A year ago we began tracking the advent of fundamental change in the large law firm world. As is our habit, we rather grandly labeled it “The Change Agenda“–a combination of vectors that in our view had the prospect of forcing a conservative, risk-averse community to move out of its comfort zone. Where are we today? The outside investors bearing sacks of subversive cash haven’t arrived yet; they must be caught in traffic trying to get to Bear Stearns. And the transformational technology remains a slow-gestating messiah, though a fixture on the talk show circuit. But the other two change vectors, significant shifts in the attitudes and habits of clients and in the law firm talent model–now, make that models–seem clearly upon us and, even when the supply and demand curve shifts, likely irreversible.
There are plenty of disparate events that support the observation that this change business is more than just a sideshow. On the customer front, two examples: Half of The American Lawyer ‘s 20 A-List firms are on record this year as starting alternative fee arrangements with important clients such as Pfizer and Citibank. And, if Microsoft could chop K&L Gates and Sullivan & Cromwell from its preferred provider list, what client-firm relationship is inviolate? On the talent models, we all know the litany of layoffs, deferrals, partner departures, and embraces of so-called competency models. Add to that the fact that outsourcing now has its own initials–LPO (Legal Process Outsourcing, for those few of you who haven’t been in the conversation)–and law firm HR just got harder and global.
