Now in its tenth year, Altman Weil’s annual survey documents the forces reshaping the landscape for legal services and provides insight on how the nation’s largest law firms are responding. 398 firms with 50 or more lawyers participated, including half of the country’s top law firms. The full survey report runs 128 pages and contains lots of charts and graphs. The more digestible Executive Summary runs just fifteen pages.
Key Findings:
- Change is Everywhere
Not one survey respondent said the pace of change to decelerate in the coming years. The good ole days are long gone and there’s no going back.
- Complacency Has Set in at Many Firms
Partners are underutilized at most firms with almost half of firm not meeting billable hour goals.
- Most Firms Are Focused on Short-Term Tactical Improvements
Few firms have not taken full advantage of disruption as an opportunity to run with an innovative set of services to distinguish themselves from competitors.
- Firms Need to Think More Long-term and Strategically
Just 38% of firms are actively testing innovation. Look outwardly at ways your firm can improve efficiency and added value for clients in the long run.
- Partners Are Your #1 Impediment to Change
Improving productivity and dealing with chronic underperformance has yielded significant improvement firm profits in 84% of participating firms. In 69% of firms, partners are highly resistant to most change efforts.
MPF Recommendations to Firm Leaders
- Educate your Partners
Most of them pay little attention to the “big picture” trends and challenges facing the profession. As a firm leader, make sure they know what’s going on, and why your firm must evolve and adapt to the changing marketplace.
- Get Closer than Ever to Clients
Never ever take clients you want to keep for granted. Show them you really care. Go visit. Learn about their companies. Learn about their industries. Become a trusted advisor.
- Focus Attention on Practice Groups
We like industry-focused practice groups for a slew of reasons.
- Exercise Passionate and Purposeful Leadership
That means implementing tough decisions from to time. Enough with the “managing” and “consensus-building”
already.
- Appoint the Right People to Leadership Positions
Not always the senior lawyers and lawyers with big books of business, but individuals with firm-first mindsets and the ability to run a good meeting.
- Address Bad Behavior and Chronic Underperformance
If you don’t, it may kill your firm’s long-term success. Your firm’s “dynamos” don’t want to carry dead weight.
This is one of the best “state of the profession” reports out there, and we strongly encourage you to share it with your partners and senior staff.