There has been healthy chatter about the 2021 law firm merger market since last spring, when law firm leaders shuddered at the thought of what damage the COVID-19 crisis might inflict on BigLaw finances. Peter Zeughauser analyzes the BigLaw merger market in 2021 and senses that it seems poised for a return to normal. Indeed, by the end of January, it may feel like a snapback. By the end of 2021, last year's dip in the law firm merger market will be an anomaly, for a number of reasons.

It only took being blindsided by a global pandemic to finally impress upon Big Law the importance of trimming the fat. The sudden onset of the pandemic forced law firms to quickly make cuts they otherwise wouldn’t have dreamed of. Many of those measures now seem like they were long overdue.  But the real challenge now is figuring out how to keep the weight off.  Bruce McLean notes that the caution that prevailed when the pandemic first struck is prevailing for 2021.  People believe the economic situation will be quite similar.

By bringing in-person client interactions to a virtual halt, the COVID-19 pandemic has triggered a digital content explosion as law firms compete for the attention of clients and prospects. A new study of in-house counsel shows that providing substantive, actionable guidance remains the best way to rise above the noise, preserve existing client relationships, and win new ones.

These findings are detailed in the report, “How to Win and Protect Client Relationships in the Age of Remote Engagement,” released by strategic communications firm Greentarget, legal consultancy Zeughauser Group, and B2B branding agency Right Hat. The August 2020 survey of 75 in-house lawyers, including 37 general counsel, offers important guidance for law firms anticipating an extended period of remote outreach

There are a lot of ways for attorneys to reach prospective and current clients, and the pandemic has only increased the importance of an all-hands-on-deck approach, as lawyers try to replace the face-to-face interactions that used to occur at lunches, networking events and conferences. A new survey of general counsel, conducted jointly by strategic communications firm Greentarget, legal consulting firm Zeughauser Group and B2B branding agency Right Hat LLC suggests that when the messaging is relevant, timely, novel and useful, a simple phone call will do the trick.  While law firms have gotten creative in their outreach and content production, the simplicity of a personal, relevant message goes a long way.  Norm Rubenstein observes that the fundamentals of marketing and business development have not changed. It really comes down to whether your content and service delivery are aligned with what the client wants. 

As clients look to drive down pricing, exert influence over team composition and evaluate potential new legal counsel, law firms have to ask themselves if the juice is worth the squeeze when it comes to many RFPs. The reality is that RFPs are now a constant presence in the marketing and business development process. But just because something is prevalent doesn’t mean it’s always in the best interests of the firm.

Mary K. Young notes that the prevalence of RFPs in recent years has increased, and not always with good effect. Department resources are finite. Firms should be very selective even if they are not using marketing resources. Knowing which RFPs are worth engaging on and which ones should be met with a hard pass isn’t always easy. 

And while RFPs are a necessary evil for law firms, Kent Zimmerman notes that many firms also have room for improvement to set priorities on which ones they invest the firm’s resources in answering based on which are more likely to lead to work that uses the firm for its strengths and commands its rate.

Collecting on legal bills during the COVID-19 pandemic hasn’t been easy, but fueled by a desire to fill their coffers with cash, many firms are willing to give discounts in exchange for quick payment this year. Mary K. Young observes that law firms are often providing temporary discounts or allowing slower payments in order to maintain strong ties. For important, strategic clients, it’s necessary for the relationship partner to have conversations with clients about their cash flow. And It could be another six months, or it could be 2022, before rates and billing arrangements return to normal.

At the Legal Marketing Association Annual Conference, Mary K Young will moderate a panel discussion focusing on management strategies employed by some the of fastest growing law firms. 

This interactive session will highlight three successful firms and the strategies they employ to deliver results that outperform most other firms even when faced with extraordinary challenges.  The panelists will discuss:

• Techniques these firms use to drive revenue per lawyer (RPL) growth
• The strategies, methods, and approaches that differentiate these firms from others, particularly in light of the current downturn
• The role these leaders play in driving strategies that work and how they create buy-in with internal stakeholders to execute their firms’ strategies
• Advice and tips these trailblazers would offer to their LMA peers who are looking to do the same within their firms

2:30 – 3:15 p.m.

October 21, 2020

For more information or to register for the conference, visit LMA Annual Conference.

Zeughauser Group's 2020 Pocket Guide to the American Lawyer Rankings of the Am Law 200 by Profits Per Equity Partner and by Value Per Lawyer; The A-List; The Global 100; The Global 200; The China 45; The Asia 50; and The Corporate Scorecard.

You can download the ZGuide here.

If you would like a hard copy of the 2020 ZGuide, please send an email to zgadmin@consultzg.com with "2020 ZGuide Request" in the subject line and provide your mailing address.

While many underperforming law firms can often squeak by with a deficient number of rainmakers who bring in clients or with unwanted attrition, these weaknesses are now more of a liability to the business as firms tighten their belts during the ongoing coronavirus pandemic.  Kent Zimmerman sees a common thread running through these types of firms: they are either under-scaled or under-profitable relative to their competitors — or both.  In addition, underperforming firms sometimes lack a big enough bench of next-generation stars and have upcoming leaders who question whether the business has the balance and resilience to compete on a long-term basis.  Another similarity of these firms, Zimmermann mentions, is over-capacity — having too many people and not enough work.

A political stand on LGBTQ rights by GE five years ago met with acclaim in many quarters but also led to criticism from some legislators and to a contentious proposal at the company’s annual meeting claiming strategic hypocrisy. But the harshest criticism came from employees who disagreed with the company’s position and lamented that “political correctness” had run amok at GE.  Alex Dimitrief writes about the challenges GE’s leadership faced after taking on the issue and offers lessons for directors to consider as more and more companies ponder corporate activism.  In today’s body politic, however, even the most well-intentioned corporate activism on social and political issues will never be easy or for the faint of heart.