Law360 Quotes Huse on Law Firm Culture
Jill Huse was recently quoted in a story that discusses Law Firm Financial Health and Sustainability by Law360's Gavin Broady.
4 Canaries In The BigLaw Coal Mine
Law360, New York (May 13, 2015, 1:55 PM ET) -- It’s easy enough to spot trouble at a law firm whose revenue is consistently in the red, but experts say the occasional collapse of seemingly high-performing firms suggests attorneys would be wise to look beyond reported financials to find out if their firm’s days are numbered.
Legal industry watchers say struggling law firms, like unhappy families, are often unhappy in their own way, and comparing the Dewey & LeBoeufs and Howreys of the world can be an apples-and-oranges proposition.
Nonetheless, the collapse of those and other top-100 firms points to a few red flags that attorneys should be on the lookout for, from leadership vacuums and talent management flubs, to hasty acquisitions and poorly defined practice area specialization....." (full article)
Questions About Who's Running the Show
One clear indicator that a seemingly healthy firm may be in peril is that its members have lost faith in the men and women whose names are on the masthead, experts say. (full article)
Poor Talent Management
Poor leadership can often have a domino effect that leads to a second danger to watch for: a drastic fluctuation in attorney head count compounded by the failure to stem losses by integrating new talent. (full article)
Trying to Be Everything to Everyone
On a more long-term scale, a firm’s failure to take clear, decisive steps to differentiate itself in the legal services marketplace may be a troubling sign of vulnerability, experts say.
Trying to Buy Your Way Out of Trouble
In an era of merger madness, it can seem counterintuitive to suggest that aggressive growth signals danger ahead, but there can be significant peril for firms that overextend themselves by gobbling up smaller ones to stave off economic doldrums, according to Hoppe.
And while a raft of acquisitions doesn’t necessarily mean firm leaders are desperately fending off imminent collapse, the corrosive net effect of a massive influx of new faces can do significant damage over time, according to Society 54 LLC partner Jill Huse."
“The culture change of a merger can have an unbelievable impact, and firms that have had a lot of mergers can create a lot of division within the firm,” Huse says. “You’re basically bringing in different cultures from all over the place, and you get these microcultures forming. If that’s the case, you’re going to have difficulty as a client with communication, best practices for project management, even just getting standardized rates put together.”
--Editing by John Quinn and Edrienne Su.