Exploring Law and Business: Insights from Julius Henry Cohen
Photo by Tyler Prahm on Unsplash

Exploring Law and Business: Insights from Julius Henry Cohen

Over 100 years' ago, American jurist and lawyer Julius Henry Cohen published "Law: Business or Profession?" In his text, Cohen sets out his argument for why law is different to business - that the duties to the state and the courts mean that practically, lawyers can't merely operate their law firms as businesses alone.

Cohen asserts that should lawyers' applied ethics falter, the business of lawyering will also fail.

Those sentiments were expressed in 1916! And I argue that they are still applicable today.

Whilst in Cohen's time lawyers didn't have the 6-minute unit, nor did they have sophisticated budget tracking to aid employed solicitors to meet their billing targets. Those lawyers also didn't have computerised systems to capture drafting, emails, appointments, reviews and redlining. But the lawyers of Cohen's era faced the same practical reality as lawyers of today.

It was a time where the individual lawyer was "teaming up" with other lawyers to create firms. These "hoards" of lawyers can provide the much-needed legal services to their clients in more efficient and effective ways than each lawyer could individually. Thus, the notion of the law firm was born.

We Need Law Firms (For Now)

Sustainable, ethical business practice is essential to law firm longevity. Until some other knowledge distribution model crops up (I'll leave that one for the business school to tackle), firms are still the dominant way in which legal services are provided to people.

Here in Aotearoa New Zealand, the generalist provincial law firm serves the local community in not just completing transactions efficiently and without fuss. The lawyers are trusted advisors, often dealing with the complexities of family trusts tied up in complex corporate trustee arrangements to protect the family legacy for the decades to come.

Being able to adequately deal with these very human legal issues requires lawyers to operate their law firms in a way that they readily adopt systems and processes which are within the domain of effective business management.

Law as a Business is therefore almost an artificial construct, defining a difference between the "lawyering" of advocacy in the courts, legal advice, legal analysis and review, and the nature of "legal service" delivery being effective communications, client relationship management and keeping the lights on. The business of law.

Why Study Law as a Business

Law students, whilst likely attracted to the law due to TV shows such as Suits, which showcase lawyer wealth and prestige, don't generally receive any business training as part of their formal legal education. As my sister, who has operated her law firm for over 16 years would say - "they finish law school and then the real legal training begins."

It's welcome to see this slowly changing. The graduate practical / professional education across both Australia and New Zealand may discuss law as a business, there is still a long way to go beyond a compression into a singular topic of "office and personal management".

In most jurisdictions I've come across, the focus is on a rules-based ethical framework. You have a set of duties as a legal professional and business is suggested to sit outside and below these.

When lawyers get ready for law firm leadership or to launch their own practices, there is some additional formal training. In New Zealand, the Stepping Up course provides an overwhelming amount of information about law firm business management. Yet, this is delivered for senior lawyers with there being a time limitation on using the benefits. Not only that, despite the course being relatively comprehensive, there seems to be little guidance on the common missteps or case studies for law firm business.

Lawyers are encouraged to make up a business plan and these are rarely revisited. The realities of legal practice is that law firm leaders and owners will return to the comfort zones of lawyering, with very few dedicating their time to the dreaded "business development".

Build the Skills

In my experience, this is a skills issue.

Without adequate management, firms are often left to merely survive. The businesses operate from one crisis to another, uniquely fragile to the volatility of the markets and communities they serve. It's exhausting (and scary!).

How can we as a society allow law firms, charged with providing the majority of us with access to justice, to be so vulnerable?

Now with the increase in the uncertainty, complexity and ambiguity of both societal expectations and rapid legal technology advancement, the business of law is more important than ever.

Perhaps there's a way to take Cohen's wisdom and apply it to the 2020s?

If you find this newsletter useful, please consider sharing with a friend or colleague. If you're inspired and want to discuss, I'm open to all sorts of conversations around law, lawyering, technology and wellness.

Julia Ngapo

Supporting Women in Business to Find and Follow Their True North | Holistic Growth and Performance | Business Coach | Executive Coach | Fellow of the Institute of Leadership | ILM Level 7 | Reiki Master

5mo

Really insightful article. I think, traditionally (and from my experience training as a Lawyer in the U.K., and then working in an affiliated field for many years) the legal profession has always been "late to the party" in terms of business development. Certainly in today's "candidate-led" employment market, this has to change. There is far too much competition for law firms to simply rely on existing business and word of mouth, they have to move with the times and accept that business development is very necessary in terms of both future business and talent acquisition.

Impressive insights on the intersection of law and business ethics. 👩⚖️ Chantal McNaught

Like
Reply

To view or add a comment, sign in

Insights from the community

Others also viewed

Explore topics