Law Firm Strategy

By Patrick J. McKenna

Do you know that today, every seven seconds, someone is turning 60 years old? Indeed, it is expected that 40 percent of lawyers will be retiring soon, leaving not a hole in many law firms, but a sizable cavity.

It is very likely that someone important to your firm’s future is getting closer to retirement. When that professional leaves, so too will valuable knowledge and key access to many of your firm’s most valuable clients. Competitive firms out there right now are targeting the clients of your soon-to-retire partners. They are gambling that you will not get your succession matters in order and that clients will soon be up for grabs.

It’s time to face the music. There is also a concurrent gap in leadership being created as baby boomers retire. But far too many firms ignore all the warning signs until it is too late. Is your firm ready? Ask yourselves these questions:

• How many of our partners will be retiring over the next 10 years?
• What is the impact on our firm if we lose the knowledge those individuals possess?
• What is the impact on our firm if we lose the client contacts those individuals enjoy?
• What specific action plan do we have in place to ensure the next generation of leaders is in the pipeline?

Your current state of business can distract you to the point that, the next time you look up, it may be way too late to act. Develop your succession plan now!