Unleashing the Powerhouse: Building a Talent Strategy Around Stand-Out Lawyers

Sarah Thompson Senior Marketer / Thomson Reuters Institute

The legal landscape is evolving rapidly, and clients are increasingly demanding exceptional value and service. 2023 Stand-out Talent research by Thomson Reuters Institute reveals a crucial truth: firms with stand-out lawyers capture 31% more client spend compared to those without. This begs the question: how can firms cultivate and retain this invaluable talent?

Join me on a journey to explore the secrets of stand-out lawyers and delve into building a talent strategy that empowers them. Buckle up, leaders and partners, for we're about to crack the code to unlocking your firm's true potential.

The state of your talent engine:

Before revving the engine, assess the current state of your talent pool through client feedback and internal reviews. Understand your headcount and budget allocation, identifying areas for efficient investment in talent development. Remember, stand-out lawyers aren't simply born, they're nurtured.

The stand-out spark: What makes them shine?

First, we must understand and unlock the secrets to what a Stand-out lawyer is and why we want to retain them, scout for them and nurture them. We surveyed 2,400 Thomson Reuters Stand-Out Lawyers from around the world — those nominated by their clients as being exemplars within the profession. So not only are stand-out lawyers important to their clients but they are particularly so to their firms as stand-out lawyers work 18% more billable hours and bring in 26% higher fees than the average partners in their firms, according to analysis of Thomson Reuters’ Financial Insights data.

Their key attributes often include:

• Technical brilliance: Deep legal knowledge and problem-solving skills.
• Client focus: Ability to understand and exceed client expectations.
• Business acumen: Strong understanding of the client's industry and business goals.
• Effective communication: Clear, concise, and persuasive communication skills.
• Collaboration: Ability to work seamlessly with teams and clients.
• Leadership: Taking initiative and inspiring others.

The following 5 sections of this article call-out the key topics covered in our latest 2023 Stellar Performance reports which will help you build a talent strategy for your stand-out performers.

The feedback loop: Client insights fuel stand-out performance

Stand-out lawyers aren't fortune tellers. They excel by understanding and exceeding client expectations. That's where client feedback becomes a superpower. Actively soliciting and acting upon client feedback allows you to not only identify strengths and the value the firm is delivering to clients but can also help to address areas for improvement and identify and attract new work or clients as a result.

Unfortunately, only about 27% of clients have been asked for feedback by their outside law firms with whom they work, showing there is lots of opportunity to stand-out from the crowd and be a true partner to your clients. Those that do have a formal client feedback program on average are receiving 34% of their clients’ external spend, compared to the baseline of 14%. Remember, feedback isn't a one-off event. Integrate it into your culture through regular surveys, client meetings, and informal interactions.

Collaboration: The glue that binds stand-out teams

In the legal landscape, individual brilliance is essential, but true success often hinges on collaboration. Stand-out lawyers aren't lone wolves; they're maestros who orchestrate the talents of diverse teams to achieve exceptional outcomes for clients. By being this conductor stand-out lawyers become stickier in the minds of clients, ultimately bringing the firm a higher share of wallet, and becoming the go-to source across a range of specializations and matters. Therefore, we see much higher matter originations and value of work billed, winning bigger matters which are likely to have a higher value than work that can be won by a single partner.

Here's how to foster a culture of collaboration within your firm:

• Break down silos: Encourage cross-practice and interdepartmental collaboration on projects. This fosters knowledge sharing and creates a holistic understanding of client needs.
• Technology as an enabler: Invest in collaboration tools like project management platforms, communication channels, and shared document systems. These tools facilitate seamless information exchange and real-time collaboration.
• Shared goals and vision: Align everyone around a common purpose and clearly communicate individual roles within the larger team. This fosters a sense of shared responsibility and ownership.
• Celebrate team wins: Recognize and reward collaborative successes, highlighting how individual contributions led to collective achievements.
• Promote open communication: Encourage transparency, active listening, and respectful dialogue within teams. This fosters trust and psychological safety, crucial for true collaboration.

Remember, collaboration isn't just about shared workspaces and tools; it's about fostering a mindset. By valuing diverse perspectives, encouraging open communication, and celebrating teamwork, you create an environment where stand-out lawyers can truly shine, together. Despite the strong correlation between collaboration and compensation, 69% of stand-out lawyers said they still faced barriers to collaboration. The top reason for failure to collaborate, they said, was a lack of incentives to do so. By nurturing a collaborative spirit, you empower your stand-out lawyers to achieve more than they ever could alone. Remember, the power of a team is always greater than the sum of its individual parts.

Engaging stand-out lawyers: Keeping your stars shining bright

Retaining stand-out lawyers requires more than just compensation (although that's important!).

Stand-out lawyers are at particular risk of leaving if they feel under-appreciated and under rewarded for their contributions to the firm. This year, the overall share of stand-out lawyers who said they were considering changing firms within the next five years — those considered a flight risk — was 21%. To counter this trend, law firms need to invest in leadership. As well as being strong drivers of overall satisfaction, firm strategy and leadership are crucial to avoiding top lawyer flight risk.

Here's how to keep them engaged and motivated:

• Challenge and growth: Offer opportunities for skill development, leadership roles, and participation in cutting-edge projects.
• Recognition and appreciation: Publicly acknowledge their achievements and contributions.
• Sense of purpose: Connect their work to the firm's broader mission and client impact.
• Work-life balance: Promote healthy boundaries and encourage them to unplug and recharge.

The engagement levels of a firms’ lawyers have a large impact on the success of their firms. In the view of stand-out lawyers, responsibility for those engagement levels lies squarely on the shoulders of firm leadership. These lawyers are looking for clarity, strategic direction, and leaders who are not afraid to show their concern and care on a personal level.

Lateral leaps: Strategic additions to the stand-out squad

Law firms invest heavily into finding the right partners, potential rainmakers that could fill a diverse hole or specialism. These hires bring the potential for growth and ultimately hopefully boost the firm's market share and client experience. We know from previous Stellar Performance research on average, lateral partners bring 22% of their books of business to their new firms — but that number can reach 100% or shrink to 0%, highlighting the importance of providing a well-orchestrated and effective on-boarding and integration process for new lateral hires.

Here's how to ensure they become part of your stand-out team:

• Targeted recruitment: Seek candidates with expertise that complements your existing talent pool and aligns with client needs.
• Onboarding excellence: Offer a structured onboarding process that fosters cultural integration and knowledge sharing.
• Mentorship and support: Pair them with established stand-out lawyers for guidance and support.
• Clear expectations and goals: Outline expectations and provide opportunities for them to contribute meaningfully.

It’s important not to underestimate the amount of time it takes a lateral to be fully up to speed on the inner workings of their new firm. But by investing in successful lateral integration, you can create a synergistic environment where stand-out talent thrives together.

Retaining stand-out associates: The future partners:

Investing in associates is crucial for building a sustainable pipeline of stand-out lawyers. However, while almost all stand-out associates say they are “satisfied” in their firms, about one-quarter of them say that partnership in their current firm is not their preferred career path. Another 50% are considering other career paths, from partnerships at other law firms to in-house positions.

The best way for firms to encourage that perspective to change is to move these associates’ current evaluation of their role from “satisfied” to “delighted.”

Drivers of associate engagement include:

• Mentorship and coaching: Provide opportunities for learning and growth.
• Meaningful work: Assign high-impact projects and responsibilities.
• Recognition and appreciation: Publicly acknowledge their achievements and contributions.
• Work-life balance: Promote healthy boundaries and respect personal time.
• Diversity and inclusion: Foster a welcoming and inclusive environment.
• Clear career path: Communicate advancement opportunities and expectations.

While not every associate is suited to becoming a partner, those who are nominated by clients as stand-outs are certainly promising candidates. Still the flight risk for these associates is high, so it must be proactively managed by firm leadership.

Building a culture of stand-out lawyers:

By focusing on these elements, you can cultivate a thriving ecosystem where stand-out lawyers flourish, driving client satisfaction, profitability, and a sustainable future for your firm. Our Advisory Services team will partner with your firm to guide, create and accelerate these strategic endeavors to improve future performance.

Remember, the journey to stand-out lawyers starts with you. Lead with vision, invest in your people, and unleash the incredible potential within your firm. The time to shine is now!