In December, we published MPF Insight (see below), a report that summarizes results of our Leadership & Governance Survey and presents recommendations to law firm leaders. Since then, The National Law Review has written a series of four articles presenting its analysis of and commentary about the report. The final installment covers succession planning, an often neglected aspect of law firm management. Consider the following:
- For 63% of law firms, more than 50% of firm revenue is generated by lawyers older than 60 years.
- 30-40% of lawyers in private practice have begun the retirement process.
- 70% of first generation law firms do not survive their founding partners.
- 22% of firm leaders say they are grooming a successor for the leadership role.
If you and your partners care about legacy and the long-term sustainability of your firm, succession planning should be an ongoing process, and planning around the retirements of your key people should start much earlier than you think. Now is the time to start planning for the future.