Are Your Lateral Hires As Successful As Promised?

Man-picking-out-the-lawyer.jpgAre Your Lateral Hires As Successful As Promised?

Many firm’s sector strategies have been accompanied by a raft of lateral hires. This is neither cheap nor necessarily successful.  The cost of hiring is about £100K, yet as Mark Brandon noted in his 2012 Lawyer article, over 50% of the partners hired as laterals in 2007 had left by 2011. The current situation is little better. So, why do laterals leave?

  1. They know they can. The one thing all lateral hires have in common is that they have experience of leaving one firm for another.  Many will know that they have a portable book of work. Some will even have learned from the leaving/joining process and want to do it again – but better this time.
  2. You both lied. They told you that they were frustrated top-drawer lawyers, looking to be unleashed.  You told them that your firm was an undiscovered powerhouse ideally placed to hoover up the work abandoned by over-priced larger firms.  Neither was true. They are good lawyers. You are a fine firm. But neither of you are mould-breaking.
  3. You failed to make it work.  Imagine your lateral hire is like a jewel.  In the interview process you were either promising that the setting that you offered them would allow their jewel to shine even brighter, or you were persuading them that their lustre would add sparkle to your existing sound setting of lesser jewels. Twelve months in, the resulting jewellery is more Ratner’s than Asprey’s. This third reason is the one you need to do something about NOW, before decisions are made and the lateral is out looking for an alternative berth.

If the onus is on you to make it work, what can you do?  How can you help a lateral to bed into your firm?

  1. Manage expectations.  Have you ever analysed the performance of previous laterals over the first 12 months? How many of them brought in the work from the sources anticipated, even when they hit their revenue goals? And what about your firm?  What have you committed to do, and are you following up on promises?  Laterals often under-estimate how much of their previous success was due to the environment they worked in and the relationships they had forged.  So what do they expect from you? It’s worth writing down and referring to their expectations, as that subsequent conversations are around “What else can we help you to succeed?” rather than “Your numbers are weak”.
  2. Talk to them. Too many laterals are given a “buddy/mentor” on their arrival but nothing after 3 months.  Even the finest lateral needs more support than just the opportunity to meet existing partners and the chance to create their own internal network. The managing partner/head of large department should meet with them every month – probably for the first year.  This meeting not only allows the lateral to discuss their progress with someone outside their department, but it also gives the firm the opportunity to get an outsider’s view of the firm before they “go native”.
  3. Be honest.  Lawyers are masters in the art of dissembling.  This is disastrous when things are not working out as they should. There should be honesty, not surprises. If the lateral has 6 months to turn things around, tell them.  If the firm thinks they are upsetting other partners, challenge them.  This is the only way that you will get the same level of honesty back.  The lateral is a grown-up.  If they choose to leave your firm it should not be a surprise, and they should be able to leave with your blessing – not necessarily because you want them to go, but because you understand why they are going, and what you have learnt for next time.

All three aspects have their roots in effective communication.  If you want them to stay, tell them you want them to stay, talk to them, and do what it takes to keep them.  Or admit that it won’t work, tell them, say goodbye and learn from the experience.  Honesty really is the best policy.

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