I guess Lexington, Massachusetts, wasn’t quite desperate enough to offer a big firm a better deal.
Last month we told you that Biglaw firms have encountered success in putting offices in small cities staffed with non-partner track associates and back office personnel.
The trend now continues with Bingham McCutchen’s announcement that they are opening a “Global Services Center” in Lexington, Kentucky. The center will eventually house 250 employees who will handle administrative support functions for the firm. Some current Bingham employees will be given the option of relocating from Boston to Lexington.
Hmm… this reminds me of another person who went from Kentucky to Boston and then back to Kentucky. “Newbury Street isn’t walking through that door, Bingham staffers. Quincy Market isn’t walking through that door, and Fenway Park isn’t walking through that door. And if they did, you’d still be living in Lexington freaking Kentucky.”
Oh, I kid. In all seriousness, though, and from the firm’s perspective, in-sourcing is clearly the way to go…
One lawyer offers to represent you for $1000 an hour. Another lawyer offers to represent you for $400 an hour. Who’s more expensive?
The correct answer is: You don’t know.
You don’t know for three reasons. First, some $1000-an-hour guys are remarkably specialized.
The efficiencies triggered by specialization are obvious: If I need a lawyer to call the local real estate office and cause my form to be moved from the bottom of the pile to the top, there may be only one person in town who can make that call. He charges $1000 an hour; I buy a half hour of his time; I get off cheap. The $400-an-hour guy can assign a troop of $150-an-hour associates to research local real estate procedures until the cows come home, but that firm is not going to be cheap.
Specialization can yield efficiencies for other reasons, too. If I have a question about a particularly obscure subsection of some obscure law, there may be two ways to get an answer: (1) Call the $1000-an-hour lawyer whose entire practice is devoted to subsection VI(B)(2)(a)(iii) of the Obscurity Code, and have him respond in two hours with an answer, or (2) Have the $400-an-hour lawyer try to figure out the answer from scratch. Who do you suppose is cheaper?
But specialization is the easy case. $1000-an-hour guys can be inexpensive for other reasons, too….
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.