Each year, John Smock and his colleagues conduct an online survey, as well as series of interviews, with leaders of large and midsize law firms. Among other things, they ask about financial performance, hot practice areas and strategic initiatives. Seventy-four (74) firm leaders participated in the online survey and forty-three (43) participated in the interviews. Here are a few highlights:
- Hot Practice Areas: Real Estate, Corporate and Health Care.
- Cold Practice Areas: Bankruptcy, Commercial Litigation and Insurance Defense.
- Rate Increases are Back: All (100%) firms reported that they raised rates in 2016 and that rate increases held 60% of the time.
- Alternative Fee Arrangements (AFAs): Really taking off with 60% of firms reporting that 10-25 % of revenue is achieved through them.
- Top Strategic Initiatives: Dealing with Underperforming Partners, Hiring Laterals with Books of Business, and Investments in Technology and Business Development.
This is a solid, well-researched survey report that mirrors much of what we’ve been reading in other “state of the profession” reports published so far this year.