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
In a conversation last week, a friend who is a partner in an AMLAW 100 firm told me that he received a record number of calls from search firms during the previous month. In a separate conversation last week, a Managing Partner client noted the incredible number of calls she was receiving pertaining to hiring
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 –
Law firms and the economy
Many or even most law firms are coming off their best year ever. It may be a time to celebrate, but I continue to think about the inevitable bursting of the bubble. Yesterday I was catching up on some long-overdue reading and came across this Forbes article by Mark Cohen
Although many law firms are enjoying increased demand, revenues and profitability, not all firms are so fortunate. For the firms seeing a sustained slackening of demand, there is no shortage of ideas on how to combat the problem. “Work harder,” “get out and hustle,” and “reconnect with your relationships,” are but a few of the
Let’s get real for a moment.
Most law firms are woefully unprepared for any significant economic downturn — let alone a prolonged, decrease in demand.
This is a startling reality; but here are a few undeniable facts:
The concentration of law firm financial strength narrows as fewer AmLaw 200 law firms can be counted among the fortunate. As Mark A. Cohen argues in his The AmLaw 200 Is Down to 50 – Maybe 20. What does It Mean? a fiscal separation among bigger firms has occurred and continues. Cohen concludes that the
Law firm succession is a huge issue for many of today’s law firms. Not surprisingly, more firms than ever before are focusing on succession by adopting written succession plans that address leadership succession and client relationship transfer. Despite the importance of succession, many firms have no written plan and remain unprepared for transitioning leadership or
Most law partnerships begin with a sense of shared aspirations, enthusiasm and trust. The founding partners and those subsequently added presumably maintain a fiduciary commitment to conduct consistent with the welfare of the other partners, as well as clients.
The fact is that this is often not the case.
Although the final numbers are not in yet, 2018 has been touted as a good year for law firms. Based on various reports including the 2019 Citi-Hildebrandt Client Advisory, revenues were up, billing rate increases held, and client demand increased. These improvements are not shocking as law firm performance has been ascending in recent years.
Just because industry performance this past year was on the whole very good, not all law firms can look back on 2018 with such positive thoughts. Indeed, the overall industry uptick is pulled along by strong performances among the AmLaw 100, especially the top 25 firms. Performance among the second AmLaw 100 (or 101 to 200) generally was not as positive. Similarly, firms outside the second 100 did not, as a class, enjoy the kind of robust financial performance logged by the bigger firms. Specialty firms (obviously focused in the right specialty) were the exception among smaller firms.
Continue Reading Law Firms Enjoy Positive 2018-What If Your Firm Didn’t?
