All the turmoil and confusion caused by the pandemic has washed through as strong profits across US law firms. This, combined with the move to more efficient practices as knowledge workers adapt to more permanent remote working, has meant that many are now moving beyond the freeze in spending that was initially imposed by most firms.
However, the good news is not an economy-wide phenomenon, so it's quite possible that this is not a time for back-slapping celebrations. Firms should reinvest some of their windfall into ensuring they have a decent share of voice in the event that the tide goes out inexorably as the reality of a wide-spread economic cooling bites.
The savings achievable by adopting change will deliver a rapid ROI but now is not the time for complacency and back-sliding to the bad old ways.
“Financially, 2020 has turned out to be a splendid year for revenue and profits after a heart-stopping spring,” said Bruce MacEwen, president of law firm consultancy Adam Smith Esquire. He added there was “a whiff of ‘We dare you to match this’ in the air”, putting pressure on less flush firms to match a new market rate for large year-end bonuses.