What Some Law Firms Are Doing To Cope With the Economic Downturn
Firms with institutional clients are doing everything they can to enhance relationships with their top tier clients. Top tier business and other institutional clients often represent 20% of a law firm’s clients and 80% of the firm’s business and fee revenue. Many are doing structured client satisfaction interviews/reviews with these clients. We are finding many more law firms of all sizes having been doing this during the past year. Our business in this area is up substantially. During the last six months we have conducted and concluded 12 client satisfaction interview projects for law firm clients.
Law firms are doing other things to demonstrate that they are listening to their clients. Visits to client businesses, client seminars, flexible hours and appointment schedules,alternative fee schedules, etc.
Solos and small firms are doing everything they can to keep as much of their overhead variable as possible and are avoiding taking on additional fixed overhead. Some are office sharing,working from home-based offices, using virtual office arrangements, and using virtual secretaries. We have been advised that some are outsourcing secretarial work offshore to India.
Firms are reducing non essential overhead but increasing marketing/client development investments.
Large and small firms alike are making additional use of contract attorneys on a project basis.
Attorneys are using coaches, mentors, and accountabilty partners to help them focus their practices and prepare them for the future.
Some firms are reducing headcount by laying off attorneys and staff.
Firms of all sizes are managing cash flow very carefully.
