Law Firm Management

There was a time when electronic services were supposed to replace books and lower costs. They've done neither. Instead, fees continue to rise each year — well beyond the rate of inflation, say law firm librarians (licensing fees are typically covered by confidentiality agreements). Surveyed librarians expressed dissatisfaction on pricing issues especially with the big-two online providers, Reed Elsevier Plc's LexisNexis and Thomson Corp.'s Westlaw.

Just as corruption saps the entire GDP of many countries, it can destroy the profitability of a firm's overseas (or, for that matter, overall) business. My 'Confronting Corrupt Practices' article in A&FP's June 2007 edition surveyed some aspects of anticorruption training that law firms should consider.

Twenty-two years ago, I received a call from a headhunter looking to hire a Controller for Kirkpatrick, Lockhart, Johnson & Hutchison, a midsize and growing law firm with about 150 lawyers.

Many firms have instituted elaborate machinery for their recruiting (entry-level and lateral) and orientation, but there is a long way to go toward stellar results regarding orienting, integrating, and retaining those hard-won recruits. Some of the difficulties are generational; others can be traced to the traditions of partnership culture, which often lacks openness about management and how the firm handles the business of law.

'Disconnect Between In-House and Outside Counsel is a continuation of the discussion of client expectations and the disconnect that often occurs. And although the outside attorneys should be pursuing how inside-counsel actually think, inside counsel should make an effort to impart this information without waiting to be asked.

In-house counsel often complain to each other about what they are not getting from their law firms as promised during the proposal and romancing phase. And although outside counsel may be providing services "as usual", and don't challenge themselves to review their promises to new clients, the insiders should hold their feet to the fire. What commitments did the law firm make to you and what do you need to do to remind them that'

Why do so many lawyers know so little about the economics of practicing their profession? Not surprisingly, it's because their law school education did not address any of the business aspects of practicing law. So most young lawyers join law firms with little understanding of how they operate and without a clue as to what it takes to make a law practice successful and profitable. Many lawyers, especially those who join large firms, manage never to master these concepts ' and in many cases work hard at avoiding them.

Keep it Simple. It sounds basic and obvious, but it is easy to complicate even the most important things. And how many things are more important than growing your practice? You certainly can be a good lawyer and provide technical excellence, but how will that help you achieve your goals for financial success and job security? Will it enable you to achieve the professional status you desire? Will you command sufficient respect within your firm and among your peers?