Client partner succession planning: Making strong client links

Succession planning within client teams is a perennial challenge. Client partners retire, leave, or simply wish to relinquish their leadership of the client team. How do we ensure the longevity of a client relationship through a period of leadership change and uncertainty? What does the replacement client partner need to do to understand the client's business and legal challenges? How can we ensure business as usual - or, even better, improve the level of client service and depth of relationship with the new client partner?

Succession management is not a one-off last-minute activity - it requires detailed, well considered transition plans undertaken over a period of time. Client engagement should begin as soon as a client partner shares their intention to step down.

There are two sides to succession planning to consider:

• the internal perspective, for example all the discussions that need to take place within the client team; and

• the external perspective, for example, the conversations and activities that need to take place with the client.

Considerations within the
client team
Within the client team, things to consider include:

• The timeframe - when will the new client partner need to be up and running?

• How long have we got for a handover period?

• Who is best placed to step into the incumbent client partner's shoes?

• What benefits will they bring to the relationship?

• What is the best way of introducing them to the client?

• Who do they know? Who should they know?

Think about the structure of the client team

Client team structure has a role to play in effective succession planning. One-partner relationships and 'siloed' client teams are the most difficult scenarios to manage, but can lead to opportunities if managed well.

Large corporate and banking clients tend to have a greater number of client access points, which allow for increased contact across the wider client team, most commonly described as an 'institutionalised' client relationship. A broad client team provides the best opportunity for succession planning as the firm will be able to select from a pool of partners already known and respected by the client. Conversely, entrepreneurial or private equity clients tend to rely on personal relationships with just one or two partners, leading to issues around portability. If the client partner leaves without a clear succession plan, the client's loyalty may be compromised.

So what is the ideal client team structure? It depends on the size of the client, their business structure and your historical relationship and future potential for broadening the relationship. It is important to appoint at least one client partner and to make sure all lawyers working with that client are joined up and provide a seamless service. Reporting into the client partner, you will often see lead partners representing the activities of a specialist area or geographical region. For larger clients, a second or alternate client partner is a good idea.

The importance of the client partner

Allocating a client partner to lead a client team is nothing new but what is evident is that many law firms only do this for their key or strategic clients, leaving a large number of growth clients at risk if their main point of contact leaves. There are a number of reasons why the role of the client partner is important:

• Responsibility for succession planning sits firmly within their remit. If they are to step away from the role they should manage the succession planning process, from initial selection of the replacement client partner, through to a settling in and handover period. It is difficult to manage succession planning as a centralised process; it is much more effective from the client's perspective to manage it from within the client team. The only exception is when the client has asked for an alternative client partner.

• Criteria for business advisory services decision making has changed post-2008. Although initial selection criteria is geared towards pricing, value-added services, and efficiency/project management, procurement teams will do their due diligence on the proposed client partner and the structure of the client team. Many professional service firms have been caught out when at the final pitch stage of a selection process and the question, 'so you are our client partner, what does that mean?' is asked.

• Professional advisers often operate with a number of parallel siloed, transactional relationships, servicing different parts of the client's business. The role of the client partner is to take a holistic view of the relationship and bring points of contact together as one team. Clients do have a different experience when the client team is joined up, with clear leadership. It is a fundamental piece of the service delivery jigsaw.

Top tips: It is important to define the role of the client partner, with succession planning included as one of their key responsibilities. Make sure the client partner is responsible for managing a realistic number of client relationships.

Associate engagement in client teams

As client programmes broaden beyond key clients, we are seeing associates playing a much more active role in client teams. For smaller growth and target clients, it is not unusual to see a senior associate stepping into the shoes of the client partner or acting as an alternative point of contact. Assigning associates to client teams has multiple benefits in terms of succession planning:

• Upskilling junior client team members to get more involved in client teams gives associates invaluable business skills.

• It exposes associates to the succession planning best practice early in their career.

• Associates can play an important role in supporting the client partner through the succession planning process, especially in helping new client partners get up to speed.

• Associates are the client partners of the future and may play a long-term role in client development with a specific client.

Managing the transition plans

Most client teams will have an active client plan, capturing overall relationship objectives and a series of actions on service delivery and client development. Succession planning sits firmly within the client plan. It should be viewed as a series of activities to be owned and implemented by the client team, rather than something that happens once. It should also reflect the client's voice and their expectations throughout the succession planning process.

Top tip: Include a mini succession project plan within the client plan, with a timeframe, actions, responsibilities and supporting comments. It should be circulated and shared as part of the regular client planning updates.

The client's perspective

Early client engagement is the key to success in succession planning. Working with the client to discuss how their legal team may evolve, or their business needs change, helps to identify and develop the future client partner. Matching the right client partner to the client is a skill in itself. Here are a few things to consider when short-listing future client partners:

• Do they have capacity in terms of their workload and other client partner commitments?

• Sector knowledge - can they contribute to senior level strategic thinking?

• How well do they know the client and the client's business/legal challenges?

• Who do they know? Who should they know?

• Do they work closely with any competitors?

• Are they at the right level to influence the main client contact?

Let your client choose

It is important to engage with the client as soon as possible. In the case of retirement, most firms require partners to notify of their intent to retire 12-18 months out, so this is the time to start having a discussion with the client. Often these discussions are left far too late, six months before the partner leaves the firm. This provides a 12-month opportunity window for other law firms to start investing in a relationship with the client.

• Ask your client who they would prefer. They may surprise you.

• Where possible, try to carry out an independent client review to capture open and honest feedback on what has worked well in the past and what they value in the relationship;

• Field a shortlist of candidates. Give the client options, and let them choose.

• Allow the client the opportunity to define the role of the client partner in the context of their business.

The power of review meetings

Don't underestimate the power of regular review meetings with your client, to discuss not only the service delivery elements of the relationship, but also to explore how their legal team may evolve, or their business needs change. These discussions provide the perfect backdrop for succession planning. Too often law firms focus on a transactional relationship (we do the work, we bill you, we do the work, we bill you), without making the time to understand the wider business context and how they can help their clients achieve success.

Top tip: Put succession planning on a review meeting agenda. This not only allows the existing client partner to discuss and agree a transition plan with the client contact, but also to invite the new client partner to attend the meetings.

Managing the transition

Finally, a brief word about transition plans. They tend to be broken down into four phases:

1. Notifying the client of change.

2. Client partner selection process.

3. Transition/handover planning.

4. Post handover (sometimes seen as a mini 100 day plan).

Top tips: Actions associated to each phase of the plan are not just for the client partner, there may also be actions assigned to the main client contact. For example, to introduce the new client partner to the finance director.

Build a stronger relationship

There are many benefits of putting together a carefully considered client partner succession plan. Firms can ensure that client relationships outlast individual partners, as well as upskilling other client team members. By involving the client in the process, firms have the opportunity to build stronger relationships and gain a better understanding of the way that client's busines works.

Clare Quinn-Waters is a senior BD manager at Baker & McKenzie (www.bakermckenzie.com). Ali Hellewell and Claire Offord are consultants at ClientFace (www.clientface.co.uk)