For two good reasons: First, Lat asked me to write about life as an in-house lawyer or, at a minimum, an in-house lawyer’s perception of outside firms. If I wrote about politics, I’d be way off the mark. Second, I work at the world’s leading insurance broker for law firms. If I wrote about politics — no matter which side I took — I’d offend half my readers. Some of those offended readers would complain to their brokers, and I’d soon have a phalanx of brokers with pitchforks storming my office door.
But I’m throwing caution (and Lat’s instructions about topicality) to the wind today, and I’m posing a question that struck me recently: Set your mind back to 1983, the year in which I graduated from law school. Suppose, in 1983, someone posed this question to you:
Look into the future. When will each of these events occur? (1) We’ll elect an African-American President of the United States; (2) states will begin legalizing gay marriage; and (3) states will begin legalizing the use of marijuana. Which will occur first, second, and third, and in what years?
Years ago, I heard the frustrated 60-year-old head of an IP department at a big firm complain: “Aren’t there any other IP lawyers at this firm? Why do I have to decide everything?”
The problem, of course, was that his subordinates were on the wrong end of the pushmi-pullyu: They were pulling the senior guy back instead of pushing him forward. My sense is that the average lawyer, either at a firm or in-house, suffers from the same affliction: The average lawyer stands at the . . . er . . . back mouth of the beast.
I recently published a self-assessment test to help you learn whether you were a bad litigator. I’ve cleverly designed another self-assessment test, this one to gauge whether you advance the cause or obstruct it when you work on a legal matter. Here’s the test:
Look at the last email that you sent reporting on a legal development and seeking guidance on the next step forward. How does that email end? For many of you, the last sentence includes one of these two phrases, which prove that you stand at the pullyu end of the beast . . .
But I’m really thinking about business development and, as I often do in my navel-gazing columns, simply using myself as a case study.
I graduated from law school in 1983 and published my first article (in California Lawyer) in 1986. (I’d provide a link to the article, but I’m afraid the internet didn’t exist way back when. The article was a thriller, though; trust me: “Reviewing the Unreviewable: Obtaining Appellate Review of Federal Trial Court Remand Orders.”)
Because I was a young man, I was quick to hope: I’d published an article! My phone would naturally start ringing off the hook within the next few weeks! I’d be deploying my novel thesis in cases left and right, and the partners at my firm would be dumbstruck by my ability to develop business! Life of Riley, here I come!
Because I was quick to hope, I was easily deceived: Publishing one short article — even an article with a pretty decent thesis in a journal with a fairly large circulation — does not generate new business.
I worked at law firms for 25 years. I observed many things and heard many others.
Now I work in-house, and I have to select counsel to represent me.
If I saw you in action (or heard about your reputation) back then, will I hire you now?
It’s obvious how you could have impressed me: You could have put the client’s interests first, and you could have been breathtakingly good when analyzing issues, negotiating settlements, preparing briefs, or appearing in court.
But what could I have seen or heard that forever removed you from my subconscious “approved” list? What are the deadly sins?
I am. (Hey, no one forces you to read this stuff.)
But to what end do I mix apples and wheelbarrows?
I live on the Elysian plain of in-house life: Freed of the demands of generating business; able to foist tedium off on the sad sacks who work at law firms; thinking strategically about the most significant issues facing the company; permitted (indeed, required) to work closely with a business. “‘Tis a consummation devoutly to be wished.”
But there are occasional drawbacks to working in-house, and I try to share those with the world when I notice them. Three recently came to my attention. . . .
Although Am Law and ATL covered the story first, the long spread in The New York Times alerted the whole world to the woes of Gregory Owens, a former Dewey partner who’s now a bankrupt non-equity partner at White & Case.
The legal blogosphere naturally lit up over this story, with Scott Greenfield dispensing his usual simple justice and the Volokh Conspirators (and their many commenters) debating Owens’ personal and professional worth.
But my emailbox filled up, too, with assorted reactions from people at all levels in the law. The most interesting rant — and the one I’m sharing with you today — came from a person who looks a lot like Owens; he or she is a non-equity partner at a Vault 50 firm who’s in his or her 50s. This person disagrees violently with the conventional wisdom about non-equity partners. My correspondent sings their praises and insists that both law firms and many law firm consultants terribly misjudge the value that non-equity partners provide to their firms. . . .
I’ve just celebrated my fourth anniversary working in-house, and I’m now officially out of touch with law firm life.
I thought I knew all the law-firm-partnership tricks. For example, when law students ask at interviews what percentage of firm partners hold equity status, some firms answer: “At this firm, all partners are partners.” That’s true, of course, but tautological; it says nothing about the equity and non-equity ranks.
On the other hand, this non-responsive answer serves a useful purpose. It may help to convince law students (or lateral associates) that they have a real chance at making partner at the firm, even though the equity partnership ranks are tiny and getting thinner every day.
But I recently learned about a new game that law firms play. This one is aimed not at deceiving law students or lateral associates, but rather the granddaddy of law firm rankings: The American Lawyer’s profits per partner calculation.
I thought I knew all the ways law firms could try to mislead The American Lawyer. There’s the possibility of outright lying, of course, and then there’s using funky methodologies that inflate profits per partner from $1 million to $1.8 million for the year 2011. But there’s a new game in town. It may well be widespread, but I heard about it only recently….
It turns out that it’s also the key to giving great speeches.
And to making great pitches for new business.
And to impressing clients, and your boss, and anyone else who matters to you.
Now that I think about it, it’s not a bad guide to planning your business development activities, ginning up theses for your articles, and plotting your blog posts. It would be a great way to design your firm’s website, too.
Eureka! The key to all professional success on earth!
This is my first column of 2014, so I’m due to join the ranks of those who make predictions for the coming year.
But my predictions will be slightly different from others, because mine will be based on fact.
In the last months of 2013, I heard that two different law firms had reduced partners’ draws to offset the firms’ poor financial performance. At least one of the firms reduced draws retroactively — announcing near the end of the year that partners’ salaries would be reduced as of January 1, 2013 (which slices partners’ incomes dramatically in the last few months of the year). Both firms shared the pain among all partners — folks suffered in the equity and non-equity ranks alike. (This is a particularly nasty trick to play on income partners: “Here’s your partnership deal: If the firm does better than expected, you’re a mere income partner; of course you will not share the wealth. On the other hand, if the firm performs worse than expected, we’ll permit you to share the pain, and we’ll cut your pay. Here’s the partnership agreement! Sign right here on the dotted line!”)
I’ve now been in-house for four years, and my ear has lifted pretty far from the law-firm ground: If I heard about two law firms suffering from such terribly bad years that they were forced to reduce their budgets as year-end approached, then I’m guessing that many more than two firms suffered this fate. This means that, for many firms, 2013 was not a good year, which leads me to my predictions for 2014 . . . .
As part of a nationwide tour, Above the Law is coming to the great city of Chicago.
Join preeminent law firm management consultant Bruce MacEwen, Katten Muchin Chicago managing partner Gil Sofer, and JPMorgan Chase & Co. assistant general counsel Jason Shaffer for a panel discussion (sponsored by Pangea3) on the evolutionary and market forces bearing down on the law firm business model. Come on by Thursday, November 20, at 6 p.m., for thought-provoking discussion, food, drink, and networking.
Space is limited and there will be no on-site registration, so please RSVP
Average law school debt for graduates of private universities hovered around $122,000 last year. With only 57% of new attorneys actually obtaining real lawyer jobs, recent graduates have a lot to consider when it comes to managing their student loan payments. Thanks to our friends at SoFi, today’s infographic takes a look at student loan debt, including the possible benefits of refinancing for JDs…
Kinney Recruiting’sEvan Jowers is currently in Hong Kong for client meetings and still has a few slots available through October 22. Evan will also be in Hong Kong November 14 to December 15. Further, Robert Kinney has been in Frankfurt and Munich this week and is available for meetings with our Germany based readers.
One of our key law firm clients has referred us to one of their important clients in the US, Europe and China – a leading global technology supplier for the auto industry – in order to handle their search for a new Asia General Counsel and Asia Chief Compliance Officer.
Kinney is exclusively handling this in-house search.
This position will have a lot of responsibility and include supervision of eight attorneys underneath them in the Asia in-house team. The new hire will report directly to the global general counsel and global chief compliance officer, who is based in the US. The new hire’s ability to make judgement calls is going to be as important as their technical skill set background.
The position is based in Shanghai and will deal with the company’s operations all over Asia and also in India, including frequent acquisitions in the region.
It is expected that the new hire will come from a top US firm’s Shanghai, Beijing or Hong Kong offices, currently in a top flight corporate practice at the senior associate, counsel or partner level. Of course, the candidate can be currently in a relevant in-house role.