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Der richtige Hebel

Allerorten machen sich dieser Tage kluge Leute Gedanken darüber, ob die Großkanzleien durch die Entlassungen (wegen der daraus folgenden sinkenden Leverage) nicht auf Probleme zusteuern. Andere wiederum halten sinkende Partner/Associate-Quoten für eine gesunde Entwicklung. Instruktiv zum Thema - wie so oft - Adam Smith, Esq.:

Why does leverage matter? For starters, as I noted in my 2005 column I quoted at the outset, leverage is your best friend in good times and your worst enemy in bad times. While we've heard the drumbeat of client complaints about paying for useless junior associates for years, this is suddenly the kind of environment where it will grow sharp teeth and bite hard. Either: (a) massive litigations will not be pursued because they're too complicated, uncertain, protracted, and expensive; and/or (b) if they must be pursued, contract attorneys, staff attorneys, and outsourcers will provide the human throw-weight needed for massive document review; and/or (c) corporations will simply insist that document review be completed for flat fees of $X/unit [$1.00/page? $0.50/page?]. In any event, no one I talk to--absolutely no one--believes that the litigation "factory" model with one partner overseeing half a dozen or more associates who are billing 'til the cows come home will be a predominant source of revenue going forward.

"Der richtige Hebel" vollständig lesen

Full post as published by jurabilis - German bLAWg from Berlin. on March 13, 2009 (boomark / email).