Bloomberg have an interesting article by Professor Ben Barton on the stark choices facing Big Law as they react to competition from new entrants.
It is a very good piece. However, I would question one small aspect. Professor Barton suggests that one option is for firms to move towards high end work and in the process "increase leverage". It seems to me that a law firm that pursues a strategy of only doing high end bet the bank work will need to have low leverage and field a team of experts. The problem is that existing firms which adopt that model will need fewer staff and smaller offices. That brings to mind the old joke where somone asks for directions and receives the reply: "I would not start from here if I was you."
Broadly, law firms have two options. They can shrink the number of equity partners, try to draw laterals, increase leverage, lower overhead by firing staff and shrinking offices, and otherwise stay the course. Or they could fundamentally change the way they do business, and risk undercutting the very profitable business they already have, by offering services in an utterly unfamiliar manner.