In Praise of the Mid-Sized Law Firm
By James Stapleton
The AmLaw 100 partner sounded almost embarrassed. “I’m not sure why they’re with us. We bill them nearly $500,000 annually for work that is not very difficult. They like us, and they’ve used us since their inception. But a local firm could perform their legal work.”
This was the conversation I had with a partner right before I performed a client feedback interview with the client. The client was satisfied with our firm and with the partner. We performed excellent work for them, and they were happy. They paid us about 40% to 50% more than they would have paid a regional firm, but it’s their job, not our job, to seek out the best, most cost-effective counsel.
Over the past two decades, I have encountered numerous similar situations in which the client had clearly overlawyered. And during that time, I’ve developed a professional respect for mid-sized firms, for many reasons, including:
Pedigree. My neighbor, who used to babysit my children, attended Northwestern as an undergrad and Stanford law school. The daughter of a judge, she was cut out for the law. She was a commercial litigation associate at an AmLaw 100 firm, then moved to an AmLaw 50 firm. She was bright and hard-working and worked for many large clients, but decided she wanted more control over her own life. Today, she works for a firm with 15 lawyers. And she still performs great legal work for great clients.
Lawyers at mid-sized firms frequently matriculated at much larger firms. They left those firms for a variety of reasons, e.g., they wanted to concentrate in areas that the firm deemed unnecessary to that firm’s strategy, that they didn’t want to work the long hours, that they didn’t want the pressure that comes with a billable ogre that they had to feed on an ongoing basis.
Real World Experience. Lawyers at large firms are typically hired as associates directly from law school. Partners in mid-sized firms often served as in-house counsel for large clients. They’ve faced the real-world legal and business challenges that may lend them a more well-rounded perspective to clients who see legal issues as business problems.
Structured Differently Than Large Law Firms. Some mid-sized firms have a much higher proportion of associates than AmLaw 200 firms. Some have no associates, they are partner-only law firms. Some have minimal overhead and may be completely virtual, preferring to operate at their clients’ place of business or from home. Their structure makes them ideal for specific clients.
Mid-Sized Firms Frequently Partner with Large Law Firms. The reverse rarely happens. Some years ago, I received an RFP from a Fortune 100 company. As a large law firm, our billing rates would not allow us to perform 70% of the work listed in the RFP. I recommended to the partner that we partner with a mid-sized law firm. By her own admission, she knew the firms that would be appropriate for the work, but she refused to include them in the pitch. Essentially, she left the client to fend for themselves.
Mid-sized firms are acutely aware of their limitations, particularly relative to the resources of larger firms. Lawyers at mid-sized firms know their own capabilities, and when faced with work better suited to larger firms, they will regularly partner with those large law firms. The reverse is rarely true.
Mid-sized Firms May be More Nimble Than Large Law Firms. Mid-sized law firms exhibit a remarkable agility that often surpasses their larger counterparts in the legal arena. Unlike their cumbersome counterparts, mid-sized firms possess the flexibility and adaptability to swiftly respond to the ever-changing dynamics of the legal landscape. With fewer bureaucratic layers and a leaner organizational structure, mid-sized firms can make decisions quickly and pivot their strategies with ease, allowing them to stay ahead of emerging trends and effectively navigate complex legal challenges. This nimbleness not only enables mid-sized firms to capitalize on new opportunities but also ensures a more responsive and dynamic client experience. Whether it's embracing innovative technologies or adjusting to shifting market demands, mid-sized law firms demonstrate a remarkable ability to stay agile and proactive, making them the preferred choice for clients seeking efficient and forward-thinking legal representation.
Exceptional Quality. Mid-sized law firms often boast a unique advantage over their larger counterparts when it comes to delivering top-notch legal services. While large firms may tout their extensive resources and expansive networks, it's the mid-sized firms that truly shine in terms of quality. With a more focused and personalized approach, mid-sized firms can offer clients the attention and dedication they deserve, ensuring that every case is handled with meticulous care and expertise. This tailored approach allows attorneys in mid-sized firms to develop deeper relationships with their clients, gaining a comprehensive understanding of their needs and objectives. Moreover, the streamlined structure of mid-sized firms promotes collaboration and innovation, enabling attorneys to leverage their collective knowledge and experience to achieve exceptional results. In essence, it's the combination of personalized service, strategic focus, and collaborative spirit that sets mid-sized law firms apart and establishes them as paragons of quality in the legal landscape.
Matchless Value for Fees. Mid-sized law firms stand out as champions of value when compared to their larger counterparts in the legal realm. While large firms often come with hefty price tags to cover their extensive overhead and administrative costs, mid-sized firms offer a compelling alternative by providing exceptional quality legal services at more reasonable rates. Clients who choose mid-sized firms benefit from the expertise and experience of seasoned attorneys without the exorbitant fees associated with big law. Additionally, mid-sized firms are adept at delivering tailored solutions that align with clients' budgetary constraints, ensuring that every dollar spent translates into tangible value and meaningful results. This commitment to offering superior value for fees underscores the inherent advantage of mid-sized firms, making them an attractive choice for clients seeking cost-effective yet high-quality legal representation.
Superb Client Service. Mid-sized law firms set a gold standard in client service, outshining their larger counterparts with a personalized and attentive approach. Unlike the vast and sometimes impersonal structures of large firms, mid-sized firms prioritize building strong and enduring relationships with their clients. With a focus on accessibility and responsiveness, attorneys in mid-sized firms are able to provide individualized attention and timely support, ensuring that clients feel valued and supported throughout their legal journey. This close client-attorney rapport fosters trust and transparency, allowing for more effective communication and collaboration. Moreover, the streamlined nature of mid-sized firms facilitates direct access to senior partners and decision-makers, enabling swift decision-making and tailored solutions to meet each client's unique needs. In essence, it's the combination of personalized care, accessibility, and unwavering commitment to client satisfaction that distinguishes mid-sized law firms as unparalleled leaders in client service.
Industry Expertise. Mid-sized law firms often emerge as frontrunners in industry expertise, surpassing their larger counterparts in the legal arena. While large firms boast expansive teams across various practice areas, mid-sized firms specialize in cultivating deep and nuanced knowledge within specific industries. This focused approach allows attorneys in mid-sized firms to develop a comprehensive understanding of the unique challenges, regulations, and opportunities inherent to their clients' industries. By dedicating themselves to mastering the intricacies of specific sectors, mid-sized firms can offer tailored and insightful legal solutions that address the precise needs of their clients. Moreover, the close-knit nature of mid-sized firms fosters collaboration and knowledge-sharing among attorneys, further enhancing their collective expertise. Clients who choose mid-sized firms benefit not only from legal proficiency but also from the depth of industry insight that sets these firms apart as indispensable partners in their respective fields.
Business Acumen. Mid-sized law firms exhibit a distinct edge over their larger counterparts when it comes to business acumen. While large firms may possess extensive resources and global reach, mid-sized firms excel in leveraging their intimate understanding of client needs and market dynamics to drive strategic decision-making. With a more streamlined organizational structure and closer client relationships, mid-sized firms are often quicker to adapt to changing business environments and industry trends. Moreover, the nimbleness of mid-sized firms allows them to seize emerging opportunities and innovate more readily, positioning them as agile and responsive partners to their clients. This keen business acumen enables mid-sized firms to not only provide exceptional legal counsel but also offer valuable insights and solutions that contribute to their clients' long-term success. In essence, it's the combination of strategic foresight, adaptability, and client-centric focus that sets mid-sized law firms apart as leaders in business-minded legal services.
In summary, mid-sized law firms embody a multifaceted advantage that distinguishes them as the optimal choice for clients seeking unparalleled legal representation. From the real-world experience of seasoned attorneys to their unmatched agility in navigating complex legal landscapes, mid-sized firms offer a compelling alternative to their larger counterparts. With a relentless commitment to exceptional quality, matchless value for fees, superb client service, industry expertise, and keen business acumen, mid-sized firms stand as paragons of excellence in the legal realm. As exemplified by the experiences of professionals like my neighbor, who found fulfillment and success in a mid-sized firm, the tailored approach and collaborative spirit of these firms ensure that clients receive nothing short of exemplary service. It's time for businesses and in-house counsel alike to recognize the unparalleled advantages that mid-sized law firms bring to the table and make the informed choice for their legal needs.
James J. Stapleton is the Managing Principal of Client Sciences. Mr. Stapleton spent several decades building multiple AmLaw 100 law firms and large accounting firms including PwC and Arthur Andersen, during which time he managed over 7,500 transitions between law firms on behalf of clients.
Client Sciences works with clients to reduce legal fees, optimize relationships with your law firms and streamline your internal legal processes. Mr. Stapleton can be reached at 408.440.7660 or via e-mail at james.stapleton@clientsciences.com.
