Thursday, 16 July 2015

Winter Is Coming

If you are convinced that your law firm is on solid footing on the client attraction front, what would you do if the economy lost ½ its value in a recession or an economic crisis? Our friends across the Atlantic faced the same issue in 2008 when a 50 year boom in the sale of legal services came to an end. Thousands of law jobs vanished, law firms went bankrupt and law firm partners who could not bring in books of business were de-equitized i.e. kicked out of the partner table.

The primary challenge was that during this 50 year boom of abundant business for the law firms, the needs of companies were obvious and they were actively letting law firms know they had needs and law firms could pick, choose.
After the slump, law firms had to learn to uncover value, to unlock it because the abundance had vanished and they did not know how to uncover needs. Unlocking said value was a strong skill to have because in the drought all the streams and rivers had dried up so wells had to be dug by law firms.

Your law firm is probably not under the gun yet but you will be at some point in your long and hopefully, illustrious career. Will you wait for the Central Bank to force you to raise your capital to $25 Billion or go bust?

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