The Big Picture Blog reported last week on big law firms resorting to “suicide prices” to get business. It defines “suicide prices” as prices where the firm loses money, but keeps associates busy. Here is the post.
The solution? Getting rid of partners:
There are simply too many partners and associates at many firms. Adding to the firms’ economic challenges, the revenues of legal process outsourcers (LPOs) are expected to grow 85 percent in the next few years. The result is more attorney layoffs are likely ahead, he says.
Big firms have “avoided the really difficult, awkward conversations” about trimming partner ranks. But “that day is coming, because that’s where the money is,” he says.
“Most partners actually don’t understand the firm’s business. It’s not their job. They want to serve their clients. That’s why they made partner. But it presents a tremendous challenge to managing partners” in a time of economic challenges, MacEwen says.
A lawyer has job security in private practice only if they have their own book of business. A lot of lawyers in big law firms don’t get this. Some do. But a lot don’t.