"once-in-a-lifetime" - Valorem Law Group
As Nicole Nehama Auerbach joins Valorem, she says:
“I saw Valorem as a once-in-a-lifetime opportunity to really make a difference in the way litigation is handled... I was captivated by the firm’s commitment to provide real value to business clients, and, in particular, its emphasis on alternative fees. Alternative fees are more important than ever to clients as the economy fluctuates and rates continue their upward march. Traditional law firms have been slow to recognize the need to satisfy their clients’ economic concerns."
Valorem Law Group represents a head on assault on the billable hour. Here's an excerpt from thier new web site:
The top ten list…
- We are all refugees of elite BigLaw firms;
- We are skilled courtroom lawyers, in practice and at heart;
- We are revolutionaries and risk-takers, entrepreneurs at heart;
- We bring a single-mindedness to the notion of client service;
- We believe you are entitled to budget certainty, to a real and realized commitment to help you deal with the cost pressures you face;
- We believe that the practice of law is an art, not a science;
- We believe in collaboration and hold the team rather than the individual sacrosanct;
- We love technology and efficiency -- the more red tape we hack through, the better;
- We take our work very seriously -- ourselves, not so much;
- We are real people, with supportive spouses and wonderful kids (who, at least today, appear to really like us).
We provide value or you adjust the bill.
I recommend a thorough tour of their web site.
My Opinion: Don't bet against these people - they are proven champions as individuals and together they are going to disturb the peace of the billable hour. I say BRAVO!! The leader is Patrick Lamb (center in photo above) - learn even more at his famous blog: In Search of Client Service
Posted In Law Firm Innovation , The Legal Profession , , , , ,Comments / Questions (0) | Permalink
Diversity - Call To Action (CTA) Summit
General Mills' Roderick Palmore
According to Roderick Palmore, executive vice president, general counsel and chief compliance and risk management officer at General Mills Inc:
"The statistics speak for themselves. They say our progress in the profession has been disappointing."
Attention Managing Partners:
More than 100 general counsel executives of Fortune 500 companies and managing partners of U.S. law firms are convening next month in an effort to come up with specific ways to improve diversity in the legal profession Managing Partners
The 100 GC’s (in addition to Palmore from general Mills), will include the likes of
General Mills Inc.
The Boeing Co.
Prudential Financial Inc.
Microsoft Corp.
Johnson & Johnson
Tyson Foods Inc.
The Coca-Cola Co.
Bank of America Corp.
See the full story at Law.com in Amanda Bronstad’s piece today called GCs and Law Firm Managing Partners to Convene Over Diversity (also the source of Palmore's photo in this post)
Posted In Law Firm Diversity , Law Firm Human Resources , ,Comments / Questions (1) | Permalink
Don't let your "winning streak" become a "losing streak"
Is your “winning streak” about to become a “losing streak”? I believe it is likely unless you prepare for the test you didn’t ask for but are about to take. Let's be honest, most law firms have had a pretty good run and your partners are well accustomed to it. Will your partners understand what a decrease is? Will your firm maintain the winning attitude that brought you this far? If you don’t think the next few miles of road are bumpier than you're used to then the following may be of little interest (except perhaps for the reference to “denying the facts”).
I Irecommend that you visit (or revisit) Confidence - How Winning Streaks and Losing Streaks Begin and End by Harvard’s Rosabeth Moss Kanter.
Rosabeth Moss Kanter's biography for those interested
Confidence is a road map that helps you react more constructively than you might otherwise have to the challenges you will face (like this deteriorating economy). The losing streak is fraught with a disease whose symptoms will infect your people - they include::
- Stop communicating
- Criticize and blame
- Disrespect others
- Become isolated
- Focus inward
- Let inequalities develop and persist
- Lose initiative
- Forget goals and aspirations
- Spread negativity
- Deny Facts
- Accountability
- Collaboration
- Initiative
Check out Soundview Summaries and getAbstract. If there are others, let me know.
PUNCHLINE: Put Rosabeth Moss Kanter on your informal advisory team by buying the book or subscribing to one of the summary services above. You cannot prevent the legal profession from having a losing streak here – but you can prevent your firm from having one.
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New York Times suggests top law firms seem absolutely irrational
Here’s the actual quote:
Lawyers are smart, but this herd mentality seems absolutely irrational, economically speaking — and not because the compensation is too high. The top law firms have been stuck in copycat mode for years. As soon as one of them raises salaries for associates, the others fall in line almost immediately.
Later in the article NYT asks:
But think about this for a moment: Is there any other business in which every competitor matches salaries and bonuses almost identically?
In response to:
Evan R. Chesler, Cravath’s presiding partner, told The New York Times last month that the firm had originally wanted to “thank our lawyers for the hard work this year and the good year we’ve had.”
NYT offered:
It’s a nice thought but somewhat specious. Partners at law firms are a notoriously greedy bunch — that’s why they accept so few new partners — making it hard to believe that they are willing to part with their money so easily. I suggest there is something else at play: Law firms match bonuses to secure bragging rights.
My View: Given the economic challenges the legal profession is about to face I believe large salary increases and bonuses are risky… a handful of firms can play the game because they have spectacular revenues to encroach upon but if the main stream gets caught in this game we are going to see casualties. Over my many years of working with law firms globally there is a season you want to avoid like the plague – that’s “shrinking pie” season (when the cycle leaves less for partners to share). Everything becomes more painful – rewarding stars means starving others and laying partners off (or de-equitizing) requires more courage because the world is a lot tougher for those who are being disenfranchised. Somehow when the pie shrinks, a very negative game of dominos ensues. Huge associate salaries and bonuses accelerate the shrinking of the partner pie which I argue has its perils.
Read the entire article: Lawyers Compete, Except in Bonuses
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Mo Fo's new Mo Jo
After a 15 year COO/Executive-Director drought, Morrison & Foerster is making a move that is more akin to the behaviour of British and Australian firms than American ones – they have looked outside the firm and indeed outside the legal profession to fill their new Chief Operating Officer Position. This is a bold move which according to Chairman Keith Wetmore will give Mo Fo a competitive advantage. According to the same article, Pat Cavaney, formerly Senior Vice President of Hewlett-Packard, will free up the three firm Managing Partners to manage the practices more and the operations less (and also spend more time practicing law).
PUNCHLINE: I wish Mo Fo and Cavaney every success. I offer the polite caution, however, that I have watched some very talented, intelligent and accomplished individuals who were not themselves lawyers get devoured in the law firm environment by the ferocious independence of many individual partners who felt quite comfortable in their belief that a non-lawyer could not possibly handle the job and that criticism could be heaped upon him (or her) in abundance. Having said that, I am aware of several notable successes where non-lawyers have maneuvered the maze with aplomb and have gained the internal respect that has allowed them to get on with the job. Pat Cavaney’s impressive background will help a lot but it won’t be enough without some serious help from the firm’s senior leadership and a lot of skill on his part - which he likely possesses based on the following (published by Techie Evangelist while he was Senior Vice President at Hewlett-Packard):
As Senior Vice President, Pat Cavaney is responsible for Global Delivery Operations & Information Technology for Technology Services, Technology Solutions Group. In this role, Cavaney manages the Global Delivery Program Office; the Group Information Office (IT + R&D); the Engagement PMO; Customer Operations; Applications Services Delivery; Total Customer Experience, Quality, and Business Process Management; and Compliance & Maturity Assessment.Prior to his current role, Cavaney managed the implementation of the company’s merger integration plans for the services businesses of HP and Compaq. The scope of this effort encompassed all HP Services functions and lines of business including Customer Support, Consulting & Integration, and Managed Services.
Cavaney also served as the Worldwide General Manager of HP Education Services. He was responsible for managing HP’s broad portfolio of learning services that help businesses enhance knowledge and skills and improve business performance.
With a career spanning more than 20 years, Cavaney’s prior experience includes serving as the Worldwide General Manager of the HP Services Year 2000 Program. He was responsible for directing the sales, marketing, delivery, and administration efforts of HP Services to ensure the Y2K readiness of HP product offerings and customer support infrastructure.
Born in Pasadena, California, Cavaney holds a bachelor’s degree in finance and a master’s degree in business administration from the University of Southern California. He is based in Palo Alto, California.
I believe the legal profession has much to gain by importing talent from outside and I wish Mo Fo and Pat Cavaney every success.
Thank you to the ABA Journal for serving as a source for this post - see their November 20th article: Non-Lawyer Now at Helm of 1,000-Attorney Law Firm
Posted In Law Firm Management ,Comments / Questions (0) | Permalink
Some Lawyers Get Perks for Health and Happiness
The New York Times Business section included an article yesterday called: For Lawyers, Perks to Fit a Lifestyle.
The article alluded to a variety of perks including money, candied apples, milkshakes, car discounts, valet services, wine, office parties, in-office gourmet meals on silver platters, nap rooms, child care, emergency nanny services, sabbaticals and even an occasional masseuse.
Perhaps this was the most important perk mentioned:
Fried, Frank, Harris, Shriver & Jacobson, a 600-lawyer firm based in New York, offers employees a service akin to a personal issues coach and psychotherapist through a deal with Corporate Counseling Associates of Manhattan. The consulting firm has a battery of staff psychologists and social workers to provide advice on issues including stress, anxiety, depression and divorce.While many companies have offered employee assistance programs over the years, few have Ph.D. psychologists on staff.
A spokeswoman for Fried, Frank, Paula Zirinsky, said, “We want employees to be successful in their personal as well as their work lives.”
PUNCHLINE: Some of my law-firm clients have very serious challenges dealing with individuals for whom "psychological intervention" should be mandatory. In these severe cases, ostensibly productive members of the firm are causing harm to client relationships and firm personnel with long term costs that are hugely underestimated by their firms. Perhaps offering such perks is a way to make it just a little easier to address these firm-threatening challenges.
Read the entire article... perhaps your firm can offer many of the perks mentioned - most are not that expensive and I'll bet the return on investment would be healthy indeed (pun intended).
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A Great Law Firm "Driven to [Self-] Destruction"?
Recipe for disaster: secrecy, unfair competition, deteriorating culture and even a partnership agreement that did not foresee that it was too generous to departing partners if more than a handful left at a time…
Joanna Pachner of Canada’s highly respected publication, Financial Post Business, writes in detail today about how and why the highly respected and profitable Canadian law firm of Goodman & Carr met its demise.
Punchline: If you are on the senior management team of your law firm, this may be a beacon of what to avoid in your own firm’s future. And, integrity drives me to day this, based on my own experience working with law firms globally, many firms have some of these destructive elements already in place. Perhaps the question is: when the tipping point is reached (that leads to a firm’s ultimate demise). If you care about your own firm, read this article: Driven to [Self-] Destruction Financial Post Business, October 2, 2007.
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Meaningful Recognition from Managing Partners and Practice Group Leaders
Harvard Business Online has a coach named Marshall Goldsmith who has written or co-edited 22 books. In answer to the question:
How Do I Provide Meaningful Recognition?
Marshall references the following:
- List the names of the key groups of people that impact your life -- both at work and at home (customers, co-workers, friends, family members, etc.).
- Write down the names of the people in each group.
- Post your list in a place you can't miss seeing regularly.
- Twice a week -- once on Wednesday, once on Friday -- review the list and ask yourself, “Did anyone on this list do something that I should recognize?”
- If someone did, stop by to say "thank you," make a quick phone call, leave a voice mail, send an email, or jot down a note.
- Don’t do anything that takes up too much time. This process needs to be time-efficient or you won’t stick with it.
- If no one on the list did anything that you believe should be recognized, don’t say anything. You don’t want to be a hypocrite or a phony. No recognition is better than recognition that you don’t really mean.
- Stick with the process. You won’t see much impact in a week – but you will see a huge difference in a year.
PUNCHLINE: Many of the Managing Partners and Practice Group Leaders I serve do not have time for business publications (there are notable exceptions, of course). Perhaps this introduction to Harvard Business Online will whet the appetite for and lead to requesting a free subscription. The eight items above may not be perfect for your situation but I hope it stimulates your deciding the kind of recognition protocol you want to follow.
Read the entire Harvard Business Online post: How Do I Provide Meaningful Recognition?
Posted In Law Firm Leadership , Law Firm Management , , ,Comments / Questions (0) | Permalink
Can you pass the Critical Thinking test of a Global Law Firm?
Lovells offers a “try out” Critical Thinking test which you can take right now, anonymously.
Lovells is one of the largest international business legal practices, with over three thousand people operating from 26 offices in Europe, Asia and the United States.
It is amusing to hear Americans debate the non-constitutionality of asking applicants to submit to testing while the rest of the world has absolutely no problem with it and in fact sees significant benefits. I will leave that debate to others but thought you might have some fun with a sample test.
Take Lovells' Critical Thinking test HERE.
PUNCHLINE: Enjoy!! I’ll tell you my score if you tell me yours!
FOOTNOTE: Perhaps this is the reason Lovells has been awarded Best Website at the 2007 annual Association of Graduate Recruiters (AGR) awards, in the category for companies recruiting between 30 and 100 graduates. Read more...
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Offshoring in India Changing Legal Services in the West
In Three myths about legal services offshoring (The Hindu) there is some very very sobering information especially for those who hope that it means offshoring will just fade away sooner or later.
If you intend to practice law for 10 or more years then: READ THE ARTICLE
Here are some teasers/excerpts:
"Attacks on the competence of Indian lawyers and law graduates are about as valid as saying that Indian software engineers are incapable of handling sophisticated IT (information technology) work. To the contrary, the Indian IT industry is a world leader, and the same will be the case with offshored legal services."
"A recent study conducted by Harvard Law School and LexisNexis reveals that 75 per cent of US law graduates admit they do not have the necessary skills to practise law."
"So you would expect that these deficiencies would be met by rigorous training programs undertaken by Western law firms. Guess again! The Harvard-LexisNexis study reveals that 64 per cent of young lawyers receive no organised, on-the-job training."
"By contrast, reputable legal services offshoring companies in India provide rigorous training to their lawyers, and the hours spent on training do not appear on invoices to clients."
"…at least in the US, law graduates for the most part are notoriously incapable of writing effectively in English. The problem is so severe that some large US law firms now assign a writing coach to each incoming associate. However, most lawyers in the West never receive this kind of training. By contrast, reputable legal services offshoring companies in India train all their attorneys in English writing."
"The future of the legal services offshoring industry in India appears very bright."
"Corporations, not Western law firms, will drive the market in the years ahead."
"Another way that corporations will drive the market, indirectly, is by obtaining flat (or fixed) rate billing from their outside counsel, instead of hourly billing. For example, the mega law firm, Morgan Lewis & Bockius, now handles all of the litigation for Cisco Systems for a fixed annual fee."
"Every sector of the legal offshoring industry will grow dramatically, including lower end services, such as document coding and legal transcription. Ultimately, however, the biggest impact, the long-term mother lode, will be higher-value services such as legal research and drafting – services that constitute the bulk of the legal work now done in the West."
"Long-term, India’s enormous, mostly untapped population of over one billion citizens will continue to make India competitive in relation to other offshore destinations… ultimately it will not only decrease poverty, but increase the number of law graduates."
"On the most positive note, the growth and development of the legal offshoring industry in India will help bring about a major change in the way legal services are delivered in the West."Posted In Law Firm Outsourcing , Law Firm Strategy , Law Firm Technology , Law Firm Training , , , ,
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How Ordinary People Become Extraordinary Managing Partners
As most Managing Partners are aware, during 25 years as CEO of GE, Jack Welch added more value than any other CEO in history. Accordingly, some folks think it worthwhile to analyze what Jack Welch did that fueled those exemplary results.
Much has been written about him and by him but now there us a book called: What Made jack welch JACK WELCH: How Ordinary People Become Extraordinary Leaders by Stephen H. Baum and Dave Conti. (I borrowed from this title in naming this post because I believe that Managing Partners might find this analysis helpful.)
Here is an excerpt from a blog post today on Management Craft, Discussions About State of the Art Management which highlights an article called Shaping Experiences by one of the book's authors, Stephen H. Baum.
This excerpt from the article is what I believe may be a useful self-assessment checklist for managing partners:
"Archetypal shaping experiences contribute to the cake turning out well. The ten broad categories of shaping experiences are listed below and are shown with a brief definition and explanatory quotes from the leaders I interviewed for this book:
1. Swim in Water over Your Head. Take a calculated personal risk without specific knowledge of how to succeed.
"You gotta do things outside your comfort zone. On purpose."?
"I figured I'd get beat up pretty good in this fistfight, but I had to do it. I got a big lump on my head, but I didn't die."
2. Make the Tough Choice. Choose group benefit over personal interest, or choose between two "rights."
"Sometimes you have to take a good friend off the team and make him feel okay about it. Or do it anyway."
3. Solve the Key Puzzle. Even if it is not your job, figure out the root of the problem or opportunity.?
"Sometimes the crowd runs in circles. You have to concentrate and see what everything hangs on -- even if it is not your accountability."
4. Parent at Work. Help others to grow and to perform exceptionally.?
"You learn a lot from your parents and by parenting your own children; sometimes thinking as Mom or Dad at work helps."?
"Ask what you would do if your people were family -- you get some good approaches."?
"Treat your employees as you would want your children treated."
5. Sell Something/Get Others to Buy In. Win hearts and minds to create followers.?
"Sell an idea. You'll be doing it a lot."?
"Get people to vote with their feet, part with their money -- it's what life is all about."
6. Connect with Others. Understand what motivates others -- walk the talk and speak their language. Enlist them as much by your deeds as by your words.?
"This plane will get fixed a lot faster if the mechanics want it to. It won't fix itself."
"A lot of bosses treat their people like they're nobodies. My guys do their best because it's about us, not about me."
7. Build a Team. Gather and lead a group in a common endeavor, and succeed. Or fail at first and try again. Get average players to play like stars. Add new members and weed out underperformers. Set direction and change it while keeping the team together.?
"When you have to deliver, you need experience in selecting people and getting them on the same page."?
"Pickup football taught me how to handicap horses -- who will perform and who will not."
8. Get Good on Your Feet. Learn to communicate, dialogue, and project your authenticity in real time.?
"I was the leader of the singing group. That is when I got used to speaking in front of others. It came in handy later."
"I ran for student council. That's when I learned to handle the hecklers."?
"I wanted to create an atmosphere of fun around a serious proposition. I organized and led a parade in the building. It not only did what I wanted, it also got me noticed in a good way by the boss."
9. Develop Your Crap Detector. Practice your intuitive ability to read subtexts of conversations and to detect individuals whose words and behaviors are not what they pretend them to be.?
"In the military police, we had to ask questions and make quick judgments about people -- a guy who seemed real nice might have beaten someone up a few minutes earlier."
10. Look in the Mirror. Assess your own values, beliefs, and behaviors critically.?
"I didn't want to hear it, but the criticism made me look inside myself. I changed my career, headed for operations. "?
"He made me see my passion -- it's why I stayed in this field against all odds."?
"He told me I'd never make partner if I could not disagree without being disagreeable."
See the full blog post here or order the book here.
Incidentally, about Stephen Baum:
"Stephen H. Baum has been an adviser and coach to CEOs for more than twenty years, first as a partner with Booz Allen & Hamilton, the global consultancy -- where beyond the client work he was also on the appraisal and development committee and mentored young associates -- then as an independent practitioner."Posted In Law Firm Leadership , Law Firm Management , ,
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Would you listen to the General Counsel of Sun Microsystems?
Would you listen to the General Counsel of Sun Microsystems, if he said:
“I do believe that there may be times when a $1,000/hour fee is warranted”“…just yesterday, I read of another example of how law firms continue to be primarily focused on maintaining profits through consolidation and growth of headcount. As a GC, what I'd rather see is an article about how law firms are creating new business models that reflect the reality of my organization - providing consistently high quality of service with a constant focus on efficiency.”
“As recently as four years ago, we had several hundred (that's always embarrassing for me to say) law firms that we used for general purpose legal work in the United States. Since then, we have been aggressively reducing this number to the point that this year we announced that we are moving to nine "Preferred Partner" firms.”
“…we are already seeing examples where … firms are proposing creative pricing models and investing in better understanding our business.”
“…we needed to have about 10,000 agreements reviewed and summarized for an on-line database. We send out an RFP to a large number of firms and through this process filtered the number of candidates down to a handful. These were then invited to participate in an on-line competition for the work. During the course of the event, it was fascinating to see firms from around the world compete to win the business. (If you've ever sold anything on eBay, you know the feeling.)”
“…we quietly started a small team several years ago called "GLN" (Global Legal Services). They are focused on efficiently handling the less complex, but higher volume agreements and services we provide.”
The above quotes are from a single blog post called: Context is everything by Mike Dillon
Senior Vice President, General Counsel and Corporate Secretary, Sun Legal Department of
Sun Microsystems, Inc.: .
PUNCHLINE: Managing Partners – do you dare not read his future blog posts?
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Montreal's legendary Desjardins Ducharme to close
It is with personal sadness that I post this news. In September, one of Canada's most respected law firms will close its doors forever according to a story by lawyer/journalist Jim Middlemiss in today's Financial Post: “Lawyer exodus shutters Desjardins”.
Jim starts his story:
An era will end for the 100-lawyer law firm Desjardins Ducharme LLP in September. The once-esteemed law firm will close after more than 50 years in business.
For those unfamiliar with Desjardins Ducharme, Kip Cobbett's comment in the story sums it up:
Kip Cobbett, [Managing Partner and COO of] Stikeman Elliott LLP in Montreal, said it is "very sad" to see Desjardins' demise. "It was a wonderful firm. It will certainly change the landscape."
The inevitable autopsy will point to a plethora of possible causes. In my view the imperative for firm leaders who read this is not an analysis of Desjardins Ducharme in particular but rather the realization that complacency, even in the blue chip firms, can be lethal.
Punchline: The relentless tsunami of change in the legal market place will not spare a firm unable to maneuver out of its path - no matter that firm's historic financial success, no matter that firm's pedigree, no matter that firm's history, no matter that firm's exemplary reputation. In my view the harsh lesson here is simple: manage or prepare to perish!
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First Law Firm Goes Public - shares up 40% on first day of trading
The Wall Street Journal posts: Slater & Gordon: The World’s First Publicly Traded Law Firm
Managing Partners and other members of law firm C suites had better look at Slater & Gordon’s prospectus – it’s a gold mine, (pun intended).
Have a look at how risks are described – the Wall Street Journal post quotes the passage balancing professional responsibility and shareholder profits.
"Lawyers have a primary duty to the courts and a secondary duty to their clients. These duties are paramount given the nature of the Company’s business as an Incorporated Legal Practice. There could be circumstances in which the lawyers of Slater & Gordon are required to act in accordance with these duties and contrary to other corporate responsibilities and against the interests of Shareholders or the short-term profitability of the Company."
I adored the "Key Risks" page (click on it to download pdf of this page):
PUNCHLINE: If this does not fascinate you, you should resign from your leadership position. I am not saying you should follow suit – I want you to know what your options are and what your competitors might be up to way sooner than you would like to think.
Science fiction movies adore time travel and ripples in the primordial fabric. We are witnessing a collision - the future has just exploded into the present. With Clemente in the UK just over the horizon, please fasten your seatbelts - this is a pivotal moment for the legal profession and for the Managing Partners within it. Like Dennis Hopper's famous line in the movie Speed, "what are you going to do, Jack"
You may want to reference my earlier post: The end of the legal profession as you knew it...
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Client Satisfaction may be EXTREMELY Profitable
(Click on image to see original enlarged version)
I was fascinated by this piece at the Consumerist: How To Beat The Stock Market: Buy Companies With High Customer Satisfaction Scores
If the same phenomenon occurs in the legal profession, there would be a tremendous return on investment from enhancing client satisfaction.
The story is that a portfolio comprised of “companies at the top 20% of the the American Customer Satisfaction Index (ACSI)... greatly outperformed the stock market, generating a 40% return.
“From 1996-2003, the portfolio outperformed the Dow Jones Industrial Average by 93%, the S&P 500 by 201%, and NASDAQ by 335%.”
How would you like to out perform the average law firm by somewhere between 93% and 335%? More importantly, how much should you invest in order to reap a return of that nature?
Don’t bother disseminating this information to your people in order to encourage them to focus on enhancing client satisfaction. Their consequential improved knowledge on the subject will do little. It takes results (client satisfaction) to get results (improved profitability). SKILLS rather than knowledge with be essential to achieve the desired outcome.
PUNCHLINE: In my opinion, there is an overabundance of information in law firms and a dearth of client-relations training. If you are a Managing Partner, you may want to balance this disparity.
Note: I admit that this post is an act of unbridled extrapolation. I cannot prove that the empirical research referenced would apply to the legal profession per se but my view is that it probably would.
(Thank you to my son, Daniel, for bringing this to my attention. Daniel (Riskin) is a PhD and a renowned expert on bats - he discovered Vampire bats run - check out his site.)
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