Embracing Innovation: Why Nonlawyers should be allowed to own law firms in Ontario
Alternative business structures for law firms were researched and debated back in 2014. Many lawyers were advocating to reform the current structural limitations of law firm ownership. Currently, law firms in Ontario can only be owned 100% by licensed lawyers, but there was hope that the law society of Ontario (“LSO”) would provide for flexible ownership arrangements. It has been 10 years since the initial debate and it is important to review the changes that have occurred in the legal industry since then.
Providing Value to the Difficult Client
Many lawyers (myself included) over the course of any practice, run into issues withdrawing from representing and terminating a difficult client. There are many competing issues at stake including: not wanting to abandon a client in a time of need; Law Society compliance; not wanting to abandon work-in-progress billings; pride; stress; and protection from a lawsuit. These are just some of the many considerations that go through one’s mind when deciding if, when, and how to “fire” a client.
Megaman, Negotiation and the Importance of the Credibility Meter
My son has recently discovered one of Nintendo’s earliest games: Megaman (see picture above). Megaman is a blue robot that runs around shooting evil robots with his plasma blaster. On the top left side of your television screen, there is a “health meter” that starts full with yellow health lines which reduces to black little by little every time Megaman is hurt. He can restore health meter by destroying a robot or finding batteries and returning his health meter back to full. Once there is no further health remaining, Megaman “dies”. As I watch my son play this game (and as I “reluctantly” take over the challenging levels), it occurs to me that this is a great analogy for the importance of credibility in negotiations, specifically conflict resolution.
When is the right time to Start your own Practice?
Starting a practice is an extremely sensitive topic for many lawyers and is certainly not for everyone. There are many factors to consider: practicing law vs operating a business, managing a payroll vs receiving a payroll, taking on personal liability over and above what professional insurance will cover etc. Taking the jump to starting your own practice comes with many of these different types of responsibilities and much has been written on it apart from this article. This includes how to network, acquire your first clients, how to hire and manage employees, how to raise start-up capital etc. But this is not the purpose of my writing this article. Instead, the purpose of this article is to tackle the question when is the right time to start a practice?
Addressing Employee Turn-over in Law Firms
Many law firm owners I speak to are having difficulty growing their practice, and a major reason for this they reason is lack of retention and the overall issue of employee turn-over within the firm. There are many articles that address this issue in the legal industry and in other industries as well – usually blaming this on the millennials and generation Z. The argument goes that this current generation of lawyers focus on social media and the next best job offer, find themselves jumping to new firms after several years, and there are few that maintain loyalty with the same firm over a longer period of time.
The Great Discontent of Law Firm Power Dynamics
I often hear from colleagues about a general discontent in working for a standard law practice and its culture. There is often resentment and politics between the different classes of employees – Partners, associates, articling students, law clerks and operation staff. The reason for this discontent is typically due to a perceptive hierarchy that does not reflect practical reality. In order to foster a more positive culture in a law practice, it is the responsibility of the leaders of the firm (ownership group or managing partner) to fracture the perceptive hierarchy and be as transparent has possible as to the firm and its goals.
Lawyer Year End 2024 and Upcoming Legal Challenges 2025
As 2024 comes to an end, it is important to reflect on the year that went by and look forward to challenges faced by legal professionals for the upcoming year.