New York Lawyer
April 18, 2002

Q:
I�m in a law firm that has a lot of high-tech clients. As you can imagine, the last year hasn�t been an easy one.

It used to be that the partners and associates were all part of a team, having a great time together, joking around while doing a lot of work. But we had significant layoffs in the fall. That, combined with a real slowdown in business, has resulted in a big change in atmosphere around here. It seems very �us against them� and is very unpleasant.

Is this just an inevitable by-product of hard economic times, or is there a better way to handle this rocky period?

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A:
It�s easy to manage well in good times. The test of any firm�s mettle is how it manages in hard times.

The best time to start preparing for bad times is when the dollars are flooding in. Management needs to be careful about maintaining proper expectations among employees. Things can get so cozy that people lose sight of the basic reality -- the firm is all about business. Employees need to recognize that this is not a family, and that when the economy goes south, their jobs can be at stake. Your firm has learned that the hard way, but it�s up to management in good times to set a tone that recognizes that bad times can occur.

An understandable reaction in times of layoffs is to get more hierarchical, and pull back from what had been close relationships between partners and associates. Unfortunately, this only reinforces everyone�s isolation and the feelings of guilt the survivors of layoffs often experience.

This should be a time for togetherness, but of a different kind than you experienced in the boom years. The current business environment cries out for as much candor as possible, because everyone�s shaky. People in leadership positions should communicate as much as possible about the law firm�s financial performance and the possibility of further layoffs. They should also suggest ways that people can use downtime to their advantage. Clamming up only allows rumors to spin out of control and results in huge amounts of ill will. The aim is to do whatever is necessary to help the law firm survive and thrive in the future. Developing an alienating atmosphere won�t help in the long run.

Phyllis Weiss Haserot, president of the business development and organizational culture consulting/coaching firm Practice Development Counsel, suggests some �out of the mainstream� things that firms can do that can ease the pain during times like these, such as:

Sincerely,
Holly English
Principal Consultant, Values at Work