As
the
economic
recovery
continues
in
full
swing,
law
firms
saw
a
much
rosier
outlook
according
to
the
recently
released
Q1
2024
Thomson
Reuters
Law
Firm
Financial
Index.
How
good
do
law
firms
have
it
right
now?
The
LFFI
is
59!
Which
is
a
lot
like
telling
someone
the
temperature
in
celsius.
Is
31
hot?
Because
that
seems
like
it
should
be
cold.
Have
you
considered
a
temperature
scale
that
describes
things
in
terms
that
matter
to
humans
as
opposed
to
water
in
a
beaker?
All
right,
so
the
specific
LFFI
number
aside,
conditions
have
improved
for
law
firms,
with
revenue
up
like
the
Bronx
and
the
expenses
down
like
the
Battery.
And
there
was
much
rejoicing.
If
you
didn’t
get
that
one,
you’re
apparently
not
alone.
Still,
all
the
celebratory
coverage
glosses
over
the
lagging
demand
figure
for
the
Am
Law
50
relative
to
Q1
2023.
Every
other
sector
is
pulling
the
overall
figure
up.
Don’t
shed
any
tears
for
elite
firms
though.
Demand
could
also
be
dragged
down
by
the
few
flailing
firms
who’ve
spent
the
last
couple
years
looking
around
at
everyone
else
rolling
around
on
piles
of
money
and
asking,
“but,
guys,
don’t
you
all
want
to
do
some
layoffs?”
New
also
rates
might
have
pushed
some
work
outside
and,
if
that’s
the
culprit,
resetting
rates
to
account
for
client
growth
and
the
impact
of
the
recent
inflation
cycle
have
more
than
offset
that
demand
hit.
The
“fees
worked”
figure
is
the
pre-realization
proxy
for
revenue
growth
and
everyone
is
sitting
pretty
over
there.
Now…
will
the
firms
collect
on
all
those
new
year’s
fees?
Realization
rates
won’t
be
part
of
this
equation
until
next
quarter.
So
stay
tuned.
Joe
Patrice is
a
senior
editor
at
Above
the
Law
and
co-host
of
Thinking
Like
A
Lawyer.
Feel
free
to email
any
tips,
questions,
or
comments.
Follow
him
on Twitter if
you’re
interested
in
law,
politics,
and
a
healthy
dose
of
college
sports
news.
Joe
also
serves
as
a
Managing
Director
at
RPN
Executive
Search.