Thank you for sharing!

Your article was successfully shared with the contacts you provided.
It is heard so often it has the aura of incontrovertible truth: the legal market is stratifying; the Am Law 50 firms are pulling away from the Am Law second fifty, the Am Law second fifty is pulling away from the Am Law second hundred, etc. The strategy implications are profound: position is destiny—if you’re a smaller firm, you need to bulk up to avoid falling further and further behind. It’s sound strategic reasoning. The problem? The underlying premise is entirely false: the market is not stratifying. What jumps out from the data is that performance is stunningly variable across firms of all sizes and profitability levels. Put differently: position is not destiny; any firm can grow revenues and profitability strongly.

Let’s start with what stratification would look like. If we lined up the Am Law 200 firms from largest to smallest (horizontal axis) and plotted the revenue growth of each firm (vertical axis) we’d see something like Figure 1: clusters of similar growth rate for firms in the various size ‘strata’ with steps down in growth rate as we move from strata of larger to smaller firms (left to right).

This content has been archived. It is available exclusively through our partner LexisNexis®.

To view this content, please continue to Lexis Advance®.

Not a Lexis Advance® Subscriber? Subscribe Now

Why am I seeing this?

LexisNexis® is now the exclusive third party online distributor of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® customers will be able to access and use ALM's content by subscribing to the LexisNexis® services via Lexis Advance®. This includes content from the National Law Journal®, The American Lawyer®, Law Technology News®, The New York Law Journal® and Corporate Counsel®, as well as ALM's other newspapers, directories, legal treatises, published and unpublished court opinions, and other sources of legal information.

ALM's content plays a significant role in your work and research, and now through this alliance LexisNexis® will bring you access to an even more comprehensive collection of legal content.

For questions call 1-877-256-2472 or contact us at customercare@alm.com


Legal Research and Law Library ManagementBook

A formidable job... This completely revised edition of Legal Research and Law Library Management belongs in every law library, regardless of size, type or location. It...

Get More Information

You Can't Manage It If You Don't Measure It

How are you illustrating differentiation to clients and potential lateral targets? How are you measuring performance against peers? Use Legal Compass to benchmark a firm against its competitors, unearthing unique insights about performance, partner retention, market penetration and more. Click to log in, or begin your free trial.

Get More Information

Global Independent Law Firms Forum 2020Event

Annual conference bringing together the leaders of independent law firms from around the world, from 40+ jurisdictions.

Get More Information

The Asia Legal Awards 2020Event

Where the region's top lawyers, law firms and in-house teams will gather to celebrate their most stellar achievements of the year.

Get More Information

ALM Legal Publication Newsletters

Sign Up Today and Never Miss Another Story.

As part of your digital membership, you can sign up for an unlimited number of a wide range of complimentary newsletters. Visit your My Account page to make your selections. Get the timely legal news and critical analysis you cannot afford to miss. Tailored just for you. In your inbox. Every day.

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.