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2022 | OriginalPaper | Buchkapitel

About Lawyers and Humans

verfasst von : Rainer Markfort, Tanja Podinic, Patrycjusz Zamorski

Erschienen in: Liquid Legal – Humanization and the Law

Verlag: Springer International Publishing

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Abstract

The rule of law helped to humanize societies. Over ages statutes were written in plain language and meant to be read (or heard) and understood by the people. Over time, our societies, our economies, and our interactions have become increasingly complex, and so have the rules and regulations that govern them. Modern companies’ legal and compliance departments play an increasingly significant role in mitigating risks associated with new projects and products. They, in turn, rely on external legal advice when specialized expertise is required. This is the playing field of international law firms. For many years the total turnover has increased well above the market. Profit per partner has increased even more. However, over time both the lawyer-client relationship as well as the working conditions of lawyers and staff have suffered from increasing economic pressures. Lawyering mutated from a profession into a profit driven business. This comes with a cost: a dehumanized working environment, huge pressure on law firm partners, regarding both qualities of work and economics. Partners push it down to associates and staff which leads to high numbers of psychological diseases, drug abuse, and suicide, or people trying to escape, which then again results in high fluctuation and a ‘war for talent’ (euphemism). Do we want to continue down this path? Imagine a future where law firms focused on being more “human” for both, individuals working within and for our clients. Can we imagine a law firm where the primary focus is on helping our clients understand rules and regulations to guide the way, translating the secret legal code into business language, thus granting them access to law? Can we imagine a competitive environment where client satisfaction counts more than profit per partner? Can we create an operating model providing funds for investments in the future, thus unlocking new sources of revenue that are built on value add rather than the billable hour? Can we create a less hierarchical working environment nourishing the expectations of young lawyers, valuing the contribution of professional staff and overall making law firms a place where people love to work?

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Fußnoten
1
“Who wants / that the world remains as it is / does not want it to remain”. The poem of Erich Fried “status quo” describes in a few words what it is all about: If we don’t change the world, it will cease to exist. And this is our mission. Changing the way how the legal profession operates in order to make it more human and thus guide the way to a (better) future.
 
3
Yoon (2014), pp. 697–719.
 
5
Strathausen, Roger et al. “Lawyer Well-Being - the Silent Pandemic.” Liquid Legal Institute e.V., March 23, 2022. https://​www.​liquid-legal-institute.​com/​workinggroups/​lawyer-wellbeing/​.
 
6
Cohen, Mark A. “Are Law Firms Sustainable? It’s The Model That Matters.” Forbes. Forbes Magazine, August 19, 2019. https://​www.​forbes.​com/​sites/​markcohen1/​2019/​08/​19/​are-law-firms-sustainable-its-the-model-that-matters/​?​sh=​21a7cf8f628f.
 
7
Roberts, Hannah. “Clifford Chance Bumps Germany Associate Salaries by €20K.” Law.com International, October 11, 2021. https://​www.​law.​com/​international-edition/​2021/​10/​11/​clifford-chance-bumps-germany-associate-salariesby-e20k/​?​slreturn=​20220121160740.
 
8
See Sect. 5 below.
 
9
It is misleading to speak of the legal “industry” as it is much more performed as a “craft”. Markfort and Zamorski (2020).
 
10
See Sect. 5 below.
 
11
Markfort and Ragueneau (2022).
 
12
The Biology of Corporate Survival, Harvard Business Review, January 2016, Martin Reeves, Simon Levin and Daichi Ueda (“companies operate in an increasingly complex world: Business environments are more diverse, dynamic and interconnected than ever- and far less predictable”).
 
13
2020 State of Corporate Law Departments: Effectiveness, Efficiency & Expanding the Guardian Role, Thomson Reuters Acritas 2020. 90% of surveyed participants indicated that controlling outside legal costs was a high priority and 41% of this group said that bringing more work in-house was a specific focus.
 
14
Tarascio, B. (n.d.). Depression among lawyers: The Statistics. Retrieved July 30, 2020, from https://​www.​modernlawpractic​e.​com/​depression-among-lawyers-the-statistics/​; Strathausen, Roger et al. “Lawyer Well-Being - the Silent Pandemic.” Liquid Legal Institute e.V., March 23, 2022. https://​www.​liquid-legal-institute.​com/​workinggroups/​lawyer-wellbeing/​.
 
15
Ibid.
 
16
James Carstensen, “‘Everybody Is Moving Everywhere’: Germany’s Once-Quiet Lateral Market Heats Up,” Law.com International, June 17, 2021, https://​www.​law.​com/​international-edition/​2021/​06/​17/​everybody-is-moving-everywhere-germanys-once-quiet-lateral-market-heats-up/​.
 
17
Emma Seppälä and Kim Cameron, “Proof That Positive Work Cultures Are More Productive,” Harvard Business Review, December 01, 2015, https://​hbr.​org/​2015/​12/​proof-that-positive-work-cultures-are-more-productive.
 
18
Law firms of varied sizes saw revenue and demand increase in the first 9 months of this year, with the largest players seeing the biggest gains, according to a Wells Fargo survey. Law Firm Revenue Shoots Up in Booming First Nine Months of 2021 (bloomberglaw.​com).
 
20
Ruth Marcus, “Nation’s Large Law Offices Thrive in Age of the Megafirm,” The Washington Post (WP Company, September 15, 1986), https://​www.​washingtonpost.​com/​archive/​politics/​1986/​09/​15/​nations-large-law-offices-thrive-in-age-of-the-megafirm/​52b6eb2c-598a-476a-bf45-43c8381f50b7/​.
 
22
Ruth Marcus, “Nation’s Large Law Offices Thrive in Age of the Megafirm,” The Washington Post (WP Company, September 15, 1986), https://​www.​washingtonpost.​com/​archive/​politics/​1986/​09/​15/​nations-large-law-offices-thrive-in-age-of-the-megafirm/​52b6eb2c-598a-476a-bf45-43c8381f50b7/​.
 
23
Sophia Gonella, “Mergers: A History and a Future,” The Student Lawyer, July 31, 2020, https://​thestudentlawyer​.​com/​2020/​07/​31/​mergers-a-history-and-a-future/​.
 
24
“On Notice: Teva’s Entire $330M Legal Spend Could Go To One Law Firm,” Perma.cc (The Legal 500, November 22, 2019), https://​perma.​cc/​JNN3-QELY.
 
25
Dan Packel, “‘The Wave of the Future’: Law Firm Panels Are Creating a New in-Crowd,” The American Lawyer, July 29, 2018, https://​www.​law.​com/​americanlawyer/​2018/​07/​29/​the-wave-of-the-future-law-firm-panels-are-creating-a-new-in-crowd/​.
 
26
“On Notice: Teva’s Entire $330M Legal Spend Could Go To One Law Firm,” Perma.cc (The Legal 500, November 22, 2019), https://​perma.​cc/​JNN3-QELY.
 
27
Ibid.
 
28
Ruth Marcus, “Nation’s Large Law Offices Thrive in Age of the Megafirm,” The Washington Post (WP Company, September 15, 1986), https://​www.​washingtonpost.​com/​archive/​politics/​1986/​09/​15/​nations-large-law-offices-thrive-in-age-of-the-megafirm/​52b6eb2c-598a-476a-bf45-43c8381f50b7/​.
 
29
“Ratio of 28:1 for Law Graduates to Available Legal Sector Vacancies,” mmadigital, April 8, 2019, https://​www.​mmadigital.​co.​uk/​ratio-of-281-for-law-graduates-to-available-legal-sector-vacancies/​.
 
30
Arthur Andersen, KPMG, Ernst & Young, PriceWaterhouseCoopers, and Deloitte.
 
31
David Wilkins and Maria Esteban, “The Reemergence of the Big Four in Law,” The Practice, June 11, 2018, https://​thepractice.​law.​harvard.​edu/​article/​the-reemergence-of-the-big-four-in-law/​.
 
32
Neil Rose, “Big Four ‘Cornering the Market for Legal Solutions, Not Advice,’” Legal Futures, September 2, 2021, https://​www.​legalfutures.​co.​uk/​latest-news/​big-four-cornering-the-market-for-legal-solutions-not-advice.
 
33
David Wilkins and Maria Esteban, “The Re-emergence of the Big Four in Law,” The Practice, June 11, 2018, https://​thepractice.​law.​harvard.​edu/​article/​the-reemergence-of-the-big-four-in-law/​.
 
34
Arthur Andersen was criminally indicted and declared bankruptcy—David Wilkins and Maria Esteban, “The Re-emergence of the Big Four in Law,” The Practice, June 11, 2018, https://​thepractice.​law.​harvard.​edu/​article/​the-reemergence-of-the-big-four-in-law/​.
 
37
Ibid.
 
38
Ibid.
 
39
Peter Bendor-Samuel, “The Big Four Accounting and Auditing Firms Are Becoming Challengers in Digital Transformation Services,” Forbes (Forbes Magazine, November 14, 2018), https://​www.​forbes.​com/​sites/​peterbendorsamue​l/​2018/​11/​14/​big-4-becoming-formidable-challengers-in-digital-transformation-services/​?​sh=​2f4081962a41.
 
41
Beecher Tuttle, “What’s Wrong with Work-Life Balance at the Big Four Accounting Firms?,” eFinancialCareers, May 5, 2018, https://​www.​efinancialcareer​s.​co.​uk/​news/​2018/​04/​work-life-balance-big-four.
 
42
Ibid.
 
45
Ibid.
 
46
Artificiallawyer, “Legal Tech Funding Hit £2.5 Bn in 2021 – Best Year Ever,” Artificial Lawyer, March 2, 2022, https://​www.​artificiallawyer​.​com/​2022/​03/​02/​legal-tech-funding-hit-2-5-bn-in-2021-best-year-ever/​.
 
47
Thomas Alsop, “Legal Tech Market Revenue Worldwide 2019-2025,” Statista, March 4, 2022, https://​www.​statista.​com/​statistics/​1155852/​legal-tech-market-revenue-worldwide/​.
 
48
“What Is Robotic Process Automation - RPA Software,” UiPath, https://​www.​uipath.​com/​rpa/​robotic-process-automation.
 
49
Ibid.
 
50
AI can be traced back to the 1950s. In 1954 Alan Turing explored the mathematical possibility of artificial intelligence, however given the limited computational power and alarming cost of computers at the time, the concept of building intelligent machines was not at all attractive.
 
51
Markfort and Zamorski (2020).
 
52
“Document Automation,” HighQ | Canada | Thomson Reuters, https://​www.​thomsonreuters.​ca/​en/​highq/​document-automation.​html.
 
53
“AI-Powered Legal Process Automation,” Luminance, http://​www.​luminance.​com/​.
 
54
“Machine Learning Contract Search, Review and Analysis Software,” Machine Learning Contract Search, Review and Analysis Software | Kira Systems, February 22, 2022, http://​www.​kirasystems.​com/​.
 
55
It is quite ironic that law firms provide all of this information free of charge each year, to arguably their biggest competitors.
 
56
PricewaterhouseCoopers, “Annual Report 2021,” PwC, 2021, page 15, https://​www.​pwc.​co.​uk/​who-we-are/​annual-report.​html.
 
57
Nick Eason, “The Legal Sector Faces up to Its Digital Future,” The Times & The Sunday Times, December 6, 2021, https://​www.​thetimes.​co.​uk/​static/​digital-data-tech-legal-sector-law-firms-automation-ai/​.
 
58
Frank-Jürgen Richter and Gunjan Sinha, “Why Do Your Employees Resist New Tech?,” Harvard Business Review, August 21, 2020, https://​hbr.​org/​2020/​08/​why-do-your-employees-resist-new-tech.
 
59
PricewaterhouseCoopers, “Annual Report 2021,” PwC, 2021, page 15, https://​www.​pwc.​co.​uk/​who-we-are/​annual-report.​html.
 
60
Mark A. Cohen, “Getting beyond the Tech in Legal Tech,” Forbes (Forbes Magazine, May 4, 2019), https://​www.​forbes.​com/​sites/​markcohen1/​2019/​05/​03/​getting-beyond-the-tech-in-legal-tech/​?​sh=​5b65e11716fc.
 
61
Karl-Heinz Rummenigge: “Wertschätzung wird eigentlich nur noch in Euros gerechnet und in nichts anderem. Man braucht nicht zu glauben, dass beim FC Bayern irgendein Spieler nicht wertgeschätzt oder gekuschelt wird. Wertschätzung ist eine Einheit namens Euro - sonst gar nichts.” (Kicker online, 31.01.2022 – 14:13: https://​www.​kicker.​de/​rummenigge-was-sich-suele-vielleicht-auch-mal-ueberlegen-sollte-888267/​artikel).
 
62
See Sect. 2.5 above.
 
63
Markfort and Ragueneau (2022).
 
65
Casey Sullivan, “After Clash, American Lawyer Posts Higher Profits for Dentons,” Bloomberg Law, August 27, 2015, https://​news.​bloomberglaw.​com/​business-and-practice/​after-clash-american-lawyer-posts-higher-profits-for-dentons.
 
66
Ibid.
 
Literatur
Zurück zum Zitat Markfort R, Ragueneau A (2022) Anwaltskanzlei der Zukunft. In: Breidenbach S et al (eds) Handbuch Digitale Rechtsabteilung Markfort R, Ragueneau A (2022) Anwaltskanzlei der Zukunft. In: Breidenbach S et al (eds) Handbuch Digitale Rechtsabteilung
Zurück zum Zitat Markfort R, Zamorski P (2020) AI+EI=Future. In: Jacob K et al (eds) Liquid legal - towards a common legal platform Markfort R, Zamorski P (2020) AI+EI=Future. In: Jacob K et al (eds) Liquid legal - towards a common legal platform
Zurück zum Zitat Replogle T (2017) The business of law: evolution of the legal services market. Mich Bus Entrep Law Rev 6(2):292–293 Replogle T (2017) The business of law: evolution of the legal services market. Mich Bus Entrep Law Rev 6(2):292–293
Zurück zum Zitat Yoon A (2014) Competition and the evolution of large law firms. DePaul Law Rev 63(2):697–719 Yoon A (2014) Competition and the evolution of large law firms. DePaul Law Rev 63(2):697–719
Metadaten
Titel
About Lawyers and Humans
verfasst von
Rainer Markfort
Tanja Podinic
Patrycjusz Zamorski
Copyright-Jahr
2022
DOI
https://doi.org/10.1007/978-3-031-14240-6_19