Salary Wars in Light of the Recession: Bridging the Associate / Partner Divide

Every day, we talk to both partners and associates at firms across the country, in every major legal marketplace. Because we are a recruiting company, these conversations often concern why a lawyer is dissatisfied with their current firm, or what kind of lawyer a firm seeks to hire. We have discovered that the salary increases that have taken place over the past several years have actually had the effect of straining professional relationships between partners and associates. This article will explore the division between partners and associates from three angles. First, we will discuss the complaints we have heard from and about today’s young associates. Second, we will discuss the impact this divide has had on the legal marketplace. Third, we will suggest how to handle dynamics at the interview stage, and how to position oneself as a lawyer who can contribute to a more collegial environment.

A little over two years ago, the associate salary wars began to affect most major legal markets. Although these raises came as good news to many associates, the long-term effect has been mixed. Certainly, we have not heard any lawyer tell us that having more money is bad. However, in some firms, there has been a backlash against those who enjoyed the salary increases, making life more difficult for some young associates. The dynamics are fairly simple. Many firms raised associate salaries to compete with other firms. Not all firms who raised their compensation did so willingly, and we have spoken with some partners at law firms who felt railroaded into the decision to raise those salaries. It’s not hard to imagine why: an increase in associate salaries may mean less compensation to the firm’s partners. Although every firm that raised associate salaries handled the expense in different ways, the more difficulty a firm had internally in making the adjustments, the more likely the salary issue created or magnified a division between associates and the owners of the firm.

Associates are Getting Richer. What’s the Problem?

Ultimately, it’s not important to decide the merits of who is right or wrong. What is important is to understand these conflicts, and to minimize the discord.

The complaint we have heard most often from partners at law firms is that junior associates have a sense of entitlement to both top compensation and an appropriate quality of life offered by a reduced workload. This may be because many current partners began as associates working longer hours for less money. At some firms, the perception is that associates simply do not work the kind of hours, on average, that associates worked 10 or 15 years ago. This may or may not be true, depending on the firm or the individual. What is true is that the attention to ‘quality of life’ among associates at large firms is relatively new. The fact that many associates started using the term quality of life at the same time the greedy associate boards popped up, is a difficult coincidence for the management at some firms. We certainly suggest that attorneys stay aware of the differences between firms’ lifestyle, compensation, or prestige. However, an associate who frequently compares his or her firm to other firms may create the perception of being ungrateful for the opportunities ‘at home.’ To demand that one’s firm pay a top salary while pushing quality of life issues, such as reasonable hours, may appear inconsistent.

Many associates do not understand why the partners at their firm are so unreceptive to talking about compensation and quality of life, when the associates are often the top billers, and generate significant income for the firm. “If I work big firm hours, I should get paid big firm salary,” is one of the complaints we heard from a lawyer working at a mid-sized Washington, DC firm. Younger associates want the management of their firm to realize that the marketplace isn’t the same as it was when the partners graduated from law school. Indeed, the demographic of young lawyers has changed considerably, and the shifts in the economy in the past decade have been unprecedented.

There is no right or wrong side to these arguments, but the problem of this division must be resolved. This tension was created in large part by the associate salary wars. We recommend that attorneys try to put themselves in each other’s shoes. Remember that partners are owners of the firm. They have the responsibility for keeping business with the firm, and increasing associate salaries did seriously affect the bottom line at many firms. On the other hand, partners need to realize that well qualified associates are necessary to any good practice, and keeping those associates by ensuring that they are well respected, valued, and paid should remain an on-going concern.

How the Salary Increases Affected the Marketplace.

The short-term effect of the salary wars was, obviously, to put more money into the pockets of associates. For virtually every firm, the next effect was more subtle: hourly billable rates for associates were raised in some cases, while some firms decided to take the money out of the partners’ share of the pie. Some firms raised associate salaries without a peep, while others did so only after being directly petitioned by their associates. Associates began ranking firms in their city by how much and how quickly salaries went up.

We are certainly not suggesting that firms all react the same as a result of salary increases. Quite to the contrary, each firm handle the salary increases (or in some cases, ignored them) in its own way. However, there were trends that emerged as the firms reacted to the salary wars. In the best circumstances, firms were happy to raise salaries to control their attrition rate and to reward their associates. Some firms, however, took a harder line, and required more from their associates in exchange for more money, such as increasing billable hour requirements.

Several problems emerged. One was compression of salaries. So, while a first year got a raise and started making perhaps $125,000, often an 8th year associate in the same department got only a small raise, or no raise at all. Obviously, there is great potential for resentment in such a case.

As the economy regains a more certain footing, what can associates and partners take away from the lessons of the past three years? In the same way that the economic slowdown of the early 90’s affected the hiring (and firing!) practices of firms, the latest recession will be a learning tool for both law firms and lawyers alike.

For some associates, the lesson learned was that following the money is not necessarily a good long-term strategy. Several of the firms who lead the pack in terms of raising associate salaries, and who consistently outmatched starting salaries, have had some of the most dramatic lay-offs. For a handful of lawyers, the lure of 5 or 10 thousand more dollars per year was enough to convince them to change firms, only to be looking at a mass layoff 18 months later. Therefore, we believe that the single most important lesson learned is that salary distinctions of several thousand dollars should not be the principal reason for changing jobs. Although there is certainly prestige in being associated with the highest paying firm in your area, top compensation does not insure long term stability, or even job satisfaction.

When a firm’s dialogue turns entirely to billable hours and base salary, everyone involved is missing the bigger picture of what associates and partners have to offer to each other. It would surprise you how frequently we hear from lawyers that they want to look for new opportunities - and how infrequently we hear that a lawyer wants to find a new job to make more money. Although it’s easy to get caught up in money issues, we do not find that making the most money on the block is what defines success or satisfaction for the overwhelming majority of lawyers.

On the law firm side, we believe that the salary wars and the recession that followed were a lesson for firms that the quality of their relationship with associates can quickly become widely known. The Internet has the capability of disseminating private firm information to virtually every other young lawyer in a matter of seconds. In some cases, internal memos to associates regarding salary increases were immediately posted to the Internet.

Law firms and the lawyers within them will continue to make adjustments with respect to the salary raises, the economy, and their ongoing client demands. Going forward, we believe that it’s important that each firm review the effects of the salary wars have had on internal relations, and seek to address any divide that may have occurred.

I’m in the market for a new job. What does that mean to me?

In some instances, we’ve been approached by lawyers who are interested in opportunities with a new firm because of the tension within their own. In many instances though, lawyers who are unhappy with the divide between associates and partners should look for solutions within their own firm. There have been significant changes in compensation and hiring over the past several years, and it may take many firms some time to work out the issues that arise from the associate salaries, as well as from the depressed economy. In the event that a lawyer has made a decision to move, he or she should keep in mind that how they are perceived at the interview has been affected by these difficulties.

The single most important way to overcome whatever remaining tension may exist is to be enthusiastic. The “what’s in it for me?” attitude, which may have worked two years ago, is generally unacceptable in this hiring climate. Interviewing for a position should be a dialogue about what contributions the interviewing lawyer can make to the firm, and not simply what he or she can take out.

On the law firm side, it’s important to note that many lawyers’ agendas have changed. Stability and profitability is an increasing concern for lawyers, and an interviewing attorney should provide enough information for an interviewing lawyer to understand the firm’s environment. Firms who believe they may have gotten a bad reputation throughout the salary wars should work to correct this.

Conclusions

Many associates have changed their focus from associate raises to lay-offs, bonuses, and workload, given the recent downturn in the economy. However, it is important to remember that the associate salary boom of the late 1990’s may still have an effect on inter-firm relationships, and how partners and associates view each other as a whole. Where those tensions exist, lawyers should be aware of how they view each other and themselves in the sometimes strained relationships within the firm and the firm’s economy. If there is any good to be found in the recent recession, it may be that it provided a little perspective on how we view each other, and how lawyers define security and success within a firm.

What’s the Best Way to Develop Business?

When people are in law school and even in their first few years out of law school they come to believe that the most important components of a successful law firm career involve (1) billing lots of hours (i.e., working hard) and (2) doing quality work.  Very rapidly, however, young lawyers come to understand that just as important as doing first rate work is their ability to generate business for the firm that they work in.

The purpose of this article is to examine the most important methods attorneys can use for generating business.  In many respects, this may be one of the most important articles you ever read-your success in generating clients and business will in large part determine your eventual success as an attorney.  More important that your success as an attorney, however, will be your security as an attorney. Having a lot of business is essential to having security as an attorney because you will always have work to do.  Moreover, having work to do and will provide you the platform to hire others to work for you, to build your organization and to further your career.  In my opinion the some of the greatest success (from a psychic and material aspect) you can have as an attorney comes from having a lot of work to do.

A. Remember Every Person You Meet is Someone Who Will Potentially be in a Position to be a Future Client

One of the largest mistakes attorneys (and even law students!) make is not realizing that every single person you ever meet is someone who is in or will be in a position to one day be your client-or even be your client right now.  Many attorneys believe that they are often being “smart” sizing up people that they meet and trying to understand whether or not they are people who could potentially one day be their client.  They may assume, for example, that the janitor in their building could never be their client.  They may assume that the person who sells them auto insurance could never be their client.  They may assume that someone who was once their biggest enemy could never be their client.

How about if the janitor’s son went to Harvard Law School and he was now the General Counsel of a major publicly traded computer software company in California?  What if the auto insurance salesman was the 21 year old son of the CEO of a major American insurance company?  What if the biggest enemy of the person was the owner of a major company that does work for companies in the pre-IPO stage?

When I was practicing law I received hundreds of thousands of dollars in business from one of these types of clients and heard stories about people getting business from two other similar types of stories.  Each of these clients if properly served could have made the career of the attorney involved.  Millions of dollars in fees could have been made.  Each of these clients above went to high paying ultra-prestigious law firms for their work.

Whatever you are doing and whomever you meet you need to realize they are potential business for you and/or your firm.  It does not matter if you are at a ultra expensive and prestigious law firm or if you are at a smaller law firm—or even if you are just practicing on your own.  Every time you meet someone they are a potential client of yours.  How you act towards others will also determine whether or not they are likely to be your client in the future.  Take no one for granted.
1. Do not take any vendors you deal with for granted
Your dry cleaner, the person who mows your lawn, the mechanic who fixes your car—whomever you can imagine-is someone who is a potential source of business for you.  Stay in

2. Do not take your peers or subordinates for granted
One of the best sources of future business for most attorneys is generally the people they worked with early in their career.  This includes your peers in college, law school and your employers.  Make sure you treat everyone you come into contact with as if they could be a future client.

3. Do not take your relatives for granted
Relatives can often be a great source of business.  Relatives love to tell people you are a lawyer-or even use you for legal work.  Treat them will too.

4. Do not take your former employers for granted
Your former employers (and all of the people within them) will move to other employers and potentially be in a position to give you business.  Your former employers may also have cases and other work they do not want to do but which you can do.  Whatever the case-you need to realize that your former employers are people who are in a position to give you a great deal of work.  DO NOT burn bridges wherever you go and make sure your former employers are always your advocates.  Your former employers will be in a position to give you work and talk about you to others who can also give you work.

5. Do not take your superiors for granted
If you do a good enough job impressing your superiors they can be a great source of future business for the same reasons your former employers can. Always go above and beyond the call of duty.

There is no one you should ever be taking for granted. Whomever you encounter is someone who is always a good potential source of business and work for you in the future.  Remember this and treat the world and everyone you encounter-both inside and outside of work-as a good source of work.
B. Talk About Your Work

About 10 years ago I was in Charlottesville, Virginia in a hotel ball room watching an attorney from a very prestigious large Southern law firm give a three hour power point presentation entitled “Developments in Franchising Law”.  Every local owner of a Burger King, McDonalds, Subway and other franchise had apparently turned out for this bizarre event.    I had been required to go to this for a class on Franchising Law I just happened to be taking.

I call the event bizarre because it was very funny.  The speaker was mid-60s old southern gentleman type of lawyer in a bow tie who spoke for some 3 hours about franchising law and was so boring and his material so dry and irrelevant to anything that I could scarcely believe that I was alive throughout the 3 hours.  The lawyer also seemed very bored by the subject matter he was delivering. In fact, there were several points where I had to hold myself back from laughing I was so bored.  Other members of my class were reached a point where they were afraid to make eye contact with one another for fear they would also break into hysterics.

Incredibly, all of the local owners of the franchises who had been invited to this monumentous event seemed to keep sitting up at attention the who time and were the only ones (besides the law students) who made the effort to appear to really be interested in this.  Over hore d’evors at the break I spoke with the owner of the local JaniClean franchise and another franchise there and realized no one seemed to have any idea what this old lawyer was talking about.  They all agreed , though, that he must really be on top of this material.

When the event ended, however, I watched as one audience member after another went up to the lawyer and told him they “enjoyed” his talk, asked him for a business card and told them they wanted to discuss one issue or another with their particular franchise with him.  The lawyer must have picked up 10+ clients that day.  Right then and there I realized that something very significant had occurred: Just because the lawyer had spoken so much about his work everyone presumed he was good at what he did and was eager to hire them as their own attorney.

If you want to get business you need to talk about your work.  People need to see you as an expert and believe you are very good at what you do.  People need to believe they can turn to you for advice about what they are doing and also need to believe that you are enthusiastic about what you are doing.

When you think about it-the people you want to go to for assistance and turn to when you need help are most likely to be the people who seem most enthusiastic about what they are doing.  You need to realize that sounding enthusiastic and being enthusiastic is likely to get attract people to you.  Writing articles is an example. Giving public talks is another example.

Talking about your work goes deeper than simply writing articles or giving talks, however.  Talking about your work means getting enthusiastic about your work with everyone you encounter.  Talk about your work with people in your office.  Talk about your work with your clients-just keep talking!

The reason talking about your work is so important is that people remember those with enthusiasm about their work.  This also goes for your peers.  You want to be remembered by everyone you come into contact with as someone who talks about their work.

Remember the example of the boring attorney I saw talk about franchising law a decade or more ago.  Think about what would have happened with this attorney had he really been interesting!  Here, he simply talked and got a lot of business.  You need to speak to get business too and I urge you to speak a lot about what you do.

One of the most effective marketing lines I ever heard was “You can build a better mousetrap but if the world does not know about it they will beat a path right around your door.”  People need to know you do what you do and they need to think you are enthusiastic about what you do. That is why restaurants and others put giant bill boards on the highway-and some even put more billboards saying things like “Only 4 more exits until the best green pea soup in Ohio!!” then “Last exit before the best green pea soup in Ohio!!”  People get enthusiastic about something as mundane as green pea soup because the restaurant talks about it!  So too should you talk about your work.

C. Set a Good Example

Setting a good example means that you walk the walk and talk the talk of the sort of attorney others would want to be represented by.  This is exceptionally important and others need to believe you are the sort of attorney who could effectively represent them and would always looks out for their best interest.

At the outset I should note that I have the twin qualifications of writing this article of formerly having been an attorney with business and now being in a position where I am involved in hiring outside counsel for various companies here.  There are several issues clients are likely to be concerned about when hiring you.

One of the most important issues clients are likely to be concerned about is your perceived level of honesty.  I know that I would never want to hire an attorney who seemed the least be dishonest-at all.  The person that is writing down their hours on your behalf is someone you want to insure is telling the truth.

I know when I was practicing law I knew of at least a couple of attorneys who made up their hours—including a high ranking partner in a law firm I worked in (which will go unnamed).  I remember an associate working all weekend and completing an assignment at 7:00 am after being up since Friday night and then going to change and take a shower.  When he returned a few hours later and went into the office of a partner to discuss the assignment he had put on his chair that evening he saw a timesheet that indicated the partner had assisted with the brief all weekend and worked some 25 hours that weekend-the partner had not worked at all.   Now from my standpoint and others, I am sure not likely to ever want to use this partner for any work ever.

The issue goes much deeper than this, however.  If as an attorney you are dishonest at all in your personal (or work life) in the least then this will get out.  You are always being tested-whether it is in the store when the clerk gives you change, you name it.  People want to deal with those who are honest.  You want to be dealing with people who are honest as well.  Your clients will ask people who may refer others to you if you are honest-they will give their “honest” opinion on most occasions.

Another example which comes to mind is the “partying” attorney who goes out and will take their clients out for a wild substance packed evening.  No one wants an attorney who is out of control or does not handle themselves in a good way at all times.  Clients want people who are likely to do the best work possible at all times.

When you examine most organizations which are very successful and have been around a long time it is very easy to see that these organizations tend to look for “steady” people who are not particularly mercurial and seem very competent.  This is something that is needed at all companies and companies look for this because they need people like this to run successfully.

You need to act and behave at all times as you would want your attorney to act and behave at all times.

D. Be Interested in Others and Their Legal Issues

People want to be assisted by people they perceive as caring about their problems and issues.  You need to be interested in the work you are doing.  The more interested you are in the work you are doing the better you are likely to do at this work.

If you are interested in the work you are doing you will also have the tendency to seek out others and provide them advice.  People will also be more receptive to your advice because they will realize you are interested in what you are doing and care about what you are talking about.

When you are interested in others and their legal issues you will develop a mindset where you will do your best to speak with others when stuff comes up that you can assist with.  You will also do your best to listen and take the time to understand what other peoples’ problems are.

Understanding what other people problems are is something very few attorneys are good at-or even know how to do.  When you take the time to listen and insure that you understand where people are coming from they will be grateful. In addition, when you take the time to understand what others’ problems are they will feel invested in you.  When others feel invested in you they want to work with you more closely.

Allow your clients (or potential clients) to speak at length.  This is something that will pay huge dividends.

I remember a few years ago when I was speaking with a firm outside of the law (a branding firm) about doing some work for a Juriscape company.  At that point I had few bids and both were roughly the same price of $250,000.  I remember one of the companies that was going to be my first choice was invited to come by my office and meet with me.  I had several concerns I wanted to speak about.  I never really got the opportunity to speak, though.  What happened was the representative from this company spent all the time of our meeting speaking about what was important to them-the fact that they were a big company, the fact that they had done a lot of work for others in the past, the fact that they had good people working for them-and telling me what I needed, that they never gave me the opportunity to say a single thing about what was important to me.  Due to this I ended up not using the company.

When you think about it the people were are most interested in and like the most are the people who are most interested in us.  When you are interested in other people you make them feel acknowledged and understood.  Being interested in other people also makes them believe you are interesting (even if you are not!).  Being interested in other people is crucial to being a good business generator.

A final point is that attorneys are there to serve others.  The more you learn about your clients and potential clients the better you will be able to potentially serve them.  Learn everything you can about your clients and potential clients to serve them better.  The more you know the more you can assist them with (or offer your assistance with) and the more potential work and business you will have.

E. Get Out! And Form Relationships

If you do not start somewhere you will be nowhere.  In order to get business as an attorney you need to get out and meet people and push your comfort zones. You need to learn how to break down the boundaries of formality and form relationships with people outside your immediate influence.

If you are a young associate remember it will be very difficult to ever build a book of business (you still can, but it will be more difficult) if the only people you know are those you are meeting through work.  You must get out and meet people outside of work.  This means going to events where attorneys are likely to be present but it also means going to events where you are likely to stand out because you are an attorney.

There are millions of potential social situations you can inject yourself into.  It is important that you get involved in any many social situations outside of work as you possibly can.  These social situations will give you the ability to meet new people and connect.  These people may have the ability to refer relationships to you-or they may not.  If you do not start and form relationships, however, then you will not have be someone who can get business in the first place.  Get out and form relationships!
F. Specialize!

You need to specialize.  An attorney with a certain specialty is likely to get more work along the same specialty when it becomes available.  People will simply refer to you.

There are many ways to specialize.  If you specialize in litigation that is a start.  If you specialize in representing manufacturer of disposable lighters that are defective and injure people that is probably even better.

As an attorney you need to also put on your marketing hat.  Being a good marketer means being seen and being easily found for one thing or another when people need your service.  If you are good at what you do then and you are specialized then people will find you.

There was a period in around 1997 until roughly the middle of 2000 when seemingly anyone with a decent idea could make some money on the Internet.  This was called a period of Internet “land grabbing” and people were making great sums of money.  Notwithstanding, during this same period of time most people were “losing” great sums of money.  What is interesting to examine, however, is the few people who are making money.

The few people who were making money were setting up small businesses on the Internet selling simple specialized products.  They were selling bird cages, they were selling replacement batteries for cell phones, they were selling cases for Palm Pilots and other similar knick knacks.  The reason people selling these things were making money in these early days of the Internet is due to the fact that they were the ones being found when there was a need for a particular product.  Think about it: If you need a bird cage and searched for a bird cage person you would want to use the person who appeared to be an expert in bird cages.  In fact, this might be the only person you need.

If you need an attorney to help you with the regulations in Franchise Law then you are likely to use the one who appears to be an expert in franchising-especially if there is only one attorney in your area doing this.

The specialist usually gets the business.  If you want to get work then figure out how to make yourself and your practice seem as specialized as possible.

G. Be Familiar!

In order for people to do business with you and choose you as their attorney you are going to need to be familiar-very familiar.  This means phone calls on peoples’ birthdays.  This means frequent letter updates.  This means forwarding articles of interest. This means going out of your way to let people know you are there.

It does not take a ton of effort to let people know you are there.  In order to let people know you are there it is important to make contact with them as much as possible.

When I was a young attorney I was so eager to get clients and gain business that I sought out the motivational guru for attorneys looking to get business.  His entire process involved having people write down the names of everyone they know and consistently making contact with them.  Through this method it was believed that you could get lots of work.  Making sure people know who you are is essential.  Some years later I read a book called The Referral of a Lifetime which has a similar sort of system (this book is very good and I recommend it highly-it will help you get clients).

If you are going to get business you need to be familiar.  Once you get clients you also need to stay and be familiar.  Be familiar!

H. Study Marketing

Read articles and books about marketing.  Go to a marketing seminar.  Pick ones that interest you.  Get interested in this subject matter as much as you can.

I constantly recommend people study marketing in a way that suits them-only read the stuff about marketing you are interested in.  The more you study marketing the better you will become.  Every form of marketing can translate into the world of getting legal clients.  If you read about copyrighting this may assist you with writing letters to get clients.  Learn and study marketing.  The effort you put in studying marketing is likely to pay far more out than you put in.

I. Don’t Quit

One big client (or several) can change your life and your entire practice of law.  You need to implement a strategy where you are resilient and always looking for clients.  Just because you do not think you are not good at marketing does not mean you are not good at marketing.  Some of the attorneys with the most business out there are the biggest nerds and/or social misfits you ever met.  Some of the attorneys with the most business are also the most introverted.  In order to get business, however, you are going to need to do something because if you do not start somewhere you will be no where.  You are also going to need to not give up.  Some relationships can take years to develop.  If you try one strategy and it does not work then try another.

Conclusions

At its highest level, attorneys who are good business generators may hardly practice law at all.  The proverbial retired senator or judge may be used more for their name cache and business generating ability than their desire or ability to practice law.

I want to bring up a point that is pretty disturbing and one I hope will change your life.  When I first became a legal recruiter and became known as a very good one I started getting an inordinate amount of calls and requests for meeting with partners of law firms who wanted to move.  In order for a legal recruiter to place a partner the partner generally needs to have enough business to sustain them (generally around 3-4 times their anticipated salary) and a long history of having this much business.  Therefore, a partner making $300,000 a year will need to have $1,000,000 in business in most cases.  This is just the way it is.

A lot of the calls I received were from partners who had no or very little business.  Most of these partners had children in school and had been practicing for 25+ years.  In many cases I saw partner in major AmLaw 100 law firms who were being paid less than 1st year associates because they had no business.  Their houses were unkempt and these partners had a very hard time.  You would meet them and the lack of confidence on their faces and the demoralization they had was apparent.

Every day partners with no or very little business at law firms all over the United States are calling BCG Attorney Search looking for new jobs.  Privately, BCG Attorney Search recruiters could tell each other the names of partners with no business at firms throughout the cities they practice in.  In the majority of cases these partners are eventually told they need to be out of the firm in six months, a year-or whatever.  The consequences can be dramatic and painful.  Because I have seen the results of this and it is so sad it has affected me personally I actually started numerous other companies besides BCG Attorney Search to help attorneys like this and others get jobs.

The point I want to make that you need to understand is that if you do not work hard to generate great amounts of business you will be at the mercy of your firm for your entire career.  They can pay you what they want to and they can let you go if they want to. And when a firm lets go a partner with no business the partner often has no place to go because most firms only want to hire partners with business-going in house is not always easy either.

You might as well know that the most important thing you can do as an attorney for your career is to develop a lot of business.  Your life and happiness in your career will largely depend on this.  If you do not do this then you will eventually somewhere down the road find yourself in very serious trouble-or simply exploited and at the mercy of your employer into your retirement.

Get business.  Follow the advice in this article.  A successful career depends on this.

The Importance of Portable Business

If you are a senior associate, of counsel, or partner, how important is portable business when making a move to another law firm? Most junior to mid-level associates are told to concentrate on developing their skill sets so they can become great attorneys. So, you put your head down, do good work, learn from the senior associates and partners, get good year-end reviews, and you feel you are learning and growing as an attorney. Before you know it, you’re a senior associate, respected by your peers and performing well on all work given to you. From this point, there are three things that can happen if you want to stay in a law firm environment: (1) you leave your firm, (2) you are promoted to of counsel at your present firm, or (3) you become a partner at your present firm. We will analyze whether portable business is important in all three scenarios.

Senior Associates
Depending on the region of the country and the size of the firm, a senior associate can range from 6-12 years of experience in a particular practice area. If you are a senior associate, you are probably trying to make partner at your present firm. If partnership is important to you and you believe down the road you’re not going to make partner at your present firm, you should think about leaving your firm immediately. Depending on your practice area, you should still have some marketability and be able to move to another firm. For example, senior corporate M&A, commercial real estate, and finance associates are all in demand as of today. However, if you are a seventh-year litigation associate without business, it may be difficult for you to move firms depending on the region of the country. Most firms do not like taking older associates without business. Although you have more experience than your younger counterparts, there are a couple of reasons why the move may be a difficult one.

Generally speaking, firms do not like to hire senior-level associates because the firm’s current senior-level associates become a little uneasy. Some of the questions the senior-level associates start asking themselves and others are as follows: Why do we need another senior associate? Are they bringing this person in to replace me? Is this person going to make partner before I do? Am I even going to make partner?

This causes a strain on the current senior associates; and in some cases, they may leave their firms for other firms. The partners in the group get upset because the most trusted and relied upon associates in the group start to leave. The second reason is due to law firm economics. Firms would rather just give the work to a mid-level associate because they can bill the mid-level associate at a lower rate, thus making their clients happy. As a result, the firms are mainly looking for associates with 2-5 years of experience.

So what do you do if you are a senior-level associate without business in a slow practice area? You should start exploring your options. You can stay at your current firm for as long as you can and hope that you get promoted to the title of counsel, move to a smaller firm where your expertise and skill are valuable assets, or move to an in-house position.

Of Counsel
If you are an of counsel-level attorney at your present firm, you probably have a unique skill set that the firm values. If you do not have portable business and you want to relocate geographically or leave your firm for another, it will probably be very difficult to find a position unless you move to a firm that needs your specific skill set. In this case, the firm may have a lot of existing business in your particular practice area and would like someone with your expertise to assist with firm clients and their legal matters. However, in most cases, for economic reasons, most firms would rather hire a mid-level or senior-level associate rather than an of counsel. Although you may have an easier time in some cases than partners to move firms because your salary expectations are probably lower than those of partners, it still may be a difficult road.

Partners
A partner with significant portable business can usually move to any region of the country or any law firm of his/her choice. He/She is a commodity. And even if a firm is not looking for that partner’s particular practice area, if he/she can start a practice, in cases where there is synergy with the rest of the firm, the firm will welcome the partner and the business with open arms.

When a partner does not have portable business, there are a few situations where the partner can move firms: (1) the partner has been very successful over his/her career and has established an outstanding reputation in the legal community, and the firm would like to start a practice or would like a prestigious partner on its roster; (2) the partner has shown in the past that he/she has been able to build a book of business, but because of a host of reasons, he/she does not have much portable business at the moment, but still has potential to grow his/her business; or (3) the partner has a specific expertise or knowledge in an area of the law that the new law firm would like to acquire to assist with its existing client base. Generally speaking, beyond these situations, it is going to be very difficult for a partner to move without portable business. Today, most law firms are trying to stay lean and hire partners who are able to bring business.

If you are a good attorney and have portable business, you will be in the driver’s seat of your career. If you are a good attorney and do not develop business as a senior associate, of counsel, or partner, you still have some options. It’s just a matter of finding the right fit. In all cases, you should consult a legal recruiter to help you transition from your current firm. The legal recruiter may be able to present you to his/her clients in the best light possible and therefore open the door where normally it may be closed.

Handling References: A Basic Guideline

• Assure that you told the truth about yourself.
• Get a feeling for how you work with others.
• Pick up otherwise undisclosed information, either positive or negative.

Today, many law firms and companies are very careful about sharing information regarding their former attorneys to avoid potential lawsuits. Often, a law firm will have a policy regarding references that only allow them to provide a job title and dates of employment.One of the key aspects of references is selecting appropriate references. Ideally, you should choose people who know you in a work setting - former employers, partners, judges, clients and peers. They are your best references. You should also consider well-known political, community or business leaders, educators or members of your professional associations. Unless you have already informed your current firm about your intent to leave, do not use current clients, partners or peers as references, as they may jeopardize the confidentiality of your job search.

Typically, you will be asked for three references. However, you will need to have several more references just in case. You should prepare a reference list to give a prospective employer using the following format:

• Your name at the top of the page
• Names of each reference
• Their phone number
• Their current titles
• Their address
• Their relationship to you
• Their current company

Prior to preparing your reference list, you should take steps to ensure that your references will in fact be helpful to you. Remember to:

1. Ask first.
   • Always ask a person to act as a reference before you provide his or her name to a prospective employer.
   • Meet or speak with the person to verify information for your reference sheet and ensure that you will get positive references.
2. Prepare your reference.
   • Provide a copy of your resume to the person.
   • Develop a one-page summary about your career objective, practice, reasons for leaving, strengths, weaknesses, work style, and then review it with him or her.
3. Contact your references when you give his or her name to an employer.
   • Provide details about the prospective position and what you have to offer.
   • Share your excitement and enthusiasm.
4. Ask for feedback after your reference has been contacted.
   • What types of questions were asked?
   • What topics were covered?
   • What concerns were raised?
   • Make sure to thank your reference.

Practicing Law in California

Thinking about moving to California, eh? I don’t blame you. I love it here! I grew up in Southern California, went to college in Southern California and law school in Northern California, practiced in Northern California, and am now the Managing Director of BCG Attorney Search’s L.A. office.

BCG works with a number of candidates seeking to relocate from another region (typically the East Coast) to California. Part of my job is to explain what to expect during the job search and the realities of living and practicing in California. This article surveys the process of finding a position in California and life as a California attorney.

What California Firms Look for in a Candidate

1. Compelling reasons for the move

Many firms tell us they have had great success with relocation candidates who moved to be with their significant other or are originally from the area or lived there before. I often hear this about candidates who are coming from the East Coast (New York in particular). A firm wants to be assured that a candidate who moves to California to join that firm will stay.

While having some ties to California is great, not everyone does; and that’s okay. Other reasons people move here are purely for professional development (perhaps a particular practice area is hotter in a particular city and will offer more opportunities for a candidate to shape his/her practice) or the candidate had visited the area and fell in love with it. Larger markets like Los Angeles, San Francisco, and Silicon Valley certainly like to see ties to the area; but as long as you have the right experience, you will likely get an interview. Relocation candidates who come from the East Coast thrive in these cities. California firms know East Coasters (particularly New Yorkers) generally have strong work ethics and have had exposure to high-level work. In fact, some firms have practices that are more “East Coast” and specifically want a candidate from New York (I hear this often from corporate practices).

San Diego and Orange County are smaller markets and less receptive to relocation candidates unless there is a very good reason for the move. That being said, I have seen candidates with no ties to the area get hired quickly because they had the exact experience a law firm was seeking.

Sacramento, Fresno, Bakersfield, and Santa Barbara are even smaller markets; but they are fairly receptive to relocation candidates as long as the candidate is already admitted to the California Bar.

If you are moving to California because of the laid-back lifestyle, think again. There is a misconception that attorneys in California do not work as hard, and that is just not true. While it’s a fair generalization to say California lawyers do not work as hard as New York lawyers, we do work as hard (and in some cases harder) than associates in D.C. or Boston. Few firms expect attorneys to bill 1,800 or lower, and the majority expect their associates to bill at least 2,000. I have heard some attorneys billing as many as 4,000 hours!!!

Further, you cannot make any generalizations about practicing in a specific city. For instance, many outsiders think San Diego or Orange County would offer a better “lifestyle” (i.e., “a less demanding practice”). That simply is not true and should not be your motivation for moving. Many large firms have branch offices in these areas, and these offices need to compete with offices in larger cities; sometimes these branch offices expect more of their attorneys. It is not unheard of to be billing 2,400 hours in San Diego, Sacramento, Orange County, or Santa Barbara.

Firms in Fresno; Bakersfield; and other small, less “sexy” markets generally do have lower billable hour expectations and do offer attorneys a very good lifestyle. If you are seeking to relocate to California for its laid-back culture, I would suggest moving to one of these areas.

2. Membership to the California Bar

California firms are more likely to hire someone who is already a member of the Bar, has recently passed it, or is awaiting results. That being said, some of the larger firms place more emphasis on the quality of a candidate’s experience rather than membership to the Bar. In other words, there are some large firms where the lack of California Bar membership is not an issue. And there are some firms (including large ones) that have a strict policy of never hiring attorneys who aren’t already members of the California Bar. Generally, smaller and mid-sized firms require membership to the California Bar.

Large firms in Los Angeles, San Francisco, and Silicon Valley are more receptive to relocation candidates who are not already admitted to the California Bar. Orange County and San Diego are less receptive; and Sacramento, Santa Barbara, Fresno, and Bakersfield are even less receptive. In fact, several large firms in Sacramento will flat out not consider a candidate–no matter how strong the resume–until that person is admitted to the Bar.

The reason firms place such an emphasis on the California Bar is because should the candidate join the firm, that person needs to be “up and running” as soon as possible. It is essential for a litigator to be able to go to court and sign off on motions and various documents. Further, it is difficult for a firm to hire someone and then have him/her leave for a few weeks to prepare for and take the exam. Lastly, the firm has to wait six months before getting the results. If a relocation candidate does not pass the exam the first time, many firms may ask that candidate to leave the firm. Firms would rather not deal with this; that is why they tend to hire those who are already members. It’s another way to weed out candidates.

If you have lack compelling reasons for moving to California, sign up to take the next Bar exam (offered in late February and July). Firms will assume you are committed to moving if you take the time to prepare for and take the exam.

3. Stability in a resume

California firms look for candidates who are not “firm hoppers” or who move from city to city. If there are moves on a resume, firms will want to know a valid explanation for each one; otherwise, it will be very difficult to move there.

Unlike those in New York, firms in California are more receptive to candidates who are not “cookie cutter” (i.e., have graduated law school in the last five years and have been practicing at the same firm). If a candidate has experience in a specialized practice–trusts and estates, corporate, structured or corporate finance, labor and employment, real estate, tax, investment management (’40 Act), or intellectual property, to name a few–but has taken a few years off from practicing law or transitioned into another practice area, firms will consider these candidates assuming the candidate is flexible regarding class year. However, these candidates must be ready to take a potentially significant hit in class year. For instance, lets say you graduated law school six years ago and worked for four years as an associate in a strong real estate practice before deciding to become a mortgage broker. After two years of working as a broker, you realize how much you miss the intellectual challenge and stability that comes with practicing law. You miss working with lawyers and are eager to return to a law firm environment. You cannot expect to come into a firm right where you left off. While you may believe your brokerage experience has made you more well rounded and even a better attorney, I guarantee you the firm won’t. In fact, you may not realize it, but there will be a significant learning curve; and it will likely take you close to a year to get to the level you were when you left the firm. You will most likely come in as a second- or third-year associate. And if you are truly dedicated to returning to the practice, you would jump at this opportunity.

In general, East Coast firms are more skeptical of lawyers who have done anything but the “standard law firm line.” So, people who have taken substantial time off, moved around a bit, or started their own businesses are not welcomed by East Coast firms.

Interviewing in California

If you are relocating, chances are you don’t know the California market well. I would highly recommend speaking with a BCG recruiter, who is not only an expert in his/her market, but also has established relationships with many law firms.

Having a strong resume and deal or case sheet where necessary is essential. Your recruiter can help you with this, as well. From the time the recruiter sends out your resume, you should not expect to hear anything for at least two weeks. First, firms usually request a “screening” interview with a candidate. Depending on the firm, this may be done over the phone, but there is a strong preference for meeting candidates in person. A screening interview typically lasts about an hour, and it involves a candidate speaking with one or two attorneys (typically partners). The purpose of the screening interview is to get a feel for the candidate’s background, reasons for moving, level of experience, and personality–to make sure the candidate is a potential “fit.” Firms in California for the most part do not pay to fly a candidate out for a screening interview–no matter how large or prestigious the firm. If you are serious about moving to California, you are better off scheduling a short trip (perhaps a long weekend) to California and designating these days for screening interviews.

If the screening interview goes well, you will be asked to come back for a full round of interviews, which typically last two to four hours and may include lunch. Do not be too anxious to hear back from a firm about a callback. Typically, it takes at least one to three weeks for law firms to fully evaluate your candidacy and determine whether they would like to have you return. Normally, law firms have weekly or bi-monthly hiring committee meetings, where they discuss which candidates to make offers to.

Many law firms will pay for your travel expenses (such as airfare and hotel). Some firms have travel agents who will take care of these expenses; other firms will reimburse the candidate. And some firms believe if you are serious about moving here, then you should be willing to pay for your travel expenses, as well. This certainly weeds out candidates who are just looking.

In attempting to relocate to California, the entire process can generally take anywhere from two to six months and sometimes even longer depending on the nature of a candidate’s practice and seniority. You will hear stories about candidates who obtained a position with a top firm in San Francisco or Los Angeles in less than two weeks, but I warn you that is rare. Candidates who have between one and five years of experience with a top East Coast firm and top academic credentials will quickly get interviews and offers, sometimes in less than a week.

Offers and Salaries

There is no general procedure for California firms to make offers. Generally, the law firm makes a verbal offer (either through a partner or recruiter) and follows up with an offer letter sent via mail and sometimes email. Some firms only make verbal offers, and some firms just send out a letter in the mail. Again, even if the callback went well, it can take several weeks before knowing whether you will be made an offer.

Salaries in Los Angeles, San Francisco, and Silicon Valley are all roughly the same. They are on par with D.C. salaries and a little bit lower than New York salaries (first-year associates at large firms make $135,000). Salaries in Orange County and San Diego tend to be a bit lower depending on the firm, although many large firms have branch offices here and pay the same salary across all offices. Salaries in Sacramento, Santa Barbara, Fresno, and Bakersfield tend to be much lower (for instance, a starting salary for a first-year can be between $70,000 and 85,000).

Generally, firms do not offer signing bonuses, particularly where the candidate is relocating. In fact, some firms will be put off if you ask for one, and I have seen cases where an offer was even revoked.

If the firm sends a written offer letter, it will include some or all of the following: (1) class year, (2) base compensation, (3) relocation expenses, (4) benefits, (5) bar fees, (6) bonus system, (7) partnership track, (8) vacation, (9) parking, and (10) anything else the firms offers (such as attorney retreats or in-house lunches). Almost all law firms will have you fill out a conflicts form, and many firms will carry out a criminal background check and a credit check.

Relocation Expenses

Not every firm pays to relocate candidates, although many large firms do. Typically, law firms have caps on relocation expenses (anywhere from $2,000-$7,000), and others will either pay for or reimburse a candidate for his/her “reasonable moving expenses.” Some firms do not consider shipping a car or a piano to be “reasonable.” Each firm is different, and this is normally not something that can be negotiated.

California Bar

If a candidate is not already admitted to the California Bar, most firms will give time off (two to four weeks) to study for and take the exam. Some, but not all, firms will pay for your time off. Some firms will pay for a bar review course, as well as expenses and fees associated with the exam. Most firms will pay yearly bar membership dues and for Continuing Legal Education courses.

Parking

The standard in California is for firms not to pay for parking. If a firm offers to pay for parking, that is a perk others do not offer, even large firms.

Practicing Law in California

Typically, attorneys begin their days between 8-9 a.m. and leave between 6-9 p.m. You will also find many firms have an “open door” policy, meaning most attorneys work with their doors open. Having an open door shows your supervisors you are working and that you are approachable.

Some practice areas are not as sophisticated as those on the East Coast, particularly in New York. For instance, generally speaking, corporate law practices are not as sophisticated in California. However, there are many tech companies in California with sophisticated intellectual property needs or thriving start-up/emerging company practices. Of course, this is a generalization; and some California firms pride themselves on having a “New York” practice.

Cost of Living in California

Renting  and buying a home in California is expensive too. Gas is very expensive (more than the rest of the country). Before beginning your search, you should investigate real estate websites such as www.ziprealty.com and salary/cost-of-living calculators such as www.homefair.com.

California is a wonderful place to work and live. It has great weather and offers a variety of outdoor and cultural activities. It is better to investigate the realities of living and practicing in California before beginning your search. Because once you receive an offer, you will not have much time to make a decision (typically one to two weeks). If after reading this article, you are still interested in making the move, I would recommend speaking with a BCG recruiter as soon as possible.

How Difficult Is It Right Now to Transition from a Government Position to Private Practice?

I am a fourth-year criminal prosecutor. How difficult is it right now to transition from a government position to private practice?

The path from public service to private practice actually occurs quite frequently. In fact, many senior partners at law firms have had some experience as a government attorney. Some of the issues that private firms will consider are the transferability of your skills and the current public position that you hold. Many times the skills that a government attorney has acquired from experience on important cases will be the determining factor for firms to consider him or her. For example, an experienced federal prosecutor will have an easier time finding a job in a large law firm than a first-year public defender. That is not to say that only those attorneys in the loftiest government positions can transfer to the private sector, but they will certainly have an advantage in getting into the prestigious private firms.

You must consider the transferability of the skills of your current position and determine if they can be reasonably applied to a private sector job. If your current position is as a district attorney or a federal prosecutor, then the switch to a civil litigation attorney would be a sensible one. The more applicable your current job skills are to your position of consideration, obviously the more favorable your chances are of making a switch. A move such as a trial attorney in the Department of Justice, environment and natural resources division to a position in the environmental defense practice of a firm would be more likely to occur than a move from public defender in the juvenile services program to corporate law.

Aside from your legal skills, job availability in different areas of private sector law should be considered. In the last few years, positions in litigation have risen, while corporate law jobs have diminished. Litigation positions in large firms also often depend on factors such as a top-notch law school, law review involvement, and the prestige of your current job. Additionally, job availability varies based on different locations in the country. Large cities on the coasts will have more jobs available than smaller cities and may be a safer bet if you are looking to make a switch. Thus, both the area of private practice law as well as the location of your potential move should be taken into account.

Finally, before making the decision to jump, general differences between public and private sectors should be regarded. In general, a private law firm will expect more hours out of their lawyers and require more intense job evaluations. Private sector positions also do not carry the almost guaranteed job security of government jobs. Government jobs also provide many lawyers with the additional emotional satisfaction of working on important and exciting cases. Your position as a government attorney also places you with a higher chance of moving up to a higher government post, such as a judicial position or a position in a federal or state cabinet. Of course what large private firms do offer in exchange for all these benefits is a higher salary and a chance to finally own that German roadster you’ve been eyeing.

If you are ready to make your move, a recruiting firm will most likely be unable to help you since law firms generally require law firm experience in dealing with candidates from recruiters. However, there are many options available to you, including job boards and targeted mailing services, that could help you find your next position.

How Easy is it to Relocate if You Went to a Second-Tier Law School?

I have a law degree from a Tier 2 school in California and I’d like to move to New York, what are the chances that I’ll get a good job?Unless you graduate from one of the top 25 law schools (sometimes top 15), a law degree is generally most marketable in the state in which you graduated. The reasoning behind this thinking (followed by most law firms) is that unless a candidate has exceptional qualifications, there is no incentive to pay additional fees to search for an out-of-state attorney, especially if there are several local attorneys looking for jobs. The exceptions to this rule are lawyers with highly specialized skills that are in high demand or work experience in a top law firm.

High demand jobs will always be easy to fill and therefore, the transition from state to state would not be a problem. However, chances are that if you are asking this question, you may not have the higher level science or accounting experience some firms look for when trying to fill the in demand positions. Almost everywhere in the county, firms and corporations would be willing to overlook a mediocre law school in exchange for technical expertise.

Prior experience in a top law firm can also vastly improve an attorney’s chances of relocating successfully with a less well-known law school degree. Of course, if you are already working in a top law firm in a major metropolitan area, you most likely succeeded at a top law school, probably making law review or placing in top 10% of your class. If this is not the case, however, and you were able to find a job at a top firm despite that, the prestige of your job will provide you with the credibility that perhaps your law school couldn’t provide on a national level.

At a certain point in the career of an attorney, the work experience overshadows the degree in hiring decisions. Unfortunately, when that happens for each firm can be different, so it is impossible to tell when the right time to move is. If your career is still in its early stages, though, you might consider sticking in your home market where your law school will provide you with the kind of connections that you need to get placed at the top firms, if that is your aspiration. If you start out at the local office of a national law firm, that firm may even allow you to transfer to another office without having to look for a new position altogether.

One last thing to note is that good grades can help your cause immensely. While the name of your law school might not carry the same cachet as some others, an incredible performance at a Tier 2 law school (top 5%, top 10%, Managing Editor of Law Review, solid summer associate work) can make you look like a good candidate, no matter what school you graduated from.

Factors to Consider while Evaluating an Offer

You’ve spent the last few months updating your resume, working with your recruiter, evaluating firms, and interviewing. Finally, all of the hard work has paid off and what you have been waiting for has arrived: the offer. However, while you may feel a sense of relief, accomplishment, and happiness, you may also feel a sense of anxiety and uncertainty. This is a serious decision to make, and before making it, you should weigh certain factors carefully.

Each of us, of course, is different, and determining what factors are important may vary greatly, depending on the individual. You may attempt to negotiate a higher salary, additional vacation time, and better health benefits. However, these items are often part of a standard package determined by the firm’s compensation structure, and you may or may not be able to effectively negotiate them. In addition, other factors, such as a firm’s “culture,” are also unlikely to change. Determining whether you can accept the offer and the firm for what they are can tend to be as difficult a decision as any you will have to make during your job search. The following factors should be considered when deciding whether or not to accept an offer.

Compensation
Even if money isn’t what gives you the most job satisfaction, no one can argue its importance. Most of us want to make sure we are being paid what we’re worth and what the going rate is for jobs similar to ours. This is where your recruiter can be of invaluable assistance. Your recruiter can provide you with information as to whether the offer is in step with the firm’s compensation structure, negotiate on your behalf when appropriate, and provide you with information on how your offer compares to what others are making at the same level, in the same practice area, in firms of similar size and status, and in the same geographic region.

Firm Culture
Every firm possesses a culture which can range from the traditional and conservative to the entrepreneurial and liberal. This is where the impressions that you formed during your interview will help you determine whether the particular firm environment is right for you. Were people talking to each other when you walked the halls? Were the doors closed or open? Was the staff treated with respect? How did the partners and associates interact with each other? How formal or informal was the interview? How did people dress? Was the office decorated in traditional oak panels, dull colors, or was it modern, with bright art and lights? Finding an environment that reflects not only your personality, but also your ability to effectively develop professionally is a key element in your future success as an attorney. Certainly, many attorneys can be happy and thrive personally and professional in completely different environments. What you need to determine is what environment would be the right fit for you.

Sharing a Common Goal
Firm culture also comprises other factors, including shared attitudes, values, goals, and practices that characterize a firm. If you value your time away from the office, a firm with a high billable requirement that consistently requires late hours and weekend sessions may not be right for you. On the other hand, the type of work you seek, the mentoring you require, the opportunities for growth, and the sophistication of the practice may also translate directly into more hours spent at the office. What you need to determine is whether this is a firm that shares your values, goals, and ambitions.

Fitting In
Another factor that you should focus on is whether the people you met when you interviewed with the firm are the type of people you want to work with. You are going to be spending a great deal of time at the office, working very closely with your colleagues, and the ability to get along with them may be critical to your success. The interview will provide you with insight to help you make that determination. This is also where you may want to consult with your recruiter to provide you with additional information about the firm and its particular practice groups. Networking can also be useful, and you may want to call your list of contacts and gather additional information about the firm.

Each of these factors taken alone may not make or break your decision to accept or decline a job offer. Moreover, these are but a few factors to consider when making a decision. You may also need to consider additional factors that are particularly relevant to your job search. Whether you choose to accept or reject a job offer, you should first inform your recruiter about your decision, and discuss these and other factors with your recruiter directly. Then, you should contact the employer who made that offer in a timely fashion. Your rejection or acceptance should be done formally, in writing, as well as by telephone. The legal community is a small one, and you may at some point develop a relationship with that employer albeit as a superior, a colleague, a client, or even your next-door neighbor. Therefore, irrespective of your decision, one of the most important things you should consider when mulling over a job offer is the importance of safeguarding the relationships that were created during this process.

Making a Lateral Cross-Country Move to San Francisco

I’m a litigator living in Boston and work at a large firm. I’m unhappy with my current firm environment, and I want to relocate to San Francisco since the market is picking up a bit and I wanted to practice in S.F. as soon as the market got a bit better. I have strong credentials, but have not passed the California Bar. I do have ties to the area since I was born there, have family there, and my girlfriend is working there as well. What are my chances to successfully make the lateral move to San Francisco?

Dear Ryan:

Thanks for taking the time to write to me: the short answer to your question is “it depends.” Obviously the answer to this question answer is a case-by-case basis, and you really haven’t provided enough data to allow me to provide clear guidance, so I would encourage you to talk to me or one of my colleagues in our San Francisco office so that we can advise you more fully.

First, let me correct a misperception about the litigation market in San Francisco–it is one of the few areas of the law that has been throttling along nicely. There have been fewer jobs in this practice area though because firms have made use of their less-busy corporate associates to handle excess work.

As your letter implies, making a successful lateral move depends on a number of things, some of them easily quantifiable, while others are not. The primary factors used by a firm will be the trifecta of (a) quality of your work experience at your current firm, (b) your academic credentials, and (c) whether a firm considers you to be a good cultural fit. The fact that you have ties to the Bay Area will assist your search, as you will be able to demonstrate your long-term commitment to the Bay Area, a factor which firms do consider. And, in our experience, it is rarely a factor that will queer a deal. In our experience, firms frequently overlook a lack of California bar experience, provided that the candidate has excellent other credentials and is barred in another state. I hope this helps, and we look forward to talking with you soon.

Looking for Greener Pastures

You are a partner at a solid firm where you generate a respectable book of business on an annual basis. You feel your career at your current firm is heading toward a perpetual stagnation. You feel that you lack the resources to build your practice, or you view the firm’s overall commitment to client relations or service as inadequate. Worse yet, you believe the culture or prestige of the firm has suffered because of the actions of your partners. Perhaps you have great concern regarding the firm’s profitability or compensation structure. Or you question the management in guiding the firm through the uncertain future. Whatever the reason, you are contemplating leaving your firm to improve your unfulfilled expectations.

But taking your practice to another firm is complicated and requires extensive effort on your part to make sure your future home satisfies those concerns that you deemed deficient at your current firm.

The first and most important aspect of conducting your search is maintaining confidentiality. If word gets out that you are thinking about leaving your firm, the consequences could be harsh both to your professional development and for your clients. The most secure way to maintain confidentiality is to use a competent attorney search firm. In addition to maintaining confidentiality, there are two significant tasks that the search firm would handle on your behalf.

Second, the search firm should first provide an honest assessment of your marketability to potential firms, highlighting your strong and weak attributes. One of the most important determinants of your success in the marketplace today is your total book of business. Other related matters include your billing rate and utilization.

Third, the search firm should provide you with an appraisal of the market and how your candidacy will fare in the marketplace. A good recruiter should have anecdotal information regarding potential firms that would be beneficial to your search. Perhaps the firm is in talks to acquire a practice group that would require someone with your expertise. Sometimes, unending merger talks are demoralizing and may encourage exodus of highly productive partners to others firms.

Finally, the recruiter should undertake an affirmative search on your behalf. It is important that the recruiter not disclose you while conducting an affirmative search. The recruiter should have a complete understanding of why you want to switch firms and must diligently examine potential firms in the marketplace to determine the best firms that exhibit traits that would be a good fit for you and your practice.

Relations of partners to a firm are similar to being in a marriage. It used to be taboo for a partner to quit a firm to join another firm, but just like marriage the unthinkable has become more common. The common argument to support this is that if you are unhappy, why stay?

However, departing without a thoughtful analysis of all the pros and cons could be a huge mistake. Here is a list of issues - which is not listed in order of importance - to consider when you contemplate jumping ship.

1. Firm debt. We have all read or heard about Brobeck and the havoc it has wreaked on the lives of partners who stayed too long. A firm’s debt undoubtedly is owned by the partners and it is a mistake to ignore it. Can you imagine if you had joined the firm 6 months prior to it dissolving?
2. Is profitability important to you? Would you be more interested in a firm that has $1 million profit per partner, or would you rather prefer a firm that is less profitable but provides a less demanding environment. There are plenty of firms that provide a better “quality of life” environment that are attractive to lawyers who are just as well-regarded and reputable as those in highly profitable firms. Also, is the firm highly leveraged with regard to partner/associate ratio, which may be indicative of lack of productivity on the partnership?
3. Compensation. What is the structure of the partnership? Would you be eligible for income or equity partnership? Partner compensations also are important in order to attract other talent. Maybe your clients require top quality tax work, but because of compensation issues the partner who handles such work leaves because she is unhappy with the compensation structure. Also, top associates will flock to better paying firms unless there is something to counter the attraction of the greenback. Perhaps, the firm provides a better quality of life, or allows associates to focus in their desired practice area, or provides associates with real partnership potential.
4. Would the billing rates of the firm discourage your existing or potential clients from sending work your way? The worst thing to do is to change firms, and later find your clients balking from raising the billing rates even though they may have agreed to it earlier.
5. A conflict with your existing clients is an obvious problem. But how about conflicts with potential clients? So many partners pick up and leave firms after a large piece of business is refused by their firm because of an institutional client of the firm.
6. Although people subtly focus on it, the culture of firm one wants to join is very important. Applying the philosopher Isaiah Berlin’s definition of culture to a firm it would be its “goals, values and pictures of the world” that are demonstrated in its actions, relations internally and externally, rules and routine practices of its members who are self-monitoring. You won’t find it written anywhere, but you feel it when you walk through its halls.
7. Is the firm democratically or autocratically run? Nothing drives people crazy like a renegade managing partner who makes significant decisions without consulting or informing his partners. It could be as simple as changing the firm’s corporate credit cards, causing embarrassment to partners when attempting to pay for client lunches, to taking on more debt than was agreed during the last partnership meeting.
8. Can the firm service your clients? Does the firm have the requisite expertise that is essential for your clients? Does the firm value providing top client service, or is the firm more interested in business generation? Does the firm have an office in a city that is important to your clients? For example, clients who need access to the capital markets require a firm to have a New York office. Or, clients that need regulatory services desire to hire a firm that has a Washington, DC office.
9. Is the firm’s prestige critical to you, your clients’, or your reputation?

Although this is not an exhaustive list, thinking about these issues beforehand would make the process painless, interesting and, hopefully, rewarding at the end. At BCG, our recruiters stand ready to assist you in exploring opportunities in a new firm.