Our friends at Above the Law recently reported on a talk given by Gregory Jordan, the former managing partner of Reed Smith who stepped down to become general counsel of PNC Financial.
Giving a speech at the Law Firm Leaders Forum hosted by Thomson Reuters, Jordan joked about his old job. Above he Law reported that despite the headaches associated with being the GC of a big bank — endless litigation, government regulation, media scrutiny — Jordan said he doesn’t miss being the managing partner of a major law firm: “I tell people at PNC how much I love my job here. They must think, ‘Man, it must really suck to run a law firm!’”
But could it suck a bit less? At the conference, Greg Jordan shared advice for current managing partners, based on his time so far as a general counsel — “the top 10 things I wish I knew when I had your job….”
From Above the Law:
1. It’s impossible for a GC to keep up with what’s going on inside law firms.
There’s too much information out there for a GC to absorb coming out of law firms — press releases, newsletters, client memos. Think hard about what information you really want your client to know, why they need to know it, and how you will get it to them.
2. Big companies are schedule machines.
There’s a quarterly flow to everything when you’re in-house. Clients are happy to interact with you and your firm, but you always need to be conscious of their schedule and where they are in the quarter.
3. Watch out for the Big Four.
The Big Four accounting firms are “really good” and “eating the law firms’ lunch…. They come in, they talk for an hour, they’re concise, they’re proactive, and they tell me what I need to know based on what they’re seeing in the field and from other clients of theirs.”
4. Be alert to the range of needs your clients have.
Most big companies have a whole boatload of needs, including what some law firm partners view dismissively as “commodity” work. But at PNC, according to Jordan, “commodity” work like mortgage-related litigation gets reported to the board — and can raise awareness of the firm that’s handling it.
5. The speed at which buying decisions are made is dizzying.
The decisions about which law firm to hire aren’t always made by the general counsel. “We have 150 lawyers at PNC. Right now as I’m sitting here, we are getting sued, and my colleagues are making decisions about whom to hire.”
So firms need to approach corporate clients before lawsuits get filed and get on their radar screen. Law firms should be more like accounting firms, closer to law firms on an ongoing basis.
6. Relationships really do matter.
PNC uses 900 law firms but about 20 to 30 firms do the bulk of its work. “Our best firms know our company well and are close to us. We want them to succeed and we want to deepen the relationship.”
7. Specific expertise is critical.
For more on that subject, see this prior post.
8. Do a better job of having your partners know the industry and the company.
If you know an industry well — say, the financial services industry — then you can “approach us early and tell us how you can help us avoid a $2 million problem later if we spend $500,000 now. That’s value.”
9. The Wall Street firms have really raised their game.
The top Wall Street firms are not complacent (contrary to the views of their critics). Today they are, “for the most part, really good and creative — and not just in the lawyering.”
They share thoughts and insights on new legal developments for no charge. They come by to visit current or prospective clients. They are flexible on pricing: “Don’t get hung up on the rate, we can work out a deal that works for you.” They can connect clients with low-cost providers of other services too.
10. As managing partner, you can make a huge difference in the relationship with the clients.
“You represent your firm,” Greg Jordan told the assembled managing partners. “Nobody knows the firm better than you or cares about the firm more than you. Visit with the clients. Share with them what you see in the industry. What are your other clients doing that are innovative?”
