A recent announcement touted the merger of two relatively large firms to make one larger firm of almost 800 lawyers. Why? One doesn’t know the real reason, the personal agenda of the moving players. But one can look at the outside and prognosticate the likely success of the merger. What are the characteristics that will help achieve success?
First, and foremost, is the culture. Do the firms think and act in a similar fashion? This is perhaps the most difficult characteristic to address because it’s subjective. And, in truth, sometimes different cultures can be blended, resulting in "new blood" being inserted into both firms creating a new, and revitalized "third" firm. But, a clear and conscious effort must be asserted. "Integration" is an overused word, but under-utilized activity in the merger field … without which there will be a collapse of the new entity. As said, it’s imperative that the leaders of both firms come together with an integration plan that is implemented with care and diligence.
Other factors can be more objective. Factors such as the differential in compensation levels and methodology, profitability and target clients are important when analyzing two firms. Another factor to consider is whether the rationale is to expand the services offered to existing clients or to enhance and make more effective existing services. Is this a sale of one firm to another? (Lawyers never speak in this language, so one must look at the economics to answer the question.) Or, is this really an amalgamation of two equal or nearly equal groups? The answer will determine the approach to be taken in putting the two together.
Mergers of larger service organizations are never easy … Ego always is a significant factor … and great effort is required.
Ed recognizes that raising your legal fees just doesn’t "fly". This week, he offers some tips to raise the revenue of your firm without necessarily raising your fees.
“With these lawsuits,” Law School Transparency says, “nearly 10 percent of all ABA-approved law schools across eight states will be accused of tortiously misrepresenting job placement statistics and violating state consumer protection laws.”
The complaint says, among other things, that law schools’ employment figures include work outside the law. And Senator Barbara Boxer of California wants the ABA to require all law schools to better determine where their graduates go after school and what kind of employment they get.
In a recent teleseminar I conducted, recent graduates were angry that they spent so much of their money (and incurred so much debt) to receive an education in a profession that does not offer them employment opportunities. They considered it fraudulent for the schools to have taken their money.
Those feelings and this law suit are different. On the one hand, the students want jobs and feel the schools have an obligation to help them get jobs. On the other hand, the current spate of law suits merely wants information — consumer information — to be accurate and available to law school entrants.
What is the obligation of the law school? How could anyone have predicted the shifts in our economy and the disruption of the profession? Not even senior partners are safe in their firm positions. Why should students be protected? We need to watch these developments as the profession continues to change … caused by the economy … and perhaps more significantly, caused by technology.
If you haven’t already, I suggest reading “Personal Best” by Atul Gawande on newyorker.com. Dr. Gawande examines the need for and nature of coaching for professionals of all walks of life.
Musicians and singers, he points out, think of their coaches as “outside eyes and ears”. They hear and see things that even the best performers can’t detect about their own performances. In endurance coaching, anyone can design hard workouts. Anyone can make you tired and push you into the darkness. In coaching lawyers, anyone can tell you what to do even if it is beyond your comfort zone.
But a good coach will help you understand where you want to go, devise a plan that is within your comfort zone and that will get you there, and then be your mentor and accountability partner to assure your success.
Who is your coach? Is it your colleague, your spouse or significant other or a professional whose career is devoted to helping others like you to succeed? Whomever it may be, we all succeed sooner and stay on top longer when we have a coach, our "outside eyes and ears."
This was the first time I’ve been to Nebraska. The people were super friendly, the architecture was outstanding and the downtown sculpture of Omaha was unique, featuring the pain and stamina of our pioneers. They came to know the “good life.” Here, I learned from the people about some of their social beliefs and economic successes. And don’t let anyone suggest that Nebraska is flat. There are many rolling hills here. As a cyclist, I can attest to this.
It became evident why people conclude that a president of our country must get out of the “bubble” of D.C. to truly understand and stay connected to his national constituency. One area of the country is quite different from another.
It was a pleasure for me to share “the good life” for a short while with the folks from Nebraska.
I was asked again about percentages of expenses. The inquiry came as a result of a recent survey that was being reviewed. What is the appropriate expense percentage of revenue for health, etc. was the question in this instance.
This was my response:
I don’t worry about surveys or what percentages others manage.Every business/law firm is different … and there are too many variables to look at others’ operations and then get depressed because you didn’t meet them or elated because you bettered them … each feeling may not be justified. Do the best you can under your particular circumstances.
When I coach and consult with lawyers, that is one of the areas of my inquiry … how we can do what we do better.If your profit is 20%, for example, who’s to say that it couldn’t be 25%?And if another firm manages 30%, does that make your percentage a poor performance?Not necessarily. Remember that percentages of this nature are based off the beginning figure of revenue. How is your revenue?If you can get it higher, then your expense percentages will be lower/better.
There are too many variables to give a definitive answer. Thus, I distrust the surveys that are floating around.
