Ed Poll runs a regular meeting of managing partners of large law firms. His members come back month after month to share ideas. These firms are among America’s top 100. Poll gave us a some insight into what is being discussed in these confidential conversations. He reveals, today, that these member firms are experiencing revenue decreases every month. The watershed benchmark was this past September. It’s been downhill since then.

I suppose this shouldn’t come as a surprise given the biglaw layoffs we’re witnessing. But are small firm lawyers reacting yet? Some are, some aren’t. I keep hearing lawyers saying they’re going to hang on to associates and staff and ride this recession out. If that’s your plan I hope you know more than most of the experts quoted in the media. Everything I read says we shouldn’t expect to see any sign of a turn-around until 2010 and even then we will only experience the beginning of a shift if the right direction – not a recovery.

Earlier this week, on our podcast, I argued that small firms should cut payroll. Erik Mazzone responded by saying a payroll cut, for many small firms, simply means cutting the owner’s pay. If that’s the case in your firm then it’s time to start figuring out how to cut more than business expenses. It’s time to cut personal expenses as well. Maybe our next podcast should be about cutting back on restaurant expenses and cable TV. The Am Law 100 aren’t ignoring the problem and hoping to ride things out – neither should you.