An increasing number of law firm leaders and many of their high performing partners have concluded that they need to grow high quality headcount in their areas of focus to remain competitive. Many have chosen to consider all potential options for achieving growth. This includes recruiting laterals, small groups, or combinations. They are not mutually exclusive options and many firms choose to put all three options on the table.
In The American Lawyer pieces on consolidation and stratification, authors Nicholas Bruch and Hugh Simons contend that law firms are pursuing those strategies because of incorrect perceptions about their value as revenue and profit growth drivers. Moreover, they contend that inorganic growth strategies create “…disruptive distractions for leaders…” that “…create no strategic advantage.” We agree that law firms need to create strategic advantages more than ever in an era of slow-growth exacerbated by new entrants. The question is how best to achieve strategic advantage. We believe that most firms will be best served if they consider all available alternatives as part of a robust strategic planning process.
