The American Lawyer magazine just published their annual survey of large law firm (AmLaw 200) leaders. Some key findings:
Despite the economy, 73% are optimistic about their firm’s future in 2012.
Transactional practices at these firms continue to struggle. Only about 20% are expecting to see any revenue growth in this area.
A majority (58%) are expecting only modest (less than 5%) profit increases for 2012.
54% reported that clients refuse to pay for work of first and second year associates.
75% used contract lawyers in 2011 (up from 55% last year). 37% outsourced work to lawyers managed by third parties (up from 25% last year). 28% outsourced work to non-lawyers managed by third parties, (a two-fold increase over last year).
With a continuing emphasis on greater efficiency, firms are increasingly expecting their lawyers to have project management skills. One respondent said that, in order to succeed, it is not enough to have excellent legal skills, “you also must be able to manage teams and a budget, interact with people, and anticipate your clients’ needs.” There is also an increased importance placed on the skill of developing new business (it is no longer enough to just maintain existing client relationships).
89% are expecting to add lawyers in 2012 through a combination of lateral and entry-level hiring. However, only 29% are expecting a larger first-year associate class in 2012 (though that is up from 13% in 2011). 74% are expected to hire lateral corporate partners. 82% are expecting to add lateral litigation partners.
Only 14% reported deferring starting dates in 2011, compared to 46% in 2010.