Updated: 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. Cultivating Leadership from Within

One of the most effective ways to prepare for succession is by identifying and nurturing talent from within your firm. This ensures continuity in leadership and preserves the firm's culture.

Mentorship plays a key role in this approach. By involving junior attorneys in high-level decision-making, client meetings, and strategic discussions, you equip them with the skills and confidence needed for leadership roles. Building these relationships early strengthens trust with clients and allows future leaders to step into their roles seamlessly.

Why it works:

• It maintains firm culture and client relationships.
• Boosts morale by showing younger attorneys there's room for growth.

Challenges

• It takes time and commitment to develop future leaders.
• Internal competition for leadership roles can create tension.