Wilmer Cutler Pickering Hale and Dorr has told some of its more experienced lawyers that they will not have a future with the law firm. Without knowing more, it’s difficult to come to any conclusions about why there will be termination notices, and why those notices will be directed to more senior or experienced lawyers.
Lawyers have among the highest suicide rate of all professions, after cancer and heart, and 6 times the rate of the general public. Most at risk are attorneys between the ages of 48 and 65. “Significantly, suicide accounted for 10.8 % of all deaths.”
Many suicides come because of the intense pressure on lawyers to succeed, both financially and “professionally,” and after some disappointment such as being laid off or losing a major trial.
I noted in earlier writings that lawyers have a difficult time accepting rejection, a feeling that occurs almost every time a major effort such as a trial or important negotiation occurs. Sales people, on the other hand, accept rejection as part of their daily lives. In fact, the mantra for sales people goes something like, “Each ‘no’ is one step closer to ‘yes.’ And, it takes 9 no’s to get to one yes.” What a powerful culture. Lawyers’ culture of perfectionism and elitism, on the other hand, creates much of the difficulties of the profession.
What would the impact be, for example, if we were to say to ourselves that we cannot fix every problem or challenge presented to us by clients? What if we were to say that it’s the client’s issue, that we will do our best, but that, in the end, it’s still the client who got himself into the pickle barrel?
At least one law firm gets it! They have created an internship program rather than delay the entrance of its new 37 hires. Great idea in development. Best wishes to Drinker Biddle for their efforts. See additional commentary on this.
I just met with my banker and she told me of a new program that is very significant for many.
As you know, FDIC insurance protection was available up to $100,000 per customer; for the first time in 28 years, Congress changed this to $250,000. And then, for clients trust accounts, the FDIC instituted a new regulation that stated all clinets’ trust accounts, under certain guidelines, could be insured without limit.
Now, the FDIC has instituted yet another change … only for certain banks that make application and are approved. The FDIC will insure all non-interest bearing accounts without limit. This will even allow you to transfer funds from an interest bearing account to a non interest bearing account, and then be protected for the full amount.
Check with your bank to find out if you can get this added protection in these uncertain times. The program is scheduled to extend through December 2009, though it’s suspected that the program will be extended further.
FOR IMMEDIATE RELEASE
Contact: Ed Poll
LawBiz Management
800.837.5880,EdPoll@lawbiz.com
NEW ONLINE FORUM LAUNCHES FOR LEGAL PROFESSIONALS
Ed Poll Unveils LawBiz® Forum as New Online Community
VENICE, CA MAY 5, 2009 – Nationally recognized law firm management expert Ed Poll, JD, MBA, CMC, announced today the launch of www.LawBizForum.com, an online destination for lawyers, sole practitioners, partners, managing partners, of-counsel and in-house counsel, and others who are members of the legal community providing services to the American people.
www.LawBizForum.com will promote discussion about issues that enable lawyers to more effectively and efficiently deliver their services to their clients, such as management, marketing, technology and finance, and others. LawBiz® Forum is a place where the legal community can exchange ideas and techniques in order to improve the personal and professional lives of its members.
“Law is an honorable profession. Only lawyers are given the unique responsibility in the United States Constitution to help those accused of a crime, a fundamental right guaranteed to all citizens,” remarks Poll. “This helping, caring nature of the legal community sometimes is forgotten by the psychological, social, and economic pressures facing lawyers, and I created this forum so that we can care for each other.”
LawBiz® Forum will have several levels of membership. All visitors to the site can review the discussions at no cost. However, members will be able to contribute to the discussions, participate in exclusive webinars, and have online access to Poll’s books and audio products.
In addition to LawBizForum.com, Ed has a popular YouTube Channel (www.youtube.com/LawBizGuide), and has also started to use Twitter as a way to reach out to the cybersphere. You can follow Poll at twitter.com/lawbiz.
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About Ed Poll
Ed Poll, J.D., M.B.A., CMC, is a nationally recognized expert in law practice management. He helps attorneys and law firms increase their profitability consulting with them on issues of internal operations, business development, and financial matters. Poll brings his clients a solid background in both law and business. He has 25 years experience as a practicing attorney and has also served as CEO and COO for several manufacturing businesses. In 1990, he founded LawBiz® Management Company and is now focused on coaching lawyers, speaking, and writing.
Poll is the author of numerous publications that have become the definitive works in the legal field, including: Law Firm Fees & Compensation: Value and Growth Dynamics (LawBiz© Management Co. 2008), Attorney & Law Firm Guide to The Business of Law: Planning and Operating for Survival and Growth, 2nd ed. (American Bar Assoc. 2003); The Profitable Law Office Handbook: Attorney’s Guide to Successful Business Planning(LawBiz® Management Co. 1996); Secrets of the Business of Law®: Successful Practices for Increasing Your Profits!(LawBiz® Management Co. 1998)
Do you want to start a new practice? There are certain characteristics that will assure you a greater chance for success. Persistence is a key factor; and a financial reserve goes a long way to give you time to work through business mistakes.
In listening to Richard Susskind at a recent presentation before an American Bar Association audience, I was struck by his two primary principles, at least as I understood them at that time.
First, technology was making the practice of law more efficient, more like a commodity, with resulting downward pressure on both costs and fees. Second, clients were becoming more sophisticated and demanding, with the resulting requirement of being client-centric for survival. In other words, the practice of law would need to become more collegial and team-oriented to serve the needs of clients in the future.
As I sat there, listening to an obviously impassioned and eloquent presentation, a light bulb went on for me. First, re technology. During the industrial revolution, we learned that the more equipment we could use to make something, the less labor was required, the lower the price could be charged. With a lower price, volume increased and profits likewise could rise. Then, we moved into automation, with the same result … just a different name. The more a machine could produce a product or service, the less expensive it might be … and the result would be a lower price with higher volume, all of which produced higher profits. Today, we’ve moved to technology. The principles are the same, just the label is changed.
The move from the Industrial Revolution to today’s technology may have increased in speed of change, even exponentially, but the principles are identical. Increased machine power reduces labor which tends to reduce cost which tends to reduce price which increases volume … and profits.
Second, when we discuss client-centric practices, we are talking about partnering with clients … understanding what they need, listening to what they want and bridging the gap between the two with our value proposition. Our value is to understand what they want and show them how we can provide value by addressing that want and also to protect them by delivering what they need to address their challenges.
This partnering, in my earlier manufacturing experience, is called “client loyalty.” One day, I was called in by a buyer of my product. He said that his company had done a quality comparison among my product and others that were sold on his shelves. My product did o.k., but was not so superior that he could ignore the price discount offerings of my competitors. He said to me, “Ed, I don’t need you to meet the competition, but I do need you to do something so I can show that I’ve addressed the competitive marketplace.” As I walked away from his office, I realized a very important fact: This buyer was loyal to me. He had called me last. He gave me the opportunity to compete, without having to reduce my price all the way to the level of my competitors. He called me at the end of the process and was willing to “partner” with me in the sale of my products to his customers. To me, that is client-centric.
Law firms that can partner with their clients, can show their clients how they can reduce their legal costs (without reducing the lawyers’ per unit fees), can develop strategic plans for defending/pursuing legal challenges are the law firms that will thrive in the new economy. It’s these law firms that Richard Susskind was talking about.
This may be new language, like a new business fad of TQM, Sigma … etc., but it still is the old-fashioned care about your client/customer and treat them well … and you will be rewarded by a loyal client willing to work with you for the mutual benefit of both the client and the lawyer/law firm.
See my new book, The 3 Dimension Lawyer: How to Thrive in the New Economy, to be released later this year by West Pub. Co., and to our new community web site.
The other day, I listened to a teleseminar given by Mark Santiago with Kerma Partners. He confirmed my belief that focus on increasing revenue will produce greater results/profitability for the law firm than focusing on reducing expenses.
He referred to a study (which I’m eager to review) that demonstrated a 10:1 return on revenue efforts as contrasted to a 1:1 return for expenses.
That is why rainmakers sit in the catbird seat; they control the direction of the law firm.
More and more, we are seeing evidence that law firms operate under the principles of The Business of Law®.
In acquisitions, a company can buy assets or the corporate stock of the company. Which method is chosen usually depends on tax and potential liability issues. In a recent article, the writer analyzed why Wolf Block didn’t merge to survive. Reasons given for the failure to merge here included the law firm’s large unfunded pension liability, partners’ substantial tax impact by a change in their fiscal year as a result of a merger and the ego of some of the partners insisting that the new firm name begin with "Wolf."
Ego aside, the economic consequences of a merger were avoided by closing the doors, though there certainly were other economic consequences to the individuals involved. Those partners with a portable book of business went elsewhere and suffered less. Those partners and associates without a "book" suffered more.But, all experience difficulties.
What happened to their pension? Out the window! What happened to the firm’s reputation and goodwill of decades of effort? Out the window! Did the lawyers, especially the "insiders," suffer any stress? You betcha!
And, let’s not forget the issues faced by clients who didn’t know who their lawyer would be in the following days and months. Some of these clients will say "a pox on your house!" They will engage a second law firm for some of their matters … just to make sure they are not left hanging in the wind with the same uncertainty in the future — to have the ability to move quickly if they need to be sure they have legal representation while their lawyer finds a new home.
Perhaps worse, when a lawyer leaves a law firm and both that lawyer and the law firm compete for the business of the client, I’ve seen the client say, "A pox! I’ll get a different lawyer/law firm for all my matters." And both lose.
Business principles control. The ego, the arrogance, the ignorance of business principles notwithstanding, lawyers will suffer in this new economy. Irrespective of the economic betterment for the lawyer, clients may move away, leaving both the lawyer and the law firm in the breach.
If your engagement agreement says that “you will act in a professionally responsive manner,” you may be held to both malpractice standards (negligence; tort) and breach of contract! That is the new ruling in Maryland’s Abramson v. Wildman and may be the rule elsewhere.
Check both your jurisdiction rules and your engagement agreement.