Elaborating on the immediately previous post, the curve on the graphic
is…[drum-roll, please]—a demand curve, our Econ.
101 friend. (High $$$ price means little demand ["bet the company"],
low price means high demand ["generic"].)
Every demand curve calls for a supply curve. Here’s the demand/supply
situation as envisioned by our purchasing agents:
In other words, you either meet their RFP-specified cost parameter or
you don’t. The RFP embodies zero flexibility or judgment as to
the value of the services to be rendered, and essentially eliminates
all high-value work from consideration.
Now let’s envision another supply curve, created by imagining
how a law firm might evolve to survive and prosper in this cruel new
world:
What exactly does this represent? The (imaginary) firm of the
future that has the technology, the professional mindset, the financial
discipline, and the competitive drive to be able to deliver appropriately
targeted advice and counsel across the spectrum of its clients’
demands for same.
At the top left, we surely still have the Wachtel’s and Cravath’s of
the world. At
the bottom right and across the curve, we could have
the emerging global behemoths (Clifford Chance, assuming they make it;
Jones-Day; Latham & Watkins; Piper-Rudnick [see Clifford Chance]; Mayer-Brown;
Sidley) tailoring their services to each market micro-sector, fluidly
adapting the way they deliver services to the client’s willingness to
pay, and to the complexity or lack thereof of the issue posed.
Will this happen? When it comes to predicting innovation on the
part of law firm management, we are skeptics. When it comes to
identifying an unoccupied, and potentially extremely profitable, market
segment, we feel confident saying it will come to pass.
