Fictional depictions of high-powered executives and lawyers feature personal assistants with job portfolios more akin to “slave child” than “professional.” Sometimes these assistants are associates, but usually they’re in some other job — like legal secretaries, or whatever Waylon Smithers does. These jobs don’t usually exist in real life. Sure, a partner might ask a paralegal or secretary for a cup of coffee, but they aren’t really so full of themselves as to expect some low-wage employee to peel grapes and fan palm leaves.
Unless you’re this guy, of course. This guy is a partner who wants an employee to “reduce my stress level” by handling every task that he feels is beneath his lofty stature. Behold someone so out of touch with basic decency….
After twenty years of operating my own law firm, I still answer my own phone – much to the pleasant surprise of many of my callers. Though you’d think that having the firm principal pick up would signal a one-person, fly-by-night operation, to the contrary, callers’ ability to get in touch with me directly conveys the impression that I’m an accessible, hands-on kind of lawyer.
Of course, answering the phone works for my practice because frankly, I don’t get all that many calls. Most of my clients and referrals who want to speak with me by phone will typically email me initially to determine a mutually agreeable time for a call. And because my work is so specialized and many cases come via referral, when clients reach my voice mail, they’re not likely to move on to the next lawyer on the list of internet search results. That means if I’m too busy to talk, I can let calls go through to voicemail without fear of losing a piece of business.
But what about lawyers who aren’t in such a position?
“Low overhead is great!” That is one of our sayings. We recite it all the time — yes, even out loud at meetings — as it is a powerful competitive advantage for a law firm. It seems pretty obvious, but if so, why doesn’t everyone get with this concept?
There is a term informally used to describe how overhead impacts a law firm called “Implied Overhead.” The “Implied Overhead” of a law firm is the cost of everything except the lawyers divided by the number of lawyers. So if you have 50 lawyers and the cost of “everything” except the lawyers is $10,000,000, then you have implied overhead of $200,000 per lawyer.
Our Implied Overhead for last year was about $165,000. Anecdotally I believe that Implied Overhead for major law firms averages about $300,000. (I admit I don’t really have this data for sure; it is just what I have heard.) If your firm has 100 lawyers and implied overhead of $200,000 and the average for major law firms is $300,000, then you have a $100,000 per lawyer competitive advantage over your major law firm competition. Multiply that by 100 lawyers and you just made $10,000,000! And this flows right to the bottom line! If there are, say, 30 partners at this firm, then each partner just got a check for $333,333!
Yikes — did I do that math right? Was that $333,333 per partner merely by reducing the implied overhead? I just double checked and $10,000,000 divided by 30 partners does indeed equal $333,333. That’s a sizable number, so maybe you should read the rest of my article….
On our recent post about bonuses at Bingham McCutchen, some commenters complained about our coverage of the firm. Here’s what one said: “What this article fails to mention is that NO ONE made their hours, it’s THAT slow. Good job, ATL, for eating whatever it is Bingham pays you to NOT report [on bad goings-on at the firm].”
Actually, we’re perfectly willing to report on negative developments at Bingham (or any other major law firm). Just email us or text us (646-820-8477), and we’ll investigate.
There’s certainly a lot to cover over at Bingham: tumbling profits, partner departures, and unfortunately timed staff layoffs. We’ve collected some reporting from around the web, which we’ve combined with inside information from ATL tipsters at the firm. Let’s have a look, shall we?
But as it turns out, as reflected in our traffic stats and in various messages sent directly to us, people actually want to learn about methods for staying (or looking) busy while they put in their law-firm face time. Does this mean work is slow? All these unused billable hours don’t bode well for bonus expectations this year.
Anyway, here you go: 7 more ways to kill time while working at a law firm….
Tied up in the office? You might as well make the most of it.
As the old saying goes, time is money. And in the land of law firms, where the billable hour is king, the saying is literally true. The pressure to churn that bill, baby rack up thousands and thousands of hours is one of the toughest aspects of legal practice. It drives lawyers towards drink and away from their families. (See reasons #7 and #8 of the 10 Reasons To Leave Biglaw.)
But what if you have the opposite problem? In some ways, not having enough in terms of billable hours is worse than having too much. If you’re billing, say, 75 hours a month as an associate, you could find yourself in the breadline before too long. (Partners have more leeway, but even they are hungry for hours nowadays.)
If you’re stuck in the office with nothing to do — and this applies not just to lawyers but to support staff, who are getting laid off partly because there’s not enough for them to do — how should you pass the hours? Here are seven suggestions….
These days, despite news of record numbers in terms of gross revenue, it seems we can’t even make it through one week without news of layoffs coming from within Biglaw’s hallowed halls. In fact, last week brought even more lamentable news from large law firms (on top of the double-digit IT outsourcing at one top firm).
Which Biglaw firm is pink-slipping employees en masse in favor of outsourcing this time?
Of all the different Biglaw constituencies, legal secretaries have probably suffered the most in terms of recent layoffs. In this technological age, lawyers do their own typing, don’t give dictation as much, and can use voice-recognition software when they do. Shorthand isn’t as valuable a skill as it used to be.
So what should a legal secretary facing a voluntary buyout or an involuntary layoff do with himself? Assuming he’s not ready to take the money and run (or retire), he should find new employment. And that might require obtaining new skills, ones that are in greater demand in 2013.
Some might tell a displaced legal secretary, “I just want to say one word to you. Just one word. Technology.” If technology taketh away jobs, it can also giveth, right?
Well, not so fast. Even techie types are getting laid off, as the latest layoff news demonstrates….
You’d probably pack up too if you were in this secretary’s shoes.
Voluntary buyouts for support staff are going viral within Biglaw — and that’s a good thing, at least compared to the alternative of layoffs. As we’ve previously observed, “voluntary retirement programs allow employees to self-select, so that employees who are well-situated to enter unemployment can opt in, while employees who need their jobs badly can keep working.”
Whether you should accept or decline your firm’s buyout depends on many factors. What kind of savings or other assets do you have? How generous is the package being offered? Do you have a spouse who still works? Do you have dependents who rely upon your income?
We heard from one retired legal secretary in response to our recent request for volunteers willing to discuss why they took or didn’t take a buyout. You can see why this secretary entered early retirement, due to an enviable financial position and a delicious package….
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 seven years. You can reach them by email: email@example.com.
Things have changed recently in Korea – a few of our US and UK client firms are looking, very selectively, for a lateral US associate hire. Until just recently, there was not much hiring like this going on in Korea, since US and UK firms started opening offices there. We have already placed two US associates in Korea in the past month at top firms. Most of the hiring partners we work with in Korea do not actively work with other recruiters.
If you are a Korean fluent US associate in London, New York or another major US market, 2nd to 6th year, at a top 20 firm, with cap markets or M&A focus (or mix), or project finance background, and you are interested in lateraling to Korea to a top US or UK firm, please feel free to reach out to us at firstname.lastname@example.org or email@example.com. Our head of Asia, Evan Jowers, was just in Korea recently, and Evan and Robert Kinney will be in Korea in a few weeks. We are in the process of helping several firms open new offices in Korea (a number of which are interviewing our partner level candidates) and also helping existing offices there fill openings.
Professor Joel P. Trachtman has developed a unique, practical guide to help lawyers analyze, argue, and write effectively.
The Tools of Argument: How the Best Lawyers Think, Argue, and Win is a highly readable 200-page book, available for about $10 in paperback or e-book. Chapters focus on foundational principles in legal argument: procedure, interpretation of contracts and statutes, use of evidence, and more. The material covered is taught only implicitly in law school. Yet, when up-and-coming attorneys master these straightforward tools, they will think and argue like the best lawyers.
For most attorneys, time spent managing the books is a necessary evil at best. Yet it is undeniably a crucial aspect of running a successful practice. With that in mind, we invite you to view or download a free webinar by Above the Law and our friends at Clio to learn how to better manage your finances.
Take this opportunity to learn what it takes to streamline your accounting and get the most out of your time. The webinar agenda:
● The basics of accounting for lawyers.
● How legal accounting differs from regular accounting.
● Report and reconciliation issues surrounding trust accounts.
● How to pick and integrate the best accounting tools for your practice.
● Steps to prepare your tax return for your firm’s income.
Do not miss this crucial chance to optimize your accounting practices. Save time and get back to billing!