Biglaw, In-House Counsel

The Value Of Writing Your Own Lottery Number (Versus Having A Computer Randomly Generate A Number For You)

How can you use the fact that people like to make their own decisions in running a corporate law department?

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dartboard pen inside straightPeople like to make their own decisions.

Academics have studied the value of writing your own lottery number (maybe you’ll choose your kid’s birthday) versus having a machine assign you a randomly generated number.

Thus: Choose your own lottery number. How much must I pay you to buy the ticket from you before the lottery?

Alternatively: Have a computer randomly generate a number for you. How much must I pay you to buy the ticket from you before the lottery?

In a rational world, of course, both numbers are worth the same amount. If you have a one in a million chance of winning the lottery, then you should demand one dollar as the price for any ticket before the result is known.

But most people don’t see it this way. On average, people demand five times as much money for the ticket where they picked their own number than for the randomly generated number.

People may be crazy, but they seemingly like to make their own decisions.

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(I think I’m an outlier. I want to go into Starbucks and order a “cup o’ Joe.” Really. But the barista asks if I want a double-shot-decaf-chai-latte-with-some-froth. I want to go into Subway and order a “number 7.” But the guy behind the counter asks if I want it on white or whole wheat. With tomato, or lettuce, or onions, or pickles? And do I want mustard or mayo or ketchup or oil and vinegar? But I really, really don’t want any of that stuff; I just want a number 7. You guys are the professionals at making subs. Just make me a number 7. I’m sure it’s a wise decision on the part of Starbucks and Subway to give customers choice. Customers apparently enjoy their coffee or sub more when they have a say in how the product is made. But not me. Like I said, I’m an outlier.)

Anyway, how can you use the fact that people like to make their own decisions in running a corporate law department (or, for that matter, a law firm)?

Heck if I know.

(Nah. I’m just kidding. You hoped knew I’d get around to a relevant point eventually.)

Let people pick their own goals.

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What do you think you should achieve next year as an in-house litigator? How many cases should you handle? How many training courses should you teach people in the business? How should we handle reporting on your cases? Whatever.

Or, in a law firm, let people pick their measures for personal development (or, in the case of partners, their compensation).

For associates: How many depositions should you take next year? How many courses should you teach (or articles should you write) to help the firm attract business? How many lunches should you have with clients or prospects? What steps should you take to make those things happen?

Or, for partners: How much client work should you do next year? How much firm work? How much business should you bring in? What are the concrete steps you should take to increase the odds that you bring in that much business?

For the most part, people will naturally pick goals that resemble the ones you would set for them. And, of course, if the self-selected goals don’t naturally meet your institutional objectives, you can discuss the goals and guide people gently in the direction that you prefer.

Once people have set their own goals, they have far less reason to complain at the end of the year, when the results are in, the goals met (or not), and the firm reacts in the promised way.

This gives people control over their lives and is seemingly worth five times as much as institutionally generated goals. That benefits both the individual and the institution.

Why not maximize value for both sides?

While I sit here watching, sipping a cup o’ Joe.

Mark Herrmann spent 17 years as a partner at a leading international law firm and is now responsible for litigation and employment matters at a large international company. 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].

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