Biglaw

More Data Re: Firm Financial Performance Jan. to June 2010

By Terrence Galligan | Posted on

The American Lawyer (via law.com) has a piece (ominously titled “Law Firms ‘Shrinking Toward Profit Growth'”) reporting on midyear data gathered by Citibank’s Private Banking Group.

We’ve blogged about Citibank’s Law Firm Group before (here).  The source of their data was:  87 Am Law 100 firms, 50 Second Hundred firms, and 50 other firms.

Citibank’s latest findings based on their data gathering are consistent with those recently reported by Hildebrandt (which we blogged about here).   Among the findings:  1) revenues were flat; 2) demand was slightly lower than the first six months of last year; and 3) net income and profit was up, but this was mainly due to reductions in expenses (in particular reductions in attorney headcount). 

You should read the whole American Lawyer article for better understanding of how firms performed financially during the first half of 2010.

 

Q-2 Numbers Are In: Demand For Legal Services Remains Flat

By Terrence Galligan | Posted on

The well-known legal business consulting firm Hildebrandt Baker Robbins just published a report of its Peer Monitor Index, which includes information about key law firm business metrics for April – June of 2010.

You can read a summary of the report here.  You can read the whole thing here.   

Among other things, the report concludes that there has been “no meaningful growth” in the legal marketplace so far this year.  Accordingly, firms are continuing their aggressive cost cutting.

Moreover, a slowdown in the rate of productivity [hours per attorney] growth may “suggest[] that the legal industry may be facing a prolonged period of slow growth.”  The report continues: “If so, firms will face increasing pressure to balance hiring decisions against the shifting patterns of demand.”

We’ve blogged about the Peer Monitor system before, but to refresh you , it is a service that allows law firms to access their peers’ financial data (in the aggregate) in exchange for supplying their own data to the system for others to access (on a normalized and aggregated basis).  There are 35 Am Law 100 firms, 35 Am Law 200 firms and 30 NLJ 250 firms in the system.  You can find more information about the Peer Monitor system here.

Temporary Downturn or “Fundamental Reordering” Of The Legal Industry

By Terrence Galligan | Posted on

Great article in NALP’s most recent bulletin addressing the ongoing debate as to whether the changes we are experiencing in law firm hiring patterns are merely temporary (and will revert to what they were when the economy improves) or whether they are reflective of a burgeoning fundamental restructuring of the way law firms do business.

The author, Bill Henderson, is a law professor at the University whose scholarship focuses on the empirical analysis of legal labor markets and the development of human capital for legal service providers.

He takes the position that the legal industry is, in fact, beginning to undergo a “fundamental reordering” that will have profound effects not only on law firms, but law schools as well.        

Building A Network and Personal Brand Early In Your Career

By Terrence Galligan | Posted on

Good advice in today’s Legal Intelligencer (via law.com) on the importance of investing in relationships, expanding your network and developing a personal brand at the beginning of your legal career — even before you graduate.

Demand For Legal Services Remained Flat in Q-1 2010

By Terrence Galligan | Posted on

The well-known legal business consulting firm Hildebrandt Baker Robbins just published a report of its Peer Monitor Index, which includes information about key law firm business metrics for January – March of 2010.

You can read a summary of the report here.  You can read the whole thing here.   

Among other things, the report concludes that, on average, demand for legal services (measured by billable hours) for the first quarter of 2010 was flat.  Also, while demand in the Silicon Valley market increased by 1%, it decreased by 5% in SF and LA. 

We’ve blogged about the Peer Monitor system before, but to refresh you , it is a service that allows law firms to access their peers’ financial data (in the aggregate) in exchange for supplying their own data to the system for others to access (on a normalized and aggregated basis).  There are 35 Am Law 100 firms, 35 Am Law 200 firms and 30 NLJ 250 firms in the system.  You can find more information about the Peer Monitor system here.

Some Interesting Financial Info About Largest CA Firms

By Terrence Galligan | Posted on

The Recorder recently did a story about the 2009 financial results of the firms on their list of the state’s 25 largest law firms.  You can check the story out here.

For the Recorder 25 list, click here.

Podcast Predicting Economic Prospects For Firms in 2010

By Terrence Galligan | Posted on

Thought you might be interested in this short (about 6 min.) interview with the person who runs the Peer Monitor. 

You can access the podcast at Thomson Reuter’s Legal Current blog here.  (Hat tip: legal industry consultant Hildebrandt’s blog).    

FYI — We’ve blogged about the extremely helpful Peer Monitor Index before here and here.  The Peer Monitor system is essentially a service that allows law firms to access their peers’ financial data (in the aggregate) in exchange for supplying their own data to the system for others to access (on a normalized and aggregated basis).  There are 35 Am Law 100 firms, 35 Am Law 200 firms and 30 NLJ 250 firms in the system.

 

The Changing Associate Recruiting and Compensation Models

By Terrence Galligan | Posted on

Last Thursday’s New York Times has an interesting article about how firms are developing new ways to hire, train, promote and compensate associates in light of “recessionary pricing pressures.”

In addition, a recent e-newsletter article (consisting of comments from a senior advisor with Blaqwell, a prominent legal industry consulting firm) in the Practicing Law Institute (PLI) expressed consistent themes.   

Reflections on the “Mommy Track”

By Terrence Galligan | Posted on

Interesting reflection about the “work-life” balance issue (which we used to hear more about prior to the Great Recession) in Slate.  Its written by a 1993 Harvard Law School graduate who did both the “fast” track and the “Mommy Track.”  Those are her terms, though part of her article asks whether there aren’t better ones.

Among other things, she reports that the majority of the women in her class at HLS have stepped off the “fast” track, but as many as a third of them have part-time, flexible job arrangements that are working for them.