I have noticed a greater shortage of mid-career partners in law firms today than at any point in my 20-plus years of partner recruiting. You may ask, “How did this happen?” Many senior partners, particularly baby boomers and members of Generation X, have delayed retirement, while younger attorneys have increasingly pursued careers outside law firms, including in-house roles.
So, how can a law firm fix the problem?
Smart, strategic lateral hiring is a solution that many firms have successfully implemented and here are my recommendations on how to get started:
I. The Hidden Problem Behind a Profitable Firm
Your firm may be financially healthy today. Senior partners still maintain significant books of business, client relationships and leadership roles.
So, what’s the risk? The real risk is what the partnership will look like three to five to ten years from now. A significant number of firms have a large gap between senior partners and younger attorneys who are not yet ready, or even close to being ready, to take over and manage the firm.
II. Why Internal Development Alone May Not Be Enough
Strong, talented senior associates and junior partners should be developed aggressively but that growth takes time. If senior partners are likely to retire before the next generation is ready, the firm has a major timing challenge and, worst case scenario, even a survival crisis. Lateral hiring can become an essential part of the firm’s growth and succession strategy.
III. The Role of the Mid-Career Lateral
Experienced lateral partners can immediately contribute to the firm. They can add leadership capacity before it becomes urgent. They can also strengthen client succession and provide relationship continuity. They can mentor younger, less experienced attorneys and provide an additional and missing generation of business developers and practice leaders.
IV. Recruit Before the Gap Becomes an Emergency
Do not wait until a senior partner (or partners) announce their retirement. Adequate preplanning and overlap allow time for client introductions, shared matters, knowledge transfer and internal relationship building. The goal is to ensure long-term continuity and a successful transition of client relationships and leadership responsibilities, rather than scrambling to replace a retiring partner.
V. Hire for More Than Portable Revenue
Of course, the lateral’s book of business is important, but it should not be the only measure. Evaluate the lateral candidate’s ability to grow a practice, inherit or support key relationships, develop younger associates and partners, participate in firm leadership, and, most importantly, contribute over the long term.
VI. Culture Has to Be Part of the Succession Test
A future leader has to align with the fundamentals of the firm. Cultural fit is not just about personality or whether colleagues enjoy having lunch or dinner together. It’s significant to assess alignment around:
- client service
- collaboration
- compensation and credit-sharing
- associate development
- decision-making
- partner responsibilities
- leadership expectations
The wrong cultural fit can undermine the very continuity the lateral partner is supposed to create.
VII. Don’t Simply Replace the Retiring Partner
Avoid searching for a younger replica of the retiring senior partner. Discuss and determine what the firm needs the practice to look like in the future. A lateral can preserve important strengths while adding new capabilities, clients, markets and leadership skills.
VIII. Identify the Gaps Before You Start Recruiting
Analyze where the firm’s revenue is concentrated. Identify practices dependent on the most senior partners. Determine where leadership succession is weak and where the firm lacks experienced partners in the middle. Use that analysis to determine and define the lateral profile.
IX. Build the Partnership You Will Need For the Next Generation
Lateral hiring should not just solve today’s workload or add revenue to the next year or two. It can be successfully used to shape the next generation of the firm. The objective is to find partners who can contribute now, fit the culture, and help lead the firm into the future.
Lateral hiring needs to become an essential part of the firm’s succession strategy so the firm can continue to effectively grow in future years. I have helped many firms identify, recruit, and hire lateral partners who address gaps in their mid-career ranks, strengthen succession planning, and meet other critical talent needs.
If you’d like to discuss your law firm’s own lateral strategy, you can email me at lcaplane@lawvision.com.
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