Page 6 - Partnership

S6 | MONDAY, APRIL 24, 2017 | Partnership | NYLJ.COM
Law Firm Succession Planning
BY MARC A. LANDIS AND MARK M. ELLIOTT
“He acts like I’m ... his successor—but he thinks he’s gonna live forever ...” - Michael Corleone, “The Godfather, Part II”
Law rm succession planning is neither a comfortable nor an enjoyable topic—but it has never been more necessary. We are required to confront challenging issues: aging, relinquishing our professional identity, an uncertain future, and even mortality. This is an existential issue for some rms and of importance to virtually all. With the continu- ing retirement of the baby boomers, our profession is undergoing an unprecedented generational transition. Law rms that wish to continue to succeed cannot afford to avoid the topic.
MARC A. LANDIS is the managing partner of Phillips Nizer. MARK M. ELLIOTT is the chair of the rm’s litiga- tion department. JULIAN D. PERLMAN, a partner at the rm, assisted in the preparation of this article.
Over 65 percent of the equity partners in the United States are in their late fties or older.1 While many senior partners look forward to a decade or more of performing high-quality professional work, the fact of the matter is that none of us will practice law forever. Much rides on a law rm’s will- ingness to timely address this inevitability. Indeed, for many rms the stakes could not be much higher. No less than retaining key clients, keeping talented lawyers and even the survival of a rm depend on effective succession planning.
Firm Leadership
Let’s start at the top. Whether it is the founding partner or her successor decades hence, the fact of the matter is that many rms identify with or are highly dependent upon an effective rm leader. The manag- ing partner often sets the tone for the rm’s culture, articulates the rm’s vision and is the person most intimately acquainted with the rm’s practices and nances. Much like a corporate CEO, such a person is not easily replaced.
Several years before a managing partner plans to retire from the post, she and the rm’s executive committee must begin to identify the persons likely to be best suited to succeed her. That requires identifying those with the qualities necessary to herd a most dif cult breed of cat: Highly-intelligent, strong-willed professionals trained to scruti- nize, question and advocate. Aside from the obvious, good judgment, un appability and the like, the ability to maintain a constant focus on the rm’s future is a key quali cation for the job. An effective rm leader should be open to and respect contrary opinions. A bit of diplomatic grace will come in handy as well.
When future leaders are identi ed, they should be groomed. Among other things, that means including the next-generation leaders in key rm decisions, placing them on meaningful rm committees, particularly the rm’s executive committee, and most of all being as transparent about the rm’s goals and challenges as reasonably possible.
With the many day-to-day responsibilities attendant to running a law rm, and in most cases servicing clients as well, it is easy for succession planning to fall low on the list of a
managing partner’s priorities or to not make the list at all. In that case, other rm lead- ers should insist that the managing partner make the time to consider succession plan- ning with respect to the rm’s top post, other rm leadership positions and clients. It may be advisable to establish a rm committee on succession planning. This may have the effect of depersonalizing this dif cult topic, while also institutionalizing the rm’s com- mitment to getting it right.
When a new managing partner is selected, the outgoing managing partner should con- tinue to play a key role, prior to and after the new managing partner takes the reins. To help accomplish this, the selection and announcement of a successor should occur several months before she assumes the post. The interim period will permit the outgoing managing partner the opportunity to further prepare her successor for the job. While there can be only one managing partner at a time, the outgoing manager should include the incoming manager in key meetings and decisions and ensure that her successor is fully apprised of all material rm affairs and challenges.
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