Arguably one of the most important things a partner should and can do for his or her firm before he/she retires is choose and groom a suitable successor. Given the ageing in the profession worldwide in recent decades succession is a subject that is getting more and more attention, and rightly so.
More and more clients are wanting advice on how to address succession within their firms. A common theme one comes across however is that it is assumed there is some sort of single system or process one can put in place which will address the matter and that will be that. It is also sometimes assumed the issue can be addressed ex post facto, sort of ‘in arrears’, and all will be well. Unfortunately it is not so easy, nor should it be. It is far too complex a subject for that to be the case. These are some of the many reasons why succession is not properly addressed by professional service firms.
For instance, for the right person to succeed a partner it would normally take years or even decades of preparation by both the partner retiring and the successor in relation to his or her personal brand, , technical skills, practice area, industry sector, staff and most importantly, clients. There are many things that need to be taken into account and put in place over time.
It is relatively easy to do a quick test on how your firm is travelling in the area of succession. Think of the last half dozen partners who retired or left the firm. How many developed suitable successors who covered the items mentioned above? Go further, ask how many left anything of lasting benefit in the firm? You may be surprised and saddened at the outcome.