In The Corner Office, we ask Managing Partners at law firms across Central and Eastern Europe about their backgrounds, strategies, and responsibilities. This time around we turn our attention to setting up new practices and ask: When launching a new practice, what is your go-to strategy – do you look at internal team members to spearhead it, or are you more likely to turn to lateral hires? Why?
Irena Georgieva, PPG Lawyers, Bulgaria: As PPG Lawyers is a boutique law firm focused on regulatory matters we primarily work with high-level experts in specific fields. Typically, these are members of our team who possess expertise in multiple areas, such as personal data protection, cybersecurity, AI, or, for example, competition law, consumer protection, and public procurement. We also maintain a network of external consultants with specialized knowledge in areas that are less frequently requested by our clients. However, we are prepared with trusted professionals who are familiar to us and whom we rely on.
For this reason, my first preference is to assign someone from our team if the new practice area aligns with their expertise. If that’s not feasible, I would turn to our Of Counsels. Only as a third option, and after a thorough market analysis and assessment of needs, would I consider hiring new people.
We promise our clients a level of expertise well above the industry average in the specific areas we consult on and ensuring that a new hire is fully prepared to take on a client is becoming an increasingly challenging task. Therefore, we are cautious in bringing on new talent until we are confident in their capabilities.
Lukas Michalik, Ments, Slovakia: When launching a new practice, our strategy at Ments is to primarily turn to lateral hires. The main logic is that spearheading a practice requires not only subject matter expertise but also proven experience in running a practice and managing a client portfolio. Internal team members, while highly skilled, often lack the experience needed to lead a new practice from the outset or are preoccupied with other practice areas.
Lateral hires bring a significant advantage in that they typically come with established client relationships, which can immediately benefit the new practice. This approach helps ensure that the practice gains momentum quickly and contributes to the firm’s growth from day one. Additionally, lateral hires often have industry insight and networks that provide fresh opportunities for expansion, making them more likely to enhance our firm’s turnover possibilities. This combined value of leadership experience and client acquisition makes lateral hires the preferred choice for Ments when launching a new practice.
We have just opened a new dispute resolution practice group through the lateral hire of a new team from another law firm. We thus put our hypothesis to test – ask me in one or two years, how it went.
Kostadin Sirleshtov, CMS, Bulgaria: Usually, the official launching of a new practice is preceded by actual work on such matters provided by other practice groups. In such cases, we would always go for internal candidates for the job and promote them. This is what we did for the recent employment sub-team and the expansion of our real estate team.
There are also situations where you need to start a new practice group from scratch and the current team lacks sufficient skills and experience. This is when we source externally. A few years back we had to establish our tax team and given the limited experience that the current team had, we went for a lateral hire.
So far, we have not regretted either of these decisions.
Mykola Stetsenko, Avellum, Ukraine: At Avellum we always begin by evaluating our internal team members. Our firm is deeply committed to fostering growth from within, and we believe in creating opportunities for our existing lawyers to take on leadership roles. When launching a new practice, we see it as an ideal platform to develop and challenge talented individuals who have demonstrated the potential to step up.
This approach aligns with our long-term strategy of nurturing future Partners from within our ranks. In fact, when a new practice area shows significant potential for growth, it can create a strong case for an internal team member to eventually rise to partnership. By doing so, we ensure continuity in our firm’s culture and values, as those promoted have a deep understanding of our ethos and operational standards.
That said, in cases where specific expertise or market needs are required that we do not possess internally, we are open to lateral hires. But our priority remains to empower our own people to grow, as they are already integrated into our firm’s vision and are often best positioned to lead new initiatives with a sense of loyalty and commitment.
Ivana Ruzicic, PR Legal, Serbia: When launching a new practice, our go-to strategy is to prioritize our existing team members. We firmly believe in supporting organic growth and development within our firm. By empowering our current colleagues to expand their skills and interests, we not only enhance their professional journeys but also enrich the value of our services.
Our approach fosters a culture of continuous learning and improvement. We encourage team members to pursue advanced training, explore new areas of law, and take on leadership roles in emerging practices. This cultivates a sense of ownership and commitment among staff and ensures that our clients benefit from a team that is both knowledgeable and passionate about their work.
Clients recognize and appreciate this dedication, as it translates into tailored, high-quality legal services that meet their diverse needs. While lateral hires can bring fresh perspectives, our priority remains on nurturing the talent we have. By investing in our team’s growth, we build a resilient and adaptive practice that is well-positioned for the future.
Pal Jalsovszky, Jalsovszky, Hungary: Choosing the right candidate from an internal pool would, obviously, be the optimal solution. But it rather works the other way around. We realize that one of our senior lawyers has gained a special expertise in a given field and then we build the new practice line around them.
In other cases, we are just lucky. We have in the back of our mind the idea to open a new service line and the ideal (and open) candidate just appears on our horizon. Unfortunately, it rarely happens.
The most difficult exercise is to build a new practice with no one on board. You will need to dig into long lists prepared by headhunters, conduct long interviews, analyze the candidates, and hope that you will succeed in the end. In the legal profession, it is extremely difficult to move someone from their current senior position. You need to have ideal timing, an aptitude for financial investment, and a good persuasive power.
Akos Fehervary, Baker McKenzie, Hungary: At our firm, our team members always look for new trends and opportunities, engage in extensive discussions with market participants, and are keen to learn about new developments. This often results in the creation of new service lines or practices based on market input. We also focus on streamlining the relevant expertise and industry knowledge of our practices and practitioners. This approach not only allows us to build on existing relationships and trust within the firm but also aligns with our philosophy of nurturing homegrown talent. We believe that investing in our team’s professional growth creates stronger, more cohesive practices.
For example, we recently formulated a dedicated compliance & investigations practice, which will be led by the lead attorney of our employment practice – Nora Ovary-Papp. Nora has already built a reputation within the firm and among our clients for handling complex regulatory issues, making her the ideal choice to drive this new practice forward. She is coordinating the work and knowledge sharing within other relevant practices, such as competition law, tax, and data privacy, which have also gained significant experience in such matters and can strengthen each other to provide comprehensive services to clients.
Tomas Bagdanskis, Widen, Lithuania: When launching a new practice, my go-to strategy is to prioritize internal team members over lateral hires. This approach stems from a deep understanding of our existing talent and their capabilities. By focusing on our team, we not only leverage the skills and knowledge of individuals we already know, but we also foster a culture of growth and development within the firm.
Promoting internal team members to lead new initiatives provides them with opportunities to reveal their potential and take on new challenges. This not only boosts their confidence but also enhances their commitment to the firm. It reinforces our culture of continuous learning, encouraging other team members to pursue their own professional development.
Moreover, internal candidates are already aligned with the firm’s values and objectives, which can lead to smoother implementation of new practices. They possess institutional knowledge that can be invaluable in navigating the complexities of a new initiative.
While lateral hires can bring fresh perspectives and expertise, I believe that nurturing our existing talent is a more sustainable strategy for long-term success. By investing in our team, we cultivate leaders from within and create a more cohesive and resilient organization that is adaptable to change.
Michal Konieczny, KWKR, Poland: When launching a new law practice, I strongly prefer entrusting the task to a proven internal expert. This approach offers significant advantages over hiring externally.
An internal candidate intimately understands the firm’s specifics, procedures, inter-practice cooperation, and relationships with support teams. This accelerates the implementation process and enables faster market entry. They also grasp the nuances of resource management within the firm, crucial for developing a new area.
Knowing the individual’s strengths and weaknesses allows for tailored organizational support, optimizing their talents, and minimizing potential difficulties. Their established internal network facilitates cross-practice collaboration and increases operational efficiency.
Choosing an external candidate risks cultural misalignment and a longer adaptation period, potentially delaying the practice launch and incurring additional costs. A new hire would need time to learn both industry specifics and organizational functioning.
Ultimately, assigning an internal team member leverages synergies between existing practices and the new area, crucial for the firm’s overall success. They can more easily identify cross-selling opportunities and build a comprehensive client offering. This approach should be viewed as a natural step in professional development, with the new practice introduction resembling evolution rather than revolution.
Octavian Popescu, Popescu & Asociatii, Romania: When launching a new practice, we consider the available resources. As a partner who has navigated similar decisions, I believe both internal promotions and lateral hiring have unique advantages, and the decision should be aligned with the firm’s long-term goals.
Internal promotions have a major advantage due to a proper understanding of the firm’s culture, clients, and internal processes. We prioritize internal team members because this approach fosters loyalty, rewards dedication, and encourages organic growth. Having developed alongside the firm, they are aligned with our values and operational methods. Additionally, internal promotions motivate the entire team, creating a sense of progression.
However, we remain open to lateral hires when there is a need for specialized expertise that we currently lack or when entering highly competitive sectors where a proven track record is essential. Also, bringing in external talent can offer fresh perspectives, industry insights, and client networks that accelerate growth. Ideally, we are looking for a balance: building on internal talent while complementing with strategic lateral hires.
Thus, the decision depends on the firm’s goals, available internal expertise, and competitive landscape of the practice area. By carefully assessing all factors, we ensure the new practice is launched effectively and positioned for long-term success.
Bogdan Gecic, Gecic Law, Serbia: Our approach is centered on fostering and expanding talent within our internal team. We have cultivated a strong culture of excellence, and providing opportunities for our team members to grow with us and step into leadership roles is integral to maintaining this ethos. By investing in our team and prioritizing internal development, we empower leaders who deeply understand our firm’s approach, which accelerates the successful launch and growth of new practices. This also allows for seamlessly integrating our values into new practice areas, maintaining consistency, and upholding our high standards of client service.
While our focus remains on internal development, we recognize that lateral hires may be necessary in some instances. When a new practice requires highly specialized expertise or a unique perspective that we do not have internally, bringing in an external professional can add immediate strength and innovation required to drive and develop the practice successfully. However, such decisions are always made with a strategic, long-term vision to ensure sustainable growth and the enduring success of the firm.
Slobodan Doklestic, Doklestic Repic & Gajin, Serbia: When it comes to launching a new practice, my go-to strategy is to look at our internal team members first. We have a wealth of talent and expertise within our firm, and we prioritize recognizing and leveraging these internal strengths. By doing so, we foster a sense of growth and opportunity among our existing team members, which not only boosts morale but also ensures a seamless integration of the new practice within our firm’s culture and values.
However, there are instances where lateral hires become necessary, especially when we need to bring in specialized knowledge or experience that is not readily available within our current team. In such cases, we carefully select individuals whose skills and values align with our firm’s vision.
In summary, our first choice is always to empower our internal team members, as we believe in nurturing and developing our own talent. But we also remain open to lateral hires when the situation calls for it, ensuring we have the right expertise to deliver the best results for our clients.
Timur Bondaryev, Arzinger, Ukraine: While introducing new practice areas/industries our first choice is always internal resources. We strongly believe that this is the most natural and right approach, given that “insiders” much better understand the culture of the firm, internal policies and politics, goals, and strategy and are generally much more integrated. There is much more trust in internal team members, and we have managed to develop a culture, where people are not afraid to challenge themselves, helping the firm to boost the turnover, expand its presence on the market, and increase the market share. In such a case the ROI should be much more predictable.
Having said this, in some cases, it’s worth considering lateral hires, especially if a unique practice area is on the table and there is no relevant internal track record, or if rapid growth in available practice areas of the firm is anticipated and lawyers already in the team are not ready yet to embrace the expected swift expansion.
To avoid misunderstanding, Arzinger has always been very open to laterals, moreover, our immense growth all across the sectors and practice areas over the last years originates from lateral hires.
Panagiotis Drakopoulos, Drakopoulos, Greece: We would opt for a combined strategy, leveraging the positive aspects while minimizing the weaknesses of both approaches.
As a matter of fact, in the context of our continuous strive to stay at the forefront of developments, we recently launched our new data and digital practice, which now includes cybersecurity and AI and technologies, in addition to our existing privacy and TMT workstreams.
We decided to both make lateral hires and allocate internal resources to the new team: the new hires, led by one of the very few experts in the field both in Greece and the wider region, combining legal and technical knowledge – a rarity in our profession – have provided our firm with a significant competitive edge. Additionally, integrating existing team members into the new practice has infused the team with essential qualities, ensuring a smooth integration within Drakopoulos.
This article was originally published in Issue 11.10 of the CEE Legal Matters Magazine. If you would like to receive a hard copy of the magazine, you can subscribe here.