Growing a Law Firm

Eliminate Lock-Step Model and Reward Performance, Not Time Served

Beginning at the end of 1999, law firms began accelerating the rate at which they increased associate compensation. This trend literally moved at “Internet speed:” within three months, associates nationwide were deemed to be worth substantially more than they had been when hired, sometimes only a few months earlier.
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There are as many variations of partner compensation plans as there are law firms. Most are well intended and targeted at rewarding those efforts that the firm values, or thinks it should value, most. READ MORE >

Has your firm identified its business goals for this year (and beyond)? Have you developed long-term strategies for securing your position in the market? Have you thought about your competitors and how they might be planning to take your business? The mid-size firm can no longer rely on the fact that they are “full-service” firms. Global mega-firms, accounting firms and other professional firms will prove to be intense competitors for work that has traditionally been dominated by mid-size law firms. To survive, mid-size firms need a focused strategic plan that clearly identifies long-term goals, present and future market position, and business development objectives. Mid-size firms pursuing rapid growth would do well to consider merger as a means of achieving long-term strategic goals in a rapidly consolidating market. READ MORE >

The rapidly accelerating rate of consolidation in the legal profession continues to capture the attention and interest of lawyers everywhere. In recent months we have even seen an increase in the announcements of mergers in New York City. The question that we hear time and again from firms considering merger is whether these and other mergers have been successful. Some firms want empirical evidence of this success, or lack thereof, and look at areas such as increased profits, while others look for “telltale” signs such as partner defections. While these may be interesting, they cannot tell the whole story and can often lead to an incorrect conclusion. This article will define those success measures, although perhaps not in the black and white terms that some would like to see. READ MORE >

A few years ago, many were predicting that the legal industry would see an overwhelming number of mergers between U.S. firms and U.K. firms. But the flood of mergers did not occur, and some came to believe that there are fundamental differences between firms in the two countries that are difficult to overcome in the context of a merger. The termination of some high-profile discussions between London’s Bird & Bird and Orrick, Herrington & Sutcliffe, as well as between Latham & Watkins and London’s Ashurst Morris Crisp, supported this theory. READ MORE >

As the economy changes pace, more firms than ever are shifting their focus from acquiring new associates to procuring partners and the client relationships that accompany it. As a result, the interest in law firm mergers is higher than ever, and there are a growing number of merger discussions occurring in California. READ MORE >

Long before most mergers are put to a vote, merger committees define and analyze the new firm's financial prospects, practice opportunities, governance structure, technology needs, marketing plan, and a host of related issues. Unfortunately, some firms thoroughly analyze the merger; agree to merge; but then stumble through the integration process. READ MORE >

Recently, it seems that most publications focusing on the state of the legal industry include a line or two on firms that are looking for merger partners, that are involved in merger negotiations or whose partners have voted to merge. For many firms, the desire to merge stems from one of two forces operating outside the legal market. READ MORE >

Changing Market for Legal Services Places New Focus on Practice Management

Law firms are recognizing that the days of operating like a regulated industry are fading fast. Like the airline, telecom, and rail businesses in prior years, forward-thinking law firms understand that they are operating in an increasingly competitive marketplace and that they must transform themselves in order to thrive. Practice management is one of the key components in this transformation for law firms to be successful in the long term. Today’s law firms face significant internal and external challenges as they strive to increase net income per partner and compete for both clients and lawyers in the legal marketplace. Traditional models for law firm success that are outdated and law firms are realizing the need to reinvent themselves in order to survive. Common pressures facing law firms and law firm management today include: READ MORE >

It's no secret that there is an intensifying rush to consolidate within the legal profession. And of course, we expect the future to bring larger and increasingly complex mergers to the legal profession. Those are likely to include transatlantic combinations—and even multidisciplinary ones. READ MORE >

Firms that take the time to address business fundamentals now will be stronger now than they were before.

This is an ideal time to look at the fundamentals underpinning a law firm's business. We see four areas – costs, lawyer performance, client relations, and strategic focus – as requiring the most attention from firm management right now. Addressing these will ensure that a firm can take full advantage of what is available to strengthen it for the future. READ MORE >

One of the most significant challenges for law firms in the current economic and competitive climate is managing effectively both their strategic development and operational performance. The strategic development is concerned with achieving agreed mid-long term strategic objectives and a future market position which provides a platform for building some form of sustainable competitiveness. Operational management, in contrast, is essentially concerned with the current, more immediate, financial and economic performance achieved including the servicing and winning of clients and achievement of other key related performance targets (covering, for example, HR, service standards, etc.). READ MORE >

When two firms merge, it is an opportune time to take a fresh look and reassess the combined firm's practice management structure. Strong practice management may enable the newly combined firm to achieve higher profitability, obtain higher value work and enhance its client base. Even though the legal profession has experienced a period of peak profitability, most law firms have not fully capitalized upon their size and resources because they are still operating along office lines, or even worse, individual partner lines. READ MORE >

Many law firms have grown dramatically over the past few years. The challenge for any firm that has experienced fast growth is to be able to capitalize on the firm's new platform. The larger and more diverse and dispersed a firm becomes, the more attention must be focused on managing it. The reality is that growing a firm requires substantial investment in effective management to ensure the firm gets an acceptable return on its investment in growth. READ MORE >

To prosper and grow, law firms of all sizes must create strategic business plans for their individual practice groups. A good strategic plan may be as simple as three to five goals with action plans designed to implement them. READ MORE >

Changing Market for Legal Services Places New Focus on Practice Management

Law firms are recognizing that the days of operating like a regulated industry are fading fast. Like the airline, telecom, and rail businesses in prior years, forward-thinking law firms understand that they are operating in an increasingly competitive marketplace and that they must transform themselves in order to thrive. Practice management is one of the key components in this transformation for law firms to be successful in the long term. READ MORE >

One of the most significant challenges for law firms in the current economic and competitive climate is managing effectively both their strategic development and operational performance. The strategic development is concerned with achieving agreed mid-long term strategic objectives and a future market position which provides a platform for building some form of sustainable competitiveness. Operational management, in contrast, is essentially concerned with the current, more immediate, financial and economic performance achieved including the servicing and winning of clients and achievement of other key related performance targets (covering, for example, HR, service standards, etc.). READ MORE >

In every law firm there is a period during the year when the tension rises in anticipation of the announcement of new admissions to the equity. The period in many firms is characterized by high levels of secrecy, hurried meetings behind closed doors and a sense of political gamesmanship. READ MORE >

Opening a branch office is a great way for businesses to expand their operations beyond their home base. It provides an opportunity to reach new markets and customers and tap into the potential of a new geographic area. Taking the step of opening a branch office is a major decision, however, and requires careful planning and preparation.

When deciding on whether or not to open a branch office, businesses should assess the potential benefits of doing so. These include having a physical presence in a new region that can be used for sales and marketing, cultivating stronger relationships with existing customers, and establishing access to new talent pools. Additionally, businesses should consider the cost factors associated with such a move, including the upfront investment required, ongoing operational costs, the strain on existing resources, the need for legal advice and other compliance factors.

Once the decision to open a branch office has been made, the next step is to perform a feasibility analysis. This should include defining the purpose and objectives for the office, determining the necessary personnel and skill requirements, examining the expected cost of setup and ongoing operations, and reviewing any local business and regulatory laws. Additionally, businesses should research the local market to determine whether there is sufficient demand and opportunity to make the venture worthwhile.

From there, businesses will need to develop a business plan and budget to ensure the office meets their goals. This should include outlining the specific services they will offer, determining pricing and staffing models, and setting up the necessary infrastructure. Additionally, businesses should consider local incentives available, such as tax credits, to help reduce any potential costs.

Lastly, businesses need to consider the necessary legal and administrative requirements to establish a branch office. These include applying for permits, hiring employees, and setting up banking and accounting services. Additionally, businesses will need to ensure that all employees at the new office are adequately trained and familiar with procedures and protocols.

In conclusion, opening a branch office is a major undertaking that requires careful planning and thoughtful consideration of all relevant factors. By taking the time to properly assess the potential benefits and costs, as well as complying with all legal and administrative requirements, businesses can ensure that their expansion efforts are successful.

Growth is essential to the long-term survival of any business, whether it is opening a company in the USA, internationally, or expanding company offices. American and foreign law firms have grown by marketing to the public, acquiring lateral partners with portable practices, merging with other firms, and starting new branch offices. READ MORE >