presentation to the association of pro bono counsel timothy b. corcoran pamela woldow, esq. altman...

Presentation to the Association of Pro Bono Counsel

Timothy B. Corcoran

Pamela Woldow, Esq.

Altman Weil, Inc.

October 15, 2009

2010

The rules have changed…

… but have the R.U.L.E.S.?

What are the R.U.L.E.S.?

• Realization of billing rates• Utilization of lawyer time• Leverage of lawyers• Expense control• Speed of billing and collections

But what if the clients just say no?

Is your law department facing budget cuts in 2009?

Altman Weil CLO Survey, 2009

No 25.2%

Yes 74.8%

What steps have outside counsel taken to improve the working relationship with your Law Department?

None!

Altman Weil CLO Survey, 2009

4.5%

4.1%

3.7%

3.7%

2.8%

1.6%

5.7%

8.1%

39.4%

18.3%

13.8%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

None

Communication

Fees / Billing

Training / CLE

Responsiveness

Technology

Social Events

Satisfaction Surveys

Partnering

Improved Project Staffing

Newsletters

The New Math

• Profits = Revenue less Expenses• COGS must be lower• Predictability improves retention• Responsiveness improves retention• Retention reduces COS

Alternative Fee Arrangements

• It’s not just about discounts• Predictability vs. uncertainty• Experience reduces risk• Alters how matters are staffed and

managed

20092009

The Big SqueezeThe Big Squeeze

Presented byPresented by

Pamela Woldow, Esq.Pamela Woldow, Esq.

Associate Salaries Cut 10 – 30%• Holland & Knight• Akerman Senterfitt• Ruden McClosky• Greenberg Traurig• Alston & Bird• Troutman Sanders• Howard Rice Nemerovski• Allen Matkins• Blank Rome• Schnader Harrison• Perkins Coie• Nixon Peabody

• Buchanan Ingersoll• DLA Piper• Dorsey & Whitney• Drinker Biddle• Howrey• Kaye Scholer• Kilpatrick Stockton• Pillsbury Winthrop• Snell & Wilmer• Venable • King & Spalding• Seyfarth Shaw

Bye Bye Lockstep!• Orrick• Bingham McCutchen• Squire Sanders• Howrey• Dorsey & Whitney• Townsend and

Townsend and Crew• McKenna Long

The New Normal

• It doesn’t make sense to us that everybody gets an increase just because they were alive and were here and practicing for many years.

Jeff Haidet, Chairman, McKenna Long

•

Maslow’s Triangle

Self Actualization

Esteem

Belonging

Safety & Security

Survival

Pro-Activity Plan

• A Seat at the Table

• Be Prepared

• Speak the Language

• Match Needs Now

The Scrooge Effect

Hard MessageInexpensive training

Experience = higher rates

Faster ROI

Enhance client trust

RFPs

Soft MessageWe have commitments

Helps community

Non-profs “hard hit”

Societal value

Good for recruitment

Firm culture

Win-Win-Win-Win-Win• Flexibility for ups & downs• Effective & least expensive training for

associates• Value for clients• Expedited ROI for firm -------------------------------------------------• Enhance reputation, help community

References

• 2009 NALP Associate Salary Survey • But We Just Reviewed Our Lockstep Six Months

Ago!? AdamSmithEsq, 7.31.09• Bingham Announces New Pay System,

Law360,10.6.09• Orrick Gives the Boot to Lockstep-Associate Model,

blogs.wsj.com/law, 7.1.09 • Salary models at many major law firms changing,

www.finance-commerce.com, 10.5.09