Set for the future: Consider a succession plan for long-term success

It is hard for many attorneys to stop doing their life's work. Although the practice of law is a demanding vocation, it is often a very rewarding one as well. There is a point, however, when retirement calls for a shift in priorities. The ABA recently reported from the US Bureau of Labor Statistics that lawyers tend to postpone retirement longer than those in other professions: Where only 7% of US workers are over age 65, more than 13% of lawyers surpass the 65-and-up age bracket.

In considering potential retirement, a strong succession plan can be invaluable. Succession planning allows attorneys to prepare for life changes well in advance and help protect clients, colleagues and the future of the lawyer's firm.  

The duties of competence and diligence arguably call for a well-planned succession plan to ensure that matters can be handled and clients served even if the top of the pyramid retires. The below covers reasons why a succession plan is helpful and how to collaborate with others to create a plan that meets the firm's and its clients' individual needs.

Why a succession plan?

The goal of succession planning is to ensure business continuity and growth for both planned and unplanned events. Succession plans have the added benefit of effectively building teams that support ongoing client relationships. Indeed, clients may already be considering what their more senior lawyers have planned for the future--even if they have never mentioned it before. By letting clients know that there is a preferred network available to provide services even if the senior attorney retires, attorneys are able to protect their clients' interests and fulfill their ethical obligation to provide diligent and competent representation.

Succession planning is just as helpful for the short-term, such as making a plan for "who to turn to" when a senior attorney is out, on vacation, or on extended sick leave. This adds value to client relationships and may also increase client loyalty.

Prepare the firm for a smooth transition

There are many options when it comes to succession planning. There is no bright-line rule--it can be done formally or informally. In the end, the right plan comes down to what works best for a particular lawyer, the lawyer's practice, and the clients involved.

Developing these succession plans usually involves collaboration with other attorneys, staff or team members at the firm to draft expectations, roles and responsibilities. This can begin years in advance when a plan is expected to be put into action.

Sometimes succession planning is impersonal, simply planning to delegate client matters to others with availability in the firm. Often, though, passing on client matters is more nuanced. Succession planning may already be occurring at the firm naturally if a team involves younger or more junior attorneys who are deeply involved in the cases. Perhaps another member of the team has established a strong relationship with a certain client--involving that team member in succession planning could help maintain the client relationship and customize the plan. If successors are not already working with clients, lawyers can introduce their successors to clients and allow them direct access to the clients in order to build trust and confidence over a longer period of time. This supports a more organic transition.

A more formal approach may be to identify the trigger event, how long the agreement should remain in effect after the trigger, the scope of the successor's responsibility, and a list of the successor's duties. It could also describe what steps will be taken to introduce clients to the successor to ensure that the client is comfortable with the new attorney.

Additionally, the ABA recommends that succession plans include key instructions regarding logistics and security of confidential client information. Succession plans should incorporate where client information is stored, identify trust and operating account details, set forth procedures for the disposition of closed client files and any other contracts, explain payment information for liabilities like building leases, establish successor compensation, and keep security and technology information, like passwords, in a secure place.

Cultivating mentorship opportunities

A natural result of succession planning is the transfer of knowledge and experience to the next generation. Some of the most important components of a lawyer's development from junior associate to senior partner come from mentoring and sponsorship opportunities. Succession planning encourages this mentorship and development because it is the product of careful planning over time. Also, succession planning typically involves senior lawyers identifying and cultivating junior lawyers who demonstrate leadership and good legal judgment.

The act of implementing a succession plan also promotes mentorship. Transitioning lawyers should work to facilitate this handoff. They also should strive to start this transfer of knowledge sooner rather than later, before it is time to retire or before an emergency medical event requires senior attorneys to take extended leave. Attorneys can start this process by sharing with their intended support network any details regarding the firm's core values and culture, important information about key clients and where to find access to information, and the client's future strategy and plans.

Senior attorneys can and should pass along their knowledge from years of experience in the field to younger attorneys. Thus, taking the time to groom a potential successor ensures the senior lawyer's legal experience will be imparted to the successor. Ways to encourage this transition include having more junior attorneys shadow senior attorneys at hearings, trials, and pre-trial events like depositions. Once junior attorneys develop experience assisting the senior attorneys in these scenarios, attorneys can encourage a more active role.

Fostering legal experience in the younger generation of lawyers can also mean supporting their development of their own relationships with clients. Having and maintaining professional relationships can encourage the successor attorneys to understand what is at stake in the case and subsequently take more ownership in their work. Clients who know they can rely on more junior attorneys to "do the job" will establish confidence in these younger attorneys. The senior lawyer and law firm can also feel assured knowing the successor has taken the time not only to learn the practice area thoroughly, but to understand the nuances of the client's needs.

Succession planning can be an essential element to every practice, and methodically planning in advance ensures some measure of control over the future success of the firm and its clients.