Diversity programs at most large law firms in the Philadelphia marketplace have reached a certain maturity: Hiring and retention committees seek the best of law students and lateral candidates irrespective of race or gender, intentional discriminatory behavior is not tolerated and initiatives to increase and retain lawyers of color have been in place since at least the early part of the decade. As a result, the percentages of African-American, Asian-American and Hispanic lawyers working in these firms is moving upward, albeit slowly.

Cognizant of these early, limited successes, it is now time to deploy second-generation diversity programs designed to increase the number of partners of color capable of successfully working in Philadelphia's corporate firms. In these recessionary times, recruitment by Philadelphia corporate firms of lateral partner candidates from diverse racial backgrounds who have proven their legal skills is a relatively risk-free prescription for increasing diversity numbers. The economy has affected the legal industry for everyone. But diversity programs, particularly for partners, need not suffer.

Fifteen years ago, I attended a dinner meeting of African-American partners practicing in Philadelphia corporate law firms. With nearly 100 percent attendance, the conference table was only about three-quarters full. Today, the number of African-American partners has remained flat. Even with the addition of Asian and Latino partners, the conference table still would not be full. To "kick start" diversity programs, we need more partners of color. Most experts would agree that diverse associates would do better if some of their colleagues and supervisors were of similar racial backgrounds. For this to happen, every firm must review its business case for diversity as well as its commitment to increasing the number of diverse attorneys because it is the right thing to do irrespective of the business implications.

Rates and book of business usually are the stumbling blocks when law firms talk with prospective diverse partners. This is not an issue of capability or of experience. Lawyers of color who spent years successfully practicing in the public sector are going to have difficulty putting together a business plan warranting an offer of partnership. For those wishing to laterally move from perhaps a smaller firm to a larger one, hourly rates will be one focal point of discussion. Lawyers of color ready for partnership consideration frequently are the first in their family in the legal profession. This cohort, historically, has not had the same private-sector business relationships as white male partners in a corporate firm. There are exceptions, particularly within the generation of highly trained diverse partners just coming of age. However, it strains reality to believe that the great majority of potential partners of color will have the same Rolodex of names capable of generating long-term business opportunities of importance to corporate law firms as non-diverse partnership candidates. Time will change this disparity, like others, but not today or in the near future. So, what are law firm managers to do if they want more diverse partners?

First of all, the back-and-forth argument that the "business case" for diversity is more important than the "moral case" needs to stop. The business case and the moral case need to be merged into one comprehensive diversity initiative. The business case is largely based on what those outside of the legal profession tell us. Presumably, only if a client tells a firm that diversity is important do we act. What other profession takes such a passive view of its qualified members? While clients are a primary reason for our existence, providing excellent legal service with lawyers representing all segments of the population is equally important. If law firms start with the proactive premise that we will have diverse lawyers, irrespective of the business of our clients, because lawyers of color are an essential ingredient to providing the best legal work product, then the business and moral imperatives are merged.

Secondly, lateral partner hiring committees must be realistic — and flexible — about the book of business. Here is an example. Candidate X, having honed his skills as a federal prosecutor for several years before starting a private practice, seeks consideration as a lateral partner candidate in a corporate firm following the dissolution of his 10-person law office. Candidate X has a six-figure book of business but somewhat less than what large Philadelphia firms currently require. Even if after compensation and overhead Candidate X makes no positive contribution to the bottom line, he is probably less expensive and far more experienced than the first-year associate out of law school.

Typically, each year after an eight-week summer clerkship, law firms make a significant investment in second-year law students by offering permanent positions of employment 13 months later. The law firm is betting that it will have a business need for the student in the following year and that he or she has the ability to do sophisticated work for clients. This is the accepted practice among firms.

The risk of hiring a lateral partner of color is no greater and is perhaps less. Under our example, the book of business of the candidate may well be less than firm guidelines. However, with a commitment to increasing diversity among partners, the law firm should help that potential partner grow his client base. What that requires is a firm policy that the new lateral partner will be required to perform legal work for firm clients as well as service his or her own book of business.

Unfortunately, the conversation surrounding the book of business is often too limited. The discussion between the candidate and the firm should continue beyond the recruiting process, covering cross-marketing opportunities and internal referrals while the new partner is growing the client base. Without the lateral having the opportunity to "tap into" firm clients and resources, his or her book of business will at some point be stymied and not grow. Just as Broad Street runs north and south in Philadelphia, the dialogue must be a two-way exchange. Unlike the first-year associate, whose legal skills are untried, the lateral partner candidate has a proven record of skills and work ethic. The risk of bringing in a new partner of color with proven skills and previous successes, but with a book of business lower than a firm's guidelines, frequently is well worth taking.

Thirdly, let's look for opportunities to get partners of color involved with significant public sector or public service clients. Because firms have bought into the "diversity is good for business" thesis and partners of color spend all of their time attempting to honor this obligation, too often, lawyers of color have shied away from this kind of work. Earlier this year, I was privileged to interview William Coleman Jr., one of the first African-American lawyers to practice in a corporate law firm setting in Philadelphia. The occasion for our meeting was the 40th anniversary of the successful integration of Girard College. Coleman led the effort to integrate Girard College for over a decade, arguing the case all the way up to the U.S. Supreme Court. While his law firm was not paid for his efforts, the importance of the case and the publicity from its successful resolution was well worth it to Coleman and his law partners.

The history of the black bar is filled with instances of pro bono activity in the 1930s, '40s and '50s. While every lawyer must balance his or her time, partners of color cannot neglect the core value of becoming involved in matters of public importance. Philadelphia firms should look for opportunities to expose attorneys but especially partners of color to these opportunities — even if rates are reduced. Again, the firm financial commitment is small with a potentially high payoff.

The best way to increase attorney diversity is at the partner level. If this proposition is even partly correct, then we have to find a way of substantially adding to those partners of color who are practicing in Philadelphia corporate law firms. The formula used by firms for what is an acceptable risk must change for those who are skilled but who have not yet developed the business connections in the corporate community to meet existing standards for lateral partner consideration.

I submit that as we have invested in associate recruitment programs by selecting talented students in their second year of law school, we could just as easily make an investment in lateral hires of color at the partnership level.

Nolan N. Atkinson, Jr. is a member of Duane Morris' trial practice group in its Philadelphia office, and he is also the chairman of the diversity committee at the firm. Atkinson is the former chairman of the Philadelphia Diversity Law Group Inc., a consortium of law firms and corporations committed to increasing ethnic and racial diversity in Philadelphia's larger law firms.

Reprinted with permission from The Legal Intelligencer, © ALM Media Properties LLC. All rights reserved.