♫ I want you
Do you want me too?
I have one question
Can I help you?
Now watch me, what I do
Now thank you for coming through my drive-thru..♫
Lyrics and Music by: Julian Casablancas, Santi White, Pharrell Williams, recorded by Julian Casablancas, Santigold, and Pharrell Williams.
In the four prior posts in this series, we looked at how price is just one of seven components of the legal marketing mix. Part 2 discussed the product mix – and how changing your product mix may result in a great match between your services and the needs of the clients. Part 3 looked at who was on your team and how they deliver your services – and how this can have a big distinguishing effect on how clients view your services against the competition. In Part 4 we looked at promotion and how this can make your services stand out from the pack. In each of these posts we have looked at how each of these components helps distinguish your services from the competition; services that are distinguishable are priced differently, as they are no longer comparable with the competition.
In this post we are looking at yet another component of the marketing mix – namely the place where you deliver your services. Just consider the range of physical office configurations – from storefront offices on main street to walkup offices to Class A office space in a gleaming skyscraper. Each one of these sends an unwritten message to a potential consumer of legal services. Furthermore, you can practice as a solo, in an office sharing arrangement, an associate or a partner of a firm, large or small. Lawyers can maintain branch offices in the suburbs, in another town, province or state or even another country or continent. You can be a travelling lawyer who attends clients at their places of business, home, hospital, care facility, union hall or even a Starbucks. You can offer handicap access or after-hour access. Lastly but certainly not least, you can maintain a virtual office, using internet technologies to meet, share, collaborate and meet the needs of your clients who could be down the street, across town, in a distant city or even across the world. The range of possibilities are unbounded.
Indeed, bold lawyers have envisioned practising in ways that break the familiar constraints. Axess Law in Ontario has launched law offices that are embedded within Wal*Mart stores in Ontario and offer home, family, business services, legal contracts and notary services in an affordable and approachable context.
The range of offices and services that can be offered from different locations to meet client needs is as open and wide as your imagination. Perhaps one day a lawyer will open an office where a client can receive legal advice right in their car…and the lawyer would say…”Can I help You?” and then conclude with: “Thank you for coming thru my drive-thru…”
(cross-posted to tips.slaw.ca)
♫ That’s why I fell for (the leader of the pack)…♫
In the three prior posts on lawyers and pricing, we have looked at how price is only one part of the 7 components of the legal marketing mix. Part 2 discussed the product mix and how you can change your legal product mix to better meet the needs of your clients in a way that distinguishes your services from those of the competition. Part 3 examined how the people on your team can have a big impact on how your services are delivered. In fact, in Good to Great, Jim Collins said that the most important factor applied by the best companies is that they first of all “Got the right people on the bus, and the wrong people off the bus.” In this post we are exploring how promoting your business can be a distinguishing feature, setting your business up as being different from the competition…allowing you to price your services differently from the competition.
Think about all the different ways that your clients learn about your services. Certainly word-of-mouth is the gold standard of referral marketing, but not everyone who is a client in your firm came in the doors as a result of a personal referral. When it comes to marketing your practice, the one truth is that whatever works today will stop working at some time in the future for reasons that you might never know. Accordingly you need to change up your promotional or marketing activities and keep trying new things. Small changes can have big effects.
Social media is all the rage today and for good reason. Facebook has now reached 1.3 billion people – and that doesn’t include anyone in China! LinkedIn and Twitter are the other members of the “big three” social media networks. Have a look at your Facebook page, your LinkedIn profile and your use of Twitter. You can choose to not be on any of these (after all you can choose how to market your firm and your practice) and if these wouldn’t resonate for you or your clients ..fair ball. What is worse is being there but not having updated anything for some time. This indicates lack of commitment and follow-thru. Same goes for a blog – I personally find blogging to be one of the easiest and more effective ways for a young lawyer to establish themselves and their expertise in the market, if done consistently and well. Combine a blog with your thoughtful use of twitter on developments in your legal area of choice and you can become known as an authority in short order. For a great overview of how Canadian lawyers are blogging see the Clawbies website – the Canadian Legal Blog awards. You can be as creative as your imagination will take you..provided you still stay within the marketing ethics of your jurisdiction.
If social networking is not for you, there are a host of more traditional marketing methods. In person presentations and webinars are one way to get known and demonstrate your knowledge of your area of practice. Financial institutions are always putting on presentations. If writing is your thing, then offer to do a regular column in a local or community newspaper (you can then reuse these articles in a blog or newsletter). You can clearly show your involvement and interest in local affairs, schools, sporting events, churches and other organizations and help them – thereby building your presence in the community.
Whatever you do, try to ensure that your marketing makes you stand out from the pack. After all that is its purpose – to show that you are different from the rest. You want your clients to have fallen for the leader of the pack.
(cross-posted to slaw tips.ca)
♫ I only need to tell myself
See what the future holds… ♫
Lyrics, music and recorded by S.P.Y.
Just a note that the 2014 Solo and Small Firm Conference early bird rate ends tomorrow…!!
This is a CLE-BC conference and we have worked quite hard on the content and the speakers. This is for anyone running or in a solo or small firm practice or thinking of launching one.
This is the latest in a series of Solo and Small Firm Conferences that have been hosted by CLE-BC. It only comes around every 2 years.
We have outstanding speakers including the Past President of the CBA Fred Headon doing the lunch keynote on the implications of the CBA Futures Report for solo and small firms (by Skype!).
You can attend in person or virtually.
Topics include Business School for Lawyers – what they didn’t teach you in Law School; Managing the Finances – Making the Numbers Work, Law Office Management and Technology, Marketing Ethically, Dealing with the Self Represented and Freeman on the Land, Solo and Small Firm issues and a guest presentation by the founders of the Axess Law Firm in Ontario – who have ‘embedded’ a law practice inside a number of Wal*Mart stores in Ontario.
This is a fresh look at solo and small firm practice…and an exciting one.
As the conference chair, I welcome you to the conference and I am looking forward to seeing you all there. Come and see what the future holds!
♫ I want to be part of the solution
Can you use me to lead a revolution?
I want to be part of the solution… ♫
Music, Lyrics and recorded by: Jonah33.
The issues facing the profession have been set out by many: from Richard Susskind as documented in his many books, to Madam Justice McLachlin, who has said:
“Timely, effective access is the most pressing issue facing Canada’s justice system, says Supreme Court Chief Justice Beverley McLachlin.
Many people have given up on seeking justice through the courts, deterred by the often expensive and time consuming process, she said.
“We do need some new approaches…we need to get behind the solutions,” she said.
The problems facing the justice system and the legal profession are well set out. The issue is where are the solutions to come from? More importantly, where will the leadership come from?
The Canadian Bar Association has now published its comprehensive August 2014 report, Futures: Transforming the Delivery of Legal Services in Canada. This report is the culmination of two years of consultation, original research and analysis on the future legal marketplace in Canada, and includes a series of recommendations on where and how the profession can transform itself. (See more at: http://www.cbafutures.org/reports#sthash.NMcwadWx.dpuf)
The hardest issue, as I see it, will be in implementing the recommendations that have been brought forward. Implementation of change is always the hardest part of any process. Here the law schools are facing a critical juncture: do they help lead the change to meet the new challenges – or – do they stand in the way of change?
In an article in The New Republic entitled “How to Fix Law School” (http://www.newrepublic.com/article/113983/how-fix-law-school-symposium) Mike Kinsley says:
“When you graduate, you should be prepared to pass the bar. The discovery that everything you have crammed into your head for three years has no relevance at all, and you have to master a whole new curriculum in just a few weeks for the bar exam, is dispiriting.
It’s absurd that you can graduate from law school without ever seeing a real client. Some clinical courses ought to be mandatory. Trainee doctors start seeing real patients within a year and a half. Trainee lawyers can go three, and graduate, without ever touching a client. And, let’s be honest, the training of your doctor is more important.”
I think law schools need to lead the change that we wish to see in the profession. It all starts here, from the training of lawyers to practice law (including training on issues such as practice management, actually running a business and using legal technology) to how to manage clients and actually do a conveyance, an incorporation or a decently drafted will. We need law schools to think differently.
Most of all, we need law schools to teach law students to be leaders who can step up and continue this process of change in order that the legal profession remains a strong, independent profession and continues to serve the needs of the community.
We need leadership in the profession and this training must start in law school. Law schools need to fully embrace being part of the solution in leading the revolution. In my view we don’t need any more law schools in this country that train lawyers in the old ways of doing things. What we need are the existing law schools to produce graduates that are going to be leaders in moving the profession forward with new approaches, new technologies and new ways of thinking – we need law schools to be part of the solution.
(Article has been updated. The original was published in CBA’s publication BarTalk).
♫ Well, rave on it’s a crazy feeling
And I know it’s got me reeling
I’m so glad that you’re revealing your love for me…♫
Lyrics and music by: Shaun Ryder, Paul Richard Davis, Mark Philip Day, Paul Anthony Ryder, Gary Kenneth Whelan, recorded by Buddy Holly.
In the prior two posts on lawyers and pricing, we have been discussing the issue that price is but one part of the 7 components of the legal marketing mix. Part 2 discussed the product mix and how you can change your legal product mix to better meet the needs of your clients in a way that distinguishes your services from those of the competition. In this post we are exploring how important the people who deliver your legal services are and how this can be a distinct competitive advantage.
All of us have experienced situations where your first contact with a business is with someone who just makes you feel like looking after you is the most important thing for them to do in their day. I had that experience today – I called a law firm and spoke to an assistant who, when I asked to speak to her principal, said in the most caring voice: “Well, he isn’t in his office right now but let me go out and round him up for you.” This was my very first contact with this firm and this wonderful lady didn’t know me from Adam. The way she made me feel was simply amazing. She made me feel valued and important. I recognized her exceptional people skills and thought about how she was a tremendous asset to the firm.
In Good to Great, Jim Collins said that the most important factor applied by the best companies is that they first of all “Got the right people on the bus, and the wrong people off the bus.” In other words, your ability to select, recruit, train and retain the best people with the skills and abilities to do the job right is more important than everything else put together.
The Spectacled Marketer says:
If a customer feels their expectations of your business are exceeded, then the chances of a referral are exponentially increased because their loyalty to your company is exponentially increased as well!
You need to strive for your clients to feel exceptionally satisfied so that they rave about your services. How do you exceed your client’s expectations? The first step is …hold on now…ask them! Yet lawyers and law firms *shudder* at the thought of asking clients three simple questions:
- What did they like about the firm’s services,
- What didn’t they like, and
- How could the firm firm do it better.
If you find out that there is someone on your bus that shouldn’t be there…you have a decision to make. If you find out that you have someone on your bus who is simply exceptional and is a tremendous asset to your firm, make sure you recognize and reward them accordingly!
In considering the marketing of your practice, consider how the people in your business can either make your clients rage on, feel indifferent, feel satisfied or preferably, rave on about your services. Your client service can be a strong distinguishing factor as compared to your competition. In terms of your marketing mix, strive for having very satisfied clients showing their “love by raving on about you!”
(cross posted to www.tips.slaw.ca)
♫ Keep moving, never stopping sharks
Music, lyrics and recorded by Further Seems Forever.
In the first column in this series we dealt with the issue that price is but one part of the 7 components of the legal marketing mix. Unfortunately many lawyers (and clients) tend to overly focus on price and not appreciate the other 6. The theme of this post will be to look at the product mix and the role that it plays in marketing (and pricing!) of legal services.
One law firm is different from another in terms of the mix of services that they can provide. My colleague and friend Bob Denney produces a “What’s Hot and What’s Not” report several times a year that I repost on here on my blog Thoughtfullaw.com with his kind permission. This report shows what services are in demand, what are staying neutral and which are declining. The importance here is that if you can be nimble, you can change your mix of legal services. Staying with the same mix of services can result in stagnation. In fact, Woody Allen in one of his movies once said:
“A relationship, I think, is like a shark, you know? It has to move constantly move forward or it dies. And I think what we got on our hands is a dead shark”
The one thing that you don’t want to be as a law firm is a dead shark.
So survey your clients – do external reviews of what services are in demand, look at what industries are on the upswing in your area and think about how you can provide needed legal services to them. Compare your marketing mix of services to your competitors and see how you stack up. Eventually what you are doing will grow old in the eyes of the consumer – you need to change things up – complacency is the enemy of success.
If you can offer a unique mix of services that are more closely aligned to the needs of your clients, then you have moved from competing solely on price to being able to distinguish your services from those offered by the competition and show to the clients that you are doing a better job in terms of meeting their needs than the competition. The clients could say “Yes we could move to Dewey Gottem & Howe, but they don’t do what Werk, Worke and Wourke do for us…” You have moved from competing on price to competing based on the perceived value of your services from the viewpoint of the client. You have become a moving, never stopping shark…
♫ Zoom Zoom Zoom ♫
A Capoeira song performed by Jibril Serapis Bey.
When it comes to legal services, it seems that many law firms see price as the sole basis for competition. However from a marketing perspective, price is but one of seven criteria that make up the ‘marketing mix’ for services. Since legal services are ‘intangible economic goods’ lawyers have to sell the perceived benefits of their services and see how they match up against the needs of the clients. All other things being equal, clients evaluate services on price. But this assumes that you are delivering commodity-like services that are largely indistinguishable from those offered by the competition.
If you can distinguish your services from the competition and come closer to meeting the discerned needs of the client as compared to the competition, you are now engaged in a differentiation marketing strategy. This is based on Michael Porter’s work at Harvard Business School.
From this matrix, you can see that there are two major determinants of how you market your practice. The first is whether you appeal to a large target market or a smaller one. The second criteria is whether you choose to compete on price or on differentiating or distinguishing your services from the competition. The focused differentiation strategy seeks to market niche legal services to a target market. There is another factor at work here. Distinguishable legal services have a higher margin as compared to cost-focused strategies.
As you start to think about how to distinguish your services from those of the competition you move from thinking about the ‘reference value’ of your services (your price compared to the price of competing services) to the ‘differentiated value’ of your services (how the quality and method of delivery of your services compare to the competition).
When you start thinking of how this is done in other markets, for example in the automobile market, you see that autos can take you (and others) and transport them to new locations – that is their function and on this level they are commodities. Every auto sold does this. What distinguishes one auto to another can be neatly summed up in the phrase used by Mazda: “Zoom Zoom”….
In subsequent columns we will explore each of the 7 components in the service marketing mix and what they mean for lawyers.
♫ All of these lines across my face
Tell you the story of who I am
So many stories of where I’ve been
And how I got to where I am
But these stories don’t mean anything
When you’ve got no one to tell them to
It’s true… I was made for you
Oh yeah, well it’s true… that
I was made for you…♫
Lyrics and music by Phillip John Hanseroth, recorded by Brandi Carlile.
The beginning of September is always the start of the new year for me. Perhaps it was so many years spent in school and the inevitable association with the start of the newly-minted school year. Perhaps it is coming back from a summer vacation refreshed and invigorated and with new energy for projects. Perhaps it is because I have been talking to many people who have plans for when they get back in September in terms of branding and setting a new strong strategic direction for their firm.
Either way, I believe that September is a wonderful time to refocus, regroup and decide the future direction of your practice. What changes would you like to see? Over time law firms can lose their focus on their core services – what do they do best. They can also lose touch with their core values and their strategic direction as they take on new files and clients that pull them in new directions. September is a perfect time to sit back with your colleagues and think about where the firm is going. Do you wish it to explore new opportunities? Or are you being pulled into areas that no longer represent the reasons you formed the firm in the first place? What is gnawing on you about the firm? What would you like to change from both a firm-wide and personal perspective? Start a list..and have your colleagues do the same – and arrange a time (on a weekend) to hone in on all this and come to a consensus on where all of you would like to go.
Come together and discuss the firm..its direction, focus, what makes it special and distinct – and what should be the future direction of the firm. What is your story? Have you been drawn away from the clients, activities and associations that drew all of you together in the first place? What is your marketing focus for the next while? What would you like to change regarding the management of the firm? What about technology? Have you fallen a bit behind in this area and need to incorporate plans for upgrades and new ways of doing things? Are there categories in the finance area that you would like to tighten up, such as the collection of old accounts receivable and the tightening up of credit extended to clients? How about looking at your budget and seeing if the expenses in the group “we have always been paying this” should be looked at again if for no other reason to see if there are other vendors who might be less-expensive?
Personally I think one of the important measures is whether you have remained a ‘client-focused firm’. My late colleague and friend Milt Zwicker’s acid test was whether what was done in the firm provided value to the clients - or not. If not he would change or modify the policy or procedure so that it benefitted clients as much as possible.
I think focusing on the story of the firm and how it carries you into the future is also important. This is the culture, the invisible bond that draws all of you together and forms the backbone of the belief system of the firm. Organizations can change their culture and focus, but the story is the glue that connects the past with the future and tells why you are where you are. It is important to connect with the story of the firm, since after all, the firm was made for you to be able to provide value and meaning to your clients.
(cross posted to tips.slaw.ca)
♫ Through the fire and the flames we carry on! ♫
Lyrics and music by: Herman Li, ZP Theart, Sam Totman, Vadim Pruzhaniov, recorded by Dragonforce.
Jo DeMars, of NetNeutrals (www.netneutrals.com) spoke at the 2014 Online Dispute Resolution Forum at Hastings College of Law at the University of California in San Francisco. This post is based on her most excellent presentation on Wednesday June 25, 2014. While her comments were presented in the context of resolving disputes that arise in e-commerce, her advice applies to virtually any consumer complaint, including client complaints regarding legal services.
She stated that most, if not all, people who have a complaint regarding a product or services are looking for five ‘psychological currencies’ from the provider. These are:
- They want a chance to tell their story;
- They are looking for a reasonable explanation of what went wrong;
- They are looking for assurance that their complaint will be dealt with;
- They wish to be thanked for their business; and
- They hope to receive an apology.
Her advice is that any provider should not hesitate to offer as many of these psychological currencies to people who are unhappy with your services. Why? Simply, it costs much more money to attract a new client vs. the cost to keep an existing client.
She explained that people who are feeling caught in this process typically go thru the same process: First they Feel; then Think, and lastly they Do/Behave.
She stated that when clients are feeling strong emotions, they are incapable of hearing you. You need to take care of the emotions before you can take care of the problem.
Accordingly she advises keeping calm. At the outset, your tone is everything and sets the stage for all that follows. Anger defusion is job #1. Once that is taken care of then the client is moving into a mindset where they can start dealing with the issues at hand.
She stated that many individuals or businesses hesitate in offering an apology. Jo stated that they should take time to master the Art of the apology:
- Clearly and completely acknowledge the problem
- Offer an effective explanation
Be honest with your clients and in particular, offer an honest apology to the client for how things transpired and the effect that this has had on them. Just hearing that a person or organization truly regrets what has happened to someone is a powerful message to help resolve a client complaint.
She also stated that it is important for the person or organization to tell the appropriate story. There are several components to this:
- own the problem,
- find allies if possible,
- take responsibility for making it right,
- follow thru, and
- tell the final chapter.
Her final advice was taken from firefighters: Run thru the flames – not away from them. It is easier and better to run to the problem thru to the other side than to run away from them.
(published concurrently with www.slawtips.ca)
♫ And I’m on a roll
Yeah, yeah, yeah, I’m on a roll
I’m runnin’ hot
Baby, am I hot or what?…♫
Lyrics, music and recorded by Mark Knopfler.
This is another guest post by my friend Bob Denney. This is his midyear “What Hot and What’s Not in the Legal Profession”.
In our Annual Report last December, we stated that some of our findings are obvious while others are not but we report them because they may become significant. We have applied that same reasoning in preparing this Update. What is most important to recognize is that the strategic relevance of each item may vary for each firm depending on its size, practice areas and geographic markets. The resulting picture is a montage of a profession that continues to change.
- Patents. Despite a drop in manufacturing, applications continue to increase in science and technology. The steady increase in Patent Litigation continues to be fueled to a great degree by patent trolls. See Other Trends & Issues – Patent Trolls and Defensive Aggregators..
- Health Care. More issues arise as the result of implementing the Affordable Care Act.
- Energy. The fracking boom continues along with opposition. Oil is becoming more important than ever and not just in the U.S. New EPA regulations affect coal. Despite Administration and environmentalists’ efforts to expand alternate energy sources, they still provide only a small percentage of our total energy.
- Environmental. New rules just issued by the EPA are tough in some states, easy in others.
- Regulatory. One of the areas that continues to keep Chief Legal Officers and business owners awake at night. Covers a wide range of matters including cybersecurity and social media.
- Labor & Employment. The steady increase in union organization activities adds to the caseloads generated by widespread layoffs.
- Major litigation. In the top 100 firms and major litigation boutiques. Many less serious cases are going to MidSize and even some SmallLaw firms
- Education Law. Particularly in firms with colleges and universities as clients. Title IX cases continue to increase.
- Criminal due in part to defendants’ increasing use of videos in sentencing hearings.
- Private Offerings
- White Collar Crime
- IPOs. Particularly in technology. As we anticipated in our 2013 Annual Report.
- Bankruptcy. The increased cost of filing is the principal reason. One significant indicator: The venerable Los Angeles-based boutique Stutman Treister & Glatt is closings its doors after 57 years.
- Asia. Proskauer Rose and U.K. firm Withers report substantial growth in their anti-bribery and corporate fraud practices.
- London. Recent research confirms that U.S. start-ups in London have the highest partner churn rate. Fraser MacLean, Recruitment and London Start-Up Coordinator, asks why
MARKETING & BUSINESS DEVELOPMENT
- Obviously these are more important than ever for any size firm as all firms battle for a shrinking pool of work, particularly high-end. We are not ignoring M & BD, merely referring the subject to the plethora of reports, articles, seminars and blogs that address these areas.
- Disaster Plans. The weather this past winter and spring in most parts of the U.S. makes the need for them greater than ever for all firms, not just large. Pittsburgh firm Strassburger McKenna Gutnick & Gefsky (full disclosure: a client) has one of the most comprehensive plans. o LSAT exams. In 2013-2014, only 105,532 applicants sat for the exam, the lowest number in 15 years. The highest number of takers was in 2009-2010, when 171,514 people sat for the exam. Obviously, unless there is a reversal, this is not a favorable trend for law schools and the legal profession.
- Law Schools. Many developments here:
- Tuitions. For the second straight year, the University of Arizona Law School is cutting tuitions for non-residents, this time to $29,000, down from $38,841 a year ago. The Board of Regenets claims this undercuts the non-resident tuition at more than a dozen peer law schools nationwide.
- Faculty Buyouts. University of Buffalo Law School is offering faculty buyouts in response to a planned downsizing of its study body.
- Curricula. Slow but increasing changes and additions, many focused on technology.
- Suffolk University: New area of study called “Legal Technology and Innovation” which includes Process Improvement and Legal Project Management,
- Michigan State: The Reinvent Law Laboratory to train future lawyers in legal technology software and computer-based methodologies. Florida Coastal School of Law: The Center for Law Practice Technology.
- In a Harvard Law survey of 124 lawyers at major firms that employ the most HLS grads, they said accounting, statistics, corporate finance, negotiation and business strategy are essential courses to best equip them for practicing law.
- Uniform Bar Exam. Enables anyone who passes it to practice in any of the other states that offer the UBA although each state may set its own passage score. Currently offered in 14 states. We expect this number to increase and, sooner or later, the UBA to replace state bar exams.
- Mandatory Mediation. The New York State court system is ready to launch a pilot program in Manhattan Supreme Court that would require every fifth case assigned to judges in its commercial division to go to mediation. Could this become a trend? We doubt it.
- Patent Trolls. Oklahoma recently became the 12th state to enact legislation aimed at reining in patent trolls – or more politely “non-practicing entities” (NPEs) – which accounts for most patent litigation today In total, patent bills have been introduced or enacted in 26 states.
- Defensive Aggregators. These are recent players in the NPE phenomenon. In exchange for an annual fee, they buy up dangerous patents on the open market before NPEs get their hands on them. When NPEs do sue subscribers, DAs try to arrange settlements for their members, lever-aging the fact that they can strike deals on behalf of multiple members at the same time.
- Legal Fees and Gender Gap. According to a review by Sky Analytics Inc., a provider of software to help track legal spending and invoices, female partners command on the average 10% less in fees then their male counterparts. The gap begins at the junior lawyer level and is more pronounced among experienced attorneys at major firms, even when partners have similar levels of experience and work in the same market.
- Diversity. While the number of Asian-American and Hispanic lawyers has rebounded from pre- recession levels at the 100 highest-revenue firms, the percentage of black lawyers at these firms is only 3%, the lowest level since 2000. Yet corporate legal departments, not to mention government and regulatory agencies, are increasingly integrated and take affirmative steps to ensure they employ diverse outside counsel.
- Alternative Fee Arrangements. Reports from corporate legal departments on the percentage of their legal fees paid in some form of AFA vary widely. However, a growing number of corporations now involve procurement people in preparing RFPs and discussing AFAs. Reports from firms also vary widely but rarely exceed 50% and, in most firms, continue to be much less. Some large firms are developing pricing strategies, particularly those that have hired pricing directors.
- Non-lawyer investment in firms. A controversial issue that was hot until a year ago, then cooled down. It’s far from dead. See my article in the August issue of Of Counsel.
- MidLaw and SmallLaw firms continue to benefit as large corporate clients shift work to them because their rates are lower, they have skilled lawyers and fewer conflicts. LexisNexis reported that the share of fees in the U.S going to firms of 201-500 lawyers grew from 18% three years ago to 22% last year while, at the largest firms with more than 750 lawyers, the market share fell from 26% to 20%.
- Litigation Funding is still Hot as certain investors continue to fund law suits in hopes of collecting when verdicts come down. Some law firms are even seeking funding arrangements for clients who need help to carry their suits.
- Virtual law firms continue to increase. The June 5 edition of the excellent “Attorney At Work” blog contains a thoughtful discussion of how to avoid the isolation that could occur in them.
- Project Management continues to grow in importance at mid-size firms as well as the largest because major clients continue to demand “Value” – often undefined – for their legal spend.
- Succession Planning, for both management and client responsibility, is becoming a major concern, not only for mid-size firms but also for some of the largest.
- Lateral Hiring continues to be a growth strategy, not only in large firms but also in many mid- size ones as well. Abandoned merger discussions, such as the recent ones between Patton Boggs and Squire Sanders, continue to provide an additional pool of potential laterals.
- Contract and Part-Time Attorneys. BigLaw and MidLaw firms continue to hire more of them.
- Equity Partner Compensation continues to be a critical and even more sensitive issue. With firms need for growth, often just to survive, partners and even senior associates are demanding more recognition for origination or are opposing “sunset origination”. The issue becomes more clouded with the other responsibilities partners must handle in even smaller and mid-size firms.
- Always a major issue in most firms, we see compensation becoming more challenging an issue than ever.
We will be addressing some of these developments, as well as others not included here, in greater depth in subsequent Legal Communiques as well as one our web site which is updated monthly or more often.
Robert Denney Associates Inc. provides strategic management and marketing counsel to law firms, companies and non-profit organizations throughout the United States. Previous Communiques as well as information about our services may be viewed on our web site.
P.O. Box 551, Wayne, PA 19087-0551 • 610-644-7020 • fax: 610-296-8726 email: firstname.lastname@example.org • web site: www.robertdenney.com.
Thanks Bob for a great post – looks like you are on a roll!