Want to get this daily news briefing by email? Here’s the sign-up.
WHAT WE’RE WATCHING
PAYING ATTENTION - If you thought law firms’ recent embrace of fringe economic concepts like “managing expenses” and “making sure to get paid” were just passing fads—think again. According to a new report from Citi Private Bank’s Law Firm Group, focusing on collections and cost-containment is only going to become more crucial as 2021 wears on. As Law.com’s Andrew Maloney reports, the Citi analysis, released yesterday, notes that some firms were so proactive with their collections pushes last year that they were able to meet revenue goals early on, and even delay some collections into 2021. Now, the report says, the key will be remaining focused on realization. Meanwhile, Gretta Rusanow, head of advisory services for Citi Private Bank’s Law Firm Group and the author of the report, told Maloney that firms may not cut costs this year so much as redistribute them in order to improve efficiency. “I think it’s important to note I’m hearing firms talk about, yes, they might reduce their secretarial staff ratios. On the other hand, they may simply be shifting those staffing numbers to other areas, whether it’s technology, or more billings and collections and pricing staff, or business staff,” she said.
