Guidance for Lateral Lawyers

As a seasoned coach, I’ve had the privilege of working with numerous lawyers navigating lateral moves. Even the most accomplished and well-established attorneys may feel intimidated by the practical and emotional intricacies of such a transition. For those who have spent their entire careers at one law firm or have been a partner at a single firm, it can be challenging to fully grasp how different one law firm can be from another.

Many law firms are opaque, even to their own lawyers, regarding partnership decisions and compensation. This lack of transparency can make it exceedingly difficult for attorneys to gain the perspective they need to understand their current situation, let alone anticipate what a lateral move might entail. As a result, I've seen many talented lawyers struggle to make informed decisions about their professional futures.

Through working with countless lawyers on their lateral transitions, I have developed a broader perspective. This enables me to help clients clarify the relevant issues and get the information they need to make informed decisions. Below are some of my observations from working with clients who moved laterally between AM Law firms, from a small to a larger firm or vice versa, and from government to a law firm.

As a professional coach, I have no agenda beyond wanting my clients to have happy, successful careers—whatever that means to each person. I hope this information will be helpful as you explore your professional options.

The guidance below is divided into three sections:

1.    Seven Factors Lawyers Should Consider for a Lateral Move

2.    Questions to Ask the Prospective New Firm if You Are Considering a Lateral Move

3.    Q&A Regarding Lateral Moves for Law Firm Associates

Seven Factors Lawyers Should Consider for a Lateral Move

 
1. Don’t be seduced by the word partner.

More than 50% of lawyers with the title partner are actually income partners or contract partners. Be cautious in thinking, “Well, at least they are making me a partner.” Many smaller firms exploit “partners” by offering compensation packages that neither give a real share of the business nor the security and predictability of regular employment. Even with big law firms, one should be cautious about the lure of the title “partner.”  You may be tempted to think that a partnership offer is automatically better than an offer to bring you in as a counsel, but that is not necessarily the case. The quality of the firm, the details of the compensation structure and the prospects of becoming an equity partner (if that is what you want) may be more important in the long run.

The term “contract partner” is not clearly established and can mean different things. Sometimes it is used interchangeably with income partner (a “partner” who receives a salary rather than a share of ownership interest), but it can also refer to a lawyer whose compensation is determined by billings, revenue, originations, etc., without full ownership rights and responsibilities. It’s crucial to delve into the details of any offer or prospective offer.

 2. How valuable is the name of your firm as a platform for attracting the clients you want?

Often, a firm will recruit you to strengthen their reputation and capacity in your practice area. If the firm you are leaving is in the top-tier for your practice area and the new firm is not, you might find it harder to attract your desired clients, at least initially. This doesn’t necessarily mean you should turn down the offer, but these factors should be considered as you explore your options and negotiate.

 3. Many big law firms will guarantee your income for 2 years.

This is reasonable if you are moving from the government and need time to build your book of business or if you are well established at your current firm and they want to cushion the disruption of your move.

 4. No lateral move is permanent unless you want it to be.

The biggest fear for lawyers considering a lateral move is that it will prove to be a mistake and they will be stuck in a worse situation. The first lateral move is the most difficult because the process is new and you are leaving a place that is familiar and which you already know how to navigate.  However, if the new firm is problematic, you can keep looking. For most lawyers, a second lateral move is much easier than the first.

5. Legal recruiters can be wonderful or terrible, just like any other professional.

The best recruiters are invaluable, helping you get the necessary information and present yourself to best advantage.  Most recruiters are well-intentioned and genuinely want the lateral move to be a good fit.  However, I have heard stories from clients about recruiters who seem to be the worst of the stereotypical salesman: deceptive, pushy and unhelpful. If you have a bad experience with a recruiter, keep an open mind when talking to others.  In addition to providing access to opportunities, legal recruiters can be full of useful information about specific law firms, trends in the legal industry, etc. So, it is often worthwhile to take the time to talk with them.

6.  You don’t have to answer all the recruiter’s questions or all the items on the Lateral Partner Questionnaires.

When you are recruited as a partner, the information they ask for is extensive and time-consuming to track down. The questions often go into detail regarding client billings, collections, your personal compensation, the way your firm allocates origination and management credit, etc. If you are not comfortable answering some of the questions because you feel that they are contrary to your fiduciary duty to your clients or your current firm, it is completely legitimate to refuse to answer certain items or consolidate categories of information. While the prospective new firm does have a legitimate need for financial and client information, I have seen clients push back on inappropriate or inapplicable questions. While it may annoy some recruiters, law firms respect valid reasons for withholding certain information and still extend strong partnership offers.

7. Your current law firm might try to keep you.

Once you announce your departure, your current firm may counteroffer with a promotion, revised compensation or other incentives.  You might think partnership doesn’t work that way. There are systems, policies, procedures…. You may believe that if they wanted to keep you, they would have made you a partner already, or been more responsive when you raised concerns.  Not necessarily.  One of my clients at a major international law firm jumped through all the hoops, did everything that was expected of him and they still didn’t put him up for partner. So, he found another job and then the firm made him a partner. Not only that, but several of the partners who called to congratulate him said they had the same experience. I’ve heard similar stories from lawyers at other firms. Of course, you should never lie or say you are leaving unless you really mean it. However, many firms only act when faced with losing a valuable team member. If you prefer to stay at your current firm, consider timing your resignation accordingly.

Questions to Ask the Prospective New Firm if You Are Considering a Lateral Move

 As you meet with firms and explore options, it is important to recognize that this is a process. Some of topics are delicate, and you might not get clear answers until you have had multiple meetings with key decision-makers and all parties are deeply invested in you joining the firm. 

1.  Why does the firm want you and your practice area?

How does your niche fit in with the firm? What are the synergies?  You would think that big law firms—with all of their resources and the significant cost of recruiting and onboarding new partners—would be excellent at ensuring that the new partner’s niche fits well with the firm’s existing practice. This is shockingly inaccurate. Firms often recruit based on assumptions that turn out to be incorrect. Ask the firm their reasoning for recruiting someone with your expertise and do your own due diligence to ensure compatibility.

2.  What is the compensation structure?

The compensation structure varies a lot from firm to firm and is deeply important not only because of your financial needs and goals, but also because of the incentives and the culture it fosters. Is the firm’s compensation system more advantageous to those who do the billable work or those who bring in the work?  If the compensation system is weighted in favor of the billing attorney and you were recruited because you are great at business development, the math is unlikely to work out in your favor. Similarly, if the compensation structure is heavily weighted in favor of originations, you may find a very siloed law firm where few partners truly help one another or collaborate. Don’t underestimate the downstream effect that the compensation structure has on law firm culture.

3. What is the path to equity partnership?

Most law firms will not bring lateral lawyers in as equity partners.  (Note that an “equity partnership” role at an eat-what-you-kill style law firm is quite different from what you can expect from a more traditional firm.)  If your goal is to become an equity partner, you should try to learn as specifically as possible the path to equity partnership. Firms usually resist committing to clear answers around partnership decisions (equity or otherwise). Nevertheless, if you ask the right questions, you will most likely get a decent understanding of how such decisions are made at the firm. Ask about the percentage of non-equity partners who become equity partners within five years, the role of business development in the transition, and the average book of business and billables for recent equity partners.

4. What systems does the firm have for integrating laterals?

Support for lateral integration varies significantly among law firms. The firm and practice group leaders no-doubt have the best intentions regarding the kind of support they provide for lateral integration, but the reality may be different. Ask recent laterals about their experience and what help they received for transitioning clients and identifying potential collaborators within the firm. Typically, it will be your responsibility to reach out and develop those internal relationships. However, it makes a big difference when there is a staff person to help coordinate and a firm leader actively supporting the process.

5. Is there a partnership agreement?

If so, what is the structure? A surprising number of firms do not have a partnership agreement or have one that is deeply inadequate. For example, some “partnership agreements” do not include provisions to address partner departure, changes to the agreement, buyouts or other common issues.  If there is mandatory retirement, that’s important to know, especially for those further along in their careers. Although, you are unlikely to get all the details until you are close to completing negotiations, you should ask some preliminary questions to assess potential areas of concern and avoid wasting your time.

6. Does the law firm have a written strategic plan? 

Law firms are famously abysmal at strategy. Trying to get five partners, let alone hundreds or thousands, to agree on any sort of strategic plan is well-nigh impossible. Therefore, it is fair to assume that most strategic plans will be generic and relatively useless. So, you may wonder why you should bother asking about them. As President Eisenhower said, “Plans are nothing; but planning is everything.” I suggest inquiring into the following: Do they have a strategic plan? If so, how did it come about? Is it the result of significant time and effort from senior leadership? Who was involved in the planning process? Was it created by consultants and then signed off on without significant discussion? Or was it the outcome of rigorous debate? How is the strategic plan being used? Is there a system or plan in place to revise it over time?  Learning about what the law firm is (or is not) doing to plan for the future will provide insight regarding how the firm is managed and where it is heading. 

7.     Is the law firm open to you bringing associates/staff with you?

If so, how would that work?  Research and numerous anecdotal examples indicate that keeping legal teams together often leads to better results than when an individual lawyer joins a firm alone.  A good team is very hard to replicate. If you already have a solid team, it may be in your best interest as well as the firm’s to find out if they are open to you bringing along associates and other staff.

Q&A Regarding Lateral Moves for Law Firm Associates

Q: What is considered a lateral move for a lawyer?

A: In the legal profession, a lateral move usually means moving from one law firm to another, even if there is a title change from associate or counsel to partner. This differs from other professions where lateral means moving to a job with a similar title and responsibilities.


Q: How long should you stay at your law firm before moving to a new one? 

A: The general rule is to stay at a job for at least two years, but there are exceptions.  If you are so miserable that it interferes with your learning, productivity or relationships at the firm, you are probably better off elsewhere. If you are not getting meaningful legal work and developing your professional capabilities, then it behooves you to either address the issue or leave. Almost anything can be explained in a job interview with careful thought and practice.


Q: What is the best time to make a lateral move to a new law firm?

A: As an associate, the best time to make a lateral move is sometime between the 2nd and 6th years. During your first couple years, your firm is (hopefully) investing substantial time and effort into training you. After two years, other firms assume that you have learned the basics of your practice area and will therefore be able to add real value and integrate quickly into your new team.             

From the perspective of a new firm, 4th to 6th year lateral associates are an ideal investment because they generate high value work and require less supervision. Associates at this level are very capable lawyers and yet their billable rates are lower than partners. Consequently, in-house counsel are less likely to question their bills when associates at this level are staffed on a matter.           

As lawyers become more senior, moving as a lateral to a new firm becomes more complicated.  The more senior the lawyer, the more likely that the prospective new firm may wonder why they were not promoted to partner. If the attorney has their own clients, conflicts become an issue. If they do not have their own clients, the firm may doubt the lawyer’s prospects regarding business development. Another potential challenge is that for an associate or counsel to have a realistic shot at making partner in the new firm, they need to have enough time to develop relationships, bring in business and impress the right people before the partnership window closes. 


Q: As a big law associate, should I go to the highest ranked firm that will hire me?  

A: It depends on your goals.  Even for lawyers aiming for the top of their fields, factors like culture, internal politics, relationships, and firm reputation are crucial. It is also important to remember that not even the biggest and most prestigious firms are the top players in every practice area. For most big law practice areas, there are 3-10 law firms with the strongest reputations.  This is particularly true when you look at particular sub-specialties within your practice. More firms may be well known for their energy law practice, but fewer are well-known specifically for energy distribution, nuclear power projects, or green energy M&A work. Assuming the culture, personalities and relationships at a firm create an adequate foundation for your success, moving to a firm where you can get access to the most interesting, most complex, most cutting-edge work will lay the foundation for you to reach the top of your field.


Q: How can I convince a law firm to bring me in at a more senior level?

A: You should explain why your experience merits a higher designation. The number of years you have been employed as a lawyer will not be the key factor. What matters is the nature of the work you have done and the skills acquired during that time. Find out what skills and experience the firm expects for your desired level and frame your argument accordingly.


Q: What should I do if they offer to bring me in at a more junior level?

A: While it may feel insulting, it can be in an associate’s best interest to enter the new firm at a more junior level.  Even extremely smart and capable lawyers can flounder when the expectations of the new environment are out of step with what they were accustomed to in their old jobs. This is particularly common when moving from government, in-house or from a smaller firm. Entering at a more junior level allows you to “wow” partners with the knowledge and competencies you acquired at your previous job while catching up on any discrepancies between their expectations and your current skills. Making a lateral move at a more junior level can make the transition smoother and less stressful.