Associate Transition or Associate Takeover?

Published June 11, 2013

Transitioning out of a legal practice is above all an issue of planning. If the practice is not sold or closed, the best alternative is grooming a successor brought on board as a younger associate. Ideally the succession plan can be structured to transition over a period of years, as client responsibilities gradually transition to the new lawyer. But this raises a valid concern. What if an associate so ingratiates him/herself with clients, at the expense of the firm, to the point that such a lawyer can start his/her own practice and take the clients along, leaving the former firm high and dry?

This question is perhaps best addressed by looking at what the older lawyer in the firm should have done to prepare the associate’s future role. In a small firm it is essential to ensure that the client transition process to a successor is not only planned, but noncompetitive. The goal is to maintain and nurture the client relationship, allaying any fears that there will be service gaps or other issues that will jeopardize the quality of legal counsel that the client has received and has a right to expect in the future. The successor must be willing to be part of this process, which should be carried out according to a well-considered and thoroughly researched strategy.

Essential to that strategy is for the successor to attain, with the guidance of the senior lawyer, mastery of all specifics about existing client relationships as preparation for introducing the successor to those clients. There should be an accountability plan and a written timeline for all the discrete elements of the client transfer. This plan should be accepted by both the senior lawyer and successor before meeting with each client so it can be presented as a transition framework to which the client can have full input for modification. The goal is to make sure there are no mismatches in personalities, perceptions or understanding of what is to happen. Clients should be assured that there is a mutual effort to continue meeting their needs, one in which all sides will continue regularly to evaluate how well the transition plan is working and to make adjustments as needed.

Such a smooth transition will eliminate problems over the issue of goodwill when the time comes for the successor to assume the practice. Goodwill embodies the reputation of the firm, and with that reputation comes the client list, the phone number and the on-going nature of the practice. Adequate preparation in grooming and transitioning a successor from inside the firm can eliminate discord over this issue.

Categorized in: Client Relations, Coaching

Audience type: Associates, Small Law Firms, Sole Practitioners