SlideShare une entreprise Scribd logo
1  sur  2
Location, Location, Location.... Technology’s Effect

(This futuristic article was written in 1995, prior to one of San Francisco’s largest firm’s startling announcement of its
upcoming move to...South of Market Street. Why would they be so bold?!)

August, 2000

Hugh B. Bright, Managing Partner of Nomincin & Forgettin, one of California's largest law
firms, put it this way: quot;We had been under pressure from several fronts. Our partners were
looking to the management of the firm to create policies and execute strategies to boost
partner profits. We wanted and needed to maintain and nurture the culture which had
helped us to attract the most successful attorneys in their respective practice areas. In a
competitive environment our clients were expecting us to be more aggressive than ever at
reducing our fees and capping reimbursables. We had a mandate to offer leading edge,
client-friendly technology, at great and ongoing expense. Partners were expected to be
accountable for the business they managed and clients were demanding senior-level-only
attention. We were a spawning ground for competitors seeking lateral hires, offering
economic incentives theretofore unheard of in our industry. To make matters worse, our
real estate advisors indicated that market rents for comparable space were firming up.

In addressing our new office lease, we took on the majority of these issues:

1.       Location. Under all the pressure, we came to grips with the usual questions about
         location. We concluded that paying a premium of $5-$8 per square foot per year for
         great view space was an enormous waste of resources. We didn't need to be in the
         most popular building in the city; our clients rarely came to our offices since we
         linked up on videotel. We began to think of quot;locationquot; as a quot;domainquot;, a meeting
         quot;placequot; of resources---attorneys, clients and on-line services---to conduct their
         business.

2.       FlexSpace. We envisioned an opportunity to achieve greater efficiency at lower
         cost---lower quot;fixedquot; costs. Most law firms operated under the assumption that 600
         square feet per attorney was reasonable. Office rent once accounted for 8-10% of
         our revenues. Today these ratios have been halved. Technological advances
         confounded most of us. On our initial move from our last lease, we reduced from
         225,000 square feet to 175,000, and maintained the right to terminate several of our
         25,000 square foot floors at regular intervals. Now five years into our new lease we
         have reduced space to 100,000 square feet, yet productivity---and profits---are
         soaring.

3.       Branding. At one time we felt it important to devote a significant portion of partner
         capital to create a sense of quot;homequot; within our premises. Now we realize that not only
         can we not afford such frivolity, such an investment in real estate would run contrary
         to our long term master plan to support telecommunication efforts throughout our
         firm's quot;domainquot;. Our firm quot;culturequot; thrives within our staff, yet is not reflected or
         invested in space which we will be all too happy to return to the landlord.
4.       quot;Secretariesquot;. We have none. Like the on-line multimedia library, it has taken some
         time and effort to train attorneys to the ways of the latest technology. Our old
         conventional library is rarely used. We are fully automated, including voice-activation
         networking. Attorneys and paralegals create, save and file all documentation. We no
         longer devote resources to central filing, secretarial filing, off-site filing or express
         mail.

5.       CyberCity. Like most national firms, we once chose locations for branch offices
         which would serve our clients. Our quot;virtualquot; location is now global. We quot;visitquot; clients
         or prospects regularly through our real-time Web location or through our
         management software network, where we simultaneously create documents, video-
         conference or broadcast a custom multimedia presentation to a secured site. Next
         year we are expecting to add holographic capabilities to our network so that we will
         actually quot;bequot; with our clients.

6.       The Pentium. Not long ago---a few chips ago, to be more precise---the world could
         hardly fathom the speed or agility of the Pentium chip. Capacity is now twenty-five
         times greater, at comparable capital contribution. Office automation will further
         develop and we are committed to being the first to adopt new platforms. Technology
         has helped to bring greater profit to the bottom line and relieved us of a substantial
         economic commitment to real estate.quot;

August, 1995 publication: The Daily Journal/California Real Estate Journal
Any reference drawn to Morrison & Foerster is purely unintentional.

Contenu connexe

En vedette

FERMA Press Release "New president elected"
FERMA Press Release "New president elected"FERMA Press Release "New president elected"
FERMA Press Release "New president elected"FERMA
 
вопросы, направляющие проект
вопросы, направляющие проектвопросы, направляющие проект
вопросы, направляющие проектMarina Kalinkina
 
Networking farrms 215
Networking farrms 215Networking farrms 215
Networking farrms 215Glenn Muske
 
TiasNimbas - Social media training (linkedin and recruitment) MSC Utrecht feb...
TiasNimbas - Social media training (linkedin and recruitment) MSC Utrecht feb...TiasNimbas - Social media training (linkedin and recruitment) MSC Utrecht feb...
TiasNimbas - Social media training (linkedin and recruitment) MSC Utrecht feb...Nederlandse Social Media Academie (NSMA)
 
10 things to Know Before Starting a Biz - SCORE Workshop
10 things to Know Before Starting a Biz - SCORE Workshop10 things to Know Before Starting a Biz - SCORE Workshop
10 things to Know Before Starting a Biz - SCORE WorkshopGlenn Muske
 
Jan Mitac
Jan MitacJan Mitac
Jan Mitacwerkus
 
Ethologia europaea v.41 n1 2011
Ethologia europaea v.41 n1  2011Ethologia europaea v.41 n1  2011
Ethologia europaea v.41 n1 2011MUSEO ETNOLOXICO
 
Entrevista Juan Manuel Masanet - Abogado de Elche Acoge
Entrevista Juan Manuel Masanet - Abogado de Elche AcogeEntrevista Juan Manuel Masanet - Abogado de Elche Acoge
Entrevista Juan Manuel Masanet - Abogado de Elche AcogeVinalopoLatino
 

En vedette (13)

FERMA Press Release "New president elected"
FERMA Press Release "New president elected"FERMA Press Release "New president elected"
FERMA Press Release "New president elected"
 
5 myths whitepaper
5 myths whitepaper5 myths whitepaper
5 myths whitepaper
 
вопросы, направляющие проект
вопросы, направляющие проектвопросы, направляющие проект
вопросы, направляющие проект
 
Networking farrms 215
Networking farrms 215Networking farrms 215
Networking farrms 215
 
aaaa
aaaaaaaa
aaaa
 
TiasNimbas - Social media training (linkedin and recruitment) MSC Utrecht feb...
TiasNimbas - Social media training (linkedin and recruitment) MSC Utrecht feb...TiasNimbas - Social media training (linkedin and recruitment) MSC Utrecht feb...
TiasNimbas - Social media training (linkedin and recruitment) MSC Utrecht feb...
 
Apple Tart
Apple TartApple Tart
Apple Tart
 
10 things to Know Before Starting a Biz - SCORE Workshop
10 things to Know Before Starting a Biz - SCORE Workshop10 things to Know Before Starting a Biz - SCORE Workshop
10 things to Know Before Starting a Biz - SCORE Workshop
 
Jan Mitac
Jan MitacJan Mitac
Jan Mitac
 
Ethologia europaea v.41 n1 2011
Ethologia europaea v.41 n1  2011Ethologia europaea v.41 n1  2011
Ethologia europaea v.41 n1 2011
 
Changes to community advantage pilot program
Changes to community advantage pilot programChanges to community advantage pilot program
Changes to community advantage pilot program
 
Entrevista Juan Manuel Masanet - Abogado de Elche Acoge
Entrevista Juan Manuel Masanet - Abogado de Elche AcogeEntrevista Juan Manuel Masanet - Abogado de Elche Acoge
Entrevista Juan Manuel Masanet - Abogado de Elche Acoge
 
andre
andreandre
andre
 

Location Location Location Technologys Effect

  • 1. Location, Location, Location.... Technology’s Effect (This futuristic article was written in 1995, prior to one of San Francisco’s largest firm’s startling announcement of its upcoming move to...South of Market Street. Why would they be so bold?!) August, 2000 Hugh B. Bright, Managing Partner of Nomincin & Forgettin, one of California's largest law firms, put it this way: quot;We had been under pressure from several fronts. Our partners were looking to the management of the firm to create policies and execute strategies to boost partner profits. We wanted and needed to maintain and nurture the culture which had helped us to attract the most successful attorneys in their respective practice areas. In a competitive environment our clients were expecting us to be more aggressive than ever at reducing our fees and capping reimbursables. We had a mandate to offer leading edge, client-friendly technology, at great and ongoing expense. Partners were expected to be accountable for the business they managed and clients were demanding senior-level-only attention. We were a spawning ground for competitors seeking lateral hires, offering economic incentives theretofore unheard of in our industry. To make matters worse, our real estate advisors indicated that market rents for comparable space were firming up. In addressing our new office lease, we took on the majority of these issues: 1. Location. Under all the pressure, we came to grips with the usual questions about location. We concluded that paying a premium of $5-$8 per square foot per year for great view space was an enormous waste of resources. We didn't need to be in the most popular building in the city; our clients rarely came to our offices since we linked up on videotel. We began to think of quot;locationquot; as a quot;domainquot;, a meeting quot;placequot; of resources---attorneys, clients and on-line services---to conduct their business. 2. FlexSpace. We envisioned an opportunity to achieve greater efficiency at lower cost---lower quot;fixedquot; costs. Most law firms operated under the assumption that 600 square feet per attorney was reasonable. Office rent once accounted for 8-10% of our revenues. Today these ratios have been halved. Technological advances confounded most of us. On our initial move from our last lease, we reduced from 225,000 square feet to 175,000, and maintained the right to terminate several of our 25,000 square foot floors at regular intervals. Now five years into our new lease we have reduced space to 100,000 square feet, yet productivity---and profits---are soaring. 3. Branding. At one time we felt it important to devote a significant portion of partner capital to create a sense of quot;homequot; within our premises. Now we realize that not only can we not afford such frivolity, such an investment in real estate would run contrary to our long term master plan to support telecommunication efforts throughout our firm's quot;domainquot;. Our firm quot;culturequot; thrives within our staff, yet is not reflected or invested in space which we will be all too happy to return to the landlord.
  • 2. 4. quot;Secretariesquot;. We have none. Like the on-line multimedia library, it has taken some time and effort to train attorneys to the ways of the latest technology. Our old conventional library is rarely used. We are fully automated, including voice-activation networking. Attorneys and paralegals create, save and file all documentation. We no longer devote resources to central filing, secretarial filing, off-site filing or express mail. 5. CyberCity. Like most national firms, we once chose locations for branch offices which would serve our clients. Our quot;virtualquot; location is now global. We quot;visitquot; clients or prospects regularly through our real-time Web location or through our management software network, where we simultaneously create documents, video- conference or broadcast a custom multimedia presentation to a secured site. Next year we are expecting to add holographic capabilities to our network so that we will actually quot;bequot; with our clients. 6. The Pentium. Not long ago---a few chips ago, to be more precise---the world could hardly fathom the speed or agility of the Pentium chip. Capacity is now twenty-five times greater, at comparable capital contribution. Office automation will further develop and we are committed to being the first to adopt new platforms. Technology has helped to bring greater profit to the bottom line and relieved us of a substantial economic commitment to real estate.quot; August, 1995 publication: The Daily Journal/California Real Estate Journal Any reference drawn to Morrison & Foerster is purely unintentional.