An established practice, an impressive track record and the prospect of substantial new revenue. What could possibly go wrong?
For a law firm considering a significant lateral appointment, the attraction of an established partner can be considerable. Here is an individual with a strong reputation, an impressive track record and, apparently, a substantial following of clients. The opportunity to accelerate growth without spending years developing a practice from scratch is understandably appealing.
Yet an important question is sometimes overlooked: what, precisely, is the firm acquiring?
A partner's historical turnover is one thing. The ability to reproduce that performance in a different environment is quite another.
The distinction matters because a senior appointment is not simply a recruitment decision. It is a commercial investment, involving expectations, relationships and risks that deserve careful consideration on all sides.
The difference between revenue and a transferable practice
A partner may have generated £1 million in annual fees, but that figure alone tells us relatively little about the commercial value of the practice to a prospective employer.
How much of that revenue is attributable to the partner personally? How much depends on the reputation, resources and wider client relationships of the existing firm? Which clients have an established relationship with the individual, and which have a broader institutional relationship with the organisation?
These are not reasons to doubt a successful partner's achievements. They are questions that need to be answered before those achievements are used to support a commercial proposition.
There is also a distinction between turnover and profitability. A practice generating substantial revenue may require significant support, involve demanding clients or depend on a particular structure of associate and partner time. Its contribution to profit may therefore be very different from the headline figure.
None of this diminishes the value of a genuinely successful practice. It simply reinforces the importance of understanding what lies behind the numbers.
Why is the partner moving?
The reasons behind a proposed move can be just as revealing as the financial information.
A partner may be attracted by the opportunity to build a department, enter a new market or work within a more ambitious business. They may want greater autonomy, a clearer route to equity or the support needed to develop an existing practice.
Alternatively, dissatisfaction with the current firm may be the principal motivation.
These circumstances are not interchangeable.
Someone moving towards a clearly defined opportunity may have a different outlook from someone whose primary objective is to leave an unsatisfactory situation. Both may have perfectly legitimate reasons to move, but understanding their motivations helps establish whether the proposed appointment makes sense.
It is also important to establish what the individual expects from the new firm.
A partner may be promised greater freedom, investment in their practice or a more influential role. If those expectations are not properly understood and agreed, even an appointment that initially appears attractive can become difficult.
The receiving firm has its own expectations, of course. The prospective partner needs an equally clear understanding of what will be required, how success will be assessed and what support will be available.
A successful appointment begins with an honest conversation about both sides of the proposition.
The receiving firm's responsibilities
It is tempting to concentrate on the candidate and assume that the firm's role is simply to make an attractive offer.
In reality, the firm must also examine its own readiness.
Does it have the infrastructure to support the practice? Are there complementary teams and services that can help develop client relationships? Is there a credible business case for the appointment? Have the existing partners considered how the new arrival will fit into the department and the wider business?
These questions become particularly important when the appointment is intended to support expansion.
Recruiting an established partner into a firm that lacks the necessary platform may create difficulties that no amount of individual talent can entirely overcome. Conversely, a well-prepared firm can provide the conditions in which an excellent practitioner develops an even more successful business.
The appointment should therefore be considered in the context of the firm's wider strategy, rather than as an isolated opportunity to recruit an impressive individual.
The human dimension
There is another aspect of senior recruitment that can be lost when attention focuses too heavily on financial projections.
A partner contemplating a move is making a significant personal and professional decision. They may be leaving colleagues with whom they have worked for many years, clients with whom they have developed trusted relationships and a position they have spent a considerable time building.
The prospective employer is also making a commitment. Existing partners may have to accommodate a new colleague, invest in their practice and adapt their plans to reflect the appointment.
Both parties deserve a clear understanding of what they are agreeing to.
That requires discretion, realistic expectations and the willingness to address difficult questions before they become problems.
It also requires recognising that an appointment which looks attractive on paper may not necessarily be right for either party.
There is no virtue in completing a recruitment exercise simply because the opportunity exists. The objective should be a sound, sustainable appointment that benefits the individual and the firm.
What does success actually look like?
A successful lateral hire should ultimately be judged by more than the circumstances of the appointment.
Did the partner establish a sustainable practice? Did the firm achieve the commercial objectives that justified the investment? Were client relationships strengthened? Did the appointment contribute to the development of the wider team?
The answers may take time to emerge. Expectations should therefore be realistic, and success should be assessed against a properly considered business case rather than an arbitrary short-term target.
None of this means that firms should avoid ambitious appointments. On the contrary, the right lateral hire can transform a practice, open up new markets and create opportunities that would otherwise take years to develop.
But ambition is best served by preparation.
The most effective firms understand that identifying an impressive individual is only one part of the process. They also invest time in understanding the practice, testing the assumptions behind the opportunity and establishing whether the conditions for success genuinely exist.
The question worth asking
When considering a senior lateral appointment, the most useful starting point is not simply, "How much business does this partner generate?"
It is a more fundamental question:
What makes this practice successful today, and what gives us confidence that it can succeed here?
Answering that question requires commercial judgement, a detailed understanding of the legal market and an appreciation of the people involved.
At VG Charles & Co, we believe that these considerations should sit at the heart of senior legal recruitment. An appointment should make sense not only when the offer is accepted, but in the context of the firm's longer-term ambitions and the individual's professional future.
Ultimately, the objective is not merely to recruit a successful partner. It is to create the conditions in which that success can continue.
The Monday Briefing
The Monday Briefing is VG Charles & Co's regular exploration of the issues shaping senior legal recruitment, law firm strategy and the people behind important professional decisions.
Tony Tomkins is the founder and MD of VG CHARLES&CO a firm he established after a successful career at the bar. He has been involved in multiple law firm mergers and team moves throughout the UK.