Fall 2014 issue of Horizons

Demographic Assessment If your firm has not begun to consider

Once there is a general guideline for firm leaders to follow, more specific plans can be made to address individual transitions.

succession planning, one starting point might be to assess the current demographics of your attorneys.

Discuss Individual Partners’ Intentions This isn’t about putting anyone out to pasture but about planning for an inevitable vacancy, providing opportunities to recruit and retain talent, and safeguarding the future of a firm partners have worked so hard to build. While addressing these concepts can be difficult, ignoring the issues only puts the firm, its clients, and attorneys at risk. Any partner within 5 years of retirement should be communicating his/her intentions and working with firm leaders to implement a plan for transition. Once discussions have happened with individual partners, the firm can develop a timeline of potential transitions. This will help to identify the urgency of recruiting, training, and grooming for future transitions. For firms wanting to implement an approach to discuss partners intentions, a “double- team” concept has been successful for many. In this approach, two partners interview a partner that is considered to be “in-transition” from work into retirement.

∙ How many are nearing retirement age?

∙ What key positions do those individuals hold?

∙ What percentage of revenue is generated by these partners?

This assessment, which can be done at the firm, office, and/or practice group level, will help to identify what gaps will need to be filled in the near future either from lateral hiring or the grooming of younger attorneys. Develop a Plan Having a thorough and forward-thinking plan for succession within the firm makes addressing potentially awkward or difficult conversations easier. If your firm is one of the many without a formal plan for succession, consider a brainstorming session among firm leadership to consider succession issues, including:

∙ Determine where the firm will be in 3, 5, 10 years.

∙ What (or who) will it take to make that happen?

∙ Should there be a mandatory retirement age?

∙ What contact should retired partners have with clients to ensure retention?

∙ In what situations is it acceptable for retiring owners to consider working for the firm in a counsel-type or similar role?

∙ Are there situations that would trigger forced retirement of an owner?

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