Lawyer Monthly Magazine - April 2019 Edition

APR 2019 37 MacLean Legal Search www. lawyer-monthly .com lack of team spirit and/or a non- collaborative way of working can be contributing factors. • HR’s importance - In some firms, the Head of HR will be a member of senior management and have almost complete control of the lateral hiring process. In other firms, HR is more of a support function and the Managing Partners have greater influence and control. It’s more likely that the former will produce better outcomes than the latter. • Due diligence - A lot has been written about this over the years. New tools ranging from searching the dark web to interviews with a psychologist have appeared. Several commentators have Notes: Matthew Gerber rejoined Kirkland in 2014 after DMC closed down. Towerbrook was a Kirkland client. Sava Savov rejoined Kirkland in 2015 having spent the previous two and a half years as a VP at the client, Oaktree Capital. His move to Sideys was part of a seven partner move. Mark Heaney appears twice. Having spent 14 years at Bird & Bird as a partner, he then had two short- lived stints at Baker Botts and then Simmons & Simmons before moving to Allen & Overy in 2016 where he remains. argued that the main reason for failed partner laterals is inadequate due diligence and vetting of candidates. On its own, spending more time and money improving this aspect of the recruitment cycle will achieve very little. As this article demonstrates, there are so many different reasons why partner laterals fail. Further, by making this part of the recruitment process too onerous, intrusive and lengthy, it may put off some candidates and push them towards other competitor firms. Cultural and Personality Fit For some firms which have grown and grown beyond recognition, holding onto or creating a global common culture or identity must be extremely difficult. For those firms who have grown more gradually and organically over the years, there is still a “type of lawyer” that would best fit in. There are various questionnaires, tests and vetting tools available to help firms better understand the character and mindset of candidates. For the smaller offices, you could argue that personality fit is more critical. The larger offices with, say, more than 200 fee earners will clearly house a variety of different personality types. Further, a Private Equity lawyer is a different animal to a Tax or TMT lawyer. I still think it’s difficult to test for how candidates will react and respond in the moment when under extreme pressure. Word of mouth and speaking to ex-colleagues will be just as effective here. Further, multi- partner interviews and a social meet appear as good a method as any in determining for both law firm and candidate, whether there is a good enough fit. Change in Circumstances It’s common to see partner fallout pre- and post-merger. This may result in a firm’s change in direction or strategy, which may not suit some. Some jump or are pushed before the two firms become one. Some wait to see how it turns out in practice. I have tried to exclude as many exits as possible from my analysis which fall a year either side of these events. There are many obvious changes in personal circumstances which can cause partners to leave their firms sooner than planned, (health and family reasons, for example). The Economy and Business Downturns As with any business, law firms have to respond to business downturns which can result in cost-cutting and a reduction in the number of fee earners. Typically, associates bear the brunt but it can also lead to partner losses. Some product areas have historically been more cyclical than others. I have referred to Litigation and Real Estate in a previous section above. Hiring from In-house Most lawyers that leave private practice do so because they’ve had it with fee earning, the long hours, the territorial culture and the law firm politics. For many, it’s also a lifestyle choice. One of the reasons why firms hire senior lawyers back from in-house roles is that they weren’t able to find, or couldn’t afford, who they wanted in private practice. It’s no surprise to see that these hires don’t cut it in PP for the 2nd or in some cases a 3rd time. Employment History Despite being the most obvious caveat, some firms continue to hire lawyers that have had several previous positions, often for short periods. It’s no surprise when these hires fail. Around a third of the failed hires analysed had previously worked at four or more different organisations. Candidate Responsibility Whilst most of the issues listed here are firm-related, candidates must also take some responsibility when a hire goes wrong. For example: • They should do more of their own due diligence on the hiring firm, such as looking at their recruitment track record and general wellbeing of the firm and office. They should also be aware of issues which have previously caused conflict and partner exists. Working with a headhunter can help in this regard. • They should avoid being too creative with their business plan. London Partner Lateral Hires Lasting 12 Months or Less