In March, the Solicitors Regulation Authority (SRA) announced it had licensed the first three law firms to operate as alternative business structures (ABSs). It represented the first time that a non-lawyer could manage or have an ownership interest in a legal firm.
So far the SRA has received more than 130 applications for ABSs. Its chief executive, Antony Townsend, has described the act as a "huge milestone" by introducing more competition, competitive pricing, higher standards and more choice.
While it is commonly held there are too many solicitors, competition is gentlemanly. Law firms tend to sell themselves in similar ways, as a quality, personal service, making it difficult for consumers, or 'clients', to distinguish between them.
The Legal Services Board and its consumer panel are looking at the problems consumers have in identifying quality. Research shows people focus on service rather than the ability of the lawyer to do the job, which is more difficult to judge. They have a degree of respect, bordering on awe. Hence, the traditional firm has been in the envious position of being able to charge what it likes and treat clients how it wants.
It is into this void that solicitors fear brand names will come, bringing a service that will win the loyalty of a public intimidated by the legal process. A recent survey by YouGov found that 60% of people would consider buying legal services from named brands, such as Barclays or Kwik Fit.
Conventional wisdom suggests individual consumers and smaller organisations could be the early adopters of new provision. I'm not so sure. In some areas of legal support, this market has already moved to new service models. The more interesting development could be that medium and large organisations follow. After all, service innovation is more readily explored as budgets tighten.
For me, the question is about whether the traditional legal industry can adapt. Only when law firms place customer needs at the heart of their business will real change occur. Either that, or the consumer and business markets will ebb to the new providers of legal services, which can offer what the customer really wants.
Peter Byrne is managing director of Employment Services Partnership and director of HR Legal Service.
