Lawyer Monthly Magazine - April 2019 Edition

APR 2019 36 Special Feature www. lawyer-monthly .com Note: * Candidates moved to these firms as a junior partner for the first time. ** Candidate, who was a partner, joined as an of counsel. The three moves highlighted with a * were senior associates who moved to smaller firms to become partner, and within three years had left and leveraged up to better firms (or in one case back to the same Magic Circle Firm he had left). This remains a career strategy for some associates who are either passed over or who can’t wait to progress at their current firms. not sufficiently compelling to force a partner departure. Satellite Office Syndrome This applies to the London offices of international law firms (principally US-based). Problems can arise when the partners are left to feel isolated and decision- making is too distant and centralised. Lack of Effective Leadership and Management Having the right leader in any organisation seems obvious, but it’s easier said than done. Its importance should never be underestimated. By way of example, for those of you who can remember, Latham & Watkins’ London office, now one of the most professional, successful and highly regarded in the City, was not always so. David Miles was appointed Managing Partner of their London office in 2002 and the rest is history. Conversely, there are plenty of examples of Managing Partners who haven’t done as well and some who have even managed to put off partners from joining their firm. Partner • McDermott Will & Emery (4) - David Adler, Alan Gar, Jean- Marc Tirard and Damian Watkin. • Paul Hastings (4) - Neil Hamilton, Mark Shepherd, James Taylor and Ashley Winton. • Reed Smith (4) - Andrei Baev, Ben Davis, Angus Finnegan and Robert Porter. • Shoosmiths (5) - Adam Chamberlain, Edward John, Andrew Lockerbie and Juliette Peters. Career Path after a Failed Hire I am assuming that most lawyers must consider, to varying degrees, how a move to another organisation might affect their career path. Whilst no one can predict the future, choices do have consequences. The pie chart below depicts what effect a failed hire has had on the future career path of these partners. For example, just under a quarter of partners decided either to leave private practice or start their own account (yellow and exits can also be due to a lack of direction, lack of leadership and mismanagement. Money Clearly, money will always play an important part in attracting talent to a firm but also in retaining it. This particular carrot can be very difficult to ignore if it comes dangling and if it’s considerably larger than your current package. This is one reason why some US law firms have been successful in tempting away some of the best local legal talent. However, buying out partners, especially with salary guarantees, comes with risks attached, both for the law firm and partner if the numbers don’t match up. It can lead to shortcuts in the recruitment process. Further, doing so can cause discontent and displacement amongst some of the existing or other recently-hired partners. The lack of transparency about partners’ pay, often called “Black Box Remuneration”, used principally by some US Firms also appears to be another contributing factor, as recently highlighted by the Ropes & Gray exits. HR and Recruitment Issues • Lack of investment - Partners can become disaffected if their firms don’t provide them with the tools that they need to win and retain clients. For example, sales and marketing budgets per fee earner will vary from firm to firm. Just being given a desk and a phone doesn’t work for everyone. • Team building & spirit - This is often designated as an HR matter and to a degree is investment-related, but the culture and working environment are also heavily influenced by the leadership and management of the firm. On its own, it’s unlikely to lead partner departures, but a red pies). For those partners that stayed in PP, I have made my own judgements whether they have moved onto another Law Firm with a higher, lower or equal market reputation. London Partners Trading Up Most Common Causes for Failed Lateral Partner Hires Many of the issues below are inter-related and on their own For 43% of failed hires, the immediate result of leaving within three years has had no negative effect on their careers within private practice (dark blue pie). 24% moved onto smaller firms with an inferior reputation (light blue pie). This may have been a personal career choice for some. Some partners (11%) did manage to trade up to higher ranked firms (green pie). See the table below.