Here at Above the Law, we appreciate and encourage openness from law firms. Law firms don’t have to make quarterly reports to the SEC. But partners, associates, staff, and prospective law students should have as much information as possible about the firms they work for.

So we honestly applaud Arthur Makadon, chairman of Ballard Spahr. He decided to communicate directly with his associates and partners. In the middle of a recession, Mr. Makadon seems to understand the importance of having open communication. We post the following not to make fun of Ballard Spahr, but to encourage other firms to do the same. Here is how Makadon starts off his firm-wide message:

With the year half over, and with significant changes taking place at Ballard, at other law firms and businesses, and, indeed, at virtually every enterprise throughout the country, you understandably must wonder how we are doing. And so I want to take the opportunity in this quarterly message to provide some perspective on where we stand in 2009 and where we expect to be six months from now, two years from now, and a decade from now. Not that any of us wants to skip ahead to this winter; at least here in the East, after sloshing through an unusually rainy spring and enduring a gray and rainy June, we are still waiting to see some consistent sunshine and feel the warmth (and in my case humidity) of summer.

This email is going to be great. More from it, after the jump.

Mr. Makadon addresses the terrible economy head on:

We all know that 2009 is an extraordinary year. The country’s treacherous economic climate requires every organization to make material changes and to continue to fine-tune its strategy. Thus, we have been extraordinarily busy. And in a firm as widespread and diverse as ours, there is no one-size-fits-all approach. It is department by department, office by office, practice group by practice group, person by person. At the same time, we are pursuing cost savings vigorously. Thus, like everyone else, we have faced exceedingly difficult choices in restructuring compensation, deferring incoming associates, paring staff positions, and shortening the summer program. We fully appreciate that these changes were a jolt to those affected, and I deeply regret that. But to pretend that the world has not changed and, therefore, to take no action, would have been unthinkable, irresponsible, and, ultimately, highly counter-productive. So, in order to move forward, we took the steps that we believed were necessary in as fair a manner as possible. And anyone who expects that we will return to old ways when the economy improves (and it will) has failed to appreciate the profound shift that is taking place in the world. We will certainly get to a place that is much more comfortable than today, but the lessons of 2008-2009 will influence our decision-making for a long time to come.

There really isn’t a managing partner on earth that isn’t thinking this way. Of course, “fair” is in the eye of the beholder. We’ll see how the associate and staff compensation cuts match up with the partner compensation cuts soon enough. But our partner readers know that their ability to make money is also important to the long-term viability of the firm.

But Makadon does thank his employees. And it certainly sounds like heartfelt appreciation:

The story of the first six months of 2009, then, is one of difficult decisions, fiscal discipline, shifting priorities, attention to business development, a lot of hard work, and, most important, the unequivocal loyalty and dedication of our people - staff and professionals. At times like these, people show their true character, and it is reassuring to see that we have so many people of real character. They deal with their anxieties, keep their outlook positive, and do everything in their power to encourage others to do likewise, because only with that frame of mind can we continue to be successful and continue to enjoy what we do. (It is more difficult when an enterprise has both success and enjoyment as goals.) We know that in rebalancing our workforce, we have placed a greater burden on many of you and you have handled it with grace and professionalism. You continue to work cooperatively, think imaginatively, and, in big ways and small, contribute to the economic well-being of Ballard. Many thanks!

Obviously, this message isn’t intended for the people who have been “rebalanced.” But for the soldiers still standing, that is a pretty nice thank you.

The rest of the message is more of a standard “all is well” list of the positive things that are happening at Ballard Spahr. We’ve heard a lot of that language from other firms.

But at the end of his message, Makadon makes a point of talking about positive press the firm has received:

[T]his morning brought good news from, of all places, the American Lawyer. Although I am not a fan of the American Lawyer, I appreciate its impact. Thus, we should tout the good because our competitors sure love to elaborate, to the nth degree, on the not-so-good. (These so-called competitors will be the subject of a separate memorandum soon.) Today we were named among the top 50 law firms for pro bono efforts. This endorsement would not have taken place without Mary Gay Scanlon as our executive director of pro bono and without the grit and determination of so many of our professionals and staff. (One such story, about associate Amy Shellhammer’s efforts, can be read by clicking here.) I wrote Mary Gay a note thanking her and asking that we step up our effort and move into the top 20 this year - yes, 2009. For the rest of us, a similar message. Let’s get to the AmLaw top 50. We should be tired of hovering between 90 and 100.

Brilliant! Law students are not the only people that are obsessed with rankings. And cutting associate and staff salaries is certainly one way to keep revenue and profits per partner high, two factors that influence the firm’s rankings. Honesty is awesome.

We wish Ballard Spahr the best of luck in their drive towards the Am Law top 50.

Read the full memo below. There is a lot of excellent communication about partner departures in there as well.

BALLARD SPAHR — MEMORANDUM — STATE OF THE FIRM

Dear Colleagues,

With the year half over, and with significant changes taking place at Ballard, at other law firms and businesses, and, indeed, at virtually every enterprise throughout the country, you understandably must wonder how we are doing. And so I want to take the opportunity in this quarterly message to provide some perspective on where we stand in 2009 and where we expect to be six months from now, two years from now, and a decade from now. Not that any of us wants to skip ahead to this winter; at least here in the East, after sloshing through an unusually rainy spring and enduring a gray and rainy June, we are still waiting to see some consistent sunshine and feel the warmth (and in my case humidity) of summer. Business, though, demands that we look toward year-end and the goals we have set.

But before turning to this business, let me start by saying that it is never easy to say goodbye to a partner, even when we part as friends and fully intend to continue our professional association, as is the case with Ben Levin and three other New Jersey partners. Ben, Rich Hluchan, Bill Hyland, and Mark Shapiro are forming their own practice with a number of senior counsel and associates, and returning to the “simpler life” of a small firm. We wish them every success, and on a personal note, I will very much miss a friend in Ben. Steve Suflas, our New Jersey managing partner, has an office full of deep talent and vitality with which to continue to advance our profile and productivity, and he and our New Jersey office have our full and unequivocal support. Just watch how they continue to flourish, and watch us grow into the most sought-after firm in New Jersey.

Now, to business. We all know that 2009 is an extraordinary year. The country’s treacherous economic climate requires every organization to make material changes and to continue to fine-tune its strategy. Thus, we have been extraordinarily busy. And in a firm as widespread and diverse as ours, there is no one-size-fits-all approach. It is department by department, office by office, practice group by practice group, person by person. At the same time, we are pursuing cost savings vigorously. Thus, like everyone else, we have faced exceedingly difficult choices in restructuring compensation, deferring incoming associates, paring staff positions, and shortening the summer program. We fully appreciate that these changes were a jolt to those affected, and I deeply regret that. But to pretend that the world has not changed and, therefore, to take no action, would have been unthinkable, irresponsible, and, ultimately, highly counter-productive. So, in order to move forward, we took the steps that we believed were necessary in as fair a manner as possible. And anyone who expects that we will return to old ways when the economy improves (and it will) has failed to appreciate the profound shift that is taking place in the world. We will certainly get to a place that is much more comfortable than today, but the lessons of 2008-2009 will influence our decision-making for a long time to come.

The story of the first six months of 2009, then, is one of difficult decisions, fiscal discipline, shifting priorities, attention to business development, a lot of hard work, and, most important, the unequivocal loyalty and dedication of our people - staff and professionals. At times like these, people show their true character, and it is reassuring to see that we have so many people of real character. They deal with their anxieties, keep their outlook positive, and do everything in their power to encourage others to do likewise, because only with that frame of mind can we continue to be successful and continue to enjoy what we do. (It is more difficult when an enterprise has both success and enjoyment as goals.) We know that in rebalancing our workforce, we have placed a greater burden on many of you and you have handled it with grace and professionalism. You continue to work cooperatively, think imaginatively, and, in big ways and small, contribute to the economic well-being of Ballard. Many thanks!

Despite the challenges of the first half of the year, and the complicated decisions we faced, we did things - big and small - that should make us proud. One I will never forget is the Board discussion on whether our budget for legal services to the indigent should remain 100 percent intact for 2009. I lost my way for a while on this issue and found myself recommending that we cut the budget and/or defer legal services spending until we had a better idea of how the year would turn out. But, driving home from the Board Dinner the night of the discussion, I thought what a mistake it would be to approach our obligation to the indigent in that way, asked the Board to revisit the issue, and reinstated the budget at 100 percent. Whatever insecurity we might feel internally as a result of the economic crisis is magnified many times for the truly needy in the regions in which we have offices.

As for the remainder of 2009, we have many reasons to be hopeful. In sum, the answer to the question, “Will we be OK?”, is unequivocally, “Yes.” But that “yes” means that each of us needs to pursue our firm goals diligently and with a sense of urgency. In this regard, I would note that the Litigation Department, for the first time in a while, is operating over budget (and with the influx of new matters, will continue to do so); the Real Estate Department has had terrific initial success with its Distressed Real Estate Initiative and there is much promise there; Business & Finance is targeting new clients and going after them with a vigor I have not seen before; Intellectual Property is beginning to see success from cross-marketing efforts; and Public Finance is definitely on the upswing. On a more individual basis, a number of partners are engaged far beyond capacity - indeed, beyond any other year - and the trickle-down effect is healthy and palpable. I would encourage others to follow their example. In essence, I think the environment is far more positive than last fall or even two or three months ago.

In this message, I also want to address a concern that some of you might feel whenever you hear that a partner is leaving. It is natural at Ballard (but not at many other firms where there is far more frequent movement amongst partners) to wonder why a partner leaves and to be curious about what it means for the firm. Lawyers leave for a variety of reasons. They might have a client conflict that can only be resolved by changing firms. They and the firm might jointly agree that they can no longer achieve what is expected of them. They might have an opportunity that is simply too good to pass up. Whatever the reason, partner departures happen and you should not make any assumptions without knowing more about the circumstances.

I have been urged from time to time to communicate directly about the reasons for partner withdrawals. I have been (and will remain) ill-disposed to do that. As I said, partners leave for a variety of reasons and I do not want to single out the partners who have been asked to find a position elsewhere. I appreciate that such explanation might answer some of your short-term questions, and put an end to unproductive speculation, but I know that there are partners in leadership positions with whom you can speak privately who know the truth and will ­­­share it with you. I am sure you understand this sensitive point and its ramifications.

I also want to caution you against falling prey to rumors. It takes no more than one misguided individual communicating misinformation to cause limitless distractions - internally and externally. Internally, rumors cause needless anxiety; externally, they cause havoc by creating a “frenzy” among headhunters and other firms seeking to gain an advantage based on misinformation that seeps out. My position requires that I keep Ballard moving ahead, but not by withholding information from you or by “spinning” the media to paint an undue rosy picture. So if you hear information that is contrary to the information provided by the firm, you should at least question the contrary information and the motive of the person providing it. I am at the top of the proverbial food chain and have no axe to grind, am not running for anything, and have no reason at all not to see that you have the best and most thorough understanding possible, because, among other things, you must have that level of comfort to have confidence in the management of the firm. So if you have a question and cannot get a satisfactory response, please ask me. If I do not have the answer, I will see that you get it.

Today we welcome our newly elected Board members - John Langel, Ray Truitt, and Blake Wade - for three-year terms and we look forward to the contribution they will make. I want to thank Tom Eshelman for his thoughtful and diligent service as a member of the elected Board and for the incredible contribution he has made and will continue to make in his role as our Financial Partner. I also want to thank Brian Doerner for his exceptional service as a member of the elected Board and for the Herculean job he is and has been doing as head of our Business & Finance Department. This also is a day of transition for seven terrific lawyers who today become partners, having been voted into the partnership at the Partners Meeting in April. We are delighted to welcome Jim Cooke (Washington), Patrick Gillard (Philadelphia), Bill Kennedy (Philadelphia), Randy Larsen (Salt Lake City), Michele Bax (Phoenix), Paul Lantieri (Philadelphia), and Jason Leckerman (Philadelphia).

I am sure that many of you are eager to know when we will introduce our new identity and Web site. The answer is, September 8. There is much painstaking work to be done, but [Redacted] says we are getting close. Only when I hear [Redacted] talk about all the people working toward the conversion do I begin to grasp what a monumental task it is. Countless online, electronic, and hard-copy files and other materials are being redone through the efforts of Marketing, Information Services, ARC, Office Services, and Accounting. The Office Administrators and many others throughout the firm are playing an invaluable role.

[Redacted] unveiled the Web site and firm materials at the Firm Seminar. The predominant color is yellow and the look is vibrant. For some, I am sure it will take some getting used to. Others cannot wait to say goodbye to the pyramids (in haphazard colors) and the mishmash of styles that has grown out of control over the years. I have had a chance, as the site is constructed, to look at many of the pages. My favorites are the lawyer bio pages. They have personality - not to mention outstanding photographs. [Redacted] plans a presentation to the staff as well. I ask for your support as we cover the final, grueling few miles of this ultra-marathon.

Another conversion, far less visible to the outside world but absolutely integral to our work product, is largely complete. Replacing our old document management system with FileSite was a massive undertaking, and not without frustration - nothing of this magnitude ever is - but the conversion was accomplished with sanity intact (maybe). My thanks to Information Services, including the trainers who had to make sense of the new system for everyone in the firm, and to all the others who played a part.

Our Summer Associates are here and I encourage you to stop in and say hello while they are here. If you are a partner who can offer them an interesting opportunity, please do so.

Today we will present the Alan J. Davis Award during a ceremony at the Philadelphia office at which Alan’s widow, Lyn, will be present. The award, named for our distinguished former colleague, is being given this year to the Wills for Heroes Team, which includes more than 100 of our lawyers and staff from almost every office. Our people have helped to organize and staff events in cities and towns across the country - sometimes in concert with clients - at which we prepare wills and estate-planning documents for police officers, firefighters, and emergency medical technicians. Team members from other offices will join the presentation via videoconference. All deserve applause for their role in this worthy pro bono effort. Special thanks, though, go to associate Dan McKenna. With Dan as our leader, we have helped expand the program to more than 20 states and have produced nearly 2,000 wills for first-responders. At the winners’ request, the $25,000 award will be donated to the Wills for Heroes Foundation.

On this same note, this Message was put to rest yesterday, but this morning brought good news from, of all places, the American Lawyer. Although I am not a fan of the American Lawyer, I appreciate its impact. Thus, we should tout the good because our competitors sure love to elaborate, to the nth degree, on the not-so-good. (These so-called competitors will be the subject of a separate memorandum soon.) Today we were named among the top 50 law firms for pro bono efforts. This endorsement would not have taken place without Mary Gay Scanlon as our executive director of pro bono and without the grit and determination of so many of our professionals and staff. (One such story, about associate Amy Shellhammer’s efforts, can be read by clicking here.) I wrote Mary Gay a note thanking her and asking that we step up our effort and move into the top 20 this year - yes, 2009. For the rest of us, a similar message.

Let’s get to the AmLaw top 50. We should be tired of hovering between 90 and 100.

As always, my thanks.