The Horton Group has published the following article, in its law related newsletter–Legal-EASE, written by a mutual associate of ours Michael Zolno of Zolno Consulting.

All businesses, especially law firms, go through succession, which can cause a great deal of internal and external turmoil.

In fact the survival of the firm may well depend upon how well the succession is dealt with.
Studies show less than 50% of all businesses ever make it from the first generation to the next.

Even less make it to generation number three!

However, if properly handled, the retirement of senior management and partners offers a tremendous opportunity for growth.

The key for insuring a smooth transition to new partners is having a well thought out and written plan for
succession and transitions. Such a plan would include:

  • A clear definition of what is expected of the “new leader.”
  • The skills and attributes desired of the “new leader.”
  • A plan for how and when the “new leader” will acquire new skills.
  • The role of retiring management (partners) in passing on client relationship and management skills.
  • Making certain that the funding required for the transition is available and so as to not place an extraordinary burden on the business or firm.
  • Assuring that contingency options are in place. These could be alternates for management positions, merger or acquisition possibilities, or dissolution.

Let us now take a brief look at specific issues that are relevant to law firms and other professional service firms:

  • Use the transition as an opportunity for clarifying the firm’s plans for the future and developing a strategic plan for achieving them.
  • Have a plan in place for easing managing partners back into full-time practice.
  • Review the role of the managing partner and see what tasks could be given to an administrator allowing the managing partner more time for client contact.
  • Consider moving to a systematic marketing approach versus “rainmaking.”

Always consider the option of merging with or acquiring another firm.

©2007 MICHAEL ZOLNO

Michael Zolno, founder and principal of Zolno Consulting, is a member of the Legal Marketing Association, and an Associate Member of the American Bar Association. Zolno Consulting’s focus is on assisting law firms and other professional service organizations in developing and implementing strategic marketing plans that lead to practice growth, and improved client services. Zolno has also worked with family businesses on interpersonal issues.

Mike can be reached at 773.856.5442 or via email.

Paul V. Shaheen, RHU REBC
Vice President – The Horton Group, Law Firm Support Practice
221North LaSalle, Suite 910
Chicago, Illinois 60601
v: 312-917-8623/f: 312-324-9223/ c: 708-715-6623
paul.shaheen@thehortongroup.com
www.thehortongroup.com