'In 10-15 years we will not be trusted advisers' - why firms need to improve their game
Senior City lawyers including Slaughter and May's Nigel Boardman weigh in on the future of lawyers as trusted advisers
February 01, 2016 at 07:04 PM
3 minute read
Law firms risk losing their trusted adviser status according to leading in-house and private practice lawyers.
Well-known names including Slaughter and May partner Nigel Boardman, Vodafone general counsel (GC) Rosemary Martin and DLA Piper co-chair Sir Nigel Knowles were among those debating the future role of private practice firms at a recent roundtable hosted by consultants Graham Gill.
Boardman warned that the increasing cross-selling of multiple services to clients, including non-legal services, is putting law firms' trusted adviser status at risk.
He warned: "We [could] lose our trusted adviser status because we are putting our own interests ahead of the interests of the client. In 10-15 years' time, we will not be trusted advisers. We will be an audit firm, unless we are very careful."
Most of the CEOs I know see law as a difficult thing that needs to be sorted out, as opposed to a business advantage
ITV GC Andrew Garard, made the point that the trusted adviser has now moved in-house. "Because of the way the private practice profession has gone in the past 10 years they have ceded ground and the trusted adviser is now the general counsel," he said.
Rosemary Martin, GC of Vodafone agreed with this arguing that while partners may want to think about themselves as a trusted adviser to the board, in fact they would be better off concentrating on the role they can play advising GCs and empowering them.
She said: "There are a lot of people who would be natural ears, before the external lawyer, as the trusted adviser. Most of the chief executives I know still see law as a difficult thing that needs to be sorted out, as opposed to a business advantage that is going to make us win."
The conversation also touched on the changing role of the trusted adviser, with Knowles pointing out that the rise of younger, tech companies, with younger leaders is changing the face of the trusted adviser. He added: "People want to be associated with people who are business and sector savvy, who they like, get on with and trust, and there is some chemistry there."
Matthew Kellett EY's head of financial services law said: "I would not rule out future generations being equally trusted by their peers and clients, but the route to doing that may be a bit different."
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