by Patrick J. McKenna

Lateral hires that stay.

What the heck we say, lawyers come, lawyers leave. Ha! Don't we wish it was that simple?

Most law firms, taking advantage of the new mobility of senior lawyers to fulfill firm business strategies, find that the investment of precious time, money and cultural equity in the acquisition of new talent can quickly turn sour. Too many managing partners face a devastatingly high attrition rate among lateral hires. And so few know what to do about it.

Let's face it: it is disruptive, at best, to introduce new capabilities and personalities to the firm. With each addition, we think it complicates our communications requirements arithmetically, when in fact our requirements for communication actually grow exponentially. Industrial psychologists tell us that the addition of one new member requires that the entire team regroup and rebond, finding new ways of working and ultimately recreating their dynamics and working style.

It takes time and effort to integrate a new team member. In the absence of that effort, the new member may (and indeed, often does) flounder, become isolated, create conflict or worse.

While it may be acceptable to churn associates through in order to sort the wheat from the chaff, most firms can't afford the internal and external impact of senior lawyers coming and going with frequency.

Your firm is special. It has it's own unique culture, systems, strategies, and ways of doing things. Your partners take pride in the fact that their firm is different and they have learned the means to convey that difference in discussions with any new lateral candidate. The recruiting dance with potential senior hires has become something halfway between rush week and sales pitch. You want to convey how successful and unique your firm is while grilling the candidate for the bitter truth about themselves, their clients and their reasons for moving. At some point, you reach a comfort level and the commitment is made.

While it may seem the effort ends there, it is truly only the beginning. As good talent becomes harder to find and increasingly harder to retain, your internal processes for orientation and integration - how you welcome these valuable newcomers to your practice, becomes absolutely critical.

Most professionals never leave a firm over just money, says Patricia Milligan, managing director at Towers Perrin, an international recruiting firm. Correspondingly, money is not the ultimate retention tool. The type of professionals you attract have lots of options in life. You are selecting professionals who are intellectually curious and more demanding of their new firms.

Ms. Milligan's experience is confirmed in spades by a recent study conducted by attorney search consultants Major, Hagen & Africa. In their survey of 1200 laterally hired partners at 253 law firms nationwide they codified the factors that make laterals satisfied with their new firms. These laterals were asked to rank how effectively their new firms worked to integrate them into the culture. Alarmingly, of the six firms cited as examples of "where new laterals felt best integrated," lawyers with only two of the six rated their firms a 4 on a 5 (very effective) on the point scale. Such a rating, if it follows similar survey indicators, would indicate that these laterals are neither displeased, nor are they overly pleased. The remaining four of the six best firms scored only a 3 out of 5. One wonders what the remaining firms are doing (or frankly, not doing) to rate such a dismal performance score.

It may be illuminating to take a look at one of the new breed of competitors that many law firms now face and will be continuing to confront -- accounting firm Ernst & Young.

Ernst & Young employs 27,000 people in the United States alone and recruits upward of 5000 people a year. One of the firms own internal studies showed that new hires who experience a thorough orientation and integration process are twice as likely to remain with the firm longer than two years. Last year, the firm created a new Office of Retention and hired its first national director of orientation. Along with its counterparts, Ernst is scrambling to show new laterals, many of whom are lawyers, that it can be a very rewarding environment in which to practice.

Starting dates for new hires are limited to a maximum per month, so that professionals can be immediately immersed into the firm. s three-day orientation program, which includes technology training, as well as segments on firm history and diversity to showcase the firm's culture. The new hire immediately gets a fully loaded computer and access to the firm intranet. On-line instruction replaces any need for onerous policy manuals, and all of the firm's intellectual know-how is now available to the new professional. All new hires are also assigned a peer advisor who is compensated with an extra bonus for the time and attention they invest in providing hands-on orientation and coaching to the individual.

Ernst & Young's system is in stark contrast to what we suspect is all too often the common standard of effort for new lateral integration in most law firms -- show them their office, procedures for keeping time sheets, introduce them to that individual who will be providing administrative assistance, shake their hand and tell them that we will see them again at performance review time.

The greatest havoc comes when a firm is unable to integrate new lawyers into the culture of the firm, claims Robert M. Dell, managing partner at Latham & Watkins. But, it doesn't have to be that way. After all, you're not just hiring a warm body with a client list. In most cases you're adopting a new partner, or someone you expect has the potential to become a partner, into your family. With a little thought and attention you can take steps to ensure that these new laterals don't take a good look behind the theater curtains and hightail it back onto the open market.

A FEW INITIATIVES TO HELP INTEGRATE SENIOR LATERALS

Manage First Impressions

Conducting some form of orientation (and integration) activity every three months and expecting everyone who came on-board during that time to act as if they were brand new, doesn't work. First impressions are critical. Design an orientation program that gives information at the moment it is needed -- when they arrive. Remember to introduce the firm to the lawyers and the lawyer to the firm.

• One firm we know of greets every new professional by having their photo taken, affixing it to a large sheet of paper, with the personal answers to two questions (giving details) in the new lawyers own words to: my most gratifying personal achievement and my most important professional transaction. The sheet is then posted on the wall in the firm's lounge.
• Mindful of the misperceptions that can grow across the miles, one western U.S. firm insists that new lawyers in each office travel to the other offices of the firm within their first month in order to meet, get to know, and develop collaborative working relationships with their fellow lawyersworking in the same areas of practice.
• A simple memo from the managing partner welcoming new professionals and sharing pertinent details (where they came from, what they do, their credentials, new office location, secretarial assignment, etc.) distributed on the day of their arrival can do wonders. Suddenly everyone in the firm knows enough to say hello and welcome.

Give Them Support -- Before They Ask

What do these new professionals require? A clear understanding of firm expectations, introductions to specific professionals that can support their aspirations, training on the equipment and systems they may need, a tour of the facilities, etc. Who is it in the firm who is prepared to clear their calendar and invest the time necessary to make them feel welcome? How will these individuals be compensated?

• David Laney collects practice groups. With 340 attorneys, his Dallas-based Jenkens & Gilchrist has been the fastest-growing large law firm in the U.S. over the past three years, as a result of the firm's shrewd acquisition of new practice groups. He tells laterals, Before you come here I want you to draft a five-year plan of where you want to take your practice. Dream big and pretend resources are not an issue.
• The executive director at one 200-lawyer firm invested in a staff coordinator whose task it is to spend one-on-one time with new hires during their first days in the office. She trains them on the telephone system, explains firm resources, shows them how to access the computer network, makes introductions to staff members with whom the partner will interact, talks through office kitchen protocol and answers the myriad of seemingly trivial questions no one would wish to ask the lawyer in the next office.

Make Them Feel Valued

When firms invest significantly in providing quality internal training programs, people not only get the skills they need, they get the clear message that the firm cares about their professional development and is investing in them as individuals.

• We are told by one Managing Partner that It is the quality of the client assignments and the quality of the people at the firm that often tips the balance between whether a professional stays or leaves. In their firm they hold a special meeting on the first morning of the lateral's arrival at the firm to strategize with the newcomer about which of the existing client matters to have the newcomer get involved in and which of the firm's clients might benefit from an introduction to the lateral. Any discussion as to which of the lateral's clients could be cross-sold is held in abeyance until the new lawyer develops some sense of trust from having become integrated into the work with existing clients of the firm.
• Golden handcuffs are not completely out of style. As part of its retention program, Price Waterhouse has an incentive that provides for the distribution of shares based on performance. These shares vest over a three-year period. They say they want to reward people who stay.
• One firm conducts a two-hour interview with every new hire, following their initial month at the firm, to specifically request of that individual their detailed observations of what (they have seen or experienced) in the firm that could be improved. This firm recognizes that new hires often come to them having grown up as a professional somewhere else and bring with them knowledge and experience that could benefit their new firm.
• Sometimes new hires bring experience that can be immediately applied to the running of the firm. Don't wait. Include them in the technology committee or associate recruitment committee if they have the interest. Their experiences in a different environment can often provide a shot of new energy for lackluster groups.

Provide an Immersion Experience

Orientation systems that steep the newcomer in the personalities and culture of their new firm build career-long relationships that support success in their new environment. Think bonding. Think teamwork.

• Imagine, rather than the usually stark-bare corridors of many firms, walking down one where on every wall there was a gallery of 11-by-14 black-and-white, attractively framed photos with the academic degrees of every professional in the firm.
• One firm goes so far as to run a program welcoming spouses. As one lateral tells it, Loyalty is a funny thing. It never comes within the same envelope as my draw cheque. But it can be nurtured to the extent that you take an active interest in the members of my family. So, if you are truly interested in building my loyalty to the firm, then what have you done lately to make my significant other feel they're part of the family? Have you gotten them involved in any firm functions, helped them get integrated into any important community networks, found a way to promote their indivdual business or career interests? Just remember, the degree to which my spouse loves the firm has a profound impact over how encouraging she or he is toward enduring my long hours, and ultimately how I feel about the firm.
• Who might take responsibility for organizing lunches and dinners for the new lateral hire? Don't leave it to individual initiative. Someone -- preferably the managing partner or practice group leader -- should take it upon themselves to create regular social occasions for the new partner or senior associate to develop personal as well as professional ties with your firm.

Communicate, Communicate, Communicate

Internal communication is critical for a myriad of reasons. Studies show that firms that take internal communications seriously, tend to do a far better job of retention.

• One New York firm conducts an annual internal survey of partners, associates and support staff, to give them a voice to share their feelings, offer constructive ideas or vent concerns. The benefit of this survey is that the firm conducts a two-way feedback process to assess the results, celebrate strengths and get constructive suggestions for remedial action. The real value of the survey is that it is annual. The firm as a whole can contiually measure their progress. And, the kicker is that results are shared with absolutely everyone. Surveys have more value than just taking the pulse of the firm; they can be used to promote constructive change.
• Lucky enough to have a managing partner with on-air presence and a broadcast-quality voice? One mid-western firm begins each week with a good-morning voice-mail message from the Managing Partner introducing new people, announcing special achievements, and discussing firm news and developments.
• E-mail and hard copy internal newsletters are full of wonderful cultural tips for the new arrival.

IT'S YOUR INVESTMENT TO MANAGE

If you believe that what a professional firm sells is people and skill, then making people want to stay is a very good business strategy. It makes sense to bring in good people, help them succeed more then they might if they were practicing somewhere else, and invest some time in making them part of the fabric of the firm. Too often, when a new lawyer fails to make it in your firm, it's because your firm failed the lawyer.

Newcomers deserve your support. It only works to the firm's advantage to have them settled in and thriving as soon as possible. Help them understand how they can best contribute to your firm's success and then make sure everyone in the firm is contributing to theirs.

It only makes sense, having made the initial investment, that you work hard to guard the long term success of this, your firm's greatest strategic venture -- people.

Merrilyn Astin Tarlton is an adjunct professor at the University of Denver College of Law and teaches law firm leadership programs at the Center for Creative Leadership. She can be found at onlyhuman@compuserve.com.

SIDEBAR

Excerpted from Lateral Partner Satisfaction: Who Has It, How They Got It, and How to Enhance It, a survey authored by Jonathan Lindsey and June Eichbaum, principals and co-founders of the New York office of Major, Hagen & Africa.

THE LATERAL'S ROLE IN ENHANCING SATISFACTION

As the old saying goes, It takes two to tango. While law firms work on the critical management challenge of integrating laterals and enhancing their satisfaction, laterals must also take shared responsibility for achieving those same goals.

Some specific measures are obvious, other perhaps less so:

• Treat your new partners as you would new clients. Make an effort, get to know them, try to bond, and give them comfort that you are a professional to whom they can entrust important matters.
• If you come to your new firm as part of a group, make a concerted effort to reach out beyond the comfortable circle of familiar faces. Try to bring other lawyers into your matters and talk to your practice group leaders and others about how to best do so.
• Look at firm social occasions as an opportunity rather than a burden. While you are not there to hand out business cards, it is a chance to make new acquaintances and to discover commonalities with new colleagues that go beyond business.
• Recognize those who have come before you in building the firm and its existing client base. While you needn't kiss the ring, it is helpful to make clear that you respect what they have done and will look to them for guidance. One goal should be to help them not feel threatened in any way by your arrival -- including the obvious fact that you will respect their relations with their existing clients. (Some lawyers, particularly those who have never moved laterally, may have some residual distrust of anyone who has taken clients from one firm to another, and may have lingering concerns that one day you could take their clients to yet another firm.)