Yes, People Really Can Be Tone Deaf
The message of my recent posts on law firms raising hourly rates this year (here, here and here) is that the firms that raise their rates are tone deaf. The explanations for raising rates when client law department budgets are being slashed is self-absorbed. They have ranged from "we can" to "we have to so our profits per partner numbers don't suffer so badly" to the more nuanced, "well, some areas are busy so we can get away with it in those areas." The analysis is always inward looking.
I thought I about this today when I saw this story on CNN.com: "Auto CEOs Flew Private Jets To Seek Bailout." It wasn't one private jet--each had his own private jet. The auto executives had their rationales for their choice in air travel--personal security, company requirements and so forth. They looked at things from their own perspective. But they are beyond tone deaf. When you go to ask someone for something, you need to look at 
things from that person's perspective, not yours. That someone opposing bailouts would seize on this kind of perceived excess was as predictable as the sun rising in the east. Couldn't they have flown coach one time? This has the capacity to become the symbol of a "they don't deserve our help" response to the plea for bailout money.
The issue on fee increases is exactly the same. It's not about what firms can do for themselves. That's tone deaf. It is the equivalent of flying a private jet to a hearing where you ask for billions of taxpayer dollars. It ignores appearances. For smart firms, it will be about they can do for their clients. Imagine what would happen if a firm said, "we know our clients are suffering and we are their partners, so we are reducing our fees by 10%." Think they might get any new business? Perhaps some good PR? I can think of a lot of good things that might happen, including keeping everyone busy and making more money that the increased rates would have generated.
