1. daily updates at nlj.com The weekly Newspaper for The legal professioN monday, may 7, 2007
in focus
law firm recruiting
Marketing plans for laterals
leave.” Tom Lauricella, “Money-Manager Raid been heavily wooed should expect, upon
Customized plans give Sparks Court Fight,” Wall St. J., March 28, joining a new firm, to receive marketing dollars
valued partners a reason 2007, at C1. devoted to significantly increasing his or her
Sound familiar? The same is true for law value during his or her first year there.
to come—and stay. firms. Clients tend to follow their lawyers. Working with new laterals to develop
How about this past holiday season, when strategic, sophisticated marketing campaigns
By John Hellerman The Goldman Sachs Group Inc. reportedly enhances their likelihood of success—and
and Gary Klein paid more than $16.5 billion in bonuses? sends a clear message to other potential
special to the national law journal
how does a firm attract top lateral partners “Talent is the most precious commodity on laterals that the firm is dedicated to helping its
with large portable practices and at the same Wall Street; it’s what they sell, so it’s also what professionals expand their practices.
time retain its own rainmakers? The solution they have to pay for,” explained New York Law firms spend millions of dollars in
is the same for both—demonstrate to potential magazine when referring to the comparatively branding campaigns in an attempt to attract
and existing partners that the firm is focused on paltry $11 billion in bonuses Goldman paid and institutionalize clients. Down the hall,
their success. Use marketing plans as recruiting out in 2005. Duff McDonald, “Please, Sir, the recruiting department, operating on the
tools to attract talent and apply the plans once I Want Some More,” New York magazine, assumption that lawyers and their books of
they join. Wall Street clearly gets this. Dec. 5, 2005. business are portable, has little or no marketing
Just recently, Deutsche Bank A.G. hired At law firms, like all professional services support devoted to recruiting partners.
away a group of 16 money managers from organizations, talent is everything. But consider
the difference in how much firms spend A sellers’ market
Amvescap PLC, who together oversaw 20%
of Amvescap’s $465 billion in assets. The Wall branding themselves versus what they spend Free agency has created a strong sellers’
Street Journal commented, “the biggest risk to branding the powerful business platforms that market for laterals. Consider that The American
Amvescap is that clients will pull out their are their individual partners. Lawyer, an affiliate of The National Law Journal,
money.” The reason? “[I]nstitutional investors Firms with genuine respect for their recently reported that between October 2005
are unwilling to keep their money at a firm partners—and clients—never lose sight of the and October 2006, 2,429 partners at the 200
when the managers they’ve been working with fact that clients hire the lawyers they trust, most profitable U.S. law firms changed firms—
as opposed to law firms with letterheads they an average of 12 partners per firm!
recognize. To this end, firms likely to succeed This situation exists because clients control
John Hellerman is a partner at Hellerman Baretz in today’s fluid market are those that view the state of play. As long as clients agree,
Communications (www.hellermanbaretz.com). themselves as “brand marketers” rather than lawyers are free to move as often as they like.
The firm designs and executes strategic the “brand.” To some extent, the legal market has always
communications campaigns for law firms, Think of the way The Coca-Cola Co. operated this way. Time and again, in-house
consulting firms, financial services companies and markets Coke, Diet Coke, Sprite, Dasani—or counsel say they hire lawyers, not law firms.
their executive management teams. Gary Klein is how Apple Inc. creates marketing campaigns To avoid this attrition and client instability,
the founder and president of Klein Landau & for iPod, iTunes and the Mac. Just as General firms must recognize where client loyalty lies.
Romm (www.klrsearch.com), a legal search firm Motors Corp. bestows a hefty budget to its For law firms, the key to obtaining and keeping
with offices in New York and Washington. premier brand, Cadillac, the lateral who has top clients is keeping their lawyers happy.