The majority of big firms are not changing their business models, despite the economic downswing.
142 of the Am Law firms responded to a recent survey—56% saying the economic downturn has caused a change in the legal marketplace, but 70% also saying the downturn has not produced a shift in their firm’s business model. Over 66% of the firms were also optimistic about 2010.
Optimism is admirable, but reality is harsh. The survey seemingly reflects a stubborn mentality that big firms can just plug away and things will get better. If the firms refuse to change their mentality, they may be in trouble.
There is simply no way firms can continue with business as usual. Clients pockets are not as deep, and when the market is flooded, clients generally demand more for their money. Big firms might not need to close up shop, but they would be wise to alter their business model.
Change in the Offing — In BigLaw Models and Diversity | Legal Blog Watch