Fall 2014 issue of Horizons

LAW FIRMS

Recognize those who have the entrepreneurial spirit to successfully run a business. Also, do not underestimate the time needed to develop younger talent into a successor. Depending on the situation, it may take as many as five years for a new leader to obtain the necessary experience and skills to succeed in his/her new role. As the Altman Weil survey noted, senior partners do not want to give up compensation as they begin to transition to retirement. It’s important for firms to develop a compensation plan that rewards partners transitioning clients and training successors. The firm’s plan should support the overall firm goals and succession plan. With a compensation plan that encourages the development of future leaders while motivating staff to take on new responsibilities, the firm will have built-in support for its strategic plan.

The interview’s agenda is engineered to brainstorm ways to ease the partner into retirement by addressing issues related to client relationships, partner compensation, and the impact on overall firm leadership. While it may seem counterintuitive, by using this “double-team” concept, the meeting’s tone is more likely to be collaborative in nature and less likely to turn confrontational. It is recommended that one partner in the “double-team” be a key member of firm management (i.e. the managing partner or another partner that serves in an executive capacity). Client relationships will be key to the firm’s continued success and must be transitioned carefully to foster client retention and satisfaction. However, retiring partners also serve important roles in firm leadership, practice development, and general management. It’s necessary to include younger attorneys in these matters as well as client relationships. Assign committee responsibilities or office management duties to these successors to further identify strengths and to increase their experience. Identify Young Attorneys to Fill Future Gaps

Encourage Your Partners to Develop Their Own Plans Encourage your partners to consider the following:

∙ What does retirement mean to you?

∙ Do you still enjoy going to work?

∙ Will you leave law altogether?

∙ Relocate?

Each partner’s idea of retirement will vary, but until you have determined and voiced your preferences, the firm cannot support your goals and help you achieve them. It’s never too early to consider what shape the next phase of your life and career will take. Early planning also allows more time to explore your options. Your plan may change over the years as changes occur in the economy, your health or your family. The sooner you can identify successors and begin grooming them, the

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