From a quarter of a century to the 21st Century: Reflections on the future African law firm
Innovation was until recently not a word associated with law firms. Twenty-five years ago, clients found lawyers through recommendations or contacts by other lawyers or friends, and lawyers had little in the way of branding or marketing strategies.
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Work was slow and tedious – research was done with dusty old textbooks and volumes of law reports. But there may have been one lawyer per district, so it was easy for them to find work and lawyers hardly competed with each other.
But we live in a different world today where there is increasing competition between lawyers, including those from the major international law firms who do increasing amounts of African advisory work.
The 21st century is posing a major challenge for lawyers across Africa: Transform into businesses and modernise, or be left behind.
The transformation of English law firms
Anyone working in a City of London law practice in the late 1990s or early 2000s (as I was) recognised the profession undergoing a major transformation. The British economy was reverberating from the boom (and occasional bust) of the 80s and 90s.
Many major law firms expanded rapidly and recruited armies of trainees on substantial salaries, as well as poaching whole departments from other firms. They also became ultra- high-tech, automating many of the processes in the firm and developing a heavy reliance on information technology.
The reasons for this would be the subject of many a thesis, but essentially, the market expanded as a result of the growth of the economy, with businesses becoming increasingly multinational and requiring more complex legal advice.
This in turn led to law firms increasing their capacity to produce high quality work at the speed and quality required of their ever-demanding clients. The growth of the economy also led to more firms fuelling competition between them.
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Now, a similar trend is being experienced across the African continent. Rapid growth of our economies and an increase in lawyers ought to drive up standards. In a similar fashion to the American law firms entry into the English legal market, there is potential for a greater influx of multinational businesses into African economies, and they will come armed with their trusted international law firm advisors. These threaten to transform the legal profession in countries such as Ghana.
Are international law firms a threat?
Currently, many indigenous firms do not see international law firms as a threat. They receive work from multinational businesses either directly or through these firms. The international firms cannot generally advise directly on local law issues due to strict rules forbidding foreign lawyers from doing so. Additionally, many international firms shy away from setting up local branches, preferring to have close ties with strong indigenous firms. Nevertheless, as African economies grow, it is perhaps inevitable that in the future, such firms will seek to compete directly with indigenous firms and win a greater share of the local market. The trend was started by the major accountancy firms, and there is no reason why law firms will not follow.
If this happens and competition opens out between domestic and international firms, will the indigenous firms stand a chance?
Can local firms compete on the international stage?
As with the changes experienced in the English legal market, Ghanaian firms will have to overhaul their outlook and move with the changing times in order to compete. This will involve modernising rapidly.
A modern law services business requires a large team of practitioners working together as a firm, able to share risk and reward. The firm should be greater than the sum of its lawyers: Retirement of a senior partner should not lead to the death of the firm. Recruitment should be with a view to growth rather than seeking to exploit junior lawyers desperate for a break. Growth in turn requires a focus on continuing education and training for the lawyers.
At Bentsi-Enchill Letsa & Ankomah, the firm’s motto is “Knowledge comes to those who seek it together”. Lawyers working together can share knowledge and expertise.
The supportive environment of a “firm” rather than a collection of individuals also allows for specialisation so that individuals or groups within the firm can focus on developing the skills required in particular disciplines.
The strongest local firms also have a clear international strategy. They see international firms as an opportunity to collaborate and share knowledge. They allow their lawyers to go on secondments and invite reciprocation. Working together is a collegiate exercise rather than fighting for a larger share of the pie.
Finally, modern law firms need to embrace technology. The Internet allows for use of the cloud. Law libraries and client’ files can be stored online reducing paper use, freeing space and increasing productivity.
Technology allows the firm to improve its clients care and offer better value. All of these make the firm more competitive.
In essence, modernisation means growth, education, specialisation and innovation; prerequisites of the 21st Century international African law firm.
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The writer is an English and Ghanaian qualified lawyer with the law firm, Bentsi-Enchill Letsa & Ankomah, which celebrates its 25th anniversary this year. He is also a consultant with international law firm Addleshaw Goddard LLP.