Effective succession planning

Succession planning, in any organ-isation, is critical to its long term survival. However, too often it is left to chance or, worse still, ignored (it's probably more accurate to say that people turn a blind eye to its import). Even the term fails to win universal acceptance, and tends to be associated with leveraging people unceremoniously out of the firm. For the legal profession, it presents a unique set of problems, not least the fact that so much influence is wielded by (proportionately) so few people, and they possess more than just the sum of the intellectual capital.

It is arguable that, prior to the deregulation of the market, the 'fingers crossed' approach could have escaped scrutiny. But, with the tightening of the market, and the changes that, no doubt, ABS will bring about, succession planning can no longer be left to chance.

Many partners will see succession planning circumscribed by a narrow compass, namely the exit of senior practitioners. Others will picture a much broader landscape, for example a process by which the relevant candidature are identified for key posts throughout the lifetime of the firm (more commonly termed career and personal development).

In the past, career development was more or less a matter of happenstance. As long as you showed up, billed according to plan and didn't upset too many people, you could be assured of promotion. No more. The specialist has a place but the business-minded leader with genuine commercial awareness is what all firms need to focus on. Let's be clear. It's not just a case of labels '“ succession vs. career development '“ but rather accepting that for a firm to be great, the only way it will get there is by properly managing its people. It's no accident that people talk inexorably about 'having the right people on the right seats on the bus', but how many firms engineer it ?that way?

Identify opportunities

Succession planning normally has no immediate home. It may reside within human resources, but where a firm has no dedicated resource, it may fall on a number of people, some of who will have more pressing issues. It shouldn't really be this way, particularly where outsourcing is so common place '“ if you don't have the skills or time then you could consider buying in help. Just imagine billing being thought of in this way; but succession planning is of genuine strategic importance.

A good place to start (and it really is 101 stuff) is to prepare an organisational chart of the current staff and partners and start mapping: the likely number of changes over the next three years; the strategic openings where you may need to promote or recruit; and where you have the wrong people in post. It's amazing what this exercise throws up. If nothing else, it should identify opportunities for business development.

Alongside this process you need to look at the firm's training and people development programme. Even if the firm is small, you shouldn't just rely on the ubiquitous CPD: it's not just a case of getting your flying hours done, but rather using the annual or bi-annual review process to identify where training would make the biggest difference. There may be a short term focus '“ financial acumen is always in short supply '“ or it may involve longer and more involved study (LLM or MBA). The point about succession isn't just about one person succeeding another but rather one person being equipped to develop the firm for the long term. Too often you assume that just because someone becomes a senior fee earner means that they will acquire all the other skills.

Client expectations

And then what of client and market intelligence? How many firms have put in place a formal client succession programme that isn't just focused on departing partners and capturing long-standing client relation-ships but also covers the extant client relationships? In too many cases, firms allow a situation to develop where fee earners behave as if the client is theirs and assume that only they should have contact or are equipped to handle the client's work.

But ask most clients what they expect from a firm and while some want the acknowledged wisdom and expertise of a leader in their field, most clients just want to know that they are getting the best advice and timely service at a fair price.
Of course, they may have one point of contact, but it's about managing their expectations to make it clear that the firm, in providing them with the highest standard of client care, adopts a tiered approach which may mean more than one person working on their matter at any one time.

But perhaps the biggest hurdle for firms to navigate is the cultural barriers engrained by years of neglect in this area. If the firm has no expectation of managing the succession process then it can be tricky trying to speak to fee earners about such sensitive issues. It requires strong leadership, clarity of vision and diplomacy of the highest order.