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Writer's pictureLegal Business World

Belgium and Legal Innovation: A Perfect Storm for Change


Lawyers are an old-fashioned bunch, and more so in Belgium than in many other countries. Belgian lawyers are still called by their honorary titles "Maître" (in French) and "Meester" (in Dutch). They still wear lawyers' robes (gowns) when pleading before most courts. And some still seem to believe that if a client calls upon his lawyer (avocat / advocaat), it is a privilege if the lawyer takes on his case.

With each generation come new ideas, though, and it seems that the legal profession has got its breath of fresh air lately, especially in fields affecting business lawyers and business law firms. From changes to the rules on the marketing of legal services to the entrance of new players on the market, it looks like all the elements are there to complete a significant transformation of the legal profession.

First, there was the change in the relationship with the client. It's no longer a privilege to have a lawyer - instead, lawyers and other legal professionals are fighting over the privilege of having the client. Pitches, proposals, beauty contests - while law firms hate them, they have learnt to play the game. Next to that, firms have discovered what "business development" and "marketing" mean. They organise or sponsor social events and seminars with the aim of being visible, of meeting prospects and of being seen as experts. Then there's the online dimension, too: too few have realised that having a good and useful online presence is necessary nowadays, but they are learning, and nowadays several law firms offer much advice for free on their website.

Next, there's been a change in what a law firm can charge the client, and how. No one expects their plumber to tell them "I don't know how much that will cost - I'll do the work and then let you know" - and no one expects their lawyer to say that either. I am told that things were different before the financial crisis of 2008, but despite being nearly a decade further, some still express surprise at clients' increased demand for budgets and binding fee quotes. The simple fact is lawyers cannot (or can no longer?) expect their clients to sign a blank cheque. They have to assist clients in finding a way to make their legal fees predictable, as clients have budgets too.

In addition, the landscape of the legal profession is changing. It used to be that every legal professional was a lawyer. Today, though, there is an increasing number of business legal advisors in Belgium who do not litigate and therefore don't have to be registered with the Bar - or be bound by its code of ethics. In fields such as intellectual property and information technology law, there are now several smaller and larger structures that market their services and products more aggressively - and are less expensive. A real driver for innovation, they are starting to eat away at the market share of firms that, for the most part, have been unable to adjust.

Another change that larger law firms in particular are having to tackle concerns the outlook of the younger generations. Ask anyone under thirty who has worked at least one year in a large law firm where they see themselves in ten-fifteen years, and the chances of them answering "hopefully a partner in this firm" are exceedingly slim. In a way, the greater proximity of younger partners with associates may have had a negative effect, as many associates are quickly disillusioned with the aura surrounding partnership when confronted with the ugly side of law firm politics. Next to that, many demand that a law firm treat them more as human beings, not billable-hour-machines, but few firms are able to look beyond billables and to propose flexible arrangements. Unsurprisingly, many associates with great potential in terms of business development or legal innovation leave law firms to work as in-house counsel or legal advisors - unfortunately for the firms themselves. [As a colleague of mine once remarked with a sly smile that "once the disgusted ones have left, only the disgusting remain".]

And then there's technology. Lawyers have adopted e-mail, word processing and document management systems, but the next series of technological innovations are starting to appear in Belgium. Document automation seems to be the next big thing in Belgium. I've created a document automation tool (that also integrates some knowledge management functionality) that I've started to use for my own work and that I am thinking of licensing; next to that, I know personally of at least three major publishers that are thinking of or working on similar projects. Even the French-speaking Bar is thinking about going in that direction. And clients are starting to realise that for many lower-end tasks, they do not need a lawyer, let alone an in-house counsel - precisely thanks to this kind of technology.

Any of these changes separately is already a form of legal innovation compared to yesterday's legal practice. But put them all together, and you start to see just how different tomorrow's legal world can be compared to yesterday.

First, in terms of legal work, lawyers will have to focus on their real added value - not "simple" contracts but strategic advice and complex litigation management. Clients will be able to get better bang for buck, obtaining high-quality, "simple" documents for a token fee (likely from legal advisors due to the Bar's rules and due to law firms' resistance to change) and then requesting a lawyer or legal advisor's review when the situation does not fall within the relevant parameters. As the developer of an Interest Calculator for Belgium and of a document automation tool, I can also imagine ways to largely automate debt recovery processes. And the era in which lawyers only provided "services" will be behind us, with "products" now also part of the offering.

Next, while this is even more hypothetical in Belgium, the changing legal landscape could also lead to innovation in terms of law firm management. Through the increasing competition with "business" structures, partners - successful lawyers, but not necessarily good managers - now face counterparts with actual managerial experience and flair. Couple this with client demands on the one hand and associates' disinterest in partnership and law firm politics on the other hand, and this could pave the way for a new breed of law firm (as has started to appear in the UK): one where the decisions are taken not by lawyers but by actual managers, creating a more dynamic and potentially more enduring structure.

The main question in this context is whether the Belgian legal world is ready. The Bar today shows a certain willingness to embrace certain changes, but the impetus for true change will likely come from without - i.e. from legal advisors and clients.

That is not to say that law firms that do not adapt will never see 2026; however, they will likely be missing a good part of the talent that will drive the change elsewhere (or that will be driven elsewhere by these changes)… and they may not be as relevant as they are today.

Perhaps it all boils down to vision. In this perfect storm for change, you need to see all that is coming and navigate through or around it. Ignore the change indicators, sail blind, and there's a greater chance you'll capsize.

This article was originally published as a LinkedIn post by Peter Craddock

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