From Biglaw to Boutique: Looks Like Rain
by Tom Wallerstein, Colt Wallerstein LLP
Success in Biglaw often is measured by the
size of an attorney’s "book of business."
Not surprisingly, having a book of business is also the best
way to ensure the success of a private practice. The bigger
the book, the greater your exit options. So whether your goal
is to make partner or to open your own firm, everyone knows
that the key is to develop a book of business.
That is easy to say, but virtually impossible to do in a
big firm setting. Many big firms handle only matters in which
the amount at stake is in the millions of dollars. This means
that the prospect of an associate landing such a case is slim;
a client would never entrust a multi-million dollar dispute
to an un-tested associate. Associates are told to attend networking
events, but what is the prospect of meeting someone who just
so happens to have a ten-million-dollar dispute laying around,
and who has not yet staffed the matter, and who is willing
to entrust the matter to a junior associate he just met?
Once upon a time, mentoring relationships were strong, and
firms were loyal to their associates. A loyal associate could
hope that the partner for whom he or she worked would encourage
clients to develop a relationship with the associate and allow
the associate to claim ownership of future engagements from
that client. If nothing else, a loyal associate could expect
to inherit clients from a retiring partner.
Alas, the traditional method of building a book of business
no longer works for most associates. Firms now sometimes go
so far as to actively discourage associates from forming too-strong
relationships with clients, lest the associate leave and take
the client with them. And even if an associate is fortunate
enough to get client contact, clients are likely to develop
loyalties to the partner on the matter, even if the associate
is doing most of the work. Unfortunately, just because you
do good work doesn’t mean that over time you will magically
develop that elusive book of business.
To make matters worse, it’s often impossible to predict
future business, especially for litigators. If a client hires
you for a patent dispute and pays you $1 million in fees in
2011 before the case settles, does that mean you have a $1
million book of business, even if you have no reason to expect
any business from that client in 2012? How can you guarantee
repeat business from any client, especially in litigation?
Do you need a three or five year average? Those are long time
frames for associates.
With all these challenges, how can an associate ever hope
to make the rain they will need if they want to open
their own firm?
I suggest that instead of trying to build a book of business,
associates focus on building a book of relationships.
Business is an engagement, a lawsuit, a transaction; it is
measured in money. A relationship is a connection with a human
being. A book of business is virtually impossible for an associate
to build. A book of relationships is available to first year
associates and partners alike.
It is no coincidence that historically the best rainmakers
had the largest Rolodexes. Today, we are more likely to talk
about Outlook contacts, but the concept is the same. Clients
send work to attorneys they know and like on a personal basis.
The quality of the attorney is often secondary because there
are so many good attorneys to choose from.
Facebook, LinkedIn, and Twitter all can play essential roles.
So, too, can holiday cards, as a once-per-year minimum target
for sustaining contacts. The reason these tools can work so
well is that the key to business development is the quantity
and quality of the relationships themselves, as opposed to
soliciting business. Facebook, for example, allows you to
connect with people on a more personal level, which is a key
to developing business down the road.
Even if you spend no time soliciting work from your relationships,
the relationship is a necessary prerequisite for any business.
In fact, to some extent, putting aside the focus on business
is a key to more successfully building the relationships in
the first place.
The focus on people instead of business also determines the
relationships you should try to build. Don’t worry about
whether a particular person is or is not an obvious source
of work; i.e., don’t ask "what’s in it for
me?" Potential contacts are everywhere: partners and
associates at your firm, opposing counsel, law school classmates,
clients and witnesses, vendors, cabdrivers, secretaries, etc.
Your business will come from the most unexpected sources,
and trying to predict those sources years in advance is futile
and counterproductive.
You also should use each relationship to expand your network.
As soon as you have a connection with someone, explore whether
they can introduce you to others. If you are correctly eschewing
a "what’s in it for me" agenda, that can happen
naturally and easily.
If you manage to follow this advice from law school and beyond,
by the time you start your own firm you will have personal
connections with thousands of people. Partners at your old
firm can refer you cases that are too small for the firm,
or for which the firm has a conflict. Partners and associates
will scatter to other firms, expanding your network. Law school
friends will become in-house counsel.
There is much more to say about how to actually form and
maintain the kind of relationships I’m talking about.
And, ultimately, you will need to learn how to solicit work
from your network. But that really is secondary to building
a far-flung network of quality relationships. This is something
even junior associates can do. Especially if you think you
might someday open your own firm, you shouldn’t wait
another moment to start.
Tom
Wallerstein lives in San Francisco and is a partner with Colt
Wallerstein LLP, a Silicon Valley litigation boutique.
The firm's practice focuses on high tech trade secret, employment,
and general complex-commercial litigation. He can be reached
at tomwallerstein@coltwallerstein.com.
© 2012 by
Michael Lord & Company, New York, NY and Wilton, CT. All
rights reserved.
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