In our previous article: PART 1: The Opportunities and the Struggles we discussed the opportunities that the right laterals can bring to a law firm, along with the struggles many law firms encounter to make good lateral hires that add long-term value. Part 2 of this article will discuss ways to improve the probability of a successful outcome with laterals.
IMPROVING THE ODDS
To help ensure a successful negotiation and lasting relationship, consider these simple concepts regarding the motivations of a lateral:
Laterals focused on these attributes exhibit a level of maturity that increases the chance the proposed relationship will be successful. Of course, the firm has to consider these same concepts as applied to the potential lateral. From the firm’s viewpoint, these questions become:
Do the math
Finally, I strongly encourage firms to do the math. What I mean by the math is as follows:
There are a number of subset questions that will be answered by this analysis. For example, staffing efficiencies will show up in the client profitability and cost-per-hour analyses.
Necessary information
Depending upon the complexity of the transaction, I typically ask for three years of history for the following items:
If laterals are unable or unwilling to provide this information, I see that as a pause point. A desire to focus on the “big picture” is often a way to masque weakness. Firms should be wary of these tendencies, whether it be on the part of the lateral or themselves.
Firms that use this type of process most certainly improve the probability of a successful outcome. Finally, running this process requires a measure of objectivity that is very difficult for most firms. Experienced outside support is often essential.
Other helpful articles to ensure a new lateral hire at your law firm is a success: