Saturday 18 June, 2011

Warlords, Dickensian Sweatshops, and Drill Sergeants

David Maister confesses

"I have spent twenty years trying to say all professions look similar and can learn from each other, but I’m finally prepared to concede that lawyers are different – and it has nothing to do with economics."

In a piece titled "Warlords and Dickensian Factory Owners," David compares the modern day law firm to both feudal peasants terrorized by the warlord into paying tribute, and the Dickensian factory where you can, in fact, make an awful lot of money if you work people to the bone, slash costs, and have a heart of stone at the mere mention of phrases like "work/life balance."  

Partners defend this approach by appeal to economic necessity in the short run:  "If we don't keep PPP up, we'll lose our rainmakers and the firm will be devastated." 

Doesn't this fly in the face of what by now are mountains of research showing that genuinely engaged and energized employees, sharing a firm-wide vision, are the strongest driver of profitability known to management science?  Yes, it does:   But it takes years of consistent vision, and action, to get to that point.  What's worse, none of the energy expended in creating that environment shows any financial return until, essentially, the environment has been transformed.  Wall Street's, or your partners', insistence on performance this quarter is hard to square with that time-consuming and uncertain investment.

This is also where "lawyers are different" comes in. Consider that lawyers are socialized unlike members of any other profession or followers of any other discipline:

"Martin Seligman [writes] in his book AUTHENTIC HAPPINESS: “Lawyers are trained to be aggressive, judgmental, intellectual, analytical and emotionally detached. This produces predictable emotional consequences…he or she will be depressed, anxious and angry a lot of the time”."

Or, consider a psychographic test measuring "sociability," with the median American defined as scoring 50 on a 1—100 scale:  Lawyers' mean score was 8.  Put 250 Type A's with that personality profile in charge of a $100+ million/year enterprise, and you should not expect a touchy-feely environment to spontaneously emerge.

But we're serious here, folks. 

Is the only way to create a high-performance organization to yell, chastise, berate, intimidate, and generally treat your "colleagues" as enemy aliens?  It is most assuredly not the only way; but it has an indisputable track record of being a way.  And, not to discount its attractions, it has the virtues of simplicity, directness, and economy of action.  As everyone from NFL coaches to Parris Island drill sergeants would testify, it dispenses with the need to painstakingly psychoanalyze what subtle combination of persuasive buttons need to be pushed—in different combinations for each person, of course—to motivate your troops. 

I will further grant there are times and places where peremptory and unilateral emergency injunctions are called for:  Maister uses the examples of a combat unit or a small child nearing a hot stove.  But these are surely far removed from towers in Manhattan's canyons. 

But back to the short-term pressure cooker vs. the longer-term vision needed to escape this inhumane behavior pattern.

In Practice What You Preach, Maister reports the results of a survey of 6,500 people in 139 offices of 29 firms in 15 countries, which demonstrates conclusively (to me at least), that employee attitudes drive profitability, and not the other way around.   What "attitudes" would those be, precisely?

  • A palpable sense of engagement is number one.  Are people "turned on" by coming to work? Can they tell you, without prompting and in a convincing fashion, what the firm stands for?

If this describes your firm, congratulations!  (And I'm available for interviews.)  But skeptical responses to the call for such a vision, in places where it doesn't exist, are far easier to come by:

  • We don't have the luxury of thinking long-run.
  • Not everyone can be engaged, or wants to be; some just want to put in their time and get paid.
  • Whatever time we spend trying to move the firm in that direction is time not spent developing new clients and billing hours.
  • ...and you can fill out the list.

And lest you think I'm casting aspersions on people who think that way, or that I believe it's only partners who have these attitudes, let me hasten to add that these attitudes are understandable, they're not intrinsically abusive, and clients and associates often feel very similarly, albeit from their own perspectives. 

Associates can feel that they're only in it to pay off their law school loans, or to get enough experience to be able to credibly interview for inhouse positions.  Clients, increasingly, issue RFP's and sponsor "beauty pageants" before awarding work; institutional relationships of longstanding are increasingly rare.  And to firms that do win work from sophisticated clients:   Be careful what you wish for!  Requests for discounts, volume billing, and Procrustean itemization of activities and expenses (the better to micromanage their costs) are on the way.

Can any of this be changed?  Can we, in fact, ever get back to the days of longer-term thinking, and a willingness to invest both time and money to build an enduring firm with a distinctive identity?  Maister is pessimistic:

"I’ve tried logic. It hasn’t worked well on non-believers. I’ve tried presenting conclusive data. It hasn’t worked well on non-believers. I’ve tried appealing to matters of principle, standards, values, and meaning. It hasn’t worked well on non-believers.

"I no longer believe people can be “converted” on this topic."

For those still willing to try, because the cause is as worthy as they come, try these steps on the road to change:

  • Ignore the skeptics; you'll never win them over anyway.
  • Start with the believers, and talk to their needs.
  • Enlist allies.
  • Celebrate small wins.
  • Spread the word.
  • Win a few more.
  • Keep telling the story.
  • Welcome the converted fence-sitters who decide you must be doing something right.
  • And keep telling the story.

No TrackBacks

TrackBack URL: http://www.adamsmithesq.com/cgi-bin/mt5.01/mt-tb.cgi/2298

1 Comment

Thank you, Mr. Smith, sir, for summarizing my argument. Just in case anyone thinks you and I are not connecting the dots in the chain of argument above, may I point out that you have combined arguments here from the blog post of mine that you cite AND a separate article I wrote called "Are You Abusive, Cynical or Exciting?" There may be even greater reason for hope than I hinted in my article summary. It turns out that if you have the energy (which I'll concede is a big "if") there is a great deal you can do that will create a better tomorrow that doesn't require sacrificing short term results. To take one (for me repeatedly expressed) example. Many partners feel trapped in believing that they are not allowed to say "No" to a client who wants them to do dull, boring, repetitive work. They believe that the pressure to obtain and bill hours imposed by the firm is such that their partners would turn on them if they ever turned away work. (This is, of course, a whore's mentality: I've got to do it for everyone who is willing to leave money on the nightstand!) But here's the point. A typical partner already spends, let's say, 150 hours in a year on some form of business development. If he or she stopped using that time to get just MORE business but instead saw it as an opportunity for professional development and fulfillment (How do I get work that challenges me and that I enjoy)then they could "square the circle" of high profits and a better professional work life. If partners would only use their marketing time to bring in work they enjoy from clients they could care about, they can achieve the Nirvana of still being equally billable, but no longer having to say "Yes" to everyone who asks. This whole transition could easily take place within 12 months of effort for anyone who had enough battery juice left to make an effort. The tragedy is how many people don't, or think that their firm or partners would not support them even to this short-term goal. The marketing culture of a majority of firms truly still is "If it moves, shoot it. We never met a billable hour we didn't like. And whether you are enjoying this, beloved partners, is irrelevant to the conduct of our affairs." How desperately sad it all is! --David Maister (posted on his behalf by Bruce)

Leave a comment

Monthly Archives

 
Select a month from the dropdown
 

Recent Entries

     "Wait and [Never] See"
Last week I wrote about innovation and how the early adopters can gain sustainable competitive advantage.  This week is something of a follow-on, albeit one…
     Memorial Day 2011
     Be Innovative? Who, Me?
Jim Surowiecki, writing his regular column in The New Yorker, "The Financial Page," wrote last week about innovation and why it seems to take hold…
     God is in the Details
Alex Novarese, Editor in Chief of LegalWeek, has a smart column this week called "Rugged Individualism--a year of firm-specific achievement in the US." Here are…
     Limits, Still
Normally I don't refer to events stemming from my own experience in commenting on our industry-indeed, this is something of a first in the 8-year…
     Who's Signing Your Paycheck?
A loyal and exceptionally thoughtful reader, and reasonably regular correspondent (also with a strong academic background in economics), writes: Bruce: I enjoyed your 9 February think…
     Adam Smith, Esq. Launches A New Company: JD Match
Today Adam Smith, Esq. takes great pleasure in announcing the launch of a new company dedicated to rationalizing and bringing a measure of order, efficiency,…
     Fifth in Our Series on Strategy: What it Takes to Be Tier 2
Recently, I wrote about what I called the Tier 1/Tier 2/Tier 3 challenge for BigLaw. Briefly, the Tiers are: 1: What everyone aspires to. Think…
     Fourth in Our Series on Strategy: Tier 1, Tier 2, Tier 3?
Toby Brown and Ron Friedmann (both friends) have a thoughtful and well-reasoned point/counter-point going over at "3 Geeks and a Law Blog," which they invited…
     We're Not The Newspaper Industry
When Slate writes about it, it's entered the mainstream. In this case, that would be the "whopping" 11.5% year over year drop in the number…
     Seminar on Value-Billing Fee Arrangements/New York/March 24
I'd like to bring to your attention an all-day seminar happening here in midtown New York on Thursday, March 24th, sponsored by the Ark Group…
     The "Adam Smith" Award for Innovation in Legal Service Delivery
A couple of weeks ago I learned that the legal department of Kraft Foods issued its "Adam Smith" award, for innovation in the delivery…
     Reminder: Brief Survey on Law Firm Leadership
Don't forget to the take the Law Firm Leadership Survey co-sponsored by Adam Smith, Esq., and Vault.com, Inc., the leading online career intelligence site.The survey…
     Third in Our Series on Strategy: Bad Strategy
As a management consultant to law firms, perhaps the most consistently infuriating phenomenon I encounter (all the time and everywhere, I'm deeply sorry to…
     Joe Flom, 1923-2011
We've all heard the sad news that Joe Flom died Wednesday at age 87.  (WSJ, The American Lawyer, The New York Times, DealBook) Over 20…
     A Modest Proposal for Alternative Fees
There's been so much talk recently about "alternative fee arrangements" (AFAs) that, frankly, we're exhausted. But before we give up on the subject entirely…
     Survey on Law Firm Leadership: An Adam Smith, Esq./Vault.com, Inc. Collaboration
With delight I can announce that Adam Smith, Esq. is embarking on a collaborative effort with Vault.com, Inc, the leading career intelligence site for those…
     What's the Half-Life of a Lateral Partner in London?
A-ha! That, at least, was my reaction when reading the research report published this week in The Lawyer.  Here are the top-line results, and then…
     New Client Minimums? Meet DLA
Tim Bratton, the general counsel of the Financial Times, has an interesting perspective on DLA Piper's recently announced plan to revamp its client base.…
     Winners Take All? Yes, No: Debate Among Yourselves
I suppose that when it's in The Wall Street Journal, it's true. Well, it's certainly true that attention must be paid. Which brings us…
     Show Me the Money (And the Love)
Here on Adam Smith, Esq., we've never devoted a lot of ink to work/life balance issues or, for that matter, to lawyers' happiness with…
     Kaizen Comes to The City
A few days ago I had a chance to catch up with my friend Alex Hamilton, now at radiant.law.  (I knew Alex in his previous…
     Second in Our Series on Strategy: Strategic Planning 101
Booz & Co.'s Strategy + Business published something of a primer called "Successful Strategic Planning" last month, and it's worth a quick review for the distilled--if…
     First in a Series on Strategy in the New Normal
"With all respect, I think that's the wrong question. There's always new stuff out there, and most of it's not very good. Rather than…
     We Are Not Alone
This is a tale of how this is not your father's recession. About a year ago I read Reinhart and Rogoff's This Time is…