Presentation to the Association of Pro Bono Counsel Timothy B. Corcoran Pamela Woldow, Esq. Altman Weil, Inc. October 15, 2009

2010

The rules have changed…

… but have the R.U.L.E.S.?

What are the R.U.L.E.S.? Realization of billing rates Utilization of lawyer time Leverage of lawyers Expense control Speed of billing and collections

But what if the clients just say no?

Is your law department facing budget cuts in 2009? Altman Weil CLO Survey, 2009 No 25.2% Yes 74.8%

What steps have outside counsel taken to improve the working relationship with your Law Department? None! Altman Weil CLO Survey, % 4.1% 3.7% 2.8% 1.6% 5.7% 8.1% 39.4% 18.3% 13.8% 0%5%10%15%20%25%30%35%40%45% None Communication Fees / Billing Training / CLE Responsiveness Technology Social Events Satisfaction Surveys Partnering Improved Project Staffing Newsletters

The New Math Profits = Revenue less Expenses COGS must be lower Predictability improves retention Responsiveness improves retention Retention reduces COS

Alternative Fee Arrangements It’s not just about discounts Predictability vs. uncertainty Experience reduces risk Alters how matters are staffed and managed

2009 The Big Squeeze Presented by Pamela Woldow, Esq.

Associate Salaries Cut 10 – 30% Holland & Knight Akerman Senterfitt Ruden McClosky Greenberg Traurig Alston & Bird Troutman Sanders Howard Rice Nemerovski Allen Matkins Blank Rome Schnader Harrison Perkins Coie Nixon Peabody Buchanan Ingersoll DLA Piper Dorsey & Whitney Drinker Biddle Howrey Kaye Scholer Kilpatrick Stockton Pillsbury Winthrop Snell & Wilmer Venable King & Spalding Seyfarth Shaw

Bye Bye Lockstep! Orrick Bingham McCutchen Squire Sanders Howrey Dorsey & Whitney Townsend and Townsend and Crew McKenna Long

The New Normal It doesn’t make sense to us that everybody gets an increase just because they were alive and were here and practicing for many years. Jeff Haidet, Chairman, McKenna Long

Maslow’s Triangle Self Actualization Esteem Belonging Safety & Security Survival

Pro-Activity Plan A Seat at the Table Be Prepared Speak the Language Match Needs Now

The Scrooge Effect Hard Message Inexpensive training Experience = higher rates Faster ROI Enhance client trust RFPs Soft Message We have commitments Helps community Non-profs “hard hit” Societal value Good for recruitment Firm culture

Win-Win-Win-Win-Win Flexibility for ups & downs Effective & least expensive training for associates Value for clients Expedited ROI for firm Enhance reputation, help community

References 2009 NALP Associate Salary Survey But We Just Reviewed Our Lockstep Six Months Ago!? AdamSmithEsq, Bingham Announces New Pay System, Law360, Orrick Gives the Boot to Lockstep-Associate Model, blogs.wsj.com/law, Salary models at many major law firms changing,