I'm not sure whether we are in a recession or a depression - even our Prime Minister seems confused on this particular point, but there does appear to be some good news for mid-tier professional firms.
For years now, we at MSI Global Alliance (www.msiglobal.org) have been banging the drum in support of mid-tier law and accounting firms, suggesting that for certain types of work, firms of a certain size are better placed to help even the largest companies in some areas. The problem is that, too often, the message has fallen on deaf ears.
In-house counsel and CFOs in particular, but business owners too, have sought reassurance from the "you'll never get fired for buying IBM" syndrome of the 1970s. But all this appears to be changing.
In a recent article in 'The American Lawyer', evidence begins to emerge of a shift in buying patterns towards local and regional firms. Pamela Woldow at Altman Weil is quoted as saying:
"We are seeing a huge surge in interest in regional law firms. I get calls constantly with general counsel asking, 'Where can I move to get lower rates?' This is the first time in my life I've seen corporate counsel as the market makers."
Among the beneficiaries, Woldow says, are regional firms with 100 to 300 lawyers who have advised these bigger clients before, albeit on smaller matters.
Similar evidence is appearing within MSI. Denver-based law firm member Fairfield and Woods (www.fwlaw.com) is slowly growing at a time when many others are shedding lawyers. They don't claim to have a miracle solution to the downturn facing the profession, but they believe that working closely with clients and being responsive to their needs is paramount. They have also recently announced a freeze on their charge-out rates for 2009 to show a level of sensitivity to the situation faced by many of their clients.
So perhaps every cloud does have a silver lining ... even if the cloud is dark, and the silver lining is thin.
James Mendelssohn (jmendelssohn@msiglobal.org)
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