LAW PRACTICE MANAGEMENT
AND THIS ONE WAS JUST RIGHT: Transitioning Between Big and Small Firms By Michael G. Olinik
W
ith career mobility increasing, more attorneys are taking the leap and transitioning to different size law firms to try to find a better fit. Whether they find out that their first job out of law school isn’t as cracked up as it was supposed to be or a desire for a change in lifestyle, office hours, income, control or career opportunities, changing firms can be the key to reinvigorating a career or reestablishing one’s sanity. Finding the right firm may take some trial and error, but in the end, even if you choose to go on your own, it is not a journey you can do alone. As I discovered when I moved from Philadelphia to San Diego in order to revamp my career, it is the people around you that hold the key to your ultimate success regardless if you move from a big firm to a small firm or vice versa. The first step in transitioning firms is deciding to leave your current position. For younger attorneys who faced the tight job market after 2008 and were left with whatever job was available, the decision to leave is easy as they always wanted to find a career path to make their skills and passion. For other attorneys, the decision comes from realizing they are unhappy with their current situation or the desire to reach new heights in their careers. The more a person practices law, the more they discover what they excel at, what
26 SAN DIEGO LAWYER July/August 2019
they enjoy and what they despise. Change, however, is not without risk and may require a leap out of one’s comfort zone. I faced two major decisions for change in my career. The first decision, to move from a big international firm in Philadelphia to finding a small firm to work at in San Diego, was easy. I knew I did not want to stay in a big firm for my entire career and knew I wanted to move to San Diego. I would have never been successful, though, if I did not engage with the San Diego legal community, eventually meeting my boss and friends through SDCBA. My second decision, to leave the small firm in San Diego and open up my own firm, was harder. I only had the courage to make the transition after my friends pointed out how unhappy I was with my current situation and offered me guidance and encouragement to take the leap. After deciding to move on, the next step is figuring out where to go. There are pros and cons regardless of whether you move to a larger or smaller firm. Running your own firm or participating in a small firm requires not only setting up the firm, but also opening a business. Instead of just walking into a running operation, a lawyer branching out must decide what type of entity to use (sole proprietorship,
professional corporation or limited liability partnership), set up an IOLTA account, decide on malpractice insurance, set up a firm calendar and case management system, arrange for servicing and filing of documents, and determine whether the firm will have support staff. The attorney must also learn how to run a business, including finding office space; setting up utilities; setting up business banking accounts; market (and market some more); setting up email and a computer network; deciding whether to hire employees and, if so, comply with all of the California employer regulations; decide upon general liability insurance; learning how to invoice and collect from clients; and budgeting how to stay afloat while the business is building. Being at a small firm, however, gives attorneys more control. Attorneys can set their own hours, develop their own office culture, determine which clients to engage, determine what types of cases to take and set their own agenda. Going into a bigger firm, to the contrary, requires giving up control in exchange for a plethora of resources. An attorney entering a bigger law firm may no longer have control over staff decisions, which cases to work on, what clients the firm engages with, the billing policies, the location of the office, the billable hour