In the current environment of economic uncertainty, many lawyers in solo practice or at smaller firms either have seen their retirement assets and net worth reduced, or are worried about the prospect of facing such a reduction.
Other lawyers, especially at large firms based in the United States, have seen their positions eliminated through layoffs (for associates) or forced retirement (for partners).
While major Canadian law firms have not yet been so negatively affected, many are expecting revenue drops ranging from 10 percent to 25 percent this year. Given how many negative surprises the past year has brought, it would not be prudent to automatically assume that Canadian lawyers will remain unscathed from the global downturn.
Fundamental Considerations
With such concerns so widespread, there is a greater inclination by many lawyers to wonder whether the grass would be greener elsewhere, either by retiring or otherwise exiting from the practice of law altogether, or by leaving their current firms and starting a practice of their own.
The decision to make such a change should not be taken lightly, and should involve weighing four fundamental considerations:
- Economics. The simple fact is that recession doesn’t only affect the large corporate firms. The practice of many solo and small firm lawyers involves family disputes, estate planning, personal injury claims and the like, which tend to pay less to begin with, and can be postponed if recession-hit clients can’t afford them. With fewer clients and slower payments, there comes a point where practicing law can lose its economic viability.
- Age. Especially in a sole practice, aging lawyers who may be thinking of retiring from their practices may emotionally leave their clients long before they close their doors. In large firms the older lawyer receives the designation of “special counsel” or “emeritus partner.” Either way, we as lawyers cannot beat the calendar.
- Work-life balance. This is a long-term assessment that every lawyer must make. In the short term there is really no such day to day phenomenon as balance – at any given moment, the lawyer is doing just one thing, either working or engaging in personal pursuits. The broader perspective is how much cumulative time you devote to each, and what you value more. It is an issue that remains on top of the table, particularly as time demands for legal practice increase, and must be addressed within the needs of the now sometimes four generations of lawyers working in the same office environment.
- Personal satisfaction. Too many lawyers are close to burn-out or at the very least are unhappy in their day-to-day occupation. In fact, there are just too many reported cases of alcohol and drug abuse; how many such cases are not reported can only be left to the imagination. And recession makes lawyers look at their life savings and wonder if they can afford to retire, creating even more tension and unhappiness and leading to an eventual decision to leave practice completely.
Stress and Success
All successful people tend to work hard and are focused and passionate about what they do. If they suspect the grass may be greener elsewhere, it is not that they want to pursue a life of leisure – it reflects a greater desire to pursue their passion. Lawyers contemplating a change in their lives should ask themselves why they went to law school and become a lawyer? Do they still love the law and enjoy helping people? Is a career as a lawyer the best way to achieve their goals?
Often in my coaching work, I counsel lawyers who want greater peace of mind or greater control of their practice; they may have workplace issues involving their relationships with colleagues, staff and clients, or they may have a feeling that they have not achieved the degree of success they sought.
Lawyers are particularly vulnerable to stress and burnout. They worry over income, client demands and workload. It's very difficult to avoid stress when income fluctuates as client needs dictate. We often are not taught the need or skill set to save money and to live within our means. But cash flow and collections demands ultimately become paramount. Managing the practice like a business was never taught to us in law school. Doubting one’s ability to succeed is often the result of such internal conflict.
Contrasting Paths
In the effort to excel, made more intense by the pressure of economics, trying too much to succeed can cause problems for lawyers. Generally, we're successful because we're competitive. But, if we don't know when to stop, and have to come out on top and in control even for little things, our striving for success can be counterproductive.
Consider the different scenario in the medical profession, when compared to the law. Young Dr. Kildare works in a medical internship, learning the trade and then takes over the practice as the old doctor fades into the sunset. There generally is no discussion of money; the young doctor is happy to have a job, likes and respects the older doctor and is eager to learn as much as possible from the experienced doctor. The older doctor, on the other hand, is happy to have a younger person to help out and to mentor so that his patients will receive both his experience and the new learning coming out of a recent medical graduate.
The difference for lawyers is considerable. In Big Law, a young associate works for as many as ten years, rising through the ranks and is then either invited to become one of the partnership, or is asked to find employment elsewhere. In a small firm, a young associate works for years, and feels entitled to become a partner, but has yet to develop rainmaking skills and still has no personal client following, or book of business – and so is still an apprentice to the more senior lawyers.
Each of these associates undoubtedly has the skills and capabilities to be successful, and has accomplished enough to be considered a success. Yet the dynamics of legal practice are such that their own perspectives may be that they have not achieved success, and that leaving for greener pastures is the only option.
Making the Choice
When coaching lawyers who want to leave practice, I typically start with several questions that set the stage for all further deliberations. How do these questions resonate with you?
- Why do you want to leave your practice?
- What do you want to do with your life once you leave practice?
- Do you want to quit working and retire, or start a new adventure?
- Can you achieve the same objective without leaving the practice of law?
Leaving your current practice – whether by going to another firm, going solo or retiring – is an emotional process. You must want to do so, and believe you have no better alternative.
Even if you are going to another firm, a successful transition will require all the traits that define success: motivation, acceptance of risk, resiliency, commitment. Basically, you must answer the question, “What do I want to do when I grow up?” Each person’s answer is unique, and can change over time. Making a decision does not have to mean that you’ve burned bridges to your past life, or that you have erected a wall against future change.
Lawyers typically think they always know what needs to be done, and that they can do it if they just work hard enough and fast enough. That’s asking far too much of anyone, and trying to apply that to deciding your future all at once often produces self-defeating fear and paralysis.
A thousand-mile journey is nothing more than a series of steps; take them one at a time. I truly believe that most lawyers, at heart, love their profession. And as Confucius said, “Pursue a job you love and you’ll never have to work a day in your life.” The trick is to get past the distractions and stress so you can see your career for what you want it to be.
Edward Poll (edpoll@lawbiz.com) is a certified management consultant and coach in Los Angeles who coaches attorneys and law firms on how to deliver their services more profitably. He is the author of Attorney and Law Firm Guide to the Business of Law: Planning and Operating for Collecting Your Fee: Getting Paid from Intake to Invoice (ABA, 2003) and, most recently, Selling Your Law Practice: The Profitable Exit Strategy (LawBiz, 2005).