The outbreak of Covid 19 last year led to devastating effects of several businesses. This was courtesy of the various restrictions that were declared by the government. Some of the restrictions included lockdown in several areas; air travel was abhorred by several governments; loss of revenue since the various countries were at a standstill and movement of people was as well restricted by the government to mitigate the Covid 19 pandemic. Most of the companies resorted to laying off workers, others sent the workers on compulsory leave without pay and some had to close business for they were not getting clients.
Moreover law firms that heavily depended on litigation as their area of expertise suffered for the courts were closed for a long period this means that their source of revenue was affected. With the closing of business those law firms which depended on commercial and corporate transactions suffered the same fate. Not forgetting those in the conveyancing area of speciality. In the long run as well courtesy of the pandemic the demand of clients as well reduced.
As we transition to new ways of operation against the backdrop of a volatile global economic outlook, global businesses are implementing strategies to ensure they can continue to operate in a rapidly changing and increasingly uncertain legal and regulatory landscape. Operational resilience and a clear strategy will be essential for organizations not only to survive but to as well strive. While protecting public health still remains the priority, many organizations are facing challenges, including major disruptions to their supply chains, meeting contractual obligations, bringing people back to the workplace and implications under funding arrangements.
Due to the changes that have taken place it behoves the law firms to change their strategy and adapt to the new way of operations for them to be sustainable. This calls for crisis management for the law firms. The following suggestions will help to make sure that the law firms remain sustainable post Covid 19.
It is incumbent upon the managers of the law firms to keep focus on its personnel. Many law firms have recently undergone staffing changes and even salary reductions in order to make ends meet.
It is integral that before making any personnel changes, consider any alternative strategy that would not result in layoffs for the dedicated employees are the reason that the business will make it through this global health crisis. The people working in the law firms should be treated as a valuable investment. This will in the long run help their morale and motivate them to work. Laying off may not be the best option because you can lay off one who had a pivotal role in the company and getting a replacement may be a tedious endeavour.
Secondly, maintaining a full work force is very difficult in this time when most forms are seeing a decrease in potential clients and reduced demand from existing clients. To avoid laying off employees, you’ll need to find a financial cushion in the margins. One way to do this could be to pursue payment on your outstanding accounts receivable. You could have more funding available than you expected. You can also investigate possible lines of credit to bridge the gap until the economy returns to normal. Thirdly it is imperative for law firms to embrace technology by heavily investing in it for even right now most client meetings and court sessions take place online; this will aid you to support your clients in the transition to the new normal. As well, the law firms need to invest heavily in social media and other forms of digital marketing.
Law firms as well can make use of remote working for this will reduce costs and as well this will be effective for those in departments that will need one not to go to the office. Being that as well paying rent is becoming difficult, remote working is the best resort. Other law firms have come up with virtual firms to aid in their day to day activities.
Developing a diverse practice mix remains the best advice. This is because when one sector is affected by the pandemic heavily then the law firm will not be forced to shut its doors but operations will go on and revenue will continue coming in.
This is the time to make your clients your priority. Your clients will remember how you treated them when the going got tough. They are feeling overwhelmed and they may be struggling financially during this time. Offering them compassion and understanding will go a long way to solidifying your working relationships. Take time to converse with them and understand.
