Clearly, the industry needs better methods for predicting
how much business will move with an attorney.
As obvious as this is, we sometimes forget that it is the
client’s decision whether or not to move to a new firm. It’s a hassle to change
law firms. Assuming the new firm meets the basic criteria clients have for
selecting a law firm (i.e. the new firm has the right platform, is affordable,
has the experience, reputation, etc.) there must be a compelling reason to move.
Studies on motivation show that the fear of losing something
is a much more powerful motivation than the prospect of gaining something. As
attractive as a firm may be, clients follow attorneys based on the fear of losing
their trusted advisor. One key to predicting whether a client will move with
the attorney therefore rests in the firm’s ability to gauge the level of trust
their clients have in them.
Most people think of trust as a binary issue: you either
trust someone or you don’t. In fact, there are various degrees of trust. The
levels range from trust based on reputation (I have heard about this person and
she has a good reputation) to trust based on competence (I have worked with
this person and she is a competent practitioner) to trust based on intellectual
candor (she is intellectually sharp and gives me objective advice) to the
highest order of trust, trust based on an emotional connection (she
demonstrates that she truly cares about me and my success). Clients can easily
find other competent attorneys. But as the level of trust rises, the likelihood
of the company moving their work with the attorney also rises. Therefore, the
intensity of that trust is best indicator of whether the client will head to
the new firm.
Assessing the intensity of trust in the relationship requires
a deeper, more exhaustive dive into that attorney’s relationships with their
clients. In my experience many recruiting attorneys are uncomfortable prying
too deeply or appearing to question the integrity of the candidate’s claims. More
simply don’t delve into the nature of the client relationships.
That’s a mistake.
Determining the nature of the client relationship from a
distance is difficult. There are no hard and fast rules and certainly, no sure
bets. But a line of questioning can help you paint a picture of the depth of
the relationships prospective laterals have with their clients. The questions
should reveal evidence of the durability and depth of the relationships to
determine which level of trust exists between the attorney and each of their
key clients. For instance, in your discussions, you should ask how each key
client relationship started and how long ago. A law school class mate is better
evidence of portability than working on a matter for another attorney. The
first demonstrates shared experiences and a relationship that has stood the
test of time. The latter may be a relationship based solely on the convenience
of the candidate’s expertise- not a very sticky quality.
In determining the presence of a trusted advisor
relationship, ask what the attorney knows about each client’s business and the
other people in that company. Trusted advisors are often introduced to others
in the company, are knowledgeable about areas beyond the legal department and
often know the company’s key executives. Often attorneys are asked for their
non-legal area advice on the company’s challenges and issues. Ask about the
nature of the advice that the attorney gives to each company. It sheds light on
the trust present in the relationship. Additionally, ask about the non-work
related activities or interests of the contacts at the company. Relationships
that are emotionally connected often evolve to include sharing mutual interests
and social activities and introductions to family members- very sticky
qualities indeed.
The more evidence revealed of a trusting relationship, the
better. A single instance of attending a ball game together is not sufficiently
compelling evidence. A pattern of social activities is much better. The same is
true when investigating the instances in which the attorney’s advice was sought
by the client. Was this legal advice or business advice? More deep trusting relationships
often expand beyond the original areas of expertise and non-legal advice is often
sought relatively frequently.
Law firms are well advised to use the services of an
objective third party to perform the due diligence on partner candidates. Analysis
performed by ‘legal placement support services’ such as Group Dewey Consulting
are more objective and, as such, carry greater credibility than the same
due diligence process performed by recruiting firms or even the in-house recruiting
committee. Lateral due diligence reports are valuable tools to inform compensation
discussions, partnership votes and the marketing and integration plans for new lateral
partners.
Interested in a better methodology for assessing the moveable
business of a prospective Partner candidate? Contact Eric at eric@groupdeweyconsulting.com
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