I know, I know: It’s other people’s money. Who cares if you waste it?
You should.
Partners at Biglaw firms like to live high on the hog: Fly first class when you’re on the client’s dime, because it’s other people’s money. Fly first class when you’re on the firm’s dime, because you’re one of 500 partners, so it’s 99.998 percent other people’s money. And fly coach when you’re paying your own way, because do you look crazy?
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I’ve heard of a federal judge or two who liked to live high on the hog: “I know the government’s rules say that I’m required to fly coach. But I flew first class when I was in practice. And it’s much easier to do productive work if I’m in first class. And I fly an awful lot at the government’s insistence. I don’t think flying first class on government business is a high crime or misdemeanor, so I’m doing it.”
Corporate bigwigs like to live high on the hog: “I’ve worked hard to get to where I am today, and I’m not giving up any of the perks. I really don’t care what the corporate rules say; I drink good wine and I fly first class. That’s the price you pay for keeping me here.”
Not so fast, Wilbur. (Click through these links. I worked hard to entertain you today.)
Do you really think no one’s watching?
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Piglet is down at the end of the trough, and he sees you. He imitates you. And that costs you both your reputation and money.
It hurts your reputation because everyone sees that you’re a pig, and people talk about it, and they remember it. Eventually your swinish reputation may come back to bite you. If a client asked me, a litigator, to recommend one of my corporate partners to handle a project, am I really likely to recommend Napoleon, who I know will spend the client’s money like a drunken sailor? Probably not. If I worked with you at our law firm and then went in-house, who am I more likely to retain — the person who spends the client’s money as though it were her own, or Miss Piggy?
That’s one cost of piggishness, but it’s not the only cost.
Suppose all your associates know that you fly first class, hire fancy cars, and dine at the finest establishments when you’re on client business. Will you really be surprised when those associates follow your lead, driving up your client’s costs, forcing you to write down bills, and lowering your realization rate?
When one of your firm’s practices holds its annual meeting in Chicago (the costs of which will be borne by you and your partners), do you suppose your associates will opt for the 7 a.m. flight because the ticket is cheaper than the 10 a.m. flight? Don’t count on it: “Old Major would never get up early just to save a few bucks; why the heck should I?”
When those associates meet for dinner the night before the meeting starts, do you think they’ll go to a perfectly nice, but reasonably priced restaurant? I’m betting they’ll eat at the fanciest place in town — because it’s not their money, and you showed them how to spend it.
(Is it wrong to say that your associates are having roast beef, and your competitors’ associates may be having none?)
When some group at your corporation — the law department, or human resources, or a business unit — is traveling to an internal group meeting, are folks choosing between KLM and British Airways on the basis of price? Not if you’ve shown them do otherwise. Are they staying at a hotel that’s perfectly nice for the proletariat, when you’ve taught them to live like the bourgeoisie? They are not, and your department’s performance against budget will show the strain.
I’m not insisting that everyone live like paupers. Business travel is a pain in the neck, and there’s no need to make it even more punishing.
But there’s also no excuse for wasting money just because it’s not yours.
Be reasonable.
For reason’s own sake. And to avoid having some big, bad wolf blow your house down.
Mark Herrmann is Vice President and Deputy General Counsel – Litigation and Employment at Aon, the world’s leading provider of risk management services, insurance and reinsurance brokerage, and human capital and management consulting. He is the author of The Curmudgeon’s Guide to Practicing Law and Inside Straight: Advice About Lawyering, In-House And Out, That Only The Internet Could Provide (affiliate links). You can reach him by email at [email protected].