Thursday, December 24, 2015

The Freelance Economy and the Lawyer


In the 1970s, I was taking the LSAT and applying to law schools. Most of us interested in practicing law saw a well-defined career path. Go to law school, graduate, pass the bar, work at a law firm – for the rest of our careers. Many lawyers followed other paths, of course. The government offered steady employment and, depending on the agency, interesting work. Some lawyers worked in legal aid, a small part of the employment pie. A few went into law enforcement. But, most of us saw ourselves as partners in law firms doing interesting legal work and living out our lives in the upper middle class.

That lawyer career path of one job for a lifetime was not the typical career path for most in the workforce, even in the 1970s. Baby boomers switched jobs many times their careers; 11.7 times from age 18 to age 48, in fact. Job switching did not arrive with the millennials, though they have put their now mark on the modern definition of career path.


First, most people spend less time in each job they hold. Today, the average hovers around 4.4 years. As anyone familiar with averages knows, however, when you include some extreme numbers in the mix they pull the average towards the extremes.


Baby boomers switched jobs, but we still have many among us who managed to roll up quite a few years with one employer. Those long-timers pull the average higher. As they retire, the average years worked per employer will move closer to the job tenure measure for millennials (who as of 2015 form the majority of the workforce). That 4.4 year per job average will drop. When you dig into the statistics, you see that millennials are changing jobs more often than prior generations.

Second, attitudes towards job-switching have changed, even in the legal industry. In the 1970s, switching jobs suggested something had gone wrong in your career. Today, all the workforce disruption in the past 40 years drove most of the stigma out of job switching.

Third, job specialization increasingly affects career paths. Lawyers have ridden the specialization wave for several decades. We still use broad category designations in law firms, such as corporate lawyer, litigator, and employment lawyer. In reality, those broad categories exist on paper, but not in real life.

Litigators sub-specialize by topic (securities, antitrust, employment), and may sub-subspecialize (class-action employment). Corporate lawyers break their practices into many sub-topics, including mergers and acquisitions, securities, and finance. Even in smaller law firms, lawyers specialize to attract clients.

Fourth, technology has revolutionized work. In the 1970s, working at a law firm literally meant going to the law firm to work. The case files sat in the file room, research materials in the library, and your secretary sat outside your office. You drafted your memo by hand (some dictated). Your secretary typed the draft. Working from home meant lugging a leather bag filled with yellow pads and copies of cases, handwriting your draft at home, and then lugging the bag back to the office. Forget something? Sorry, it has to wait until you get back to the office.

Fifth, ideas about work have changed. When I went to law school, we expected to work long hours and weekends. Most of us didn’t ask why, that was just the job. If you didn’t want the hours, find a different job. Work life balance meant putting in the hours so your family could have a life.

The Clash of Old and New
Old news, you say. Sure, but baby boomers still hold the power positions in law firms and law departments. Their views about lawyer career paths have not evolved. But, new trends impact how lawyers will practice in the next decade. These new trends emphasize why simply plugging in technology will not solve the problems facing lawyers today. To perform well, lawyers must adopt operational excellence methodologies, such as lean thinking, and embrace agile project management.

The four trends, described in a recent Fast Company article by Stephane Kasriel, CEO of Upwork, are changing how we practice law.

1. “The Rise of Second-Tier Cities.”
“The 20th century saw big, cosmopolitan cities boom… If you wanted a job, you had to move to one of those places. That’s already changing…[T]echnology is making it far easier for people to live in places other than the larges hubs and still have access to jobs they otherwise wouldn’t.”

Talk about practicing law and New York quickly comes to mind. Washington D.C. is a close second. But, all large, urban, U.S. Cities play a role in the 21st century legal industry. As the Fast Company article notes, however, these cities have become cost prohibitive. Even if lawyers in large law firms can afford living there, the support staff can’t. Plus, clients cannot afford offices there because their.

Second-tier cities, that is, smaller urban areas, are becoming the new growth areas. When you can set up an office in one of these areas and still serve clients around the world, why pay the high costs of rent necessary to have large offices in the first-tier cities?

Many large law firms have begun downsizing their offices as lawyers spend less time in the office and more time working from alternative locations. Firms don’t need library space, can reduce filing space, have smaller numbers of support staff, and increasingly recognize that large offices don’t sit well with clients.

The next logical step is the mini-trend of virtual law firms. Why have an office when everyone can work out of his or her home office, coffee shop, or client’s office. In fact, as Quinn Emmanuel showed this year, why bind lawyers to a particular geography? Why not let them work anywhere in the world (Quinn Emmanuel allowed associates to do this for short stints) providing they stay within technology’s reach?

2. “More nanodegrees and nanojobs.”
Differentiated labor is a basic building block of complex societies and has been around far longer than the Industrial Revolution that accelerated it. But technological change is ensuring that ever greater specialization continues into the 21st century… The half-life of a skill is shrinking, which points to the growing need for continuous education and re-education. Rather than earning one big degree then going to look for a lifelong job at a single corporation, most smart workers will now follow a repeatable cycle: learn, work, learn, work.”

No, these are not STEM degrees and jobs in science. As the knowledge base for each job expands and and it gets harder to become and stay an expert, people have responded by shrinking their fields of expertise. Better to become a big fish in a smaller pond. First, we had tax lawyers, then we had tax lawyers specializing in mergers and acquisitions, and now we have tax lawyers specializing in certain types of deals.

These narrowly defined fields lead to nanojobs. The nanojob trend appears in many fields, not just law. Coders learn new software languages every few years. Nanojobs require training in new specialties, which gives rise to nanodegrees.

3. “Job seekers get choosier.”
“People are going to be more selective about the jobs they take, not based merely on compensation, but on how those positions fit with their values, lifestyles, and professional development goals.”
While we knew our probably career paths in the 1970s, we didn’t question the downsides of those paths. Abnormally long workdays, volumes of repetitive and mundane tasks, a singular focus on the billable hour, and mounds of stress, did not deter us. As the joke goes, the partner’s question “are you busy this weekend” was rhetorical, not real. It didn’t occur to us to say, “yes I am.”
Today, even when the challenge doesn’t get a voice it is there. Millennials ask “why should I do this”? In the labor-centric world of law, the answer often remains “because someone has to do it.” Smart people respond to that answer, especially in an industry seeing fewer job opportunities, by looking to other fields for careers.

4. “Entrepreneurship expands.”
The opportunities for entrepreneurship have steadily become better distributed around the country. But there’s also a growing segment of people who are turning into entrepreneurs in a different sense—without having a big idea or creating a product. Rather than founding a startup, they’re simply working independently as freelancers or by teaming up with one another.”

Lawyers working in law firms already qualify as entrepreneurs. Each lawyer must build his or her practice, especially by the time partnership rolls around. Law firms, by design, are confederations of entrepreneurs. In fact, most law firms still are small, where only a few, a couple, or one lawyer work. Lawyers have lived in the entrepreneur space for years.

But, a new type of lawyer-entrepreneur has emerged. Staffing companies have given some lawyers more opportunities. Axiom, which describes itself as a provider of tech-enabled legal services, is the best known home for freelance lawyers. The Axiom lawyers choose alternative careers (at least alternative to the traditional model), with more flexibility.

Moreover, clients have warmed to the concept of freelance lawyers. In addition to Axiom and other alternative providers, we have contract lawyers, of counsel relationships, temporary staff lawyers, and other variations of the theme.

Leveraging these Trends in the Legal Industry
For years, many of us have argued that lawyers should take up process improvement and project management to help clients. We have had mixed success. Lawyers, whether in law departments or law firms, are not anxious to move away from long hours of mundane work in favor of shorter hours adding more value (okay, I may have loaded that sentence a bit, but you get what I mean).

So, I’m going to take another approach. Lawyers, if you won’t change for your clients, then ask “What’s in it for me? Why should I learn how to use process improvement and project management?” The answer – a better chance that clients will hire you, you will have a meaningful career, and your career will not close out in a few years. That’s right, if I can’t successfully appeal to your sense of serving clients and society, I’ll appeal to your pocketbook.

I’m not saying you should become a process improvement or project management expert. I am saying you should learn how those concepts work, and find experts in those fields who can bring sense to your practice. The CEO, the doctor, the architect, and other professionals don’t try – and know they can’t – do all the tasks needed to succeed. Lawyers should do the same.

You can only work so many hours a year, why not work with someone who can double the value of those hours? You can only manage so many tasks, why not get assistance from someone who can increase that number?

There it is – if you won’t do it for your clients, do it for yourself!


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