Follow my leader………..
Q: I’m a senior associate and am invited to board meetings once a quarter. At the last meeting, the partners mentioned that they needed to start thinking about succession planning. Do they mean they’re going to hand the business over to us to run and if so, what is the usual timeframe for these plans?
A: First of all there is nothing “usual” about succession planning! I’m heartened to hear that your practice is at least talking about it rather than waiting for the partners to retire and then wondering what’s going to happen to the company.
Succession planning seems to mean different things to different people. It should be more than just another business fad – along with process re-engineering, change management, learning organisations, knowledge management, and all the other terms used in Business Bingo. Its true focus is on the future of the organisation and consequently tends to centre around leadership recruitment and development.
There is no law that forces founding partners to hand over the ownership of their company to the next generation – after all, they did the hard work, they took the risks and worked 14 hours a day 7 days a week to reach the position where they can reap the benefits they are now enjoying. However, those with some eye to the future, whether it be the future of the industry or just their pension scheme, need to consider what will happen when they reach retirement age and wish to step back from everyday involvement in the company. Who is going to step into their shoes to perpetuate the business? This will be affected by the ages of the partners and their own personal agendas.
It may be possible to gauge the potential course of events from the current situation. Is there any kind of hierarchy within your organisation? You describe yourself as a senior associate, so presumably you are on an upward career path. Does the company have any history of hiring directly to partner level? Or do they tend to “grow their own”? Consider your peers and those above you as the likely pool for future partners.
You should also take part in some kind of regular appraisal system which incorporates key performance indicators. These will tell you what “success” looks like at your practice. You can ask what the next step upwards in your career should be and how to achieve it. Is there any particular training that would benefit you? Are there any perceived skill gaps that you need to address?
Equally, you need to consider your appetite for commerce. Can you win the work that will allow the company to continue in business? You may be stepping into unfamiliar territory and should be sure that you can deliver on expectations.
Fundamentally, the key to this whole question is communication. You need to find out what the partners mean by succession planning. How far along the path of “planning” are they? Succession plans fail either because they are less substance than smoke and mirrors or because they are not communicated.
Take advantage of your participation in the partners’ meetings. Ask questions. Seize the initiative and show that you are worthy and have the drive to assume the mantle of leadership in your practice.
November 2005
FX Magazine