Natural Morality

David Brooks’ editorial in the Friday, July 23rd New York Times was on morality, in particular the type which naturalists view as another outcome of evolution. The naturalist position is that, much as we have over time developed receptors for sweetness and saltiness, we have also developed receptors that recognize fairness and cruelty. 

At a recent conference organized by the Edge Foundation, researchers attested to the evidence for that inborn moral sense. Paul Bloom of Yale reported on experiments in which babies were shown a figure struggling to climb a hill, another figure trying to help it, a third trying to hinder it and then the hindering figure being either punished or rewarded. Babies as young as six months clearly preferred the helping figure over the hinderer and by eight months preferred the punishing of the hinderer over rewarding her. While Bloom doesn’t pretend that this implies that people are born “good,” he does claim that it shows we are all born with an ability to distinguish basic right and wrong. 

But since we homo sapiens as a group don’t seem to suffer from a surfeit of morality, how do we each arrive on our moral path? 

There was some disagreement at this conference over how much we rationally control our moral behavior. The role of emotion has recently been emphasized as a critical part of decision-making (see our upcoming entry on decision-making).  Some have even suggested that emotion is the real basis for a decision with moral reasoning following simply to justify the decision, much like the proverbial man on the elephant who tells himself that he is the one moving the beast but is in fact only along for the ride. 

Studies done during the last couple of decades, which Brooks doesn’t mention, inquired as to why some gentiles, under no external compulsion, risked their and their families’ lives to protect Jews during the holocaust. The studies found that the gentiles in question viewed themselves as “just that kind of person,” people who had been raised with the sense of obligation to do whatever they could to help others in need, a morality which they practiced without a whole lot of forethought. That is, they performed those heroic acts essentially out of habit.

With the pressure of the economic downturn, the temptation to bypass ethical constraints is evident.  Bill-padding and double-billing have increased dramatically this decade over last, as have frauds and conversions of trust and other third-party funds.

Is there also a laxity in morals, as opposed to ethics?  Professional lapses not expressly prohibited but simple failures to be fair and straightforward?

Perhaps there is no mandate for lawyers to act morally or even room for moral considerations in our profession.  We are, after all, supposed to be zealous advocates, and no doubt many (possibly emotion-based) ethically close calls are strenuously defended as being in clients' best interest. 

But  it is also possible that high standards of morality may be a obligation owed to our clients in the interest of providing them with the best result.  As reported in our entry "What's Morals Got to Do With It?,"  a study by the Consortium for Research on Emotional Intelligence found that financial advisors who demonstrated high levels of “moral and emotional competency” nearly doubled the return on their client portfolios over the S&P 500 average. “Results showed that Integrity was the key behavioral competency which predicted the most positive returns for clients."  Integrity was seen as someone who "walked the talk."

If morality can change a financial advisor's returns, might not a lawyer armed with morality sway judges and opposing counsel? 

Then there is the matter of how we treat each other in our law firms and law departments, where we are less burdened by the goad of zealous advocacy. The Project for Attorney Retention and the Minority Corporate Counsel Association recently reported that nearly one- third of the 700 women partners surveyed had been “bullied, threatened, or intimidated out of origination credit.” This is not a backwoods phenomenon--three-fourths of these women are in firms of over 250 lawyers.  A frequent complaint is that their partners trot out women for client pitches and then exclude them from the work (and of course the origination credit).   "Clients will be surprised that the attorney that they think [is working on the matter] is not getting the credit," says Roberta Liebenberg, chair of the ABA Commission on Women in the Profession.

One of the more interesting points made at the Edge conference is that “people who behave morally don’t generally do it because they have greater knowledge; they do it because they have a greater sensitivity to other people’s points of view,” otherwise known as empathy.  Marc Hauser of Harvard reported that bullies—people clearly not acting morally-- are surprisingly sophisticated in the ways of interpersonal commerce, particularly in reading others’ intentions, but they are not able to "feel their pain." Which makes them good manipulators and strategic operators for their own benefit without the drag on their trajectory of caring about the impact of their actions on others.

Empathy is one of the traits that lawyers often score low on--all the better to not deter us from surging onward on behalf of our clients, certainly some would say.  But firms might consider steps to counter that tendency by adopting compensation and other encouragements to "feel each others' pain."

As Brooks says, it is good to ground virtue in the day to day. 

Does Associate Satisfaction Still Matter?

The American Lawyer recently published its A-List, AmLaw's "look beyond pure dollars to quantify the 20 most successful law firms."  What it "looks" at to make that assessment is revenue per lawyer, pro bono commitment, diversity and associate satisfaction. 

AmLaw tips its hand about the continuing importance of dollars by double weighting revenue per lawyer, but also double weights, interestingly enough, pro bono commitment. The latter almost single-handedly accounts for the two new arrivals -- Paul, Hastings, Janofsky & Walker and Finnegan, Henderson, Farabow, Garrett & Dunner. 

But the biggest movement in the A-List this year compared to last is in the widening range among these firms in rates of associate satisfaction--an average 23% swing--and the impact that has on which firms are designated most successful. 

Lower associate satisfaction scores contributed to the exit of four firms from last year's A-List: Howrey, Irell & Manella, Kirkland & Ellis, and Sullivan & Cromwell.  And a 44% increase in its associate satisfaction score, reflecting a commitment to lockstep pay and communication, according to AmLaw, propelled Debevoise & Plimpton up to number three.

Of course this is the first list to emerge since the 2009 layoff/furlough/delayed entry debacle, so perhaps some volatility should be expected. 

AmLaw concludes its roll-out of the A-List with the statement that "Associates' power may have diminished during the recession, but not when it comes to the A-List." 

The question is:  Why not?

During a period of short-term cost cutting and expectations of long-term reduced growth, when law schools continue to churn out the same number of graduates, many of whom are competing with the lawyers already axed for a smaller number of law firm jobs, why does associate satisfaction really matter much any more?  Aren't there enough junior lawyers out there who will knuckle under and produce results sufficient to fuel the chugging machinery of our law firms without law firms expending the money and effort needed to prop up associate satisfaction rates?  Aren't law firms, in a long-awaited pendulum swing, back in a buyer's market?

The short answer is yes and no.

Yes, there are plenty of bodies for sale.  While law school applications fell for awhile (prompting concern that the quality of graduates must be going down), they have most recently gone up again. In any event law schools continue to produce the same number of new lawyers, and many of those grads continue to prefer to join larger practices (instead of joining the ranks of solo practitioners, for example, which account for over 70% of lawyers in the United States).  All of which puts law firms that boast nothing more than jobs to fill in an enviable position.

So can't a firm ease up on its satisfaction efforts?  Where else, exactly, are these lawyers going to go?

Contrary to that recently spreading, though often unspoken, line of thinking, associate satisfaction is still important--firms should shoot for the competitive advantage that higher satisfaction produces. 

Getting the right answer to a client is not what distinguishes a firm from the rest of the pack these days.  Senior partners at good firms across the country are able to deliver spot-on expertise and client service.  What distinguishes top-tier firms from the rest is the depth of their teams--allowing them to truly leverage their partner skills through the use of competent junior lawyers. Educating and keeping the "keepers"--the young lawyers who are able to do more than just warm the bench, who can bring real value to a firm and its clients--is still the big challenge for firms that want to be at the top, regardless of the drop in industry attrition rates.  

Gen Yers in particular, in search of a portable career, are often going to firms to build their resume, pay off loans and get some substantive training.  Not necessarily to stay, regardless of their credentials.  A recent study indicated that 3/4 of the best reviewed associates are not interested in a biglaw practice. In the UK, the percentage of associates wanting to stay for partnership has dropped from 50% to 38% just in the last 2 years.  Whatever these statistics mean in terms of attrition, they do not bode well for firms who want to provide the best client service.

Nor is this just an issue for today. Fewer associates will be going through most firm pipelines, making the value of each of them even greater and the importance of a high rate of retention more critical.  So we must recruit carefully, train well, and provide reasonable support --to deepen the bench, yes, but also to be in a position to nimbly address opportunities to expand and to replace retiring partners. 

So looks like AmLaw may be right.  There is power in having bright associates interested in and well suited to firm life who are committed to their firms and enjoy what they do.

Will Law Schools Help Build a Healthier Profession?

According to a recent article in the ABA Journal, "Law schools need to do more than teach the legal basics--they also have a moral obligation to produce healthy and satisfied lawyers."  Specifically, Michael Serota, a recent law grad, suggests in his opinion column in the New York Law Journal that law schools "help students identify their professional values and make individual career decisions that correspond to those values."

Serota cites the Peterson study finding unusually high rates in lawyers of depression and other signs of distress, such as heart disease, alcoholism and drug use (see also our entry The Depression Demon Coming Out of the Legal Closet), and four ABA studies conducted over the last 25 years confirming chronic professional dissatisfaction--one out of every four lawyers is dissatisfied with her job. The Peterson study found lawyers suffer from the highest rate of depression of all professionals after adjusting for socio-demographic factors and are 3.6 times more likely to suffer from a major depressive disorder than the rest of the employed population, as well as being more likely to develop heart disease, alcoholism and drug use.  Professor Susan Daicoff has noted approximately 20% of the entire profession suffers from clinically significant levels of substance abuse, depression, anxiety or some other form of psychopathology. Let us add to these studies various others that have identified very high rates of suicide, divorce and mental illness among lawyers.  According to Serota, researchers have also found that mental illness and distress are responsible for the majority of attorney malpractice and disciplinary proceedings.

These findings point to a massive amount of individual suffering across the country, as well as significant costs to society in the form of increased health and malpractice expenses and a plethora of poorly or under-served clients. This circumstance is one clearly worth addressing, and one that can in fact be remedied.

We are often asked if the culture or pressures of legal workplace environments cause these mental health problems.  We believe that pervasive personal traits in lawyers--such as high levels of pessimism, competitiveness, introversion and conflict-avoidance and low levels of resilience and sociability--as well as ignorance about how to manage their implications underlie many of these disheartening statistics. And we have good evidence that those traits are already in place when students enter law school. The law school environment of similar personal types simply intensifies those attributes and can exaggerate their negative tendencies. 

Further, most law students enter law school with a different vision of how they are going to practice law than law schools (and most of their law firm clients looking for talent) envision, resulting in the poor alignment of values that Serota notes.  Research done in the area of positive psychology has determined that promoting the use of personal strengths is a means to higher job productivity and satisfaction.  As is the alignment of personal values with that of the workplace.  Unfortunately, research by Sheldon and Kasser found that as early as their first semester of law school, students begin to shift from focusing on their internal value systems (that which gives them pleasure and meaning) toward an increased emphasis on external values (such as grades and competition), leading to decreased satisfaction and overall well-being. 

Using strengths and aligning values requires, of course, understanding one's strengths and values and how well they match with those of the profession and individual firm one hopes to join.

Unfortunately, the level of this kind of awareness among lawyers must be one of the lowest of all professions.  And even fewer lawyers, if aware, know how to affirmatively use that information for greater productivity and satisfaction.

Thus, it is not surprising that studies find, for example, that within six months of entering law school, students experience significant decreases in well-being and life satisfaction, and substantial increases in depression, negative affect and physical symptoms. 

The American Bar Association, the Association of American Law Schools and the Carnegie Foundation for the Advancement of Teaching have all devoted substantial time to making recommendations as to how law schools might address these concerns. We and other consultants to the industry offer our viewpoint and suggestions.  See among others our entry Growing Leaders at Harvard and Other Business Schools

Law schools have responded by doing little, if anything.  Staff members with little training in the underlying psychological issues continue to offer ad-hoc, after-hours "career counseling" that doesn't help students recognize or address the personal challenges of lawyering. "By ignoring the topic of professional satisfaction in their curricula, law schools create an institutional misconception that the personal challenges of lawyering are peripheral to the practice of law. But because the individual is part and parcel with the professional, personal problems will necessarily affect the professional environment," Serota asserts. 

Does the mandate to educate lawyers include educating them in how to ply their trade with satisfaction and in good health? Will law schools ever put in place programs that further those ends? Lots of different perspectives on this one--see the comments.   

"Mindset: The New Psychology of Success"

In a recent interview about her book, Mindset: The New Psychology of Success, Dr. Carol Dweck, the Lewis and Virginia Eaton Professor of Psychology at Stanford University, explained how a person's mindset can account for success. 

She identifies two major mindsets--fixed and growth.  In a fixed mindset, we think we know our strengths and weaknesses, believe that they are "fixed" and think we should only attempt undertakings that use those strengths.  This type of person often cites genetics or background as limiting factors to their productivity.

With a growth mindset, we believe that we can grow into the skills needed for success. That is, we have the attitude that with analysis and persistence and feedback, we can stretch and extend our abilities over time.  The basis of these differences in mindset lie in one's sense of control and optimism--attitudes that have long been associated with greater success and sense of well-being.

Dr. Dweck's research on athletic performance is intriguing--the more athletes believe that their success is a function of effort and practice (as opposed to "natural talent"), the better they do.  Even more importantly, the more they believe that their coach thinks their success is a function of effort and practice, the better the athletes do.  

She also points out that in India and Asia, the common belief that children are blank slates at birth who can learn anything help people there succeed.

Her research also has relevance to those of us practicing law.  As measured by various assessments, lawyers are highly pessimistic and also have low resilience to setbacks (an indication of low sense of control). When gauging ourselves, and particularly in mentoring others, it is important to focus on the process--how much time and energy is being put into the effort and how persistent the person is.  Encouraging those traits will pay off with better performance over time than praising how "smart" someone is or how "natural" they are at something.  In fact, that type of praise is shown by Dr. Dweck's research to actually lower productivity--trapping the person in the narrow range of their perceived ability and making them fearful that they can't always live up to that talent or go beyond it.

Lawyers are also not inclined to take risks and therefore are less likely to proceed, whether personally or as a firm, when they are not certain they are likely to succeed.  In this time of fast-paced changes, however, Dr. Dweck points out  the disadvantage of such a fixed mindset.  With law practice undergoing tremendous transition, that reluctance can put both a person and a firm at the back of the evolutionary process that will produce better services. 

Dr. Dweck has developed an assessment to determine one's mindset and strategies for changing a mindset from a fixed one to one of growth, both of which we can offer as a part of your complete professional development plan, whether for one attorney or a large group.

Diversity at SCOTUS and Beyond

In addition to the factors we pointed out as relevant in evaluating the Sotomayor Supreme Court nomination, recent studies provide some additional insight into the impact of minority judges just in time for consideration of Kagan’s SCOTUS nomination.

The ABA Judicial Division reported this spring on two studies conducted by the University of Pittsburgh School of Law and Carnegie Mellon University’s Tepper School of Business, one of which examined 40% of reported racial harassment cases from six federal circuits from 1981 to 2003 while the other reviewed over 500 Title VII sexual harassment and sex discrimination cases. In the second study, plaintiffs were at least twice as likely to win if a female judge was on the appellate panel.

 

In the racial harassment cases, African-American judges were significantly more likely to find for plaintiffs (46%), compared to Hispanic (19%), white (21%) and Asian American (33%) judges, a finding which both supports and refutes the idea that those who have experienced being a racial minority may be more sympathetic to minority plaintiffs. While Kagan is Jewish and results for that ethnicity were not reported, the general conclusion remains that diversity breeds diverse trends.

 

Does this mean that the law is so variably applied as to preclude justice? 

 

One of the authors of the study, Professor Pat Chew, takes the position that the rule of law in these cases remains intact—all judges, regardless of their own profile, took the same procedural steps to reach their decisions, while taking different approaches to interpreting the facts. She compared these disparate results to those obtained when controlling for judges’ political affiliation—a factor that also significantly affects outcomes.

 

In a federal court system where 20% of judges are women and 15% are members of minorities, the decisions currently being made are obviously more reflective of those of white males than the spectrum of American ethnicity and gender. But in an increasingly diverse world, that is likely to change.

 

These kinds of studies always segue into an examination of the feeder systems for the judicial system—law firms across the country. The stats there, particularly as a result of the Great Recession of 2009, are not encouraging for the future. While large firms lost about 6% of their total lawyers in 2009, 9% of Asian-Americans, 9.7% of Hispanics and an astounding 13% of African-Americans (and 16% of African-American non-partners, or roughly 1 in 6), lost their lawyering jobs there. While some firms have been able to register gains (seeDiversity Scorecard 2010”), these statistics on overall loss of diversity show what a major setback has occurred in those firms where the resolve to improve law firm diversity is fragile. SeeLaw Firms Must Act to Offset Diversity Setbacks.”

 

At a time when the number of non-whites in the workplace will start to outstrip whites, building an environment that acknowledges and addresses the challenges that diversity presents is a priority for all firms. Understanding differences in the “interpretation of facts,” as the studies above noted, is an important part of understanding diverse perspectives—and succeeding in court. 

 

Another factor that invariably impacts the rise of minority lawyers is a firm’s compensation system, and specifically origination credit. We already are documenting the difficulty that women partners have in capturing their share of origination. SeeFemale Partners Bullied Over Compensation.” Helping minorities and women realize their share of law firm success in the increasing diverse world where firms will be forced to operate should be on every firm’s agenda.

A Short History of the Disappearing PPP

Steve Brill, the initial publisher of The American Lawyer, some 30 years ago invented the AmLaw 100 and began reporting comparative financial figures for that group of firms. Surprisingly enough, firms submitted that information for him to publish, showing definitively how much money lawyers are making on the backs of their clients.

Unclear Payoff

Why do private law partnerships, who are under no regulatory or other compunction to do so, publicize their personal financial information?  Is it just sheer competitive cussedness? Does the “status” of being in the AmLaw 100, primarily a gross revenues barometer, actually improve marketing success?  Does a client check who has the highest Profits Per Partner (PPP) before hiring a firm? Or is the “market” firms are courting primarily new law school graduates and potential lateral hires, who they can point toward “data” that shows “Here is where you make the biggest bucks.” Perhaps it is just another example of herd mentality: once a group of law firms signed on to report, other firms couldn’t abide being left out.

Yet this disclosure practice seems as likely to backfire as help, particularly in this climate.  It used to be that high end real estate and flashy interior decorating were thought to be the indicators of a firm that made too much money and therefore must be charging clients too much.  These days, touting the highest industry profits is rarely applauded—see the response to the likes of Goldman Sachs. Why would those announcing the highest law firm profits get a different reception? A recent Lexis/Nexus survey found that 58% of in-house general corporate counsel believe their outside lawyers are simply making too much money. No doubt further emboldening them in their demands for reduced hourly rates and alternative fee arrangements.

Suspect Data

Whatever the reasons firms decided to publish this information, the data itself is usually highly suspect. Firms often manipulate their finances in order to report the best possible numbers. There are no GAAPs on this unmandated reporting, no audited statements, no footnotes or explanations, no requirements to disclose material information, so in determining PPP, for example, income is moved, equity partners are de-equitized, accounting years are redefined, and PPP magically rises, all without changing the reality of profits.

Which has produced some interesting results.  For example, the difficult year of 2009 saw generally decreased revenues and wholesale elimination of timekeepers, yet many firms nonetheless reported increased profits, and without any note of their having significantly ramped down their operations, a negative indicator for future performance. Further, results reported in one media outlet do not always correspond with the results reported in others.

No More PPP

So it is of great interest that Ralph Baxter, chairman of Orrick, Herrington & Sutcliff, announced on May 12, 2010 that Orrick will no longer publicly report Profits Per Partner. According to the announcement:

"When law firms first started reporting the Profits Per Equity Partner metric in the 1980's, partnership structures were more traditional; partner roles and contributions were less varied, and the legal business much simpler. Today, firms have made significant changes to their partnerships and business models. These changes, among others, mean that Profit Per Equity Partner data actually provides little insight while maintaining an aura of undeserved transparency.

The American Lawyer's A-List, which measures the top 20 firms based on a mix of associate satisfaction, diversity and pro bono contribution, and revenue per lawyer exemplifies the direction in which Orrick is moving its law firm scorecard. "Today, more than ever, the Profit Per Equity Partner metric simply does not tell the market how profitable a firm is, how efficiently it is run, how well it serves its clients, how well it treats its people, or how committed a firm is to pro bono work, its community, and diversity," said Baxter. "Clients and others have made it clear that the metric actually creates the impression that firms manage to the metric to make themselves look good, rather than managing for their clients, their people, and a sound long-term strategy. "

While firms have been wary of Orrick's decision, most consultants' reactions, as recently reported, have been uniformly favorable:

          “In a rational world, firms would either keep their financial numbers private or would disclose information according to a uniform and regulated set of accounting guidelines, backed up by an accountant’s certification,” said Jerry Kowalski, founder of legal consulting firm Kowalski & Associates.

           “1 think one of the most misleading of all public financial figures of law firms is in fact PPP,” said Gary Klein, founder of legal recruiting firm Klein Landau & Romm Inc.

           “The weaknesses of the profits per partner model ‘hit home’ during the recession, when law firms in the midst of unprecedented layoffs also posted excellent PPP results,” said Toni Whittier of Whittier Legal Consulting.

Of course, the next question is what, if any, metric should replace PPP.  Evidently Orrick is working on a law firm equivalent of “earnings per share.” One easy alternative that is already being calculated at many firms is Revenues Per Lawyer (RPL), a figure that takes into account gross revenues, minus expenses, divided by the number of full-time lawyers at a firm.

Considering the changes in the legal industry, additional metrics like rates of growth in revenue, operational efficiency, lateral hires, major representations, alternative fees and, especially, client satisfaction could all be informative.  But assigning numerical values to these “soft” measures can be a challenge.

Client Satisfaction

We expect that rates of client satisfaction, an index that attests to the overall ultimate value of legal services, will become a more touted metric. Checking in with your clients offers the additional advantage of simply being good business—something 80% of corporate general counsel say they expect and only 20% of law firms do.  

We have the technical and interpersonal capability to help you design and implement a protocol for insuring that clients are contacted at the appropriate time via an appropriate method with expert followup and analysis to produce the best results for your client satisfaction ratings, as well as your clients’ satisfaction.

 

Muir Discusses Leadership at WLA Conference

Muir participated in a panel discussion last week at the Women Lawyers Alliance first Annual Conference, held in Chicago.  Muir and fellow panelists author Shaunti Feldhahn, eminent psychologist Dr. Florence Denmark and psychologist/coach Karen Kahn identified some of the challenges and facilities women have in making their mark as leaders in law firms, and also addressed specific questions on how to improve rainmaking skills, solve the perennial work/life dilemma, and give effective feedback to junior lawyers. 

Attendees had this to say:

  • "Ronda Muir is terrific." 
  • "Frank and pragmatic." 
  • "Ronda knows so much--I would like a substantive presentation from her alone."

The School Yard Fights Over Emotional Intelligence

In case you haven't been keeping tabs on the school yard fights about emotional intelligence, you can get a quick taste by checking out the Newsweek NurtureShock Blog interview last fall (and its related predecessors and successors) of Daniel Goleman, who became the once and forever media champion of EI with the publication in 1995 of his book Emotional Intelligence; Why It Can Matter More Than IQ, followed by more articles, books and interviews than you can count.

Po Bronson and Ashley Merryman, authors of 2009's NurtureShock, which selectively undercuts the validity of various social-improvement efforts while trumpeting their own views, took on Goleman on the topic of "is 'emotional intelligence' real" (note the internal quotes), asking him questions that are "probing" by their lights and "gotcha" by others'.  Goleman sat still for a few answers, which the NurtureShock people later summarized as "no real data."

The issues at hand are longstanding ones.  Goleman published his book at the time that the then Yale researchers John Mayer and Peter Salovey were just formulating some of their theories about emotional intelligence.  I have it from them directly that Goleman was one of the few in the audience listening to their updates on the state of the research and they still rue his jump on publishing the material.  He was a NYTimes journalist at the time and could tell from the response he was getting that people were interested in emotional intelligence, and that it struck them as true. His article on emotional intelligence in the Harvard Business Review had the distinction of being the most reprinted article of any that had been published to date.

But Goleman did stretch in trying to connect the dots between the nascent research and the exciting implications he could imagine for business.  Salovey, now Dean at Yale, has repeated in many forums what Bronson and Merryman cite, that Goleman went further than the research did. There is less animosity and divergence, though, than that statement might suggest.  Certainly Salovey and  Mayer are convinced of the existence of emotional intelligence and its importance and have conducted and collected some fascinating results about it.  They themselves devised the definitive "abilities-based" assessment for EI that I and many others use.  Goleman was just the sometimes overenthusiastic messenger, which he tries to ratchet down in the latest editions of his book.

Some argue that neuroscience is absorbing and outdating aspects of psychology.  "Executive function," occurring in the prefrontal cortex, is evidenced in the brain's maturation and is a significant driver of higher functions, such as organizing complicated work and relating to others in complicated social circumstances.  The NurtureShock folks are laying bets on that function outdating the concept of emotional intelligence at least to some extent.

Goleman did politely preface his comments in the interview with Bronson and Merryman by saying that he had heard NurtureShock was good, although he pointedly said he hadn't had time yet to read it.  And he thanked Bronson and Merryman for the refreshing chance "to take part in intelligent and civil discourse."  In turn, they thanked Goleman for being "generous" with his time and "welcomed" him back for further discussion, before pointing out the questions he didn't answer.

But, as various commentators implied, evidence abounded in the interchange that neither high executive functioning nor high emotional intelligence guarantees a cogent or even respectful approach to this particular controversy.

Thankfully the research goes on.

Stay tuned.

 

 

Muir Leads Associate Seminar on Business of Law

Muir recently led an Introduction to the Business of Law seminar for junior associates at an AmLaw 100 firm. The presentation is customized to the firm and is gauged to bolster associates'  engagement and loyalty and to improve their productivity. 

Topics include a definition of terms, such as utilization, realization and cash management, and a discussion of what drives the economics of law firms, the impact of current marketplace trends, as well as how all these factors influence every associate's career, and what they can do to benefit themselves and their firm.

Director of Professional Development: "Associates called me specifically to thank me for setting this up; others said that the topic answered a lot of questions they wanted to know about (but probably wouldn't have asked). Several who didn't make it called to ask if I had recorded it because everyone said it was a good presentation...plus I appreciate that you were great to work with."

Partner in charge: "This was a very helpful presentation--a number of associates came up to me afterward to say how thought -provoking it was. It is difficult at times, particularly with the most junior associates, to get them to ask the questions they want to ask. You answered many of them in your presentation. We look forward to doing this again."

Firm Consultant: "The presentation was excellent. Law is a business like any other business. Every attorney, particularly at these large firms, should know about what you discussed in your presentation."
 

Convergence: Good Riddance or Here to Stay?

The recent upsurge in the financial well-being of small and mid-sized firms, and their lower hourly rates, has left some wondering if the Age of Convergence is waning.  The eponymous DuPont Model, developed in the 1990s, started a consultant-fed surge of mergers and consolidations of firms in pursuit of making or remaining on the preferred provider lists that major corporations were furiously winnowing. Only by offering a broad range of expertise could firms hope to produce the economies of scale--efficiency, cross-pollination, etc--that corporations were after, or so the party line went. 

Never mind that not a single metric showed that bigger firms produced any such economies for the corporations.  The burgeoning size of those firms, and the costs of supporting them, meant that hourly rates kept going up. 

Nor did the hoped-for economic wins for the firms themselves come through.  "Cross-selling" says Mark Chandler, innovative and outspoken GC of Cisco, "is my enemy."

It is then somewhat surprising to see the 2009 ACC/Serengeti Managing Outside Counsel Survey report a record number of inside counsel citing their commitment, in the interest of reducing legal fees, to implementing... convergence. 

Perhaps we have overlooked the biggest advantage to corporations of having fewer law firms in the bullpen--the ease of leveraging them into lower fees.  Take away a $20,000 contract review and few firms would flinch.  Threaten to take away a cross-firm client generating millions in revenue and even the sassiest firm would sit down at the negotiating table.

So put one in the clients' column--sure, fewer law firms to deal with, so inside counsel may achieve some modicum of efficiency, but the real coup is in putting themselves in a position to dictate fees. As the report  "Law Firm of the 21st Century: The Clients' Revolution," prepared by Eversheds, concludes, the economic recession has shifted the balance of power in the legal marketplace toward general counsel (according to 3/4th of those surveyed).  And the shift is here to stay, 78% believe.

Oh, by the way, the 2009 ACC/Serengeti Survey reports that, for the first time in nine years, inside counsel anticipate no rise in billable rates in 2010.  They should know.