When we discuss succession planning with clients, the position of managing partner(s) and group leader(s) are quickly mentioned as critical. This is understandable since these individuals run the firm and have deep institutional knowledge. Then we further press clients: “Name other people in the firm whose departure would seriously hurt the firm’s business?” This query prompts a very thoughtful response. The answer usually consists of cataloging a list of individuals, {not exclusively partners}, in key business development and client service roles, with deep industry and technical expertise. Once the list is complete, our follow-up question is: “How would you replace each of these people?” What follows is a thoughtful conversation showcasing how difficult the sudden departure of a key professional can be.
The best advice to not fall into this predicament takes into account two important considerations. The first is engaging in succession planning as a distinct exercise separate from staff development. The second is basing your succession planning too heavily on existing leadership roles, which fails to appreciate many of the real departure risks.
With respect to both points: the best approach to succession planning is to have distinct career paths beginning no further than the level of senior, that leads to each vital role in the firm. These career paths should be supported by a robust framework tied to leadership and professional competencies and capabilities, that form the foundation for staff development. Equally important, the career paths should recognize the value of individuals in key positions other than top leadership roles. In fact, many of these individuals will be strong contributors to client service teams who do not have named leadership roles. You should rethink partner and staff compensation in a way that rewards high performers in all critical roles in a differentiated way.
This creates a significant opportunity to drive passion and morale in your firm. Individuals will perform at their best if they believe they will be valued and rewarded for their effort. In contrast, it can be demoralizing when an individual, with a critical skill, feels under-appreciated because the firm’s culture values other skills and undervalues his abilities.
