06/01/2011 11:53:00 AM EST
Partners: Start Your (Marketing) Engines
According to the "Firms in Transition Survey
2011" reported on Law360 on Tuesday "unproductive and underproductive
partners" (read non-rainmakers) will be cut by 20% of the law firm responding
to the Altman Weil (no follow) survey
this year. The good news is that the percentage is less than the 33% of firms
that cut partners last year.
On a separate note, it is also surprising how many law firm respondents
don't seem to get it. By that I mean:
- 95% said
they plan to raise hourly rates in the coming year (this is after 66%
reported they "increased gross revenue in 2010). What are they thinking?
Do they really believe that clients aren't paying attention to these
surveys? It's beyond me; and
- 75% of
respondents "think that alternative fee arrangements will continue to
increase," and they "increasingly find themselves being forced (emphasize
mine) to consider alternative fee arrangements to remain competitive."
Rather than being proactive (since clients are obviously more interested
in AFAs), they are being "forced" to offer clients what the majority of
firms recognize as inevitable. Baffling!
Interesting survey results to say the least. But, most importantly,
partners (especially those not doing much currently) need to be doing more
business development for their own survival; and offering services and fee
arrangements on terms clients want in order to become more productive in the
marketing area. Otherwise, not only may they be "cut" off, they may crash and
find themselves out of the race.
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