The Sky is Falling, the Sky is Falling!

The results of the 2019 Altman Weil annual Law Firms in Transition is receiving well-deserved interest from law firm leadership. This year, 362 law firms participated in this annual benchmarking survey. The good news is that most law firms are experiencing improved financial performance. And the issues surrounding what clients are expecting is becoming clearer. Lawyers are busier, per se, and many firms have raised rates.

According to the results, managing partners have long accepted the fact that there is a permanent trend in how the practice of law is and will be practiced. Change is continuing. But increased profits have some law firm leaders relaxing a bit about the impending discussions of “doom” about how the practice of law is changing. Is the sky really falling?

Apparently the sky has not fallen. But at the same time forward thinking firm leaders recognize that high collaboration with firm clients is increasingly essential. And according to the survey, almost all firm leaders agree that the pace of change will remain high or even accelerate.

What do Clients Want?

While clients may not be looking for the low cost leader they are seeking greater transparency and accountability in the delivery of legal services. Over 50% of the firms responded that they are invested in capturing data on the cost of their services. The basics of strong experience and expertise along with a high level of communication, good service and efficient processes remain important criteria for clients when choosing outside firms. And a whopping 96% of law firm leaders agreed that a focus on increased efficiency, and perhaps with it better predictability and innovation, are areas clients are seeking.

A clear, strong and distinctive law firm brand remains important to clients. About half of the respondents of this year’s survey said their firms are clearly differentiated from the competition. But what about those firms that have yet to go through a brand development process to identify, codify and implement a clear brand which consistently supports and reflects their unique distinctions? These firms make it difficult for clients and potential clients to understand why a firm with a muddled brand should be chosen.

The survey results report 78% of firms have created a more collaborative culture resulting in improved firm performance. Altman Weil suggests compensation systems should reward increased collaboration and better client service.

The survey did not explore additional issues that are increasingly vocalized by legal departments such as which technologies are preferred, how they use artificial intelligence, or how to incorporate problem solving solutions such as process mapping to minimize pain points.

Altman Weil’s 2019 Survey states that the demand for law firm services has been flat for years and that the acquisition of new clients is essential for continued growth and sustainability.  And according to the summary, managing partners are highly concerned about the impending recession. The sky may not be falling but savvy law firm leaders are making sure their firms are realistically facing the changing landscape in the practice of law to secure their futures.

The full survey results provide greater details and explanations.

 

Law Firms that are Leading the Way

More and more corporate legal departments are requiring their outside law firms to adopt legal operations. In fact, every week 10-20 new legal departments join CLOC (Corporate Legal Operations Consortium). This blog highlights two law firms, Baker & McKenzie and Davis Wright Tremaine, that are well entrenched in legal operations and are effectively leading the way for other law firms. Find out how and why here.

Resistance Continues but the Business of Law is Transforming

                Published in JD Supra Perspectives 2017

“Before you know it, what once seemed like crazy ideas will become the new normal.” ~Mary O’Carroll, head of legal operations, Google.

The Resistance Movement

It has been said that change is the only constant in the world. Nagging realities in the legal marketplace continue to place pressure on law firms, of all sizes, to confront the demand for inevitable changes.

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Corporate Legal Marketing Departments Want This

At the most recent Future’s Conference which took place in the fall of 2016, the College of Law Practice Management prepared sessions that were full of interesting trends and developments which may have a strong impact on the future practice of law.

The on-going discussion about Alternative Fee Arrangements is actually and finally starting to sound like more than talk. Big Law is responding more to the needs so often expressed by legal departments to keep fees predictable and on budget. Continue reading Corporate Legal Marketing Departments Want This

The 2016 College of Law Practice Management: Futures Conference

The 2016 College of Law Practice Management’s annual Future’s Conference was full of interesting trends and developments which will have a strong impact on the future practice of law.

The following are some ideas and thoughts raised which might be of interest.

The on-going discussion about Alternative Fee Arrangements is actually and finally starting to sound like more than talk. Big Law is responding more to the needs so often expressed by legal departments to keep fees predictable – on budget. Continue reading The 2016 College of Law Practice Management: Futures Conference