Over the past decade, significant changes have occurred within the legal profession that have required law firms to do long-range planning. The market for legal services has become, and will continue to be, more competitive. Mergers and acquisitions have reduced the number of “blue chip” clients available to be served by law firms. Overly aggressive and poorly managed corporate clients have experienced financial distress, others have joined with larger and better managed organizations, and many have gone out of business.The more progressive firms have initiated aggressive marketing programs in an effort to retain and expand work performed for existing clients and to attract potential clients.
To compound the frustration and anxieties that prevail among partners in many firms, cost-conscious clients are less loyal to established firms and have initiated “transactional relationships” with several firms, even in the same city. Today, it is commonplace for clients to negotiate fees, to seek volume discounts and, for certain types of matters, to propose contingency and risk forms of billings. Many firms are under growing financial pressures because of the resistance of clients to fee increases and greater financial expectations and needs of partners. This article presents guidelines for lawyer managers who need to plan, but who are unfamiliar with planning concepts for a law firm.
