After the severe economic recession in 2008, more and more law firms and legal counselors are demanding concessions such as hourly charges, quantity discounts, arrangements for alternative fees. The pyramid model of a traditional law firm will not be far from extinction and there will be doubts if there is sufficient flexibility to meet these demands. Indeed, the technical and economic pressure on the pyramid model promotes dynamic changes in the legal field, in particular the structuring of law firms. This article explains potential solutions to these issues.
In the traditional pyramid's law firm model, the foundation is wide and combines a pool of employees, which generally narrows as you move toward partnership. Depending on the company, through senior associates and impact partners, we will be narrowed to the top of even larger top partners. As you go up the pyramid, compensation and hourly wages generally increase. In a true pyramid model, a lawyer moves up or out if it does not reach the next level. This model is also used in other professional services business.
Although this model has been very successful over more than a century, it is possible to exclude mid to senior lawyers qualified to provide legal services, but additional requirements of traditional law firms are undesirable. For example, a lawyer who is a parent of a young child may want to work a week of 30-40 hours, but can not respond to a heavy litigation burden request. Or a partner-level lawyer who wishes to provide legal services in developing new business. In many companies, the pyramid's top can only reach lawyers who generate millions of dollars of origin. Not all lawyers hope for this demand as part of a professional life.
Another model, called the "diamond" model, attracts a considerable part of the attorney's labor force in the middle. This includes senior associates and partner-level lawyers who are experienced and capable, but do not want to get on the path of traditional stock partnerships. Staff defenders and para-experts will increase opportunities for human resource development. By managing the overhead burden per attorney, "Diamond" law firms can theoretically offer legal services to customers at a lower cost. More efficiency can be gained by concentrating the business of the company on one or several practice areas, such as "boutique" models.
The future of the diamond model is not yet decided but presents a potential solution to lower the cost of legal services.
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