Short Term Comfort, Long Term Stagnation

INQUIRY:  I am a well-paid partner receiving steady compensation; however, I observe no growth in my firm's overall business.

There is a general atmosphere of complacency throughout upper management and senior partners.  They are risk-averse and lack motivation to stimulate new streams of business; whether through diversifying the practice areas or exploring ways to generate further business from our existing business contacts; and consequently they are resistant to investing time, energy and funds on projects that will not produce immediate or short term benefits.  In contrast, I am interested in growth, business development and in strategic planning for the future health and wellbeing of the firm but cannot operate without the requisite support.  Should I accept the limitations imposed by those in control of the firm or do I explore opportunities elsewhere?

RESPONSE:

Law firms are an amalgam  of participants who may havevarying professional and business goals and aspirations and unique personal needs and desires.  As the size of the firm increases in size, practice areas and locations the complexities of these issue can increase significantly.  Likewise attorneys at varying stages of their professional and personal may modify or change their professional and personal priorities.  

If the business model and/or direction of your law firm is out of sync with your hopes and desires, analyze whether you (and other likeminded members of the firm) can effect the necessary changes within an acceptable time frame; if not, assess the range of consequences (and their respective likelihoods) of not being able to do so.  Also assess the risks and sacrifices associated with seeking alternative employment.   A controlled and calculated risk coupled with a limited compensation contraction (if any at all) could be a small price to pay for the future benefits of moving forward into a new employment environment that has significant financial and professional opportunity.

I'm a Fish out of Water!

INQUIRY:   Should I leave my current business-oriented law firm and seek a partner-level role at a new firm that focuses on general, professional and product liability litigation defense (which are my areas of practice) where the legal fees are generally paid by insurance carriers? 

I am a partner in a litigation practice within a multi-practice law firm that has a business/commercial focus inclusive of a large transactional component and supporting commercial litigation practice.  The billing rates for most of the firm's practices are higher than the rates that I bill to my clients (generally insurance carriers), so I'm often pressed by management to increase my rates, and to reject work that is deemed by management to be at rates that are incompatible with the firm's strategies. Meanwhile I'm pressed by my clients to reduce my rates, otherwise they may seek out attorneys to service them at lower rates.

RESPONSE:

At the outset, you must ponder the extent of the benefits you are receiving at your current law firm and your job security there.  Some things to consider:

• Do you value the corporate culture and environment?
   
• Are you receiving work from other attorneys in the firm for which you are adequately compensated?
   
• Does the firm provide assistance in marketing your services?
   
• Is there any cross-marketing with the other practice groups that accrues to your benefit?
   
• Do you believe your compensation is in line with other attorneys at your firm who are billing a similar number of hours?
   
• Do you believe that your relationship with the firm is vulnerable? 

If your cumulative and weighted responses (based upon the areas of concern that are most important to you) are negative, you should consider alternatives to your current employment.  Bear in mind that exploring alternatives to your current employment (by considering various business models, cultures, and work environments) helps you crystalize issues and solutions for personal and professional growth and happiness..

The fundamental question:  Where do you see the best value to you now and into the future?

Written by Lawrence D. Dicker, Founder and National Managing Director of The Knight Consulting Group Ltd.

Have a question for our founder?  Send it to
FoundersForum@knightcg.com

Small Fish in a Large Pond!

INQUIRY:   Should I leave my current well-paying employment at a pre-eminent law firm (where I have limited opportunity to develop business and will unlikely be made a partner) and join a less prestigious (but well respected) law firm at a lower base compensation? 

I am a very well paid senior associate at a top-tier law firm.  I bill a huge number of hours each year (the firm owns a good portion of my evenings and weekends).  The billing rates are high and the firm doesn't encourage or support business development by associates. In fact, it resents the business I originate for being time-consuming and only marginally profitable.  Accordingly, I generate a negligible amount of business.  Based upon my observations of other attorneys in the firm with similar profiles to mine, I don't believe that I will be offered partnership at the firm, but even if I am, I would just be servicing the firm's institutional clients and the business originated by other partners.  On the other hand, if I leave to take a position elsewhere, I may have to accept a reduction in compensation, perhaps at a law firm that is not as highly recognized, and I'd have no assurance that I would be made a partner.

RESPONSE:  

Too many attorneys make decisions based upon short-term considerations (such as prestige and base compensation) and fail to place enough value on the potential opportunity another firm can provide in nurturing and encouraging the growth of its attorneys' business and client bases and in incentivizing the attorneys for business development and origination. 

Quality of life (i.e. fewer billable hours, work/life balance, and a collegial work environment) has definite value and should be given due consideration. 

Lastly, but of greatest importance - the actual work should be interesting, stimulating, and motivating for you. 

When you place due emphasis on these important factors, a decision on what to do should be less daunting.

Written by Lawrence D. Dicker, Founder and National Managing Director of The Knight Consulting Group Ltd.

Have a question for our founder?  Send it to
FoundersForum@knightcg.com

Something Different, Something Gained!

INQUIRY:   I am a partner in a law firm and my practice area is within the core of the firm's practice. Should I consider moving to another law firm in which my practice is outside of its core practice areas, but has a synergy with these practice areas for business development? 

RESPONSE:

Consider whether or not your firm is inhibiting the growth of your practice in the following ways:

• you and your partners are not actually on the same team, but are  competitors for the same business
• you are often prohibited from accepting new clients due to conflicts of interest
• your billing rates are impacted by the rates charged by other members of the firm
• there is no market strategy to enhance your business
• you lack a sense of individuality and feel you are merely a cog in the vast machinery of a firm in which you lack sufficient standing

If you feel that any of these situations apply to you, then you might be better served in a firm where you have a leadership role within your practice area, where you provide a component that is different yet compatible with the firm's other practices, and where a strategy can be developed to market and cross-market your services.

Written by Lawrence D. Dicker, Founder and National Managing Director of The Knight Consulting Group Ltd.

Have a question for our founder?  Send it to
FoundersForum@knightcg.com

The Shoe May Be Too Small!

INQUIRY:   I am a partner in a one-location law firm, my client base includes several clients with multi-state businesses, and I have developed an expertise and reputation within a particular niche industry.  Should I consider moving to a multi-state or national firm?

RESPONSE:

Consider whether or not increasing your geographical footprint will put you in a position to offer services to these clients in locations that you do not currently service. 

Also consider whether your unique knowledge, skill, and reputation within an industry can serve as a basis for attracting new clients whose needs must be serviced outside of your existing office location. 

After considering these issues you could determine that your practice is being confined unnecessarily by the geographical limitations of your current law firm.

Written by Lawrence D. Dicker, Founder and National Managing Director of The Knight Consulting Group Ltd.

Have a question for our founder?  Send it to
FoundersForum@knightcg.com

Well Compensated, Why Leave?

INQUIRY:   I am a partner in a law firm, my practice is self-sustaining, and I am well compensated.  Why should I consider moving to another law firm? 

RESPONSE:

Being "compensated well" is a relative term. You must evaluate whether or not you're being paid well relative to the benefits and services provided by the firm.

If the firm is merely providing you with an office, phone, computer service, and quantifiable professional and support staff assistance, then you need to evaluate the cost of such services and then determine if your compensation is reasonably in line with the residual amounts remaining after deduction of the costs associated with the operation of your practice. 

If the firm provides a brand identity, provides marketing assistance in attracting clients, or is a source of referral business to your practice, then you should analyze the value of such a brand and/or referral business. 

You may ultimately conclude that, in the abstract, your compensation is substantial, yet when you evaluate what you receive in return for what you provide, the revenue that flows to you is unjustifiably inadequate.

Written by Lawrence D. Dicker, Founder and National Managing Director of The Knight Consulting Group Ltd.

Have a question for our founder?  Send it to
FoundersForum@knightcg.com