New York Lawyer
June 27, 2002

Q:
What do you think of firms that back away from supporting practices that were once hot and now are in the doldrums?

Maybe the practice area isn�t thriving now, but it could bounce back, and the firm will be caught flat-footed at that point.

We have people who feel like second-class citizens because their practice area isn�t in vogue right now. There�s got to be a better way.

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A:
In any context, the issue of short- versus long-term thinking is a tough one.

There�s always a reason to favor the immediate crisis or current set of circumstances over the long-term, more balanced and holistic view. But there�s no question -- and the evidence is overwhelming -- that organizations that can integrate long-term thinking are more successful overall than those who tend to lurch from one short-term solution to another.

We�ve seen these patterns repeatedly, especially with real estate, bankruptcy and technology. As Phyllis Weiss Haserot points out, "Firms may be over-zealous in adding attorneys (usually expending sizable recruiting fees) and resources to capitalize on an area when it is hot and then back away, or go as far as pulling the plug, when it cools down, even if it is an area with good future promise."

Haserot, who is president of Practice Development Counsel, a New York-based business development and coaching firm, notes that "this is short-term, reactionary thinking, rather than taking a strategic position and investing in it for the long-term. When the area turns up again, the firm will be caught unprepared to handle the work and will have demoralized a significant portion of their personnel. This way of operating discourages loyalty and encourages people to keep the lines open with headhunters and jump from place to place."

The difficulty is getting the mindset in place that allows a firm to take the time to validate the long-term view. On the one hand, it may seem logical and au courant to be nimble and responsive to clients� immediate needs, but it will seem less impressive if the practice area you�ve neglected suddenly roars back.

One secret is to put in place long-term systems and ways of thinking in all areas of the firm -- recruiting, advancement, business development, and so forth -- so that forward-looking thinking becomes a habit, and isn�t applied like a band aid to just one aspect of the firm�s workings. Another benefit is that because inevitably all these systems depend on one another, all the long-term, strategic thinking and practices will work together to create greater synergy, momentum and results.

You�ll often hear people lament "we don�t have time to do all this long-term thinking," but if you take the time, you�ll have the time and will get the results that you want. Haserot recommends, "First, each firm should have a strategic framework to operate within, and partners must commit to it, with review and adjustments at reasonable intervals. The strategic plan or framework needs to be based on market research, not partner navel-gazing. Making strategic `investments� means that all partners cannot expect to have the same compensation they did in their best year every year. Remember that businesses are subject to the laws of supply and demand."

She also suggests a variety of projects for lawyers who are in doldrums practices areas while they are in abeyance. For example, they can spend more time marketing the whole firm, with credit for work they bring in for others. Or they can cross-train in another area so that they can better withstand peaks and valleys. They can also work on knowledge-management projects and development of new services and products to make the firm stronger and better able to capitalize on market changes. This way they can prevent the "second class citizen" syndrome by continuing to earn their keep.

Firms� fickle attitudes towards practice areas -- today you�re in, tomorrow you�re out -- contributes mightily to cynicism about loyalty in the workplace. A businesslike and measured approach to all practice areas, whether they�re hot or not, will not only stand you in good stead when today�s hot areas cool and vice versa, but also will pay off immeasurably in lower turnover and good will within the workplace, as well as saving all the costs that go along with turnover of valued professionals.

Sincerely,
Holly English
Principal Consultant, Values at Work