Originally published in The Legal Intelligencer/law.com
What happens when the executive branch declares open season on the rule of law?
In the wake of a series of executive orders targeting top U.S. law firms, the administration has sent a clear message: defying their wishes may come at a cost. Some firms have chosen to settle. Others have pushed back. Virtually all are grappling with a fundamental question: How do we lead a law firm when the entire profession is under siege?
The decisions being made today have the potential to reverberate for years—inside firms, among clients, and across the legal ecosystem.
For BigLaw, in particular, the long-term impact of today’s choices could be defining. While hundreds of firms readily signed onto amicus briefs in support of Perkins Coie, critics noted the majority of America’s largest firms did not. Vocal members of the community called out the leaders of these firms, including clients themselves:
“If the firm won't stand up for the rule of law, how can I expect them to stand up for me?”
— In-House Counsel, Fortune 500 client
At first, the implications seemed isolated: a handful of highly publicized and vocal Associates resigning on principle. Now, headlines are documenting high-profile departures including long-tenured partners, law schools shifting allegiances and coalitions of General Counsel reallocating their legal spend. Less visible? The voices of those who stayed. And the decision-making that continues behind closed doors.
Even for firms not (yet) in the crosshairs, the challenge is real: How do leaders effectively weigh their options, balance sometimes competing interests and stay true to culture and principles while upholding their fiduciary duty to the firm’s partners and employees? Transparent, deliberate leadership holds the answer – grounded in a clear-eyed understanding of what’s at stake.
The Impact: Clients, Colleagues, Culture and The Bottom Line
The true cost of a firm’s response goes far beyond the headlines. Yes, loss of talent and clients is a landmine – and an expensive one – but other risk factors may pose a larger – and longer lasting – threat.
Client Trust Is on the Line
Clients are recalibrating expectations. Some are quietly (or not-so-quietly) walking away from firms they view as politically compromised. Others are seeking reassurance that their matters will remain prioritized and impartial. Firm leaders across the sector are fielding concerned phone calls, curious to know what the risks are for their outside counsel or how their matters may be affected should their firm be next on the list. Exacerbating or perhaps accelerating this dynamic is demonstrated examples of how technology and AI could potentially replace facets of outside counsel altogether – a potential sidestep that in-house counsel might consider to ease their reliance on BigLaw.Talent is Watching
Within many firms, leadership decisions have sparked internal dissent. Associates are questioning whether the values touted in recruiting brochures hold true under pressure. Incoming lawyers are asking difficult questions. And partners are grappling with how their connection with a firm taking a public stance aligns – or doesn’t – with their own personal beliefs.
Some lawyers are voting with their feet. DEI rollbacks, in particular, are gaining the attention of talent from underrepresented classes as indicators of their firm’s (or prospective firm’s) commitment to creating an inclusive and welcoming environment.The Bottom Line
And, of course, the decisions and moves by clients and talent alike have a tangible, lasting effect on financial performance. The loss of a single Associate can cost an AmLaw 100 firm upwards of $1 million. Partner exits and client migrations are costlier still. But the most enduring financial damage may be reputational: quieter shifts in client behavior, declining lateral interest, and disengaged professionals who stay but withdraw.
The Long Tail: Why These Choices Will Echo
Today’s headlines will fade. But the consequences of today’s choices will compound. Consider:
Reputational capital: Decisions made under pressure can calcify in the public and professional memory. In a competitive market, values-driven clients and recruits won’t forget who stood firm—on either side.
Financial reverberations: Disgruntled talent or clients departing due to a firm’s public stance will have immediate impact on firm financials, but that impact will likely be manageable. It is the long-term effect that will pack a punch. Departing talent may take months or even years to leave (and even those that stay may disengage). Lateral interest may dip – and is rarely measured in a meaningful way. And clients sending new matters to other lawyers will go unnoticed. That is, until the cumulative effect of these takes its toll.
Industry reshaping: The outcome of political positioning and recalibration of the role of the legal industry through legislation and judicial decisions have the potential to redefine the relationship between the government, clients and law firms irreversibly. These outcomes will take years to solidify. And savvy firms will be staying ahead of and managing this uncertainty for themselves and their clients.
What Law Firm Leaders Can Do Now
Meeting this moment requires more than legal acumen. It demands clarity, strategic foresight and a willingness to lead. Here are five priorities for firm leaders:
Focus on What Is True and Lasting
Amazon’s Jeff Bezos once suggested he often gets the question “what is changing in the next 10 years?” but rarely the question “what’s not going to change?” Double down on what the firm stands for, its values and strengths and its sources of power and build strategy around what is true and lasting. Note: this approach does not equate to burying your head in the sand but instead considering how to leverage what the firm does well in the face of uncertainty.Codify Values—and Communicate Them
Don’t assume alignment. Use this moment to surface, affirm and rearticulate the firm’s values, what it stands for, and what lines won’t be crossed. This should come from leadership and cascade across the firm. When values are explicit, it’s easier to make tough decisions—and easier for clients and talent to trust them.Engage Clients Proactively
Don’t wait for clients to ask how you’re responding. Be transparent. Get ahead of questions, host listening sessions and share with clients what actions you’re taking (if any) and what values you’re committed to upholding. Even if you can’t share all details, the act of reaching out goes a long way in preserving trust.Establish a Government Risk Playbook
Firms need frameworks for assessing and responding to political risk—similar to how crisis communications or cybersecurity threats are managed. This should include:Evaluation of risk with current clients and matters
Scenario planning for executive action
Decision trees for high-stakes client conflicts
Messaging guidance for leaders and, by extension, partners and other key stakeholders
The goal isn’t to be reactive—it’s to be ready.
Protect Your People
Psychological safety is a leadership imperative. When fear and uncertainty rise, engagement drops. Offer resources for discussion, dissent, and support. Elevate firmwide conversations about ethics, client selection, and professional identity. Ensure that every partner has the skillsets and resources required to cultivate an inclusive culture, surface and address conflict and intentionally create space for connection.
Final Thought: This Is a Defining Moment
Not every law firm will face a direct challenge from the federal government. But every firm will face questions—from clients, talent, and the public—about where they stand and how they lead.
This moment transcends politics. It’s about what values define each firm and what kind of leadership is at the helm. Decisions today will dictate tomorrow. Choose wisely because the long tail of this moment is already taking shape.
Reprinted with permission from the May 20th edition of the Legal Intelligencer © 2025 ALM Global Properties, LLC. All rights reserved. Further duplication without permission is prohibited, contact 877-256-2472 or asset-and-logo-licensing@alm.com.