The practice of law is undeniably changing. There is no easier place to witness this change than in BigLaw. Large law firms had one of the worst revenue/profit years ever in 2009. More than 2400 law jobs were lost throughout the country and big firms were scrambling to make adjustments.
The billable hour has been a subject of a lot of scrutiny recently and this format of billing is increasingly under pressure to change. Demanding clients, smaller legal expense accounts, and just not enough work to go around has caused everyone to rethink how they engage in the business of law.
Many out there claim that this is the end of the law as we know it, and that small law practices and mid-size firms cannot possibly survive in a market where the largest most powerful firms are struggling to survive. I disagree.
What does a small or mid-size firm have as an advantage over a large firm? Well for starters a small operation is lighter and better prepared to make rapid changes to adapt to a rapidly changing market. Small firms and solos, because of their lack of beauracracy and red tape, are particularly suited to adapt and change directions very quickly. This lightness or nimbleness will make small and mid-size firms very appealing to even the largest corporate clients who are weary of vacillating revenue streams.
Another advantage of a solo or a small firm is low overhead. With the improvements in technology, a small firm or solo can collaborate with anyone anywhere on the globe. This ability to collaborate globally will give small practices the ability to compete with large international firms for business. The competitive edge of having hallways full of lawyers that can work together that large firms have had for years is diminished when a solo attorney can go on Linkedin in or on Twitter and get feedback on an issue from any attorney anywhere in the world.
What you need to do is remain fluid, be willing to adapt to rapid change, and most importantly, listen to your clients. Take their business model and their opinions into consideration when you develop a billing structure. Obviously clients will usually want to pay the least possible for legal services but maintaining a two-way dialogue about expenses is important for the psychology of the relationship between a lawyer and her client.
There is a great article on Law21 that talks about the rapid changes in the law and how they will likely impact the future of law practice. I read it and found it very insightful and informative. Give it a read by clicking here.
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