5 tips for running a NewLaw firm

https://www.lawyersweekly.com.au/newlaw/22467-5-tips-for-running-a-newlaw-firm

The founder and principal lawyer of Legalite, Marianne Marchesi, shares her thoughts and
insights into running a successful NewLaw practice.
NewLaw firms are creating a wave of disruption in the legal industry. Often characterised by their points of difference to the

traditional law firm, clients and lawyers alike are beginning to seek out NewLaw firms as a real alternative to the ‘old’ way of
delivering legal services.

If you’re thinking of setting up a NewLaw firm, below are some tips to help you successfully establish your practice:

1. Client-centric

First and foremost, a NewLaw firm is client-centric in its approach. The following four tips all hinge on this one principle – that
is, to truly put the client first in all of your decision-making and to ensure a level playing field between the firm and the client.

To be genuinely client-centric, all aspects of your business model should be justified by reference to the client. Ask yourself what
benefit your client is getting from a particular action, and keep your clients at the forefront of your strategy.

2. Pricing

Perhaps the key differentiator of a NewLaw firm is that it operates under an alternative pricing structure. Hourly rates are viewed

by many clients and an increasing number of lawyers as a hindrance to trusted client relationships and a driver of inefficiency,
and are being scrapped in favour of pricing structures that offer true transparency and certainty.

In order to implement alternative pricing structures, such as fixed fees or retainers, you must rewire your thinking and stop

associating time with value. While time spent on legal work may be a factor in pricing your services, it is by no means the most

important one, nor does it represent an accurate reflection of value to the client. Value-based pricing offers flexibility, allowing
you to take into account all factors that might be relevant to a particular matter, such as:

 Complexity of the work

 Importance to the client

 Unique skills required to undertake the work

 Competition in the marketplace

 Urgency

 Cost of overheads
 The client’s budget

By its very nature, value-based pricing requires lawyers to carefully consider each client’s particular circumstances when pricing,
which ensures that clients are not simply being offered a ‘set menu’.
The benefits of this pricing structure should not be understated – certainty in pricing has positive flow-on effects for the firm as a

whole, including increased flexibility, seamless invoicing (no more dreaded “billing days”), fewer debtor issues and most
importantly, better client relationships.

3. Internal culture

A natural follow-on from adopting an alternative pricing model is a happier workplace, unencumbered by internal budgets and
time recording pressures.

A NewLaw firm allows its team the freedom to be productive without having to account for each six-minute unit of their day.

This allows staff to put genuine effort into “non-billable” (but important) tasks which often stay at the bottom of the pile when
working to billable targets, such as their own professional learning and development, marketing and client relationships.

Beyond this, a NewLaw firm fosters a culture of flexibility and puts complete trust in its team. With the various technologies
available to businesses today, there’s no reason why staff cannot work remotely.

To encourage and nurture this culture, make sure you have appropriate IT systems in place (including virus protection) and

consider how often you need ‘face-to-face’ time with your team. This will help both you and your team achieve a work/life
balance in the absolute truest sense of the phrase.

4. Constantly innovate

Continuous innovation is the hallmark of a NewLaw firm. This term seems to be a buzzword at the moment, but really, NewLaw

is simply a new way of thinking – whether that is as to how you price your services, how you drive efficiency within your firm or
how you manage your team.

Technology and the competitive marketplace are incredibly fast-paced. Innovation doesn’t just apply to technology, but to your

business model itself. It is about adapting to clients’ needs, and adapting quickly. In that sense, “disruption” is not a quick fix but
an ongoing process.

To innovate, you need to challenge the norm and encourage innovation from your team members. How you do this will depend

on your firm’s unique culture and style of thinking – that is, you will need to think creatively and be innovative to develop your
own solution.

5. Be agile

The legal industry has lagged behind other industries in terms of disruption. This is starting to change as NewLaw firms are
leading the way and demonstrating how the industry can adapt in order to compete.

As a NewLaw firm, it is essential to adopt an agile business model and to be flexible in your thinking. Traditionally, the first

order of business of a start-up has been to come up with a comprehensive, lengthy business plan. The agile, creative approach is

to replace the business plan with a ‘vision’. This vision can act as a guide for every business decision you make and your short-

term and long-term goals, while not tying you down to a predetermined plan. As a result, your ‘business plan’ becomes
necessarily agile in itself, allowing you to change your business model if you need to and introduce new ideas (to innovate).
The success of your NewLaw firm will ultimately be a combination of a few factors and will no doubt evolve in a way which

suits your own individual style. Part of the appeal of NewLaw firms is that no two things will look the same, unlike the cookie-

cutter style of traditional law firms. More importantly, establishing (and working in) a NewLaw firm provides flexibility and

freedom that traditional firms simply do not, and because of how they are structured, cannot offer – so remember to enjoy the
ride!

Marianne Marchesi is the founder and principal lawyer of Legalite, a NewLaw firm established in February 2017. Six months

into trade, Marianne was shortlisted for the Lawyers Weekly Women in Law Awards in two categories, Sole Practitioner of the

Year and Executive of the Year. In late 2017, Legalite was named ‘Best Law Firm (Business Clients - Australia)’ in the inaugural
NAB Professional Services Awards, an award that was judged entirely by clients.