A Modern Business Model

What constitutes a modern law firm is always changing. Instead of giving you a definition, I will outline what my firm has done to modernize our structure.

A classic firm structure is a topdown management model. The best visual description would be a pyramid with the senior partners on top. Senior partners make the business and management decisions of the firm. Associates at the firm work for/with the senior partners and have strict billable hour targets. The classic structure has traditional overhead demands primarily related to brick and mortar office space. Partners then set the billable targets to ensure that the associates can essentially pay for the overhead of the firm and make profit for the partners.

Many classically structured law firms will have a partnership track. This structure often puts the interests of the associates at odds with those of the senior partners. Young associates are trying to maintain a work-life balance with a young family while the partners need to ensure viability of the business and ensure profitability.

The top-down structure is designed to benefit owners, as the owners bear nearly all the financial risk of the business. For associates, success within this model means becoming a partner.

Law firms have generally resisted change but unfortunately whether a law firm wants to change or not, change is here. Associates want more control. They want control over the type of work they do and control over their work-life balance. They want to be compensated for the value they bring now, not for the proverbial “carrot on a stick,” i.e., the possibility of partnership.

The pandemic was a catalyst for many firms to finally embrace technology that had been around for years. While embracing technology is a step in the right direction, in my view, a truly “modern law firm” needs to re-think the relationship between partners and associates in the firm.

But how does one reconcile the opposing interests of partners who want to ensure a strong bottom line and healthy profits against associates who wish to have more control over their working conditions, career direction, and work-life balance?

My firm has created the 80-20 associate counsel program. It flips the classic pyramid upside down. Under the program, associate counsel are entitled to practice in any area they wish and retain 80% of their billings. This is in stark contrast to the typical compensation model for associates, which is usually closer to a 50/50 split, billings to earnings. Associates are expected to work remotely. They have no billable targets and have total control over their own hours. Associates can make use of the firm’s trust account and have assistance from our accountant and reception, but other administrative assistance becomes their responsibility. The firm covers Law Society fees and insurance and the use of our cloud-based file management software (Clio).

Our de-centralized model is more akin to the relationship of a real estate agent to a real estate brokerage firm than that of a traditional law firm structure. It can act as a bridge to solo practice for those worried about taking the leap. Associates enjoy total control over their career and have most of the benefits of solo practice while retaining the security of being part of a larger firm.

No more fear of failing to meet a billable target. No more struggling between family obligations while meeting your employer’s demands.

As we all know, the practice of law is a demanding profession. Our view of a modern law firm is one that allows people to be compensated more fully for their efforts but also allow them to choose the way they meet their career and financial goals. Remote work is the way of the future, but the benefits and collegiality of being a part of a firm can still be retained with our modern business model.

The multi-disciplinary team at Seniors First BC protects the rights of older adults of limited means through a unique combination of psycho-social and legal supports. The Law Foundation of BC is proud to support Seniors First BC’s Elder Law Clinic (“ELC”) and Legal Advocacy Program (“LAP”).

The ELC offers seniors a variety of legal services, from consultations to representation in the Lower Mainland, and advance planning clinics in Prince George and Nanaimo. Since COVID-19 restrictions were relaxed, demand for services has increased by 24%, including on matters related to residential care homes.

The LAP, which has seen a 45% increase in intakes, complements the work of the ELC by providing information, advice, and representation on income security, housing, debt issues, and matters before the Civil Resolution Tribunal.

Seniors First does dedicated outreach with professional interpreters to connect with and serve older adults who are deaf or hard of hearing and offers in-person services at a bi-monthly clinic in partnership with the Vancouver Coastal Health Deaf Well-Being Program.

In the months ahead, Seniors First BC will work with the Haida Gwaii Legal Project Society to offer free advance planning instruments to Indigenous clients. Lawyers interested in getting involved should contact Marie-Noël Campbell: mncampbell@seniorsfirstbc.ca

DAVID CLAASSEN