A Partner's $64,000 Question: 'How Marketable Am I?'

If you are a law firm partner, your ability to land the right position depends on a variety of factors, such as:

• The economics of your practice (e.g., portable business, hourly billing rate, personal production, leverage structure, etc.);
• The nature and extent of client and practice area synergies that exist between your practice and firms that are of most interest to you;
• Your overall story and the reason(s) behind your desire to explore the market; and
• Whether your practice and skill set are sufficiently unique and in demand, such that one or more firms might be willing to invest in you strategically. ( Editor' s Note: See “At the Intersection” on page 1 for a look on the importance of this last item.)

Why Do Partners Move?

It's not just “star” partners who may want to make a move. In my experience, law firm partners generally fall into one of five categories (described below). Knowing which category you fall into will help you (and your recruiter, if you have one) assess your marketability and job prospects.'

1. Rainmakers

These partners have established books of business and are very marketable, provided their books are “portable,” and there are no red flags or reputational issues. The challenge for these partners is not in determining which firms will talk to them; rather, since rainmakers usually have a lot of options, they must take great care in assessing which firms are the best fit based on the factors most important to them.

Motivators might include a need for greater rate flexibility, a sense of feeling undervalued at their current firm (which often, but not always, coincides with feeling undercompensated and/or wanting a seat at the table), a desire to minimize legal and business conflicts, and a need for greater support and resources, which, in turn, can create leverage to grow their practice. Rainmakers need to identify what is lacking in their current platform and then strategically explore a select number of firms that are likely to improve their situation.

These partners should seek advice from a trusted career adviser who knows the market, has relationships within firms at the highest levels, and understands law firm economics. Even though a rainmaking partner needs less help “finding a job,” having an agent with the right expertise and relationships can help him/her navigate the market, eliminate the noise and ultimately find the best fit.

2. Rising Stars

Also known as “up-and-comers,” rising stars are early career partners with small but growing books of business. They are entrepreneurial and relationship-oriented, have a knack for business development and typically have already built a solid foundation from which to grow their practice. They are future rainmakers. Many firms are willing to invest in rising stars, particularly those who are able to prepare a solid, compelling business plan that highlights the nature and depth of their relationships with existing and prospective clients, and outlines a viable plan for pursuing and landing new business.

A business plan should also emphasize specialized expertise and trends in a particular practice area, which may represent “low-hanging fruit.” Firms typically offer rising stars a relatively lower guaranteed base salary with built-in upside tied to specific performance targets, at least for the first year or two. These partners should remain flexible and open-minded; once they land in the right platform and new business starts to flow, their compensation usually works itself out.

3. Specialized Service Partners

These individuals have unique expertise, but (typically) little to no client originations or portable book. They are usually exceptional attorneys who have strong, specialized skills and a commitment to quality. That said, because firms today view these factors as secondary to business considerations (i.e., “Do we have enough work to keep this no-book partner busy?”), job opportunities for service partners are less abundant. They do exist, but one needs to apply a great deal of creativity and diligence (along with active networking) to identify and land them.

4. Worker Bees

These partners usually lack both specialized expertise and a book of business, and in many cases their compensation is out of whack with the market. Their value to their current firm is often based on consistently high billable hours, quality work and internal goodwill developed over many years. For these reasons, worker bee partners have very little leverage on the open market, unless they happen to find a firm that has a lot of overflow partner-level work in their practice area, but doesn't want to spin that work to lower-rate associates or “retooled” existing attorneys. Partners in this category often need to work extra hard to identify active needs in the market, and they should be prepared for a possible haircut in pay.

5. In-House Wannabes

This is a growing breed, and it can be a long road. Landing the right in-house position can take anywhere from six months (in the best of circumstances) to several years, and some partners simply are not marketable in the increasingly competitive in-house world. One's point of entry is critical and it's wise not to jump in-house too soon ' or wait too long. Because in-house searches are almost entirely client/need driven, these positions are highly coveted and extremely competitive. In addition, depending on the position, many companies want deep industry and/or prior in-house experience (and, to the dismay of many, secondments and serving as an outside General Counsel usually do not suffice).

Many partners move in-house through their own clients and contacts, and therefore should step up their networking activities and keep their eyes and ears open for new opportunities. Because many of these searches are conducted by outside search firms, partners seeking to move in-house should also try to get on the radar of as many in-house recruiting firms as possible so they will be well-positioned when the right opportunity comes along.'

Conclusion

If you're interested in moving, it's important to know which of the above categories best describes you (“know thyself”), so you can understand your place in the food chain and be realistic about the type of firm or company that is likely to hire you.'

Pamela DiCarlantonio is a Managing Director in the Partner Practice Group of global legal search firm Major, Lindsey & Africa. Earlier in her career, she was a litigation attorney at Jenner & Block. She can be reached at 312-896-8554 or [email protected].

I am often asked about the current job market for law firm partners, and my answer is what you'd expect from a former practicing attorney: “It depends.” I then ask a series of questions that will help me assess that attorney's marketability and job prospects.

Even during the economic downturn, lateral partner hiring remained fairly strong, primarily because the market for partners is largely opportunistic. At times a law firm may need to bring on a lateral partner or group to fill an active need or expand into a new city or practice area, but as a general matter, firms are not looking for partners in the traditional “have to have someone” sense. Unlike a company looking for a CEO or General Counsel, firms usually don't “have” to add anyone and simply won't if the right partner isn't before them.

Landing the Right Position

If you are a law firm partner, your ability to land the right position depends on a variety of factors, such as:

• The economics of your practice (e.g., portable business, hourly billing rate, personal production, leverage structure, etc.);
• The nature and extent of client and practice area synergies that exist between your practice and firms that are of most interest to you;
• Your overall story and the reason(s) behind your desire to explore the market; and
• Whether your practice and skill set are sufficiently unique and in demand, such that one or more firms might be willing to invest in you strategically. ( Editor' s Note: See “At the Intersection” on page 1 for a look on the importance of this last item.)

Why Do Partners Move?

It's not just “star” partners who may want to make a move. In my experience, law firm partners generally fall into one of five categories (described below). Knowing which category you fall into will help you (and your recruiter, if you have one) assess your marketability and job prospects.'

1. Rainmakers

These partners have established books of business and are very marketable, provided their books are “portable,” and there are no red flags or reputational issues. The challenge for these partners is not in determining which firms will talk to them; rather, since rainmakers usually have a lot of options, they must take great care in assessing which firms are the best fit based on the factors most important to them.

Motivators might include a need for greater rate flexibility, a sense of feeling undervalued at their current firm (which often, but not always, coincides with feeling undercompensated and/or wanting a seat at the table), a desire to minimize legal and business conflicts, and a need for greater support and resources, which, in turn, can create leverage to grow their practice. Rainmakers need to identify what is lacking in their current platform and then strategically explore a select number of firms that are likely to improve their situation.

These partners should seek advice from a trusted career adviser who knows the market, has relationships within firms at the highest levels, and understands law firm economics. Even though a rainmaking partner needs less help “finding a job,” having an agent with the right expertise and relationships can help him/her navigate the market, eliminate the noise and ultimately find the best fit.

2. Rising Stars

Also known as “up-and-comers,” rising stars are early career partners with small but growing books of business. They are entrepreneurial and relationship-oriented, have a knack for business development and typically have already built a solid foundation from which to grow their practice. They are future rainmakers. Many firms are willing to invest in rising stars, particularly those who are able to prepare a solid, compelling business plan that highlights the nature and depth of their relationships with existing and prospective clients, and outlines a viable plan for pursuing and landing new business.

A business plan should also emphasize specialized expertise and trends in a particular practice area, which may represent “low-hanging fruit.” Firms typically offer rising stars a relatively lower guaranteed base salary with built-in upside tied to specific performance targets, at least for the first year or two. These partners should remain flexible and open-minded; once they land in the right platform and new business starts to flow, their compensation usually works itself out.

3. Specialized Service Partners

These individuals have unique expertise, but (typically) little to no client originations or portable book. They are usually exceptional attorneys who have strong, specialized skills and a commitment to quality. That said, because firms today view these factors as secondary to business considerations (i.e., “Do we have enough work to keep this no-book partner busy?”), job opportunities for service partners are less abundant. They do exist, but one needs to apply a great deal of creativity and diligence (along with active networking) to identify and land them.

4. Worker Bees

These partners usually lack both specialized expertise and a book of business, and in many cases their compensation is out of whack with the market. Their value to their current firm is often based on consistently high billable hours, quality work and internal goodwill developed over many years. For these reasons, worker bee partners have very little leverage on the open market, unless they happen to find a firm that has a lot of overflow partner-level work in their practice area, but doesn't want to spin that work to lower-rate associates or “retooled” existing attorneys. Partners in this category often need to work extra hard to identify active needs in the market, and they should be prepared for a possible haircut in pay.

5. In-House Wannabes

This is a growing breed, and it can be a long road. Landing the right in-house position can take anywhere from six months (in the best of circumstances) to several years, and some partners simply are not marketable in the increasingly competitive in-house world. One's point of entry is critical and it's wise not to jump in-house too soon ' or wait too long. Because in-house searches are almost entirely client/need driven, these positions are highly coveted and extremely competitive. In addition, depending on the position, many companies want deep industry and/or prior in-house experience (and, to the dismay of many, secondments and serving as an outside General Counsel usually do not suffice).

Many partners move in-house through their own clients and contacts, and therefore should step up their networking activities and keep their eyes and ears open for new opportunities. Because many of these searches are conducted by outside search firms, partners seeking to move in-house should also try to get on the radar of as many in-house recruiting firms as possible so they will be well-positioned when the right opportunity comes along.'

Conclusion

If you're interested in moving, it's important to know which of the above categories best describes you (“know thyself”), so you can understand your place in the food chain and be realistic about the type of firm or company that is likely to hire you.'

Pamela DiCarlantonio is a Managing Director in the Partner Practice Group of global legal search firm Major, Lindsey & Africa. Earlier in her career, she was a litigation attorney at Jenner & Block. She can be reached at 312-896-8554 or [email protected].