In 2009, business spending on legal services plummeted nearly 7 percent, according to the U.S. Census Bureau. The $164 billion U.S. businesses paid for legal services last year is 6 percent lower than the 2008 peak. Had the market grown by 3 percent each of the past five years — a modest assumption given the prerecession course — that number would be $208 billion.
Many Big Law firms have scrambled to respond to what is essentially a $40 billion-plus gap between bygone expectations and today’s market reality. Their tactics have been at times short-sighted, such as heavily discounting hourly rates, and at times reactionary — offering alternative fees without a corresponding accounting of their cost, for instance.
Poor and Seyfarth, meanwhile, were preparing for change long before the sun began to set on the golden age. In 2005, Poor began positioning his 800-plus lawyer firm to respond to today’s price-sensitive general counsels.
