Create a data-driven business plan. Employ a robust, data-based analysis that forms the business case for each lateral hire. Jennifer Johnson at Calibrate explained,
“It’s the leader’s job to bring data—however imperfect and incomplete—to planning decisions. You need to look deeply at data from your clients and your firm to build insights and ultimately generate the best business case for investment.”
Many firms believe that they already have such a system in place, but most of the plans we have reviewed are arguments, not analyses. Engage your financial and business development experts to collect and dissect both internal and market data to calculate anticipated return on investment for each proposed candidate. Consider factors such as expanding business opportunities, new offices, partner turnover and newly developed (or growing) practice or sector-focused groups. Sometimes an internal resource is the best (and easiest) option.
