Showing posts with label Wall Street Journal Law Blog. Show all posts
Showing posts with label Wall Street Journal Law Blog. Show all posts

Sunday, February 14, 2010

The difference between a freelancing career and being a temporary worker

NAFLP member Stacy Lilly passed on the following article from the Wall Street Journal - "How to Succeed in the Age of Going Solo" regarding the dramatic increase in self-employed workers over the past decade and how to distinguish yourself from other consultants.

The entire article, by Richard Greenwald, is a good read, especially as you are reevaluating your business plans and goals for the year. Here are a few highlights -

"The consultants and freelancers who are most successful offer a technical skill or expertise that is too expensive or infrequently used for companies to keep in-house. . . . "[F]inding the next assignment cannot be done at the expense of retaining and enhancing these skills. Cutting-edge expertise is vital to long-term professional health."



He also recommends joining a network, having your own space for conducting work, and thinking like an entrepreneur. Read the whole article here.

Wednesday, September 2, 2009

Clients are demanding alternative fee arrangements from their law firms – freelancers can help

Dramatic changes in the relationships between law firms and their clients offer the “perfect storm” of opportunity for legal freelancers.

The Wall Street Journal has cited Pfizer, Cisco, and American Express as just a few companies intent on reducing the amount of legal fees it pays to its outside law firms. “’Billable Hour’ Under Attack,” August 24, 2009, Nathan Koppel and Ashby Jones.

Rio Tinto, a leading international mining group, is reportedly bypassing its external counsel and working directly with a legal outsourcing company to outsource some of its legal work, saving $1M in legal fees by paying lower rates than its main external counsel Linklaters and Baker & McKenzie. “Outsourcing is taking hold,” Financial Post, August 26, 2009.


In order to stay competitive and keep their clients, U.S. law firms are being forced to reevaluate their staffing arrangements, and onshore outsourcing should be the first place they look. U.S. legal freelancers can provide the same quality work product that the client expects (and often an even higher quality product), at a much lower cost than a salaried associate. Reducing overhead costs without sacrificing service quality will allow a reduction in billable hourly rates to the client, without reducing profits to law firms.


May I say "I told you so?" The following is a quote from this NAFLP blog - ”Quality vs. Quantity – the billable hour mousetrap,” published January 28, 2009.



Corporate clients – the “surging demand for high-end legal services” is you, accepting the definition of “high-end” as being on the AmLaw 100 list. The “unrelenting annual rate hikes” is the price you are paying for accepting this criteria and rate hikes will keep increasing at these firms until you, the client, say "no." You are choosing “pedigree” and "prestige" over “quality” in legal services and have only yourself to blame for the outrageous legal bills on your desk.


Apparently a number of corporate clients came to the same realization. U.S. legal freelancers can provide the same quality work product that the client expects (and often an even higher quality product), at a much lower cost than a salaried associate. Reducing overhead costs without sacrificing service quality will allow a reduction in billable hourly rates to the client, without reducing profits to law firms. The legal industry is long overdue for changes.


Freelancers, go out there and make change work for you!

Tuesday, September 23, 2008

Bigger is apparently not better - just look at Wall Street

The current turmoil in the U.S. economy should emphasize an important point for freelancers - bigger is not necessarily better. Mega corporations are failing right and left and leaving disastrous consequences in their wake.

Is bigger really better? Fortune magazine says so with their Fortune 500 list. American Lawyer says so with their AmLaw 100 list. But I don't think so.

Since 1965, development of the internet has provided a classic example of "small and interconnected" being far superior to "big." During the Cold War, it was deemed essential to have communication links via military and university computers that would not be vulnerable to a single bomb or spy. The solution? Decentralize. Have a network that has no central point subject to disruption. Has it worked? Most definitely. Have you heard about any need to "bailout" the internet?

As freelancers, we are part of the "small and interconnected" business model and in a position to create a stronger economic structure within our own sphere of influence. Legal freelancers provide flexibility for law firms so they can expand and contract their overhead costs according to need, thereby making them more able to weather tough economic times. Likewise, freelancers themselves are able to balance work from various sources to create enough business for themselves.

The current economic downturn is an opportunity to market and build your freelance business. Use it!

Saturday, July 5, 2008

"Pedigree" vs. "Quality" - Part 2

The Wall Street Journal Law Blog article that prompted my last post (there were actually two inter-related articles on the Blog - "New Comer Law Firms Are Creating Niches with Blue Chip Clients" and "The Model Seemed Broken To Me - Looking At a Law Firm Alternative") have been commented on extensively in the past day and the same issues keep rearing their ugly heads. What constitutes “an elite firm”? Why is there a heavily promoted theory that if one does not land a job in a BigLaw they are a lesser lawyer?

On a corresponding note, Jeff Bleich, President of the California State Bar, wrote "Reflections on our Reflection" in the California Bar Journal, July 2008 issue, about how the makeup of the legal profession is a poor reflection on the diversity of our society as a whole. Looking at the portraits of prior presidents of the state bar, primarily white males, caused him to reflect on the legal profession.

“You can’t look at that wall for long without wondering what the bar and what this profession lost decade after decade. All of the talented men and women who were excluded from practicing law, or from the bar, or from leadership because of their race, their gender, their orientation, their disability. Decade after decade, our profession was deprived of their talents because of a culture of narrow-mindedness and bigotry.

“While the portraits in the last few rows change a little, it is only a little. Outside the building, on the sidewalks and in the stores and restaurants nearby, men and women of every race, ethnicity and physical disability are doing every sort of job. But when we go to meetings of lawyers — whether it is local bar meeting, or a court calendar, or to see the next class of bar members sworn in, our group looks different. We have not come close to reflecting the sort of diversity that exists everywhere else in our society. . . . White males constitute only 44 percent of California’s population, yet they are 81 percent of the lawyers here. . . . "

I think Axiom (cited in "New Comer Law Firms Are Creating Niches with Blue Chip Clients") summed up the legal industry’s pervasive bigotry in its choice of words – “pedigreed” lawyers. The definition of “pedigree” is a line of ancestors, a lineage, or a list of ancestors of a purebred animal. The word is most often used by dog and horse breeders, as well as other geneticists.

“Quality” on the other hand, is defined as superiority of kind, degree or grade of excellence, and having a high degree of excellence.

Am I missing something? Is it really true that for Axiom to place its lawyers with blue chip clients (corporate America), the lawyers in its stable (pun intended) need to demonstrate “pedigree” rather than “quality”?

I came across a blog article from 2003 (which could have been written yesterday in that its contents are equally applicable today as then) entitled "Why are Lawyers Such Snobs?" The article is worth reading in its entirety, but a few quotes are cited here:

“Any conversation about the future of the profession is incomplete if it doesn't acknowledge how pervasive and influential our profession's snobbery about pedigree is. . . .

“[O]ur profession worships credentials. We assume people from big, fancy law firms are smarter, and we assume people from fancy expensive law schools are better. You're a big liar if you pretend it's not true. . . .

“People, this is crap! Let's think about this. Is this really a good way to discern among people in our profession? I thought the Harvard summer associates in my class were the worst of the bunch -- not good writers, not especially impressive thinkers, and with an air of entitlement that was really ugly. The guy in my class who will be the best lawyer is a former merchant marine who didn't have the interest or inclination to go anywhere but UMaine, but he's got a fantastic mind, a real-world practicality and a great work ethic. . . .

“[T]he gist of it is, our profession exerts a nearly irresistible pressure on talented young people to climb to the highest rung of a specific and extremely narrow ladder. To do so, they incur big big debt, and take on impossibly demanding schedules, at school and in the beginnings of their professional career. And then the golden handcuffs kick in (and the professional snobbery sinks deeper) and making a different choice means admitting you can't "hack it". It's a real trap for the unwary.”
I wholeheartedly agree!

Thursday, July 3, 2008

"Pedigree" vs. "Quality" - stereotypes continue to plague the legal and corporate world

Ashby Jones at the Wall Street Journal Law Blog has reported about one example of inroads that an innovative law firm has made into well-known large corporations such as Morgan Stanley, Credit Suisse Group, Cisco, General Electric, Google, and Xerox. "New Comer Law Firms are Creating Niches with Blue Chip Clients"

“The legal industry isn't known for innovation. But a few upstarts have come up with a business model that challenges the tight grip big law firms hold on corporate business. This new breed of firms is landing blue-chip clients and, in the process, making money.”

The article features Axiom Global, Inc. and discusses how they charge corporate clients less by using more virtual practices, usually having their attorneys work at the client's offices, and use of a flexible staffing model. At least one of the obstacles that they are facing is equally applicable to legal freelancers - perception of quality of attorneys.


“Axiom will have to continue to persuade the change-resistant legal world that its lawyers are good. ‘I was skeptical at first,’ says Xerox's Mr. Liu. ‘I had to get over a fear that they weren't going to be as committed to the job or to the work as a permanent person.’”

Axiom's solution to this obstacle, however, smacks of the same snobbery that has caused big law firms hold on corporate business practice in the first place - "pedigree" over skill.

“Perhaps the biggest obstacle to Axiom's growth plans: a lack of lawyers who fit its bill: pedigreed and law-firm-trained lawyers ready to jump off the traditional track. 'It's our biggest hurdle right now,' says Mr. Harris [a founder of Axiom], who adds that for every 100 lawyers who apply for employment at Axiom, the company hires one."


“[I]t isn't a problem that seems to be causing Mr. Harris sleepless nights. ‘Law firms are likely to continue making lawyers unhappy for years to come,’ he says.”

This may be a shock to the corporate world, but neither "pedigree" nor big law firm experience provides any reliable indicia of quality of legal services. Freelancers, go out and show corporate America how good you are!

Wednesday, July 2, 2008

Feature article on FreelanceSwitch.com, and more

FreelanceSwitch.com, an online community of all types of freelancers, has just published an article titled "Freelancing and the Law" featuring Melody Kramer and the National Association of Freelance Legal Professionals.

"Most people think about creative careers when they consider freelancing. But not Melody A. Kramer. She’s the Co-Founder of the National Association of Freelance Legal Professionals, and has cracked the code on how legal eagles can break into freelancing, too." Read more at http://www.freelanceswitch.com/.

Other recent postings regarding legal freelancing include the following:

"Freelance Paralegals - A Balancing Act", LawCrossing, undated

"What Holds Unhappy Lawyers Back from Leaving?", Law Street Journal Law Blog, June 23, 2008

"Outsourced Legal Services", Prism Legal, undated (this article includes a survey of legal outsourcing providers and users in the US and the UK)

"Legal Outsourcing in India is Growing, but Still Confronts Fundamental Issues", Law.com, January 23, 2008

Wednesday, June 25, 2008

Update - Law Street Journal interested in why lawyers leave the law too

Just a brief update on my prior post - it seems that Monica Parker's upcoming book has also caught the attention of main stream media. The Wall Street Journal Law Blog has also interviewed Ms. Parker. (http://www.leavingthelaw.com/blog/2008/06/good-news-about-unhappy-lawyer.html)

We'll post the link when the article appears.