from big law to lean law
DESCRIPTION
These slides contain the figures used in "From Big Law to Lean Law", an essay published in honor of the late Larry Ribstein. The full article can be accessed at http://ssrn.com/abstract=2356330. The full citation is William D. Henderson, From Big Law to Lean Law, 3 Int'l Rev. L. & Econ. 271 (2013).TRANSCRIPT
From Big Law to Lean Law
William D. HendersonIndiana University Maurer School of Law
Unlocking the Law: Building on the Work of Larry E.
RibsteinNov. 9, 2012
The Death of Big Law
2010 Wisc. L. Rev. 749
Posted on SSRN, fall 2009
19861987
19881989
19901991
19921993
19941995
19961997
19981999
20002001
20022003
20042005
20062007
20082009
20102011
2012$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
Average Revenue Per Lawyer (RPL)Am Law 100, FY 1986 to 2012
Revenue Per Lawyer 2-Year Moving Avg.
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 201140
45
50
55
60
65
70
75
80
85
90
Left Joined
Year of Lateral Movement
Rank
of A
m L
aw 2
00 F
irm L
eft o
f Joi
ned
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2.00
2.50
3.00
3.50
4.00
4.50
5.00
Ratio of Total Lawyers to Equity Partners (Leverage) Am Law 100, FY 1994-2011
Susskind’s Paradigmof the Future Legal Marketplace
Bespoke Standardized Systematized Packaged Commoditized
Needed human capital:• Information technology• Systems engineering• Finance• Marketing• Project Management• Law
19992000
20012002
20032004
20052006
20072008
20092010
19981999
0%
20%
40%
60%
80%
100%
120%
140%
160%
Change in # of Employees since 1998Legal Services Industry
Law Offices vs. All Other Legal Services
Offices of lawyers All other legal services
% G
row
th in
Em
ploy
ees
Since 2004:Law Offices: -47,729 jobsAll Other Legal Services: + 7,696
Generated by William Henderson (June 2012)
