There is a phrase that, according to the Internet, has long been misattributed to the Chinese. It is "May you live in interesting times." The phrase can be interpreted as either a blessing or a curse. The interpretation depends on your perspective. Regardless of who first used the phrase, it has definitely been an interesting year. It has been an interesting year for society at large. From a law firm perspective, whether the year has been blessed or cursed depends largely on the firm's ability to react to change.
Change brings both challenges and opportunities. The challenges can be met with fear and inertia, or with preparation and optimism. In the current climate, opportunities exist because of government action or inaction and client-driven responses. The client drives the law firm's reaction. That reaction depends on three basic factors: (1) a solid foundation, (2) a view toward client-driven opportunities, and (3) ready access to the tools and resources available to optimize growth. We will briefly look at all three factors.
Client-driven law firm growth requires a firm foundation. That foundation requires a four-prong approach, an approach that includes a client focus, internal communication, solid expert practice areas, and control of expenses.
First, client focus is a law firm's reason for being. Successful clients create successful law firms. A client-driven focus requires constant communication—communication that explores the client's needs, views, expectations, and priorities. Knowing the client is the key to a law firm's own business development.
Second, in order to meet the client's needs, the law firm must have excellent internal "team" communication. Team communication involves the partners, associates, and staff. Open communication and a team approach reduce anxiety during a period of change, and tap into new client service ideas and possibilities within the law firm and its practice areas.
Third, exploring the client's ideas and possibilities for growth requires a review of the firm's practice areas. Through a review, the law firm develops new or "remodeled" practice areas. Such review may also require attorney reassignment and training.
Last, serving the client requires a detailed audit of expenses. To stay competitive all nonessential expenses must be cut. However, the law firm must also retain and enhance the tools needed for continued success. Where possible, contracts should be renegotiated. Excess capacity must be examined, both lawyers and staff. Again, team communication is key. Team discussions should include the impact on salary, bonuses, sabbaticals, deferrals, hiring, and possible layoffs. Again, all of these approaches to expenses, whether material or personnel, should be constrained by the client's requirements for new opportunities and growth.
Looking for client opportunities while in a recession requires an optimistic mind-set. History teaches that such opportunities do occur. In the depths of the Great Depression during the 1930s, President Roosevelt's New Deal created new federal agencies and regulations. These proved to be a boon for law firms. The New Deal created new business opportunities and obligations. Those opportunities and obligations required law firms to respond by creating new practice areas. Will President Obama's "newer" deal do the same? The past year has brought bailout bills and stimulus packages. All of this legislation, whether federal or state, is again creating new client opportunities and obligations—client opportunities and obligations that create windows for law firm growth.
Law firms with diverse and balanced practices have already responded to many of these client opportunities and obligations. Although the earliest response was in the area of bankruptcy and employment practice, the latest area of growth is in the impact of new regulations on the law firm's client base. New regulations are affecting clients in many areas—antitrust, taxation, environment, green initiatives, communication, government contracts, white-collar criminal defense, congressional investigations, governmental affairs, lobbying, food safety, and banking, to name a few. Client-driven law firm opportunities are also reappearing in the securities and venture capital areas. These client representation opportunities are not limited to domestic clients. The current client opportunities have a global reach. With modern technology, law firm representation is no longer limited by geography. Law firms can represent foreign and domestic clients wherever they are located.
Opportunities for law firm growth are not limited to practice area development. With the substantial attorney layoffs and deferrals that have occurred come client-driven law firm hiring and training opportunities. Properly positioned and grounded law firms now have new leverage in acquiring exceptional lateral hires and in recruiting new talent. The above-mentioned new and remodeled practice areas have increased the need for continuing legal education, designed to enhance and develop expertise and business development. With a solid client-driven foundation and the recognition of new client opportunities and obligations come the need for new research and continuing education resources.
In the area of research, both governmental and commercial vendors are providing the tools that will drive client research needs in developing and expanding law firm practice areas. Two such government sites are www.recovery.gov and www.grants.gov. Both of these sites help track the progress of federal agencies and agency rules on the allocation of monies that individual states will receive from the stimulus and bailout acts. The sites discuss who will administer the funds and how they will be enacted, creating client opportunities.
Commercial vendors also responded with new research tools and databases almost immediately. West, for example, rapidly developed a Financial Crisis tabbed page on Westlaw®. The content includes topic-focused traditional materials such as cases, statutes and regulations, administrative materials, public records, and individual company information, but in one easy-to-use location. The page includes topics such as Recent Developments with links to articles such as "Thinking About Starting a Foreclosure," "The Commercial Real Estate Market Between a Rock and a Hard Place," and "Depreciation in Real Estate Values," from various Andrews litigation reporters. Under the topic Current Legal Analysis, West provides access to articles about the subprime mortgage lending controversy and the financial crisis from publications such as Aspatore Special Reports and Andrews litigation reporters. The News, Journals and Law Reviews topic also provides access to resources that discuss the financial crisis and the subprime mortgage market. Under the topic Analytical Materials, West provides links to the texts Shareholder Derivative Litigation: Besieging the Board and Bank Directors', Officers', and Lawyers' Civil Liability. Trial filings and appellate briefs are also provided. Other vendors have created similar tools that discuss and track the economic stimulus bills and the billions of dollars in funding client opportunities that such bills have provided—opportunities dealing with infrastructure, energy and environment, health care, communications, education, taxes, labor and employment, and more. These opportunities impact clients both large and small.
The Library of Congress has also entered the research market. One example is its summaries of the financial stimulus plans in 16 countries and the European Union and Russian Federation, available at http://www.loc.gov/law/help/financial_stimulus_plan.php. The Library gives law firms access to global stimulus opportunities.
The vendor response did not stop with research. In the area of continuing legal education, West responded with financial crisis CLE programs. Getting lawyers up to speed, West's LegalEdcenter® provided access to programs such as "The Basics of Bank Failure," "Rescuing the Economy: An Examination of the Emergency Economic Stabilization Act of 2008," "The Derivatives Market: What Comes Next," and "Derivatives and Bankruptcy: Where Do the Safe Harbors Begin and End." These are just a few of the online resources available. West also supports law firm clients by providing cost-effective in-house attorney CLE programs. West's program offerings involve both new practice areas as well as changes to traditional practice areas. These commercial vendor examples have complemented the CLE programs of national, state, and local bar associations.
Our interesting times have created opportunities for our clients. To respond, the clients need professional representation from law firms that have laid the proper foundation, recognized new opportunities for their clients, and invested in the resources to serve their clients. By doing all three, law firms should be ready to crank the ignition, hit the accelerator, and "start it up!"
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