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. 

Muir to Lead Discussion on Lateral HIring and Integration

From 2:00 pm to 3:15 EST on Thursday April 29, 2010 Muir will lead an audio conference discussion hosted by the Center for Ccompetitive Management (CCM) entitled "Lateral Partner Hires: Selecting and Integrating the Best Fit for the Firm," centering on the issues associated with hiring and integrating lateral partners. A record number of lateral partner moves were made in 2009 and 2010 is shaping up to be another record year.  Don't miss this chance to maximize your firm's efforts to grow while avoiding the expensive pitfalls of lateral partner attrition.

For further information and to register, go to http://www.c4cm.com/lawfirm/lateral-partner-hires.htm

 

What We Can Learn from the HOGS

"In times of drastic change, it is the learners who will inherit the earth.  The learned will be perfectly positioned for a world that no longer exists."  Swarthmore College's 2009 Lax Conference's keynote speaker Richard Teerlink started his presentation with this quote from Eric Hoffer.  

Teerlink led Harley-Davidson's fabled turnaround, fueled in part by his belief that people are the most important resource in any company.  Teerlink was CFO, CEO, and Chairman of the Board of Harley-Davidson during the time it went from the stepchild of a public company to private ownership by 13 managers carrying $40 million of debt to its reemergence as a public darling again.

How did they do it?  At the time of HD's privatization, the Japanese dominated the motorcycle industry, and HD's board had to make some tough decisions: they laid off 40% of the workforce--all at once, Teerlink points out, so that fear would not weaken the remaining group; cut compensation of the rest of the employees; killed an expensive new development project; reduced their dealer network; asked suppliers for reductions; eliminated all the Senior Vice-Presidents so that responsibility would be pushed down further in the ranks, with more direct reporting to top management and fewer silos; and collaborated with employees, dealers and customers to enhance the HOG experience. 

Teerlink says that as with all major shakeups HD made some dumb decisions but learned to reverse course quickly.  An advertising campaign was launched that honestly acknowledged past weaknesses and promised owners a different experience.  And the company delivered. 

Teerlink emphasized to HD employees that they were not selling machinery, but an emotional experience, one that offered entertainment and a community.  Thus the HOGS--Harley Owners Group--was born, with networking, social events and riding support (fly and ride, for example) offered nationwide. 

The premise that "people are an organization's only sustainable competitive advantage" drove Teerlink's transformation of HD.  His book, "More Than a Motorcycle: The Leadership Journey of Harley-Davidson," chronicles how he brought that premise into reality.

At a time when law firms are facing some of the most challenging marketing conditions of all time, we might do well to learn a few things from the people who brought us the HOGS.

High Performance Coaching for Low Performing Times

This is the time of year when many of us take stock of our direction and goals and make plans to step up our effectiveness.  This particular year, 2009, many lawyers are facing an extremely difficult once-in-a-century marketplace for which no one has been truly prepared.  So we may also find ourselves questioning our ability to successfully grapple with the challenges ahead.  

How to acquire the skills that will improve your practice and advance your leadership in such a disorienting environment?

The old adage of two heads being better than one is born out by the data available on the results of coaching.  According to a January 13, 2009 article by Susan Letterman White in The Legal Intelligencer, "a research report by Diane Coutu and Carol Kauffman in the January Harvard Business Review found that coaching is a business tool most often used to develop the capabilities of high-potential performers or facilitate leadership transitions," and one which produces quantifiable benefits. "The Journal of Occupational and Organizational Psychology has reported that coaching leads to higher interview ratings for individuals. Telecommunications Weekly reported in November that a change program, which included coaching, improved customer satisfaction by 10 percent and call resolution rates by 56 percent at Motorola. And according to a 2008 article in The Chronicle of Higher Education, coaching of university faculty improved the writing process of professors who were under pressure to publish."

As Ms. White states, "coaching is to a lawyer what organizational development is to a law firm; they both foster intentional change toward particular goals through a collaborative process. The goals are those that move the client to a higher level of professional effectiveness...Most importantly, a good coach is paid to ask the right questions."

In addition, a good coach is one who listens.

Sheryl Axelrod of Hepburn Axelrod & White, a Philadelphia firm, was quoted in the article as extolling the benefits of coaching in a law firm context. "We worked with a coach who had an uncanny ability to not only listen to our needs, fears and desires for our firm, but our own internal dilemmas and concerns about each other."

Of course, after listening, a coach must also be able to help coachees arrive at and implement beneficial changes.  And those changes are sometimes unexpected.  In the Hepburn Axelrod case, "one of our partners...reach[ed] the difficult decision to leave the partnership."

But the proof is in the pudding.  "The result of the coaching is that our firm, on our own, and our former partner, on his own, are each thriving in a market in which most firms are doing worse, not better, than the year before, " Axelrod said.

Quantitative evaluations of coaching are rare, but those that have been done demonstrate conclusively its effectiveness and bottom-line contribution.  In an evaluation by MetrixGlobal of an executive coaching program provided by the Center for Performance Excellence in 2004 to Booz Allen partners and principals, results indicated that "all leaders readily applied what they gained from their coaching experiences to make significant strides in self-development, while over half (53%) made significant improvements in their relationships with peers and team members and some  leaders (19%) went on to significantly improve client relationships; gaining greater clarity about how their behavior impacted clients and being better able to respond to client issues."

Of eight business areas senior leaders expected executive coaching to impact, "two were found to be positively impacted by at least half of the leaders who were coached: teamwork (58%) and team member satisfaction (54%). Three other areas were selected by 31% of the leaders as having been impacted: quality of consulting, retention and productivity."

Monetary benefits were rigorously documented in this evaluation. "The total monetary benefits were $3,268,325 with four impact areas each producing at least a half million dollars of annualized benefit to the business: improved teamwork ($981,980), quality of consulting ($863,625), retention ($626,456) and team member satisfaction ($541,250). Given a total, fully loaded cost of the coaching of $414,310, the ROI was 689%."

Coaching can provide to all lawyers the simple but valuable assistance of a supportive yet out-of-the-law-firm-box perspective that can be critical when steering through dangerous waters--and that can positively impact the bottom line. That perspective can help you become a more effective  partner, develop individual business, expand your expertise, master management responsibilities and otherwise plan and implement the next step in your career (whether you are motivated to do so proactively or reactively).

At RRR, we offer confidential high-performance coaching programs of six to eighteen months that are tailored to your objectives and your schedule.  Contact us for a consultation on how we can help you achieve your goals in 2009.

Happy new year!

 

Making Law School Practical

Washington and Lee University School of Law has announced a plan to replace all third-year academic classes with hands-on "experiential" learning.  Recently approved unanimously by faculty, the new curriculum will be phased in over 3-4 years and teach practical skills by using simulations and real-client interactions.  It will also emphasize non-traditional topics like attorney-client communication, working in teams, problem-solving and civil leadership. 

The revised program is in response to firms, corporations and judges urging greater law school emphasis on professionalism and learning in context.  Following the March 2007 Carnegie Foundation for the Advancement of Teaching report on inadequacies in law schools, a network of 10 law school launched a project that aims to improve how law schools operate and teach.

Another relevant area that law schools would be wise to teach is leadership and management.  Leadership and management skills are increasingly important to both the individual lawyer's career and to the success of his/her law firm/law department.  Orrick, Goodwin Proctor and a number of other law firms send their young partners to Harvard  or other business school leadership courses, and/or hold off-site workshops for junior partners on leadership and law firm economics, management and team-building.  But partnership is often late to be grooming those skills.  The next bold step will be for law schools to introduce these critical subjects, and start identifying and honing associated skills, while lawyer students are mastering legal subject matter.

Taking "Bah Humbug" out of Success in the New Year

Is living a life filled with distrust and deception the price of achieving professional success?  As we head into another year, it is a query worth pursuing.

Steve Katz, adjunct professor at Northwestern University's Business Institutions Program, points out a bestseller published in 1998 that purportedly draws from centuries of powerful leaders (on the order of Machiavelli, Talleyrand, Bismarck, Catherine the Great, Mao, Kissinger, Haile Selassie, etc.) for the best strategies for achieving business success. 

The problem with The 48 Laws of Power by Robert Greene (designed by Joost Elffers) is that virtually every one of these "laws" are counter to most current notions of business ethics and best leadership practices, and in some cases contravene a number of other generally accepted precepts as well.  Which doesn't mean that there aren't plenty of people out there who nonetheless following these "laws."

Mastering one's emotions and perfecting the arts of deception and indirection are, the author asserts, the essential keys to success. Here are some examples:

  •   Law 3:    Conceal your Intentions
  •   Law 7:    Get others to do the work for you, but always take the credit
  •   Law 11:  Keep people dependent on you
  •   Law 21:  Play a sucker to catch a sucker-- seem dumber than your mark
  •   Law 27:  Play on people's need to believe to create a cult-like following
  •   Law 33:  Use each person's weakness as a thumbscrew you can turn to your advantage
  •   Law 44:  Disarm and infuriate your enemies by mirroring their values and their actions

While mastering one's emotions is a worthy and productive goal that few fully attain, recent research shows that using that skill to suppress emotion at the workplace will not produce much success.  Lack of effective use and conveyance of emotion, particularly by the leader, is most likely to produce a working group that is not cohesive and not satisfied. 

Perfecting deception and indirection would hardly seem to be what would distinguish anyone from the crowd these days.  And in a post-Sarbanes Oxley world, wielding deception and indirection as tools of management could possibly lead to the wrong side of the bars .

What is not particularly surprising is that the books that Amazon.com identifies as most often bought along with 48 Laws of Power are Get Anyone to Do Anything; Never Feel Powerless Again by David J. Lieberman and The Mystery Method: How to Get Beautiful Women Into Bed by "Mystery" and "Lovedrop."  (Was that a collective rush to Amazon?)

The point is that these kinds of  "power" plays are most likely the province of people who feel they lack influence, allure, value.  The sorry result of resorting to these tactics is that, whatever success is achieved in the short run (and I'm not assuming there usually is much), in the long run not only is there no success, but the journey to that unsucessful end will have been quite an unpleasant one for both the "power player" and his/her team.   

A better stance would be to do the opposite of what each of these rules suggest: 

  • Make your intentions clear
  • Give credit to others even when you have done some of the work
  • Provide the support that can set your team free
  • Be a source of information and inspiration to those working with you
  • Give others the gift that you believe in them
  • Show how each person's strengths can help them and their team work better and happier
  • Take a stand for your values and make sure your actions follow suit

So, let us take the opposite of another of these "power laws", Law 20 (which advises not to commit to anyone or anything), and commit to a new year of achieving the kind of power that results from using both emotions and intellect to effectively and honestly build trust and respect at work.

Happy new year!

 

 

Building an Ethical Culture

One of the requirements of the Sarbanes-Oxley rules for publicly traded companies is that they demonstrate that they are promoting an "ethical culture" in the workplace.  What does that mean?

"The Manager's Book of Decencies:  How Small Gestures Build Great Companies" by Steve Harrison, chairman of Woodcliff Lake, N.J.-based Lee Hecht Harrison, the employee outplacement arm of Adecco Human Capital Solutions, a division of Adecco SA of Glattbrugg, Switzerland, is an attempt to answer that question.

Mr. Harrison's contends that an ethical culture is the result of many small, and sometimes large, gestures made over a long period of time, with the driving force coming from the top.

"Being decent isn't about being nice... or spending more money-- it's about treating people fairly," Harrison claims. He also believes that good role models at the top have certain common traits. Those Harrison acknowledges as outstanding role models are Colgate-Palmolive Co. chairman Reuben Mark, Nucor Corp.'s former CEO Kenneth Iverson (who died in 2002), Campbell Soup Co. president and CEO Douglas R. Conant, Southwest Airlines Co. chairman Herbert Kelleher, and Dial Corp.'s former president and CEO, Herbert Baum. 

These five leaders exhibit what Harrison calls a high level of "moral intelligence," which is marked by humility and honesty during both good times and bad.

If employers can pay attention to the issues that matter to their employees, "like finding some kind of fulfillment in the job they come in to day after day...then they're on their way to creating a culture of decency which is critical to attracting, retaining and engaging employees."

The Superman General Counsel

Behavioral science is not often invoked in the halls of law departments, but maybe it should be.  Two recent articles highlight the importance to a GC's success of understanding why people think and act as they do.

General counsel are in the position of having to reconcile two jobs: being both a business partner in the management of the company's business and the guardian of the company's integrity.  One aspect of their work requires creativity, risk-taking and far-sightedness.  The other requires careful scrutiny of every corporate action in the short and long term for potential regulatory, liability and just plain reputation pitfalls.  Achieving high productivity with high integrity might strain even Superman's talents.

An article in Corporate Counsel by Ben W. Heineman Jr, former GE senior vice president-general counsel, entitled "How GCs Can Avoid Being Caught in the Middle" recites some of the recent scandals that attest to how difficult that balancing act can be:  the fraudulent financial practices at Enron, the pretexting at Hewlett-Packard Corp, and the wave of options backdating.

Perhaps what chilled GCs to the bone most recently were the guilty pleas by Purdue Pharma L.P., its president, GC and former chief medical officer to misleading the public about the drug OxyContin's risk of addiction.  They have agreed to pay a total of $634.5 million in fines.  Rather than relaying focus group concern about potential for abuse, Purdue Pharma gave false information to its sales representatives that the drug was less addictive than other painkillers.

Heineman mentions a number of attributes that can help GCs successfully straddle their two roles.   Vis-a-vis the other corporate managers, the GC must have the ability to stand his/her ground on clear illegalities and to make sure he/she has enough time to assess those situations that are not clear cut.  And GCs must be able to take those stands in the pressure-filled environment of a board meeting where the CEO is likely to be a ferocious skeptic and many board members will side with the CEO.  See our July 18, 2007 entry on Promoting an Effective Board about the importance of personal attributes in good decision-making.

The Texas Lawyer article "It's All in Your Head:  Cognitive Theory Can Help GCs Lead Organizations to Better Decisions" by Michael Maslanka, a managing partner at Ford & Harrison in Dallas, contends that a GC's real power--the ability to influence decisions-- comes from understanding the way people think, which requires tapping into cognitive science.

Maslanka lists a number of biases that people in general and managers specifically can suffer from if they aren't on the alert: 

  • The bias that there is only one cause when something bad happens
  • The tendency to focus on conclusions and generalities instead of specifics
  • Hardwiring that makes it easy to believe accusations and hard to disbelieve them
  •  A confirmation bias, which only admits facts that support our beliefs (and further reinforces our belief bias)
  • Overreliance on what is first heard
  • Resistance to change that can only be overcome with practice, practice, practice

Maslanka encourages GCs to be open to all possibilities and to question rather than dictate.  Heineman also points out the importance of maintaining within the law department a culture that welcomes, even requires, lawyers to raise concerns about financial, legal, ethical or reputational issues.  We refer to this as a "culture of dissent"-- one that invites concerns, follows up on them and does not punish anyone for raising them, but rather praises them.  See our March 16, 2007 entry on the article Handling Conflict and Dissent in Law Practice (and Life).

While it may not be mind reading, being cognitively aware of your own personal attributes and biases, as well as others', can help steer you toward that Superman performance to which all GCs aspire.

 

Banking Our Image

Burnishing an image that is bankable is what every professional tries to do--both for him/herself individually and for the profession as well.  Doctors take bed-side manners lessons, the NYPD are being instructed on common courtesies.  What about lawyers?  What do they do to bring out the gold?

From the looks of things, not much.

A Harris Poll annually asks the question “Who would you trust?” about various professions.   Doctors, teachers, scientists, police officers, professors, clergymen and military officers routinely end up at the top of the trust chart, garnering more than 70% of the votes. 

Lawyers are usually found settled at the bottom, where members of Congress, pollsters, trade union leaders and stockbrokers rank above them with 35% or less of the vote. There, in next-to-last place in 2006, lawyers sport 27% trustworthiness, one notch above the bottom-feeding actors, over whom lawyers are able to boast a one percentile advantage.

The recent portrayals of lawyers in mass media are evidence of how low the reputations of lawyers are sinking. Long gone is Perry Mason reassuring the wronged and bringing evildoers to justice.   Last season’s TV series about a lawyer was titled “The Shark,” which pretty much says it all from an image standpoint.  That series has been one-upped by this summer’s arrival of a lawyer drama entitled “Damages,” starring Glenn Close, who will always be remembered as one of our generation’s scariest persona—the man-eating, marriage-dashing, family unfriendly “Fatal Attraction” psycho.  Legal advice, anyone?

Then there are the real-life reports that manage to make these fictional scenarios look reasonable:  the senior partner who throws law books at associates, the criminal defense attorney found naked with an adolescent in the court's conference room, the litigator who admitted to altering documents in a consumer class action, the tax lawyer who bribed IRS officials to accept tax positions, the partner whose language in court was so egregious the head of the firm flew in to apologize. 

Into this combustible scenario comes the question of whether law firms should be able to advertise in mass media, as do other professions, and if so, what they should be able to say. 

The recent back and forth in New York, New Jersey and other states about whether law firms should be allowed to tout their "Super Lawyers" or other commercially recognized stars on their websites, use testimonials from prior or existing clients in their marketing materials, use unidentified actors in their ad campaigns or even send emails that don't clearly identify themselves as "soliciting" are no doubt reflections of the growing role that image marketing is likely to play for lawyers. 

A recent article in the New York Times heralded the arrival of professional-looking canned law firm television commercials that are affordable to "the smaller, more local firms for whom the most important thing is the message to their communities," according to Spot Runner, who is working together with Martindale-Hubbell to market the commercials.  While that approach may benefit a local firm whose clients and potential clients are individuals in the community, as the article notes, it is unlikely to be useful to large corporate firms.  And the unseemly associations with ambulance chasing still prevail.

So, other than mass advertising, how do we burnish our image in this modern era? 

Perhaps in the most old-fashioned of ways:  by building relationships, one at a time.  It does not produce a quick fix or an instant cache.  It takes time-- both immediately and over the long run, so it's not very efficient.  But building individual relationships is effective.

Clients say repeatedly that the quality they most want in their counsel is trustworthiness.  Not just someone who gets the answer right.  Or gets the answer right enough for the price.  But someone who the client can count on to look out for their best interests, provide honest feedback and reliably follow through. 

It's an image worth the investment.

 

Developing a Risk Conscious Firm Culture

Ronda Muir will be making a presentation on managing the people risks that arise in law firms at a conference for Managing Partners in Chicago on Thursday, June 21. Sponsored by ARK Group, the conference, entitled “Developing a Risk Conscious Culture in Your Firm,” explores the relationship and interdependence of ethics, risk management and legal compliance.

What's Morals Got To Do With It?

Should lawyers “do the right thing” in addition to “being right”?  A favorite cartoon depicts two lawyers at a desk evidently discussing strategy. One lawyer says to the other: “Is it right?… Is it fair?  Get a grip, Carlton—we’re a law firm!”

Integrity

In an interesting study issued recently, the Consortium for Research on Emotional Intelligence found that financial advisors who demonstrated high levels of “moral and emotional competency” nearly doubled the S&P 500 return on their client portfolios in the years 2001 through 2004, delivering an average return of 25%. 

Of the various attributes studied, integrity had the single strongest impact on client returns. “Results showed that Integrity was the key behavioral competency which predicted the most positive returns for clients." 

Integrity was defined as acting consistently with what one says is important, in other words “walking the talk.”  An example was an advisor willing to give up a lucrative client rather than compromise his/her principles, such as ultimately recommending that a client seek advice from another advisor because the advisor could not in good conscience implement a plan believed to put the client at significant financial risk.

Ethics

In the process of updating his 1996 book The Honest Hour: The Ethics of Time-Based Billing by Attorneys, William George Ross determined that lawyers in 2007 are significantly more likely than a decade ago to pad their bills with unnecessary hours or bill two clients for the same time. Almost 55% (up from 40%) of associates and partners surveyed report performing unnecessary work, and 35% (up from 23%) say they bill two clients for the same time. The number of lawyers who believe double billing is ethical also rose from 35% in 1996 to 48%, and more than two-thirds of lawyers say they have specific knowledge of bill-padding by others.   

Morals

In a May 2, 2007 Law.com article entitled “From Moral Partners to a Moral Firm”, Gregory S. Gallopoulos, the managing partner of Jenner & Block, suggests that the integrated enterprise model that many successful law firms are adopting now, in which strategy and vision belong to the entity as a whole rather than to individual partners, risks producing a vacuum in the area of firm morals. 

“Under the entity model, as individual attorneys cede decision-making authority to the firm, including authority for decisions regarding professional responsibility and ethical behavior, they tend to renounce (at least implicitly) personal responsibility for moral decision making. Law firms as entities, however, have no inherent mechanism for replacing personal moral responsibility with institutional moral responsibility. In consequence, morality can fall through the cracks, allowing corruption to ooze into the enterprise.“

Continue Reading...

Raves for Muir Presentation on Risk Management

Ronda Muir, Esq., Senior Consultant at Robin Rolfe Resources, was featured as a speaker at a conference on Risk Management for the Modern Law Firm, sponsored by ARK Group. The conference was held in Chicago on April 17 and 18, 2007. 

Muir's presentation was on the risks that arise in managing a law firm's greatest asset: its people. She pointed out the ways in which lawyers are different from all other professionals, the challenges and risks that those differences pose to management, and how to use those differences to make good lawyers better. 

Participants raved:

  • "Innovative, new information!"
  • "Excellent, new material of real value.  I would love even more detail and time on this topic."
  • "Great presentation!" 
  • "Great speaker!  Knowledgeable and forward thinking."

ARK Group also lauded Muir's participation: "Your involvement was pivotal to the success of the program… and brought a fresh perspective to the agenda."  

Teaching the Business of Law

Temple University’s Beasley School of Law is including a course on law firm management in its curriculum for third–year law students starting this past month.

Called "Legal, Professional and Business Aspects of Law Practice," the class is divided into four sections:  law firm economics, time management, client development, and ethics related to the business of firms.  Some of the topics included are fee structures, accounting, partnership and tax law as related to firms, firm organization, and referrals.

The textbook for the course was written by a professor who teaches a similar course at Pace University. Stephen J. Friedman, dean of Pace University School of Law, and formerly commissioner of the SEC, general counsel of The Equitable and E.F. Hutton, and co-chairman of the corporate department at Debevoise & Plimpton, finds law graduates to be "ill-equipped to be effective beginning lawyers" and wants curriculum at law schools to be "more purposeful, more focused and more integrated." 

And evidently particularly more attuned to the challenges of effective legal practice and good law firm management.

"Resolving Clients' Dilemmas"

Harvard Law School’s goal in its revised curriculum this year is to teach young lawyers how to “resolve client dilemmas.” How exactly is that done successfully in the modern practice of law? By calculating dollars won in the final judgment, for example? By assessing the investment of time and energy versus the payoff? 

Everyone has by now heard of the prevailing sentiment that no one wins in litigation any more. If that statement is even somewhat true, what is the course to resolving a client’s dilemma in a way that will be viewed as successful? 

The mediation industry has arisen almost entirely as a reaction to the mistrust of lawyers and what is perceived as their conflict-escalating processes. Even arbitration is becoming viewed as saddled with some of the time-consuming, rigid aspects of litigation, and in-house counsel are moving towards mediation, or at least including mediation in their bag of tools. Paul Adams, Associate General Counsel at the Gap, finds mediation “a very, very powerful process with a strong emotional component. It’s informal and the plaintiff feels like he’s controlling what’s happening.” He also notes that it allows for more creative resolutions.

Thane Rosenbaum argues in his book The Myth of Moral Justice: Why Our Legal System Fails to Do What’s Right (HarperCollins) that what clients want most is an emotional relief--to feel that their position has been understood and acknowledged. "Clients of all stripes walk out of the courtroom saying 'That’s it? I didn’t even get to say what I think?'" Lawyers, he argues, are limited by their legal vision—rather than just channeling their clients’ anger through a legal claim, such as breach of contract, which may not really address the client’s underlying grievance, lawyers should be listening to and acknowledging the hurt, and be able to offer nontraditional ways for that hurt to be addressed. While Rosenbaum’s claim that our current system of justice is morally deficient does not seem to have been challenged, his suggestions as to how to change it have been met with charges of being naive and impractical.

Web.com’s Corporate Counsel Jonathan B. Wilson’s book Out of Balance: Prescriptions for Reforming the American Litigation System takes a less radical approach to reforming how we address our clients’ dilemmas, including advocating for arbitration, mediation and a number of other alternatives.

Thomas Barton, who teaches creative problem solving and preventive law at The Center for Creative Problem Solving at California Western School of Law in San Diego, extols creative legal problem solving not only for the satisfaction it gives the client, but also for the effect it has on the lawyer involved: it feels great to do creative work that really resolves the dilemma. See www.cwsl.edu/cps According to Barton, there are two major steps involved: expanding the context of the problem so that all the dimensions are exposed, and building a larger repertoire for resolution, which includes being open to whatever constitutes “success” in the client’s mind.

Malcolm Gladwell’s book Blink cites research that shows that doctors who are viewed as a valued resource and are able to build a trusted relationship with their patients are not sued –even if they have committed malpractice. While admittedly a subjective standard, shouldn’t lawyers be aiming for that same type of relationship with their clients? The one that makes them “right” no matter what their advice is?