Bryan Cave’s new firm chair is planning to cut back on small clients. According to ‘Above the Law’, Therese Pritchard has sent an email to lawyers at the firm pointing out that large clients are best. ‘ [S]ubstantial clients have proven to be significantly more profitable to the Firm than consistently small clients. Specifically, between 2009 and 2013, approximately 75% of our new clients generated less than $20,000 per year in fees,’ she points out.  

Too many risks

‘These new clients had overall margin averaging -29% and realization of 76%. Collectively, they represented only 2% of our total collections over a 5-year period and just 2.6% of total hours worked by the Firm.  Many of these small clients presented a variety of additional challenges, including collection challenges, some conflicts that prevented us from accepting clients with far greater revenue potential, a disproportionate burden on our administrative staff and on occasion liability risks for the Firm.’

Eliminate

Ms Pritchard went on to say that the firm wanted to ‘eliminate from our roster those very small clients who have not grown for a 3-year period, and who appear unlikely to present opportunities consistent with our strategic objectives.’ Source: Above the Law