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1. Profit Motivation. A law firm managed for maximum profit can earn tremendous profits - commonly over 1 million dollars a year for senior partners. That is a strong motivation to manage for maximum income, and it leads to practices that can damage a client's case. 2. Leverage. Maximum profit comes from leverage. The greater the number of junior attorneys (associates or junior partners) working with a senior partner the more "leverage." The firm wants a high ratio of junior attorneys to senior attorneys. A client wants more seniority and experience. 3. Overbooking. Maximum profit requires that the attorneys are never without work. Litigation workloads are unpredictable. Cases end abruptly, by a summary judgment, or by settlement. To be sure that they are not caught standing around without work, firms habitually overbook. Even when they are overbooked, if a top client comes in with a new case, or a desirable new client asks for help, the firm will take that case also. A client wants to be sure that its case does not suffer because the attorneys are over committed. 4. Over Commitment of "Names." Every major law firm has one or more well-known "name" attorneys. These names frequently attract a client to the firm because the "name" has a good reputation. These "names" are often the most overbooked resource of the firm. 5. Case Management by Crisis. An overbooked firm is easily forced into crisis management. Problems start the minute things heat up in several cases. Work starts being done where it is most needed to avoid a crisis, rather than according to the best interests of a client's case. The firm's advice about what should be done, and the timing of it, may serve the firm's needs rather than the client's. 6. Team Assignment by Firm Priorities. Clients leave choice of the team to the firm. Some attorneys are better than others, or better for particular tasks, or experienced in one kind of case but not another. This is extremely important in specialized cases like patent infringement. Some attorneys are on probation, or retired in place, or on their way out. Profit maximization requires the firm to keep all these attorneys working on some client's team. Clients want qualified and experienced attorneys on their case. 7. Keeping the Work At Home. A firm will use its own attorneys, whether or not they have the best expertise. For example, a lawyer on the team leaves for another firm. Rarely will this lawyer be kept on the team. A client loses the value of the accumulated knowledge of that team member. For another example, a special issue arises on which another firm has the best talent available. Rarely will the firm, without the client's direction, bring in another firm. |