I’m commonly asked what effect I believe the GFC had on the profession.
A decade on its effects are still evident. Some negative, but some have had a positive effect too.
I liken the GFC as causing a worldwide metaphoric tsunami of disruption and change which swept through all businesses across all countries. It didn’t discriminate between countries, nor industry sectors nor whether the sector dealt in the production of goods or services. It lay bare every business. It caused them to be exposed.
What was left in the wake of the aftermath was the re-building stage and those businesses which were fundamentally sound going into the GFC had emerged even stronger and better than before. It was like they had been subjected to a metaphorical blowtorch and were forged and galvanized in the process or those businesses which couldn’t withstand the intensity and became unglued.
What now remains are those which survived and are wiser and better for the experience and those newly emerged businesses which have been spawned from the GFC to take on the new business landscape post GFC.
In addition to the disruption to business the GFC caused there were other disruptors including those impacting legal services including:-
- The rise and rise of the in-house lawyer;
- Procurement processes once reserved for Government being applied to the provision of legal services;
- Alternative pricing models in addition to time based billing;
- The advances in information technology and the Cloud, Artificial Intelligence, internet enabled legal services and Social Media;
- Legal Process Outsourcing;
- Generational/demographic factors such as Generation Y and the Millennials;
- The dissemination of corporate and Government clients from an oligopoly of establishment firms and the emergence of alternative legal services models including NewLaw;
- The arrival of U.K. and U.S. firms to Australia with an intention of aggressively acquiring market share and target from a platform of political stability and an English speaking country with geographical proximity to the exponentially growing and lucrative economies in Asia including China, India, South Korea and Japan and spread their business risk from traditionally focusing only on the European and domestic economies and clients operating within them;
- Partners anticipating retiring now remaining longer in the Partnership;
- The emergence of new legal services business models in addition to the traditional Partnership business model;
- The loss of the levels of activity of junior and intermediate explorers in the Mining and Resources sector removing one of the key economic drivers and in turn adversely affecting all those servicing the Mining & Resources sector including legal service providers;
- Political uncertainty at State and Federal levels and with it the uncertainty of policy and the consequent legislative and regulatory frameworks within which business is conducted leading to consumers and businesses losing confidence. Lack of confidence stifles decision making because risk considerations escalate and economic activity then comes off its trajectory; and
- The flexible workforce and resulting remoting, job share, part time, hot desking and open plan office layouts.
I’m frequently asked by Partners at firms if I believe the post GFC business landscape is an aberration or merely temporary and consequently if there’ll ever be a return to the pre-GFC business conditions. Given the overwhelming number of business disruptors and how many of them are international in proportion then I believe what we have now represents the new normal.
A Darwinian like new order which is here to stay and where businesses which have survived the GFC or sprung from it learn to adapt to survive. It’s no longer a case of survival of the biggest, fastest or fittest. It’s those which are best able to learn, re-invent, re-model, understand and adapt accordingly which will survive in a post GFC world.
Have you experienced any disruptors in the aftermath of the perfect storm ?
Ian Dhu
Ian’s an industry expert in the recruitment, career development and retention of lawyers.
Over the last 30 years Ian’s successfully placed numerous lawyers.
Career conscious lawyers contact him for his informed, objective and accurate market advice when making considered and confidential career enhancing transitions involving private law firms, corporations and Government.
Organizations requiring lawyers collaborate with Ian.
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