More than 80 percent of the city was destroyed while some 3,000 people lost their lives, and around 250,000 people were left homeless. The tragedy eventually led to the establishment of modern building codes across California that required structures to be made from materials such as reinforced concrete and structural steel.

The aftermath in San Francisco reminds us that seismic shifts can take on many forms. Sudden movements in, say, government regulation, can also rattle institutions and organizations, causing major damage.

Take professional services providers such as law firms. Disruptive advances in technology, security risks, domestic and international politics, economic uncertainty, and deglobalization can shake even the largest and most profitable law firm to its core, impacting operations, market position, and profitability.

For example, few could have predicted the collapse of Heller Ehrman in 2008, an international firm with more than 700 attorneys at its peak. The collapse occurred after its banking and real estate clients sharply cut back on legal spending during the global financial crisis. That in turn led to a wave of partner defections, leaving the firm unable to meet its financial obligations. What happened to Heller Ehrman remains a cautionary tale of what can happen when the ground shifts beneath our feet.

To withstand industry jolts, law firms might learn from Heller Ehrman and others. In the same way skyscrapers can now bend and sway without crumbling, law firms need to gird themselves against sudden tremors. Demonstrating agility in response to emerging legal and market challenges can not only safeguard long-term viability of firms but also generate profitable revenue streams through new practice areas, client segments and fee arrangements. At the same time, firms will be better positioned to meet the changing needs of their clients, who are also vulnerable to technological disruption and political and economic instability.

Take the challenges presented by artificial intelligence, for example. The development of AI has meant tasks traditionally performed by junior lawyers and paralegals, such as legal research, contract review, and document analysis can now be automated. This shift can reduce billable hours and lower profitability, challenging the sustainability of traditional business models. Additionally, law firms now compete with AI-enabled in-house legal departments, that have access to cheaper, faster, more efficient ways of doing business and keeping work in-house.

Firms that fail to quickly adapt to the new reality risk losing relevance in a market that increasingly values speed, cost efficiency, outcomes, transparency and innovation.

But how can law firms that are famously risk averse and resistant to change meet the demands of an increasingly more challenging business landscape, where disruption and uncertainty seem to have become the new normal?

For one, they can start by seriously investing in operational excellence, innovation, technology, and change management to improve efficiency, reduce costs, and better serve their clients. In the case of AI, by training lawyers to work alongside AI systems, focusing human capital on high-value strategic work that requires real world experience and judgment, firms can continue delivering value and gain a competitive edge.

Firms can diversify their services and revenue models, moving beyond the traditional billable hour, leveraging alternative fee arrangements and value-based pricing to enhance and safeguard profitability. Embracing a growth mindset and a culture of continuous learning, where lawyers are trained not just in law, but in technology, business, and leadership, essentially serving as their clients’ strategic business advisors, can help firms stay one step ahead of the competition.

Additionally, they can prioritize collaboration as a strategic imperative while proactively adopting risk management, enabling them to respond quickly to changes in regulation and the global economy. By being attuned to the needs of their clients, using data to inform and influence strategy, and by taking key learnings from other industries, law firms can turn disruption into opportunity.

Just as San Francisco dusted itself off and built back better, so can law firms when faced with the challenges of tomorrow. The tectonic movements being encountered by the legal industry can be navigated through resilience planning and strategic micro-adjustments, while maintaining the big vision and having the courage to learn from prior mistakes and adapt quickly.

Being prisoners to how things used to be done will not serve us in the world that is continuing to change.