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.