2013 Will Be Off to a Slow Start.
As reported by Debra Cassens Weiss in a January 15, 2013 post in the ABA Journal online version, a recent report by Citi Private Bank’s Law Firm Group and Hildebrandt Consulting says that the boom years of 2001-2007 and double-digit profit growth of law firms were an aberration. Productivity is now down among income and equity partners, expenses are up, clients are getting more discounts after demanding them, and profit growth is in the single digits. The report forecasts a slow start for 2013, possibly improving later in the year.
The report advises law firms to:
• Seek feedback from their clients.
• Develop a clear strategy for growth, perhaps by focusing on key practices, industries, clients or regions. Firms rethinking their business model should also focus on efficiency, possibly by outsourcing backoffice functions or moving them to cheaper locations.
• Practice good leadership through transparency, inclusiveness, checks and balances, and tolerance for dissent.
• Pay heed to culture when developing a business plan, contemplating a merger, or making lateral hires.
• Keep balance sheets strong.