leverage

#ICYMI – WEEKLY DIGEST ISSUE 281

This week’s Digest, which was sent to subscribers earlier today, has links to some brilliant posts from around the world

Some of the highlights of the week for me were:-

And if you are looking for a bit of fun, read Why you should build LEGO sets at work‘ by Justin Pot.

Again though, so much great content this week – so make sure to check it all out here.

If you don’t already, you can subscribe here.

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5 steps to take when your client becomes your biggest competitor

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One of the more interesting take-outs from an article (‘The Rise of in-house counsel: What does this mean for law firms?‘) published on the Australasian Lawyer website today – on the rise of in-house counsel numbers in #Auslaw – is the following comment by Katherine Sampson – managing director of Mahlab Recruitment:

“It’s not necessarily that they’re [in-house] going to a competitor firm, but they are going in house…”

To me this statement rings alarm bells and reads:

“your client has just become your biggest competitor!”

So, what steps should you be taking when your client has also just become your biggest competitor for that work?

Here are 5 things you should be putting in place immediately:

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Leverage and the 10-20-30-40 Rule

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Today’s Australian Financial Review Legal Affairs section has an interested article – ‘Junior lawyers bring in the money‘ – reporting what we all already essentially know: that law firms make their money from their junior lawyers.

What spiked my interest in the article was despite reporting the fact that “the conventional profit-driven pyramid model is still the dominant method adopted by most of Australia’s top-tier law firms” the percentages where the work is done has changed over time.

Early in my career we followed what was known as the 10-20-30-40 Rule, whereby [roughly]:

  • 10% of a matter’s work was done at partner level,
  • 20% of a matter’s work was done at senior associate level (there was no special counsel level in those days, but they would be included today),
  • 30% of a matter’s work was done at associate and senior lawyer level (in times when there was a difference between an ‘associate’ and ‘lawyer’), and
  • 40% of a matter’s work was done by the junior lawyers / trainees / graduates / paralegals (i.e., everyone else).

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