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
As law firms (and businesses generally) confront the growing financial challenges associated with the Covid-19 crisis, a plan for an escalating response is necessary. The appropriate answer for a particular law firm will depend on its current and projected condition and its culture, but consider the following as you develop your plan.
Government assistance –
Covid-19 and its implications for law firm stability is being experienced industry-wide. The fallout has many firms in full-on crisis. Reduced draws, layoffs or furloughs, expense reduction, stimulus loans have become an all too common part of the survival mix. Resorting to these tools can help little if strong leadership fails to rise to the
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 Coronavirus is causing broad-based law firm disruption. Reports of law firms reducing draws, decreasing salaries, furloughing or laying off of lawyers and staff, and modifying summer associate programs appear daily. Besides creating concern for health and well-being, the pandemic presents real and substantial challenges for law firms. All firms will feel it, and some
The phrase “extraordinary times” is an understatement when it comes to describing these days as each of us is forced to focus on new ways to achieve personal and business survival. As law firms attempt to envision a path through this crisis, a new working relationship with vendors should be considered as part of the
A law firm in crisis is in a different world—a world in which leadership must learn to adapt. It is a place that requires thinking differently, acting decisively, and making choices count. In battling crisis mistakes inevitably happen, but successful crisis leaders keep the number and magnitude small. A law firm leader flexes brain muscles
Recent years have been good for law firms of all kinds and sizes. But good days can’t last forever. Whether the next downturn hurting law firms gets traced to a world-wide virus, political disruption, or just a plain old recession, it doesn’t really matter. What matters for law firms having to ride the looming bumpy
Don’t waste your time trying to control the uncontrollable, or trying to solve the unsolvable, or think about what could have been. Instead, think about what you can control and solve the problem you can solve with the wisdom you have gained from both your victories and your defeats in the past. – David Mahoney
According to many law firm leaders, having a good law firm culture is a key to sustainability. Not infrequently leaders attribute their firm’s culture for the success enjoyed. When new mergers are announced or reviewed, the importance of compatible cultures gets top recognition. And when law firms fail, the impact of a dysfunctional culture reaps
