The Problem of Pain: Partners Won't Accept Sacrifice As The Price of Change (Jordan Furlong)

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Law firms have a problem: growth is at a standstill or shrinking, reducing lawyers' income and compromising partners' profits. Many firms believe they have a solution: slash costs and inject revenue. They fire secretaries, cut back on associates, de-equitize low-income partners, and acquire high-income partners, all to maintain or increase profit.

These are short-term fixes, unsustainable by definition: you can only fire people once, and there are only so many lateral hires. But there's a much bigger problem here, the one that will eventually bring these firms down from the inside.

  

The problem is this: partners are refusing to absorb any pain.  

 

The changing legal market is inflicting damage on law firms unable or unwilling to adapt to a different environment -- that's what is hurting growth. But the owners of these firms are shielding themselves from the suffering, redirecting it to the vulnerable today or cutting short-term deals that could hamstring their successors tomorrow. ...

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Topics:  Law Firm Partners, Law Practice Management

Published In: Professional Practice Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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