There are times when bigger may be better

For many women we are taught to assume that bigger is by no means better.  But the reality is that there are many times when the opposite is true. Diamonds, wardrobes, reputations and bottom lines are all great examples. Like anything, it is a question of fact and working out what best suits the situation.

Many small to medium-sized businesses eschew large legal firms, believing not only that bigger isn’t better but that big firms are not for them for a range of reasons including cost, firm structure and too much detailed analysis.

One of the most common reasons is a belief that large firms will be too expensive. Mistake number one – bigger does not always mean more expensive. In fact, large firms can often work out to be more cost effective overall because they are more likely to have a range of staff, of various experience levels and charge out rates, who can perform the work at the level (and cost) most appropriate to the particular instruction. As opposed to offering one person at a set rate for every telephone call, email, letter or document review.

While most firms will have their own precedent system or template documents, another advantage of a large firm is that there is often more staff which therefore significantly increases the chance that the issue you may have has been dealt with before (or a similar issue). This reduces the need to ‘reinvent the wheel’ for every new client instruction and means that advice can be provided in a cost-effective way. Your work can often be provided faster than if it was being created from scratch and faster can often equate to costing less.

Most legal practitioners are aware that timeliness is often important to clients, regardless of their business size. When you want legal advice, you want it when you need it, not necessarily when the law firm tells you they can provide it. Another advantage large firms offer is that they often have larger staff numbers and carry capacity to ensure they are able to accept large instructions from key clients when they come in. This means that work is able to be delegated appropriately and turned around quickly to meet client deadlines.

Another belief is that large firms will insist on providing detailed legal analysis in written form that is unwanted and not required. While large firms with specialists in key practice areas are undoubtedly well placed to provide detailed legal advice on complex areas of the law, the reality is that not all instructions necessitate detailed written opinion advice. Large firms are just as willing as their smaller counterparts to provide advice in the form sought by the client; be it by email or by telephone. Many legal practitioners will prefer to put their advice to you in writing to ensure it is clear and to minimise the chances of misunderstanding or misinterpretation. That aside, it is a misconception that large firms will only provide advice in lengthy written form.

The reality is that in the current economic climate, there is increasing competitiveness across all firms, regardless of size, to maintain their current client base and to obtain new clients. Clients are able to be, and are being, more demanding in terms of deadlines, reporting and fee transparency. The provision of legal services is just that – the provision of a service and with that comes ensuring satisfaction with the service. That doesn’t mean guaranteeing an outcome, but it does mean ensuring that the client’s expectations are met in terms of timing and ensuring that the fees charged represent value for the work performed.

Like every supplier relationship for a business of any size, it is about doing your homework, choosing a lawyer or a law firm that understands your business and who will provide you with commercial, valuable and pragmatic advice. Building trust is also important. If you are worried about fees, ask for an estimate and be as clear as possible about what you want and when you want it.

Finally, keep an open mind. Sometimes, bigger can be better or, at the very least, appropriate and cost and time effective.

Jennifer Mills and Bridget Smith
www.minterellison.co.nz