Here at Lean Adviser, we try to offer analysis and thought-leadership on important and under-discussed topics. This mini-series alights on another, the position and future prospects of mid-market law firms.
Our interest in mid-market firms has been warmly reciprocated by them. It’s hardly surprising that so many mid-market firms are taking an interest in lean law. Mid-market firms are inherently structured to operate efficiently, effectively and transparently, and so the lean law methods for achieving those goals are a natural fit.
In this series opener, we’ll focus on the work itself, which clients bring to our industry, and assess the evolving responses from big law, midmarket and ALSPs. The next lesson looks at when big law comes to town and the battle at the lunch counter in mid-market territories. Then we’ll look at mid-market talent, and finally we’ll have a wrap-up lesson, where we tie it all together, add in technology and try to predict the future.
For as long as anyone can remember, until the new reality, this is how it used to be: Base level doc reviews, research and drafting were marinated within a pool of junior associates and paralegals. The work product would eventually bubble up to a partner, who would review and either adopt and modify, or send it back to the pool for another go-around. The hourly rate was king, and rates were based on tenure not task. Good for billable hours, not so great for value or client-service delivery.
Then, almost out of nowhere, clients started to have an opinion. They raised a topic which has been at the core of our purpose from the outset: What clients want. It turned out that they wanted efficiency, effectiveness, value and price predictability. As we know from Lean Adviser, the root of all these virtuous attributes lies in attorney methods and mindsets. Yes, technology plays a part, but this all starts at the fee-earner’s desk. After all, technology is a lean tool, but so are you, the attorney.
Where our industry reacted first and fastest was among ALSPs and mid-market firms. ALSPs gained a quick foothold, but also a reputation as a resource — sometimes unfair — for quick and dirty output. Mid-market firms, on the other hand, promise higher quality standards than ALSPs and they are nimbler, more flexible and have lower overheads than big law. They were ideally situated to ride this wave. As we shall explore in the next lesson, soon enough mid-market firms began eating big law’s lunch, and big law fought back.