While the precise timing of a downturn may be impossible to predict, it is important for law firm leaders to prepare well in advance, and that time is now. It is unlikely that the next downturn will be as sharp or as lengthy as the crisis of 2008, but law firms are increasingly sensitive to market forces, so preparation is critical.
The value of strong law firm leadership is at a premium today and while many firms have sought to develop younger partners as leaders, some of these individuals are opting out because law firm leadership appears to be too great a sacrifice. Ensuring that the right partners are serving in the roles and avoiding future leadership gaps will require addressing leadership disincentives today.
Mergers among law firms are continuing to occur at a high rate. And more firms than those completing mergers are engaged in exploratory discussions to determine if a merger makes strategic and business sense. Periodically assessing the firm’s competitive position and strategic priorities can help to assess merger inquiries from the perspective of what is best for the firm.
For many law firms growth offers the opportunity to preserve or improve competitiveness, economics and market position in a rapidly evolving industry. For many firms today, the question is not whether law firms should be pursuing growth. Growth, in one form or another, is a strategic imperative. The question is how firms will achieve it.
What does culture really mean? And is preserving it always a good thing? While culture can certainly provide the glue that ties lawyers to the firm, there are always lawyers who choose to go elsewhere as a result of the culture. And different generations of the firm may value different aspects of the culture.
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