Lawyers, ready to retire, must consider the value of their law practice as an asset that can be sold … With 401 Ks becoming 101 Ks (or less), the revenue from the sale of one’s law practice may provide the revenue stream needed for retirement.
Seth Godin suggests an interesting question:
"Travel agents… gone.
Stock brokers… gone.
Real estate brokers… in trouble. Photographer’s agents, too.
Literary agents?
The problem with being a helpful, efficient but largely anonymous middleman is pretty obvious. Someone can come along who is cheaper, faster and more efficient. And that someone might be the customer aided by a computer."
We’ve seen this happen in the legal community. Many more people are representing themselves, pro se, because they can’t afford lawyers or … heaven help us … they can serve their own interests just as well as the lawyer.
Lawyers must bring creativity, judgment and experience to the table to maintain their position in the affiars of business. Being a commodity, or being "run of the mill," just isn’t enough anymore. And a major differentiating factor for most clients is the "care and feeding" offered by lawyers. Impersonal and expensive (a relative term) is no longer accepted. We’ve got to move past the point where the single largest complaint against lawyers is their failure to return phone calls, the failure to respond quickly to the concerns, wants and needs of the client. Until that happens, the legal profession is in jeopardy of losing its franchise.
One could view the current situation with the attitude that whenever there is challenge (a much over-used word today), there is also opportunity. Certainly better to consider opportunities than feeling like a victim in constant pain.
Our new newsletter is now on the stands.
There is so much happening in our profession that it’s hard to keep track …
I read an interesting article in a recent issue of the New Yorker Magazine that employed workers are actually seeing an increase in purchasing power because of declining prices all around. Yet wages are not going down because, historically, companies have chosen not to change wages for reasons relating to employee morale. I’m not sure whether that historical fact holds true in this environment. I just read that a couple of the large law firms are telling their new hires that the starting compensation will be $145,000, NOT $160,000. Obviously, change is in the air.
The purchasing power for employees is an interesting thought. The key, of course, is to keep your job and even lawyers are facing challenges here.
And “readjustments” in the work force are taking place more quickly because of our recent adherence to “just in time” management. Interesting concepts. How is your firm handling the changed economic conditions?
Join me for an ABA teleseminar. Outstanding panelists in a fast paced presentation that will provide tips to thrive in the new economy! Geared for sole and small firm lawyers. Sign up today!
I like the comment of Stephen Mabey, who said:
"History should be a guide post not a hitching post and when marketplace adjustments increase in both strength and frequency I think falling back on historical prose that we are different than all other industries / marketplaces is a great way to ensure a repeat of history."
Despite the pain, I’m not sure how many of us can alter our course of conduct. But, clearly, the successful ones will have to make some mid-career alterations.
Larry Bodine suggests that law firms that survive today’s economic crisis will:
I have been talking about the difference between clients and customers and patients and customers for a long time. I’m glad that Larry’s first point on his list is the same. Why should this be so important? Because not all of us are clients; we all are customers. Therefore, we can relate. There was a hit movie years ago where a mean doctor was a patient. Only after his experience did he have more compassion for patients and changed his ways. Today, medical schools are required to teach doctor-patient relations. When will law schools do the same?
I knew there was a reason for us to get into an Airstream. For those who have followed our adventures, here’s how we now feel.
