Within the remembered past, law firms have built their economic success and profitability models on the power of gearing. Partners are leveraged by ranks of associates who, under the watchful eye of their sponsoring partners, perform legal work that generates revenue that the partners take home. As an added benefit, ‘enough’ associates acquire the skills and experience needed to qualify as partners and the cycle is renewed. Life has been good under this model, but can it continue?
A few insightful law firms are beginning to realise that, in fact, the model is at risk. They recognise that it can only continue as long as there is a sufficient supply of young adults willing and able to fill the associate ranks. Unfortunately, an objective look at global demographics tells us that us that this supply is drying up.
