Trending for Law Firms in 2012: What to Expect This Year

Trending for Law Firms in 2012: What to Expect This Year.

Trending for Law Firms in 2012: What to Expect This Year

Here is the definitive list of items that will dominate the news for the legal profession for 2012.

It’s going to be a challenging year. Please fasten your seatbelts, hold on to the handrail and make sure that your arms and legs do not extend outside your car. We are in for an interesting year.

Growing Your Law Practice Productively: A Twelve Step Program for Curing Social Media Addiction

I don’t know about you, but if I see one more article telling me how important it is for me to grow my practice through social media, I may toss a grenade. If I see one more article entitled “Seven Important Steps to Take to Improve Your Social Media Presence”, I may toss a brick at my computer screen. If I get invited to one more webinar in which the sponsor promises to deliver the real secrets of social media, I will probably toss my laptop out the window. And if I get one more solicitation from somebody who touts himself or herself as the world’s greatest social media expert (whose most recent prior work experience was working as an accounts payable clerk), I may see if I can lay my hands on one of those Army surplus “Fast and Furious” weapons.

Social media is actually an amazing tool which has revolutionized marketing beyond anybody’s expectation. Its reach, scope, effectiveness and negligible hard cost are almost beyond description. After all, you are reading this piece, as will several tens of thousands of others through that medium.

But like every one of life’s special pleasures, social media has the potential for becoming a consuming addiction, preventing you from actually carrying on your craft.

On his old television show, “You Bet Your Life,” Groucho Marx interviewed a contestant who had twelve children. He asked him why he had so many kids. The contestant replied by saying “because I love my wife,” to which Groucho replied “I love my cigar too, but I do take it out once in a while.” You may love social media, but you do need to take a break from it sometimes.

How to Respond to Clients’ Needs to Reduce Budgets for Outside Counsel

Numerous surveys of corporate counsel recently conducted consistently report that corporations intend to reduce the amount spent on outside counsel in amounts ranging from five to ten percent and sometimes even higher. Corporations are turning to regular outside counsel advising them that next year’s legal spend will be lower. Outside counsel are being told pretty bluntly to either be part of the solution or be identified as part of the problem, with obvious adverse consequences to the firm.

Reductions in demand for legal services obviously means a shrinking pie and firms need to grab a larger slice of that reduced pie in an increasingly competitive and price sensitive market.

Here are some practical steps to take to meet law firm client’s needs.

Alternative Fee Arrangements, Value Billing and Metrics in a Dwindling Marketplace for Legal Services: Are We All Marching to the Beat of the Same Drummer?

As demand for legal services continues to dwindle, law firms are struggling to maintain market share, even as clients seem to be demanding increased value billing and alternative fee arrangements. Law firms are responding with increased value billing proposals and creative alternative fee arrangements. Yet, confusion abounds: The metrics for measuring the value of AFA’s provide virtually no guidance. Other than understanding the obvious, namely, that clients are demanding lower legal bills, law firms remain uncertain as to how they can best provide value billing and meaningful alternative fee arrangements. Too much confusion abounds at law firms as firms develop sophisticated AFA programs and clients too often seem indifferent; instead, clients seem too often just want to know what discounts are being offered. A principal issue is that clients want real value, while law firms seek every avenue to offer value. But, sometimes, the value added does not immediately translate in to revenue.

For lawyers and law firms to succeed in this market, they must establish themselves as marketplaces for value. The legal work and fees will follow.

Active Marketing of Legal Services is More Critical Than Ever; Each Lawyer Needs to Have a Business Development Plan and Relentlously Pursue it.

Marketing of legal services is more critical than ever. Developing and implementing a business plan must be an integral part of each lawyer’s daily activities. If the clients aren’t calling you, you need to be calling them.

The Law Firm of the Twenty-first Century

For sixty years before the onset of The Great Recession, law firms experienced a golden age of growth in every area. The law firm of the 21st century has undergone cataclysmic changes. The 21st century law firm is, simply put, operating under a new model. New norms emerged in every area, including the very structure of the law firm, partner compensation, associate compensation, tiered partnership, tiered associate levels, competition for clients, the very nature of the attorney client relationship. Responding to client demands for value billing, a new era of Alternative Fee Arrangements has emerged. Law firms find themselves in direct competition with corporate law departments for legal services, with both operating under severe budgetary constraints. Law firms and corporate law departments are also meeting these challenges by outsourcing, downsourcing and insourcing.

Fifty years of the golden era of law firms’ reliance on compounded annual 5% annual growth, upon which all firms relied in planning for the future gave way to a sudden downward demand for legal services. The legal services bubble has burst. Survival of law firms in the 21st century requires law firms to recognize the legal service balloon bust and that the straight upward arc of demand for legal services has reached its apex and the graph line is moving downward. Recovery by law firms of the legal services balloon bust will be long, arduous and for many painful.

Are 100 Page Responses by Law Firms to Client RFP’s Really Efficient or Necessary? Some Radical and Revolutionary Changes are Upon Us

With so many clients retaining law firms through the lens of purchasing agents, RFP’s have increasingly been required prior to a law firm being engaged. Many law firms, ground down by the cumbersome submission of RFP’s. Yet the combination of Alternative Fee Arrangements, commodotization of so many aspects of legal matters and stiff competition among law firms for business have nonetheless continued to grin and bear it, often frustrated with the ROI. There may well be radical changes ahead in cnnection with law firm RFP’s.

Front Page Review by The New York State Bar Association Committee on Lawyers in Transition of Navigating the Perfect Storm: Recruiting, Training and Retaing Lawyers in the Coming Decade

New York State Bar Association, Committee on Lawyers in Transition, Recruiting, Training and Retaining Lawyers in the Coming Decade More reviews can be found at http://www.mpmagazine.com/publication.asp?pubid=78AE6CEB-1078-4874-9ADD-AD003C5515CD&PDID=F1F4F4D5-F49E-4280-B3C5-58D05F18A220

Blog, blog, blog: Legal Blogging Really Pays Off; A Short Note

If you haven’t started to actively write legal blogs about your practice areas, here is evidence of legal blogging’s efficaciousness.

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