June 16, 2014
The first day of the Legal Marketing Association’s P3 Conference in Chicago presented a fantastic opportunity to hear from a number of industry thought leaders. They shared their insight into what’s going on in our changing industry and floated strategies for helping law firms adapt to meet these challenges.
One big takeaway from the first day of sessions is that there’s really no argument that things aren’t changing, but the speed with which the industry evolves needs to increase. One of the presenters here suggested that having the ability to change quickly and experiment with new ways of doing business gives law firms a competitive advantage. In a market where pricing pressures are steadily increasing and there is a plethora of competitors vying for a client’s business, anything that sets a firm apart can help secure that next client or matter.
Another presenter discussed how firms are handling pricing decisions. This presenter discussed the need to get firm buy-in on how matters will be priced. A key element of this buy-in is building a solid business case for every decision and having analytics and metrics to support that proposed course of action. Once the numbers and business case are put together, it’s easier to communicate to the front-line attorneys why a particular matter isn’t worth the firm’s time to pursue. It sounds odd that not every matter is worth pursuing because for so long the legal industry has followed the philosophy that all revenue is good revenue. However, if the revenue generated doesn’t outweigh the opportunity cost, the matter may be a losing proposition for the firm.