So Much for Best Practices: Niche Strategy Didn't Save Redgrave, a Specialist Law Firm, from Demand Plummet

 At one time in business history, establishing the unique niche was promoted as the best practice. That was hammered in the "Blue Ocean Strategy."

It was supposed to insulate a business from the kind of competition that generates price wars.

Well, Redgrave law firm did just that. As its website explains it is the only top-tier law firm with a specialty in Information Governance and eDiscovery. It had even anticipated a big leap in growth by merging with Nelson Mullins. But the kibosh was put on that because of conflicts of interest. 

However that might have played out more like a one-trick pony. Which ran out of customers for that one trick.

As Abovethelaw reports Redgrave has experienced a significant decrease in demand. Its head Jonathan Redgrave does not anticipate an uptick in the near future. To be laid off will be 10% of timekeepers. The Reduction in Force is said to include lawyers. Yes, severance is being given.

So, an arctic chill should be going through the law firm sector.

This is the first layoff. At least the formal kind, not a stealth layoff.

It's out there: The Layoff.

But, to insiders this is no surprise, of course.

Last week Law and More had reported that the thread on Subreddit Big Law had discussed the slowdown of the lateral market  for junior lawyers. The reality is this: Junior lawyers don't create the kind of value midlevel and senior associates do.

So, what Law and More predicted was that junior lawyers should prepare themselves for terminations, either through stealth layoffs or an official RIF. Of course, their high compensation has made them sitting ducks for getting put out of the street. They may, however, be in disbelief. They haven't experienced a down market. 

The most vulnerable firms are, yes, the one-trick ponies in which they bet the ranch on what is now the wrong special area of expertise.

Less vulnerable but still at a major risk are the law firms which haven't diversified enough. For example, when litigation wasn't bouncing back, they rushed into transactional. Often they ignored litigation which is doing well. Meanwhile big chunks of transactional are stalled. 

So, right now, Paul Weiss' Brad Karp looks quite smart - and visionary.

Before he became chairperson in 2008, the firm was essentially a litigation powerhouse for financial firms, documents Insider. He added on transactional services. Currently, if you look under the hood at its practice areas you will notice the broad reach of both litigation and transactional. Scroll through the firm's awards and what's obvious is the star power in both. 

At all law firms at all levels - partners don't have job security any more, The Wall Street Journal confirmed - lawyers have to create strategy for how to create value. And make their achievements known to the decision-makers in the firm.

Connect with Editor-in-Chief Jane Genova at janegenova374@gmail.com. She helps businesses conjure up magic in their storytelling. One client said, "She makes shipping containers ‘sexy.’"