Lateral Attorney Report

The Boutique - An Excellent Alternative for a Labor and Employment Partner

2009-01-13T15:08:00.000-08:00

I have had the privilege of working with a number of labor and employment partners who are seeking to depart general practice firms for a variety of reasons. Some of the reasons partners are leaving include: demanding billing rate structures, conflicts and practice profitability pressures. Labor and employment boutiques offer excellent alternatives for partners seeking to leave general practice firms.

Rate Structures. Often labor and employment partners in the largest general practice firms not only feel the pressure to increase their rates for long-term clients, but also to dramatically increase their billable hours and books of business. In some cases, this is doable if the firm at which they are practicing has a strong (and busy) corporate client base, and provides excellent cross-selling opportunities internally. Unfortunately, not all firms are as successful in encouraging cross-selling as others and in a depressed economy where corporate departments may be suffering, cross-selling to corporate clients becomes a significant hurdle for many labor and employment partners. Since labor and employment boutiques can often be more accommodating to lower billing rate structures and alternative rate arrangements, they are excellent alternatives to general practice firms.

Conflicts. As general practice firms continue to grow and expand, conflicts become more and more prominent for partners who may be interested in bringing in new clients with labor and employment needs. It is unlikely that a labor and employment partner will face the same types of conflicts situations in a boutique environment.

Practice Profitability Pressures. With increased billing rate pressures and firms focusing on the bottom line, many labor and employment partners with slightly lower billing rate structures are under tremendous pressure at general practice firms which typically don’t view labor and employment practices as huge profit centers. Thus, the national labor and employment boutique environment can present a very healthy alternative for a partner experiencing these pressures.

If you’re a labor and employment partner facing these obstacles at a general practice firm, think about the boutique environment as an alternative. Even in this challenging economic environment, opportunities abound!

January Expectations

2009-01-07T12:11:00.000-08:00

I received a number of calls this week from candidates wondering whether January is a good month to look for a job. The answer to that question is two-fold.

First, yes, traditionally, January is a very good month to look for a job. By the second week of January, firms usually let recruiters know about new openings for the spring, firms have re-set their budgets, and firms have recommitted to the hiring process from January through May. Thus, in a normal year, the time period from the second week of January through the fourth week of January is very busy with firm meetings and emails letting us know about hiring needs. We love this time of the year.

Having said this, do we expect to see this for 2009? We hope so! With 2008 now safely put to bed, we are hopeful that our client firms are reinvigorated for the New Year. Many have espoused the belief that while 2008 was a year of "cleaning house," 2009 will be a year of "getting things right" (and better leveraged). Thus, there is a definite energy brewing. Whether it yields the kind of openings/searches we typically experience in January remains to be seen. It certainly will not be to the degree we were seeing in 2006/2007, but I expect that 2009 will bring a fresh hiring eye to the picture (and a more seasoned eye). All of this should yield new opportunities as we carefully navigate the first few days of the New Year. Thus, in response to the query -- Yes, January, is still a good time to look for a job, and we are hopeful that as the year progresses, the number of searches available to candidates will gain size and momentum in 2009.

A Bird in the Hand?

2009-01-06T11:25:00.000-08:00

As a result of the recession, a number of national firms have frozen salaries into 2009. Although it's not terribly hard to understand why a firm would do that, I have heard one law firm suggest that freezing salaries would allow a firm to be in better position to offer bonuses at year end in 2009. Which I suppose begs the question or whether (as an associate) you'd rather get, say, $15K more in salary over the course of 2009 or have a better chance at getting a bonus, which could (in a market like New York) be significantly more than that amount.

Many of us are quite risk averse, so I'm not sure that a more concrete bonus a year from now softens the blow. Bonuses are usually quite discretionary, so it seems hard to drill down on what the exact benefit is in this situation. Having said that, maybe it's wise to make sure to hold enough in reserve to reward those associates who go the extra mile in 2009. If you had to pick, which would you give up?

Timing is Everything

2009-01-05T09:43:00.000-08:00

For many of you looking for jobs right now, you would do well to understand the "timing" aspect of 2009. Traditionally (in a "normal" economic climate), January through May is the busiest hiring season. The season will slump from May through August and then re-activate the final week of August through the second week of December. This latter period is the second most active hiring season. Thus, when looking at the year as a collective whole, you have two major hiring periods -- now (through May) and August 25 through Dec. 20th.

What does this mean for you right now? It means that over the next two weeks in January, firms will be closing out old jobs from 2008 and activating new jobs. By the end of January, 2008, therefore, we should have a clear picture of hiring for the winter season.

Our fingers are crossed that such picture will be a good one. In light of this fact, now is the time to call your recruiter and ascertain whether something new might be on the horizon for you in 2009. He/she will have a good idea whether such will be the case shortly. If so, fabulous, you can get to work submitting to new opportunities. If not (and the picture of 2009 seems the same as end-of-year 2008), then at least you will know that now may be the time to pursue other career options or think outside the box a bit more (relative to geographic regions, for example) in order to generate something for yourself in 2009. It's knowledge worth having and a good way to begin the New Year with a pro-active stance and realistic expectations for yourself and your career.

What's Hot (and what's not) for Firms and Beyond

2008-12-17T00:00:00.000-08:00

This was a year for the record books. "Change" was the word of the day for over 300 days in a row. The past eleven and a half months were a lesson in the contrast between abysmal and exhilarating. The year is drawing to a close at last and as we bid adieu to 2008, we welcome the dawn of a new era in our collective history. It is a fitting time for an inventory of what is "out" and what is "in" as we begin 2009. I am crossing my fingers like everyone else that the next Baby New Year is a bundle of joy and a lot less colicky than 2008. I am tempted to take off my shoes and toss them at the back of the departing year’s head! But that would be so 2008 of me..... Here’s the list:

*OUT*	IN
The seven deadly sins: Pride, Gluttony, Lust, Anger, Greed, and Sloth	The seven heavenly virtues: Prudence, Justice, Temperance, Courage, Faith, Hope, and Love
Law firm parking garages filled with luxury cars and SUV’s	Riding the bus, zip cars, and bicycles
Fourteen hour days at the office in a suit	Twelve hour days working from home in your gym clothes (minus the two hour commute)
Premium billing rates	Competitive billing rates
Paper holiday cards and gift baskets	E-cards and charitable donations
Shopping at Neiman Marcus and Saks Fifth Avenue	Shopping at Target, and Walmart
General Practice Areas	Niche Practice Areas
Large Raises and Fat Bonuses	Having a Job
Suspenders with Bulls on them	Corporate executives outside Starbuck’s begging for lattes
Bashing the President	Supporting the President
McMansions in the suburbs	Downtown condos in revitalized neighborhoods
Expensive vacations	Local site seeing and public golf courses
Dumping toxic waste	Picking up trash
Worshiping Money	Conversations with God
Partisan Division	Cross Party Cooperation
The crush of large firms merging into “mega” firms	Mid-size specialty or boutique spin-offs
Looking Out for Number One	Teamwork and Altruism
Fast talking, bet the farm deals	Fiscal responsibility and corporate discipline
Consumer Debt	Savings Accounts
2008	2009

Is it New Year’s Eve yet? Best Wishes for the holidays and an abundant and enjoyable 2009.

2008-12-15T15:31:00.000-08:00

“Pay to Play” in Politics; “Pay to Stay” in Law Firms

The pay-in for equity partners at DLA can be as much as $150,000, according to an article published in The National Law Journal today. Could it be the new trend for similarly positioned globalized law firms? Here’s a link to the article discussing the likelihood that non-equity status may be a thing of the past and “pay to stay” may be the wave of the future: http://http://www.law.com/jsp/nlj/PubArticleNLJ.jsp?id=1202426727867

Choosing The Small Versus The Large Firm

2008-12-15T13:56:00.001-08:00

The recent Madoff ponzi scheme, the similar ponzi scheme of the Dreier law firm and the complete meltdown of Blagojevich, the Governor of Illinois, have all got me thinking.

All over our country there are countless people who are trying to be something they are not. They want more money because they feel this will somehow do something more for their lives.

What does this mean for your legal career?

In my years of recruiting I have seen so many attorneys through good careers away by only being concerned with the money. Most often the highest paying firms often offer attorneys the least chance for partnership. Time and time again, however, most attorneys go with the short term prospect of more money over the possibility of making partner and winding up in a stable law firm.

The way most attorneys think is very confusing to me. The instability that many expose themselves to is very confusing to me. I think that the most intelligent thing attorneys can do in the present day economy is to find a law firm where they are going to be secure.

Several years ago I was interviewing with a law firm in Los Angeles that paid below market rate. I liked the people in the firm and it seemed like a very nice place to work. The partner in the law firm who was the name partner told me while he was interviewing me that I would never make as much money in the law firm as at large law firms, but that I would always have a job. He told me about the stability of the firm and its partners and that this was a very smart place for me to be practicing law.

I chose not to work at this firm and instead chose recruiting. That was almost a decade ago.

Since that decade has passed the law firm I was working at when I interviewed with the small firm in Los Angeles has gained and lost so many partners I do not think I know anyone there anymore. Many of the partners from this firm are no longer practicing law. In addition, I have watched people that I know early in my career work at a succession of 7-8 jobs in different law firms during this same period of time.

This small firm that I interviewed is still there. With one exception, each of the seven partners who interviewed me when I interviewed with the firm are still there. The firm is still chugging along and the people who work there seem secure and happy. When I got married several years ago I even hired this firm to do my will and some other formalities. The people there are all happy.

The attorneys in this firm still make a bit less money. Who care, though? They are happy and have security and are not playing crazy games with their careers. I really respect this firm and its attorneys. Had I chosen to work in that firm instead of recruiting, I would respect myself for choosing that firm.

You need to be careful with your career and the choices you make.

Why Wall Street Always Blows It

2008-12-12T10:22:00.000-08:00

A cautionary tale for anyone who lives to see the next financial bubble:
Why financial bubbles form; why they will always form; why everyone is to blame for the housing bubble (real estate brokers who encouraged individuals to buy at high prices, mortgage brokers who sold adjustable rate mortgages that would eventually reset, Alan Greenspan who kept interest rates low for too long, home buyers who bought homes they could not afford, the regulators who were asleep at the switch and Wall Street types who sold securities which were backed by risky mortgages) and how all parties acted rationally.

Fewer New Partners = Senior Associate Logjam

2008-12-11T16:41:00.000-08:00

As firms go through the annual pomp and circumstance of announcing a new class of partners for 2009, one trend is unmistakable -- for most firms, the honor roll is getting shorter. Although the press releases and tombstone ads are just starting to trickle out, even a quick perusal of the most recent announcements reveals a fairly drastic reduction in new partner promotions.

For example, in recent days, Weil Gotschal announced a class of seven new partners this year, compared with 20 new partners last year. Similarly, McDermott Will & Emery anointed 27 new partners this year, compared with 42 last year. Wilson Sonsini added eight new partners for 2009, five fewer than the 13 it promoted in 2008. Likewise, only 10 new partners were added to Cleary Gottlieb's ranks, just more than half of the firm's 19 new partners in 2009. (See a chart of some of the firms with California offices that have announced new partners here).

To be fair, others are holding relatively steady, or even increasing modestly. For example, Gibson Dunn added 13 new partners this year, compared with 14 last year. Dorsey & Whitney remained steady for 2009 with 17 new partners, matching the same number elevated to the partnership for 2008. Andrews Kurth actually increased the number of partner elevations from five in 2008 to seven in 2009, as did Latham & Watkins (just barely), which elevated 30 new partners in 2009 compared with 29 in 2008.

But for most of the firms that have announced their numbers, the trend seems to be pointing to a reduction in new partner promotions of 35-40% from 2008 levels.

Unfortunately, a reduction in the number of new partners also means a corresponding glut of senior associates, all of whom will now rejoin an ever-increasing logjam of partner candidates for the next go around. While in the past senior associates might have been able to threaten their firm with a departure if they weren't made partner, in these wavering economic times many firms may actually welcome the attrition. So what should you do if you fall into the ranks of recently unsuccessful partner candidates?

For most, the best strategy right now is to hunker down and make sure to continue to keep busy until economic times improve and you can make a move (if that is what you decide to do). While it is perfectly natural to feel angry, upset, and betrayed, you simply cannot afford to disengage in this economy. Unfortunately, while your anger boils over and you endlessly re-hash the litany of broken promises, your workload may start to decrease as the firm shifts new matters to eager up-and-coming associates who may not have enough on their plates.

As hard as it may be, you need to make sure to do everything you can to remain motivated and focused at work, and to demonstrate that you continue to be an integral part of the team. Making yourself appear indispensable will quickly lead others to believe that you are indispensable, which can only raise your profile and your value to the partners observing you. If you decide to stick it out for another year, your hard work, professionalism, and focus may just be the ticket to being promoted next year. On the other hand, if you decide to move on, you will have a positive mindset, higher self-esteem, and excellent references to provide to your future employers.

In contrast, for those few senior associates with a book of portable business, now could be an excellent time to make a move if your firm didn't show you the love you deserve. Many firms are stumbling over themselves to find more work, and although your business may not have been enough to get your current firm to promote you, it may be more than enough for another firm that is eager to get work in the door. Investigate smaller, regional firms and offices, most of which are eager to welcome new business generators, even if your book isn't enough to get you recognized at BigLaw. You may be pleasantly surprised at the level of interest shown by these smaller firms, which not only can offer you partnership, but may also offer a more stable and satisfying future.

How to Have a Happy Holiday in a Miserable Economy

2008-12-10T15:24:00.000-08:00

I am dreading the holidays. I wish I could pull the covers over my head and not come out again until January 2nd. I haven't always been like this. In a normal economy, I charge into the season and charge up my credit card just like everybody else. But now, in the midst of a grave economic crisis, how does one gaily spend and celebrate? (Spending and celebrating having become interchangeable and inextricable concepts in modern times.)

We all know the drill: for law firms, the holidays are when we take the time to formally thank our secretaries and support staff, our colleagues and business contacts, and we do it with bonuses, lavish gifts, expensive baskets, tickets to the opera, etc etc. It is impossible, and ill-advised, to shirk these social obligations. People expect it; many deserve it. But how to pay it forward when so many are worried about their own job security? About retirement funds that went from lush, green pastures to brittle, desert savannas seemingly overnight? About retaining and attracting new business? About making one's hours? About the lack of one's own bonus, or its much reduced amount? There is no easy answer, but after mulling it over, I have some recommendations.

1) For the associates who will not receive a bonus this year, my sympathies. I'm sure you all worked very hard and are deserving. Alas, in terms of your giving obligations, keep it modest and prioritize. To ensure that your next year is equally productive and smooth, just be sure to take care of your secretary and paralegal. Handwritten cards for the rest. Of course, if there is a particular client, mentor, colleague that you feel indebted to, do present them with something, but make it personal and keep it simple. The thought is more important than the dollar amount.

2) For the associates who did receive a bonus, again, take care of your secretary and paralegal, but make your best effort to spend on others wisely. Rather than splurging on the cashmere throw for a favorite business contact at $300 a pop, consider giving a lift ticket at a local ski resort (savings: around $220.) Along those lines, no need to give Veuve Clicquot at approx $44 a bottle when there are many lovely, less well known sparkling wines that are equally good. Try Chandon at $20 instead. When you make a gift personal, and spend a bit more time on the selection, chances are you will save some coin and enjoy giving it all the more.

3) For the attorneys who are enjoying job security - do more of it. Enjoy and give thanks. Take care of those in your professional inner circle but exercise restraint. This could be the year for the comeback of more personal, thoughtful, and/or humorous gifts. Giving a donation in some one's name to their favorite charity is always an excellent choice. Having people over for a meal is another. Again, the focus should be on doing something that is personal, rather than expensive.

4) Keep perspective. Over the last decade, all of us in the legal industry have been riding a cresting wave flush with economic success. As a result, many of us have become accustomed to a certain standard of living and have blurred the line between "want" and "need". I know I have.

Now the wave has broken and many of us are re-assessing our priorities. We still have a lot and can learn to make due with less. In fact, I know quite a few people who have decided to "adopt" families in need and are giving presents only for that cause. In my own community, I joined the "Christmas Elf" program where we pick the name of a child or elderly person and act as their own personal Santa. There are numerous programs like this all around the country.

5) Have fun on less. We all know that the heart of the holidays is not to be found in the new Balenciaga bag, or the pretty whirring iPhone. The heart of the holidays is what we make it. It's having too much eggnog and watching "A Christmas Story" for the hundredth time, or snuggling in with David Sedaris' wry Holidays on Ice. It's goofing off a bit and taking a longer lunch than normal. It's volunteering to help those in need.

Maybe by shrugging off, or at least loosening, the biting yoke of commerce from our shoulders, we can all experience the holidays more purely, like we did when we were kids. After all, the holidays only come once a year and it would be a pity to miss it. Plus, spending all that time under the covers would get awfully claustrophobic.

Happy Holidays.

Erin

Should You Work With Recruiters Who Offer You Bribes or Kickbacks to Take Jobs?

2008-12-08T19:28:00.000-08:00

At BCG Attorney Search we do not bribe candidates to take jobs and we cannot possibly understand why anyone would possibly offer a kick back to a candidate for taking a job. We do not do this. Working with a recruiting firm that offers kickbacks is one of the most harmful possible things you could do for your career. Notwithstanding, we can understand both points of view in terms of why people would want to get kickbacks from recruiters and why recruiters would offer them.

You should understand that there are business and other implications of recruiting firms that do this and also, candidates that take these kickbacks. Finally, you should be aware of some of the ultimate penalties and benefits to your career that could come about from your taking kickbacks from recruiters.

We can understand why a candidate would want to use a recruiting firm that gives them $10,000.00 or whatever it is when they place them. That's a lot of money anywhere. It would be a lot of money to me. When you get that $10,000.00 it's almost like a justification for moving. It's a bonus of sorts from the firm that is hiring you. It makes you feel important. It does all sorts of positive things. So I understand why people would want to work with a recruiting firm that does that.

Likewise, I understand why recruiting firms would want to offer it. It is a great way to drum up business; especially if you advertise it. You can advertise that you pay money to people when they are placed. That's something that certainly will draw in lots and lots and lots of candidates. People are attracted to money - even if the prospect of taking this money means they are taking a huge risk with the course of their lives. For example, people become actresses in pornography movies and prostitutes - most often for money. They do not realize that this one simple decision to do either of these things could have devastating implications for them for the rest of their lives.

There are essentially two issues with taking kickbacks from recruiters if they place you. One of them is a business issue. The other one is an ethical issue--sort of a baggage that you are going to have to carry with you when you walk into a law firm and the partners and everybody there will know what you did. Also, the firms that are interviewing you may base part of what they know about you on the fact that you work with a recruiting firm that pays kickbacks.

The first thing is from a business standpoint. I really think you need to understand that running a solid, research-oriented recruiting firm, for example like BCG Attorney Search, takes an incredible amount of money. It's more than a significant portion of the placement fee. It's a heck of a lot of money.

We have costs of research. We have programmers. We have data bases monitoring firm openings. We have researchers monitoring firm openings. We have proofreaders going over letters from us making sure we are making a good impression on our clients. We are going to conferences. We're holding meetings and conferences with each other to talk about the legal recruiting industry. We're doing lots and lots of things. We're entertaining law firms consistently and on an ongoing basis. We have managers that are managing the process and overseeing. We're providing reviews. We're screening recruiters.

It's probably not millions, but thousands of things that are done to run a recruiting firm--a solid recruiting firm that endures. The issue is that running a recruiting firm that endures takes a lot more than a small amount of money. It takes a lot of money. It takes a lot of money to subscribe to all the legal publications and to make sure we are on top of the jobs that are advertised in there and on top of the news that is happening with law firms. That is a significant, significant thing when you are working with a recruiting firm; all that work that is done behind the scenes.

If you take a $40,000.00 placement fee, and out of that placement fee $10,000.00 goes to the candidate that doesn't leave the recruiting firm with a lot of money to pay its recruiters. More importantly, it hardly leaves it any profit margin if it is operating itself effectively. If it's a fly-by-night operation or an operation that is not emphasizing those things then it doesn't matter. For the most part, 10% is 25% of $40,000.00. Very few businesses in this world have 25% profit margins; hardly any of them do. Maybe some software businesses do but very few that involve humans doing research and work have 25% profit margins.

So that is something for you to think about when you are using a recruiting firm that is paying you a kickback--the money to run the firm is coming from you. You are paying for the work that normally would be done by not having the work done because you are really sacrificing something. That is a very, very important thing. Every candidate wants to know what is in the market. There are small firms that pay huge salaries and there are big firms that pay huge salaries. But you need access to every single one of them and that's extremely important. Being on top of that information is extremely important. Having quality control in a placement firm is extremely important. All of this stuff is what makes a solid recruiting firm. That's why our firm has made thousands and thousands of placements. That's why it endures as an institution is because the work that we do is very, very good.

The average placement fee that a recruiter charges is typically 25% of your annual salary. However, in some cases law firms that are not as selective with candidates will negotiate this fee downward. If the law firm negotiates enough and if a recruiting firm is offering you a $10,000 kickback, there may be nothing left at the end of the day (or hardly anything left) for the placement firm. This means, essentially, that the firm offering you a kickback will not be able to get you a job at the firm because there will not be enough money involved.

There is another point we'd like to bring to your attention. That is the fact that when you are taking these kickbacks from firms, think about the fact that the firm that is getting a resume from a placement firm that does that knows that if they hire you they are giving you a kickback in order to hire you. That raises serious, serious ethical concerns.

We are in the legal profession. The legal profession is very staid. It is changing certainly, and there are firms that aren't staid like that. But for the most part it's very staid. Because the legal profession is so staid, you have to understand that when a firm gets a resume from a recruiter that is giving a kickback to you, that makes a lot of them very, very uncomfortable. So uncomfortable that they may not be willing to hire you or they might not be willing to interview you. That’s a major thing. I would say that more than half of the firms know that and are uncomfortable with it; almost all of them know it.

Think about the fact that when you are going to work in a new firm or trying to interview with a new firm, you may have a harder time getting an interview if you are working with a recruiter that doesn't necessarily have resources to go out and spend time with the firm, or who is paying you a portion of the placement fee because the firm may not like the fact that you are getting that. So you may get fewer interviews; think about that.

On the BCG Attorney Search website we have hundreds if not thousands of law firms that we made placements at. That placement number is what it is for a reason. The placement number is as high as it is because we go out and do a lot of work; we develop relationships. When a firm is seeing our candidates, they are seeing someone that they know is coming to them because they have chosen their firm. They know that our firm has provided them research and done lots and lots of work. So, that is just another thing.

Just think about that when you're in the firm, you've probably gotten a kickback. That's something that is going to raise serious concerns. That may actually lose you the interview. Frankly, I don't care how good the market is; even if the market is on fire, you are still not going to get a lot of interviews in places you should or could. If the market is poor, that is going to hurt you even more. Many of the best attorneys out there may want to work at one or two firms. If those one or two firms aren't going to use you because they view what you are doing as an ethical problem, you have a serious concern..

Now, there is another issue that we need to bring up that is very important: When you take these kickbacks from the recruiters, you are putting yourself in a situation where you'll go into a firm and they may think, "Well, this person will leave for a little bit of money, $10,000 or $15,000.00. This person will take this amount of money in order to leave."

That's a lot of money. Don't think that isn't, and don't believe the firms don't think it is. That raises serious concerns too. It raises concerns about your loyalty.. It raises concerns about your judgment. Those kinds of concerns are the ones that prevent you, in a lot of cases from making partner or may foreclose that altogether if firms have loyalty concerns. If you can be prodded away for $10,000.00, or whatever the amount is, that is a major, major concern..

So, in summary, we do not believe it is a good idea for anyone to take kickbacks from recruiters and especially recruiters that go out there and advertise the fact that they are doing it. You are short changing yourself. You are making a deal with the devil. You are probably going to get interviews with fewer firms than you possibly could because a lot of firms will think it is unethical and won’t interview you or hire you.

Also, you are going to go into the firm with the idea that you could be prodded away shortly with a short amount of money and it’s going to raise questions about your loyalty. You have a career that is potentially worth millions and millions over the course of your career. Maybe even tens of millions of dollars if you do it right; probably tens of millions of dollars and that is a serious concern. All these things raise major concerns about using a recruiter that takes and gives kickbacks. You probably won't even know there are jobs out there because they won't have resources to do it.

We urge you. Use your head and think about these things. It's not in your best interest and not being in your best interest, why would you risk your career and aspects of your career that are potentially worth tens of millions of dollars for a little short blip on the radar of 10 or 5 or whatever thousands it is? Don't make that mistake. You could end up penalizing your career forever.

What I learned from my dog trainer.

2008-12-07T15:37:00.000-08:00

Or, more specifically, my dog's dog trainer.

My beloved canine companion hasn't been acting so beloved lately. It took me a while for my own internal lightbulb to go off about my dog's behavior. He's always been pretty well-behaved, so I processed all of his bad behavior in that context. "Huh," i thought, when he barked at my friends innocently trying to come in the door and take off their coats "that's weird. He's normally so lovely when friends come over." Surely my dog who has never needed a trainer wasn't doing anything that would require one now.

Finally, when he growled at a sweet old lady, I called in a professional.

The first thing she did when she sat down was to ask about whether anything has changed in our life and household. She didn't focus on his behavior, she focused on his environment. And there have been changes in our lives. A new, bigger house. Renovations. More coming and going through his previously quiet domain. She almost didn't even have to do anything else. It became clear that while we weren't changing how we were acting towards our dog--there were plenty of other dynamics encouraging his escalating behavior.

The great news is that there is nothing wrong with our little monster. He's not sick, he's not mean. But now we have to think about how to adjust and reinforce his behaviors to make him more comfortable and confident as our lives change and adjust.

It reminded me of a lawyer I've been talking to who was lamenting having to take a continuing education course in his area of the law. Undoubtedly quite accomplished in his field, this lawyer is resisting further training, because he's never needed it before. While that's certainly true, his comfort with his expertise has closed this lawyer off to opportunities to better himself professionally. Sure, this is a brilliant guy who knows a great deal. But he's ignoring the fact that the world is always changing around him, and he's resisting seeing the gravity of those changes.

Take it from my dog. We always have to ask ourselves whether we're watching the changes in our professional environment, and learning from them.

The World is (Sort of) Coming to an End for Attorneys

2008-12-06T09:14:00.000-08:00

I have been a recruiter for nine years now and I think this is one of the craziest weeks I have ever seen in my opinion. The drama of layoffs, a leading attorney arrested for possible embezzlement and impersonation, holiday parties cancelled, bonuses cancelled--the news just keeps getting worse and worse. Law schools are also starting to report massively reduced hiring of their students--even the best law schools.

What is going on in the legal field?

I have a lot of opinions about that; however, the short answer is that a lot of stuff is going on and it is out of control. For more than a couple of decades the United States has benefited from a virtual monopoly in many fields. In finance, telecommunication, computers and other fields the United States has been a leader and this has created a great deal of wealth in the United States. What we are now facing, in my opinion, is a "perfect storm" of sorts.

The issues, as I see it, are two fold. Firstly, there are not a lot of new innovations in the pipeline that are driving investment and enthusiasm in the markets. Secondly, the ability of the financial markets to stimulate the economy has run its course, for the time being.

Innovation Has Largely Slowed Down
In 2000 and 2001 when there was a recession this was largely the result of the fact that a great deal of irrational investment had flowed into the Internet and cell phones. People saw the incredible value that these were bringing to the world, how they would change commerce, how we invested in commerce, and how we poured investment into them. When people realized much of this investment was misplaced and overly exuberant, a lot of the money that was flowing into the market was rapidly pulled back. Eventually, money started flowing back starting in 2002 and the economy recovered.

The issue we are facing now, however, is that all of this new technology has largely been adopted by most people so there are few opportunities around the United States for companies to rapidly expand this technology. Most people now use cell phones. Most people now have computers and computers are lasting longer. In addition, as computers spread around the United States this created many productivity enhancements inside companies. Documents could be processed faster and this created many opportunities.

The fact that innovation and productivity enhancements have slowed down so much is a huge problem. This is a very serious concern. The fact that there is nothing in the pipeline right now makes me very nervous indeed. While the prospect of new forms of energy is something that is in the pipeline, this is not necessarily something that is booming. It appears, however, to hold promise for propping up the economy the way the Internet and telecommunications and productivity enhancements from computers did.

As these new technologies fanned out across the world and America they created massive amounts of legal work here. Practice areas like intellectual property have thrived. Corporate transactional work thrived as companies grew and issued stock and often combined. All of what occurred with these companies generated by new technology, computers and the productivity enhancements served to create a massive amount of legal work.

The Ability of the Financial Markets to Stimulate the Economy Has Run its Course for Now.
After September 11, 2001, the Federal Reserve starting slashing interest rates like crazy. This started making housing more affordable for everyone because of the fact that people could afford more "house" for less payment. This also stimulated a great deal of lending to corporations, private equity activity and more.

On a more sophisticated financial side, another thing happened at the same time. It was the boom of the securities market. What was happening was that mortgages that were being issued were being packaged up and sold as groups of mortgages. Because interest rates were going down so fast, people could afford more "house" and prices of real estate appreciated rapidly. Very few of these mortgages were being foreclosed upon because if someone was not able to make their payments they were simply selling their house because it was most often worth much more than they had paid. Because so few mortgages were defaulting, the demand for these securities became overwhelming and even the riskiest securities instruments were very valuable.

I was involved in this to some extent because I also ran a student loan business at the time. The loans that this company was doing were also packaged and made into securities. I remember last year travelling to London to meet with investors in these securities. Most of the people purchasing these securities were from overseas. Places like Luxembourg, for example. They all lost a lot of money as well. Now all of these people who lost so much money are unlikely to buy stuff from American financial institutions like they did before for some time into the future.

As everyone knows, this whole "house of cards" started crashing down when interest rates started to rise. Once this occurred, banks were left with toxic securities that lost massive amount of value. The financial crisis as we know it had begun.

The issue with this, and what has confused politicians so much, is that they do not have a tool to do this again. There is no tool that I am aware of (or that politicians are aware of) that can be used to prop up the economy again.

Real estate was a booming practice area for attorneys for many years during this time. No more. In addition, the work created in securities was also plentiful. This work has also gone away. The field has been literally leveled.

None of this takes into account all of the money that was coming into the financial system from people refinancing buildings and homes. In addition, because borrowing costs were so low for a long time private equity companies were putting incredible amounts of money into companies as well. All of the money coming into the financial system was also generating a great deal of work for attorneys.

The legal world always does fine and there are always bright spots even when things are collapsing. But what we saw this week was more of an example of what is coming due to all of this. In addition, on Friday of this week the government released new payroll numbers showing that the job market has lost more jobs than any time in the past 35 years. Things are getting really, really bad and the problem is, there's not much that can be done right now.

Making Time for Yourself

2008-12-05T11:57:00.001-08:00

If your work has slowed down or if you are unfortunate enough to be in the job market already, it is easy to fall into a depressed stupor. But keeping a positive attitude is important as you look for work (or while you ride out a slowdown in your department). One way to keep up your spirits is to make sure to carve out time every day to do something you enjoy.

There are many ways to do this. What is most important is that you find ways to reinforce your own self worth by doing something and being successful at it. For some, this might be doing volunteer work (helping the homeless, providing pro bono legal services to an arts organization). For others, it might be playing music with friends, writing poetry, visiting museums, reading spy novels, running or playing tennis.

For me, it is spending time with my children (I really enjoy cheering them on when they play sports or perform in a play or concert) and playing squash. It is also writing this blog and my blog CounseltoCounsel.

Last week I learned that CounseltoCounsel had been named to the ABA Journal's Blaw100 for the second year in a row. It was nice to get the positive feedback for something I enjoy doing and it was a nice to be successful at something at a time when it is difficult to be a successful recruiter.

So go do something that you enjoy and be successful at it. Your success may not necessarily put food on the table; but it will feed your ego and ensure that you keep a positive outlook when it is most important to project optimism.

Bye Bye Bell Boyd, Hello K&L Gates!

2008-12-04T10:37:00.000-08:00

I just learned that K&L Gates distributed an internal memo announcing that the firm has entered into discussions with the Bell, Boyd & Lloyd LLP in Chicago "with a view to combining the two firms in the first quarter of 2009." (Bell Boyd distributed a similar memo today). I must admit that my first reaction was one of sadness. After all, as a native of Chicago who practiced at two mid-sized law firms in the city, I have many friends and former colleagues who work or have worked there (okay, I also have a close family member who spent 40 years there as well). Bell Boyd has been a significant part of the Chicago legal market for countless years, and to see it dissolve into K&L Gates made my stomach queasy. Just a few short years ago, it was known as "the" place to work. Associates who secured jobs at the firm were considered some of the luckiest people around.
Thankfully, my first reaction only lasted a moment. My second reaction to this announcement was one of excitement. After all, there is always more than one way to view a major change, and I am making a conscious effort to see this as a good thing for the attorneys at Bell Boyd and the Chicago legal market. Sure, it's sad to see a highly regarded player in the Chicago market disappear, but it is also exciting to see the entrance of another one. K&L Gates is a global firm with over 1600 attorneys and 25+ offices. In fact, it is one of the largest firms in the world. The addition of such a major player to the city of Chicago is exciting and will surely provide legal opportunities for many Chicago attorneys in the future. So, while I am sad to see one of my favorite Chicago firms say goodbye, I am watching with great excitement and anticipation to see how K&L Gates fits into the Chicago market.

The Power of the Handshake

2008-12-04T08:00:00.000-08:00

I was recently at a networking event and met someone with a handshake that was memorable- but not in a good way. Upon introducing himself, this person proceeded to crush my hand with a death grip and a brash smile. Immediately, this colored the way I perceived him and my impression of him. My thoughts went to "hmmm... this person seems to be overly aggressive and maybe a bit insecure."

Now, don't get me wrong- I am all for a firm handshake that exudes confidence and professionalism. The handshake I encountered however, led me to think that this person was a bit obnoxious and full of himself. After talking with him for a while, I struggled to keep an open mind about this person and his representation of himself. I consider myself to be a pretty non-judgmental person in general, but I must admit that this first impression did stay with me for the rest of the time I was in this person's presence.

On the opposite end of the spectrum are those folks who have the limp handshake upon meeting someone new. I wince at these types of handshakes as well. When meeting someone new, you want to avoid the feeling that you are shaking hands with a lifeless being. I can't be alone in this feeling.

Therefore, it is important to remember that eye contact and a firm (yet friendly) handshake can give many positive cues to the person on the opposite side of your handshake. Like most things in life, a good handshake is something that is best executed in the happy medium spectrum of things. An approachable smile and non-clammy hands don't hurt either.

Broaden Your Scope to Improve Your Job Search

2008-12-03T14:18:00.000-08:00

One mistake that many candidates make is to focus their job search too narrowly on a tiny geographic region or a small group of law firms. For many reasons, this narrow focus can result in fewer opportunities and -- equally as important -- lower quality positions, than the candidate might otherwise find by "thinking broader."

There have been numerous recent articles discussing how mid-size firms and firms in smaller markets are better positioned to ride out our current economic storm. These firms tend not to over hire, typically keep their overhead low, and generally are more in tune with the ups and downs of the economy. Further, as clients look to cut costs, many are shifting work (and funneling new matters) to smaller firms in regional markets that have lower billing rates than BigLaw.

For these reasons, to increase your chances of a successful job search, you need to think outside the box -- and the major cities. For example, if you are conducting a job search in Los Angeles, expand your search to Orange County, Riverside and Santa Barbara. If you are looking at San Francisco, broaden your scope to Oakland, Palo Alto, and even Sacramento and other smaller regional markets.

In most cases, not only will your expanded search yield more interviews and offers, but you will be pleasantly surprised by the sophistication of the practices at these smaller firms, not to mention the relaxed atmosphere and improved lifestyle.

Remember, you never have to accept a job offer, and it doesn't hurt to explore! Give it a try and I guarantee you will be pleased with the results.

Choosing a Recruiter for Your Lateral Partner Search

2008-12-02T13:27:00.000-08:00

BCG does quite a bit of work with partner candidates. The market continues to be strong for lateral partners nationwide.

Partner searches are different from associate searches, and it is important to find a recruiter who understands your objectives. I recently wrote an article on Choosing a Recruiter for Your Lateral Partner Search, highlighting important qualifications in a recruiter on partner searches. If you have a talented recruiter on your side, then your search will be much more pleasant and (hopefully) successful.

Form Over Function

2008-12-02T13:07:00.000-08:00

Technically, this is resume writing advice, but I hope that you take this advice as something much deeper in terms of how lawyers view their skills and value.

The questions I get so often are whether someone's formatting is right, whether they are using the right terms of art, whether their language is similar to the language other candidate's use to describe their practice. Those are valid questions, to be sure, but it occurs to me that the fact that these are the most frequently asked questions indicates that there is a lot more form than substance.

The most important thing about your resume is what it SAYS. I'm a stickler for resumes that have perfect form--no misspellings, no distracting formatting, no unnecessary information. Having an impeccable LOOKING resume is vital. But it's not the point of your resume. I get the question "what do I say about myself?" but I can't answer that question on anyone's behalf.

That's where you should start with your resume. Write down all of those things that only you know about the extent of your background.

Every attorney should be thinking critically about what they do and every single transaction, deal, negotiation and case that has made up their experience. Obviously, it is never appropriate to inflate your experience, but if you are content to just touch on the major points of your experience, you are doing yourself a disservice. I recommend to my candidates that the first step is to ignore page lengths, font, and format. Simply get on paper all of those things that you do--all of those things that would be relevant to a potential employers.

Have you taken the lead on a transaction or file?
Have you originated clients?
Are you published?
Have you handled a novel issue?
What industries are your clients in?

These are just a few places to start.

Your resume not only reflects what you can do -- it reflects your enthusiasm for what you do. Think about that carefully. Does "write and research memorandum regarding various issues" sound like someone who loves what they do? Have you proven that you can articulate sophisticated issues of law or define complex transactions? If you can't soundly answer those questions with a yes, start over again.

Sit down in a moment when you can think and review your experience carefully. Bring energy to the project, and be detailed. Let the formatting and tightening go, just focus on your individual experience and what drives you professionally. It will be worth it.

Partner Growth Down By 50% At AmLaw 100

2008-12-01T20:28:00.000-08:00

I read the most unbelievable article today on LawCrossing.com This article to me was one of the more significant articles I have read in a long, long time about the legal industry. In my opinion, what this article talked about has pretty significant implications for us all. Specifically referring to a West peer study and AmLaw 100 law firms the article notes:

The month of August saw the highest contractions in billable hours, about 5%. However, a slight surge in September brought the overall quarterly billable hours down only 2.5%. Also, the recent layoffs at large law firms resulted in a slowdown in attorney hiring practices, which came down 6% from last year. New partner growth at law firms was reported as half of that of the previous year.

Hiring down by 6% is a huge number in my opinion; however, even more striking is the fact that the partner growth was reported to be half the previous year. This is a huge number and a massive decline. If these numbers are down by an incredible 50% this means there is a lot less opportunity for people to be moving up.

One thing I think we will be seeing a lot more of in the near future is the growth of smaller firms which have less overhead and are more than happy to take on smaller clients. Many of the larger law firms simply cannot support partner growth.

The idea that the number of partners being made could decline so rapidly is a very serious warning. Firms simply no longer have the space for them in their ranks. The idea that upward mobility for attorneys is stalled will have serious long-term implications on attorneys choices in the future I believe.

Be flexible, be smart, stay connected, don't make assumptions!

2008-12-01T11:39:00.000-08:00

Need a crystal ball?

It is probably safe to say that there is more than the usual amount of head scratching by those of us who try to predict the future and create strategic business plans.

It is a time of opportunity as well as challenge. In the legal field, a few key skills will keep you on track, in my opinion.

First, don't resist change. The legal and business landscape is changing in a fundamental way and we all need to change with it if we want to stay professionally "healthy." For those aiming at a law firm, consider reformulating your goals. Be open to change in practice area, size of firm, or geography. If you are an established senior attorney, you may need to consider a new platform to keep your career on a firm foundation.

Second, read as much as you can about current events and use your innate intelligence to formulate a plan that will meet your goals. The more you know about the principles of business, economics, the global economy, law firm management, and the myriad forces driving law firm clients to make business decisions, the more you can strategically position yourself for success (however you define it). No one has all the answers right now. Seasoned partners as well as first year associates are facing similar challenges. The people who can assess a dynamic situation with sophistication and knowledge of complex systems will do well. Don't stick your head in the sand.

Third, stay connected. In locating opportunities you want to maximize your exposure to word of mouth and people who will vouch for you. Many stellar junior associates ask me what to do to fill their time while waiting for "big firm" hiring to pick up. Some are returning to performing legal research for professors. If this will lead to expanding your contacts, publishing, speaking, or committee work, great. But, I would be leery of retreating into the ivory tower if you will only be interacting with one or two other professors. Unless the ivory tower is your goal. If your daily work routine is somewhat isolating professionally, use your online resources to stay connected virtually.

Fourth, don't make assumptions. Position yourself well, and be ready for surprises. A stellar federal law clerk, junior associate candidate just called me and asked if she should assume that a career in a big firm will not be for her. As of today, the first day of December in 2008, I would have a hard time placing her. But most predict that litigation is going to pick up. Last week I tested the market by sending out scores of inquiries to law firms for a similar candidate. Five firms requested the candidate's resume. Not a great percentage. But the five firms were seriously interested. The candidate may get a job at a good firm. Don't write anything off. Explore multiple options.

The same goes for senior associates and partners trying to hold together a book of business. Time to study the market, and make adjustments. Old patterns and relationships may not suffice. Expand your network, meet new people. Use your analytical skills to reformulate your personal business plan based on current conditions. Help your firm evolve.

All of this takes work and effort. The uncertainty can be draining. But, you made it through law school, didn't you? You made junior partner, didn't you? We are using the same skill set. Hard work. Study. Intelligence. Focus. Courage.

These are exciting times. Use them to your advantage.

Big Changes on The Legal Scene: Layoffs and Outsourcing

2008-11-30T11:44:00.000-08:00

Incisive Media, the owner of American Lawyer Magazine and Law.com announced more layoffs last week. This comes after the layoffs announced in April of this year (see the American Lawyer layoff memo below from ALM CEO Bill Pollak below).

Folks,
Several weeks ago, I wrote to you about our business results for the first quarter of 2008 and shared some of the challenges we face as a result of the credit squeeze and other market factors. I also described our intention to tighten our belts and reduce costs. With no change in sight on the economic horizon, the senior management team and I have spent the past few weeks examining our business options. Our goal was to find solutions that would lower expenses without compromising quality, and which would allow us to continue to invest in and meet our long term business goals. In particular, we all strongly agree on the need to continue investing in our Web infrastructure, while expanding ALM's ability to generate and publish content online.

We looked at each business with these questions in mind: Are we getting the right return on our investment? Do we need to keep doing this work? Can we do this work another way? We believe that while we are primarily doing the right work in the right way, there are changes we need to make immediately to respond to economic conditions.

Some of these changes involve revising the timing or scope of planned initiatives. Others, however, are staff related and go beyond simply delaying the filling of open jobs. In total, we have decided to eliminate forty-two current positions across ALM and Incisive's US operations. These staff reductions are distributed across businesses, locations and job levels and all the employees involved have already been notified.

The business changes we will be making are also broad in scope. These include scaling back plans to grow Real Estate Media's Florida publication into a monthly magazine; closing down the Operations Department of Incisive's Norwalk, CT office; and shifting Law Firm, Inc. from a print magazine to a digital product.

Another change in business strategy -- and the one that will have the greatest impact on staff -- is our decision to restructure ALM's Event Division and reassign management responsibility for many of our existing SRI conferences to Insight in Canada, Incisive's Events group in London and ALM's Legal Publishing Division. A number of SRI's financial events will be eliminated.

Accepting and working through change is never easy, and changes that affect our colleagues and friends can be particularly painful. We did not make these decisions lightly. But we know that our future success depends on our ability to align ourselves with our markets and clients, and to ensure we have the resources we need to develop and grow our brands. The changes announced today will not only help us during the current economic turbulence, but will make us stronger in the future.

As always, if you have any questions, feel free to drop me a note at
[Redacted].

Bill

This memo concerns me because ALM does not appear to see a brightening horizon coming to the legal field anytime soon. This is very dire news indeed.

A report I read in the Wall Street Journal this week really concerned me as well. This report started that up to 35,000 legal jobs will have moved offshore by 2010--and 79,000 will be offshore by 2015. We are talking about people writing legal briefs and doing patents in India. This is pretty scary stuff to a lot of lawyers.

What this means, essentially, is that a lot of the work American attorneys are doing at the moment is moving overseas. A lot of the work junior attorneys do at the moment can easily be done by people in other countries making a lot less money.

Is the Versatility of a Law Degree Just a Myth?

2008-11-28T15:50:00.000-08:00

How easy is it to use your law degree to secure a position in an alternate field? Ever wondered just how versatile your law degree will be? Steven Seckler, managing director of BCG Attorney Search, notes that a law degree might not be as flexible as one might hope in Is the Versatility of a Law Degree Just a Myth?, a National Law Journal article.

Date Night

2008-11-28T08:45:00.000-08:00

This topic has been covered many times, but it bears repeating. Marketing is key, and you need to get started early. I say "get started early" not because, as a first-year associate, you really have much to market. I remember sitting in these marketing meetings that my first firm forced the associates to attend and thinking, how do I market my "practice"? At that point, my "practice" consisted of document review, and, strangely, I didn't view this talent as very marketable. Naturally, it wasn't.

So if you technically have little to market, why should you get started early? Well, because "marketing" is really less daunting than it sounds. You don't have to start scheduling dinners with the CEOs of Fortune 500 companies. Not yet, anyway. In the early years, marketing can be as simple as forcing yourself to eat lunch away from your desk. Invite your law school friends to join you for lunch. These law school chums may very well advance to a General Counsel position with a company whose business you would like to acquire. Also, you can simply get involved in your community. What interests you? Art? Dogs? Well, then maybe you should get involved at your local museum or humane society. Attend their functions. Meet people. There are always a wealth of business people and lawyers who share your interests and, also, view such events as networking opportunities.

It doesn't so much matter what you do, but you need to step away from the desk and put yourself out there. As my wise partner mentor told me, he would work to target a particular client and, in the process, meet other people that he wasn't directly targeting who would later give him business. Marketing, he said, is like dating. It is hard to say exactly how you should go about meeting people, but the one thing that doesn't work is staying at home.

Happy Thanksgiving!

2008-11-27T09:42:00.000-08:00

Best wishes for a very happy Thanksgiving from all of the recruiters at BCG Attorney Search. Even in challenging economic times, we all have so much for which to be grateful.

Enjoy the holiday!