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Adam Smith, Esq.: An inquiry into the economics of law firms....
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April 2, 2009
What We Know & What We Don't Know
Just as McKinsey's consulting practice centers on corporate America, certainly its core clientele and expertise, as opposed to law firms, where they have no domain expertise that anyone would notice, the McKinsey Quarterly surveys do not encompass law firm leaders, but global corporate executives. Nevertheless, these are widely traveled and well-informed people with their fingers on the pulse of the global economy, so it's worth reviewing what McKinsey learned in its most recent (March 10--March 16) series of interviews in its "Global Survey."
Here's what they found.
In summary, a "gloomy economic stasis has taken hold," and while the proportion of executives saying economic conditions have deteriorated has, at least, not increased this quarter, fewer than one-third expect an economic upturn this year.
As we've almost come to expect in these types of surveys, and amusingly, overall they remain confident about how their own companies are handling the crisis (still, over half expect profits to drop in the near term).
Some other interesting results of the study:
There's no doubt whatsoever that trust in business has fallen: 85% have that view. And the culprit? The #1 response(56%) was: Financial firms' inability to comprehend risk and guard against its repercussions. For our purposes, what's more interesting is that after #2 (33%, "job losses," which is something of a non-response) was "executive compensation levels" (29%). Why do I me"
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