Can clients come too?
QUESTION
I'm a partner at a national firm, but have just been offered a great opportunity to move to a US firm and build a practice from scratch. The only problem is that it will mean the pressure is all on me to succeed. What should I do to keep my existing client base happy and move with a following, without getting into difficulties with restrictive covenants? And what is the best way of building a new practice?
ANSWER 1
You must ascertain if you really do have a following. Ask a few key and trusted clients how they would feel if you moved on and test your choice of destination with them. Assuming they are positive about the change (if not, reconsider your options), you will have brought them into your confidence and they are even more likely to support you when you move.
If you have signed a contract/partnership agreement that includes restrictive covenants, they are binding apart from in unusual circumstances. You can only extricate yourself via negotiation. You will have a chance of success if you can bring commercial pressure on your current firm. Try to marshal your clients to indicate to your current firm that it has a greater chance of continuing to be instructed by them if they release you from your covenants.
Nick Woolf is a partner at Sainty Hird & Partners
ANSWER 2
In relation to your existing client base, you need to understand fully the types of covenants you have. It may be that you are prohibited from approaching clients for a certain period of time and you will need to adhere to this.
Of course, depending on the wording of the covenants and assuming you do have a personal relationship, it may be that they can approach you with instructions.
Building a new practice is likely to be challenging but an established US firm may have a bigger profile than your current firm and you can use this to help win new pitches and raise your own profile. Furthermore, it is likely that, if your practice area is one that the firm wants to develop, it may already have existing clients to advise and again this will help you build the new practice.
Alberto Giovino is a consultant at Shilton Sharpe Quarry
ANSWER 3
You're right, the pressure will be on you as your new firm will, not unreasonably, expect you to bring in new clients and to bill those clients by a decent multiple of what you're earning.
If you have restrictive covenants, they will be enforceable but if you leave your current place amicably and the new firm is a very different proposition, you may be able to negotiate a deal on the clients that everyone agrees are 'yours'.
The key to assuring that your clients will instruct you in your new place is to make sure your value proposition is identical or better to the one you are leaving, so your business plan should include your growth plan for the team as well as all the financials. Your business plan will be key in assisting you to build a new practice, so spend a good amount of time on it and get the help of an experienced recruiter to do it.
Mark Brandon is a partner at recruitment consultancy First Counsel
Readers' comments (1)
Anonymous | 19-Sep-2008 6:45 pm
Transition Planning
Moving a practice, particularly to another country, is a challenging undertaking. Given that client loyalties generally accrue to the relationship partner rather than the firm, I'd be surprised if your key clients resisted following you to your new destination. But have you thought out this transition beyond rainmaking? For instance, how will you manage fears and expectations and those of friends and family? Have you taken stock of your successes and failures? You can’t know where you’re going if you don’t know where you’ve been, as the saying goes.
Understanding what it is that brings about a successful result for you will give you the confidence to try new waters and alleviate anxiety. Conversely, finding your weak spots will show you what needs work to avoid making the same mistakes in a different milieu. Do you need help identifying your strengths and weaknesses? Try eliciting feedback from those who know you well.
Second, evaluate your skills. List them according to categories such as organizational, problem-solving, managerial, and oral and written communications. Note the environments in which these skills are deployed—at home, at work, in your community, etc. Many, if not most, skills are transferable. Third, build a transition plan. Putting thoughts into words and words into actions will help you manage your anxiety. How much do you know about your target destination? Firm culture? Where can you go to learn more? Are there business or behavioral competencies you need to acquire to make it work? Think about your future and imagine what you want it to look like. How will that future look in five and ten years? With a little introspection, you can transition successfully.
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