Virtually every day, the news includes reports of additional law firm closures, layoffs, and compensation reductions.
What is driving these decisions, and what does it mean for your firm?
Without question, catching any developing problem early makes it easier and less traumatic to take appropriate action, increases confidence in management, and enhances the likelihood of
The headlines are beginning to paint a pretty clear picture: many law firms worldwide are taking more aggressive action in response to their COVID related economic challenges.
As part of an effort to create a cash buffer to weather current or anticipated pressure brought about by the virus, firms are focusing on containing revenue loss
I have previously referenced the excellent McKinsey report COVID-19: Implications for law firms. In a re-read of it this morning, a universal truth regarding client relationships struck me: the stronger firm communication with its clients, the less likely there will be a surprise in decreased work.
During normal times a routine communication between the
Virtually all law firms have had to adjust business practices to address the pandemic’s impact. Whether working remotely, refocusing or changing firm economics, making personnel moves, or partnering with clients more, today’s challenges have fundamentally changed the way law firms operate. For the law firms grappling with too many upheavals in their world, crisis looms.
Law firm crisis typically brings financial pressure. Reduced demand, slow-paying clients, and now due obligations incurred in better times are but a few of the hallmarks of crisis. As bad as these things can be, the strain can intensify quickly when the
The economic turmoil driven by the coronavirus has impacted virtually every law firm — some more significantly than others. Unfortunately, the pain has only begun for many. The demand for many transaction related practices is likely to be off for an extended period, and though most expect demand for litigation services to be steady, the
Covid-19’s harmful impact on some law firms shows in reduced client demand, delayed or reduced receivable realization, and production inefficiency. While those consequences may be understandable in light of the pandemic, third parties that expect fulfillment of promises and obligations may not be totally sympathetic. Some grace may be extended, but it is neither assured
During periods of crisis and economic uncertainty, the old saying “cash is king” is the appropriate mantra for most businesses. Maintaining the liquidity necessary to stay in business is now job #1 for law firm leaders.
To say that the economic fallout associated with Covid-19 is causing a decrease in cash inflow is an enormous
The vast majority of law firms are already or in the throes of or are about to experience a marked decrease in revenue, whether to closed courts, stalled transactions, or simply because clients are pulling back and paying more slowly.
For a very small minority of law firms declining cash balances aren’t a problem thanks
