A Survival Strategy for First-Year Lawyers Jonathan J. Rusch Deputy Chief for Strategy and Policy...

A Survival Strategy for First-Year Lawyers

Jonathan J. RuschDeputy Chief for Strategy and Policy

Fraud Section, Criminal DivisionU.S. Department of Justice

Washington, DCUniversity of Virginia Law School

Charlottesville, VAMarch 25, 2009

Note: The views expressed herein are solely those of the speaker, and do not necessarily represent the views of any

component or officer of the federal government or of the University of Virginia or any component or official thereof

Background

Law Practice Responses to Economy Hiring, pay freezes Delayed starting dates (sometimes a full year) Pay cuts of 10-20 percent

Partners, associates Rescission of offers (by firms and local prosecutors) RIFS (attorneys included) and “voluntary departure” plans

RIFs: January - 1,487; February - 2,000+; March – 3,000+ (in first 12 days)

Sometimes generous severance packages (plus nondisclosure agreements and waivers of liability)

Background

“Why Are They Doing This to Me?” It’s not personal – really Economics of law practice

Focus on more profitable work Supply of work diminished

Prevent losing partners Overcapacity of legal staff

Reluctance to leave voluntarily slows typical attrition

Need to Focus on New Realities of Practice 2008 was 2008

Components of a First-Year Survival Strategy

Professional Matters Financial Matters Personal Matters

Professional Matters

Timeline for Planning

Commencement to Bar Exam Bar Exam to Starting Date Starting Date to One Year Out One to Five Years Out

Commencement to Bar Exam

Enjoy Commencement (Yes, You Can) Your ability to affect outside events is limited Worries about bar exam can wait – a bit

Commencement to Bar Exam

Key to Approaching Bar Exam You only have to pass

Bar review courses will give you what you need to know

You only have to remember bar review material through the exam Cultivate “bathtub memory”

Bar Exam to Starting Date

Take Time Off After The Exam (A Little) You deserve it You need it

But Then Pursue Interim Strategy for Professional Preparation and Growth Professional development Business intelligence Contingency planning


Professional Development Do something law-related if you can while you’re waiting

Law review article or other legal writing Pro bono work

Do it because it’s good for others (and for you) Honing skill sets (e.g., brief drafting, litigation) Note: Consult with prospective employer first

Avoid prospective conflicts Employer may steer you to particular work Some laidoff lawyers being placed with pro bono organizations,

given stipend (far below former salary) Don’t assume you’ll be as attractive next year as you are

this year if you do nothing of professional nature Out of sight, out of mind


Business Intelligence Your perspective has to be global

Law firms’ perspectives increasingly global What affects other businesses/employers here and

abroad affects your prospective employer You are your own intelligence unit

Intelligence about – Your employer Continuing trends in legal profession and economy

Bar Exam to Starting Date Business Intelligence

Be proactive in gathering intelligence Occasional contacts with prospective employer

Don’t rely primarily on in-house contacts Google Alerts - http://www.google.com/alerts?hl=en

Set delivery frequency Legal blogs and newssites

Above the Law - http://abovethelaw.com/ Law Blog - http://blogs.wsj.com/law/ Law.com - http://www.law.com/jsp/law/index.jsp

Newswire - http://store.law.com/registration/register.asp?subscribeto=nw

Overlawyered - http://overlawyered.com/ The Shark - http://theshark.typepad.com/

Business publications Financial Times - http://www.ft.com/home/us Wall Street Journal - http://online.wsj.com/home-page (includes

Careers section)


Contingency Planning Make plans in case something goes wrong with your job

Associate litigation against firms reportedly increasing Suing your prospective employer still not best option Consider negotiating for best deal you can get

Keep your eyes, ears open for alternatives for which you may be qualified Geographic: Other cities/states Private and public sectors: Government “Find a job . . . even if it may not be what you had hoped or

expected. Get in somewhere.” (Partner)

Starting Date to One Year Out

What Do You Say and Do on Day One? Make three assumptions:

Everybody knows more and counts for more than you do Managing partner to custodial staff Manner/attitude: You’re happy to be there Learn (and use) everyone’s name, especially when you

need help Everyone else there is worth more than you

Your perceived marginal value on Day One: > $0 You need to increase your marginal value ASAP

Assume economic conditions will be volatile this year and next


How Do You Increase Your Marginal Value? Recognize you are there to support partners

Know what supervisor wants and check in on progress In client meetings, don’t offer advice and answer questions

posed by clients unless partner invites you to do so Prepare to be flexible in the work assignments you

take on Especially in difficult times, partners are likely to remember

who was willing to step up for less attractive assignments and who wasn’t

Broader exposure to more types of practice can help you sort out what kind of lawyer you want to be

If possible, avoid being locked into single department or specialty practice (unless very stable and growing)


How Do You Increase Your Marginal Value? Like college, choose a major and minor (Partner)

Advantage to being seen as “go-to” person for more than one legal area

When you have too much work, you need to push back (professionally) Sometimes you can be in too much demand

Can you refuse assignments that you absolutely hate? Maybe – but be prepared to offer a really good (i.e., deeply

personal) justification Assume that one is all you’ll get in your first year


How Do You Increase Your Marginal Value? Branding

Dr. Judith Sills: You are your own brand “. . . the professional identity you create in the minds of

others” (http://www.psychologytoday.com/rss/index.php?term=20080118-000009&page=1)

Branding may include – Establishing niche expertise Sending clear signals about key attributes (e.g.,

consistency, reliability, delivering on time)



Look for opportunities with your employer Write (co-write) article relevant to practice Do bar association, trade association presentations “You have to show what you know” (Sills)

Starting Date to One Year Out How Do You Increase Your Marginal Value?

Branding Don’t be shy about walking in partner’s/supervisor’s door

(Partner) Work at forming relationships – lunch, drop-by visits As you get to know people at firm, they can speak to the value you

add (First-Year Associate) “Many associates get work, and good work, by taking the initiative

and showing interest. Do not wait for opportunities, make them.” (Partner)

Develop “major” and “minor” mentors (Partner) Not in your major, minor substantive areas The more senior, the more influential on your behalf

But also harder to get on that partner’s calendar Listen to what mentors are telling you

Guidance/business intelligence for your career decisionmaking



But don’t leave it all to your employer “For a successful long-term career, do not look to your

company or industry to take care of you. As in every other arena of life, you must take care of yourself.” (Sills)

Explore topics or specialties that appeal to you There’s always a market for good communicators

Speaking, writing opportunities You might find something you’d like to do more than what

you’re doing by then


Neatness Counts (Still) Do and turn in high-quality work on time

If chance of missing a deadline, talk to supervisor first After a bad experience with partner on an assignment,

you may not be able to turn things around with that partner for some time


Neatness Counts (Still) Important to stay organized with multiple projects on

multiple deadlines In a sea of emails and paper, use a RAFT

Read, Action, File, Throw away (cf. Stephanie Winston) Online productivity resources

Lifehacker – http://lifehacker.com 43Folders – http://43folders.com Stepcase Lifehack – http://lifehack.org James Fallows, Organize Your Life!, The Atlantic, July/August

2004, http://www.theatlantic.com/doc/200407/fallows2 Your office as an extension of your brand

How do you want to be perceived by supervisors and peers


Don’t Forget Networking Within employer

Mentors and colleagues Beyond employer

Mandatory and voluntary bar associations Specialty areas of practice Improvements in legal system

General bar associations (e.g., ABA, state or local bars)


Plan What to Do When You Make a Mistake (And You Will) Before the mistake

Let “associate paranoia” be your guide (not your master) Get clear instructions on what you’re supposed to do

During the mistake Don’t exceed your supervisor’s instructions Never lie Protect the client’s interests

After the mistake Promptly admit what happened to the supervisor Promptly take whatever remedial steps you’re directed to

take

One to Five Years Out

Use Your First Year to Explore Where You Want to Be in Five Years You are building a career Two views of a career

Keswick Hall

Winchester House

Financial Matters

The J-Term Course

Basic Rules of Thumb

Don’t Spend Up to Your Salary Even if you make $160,000, you don’t make

$160,000 Net salary – (fixed costs (rent + loan repayments +

taxes)) + basic variable costs (food + transportation) = Not as much as you think

Plan to Control Costs (Fixed and Variable)

Controlling Fixed Costs

How Do You Control Fixed Costs? Rent

Think economically for first year Think of transportation costs as part of your total rent

Student loans Negotiate a rate you can handle in your first year Leave a cushion in case of future problems

Controlling Variable Costs

Plan for Reasonable Spending and Savings Make a budget that allows for both Need to consider two kinds of savings

Cash savings – emergency money Old standard: Long-term 3-6 months salary New standard: Anything, as long as it’s regular MetLife Study (Released March 2009):

50 percent of Americans reported having only one-month cushion or less before they could not fully meet their financial obligations if they lost their jobs

29 percent of Americans making $100,000/year or more reported they would have trouble paying their bills after more than one month of unemployment

Longer-term investment


Two Basic Precepts for Investment You can always save something

Set fixed amount each month, save automatically You won’t miss it if you save it first

You can always save somewhere Ultrasafe investments (e.g., short-term CDs) as well

as equity Start an IRA ASAP

Regular IRAs – tax deferral Small amounts invested early can produce substantial long-

term returns


T. Rowe Price Chart:


Choose a Credit Card Wisely Pick one and stick with it Don’t choose bank just because it mailed you an

offer Check websites for best rates, benefits (e.g., cash

back, no annual fee) http://www.bankrate.com/brm/rate/cc_home.asp


Don’t Let Credit-Card Debt Mount Banks increasing APRs, adding fees

Use FTC Credit Card Calculator - http://www.ftc.gov/creditcardcalculator On $5,000 balance, at 14.99 percent, and only

minimum payment each month: $250 estimated initial monthly payment 8 years to pay off (assuming you make no other

charges and pay on time) $1,613 interest charges

Controlling Variable Costs Joan Goldwasser, Kiplinger’s Personal Finance, Washington

Post, March 1, 2009: Find a bank with fee-free ATMs

Average payment for out-of-network ATM: $3.43 Avoid checking-account fees

Brick-and-mortar banks: Average checking-account fee - $12/month; average minimum balance - $3,500

Free accounts available with some banks if you use direct-deposit or make 5 or more debit-card purchases/month, or if you pay online

Avoid bounced-check fees Average bounced-check fee: $29 Ask if bank has free alerts when balance falls to predesignated

amount Automatic debits to pay credit card

Late fees can be as much as $39/month

Personal Matters

Plan to Have Personal Life Make Commitments to --

Your relationships Time for yourself and your interests

Recognize That You Create Expectations Robert Spagnoletti, President, D.C. Bar: “If we are sending

e-mails at 11 p.m., the message to our clients, and our families, is that the client can have our attention at 11 p.m.”

Keep Billables Up You may not always (or even usually) bill the

most, but the most billables won’t guarantee retention

Clients increasingly suspicious of, resentful about massive billables The least billables may guarantee layoff

Plan to Have a Personal Life

Make Time for Physical Activity Make Time for Sleep Actively Pursue At Least One Outside (Non-

Legal) Interest Another kind of long-term investment

Contact Data

[email protected] 202-514-0631

Photo Credits: Slide 28: New Horizon Wines Slides 29-30: Winchester Mystery House, San

Jose, CA Slide 36 (Graph): T. Rowe Price

A Survival Strategy for First-Year Lawyers Jonathan J. Rusch Deputy Chief for Strategy and Policy...

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