1. Convergence: Growing dissatisfaction with Biglaw and the Rise of the Alternatives Presented at Harvard Law School by Michael B. Moradzadeh and Yaacov Silberman

2. BIG LAW: TIME FOR CHANGE? 3. HOW DID WE GET HERE?Ongoing changes in technology and society Economic Crash of 2008 Rise of Megafirms in late 1990s in reaction to globalization and limited liability American lawyer rankings start in July 1987 Billing by hour starts to take over in 1960s Specialization leads to assembly by 1950s Cravath System of early 1900s 4. CRAVATH SYSTEM In early 1900s, Paul Cravath turned the affiliation of partners with apprenticeships model into an up-or-out salaried model with strong management, specialization, and hierarchy. Associates who survived became partners. This created a pyramid structure. Senior PartnerJunior PartnerSenior AssociateMid-Level AssociateJunior AssociateSenior AssociateMid-Level AssociateJunior AssociateMid-Level AssociateJunior AssociateJunior Associate 5. ASSEMBLY LINE Changes in society and business models from the 1920s, and hyper-specialization resulting from Cravath System, eventually brought the assembly line to law firms. 6. BILLABLE HOUR Before 1960s, elite law firms would send a bill for services rendered. Clients began to demand clearer metrics, so law firms start billing by the hour. In 1960s attorneys at elite firms were expected to bill about 1300 hours a year. 7. AMERICAN LAWYER RANKINGSIn July 1987, American Lawyer Magazine starts ranking law firms by profits and revenue.Result: obsession with profits per partner and revenue. Leads to larger firm, more leveraging, longer partner-track, higher billable rates, de-equitized partners, more lateral movements, more mergers, higher pay for rain makers, and higher billing requirements.Often to overall detriment of firm. 8. LIMITED LIABILITY PARTNERSHIPS2 199240 1996In 1992, only two states allowed LLPs, by 1996 over forty states had adopted LLP statutes by the time LLPs were added to the Uniform Partnership Act in 1996 Limited Liability Partnerships allowed for greater risk when bringing in lateral partners. This led to more movement of lateral partners.Partnership structure is often short-term focused. 9. MEGAFIRMS In response to globalization, Limited Liability Partnerships (1992) and AmLaw revenue rankings, law firms compete for size, starting in late 1990s. Desire to be everywhere their clients were.Result: higher conflicts, more bureaucracy, increased leverage. 10. ECONOMIC CRASH Overleveraged firms with large employee and real estate Overhead, and high salaries promised to rainmakers, show vulnerability to economic downturns, especially in 2001 and 2008. 11. RISE OF ALTERNATIVE MODELS(2000)(2008)(2001)(2008)(2008)(2004)(2008)(2008)Clerky (2010)(2010)(2011)(2013) 12. WHAT PROBLEMS ARE WE TRYING TO SOLVE?COSTQUALITYToo highUnpredictable/O paque Poor IncentivesHigh leverage Associates learning on the jobLIFESTYLEGrowing dissatisfaction of attorneys in Big Firm practice Is there an alternative to "Soul Crushing" work? 13. WHY NOW? Convergence of changes in TECHNOLOGY, CULTURE and the ECONOMY 14. THE ECONOMY HAS PLAYED A HUGE ROLECorporate legal departments are under tremendous pressure to manage costs and justify expendituresOld model was squarely CYAWith increased focus on costs, alternatives to Big Law (including in-house, solos, etc.) are seen as increasingly legitimate options 15. CHANGES IN TECHNOLOGY Disruptive Technology lowers the barrier to entry enabling startups to compete with Big Law.OLD REQUIREMENTSNEW MODELReal EstateCloud computingTechnology InfrastructureSubscription modelHuman capital (admin)Self AdministrationExpensive Research ToolsIncreased competition from resource providers 16. EXAMPLE: RIMON STRUCTURETECHNOLOGYQuartet TRADITIONAL MODEL Managers PartnersAssociates Product produced by AssociatesFirm-Wide Attorney Meetings 17. CHARACTERISTICS OFALTERNATIVE LEGAL SERVICES MODELS 18. ALTERNATIVE FEE ARRANGEMENTS Flat/Fixed FeesPooling clientsPartial ContingencyIncreased focus on project managementTry to reward good work, not inefficiency! 19. DISTRIBUTED MODEL/ ONLINE DELIVERY OF SERVICES Palo AltoSan FranciscoTysons CornerNew YorkNew OrleansWashington D.C.Los AngelesSeattleOrange CountySan DiegoChicagoTel Aviv 20. SEGMENTATION OF MARKET AND ASSIGNMENT OF WORK BASED ON RELATIVE IMPORTANCE123Bet the CompanyImportantRoutineWould you have an aerospace engineer repair your Vespa? 21. EXPERIENCE Recognized by Best Lawyers of America andAll of RimonsSuperLawyerspartners have at least10 YEARS OF LEGAL EXPERIENCEHold JDs, PhDs, LLMs, and MBAs from the best universities in the United States and abroadAll attorneys working on every matter are highly specialized in their respective fieldfrom some of the top law firmsin their respective fields.Former partners at global law firms, executives at global corporations, and professors in business, law and science 22. SAMPLE OF REPRESENTATIVE CLIENTS 23. CONCLUSIONBig Law is not deadMost prestigious firms will continue to thriveInnovation will need to occur at all levels 24. THANK YOU