law firm presentation

Law Firm PresentationStephanie A. Conduff

James J. LinhardtBryan C. HollandWilliam M. Jones

The Role of Happiness, Productivity and Sustainability of Lawyering

Stephanie A. Conduff

Why Happiness Matters

To Law Firms/Employers… To Legal Professionals…. To the Perception of the Profession…

Business & Law

Comparative Analysis “Happiness in Business or Law” by Peter Huang

“… happiness and life satisfaction are both only parts of the first of these five elements of well-being: positive emotion, engagement, positive relationships, meaning and accomplishment … (PERMA).”

Return on Investment (ROI) for companies typically focused on making money should by cultivating well-being in terms of PERMA.

Clicker Question

There are 3 main approaches to work from perspectives of business and law professionals …

Choose A if: “It’s just a job, meaning one’s principal focus is on financial rewards instead of intrinsic rewards such as interests. What matters is money, so higher pay can motivate switching jobs.”

Choose B if: “It’s more of a career, meaning one cares about advancement. One desires to climb as far as possible on a career ladder or be among those most highly-regarded professionals in one’s field. What matters is power, prestige and status derived from work.”

Choose C if: “It’s really a calling, meaning one derives inspiration from work itself. What matters is fulfillment and satisfaction from work that is well-done, as opposed to financial gain or career advancement.”

Results

The majority, 45%, chose A “It’s just a job, meaning one’s principal focus is on financial rewards...”

Close second, 36%, chose C, ““It’s really a calling, meaning one derives inspiration from work itself…”

Remaining of class, 18%, chose B, “It’s more of a career, meaning one cares about advancement…”

Positive Experiences Each Day

Harvard Business Review, January 2012 Power of Repetition Importance of Perspective Importance in the Work Place Profitability

Clicker Question

Choose A if… “I believe students

enter law school happy and then become less happy and/or unhappy during law school. This then continues into the legal profession.”

Choose B if… “I believe the

demands on legal professionals makes for an unhappy life.”

Work Place Well-BeingActivity

1. Please Divide Into 3 Groups2. Please Take a Post-It Note & Marker3. Please Collaborate & Engage in Group

Discussion for a Few Minutes4. Class Discussion on Ideas

Activity: Decide What

Perks/Policies/Employer Benefits Would Make You “Happy” at 3

Stages of Your Career:

• Group 1: Graduation/Post-Law School

• Group 2: Ten Years Out of Law School

• Group 3: Near Retirement

Group 1 Results

Loan forgiveness Formal training Mentors Clear career expectations Positive work environments Time to prepare for the BAR EXAM

Group 2 Results

Not working a huge amount of hours per week (time for relationships)

Stable income to support a family (and pay off debts) Healthcare, retirement, 401k Nice office, colleagues that you enjoy Vacation time, free time Work/cases that interest you

Group 3 Results

Flexible hours Good retirement benefits More freedom to choose cases and clients Sweet going away parties Generous sick leave Good insurance

Examples of Empowering Workplace

PoliciesLaw Firms

Shopping Trip for New Suits to “put best foot forward”

“Happiness Committee” Food Delivery/Grocery

Shopping Services Buy/Sell Vacation Days Home Cleaning Escorts to your Car Child Care Referrals

Fortune 100 Child Care Stipend to pay for entry costs

of races, events & competitions Flexible Work Schedules Sabbatical Weekly Breakfast Meeting Massage On-Site Life Coaching Reverse-Mentoring Program to

understand millennials

WARNING: Too Many

Perks

“Perks are powerful drugs that can have positive effects; the downside is that perks, improperly used, can have bad effects as well.”

“After-hiring, the firm can encourage employees to aspire to greater and greater amounts of wealth, and to consume lavishly in the short-term, by using perks to ‘addict’ them to conspicuous consumption.

“Firms might encourage employees to get married and start families, as these obligations increase the employee’s demand for present consumption.”

“The employee will be less able to accumulate sufficient wealth to enable her to depart the firm, hence avoiding a final period problem.”

Corporate Heroin: A Defense of Perks, Executive Loans And

Conspicuous Consumption.Georgetown Law Journal

August, 2005M. Todd HendersonJames C. Spindler

Concluding Observations

Happiness is…A M

atter of PerspectiveIm

portant to the Legal ProfessionEnhanced by Positive Repetition

Technology’s Effect on Work Life Balance

Movie Clip

What is Work/Life Balance?

“Meaningful achievement and enjoyment in every day life.”

101 List. Discussion: How do you define work/life

balance?

Technology’s Positive Effects on Work/Life Balance

77% of professionals feel mobile communication devices enhance work/life balance.

Do you feel technology enhances or impedes your work/life balance?

Technology Allows for Alternative Types of Practice

Transitioning to retirement. Home-based practice. Virtual practices.

Transitioning to Retirement

78 million people are approaching retirement. 79% of workers 50+ desire to increase their

technology skills. Opportunities for the legal profession.

Home-Based Practices

Using technology to replace the trappings of a traditional practice.

Cost savings. Positive effects for work/life balance.

Virtual Law Firms

Example: Virtual Law Partners Over 40 partners, many from ivy-league

schools. Use technology to save money, make more

money, while still maintaining sense of community.

Virtual Law Firms

Traditional Practice 33% Partner Profits 33% Overhead 33% Attorney salaries

Virtual Law Partners65% Partner Profits20% Extra Profits for

Managers

15% Firm Overhead

Technology’s Negative Effects on Work/Life Balance

Technology’s Negative Effects on Work/Life Balance

80% of lawyers report that they use their phone for work after leaving the office.

Examples: In one study, a man admitted using his smartphone

during his wife’s stepfather’s funeral. A Congressman was seen writing emails throughout an

Ash Wednesday service. In stating what led to his divorce a man said “the thing

that really brought it home to me was we were in an intimate moment in bed, I lifted up my head and I caught my wife checking her email on her Blackberry.”

Technology’s Negative Effects on Work/Life Balance

Differences in perception between users and their friends and family. “Materialization of work”:

When mobile devices used for work physically cross into the home, all the negative connotations associated with work cross as well.

“Absent presence”: Being physically present but mentally absent.

How to Utilize the Positives and Minimize the Negatives

Recognize the Pygmalion Effect and take advantage of it. Make sure you set the expectations of the

lawyer/client relationship. Make a 101 List or Non-Negotiables List,

determine where technology will help or hurt, and stick to it!

Staying Financially Competitive Amid Changes in the Legal Landscape

The “Business” of the Modern Law Firm

Legal Fees: What is Appropriate?

“The amount of the matter in dispute, the labour of the sarjeant, his value as a pleader in respect of his learning, eloquence, and repute, and lastly the usage of the court.”

Factors considered to be important in determining legal fees as they were listed circa 1290 in The Mirror of Justices, Book II, c. 5. Seldon Society Ed., 1895

Balancing the Economic Interests of Employees and

ClientsAttorney Interests Client Interests

Larger fees Low fees

Large payout with minimal effort

Proportionality of fee to effort

Large salary Indifferent to attorney’s salary

Are flat fees for services (e.g., drafting an employment agreement) fair?

Client Billing

3 Predominant Practices: Hourly, Fixed, Contingent

Hourly billing is most widely used Contingency fees used most often in Plaintiff’s PI cases,

but hourly fees still most common Billable hour system is subject to substantial criticism

Alternatives for the Future

Method DescriptionCapped fee Billing based on time with total

max feeVolume rates Varying hourly rates depending

on the size of the engagementIncentive billing Success fees on top of reduced

hourly chargesValue billing Based on value of service to

clientLoaned lawyer Lawyer for firm works

exclusively for a single clientMixed billing Negotiate for different rates at

different stages

Attorney Compensation

Deferred Compensation Most common practice among law firms 1/3 of associate revenue generated deemed to be profit Profit distributed to partners Incentivizes associates to work hard on one day make

partner Can end up rewarding the most unproductive members of

the firm Probably better than pure productivity or seniority Should try to integrate more performance-based

incentives

The Rise of Lateral Hires

Ethical Considerations MRPC 1.7: No representation if it presents a conflict of interest MRPC 1.10: Imputes conflicts to firm MRPC 1.9: Creates duty to former clients

The 1.10(a) Ethical Screen Screen must be timely Notice given to former client Certificate of Compliance

Note: Even if hired MRCP 1.6 is still in effect!

Krutzfeldt Ranch LLC v. Pinnacle Bank

363 Mont. 366 (Mont. 2012) Arises out of loan dispute Krutzfeldt hires Harris, Harris retains Hoskins. Pinnacle represented by Crowley. Hoskins never formally terminates representation. He accepts a job with

Crowley. Harris moves for injunction prohibiting Crowley from representing Pinnacle in

light of conflict. Crowley claims it may continue representation because they screened Hoskins. Court holds that screen not timely. Should have been done before the discovery

of a conflict, not after. Also, Harris and Krutzfeldt not even considered former clients

The Role of the Managing Partner

Today, the role of the managing partner has been altered by the increased mobility of attorneys.

Firm loyalty is not what it once was. Effective managers will not only implement

financial policies to foster economic growth, but they will also create a workplace that will restore loyalty to the firm

Board of Overseers v. Warren

34 A.3d 1103 (Maine 2011) Duncan caught embezzling money from firm He willingly pays money back and offers his resignation Managing partners decide he can stay, they do not report his behavior, and they delayed

taking preventative measures for 4 months Later it is discovered that he had embezzled more than originally thought, and he also had

defrauded clients. Managing partners promptly reported him to authorities Bar complaint brought against managing partners. Did partners violated ethical obligation

by not initially reporting? By not taking preventative measures? Court finds that failure to report first instance not an ethical violation under Maine test, but

failure to take preventative measures was. Moral of the story? Consider ethical obligations before moral obligations to employees.

Work-Life Balance for Millennials

Which View is Correct?

“Job-hunting students should try to find a practice where they won’t have to work too many hours. Try to find a practice that enables you to maintain a human existence, time for your family, your church or synagogue, community...Boy Scouts, Little League.” – Justice Scalia

“There’s no such thing as work-life balance. There are work-life choices, and you make them, and they have consequences.” (Emphasizing viewpoint reflecting free-market employment system for competitive, high paid posts) – Jack Welch

What is Work-Life Balance?

Millennials seek a desire to shape their jobs to fit their lives rather than adapt their lives to the workplace.

Millennial’s Desires

Work Expectations

Entitlement

Higher Pay (74%)

Flexible Work Schedule (61%)

Promotion w/n Year (56%)

Personal/Vacation Time (50%)

Life (What’s Important)

Being Good Parent (52%)

Successful Marriage (30%)

Helping Those in Need (21%)

Owning Home (20%)

Successful in High-Paying Career (15%)

Having Lots of Free Time (9%)

Becoming Famous (1%)

Why is this Important?

Individually Sleep Deprivation

Substance Abuse

Long-Term Disease

Unhappiness

Lower Work Productivity

Society Broken Marriages and

Families.

Less Civic Engagement

Less Cultural Engagement

Diminished Relationships

Whose Responsibility?

Individual Choose Right Fit

Choose Higher $ vs. Less Hours Worked

Find Purpose and Enjoyment in Work

Law Firms Balanced Hours (tailored to

individual)

Career Associate Path

Cultivate Common Interests and Passions

Re-think Revenue Structure

Flexibility in Mobile Commuting

Trends

Respected firm in NY filed a brief asking judge to reschedule hearings set for four different days because the hearings were in the middle of their children’s Christmas break, one of the only times they can spend significant amounts of time with their children. Judge rescheduled the hearings.

Basketball court doubling as conference room.

Lawyer group in MD who surf and paddleboard most mornings before work.

Firm who doesn’t schedule anything past 3:00 to allow lawyers chance to leave early.

Conclusion

Questions? Final Thoughts? Perspectives?