From: John Quinn Sent: Thursday, October 09, 2008 2:10 PM To: Attorneys Subject: things are slow right now More so in some offices than others. Lawyers are funny. In April, May and June we averaged over 200 hours per attorney – an unbelievable, perhaps unparalleled work pace for a firm as large as ours. Many wondered how we could possibly keep that up. Now we’re averaging 150 plus per month and people are worried. So one point to be made here is that “slowness” is relative. The pace is down significantly because a number of major matters, on which scores of attys were working full time, went away–trial ended, the case settled, etc–at the same time. 10 of the largest billing matters in 2008 thru the end of Sept, 9 have been completed. These are the kinds of cases you do not replace immediately. This really shouldn’t be a cause for concern though. Our basic practice strategy–focusing on financial litigation, trial work, being able to be adverse to financial institutions, etc–is clearly sound. In fact, in this business environment, we’re better situated than any firm I know. Lots of claims will be brought arising from the financial chaos and they will require firms that can be adverse to banks. We are at the top of that list. Many law firms will suffer. I don’t think we will. There are lots of business development issues and non-billable tasks to be done. We expect everyone will pitch in on such projects when asked to do so. John B. Quinn Quinn Emanuel Urquhart Oliver & Hedges, LLP

While there is likely truth to a memo like this, the fact is when work starts decreasing inside companies and law firms, people may get very nervous. The attorneys inside law firms become very nervous because the less work there is, the more they realize the sun may not continue to shine forever. It is a very scary world when we realize we do not always have employment stability. This is what happens in all companies and organizations, however. Things eventually slow down, and jobs eventually begin to disappear. There is a cycle of creation and destruction which characterizes all industries. A few years ago, I was reading about what a big deal Dell Computers was, and how the company was invincible. Now I am reading article after article about its layoffs and declining market share. A couple of years ago, I remember reading articles about how amazing Goldman Sachs was, and how it was the most successful investment bank of all time, and how certain people there were earning 100s of millions of dollars. Now I am reading how this company is no longer an investment bank and had to borrow money from Warren Buffett. Recently, I’ve read about how great Apple Computers is, but even more recently, I’ve read rumors that Steve Jobs is sick and dying. When he dies, the company could lose any momentum it has. Yesterday, I read that in September the American steel industry had one of its best quarters ever, but the final quarter of the year was one of its worst. Now steel plants all over the United States are being shut down, and workers are being laid off. Things are so bad for the US steel industry they are now seeking a government bailout. I read articles like this on a daily basis, and what it all says to me is we cannot take anything for granted. Inside law firms, people start losing their jobs when work slows down. The law firms generally begin whittling away their weakest (i.e., the people they dislike the most, or the people they feel contribute the least) for performance reasons. The attorneys are told their work is not up to par, or asked to look for other jobs. This process will generally occur until the law firm is healthy and earning again. This same process occurs inside companies. The companies will do everything within their power to eliminate as many redundancies as they possibly can so they can return as rapidly as possible to profitability. The more layoffs I’ve read about in the papers recently, the more I realize how the sun has stopped shining for so many people. All over the United States, and throughout the world, an incredible number of people have built lives for themselves which are now slipping away. Employers are doing everything possible to eliminate waste. Where does this leave you? First, you need to be ready for change. You simply cannot expect that your job will go on like it has forever. The idea that the steel industry in America could go from one of its best quarters ever, to one of its worst almost overnight, sends an incredible message: nothing is secure. My grandmother lived through the Great Depression and after this she lived her life in an incredibly frugal way. While this extreme may not be necessary, it is important to understand you need to be ready for change and should have a rainy day fund. If you do not have one now, start creating one. You should also be prepared for change. This means being aware of other potential jobs you could have and knowing what is going on in the market – one of the most important things anyone can do. While I am the Chief Executive Officer of EmploymentCrossing and am biased, I can assure you using a site like this is an incredibly intelligent and very good use of your time. A site like this is no different than checking the stock market to check your worth and the worth of your stocks. You need to be watching the market because the market is your job security. In a good market, you are fine, and with a poor market, you need to be prepared for change. Do not spend your life guarding against change. It will do you no good. You need to be proactive with your life and your career. If you find you are protecting yourself and guarding yourself in your existing career, this is not a good sign. Generally, this means you feel you may not be providing value commensurate with what you are paid. If this is the case, you need to step up and provide more value, or find somewhere you can provide value that matches your contribution. THE LESSON Since the sun does not always shine forever, you must take a pragmatic approach towards your life and career; remember that good fortunes are never permanent. Do not take your job for granted, but instead watch the market and be aware of other potential jobs. Rather than guard against change, be prepared for it.

COLUMBUS, Neb. — At the Columbus Family YMCA on a recent Saturday morning, the Champ punches only a time clock. The man who dethroned Muhammad Ali on a February night in 1978 in one of the greatest upsets in boxing history puts on his gloves — not the red Everlast boxing gloves, but the orange Rubbermaid cleaning gloves. He methodically gets the cart with the brooms and the cleaning chemicals and gets to work.

A similar story can be told about one of my favorite musicians when I was younger; MC Hammer did not stay on top for long, either.  An article about him relates:

“U can’t touch this”, and few could. The song topped charts in 1990 and earned an estimated $30 million. At the top of the ride Hammer had a $12 million dollar mansion in Fremont, CA, 17 luxury cars and a staff of 250. “Hammer time” was over by 1996, when $13.7 million in the red, he declared bankruptcy. After breaking his leg in 1996 and the murder of friend Tupac Shakur, Hammer experienced somewhat of an epiphany and went back to being “a man of God” (Hammer grew up in a religious environment and was no stranger to spiritual endeavors). Hammer is now an Evangelist, his shows now consist of prayer, preaching and gospel singing. He lives in a four-bedroom home in Northern California with his wife and 4 children.

The truth of the matter is, people who achieve the greatest success in any calling do not simply have the sort of “luck” that people like Spinks and MC Hammer had.  They get consistent results almost indefinitely and continue to build upon themselves over and over again.  These results come largely through incredible hard work. Over the past several years, I have had the opportunity to spend time with numerous people who have managed to accumulate hundreds of millions of dollars through various enterprises in a legal and ethical manner.  One man I am recall did this in the financial industry, another one I remember did this with property but was only able to get into property due to income he earned from being a physician. I have met and spent time with numerous people like this throughout the years. Recently, I was meeting with a man who is a developer.  Up until just a few years ago this developer was a  physician.  The man has made hundreds of millions of dollars as a developer; however, most of this wealth came about due to investments he made when he had a steady and predictable income as a physician.  Being a physician provides people with a steady paycheck that makes banks happy to lend you money for property. Over the course of several decades, this man invested in low cost property and waited a decade or more for the market to turn around in his favor.  Keep in mind, however, that none of the incredible riches this man was able to make ever would have been possible unless he had been a physician first. When I meet successful people like this I am always extremely interested in learning about how they achieved their success and I spend a great deal of time listening to how they work. In the case of this particular individual, I was very interested to learn about his life as a physician.  What was so interesting about this was that for 30 years he went into his office each day and had back-to-back appointments from 8:00 am to 5:00 pm, with no lunch hour.  He would take appointments throughout the entire day with no rest whatsoever. He had his own practice and set up his life this way.  He started out investing in properties with some spare income when he was younger, and then just kept going. “I’ve never wanted a jet,” he told me as we sipped coffee together and he reflected on the incredible life he had built for himself. Think about seeing 3-4 people per hour, for 8 hours a day, for 30 years.  This is an incredible feat.  In order to do this:

• you need to stay on your feet 8 hours a day;
• you need to arrive at work at the same time each day;
• you need to be extremely dedicated to what you are doing;
• you need to stay in good health;
• you cannot go out late at night and report for the office tired the next day;
• you need to have a good staff of people supporting you;
• you need to not allow yourself to get bored and distracted;
• you need to be good at what you are doing to consistently get this many patients; and,
• you need to be honest so people keep coming to see you.

Could you do the same thing day in and day out for 30+ years, every single day, from the same office?  Could you stay on your feet every single day?  I am not sure if I could handle this task.  In reflecting on his success, this physician told me that the secret to being so good at his profession was being incredibly honest with all of his patients and never recommending more of any service than any patient needed.  However, when I think about this physician, I know that the secret to his success as both a physician and developer was his ability to be disciplined and do the same job over and over again.  If he was unable to do this then he never would have been anywhere near the success that he ultimately was. He would not have earned as much as a physician. He would not have qualified for as many mortgages. He also would not have held on to his investment properties for decades. The same success that characterizes this developer (whose discipline enabled him to amass hundreds of millions of dollars) also characterizes many of our cultural heroes, such as Warren Buffett.  A major cause of Warren Buffett’s success lies in his ability to hold investments for several decades and never sell them.  Because he never sells his investments, he never pays capital gains taxes and more and more money continues to go to work for him without being taxed. While a great deal has been written about Buffett, his discipline in executing this one simple strategy is something that is a major cause of his success. People want great things for their life. I do a lot of reading of various types of motivational books and a lot of what I read simply makes statements like “you can do and be the things you set out to do and be.”  People love believing these sorts of thoughts and they are very comforting.  However, what most people miss when studying these lines of thought is that you cannot do and be anything without discipline. The freedom to be like Warren Buffett comes at a cost.  Buffett has gone into the same office every day for decades and done his job.  He also does his work in a certain way, and according to certain principles, which he does not deviate from.  The cost of the freedom to be whatever you want in your life is being disciplined.  There are very few success stories out there of people who were able to do incredible things without discipline.  They simply do not exist. You cannot achieve anything in your life just by thinking about it.  Instead, you need to actually get out there, do the work, and continue doing the work that is going to lead to the results that you are seeking.  Max Weber, a German economist wrote a book called The Protestant Ethic and Spirit of Capitalism that was first published in German in 1934. In the book, Weber came up with what is popularly known as “the Weber thesis.”  Here, Weber argues that capitalism as we know it came about when the Calvinist/Protestant ethic influenced great numbers of people to engage in work in the secular world, take part in trade and create their own enterprises in order to make money.  Under the Weber Thesis, people become more involved and interested in the “physical” aspects of work in order to receive salvation from God, than the contemplative aspects of life (i.e., prayer) to receive salvation.  Weber quotes the writings of Benjamin Franklin:

Remember, that time is money. He that can earn ten shillings a day by his labor, and goes abroad, or sits idle, one half of that day, though he spends but sixpence during his diversion or idleness, ought not to reckon that the only expense; he has really spent, or rather thrown away, five shillings besides. … Remember, that money is the prolific, generating nature. Money can beget money, and its offspring can beget more, and so on. Five shillings turned is six, turned again is seven and threepence, and so on, till it becomes a hundred pounds. The more there is of it, the more it produces every turning, so that the profits rise quicker and quicker. He that kills a breeding sow, destroys all her offspring to the thousandth generation. He that murders a crown, destroys all that it might have produced, even scores of pounds.

The Protestant Work Ethic that developed according to Weber’s analysis, holds that only through hard work can we achieve our desires and dreams.  The idea is that there are really no short cuts, and in order to realize long-term success it almost always requires long-term discipline.  The most important thing you can do for your ultimate success is have and apply long-term discipline to your work and life.  The more discipline you have, the better long-term results you are likely to have. THE LESSON You cannot achieve anything in life by just thinking about it; you must get out there and consistently do work that brings you closer to your goals. There are no short-cuts, so you will need long-term discipline to realize and measure of success. The most important thing you can do for your success is to have and apply long-term discipline to your life and work.