Lateral Partner ROI

By Sang Lee –

At the request of a particular law firm’s managing partner, I recently interviewed several partners who had joined his firm laterally within the last 12 months. The interview goals included, among others, the identification of strengths and weaknesses (oops, insert “areas for development” here) in the firm’s “thoughtfully conceived” and freshly launched lateral partner integration process.

“Looking back, how would you rate [on a scale of 1 to 10, with ‘1’ representing very weak to ‘10’ representing the best you could have imagined] your firm’s integration program for lateral partners?”

This is what I heard.

Partner 1: “Um, I don’t think we have a lateral integration program…”

Partner 2: “Do we have a lateral integration program?”

Partner 3: “The firm does its best but really, I had to figure things out on my own.”

I reported my findings to the firm’s leadership and explained that the newly rolled out integration process had some weakn… um, areas for development. Most critically, the firm would benefit from moving past its belief that lateral partner integration is a process (supported by dozens of checklists they skillfully compiled and showed me) and fully embrace the reality that lateral partner integration – in its most successful form – is an experience (supported by people). The three partners I interviewed had no recollection of any kind of meaningful integrative experience; their respective onboarding processes were far cries from cultural, professional or technical integration.

I candidly shared my belief that 2 of the 3 partners I interviewed would leave the firm within the next two years as a result. It wasn’t too late, I explained, but the leadership had to move quickly to:

1. Institutionalize and deepen these laterals’ client relationships by introducing them and their clients to other key partners in the firm;
2. Acknowledge and absorb (in order to fully exploit) these laterals’ technical gifts by providing opportunities for them to talk about their practices, their clients, their unique technical capabilities and historic professional “victories”; and
3. Acculturate the laterals beyond their respective practice areas by supporting them with a “lateral integration coach” to hold them (and the firm) accountable for the promises that were made during the recruitment phase.

The often-quoted 2012 American Lawyer/LexisNexis survey that revealed that 96% of surveyed Managing Partners planned to hire lateral partners also revealed that only 28% of them thought it was an effective strategy for growth.   Two years later, law firm leaders continue to vigorously pursue growth via lateral partner hiring yet effectively resign themselves to unsuccessful acquisitions by failing to invest the time, energy and financial resources to exponentially improve the likelihood of a successful lateral hire.

Successful lateral partner integration requires robust, highly structured and culturally embraced integration platforms that are minimally driven by:

• Clear, consistent and constant communication from leaders of the firm around the importance of strategic growth;
• Appreciation and respect for the unique needs of lateral partner (or lateral group) apropos her practice, clients, individual and professional background;
• Well-positioned “change agents” throughout the firm who are visible and vocal proponents of integration; and
• Administrative support across departments that understand their responsibilities around the integration of the new lateral partner (or lateral group).

With 96% of Managing Partners determined to hire lateral partners, there has been an awful lot of energy devoted to how to recruit lateral partners and – in the instance of my client who had me conduct internal partner interviews – how to onboard lateral partners. With the kind of financial resources that are devoted to lateral partner acquisitions, firm leaders must maximize ROI by fully plumbing the critical connections between Recruitment, Onboarding and Integration.

Blog Author

Sang is the Founder and Owner of SJL Attorney Search, LLC and serves as the Chief Executive Officer of SJL Shannon, a professional development firm that provides strategic consulting, training, coaching and counseling services for attorneys at global, national and boutiques firms in New York, Washington DC, Illinois, California, Massachusetts and Pennsylvania. Committed to the imperative of active legal career management, Sang began her career as a legal recruiter in 1998. After thoughtful cultivation and management of her own career, Sang has emerged as a critical advisor, consultant and trainer for AmLaw 200 firms and other sophisticated legal employers.

Sang has been invited to share her expertise at law firm partner retreats, recruiting organizations and city bar committees and has created programming for various NALP and PDI Educational Conferences on a range of topics including Law Firm Branding; Talent Retention; Working Strategically with Recruiting Professionals; and Partner Morale. She has moderated panels on the Recruitment and Retention of Diverse Attorneys and was a featured speaker on the imperative of professional development for law firm administrators at the New York City Recruiters’ Association (NYCRA) Inaugural Educational Mini-Conference. In October 2013, Sang will serve on the Guest Faculty of the NALP Foundation Summit in Washington, DC, which will shape how future generations of attorneys are trained and equipped in our post-economic reset world.

Sang holds degrees from Brown University and Georgetown University Law Center. She clerked on the Court of Appeals for the District of Columbia and worked as a corporate lawyer with two global law firms before becoming a legal recruiter in 1998. She launched SJL Attorney Search, LLC in 2004 and oversaw its swift emergence as one of New York’s premiere recruiting companies before she acquired the professional development firm formerly known as Shannon & Manch and rebranded the company SJL Shannon, LLC.

Sang sits on the Board of Directors for Girls Write Now, an organization that is dedicated to nurturing and promoting young girls in New York City’s public high schools who aspire to become professional writers. For more information on Girls Write Now, please visit www.girlswritenow.org.