The Importance of Portables

As a recruiter, I am constantly in touch with the recruiting coordinators and/or hiring partners of firms in the west coast market both to find out what their hiring needs are and to see if they have any interest in the candidates I am representing.  It is fantastic when a candidate directly matches a current need, but if there is not a pressing need for an associate in a particular practice area, the most common response BY FAR is:

“Your candidate is great, but we just don’t have a need in that area.  However, we would definitely be willing to consider someone in that area with a portable book of business.”

Business is key, so whether you like your current firm and want to eventually make partner, or you want to improve your future chances of a lateral move, breaking into a new market, or leaving big firm life to open up your own boutique shop, you should be thinking about and taking action now to develop business going forward.  Nine times out of ten, a firm will be more interested in hiring a lawyer with lesser credentials and average legal skills but who has a strong ability to develop and retain business than an outstanding attorney with no client base, especially in the area of litigation.

Most firms do not have any formal training on this front, so it will likely be up to you to proactively network, to build relationship with your firm’s clients to the point where they consider you integral to their legal needs, and to pester your partners to include you in client pitches, development events, and the like.  And if your partners or the firm pushes back, or it appears that there are no long-term prospects to develop this side of your career, you may want to start looking for a new opportunity sooner rather than later, because the more senior you are, the harder it is to lateral without business…

But do you have any portable business?

The Texas Lawyer had an interesting article called How Associates Can Blow the Business-Development Bell Curve. It has long puzzled me how little training is given to associates in fostering and encouraging their business development skills.

After only eight months as an associate, I remember a partner I worked for told me that I should begin thinking about how to bring in new business. The conversation left me with large saucer eyes as I scuttled back to my office to keep my head down and write a memo. I remember thinking, “Is he crazy? My knees still shake very time I enter a courtroom!” A more helpful tactic would have been to actually take me along when pitching new business, so I could see how it was done.

Business acumen and legal skills often do not go hand in hand. Why don’t more law schools offer a course on business development so that associates aren’t kept in the dark, only to realize as partnership nears, that things look grim, very grim.

Here are a few suggestions from the article to get you started:

Tap into your personal network (yes, you have one. I promise). Take a contact to lunch, keep it low-pressure, and mention that you’d love an opportunity to earn their business if the opportunity presents itself.

Ask partners for help and guidance. And do it early! Ask partners how they were able to develop business. And if you have a contact that you want to develop and feel a little out of your league, ask a partner to accompany you on the lunch.

You don’t have to move mountains, just start the climb!

Are You A Partner Contemplating a Move?

Recently, we have seen a surge in the request by law firms for partners with business. Partners with significant portable clients probably will not find it very difficult to transition effectively in a market like this. However, partners with smaller books of business need to convince a firm that they can add future value to the firm and have plans for developing business. If you are a partner contemplating a move, a well written business plan can greatly enhance your marketability. For a link to an article which discusses the key elements of business plans and may help you prepare your own business plan, click here: http://www.bcgsearch.com/crc/partner-business-plans.html

Moving Your Practice (and Portable Business) to Another Law Firm

Moving your practice to another firm is a daunting task that requires your undivided attention to detail, your ability to identify and navigate around potential minefields, your capability to resolve issues expeditiously, your interpersonal skills to temper hurt feelings and egos, your access to the resources of your new firm, and the assistance you receive from key individuals within your current firm as well as others outside of your firm, such as your recruiter. You should start preparing your exit from the instant you decide to look for greener pastures. It is essential for you to anticipate potential pitfalls so that you can devise contingency plans well in advance to avoid embarrassments and confusion.

It helps to always focus on your clients, who are the most important element in making a move successful. Everything you do should directly or indirectly relate to your clients. Obviously, you have both an ethical and legal duty to continue to provide the necessary service to your clients during your move. The second most important element is to act expeditiously. Remember that time is your enemy; the longer it takes you to resolve issues to complete your move, the more likely additional problems arise. Below is a checklist to consider in contemplating your move:

1. Before you talk to any firm, the first thing you must do is determine whether or not your clients would move with you. Because of your long-term relationship you may believe a certain client would move with you and that you may feel it is unnecessary to confidentially inform your client of your intentions. This is fine, but be prepared in case the client does not feel the same way you do. If you have any doubt, you should have confidential discussions with each of your clients and you should get a firm verbal commitment that they would follow you to your future firm.
2. Another reason you would want to inform your clients beforehand is to avoid a situation where a client may have personal or legal conflict that cannot be waived or resolved with a potential firm’s lawyers or clients. You should prepare a list of firms you must avoid based on your discussions with your clients.
3. One way to head off potential problems with continuing to provide services to your clients while preparing your transition to your new firm is to determine ahead of time whether a service partner or other key personnel, such as associates, paralegals or secretaries, are interested in moving with you. Be careful not to disclose your intentions indiscriminately throughout your current firm. You should first target those individuals without whom you cannot adequately service your clients. Then obtain from each individual a verbal commitment that they would keep your intentions confidential and whether they will move with you to the new firm.
4. After you have met with your potential new firm, and there is a mutual attraction toward one another, the next step should be to have a conflicts check done. Because you already know which firms to avoid, you should not encounter too many problems. Any red flags should be resolved at this stage.
5. Once you receive a written offer from the new firm and you are ready to sign it, you should give a written resignation to your current firm. You should inform all the key people in your firm, including the managing partner, the executive committee members, and the head of your particular practice group, of your decision. In your conversations with these key individuals, try to avoid any negative criticism of the firm. It is now too late to be critical of the firm since you have made up your mind to leave and any negative criticism will be viewed as a final departing insult. Remember that this firm still has to cooperate for you to have a smooth transition to your new firm.
6. You should request that your new firm have business cards prepared as soon as possible.
7. At this stage, you should already know exactly which clients would move with you. You should have your new firm prepare notices informing courts, adversaries and opposing counsel that the new firm is replacing your old one. For litigation matters, Substitution of Attorneys should be prepared, executed and filed with the court. For transactional matters, letters to all parties involved in the transactions should be adequate. Because it is important for you to prevent major disruptions in servicing your clients, these notices should be done swiftly to avoid missing important court imposed deadlines in a litigation case, or neglecting contractual obligations in transactional matters. Given that you have already held discussions with your clients informing them of your intentions and that they have agreed to move with you to your new firm, there should not be any surprises during this step.
8. For all pending matters, inform all of your clients by letter of the name, address, telephone number and other pertinent contact information of your new firm. Include your new business card.
9. Make the necessary arrangements, and document it through a confirming letter, with your old firm so that you will receive all incoming correspondences and letters the same day or hour they arrive.
10. Inform the postal service and other mail carriers regarding your new address.
11. Your new firm should assist you in making the necessary arrangements for the physical transfer of your clients’ files.
12. Likewise, your new firm should assist you in transporting your personal items, files and furniture.
13. Your new firm should prepare and send out a press release announcing your joining the firm.
14. Your new firm should consider publishing a notice in various legal journals announcing your joining the firm.
15. Your new firm should also send out announcements to your and the firm’s clients, potential clients, professional acquaintances, associations with whom you have a membership, and anyone else in your Rolodex.
16. In the event the press interviews you, you should never say bad things about the firm you are leaving. Stay positive! Also, get assurances from your new firm that no disparaging comments about your old firm will be made to the press as it relates to your departure.

Obviously, this is not an exhaustive list and you may need to add to it depending on your particular circumstances. In our experience assisting partners and practice groups in making a successful and smooth transition to a new firm, preparing ahead of time is vital. In making your preparation, your focus should be on your clients and proceeding expeditiously. Assume that you will encounter surprises and difficulties, but preparing in advance will make the process less daunting.

High Demand Should Motivate Partners To Move Now!

Even in these tough economic times, there is increased demand by law firms for partners with business. Why would any partner decide to move to another law firm in such a tumultuous economic market?

First, firms not equipped to withstand this extreme economic downturn will not be able to stabilize and survive. Therefore, it is imperative that partners assess whether or not their current firm is financially sound and will provide the best environment for their clients during the next few years of recovery and beyond. If a partner’s current firm is rapidly declining and is experiencing a high level of attrition and movement at the associate and partner levels, it could be exactly the right time to make a move.

Second, firms are expanding and diversifying their practices to better service their regional, national and international clients, so it is an excellent time for partners to seek out new opportunities at firms that are well positioned for continued growth and expansion and which would provide additional cross selling capabilities, and services to their clients.

Finally, although some firms are downsizing and closing their doors, other firms are expanding, merging and have recently launched new offices. Additionally, many firms are launching new and innovative niche practice areas. Thus, if you are a partner with niche expertise in areas that are or will likely be in high demand during this tough economic cycle, you could take advantage of these new opportunities and actually lateral to a more prestigious firm with a better platform.

Now is the time for partners to evaluate their current position. There are opportunities in every market, whether the economy is good or bad. Partners who can seize upon new opportunities in this down market will have better control of their careers and be in a better position to respond to their clients’ needs.

Senior Associate With Small Book of Business Seeks Work – Suggestions?

We are hearing this very story several times a week. Even in a flourishing economy, we find that senior level attorneys, especially general litigators, have a difficult time finding a new position after being let go from their firm. Without a substantial amount of portable business (at least $300,000-$500,000), many firms are unable to support the salary of a senior level attorney.

Some attorneys believe if they lower their salary expectations and apply to jobs for junior level attorneys they will have more success. This is not true. Firms who want to hire an associate in the 2-5 year range are not willing to consider someone who is significantly more senior – even if the attorney’s experience is exactly what the firm is looking for. (In a few rare cases it can be done, but the general norm is that it cannot).

While a firm may technically get a “deal” by hiring a more experienced attorney for the price of a less experienced one, firms target a certain class year for many reasons besides experience level. There may already be a number of senior attorneys at the firm who are on partnership track and adding another person at their level (even to come at a junior level) would disrupt the politics within the firm. Firms also hire within a certain range because they simply do not want someone who has too much experience. Firms like to train their associates to do things their way. A senior level attorney will likely have learned to do things in a way that is not conducive to the firm’s practice.

Many of these senior level attorneys have the necessary skills to start their own law practice. Sometimes a bad situation, such as getting laid off from your job, is exactly what you need to set you in the right direction and propel you to do something you have always wanted to do! I recently spoke with a senior attorney who believed if he began a firm with several other senior level attorneys who had a few clients then perhaps each attorney could support the other and build upon their business. For instance, if one attorney has $50,000, another has $75,000, and another has $100,000 perhaps they could all work together and support each other and market their skills as a group. This is a very good solution to the Senior Associate’s predicament. Now, how do you find these fellow attorneys?

I have several ideas on this one. The most obvious option would be to become more vocal and active in your local bar association. Do not simply attend functions related to your practice area alone. On the contrary, you will likely find people who can offer services and skills different than your own in unrelated practice areas! This is also true with CLE classes. Assuming you have not yet met your CLE requirements for the year (or even if you have), you could sign up for a class that is unrelated to your practice, and use it as an opportunity to meet new attorneys who are in the same situation as yourself.

Another thought is to use www.lawcrossing.com. It is free to every employer to post a job. Well, think of yourself as an employer! Be honest in your description of what you are trying to achieve. An example of such a job posting: “Solo practitioner with business litigation practice from the Class of 1999 is trying to start a firm. Looking for talented senior level attorneys with a minimum of $50,000 in portable business to join forces and build upon our talents and grow a business.”

Lastly, once you have decided to start a firm, make sure everyone you have ever met knows about this decision! Make sure to get in touch with old colleagues you had worked with who had since left the firm, law school friends, family, business friends, family friends, old firm clients, etc. etc. You could go as far back as a law school internship or externship or even a high school or college summer job. It is also important to get in touch with your old firm (even if it hurts your pride a little). Firms often have to turn away work for a number of reasons (e.g., case is too small, client conflict, requires too low of billing rate), and may want to recommend you. Before you know you will have developed more clients and built upon our business. It will take years to double your business but be patient and consistent.

The Importance of Portable Business

If you are a senior associate, of counsel, or partner, how important is portable business when making a move to another law firm? Most junior to mid-level associates are told to concentrate on developing their skill sets so they can become great attorneys. So, you put your head down, do good work, learn from the senior associates and partners, get good year-end reviews, and you feel you are learning and growing as an attorney. Before you know it, you’re a senior associate, respected by your peers and performing well on all work given to you. From this point, there are three things that can happen if you want to stay in a law firm environment: (1) you leave your firm, (2) you are promoted to of counsel at your present firm, or (3) you become a partner at your present firm. We will analyze whether portable business is important in all three scenarios.

Senior Associates
Depending on the region of the country and the size of the firm, a senior associate can range from 6-12 years of experience in a particular practice area. If you are a senior associate, you are probably trying to make partner at your present firm. If partnership is important to you and you believe down the road you’re not going to make partner at your present firm, you should think about leaving your firm immediately. Depending on your practice area, you should still have some marketability and be able to move to another firm. For example, senior corporate M&A, commercial real estate, and finance associates are all in demand as of today. However, if you are a seventh-year litigation associate without business, it may be difficult for you to move firms depending on the region of the country. Most firms do not like taking older associates without business. Although you have more experience than your younger counterparts, there are a couple of reasons why the move may be a difficult one.

Generally speaking, firms do not like to hire senior-level associates because the firm’s current senior-level associates become a little uneasy. Some of the questions the senior-level associates start asking themselves and others are as follows: Why do we need another senior associate? Are they bringing this person in to replace me? Is this person going to make partner before I do? Am I even going to make partner?

This causes a strain on the current senior associates; and in some cases, they may leave their firms for other firms. The partners in the group get upset because the most trusted and relied upon associates in the group start to leave. The second reason is due to law firm economics. Firms would rather just give the work to a mid-level associate because they can bill the mid-level associate at a lower rate, thus making their clients happy. As a result, the firms are mainly looking for associates with 2-5 years of experience.

So what do you do if you are a senior-level associate without business in a slow practice area? You should start exploring your options. You can stay at your current firm for as long as you can and hope that you get promoted to the title of counsel, move to a smaller firm where your expertise and skill are valuable assets, or move to an in-house position.

Of Counsel
If you are an of counsel-level attorney at your present firm, you probably have a unique skill set that the firm values. If you do not have portable business and you want to relocate geographically or leave your firm for another, it will probably be very difficult to find a position unless you move to a firm that needs your specific skill set. In this case, the firm may have a lot of existing business in your particular practice area and would like someone with your expertise to assist with firm clients and their legal matters. However, in most cases, for economic reasons, most firms would rather hire a mid-level or senior-level associate rather than an of counsel. Although you may have an easier time in some cases than partners to move firms because your salary expectations are probably lower than those of partners, it still may be a difficult road.

Partners
A partner with significant portable business can usually move to any region of the country or any law firm of his/her choice. He/She is a commodity. And even if a firm is not looking for that partner’s particular practice area, if he/she can start a practice, in cases where there is synergy with the rest of the firm, the firm will welcome the partner and the business with open arms.

When a partner does not have portable business, there are a few situations where the partner can move firms: (1) the partner has been very successful over his/her career and has established an outstanding reputation in the legal community, and the firm would like to start a practice or would like a prestigious partner on its roster; (2) the partner has shown in the past that he/she has been able to build a book of business, but because of a host of reasons, he/she does not have much portable business at the moment, but still has potential to grow his/her business; or (3) the partner has a specific expertise or knowledge in an area of the law that the new law firm would like to acquire to assist with its existing client base. Generally speaking, beyond these situations, it is going to be very difficult for a partner to move without portable business. Today, most law firms are trying to stay lean and hire partners who are able to bring business.

If you are a good attorney and have portable business, you will be in the driver’s seat of your career. If you are a good attorney and do not develop business as a senior associate, of counsel, or partner, you still have some options. It’s just a matter of finding the right fit. In all cases, you should consult a legal recruiter to help you transition from your current firm. The legal recruiter may be able to present you to his/her clients in the best light possible and therefore open the door where normally it may be closed.