Marketing your practice in a recession.

• Author: Fishman, Ross

At least they're being honest this time. Around 1987, the economy was in the tank and firms with significant real estate or corporate practices had to cut lawyers--primarily fungible general associates and overpaid partners without enough portable business. Not wanting to appear financially troubled, many firms disingenuously declared mass terminations to be "part of the annual review process." That is, they preferred to declare their friends down the hall to be sub-par rather than admit that in a declining economy, law firms simply need fewer transactional lawyers. It was disgusting.

We're in a similar economic situation today, but firms have gotten used to culling the herd to prop up profitsperpartner: "Hey, it's just business. You're fired. Good luck." And when prominent firms such as Heller Ehrman and Thelen start crashing down around us while others are teetering or terminating associates by the dozen, it's time for marketers to figure out how to add even more value than usual, or demonstrate the value they provide. Some would advocate getting closer to the client--engage in more sales--or business development-oriented activities. That's a great idea. Lock in your most important relationships; focus even more effort on the top 20 percent, the clients you can't afford to lose. Use the stagnant economy as the justification for opening new conversations and finding ways you can help them through the tough times ahead. Drag your lawyers out of the office to visit clients. But we need both sales- and marketing-related activities to manage a declining economy. Let's focus here on the marketing part.

A Battle of Attrition

Back in the '80s, legal marketing was still in its infancy. Lawyers were just getting used to the idea that law was becoming a business, as well as a profession. Many firms resisted the change. Many folded. Most of today's managing partners have not led firms through such troubled times. When an economy is expanding, even bad management decisions can look like genius. In a declining market, those same decisions can be disastrous.

Your 2009 marketing budget can go one of three ways: up, down or sideways. Facing next year's uncertainty, many firms will cut expenses to the bone, disemboweling marketing and other administrative departments, while cutting "surplus overhead," i.e. lawyers. This is especially true in transactional firms without a surging litigation department offsetting the declining revenue. They hope to cling to...