*NEXT GENERATION, NEXT DESTINATION*
FAQs
Q. When is the right time to start talking with senior partners about
eventually transitioning out of the firm?
A. If there is a mandatory retirement age requirement, the discussion process should ideally begin 10 years before they must leave or at least five years before they must relinquish their partnership status. This should be part of a process that includes all the senior partners so no one feels singled out as not measuring up.
Q. How does the large number of Baby Boomer senior partners affect how retirement from the firm has always been handled?
A. It is a greater challenge to handle so many at once, and the ad hoc arrangements of the past used in many firms will no longer suffice. The economic realities mean the previous perks offered need to be re-thought. It is time to review policies or to draft policies if there are none.
Q. What issues must firms typically address to effect satisfying transitions?
A. Among the crucial issues are:
- Resentments and differing views on timing and entitlements from senior
and junior partners.
- How best to retain clients and their satisfaction with service
- Retaining institutional knowledge and glue
- What resources and support to give senior partners to plan their next
phase career/life
- Trust issues between senior partners and the firm and senior partners
and more junior partners
- Emotional issues - e.g., senior partners feeling they are valued only
for their current billables
- Economic issues - rewarding senior partners for all of their contributions; retirement payouts and timing
Q. What factors are typically hindrances to senior partners' doing early transitioning planning for their next career/life?
A. Fears such as loss of: professional (and maybe
personal) identity; power; status; security; control
Lack of information on policies, opportunities and benefits
Q. What are the prerequisite conditions for senior partners to willingly transition the clients they are responsible for to younger partners?
A. Trust, clarity on economic implications, clear
expectations, positive feelings about how the firm treats them
Q. What can firm management do to promote and support smoother transitions?
A. Three significant steps are:
- Establish a firm-wide policy that covers everyone but allows for individual
variations based on business plans.
- Provide workshops to begin the planning for all partners at least five
years in advance of changes in status.
- Provide compensation to cover the transitioning process
Q. At what points of the transitioning planning process can firms benefit from the assistance of neutral parties?
A. Outside experts can provide valuable insights and advice to management in creating fair policies and workable systems. They can coach individuals to plan and then facilitate client transition dialogues for work teams.
Q. Why is it in a firm's interest to establish an effective process and support transitioning planning?
A. Consider these benefits:
* Retain the goodwill of partners as ambassadors in the community when
they retire from the firm or active practice.
* Increase the chances that clients will stay with the firm.
* Minimize the defection rate of "next generation" partners
* Control the costs of providing space and perks for partners retiring
from the firm.
* Retain some senior partners for mentoring, training and other contributions.
* Avoid age discrimination law suits.
© Practice Development Counsel, 2006.
tel: 212 593-1549
fax: 212 980-7940
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