Selling the whole packageLaw firms will miss out if they concentrate on their core business - it is time to diversify, even into offering programming, writes Philip HydeOn the Radio 4 'Today' programme near the end of last year, Law Society President Michael Napier admirably defended an accusation that lawyers were 'parasites' preying on an unsuspecting public.

John Humphries cross-examined the President on the premise that lawyers currently pervade every aspect of public life.If only they did.

The reality suggests otherwise.

If anything lawyers are not involved nearly enough in public life, particularly in the broader business community.

The importance given by accountants to activities ancillary to their core businesses has by and large by-passed most solicitors' firms.

Several law firms have shown initiative in core practice areas.

Some have moved into electronic conveyancing and document production.

Admirable as this is, it can be argued that they are not nearly innovative enough.How about initiatives which can really involve lawyers across the spectrum of business life, rather than those which underscore the perception of lawyers as providers of a narrow base of products and services bought by necessity or force of circumstance?The government's small business service will be launched nationally in April 2001 through 45 local 'franchises'.

The legal profession is in danger of missing out on what could be a significant opportunity.

Most of these 45 outlets will be outsourcing services.

The also require a wide range of professional services as they develop and grow.Will hard-pressed decent law firms, striving to replace fast disappearing disciplines be in the front of the queue eager to fulfil the demand? Or will there be a heaving mass of consultants, bankers and accountants falling over themselves to get their snouts in the trough?Don't think this is small beer.

The big five accountants are already involved at a national and regional level in much of this work and see publicly-funded business support service as a good source of income.Then there are wider issues, such as multi-disciplinary practices and diversification.

There has never been anything to stop law firms expanding from their traditional core legal business.

Why would a law firm wish to form a partnership with a large accountancy firm when it can deliver the vast majority of services clients want?Law firms should take the lead and actively deliver a wider range of services, as accountancy firms are doing.

Why not establish a corporate finance team employing bankers, accountants and others to provide a whole basket of services to this market? Forget that lawyers will risk alienating accountants who are seen as work providers.

Give them half a chance and they would gladly do the legal work involved in these transactions.Some may say that diversifying lawyers risk losing focus, and law firms are best at their core businesses.

Marketing experts would wince at this.

Lawyers must seek new products for new clients.The flavour of the month is law firms' move into providing services for e-commerce.

Why are most law firms limiting their role to offering intellectual property, terms and conditions of business and internal e-policies? If a firm is to develop into this area why not go the whole hog by offering web design and programming?The small business service is at the forefront of the government's attempt to help businesses to embrace the technological revolution.

It is encouraging more businesses to embrace technology and to identify opportunities for early, growth and job creation.Lawyers must shake off the perception that they are narrow-minded reactionary fat cats.

Why not truly become involved in as many spheres of activity as possible? By doing so we can try to dispel the impression of a profession with its feet in the past.Will law firms take these opportunities which are clearly available? History suggests otherwise.

From the perspective of middle business at least, far from being 'parasites' we risk being seen as yesterday's outdated profession.Philip Hyde is managing partner of Norwich-based law firm Steele & Co