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But that does not mean that attorneys are out of
the woods. Hildebrandt and others say the pan-
demic pushed firms to fully grasp how much
underperforming and underused partners and as-
sociates were dragging down profits, as firms looked
to guard cash by freezing partner draws.
“In good times, law firms are often slow in dealing
with performance issues,” the report read.
“This crisis has shone a light on differing perfor-
mance levels. This has caused a number of firms to
accelerate performance reviews, as they recognize
that it is bad for economics and the firm’s culture
to not act on performance issues as they occur,” the Credit: VGstockstudio/Shutterstock.com

report said. processes, job design, and staffing levels,” legal con-
Roughly 41% of professionals who run a law firm’s sultant Tim Corcoran said.
operations said that underperforming attorneys are But that does not necessarily have to mean layoffs
a high risk to profitability, according to the Thom- alone. Corcoran said firms may look to boost their
son Reuters Institute’s 2020 Law Firm Business operations and business development ranks as the
Leaders Report. That figure is greater than the 38% pandemic and lack of face-to-face drives innova-
who agreed that the current eco- tion. Many marketers say they’ve
nomic outlook is a high risk. been busier than ever putting out
Law firm support—legal client advisories and webinars.
assistants and paralegals, in partic- But its worth noting that the
ular—has so far suffered the brunt United States is in the throes of
of the year’s economic fallout. Law A mix of layoffs and hiring the worst wave of coronavirus cas-
firms such as Winston & Strawn; es. A New York Times database
Skadden, Arps, Slate, Meagher & will continue through reported nearly 168,000 Ameri-
Flom; and Baker McKenzie made 2021, experts and firm cans tested positive for COVID-19
significant cuts to staff earlier this leaders say, as the industry on Monday in addition to 1,265
year, deep in the throes of the pan- absorbs lessons learned in deaths, a two-week increase of 3%
demic. But not all of the layoffs and 28%, respectively.
the pandemic.

have been connected to demand. A further increase in deaths and
As the pandemic forced offices hospitalizations, in conjunction
closed, kitchen staff, legal assis- with a new strategy for prevent-
tants and library staff have all seen ing spread, may lead to lockdowns
furloughs, pay cuts and layoffs. and closures. Hildebrandt notes
And depending on the sticking power of remote that, more than anything, uncertainty has defined
work arrangements, many of those jobs may not the year. Predictions on the behavior of law firms
come back. Partners have found it easier than they may get thrown out the window with another wave.
thought to do many of the administrative tasks they Hildebrandt references an old Chinese proverb:
had delegated before. And the reevaluation of office “People who use crystal balls will eat the shattered
space portends fewer hospitality and administrative glass.”
employees. ¦

“The pandemic has caused everyone to be remote, Dylan Jackson writes about the business of law
and yet the work is still getting done. So in some and race. He can be reached at [email protected]
cases, it might make sense to reexamine business or 305-347-6677. On Twitter @DylanBJackson

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