In 1977 John Bates and Van O‘Steen changed global law with a 3”x 7” ad in a local Arizona paper.

The business of law has radically changed over the past 50 years. This change was underway before Bates v. Arizona, in which the Supreme Court authorized advertising. However the case transported the business of law out of the shadows and into the open. It meant that lawyers had the constitutional right to treat the practice and profession of law as a business.

The case was brought against John Bates and Van O’Steen, partners in a two attorney legal clinic they started almost right out of law school. While the case involved only a small printed ad in the local newspaper advertising reasonable priced legal service, the ripple effects from the decision ultimately have produced a tsunami going beyond the United States. It affected the entire world’s legal profession. Internationalization and now globalization spread the idea around the world that law is indeed a business with advertising, marketing, pictures, websites, logos, directories, rankings, mergers, bankruptcies, alternative structures, consultants, networks, takeovers, and more.

Ethic rules were not ignored, but they simply could not apply when dozens of firms had more than 15 offices outside of London or New York. Advertising their offices in the United States meant indirectly advertising the offices in other countries. Local firms remained handcuffed by the rules and sought out business alternatives to protect their market. The underlying ethical rules governing the practice and the business of law began to erode.

? Competition expanded Services

? More competition meant that more services were offered and more products were created to allow firms to openly compete. Products and services were now aimed at getting a competitive advantage and increasing profit. Almost anything seemed to be okay for the small advantage of obtaining and keeping a client.

However, the business of law was still largely tethered to the earth until the mid-1990s.

The Internet and communications technology propelled the business of law into a new era. The Internet, while applicable to every business, has asserted a profound effect because law is a business based upon information. In the practice of law, it is information on clients and opponents. In the business of law, it is information on business practices.

The authors of Leaders in Legal Business have explored each aspect both on the micro- and macro levels of the business of law. Each of the chapters in this book relates back to the changes that have manifested themselves. Consultants have become specialists; in fact, everyone has become a specialist.

? Where to?

So where does the business of law go from here? In my opinion, five primary macro trends will push the business of law into uncharted waters.

Law firms’ structures will change. Five of the very largest law firms have opted to become networks using Swiss vereins as a way to accelerate their expansion. They have copied the largest accounting networks, whose brands are recognized worldwide. This will push the largest firms to move even farther toward a new business entity model. This will require restructuring, redeployment of resources, training, and technology to manage the attorneys in culturally diverse offices. The expertise to accomplish this will be found both in-house and with outside consultants who can lead the firms into the unknown.

Branded firms will compete with the largest independent regional or national firms. The branded firms will also increasingly compete with local firms in order to effectively and efficiently utilize their resources. This will require new services and products for both the largest and the smallest firms.

At the same time, outside of the United States, the PwC, Deloitte, KPMG, and E&Y legal networks will rapidly redeploy into the legal market by focusing initially on tax, mergers and acquisitions, labor, immigration, and other commercial areas. This will be a cause for concern for even the largest independent firms, given the resources and organizations of the Big 4.

Social media marketing will come into its own as the Internet generation takes leadership positons in law firms and corporate legal departments. This will allow the smallest firms to compete with the largest. Specialty firms will become even more specialized and be able to market their services using social media.

Technology combined with redefining legal services has resulted in the unbundling of services traditionally provided by law firms. Firms and corporate clients will have an opportunity to take advantage of these services. The leaders and influencers will affect the pace and development of these alternatives. Both law firm and corporate counsel leaders will create alliances with the alterative resource providers.

John Bates and Van O’Steen were leaders who challenged the global legal profession. Today’s leaders in legal media, consulting, networks, law firms, bar and professional associations, legal process outsourcing, and other services and products will continue this tradition by posing the same challenges.

Law is a profession – Law is a business. ???The two are inseparable.