Biglaw Firm Only Wants Big $$$ Clients

Which Biglaw firm wants attorneys to "reduce the burden" of small clients... within 30 days?

It may be obvious that the real bread and butter of a Biglaw firm are the large institutional clients that are a consistent revenue stream, but smaller clients still play a role in the day-to-day reality of many a Biglaw lawyer, whether they’re vanity projects, prestige cases, friend-of-the-firm favors, startups, new markets, or a myriad of other scenarios. One Biglaw shop wants to mix that up — Bryan Cave is making moves to cut loose the proverbial anchors holding them back.

Firm chair Therese Pritchard, who formally took on the position in October of last year, is already starting to leave her mark with a mandate about small ($20,000 or less in yearly fees) clients. She wants them gone, preferably within 30 days.

In an email sent to all attorneys, Pritchard outlines her case against small clients:

[S]ubstantial clients have proven to be significantly more profitable to the Firm than consistently small clients. Specifically, between 2009 and 2013, approximately 75% of our new clients generated less than $20,000 per year in fees.  These new clients had overall margin averaging -29% and realization of 76%. Collectively, they represented only 2% of our total collections over a 5-year period and just 2.6% of total hours worked by the Firm.  Many of these small clients presented a variety of additional challenges, including collection challenges, some conflicts that prevented us from accepting clients with far greater revenue potential, a disproportionate burden on our administrative staff and on occasion liability risks for the Firm.

And the firm is very clear on how small clients fit into the future of Bryan Cave. They do not.

Our goal is to eliminate from our roster those very small clients who have not grown for a 3-year period, and who appear unlikely to present opportunities consistent with our strategic objectives.

Well then. Pritchard’s plan has a timeframe of 30 days to sever small client relationships and also calls for referrals for new business beneath them.

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Representation of small clients who do not present growth opportunities does not improve our financial performance.   Please help us to reduce the burden presented by carrying so many small clients by following the instructions outlined above within the next 30 days.  I also hope you will begin to think at intake about whether potential new clients are presenting you and the Firm with an opportunity that will advance the goals of our strategic plan, or whether you should suggest that the matter be handled elsewhere.

Unsurprisingly, the subtext of this post is “Biglaw firm only cares about money.” Whatever lofty ideals folks may enter the legal profession with, the primary objective of the firm structure is to make money. With the changes technology and the economy have made to the legal industry, firms find themselves making difficult decisions. Attorneys at Bryan Cave may lament the loss of autonomy and opportunities that smaller clients frequently bring, but it’s part of the new reality of the legal industry.

And if you’re a client of Bryan Cave’s that isn’t making your “billable target,” expect an uncomfortable email.

We reached out to Bryan Cave for comment but haven’t heard back. You can read the full email on the next page.

Earlier: Biglaw Chairperson Entirely Unexcited About New Job
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