Client retention and competition for new legal accounts will draw intense 2011 attention, as outlined in a Washington Post story today titled "Law firms use layoffs to add to profits" by Amanda Becker.
According to the story, "The legal specialty group at Wells Fargo Wealth Management said firms in the Washington area saw profits per equity partner rise 8.4 percent during the first nine months of the year compared with the same period in 2009, despite the fact that revenues were flat. The bottom line was helped by paying out an average of 4.8% less for salaries, as firms tweaked headcounts and stopped paying termination expenses to former employees."
As GCs continue to slash budgets for outside legal expenses, law firms are taking an even harder line on prompt timecard submissions and collections. Increased alternative fee arrangements will follow the law of supply and demand, potentially making new accounts less lucrative.
Read the full story here.
Monday, December 13, 2010
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