Incubators may change the legal landscape
Medicine has residency; accounting has two year service requirement to become certified. Now law has incubators … not quite the same thing.
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Medicine has residency; accounting has two year service requirement to become certified. Now law has incubators … not quite the same thing.
Years ago, seeking to address an RFP (request for proposal) of a large prospective client, I assembled a team of skilled specialists. I was flattered that they all said “yes” to joining me, knowing only me and the prospective client. None of us, individually, could have met the client’s needs. We trusted one another enough to work together and arrange the details of compensation, etc. at a later date. But, I never gave a thought to how our team would be managed for peak performance.
In the current issue of Harvard Business Review, the author suggests that “…many critical tasks are performed by teams created on the fly, but lack of stability can hinder their performance…It’s one thing to make yourself more efficient, quite another to make a team more efficient, and still another when that team’s membership is in constant flux…
To some degree, technology and pricing policies are creating practices of “teams on the fly” as well as “unbundled services.” With short-term teams assembled on the fly becoming increasingly common, the authors set out to investigate how fluid teams can work better.
Going from one generation to another in the 1980s when I was asked to be the law firm’s Chief Operating Officer was difficult enough … and dysfunctional if seen from a 50,000 foot level. But, today, with four generations in the same workspace and literally competing for the same jobs/clients, many conflicts and sparks emerge that wouldn’t otherwise. It’s a wonder that law firms continue to grow in such an environment … of course, such growth does provide “hiding” space to some extent for conflict. See “Bad for the Brand” author, Jonathan Fitzgerald, for a prescient understanding.
The number of new lawyers admitted to the bar was lower in 2014 than in 2013; in addition, law school admissions were considerably lower than in previous years. That suggests there will be fewer lawyers ready and able to fill the ranks of the Baby Boomers as they increasingly leave the practice. Prices to consumers of legal services may increase, depending on the increased utilization of technology. But, compensation for lawyers, even entrepreneurial lawyers will be squeezed and likely lead to continued decreased attractiveness for law school admissions.
When the prices of services or goods continue to rise, creativity enters the fray to lower the price, or a parent price. In the sale of food products, for example, the weight or size of the package decreases to keep the price at its previous level. With professional services, technology appears to provide more effective, speedier and higher quality legal services. Hence, the model rule of professional conduct concerning competence gets modified to include technology skills comparable to those of colleagues in the practice area and/or geographic area of delivery.
Just today, in reviewing materials preparatory to moving my office after 25 years at one location, I reviewed the June 6, 1983 issue of Time magazine. Two articles were of particular significance. One was the cover article about “…stress, seeking cures for modern anxieties…” The other was about education, “…have degree, will travel.” “The class of ’83 faces the worst job prospects since World War II…”
Ironic, but these two topics seem to be in the forefront even today, February 2015. There may be nuances between the two years, however I suspect there are not significant differences in the proposed solutions.
John Claassen, in a “guest column” in the February 4, 2015 edition of the Los Angeles Daily Journal entitled “PROTECT THE VALUE OF HUMAN ASSETS,” quoted Bill Gates’ opposition to increasing the federal minimum wage as follows: “If you raise the minimum wage, you are encouraging labor substitution, and you’re going to go buy machinery and automate things.”
The tension between machinery and labor is an age old issue. This precedes the development of the cotton gin and other industrial revolution equipment. In a 1983 trip to China, I observed hundreds of laborers sweeping the streets with bamboo brooms; in my community, this work was then being done by street cleaners driving trucks. More territory could be covered, with greater effectiveness and less labor. China understood that, in 1983, if they automated this task, they would have an even higher unemployment rate, risking such dissatisfaction which might cause an overthrow of the then current government.
Owners and employers in a private enterprise economy are always seeking greater efficiency and profits. They make the choice between labor and technology based on many factors, only one of which is return on investment. To say that increased mandated compensation such as a minimum wage would promote automation is no doubt true; however, it was also true in the 1930s, the 1800s, the 1700s and likely will be true in the future. It is true in every industry and profession.
Society in the past has focused on the well-being of its populace, not just the numbers. This includes healthcare, minimum wages, regulations of civility toward one another and other aspects of human endeavor. We value human assets. We value new technology and research and development. New technology and increased efficiency improves our life and increases the well-being of all our citizens. We encourage the growth in each area of endeavor by tax policies and other approaches. If I read Mr. Claassen correctly, he suggests there is a tension between the two, and policymakers should not ignore nor discount the value of “lower wage workers.”
The legal profession understands this process. Thousands of lawyers have been laid off, fired or encouraged to retire since the Great Recession. Many of them were document review lawyers or lawyers with little or no marketing skills. In Mr. Claassen’s terminology, these were the “lower or middle income” lawyers of the profession. Such economic disruption never happened in the profession before. Despite the economic improvement of our economy, and law firm profitability, most of those jobs will not return. Why? Because technological improvements have made many obsolete or more expensive than clients want to pay. Discovery search technology is far more efficient and accurate than hundreds of document review lawyers. These jobs will not return. This is progress. Does it come with some pain to individuals? Yes. Should there be an economic soft landing for those affected? Perhaps. That is a matter for society to determine, but it is not reason to limit wage increases or disfavor research and development.
A New York consulting firm recently conducted a survey and found that eight of the top 10 companies that no longer provided extraordinary support for their products and services for technology companies. Companies like Samsung, Apple and others apparently are appealing to a younger audience that is not accustomed to having handholding as an element of value.
Dunkin’ Donuts was one company that was more traditional and not technology based. Apple, while no longer enabling you to make an appointment at their “Genius Bar” online nevertheless still had a service component by opening more stores in more cities with more personnel to help those with operational issues. Apple found that the Genius Bar is better left for hardware and software glitches; other issues can be addressed by the consumer taking a class in either their store or their phone provider. But, Apple did not forsake its consumer who needed technical assistance.
Nothing replaces human contact, even for the youngest generation. A very astute technology company called “www.gethuman.com” build some of the gap for older folks by finding phone numbers of the very same companies who seek to hide their presence from consumers.
Companies, even technology companies, must realize that customer service is a marathon, not a sprint. Consumers, myself included, recently have left Samsung and purchased the new Apple iPhone 6. Why? because Samsung refused to connect with their consumer to solve the consumer’s issues. Apple does. And while Samsung’s commercials suggest that Apple 6+ is nearly a copy, it is a “copy” that works and carries with it a service component.
Gary Kinder, founder and CEO of WordRake® writes the following:
“…Each of us has three vocabularies:
When speaking, we use, and tolerate (to a point) others using, ers and uhs and sos and wells and likes, and confusing who with whom and lay with lie because most of us can’t think fast enough when we speak to get it all grammatically correct; plus we have tone of voice, facial expressions, and body language to help us communicate. Our writing must be more precise than our speech because we have only words to convey meaning.
Email is a weird hybrid existing between speaking and writing. In that gap, our email mindset might be loose and informal, but our business recipients do not forgive our typos, grammatical slips, and bloated, unnecessary, abstract, sometimes nonsensical phrasing. That’s where the tension lies: we write it as though the message is impermanent; they judge it and us as though it’s permanent….”
When in business, we know the validity of “dress for success.” So, too, when communicating even in e-mail, write/speak commensurate with your market, the recipients of your communication. “Talking” with personal friends is a different matter.
In this month’s issue of the American Bar Journal, an article was written about the CEO of the U.S. Anti-Doping Agency, Travis Tygart, and his efforts to prove that Lance Armstrong “cheated” in his bike racing. In the article, reference was made to his being a Christian and Lance Armstrong to being an atheist.
Such reference was gratuitous and does not make one a good person and the other a bad person. Religion does not make the accused guilty or the accuser innocent. Religion detracts from the message of the article.
Also, two issues of significant importance were not addressed. One was why a U.S. agency was so “hot to trot” over a French event, the Tour de France? It devolved into what was seemingly a personal vendetta between two opinionated and arrogant personalities.
What was not mentioned is more important to the issue. Technology has improved the performance on the bike by make the bike lighter and more aerodynamic; nutrition has improved the performance of the athletes by making them healthier; and psychology has improved the focus of athletes. Why should not science also be able to improve the performance of the athlete by using his own blood? We allow training at high elevation. How different is this? “Doping” has been an element of racing in the Tour for decades. Just check out wikipedia for details.
In the free speech movement in the 1960s, in prison reform and in civil rights, we have made many changes over the years. If one were arrested before such changes, were they considered unethical? They were chastised and even arrested, and some killed.
Perhaps the more important issue in this case should be whether the rule should be changed, whether people ought to use the latest and best technology for both their equipment and their bodies? In this discussion, that the rule may wrong does not get reviewed.
Should lawyers care about this issue? Isn’t it “old hat” at this point? We are being urged to be creative, to use new technologies and new or at least not previously test modalities of management and client services. At what point will the Bar say lawyers overstepped the boundaries of propriety? While being created and assertive (perhaps “aggressive” or “uncivil”), some might say we/you have crossed the line of propriety.
Lawyers from around the country continue to call me, asking for information on how to sell their practices. In response,we recently opened our LawBiz® Registry. Visit the archives for articles about buying and selling law practices and other ways to monetize the goodwill that you have spent so many years to build. In addition, you may want to buy one of our books or tapes in our store on the profitable law office exit strategy or planning for your next 6000 days.
Contact me at any time if you have additional questions.