Law Firm Economics

Unlike last year, where calendar-year firms extended budgeting (rather, budget cutting) into Spring, this year many of them are done. They planned ahead, and locked down the budget submissions in September. This December must be infinitely more jolly and relaxed than last. The question nags firms, though . . . "I've allocated from 1.5-4% of budgeted revenue to marketing/sales -- what return will I see on that?"

Aric Press, editor of The American Lawyer, wrote a great piece today in the AmLaw Daily called “In-House at the American Lawyer.” It is sobering and honest look at what faces many law firms as we close out 2009. Of course, I liked the fact he put in a plug for increased marketing. But most important I think Aric shines a light on the real need for innovation and fresh ideas.

The fourth and final post in a series offering findings from analyses Ann Lee Gibson performed last fall as her law firm clients were considering how best to respond to the economic downturn. Seven months later, some of the findings from last fall look like a big duh, although others still offer useful insights.