This is my eightieth column as Anonymous Partner, and the last one that will appear weekly on these pages. I may, on occasion, comment on important pieces that Lat does regarding Biglaw. Based on the things I saw and heard over the last two years, whether at my firm or through people sharing information with me through this column, there will be no lack of Biglaw-related developments to comment on.
So much of the truth about what is going in Biglaw remains hidden, partly by the design of firm management teams and partly by the tendency of those who work in Biglaw to keep quiet. Above the Law adds some transparency, but there’s only so much that it can do. I consider myself fortunate to have had the opportunity to give my take on what being a Biglaw partner means today. I wish I had company, as an industry in change really needs all of those with a stake in its future to speak up….
As discussed last week, I agreed to answer some questions from Professor Bill Henderson of Indiana University’s Maurer School of law in exchange for his kind agreement to be interviewed (parts 1 and 2 of that interview available here and here) for this column. This week, I conclude our exchange by answering his final three questions. In so doing, another year of writing for ATL will come to a close, and I wanted to take the opportunity to thank everyone who interacts with this column, whether as reader, commenter, interview subject, or editor. May 2014 be a year of success, health, and growth for us all.
BH: You have chided your fellow lawyers to give back to the next generation of lawyers. I certainly agree. However, between moral exhortation to do the right thing, or changing incentives within law firms, where should we focus our efforts?
For the past twoweeks, readers of this column have benefited from the insights of Professor William (Bill) Henderson of Indiana University’s Maurer School of Law regarding the current state of Biglaw. When Professor Henderson kindly acceded to being interviewed, he made a request that was both unexpected and welcome: he asked that I commit to answering a number of his questions in return.
I agreed and am pleased to present our exchange. I found his questions probing, and I have tried to answer them from a broad perspective, despite the fact that they call for some personal viewpoints that are by their nature unique to my outlook and experiences. I have answered the questions in the order presented, and have not altered them in any way. Now, I get my turn in the interviewee’s chair….
Last week, part 1 of my written interview with Professor William (Bill) Henderson of Indiana University’s Maurer School of Law was published here. Again, I’d like to thank Professor Henderson for agreeing to this interview and for all the important work he is carrying out. As with my prior interviews, the commentary below Professor Henderson’s answers is mine alone.
AP: What current Biglaw practice do you find most disturbing?
One of the most important voices in the academic legal community, particularly on the topic of the business of law, and Biglaw in general, is Professor William (Bill) Henderson of Indiana University’s Maurer School of Law. I personally have long admired his work, and I was very pleased when he reached out to me after he had read my column on Biglaw’s “sticky seniors” problem.
At that point, I asked him if he was willing to do a written interview, and he graciously agreed, on the condition that he later have the opportunity to ask me questions. I look forward to doing so, and in the meantime I hope you find his answers to my questions as informative as I did. I’d like to thank Professor Henderson for agreeing to this interview, and for all the important work he is carrying out. As with my prior interviews, the commentary below Professor Henderson’s answers is mine alone.
AP: You got in touch with me regarding my column on Biglaw’s issues with senior partners. What are your thoughts on the issue?
The Biglaw year has a rhythm to it. As we approach Thanksgiving, there is an opportunity for each and everyone in Biglaw to take stock. Doing so is important, especially if one falls prey to the peculiar attempts by many to imbue meaning into Thanksgiving by “giving thanks,” before stuffing themselves into a stupor (followed by a six-hour-long “nap” on a relative’s couch and a frantic post-nap drive to some big-chain parking lot for the priceless opportunity to join the unwashed masses in a frenzied dash to save ten percent on the gadget du jour — if that is how people have their holiday fun, more power to them).
If you are going to make giving thanks a holiday focal point, at least do so mindfully. If you are still employed in Biglaw, you have a lot to think about.
If the events of this past year proved anything, it is that the change in Biglaw is irrevocable. In 2008, everyone suffered, driven by economic events bigger than the industry. In contrast, this year proved definitively that there are Biglaw firms that are winners, and getting stronger. But that list of firms is short. Most Biglaw firms are being challenged, and the responses they adopt to confront those challenges continues to be varied. Whether your firm is itching to merge at all costs, or continuing to whistle along as if nothing has changed (while frantically making moves under the radar to avoid giving even a whiff of being challenged), every Biglaw firm has wittingly or unwittingly decided on a future course. At a minimum, Biglaw lawyers should do the same on a personal level, with the understanding that for the great majority of Biglaw attorneys, career changes are more likely than career stability nowadays.
Checklists are helpful for assessing performance and ensuring that important considerations are not overlooked. While everyone’s personal checklist (or questionnaire, if you prefer) may look different, there are at least three categories that should be addressed on any Biglaw attorney’s year-end self-review: financial, professional, and personal. First, the financial….
The year-end Biglaw management machine is starting to grind into motion. The compensation committee is starting to look at the numbers for individual partners — to decide who will be rewarded and who will be de-equitized. And the firm’s A/R collections crew is starting to pressure the partnership to get bills out the door and talk to clients about what will be paid by year’s end. The associate bonus committee? If one still exists, is must be having a hard time reserving conference room space to meet.
The end of the year is a serious time for law firms. For many individual lawyers in Biglaw, it is the time of year when their die may be cast, in terms of compensation, lateral movement options, or even their continued employment. As anyone who follows Biglaw knows, we are living in interesting times, with many firms navigating choppy seas in terms of client demand, financial performance, and expense management. And at many firms, there has never been a wider gulf between the rank-and-file partner and firm management when it comes to the ability to make or influence decisions about the firm. Partners at many firms are often clueless about what the firm is doing and why, to the extent that partners are asked to vote on lateral candidates or even mergers based solely on the “reassurances” and “enthusiastic outlook” of management.
The net effect of this divide between management and the partnership? An increasing sense among partners that they are simply assets of legal “brands” rather than owners or even stewards of a professional enterprise. For many, it is a bit of a hopeless feeling, especially when they consider the Biglaw options down the street, which usually present the same level of management opacity to the putative “owners” as their current firm. But just because management likes to tell the partnership to “leave the managing to us, you just focus on building your practice” does not mean partners aren’t entitled to information — even if it’s just the personal views of the managing partner on certain issues.
Here are five questions for your managing partner. The topics are varied, but the answers given should give partners a good sense of both their relative standing within their firms and the values that drive the business decisions of their leadership….
As we have discussed the past twoweeks, Biglaw business development is not easy. The available flavors at the Biglaw business development ice cream stand are hardest (cold calls), harder (intra-firm networking and beauty contests), and plain old hard. As in turning referrals and unsolicited contacts from prospective clients into engagements. That is hard to do, but nowhere near as difficult as trying to land the matter when the prospective client has not invested in contacting you beforehand, or at least heard about you from a source that they trust. There is a reason rainmakers take the largest share of the Biglaw pie, even at white-shoe lockstep firms.
Getting other lawyers to refer you matters, even from within your own firm, is hard. The foundation one needs to generate referrals is the exact same one that is required to have success generating business through other methods. But there is an extra ingredient, or at least a greater emphasis on a particular ingredient, that needs to be there if you hope to get referrals. That ingredient? Let’s call it likability. No matter how skilled a lawyer you are, or how hallowed your reputation, you simply must be likable in order to generate referrals. Of course, the definition of likability becomes quite a bit more expansive when applied to lawyers considered at the top of their fields. Simply put, the person referring you has to feel good about making the referral, and they are much more likely to feel good if they consider you an agreeable person, at least to do business with.
Unsurprisingly, the definition of likability in the Biglaw context is quite different from the standards we normally apply when talking about the real world. For those who like analogies, consider that Biglaw likability is to indisputable real-world likability as Biglaw “hot” is to indisputable real-world hotness….
Last week we discussed the high-risk, high-reward approach of making cold calls to develop business. Because of the low percentage of success even the most personable and sales-skilled Biglaw lawyers have when adopting that approach, any business development effort that relies on cold-calling exclusively is almost impossible to sustain in a Biglaw setting. And there is a valid argument that one does not really need Biglaw if they are able to establish a strong track record developing business through cold calls. In fact, the successful legal “cold-caller” would likely thrive without the artificial constraints the Biglaw business model (e.g., rates, types of matters) places on its partners. Again though, it is the rare Biglaw attorney who generates a single matter via a “cold call” (or a single new client for their firm actually), and rarer still to find one capable of doing it with enough regularity as to sustain a Biglaw career.
So while trying a cold call on occasion is an important element of a comprehensive business development approach, you need to “work” the resources of your firm to try and generate business. That means selling yourself to existing firm clients, participating in client pitches for new business that are generated by the firm, and making a good impression on your colleagues. The latter is important, because you never know which of your colleagues will go in-house and be in a position to give you work down the road. In many ways, trying to use your firm’s resources for business development is the traditional Biglaw approach to business development. As the contracting ranks of Biglaw equity partners suggest, it is a hard way of generating business — and getting harder…
Following the lead of Kilpatrick Stockton, Orrick, and other Biglaw firms, Greenberg Traurig has created some new non-partnership-track attorney positions. They pay less than traditional partnership-track — or, in GT parlance, shareholder-track — positions, but the billable-hour requirements are lower and the training is better.
What do these positions look like? Let’s find out….
Ed. note: The Asia Chronicles column is authored by Kinney Recruiting. Kinney has made more placements of U.S. associates, counsels and partners in Asia than any other recruiting firm in each of the past six years. You can reach them by email: [email protected].
Since late last year, things have been booming in Hong Kong / China in cap markets, especially Hong Kong IPOs. M&A deal flow has recently been getting a bit stronger as well. Although one can’t predict such things with any certainty, all signs are pointing to a banner entire 2014 for the top end US corporate and cap markets practices in Hong Kong / China. This is not really new news, as its been the feeling most in the market have had for a few months now and things continue to look good.
The head of our Asia practice, Evan Jowers, has been in Hong Kong for about 10 days a month (with trips every other month to both Shanghai and Bejing) for the past 7 months (Robert Kinney and Evan Jowers will be in Hong Kong again March 15 to 23), and spending most of his time there meeting with senior US hiring partners at just about all the major US and UK firms there, as well as prospective candidates at all associate levels and partner levels, and when in the US, Evan works Asia hours and is regularly on the phone with such persons, as our the other members of our Asia team. Our Yuliya Vinokurova is in Hong Kong every other month and Robert is there about 5 times a year as well. While we have a solid Asia team of recruiters, Evan Jowers will spend at least some time with all of our candidates for Asia position. We have had long standing relationships, and good friendships in some cases, with hiring partners and other senior US partners in Asia for 8 years now.
Are you challenged by the costs and logistics of maintaining your office, distracting you from the practice of law?
Many small firms are successfully moving part—or even all—of their practice to a virtual setting. This even includes multi-jurisdictional practice spanning several states and practice areas, although solo and small partnerships are still the largest adopters of virtual law.
Can you do the same? The new article Mobile in Practice, Virtual by Design from author Jared Correia, Esq., explores how mobile technology bring real-life benefits to a small law firm. Read this new article—the next in Thomson Reuters’ Independent Thinking series for small firms—to explore how a mobile practice:
Everyone is talking about the importance of Social Media in Corporate America. But it is relatively safe to say that most law firms and lawyers are slightly behind the social curve. Most lawyers, at minimum, use LinkedIn, for networking. Some even use Twitter for pushing out short, pithy content, while many have Blogs, where they write their little hearts out. The adage “it is better to give than to receive” is not always true though in the world of Social. In the Social World – it is best to listen, give back and engage.
Social Media is a communications tool that can deeply educate you about the needs and wants of your clients and prospects when used in conjunction social media monitoring and sharing tools.
Take this quick quiz and see if you know how to use Social to help you engage more with your clients or to better service the ones you have.