Business of Law
BigLaw partners can’t really be entrepreneurial, consultant says (video)
Posted Nov 14, 2013 11:38 AM CDT
By Lee Pacchia
This year has been a "long slog" for most major law firms, with revenues and profits rising modestly, if at all, law firm consultant Bruce MacEwen tells Bloomberg Law's Lee Pacchia. Two aspects of BigLaw make it difficult for law firms to change that, he says. First, despite claims they are entrepreneurial, partners aren't really creating something new. Second, most firms pay out all their income as partner profits, without investing significant money back into the business.
Lawyers' desire for current income is "totally incompatible with being an entrepreneur," MacEwen says. "If really you're going to be an entrepreneur, you have to say, 'to heck with today, I'm focused on tomorrow.' ... I don't really see an investment mentality in law firms. It's a consumption mentality."
See the video interview here.
Legal Rebels: "Latest data reveals growing problems for OldLaw"