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Andrew E. Jillson

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A founding Director of Hayse LLC, Andrew Jillson is a veteran when it comes to advising law firms and other companies on the challenges and opportunities faced by an enterprise in transition. In more than 30 years as a lawyer, he has counseled across every industry, advising wherever personnel, operational, strategic and/or legal issues converge to necessitate organizational change.

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Barely a day goes by without seeing a news report, an article or a blog noting the struggles of a law firm or the legal services industry in general. A recent piece by Ron Friedman examines the possibility that more law firms will be eliminated. George Beaton’s The Rise and Rise of the NewLaw Business Model looks at the NewLaw business model and how it differs from the traditional BigLaw business model.  Besides providing an interesting study in contrasts, he notes the significant growth of Axiom and other adopters of the NewLaw business model.  Above the Law’s Joe Patrice provides his take on data suggesting that some work is moving away from Big Law. Many law firms are being impacted by this industry turbulence and come to the realization that the status quo is not sustainable. A law firm whose management recognizes that change in the marketplace requires change within is a law firm in transition.

When a law firm begins to show signs of transition, many thoughts about the best way to address change will run through the mind of leadership. Among any group of law firms, the stage of transition presented will vary depending on the severity of the market stress experienced and the time that such stress is recognized. Whenever a firm is in transition, some fundamental steps can be taken to help the process, and ease the pain of change.

The degree to which dramatic action is required largely depends on how early signs of transition is recognized. But no matter where in the continuum transition is first observed, certain basic steps will pave the way for developing a sound action plan.

When signs of transition surface, a wise leader does the following:
Continue Reading First Steps For Law Firm Management When Facing Transition

“Bigger is better.” In recent years, many law firms have subscribed to that maxim to grow through office launches, mergers, or lateral acquisitions. Grabbing market share, adding substantive expertise, and establishing geographic relevance provided the justification for many an expansion plan. For some firms, growth appears to have been partly in response to the rapidly changing legal service landscape.  Edwin Reeser recently has written two thoughtful pieces presenting a contrary view to some popular notions that stoke the enthusiasm for growth.

Mr. Reeser’s articles note that law firm growth is not necessarily a winning strategy.   Indeed, for every benefit gained from an out of the ordinary course growth strategy, the bigger law firm assumes some corresponding risk. Only time will tell whether the financial benefits from expansion will outweigh the intangible risks. For that reason, it is a good idea to consider some of the by-products of an expansion plan before diving deep into the growth plan pool.

The Results of Growth Can Disappoint or Backfire. Bringing into your firm new people, new offices, and new expertise causes change. Change can be good, but it also can be unsettling. Moreover, all the promise justifying the growth can play out poorly.  Indeed, as Mr. Reeser wrote in 2012 in an excellent five part series for the San Francisco Daily Journal about the economics of lateral acquisitions, there is an equal chance that the lateral acquisition won’t take (to review the terrific five part series, go to Mr. Reeser’s website).  If this is the case, the cost of failure will be borne by the existing owners.   Trying to maintain credibility among your partners once an acquisition struggles or fails is not an easy task.  Beyond credibility, financial burdens caused by failed acquisitions can de-stabilize the firm.

The Excitement of Growth Can Become Addictive. Let’s face it; growing a law firm can be exciting. It really gets exciting if there is a series of
Continue Reading Growing Your Law Firm–Some Cautionary Thoughts

Law firm growth through merger has been popular in recent years and does not appear to be abating.  Each consummated marriage had its reasons, ranging from client centered, substantively compelling or geographically helpful. Some combinations proved quite successful, others moderately so, while a few could be judged as failures.

Deciding whether to combine law firms requires intense analysis that will be dictated by the situation. Besides the usual metrics of revenues, expenses, headcount, practice expansion and the like, law firm leaders face more intangible issues, such as whether disparate practices can coexist, whether some clients’ incompatibility precludes their being served under one banner, or whether strong personalities can get along. These issues can be tough to resolve and it takes a great deal of work to sort through them successfully.

Other issues are not so tough to assess. In fact, there are certain issues, Danger Signs if you will, that augur against any combination if they cannot be resolved with adequate certainty and confidence. If these Danger Signs exist, be prepared to run away from the combination.

If You Don’t Know How You Will Integrate the Firms, Don’t Combine Them. One of the most difficult tasks in trying to make two law firms or
Continue Reading Thinking About a Law Firm Merger? If These Six Signs Exist, Give it Another Thought

Big is better. Size Matters. We hear those statements all the time and in all contexts. More than a few law firms agree and have adopted growth plans in order to enhance their present status and prospects for the future. Many have grown through mergers, no doubt because management believed that growing existing practices, adding practices or expanding the firm’s geographic reach fit within the overall strategic plan. Some of those combinations seem successful; others have accomplished little while a few have proved disastrous.  As for many of the recently merged, the jury is still out. Only time will tell whether the combinations will work.

Growth through merger is one way to grow. But because a potential merger is not readily available all the time or desirable for some firms, many firms instead turn to lateral hiring to fulfill their strategic vision.

There are a lot of reasons lateral hiring proves to be a good alternative to merger. A firm trying to hire laterally can narrow its acquisition to the most productive attorneys and ignore attorneys that add little. Romancing the lateral may be easier because the hiring firm can more intensely court the potential lateral by focusing only on the lateral’s desires and aspirations. By directing the discussion with the lateral to the potential for an improved platform, access to a broader client base and better compensation, the likelihood of sealing the deal becomes a distinct possibility.

The thrill of the hunt aside, the hiring of a lateral attorney, even with a strong book of business, can bring some negatives. Specifically,
Continue Reading Law Firm Lateral Hiring–A Double Edged Sword

The reality for law firms is that layoffs, of both staff and lawyers, can become a necessity.  Many law firms facing transition arrive at the layoff decision early and for those firms the decision to part ways with certain personnel may represent an adjustment or fine-tuning. Other firms only resort to layoffs much later in the transition continuum, generally after performance has lagged for too long without action. Whether fine-tuning or something more dramatic, a layoff can be a significant event in the life of any law firm.

In theory, pulling the layoff trigger early is a no brainer. From a practical standpoint, however, the concern about potential fall out from the layoff decision causes many law firm managers to pause before cutting people loose.
Continue Reading Law Firm Layoffs-Brace for the Aftershocks

future and pastLaw firms can be in different stages of transition, ranging from facing a business altering decision all the way to requiring an orderly liquidation. One of the stages of transition frequently observed is when a law firm requires a repositioning. Such a law firm is not in trouble, is not staring down the threat of crisis and certainly does not need to develop and execute a liquidation/wind-down plan. Yet a firm in need of a repositioning cannot ignore the change occurring within its midst. If it does, the more serious and dire forms of transition may begin to surface with potentially devastating effects.

On the continuum of concern, clearly a law firm that may be in need of repositioning has more time to react than a firm in trouble; but procrastination is dangerous.

Recognizing the need for repositioning is the first step to staying away from the more serious forms of transition. With that said, here are a number of signs that your law firm is in need of a repositioning.Continue Reading Signs Your Law Firm is in Need of a Repositioning

Let’s face it, law firms are living and breathing souls that constantly evolve and change. Change can be good. But some changes or patterns signal that a law firm is facing transition. And that kind of change can present challenges that are best addressed early if the firms evolution is to continue.

Dealing with transition can put your law firm in the news, even if a decisive plan is articulated and is well underway.  In other instances, an inability to control the forces of transition can lead to undesirable consequences.  But few people would question the wisdom of addressing the root causes of transition. Sometimes, however, recognizing the signs of transition is not intuitive and the opportunity to develop a timely and well thought out response is squandered.

Recognizing the signs of transition is critically important to the longevity of a firm. By recognizing these signs, a firm can design a solution that decisively fixes what ails it. As is often suggested in another context, “the first step to dealing with a problem is to acknowledge its existence.”
Continue Reading Warning Signs Your Law Firm is in Transition