Law Firm Branding-The Brands Risk of Illusory
In the past ten years, we have seen developments in the technology of law practice, increasing paralegal positions, and outsourcing of legal work. Yet despite all these cost-cutting and time-saving advantages, many law firms, particularly the big ones, continue to struggle for their very surviva Hilbrich Law Firm has some nice tips on this.
Law firms only experienced unprecedented rates of growth and prosperity a decade ago. Firm coffers were complete and companies were investing vast amounts of money on their own promotion to enter new markets and gain premium business. Some companies were even conducting branding experiments. Branding was commonly seen in those days as just another form of advertisement and promotion. In reality, firm leadership never understood the process of branding, or what the branding term was actually intended to accomplish. But it really didn’t matter, revenue was stepping up and profitability remained strong. But what so many of these companies didn’t expect was that a deep and fierce recession would shake our economy in just a few years, one that would shake even the most prosperous firms ‘ financial foundations.
Of law firms, the recession that started in 2007 had penetrated by 2010 into the most sacred realms — the proverbial benchmark of a standing firm and performance-profits-per-partner. The decline in law partner income was reaching record lows for many firms, especially mega-firms, and it wasn’t long before the legal landscape was filled with failed firms both large and small.
While seeking to prevent more losses, businesses started laying off partners and employees while record number. Yet the problems had gone far deeper. There were just too many attorneys and not enough top-notch jobs to go around. It was a strong case of overcapacity and it was also evident that it would not change quickly at any time.
In a period of about seven years, more than twelve of the nation’s largest law firms, with more than 1,000 partners between them, have collapsed entirely. Against this backdrop, law schools continued to churn out thousands of enthusiastic laws graduates each year. Highly educated young men and women who had been searching for the chance to enter a career that once held the promise of riches, prestige and stability