Hugh Simons, who was also former chief operating officer at Ropes & Gray, says Elite law's self-confidence has taken a beating. In an article in American Lawyer he claims that it is time for any top firm to ' rediscover belief in the value it provides and start to raise rates as it did before the recession.' Mr Simon says the recession is over and 'disruption is far from an existential threat.'  Since rates have gone from declining to rising at a steady pace, his view is that power has shifted back from clients to law firms. 'If law firms have the bargaining power to raise standard rates an average of 3 per cent, and realise a rate increase of 2.5 per cent, then do they have the power to raise rates at, say, 7 per cent and realise a 5 per cent increase?', he asks. 

A new billing rate world 

The former COO  is of the opinion that 'it’s a new billing rate world out there. Law firm leaders would do well to buy the option of increasing billing rates assertively at year end by starting to prepare partners for such increases now.'  His advice is that firms should take the following steps: 

• Raise rates across the board.
• Discount from the higher rates where necessary.
• Increase rates more for partners.
• Increase rates more for more distinct practices.
• Exit, or leverage up, practices where realised rates (ie after discounting) don’t rise.