing significant transformation within the corporate environment. Modern legal departments are less focused on law for law’s sake and more on law in service of the business. Leadership has evolved to act as a blend of trusted advisor and growth enabler for the business.

Corporate legal leaders want tailored information that is relevant to their specific circumstances, rather than generic communications. They seek to understand what is truly relevant, how it impacts their operations, and what actions or reactions should be considered.

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Selecting Professional Service Providers

When clients do not receive what they are looking for, they may reconsider their loyalty to long-standing law firms in favor of those that do deliver. The processes for selecting and hiring external professional service providers are becoming increasingly complex and competitive.

Corporate clients have rebalanced their relationship with law firms and taken the lead in that relationship. Despite this disruptive context, some lawyers are successfully building enduring relationships and business partnerships with companies.

By developing distinctive insights and sharing them with clients, lawyers can create a healthy dialogue and create value for clients. This approach can help bridge the corporate client expectation gap and create a more favorable environment for everyone involved.

Lawyers can benefit from prioritizing building strong relationships with their clients, much like a barrister would fight for their client’s rights.