With an estimated 65% of equity partners approaching retirement age over the next decade, most attorneys working in a firm will be affected by the challenge of transition planning. While this statistic is notable, most law firms pay little attention to partners’ plans for retirement.
Most small and mid-sized firms must continue to compete for new business on a constant basis. Having polices that are favorable to the development of business generation skills places a law firm in prime place for growth.
The topic of transition planning is not the most enjoyable or easy topic around law firms. But it's critical, especially with a significant number of equity partners set to retire over the next decade. So why is transition planning so difficult for law firms?
The billing process is one of the key pillars of law firm success with impacts on financial and organizational health. It drives the performance of multiple important KPIs: cash flow (liquidity), A/R turnaround, billing and collection rates, and overall profitability.
This is the third part of our Practice Planning series. To catch up on the other parts , click on the following links:
PART 3: PUTTING IT ALL TOGETHER - HOW WE DO IT!
Performlaw’s practice plan engagements focus on the development of systems to maximize income-generating and strategic time investments. These engagements are aimed at creating high-performance lawyers who positively impact the culture of the firm.
For most lawyers, the first 10 years of a developing a legal practice defines the next 20. While developing marketable skills and practice area knowledge, lawyers are also managing their income needs and personal commitments. All of these factors influence the future of a lawyer's practice. When these factors conflict with one another, they can create stress and unintended outcomes. Also having a significant impact on a lawyer’s career is his or her ability and willingness to take risks.