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Michael Lewis
Moneyball: The Art of Winning an Unfair Game
Any attorney who has opposed a well-heeled adversary can identify
with the Oakland Athletics, heroes of Berkeley author Michael Lewis’
new book. Against long odds defined by a payroll budget 1/3 that
of the Hated Yankees, the A’s have reached the playoffs three
straight years, and are characteristically streaking toward another
appearance. To succeed in their hyper-competitive industry of century-old
traditions and practices, the under-capitalized A’s have had
to outthink their more traditional, more free-spending rivals.
Indeed, they have rethought the game itself—discovering what
works according to statistical analysis of those 100 years of baseball
history, and concluding that most of what ‘everybody knows’
about baseball success is simply, demonstrably wrong. They’ve
replaced baseball’s hallowed hunch with high-tech, a strategy
that inevitably pays-off over 162 games of faithful application.
Nowhere is that approach more critical than in new-talent recruiting.
Instead of scouting, measuring and guessing, General Manager Billy
Beane and staff have focused on the results they seek to achieve:
control of the strike zone for hitters, and deception for pitchers.
Seeking prospects who demonstrate those skills has been hugely important:
both because their success rate is dramatically higher than the
woeful washout rate among most teams’ can’t-miss prospects,
and because less perceptive organizations have tended to undervalue
players who excel according to Beane’s criteria. Therein lies
much of the A’s unexpected success.
Okay, that’s baseball. What might the Athletics’ experience
teach us in the legal community, another venerable industry with
hoary traditions--and a horribly high, costly washout rate among
its younger players? The answer is that Moneyball is not only about
sporting success, but also about the genius of looking at the same
things everybody else does, and seeing them differently.
Some law firms can afford a high washout rate as a cost of doing
business. Many others, however--the ‘smaller market firms’--must
marshal their resources as carefully as do the A’s. Careful
planning and thoughtful execution can achieve similar success (the
basic protocol for what follows is also drawn from Hiring Winners,
a general-purpose recruiting manual, by Richard Pinsker).
Traditionally, firms have applied a narrow set of criteria to their
search processes. Common benchmarks include law school, rank/honors,
and years of practice in some area of specialization, as in: “I
want a third-year securities litigator from a top-tier school, with
major firm experience, and law review preferred.” Points are
also given or deducted for those candidates who’ve moved too
much, or not enough, and there is a strong preference for straight-and-narrow
careerists. The law, after all, “is a jealous mistress.”
This approach might be deemed the low-risk model. As lawyers we
are trained to recognize and minimize risk; our upside opportunity-analysis
skills may be somewhat less fully developed.
There’s a better approach. It starts by defining what Results
are truly critical to success in the position. As in baseball, this
process involves going beyond the easily available statistics to
consider the important outcomes the jobholder must achieve. Results
are not to be confused with activities; rather, they are achievements
that are critical to the success of the candidate. They are also
usually measurable. Thus, a marketing quota of client contacts is
mere activity, whereas “$350K/year of new client revenue”
is a Result. In an in-house context, “bottom-line orientation”
is just okay, but “must reduce litigation costs by 20%”
is a lot better description of the needed contribution. For any
position, there will be 5-10 critical results that can be identified
and ranked.
The second step builds from the first. It is to identify specific
Skills and Patterns of Accomplishment on which to found an informed
prediction that the Results will be achievable by the candidate.
For example, if a “real estate transactions associate”
opportunity requires solo lease closings representing developers
of major malls under the laws of CA, NV, AZ, OR and WA (a very specific
result), then one would work from that criterion to seek drafting
and negotiating skills, legal knowledge of the variations among
those states’ laws and an adequate demonstration of those
capabilities (1 such transaction? 5? 10?).
Patterns of Accomplishment are the demonstrations of required skills,
denominated in terms of specific experience rather than using time-in-place
as a proxy for it. If you require first-chair product liability
jury-trials-to-verdict to predict success, denominating that criterion
in terms of number of cases, rather than years of practice is a
much more sensitive metric. It allows for interviewing emphasis
to be placed on confirming that the apparent pattern really reflects
the experience sought by the firm.
Finally, the element of Chemistry--important candidate characteristics
like personality, habits and approach to achieving results--should
be identified. Interpersonal and organizational Chemistry can make-or-break
an otherwise well-targeted search. These are process skills and
personality traits that signal likely future success, or friction
among colleagues.
Begin by examining the organization: is it hierarchical or flat,
buttoned-down or casual? What are your most important business drivers—client
service, cost, quality, speed, or specialized expertise? How would
you characterize the firm environment—a high-energy pressure-cooker,
or a more laid-back, balanced setting? Are you a confederation of
separate practices, or an institutional union? Are results typically
achieved individually, or collaboratively? How are decisions made,
and how much authority is delegated? What gets rewarded? These factors
will also inform interview querying to test the candidate’s
experience and apparent comfort level with such an environment.
Next, consider individuals who are particularly successful within
the organization currently, as well as characteristics of any prior
incumbents that contributed to successes. What personal attributes
most contribute(d) to their performance? Note that there may be
a tendency to overrate the importance of certain undeniably admirable
traits, e.g. integrity is of unquestioned value in general, but
where does it rank in conjunction with other characteristics in
terms of achieving successful working relationships within the firm?
Finally, think about what characteristics would be counter-productive.
What gets complained-about by partners or bosses, and what may have
contributed to the demise of predecessors in the position? Identifying
those characteristics will lead to more insightful interviewing
and better reference checking. At minimum, that preparation will
promote alertness to the presence or absence of critical chemistry
factors.
Having completed this exercise, the firm will be in a substantially
better position to predict success among candidates. Past really
is prologue, and comparing a candidate’s past and personal
characteristics on sensitive, relevant measures removes guesswork
and hunch.
As in baseball, unlimited available resources are a nice thing
for lawyers to have at beck-and-call, but they are no substitute
for a thoughtful strategy. Ultimately, a results-oriented approach
to recruiting, one that redefines the game and outthinks your rivals,
will help your firm succeed in the legal community’s own “unfair
games.”
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