Predictions for the Legal Profession in 2011
I was surprised how wrong the predictions were for an economic recovery in the legal profession in 2010. Instead we got the dismal "new normal" with layoffs, indebted law grads without jobs, cost-cutting, and gloomy expectations from managing partners.
"We believe the worst is over," said Dan Dipietro of Citi Private Bank on March 3, 2010. Man was he wrong!
The National Bureau of Economic Research said the recession ended in June 2009, but nobody believed it. The only lawyers doing well were handling foreclosures, divorces and bankruptcies.
For 2011, economists (see http://bit.ly/i9usFB) predict more competition, pressure on fees, fewer partner-track associates positions, more non-equity service partners, fewer salaried and more temp positions, and more legal work outsourced overseas.
On the bright side:
- M&A activity is expected to jump 36% in 2011 (see http://aol.it/dcYS4M)
- Demand for legal services will also increase in healthcare, intellectual property, bankruptcy, corporate and security litigation, antitrust law, and environmental law (see http://bit.ly/gakp3z)
- Lawyers and paralegals with at least four years experience will be needed at midsize law firms, see http://bit.ly/hiyvyn. Law firms are looking for workers that will bring clients with them.
- CRM (client relationship management systems) will have to incorporate LinkedIn, Twitter and Facebook information.
- Law firms will realize they can’t cost-cut their way to profit, and will seriously start training lawyers to do business development to increase the financial top line.
- “Innovate or die” will be the watchword for law firms, and they will offer new ways to offer new business services and value billing.
- Law firms will stop upgrading software and use SaaS offerings and cloud computing.
As for the rest, we'll see.
A recent study conducted by the Association for Accounting Marketing (AAM) found that approximately 60% of the firms surveyed are participating in social media and 42.8% have written social media policies to guide employees and govern its use.
I was sitting in my study, reading Wikileaks to catch up on what our government was up to. To my horror I discovered a clear and present danger to our privacy as citizens, an incredible government program to spy on Americans, harvest and collect the information, and deliver consequences -- some really dreadful consequences. It involved having a terrorist spy run the government program.
Acritas
2010 was clearly the year of social media:

For the second year in a row, a majority in-house counsel indicate that their more satisfied with their law firms -- but they're assigning less legal work and expecting to pay fee increases of only 1.52%, according to the 2010 ACC/Serengeti Managing Outside Counsel Survey.
Adrian Dayton, a blogger, lawyer and author of
From Law360: As the demand for continuing legal education grows, a standoff is brewing between law firms and course providers that want credit for business development training and the regulators who maintain that the aim of CLE is not to churn out rainmakers.
In one of the most comprehensive and detailed examinations in the nation, the Supreme Court of Ohio’s disciplinary board has decided that judges may use Twitter and 'friend' lawyers who appear before them.
Only 8% of online Americans use Twitter, according to 
There's a new word for lawyers and law firm marketing professionals to know when they are working on their websites: 
Always the innovators, the marketers at
Dorsey & Whitney, with more than 600 lawyers in 19 locations in the United States, Canada, Europe and Asia-Pacific region, just hired
94% are online daily for purposes other than email.


