The Virtual Law Firm - Lawyers Boost PPP, But Trade Off Prestige (and more?)

 Does being a lawyer respected by Am Law 100 lawyers entail working in-person in a trophy building in a major metro area?

Maybe that is still the way things are in the highly traditional profession of practicing law. However, as Roy Strom reports in Bloomberg Law, more than 1,000 seasoned lawyers don't care. They opted, some even before COVID, to operate totally remotely or what’s being called “office-lite.” Currently there are about 10 virtual firms. They include:

Practus

Rimon

FisherBroyles

Taylor English

Husch Blackwell

Potomac Law

Culhane Meadows

VLP

Scale 

Sterlington 

What motivated that partner flight to remote was primarily to eliminate the expense, time commuting, and interactional stress of operating in a brick-and-mortar office setting. 

Yes, there has been, as least for now, a tradeoff in prestige. Prestige is the core of Big Law branding. It goes into how the individual partners establish their presence in the legal community and with their clients. 

According to Vault, here are the top 10 in that category:

  1. Cravath, Swaine & Moore
  2. Wachtell, Lipton, Rosen & Katz
  3. Skadden, Arps, Slate, Meagher & Flom
  4. Sullivan & Cromwell
  5. Latham & Watkins
  6. Kirkland & Ellis
  7. Davis Polk & Wardwell
  8. Simpson Thacher & Bartlett
  9. Paul, Weiss, Rifkind, Wharton & Garrison
  10. Gibson Dunn & Crutcher

Without the prestige piece, there is a reduction in the ability to charge what office-bound firms bill per hour. One lawyer cut the hourly from more than a $1,000 to about $600.

However, overall there has been a boost in Profits Per Partner. That has happened because of several reasons. Those include eliminating the cost of office space, attracting more clients through lower fees, and having more time to do real client work with generates more billable hours. The time bonus comes from not having to commute, ducking the social part of being in an office, and not having to fret about their personal look and feel. Incidentally, professional anonymous networks such as Reddit and Fishbowl have postings about associates strutting around with designer clothes and brandname watches. They are getting into the prestige game early.

Meanwhile, a number of traditional large law firms have been focusing on downsizing the space expense. Duane Morris hopes to cut 20% of that and Clifford Chance 25%. In general, the debate over WFH and RTO continues to rage.

Some observe that the economic slowdown has given law-firm management, clients, and prospects the power to mandate being in the office.

Also there is the raw professional development issue. The lawyers who entered the profession during COVID lockdowns around the world are being perceived as a kind of lost generation. Overall they missed out on the informal mentoring that is routine in the office where there can be a lot of back-and-forth. In an interview with The Wall Street Journal, chairperson of Paul Weiss Brad Karp observed how much he had learned as a first-year associate sitting side-by-side with partners as they managed client calls. Apparently that was a lot. By his second year he was assigned to do “real work” on the high-profile Pennzoil account.

There is speculation that where work will be done by law firms will circle back to full-time in-the-office. Lawyers rattled about holding onto their jobs often are advised to do the old-fashioned heavy face time – yes, even on weekends.

There are exceptions. One model is that of Quinn Emanuel. It allows its lawyers to do their work remotely but the firm itself isn’t virtual.

What’s going on in other sectors? In my intuitive career coaching, I am encountering that the ambitious treasure any opportunity to conduct professional life in-person. They are even hightailing it to conferences.

Next month I am relocating my coaching enterprise to where it will shift from primarily remote to more in-person. I will lose time but I anticipate boosting gross revenue.

It is interesting to reflect back to the breakthrough research documenting the existence of mirror neurons in humans, as well as monkeys and birds. That proved out how we affect each other, cell by cell. I am more motivated professionally and more successful when directly involved in-person with other human beings.

In transition in your career? Need more income? Healing from a professional setback? Intuitive career coaching.

“On the menu” of services are Tarot readings, both spreads and one-card pulls. Complimentary consultation.

Please contact janegenova374@gmail.com or text 203-468-8579. 

 

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