Virtual Viability: Are Virtual Firms Here to Stay?

by Nick Todd

Back in 2018, if I were a lawyer looking to venture into the realm of solo practice, I would have instinctively begun the search for an office. But in just three years, a worldwide pandemic has since proven that the collaboration and productivity of an office environment can be replicated–in some cases even enhanced–virtually.

Indeed, the early days of the pandemic taught many laws firms that the adoption of video conferencing and communications technologies such as Zoom and Slack were necessary for survival in an uncertain and ever-changing world.  It was a transition that was nothing short of remarkable, defying expectations of an industry that had been plagued by years of resistance to the online world.  But what was once implemented out of survival is now increasingly being implemented by choice–virtual workspaces can eliminate the high overhead costs that come with an office, give employees the freedom to work from anywhere in the world, and increase productivity [1].  And with the high cost of legal services also translating into an access to justice problem, it comes as no surprise that law firms are now beginning online.

But the transition to online work has also been met with challenges, and as much as we would like to believe that remote work will greatly improve our lifestyles, so too have many in the legal profession experienced the burnout that can result from constant virtual interaction [2]. Others insist that in-person interaction is essential for their well-being and mental health–that virtual interaction is simply “not the same” [3]. With benefits and drawbacks to online work environments, this begs the question: are virtual firms here to stay?

If we look at current trends, legal professionals are increasingly finding less value in their physical offices.  In a 2020 study conducted by Clio, both lawyers and consumers indicated that access to commercial office space was not a priority when it came to a law firm’s success [4].  Some might view this as a sign of the impending end of the retail office, but with covid mandates gradually lifting and lawyers returning to their offices, it appears unlikely that law firms will abandon physical office space altogether.  And this makes sense–for the moment, work essentials such as social events, physical interaction, and team management remain difficult to implement in a virtual environment.  Research is already underway as to why, with early explanations highlighting the finding that the regions of our brain which process behaviour, thoughts and emotions are more engaged when face to face as opposed to virtual [5].

Another challenge that virtual law firms must overcome to achieve longterm success is that of isolation.  According to the findings of a study conducted by the University of Berkeley’s Haas School of Business, managers throughout the pandemic adopted a “narrower, more controlling view of their work, with a greater focus on analytical and task-based activities at the expense of people development and relationship management” [6].  In other words, virtual worlds can cause us to become more insular and disassociate from our peers, and that can present significant ramifications for the working world.  Failure to provide a physical space for clients to meet with lawyers may even constitue a barrier to access to justice, as technological access continues to remain a problem in Canada and elsewhere.

As it stands, increased profitability and freedom at the expense of interpersonal connection and fulfilment may make virtual firms a tough sell for some.  It does seem, however, that virtual firms–at least in some capacity–are here to stay.  But for these firms to rise to any sort of prominence in the legal field, significant efforts to confront the social and access to justice challenges associated with virtual spaces must be made.  The legal industry may rise to the occasion to meet these challenges as it did during the pandemic–and I hope it does.  Remote work has the potential to create a real difference in people’s lives, but so too can it also take away from them.  Either way, it is clear that the pandemic has, at the very least, forever unsettled our relationship with the office.

COVID has indeed proven that online work environments are viable alternatives to the traditional brick-and-mortar office.  But as with any bet on the future, we must ask ourselves: is viable enough?

Sources:

[1] Wolters Skluwer, “The Rise of the Virtual Lawyer” (2019), online: <https://www.wolterskluwer.com/en-gb/expert-insights/the-rise-of-the-virtual-lawyer-traditional-vs-virtual-law-firms> at paras 1-9.

[2] Hannah Roberts, “Zoom and Gloom:  Lawyers Are Growing Tired of Endless Video Calls”, online: Law.Com International <https://www.law.com/international-edition/2020/07/22/zoom-and-gloom-lawyers-are-growing-tired-of-endless-video-calls/?slreturn=20211015033403> at paras 1-12.

[3] Ibid at para 15.

[4] Clio, “2020 Legal Trends Report”, online: Clio <https://www.clio.com/wp-content/uploads/2020/08/2020-Legal-Trends-Report.pdf> at 45.

[5] Alejandro Albedrop, Diana R. Sanchez, and Tamara Skootsky, “Navigating the Expansion of Virtual Communication at Work.” (2021) 59:1 TIP: The Industrial-Organizational Psychologist 1 at 3.

[6] Julian Birkinshaw, Maya Gudka, and Vittorio D’Amato, “The Blinkered Boss: How Has Managerial Behavior Changed with the Shift to Virtual Working?” (2021) 63:4 California MGMT Rev 5 at 21-22.