The Pro Bono Angle

At a time of some idling in the legal industry, a good use of lawyer time may be to spiff up the old pro bono program.  Davis Polk & Wardwell recently announced the addition of Ronnie Abrams, former Manhattan US Attorney's Office prosecutor and daughter of renowned First Amendment litigator Floyd Abrams, as its first Special Counsel for Pro Bono.  She succeeds a former associate of the firm who oversaw the program and is being made a partner.  For a firm with historically good standing on the American Lawyer's pro bono A-list, one might wonder what prompted the star power addition.

"[Pro bono] is becoming much more important in terms of client relations, recruitment and marketing," says Esther F. Larfent, president of the Pro Bono Institute, which, since 1995, has urged large law firms to commit 3-5% of lawyer hours to pro bono work.  Hiring someone of stature to oversee the pro bono effort "is a very fast growing trend, there's no question."  And having an inhouse partner can fill a talent void at firms that have historically relied on public organizations to oversee lawyer work.

As we all know, pro bono has been around for decades.  Pro bono was what firms long offered to do for pet projects of friends and clients that could also fill young lawyers' time when real work got a little slow.

It has, however, become a much more complicated matter.  Feeding into the equation are various factors:  public perception (falling) of lawyers' civic mindedness; the motivation of many who enter law school to "do good" followed by those same graduates going to big, bad corporate firms and suffering the resultant identity crises; the escalating dissatisfaction of law practitioners and correspondingly escalating attrition rates (perhaps related in part to the previous observation); inspired in part by the expanded transparency that Sarbanes Oxley has imposed on corporations, the increasing client demand (often with teeth) for their law firms to also demonstrate their bone fides in social agenda areas, such as diversity and community service.  There is even the prospect of using pro bono work as a marketing device to tether a firm to a new client or strengthen existing ties.

What Law Firms Are Doing

Some law firms have moved to adopt firm-wide programs that identify them with select non-profits or cause campaigns. Cravath, Swaine & Moore attracted widespread attention a few years ago when it became the primary sponsor of the Urban Assembly School for Law and Justice in Brooklyn, one of 200 small schools that Mayor Michael Bloomberg created to overhaul public education in New York City. Cravath took ownership of this visionary community program, vowing “hands-on” involvement on an “in-school” basis. Throughout the firm, partners, associates and administrative staff work to develop and build an initiative that they believe can lead to real, systemic social change. 

Cravath’s community venture was sufficiently distinctive to merit feature news coverage. According to Stuart C. Ross, partner in ross+price communications, a public relations and marketing services agency that advises professional services firms, “What Cravath did, and how it was reported by the news media, represents an important shift... Clearly the press will cover effective and innovative corporate citizenship, but only if those efforts go well beyond simply writing a check or donating a few hours of legal expertise.”

Skadden had a 38% increase in pro bono hours in 2007 after it assigned Douglas Robinson, a longtime partner devoted to defenses in death penalty cases who was considering early retirement, to become its first pro bono partner. 

What are the Benefits for Law Firms? In addition to the obvious good these programs do for the community and the favorable public relations they can generate, these programs also have a positive impact on a firm’s retention and recruitment effort, producing real bottom-line results.  A study by the Center for Corporate Citizenship at Boston College revealed that 73% of employees involved in volunteering through work said their employers’ support of these initiatives had made them more committed to their jobs.

David Sirota, co-author of The Enthusiastic Employee: How Companies Profit by Giving Workers What They Want (Wharton School Publishing), argues that employees, regardless of industry focus or experience, have three basic goals in their work. First, they want to be treated “equitably,” with competitive pay, benefits, job security and respect. Second, employees want a sense of achievement from work and to feel pride in both their own position and in the organization of which they are a part. And third, employees want to experience camaraderie. As a Cravath partner phrased it, “This [camaraderie] is not mentioned much in our field, but it's key – not only in the sense of having a friend, but working well together as a team. That is a tremendous source of satisfaction for people…. Working with the School for Law and Justice has been great for Cravath. Having one firm-wide project involving the entire staff builds office morale.” 

WilmerHale committed both financial support and a broad range of administrative and in-kind assistance, including active volunteer service, to six community youth and education organizations in Washington D.C. and Boston, which it reports “has made our lawyers and staff part of the fabric of these community organizations.” The firm takes pride in the striking results produced by its Youth and Education Initiative in terms of student morale, student and staff retention, college acceptance rates, child literacy, improved communication skills and community building. And, it reports, “our non-profit partnerships are a rich source of fulfillment—an internal glue that unites lawyers and staff through their volunteer service to inner-city children.”

According to James H. Quigley, CEO of Deloitte & Touche USA, “What we have seen at Deloitte & Touche is that one of the benefits of contributing to the community is that it helps employees develop leadership skills and business acumen. A [recent external] survey [we conducted] revealed a strong link between volunteering and professional success. Among other findings, the data showed that 86% of employed Americans believe volunteering can have a positive impact on their careers and 78% see volunteering as an opportunity to develop business skills, including decision-making, problem-solving and negotiating. Community service matters.”

From a recruiting perspective, both established professionals and young people from Gen X and Y are seeking more than a paycheck. Candidates are increasingly concerned with work/life balance opportunities, the existence and influence of a diversity committee and the extent of a firm’s involvement in the community. 

Fried, Frank, Harris, Shriver & Jacobson, the sole law firm sponsoring the inaugural conference in 2005 of the “Clinton Global Initiative," as the former president called it, had eleven associates participate in serving as personal aides to the heads of state, corporate chiefs and academics from around the world who attended.  As one associate explained, "I wanted to do something with my life besides chasing greenbacks, and so I chose Fried Frank in order to have a balance between serving clients and doing pro bono work." 

In terms of charitable giving and community good, law firms’ pro bono programs have long produced positive returns in the legal and broader community. However, most pro bono efforts are individual donations of time and expertise that don’t necessarily coalesce to make a major impact or project a firm identity, and therefore fail to provide not only the optimal amount of good but also the optimal public relations punch as well. 

"Gross National Happiness"

Shedding additional light on earlier explorations in this forum of the subject of happiness is a new book written by Arthur Brooks that distills mountains of data on the subject.  For one thing, politics and happiness turn out to be clearly correlated.  But the correlation may not be what you think.

For starters, conservatives are happier than liberals.  Much happier.  And they have been for over 35 years.  Almost twice as many who describe themselves as "conservative" or "very conservative" say they are "very happy" (44%) as those who consider themselves "liberal" or "very liberal" (25%).  Brooks ascribes that result to three factors:  conservatives are twice as likely to be married, twice as likely to attend church every week, and more likely to have children.  They are NOT, however, richer than their more liberal, more miserable cohorts.

In fact, when the religious and political data are combined, a fascinating continuum of happiness appears.  Religious conservatives are ten times more likely to report being "very happy" than "not too happy" (50% to 5%).  Secular conservatives and religious liberals are about equally happy in the middle. And secular liberals are as likely to say they are "not too happy" as to say they are "very happy" (22% vs. 22%).  

In addition, extremists on both sides are happier than their more moderate cohorts.  Of those "extremely liberal," 35% say they are very happy (vs. 22% of the ordinary liberals) compared to 48% of extreme conservatives (vs. 43% of their less extreme brethren). Brooks attributes the extremists' happiness to their conviction that they are right, which, he notes, often leads them to conclude that the other side is not merely wrong, but evil.  Evidently two-thirds of America's far left and half of the far right say they dislike not only the other side's ideas, but also the people who hold them!

Brooks finds the determinant underlying happiness to be attitude.  Conservatives are more optimistic, believing that if you work hard and play by the rules, you can succeed.  Liberals, on the other hand, tend to focus on injustice and victimization, encouraging people to feel helpless and aggrieved.

So what does this mean for us hard-working lawyers?  The striking correlation is with the well-established personality trait that lawyers exhibit en masse:  pessimism, which, according to Brooks' analysis, should mean that we are also a less happy lot. 

And indeed we are.  It is now well-documented that lawyers are less happy in their work and their personal lives than nearly every other profession surveyed.

Maybe we should get hitched, join a church and start a brood? 

For a full book review of "Gross National Happiness," go to The Economist.

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.

Muir to Lead IOMA Audio Conference on Associate Compensation: Where Do We Go From Here?

On Thursday, September 21, at 2:00 pm EST, Ronda Muir will lead an audio conference on Associate Compensation: Where Do We Go From Here?  Included in the discussion will be a review of current trends and out-of-the-box ideas for dealing with the impact of escalating associate compensation, how to find the best strategy for your own law firm and overcoming the problems and pitfalls in making that strategy work. 

The audio conference is sponsored by IOMA, which publishes Law Office Management & Administration Report, as well as other legal publications, and provides research, educational and training products to lawyers.  To register, go to www.ioma.com/law_firm_management/

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.

 

Improving UNICEF's Office Dynamics

Ronda Muir, Senior Consultant, led a two and a half day retreat at the end of May for UNICEF's 22-person Armenia office to help them better serve the country's children.  She was engaged to improve teamwork, communication and conflict resolution and to assist in the office's preparation for upcoming reviews and its transitioning to potential structural and policy changes. 

Through the use of individual and team MBTI work style reports, personal conflict style assessments, emotional intelligence tests and a confidential office-wide survey, Muir assisted the team in identifying personal and office strengths and challenges and in determining strategies for improved communication, conflict management and change management.

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. “

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Muir To Conduct Teambuilding Retreat for UNICEF

Ronda Muir, Senior Consultant, has been asked by UNICEF's Armenia office to lead a two and a half day retreat at the end of May to help improve teamwork, communication and conflict resolution. Through the use of individual and team MBTI reports and emotional intelligence assessments, Muir will help the team identify personal and office strengths and challenges and determine strategies for improved communication and conflict management in order to better serve the country's children.

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."  

Women in the Cat? Bird? Board Seat

Women lawyers are not serving in appropriate numbers on corporate boards, bemoans an April 6, 2007 article in the New York Times Business Section.  Evidently only 14.6% of Fortune 500 companies counted a woman among their directors in 2006.

That same year women accounted for 17% of law firm partners (presumably equity partners), 16% of law school deans, 14% of chief legal officers at the Fortune 500 companies, and only 7 of the Fortune 500 CEOs.  So even though some of these statistics are arguably comparing apples and oranges, that board participation percentage doesn't look so out of whack with the rest of US business.

The thrust of the article is that due to the "shortage of qualified candidates for directors," it is a good time for women lawyers to spruce up their board skills, which should include, evidently, how to deal with an "overbearing, pompous and unctuous C.E.O" who rules by intimidation.

Over a year ago there was a well-publicized study finding that the more intelligent (actually, educated) a woman in the US is, the less likely she is to be married.  In response to that study, reporters across the country exerted themselves by castigating those men for not taking smart women as their wives. 

No one interpreted the data to mean that the smarter the woman, the less likely she is to agree to enter into that particular union.

The Times' take on these board room statistics has that same one-sided press spin.  Yes, women could and probably should play a more visible and pervasive role in corporate management, and yes, women lawyers are as smart as those other guys.

But any lawyer with their eyes open over the last few years has seen the publicity, economic and/or legal debacles that perfectly respectable, financially successful corporations have walked into.  From Enron to Morgan Stanley to Hewlett Packard, boards have been unveiled as little more than back-scratching yes men (by a very large margin, we now see) happily unfamiliar with what goes into the sausage, their major qualification for board membership often suspiciously looking like their golf handicap.  

We also all know that Sarbanes-Oxley was passed primarily to get board members such as these to put their John Henrys on many a line that they would much rather not, and for the express purpose to make them personally liable--financially and sometimes also criminally-- for whatever fallout later occurs. 

So yes, there are a "shortage of qualified candidates."  But is this one of those times when being smart means knowing when to say no?

As Marlene Alva, recently retired from Davis Polk, pointed out:  "It is a big-time commitment, and it's liability-fraught...Lawyers are in a better position than others to judge the perils." 

Precisely.

An RFP for Community Involvement, Client Solidarity and Associate Retention

In what may be a first, Intel Corp. issued an RFP last fall to find law firms to partner with their attorneys on community service projects in Silicon Valley.  This year it is expanding the request to three other offices.  The firms it chose in the first round were Baker & McKenzie, which had done work for Intel before, and Nixon Peabody, which had not.  The projects include providing legal services to entrepreneurs, resolving child guardianship disputes and assisting special education students.

This is a win/win situation for everyone.   Working with corporations on specific community service projects can cement law firm relationships with clients and sometimes forge new ones.  The experiences give firms a well  of positive, common accomplishment to draw on and generally improves communications between the two groups.  

Such programs also help satisfy those altruist urges that prompted a large percentage of lawyers to go to law school in the first place.  A recent ABA Young Lawyers survey made it clear how critical the altruistic piece is to Gen X and Y associates.  Almost 65% of those lawyers said they were considering changing careers within the next two years, primarily because of the failure of law to offer ways to make a meaningful social contribution.

In addition, for the corporation, the favorable public relations from these sorts of efforts are invaluable, particularly for those who recruit from the communities involved.  Company employees also benefit from getting to know specific lawyers (and possibly other professionals and staff) in such a positive, us-against-the-world way.

A further enhancement would be for law firms and companies to identify projects that engage not only the lawyers, but other professionals and staff at each organization as well.  Law firms could also be that ones that initiate these joint undertakings, taking on some of the startup burden and sending invitations to specific clients for whom the program is tailored.

 "There's a unique bond that's formed when people team up to make a difference in their community," says Lisa Ellis, founder of Benedict Advisers, a corporate citizenship consultancy in Greenwich, Ct., which also advises law firms and law departments.  "And using the RFP process supports community service through the normal business practices."