When looking for lateral partners to hire, law firms are giving more weight to candidates' business plans, especially those of government lawyers who are transitioning to private practice, according to law firm recruiters. That's what it means.
Such business plans often incorporate details such as the government candidate's networks and skills, and how they expect to turn their expertise into revenue during their first few years on the job.
Recruiters say business plans are becoming a bigger focus in employment negotiations between law firms and government candidates, and in some cases, they are more concerned about whether a candidate will ultimately be hired and for what role. It is said to be used as a “litmus test” for whether to join the company or for compensation.
“Some companies see this as a litmus test of someone's ability to generate business,” said Dan Binstock, a partner at Garrison, a Washington, D.C.-based search firm. “A good business plan must speak to the company in a persuasive way and substantively discuss current issues within the business area and how to best leverage one's expertise and networks. If a business plan is too basic, it can undermine the company's confidence in the person's ability to market the business at the partner level.
Mr. Binstock noted that for lawyers who leave government, unless they hold a senior position, “a business plan is pretty much mandatory when you go into a partner or even an attorney position.”
“In this market, offers, passes, equity-non-equity differentials or compensation amounts can be measured in millimeters,” Binstock said. “Time and time again, I have seen how a strong, thoughtful business plan can pay off.”
Amy Savage, chair of the government enforcement and regulation group at legal recruitment firm Lateral Link, echoed similar sentiments, noting that “being able to articulate a business plan is important” for partner-level candidates.
“It helps candidates align with the best possible platform for potential clients,” Savage said.
Law firms have been reviewing candidates' business plans for years, but now they're looking more closely at the plans and their substantiveness, recruiters say.
Lauren Drake, a partner at transatlantic legal recruitment firm McRae, said candidates' entire business plans are under “more intense scrutiny” than they were a few years ago.
“I would say it's becoming more and more important. Law firm partners are bringing up business plans a lot more in interviews,” Drake said.
Binstock said “a strong business plan minimizes uncertainty” for companies, especially when hiring lawyers from the government, who may not have a portable business at the time of hire. .
“The best lawyers do a good job of demonstrating their legal skills and converting those skills into revenue in a reasonably short period of time,” Binstock said. “A well-crafted business plan can make the difference between getting a job offer and a smooth acceptance.”
However, when a candidate submits a business plan depends on the situation. In the case of government candidates, hiring negotiations may begin sooner than it would take for lawyers to move from one firm to another.
Binstock said that for candidates joining from another law firm, the “first” business plan presented “could be taken as a partner saying, 'I'm looking for a job,' and it's not specific.” “This will be seen as a yellow flag by many employers.”
“The best business plans are tailored to the specific company and opportunity,” Binstock added.
This comes as recruiters and law firm practices say they have seen an increase in government lawyers seeking jobs from the Justice Department in recent weeks, especially in the midst of a presidential election year when government leadership can change. This is while the leader is reporting.
