January 9, 2007
Law Firm View of the Economic Outlook for 2007
Unfortunately, there is an overhanging concern that world events or terrorist activity could abruptly change the normal course of events. Nevertheless, the odds-on favorite is for a good economy in 2007. One investment organization I deal with places the chances of a down turn in the low 15 percent range. We appear on course for a GDP growth in the range of 2.75 percent to 3.25 percent. Inflation should hold to the 2 percent to 2.5 percent range. It looks like the Federal Reserve will hold interest at their current level or even ease in the second quarter. All in all, the outlook is a healthy one.
Nevertheless, world uncertainties warrant keeping some powder dry. Avoid overextending the firm in terms of debt, merger activity, or overreaching in terms of talent additions. Relying heavily on a major client or particular industry could prove to be an undue risk. If you are heavily dependent on a few clients or single industry, it is time to consider their susceptibility to the particular kinds of risks we face today, including the risk of a sudden change in the availability of oil.
While the outlook is for a good year, its may be one best suited to consolidating your gains and strengthening your law firm financial health and operation performance—emphasizing improved planning, workflow efficiency, and the firm’s overall performance metrics. Concentrate on improved effective rates, better scheduling and delegation of the firm’s associates and paralegals as well as on faster billing and collection. Use this period to replace any remaining legacy systems. You don’t want to get caught in recession or downturn with systems that are no longer supported or that become operationally unsound. Nor do you want to have the competitive disadvantage of being behind your peers.
Morepartnerincome.com is sponsored by Juris, Inc. For information about Juris® products and services for increasing law firm performance and partner income, go to www.Juris.com.
Related posts
Filed under Operations by Tom Collins
Leave a Comment