The Economy: What Does It Mean For InHouse Lawyers?
I just wrote about how much worse the economy may get, and what it means for law firms. I would be remiss if I didn't offer some thoughts on what the declining economy means for clients.
Let me begin my observations by recalling Einstein's definition of insanity: doing the same thing over and over, and expecting different results.
So, the first thing each client needs to do is to decide whether you are insane. If you decide you are, good luck. If you realize that change might be necessary, start by making two lists: (1) what do I want to accomplish; and (2) what ways exist that allow me to accomplish my objectives.
Let's begin by discussing List 1. I suspect that in this environment each sane person's list includes some variation on the idea of reducing costs. There are probably a lot of adjectives included with that concept--materially, significantly and others along these lines. Many would also have predictability on their lists, along with effective budgeting.
With respect to List 2, begin with this principle: for brainstorming to work, the only bad idea is the one not expressed. Ideas tend to feed on one another. Idea A might not be good, but it sparks something in someone else who comes up with Idea B, a fabulous idea that would never have seen the light of day were it not for Idea A.
On List 2, I hope people consider two things I have banked my future on: fees based on something other than time, and the use of small firms. But not just any small firm. There are many firms that are comprised of people who received the benefit of big firm training and have substantial experience handling the most complex matters for large clients. Some, but certainly not all, of the lawyers that leave big firms leave on their own accord because they realize they can do more for clients when freed of the limitations inherent in big firms. It is one of the great misconceptions that big firms are better than small firms. There are a lot of ex-big firm lawyers out there who equal or exceed the experience and talent of big firm lawyers, but who have so much more ability, flexibility and interest in helping clients solve their most important problems without regard to the impact any deal will have on the firm's AmLaw 100 rank. My friend Dan Hull refers to these boutiques as muscle boutiques. Inasmuch as I joined several other big firm refugees to start Valorem, I believe with every cent left in my kids' Section 529 plans that these smaller specialty firms have a special place in helping clients solve their problems. And that clients will recognize this.
On Wednesday, I will be part of the faculty of a program offered by Inside Counsel, Managing Litigation As A Business. I am a big believer that litigation can and should be managed as a business, not only by inside counsel but by outside lawyers as well. If inside counsel ever want to discuss the concepts, I'll be happy to discuss the issues with you--no charge of course. You can reach me here.
The end of this exercise is to take your lists and force rank each so you know what your priorities are and what steps are most likely to help you achieve the priorities. Take the top three items on list 2 and, for each develop a detailed list of precisely what you will need to do to accomplish the item. This third list is where the rubber hits the road. Don't write "identify 3 new law firms that use value pricing." Find the three firms and then write down, "Give work to Firms A, B and C. If you can be even more specific, do it. "Call Jane Smith to see if she can take over the ABC matter and complete discovery for less than $40,000."
The last thing is to take your detailed to-do list and do it.
