9 Possible Effects of Coronavirus on Law Firms

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9 Possible Effects of Coronavirus on Law Firms
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1. Customer Trust is More Important Than Ever

• Due to the coronavirus, new claims for
  unemployment benefits have skyrocketed, as over
  22 million people in the US alone lost their jobs
  in one month.

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2. The lavish offices

• The decrease in income and savings that remote
  work will allow reflects Alexander H. Fuqua from
  Sevens Legal, will lead firms to consider their
  fixed costs, and, after payroll, rental spending
  is the second-highest.
• Companies, especially big law firms, are aware
  that all these expenses fatten their invoices.

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3. Humanization of the profession

• It is a striking coincidence that the coronavirus
  may also play a pivotal role to humanize the
  legal profession where the culture of profit
  pursuit and win-lose mentality is deep-rooted.
• The explanation for this phenomenon is that "the
  virus puts us all on the same level and teaches
  us how vulnerable we all are."

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4. An opportunity for ALSPs

• Fuqua introduces a last element that can change
  in the context of this crisis. "Budget
  constraints and job tips will push some law firms
  to experiment with other alternative legal
  providers (ALSPs) that they have so far been more
  reticent about," he concludes.

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5. The end of the culture of presenteeism

• "We have tried teleworking and it works," sums up
  Jim Mattis, partner and deputy to the management
  of Saggio Legal Consultancy. Until now, this firm
  had excessively awarded presenteeism.
• He ruled out that no organization can operate
  alone in a teleworking regime.

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6. Financial impact

• Law firms will lean toward wage restraint. This
  is the case for Owen Owens, which has announced
  the freezing of salaries for lawyers and staff,
  as well as measures that may eventually entail
  the retention of part of the partners'
  remuneration.

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7. Creating a financial plan

• At Ahlawat Associates, believes that, after
  experiencing this pandemic, firms will be obliged
  to rethink the care measures of their
  professionals.
• Perhaps we will have to run a year without
  bonuses to constitute a rescue fund so that if
  another crisis knocks in the near future, well
  have a healthy cashflow to survive.

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8. More work for less fee

• The economic downturn that is already beginning
  to be felt will force firms to adjust their fees.
  Fewer operations, more labour, and more
  restructuring is expected by a majority of law
  firms in the next few months.
• "Lower prices, longer payment terms and greater
  risk of non-payment,"

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9. Digital boost

• A process that must be accompanied by other
  changes, such as the implementation of a digital
  project manager, investment in a robust
  videoconferencing system, etc.

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