What is a managed legal service?
3 min read
This article elaborates on the concept of managed legal services. It provides a definition and detailed explanation of the various components. Finally it also gives the example of the online constitution of companies.
Definition of a managed legal service
A managed legal service is (i) a solution to a legal problem (ii) in the form of a predefined bundle of services (iii) for a transparent price.
The definition is broken down into 3 components:
- It solves a legal problem;
- It is a predefined bundle of services;
- It is a solution at a transparent price;
A solution to a legal problem
First, it solves a legal problem. Please note the use of the word “problem” instead of “question”. A legal problem typically consists of multiple questions and if you are not a legal expert, it is impossible to pinpoint exactly which questions to ask. A managed legal service truly covers the need of the client to get a solution for the problem as a whole.
For clients without a legal background, a legal problem is a lot broader than a mere legal question.
In the form of a predefined bundle of services
Secondly, it is a predefined bundle of services. This means that the solution (or combination of solutions) to the problem is already present before the client even asked the question. This entails that the provider of the service has already clearly defined the scope of the problem in advance as well as the various potential solutions. Note that this requires a proactive attitude of the legal service provider instead of the typical reactive attitude (let’s wait for the question and solve it when it arrises). This is a major shift away from the traditional legal service model.
A managed legal service requires a proactive attitude. The expert has to solve the issue before the client even asked the question.
For a transparent price
Finally a solution at a transparent price. This means that the client gets:
- a fixed price and/or;
- a price range and/or;
- enough information to make a reasonable estimate of the price.
Transparent pricing also means that the client has this information readily available before even having to get in contact. Obviously, this is a major difference compared to traditional legal service providers that bill by the hour.
Transparency also means that the client has the pricing information before having to contact the expert.
Example - Online incorporation of companies
A great example of a managed legal service is the online incorporation of companies. All around the world, innovative companies have started to facilitate the process to start companies online. This was work that was previously done by lawyers and accountants but that now moves away to innovative legal service providers.