A recent article in the ABA Journal proclaimed, “Boom years for law firms were an aberration.” The article quotes information from a 2013 Client Advisory report from Hildebrandt Consulting and Citi Private Bank which predicts that the double-digit rate increases that occurred from 2001 to 2007 are over.
As proof, the article summarized information in the report confirming that “productivity is down among income and equity partners, expenses are up, clients are demanding and getting discounts.” As a result, future law firm success will likely be measured by “profit growth in the single digits.”
To succeed going forward, the article suggests law firms are going to have to do things like develop a growth strategy, practice good leadership, focus on key Clients, practices or industries and seek Client feedback. (I would add, “act on it!” to that last one.)
These are all radical concepts, I know. But the article also suggests that, to stay competitive, firms may need to rethink their business models to focus on efficiency, and to do this they may want to consider their outsourcing options.
This makes perfect sense. How many tasks are the firm’s key marketing and other professionals currently working on that are keeping them from their most important jobs of crafting and executing the firm’s strategy and helping the attorneys to develop business? The good news is that now there are some options to help law firms save time and money – and free up key staff members for more important and strategic pursuits…