LSAG Legal Briefs - Vol 2

PERCENTAGE OF GROSS REVENUE SPENT ON REAL ESTATE LAST YEAR:

of firm respondents that share on an equity partner or shareholder basis the cost of real estate. The fact that equity partners share the large financial impact of real estate over time calls for an even greater need to build internal consensus. As part of effective business and profit strategies, firms must evaluate how excess square footage, high inefficiencies, and per-attorney occupancy rates — combined with increased rental rates — will impact the firm and each equity partner financially. From fee structure evaluation to streamlined client services — as well as close partner/ revenue evaluation, staffing, technology, and recruitment/ retention considerations — firms are beginning to re-evaluate how they operate and make significant changes to their current business model. In addition, with continued technology advancements, the younger generation doing more and more of their own work, as well as partners using technology on a broader basis, future investment in technology will continue to increase while real estate costs will trend downward. Technology Costs Technology in the legal sector has been the largest single disruptor in the past decade. While providing many benefits, it also has impacted the way attorneys are servicing clients, providing the opportunity to do more in less time, work remotely,

12% 10% 32% 28% 18%

More than 9% spent

8-9% spent

6-7% spent

4-5% spent Less than 4% spent

HOW ARE CLIENT TECHNOLOGY DEMANDS AND PROTECTION OF INFORMATION IMPACTING YOUR FIRM?

Our clients are not demanding IT security

3%

Other

1%

Demands are greater than ever, but our firm is slow to make changes due to internal policies

10%

12%

Demands are greater than ever, but our firm is slow to make changes due to significant change

74% Demands are greater than ever and our firm has or will be investing significant capital in IT security in the coming years

legal staffing and recruiting firm, half of in-house counsel legal departments and law firms provide their lawyers with the option to work from home or remotely.

and streamline overall operations. It also has provided the ability for attorneys (particularly the younger generation) to do more of their own work. According the 2019 Salary Guide for Legal Professionals published by Special Counsel, a

Firms are spending a significant amount of time and resources on improving the recruiting and retention of their attorneys.

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