Recently, a great deal of attention has been focused on the increase in starting salaries at law firms intended to stem the "internet brain drain." Indeed, we told you about this issue in our last two newsletters. Lest you believe the issue affects only the largest firms, recall that the initial volley in this most recent round of the wage wars was fired by a smallish firm in California. The "trickle down effect" is sure to impact everyone. Just this week, a small firm partner approached us with her concerns:

"I need to talk to you about what we can do. We can’t compete with those salaries. It probably means we’re going to have to merge with a big firm just to stay in business."

We believe the changes and pressures law firms feel will ultimately lead this group of highly educated, talented, and creative people to solve a number of problems that led to the salaries of associates far exceeding their income generating abilities under the current fee systems firms have in place. Partners will not accept making less money so that young lawyers can be paid far in excess of what the firms can expect to collect from the juniors’ efforts. Clients will not accept escalating hourly rates to cover these increased salaries. Juniors will not want to work longer hours than they were already being asked to work just to generate the additional revenue. Something’s gotta give. And lawyers will figure it out.

But how do we know what works and what doesn’t? Actually, solutions are easier to articulate than to implement. Solutions require an ability to change and adapt to the current business environment, a commitment to the concepts and willingness to assist and allow lawyers to develop to their full potential.

Well known Massachusetts Institute of Technology senior lecturer Peter Senge is also a member of the Society of Organizational Learning, a global consortium of researchers and companies examining learning and change. He and his colleagues have published The Dance of Change: The Challenges to Sustaining Momentum in Learning Organizations (Doubleday/Currency March 1999). Senge details the unacknowledged fact that real change in a firm rarely happens from the top down. Instead, significant change usually starts small, with one team, and spreads to other teams. Senge identified several self-reinforcing factors that help a pilot program take root in an interview reported in Fast Company’s May 1999 issue:

People develop a personal stake in it. People see that their colleagues take it seriously, and they want to be part of a network of committed people . . . . It works. There are real business results-so it’s worthwhile to become engaged. But the most fundamental reinforcer of a pilot program is hearing people say they’ve found a better way of working. Most people would rather work with a group of people who trust each other . . . . Most people would rather have fun at work . . . . Personal enthusiasm is the initial energizer of any change process . . . . [People] want to be part of a team that’s fun to work with and that produces results they are proud of.

Senge identifies challenges of change in three critical areas: (1) challenges of initial change; (2) challenges of sustaining momentum; and (3) challenges of system wide redesign and rethinking. In other words, it’s that old joke: How to you eat an elephant? One bite at a time.

Consider this strategy: 

· Identify your most successful partners. Choose five or fewer who are interested in innovation and creative solutions to begin your pilot program. It may help to have partners from the same practice group so that the results will be readily apparent and they can more easily design a pilot program to fit their personal needs. Ask them if they want a personal challenge that will be fun, rewarding and energizing.

· Give them a challenge with personal reward that includes money but also includes personal recognition, meaning, and appreciation. For example, "Determine, design and obtain work we can do that will make our firm the preeminent firm in the city for it. Work that will cause clients and lawyers to say they want to use our team on this project because we’re the best. Work that means something to the client."

· Give them a budget, assistance, support, approval, rewards and a reasonable deadline. Make it worthwhile. Get enthusiastic about it.

· Get out of the way and see what happens.

· If it works, copy it. Or do it again.

As a senior partner of a boutique firm told us recently, "People are working hard. We’re just not having any fun. We need to change that. We need work that means something to us." All lawyers need that kind of change and they’ll stay with your firm if you allow them to develop it.

PeopleWealth can assist your Professional Development staff on a regular or consulting basis to communicate effectively with lawyers and to help lawyers design and build successful careers. If you would like further information about PeopleWealth or our services, please contact our office, e-mail us: info@PeopleWealth.com Or visit our web site at www.PeopleWealth.com

©PeopleWealth April 2000