The Future Of The Law Firm

The Future of the Law Firm in the Twenty-first Century

Kowalski & Associates

Our Inspiration


20th Century Growth


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



The Bubble Bursts


Fallout• Legal sector loses more

than 35,000 jobs• More than 10,000 lawyers

displaced• Vast reductions in legal

spend


New Billing Models

• Alternative fee arrangements proliferate• Specialty boutiques• Commoditization• Reduction in premium work


The Pie• Shrinking•More players looking for slices


Alternative Fee Arrangements

• Fixed Fees• Portfolio Pricing• Contingency• Reduced Hourly + Premium on successful

conclusion• Convergence


New Law Firm Models

• Reduced headcounts• Reduction in

partnership opportunities

• Increased globalization• Three tier associate

ranks

The pyramid is disappearing


Competition• Law Firms competing with

corporate law departments• Law firms competing with

LPO’s• “Make” or “buy” decisions

The battle for the legal spend


Competition

• Mid-size firms • Specialty boutiques• Staffing companies• LPO’s


Competition• Outsourcing• Down sourcing• In sourcingThe battle for the litigation spend


The Future


Capital


The future

• Increased Competition• Downsourcing, in sourcing, outsourcing• Technology• Make or buy decisions at every step of the

way


The Future - Competition

• General counsel • Outside BigLaw• Midsize law firms• LPO’s• Staffing companies• Virtual law firms• Specialty boutiques


New Billing Models

• Project based• Piece Work• Capitation• Hourly• Subcontracting – directed or counsel selected

The Law Firm as General Contractor


© Copyright, Jerome Kowalski, June 2011. All Rights Reserved

The Future Of The Law Firm

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