Biglaw

What Lawyers Can Learn From Preschoolers

Law firm leaders brace for a fresh round of pandemic-era compensation challenges.

By  
on

I was scanning the news this week when an article in The Wall Street Journal caught my eye: “Adults Are Throwing Tantrums — in Restaurants, Planes and at Home. Blame the Pandemic.”

The author of the Journal article posits that the pandemic has imposed so much on so many for so long that when an opportunity for an explosion comes along, people increasingly take it. Going nuclear on a waiter, ticket taker, or other person who can’t push back gives people a sense of control, a release of the tension we’ve all been living under for the last year and a half.

Well, if that can happen out in public where outbursts are — or at least were — taboo, imagine what can happen at a law firm, where partners are already notorious for explosive reactions. And then consider that most law firms are heading into compensation review season.

If you’re a law firm leader, and your stomach’s dropping now, you’re not alone. Law firm leaders across the country better figure out a game plan for how to handle this compensation cycle quickly — or run for cover.

To Make A Decision Harder, Just Add Money

Any law firm leader would agree that, even prepandemic, compensation review was the most difficult time of the year. Strong, well-designed compensation plans are key to any firm’s success, and anything that touches on the livelihood of the partnership is going to be a lightning rod. There’s a reason I’ve written about compensation repeatedly in this space. I regularly hear stories of lawyers and partners at firms across the country transforming into entirely different people during comp season. It’s the underbelly of our profession. Everyone wants to make more money. At the partner level, that desire for more is rarely about the marginal extra dollars. More often, it’s to be better recognized for the efforts, sacrifices, and successes they’ve brought to the table.

But if lawyers can have outsized reactions in compensation season in the best of times, imagine what could happen when you add in the angst and turmoil associated with a pandemic. Law firms are already struggling to keep the stresses of the pandemic outside the firms’ doors. When people’s sense of self-worth is on the line, all that frustration with the world, politics, the pandemic, and a lack of control can come whiplashing back both on firm management or, worse, associates, who may feel they have no choice but to take the abuse.

Sponsored

So it’s with good reason that many law firm leaders I’ve spoken with are anxious about comp season. No one looks forward to being screamed at or insulted. So what can leaders do to keep comp discussions professional?

Going Old School

When faced with a problem, it’s often good to consult people who deal with that sort of problem all the time. I submit there’s a place where leaders deal every day with temper tantrums and unregulated behavior and have developed a robust toolkit for defusing those situations: your local preschool.

Toddlers have tantrums because they “can’t yet say what they want, feel, or need.” Because they don’t have the tools to change their world or get their needs met, that sense of powerlessness pushes them to go with the only mode of expression they have left: screaming and crying. Law firm partners are obviously not toddlers, and they have the tools at their disposal to express themselves. But the same logic still applies. Few attorneys feel 100% satisfied with pay decisions — in part because it’s not a decision they make. At most firms, there’s a group entrusted to balance factors and make the best decisions it can for the firm. Compensation season is a time when many attorneys feel powerless to effect change on their situation on their own, and that powerlessness can lead to outbursts of uncontrolled emotion.

Class Is In Session

Sponsored

How, then, do firm leadership teams deal with this? We do what preschool teachers have done for years.

First, we need to acknowledge the raw emotions that people are experiencing. We’re cranky and frustrated. People have been working harder than ever under challenging conditions. Let your people know their frustration is felt and heard, but be resolute that compensation is still going to be guided by data and sound principles of fairness. Some will inevitably be disappointed, but by remaining consistent, fair, and transparent, we severely lower the likelihood those disappointments will boil over into rage.

Second, set expectations. Compensation committees should be clear about how they make decisions. Consider holding a meeting with partners so they can ask key questions. Share the data underlying decisions. Whether your firm’s books are open or closed to the partnership, be transparent about the standards and metrics that matter, so they know how to measure themselves and aren’t in for an unpleasant surprise. If data and market information drive your decisions, let partners know that. The sharper you can be on what does and does not drive compensation, the more sense of power you hand back to your attorneys to control their own fate, and the more confidence your teams will have in your decision.

Lastly, set boundaries and stick to them. Leadership must set a tone that yelling, screaming, and abuse of others is entirely unacceptable. Although anyone can have a bad day, there has to be limits. Firms must impose consequences for when partners abuse others, preferably through a system of warnings and progressive discipline. It needs to be clear that verbal abuse will not be tolerated and will lead to lower compensation or expulsion from the firm. Even if it seems absurd to fire a rainmaker because they’re being “meanie heads,” the consequences of allowing abuse under your roof can be far worse. That means having hard conversations and having them early. It’s no fun having to tell someone they’re being miserable and hurting others. But by having those conversations and setting firm limits on behavior, further abuse is prevented.

Some Perspective

To someone outside of the legal world, all of this may be unseemly. Most of the world lives on about $6 per day, yet I’m discussing how to mitigate temper tantrums among people making six or seven figures a year who think they’re not making enough. Everyone in this profession is privileged to be here. We’re all lucky to be part of a system that affords us a life to take care of ourselves, have nice homes, and provide a quality education for our kids.

We should all be happy, yet the brain just doesn’t work that way. Everyone wants to feel valued, treated fairly, and that they have control over their life. Compensation implicates all of those desires and vulnerabilities. By understanding and embracing that, we can keep it as painless as possible. Anything that seeks to measure and reward the value of an abstract trade like ours is never going to be a perfect science. But we can make efforts to be transparent, fair, and ensure communication to partners that we’re doing our best.

Compensation is never going to be easy, but done right, it doesn’t have to be as hard on us.

James Goodnow is the CEO and managing partner of NLJ 250 firm Fennemore Craig. At age 36, he became the youngest known chief executive of a large law firm in the U.S. He holds his JD from Harvard Law School and dual business management certificates from MIT. He’s currently attending the Cambridge University Judge Business School (U.K.), where he’s working toward a master’s degree in entrepreneurship. James is the co-author of Motivating Millennials, which hit number one on Amazon in the business management new release category. You can connect with James on Twitter (@JamesGoodnow) or by emailing him at James@JamesGoodnow.com.

Topics

, ,