Law firm succession is a huge issue for many of today’s law firms. Not surprisingly, more firms than ever before are focusing on succession by adopting written succession plans that address leadership succession and client relationship transfer. Despite the importance of succession, many firms have no written plan and remain unprepared for transitioning leadership or
Most law partnerships begin with a sense of shared aspirations, enthusiasm and trust. The founding partners and those subsequently added presumably maintain a fiduciary commitment to conduct consistent with the welfare of the other partners, as well as clients.
The fact is that this is often not the case.
Although the final numbers are not in yet, 2018 has been touted as a good year for law firms. Based on various reports including the 2019 Citi-Hildebrandt Client Advisory, revenues were up, billing rate increases held, and client demand increased. These improvements are not shocking as law firm performance has been ascending in recent years.
Just because industry performance this past year was on the whole very good, not all law firms can look back on 2018 with such positive thoughts. Indeed, the overall industry uptick is pulled along by strong performances among the AmLaw 100, especially the top 25 firms. Performance among the second AmLaw 100 (or 101 to 200) generally was not as positive. Similarly, firms outside the second 100 did not, as a class, enjoy the kind of robust financial performance logged by the bigger firms. Specialty firms (obviously focused in the right specialty) were the exception among smaller firms.
Don’t waste your time trying to control the uncontrollable, or trying to solve the unsolvable, or think about what could have been. Instead, think about what you can control and solve the problem you can solve with the wisdom you have gained from both your victories and your defeats in the past. – David Mahoney
As business organizations go, law firms are different because they can face greater stability challenges. Sure, law firms with iconic names seem to rock along year after year. But for every bedrock firm there are others that struggle to survive. And even some of the firms regarded for their steady state are like the proverbial
Running a law firm successfully is no easy task. It is a multi-dimensional effort that requires leadership, discipline, vision, and some luck. Getting all firm lawyers to row a boat in unison can be tough. Even if some of the oars irregularly go into the water, progress is still possible.
When attentive leaders work hard
A law firm report card is a good thing. Much like a child’s school report card telling a parent how school is going, a law firm report card can inform firm leadership about its progress, shortfalls, and areas that need improvement. In these days of industry disruption and heightened competition, periodic assessments can give a
Strength and growth come only through continuous effort and struggle. – Napoleon Hill
As the economy begins to show signs of volatility, it may foreshadow risk for many law firms. Additional market disruption may lead to challenges for firms of all sizes and in most practice disciplines.
In a Forbes article, Basha Rubin suggested that
Time and time again the news includes another report of a law firm (most often small to medium in size) having been ripped off. The dollar amount involved in a majority of the reported thefts is a few hundred thousand, but in some cases millions of dollars have been misappropriated. In what I consider the
The measure of success is not whether you have a tough problem to deal with, but whether it is the same problem you had last year.
— John Foster Dulles
Former Secretary of State
We’ve Got Trouble…With A Capital “T”
Most law firms go through a similar cycle. Initially partners share an
