3 Effective Approaches for Choosing the Right Success Strategy

The emerging issue is retirement.

According to According to Bloomberg Law, 40% of managing partners, CEOs, and chairs are between 61 and 70 years old. This means that many senior leaders in major law firms, well into their 60s or older, continue to control significant portions of their firm's business and client relationships. However, as retirement looms, the challenge of replacing this leadership becomes more pressing., 40% of managing partners, CEOs, and chairs are between 61 and 70 years old. This means that many senior leaders in major law firms, well into their 60s or older, continue to control significant portions of their firm's business and client relationships. However, as retirement looms, the challenge of replacing this leadership becomes more pressing.

In August 2023, Schnader Harrison Segal & Lewis, a mid-size firm in Philadelphia, closed after 88 years. The firm struggled with succession planning issues, such as senior partners generating less business and an inability to retain key clients. At its peak in the early 2000s, the firm had over 300 attorneys, but by the time of its closure, only 91 remained., a mid-size firm in Philadelphia, closed after 88 years. The firm struggled with succession planning issues, such as senior partners generating less business and an inability to retain key clients. At its peak in the early 2000s, the firm had over 300 attorneys, but by the time of its closure, only 91 remained.

Succession planning is essential for law firms to maintain stability and ensure a smooth leadership transition. Whether you're a senior partner planning your exit or a managing partner focused on securing the firm's future, selecting the right succession strategy is critical. There are three key approaches to consider.

1. Building Leadership from Within

In the case of Schnader Harrison Segal & Lewis, the lack of successors forced the firm to close. Without strong leadership to maintain client relationships and generate new business, firms risk losing both partners and clients. The most effective law firm succession planning strategy is to develop and promote leaders from within. This approach ensures continuity in leadership, firm culture, and client relationships, while empowering the next generation of attorneys.

This is where mentorship plays a key role.

Did you know that 66% of Canadian businesses don't have mentorship programs, according to the Financial Post? This means many retiring employees are leaving with valuable knowledge and experience that isn't being passed on to their successors. This means many retiring employees are leaving with valuable knowledge and experience that isn't being passed on to their successors.

A successful internal leadership succession strategy requires both targeted mentorship and training programs. Mentorship in law firm leadership is essential for preparing future leaders to manage the challenges of running a firm. Senior partners should focus on identifying high-potential attorneys early and offering growth opportunities, such as developing skills in decision-making, client management, and strategic planning. Leadership transition through mentorship ensures that future leaders gain the knowledge and confidence needed to lead effectively.

3 Ways of Developing Future Leaders in Law Firms

Now that we understand the importance of passing down knowledge and experience to successors through mentorship, here are three ways to help young attorneys:

1. Involve them in high-level decision making: Exposing junior attorneys to important firm-wide decisions helps them understand the broader business operations and develop critical thinking skills, preparing them for future challenges.
2. Include them in your client meetings: Involving junior attorneys in client meetings allows them to form relationships with key clients, helping to establish trust early on. This not only strengthens their understanding of client needs but also builds confidence in their abilities. By creating these connections now, both new and existing clients will feel more comfortable when junior attorneys eventually take over cases, knowing they can trust the lawyers stepping into those roles.
3. Involve junior attorneys in strategic decisions about the firm: Involving them in decisions about the firm's direction will equip junior attorneys with tools and experience necessary for a smooth transition when they do, inevitably, step into leadership positions. This not only develops their decision-making skills but also builds a sense of ownership in the firm's future.

By identifying future law firm leaders early and involving them in leadership shadowing and client interactions, firms can create a strong talent pipeline through targeted mentorship for attorneys.