Eschewing the time-honored maxim of "location, location, location," The Wired GC continues his analysis of the importance (or lack thereof) of office location in a world where most client interaction occurs in the client's office, or at least somewhere other than the lawyer's office. The post, bearing the sublime title "What Face Means For Place," addresses the question "why do most firms in large cities persist in putting all their people in pricey high-rise space under long-term leases?" None of the common answers survive The Wired GC's pithy commentary. The post goes on to suggest some alternatives that no doubt will be the subject of much conversation.
Here's a statement in the post that every managing partner should memorize:
I’m sure I don’t understand all the intricacies of space selection and design of the modern law firm. But when I see firms jockeying for a new “signature” building, and later submitting their interior design to magazines for their annual awards, I know one thing: I’ve never retained a firm on the basis of its offices. And I have to think that the overhead costs inherent in the current space model are a big driver of higher rates and higher billable hour quotas. And I have decided against retaining more than one firm because of these factors.
Perhaps the driving factors on space should be minimizing cost, maximizing operating efficiency and teamwork and creating a desire to leave the office and go visit clients.
I want to relate one true observation. The most effective office design I every saw was an open room, where the CEO and Chief Acquisition Officer had the desks in the center of the room, facing each other. Other desks encircled this power center, with the most junior people being the ones closest to the windows but farthest away from the CEO. There wasn't much time spent on personal calls or mindlessly surfing the internet. There was, by contrast, a lot of time spent bouncing ideas off colleagues. And when meetings needed to be in private, the many conference rooms were utilized.
But to get back to the topic at hand, The Wired GC's point that the price of the law firm's office (location, location, location) becomes a substantial factor in high hourly rates is a truth that cannot be escaped. I ask this of discerning inside counsel: Do you ever hold a firm's toney location and expensive offices against them?
And to underscore the point I made yesterday, the right place for meeting your client is your client's office. Her convenience, not yours. Your nickel, not his. Your investment in the relationship. Your chance to learn more about her business and the demands on her time. Your chance to figure out more ways to help. Its all about the client, not your trendy offices with the expensive artwork.
Hi Patrick:
Excellent point about the benefit of an open office environmment-walls have done nothing to increase productivity in any organization that I have ever worked in.
Mayor Bloomberg of NYC is well-known for bringing a similar sensibility to City Hall. See:
http://www.thestreet.com/funds/meetthestreet/10006136.html
Hope all is well.
Dave Rakowski
Allentown, PA
Posted by: Dave Rakowski | Wednesday, December 28, 2005 at 03:49 PM