Hello everyone. First, a big thank you to Law Shucks for pro
viding this exciting weekly platform. Hiring Partner’s office has been providing advice for about a year and a half now. Law Shucks has done a fabulous job of tracking the constantly evolving trends in law firms. In an era where so much is changing in unprecedented ways, I think it is great to have such a solid source of information.
Moving to this week’s topic: I’ve heard a lot of complaints recently that, after thousands of layoffs at law firms, and the many lawyers and staff out on the street, firms releasing revenue information are showing strong profits per partner (“PPP”) and revenues.
After the jump, HP lays it straight.
Some people seem not to understand this — as in, if firms were doing poorly and had to lay off people, why are profits up or just a bit lower?
Other people just find it unjust that people lost their jobs, yet big firm partners could still be making loads of dough. Well, I hate to tell you this, but there’s nothing surprising about this scenario.
I don’t necessarily agree, but Gordon Gekko once said: “Greed – for lack of a better word, is Good.” (I think that is what he said).
Well, Hiring Partner has, and continues to, say: ”These people are NOT YOUR FRIENDS.”
Remember, law is a business. Law firms need to be profitable. If they are not, many “star” partners will get frustrated (often quickly) and move on. That leaves the firm with less business – since rainmakers left – and others could follow.
The firms can’t survive without these go-getters. Firms needs FINDERS more than anything. Firms can always find minders and grinders [ed: coming soon!]. We’ve seen situations like this lead to the fall of several firms — see, e.g., Heller. Financial covenants in loan documents for big firms may often trigger defaults when a certain percentage of the partnership leaves.
The key is to keep the revenues and profits up and to keep the rainmakers happy. Rainmakers are happy with, well, money. Does this all sound greedy, well, a little. But, you have to remember, if there’s no law firm, then none of the employees have jobs. That’s worse, of course, than some layoffs.
Now, getting back to layoffs. Lawyers are employees. Typically, non-partners are “at will.” Even though you may love working with Partner Joe and Partner Joe may think you are a bright attorney, Partner Joe can’t necessarily protect you. No, Partner Joe will not threaten to leave, and then leave, if you are fired. That is not happening.
A wise more senior attorney once told me: ”no one here is indispensable, and if you think you are, you are fooling yourself.” Do not get emotionally attached to your job. It is a job. Yes, it is a profession and you should do great work, learn a lot, grow your professional and personal network — but, remember LLP does not stand for loving, laughing, parents.
Even if you had a knock em out of the park year in 2009 (somehow), if things start tanking in 2010, you could very well be in trouble. Because, as another wise person once told me, “it’s: what have you done for us LATELY?” Firm people easily forget sacrifices and results. The analysis is frequently based on very current data without a significant consideration of your “precedent.” I’m sorry this is so harsh — in fact, HP’s spouse just read over my shoulder and said it was too harsh — but I think most of the readers who have been around firms for a while would agree.
I’ve been emotionally attached to a firm. It’s not a good thing. It is a hard lesson to learn that while you spend most of your waking hours with, and aiming to please these people, they could easily cast you off. But, you have to remember that you’ve got family and friends. Do not look to the firms for comfort or even security. Make the most of your time there. Get great training. Listen and learn from people who can really teach you.
At the end of the day, keep looking out for you.
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