In a more fragmented world, global operators need truly international law firms

In recent decades, the majority — interestingly, not all — of large law firms have pursued better business performance through internationalisation, driven by the globalisation of the economy.

While the world is arguably becoming more fragmented, our clients' projects remain largely international in nature, as are financing sources, supply chains, complex disputes, and, increasingly, regulation. The demand for international legal advice is set to remain strong and grow.

The law firms that will emerge as trusted advisers to global operators are those that demonstrate the value of a truly international offering. This represents one of the most exciting, yet challenging, projects for law firm managers.

The challenges are manifold. For instance, lawyers spend years studying to obtain qualifications that, in most cases, are only valid in their home jurisdiction. Thus, outside practice areas that are inherently international, they often feel uncomfortable advising on the laws of more than one country. Similarly, the regulatory framework and rules governing the legal profession, from legal privilege and confidentiality to conflicts of interest, retirement schemes, and benefits, are typically defined at the national level.

However, the challenges are as much cultural as they are regulatory. For example, even when a lawyer is authorised to practice in another jurisdiction (e.g., within the European Union), they may still feel they lack the knowledge and experience to counsel in that jurisdiction, or command of the local language, among other issues.

While the path to achieving or enhancing a truly international offering will largely depend on each firm's history, market position, culture, and strategic objectives, several areas seem relevant for many firms to explore or prioritise:?

• Developing expertise in practice areas where the law is gaining a supranational dimension — for example, through EU or other regional legislation, codes, or international treaties?
• Enhancing the added value of an international and diverse team of lawyers, notably in terms of background, legal knowledge, culture, and business ethics
• Exploring new ways to add value in a changing international political landscape — for example, in Europe, exciting opportunities should be explored as the new UK Government seeks a “reset” of the UK’s relationship with the EU
• Seeking to hire talented lawyers who are qualified to practice law in more than one jurisdiction, or are familiar with the business environment, legal system, and culture of one or more foreign countries
• Encouraging secondments of team members across international offices
• Utilising offices in different time zones to work around the clock on more mandates.

This post only reflects my personal views. What do you think?