This is dejà vu of the now famous Dupont Model crafted by then inside lawyer Dan Mahoney. According to the Chicago Tribune wire reports published April 19, 2005, Allstate Corp will cut the number of outside law firms it uses each year to 13 from as many as 400.
Food for thought: This is indicative of a trend that many law firms don’t want to think about. Obviously Kirkland & Ellis did because they have already been selected as one of the “chosen”.
Law firm leaders should be anticipating this trend and assiting their clients in exploring the benefits of this strategy. What better way to make sure you stay on the short list, like Kirkland & Ellis did, instead of sliding into oblivion where all but 13 of Allstate’s 400 law firms are going.
The surviving 13 firms will have to manage better, serve better, and, if like the Dupont scenario, share knowledge with competitors. The benefits will be enormous for both Allstate and the surviving firms.