Competition in the professional services markets is growing exponentially. Firms are increasingly competing within their own industries and beyond their borders with others. Conditions are hyper-competitive causing firms to become overly cautious, reduce prices, retrench staff, defer investments in people development and technology, and postpone M&A opportunities. These decisions have direct adverse impacts on firms' brands and performance in serving clients. And in many ways the appropriateness of such decisions considerably depends on selecting the right benchmarks. Here is why.
"I come from a land down under
Where beer does flow and men chunder
Can't you hear, can't you hear the thunder?
You better run, you better take cover."
Men at Work, Down Under, 1981
“If not, be prepared for the possibility that Chicken Little was right” is Pam Woldow’s punch line in her post dated April 3, 2014 (1).
You’re spot-on Pam, I thought as I read her reflections on five observations about the trending strategies and cultures of firms with a BigLaw business model. The trends to which Pam refers are mainly internal, but there’s an external environment aspect to this story too.
This post adds a sixth, massively important external trend not previously reported in the public arena. The trend is based on hard evidence sourced from the most important stakeholder in BigLaw firms – their clients. The probability that Chicken Little is right just got a whole lot larger. (more…)
We recently received a most welcome testimonial for Beaton's pioneering research into cost conscious, but it's not only law firms that will benefit from being more cost conscious.
In a March 24, 2014 interview with Australasian Lawyer, Herbert Smith Freehills’ Australian managing partner Jason Ricketts is quoted as saying “We just haven’t stopped on cost consciousness, and our rating has improve again this year”.
Here's yet more evidence why cost consciousness is valued by clients and profitable for law and all other professional services firms. (more…)
"It's a bloody metaphor for law firms that don't get it" was my response to the interviewer on Sky Law TV earlier this month. And "There are huge opportunities for firms that do". Here's the full interview, the evidence, and why I said this. (more…)