the role of professional development professionals for a changing legal profession n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
The Role of Professional Development Professionals for a Changing Legal Profession PowerPoint Presentation
Download Presentation
The Role of Professional Development Professionals for a Changing Legal Profession

Loading in 2 Seconds...

play fullscreen
1 / 52

The Role of Professional Development Professionals for a Changing Legal Profession - PowerPoint PPT Presentation


  • 156 Views
  • Uploaded on

The Role of Professional Development Professionals for a Changing Legal Profession. Michael Downey. From 1979-2007, What Made a Law Firm Great?. Legal Services. Old Math. “RULERS”  Profits R ates U tilization L everage E xpenses R ealization S peed (of billing/collection).

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'The Role of Professional Development Professionals for a Changing Legal Profession' - arlais


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
the role of professional development professionals for a changing legal profession

The Role of Professional Development Professionals for aChanging Legal Profession

Michael Downey

old math
Old Math
  • “RULERS”  Profits
  • R ates
  • U tilization
  • L everage
  • E xpenses
  • R ealization
  • S peed (of billing/collection)
r u l e plus r s
R-U-L-E (plus R & S)

Rate = Slope of Line

Leverage = How many triangles per partner?

Break Even Point

1500 hours

Profits

Salary & Benefits

Expenses

Overhead

Utilization = hours billed

Rate – $200 per hour

Overhead – $140,000

Salary & Benefits – $160,0000

old career path for lawyers
Old Career Path for Lawyers
  • Associate (Non-Equity Partner) (Equity) Partner
slide8

Upstairs/Downstairs

  • Law firms are employing – and maximizing the use – of lots of professionals other than lawyers
  • Many firms are slow to appreciate and respect the contributions these professionals provide
strength of market
Strength of Market
  • Thompson Reuters PMI index shows improvement over last three quarters
  • But factors of firm performance still show considerable weakness and reason for concern
slide12

2000 deals in 2007

  • 500 deals in 2012
utilization billable hours
Utilization – Billable Hours
  • Partner and associate billable hours remain soft (and low)
  • Firms should look to see that partners are not hoarding work
  • Soft/low billable hours may cause associates (in particular) to focus on billable work, instead of training et al.
realizations
Realizations
  • Firms are writing off more time – and having more trouble collecting the time they are billing
  • Result is that lawyers are working for free
suppliers
Suppliers
  • Number of lawyers finding full time legal employment has dropped precipitously in recent years
  • This will keep associates in place, at least temporarily, even if they are no happy
decrease of supply
Decrease of Supply
  • Individuals taking the LSAT has also declined in recent years
  • Decrease from approximately 60K in 2009 to
  • only about 35K in 2013
  • Most law schools are feeling a traumatic impact due to the decrease of law students
clients have and are using considerable power
Clients have – and are using – considerable power
  • Consolidation of legal work
  • ACC Value Challenge
  • Team activities – like Pfizer Legal Alliance
procurement requests for proposals
Procurement(Requests for Proposals)
  • Only 12% chance of winning . . . if the law firm did not draft the RFP (BTI)
growth of the global firms
Growth of the “Global” Firms
  • Not just US-based or UK-based firms
  • Dacheng is now the #3 largest firm in the year (but 97% of its lawyers are in China)
growth of alternative legal service providers
Growth of Alternative Legal Service Providers
  • LPO market grew 31% from 2011-12
firms compete
Firms compete
  • . . . For rainmakers
  • . . . For associates in certain practices
summary susskind
Summary – Susskind
  • Three forces
  • Globalization
  • Liberalization
  • Information technology
  • Two viable strategies
  • Efficiency strategy
  • Collaboration strategy
breakdown of the old
Breakdown of the Old
  • Turnover – Associate departures
  • Decline of Equity Partners (Am Law 200)
  • 36% of total in 2000
  • 34% of total in 2005
  • 25% of total in 2011
barlett beck
Barlett Beck
  • No hourly fees,
  • no leverage,
  • no laterals.
  • (or should we discuss Wachtell Lipton or Valorem?)
several questions
Several Questions
  • Does a law firm really need “associates”?
  • Does a law firm really need an “office”?
  • Does a law firm really need “rainmakers”?
summary susskind1
Summary – Susskind
  • Three forces
  • Globalization
  • Liberalization
  • Information technology
  • Two viable strategies
  • Efficiency strategy
  • Collaboration strategy
importance of disrupting sustaining innovation
Importance of Disrupting/Sustaining Innovation
  • Incumbents often prevail when innovations are “sustaining” (evolutionary or even revolutionary)
  • Usually upstarts will win if the situation is really disruptive
  • Clay Christensen, The Innovator’s Solution
decrease of supply1
Decrease of Supply
  • Individuals taking the LSAT has also declined in recent years
  • Decrease from approximately 60K in 2009 to
  • only about 35K in 2013
  • Most law schools are feeling a traumatic impact due to the decrease of law students
skills to develop
Skills to Develop
  • Teamwork
  • Collaboration
  • Listening
  • Networking
  • Presenting
  • Communicating
  • Technological Acumen
  • Project and process management
  • Plus the old necessities – technical skills, knowledge of client industries, confidence, bravery
slide44

“[T]he successful lawyer must ‘know the life of the community, the needs and practices of his client, ... the working situation which he is called upon to shape as well as the law with reference to which he is called upon to shape it.”

  • – Karl Llewellyn (1893-1962)
traits firms need
Traits Firms Need
  • Innovative
  • Risk-taking
  • Tolerant of diversity
  • Lean/efficient (but not cheap)
  • Business-minded
  • Client focused
why will people stay
Why Will People Stay?
  • Platform: What’s the brand name, how good are the associates, what’s your position in the practice group
  • Culture: Is it a fit?
  • Financial issues: The obvious. Not just current pay, but capital contributions, pensions, etc.
  • Security: A steady stream of work
  • Friendships. These can keep people at, or keep them out of, firms
  • – Adam Smith, Esq.
where are law schools
Where Are Law Schools?
  • Many law schools doing many good things
  • Iron Tech Lawyer (Georgetown app competition)
  • Reinvent Law (Michigan State)
  • Institute for Law Practice Technology and Innovation (Suffolk)
  • Law Without Walls (Miami – recommended by attendee)
closing thought
Closing Thought
  • Real risk of disruptive innovation in legal services
  • Deliverables, not delivery, will change
how can you be a messenger
How Can You Be a Messenger?
  • “[T]ell partners making a million dollars a year that they are wrong….”
thank you
Thank You.
  • Michael Downey
  • Armstrong Teasdale LLP
  • (314) 342-8072 direct
  • (314) 482-5449 cell
  • mdowney@armstrongteasdale.com