Most law firms have a limited number of options to improve their profitability. They can ask their lawyers to work harder —which in many firms is a function of having the work to do, as well as a culture that inspires and rewards hard work. Another alternative is to cut costs but, for most law [...]
The biggest factor in most law firms’ success is the quality of their client base. In large measure this is because different clients have differing volumes of work, complexity of legal needs and price sensitivity. Appropriately, therefore, many law firms’ strategic plans are built, at least in part, around improving their client base. Unfortunately, there [...]
As the global economy moves toward an eventual recovery, there will be some huge opportunities for law firms, as well as some minefields. How firms deal with these issues may determine their short and long term success. There are all sorts of possible scenarios but the five issues discussed below certainly appear to be the [...]
The silver lining for law firms in the recession may just turn out to be alternative pricing. For years, sophisticated managing partners have realized that changing the basis for pricing legal services could enhance profits more than any other available action. The only problem was that neither their lawyers nor their clients were willing to [...]
Communication Problems in Law Firms It does not much help that in good times and bad there are some significant structural barriers to good communication, even in firms that try hard to be transparent and open in their information sharing. The use (or misuse) of email, and stilted discussions at formal meetings become a poor [...]
A lot of law firms talk about using pricing to attract clients who don’t want to pay New York prices for top quality legal work. But, for most firms, the Low Cost Provider strategy has not been particularly successful. The answer may be for firms to learn from the pricing experience of businesses in the [...]
The economic downturn has caused many businesses to reconsider the viability of their strategic direction. This is especially true for law firms that primarily deal with business clients and are impacted by both the global decline in business transactions and clients’ overall desire to reduce costs by using less legal services. For many law firms, [...]
The term “acquisition” is used quite often to describe the manner in which law firms bring in experienced lawyers. Sometimes firms describe the hiring of lateral partners as an acquisition and bringing in groups of lawyers or a whole practice group from another law firm is viewed as an acquisition. When the consolidation of two [...]
Technology is a huge part of all of our lives. One common feature of almost every technological gadget we own is that when it hiccups, the first thing we have to do is hit the reset button. Whether it’s an iPhone, Windows Vista, or your TV cable box, it seems the answer to every problem [...]
Law firms are unique creatures. On the one hand, lawyers seem to hate working in teams. Most view themselves as licensed professionals and have trouble being dependent upon anyone else. Some feel this solo operating style is instilled by law schools where students directly compete with each. As a result, lawyers as a profession are [...]
Occasionally firms are presented with a unique opportunity to attract a senior in-house lawyer or governmental official as a lateral partner. If such a person becomes successful, the rewards to the firm can be staggering. But the failure rate of lawyers who intend to build a practice from scratch, regardless of their credentials, is high. [...]
A primary long-term strategy for a lot of U.S. law firms is the establishment and growth of an office in the U.K. or continental Europe. But such global aspirations are becoming much more expensive and risky as the value of the U.S. dollar falls against the British pound and the euro. For firms looking to [...]
It comes as no surprise to anyone who has ever worked for or with a law firm that taking action to implement any form of decision or plan can be a major problem. Whether it involves a sophisticated strategy or enforcing the most routine practice requirements, some law firms seem to have a tough time [...]
The biggest factor in most law firms’ success is the quality of their client base. In large measure this is because different clients have differing volumes of work, complexity of legal needs and price sensitivity. Appropriately, therefore, many law firms’ strategic plans are built, at least in part, around improving their client base. Unfortunately, there [...]
We are seeing a significant roll up among smaller and mid-sized law firms in the U.S. Evidence of the consolidation of law firms can be seen in Of Counsel magazine’s annual survey of the 700 largest U.S. law firms. In 1994 the 700th firm had 51 lawyers; in 2006 the 700th firm had 20 lawyers. [...]
In many law firms it is politically incorrect to say that any practice area is of greater value to the firm than another. But the truth is that there are some practices that, by the nature of their position in the marketplace and how they react with client’s businesses, deserve a greater allocation of the [...]
I was speaking with the managing partner of an AmLaw 200 firm a couple of weeks ago. He casually mentioned that, year in and year out, he spends about 25 percent of his time involved in merger discussions. I thought he was kidding but he assured me he was completely serious and had the non-billable [...]
Most law firms want to grow. Whether to gain depth of capability or achieve the credibility among clients that comes with critical mass, growth in the number of attorneys is a strategic priority for the majority of law firms in the U.S. Of course, firms have several growth options. They can grow organically by hiring [...]
If you have been involved in the practice of law for 20 years or more and listened to yesterday’s Sunday morning news shows, I’m sure that the talk of a bailout of banks and the creation of a resolution trust to manage and dispose of distressed real estate seemed like déjà vu. It certainly reminded [...]
When law firms go about attempting the implementation of strategies that involve some aspect of change for the firm, there is frequently a lot of talk about “burning platforms.” The concept is that people, particularly lawyers, are resistant to change. Therefore, even the most logical and rational justifications of change don’t seem to work unless [...]
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