Is having your back-office functions handled on-site — i.e., in the same location as the lawyers being serviced — now a luxury? More and more law firms are adopting the model of sending their administrative support functions to lower-cost locations.
Thanks to advances in technology, it’s no longer necessary to have your back office in the same pricey place as your lawyers. And it’s not surprising that firms are going in this direction when you consider the cost savings involved.
Which law firm expects to save millions of dollars a year by sending support staffers to the land o’ lakes?
The current discussion regarding the decision by Dentons not to report its average profits per partner (“PPP”) to the American Lawyer is interesting. While I was at Greenberg Traurig, then-CEO Cesar Alvarez used to have a pithy statement on the whole PPP issue, along the lines of: The only thing partners really care about is “profits per me.” There is a lot of wisdom in that statement. In my experience it is true for existing Biglaw partners, potential laterals, and those (fool?) hardy associates aspiring to partnership.
At the same time, the popularity of the American Lawyer’s various charts and rankings can’t be denied. And PPP is one of the catchier columns on those charts. It is used as a proxy for determining everything from firm prestige, to strength of client relationships, to how well a firm is managed.
Savvy associates can and do use it to determine associate quality of life at a particular firm. Your firm has a blazing PPP and no big contingency windfalls feeding the flames? Good chance you are looking at a never-ending flow of “interesting work,” coupled with the partnership prospects of a diminutive drone buzzing around hoping to get noticed by the queen bee. In contrast, you might enjoy a better lifestyle if employed as associate #614 by a Biglaw 2.0 monolith, but you also run the distinct risk of making partner only to realize that the financial gulf between you and the “real” partners is a broad one….
I was 26 years out of law school before I moved in-house.
In those 26 years, I had never heard of “one-on-ones” (outside of the context of basketball). When I moved to a corporate job, folks were astonished by my ignorance. (A small part of that astonishment had to do with my unfamiliarity with one-on-ones.)
I’ve now been working for four years in what I take to be a typical (indeed, world-class) corporate environment, and I’m ready to declare the truth, thus offending every human resources professional who has ever lived: One-on-ones — individual weekly meetings between managers and each of the people who report to them — are generally unnecessary.
I know, I know: One-on-ones guarantee that the manager knows what’s happening in his or her department. And the meetings let managers give immediate feedback on how members of the team are performing. And there’s nothing like personal conversations to build relationships and esprit de corps.
Major law firms select their leaders in different ways. Some have a committee of partners do the picking, for example, while others have the outgoing leader designate her successor.
Rank-and-file partners often have little to no say in the selection. And, perhaps because the process is frequently run by a small group of people at the top, it doesn’t often come with much public drama. Yes, some firm leadership struggles boast intrigue worthy of Game of Thrones, but it’s generally kept under wraps.
At one prominent law firm, though, the entire partnership selects the managing partner in a firm-wide vote. This year’s election was contested — and not everyone is happy with the results….
* In defense of its PPP metric, the editor-in-chief of the American Lawyer revealed a shocking statistic about Dentons: the firm’s PPP was likely down about 20 percent year over year. [Am Law Daily]
* A judge dismissed many of defunct firm Heller Erhman’s remaining unfinished business claims in the case against its former partners. Dewey know some partners who are thrilled? [WSJ Law Blog]
* From 2012 to 2013, NLJ 350 firms saw the rise of “other” attorneys — staff attorneys, of counsel, and lawyers who were neither associates nor partners. We’re living in lean times. [National Law Journal]
* “No one predicted there would be this kind of huge drop in applications.” Apparently law school deans thought prospective students would be thrilled about their lack of job prospects. [Hartford Business Journal]
* Shelly Sterling has asked a judge to rule that she can sell the Los Angeles Clippers over her husband Donald Sterling’s protests. We’re very eagerly awaiting their impending divorce train wreck. [Bloomberg]
Clients are in the driver’s seat these days. Lawyers, even partners at prestigious and profitable firms, must bow and scrape before in-house counsel to land engagements.
It won’t be long before beauty contests actually include, well, beauty contests. What rainmaker worth his or her salt wouldn’t strip down to a swimsuit if required to do so as a condition of being hired? (Assuming that seeing the lawyer in swimwear would actually appeal to the client, that is.)
Not long ago, some Biglaw partners had to humiliate themselves in order to land a major matter. What did they have to do for the deal?
[A] focus on profit undermines the differences between the practice of law being a profession rather than solely a business. It is easy to anticipate the assertion that we choose not to report aggregate annual average profit numbers because they are not as high as some other firms. But that assertion simply assumes that the way things have been done in the past is the way they should be done in the future.
* This failed firm’s drama is the Biglaw gift that keeps on giving: Dewey & LeBoeuf’s bankruptcy trustee filed an amended complaint against Steve DiCarmine and Joel Sanders seeking the return of more than $21.8 million. [WSJ Law Blog]
* Norton Rose Fulbright elected someone who “love, love, love[s] the law firm” as U.S. managing partner, and she’s the first woman to ever serve as U.S. chair of its management committee. We love, love, love this news! [National Law Journal]
* According to a California judge, tenure laws are unconstitutional and are depriving students of the high quality of education they deserve. The end is nigh, law professors. Enjoy it while it lasts. [New York Times]
* Not all states have legalized the recreational use of marijuana, but it’d be a lot cooler if they did. The tide is turning across the United States, and we’ll soon see which states’ drug laws go up in smoke. [Slate]
* “Document review attorneys are in demand now but the demand will gradually decrease.” Sorry to be the bearer of bad news, but the one job you were able to get soon won’t need or want you. [InsideCounsel]
Since Lat tweeted this past weekend about my UpCounsel profile, I thought I would share some thoughts about my experience with the service to date. First off, compared to leaving a Biglaw partnership to open a new firm, trying out a new legal platform was easy. I first heard about UpCounsel from a former in-house client who had struck out on his own. He happens to now be back in-house, but at the time we discussed UpCounsel, he was very enthusiastic about his experience using the site. Since I happen to like trying out new things, signing up once I left Biglaw was an easy decision.
Notice how I did not join UpCounsel while a Biglaw partner. Such things are simply not done. For all of Biglaw’s talk about encouraging partners to be “entrepreneurial” or to “try new marketing ideas,” there is a lot of resistance to using “new ways” to reach potential new clients. Couple that inertia with a general distaste towards marketing individual lawyers at the expense of “firm branding” (aside from a select group of key current rainmakers), and platforms like UpCounsel face a Tough Mudder-level set of obstacles to overcome if they want to break into the Biglaw firm marketing rotation. But I don’t think UpCounsel and their “evolution of legal services”-oriented kin want to….
Jiminy jillickers! ATL editors are going all over the place over the next month or so. Or at least all over the Eastern Seaboard. If we aren’t heading to your neck of the woods on these trips, never fear, we may hit you up on the next time around. We’ve already hit up Houston, Chicago, Seattle, San Francisco, and Los Angeles in the past year.
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.
The JOBS Act created new tools for companies to publicly advertise securities deals online. As a result, thousands of new deals have hit the market and hundreds of millions in capital has been raised, spurring a wealth of new business development opportunities for attorneys.
Fund deals, startup capital raises, PIPE deals and loan syndicates are just a handful of the transactions benefiting from the JOBS Act. InvestorID FirmTM is a platform designed to help attorneys equip their clients with the workflow, marketing and compliance tools to publicly solicit a securities offering online. By providing clients with the tools to painlessly navigate the regulatory landscape of general solicitation, InvestorID FirmTM helps attorneys add value above just legal services.
The Jumpstart Our Business Startups Act (JOBS Act) went into effect in 2013 and permits Regulation D offerings of securities to be advertised publicly. This means that funds and companies can now use social media, emails and web sites to market transactions to new “accredited” investors.
However, with these new powers come new pain points. InvestorID FirmTM provides a secure, fully hosted, cloud-based platform with a breadth of tools for your clients, including: