The confluence of industry-wide change and demographic transition begs the question: Who will be the owners of law firms of the future? Not only will the composition of firm partnerships differ in terms of size and demographics, these law firms will be competing in an unprecedented environment requiring a different ownership skill set than the one which worked for firms 20-30 years prior.
In today’s world, business cycles are moving more quickly. Firms need to be aware of how these cycles will impact demand for the firm’s services. Understanding how your practices are positioned and what that means for investment, divestment and management is critical.
As law firms continue to face a rapid rate of change in the legal industry, strong leadership will be critical to agile and effective decision-making, and too great of an emphasis on democracy will hamper firms in their efforts to compete and adapt to the changing marketplace. By defining the appropriate leadership criteria and selection processes and investing in partner consultation and leadership development – firms can better balance historically democratic partnership models with the stronger leadership models required to succeed in the future.
Most law firms today do a relatively good job developing and articulating competitive and thoughtful strategies. But successfully executing those strategies remains a challenge for many law firms.
Many law firms are focused on differentiating themselves from competitors. But what separates one firm from another in the eyes of the client, talent or the market? Years ago, many firms cited culture or quality as the characteristics of their firm which distinguished it from others. However, in today’s legal industry, most clients view quality as ‘table stakes.’
Fairfax Insights are distributed monthly by email.
