Make More Rain : economic outlook, marketing

LexisNexis Redwood Business Development Application Launches

MichelleStPierre — Tue, 29 Dec 2009 21:19:00 GMT

The economic challenges of 2009 have resulted in a growing demand within law firms for comprehensive client relationship, practice area and industry-footprint intelligence, as well as effective identification of the right business development opportunities...(read more)

Alan Greenspan Versus The World - The Debate Matters To Law Firms

Admin — Fri, 11 Apr 2008 07:00:57 GMT

There are differences in opinion on regulation of financial markets. On the one hand, Alan Greenspan takes a mostly hands-off approach to financial markets, except when risks to the economy appear. Martin Wolf, among others, have criticised Mr. Greenspan for his policies that they believe contributed, even caused, the current credit crisis.

They both seem to enjoy sparring via the Financial Times. For a little background, read what Mr. Wolf wrote of Mr. Greenspan after he retired as Federal Reserve Chairman (requires registration to read). It was written about in the New Economist blog with a summary.

In March, Mr. Greenspan opined in the Financial Times that regulation won't create a "perfect model of risk". He concludes:

"Thus it is important, indeed crucial, that any reforms in, and adjustments to, the structure of markets and regulation not inhibit our most reliable and effective safeguards against cumulative economic failure: market flexibility and open competition."

Mr. Wolf responded in his forum with nine points in opposition to Mr. Greenspan (read through the comments to see Mr. Wolf's response). He and others criticised the former Chairman for keeping interest rates too low for too long after the brief recession of 2001. This, they maintain, led to the massive asset bubble fueled by great liquidity. Mr. Wolf also aludes in one of his points that far too little attention is still being given the "excessive savings outside of the United States". Some fear global inflation in excess of 5% will be the result.

Mr. Greenspan answered in the Economist's Form section of the Financial Times that was published in print April 7th in an Op/Ed piece. Again, Mr. Greenspan set the rules of the game as black and white:

"My view of the range of dispersion of outcomes has been shaken, but not my judgment that free competitive markets are by far the unrivaled way to organize economies. We have tried regulation ranging from heavy to central planning. None meaningfully worked. Do we wish to retest the evidence?"

Mr. Wolf responded on April 8th in an editorial titled, "Why Greenspan does not bear most of the blame". He grants many of Mr. Greenspan's arguments, but finishes:

"Regulation cannot be perfect. But the worse the outcomes now become, the more difficult it will be to defend free financial markets at all. Without a credible design for regulatory improvement, it will prove impossible."

The arguments on both sides are well worth the time spent reading and provide a better understanding of the likely debates to be held later this year contemplating additional regulation of the financial markets. The breadth of reach that resulting legislation will have affects just about every area of the legal market in some shape or form. The thought leaders are debating it right now. Take some time and read the opposing views. On whose side do you favor?

We have begun taking submissions for the 2008 Law Firm Economic Survey. If your firm is interested in participating, please contact Brian by clicking here.

Planning Helps Law Firms Weather A Bad Economy

Admin — Tue, 04 Mar 2008 08:00:00 GMT

Although the housing market has grabbed headlines recently as the credit issues continue to unravel, the indicators have been present for several years. The businesses who planned for this are now in a better position to adjust and prosper while other businesses close their doors.

Law firms aren't insulated to market downturns. The New York firm Thacher Proffitt & Wood "informed around 50 associates that their futures at the firm were uncertain because of the collapse of the market for mortgage-backed securities, an area where the firm had had a leading practice." New York Lawyer, 11/28/2007. CitiBank and Hildebrandt released a Client Advisory predicting the "perfect storm" of indicators hurting the legal industry.

It doesn't have to be this way. The firm can retain talent even when the marketplace shifts by planning not just for economic good times but for bad times as well. How?

Retain Earnings
Rather than distribute every dollar of profit, project into the future and if indicators suggest that there may be a drop in business in a particular practice area, allocate additional funds to maintain your marketing budget and talent retention.

Prepare for the upswing
Have associates hit the road with partners to build and maintain relationships in the industry. If your client survives the poor economy it will come back stronger. Cement those relationships while mentoring associates so that when the market comes back, your firm has already done the legwork to expand the business.

Transfer Knowledge
Forms are gold, especially in document-driven industries making up transactional practices. Have associates review all firm forms against available case law and take the opportunity to build a solid foundation of accurate and up-to-date forms. Offer an incentive to create "products" representing reproducible work.

Help with the overflow
Just because one industry is hurting that doesn’t mean other areas of the firm aren’t thriving. Give associates an opportunity to absorb work from the more active areas of law. In fact, a firm recently did this when Dechert, LLP, initially layed off 13 associates, then changed its mind and re-assigned them to other practice areas.

Some associates won't have the sufficient motivation to change. That is fine. Keep the ones who do.

Morepartnerincome.com is sponsored by Juris®. For information about Juris products and services for increasing law firm performance and partner income contact Juris National Sales Center:

877/377-3740, e-mail info@juris.com or go to www.Juris.com.

Marketing Advice for Lawyers During Economic Down Cycles

Admin — Fri, 15 Feb 2008 08:00:00 GMT

I had a chance to catch up with John Remsen, Jr. last week and asked him about the economic outlook for law firms in 2008. Like many, he believes we are in the midst of an economic down cycle that will affect how law firms perform in 2008.

In spite of the downturn, Remsen says that certain practices like bankruptcy, litigation and employment will do quite well. Other areas won’t be so lucky. He explained that law firms that are heavily dependent on cyclical industries like real estate should be prepared to ride the waves of the economic cycle. For example, a firm that does lots of commercial real estate transaction work can position itself as “workout specialists” during the down cycle.

Some advice from Remsen during a slowing economy:

Partners need to push work down to associates so they free up time for marketing and business development. Most compensation systems tend to reward the opposite behavior.
With this time, they should go visit top clients to thank them for their business, and learn about their issues and concerns.
Invite clients into the firm to discuss industry trends and opportunities.
Resist the temptation to cut marketing expenses. Most of your competitors are cutting back so you have a chance to stand out and solidify your position as the economy improves.
Make sure that marketing and business development activities sustain themselves consistently, in both good times and bad.

At the end of the day it is about relationships, says Remsen. He advises firms to take advantage of the down cycle to invest in relationships. In so doing, you position your firm to take off as the economy improves….as it eventually will.

John Remsen, Jr. is the founder of The Remsen Group, which in partnership with LexisNexis and others host the Managing Partner Forum. John has recently co-authored a book, The Little Black Book on Law Firm Marketing that can be purchased by clicking here.

Morepartnerincome.com is sponsored by Juris®. For information about Juris products and services for increasing law firm performance and partner income contact Juris National Sales Center:

877/377-3740, e-mail info@juris.com or go to www.Juris.com.