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June 15, 2016

A free research report you can’t afford to miss

If you are the slightest bit interested in how the legal profession is changing and what it means to you, I hope you’ve already seen Altman Weil’s recent release of its annual Law Firms in Transition survey. But just in case you’ve been a little busy and missed it, I highly recommend that you download it today. The report costs nothing, but failing to find time to plan for the future could cost you quite a lot. (Full disclosure: LegalBizDev is a strategic partner of Altman Weil, but I would write exactly this same post even if we weren’t.)

The summary of the opinions of 356 managing partners and chairs is just a few pages long and covers a broad array of areas, with insights and recommendations focused on five key findings (p. i):

• Unreliable demand
• Surplus of lawyers
• Inefficient delivery of legal services
• Proactivity as a competitive advantage
• Resistance to change

The first question that appears in the detailed section of the report is, “Which of the following legal market trends do you think are temporary and which will be permanent?” The top three answers were more price competition (95% think this is permanent), focus on improved practice efficiency (93%), and more commoditized legal work (88%) (p. 1). Of course, all three can be addressed through legal project management (LPM).

But when Altman Weil asked the same group “Has your firm significantly changed its strategic approach to efficiency of legal service delivery?” only 44% said yes (26% said no and 30% said changes were “under consideration”). To put it another way, the majority of firms know what the biggest challenges to their future are, but they are not doing much to address them.

Personally, I think the true problem is much worse, and that most respondents exaggerated their efforts when they answered this question. I spend my life talking to law firm leaders about what they are doing to increase efficiency, and my guess is that the percent of firms that have made significant changes is closer to four percent than to 44.

The gap between what firms should be doing and what they are actually doing has existed for years, and the survey also dug into the details of what’s behind the problem. Authors Eric Seeger and Tom Clay concluded, “The biggest impediment to change, identified by 64% of law firm leaders, is that partners resist most change efforts” (p. vi). As a long-term strategy in a profession where client demands are changing rapidly, that’s a great way to insure that your job will be in danger.

The survey results include considerable documentation of the trouble that is already here, and of more trouble around the corner. For example, another question asked, “Which of the following activities is your firm proactively initiating to better understand what clients want?” (p. 9). I found the results particularly interesting because last fall, Altman Weil’s Chief Legal Officer survey asked for the client perspective on the exact same list of activities: “Rate the value to your law department of the following things law firms can do to better understand your organization.”

Comparing the answers revealed that many law firms are wasting their time doing the wrong things. “Conversations about matter management efficiency” ranked second in value for clients but only fifth among the things that firms were actually doing. “Post-matter reviews” ranked fifth for clients but was number 9 out of 10 for law firms. Of course, both of the factors that clients rated highly are key elements of LPM.

Meanwhile, some of the things that law firms are doing with their marketing time and money are of very low value from the client perspective. “Law firm participation in industry groups and events” ranked #2 for law firms, but #8 for clients. And “visits from law firm management” was #4 for law firms, but finished dead last in value – #10 out of 10 – in the eyes of clients.

In summary, this free report includes the best available data on what your competitors are doing in a wide variety of areas, including staffing, headcount, and pricing. So what are you waiting for? Download the complete survey now and turn directly to the sections that matter the most to the future of your career.

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