The Future Of The Law Firm
Post on 06-Dec-2014
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The Future of the Law Firm in the Twenty-first Century
Kowalski & Associates
Our Inspiration
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20th Century Growth
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The Last Quarter of the 20th Century
• 8% annual growth compounded• 87% of US firms had branch offices• 23 law firms had more than 1,000 lawyers• 100 law firms had PPP over $1,000,000
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The Bubble Bursts
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Fallout• Legal sector loses more
than 35,000 jobs• More than 10,000 lawyers
displaced• Vast reductions in legal
spend
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New Billing Models
• Alternative fee arrangements proliferate• Specialty boutiques• Commoditization• Reduction in premium work
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The Pie• Shrinking•More players looking for slices
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Alternative Fee Arrangements
• Fixed Fees• Portfolio Pricing• Contingency• Reduced Hourly + Premium on successful
conclusion• Convergence
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New Law Firm Models
• Reduced headcounts• Reduction in
partnership opportunities
• Increased globalization• Three tier associate
ranks
The pyramid is disappearing
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Competition• Law Firms competing with
corporate law departments• Law firms competing with
LPO’s• “Make” or “buy” decisions
The battle for the legal spend
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Competition
• Mid-size firms • Specialty boutiques• Staffing companies• LPO’s
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Competition• Outsourcing• Down sourcing• In sourcingThe battle for the litigation spend
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The Future
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Capital
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The future
• Increased Competition• Downsourcing, in sourcing, outsourcing• Technology• Make or buy decisions at every step of the
way
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The Future - Competition
• General counsel • Outside BigLaw• Midsize law firms• LPO’s• Staffing companies• Virtual law firms• Specialty boutiques
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New Billing Models
• Project based• Piece Work• Capitation• Hourly• Subcontracting – directed or counsel selected
The Law Firm as General Contractor
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© Copyright, Jerome Kowalski, June 2011. All Rights Reserved
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