Leverage For Lawyers

Posted by Elizabeth Zelinka

There has been great speculation all year about how the broader recession would ultimately affect Big Law.  Some predicted a fairly moderate bump in the road, remedied by some quick associate layoffs, while others imagined a dramatic change in the way that Big Law operates, ranging from revised fee structures to new compensation programs to restructured partnerships.

As we enter the final lap of 2009, it has become very clear that the latter is closer to the impending reality—Big Law is in the midst of a dramatic and permanent change.  In meeting after meeting with Big Law leaders, the same story emerges:  Big Law needs an extreme makeover, and many firms expect to reveal the specifics of their own plans in early 2010.

As far as talent management goes, I feel confident that we can expect major revisions to how Big Law firms compensate and promote associates.  We will see an increasing abandonment of the lockstep model.  We will see fewer “non-discretionary” bonuses.  We will see a far more robust commitment to conducting meaningful lawyer evaluations.  We will see a greater focus on understanding what makes a successful partner within a given law firm.  We will see a diminishment of the now bloated “non-equity” partner tier.

At the partner level, it appears that some of the more difficult decisions have yet to be made.  On a business level, Big Law cannot continue to support large numbers of non-equity partners who do not contribute solid numbers to the bottom line.  I predict that we will see a very significant restructuring effort at the partner level across most Big Law firms.  We will see underutilized partners needing to move beyond the Big Law space, and for many senior lawyers, that will be a challenging undertaking.

Elizabeth Zelinka is a Founder and Principal with Zelinka, Prince & Parsons, LLC.  She can be reached through  www.ZPPpartners.com.

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