Many law firms’ strategies to increase revenues and strengthen practice areas are dependent upon a program of laterals. For some firms, the strategy is incredibly successful in its ability to provide work for under-performing lawyers and rapidly increase capability in targeted practice areas. Unfortunately, for a large number of law firms, the lateral hiring strategy [...]
Some law firms are consistently less successful than their peers. In any industry, success is typically more a comparison with peers than an objective standard. Of course, there are all sorts of definitions of success and one would assume that the comparisons would be with the most successful firms fitting their definition. But, we consistently [...]
Dominance of a marketplace is the most valuable strategic position a law firm can hold. But the ongoing recession has been corrosive to the competitive situation of many of the most dominant firms in their key markets. Achieving a dominant position is difficult but it turns out that maintaining dominance may be even tougher. Dominance [...]
As law firms begin a strategic planning process they often seem to get fixated on creating mission and vision statements. Now, having a clear vision of what the firm is attempting to become is essential to creating a strategy, but it is easy to devote so much attention to the vision that the planning committee [...]
There are a variety of ways of defining legal marketplaces. Certainly there are markets for specific practices and there are markets within industries. But the licensing of lawyers largely dictates that much of the buying of legal services occurs within geographic markets. Accordingly, the size and growth potential of geographic markets should play a major [...]
There are a variety of ways of defining legal marketplaces. Certainly there are markets for specific practices and there are markets within industries. But the licensing of lawyers largely dictates that much of the buying of legal services occurs within geographic markets. Accordingly, the size and growth potential of geographic markets should play a major [...]
One of the most powerful strategies available to any professional service firm is pricing. Regardless of the service, the reputation of the provider, the sophistication of the buyer, the quality of the service or any other aspect of a firm’s position in the marketplace, price plays a significant role in a client’s decision to purchase [...]
Among the highest risk decisions a law firm can make is the opening of an office in another country. But firms can mitigate some of the risk by making an informed decision laced with a healthy dose of skepticism. The explosion of U.S. firms’ overseas offices has reached the point where it is comparatively rare [...]
Law firm leaders frequently ask, “Where is the blue ocean?” What they really mean is, “Where are the opportunities? What practices, locations and industries are not being fully served; where could the firm gain a “first mover” advantage?” But when faced with a rare opportunity to be a first mover, most firms balk precisely because [...]
I used to think that there was no such thing as a bad strategy – just bad execution. I thought that any strategy was better than no strategy and that a law firm with a plan of action couldn’t possibly be bad. I’m pretty sure I was wrong. Here’s the problem. A strategy is a [...]
Lateral hiring is among the most frequently used strategies by law firms as a means of increasing profitability. Unfortunately, for many firms it doesn’t work out as well as the firms hope. But that doesn’t necessarily make it a flawed strategy. The problem may be in the execution. Almost every law firm’s strategic plan is [...]
For years I have talked about the most sophisticated legal work being like brain surgery where clients look for the absolutely best possible person to do the work regardless of cost. But now that I have been in the position of actually using a brain surgeon, I’ve found out that the analogy may be more [...]
When children are given food they don’t like and are told, “Eat it, it’s good for you,” they have this special way of nibbling small amounts of it and making it look like they are actually eating. When law firms go about creating and implementing strategy they often use the same technique. They nibble around [...]
We estimate the overall Texas legal market (the total paid for private practice legal services) as being approximately $17.1 billion, the third largest in the U.S. following New York ($39.8b) and California ($36.8b). This provides statewide revenue per lawyer of $227,194 compared to the national average of $215,701. The state has 75,087 practicing lawyers, which [...]
Coming off the “batten down the hatches” response to the recession, a common concern among law firm leaders is how to create in their organizations, and particularly among their partners, a greater long term perspective. But, while many leaders characterize their short term perspective as a natural reaction to economic adversity and being focused on [...]
Over 20 years ago, Steven Brill, creator of the American Lawyer, predicted that among the most successful law firms in the future would be what he referred to as “Super-regionals.” However, as the legal industry evolved over the past couple of decades, many growth oriented law firms managed to hopscotch over regionalism to become national [...]
Warren Buffet once said, “It’s only when the tide goes out that you learn who’s been swimming naked.” A rough economy tends to reveal those companies and firms that have been trying to “swim naked” and are now getting caught by the receding tide. When you consider the most recent large-scale law firm collapses: Wolf [...]
To the extent that there is anything good about an international economic meltdown, it can be credited with having forced a lot of law firms to reconsider their globalization plans. As the recession drove red ink for the international investments of many firms, more than a few of them are looking at their international offices [...]
An important element of strategic planning for many law firm is the identification of specific areas of practice where the firm wants to emphasize its growth. This means that law firm leaders must find a politically acceptable way of providing increased resources to some while limiting support to others.
Over the past couple of decades, the strength of US law firms and the growth of legal markets have been measured by the size of transactional practices. From this viewpoint, litigation, at least among law firms listed in the AmLaw 100 and 200, is an important but supportive practice to the M&A and securities engines [...]
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