Latitude Senior Vice President Candice Reed discusses the benefits of alternative fee arrangements in the Law 360 article The Dangerous Secrets Your Client Is Keeping From You.
Tim Baran, editor at Legal Productivity, shares a summary of his Marketing and Business Development panel discussion at the Above the Law conference Academy for Private Practice. Citing studies that have shown it costs 6-7 times more to find a new customer as it does to retain an existing one, and surveys indicating that clients leave not because of high prices but because of poor service, Baran explains that delivering a high level of service is not just the right thing to do, but it also pays to keep your clients happy. He focuses on two essential ingredients for providing this level of service: Technology and Education. Continue reading.
Harvard Business School Professor and law firm consultant Felix Oberholzer-Gee takes the position that some firms are overly focused on growing market share when they should be giving more attention to increasing profitability. M.P. McGee writes in The American Lawyer that Oberholzer-Gee takes issue with other experts, arguing that law firms can’t grow their way to prosperity but instead need to focus on the bottom line. Some firms pursue the growth strategy through mergers, others through aggressive lateral hiring, and in some instances they start reducing fees.
Oberholzer-Gee maintains that the strategy of increasing market share may work for companies but generally doesn’t help law firms. Others counter that while growth for growth’s sake is not the answer, targeting market share is uniquely important for law firms because of key distinctions between law firms and companies, such as the ethics rules surrounding non-compete agreements and non-lawyer investment, and the economics of the partner-associate paradigm. Continue reading.
The Tennessee Supreme Court is currently considering changes that would enable experienced attorneys who move to the state to start practicing law immediately, instead of having to wait six to twelve months to obtain a Tennessee law license before they can practice. Lucian Pera, Latitude’s Ethics Counsel, explains that the rule change would make the process easier for lawyers from other states who find legal jobs in Tennessee, and removes barriers for firms that want to hire a lawyer from outside of Tennessee.
Latitude CEO Ross Booher, who has seen the increasing demand for specialized attorneys in regions like Middle Tennessee, believes that the changes could help attract legal talent nationally, and that because large companies are able to purchase legal services on a national scale, it will benefit these companies, Tennessee law firms, and the attorneys. Pera, who is on the Tennessee Bar’s ethics committee, states that the changes would not lower the standards for licensure in Tennessee. Continue reading.