An op-ed piece entitled The Law Firm Business Model is Dying appeared yesterday on the Wall Street Journal’s website authored by Clifford Winston and Robert W. Crandall of the Brookings Institute.Winston and Crandall are co-authors of the book, First Thing We Do, Let’s Deregulate All the Lawyers, which was published last year by Brookings and argues that the legal professional should be deregulated because it is a monopoly, charging prices for services that cannot be economically justified.The crux of yesterday’s article is that the legal industry business model is unsustainable due to the fact that large clients are taking more work in-house to reduce costThe authors argue that “the rational response would be for new, low-cost legal firms to start up, and for incumbents to reduce costs and attract new clients by providing innovative services. But that is happening only to a limited extent because of state licensing requirements and … [Read more...] about R.I.P. Law Firm Business Model?
Law firm business model
Taking a page from Silicon Valley startups, the Chicago Bar Foundation is seeking to re-engineer the law firm business model through a venture called the Justice Entrepreneurs Project, a legal business incubator for young attorneys looking to start their own firms.Businessweek profile of the project, the foundation is seeking to address two major problems plaguing the U.S. legal services market: an oversupply of attorneys and an undersupply of clients that can afford the current going rate for basic legal services.The foundation, which is the charitable arm of The Chicago Bar Association, leased a warehouse in the Chicago Loop and started recruiting young lawyers to join the 18-month program last summer. They started with 10 attorneys for the first six months, and rotate in 10 new recruits every six months. The first six months are spent doing pro bono work with local legal aid groups while the participants work on setting up their own firms. … [Read more...] about Chicago Bar Foundation Seeks to Re-engineer the Law Firm Business Model
Ward Bower of consulting firm Altman Weil has been predicting some big changes for large law firms that will affect the bottom line for many associates.Bower tells the Legal Intelligencer that law firms will be hiring fewer first-year associates, will be billing clients less for their work, and will be paying smaller salaries to the new hires. The traditional law firm pyramid model will be upended into a diamond structure, as law firms eschew hiring armies of associates that their clients don’t want to pay to train.Perhaps. Law firm managers, responding to a new survey from Bower’s consulting firm, agree—to a point. Changes are being made—but there is no, all-encompassing paradigm shift in many of these areas, they believe.The survey asked firms to assess whether 13 emerging strategies represented permanent or temporary changes to the law firm business model, according to a press release. The top four changes identified as temporary were: reduced first-year … [Read more...] about Law Firm Business Model Isn’t Changing All That Much, Survey Says
Here is the 4th key to breaking the 7-figure barrier for your law firm: Key #4: Pay attention to your firm’s finances.A 2014 LexisNexis survey of 309 U.S.- based law firms – 75 percent of which were firms with less than 10 attorneys – reports that 39 percent of a typical practice’s client accounts are past due. And of these past due accounts, only half are likely to be paid. That’s a lot of cash flow down the toilet. Seventy-three percent of small firms in that survey said they have past due accounts and 53 percent of firms have client accounts that are past due. So why aren’t lawyers getting paid?The number one reason cited by lawyers in the survey (82.5 percent) was “client financial hardship.” Here are the other reasons in order of prevalence:Client challenged value of charges.Miscommunication.Bill was for services performed too far in the past.Client disputed services.Bill format unclear to client.In the “Other” category … [Read more...] about Law Firm Business Strategies: 4 Keys to Breaking the 7-Figure Barrier (Part 4 of 4)
“Kochery& Partners LLP” the 1st International Indian Law Firm licenced by Qatar Financial Centre Authority in Doha on February 02 was inaugurated by HE Ambassador of India to Qatar Mr. SanjivArora. On this occasion HE Ambassador of South Africa Mr. SaadCachalia, Ambassador of Liberia Mr. Ibrahim K Nyei, Dr. Seetharaman (Group CEO, Doha Bank) and Juma Ismail Buanain (former Director of Qatar Petroleum) also spoke.Ambassador of India lauded Mr. Kochery for the humanitarian services he has provided to multinational community in Qatar. He also said that, “ QCF License would widen the scope of firm’s activities to meet corporate requirements”.Dr. Seetharaman highlighted “the importance of a corporate Law Firm in the growing economy where SMEs are the driving force and role model behind a large number of innovations and contribute to the growth of the economy. The Firm will be able provide direction on SME growth and introduce … [Read more...] about Indian Ambasador inaugurates 1st International Indian Law Firm in Qatar