Amazing Firms, Amazing Practices

The Wall Street Journal has a post called: Big-Law Associates Facing 2008 Salary Cap by Dan Slater.

Here is a key paragraph from that post from which my title was derived:

"We called around to firms to find out whether associate salaries, called economically-irrational in some quarters, have finally (or, at least, for now) hit a ceiling. The answer seems to be yes."

The comments under the post range from:

"I think associates should just worry about keeping their jobs instead of clamoring for increases in salary"

to

"I expect salaries in NY will bump up to 190 before the end of the year. That will cause other cities to match. The following year NY will again bump to 230, and other cities will again follow. The pattern has been established, and there is no way to stop it. It’s pure economics. Plain and simple."

PUNCHLINE:  I am empathetic with recent grads who must repay large loans and face rampant inflation.  However, I believe the only thing that matters is "the client" because collectively the clients will drive demand and the parameters under which legal services are sold.  As the world flattens, clients' choices expend and as Cisco and GE and other powerful clients have clearly demonstrated, if the profession can't summon the imagination to change the equation clients will change the equation for them.  I reference two of my previous posts:

Offshoring in India Changing Legal Services in the West
OUTSOURCING: "Lawyers are service providers. We are not gods"

Image Credit:  The image in this post was copied from the original WSJ post

Footnote:  At the moment I am on assignment with a prominent South African law firm...  you should see how wide their eyes get at the mention of the scale of associate salaries referenced in this article.

click on image for larger view

LOGITHISER – a new term for law firms

The Logical Empathiser. The accepted wisdom is that anyone who possesses great reason and logic is quite devoid of humanity and warmth. The Logithiser is living proof that wisdom, in this case, is fallacy. Yes, Logithisers are capable of shutting down their emotional mechanisms to perform feats of objectivity and accurate thought. But equally, they have great powers of empathy.
Faced with a stressed colleague or a concerned client, the Logithiser readily sheds their tough exterior, listens quietly and offers sound, careful advice.

I did not (would not) make this up.  This unique approach is used by the Eversheds firm (based in the UK) to attract recruits.  If you liked Logithiser, perhaps you will like these:

KNOWLIVATOR The Knowledgeable Motivator
INNOVATEER The Innovative Volunteer
PERFORMIBUTOR The Performing Contributor
PROACTILOPER The Proactive Developer
PROFESSIONARY The Professional Visionary
PRIORICATOR The Prioritising Communicator
WINNOMAT The Winning Diplomat

The "Graduate Recruiting" portal at the Eversheds site features videos as well.   The shooting approach is for us to view the video as if we are part of its production – take a look – see what I mean!

PUNCHLINE:  In a profession based on precedent and tradition where few are willing to risk being unique, one firm has.  Like it or hate it, give them credit for the courage to stand out.  BRAVO EVERSHEDS!!

Based upon (and thank you to) Roll On Friday - original post: on this subject. Eversheds recruitment effort

Take this Harvard test and get your own (possibly surprising) results in five minutes.

Thank you to The Complete Lawyer for "Test Yourself For Hidden Bias" in the Surveys and Research section.

The September 2007 McKinsey Quarterly has an interesting article called: The Evolving Role of the CMO by David Court who discusses four areas of change for the CMO:

• Changing to reflect new consumer [client?] buying behavior
• Shaping the Company's [Firm's?] public profile
• Managing Complexity
• Building new Marketing Capabilities

• Take time to understand what's really happening with customers [clients?]
• Foster the right connection between the CMO's efforts and those other parts of the organization
• Be a "thought partner" for the CMO as he or she transforms the marketing organization.

NOTE:  General access to McKinsey Quarterly is free but requires registration and log-in - for recommended article, premium (paid) subscription is required.

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."

Two notes of optimism today for the legal profession:

“Forget the old stereotypes of law firms as inhospitable to women,” said Suzanne Riss, Editor in Chief, Working Mother magazine.  “As Working Mother examined the practices of many of the nation’s law firms, I was pleasantly surprised to discover that a number have been quietly changing their policies in recent years to reflect changes that are afoot in society as a whole.  The 2007 Working Mother & Flex-Time Lawyers Best Law Firms for Women are making women’s issues a priority, and the success of their policies will hopefully become reflected in the number of women, from associates all the way up to partners.”

See the full press release including the 50 Best Law firms for Women  (Note - this is a PDF)

More than three-quarters of the UK's top 50 law firms have introduced flexible working… Regional-based firm Mills & Reeves tops the table in terms of numbers of fee-earners taking up flexible working in the last year, according to a poll conducted by The Lawyer. Of the firm’s 407 fee-earners, 153 are no longer working traditional nine to five hours. This is the equivalent of 38 per cent of the workforce.

See the full story: Top UK firms embrace flexible working   (UK's: The Lawyer.com)

Punchline:  It's refreshing to read about some significant progress in this area - I grow weary of those who suffer from "hardening of the attitudes".

“Ford & Harrison, a 190-attorney labor and employment firm, has tossed out billable-hour requirements for first-year associates. The program aims to close the practical-skills gap of law school education and increase value to clients. The firm also hopes it will enable associates to handle meatier matters more quickly.“ according to Leigh Jones of The National Law Journal.

I have the privilege of knowing C. Lash Harrison (pictured) and his remarkable stature within his firm.  When I read about this bold initiative I was in no way surprised that it was Lash who had the gravitas to pull this off.  It may be prophetic that the tag line on the Ford & Harrison firm’s website reads:  “THE RIGHT RESPONSE AT THE RIGHT TIME”

"Everyone sits around and complains about the problems," said C. Lash Harrison, managing partner of the law firm. "I figured, what the heck, maybe we can try something."

Observation:  The issue of newer lawyers recording time on files is a bit of a hornet’s nest in most firms.  If the time is billable, it detracts from the billing partner’s realization rate and perhaps even hours billed.   Carefully measured associates steer away from files where they can’t record billable time.  This creates a tension that is based on economic reality but serves neither the associate’s training objectives nor the client’s desire to optimize value.  Thank goodness for fresh thinking and bold initiatives.  That makes C. Lash Harrison a hero to me.

Thank you to LAW.COM for its post Firm Kills Billable Hour for First-Year Associates