Throughout my years as a partner, managing partner, practice group leader and supervising lawyer, I used to speak to young lawyers who told me what they thought that I wanted to hear. Things like how much they loved their jobs, how supportive the firm was, and how they loved working evenings and weekends. They were quite right. That is exactly what I wanted to hear.
Let me tell you about a lawyer named Josh. Josh was not very good. Everybody said so, especially the partner who was his practice group leader. Eventually the firm redirected Josh’s career path. He moved on and started his own practice. Josh did very well on his own. He developed a great reputation in the profession practicing the same type of law that he was not good enough to practice at his old firm.
As a recession may be looming and Banks may be enforcing their mortgages, I thought that I would share this story from the recession in the early 1990’s.
There was a law firm that did volume mortgage remedy work for a Canadian Bank. A somewhat junior real estate lawyer who I will call Barbara managed the files. The work was somewhat routine but required precision and organizational skills, and Barbara did it well and earned a reasonable salary.
My father used to ask, “If you’re so smart, why ain’t you rich?”
There are probably a million things that are wrong with that question, but his basic point is worth considering. He was asking why it is that some people believe that they know better concerning just about everything, but they do not generate any results from their supposed brilliance.
When I practised law in Mississauga, Ont., our fees were cheap compared to the Toronto firms, and kind of expensive compared to firms in places like Guelph, Belleville and Kingston. I occasionally wondered whether my clients might prefer to deal with firms in smaller cities at lower rates. Then I would reassure myself that doing so would be terribly inconvenient for them and that they would rather pay more to deal with me.
Now I am not so sure.
The other day my wife purported to correct something I said. I asked her how I could get her to stop doing that. She replied, “You could try being right once in a while.”
I just told my girlfriend, “I have written the first paragraph of my latest post, but I have nothing of value to say.” She replied, “That never stopped you before.”
When I was a teenager, my buddy Bill took me waterskiing. For those of you who do not water ski, you learn to ski on two skis which is easy, then to ‘drop a ski’ which is harder, and finally to start on one ski. That was what I was trying to do.
Bill said that I was the only person who he ever saw who was still holding onto the rope ten feet under water. An exaggeration perhaps, but sometimes I really do not know when to give up.
You may be familiar with the expression, “Culture Eats Strategy for Breakfast,” a quote from Peter Drucker. As the title of this post implies, I not only agree with that sentiment, but I believe that it is drastically understated.
Let’s cut to the chase: Law firms compensate lawyers for two things: (i) fees billed for their own work; and (ii) fees billed for work that they introduce to the firm which is done by someone else. (In theory there are some other things that matter also, but in practice you cannot get rich by doing any of them.)