Succession Planning: Best Practices for Retaining Top Talent & Leaving a Legacy

Solo and small-firm attorneys often don’t feel the pressure to retire, but you can be certain that their clients, support staff and junior partners are anxiously awaiting word. Little to no communication on your retirement leaves those around you fearing the worst. You could watch your clients and employees walk away within nine to 18 months if rumors and innuendo control the narrative.

We all know or have heard about the lawyer that just can’t say goodbye to the practice of law and wants to “die at the desk.” Or maybe the lawyer has contemplated retirement out loud a few times in jest, but never seriously disclosed exactly when or how that will happen. It could be pride, denial or fear of the unknown that prevents the lawyer from making and sharing the plan. 

When Should You Start the Conversation About Succession Planning?

Decide and share your plan long before “they” come to you with the suggestion that you should consider retirement. Be prepared to identify partners or senior associates who you recommend succeed to your book of business. And don’t let it be a surprise to your successors or your clients. Firm management should follow guidelines. Create guidelines if none exist.

Best Practices for Creating Succession Planning Guidelines

The guidelines should include, at a minimum, a survey of all employees every five years that asks for their next five-year plan. That plan should include the question of when the employee plans to retire and the tentative date.

The guidelines should describe who gets to make the decision regarding the retiring partner’s book of business. The clients ultimately get the final say. But let there be guidelines for retaining the best work the firm has earned. The retiring partner should be responsible for fostering that relationship with fresher talent, but the guidelines should encourage the law firm to step in if it’s not happening. Grumbling junior partners is the first tell.

The guidelines should identify major clients, the revenue derived from each client (i.e., potential revenue loss), and identifying the individuals currently working for those clients with whom the partner has a relationship.

Steps the retiring partner will take to ensure a successful transition should be outlined. This should include ways the retiring partner will expose clients to successor attorneys and ways the retiring partner will ensure successor attorneys are prepared to take over the business. Throughout the retiring partner’s succession plan, the client should recognize names and faces at the firm for trust to be established. A client is less likely to walk. Staff and junior partners earn recognition, and most importantly, learn to anticipate the clients’ wants and needs.

Build Your Legacy from Within First (How to Prevent Talent from Leaving)

Firm leadership should be focused on the book of business, growing revenue, and cultivating a positive workplace. Promote your firm’s culture – especially if it’s a positive one. Do you even know what your firm’s culture is? Are employees challenged? Developed? Give associates the opportunity to see what it looks like to be a partner. Teach them how to respond to client questions they don’t have answers to. Your employees are your brand ambassadors.

It is never good when one lawyer at the firm gets all the recognition, facetime and relationship credit. There should never be just one single rainmaker. Because if that rainmaker leaves, does the firm’s reputation go with her? Early, frequent and continuous communication about your retirement and succession plan is vitally important to your relationships within your firm.

Having the conversation with junior partners is not supposed to be scary for them or you. It should be a dialog not a “fait accompli.” It’s supposed to make them feel included, taken care of, and part of the plan. Let it be known that your decisions involve the top talent. Describe how the great opportunity for them is right here. Remind them why they were hired specifically. Junior partners should feel very comfortable and encouraged to verbalize their interest in a leadership position.

Let it be known you want, expect, and need them to have nurtured relationships with the clients, too. Juniors should offer suggestions about how to cement relationships with clients and referral sources (both within and outside the firm). Talent breeds talent. If you’re hiring future leaders - and you should - remind them early, frequently and continuously. Otherwise, they’ll start looking elsewhere for feedback and recognition. And their cup may be filled at another firm.

Levels of Succession Planning

• Management Succession (such as becoming a board member)

• Ownership Succession (such as becoming an equity partner)

• Relationship Succession (such as joining meetings, gradually shifting primary contact)

• Cultural Succession (such as having a voice in a mentorship-driven culture that ensures newer attorneys are trained not just in legal skills, but how the firm operates. This ensures the next generation of leaders preserve and reinforce those values.)

• Leadership Succession (such as becoming a committee chair)

Younger lawyers need to understand the value of these levels. Currently, they don’t. It’s up to seasoned partners to explain why. Succession Planning does not need to be feared and should not be ignored. Start the conversations today. Do it for your legacy.