Should You Grow Consulting Partners Organically or Hire from Outside?

Following some of my recent articles on Consulting Partner recruitment (Why Consulting Partner Recruitment Is Unlike Any Other Executive Search, The Partner Profile: What Makes Consulting Leaders Tick), we had some brilliant conversations with senior leaders at top consultancies about an obvious follow-up question:

Should we grow our Partners organically, or bring them in from the outside?

This isn't just a theoretical question – it's one we constantly navigate with clients, and the implications run deep for firm culture, economics, and market position.

The Old Rules Are Breaking Down

Traditionally, firms fell into predictable camps: 

• McKinsey, BCG, Bain and other large players traditionally almost exclusively promoted from within – typically 80-85% of their Partners came up through the ranks. Cultural purity was the name of the game.

• The Big Four consulting arms mixed it up more between homegrown talent and strategic external hires to accelerate growth in new areas.

• Consulting boutiques often relied heavily on lateral hiring to quickly build capability and credibility.

But these lines are blurring. Even the most "closed system" firms are getting more open to lateral hiring as competition for specialized expertise heats up.

Even the most "closed system" firms are getting more open to lateral hiring .

Let's Talk Money – The Real Economics

When we debate "build vs. buy," the conversation often focuses on culture, development paths, and growing and grooming talent internally. But in addition, the economics are also worth exploring:

Growing Your Own Partners

• Takes 7-10 years of investment in each candidate

• Requires a massive training and development infrastructure

• Faces inevitable attrition of high-potential people along the way

• Means slower entry into hot new markets

Bringing in Partners from Outside

• Usually demands premium compensation (typically 30%+ above internal equivalents)

• Creates integration costs that go far beyond the recruiting fee

• Risks cultural disruption if done poorly

• Can frustrate high-performers who see "their" promotion slot given to an outsider

The Integration Challenge Nobody Wants to Discuss

Here's the elephant in the room: Many consulting firms are terrible at integrating lateral hire Partners. There, I said it.

Here's the elephant in the room: Many consulting firms are terrible at integrating lateral hire Partners.

These same firms that excel at developing entry-level talent often struggle mightily with senior integration.

The data is sobering:

Only about 35-40% of lateral Partner hires meet or exceed expectations within 2 years, another 25-30% underperform, and a full 30-35% leave within 36 months – a staggering waste of investment.

Why does this happen? Consistent patterns are:

1. Cultural misalignment as the most common reason by far

2. Overly optimistic expectations about client portability

3. Insufficient integration support ("sink or swim" mentality)

4. Internal resistance from existing Partners who might see the newcomer as a threat

When a firm calls us about Partner hiring, we always ask about their integration track record and approach. Most have some sort of mentoring programs and other onboarding processes, nevertheless the results often fall short of expectations.

Strategic Considerations for What Might Work Best

For consulting leaders wrestling with this balance, here's what we've seen tip the scales one way or the other:

• Growth Timeline: Need to hit aggressive growth targets in new markets? External hiring becomes almost inevitable. Have a longer runway? Internal development can work beautifully.

• Practice Maturity: Launching a brand new capability like quantum computing consulting? You probably need to bring in established experts from outside. Growing a mature strategy practice? Internal promotion often works better.

• Market Positioning: Positioning as the innovative disruptor? Fresh external perspectives help. Selling consistency and methodological rigor? Homegrown talent tends to deliver that better.

• Geographic Expansion: Opening shop in Singapore or Dubai? Local Partner hiring becomes essential for credibility and relationships.

Beyond Either/Or

Overall, consulting firms are moving past the binary "build or buy" debate toward nuanced hybrid models with clear guidelines for each approach. They're also getting smarter about tailoring integration for different types of lateral hires:

• Industry experts coming from client-side roles as senior advisors

• Practice leaders poached from competitors

• Technical experts from boutiques

• Entrepreneurs through acqui-hiring of small consulting boutiques

Each requires a different onboarding approach, and the best firms recognize this.

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ABOUT THE AUTHOR

• Marion Heil is the founder and managing director of Board+CEO Advisors. She is based in Vienna.