As we mentioned in chapter one of this lateral move masterclass, partners must demonstrate their value to their target law firm if they want to ensure a successful move. At the end of this series, we will provide you with an all-in-one template to help you develop a business plan that aids you in proving your worth. However, in the meantime, lawyers must understand two key factors that their business plan will need to include if they want to make the move a success. If you are a hiring firm looking to take on a prospective partner, you will need to be aware of these issues when considering a potential lateral hire.

We shared step one in the first instalment of this series, be sure to check it out before reading more on steps two and three.

Step 2: Start with ‘why’

Whether you have been headhunted for the role or are proactively seeking a lateral move yourself, it is vital to understand and articulate why joining the target firm makes sense, both within your business plan and the recruitment process:

  • This may be client-based, for instance. Your target firm may already act in a number of service lines for several of your clients, and joining would help cement critical client relationships.
  • Alternatively, the target firm may have sectoral or service gaps that would be remedied by your arrival.
  • For a succession role, you should give careful thought as to why you are the best person to preserve and build on the practice of the retiring partner. You need to be able to communicate this clearly.

Whatever your ‘why’ may be, it should objectively make equal sense to you and to the firm you wish to join.

As a target law firm, you should expect a prospective partner wanting to initiate a lateral move to be able to clearly express and demonstrate their ‘why’ and understand how this may fit within your overall commercial strategy.

Step 3: Consider your metrics

Perhaps one of the most crucial aspects of your lateral move business plan will be your financial information, ideally over the last three years.

A positive match

Ensuring that your revenue, remuneration, and rates are a reasonable match for those of the firm you intend to join makes the lateral move process far more likely to succeed.

Revenue and remuneration largely speak for themselves as most firms publish their Retention Participation Plan (RPP) numbers as well as their Profit Per Partner (PEP) figures.

However, what is often overlooked is the hourly rate your clients are used to. Where the existing rate is a good deal lower than those utilised at the firm you wish to join, questions will be asked about client attrition when faced with the new rate. Where your current rate is a good deal higher than those charged by the firm, your joining clients will undoubtedly be pleased, but clearly, either your revenue will decrease, or chargeable hours will need to increase proportionately to maintain your current level of billing. Being able to communicate your ‘why’ as well as your financial information is essential to prove to your target firm that hiring you would be a worthwhile move. 

Keep an eye out for the next two steps in our masterclass, in chapter three which will be published next week. Remember, at the end of this series, you will receive a bullet-proof business plan template to help you successfully manage your lateral move to your new firm.