Staying Competitive in the Lateral Partner Market

Part One, last month, discussed how firms can stay competitive through lateral partner recruiting. This month, the article continues with more advice, and stresses the importance of telling a candidate why he or she should join your firm.

Get the Facts Early ' But Not Too Early

Some of the biggest recruiting disasters occur when firms fail to obtain hard numbers or potential conflicts information from candidates until very late in the game. By that time, both sides have typically bonded emotionally, and breaking off talks at that stage can result in some seriously hurt feelings and wasted hours. A firm can't wait until the eighth meeting to get accurate information about the candidate's originations, collections, billing rate or client base.

Conversely, requesting too much information too early in the process can also be a competitive disadvantage. Why? The simple fact is that most partners loathe filling out the disclosure forms, even though they recognize that the forms are an important part of the process. It's often a form of paralysis akin to that caused by time-sheet entry, ie, the form itself really is not that complicated but the simple regurgitation of information is just a hateful task.

Take the following example: A desirable candidate kicks off his search with introductory meetings at two firms. Both go very well, and Firm A says, “Can you come back tomorrow to meet with several of our practice heads?” Meanwhile, Firm B tells the candidate, “You seem pretty neat. Here's our 14-page lateral partner questionnaire. The next step is for you to complete the form. Once we get that back and review it, we'll get back to you with next steps.” It's a virtual certainty that the candidate won't even begin completing that form until after his meetings with Firm A's practice heads. If the second meeting with Firm A goes well, Firm B will be fighting against momentum.

So when is the right time to trot out the form? Probably sometime after the third substantive meeting. By that time, a number of partners hopefully will have had the opportunity to meet the candidate, compare notes and determine whether the candidate is worth pursuing. Before investing any more time, a firm needs to determine whether the numbers and other information verbally shared by the candidate were understood correctly and are for real. While having a candidate complete a form is no guaranty that the written information is accurate, we have found that lawyers, like most people, are usually more forthright when they have put something in writing.

Have Reasonable Expectations

It's important for firms to have a realistic sense of which candidates are obtainable. Sure, it would be great for your firm to nab the head of the SEC's enforcement division, or the Solicitor General of the United States. But before you expend too many resources in furtherance of this often-quixotic quest, you need to step back and examine whether there really is any reasonable chance of being successful. If your firm's top partner makes $750,000, and the going rate for the object of your affection is $2.5 million, your chances are pretty slim. Similarly, if your firm has 100 partners and $100 million in revenue, saying that you will only talk to partners with more than $4 million in guaranteed portable business may be unreasonably optimistic. This isn't to say a firm shouldn't ever stretch ' quite the contrary. A firm should always try to push the envelope. But your lateral recruiting plan needs to be grounded in reality. It's okay to spend some time and money going for the grand slam home run, but don't let it drive your entire plan.

Have a Plan ' Please!

Recently, I was invited to meet with the managing partner of the new Washington, DC, office of a small- to-mid-sized regional firm headquartered far from the city. Their offices were beautiful, and it was clear that the firm had invested a lot of money in the space in the hope of building a large and successful office. The views were breathtaking, the artwork was magnificent ' and the free gym was state of the art. The only problem was that the offices were in the wrong part of town, where nobody who actually lives in Maryland, DC or Virginia wants to commute to and from every day. Moreover, when I asked the managing partner what the firm's “pitch” would be, he sheepishly admitted he didn't have one. Now, it should go without saying that if you cannot articulate why a partner should lateral over to your firm, no one else will be able to either. (And if a candidate doesn't seem to mind that you don't have a vision for the office, you'd better think twice about that candidate.) You can't just wing it, especially in a ridiculously competitive market like New York or DC. A firm needs to know who they are and what they want to be before venturing out into market. Making one or two bad choices early on can cost a firm dearly, not only in dollars, but in reputation.

Keep the Recruiter in the Loop

A good recruiter can play a crucial role in helping a firm snare top lateral partner candidates. Unfortunately, some firms prefer to cut the recruiter out once the introduction has been made. Perhaps some of these firms feel that the recruiter has no objectivity, and is only looking for a fee. While there may be many recruiters out there for whom this is true, professionals know that maintaining credibility is critical to long term success, and never try to force a round peg in a square hole. Moreover, we recognize that we are dealing with extremely smart men and women who absolutely hate trying to be “sold,” and that firm management is in a far better position to determine whether the deal ultimately works for the firm than we could ever be.

That being said, it's important to remember that in most cases, candidates often have no one other than their recruiter with whom to share their concerns or weigh their options. While their spouse or significant other may provide much needed moral support, they are simply not able to provide any guidance as to which firm might be the best fit, especially if they themselves are not practicing lawyers.

The best recruiters wear a multitude of hats for their candidates ' confidant, psychiatrist, sounding board and even friend. Given our unique relationship with the candidate, it can be both frustrating to us, and counterproductive to your firm, to shut us out of the process. Trust the good recruiters ' they can help both sides determine whether the fit is right.

Conclusion

Being successful in today's ultra-competitive lateral market requires more than just a strong PPP. It requires dedicated resources, careful planning, and an open and continuous line of communication with your candidates. Your competitors are aware of this ' you can't afford not to be.

Part One, last month, discussed how firms can stay competitive through lateral partner recruiting. This month, the article continues with more advice, and stresses the importance of telling a candidate why he or she should join your firm.

Get the Facts Early ' But Not Too Early

Some of the biggest recruiting disasters occur when firms fail to obtain hard numbers or potential conflicts information from candidates until very late in the game. By that time, both sides have typically bonded emotionally, and breaking off talks at that stage can result in some seriously hurt feelings and wasted hours. A firm can't wait until the eighth meeting to get accurate information about the candidate's originations, collections, billing rate or client base.

Conversely, requesting too much information too early in the process can also be a competitive disadvantage. Why? The simple fact is that most partners loathe filling out the disclosure forms, even though they recognize that the forms are an important part of the process. It's often a form of paralysis akin to that caused by time-sheet entry, ie, the form itself really is not that complicated but the simple regurgitation of information is just a hateful task.

Take the following example: A desirable candidate kicks off his search with introductory meetings at two firms. Both go very well, and Firm A says, “Can you come back tomorrow to meet with several of our practice heads?” Meanwhile, Firm B tells the candidate, “You seem pretty neat. Here's our 14-page lateral partner questionnaire. The next step is for you to complete the form. Once we get that back and review it, we'll get back to you with next steps.” It's a virtual certainty that the candidate won't even begin completing that form until after his meetings with Firm A's practice heads. If the second meeting with Firm A goes well, Firm B will be fighting against momentum.

So when is the right time to trot out the form? Probably sometime after the third substantive meeting. By that time, a number of partners hopefully will have had the opportunity to meet the candidate, compare notes and determine whether the candidate is worth pursuing. Before investing any more time, a firm needs to determine whether the numbers and other information verbally shared by the candidate were understood correctly and are for real. While having a candidate complete a form is no guaranty that the written information is accurate, we have found that lawyers, like most people, are usually more forthright when they have put something in writing.

Have Reasonable Expectations

It's important for firms to have a realistic sense of which candidates are obtainable. Sure, it would be great for your firm to nab the head of the SEC's enforcement division, or the Solicitor General of the United States. But before you expend too many resources in furtherance of this often-quixotic quest, you need to step back and examine whether there really is any reasonable chance of being successful. If your firm's top partner makes $750,000, and the going rate for the object of your affection is $2.5 million, your chances are pretty slim. Similarly, if your firm has 100 partners and $100 million in revenue, saying that you will only talk to partners with more than $4 million in guaranteed portable business may be unreasonably optimistic. This isn't to say a firm shouldn't ever stretch ' quite the contrary. A firm should always try to push the envelope. But your lateral recruiting plan needs to be grounded in reality. It's okay to spend some time and money going for the grand slam home run, but don't let it drive your entire plan.

Have a Plan ' Please!

Recently, I was invited to meet with the managing partner of the new Washington, DC, office of a small- to-mid-sized regional firm headquartered far from the city. Their offices were beautiful, and it was clear that the firm had invested a lot of money in the space in the hope of building a large and successful office. The views were breathtaking, the artwork was magnificent ' and the free gym was state of the art. The only problem was that the offices were in the wrong part of town, where nobody who actually lives in Maryland, DC or Virginia wants to commute to and from every day. Moreover, when I asked the managing partner what the firm's “pitch” would be, he sheepishly admitted he didn't have one. Now, it should go without saying that if you cannot articulate why a partner should lateral over to your firm, no one else will be able to either. (And if a candidate doesn't seem to mind that you don't have a vision for the office, you'd better think twice about that candidate.) You can't just wing it, especially in a ridiculously competitive market like New York or DC. A firm needs to know who they are and what they want to be before venturing out into market. Making one or two bad choices early on can cost a firm dearly, not only in dollars, but in reputation.

Keep the Recruiter in the Loop

A good recruiter can play a crucial role in helping a firm snare top lateral partner candidates. Unfortunately, some firms prefer to cut the recruiter out once the introduction has been made. Perhaps some of these firms feel that the recruiter has no objectivity, and is only looking for a fee. While there may be many recruiters out there for whom this is true, professionals know that maintaining credibility is critical to long term success, and never try to force a round peg in a square hole. Moreover, we recognize that we are dealing with extremely smart men and women who absolutely hate trying to be “sold,” and that firm management is in a far better position to determine whether the deal ultimately works for the firm than we could ever be.

That being said, it's important to remember that in most cases, candidates often have no one other than their recruiter with whom to share their concerns or weigh their options. While their spouse or significant other may provide much needed moral support, they are simply not able to provide any guidance as to which firm might be the best fit, especially if they themselves are not practicing lawyers.

The best recruiters wear a multitude of hats for their candidates ' confidant, psychiatrist, sounding board and even friend. Given our unique relationship with the candidate, it can be both frustrating to us, and counterproductive to your firm, to shut us out of the process. Trust the good recruiters ' they can help both sides determine whether the fit is right.

Conclusion

Being successful in today's ultra-competitive lateral market requires more than just a strong PPP. It requires dedicated resources, careful planning, and an open and continuous line of communication with your candidates. Your competitors are aware of this ' you can't afford not to be.