3 Flexible NewLaw Alternatives for SMEs to Increase Legal Value.

Understanding NewLaw: The Evolution and Distinction from Traditional Legal Services

There has been a lot of talk about NewLaw/ALSPs over the last few years, with many new legal service providers popping up under this premise. But what does “NewLaw” actually mean? And importantly, what are the alternative services it offers, that are different to what already exist – namely “BigLaw” or "Traditional Law" legal services?

In this article, we attempt to explain the concept of NewLaw and then outline possible alternative “people” models which fall under the umbrella of the NewLaw concept. Essentially, NewLaw all comes down to increased flexibility and innovation, designed specifically for the needs of the client.

What is NewLaw?

A lot has been written about "what is NewLaw?", suffice to say that it offers alternative legal solutions to the Traditional Law model. NewLaw service providers work with clients to create a working model which is completely tailored to the client – using flexible lawyers or legal consultants, innovative LegalTech, simple and streamlined processes and importantly, up front fixed fees or alternative fee arrangements. Dr. George Beaton of BeatonCapital, a highly regarded commentator on NewLaw theory, offers further explanation of the NewLaw model here.

What are the NewLaw alternatives for legal support?

The NewLaw “people” alternatives, are based on using legally trained people to efficiently and flexibly fill needs in its team, normally on a short-term basis or for a set period. NewLaw's Legal experts may be needed to fill a temporary vacancy in the business, or a big matter has come through and more legal staff is needed but just for a specific project (deal or litigation), or the company may only need/have budget for legal counsel once or twice a week. More importantly, these temporary legal professionals from NewLaw providers can offer superior legal consultation and flexibility compared to traditional hiring models. The NewLaw approach is all about flexibility and creating the solution which works for the client.

Three of the key ways in which the NewLaw “people” model is currently being utilized in the market are:

1. On-demand lawyers/legal consultants

On demand lawyers/consultants are best utilised where an in-house legal team or business requires support for specific projects, maternity or other leave cover, head count freezes, new market entry or new regulation compliance support. The NewLaw allows businesses to fill any gaps and ensure business continuity.

2. Virtual General/Legal Counsel

Many start-ups or SMEs often have a limited legal budget, or don’t require permanent resources. The major benefit of NewLaw for them is in virtual legal counsels as a cost-effective way to assist on an ad hoc basis, part-time or as a package deal (i.e. 20 hours of advice for a set price on a “as required” basis). This approach not only aligns with the principles of NewLaw [transparent pricing] but also assists to reduce travel costs through the use of remote resources.

3. One-off matter support

Lawyers or consultants can be used by clients for their one-off matters. This could be Mergers and Acquisitions (M&A) transaction support, structuring of investments, business set-up, technology projects or disputes and contentious matters.

Who are the NewLaw “people”?

It's important to note that the legal consultants who are working with NewLaw service providers are highly talented legal professionals – normally with many years of private practice and/or in-house experience under their belt. Therefore, they can bring a wealth of knowledge and skills to the table, often combining traditional legal acumen with a forward-thinking mindset that embraces legal technology. NewLaw peoples’ experience allows them to offer efficient, cost-effective solutions while maintaining high standards of legal service. 

The workforce has changed and people are now demanding more flexibility in their working lives. The NewLaw model not only offers alternatives to clients, but also to people. We discussed the rise of the “Gig Economy” and the demand by professionals for more flexible working arrangements in a previous blog, The Gig Economy: Attracting Top Flexible Legal Talent.

Benefits of Adopting NewLaw to Your Business

1. Cost Efficiency

NewLaw firms often operate with lower overhead costs compared to traditional law firms. This allows them to offer more competitive pricing for legal services, making legal assistance more accessible to a broader range of clients.

2. Flexibility and Scalability

NewLaw models are typically more flexible and scalable, allowing firms to quickly adapt to changing client needs and market conditions. This flexibility can include offering unbundled services, alternative fee arrangements, and on-demand legal support.

3. Enhanced Use of Technology

NewLaw firms leverage advanced technologies such as artificial intelligence, automation, and data analytics to streamline processes, improve accuracy, and enhance service delivery. This can lead to faster turnaround times and more efficient handling of legal matters.

4. Client-Centric Approach

NewLaw places a strong emphasis on client satisfaction and experience. By focusing on understanding client needs and delivering tailored solutions, NewLaw firms can build stronger client relationships and provide more value-driven services.

5. Access to Specialised Expertise

NewLaw models often include networks of freelance or contract lawyers with specialised expertise. This allows clients to access high-quality legal advice and representation in niche areas without the need for a full-time in-house legal team or traditional law firm retainer.

Adopting a NewLaw “people” approach

The key point to remember when considering NewLaw solutions, as a client is that YOU drive the discussion. The benefit of NewLaw lies in its promise of flexibility and innovation. Also, given the lean, low-overhead model, at a much more competitive cost and value. NewLaw should never be restricted by existing models, never a “this is what we have – like it or lump it!” attitude. NewLaw service providers aim to constantly evolve their services to make sure that it is the most effective and cost-efficient solution for the client.

But NewLaw is not all about people... we haven’t even touched on new LegalTech in this blog. Next time!