“It’s astonishing; it’s just mind-blowing,” says Chris Batz about the exponential growth in revenue generated by the AmLaw top 100 firms in the last 22 years. On today’s episode of The Future is Bright, Chris takes a closer look at these numbers, what’s driving them and which firm comes out on top. He also takes a look at the increasing number of firms who are choosing to merge in order to, among many reasons, increase competition, deepen their benches, and to increase their geographic reach.

On his first solo episode of the podcast, Chris draws from quotes from executives at several high-profile firms who explain their motivation for merging. So often, it was a matter of shared values—very often people-focused values—aligning and that the decision benefits the internal teams just as much as it does the client. Chris, who is now exclusively focused on assisting firms with this process, offers his own insights on the topic.

Join today’s episode of The Future is Bright to learn how far corporate law firms have come in the past 20 years, and what it means for the future.

Quotes

• “I am assisting firms where they are really feeling the effects of these incredibly large law firms and the consolidation that is taking place at a rapid pace right now.” (3:08 | Chris Batz)

• “Twenty-two years ago, in 2002, there were only two law firms that were generating a billion in revenue annually, a year. The other 98 were, of course, less than a billion in revenue. Twenty-two years later, it is astonishing, but more than half—54 firms—now, of the AmLaw100, are generating more than a billion. To break that down, 33 firms are generating a billion to just under 2 billion. The two to three billion mark, or just under three billion is 14 firms. And then we have three billion and more—seven firms. It’s just mind-blowing.” (4:44 | Chris Batz)

• “We’ve had substantial consolidation, explosive growth, and of course, there have been price increases, clients are reducing the amount of firms they’re working with, generally speaking. They’re finding firms with broader benches and deeper benches, especially sub-specialties is a really important thing, as well as geographic reach.” (7:11 | Chris Batz)

• “Clients have ‘reputational risk.’ General counsel, the boards, CEOs, CFOs, decision-makers of these large clients. And perception—even though you think reality is different—perception shows that smaller firms are riskier decisions to give valuable work to. So, that valuable work goes to the bigger firms—not always, but consistently—it’s happening. Valuable being higher rate work, more headline-making work, probably requiring deeper benches, subspecialties, all these things, so that’s one of the reasons consolidations happen.” (17:30 | Chris Batz)

Links

Connect with Chris Batz:

LinkedIn Profile: https://www.linkedin.com/in/chrisbatz/

LinkedIn Company page: https://www.linkedin.com/company/columbus-street/

Columbus Street website: https://www.columbus-street.com/

Podcast production and show notes provided by HiveCast.fm

“It’s all about people management,” says today’s guest Kristina Lawson, drawing parallels between her time as the former mayor of Walnut Creek, CA to her current role as managing partner at Hanson Bridgett LLP, a mid-sized firm which like Kristina, whose practice was in real estate and land use, has a deep connection and dedication to California and its communities. This values-based California law firm’s equity partners comprise nearly 40 percent women—virtually unheard of in the AmLaw 200—which reflects its pioneering and foundational policies of diversity, equity and inclusion. On today’s episode of The Future is Bright, Kristina discusses the firm’s guiding principles, their agile workforce policy that pre-dated the Covid 19 pandemic, and its exemplary approach to transitioning power to the next generation.

The key, Kristina explains, is a willingness to adapt to new working styles, seeing them as opportunities for growth rather than points of criticism. She also discusses the biggest threat to the business of law, the crucial piece of work culture she feels was lost to Covid, and how Hanson Bridgett LLP is navigating the advent of AI.

Join today’s discussion to learn more about Kristina and Hanson Bridgett LLP’s shared guiding principle of putting people first, and the number one issue that keeps her up at night.

Quotes

• “It’s helpful to check back in, both to ground me and the reasons I joined Hanson Bridgett and what Hanson Bridgett’s all about, and again also to check in on those promises I made to our partnership about the direction we’d head in with me at the helm.” (7:32 | Kristina Lawson)

• “Being the mayor of a mid-sized town and the managing partner of a mid-sized firm, there’s a lot of consensus-building and it’s all about people management. Whether it’s constituent management as the mayor or managing the other members of the city council…it’s all about figuring out where those consensus positions are and building trusted relationships, even with people that you don’t agree with, on key issues, so that you can continue to move forward. Those are really the same issues we have here at our partnership.” (8:20 | Kristina Lawson)

• “We need to adapt to where they’re at. Just because they’re doing something differently, does not mean they’re doing it wrong.” (15:47 | Kristina Lawson)

• “Founded by a group who really believed in diversity, equity and inclusion and values-based lawyering before it was a thing…One of the reasons I joined Hanson Bridgett was the firm has an equity partnership which is made up of just about 40 percent women.” (18:57 | Kristina Lawson)

• “The number one thing that keeps me up at night is worrying about whether our people are well and whether we can improve their mental health and wellness as an organization.” (22:22 | Kristina Lawson)

Links

Connect with Kristina Lawson:

LinkedIn Profile: https://www.linkedin.com/in/klawson/

Firm Website Bio: https://www.hansonbridgett.com/Our-Attorneys/kristina-d-lawson

Connect with Howard Rosenberg:

LinkedIn profile: https://www.linkedin.com/in/hrosenberg/

Company web profile: https://www.baretzbrunelle.com/howard-rosenberg

Connect with Chris Batz:

LinkedIn Profile: https://www.linkedin.com/in/chrisbatz/

LinkedIn Company page: https://www.linkedin.com/company/columbus-street/

Columbus Street website: https://www.columbus-street.com/

Podcast production and show notes provided by HiveCast.fm

“It is still quite challenging to convince partners of the need for change when the traditional model is still serving them incredibly well,” says Neville Eisenberg, Senior Strategy Executive, Mishcon de Reya, who joins The Future is Bright to talk about innovation taking place within UK law firms, innovation he helped contribute to with the contract attorney company, Lawyers on Demand, and now with Flex Legal, an alternative legal services provider now owned by Mishcon de Reya. Neville will discuss with hosts Chris Batz and Howard Rosenberg the growing number of opportunities in the alternative legal services provider market and what it means for private equity.

He'll discuss the changes which have taken place in the UK legal landscape as a result of deregulation and a number of legal processes now available in a self-service capacity, and what this means in terms of social justice. He will discuss the widely differing implications of AI on Top 10 law firms and on everyone below them, and the disconnect between supply and demand that he finds most concerning.

Learn Neville's thoughts on the crop of small high-performing law boutiques burgeoning in the UK and the importance of U.S. competition to the UK market.

Quotes

• “It is still quite challenging to convince partners of the need for change, or indeed the value of spending money on doing things differently when the traditional model is still serving them incredibly well.” (11:40 | Neville Eisenberg)

• “The Top Ten law firms in the UK generally regard Gen AI as likely to have a positive impact on their firms, in particular, because they see opportunity for productivity gains. But the rest of the Top 100, so the 90 firms below the top ten, have exactly the opposite, almost exactly, the opposite view of the impact of Gen AI in that they have significant concerns about the pressure that it might produce from clients to reduce cost of legal services and also that there may be a reduction in some of the work that’s outsourced to their firms.” (12:27 | Neville Eisenberg)

• “Notwithstanding the deregulation, there is still—it appears to me from my conversation with clients—there is still a disconnect between the demand side and the supply side in the market.” (20:15 | Neville Eisenberg)

• “One doesn’t have to be in a huge law firm to be successful. There is another model that can work.” (30:20 | Neville Eisenberg)

• “It just seems to me that there is a very strong business case for many of these firms creating shared business services platforms that can benefit from scale economies, and all the other benefits of scale, and running those business services functions in a more effective way.” (32:51 | Neville Eisenberg)

Links

Connect with Neville Eisenberg:

LinkedIn Profile: https://www.linkedin.com/in/neville-eisenberg-47b2586/

Connect with Howard Rosenberg:

LinkedIn profile: https://www.linkedin.com/in/hrosenberg/

Company web profile: https://www.baretzbrunelle.com/howard-rosenberg

Connect with Chris Batz:

LinkedIn Profile: https://www.linkedin.com/in/chrisbatz/

LinkedIn Company page: https://www.linkedin.com/company/columbus-street/

Columbus Street website: https://www.columbus-street.com/

Podcast production and show notes provided by HiveCast.fm