An article in yesterday’s New York Times chronicled the continuing struggle big law firms are having in coming to terms with today’s legal services delivery reality. Their response has been to demote or even jettison partners, reducing salaries and cutting some out of annual profit distributions.
The latest large firm to announce its “revamp” is the New York firm of Shearman & Sterling. Although the firm says the demotions and delays in promotions were necessary “to create a more efficient practice group management structure,” that is no solace for those on the receiving end of the demotions.
There’s a lot to be said for being in charge of your own destiny, especially when demotions or layoffs happen. The best way to do this, of course, is to be a Rainmaker, someone who has a good book of business and knows how to attract prospects and convert them into clients.
Sure, not everyone is born to be a Rainmaker. But it is a skill that can be learned and honed over time. Law firms that weave rainmaking into the fabric of their culture will always see better results than those that do not.
With more lawyers than ever competing for a finite amount of legal work, don’t fool yourself: it is your ability to make rain that will determine your success and that of your firm.
Financial independence is something all business owners work for, no matter what type of business they are in. The ability to build a “lifestyle law firm” – one that enables you to do what you want, when you want to do it – is the key to financial independence for attorneys.