Overall, the experience in 2004 confirmed that consolidation is continuing in the US legal market and that segmentation within the market is growing. As a result, it remains critically important that law firm leaders in firms of all sizes stay focused on the strategies necessary to create a sustained competitive advantage for their firms’ key practices.
Ah. Consolidation and segmentation are continuing. Anybody who’s taken even a cursory glance at the AmLaw 100 or any other list of the largest firms in America can see that. The trend has been plodding along for the past 20 years. If you haven’t glimpsed it, you’re either as blind as the post patricidal Oedipus, or you aren’t paying any attention to the legal industry. Which would be the case for about 99.3% of the people in our fair land.
But guess what? So far, the limited consolidation in the legal industry hasn’t provided benefits even remotely like those secured in other sectors. If it had, you might get key learnings from consultants with slightly more depth than, "… it remains critically important that law firm leaders in firms of all sizes stay focused on the strategies necessary to create a sustained competitive advantage for their firms’ key practices. "
Really? Leaders should stay focused on the doing those things that are needed to stay competitive in important areas? Wow. Who’d'a thunk it.
I will resist the urge to re-rant about how most law firm mergers aren’t really mergers, but a blissfully ignorant amalgamation of bad habits that everyone involved hopes, against all logic, will somehow alchemically transmutate into a glorious, new uberfirm. Real companies merge for solid business reasons — not just to get bigger.
Remember the Andy Havens’ Axiom of Law Firm Consolidation: The fastest way to create a $100 million firm is to merge two $75 million firms.
Stumble it!