Lawyers and law firms are suffering. Law firm layoffs, de-equitization of partners, revenues and profits depressed, law firms closing, increased competition, and commoditization of legal services are all putting increased demands and pressures on firms and hitting the profession like never before. It's clear that law firms are not immune to the current downturn.
Just a few weeks ago, the Wall Street Journal Law Blog predicted that in 2008 many lawyers will be lucky to meet last year’s revenues. The 2008 Hildebrandt Client Advisory summed it up accurately when they said: “The competition to win and keep clients is intensifying notwithstanding the downturn”.
Besides costs cutting and other belt tightening measures, the only thing that will help is to be able to continue to get and keep profitable clients. The lawyers that have a profitable book are not being fired or de-equitized!
It’s difficult to find an instance where someone with a substantial book of business didn’t remain an equity partner and command a high salary, as well as being in total control of the economic events currently taking place.
Make business development a priority for 2009 and see for yourself.
Happy Holidays.
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