Two weeks ago, I wrote about one of Biglaw’s most pressing issues: the failure of senior partners to pass along clients to younger partners. But that is not the only problem some of Biglaw’s senior partners are causing for their firms and the industry as a whole. Unfortunately, a measurable portion of senior partners, those of the august titles and stratospheric billing rates, are among the worst offenders of one of Biglaw’s most notorious shortcuts to extreme profitability: creative time entry and billing.
While I hate to acknowledge, even though I have seen it firsthand, that partners make up time entries wholesale for work never performed, it is not hard to realize that in this age of the multimillion-dollar partner there exists a tremendous incentive for such behavior. Or at least for partners to “round up” time entries, a tacitly accepted practice within Biglaw.
Incentives matter, and the more richly compensated a senior partner is, the more pressure there is on them to put down a solid four to five hours for “reviewing and revising” a draft brief on Tuesday, only to make a similar entry when they review a more robust version of the same brief a few days later. And because senior partners are frequently responsible for a horde of timekeepers below them, the tone set by the lawyers at the top of the pyramid has an impact on the behavior of those lower on the chain….
Ed. note: This is a new column from a person who didn’t just go from Biglaw to a smaller office, he went from big bad New York City to someplace where they care about the Big Ten network. It’s a different client roster and a different life.
As promised, the topic of this column is the difference in client service when you move to a smaller regional firm. First things first: I see from the comments on my last article that many of you are curious about the clients I represent here in Real America. Apparently it is very hard for some of you to believe that the types of clients that you have on the coasts also exist here in the Midwest. Believe it or not, we have banks! We have real estate investment trusts! We have life-science companies! We have parts manufacturers for any number of industries! We have mortgage servicers! We have large retailers with labor and HR issues!
And because these things exist, they need help from attorneys like us….
Partners versus associates in Biglaw. I am not referring to the annual end-of-summer softball game. This is more serious. Many groups are flat or slow. Even though associates leave firms and get replaced very slowly, or not at all, and even though incoming associate classes have shrunk, Biglaw firms make every effort to keep associates as busy as possible. For one, associates are expensive, with their high salaries and real benefits packages. Plus, it is always easy to generate some make-work for them, particularly when there are not as many around as there used to be.
These efforts are surely welcomed by associates, but at what cost to the firm’s other timekeeping employees — the partners? Does the fact that a partner “got elected,” has the title, signed a partnership agreement, and has money (either their own or a friendly bank’s) in the firm’s capital account mean that he or she should have first dibs on all available work? Put another way, do I have the right to insist that a fellow partner assign me work rather than an associate? Do I need to make sure my fellow partners are all fully busy before I assign some of my hard-earned client matters to them? Assuming that the clients do not care about who services a particular matter (e.g., it is a new client who only cares about the price and not who is providing the service), these are very difficult questions. Unfortunately for many in Biglaw today, they are also timely….
Is the slowdown in Biglaw that we’ve seen since the Great Recession a long-term trend or just a temporary blip? Only time will tell, but in the meantime, the debate rages on. (The latest salvo: New Republic editor Noam Scheiber’s response to critics of his controversial article, The Last Days of Big Law.)
Because of its power, prestige, and profitability, Biglaw gets a big proportion of the media coverage that’s aimed at law firms. But let’s not overlook small firms and solo practitioners, who make up about 70 percent of American lawyers in private practice.
One often hears stories about small firms, especially boutiques formed by ex-Biglaw attorneys, that are thriving. The tales are inspiring; the small-firm lawyers talk about how they enjoy their practice more, have greater autonomy, and make the same or even more money than they did back in Biglaw.
But such information is anecdotal. How are small law firms doing compared to bigger firms on a broader level? A new survey has some answers….
In fairness to DLA Piper, the craziness might not be that high on a per capita basis. DLA Piper is one of the largest law firms in the world. In the most recent Global 100 rankings, DLA took second place in both total revenue and attorney headcount.
Many of the DLA Piper stories are on the lighter side. But this latest one — involving serious allegations of overbilling, apparently supported by internal DLA emails saying things like “churn that bill, baby!” — is no laughing matter….
Over the last three weeks, we have heard from an In-House Insider, an opinionated source of insight into Biglaw-client relations — see here, here, here, and below. As with the three prior installments, the only changes I made to the Insider’s words were those done to protect their identity, and Insider was given the opportunity to revise their points once I added the questions and commentary. Again, I thank Insider for the candid observations and thoughtful opinions on these core issues….
AP: Any serious observer of Biglaw can see that firms continue to struggle adapting associate development to the new state of Biglaw-client relations. What can Biglaw learn from corporate clients like yourself on that front?
Over the last two weeks, we have heard from an In-House Insider, an opinionated source of insight into Biglaw-client relations — see here, here, and below. As with the two prior installments, the only changes I made to the Insider’s words were those done to protect their identity, and Insider was given the opportunity to revise their points once I added the questions and commentary. Again, I thank Insider for the candid observations and thoughtful opinions on these core issues.
AP: How firms are viewed from a value perspective is often very difficult to gauge from the outside. What criteria do you use to determine if a firm is delivering services to your company appropriately from a billing perspective?
Last week I spoke with an In-House Insider, a Biglaw refugee turned in-house counsel. You can see what our Insider has to say about the state of Biglaw and client relations here and below.
As with the initial installment, the only changes I made to the Insider’s words were those done to protect their identity, and the Insider was given the opportunity to revise their points once I added the questions and commentary.
Again, I thank the Insider for the candid observations and thoughtful opinions on these core issues. Now, on to the discussion….
What does 2013 hold for the world of large law firms? Let’s look into our crystal ball.
Actually, scratch that. Making predictions is a tricky business. Sometimes we’re right — like when we predicted robust bonuses out of Cravath, based on their large partner class — but sometimes we’re wrong.
For now, let’s keep our powder dry, and instead check out historical data about hours, billing rates, and corporate legal spending. Can we gain any insight into the future by looking back over the past?
The holiday season is upon us, and yet again, you have no idea what to get for the fickle lawyer in your life. We’re here to help. Even if your bonus check hasn’t arrived yet, any one of the gifts we’ve highlighted here could be a worthy substitute until your employer decides to make it rain.
We’ve got an eclectic selection for you to choose from, so settle in by that stack of documents yet to be reviewed and dig in…
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@example.com.
We currently have a very exciting and rare type of in-house opening in China at one of the world’s leading internet and social media companies. Our client is looking for an IP Transactional / TMT / Licensing attorney with 2 to 6 years experience. The new hire will be based in Shenzhen or Shanghai. Mandarin is not required (deal documentation will be in English) but is preferred. A solid reason to be in China and a commitment to that market is required of course. This new hire will likely be US qualified (but could also be qualified in UK or other jurisdictions) and with experience and training at a top law firm’s IP transactional / TMT practice and could be currently at a law firm or in-house. Qualified candidates currently Asia based, Europe based or US based will be considered. The new hire’s supervisors in this technology transactions in-house team are very well regarded US trained IP transactional lawyers, with substantial experience at Silicon Valley firms. The culture and atmosphere in this in-house group and the company in general is entrepreneurial, team oriented, and the work is cutting edge, even for a cutting edge industry. The upside of being in an important strategic in-house position in this fast growing and world leading internet company is of the “sky is the limit” variety. Its a very exciting place to be in China for a rising IP transactional lawyer in our opinion, for many reasons beyond the basic info we can share here in this ad / post. This is a special A+ opportunity.
If your firm is in ‘go’ mode when it comes to recruiting lateral partners with loyal clients, then take this quiz to see how well you measure up. Keep track of your ‘yes’ and ‘no’ responses.
1. Does your firm have a clearly defined strategy of practice groups that are priorities of growth for your office? Nothing gets done by random chance, but with a clear vision for the future. Identify the top practice areas for which you wish to add lateral partners. Seek input from practice group leaders and get specifics on needs, outcomes, and ideal target profiles.
2. In addition to clarifying your firm’s growth strategy, are you still open to the hire of a partner outside of your plan? I’ve made several placements that fit this category. The partner’s practice was not within the strategic growth plan of my client, but once the two parties started talking with each other, we all saw how it could indeed be a seamless fit. Be open to “Opportunistic Hires.” You never know where your next producing partner might come from, so you have to be open to it. I will be the first to admit that there is a quirky element of randomness in recruiting.
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