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S10 | MONDAY, FEBRUARY 3, 2014 | Partnership
| NYLJ.COM

giving the associate the means to achieve
BY ED POLL
results. For any associate, the future depends
on whether the individual himself or herself
A
partner’s retirement transition, whether is committed to success, and whether the
from a solo or small firm legal practice firm provides the means to succeed. Defining
or practice in a large firm, is above all
“success” in relative terms such as “more
an issue of planning. The best personal and revenue” or “better marketing” sets a subjec-
client service strategy is to choose and groom tive standard that is difficult to discuss, let
a successor. Ideally the succession plan can alone achieve. The earlier associates begin
be structured to proceed over a period of taking specific steps in their SMART growth
up to several years, as client responsibilities plan, the sooner they can assume partnership
gradually transition to the new lawyer. These responsibilities.

years can be seen as the “red zone” of the
retiring lawyer’s career—the area right before Transitioning Strategies for Larger Firms
reaching the goal line of retirement. During
this period, the retiring lawyer can identify a In larger firms, the best way to take advan-
successor, have ongoing conversations with tage of positioning younger lawyers in this
key clients about the upcoming transition, way is through client service teams. Teams
forge new ties between the successors at institutionalize the work done for a given cli-
the client, and ensure that the new lawyer ent by involving other firm lawyers in the

is completely up to speed on what the clients delivery of legal services, even if one lawyer
need and expect.
remains the client’s primary contact. Ultimate-
ly, clients belong to the firm and not to the
Scenarios for Unplanned Transition
rainmaker. Making more lawyers rainmakers
as part of a team is in the best interests of
Unfortunately, most firms do not transition clients and firm alike.
clients from older partners as they approach However in many large firms, the individu-
retirement to younger lawyers in such an orga- alized compensation system does not sup-
nized fashion. Instead, these alternatives are port a team approach. The firm might offer

typical:
senior lawyers a buyout or capital payout in
• In a large law firm, a young associate exchange for sharing clients with younger
works for as many as 10 years, rising through lawyers. But if a firm wants to promote the
the associate ranks, and is then either invit- kind of client service teams that are most K
ed to become one of the partnership, or is effective, it needs to tie partner compensation TOC
asked to find employment elsewhere. Once to the effectiveness of involving other firm IS
arrived in the partnership, this lawyer com- Partnership Succession:
lawyers as part of the team delivering legal
petes against other partners for years, and services to clients. Clients and prospects want
looks after personal clients and billings before to do business with firms that will serve them

anything else. Little thought is given to future with effective inter-office, inter-disciplinary
relationship transition.
How to Protect Clients teams, but too often a compensation-driven
• In a small firm, a young associate works lack of trust among lawyers undercuts this.
for a few years, and feels entitled to become a It is essential that firm leadership explicitly
partner. While a good lawyer, this person has boosts the use of cross-selling teams in a way
yet to develop rainmaking skills and still has that will not, if properly communicated, make
no personal client following, or book of busi- And Save Your Firm
any lawyer fear losing billable hours.
ness. The result is a classic “Catch-22”—the The client service team concept, with the

associate cannot become a partner to whom rainmaker still involved as team coordinator
the practice can be transitioned without hav- but transitioning to retired status, is one way
ing clients, but is precluded from opportuni- to avoid the phenomenon of senior lawyers
ties to do so by virtue of associate status.
slowing down and becoming slipshod in their
In the small firm scenario, the partnership client service efforts. The important step is at best, will neither know nor care about the There should, however, be controls. Gener-
interest gives the holder only a small say in gradually transitioning clients to younger financial workings of their firm and will not ally within three years of hiring, associates
directing the path of the law firm. There is no lawyers, who can make use of this oppor- be suitable for transitioning to the future should become net-profit contributors. Every
expectation or planning that such a lawyer tunity through CRM and collaboration with “ownership” of client relationships.
law firm is a business, and a business that
will gradually transition to representing the older rainmakers. A CRM database centralizes does not have a clear idea of overall goals

clients of any other lawyer, because individual a firm’s collective knowledge, wisdom and Building Relationships by Doing
and specific strategies for its most impor-
and not firm commitments are paramount. In experience about clients and prospects, and tant asset—the young lawyers who are the
the large firm scenario, there may be as many makes it available to all authorized users. An associate at any size firm may become future of the firm—likely does not have much
reactions as there are lawyers. The young Rainmakers’ CRM contact records can be used frustrated because she had been working hard of a future. An excellent acronym, SMART,
associate may be thrilled to be considered for to develop cross-selling opportunities among at several client development efforts, which describes what’s required for an effective plan
the partnership, but having never developed younger lawyers according to an overall firm suddenly and unexpectedly fell through. The to grow the earnings development capabili-
clients for the business book of the firm, the strategic plan, with opportunities targeted to best response to this marketing dilemma ties of associates:
associate has no real idea of what “owner- individual lawyer plans. Relationship informa- is not to fret over it. Such conduct is self- • Specific billable work that contributes
ship” as a partner means.
tion that might otherwise have been hidden defeating and does little to encourage the to the firm.

Either way, associates often believe that away in the retiring rainmaker’s files (or mind) ability to assume client responsibility. The • Measurable standards of billable time,
their time and effort, working at partner direc- becomes the foundation for a smooth transi- more rational and effective tactic comes from training and client development effort.
tion, are substantially responsible for creating tion. This process facilitates and enhances our marketing definition, and can be summed • Achievable near-term targets that are
value in the firm and that they should be given the existing professional relationship.
up simply: don’t “strategize,” do something.
realistic.
credit for that. Undoubtedly everyone in a The key to business development success • Reasonable business development goals
firm creates value in this way, including staff. Transitioning Strategies for Smaller Firms
is building relationships with potential clients. that don’t set associates up for failure.
Yet one would never hear a staff person ask Relationship development is a marathon, not • Timeframes that impart a sense of
for a partnership interest. Associates who In smaller firms, the process can and a sprint, and it starts with getting into the urgency.

don’t know how to develop books of business, should be more direct. The issue of client public eye through blogging, social network- A SMART growth plan for business develop-
or who face second-class partnership status
transitioning is just as important in small ing, writing, bar association involvement and ment doesn’t have to be complicated. It can
firms and solo practices. Older lawyers in more. There is no one tactic that will cover be as fundamental as identifying two or three
these contexts should plan for transitioning the waterfront of opportunities to communi- desired outcomes for the associate within
principal of LawBiz Management, is a law their practice well before the necessity is cate with prospects. It becomes a question of a given time period, defining the behaviors
ED POLL, firm management coach and consultant.
forced by age or ill health. Failure » Page S13
each lawyer’s creativity and time availability.
necessary to achieve those outcomes, then