When it comes to nurturing a cooperative rather than competitive environment within corporate law firms, BigLaw is taking strides in an interesting direction. In a departure from the standard practice in the industry, the firm has chosen not to allocate origination credits — a change that its Chair has said promotes a ‘collaborative culture.’
‘Origination credits,’ or client originations, typically refer to the share of profit attributed to a lawyer who brings a new client to the firm. They are often a key component in determining compensation among equity partners and are, therefore, intrinsically linked to the power dynamics within a law firm.
In a culture where there are highly competitive ‘rainmakers’ responsible for generating significant business revenue, the absence of origination credits could indeed mark a cultural shift. Such a move could encourage professionals within the firm to work together for overall business growth rather than focusing solely on individual profit.
Firms that adopt a similar tactic could mark a significant trend in the legal industry towards a more cooperative and less competitive environment. While the move away from origination credits could face pushback from those who’d benefit more directly from the associated revenue, it may signal a shift in focus for large law firms; opting more towards fostering a work environment that encourages cooperation, and shared success.
For more details about this development, refer to the full article
here.