Complacency Puts Midsize Law Firms at ‘Serious Risk,’ Consultant Says
Midsize law firms weren’t hit as hard by the economy as their larger counterparts, but in the long run they may be at a disadvantage.
The reason: Complacent midsize firms aren’t reacting to streamline their work processes and cut costs, according to law firm consultant Joe Altonji, the leader of Hildebrandt’s strategy practice.
“In various conversations recently I’ve been reminded of the dangers of resistance to change inherent in most organizations, and most notably in law firms,” Altonji writes at Hildebrandt’s blog. “And midsize firms are right now at serious risk.”
Altonji says big firms realize that the cost of delivering legal services is critical. They are making their work processes more efficient, offering fixed fees or portfolio pricing, and promoting associates based on competence rather than time on the job.
Partners at midsized firms, on the other hand, are telling Altonji that they don’t need to worry about work processes because their rates are cheaper, and that their clients don’t want fixed fees.
The midsize firms are in jeopardy, he says. “We could easily wake up a few years down the line to find larger firms positioned to profitably capture large parts of the better clientele of the midsize firms, along with greater share of wallet of clients currently split between multiple firms and types of firms.”
