♬Following the leader, the leader, the leader
We're following the leader wherever he may go…♬
Lyrics and music by: Sammy Fain, Sammy Cahn, Frank Churchill, Winston Hibler and Ted Sears, from Peter Pan.
The ABA Journal on Sept 17, 2009 reported that O’Melveny and Myers revealed plans to become a high-end fixed-fee leader in their latest 5 year strategic plan.
'The aim, according to the plan, is to become “the leader in providing high-end legal services on a fixed fee basis, reducing costs to clients and achieving superior economic performance through practice management oriented toward cost-effective client service.'
Woah! Wait one billable minute here! Cost-effective client service? Superior economic performance through practice management? Managing partners at other firms must be shaking their heads, wondering what got into the water over at O'Melveny and Myers.
But it appears that the new strategic model of the firm is based on a sober analysis that the firm's current economic model is not working. And if it is not working for them, it is probably not working for many other firms with similar business plans who are not willing to step up to the plate and face the fact that the game has changed – and changed drastically. The ABA reports:
"The firm’s litigation model “which depended heavily on high charge hours levels by associates, counsel and partners to offset the impact of discounted rates and increased write-offs of expenses and time, has been under pressure for at least three years,” the plan says.
This is a sea-change in approach to business planning, strategy and marketing (since this is bound to create ripples in the corporate client community). I salute the partners at O'Melveny and Myers for leading the change towards a more client-centric, value-based billing model. Clients have been demanding changes in how lawyers bill and render services for years; they are seeking a way for the lawyers to be sensitive to improving efficiency and in gaining greater alignment between the client's business and how legal services are rendered. O'Melveny and Myers, by being early-adopters, stand a good chance of figuring this out first and not being part of the 'lost boys'.
