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IS YOUR LAW FIRM ONE BUS

HIT AWAY FROM CHAOS?

The Urgency of Succession Planning

By: Natalie Loeb, Gordon Loeb & David B. Sarnoff, Esq.

Succession planning in the corporate world is vital to the survival of production. culture and leadership. Succession planning
the entity beyond the involvement of its founders - does your firm is not an easy undertaking and requires strong leadership. a
have a plan for future leadership? For companies that sell products, supportive culture, humility, objectivity and the absence of
proprietary programs and services, succession of leadership outsized egos. Given the fact that many law firms are controlled
typically doesn't affect the quality of the product or service. by the individuals who produce the most revenue. or their closely
However, law firms and other professional service companies can associated allies, succession planning can present difficult
be greatly impacted by the death or departure of a highly skilled challenges to initiating the planning process.
practitioner or rainmaker. Many law firms are created by
individuals who either have an expertise in a specific practice area According to David Robert, a leading Organizational Development
and/or have established relationships that produce revenues to Professional who has substantial experience working with law
sustain the ongoing operation of the firm. A significant challenge firms, "effective succession planning is guided by three factors: (1)
facing law firms, of all sizes, is how to establish a stable business What role(s) are you focusing on, (2) how will you objectively
model that can survive and withstand changes in key personnel.
' Identification and development of potential successors develop your successors prior to their transition into the new role?
evaluate successor readiness, and (3) how will you engage and
First, let's start with the definition of "succession planning:"
In addressing the first question, the management of a law firm
must identify the leadership positions of the firm that need to be
staffed and sustained in order to successfully run the business of
for key positions in an organization, through a
systematic evaluation process and training. Unlike the firm. Succession planning does not only apply to the attorney
side of the firm. it also applies to business services positions such
replacement planning (which grades an individual solely as the firm's COO and CHRO.
on the basis of his or her past performance) succession
planning is largely predictive in judging an individual for "Successor readiness." is a key element to planning for the future.
a position he or she might never have been in.1
To properly evaluate an individual's practical legal skills. leadership
abilities and assess intangibles such as emotional intelligence
n
The goal of any succession plan should be to elevate the most ("Ei ) requires an objective eye. Often, rivalries, firm politics and a
qualified individuals who can maintain and improve the firm's toxic culture can derail the succession planning process. In many

1 Business Dictionary, www.businessdictionary.com

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