Growing up it seems that we all are taught how precious the languages of Western Europe are. Everyone dreams of flying to Florence and having the special stranger whisper sweet Italian to us while we share a bottle of Barolo Bussia Soprana. Or how about that sweet dream love flowing Spanish on the sands of the Caribbean? And let's not forget that chance encounter on the Eiffel Tower- qui, qui.
That is what I call romantic- but Biglaw doesn't think these languages are so attractive. I mean, why else would you pay $85/hr for Japanese, Russian, or Norwegian fluent document review attorney and on the same case matter pay those romantic languages less than half of that? It's just not fair.
Now some will make the case that finding reviewers with Japanese, Russian or Norwegian skills is much more difficult than finding the run of the mill " I took French in high school" attorney who is more than happy to jump on your review. The laws of supply and demand, blah blah, blah. (Slept through it in economics). I say yes, it's true that more legal professionals speak Spanish than Dutch, but lets not act like they all speak it well- or read it no less. This is a legal matter people. Why would you treat the material in one language more precious than the same issue that happens to be written in a second?
That's what many of the Romantic reviewers are asking when considering whether or not to accept assignments for reviews. " Why would I take a Spanish review for $35/hr when I can get an English for the same price on some projects. They want us to do double the work for basically the same price." I understand your pain. The problem is if one person doesn't accept the assignment for the price, there always will be someone who will accept for $35, $34 or maybe even $32. People are desperate to work in this market.
"Well, what is your solution" you ask? I'm not here for solution, I'm just here to bring up a point. As long as there are people out there that accept low rates for the languages of romance, firms will keep paying lower rates. The only problem with this is the old adage "You get what you pay for." Someone highly skilled in one of those languages may consider it an insult to work a project for under $40/hr. What does that leave you with? I tell you what it leaves you with. Someone who was pretty good at Italian in high school or college, but never really used it except at resorts while on vacation. Someone who can't understand the nuances of specific dialects and may interpret a key passage the wrong way. What would that mean to a multimillion dollar dispute? Ask your clients. That's nothing to fall in love with.
Tuesday, September 28, 2010
Wednesday, May 6, 2009
Legal Arena Starting to Look A Lot Like Sports
"I've never seen anything like this." How many times have you been in a conversation with someone and either you or that person had said that when talking about the current economic market and its impact on BigLaw? With all of the dynamic moves of partners, the freeze on hiring associates, the firm collapses and even with people such as Marc S. Drier driving his firm into the ground, this all seems strange and foreign to us- but is it really?
I can't but help thinking that we have seen this all before, only in a different market....sports. I know you may think I'm crazy, but let's just compare and contrast for a minute.
For those of you who are sports fans let's float back to a time when the baseball players had a reserve clause and when you were with an NFL team, they owned you for your career- or until they didn't want you anymore. That's how it was in the early days of Biglaw. An Associate, would come into the fold, work his or her way up to Partner and retire as Of Counsel. There was little movement from firm to firm except for those exceptional few- the Babe Ruth's of the legal world if you will.
...and then came Curt Flood
All of a sudden in the 90's with the Biglaw's love affair with the lockstep, Associates began to firm hop. Three years here, four years there. With the pay mostly in unison , associates could take that step and test free agency knowing that if they moved to a competitor they would be compensated the same. The risk of moving was lessened. Loyalty was gone. Johnny Damon moved to New York. Brett Farve was trying to play for the Vikings. Associates began to test the market more and more and asses their value to both there firms and their competitors. The talent wars, which had historically occurred in the law schools and amongst that group, had now spilled out into the "street" of firm life.
.....and then came Nick Saban and Larry Brown
With the Players all jumping ship after "Plan B" free agency, the fans could never depend on the loyalty of a player again, but one thing they could always count on is that the captain of the ship, the head coach would be there through and through for the team....That is until Nick Saban and Larry Brown came around-the genius coach that could turn any team around- for the right price. What we are seeing now in these slow times is a drop in the stock on the "player" or the Associates and a rise in the stock in the "coaches"- the Partners.
Partner recruiting is now hotter than ever, and in the past 12 months there has been a record number of lateral moves by senior and junior partners. So not only are Nick Saban and Larry Brown changing teams, but so are the Tom Creen's and Norv Tuners of the legal world.The times of loyalty and and the 20-year stay are gone. We just have to get used to attorney movement and accept it as a part of the business, just as we have to accept that Jay Cutler plays for the Bears.
So the next time you or your friend say "I've never seen anything like this," all you need to do is turn on ESPN and you will have it right in front of you.
I can't but help thinking that we have seen this all before, only in a different market....sports. I know you may think I'm crazy, but let's just compare and contrast for a minute.
For those of you who are sports fans let's float back to a time when the baseball players had a reserve clause and when you were with an NFL team, they owned you for your career- or until they didn't want you anymore. That's how it was in the early days of Biglaw. An Associate, would come into the fold, work his or her way up to Partner and retire as Of Counsel. There was little movement from firm to firm except for those exceptional few- the Babe Ruth's of the legal world if you will.
...and then came Curt Flood
All of a sudden in the 90's with the Biglaw's love affair with the lockstep, Associates began to firm hop. Three years here, four years there. With the pay mostly in unison , associates could take that step and test free agency knowing that if they moved to a competitor they would be compensated the same. The risk of moving was lessened. Loyalty was gone. Johnny Damon moved to New York. Brett Farve was trying to play for the Vikings. Associates began to test the market more and more and asses their value to both there firms and their competitors. The talent wars, which had historically occurred in the law schools and amongst that group, had now spilled out into the "street" of firm life.
.....and then came Nick Saban and Larry Brown
With the Players all jumping ship after "Plan B" free agency, the fans could never depend on the loyalty of a player again, but one thing they could always count on is that the captain of the ship, the head coach would be there through and through for the team....That is until Nick Saban and Larry Brown came around-the genius coach that could turn any team around- for the right price. What we are seeing now in these slow times is a drop in the stock on the "player" or the Associates and a rise in the stock in the "coaches"- the Partners.
Partner recruiting is now hotter than ever, and in the past 12 months there has been a record number of lateral moves by senior and junior partners. So not only are Nick Saban and Larry Brown changing teams, but so are the Tom Creen's and Norv Tuners of the legal world.The times of loyalty and and the 20-year stay are gone. We just have to get used to attorney movement and accept it as a part of the business, just as we have to accept that Jay Cutler plays for the Bears.
So the next time you or your friend say "I've never seen anything like this," all you need to do is turn on ESPN and you will have it right in front of you.
Monday, May 4, 2009
The Game has Changed (Why law firm life has been turned upside down)
Many things have been changed by this depressed economy and many industries have been forced to reevaluated their current modes of operation and existence. There are a few industries that could make the claim as being the poster child for change in this economy. You have Finance, Auto and the Insurance industries who all seem to have been racing each other to be that unwanted symbol of change. But another competitor has entered the ring and that is our good old friend the legal industry and big firm life as we used to know it in the first years of this century. This is how I see where law firm life as we know it will be affected.
1. The lockstep shall be banished.
Way back in 2007 when Howrey announced that it was going to end lockstep salaries, many were shocked and horrified, some where even celebrating the fact that they weren't at Howrey. Well kids, celebrate no more. Firms such as Orrick have already begun to use the dire economy as a reason for ending it's lockstep salaries. Some firms such as Jones Day never really bought into that lockstep system. Be sure that many firms will follow down this "dark" path, because as they say in the NFL "this is a copy cat league." So now what will happen to the salary structure once the crutch of lockstep is gone? Well, my little associates, your compensation will be based on- gulp- brace yourselves.....MERIT. That's right kids. Performance and talent will rule the day and those with exceptional skills will truly reap the benefits of honing those skills. Truth be told, not many on the equity partner side were fans of the lockstep. Having to share the money on some associates who really weren't that deserving in their eyes was a major gripe. Now firms will have justification for paying-or not paying associates what they believe they are worth.
2. The "Service" Partner shall become extinct.
DLA Piper "invited" the non-equity partners to become equity partners. many other firms outright "asked." the equity partners to leave. its seems that the firms are now moving toward the one tier partnership system. If you are going to share in the thrill of victory, you better also be there in the agony of defeat. Gone will be the days of holding the title of partner and not actually sharing all the same responsibilities that rest of the partners in the firm have. No, to be considered as a partner attorneys will have to earn their stripes by means more than years of service, or aligning yourself with the right powers that be. Being named a partner at a major law firm will be based on- there's that word again- MERIT.
The above listed reforms in in law firm life will ultimately lead to what I think is the most important reform of all....
3. An Attorney's value shall be made or lost on business development.
Well, that Merit word kept coming up. So let's take a short look at that. what i mean by Merit is that an attorney is going to have to earn his or her stripes at a law firm and prove to the powers that be that he or she is a valuable asset to the firm. How do you do that you say? Well folks there are a good number of ways to do that, but none so impactful as to pet the powers in the spot they love the most- the wallet. Like it or not, biglaw is a business. in these depressed times the law firm world is becoming an "eat what you kill," or at least a "bring something to the the party" world. Those associates who begin the steps of business development early and develop a client base will be the most valuable not only to their current firm, but also to firms in the market in general. the good 'ol Book of business will be a starting point for determining an attorneys value. The days of the senior attorney with no book getting promoted to partner will vanish. For those junior associates out there, it will be those who show the most promise in developing those skills needed for business development who will be seen as the shining stars. MERIT.
Now it's quite possible that all this may never come to fruition, but it is highly likely as firms trim down and make the decisions as to who is deemed as an asset to the firm. So say goodbye to the 90's and the early part of the 2000's where attorneys made extraordinary amounts of money just for being on a major firm's payroll. With the emphasis shifting to paying and advancing those who the powers deem have earned the right, the game has changed.
1. The lockstep shall be banished.
Way back in 2007 when Howrey announced that it was going to end lockstep salaries, many were shocked and horrified, some where even celebrating the fact that they weren't at Howrey. Well kids, celebrate no more. Firms such as Orrick have already begun to use the dire economy as a reason for ending it's lockstep salaries. Some firms such as Jones Day never really bought into that lockstep system. Be sure that many firms will follow down this "dark" path, because as they say in the NFL "this is a copy cat league." So now what will happen to the salary structure once the crutch of lockstep is gone? Well, my little associates, your compensation will be based on- gulp- brace yourselves.....MERIT. That's right kids. Performance and talent will rule the day and those with exceptional skills will truly reap the benefits of honing those skills. Truth be told, not many on the equity partner side were fans of the lockstep. Having to share the money on some associates who really weren't that deserving in their eyes was a major gripe. Now firms will have justification for paying-or not paying associates what they believe they are worth.
2. The "Service" Partner shall become extinct.
DLA Piper "invited" the non-equity partners to become equity partners. many other firms outright "asked." the equity partners to leave. its seems that the firms are now moving toward the one tier partnership system. If you are going to share in the thrill of victory, you better also be there in the agony of defeat. Gone will be the days of holding the title of partner and not actually sharing all the same responsibilities that rest of the partners in the firm have. No, to be considered as a partner attorneys will have to earn their stripes by means more than years of service, or aligning yourself with the right powers that be. Being named a partner at a major law firm will be based on- there's that word again- MERIT.
The above listed reforms in in law firm life will ultimately lead to what I think is the most important reform of all....
3. An Attorney's value shall be made or lost on business development.
Well, that Merit word kept coming up. So let's take a short look at that. what i mean by Merit is that an attorney is going to have to earn his or her stripes at a law firm and prove to the powers that be that he or she is a valuable asset to the firm. How do you do that you say? Well folks there are a good number of ways to do that, but none so impactful as to pet the powers in the spot they love the most- the wallet. Like it or not, biglaw is a business. in these depressed times the law firm world is becoming an "eat what you kill," or at least a "bring something to the the party" world. Those associates who begin the steps of business development early and develop a client base will be the most valuable not only to their current firm, but also to firms in the market in general. the good 'ol Book of business will be a starting point for determining an attorneys value. The days of the senior attorney with no book getting promoted to partner will vanish. For those junior associates out there, it will be those who show the most promise in developing those skills needed for business development who will be seen as the shining stars. MERIT.
Now it's quite possible that all this may never come to fruition, but it is highly likely as firms trim down and make the decisions as to who is deemed as an asset to the firm. So say goodbye to the 90's and the early part of the 2000's where attorneys made extraordinary amounts of money just for being on a major firm's payroll. With the emphasis shifting to paying and advancing those who the powers deem have earned the right, the game has changed.
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