Practice Management

2008 Predictions

By Brian J. Ritchey

Some have New Years' resolutions.  Others predict what may come in the new year.  Though both are likely doomed to fail, I'd rather go with the one with a better chance of success:  predictions.  Here are mine for 2008:

1.  The effects of the credit market "correction" will lead to a sharp rise in bankruptcies and foreclosures, giving work opportunities to attorneys who are looking for a new direction after the crash of the mortgage industry (though not everyone agrees).  On the creditor side at least you may be working with some of the same clients. 

2.  Is it a merger or is it hiring a bunch of laterals?  Whatever you want to call it, I predict an increase in these transactions in 2008, particularly from big law firm defections and small law firm attempts to expand practice areas.  The shifting market will favor those firms who have a diverse practice - boutiques that specialize in the wrong practice areas will wish they had held more retained earnings.

3.  Business Intelligence tools, sprouting at shows in 2007, will be a central feature showcased around trade shows.  To the vendors who can make it the most relevant for firms who don't currently see the value will come the spoils.

4.  2008 is an election year and it appears that the nation's polling infrastructure still has some work to do.  That opens an opportunity for enterprising attorneys well placed when voters balk at the results.

5.  The billable hour finally dies.  Just kidding.  My prediction (going out on a limb) is for the traditional fee arrangement to be the primary method of billing clients for another year, though the cries for its demise will still be heard.  Though there are more opportunities for change (ie, client demands for more cost certainty), movement towards alternative arrangements will likely show up more with new firms who use their unique fee arrangement as a way to differentiate themselves from the marketplace. 

6.  In spite of an economy that will slow, lawyers will still be busier than in 2007 (and most should be more profitable, even those accidentally successful) - can't help it, the practice of law is "recession-proof" (just make sure you diversify - see prediction #2).

Happy New Year!

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Full post as published by More Partner Income on December 31, 2007 (boomark / email).