Will Your Law Firm Thrive Amidst Industry Shifts?
“Largely stagnant growth in law firm service demand has persisted for the past six years, despite signs of a strengthening economy”
Law firms, we’ve done the research for you: I hope you will find this industry snapshot useful.
So, what’s going on? According to a study performed by Georgetown Law School, “Largely stagnant growth in law firm service demand has persisted for the past six years, despite signs of a strengthening economy, which reflects a slow but ongoing erosion in the law firm percentage share of overall legal market spending. Continuing segmentation of the market or legal and legal-related services is imminent. Going forward, the range of activities that only traditional law firms can undertake will continue to narrow.”
What’s the cause? Shifting Client Demands. Clients expect more value for their legal spending (increased efficiency, predictability, and cost-effectiveness per dollar). Now more than ever, clients are willing and capable of combining services of many different service providers in order to achieve greater value, causing the legal market to shift from seller-driven, to client-driven.
What’s the problem? Many firms rely on their traditional economic model that has been successful in the past, and are reluctant to make any dramatic operational changes to this model. While keeping the traditional economic model may be an acceptable short-term strategy, failure to respond to shifting trends and the changing expectations of clients could lead to law firms risking their market positions in the future.
What can your firm do to thrive? Streamline costs and inefficiencies in your current processes by taking steps to improve your budgeting capacities for client matters, adopting financial systems to facilitate alternative fee arrangements, accommodating outsourcing of certain functions like document review and e-discovery, and implementing project management processes. Be proactive in pursuing new strategies to meet concerns and expectations of clients, rather than taking the passive approach of the majority of your competition.
Click on the below image to view our McKinney Study of the State of the Legal Industry 2016:
Prior to joining McKinney, I spent ten years working in the real estate department of a law firm, which gave me valuable insight into the short and long-term operational needs of law firms. Now, as the Executive Vice President of Corporate Services for the McKinney team, I am able to utilize my prior experience for advising law firms on their corporate real estate strategy and requirements.
As McKinney Advisors, we are focused on worldwide corporate real estate services, and are experienced in working in the legal industry. Our differentiators? Entrepreneurial agility to fast-track the decision making process from your perspective, ability to think outside the box, and elimination of bureaucracy by using a goal-oriented and consultative approach. We provide:
- Transactional & Leasing Strategy with active participation in lease negotiations
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- Ongoing Lease Support (we feel our brokerage fees warrant full scope and ongoing services)
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Check out one of our success stories representing a legal client. Contact me today for a free consultation! email@example.com or 858.519.3247
Source: Georgetown Law School
Julie Dunlap, Executive Vice President of Corporate Services, brings 17+ years of experience in commercial real estate brokerage, investment, management, and consulting. Email Julie today at firstname.lastname@example.org, or call 858.519.3247