Is There a Need for Patent Attorneys With PhDs?

I have a Ph.D. in molecular genetics with a specialization in population biology.  I have been a post-doc for several years and I am interested in changing careers and moving into law.  I have thought about law school but I am intimidated by the thought of acquiring more debt, at least for now.  I have been told that patent law is in need of technical specialists in sciences and that this might lead to financial assistance later for law school.  What is the reality of this and how much of a need is there for someone with my background in IP? My training is suitable for cases involving forensic evidence, as well.  What are the opportunities there? How difficult might it be for someone who has spent most of their career in an academic setting to make the transition into law?

Your question is interesting and one that I encounter quite frequently as law firms continue to expand their Intellectual Property (”IP”) practices and Ph.D.’s look for options outside of the lab environment.

People holding doctorates in the biotech, biology, chemistry and the computer sciences areas are in high demand by law firms with strong IP practices.  Over the past five to ten years, the biotech field has grown dramatically and, as a result, law firms, and particularly IP boutiques, have developed fairly sophisticated IP practices, successfully filling their ranks with attorneys with undergraduate and graduate degrees in computer science, mechanical engineering, electrical engineering and chemical engineering.  Many (but certainly not all) firms have supplemented these practices with technical advisors and patent agents, scientists who typically hold Ph.D.’s but who don’t necessarily have law degrees.   Sometimes, these advisors/specialists come on board with no legal training.   With or without training, these specialists are employed by the firm to assist with the preparation of patent applications.  Technical specialists will generally also prepare to take the patent bar exam, which allows them to prosecute patents before the United States Patent and Trademark Office (”USPTO”).   Law firms usually require their specialists to take this exam within the first year or two of coming on board.

Most Ph.D.’s find the law firm environment extremely stimulating and quite challenging.  Ph.D.’s often comment that they are very attracted to making the transition from the lab to the law firm environment because of the increased opportunities to write - and write more abundantly.   Interestingly enough, we have found that after passing the patent bar, many patent agents decide to go on to law school for the career advancement and the increased compensation the law degree affords them.   To assist them in their efforts, many law firms have in place both formal and informal law school reimbursement programs to enable these specialists to go on to obtain a law degree.   In fact, some Ph.D.’s have successfully completed their law school degree at night while working full-time in the IP department of a law firm.

Transitioning from the academic setting to the law firm environment can be a challenge.  Many agents are faced with billable hour requirements (which vary among law firms), something which even a first year associate in a law firm will tell you takes some getting used to.  In addition, depending on how far along you are in your career (and it sounds like you have been a post-doc for several years), beginning a career as a patent agent or specialist in a law firm may require you to take a step back in compensation in order to achieve your long-term career goals.  However, the earnings potential you would achieve as a patent attorney is most likely far greater than that which you could ever achieve as a Ph.D.   In your role as patent agent or specialist, you will be required to deal with a wide range of individuals, from attorneys and paralegals within the law firm to clients and professionals outside of the law firm, so flexibility and good communication skills will be essential components for your success.  Finally, law firms are extremely demanding environment, but also intellectually stimulating and rewarding.   Most Ph.D.’s who contact us are already well-published in their fields and, thus, like the idea of “getting out of the lab,” being exposed to new ideas, and having the added plus of doing different types of writing and analysis.

We believe that as more scientists are exposed to the law firms and the career opportunities there, that these types of jobs will become increasingly competitive.  However, for Ph.D.’s with chemistry (especially organic chemistry) and biochemistry backgrounds and strong academic records, we believe excellent opportunities are fairly abundant.  This is especially true given the recent developments in the genetic area, namely stem cell research and cloning.

Post Footer automatically generated by Add Post Footer Plugin for wordpress.

Gratitude v. Want

I had an interesting discussion this afternoon with someone.  In the middle of our conversation about candidates, partners, associate hiring, and law firm economics, she stopped and said to me, “You know, I’m not even Catholic, but a little while ago when the market started getting bad, I started stopping into St. Patrick’s Cathedral after work.”  I laughed, because the way she said it made it sound like it was the last place on earth that she could see herself “stopping into” on a random night.

She went on to tell me that it ” was the best right after they burn the incense!” and we laughed again.  She then went on to share something extraordinary that she learned in those evening visits.  It is the lesson that while asking for something or praying for something creates “want,” taking a moment out of each day just to be grateful for what you have creates “gratitude”…and it is gratitude which has an immense power in a person’s life.  Taking a moment each day to be grateful created an awareness of all that she had…and perhaps all that she had coming toward her.  Shortly thereafter, she found a new job and a new career and found herself in a better place.

I am someone who takes lessons from life as often as she can.  I am someone who tries to hear a message that’s eager to get through to me.  More so, I am someone who, when she learns something of possible use to others, passes it on.

There may be something useful here for a lot of people as they end their Friday and go into the weekend.  What if you didn’t spent your weekend worrying, upset, angry, and fearing the worst about your job/career?   What if you just were grateful to yourself, to a force in the universe, to God, to whatever!  What if you were just grateful for all that you have and optimistic that while the economy and life may be in constant flux, there are a few things that remain constant…whatever those things may be in your life.  Make yourself aware of them.  There may actually be some truth to the power of gratitude in that it builds us up and strengthens us — where “want” has the tendency to diminish a person.

I don’t know if any of this will work for you — or for me.   However, it’s worth writing down and thinking about.

Post Footer automatically generated by Add Post Footer Plugin for wordpress.

Do One Thing and Do it Well

When you are focused you get results.

At BCG Attorney Search all we do is place associate and partner-level attorneys in law firms.  We do not do not make placements in corporations or with in-house legal departments.  We do not place contract attorneys.  We do not work with secretaries or paralegals.

A BCG Attorney Search recruiter could not tell you the first thing about how to get a job with an in-house legal department, as a contract attorney, paralegal or legal secretary.

But for the type of attorneys who use BCG Attorney Search, this level of focus is exactly what they expect and are entitled to.  Over 80% of the attorneys we work with are graduates of top 25 law schools and coming from AmLaw 100 law firms.  And our law firm clients also know the typical BCG Attorney Search candidate is also focused enough that they cannot imagine working in any place other than a law firm .  As a consequence,

Simply put, BCG Attorney Search candidates want to deal with experts in the legal marketplace and believe their recruiter cannot truly know they market when they are doing several different things at once.

In your life and career it is also crucial that you do one thing and do it well.

Post Footer automatically generated by Add Post Footer Plugin for wordpress.

Will a Clerkship Enhance My Marketability?

I have been offered a clerkship with a state court of appeals.  Will taking that position enhance my marketability?  Currently I am a 2L, top 10%, in a second-tier law school.  Thanks for your help.

It depends.  As discussed below, a state court clerkship will generally enhance your marketability if you are planning on working in the state where you are clerking.  Nevertheless, the value of a clerkship should not necessarily be something that you view as a tool to make you marketable.  Most importantly, the skills and insight you will acquire during your clerkship will be something that should help you throughout your career.

A state court clerkship is likely to make you marketable if you are considering working in the state where you will be clerking.  It is useful to examine the different types of clerkships.  Each type of clerkship has its advantages and disadvantages.  In order to help you understand the role a clerkship will have in your marketability, the differences between federal and state clerkships are analyzed below.
Federal Clerkships At the Federal level, the order of prestige of clerkships is typically: (1) the Supreme Court, (2) circuit (appellate) clerkships, (3) federal district court (trial court) clerkships, (4) clerkships with United States magistrates (who do a lot of the “grunt work” for federal district court judges).  There are also several specialized courts (such as Federal Tax Court) that are of approximately the same prestige level as federal district court clerkships.

Appellate clerkships involve mainly research and writing about issues the trial court has already ruled upon and reviewing the district court’s errors.  Appellate clerkships typically involve more arcane and novel issues of law than are typically litigated at the trial level.  In an appellate clerkship you are less likely to get to know the lawyers involved in the underlying litigation.

District court clerkships involve actual issues being litigated at the trial court level and typically have more in-court action.  In a district court clerkship you may see many of the same lawyers in the court day in and day out.  In a circuit court clerkship, you are likely to see the attorneys involved only when they present their appellate arguments in court.

There are also numerous distinctions between clerkships at the federal level.  For example, clerking for the Chief Justice of the United States Supreme Court is generally considered the most prestigious clerkship.  Similarly, a clerkship with a federal district judge in the eastern district of New York is more prestigious than a clerkship with a federal district judge in Bay City, Michigan, for example.   Attorneys who clerk for the most prestigious judges are typically those whose “marketability” is likely to be increased as a result.
Typically, the most prestigious clerkships have been those with federal judges.  At top national law schools, students compete very aggressively for federal clerkships and do so more so than they do for state judicial clerkships.  Given the prestige of a federal clerkship, it can often make you marketable far beyond the geographic area where you are clerking.

State Court Clerkships There are different distinctions in the state court system; ordinarily, you will also have a Supreme Court, appellate courts and trial courts.  The same prestige distinctions are also present at the state level, with a state Supreme Court clerkship being the most prestigious.  Just as certain federal district courts in various geographical locations are considered prestigious places to clerk in, so too are the state courts in different states.  In general, if you are clerking for an appellate court in a major state, this will be more prestigious than if you are doing the same thing in a smaller state.

The problem with a state court clerkship is typically something that is also an advantage.  While a state court clerkship will not necessarily increase your chances of being marketable anywhere throughout the United States, it can do you a tremendous amount of good in the area where you are clerking.  Clerking for a state court will make you a candidate with important local contacts.  The fact of the matter is that most litigation is actually conducted in the state courts.  Accordingly, a state court clerkship will provide you with a better understanding of state law than you would ever get as a federal clerk.  If you are planning on working in the area where you are clerking, the state court clerkship should be enormously valuable.
You need to remember that accepting a clerkship is much like the decision of where you decided to go to law school.  There are major national law schools that vary in prestige and there are smaller local law schools that vary in prestige.  For example, attending a law school like Yale is going to give you a serious advantage when you are applying to positions throughout the United States.   A law school like Yale might be compared to clerking on the Supreme Court. Conversely, a smaller more local law school like the University of Toledo is not going to give you as much an advantage throughout the United States.  This school will, however, probably give you good options in Toledo, Ohio.

Accordingly, before you accept your clerkship, I would recommend having a good understanding of whether or not you want to work in the area where you will be clerking.  The clerkship is most likely to make you marketable if you are seeking to work in the state where you are clerking.  I would also do some research into where the judge’s former clerks ended up working.  By learning this you can also get a decent idea of what your marketability might be following the clerkship.

Additionally, you have stated a concern about being “marketable”; nevertheless, you have not told me where you would like to be marketable.  Do you want to be marketable in the area you are clerking in?  Do you want to be marketable to a law firm, corporation, public interest group, prosecutor’s office?  You get the idea.  You should also think through the answers to these questions as you are deciding whether or not to clerk.
The value of your clerkship should not necessarily be viewed as a tool to make you marketable.  Clerking is something that gives you tools and memories that most clerks carry with them throughout their careers.  When you sit on the judge’s side of the bench, you get the feeling that you are really part of the legal process and have the idea of how decisions are made and the implications these decisions have on peoples’ lives.  Most clerks describe the year they spent clerking as the most relaxing, intellectually challenging and interesting year of their lives.  And this is really the essence of a clerkship.  It allows you to see the inner workings of the legal system, work closely with a judge and will provide you with a level of illumination about the legal system itself that you will carry with you throughout your legal career.

My belief is that you should not clerk simply because you think it is something that will get you a better position.  A clerkship is something that you should do because it will add depth and meaning to your future legal career.  I do not believe that a state court clerkship (especially with an appellate judge) can possibly hurt your marketability.  Indeed, the skills and understanding you pick up during your clerkship will be something you can carry with you throughout your career.

Conclusions In order to determine whether you should take a state court clerkship, it will be important that you analyze whether or not you want to work in the area of the country where you may be clerking.  While a state court clerkship is typically not as prestigious as a federal one, it is something that can provide you with important local contacts and knowledge of state law.  More importantly, I seriously doubt that a state court clerkship will hurt you.  Instead, a state court clerkship will provide you with tools and an understanding of the legal system you can carry with you throughout your career.

While I have saved this for last, I believe that an important component of your question involves a brief discussion in this conclusion.  You are a second year law student and it is only December.  If your goal is to be marketable to a law firm, you may be “barking up the wrong tree” at this point by simply seeking a clerkship.  Instead, you should accelerate your job search and apply to more law firms and look at more sources of information if working in a law firm is something you want to do.  If you are considering accepting a clerkship just to make yourself more marketable, you are not doing yourself, the judge you will be working for, or the justice system itself any favors.

Post Footer automatically generated by Add Post Footer Plugin for wordpress.

Resume Referrals, How to Choose Wisely

With regards to resume referrals, candidates often ask me if it is better to use a recruiter or to ask an acquaintance/friend to pass along their resume to a law firm.  My answer is that, it depends.  Personal referrals can be successful, but candidates should try to verify a few things before handing their resume off to someone.  Here are a few things to consider:

1. Do you feel that your contact will be able to represent your candidacy strongly and zealously?

2. Are you confident that the contact you want to use is respected and has a good reputation at the firm?  In addition, are you sure that your contact is not in danger of being laid off or fired in the immediate future?

3. Are you sure that your contact likes you and in fact wants to work with you in the future, should you receive an offer at the firm?

4. Do you trust that your contact will follow up with the firm and its partners, on your behalf?

5. Does your contact know enough about you and your professionalism to act as an informal reference for you?

If you have answered in the affirmative to the above-mentioned inquiries, it may be a great idea to ask a qualified personal contact to submit your resume to a firm, on your behalf.  If you are unsure about some of the above questions, however, it may be better to utilize a recruiter for your law firm search.  If you a find a diligent and well-connected recruiter, this person will be able to strongly represent and market you to the firm of your choice.  Additionally, you can be confident that you are on the “same team” as your recruiter, as you both of you have the same end-goal in mind.

Thus, if you find yourself choosing between utilizing the services of a recruiter or a casual friend/contact at a firm, think things through and choose wisely!

Post Footer automatically generated by Add Post Footer Plugin for wordpress.

The Downturnaround

New York Magazine debuted a new feature for their magazine, called the “Downturnaround.”  http://nymag.com/daily/intel/2009/01/the_downturnaround.html.  In it, the author’s look for evidence that not everything in our economic landscape is so dire.

I’m hoping it soon becomes irrelevant (you know, because all the news is positive?)

I appreciate this slightly tongue-in-cheek attitude, though, because I’m tired of newspapers and blogs asking us if this is the next great depression.  I get it, it’s fun to attach labels, but it’s not really moving the ball along, either.  People are struggling, so let’s help move through to a place with less struggle.  All of this drilling down on the negative is getting old, quickly.

I was just talking to someone fairly in the know with respect to the direction we’re taking.  He’s realistic, informed, and bright.  There is no sugar-coating the difficulties, and there are more coming for some sectors of our economy.  But lots of folks are already gearing up to invest in the future.  I guarantee you they aren’t shutting down because of the bad news–they are identifying and capitalizing on opportunity.  Yay downturnaround!

Post Footer automatically generated by Add Post Footer Plugin for wordpress.

What I Have Learned About Interviewing In Law Firms

What are the most important rules of thumb for attorneys to remember about job interviews?
- Dress for success.
- Give concise answers. Long rambling answers will always negatively affect your chances of landing the job. Let the interviewers draw their own conclusions.
- Don’t get into detail about previous work. Revealing too much about old jobs, clients, or cases will make you seem untrustworthy.
- Be aware of your body language. You can say a lot without opening your mouth, so remain conscious of it.
- Be honest. You’re not expected to be superhuman, so stretching the truth can only get you into trouble.
- Be prepared. Come into the interview knowing what you want to get across and ready to take on some tough questions. Know what’s on your resume. Getting caught off guard by something on your own resume reflects poorly on you.

What is the best way to develop a rapport with the interviewer?
- A job interview is like a blind date in that both sides are a feel a little nervous and forced.
- Standard blind date rules apply: nice handshake, maintain eye contact, smile when appropriate, and always listen!
- Listening is the most crucial part. It can be difficult for attorneys to get out of talking mode, but the interviewer should do about 80% of the talking.
- Paraphrase what the interviewer says back to him or her to show you are paying attention.

Is there a decent way to answer the dreaded question “Tell me a little about yourself”
- Most people are uncomfortable with it, but it’s really a great opportunity to make an impression.
- Treat it like an essay in school and think about it before hand.
- Draw a correlation between how you describe yourself and the job description, be subtle, but connect your personality with the firm’s work.

“What do you know about our firm?” How can this question be best handled?
- If you’re using a recruiter, they will do the necessary research and tell you everything you need to know before hand.
- If not, always do your research. Use the Internet.
- Learn about the firm’s philosophy, successes, and history.

Can you recommend any particular resources for doing research on a firm prior to the interview?
- Most firms now have their own web pages. Try finding the firm on Google.
- Judged.com has law firm profiles, salary information and reviews from the attorneys who work there

What if you’re asked to address your personal weaknesses?
- This can be turned into a positive as well; say you’re a workaholic, that you can’t let a problem go until it is resolved.
- It’s best to keep everything positive, that way you create a positive association in the interviewer’s mind.

How do you address inappropriate questions, like are you married, or questions about politics?
- If you’re uncomfortable answering a question, and it is indeed inappropriate, just ask how it is related to the job.
- Be polite even if you think it’s inappropriate.

The adversarial nature of lawyers, does it work against attorneys in a job interview situation?
- A job interview is not a test of wills, it’s an opportunity to demonstrate that you can think, listen, and articulate.
-Coming off as pushy or arrogant is a turn-off. Even if the job requires aggressiveness, you don’t want to seem like someone who is difficult to deal with.

What’s the best way to summarize your entire background? Even for law students and young attorneys it can be difficult to encapsulate their whole history in a few sentences. For experienced attorneys, it can be a nightmare.
- Stick to what’s relevant for the job you’re applying to.
- Refer to the resume; make it easier for the interviewer.
- Bring a list of representative casework.

What about underqualified attorneys? How can they address a question about their background?
- The interviewer may have already made up their mind about whether you’re over or under-qualified, but you can make up for a lack of experience by expressing a personality match with the firm.

How about after the interview… thank you letter or no thank you letter?
- The cons of the thank you letter outrank the potential benefits.
- Even the most gracious and classy thank you letters can backfire.
- They can make you seem desperate like you have no other options.
- Its best to leave on a high note and thank you notes give you an extra opportunity to screw up.

What’s the best way to handle a bad interview?
- Put it behind you.
- Don’t let it get you down because everybody has bad interviews.
- The most important thing is to always appear enthusiastic. After a bad interview, be sure not to let it show in the next interview. Lawyers need to be “up” when appearing in front of judges or clients, so it is crucial to show that you have an upbeat personality.
- Getting rejected after an interview is usually not your fault. Internal firm politics and issues of personal chemistry generally play a very heavy role in employment decision-making.
How can a qualified attorney screw up in the interview?
- Showing up late is a sign of disrespect.
- Criticizing your last job is a major red flag.
- Lack of preparation will always make you look bad.
- It’s important to be confident, but don’t be arrogant or act like loose cannon. Never appear as though the job isn’t important to you.
- Don’t lie! Getting caught in a lie is the worst way to spoil an interview.

“Why are you leaving your present position?” or “Why did you leave your present position?” — how do you address this? What if you parted on bad terms?
- You never want to say anything negative about your old firm.
- You don’t want to seem like a gossip. They will think you might badmouth them if they hire you.
- Turn it into a positive. Say that you want increased responsibility with a firm that offers growth or a firm that is a match with your personality and skills.

What about “How did you do in law school?” Can you honestly answer the question if you didn’t do well in law school or went to a bad school?
- Be honest. If you had good grades or went to a good school, it’s a plus.
- If you don’t want to mention the grades, steer the conversation to something worthwhile you did in law school (extracurriculars).
- Don’t be embarrassed of “ok” grades; grades aren’t everything especially if you’ve been out of school for a while.

How important are the clothes you wear?
- Clothes aren’t the most important factor, but they can’t be underestimated.
- No one ever got a job for dressing nicely, but people have lost out on jobs for not dressing nicely.
- Always go for a more conservative style of dress:
-  Men: suit, tie, leather shoes
-  Women: business skirt, low-heeled conservative shoes; avoid perfume and flashy jewelry.
- Even if the firm is more casual, dress conservative for the interview.

Any advice for the shy? How do you appear to be confident when nervous?
- Rehearse! Write up practice questions and answers.
- Do it in front of the mirror.
- Have a friend or relative ask you questions.
- Be thoroughly prepared for every possible question. Its better to be over-prepared than to be caught off guard.
- Be conscious of the telltale signs of nervous behavior, fidgeting, stammering, saying “you know”
- Try to relax, but don’t get too relaxed. Revealing too many personal details, taking off your shoes, or treating the interviewer like one of your pals can make you look like a crazy person.

What are the differences in interviewing with a big firm vs. a small or mid-sized firm?
- Many big firms have a set of procedures for interviews and things are more rigid. They will often have callback interviews, which is not a guarantee that you will get an offer.
- Smaller firm interviews can be less formal sometimes, but you should always appear conservative even if the interview is less formal.

What are the differences between interviews with associates and junior partners and interviews with senior associates and partners?
- Junior partners and associates are still “gunners” who are often in competition with the rest of the attorneys. Do not act too competitive or they might see you as a threat. Act friendly.
- Older partners aren’t usually caught up in competition with the rest of the staff. They will want to see a competitive edge. They will also be more concerned with things like grades. Act hard working and determined.

How should an attorney handle an interview in an unconventional situation? Law firms will often take you out to lunch or for drinks to get to know you.
- The worst mistake is to get drunk. If the interviewer is drinking, have the same thing and take it very easy.
- Eat at the same pace as the interviewer and only order the basics. Don’t order an appetizer or desert if the interviewer doesn’t, etc. This ties right into the whole notion of appearing conservative at all times.
- Mind your manners and always treat your servers with respect. The same goes for receptionists in the office. No one wants to work with a jerk, so always be courteous to everyone in the entire job interview process.
- Don’t let your guard down. Unconventional interviews like this test mainly your small talk skills, but you should approach them with the same level of respect and enthusiasm as any other interview.

What about videoconference interviews?
- Technology is advancing and videoconferencing is becoming more and more common.
- It’s a great way to look for a job during a lunch break without battling traffic, etc.
- Don’t forget that they can see you. No nose picking, yawning, looking around the room.

How important is it to ask questions?
- It shows you’re paying attention and capable of critical thinking.
- Ask for more details about job responsibilities, how work is assigned, possibilities for advancement, and possibilities for independent decision-making.

What questions should be avoided?
- Don’t ask about salary, vacation time, working hours, start date.
- Don’t appear overanxious to get the job.
- Don’t express reservations about taking the job. If you have reservations, deal with them later. During the interview, your goal is to make a positive impression.

Post Footer automatically generated by Add Post Footer Plugin for wordpress.

The Perpetual Salary Wars

Back when I was younger and in college I remember being amazed that salaries at some of the largest New York law firms were as much as $50,000 a year.  This was not that long ago.  Since I wanted to be a lawyer from a fairly early age, that sounded like a pretty good thing.  By the time I had gotten out of college the salaries of the same firms had risen to $60,000 a year and by the time I got out of law school they were even higher. I remember when I was applying to law school thinking that a lot of people who were applying to law school also were applying because of the high potential salaries they could earn if they joined large law firms.

Every few years there is a “salary war” of sorts as law firms raise the salaries of their incoming classes.  In response to this, a lot of stuff ends up happening.  Since I am intimately involved in the legal industry I believe that I have a particular degree of insight into what happens.  In fact, I have been an attorney in a large law firm, have placed hundreds of lawyers, have hired numerous law firms to work for me and have had numerous people work inside my various companies as attorneys.  I want to offer some insights into what happens when a salary war starts.  I have seen this pattern repeat itself over and over again over the past several years so I believe it is worthwhile to examine the stages.

I want to note at the outset that the results of a salary war are something with deep sociopolitical significance.  These salary wars throw off results and meaning for years after they start.  These are, in fact, one of the most dangerous times to be an associate in a large law firm.  Markets operate in an efficient manner and are always seeking a state of balance.  Any state of disequilibrium can never last for an extended period of time

1. Law Firms Start Getting More and More Work.

The first stage that generally precedes any salary increase is law firms start getting more and more work.  Law firms will generally start getting more and more work due to an up tick in corporate work.  The corporate work itself that law firms due for their clients is often quite profitable for the clients and a lot of gratitude is set up whereby the clients appreciate the work that the corporate attorneys have done.  The extra corporate work generally comes about in a business environment that is growing and creating opportunity for businesses of all sizes.  Corporations start believing that they need more assistance with the work that they have and start giving law firms more and more work.

When law firm start giving more and more work to outside counsel this is generally a  sign of market inefficiencies at work.  Since law firms charge more than in house counsel, corporations will generally seek to do work themselves (with salaried lawyers).  The filtering of great reams of corporate work to outside lawyers and law firms is a sign of market inefficiency.

The increase in corporate work is a sign that work will likely increase among many practice areas.  For example, practices such as trademark prosecution and patent prosecution (signs of new company formation) will also generally increase with corporate work.  In addition, many types of work will increase as well.  It is not uncommon for a surge in corporate work to throw off a surge of litigation and other types of work to other departments in a law firm.

The reason that corporate work will often generate this sort of work at these times is due to the fact that corporate attorneys will start having increasingly close (and often new) relationships with clients and these clients will often be able to give them more and more work.  This is due to the fact that there is a healthy corporate environment and corporations will not be watching their expenses and so forth as closely.  When this starts occurring the reputation of law firms will also rise with the successes of their clients.

As law firms start getting more and more work they begin finding themselves in a situation where the partners of the firm are getting more requests for work than they have the resources to handle.  The law firms will give as much work as the associates in the firm can handle.  The law firms will also hold the prospect of partner (as they always do) as a tool to get more and more hours out of each and every single associate and thereby increase the overall profitability of the law firms.  In addition, the law firms will begin hiring aggressively at the lateral and other levels in an attempt to fill their needs.

Inevitably, the law firms will discover that they are not getting enough of the sorts of candidates they want.  What then ends up happening at most law firms is in a desire to get work done (and make more money) the law firms start lowering their hiring standards.  This should be a huge warning sign and it is something that can never last.  You need to remember that law firms are like organisms and will always move towards a state of equilibrium.

I remember during the hiring boom of 1999 seeing major first tier law firms hiring laterals and others who were not even at the very top of their class at fourth tier law schools.  This was a sign that something was wrong.  (More on these sorts of hires later.)

What then ends up happening is the law firms reach a stage where they simply do not want to lower their standards anymore and are not getting enough good people.  Law firms realize that they do not have enough people to do the existing work that they are getting and face enormous pressure to bring in more good people.  Turning away clients is not easy for most law firms.  They do not want to lose business and partners usually begin making “impassioned” please to their superiors and stating that they need to be in a firm where there are more resources to do work (remember partners get paid in large part based on the amount of business they bring in).

At some point some firms are at a point where in the race for lateral and other talent they feel they are losing too many attorneys to other firms.  Once this occurs a “boiling point” is reached and the decision to raise salaries begins to be contemplated.

I remember when Gunderson Detmer was exploding with attorneys in 1998 and 1999 and someone I knew received a lateral offer from there (Gunderson is also the firm that started the salary wars in 2000).  The firm sent her a giant gift basket and wines and was calling her on a daily basis telling her they really wanted her to come and so forth-this is not normal for law firms.  I remember a partner at Wilson Sonsini got down on one knee and begged her to come to the firm.  At the time I remember thinking to myself that this sort of behavior was highly and extremely unusual and would not last.

Finally, after a certain tension point is reached, one firm raises salaries for its associates.  Not to be outdone, other firms rapidly follow believing that this too will be a major factor in how they are viewed by potential hires.

Keep in mind it takes law firms a lot of time and resources to hire laterally and hire associates in the first place.  Firms are indeed competing for talent.

2. Salaries Are Raised: The Honeymoon Phase

Firms raise salaries at a point when they are generally “flush” with cash.  These rising salaries are something that at the time are not really all that threatening to the largest firms because there is an atmosphere of optimism and a great deal of work coming through the door.  Salary increases are justified within the firm as something necessary to keep growing with the new business flowing in.  Salary increases are also justified as something that all large law firms and competitive law firms have to do and is seen as a source of pride within the law firms.

It is important to note that the salaries are not increased from a source of rationality.  They are increased as “gut reactions” and as a way of keeping up with the Joneses.  The salaries are also increased in an atmosphere of believing that everything will always be good and that business is bountiful.

On a macro level, it is important to note that there are some deeper economic trends which govern times when salaries are increased like this.  Generally in most societies the increase in economic and corporate wealth increases due to advances in productivity and means of production.  For example, farming equipment and the use of animals at one time enabled the development of societies and cities.  This was a major economic change.  Other advances such as the automobile and the assembly line means of production brought about great technological change.  In the more modern day, the Internet and telecommunications environment brought about a great influx of wealth into IPOs and other sources of money in the late 1990s.

It was precisely this influx of money into IPOs and the optimism this created that led the salary wars that occurred in 2000. The corresponding exit of money from these markets is also what caused the crash and dearth of legal work.

What ends up happening when new technologies begin is that there is a rush of capital into these new technologies.  However, most of this capital is ill placed and simply chases after the wrong thing.  None of this is to say that the technologies and ideas that this money was chasing are bad-it is just that they money was going at the wrong people.  Following such a crash, what generally ends up happening is the technology is still around but money begins being directed at expanding the technology and broadly adapting the technology to the entire market.  The spread of the Internet and cell phones everywhere between 2006 and 2007-the mass adoption of these-is an example.  As this occurred by 2006 the stock market had again reached historic highs and more and more opportunity started being created throughout the market.  The salary increases in law firms of 2007 are something anyone could have predicted with an understanding of basic economics.

What happens, then, when the market begins to become completely saturated with a new technology that gave rise to the mass economic changes in the first place?  The answer to this should be pretty obvious.

As the salaries increase at these firms some other not so predictable results occur.  While middle tier and smaller firms may have been able to moderately (or completely) compete with the salaries that the largest law firms were paying prior to the salary increases, these same law firms are generally not built for the same sort of “competition” the largest law firms are and simply do not match these salary increases.  (As a side note: The ones that do match these salary increases can generally not afford to do so and often within a year or two merge with larger law firms to remain competitive!  In addition, these smaller law firms often simply go out of business because they feel they cannot attract attorneys to work for them at the salaries they  pay the partners and scatter to other firms in search of greener (i.e., more money) pastures and associates to do their work.)

Consequently, the largest law firms that have raised their salaries then begin receiving an increasing influx of interest from law students and lateral attorneys all wanting to make more money due to the higher salaries.  This is particularly pronounced in smaller law firms because the gap is often further divided between what they are receiving and the largest law firms are paying.  Law firms that do not match their salaries are left in a position where they are likely to lose associates due to these lower salaries.

Associates also begin to feel they are extremely valuable at this time.  Message boards popularity increases dramatically and the chatter and banter between associates begins to get somewhat out of control.  Interest in lateral opportunities outside of the highest-paying law firms increases.  Interest in relocating from lower paid to higher-paid cities increases.  Dissatisfaction of in-house counsel with their salaries compared to law firm associates, also increases.

The influx of interest in working for the largest law firms also emboldens these larger law firms who begin to feel they are very desirable places to work again.  With a heightened interest in working for their firm, the law firms start believing that their existing associates are more expendable.  The amount of work expected of the associates increases.  Some lateral movement also increases in response to the higher work demands.

Law firms also begin having many more people to hire due to the salary increases.  This means that they also increase their hiring.  More associates are hired and the firm will generally grow quite rapidly in a narrow space of time

As the firm grows so do the profits of the partners.  These rising partner profits become a further incentive for associates to work hard an make partner.

It is worth noting that in this atmosphere everyone is also not always happy.  While an exceedingly small percentage of the attorneys in America earn the sorts of salaries associates at the largest law firms do, the ones that do not never feel good about themselves.  Many feel there is something wrong with them and are very envious.  The truth is there is nothing wrong with these attorneys-they are simply not part of the same economic paradigm.
3. The Tide Stops Rising and Reverses

What goes up must generally go down.  This adage is true in the practice of law as it is elsewhere.  As salaries rise law firms begin aggressively increasing their overhead. Most law firms are not more than a month or two away from bankruptcy to begin with and at some point a series of economic events causes the amount of work flowing into a law firm to slow does.

This work can slow down dramatically or it can fall off a cliff.  I remember that I saw the market almost grind to a complete stop in November of 2000 from what had been a very, very brisk bit of hiring.  All of a sudden, it seemed, law firms simply stopped getting as much work as they had previously from their clients.  The work literally came almost grinding to a halt.  In other periods, this slowdown has been more gradual.

While this is not a paper on economics, the fact is that the good times cannot ever roll on forever in any economy.  As particular technologies reach a saturation point (or great amounts of capital chases inefficiencies and loses) things always have to change-unless there is a complete sea change in how things are done.  This is precisely what happens in large law firms now because they are so well connected with the forces of industry around them.

When the tide stops rising and reverses law firms simply cannot afford to pay as many associates as they used to.  In addition, they also have certain pressures which further complicate the situation. The largest pressure the law firms face is “You cannot take away something you have already given.”  Salaries therefore do not go down when the tide turns.  They remain where they were.  Bonuses may go down, however.  In addition, expectations of what is required generally dramatically increase.  So too does insecurity …

You must always remember that a law firm is a socio-biological organism and the desire of any socio-biological organism is to survive at all costs.  In order to survive a law firm must maintain its partners who are bringing in the most revenue.  This the most important thing for the law firm.  Consequently, when economic patterns in society change the law firm is very unlikely to suddenly start shedding its partners who bring in income.  Instead, it will do everything it can to hold onto its most economically productive partners. The law firm will also do everything it can to eliminate its economically unproductive partners and eliminate its excess overhead of associates.

Non-productive associates will immediately begin being let go in droves when the economy weakens and the work stops coming in.  The associates from the poorest schools and with the least desirable backgrounds and lowest billable hours will generally be let go first.  Associates who have made close alliances with the most productive partners will generally not lose their jobs.  Corporate attorneys will generally be the very first to go.  The associates in danger of losing their jobs may be moved to other floors of the building.

Corporations will begin being extremely conservative with their work once the economy starts changing course and will bring in as much of it in house as possible. Many legal projects requiring outside counsel will be put on the back burner until things change in the economy.  Many of these same corporations will simply go out of business.

Law firms will begin eliminating associates through “trumped up” negative assessments in performance reviews and also by eliminating a lot of lateral hiring.  This pattern will continue until the law firm stabilizes.  Some law firms simply “flame out” overnight like Brobeck did in the 2002.  The list of calamities will go on and on and on.

Many associates will leave the practice of law completely because there are not a lot of jobs in corporations either.  These associates will talk about wanting to do alternative sorts of legal careers.  Lots of families will be hurt and bad stuff happens.  The traffic to message boards will begin being filled with more gloom and doom-but less traffic.  Law school applications will decrease.  Hiring standards will return to what they were inside the most desirable law firms.  Associates will feel more expendible.

The pattern will repeat itself.

Conclusions

Not everyone wants to believe what salary wars mean.  What happens in this “war” is as old as the hills and the product of economic cycles that repeat themselves over and over and over again.

What I like to take from this pattern is this: You can either work on your career or in it.  The person who is a strategic player will always be watching for patterns and avoiding the negativity and issue surrounding it before it strikes.

You can also make the good work for you and if it is your moment in the site then please enjoy it-just always be aware that there is something else around the corner.  What you do in both good times and bad is a testament to your character and what will become of your career and the course of your life.

Post Footer automatically generated by Add Post Footer Plugin for wordpress.

What to Do if You Do Not Make Partner

Suppose you spend 7 years at a law firm and don’t make partner.  I know that not making partner does not always mean that you did crappy work, especially if they kept you there for 7 years.  What can you do in your career at that point?  Do you leave?  Are your chances of making partner anywhere greatly diminished?

It is hard to tell based on your question whether you are anticipating the possibility of not making partner someday, or have actually been ignored for partnership at your current firm.  Either way, you should remember that the partnership track is different from firm to firm.  You might have spent 7 years with a firm.  Some firms do make decisions about partnership after 7 years, however, many firms have partnership tracks based on 8, 9, 10 or 11 years.  At a firm with a track of 10 years, it would not be at all unusual to be a 7th year associate who was not yet up for partner.  In that situation, the fact that you aren’t a partner would not be any indication that there is something wrong with your legal presentation skills or your professional development.

Preparing for Partnership. However, if the partnership track of your firm is 7 years (as I suspect it may be, based on the question), it may be an indication that the firm does perceive that there is something lacking.  Your work may be excellent, but it may be that you have not developed any business, or have not shown enough management potential.  Of course, that’s entirely speculation.  Regardless of why an attorney does not make partner, it would be highly unusual for a lawyer to spend his or her career with one firm, and over the course of seven years, not get any feedback on whether the firm felt that the associate was ‘on track’ for partnership.  In essence, your path to partnership should be fairly well defined both by you and by the partners at your firm.  If you start considering what the issues are surrounding the partnership track for the first time after 7 years, you are a bit late in the game.

Whether a lawyer makes partner is not necessarily an indication of that lawyer’s abilities.  Again, depending on the firm, that is probably true.  Some firms hire many associates, and only intend to give a relatively small percentage of those associates offers of partnership.  In these cases, it is not unusual to not be elected partner, and as such, is generally not an indication that an attorney is not skilled.

Passed Up For Partner? Re-evaluate.  What do you do if you don’t make partner? Let me answer the question in two ways. First, a lawyer who doesn’t make partner at 7 years should immediately set about finding out what his or her firm’s criteria are for making partnership decisions.  ‘What is it that I can do to prove to you that I am worthy of this position?’ should be the first line of dialogue.  It may be that a firm wants to see more business development.  It may be that there are concerns about the lawyer’s work.  In any event, it is not sufficient to sit back and simply wait to hear whether you will ever become partner.  Although you would have ideally started dealing with these issues years before, there still may be time to define what hurdles you need to jump to get where the firm wants you to be.

Life Outside Partnership. In the event that the firm’s management has made it clear that a lawyer will never be a partner, should you leave?  That depends.  Are you happy and fulfilled at the firm?  Are there alternative designations or titles that might make you happy, such as of ‘counsel’ or ’senior associate?’  In that event, there may very well be every reason in the world to stay with your firm.  Many firms accommodate senior attorneys who are not partners, and those types of relationships are often quite successful.  In fact, there are many attorneys who would rather practice in this sort of a role than as a partner of the firm.

However, if it is your goal to become a partner at a law firm, and your current firm isn’t going to provide that opportunity, you may want to try to switch firms.  Whether you can readily change firms depends on any number of factors, including your location, your practice area, and your portable book of business.  In our experience, a portable book of business is the single most important issue for many firms looking to bring on a senior-level associate.  Without portable business, whether you can readily move from firm to firm is really dependent on a variety of other factors.  In any event, we believe that attorneys should focus on partnership issues as soon as possible.  Most firms begin reviewing associates 4-6 years into their practice specifically with respect to whether the associate is capable of becoming a partner in the firm.  You should strive throughout your associate career to find out what benchmarks you need to be meeting in order to reach that goal.  If you do not reach that goal at your current firm-all is not lost, and you need to evaluate how you would fit into another law firm practice in the future.

Post Footer automatically generated by Add Post Footer Plugin for wordpress.

Never underestimate the power of a positive attitude

A lot has been written about the power of positive thinking and a positive attitude.  I, myself, have read a lot on this particular topic.  But, a recent personal example has shed a whole new light on the power of having a positive attitude.  It has to do with a dear friend of mine whose industry is getting absolutely devastated by the current economic downturn–he’s in construction.  When news started coming out of impending layoffs at his company, he was sure he’d be one of the first to go.  Why?  He was the most recent hire and commanded a hefty salary.

At last, the day came.  People were called into the conference room, one at a time.  A few were given the news that it would be their last day.  Others were told they were being forced to take a reduction in hours and, in turn, a reduction in pay.  My friend was in the latter group.  His hours were cut and the accompanying pay reduction of 15% of his salary would have a most detrimental effect on his family.  Still, he thanked his employer and vowed to work just as hard on his reduced schedule as he had on his full-time schedule.

The next round of layoffs came.  Again, some were given the news that it would be their last day with the comany and again, some were told of further reductions in hours and, of course, pay.  Many lost their benefits.  Still, my friend was “spared” and expressed gratitude to his employer.

The company is now in its 5th round of lay-offs and everyday, my friend remains thankful that he still has a job.  He is searching for part-time work to set off the pay cuts he has taken but remains one of the hardest working individuals at his company.  Though he has taken a serious financial hit, his work ethic remains sound.

Not too long ago, he was in the office early one morning when one of the company’s founders arrived.  He thanked my friend for his hard work and said, “You know, a lot of people have been extremely rude and angry when we’ve informed them of the need for pay cuts.  While I understand we are delivering bad news, it seems to escape most people that were are, at the same time, doing everything in our power to keep folks employed as long as we possibly can.  I can tell by your positive attitude through all of this that you really do get it.” Suddenly, my friend understood why despite being the last person hired, he has yet to be let go.

It’s really quite amazing how much your employer will learn about you in these times of adversity.  Keep working hard and keep a positive attitude–it will pay off in the long run because your employer will identify you as a sound long-term investment.

Post Footer automatically generated by Add Post Footer Plugin for wordpress.