Time To Give Origination Credits A Makeover

Competition among law firms, for clients as well as for attorneys, remains fierce. Origination credits have long been a way of incentivizing business development, as well as providing a form of compensation that works as a strong recruiting tool.

But the historical methods for distributing origination credits may no longer be compatible with the current cultures and priorities of many firms. Moreover, they can create issues that undermine their intent. If any of these problems plague your firm, you may want to retool your policy for origination credits.

THE ORIGINATION CREDIT CONUNDRUM

Law firms have long given an origination credit to the partner who brings in a new client. That attorney often continues to receive credit for all work flowing from that client, even if he or she is not involved in it. Such an approach is replete with problems. Most obviously, it discourages collaboration.