How Euclid Law Became “The Competition Law Firm”
When Euclid Law was established in 2015, we knew that to do something new, you have to first stop doing something old. We created the UK’s first dedicated competition law firm.
For us, that meant rejecting the established law firm business model, which we felt was no longer working in the interest of clients.
We did this by taking the traditional pyramid structure (partners at the top, propped up by an ever-changing group of associates) and, quite literally, flipping it on its head.
We adopted a senior-led business model and thereby eliminated the need for junior and mid-level associates. The reasoning for this was quite simple: the archaic top-down model does not provide what clients need and increases cost. It also places undue pressure on junior and mid-level associates and ultimately alienates all concerned.
Here is the rationale:
- In the traditional geared law firm model, clients pay primarily for the time of junior and mid-level lawyers (with billable targets typically set at 8.5 hours a day), without any reference to efficiency or the quality of the actual work-product.
- This system primarily benefits the partners, with Magic Circle profits per partner typically above £1-1.5m.
- Meanwhile, this system has a high human cost. The main ‘fee earners’ – the junior lawyers – doing most of the work may have limited prospect of advancement. They may have to sacrifice family life, and possibly their mental and physical health, to sustain the pyramid, resulting in burnout and high turnover (churn rates are typically 33%).
- And the story repeats itself, over and over again, with partners unable to leave because they depend on the high earnings for their lifestyle and junior lawyers working all hours to sustain and advance their careers.
WE DISRUPT THE PYRAMID
Five years ago, Euclid Law defiantly challenged this legacy approach by adopting a flexible-fee, partner-led fee structure where senior lawyers do the work, assisted by outstanding paralegals.
Disrupting an established value chain may sound logical and simple – easy even. However, flipping a heavy, ancient pyramid required innovation, tenacity and, above all, adaptability.
Like Australia’s cane toad, Euclid Law had to adapt to this new environment by creating a different business model in order to survive, and then thrive. We are now an established part of the ecosystem.
This is how we did it…
WE ARE DIFFERENT
First, Euclid Law moved away from traditional fee structures and instead introduced a flexible fee structure that places overall value over billable hours.
This was based on our inherent belief that clients do not primarily measure the value of our services according to the time we spend and we likewise do not measure the performance of our lawyers according to the hours they record.
We are intolerant of costs. We do not have a lavish reception area, as clients should not be paying for that. In summary, our charging structure is client-centric.
WHAT WE DO
As a 4th Industrial Revolution law firm, we rely heavily on bespoke technology –especially the latest artificial intelligence (AI) tech – to decrease administration, improve efficiency and to deliver cutting-edge client solutions.
This savvy use of technology allows us to cut costs and offer clients partner-led innovative solutions for a fraction of the cost of traditional law firms.
If we believe some aspects of the work can be done more effectively by the client, we say so, and we encourage and guide our clients to adopt the latest AI technologies to help them. This empowers the client while simultaneously reducing costs.
But technology alone does not ensure cost effectiveness or efficiency. We also have to be extremely strategic and apply our lawyers’ high level of expertise, in order to produce results in a shorter amount of time and with fewer resources. This means Euclid Law has had to adapt to become more agile, innovative and flexible in its approach to cases.
Our use of technology, combined with our unique strategy and client empowerment, enables Euclid Law to offer a flexible fee structure that is adaptable to each case, without sacrificing efficiency, speed or, most importantly, excellent legal advice.
WHY WE DO IT
We’re as transparent about our motives as we are about our fee structure: Euclid Law’s inverted pyramid business model is unashamedly less profit-driven for the partners than the traditional law firm model.
Euclid Law is genuinely dedicated to obtaining the best results for clients in the most cost-effective and time-efficient manner. However, evolutionary theories aside, it’s not entirely altruistic…
As progressive strategists, we know that this way of doing business is the future. From years of experience at the world’s top law firms, we are acutely aware that today’s clients are looking for individuals who offer true value and experience, rather than the brand name-credentials of legacy firms, and real partner commitment, rather than a top-down, largely hands-off approach.
In short, we know that the world is rapidly changing, and we are cognisant that if law firms do not adapt they will become evolutionary failures. Euclid Law is here to stay and we know that our approach is the right one for clients.
We are unashamed advocates of putting people before profits, and this includes our clients and ourselves: the partners and our colleagues.
We have consciously chosen a business model that is not as hours or profit-focused as traditional law firms.
For us, this means a working environment that facilitates the highest level of service to our clients, while also valuing diversity [and intersectionality], endeavouring to respect everyone’s evenings and weekends, family and parenting obligations and empowering staff to pursue their own interests and goals.
We have all experienced the downsides of a profits-, targets- and hours-first model first-hand. We’ve also done the maths and it’s simply not worth it – not for the partners, our team or, most importantly, our clients.
This is why Euclid Law is The Competition Law Firm of the Future.