It’s evident that growth remains a key focus for global law firms, a fact that is underscored by the ongoing trend of mergers, new branch launches, and structural changes aimed at offering competitive services in a global marketplace. As reported by Law.com, the aspiration seems to align more closely with a ‘too big to fail’ ethos, as opposed to the ‘small is beautiful’ concept that many businesses outside of the legal sector have embraced.
The emphasis on expansion and revenue growth, however, prompts a significant question: might this be a short-sighted strategy? The 2012 collapse of Dewey & LeBoef, a once giant law firm, stands as a stark reminder that size and growth alone do not guarantee success. It’s worth noting, though, that concerns that such failures would haunt the industry appear to have been short-lived. Instead of instilling caution, the pursuit of growth has only been fuelled further in the wake of the COVID-19 pandemic, illustrating an unwavering commitment to expansion within the legal sector.
The challenge facing law firms, therefore, is to balance the drive for growth with the need for sustainability and resilience. As firms contemplate this pursuit, stakeholders in the world’s biggest corporations and law firms might well ask: All this growth – what is it for?