The economic downturn that is projected to come out of the shutdowns mandated due to COVID-19 is likely to be more wide-ranging than the Great Recession of 2008 in light of the non-discriminative impact of the virus. Given this outlook, now is a critical time for companies to reassess their business and finances so that they can be prepared for the future.
Bankruptcy professionals should be relieved by a recent decision holding that although nunc pro tunc orders approving a professional's retention are now considered "inappropriate" in light of the Supreme Court's decision in Roman Catholic Archdiocese of San Juan, there is nothing in the Bankruptcy Code, Bankruptcy Rules, or applicable case law preventing an award of compensation before a retention order is entered.
The COVID-19 crisis has caused a money crunch across industries, and CLD budgets are tightening. This downturn demands that CLDs stop writing blank checks for services of indeterminate scope and duration. Here are some ideas for law departments looking to do better.
While we may use analytics differently in our respective companies, one thing is certain: Legal analytics is the future and it's time to jump on board.
Proper planning is key to ensuring a company's financial health when facing an economic downturn. Although companies will come into such planning with different levels of financial health, the same considerations can be helpful in determining the best path forward.
The billable hour is still profitable from a transactional perspective, but from a strategic perspective, in today's economy, that profitability has begun to erode. That's because our economy has fundamentally transformed into a service economy that is based on leverage and scale.
Not even the economic downturn imposed by the COVID-19 virus may be able to take credit for eliminating the billable hour. While attorneys could be relying more on legal tech to help defray costs, transitioning to a new pricing infrastructure in the midst of so much uncertainty could prove to be a bridge too far.
Firms Are Applying Communications Lessons from the Great Recession As They Deliver Bad News During the Coronavirus Pandemic. Many firms have appeared in recent weeks to be signaling compassion, embracing (relative) transparency and sharing sacrifices across lawyers and staff. That can help make even painful cuts less harmful for a firm's internal morale and outside reputation.
Compensation systems are typically a strategic afterthought, seen as the means by which to allocate the spoils of a successful strategy. They're viewed as affecting the level of grousing among partners, but not a firm's performance. The data, however, indicates the reverse is true.
The ability to adapt, be nimble and pivot as necessary is crucial to surviving and thriving in ever-changing economic climates. Communicating in the age of social distancing requires a new way of thinking and being — not just in the virtual workplace with our peers but also how we communicate and partner with our clients.
