Companies hoping to see a profound change in law firm billing practices should not hold their breath. Despite all the talk of fixed fees and discounted rates, a new Altman Weil survey reveals that law firms are not doing anything dramatic and are not planning to do anything dramatic in response to the economic downturn. In fact, you could say that law firms are playing possum with billing rates.
Altman Weil distributed a survey to 687 firms with 50 or more lawyers, asking about how the firms were dealing with strategy, growth, pricing, staffing and business development in light of the current economy. Thirty percent of the firms responded, including 32 percent of the 250 largest firms in the country.
When it came to pricing, status quo seemed to suit law firms just fine.
Of course, no law firm would be so bold as to make that claim outright. After all, they had to reassure their corporate clients who are demanding fixed fees and discounts that they were sensitive and responsive to their needs in light of this recession.
So what did they say? Respondents across the board identified an increase in pricing competition as a permanent change. Yes, we want to offer competitive rates claimed Big Law.
What’s the reality? No one is chopping rates in response to rate pressures, the survey reported. Few firms, and none with 250 or more lawyers, reduced their billing rates in 2009.
That’s called playing possum – pretending to provide competitive billing, when the old system is very much alive and kicking.
Written on: 05/13/09 PDF Version