Promises: All Partner Tracks Are Not Created Equal

In most small law firms, partner tracks are pretty much entirely ad hoc – whereas larger law firms usually have something of a formulation (but, not always).  That means that there are a lot of promises that get thrown out in small firms – many of which never come to fruition.  A common variation on this theme is an older partner telling a younger associate that said partner is just about ready to retire (5 years away, is a common trope), and will pass the firm over to the associate then – only, that never happens & the senior attorney keeps practicing and practicing and practicing . . . 

 

Now, it’s hard to find a party to blame here.  Most of these partners have the best intentions – they just really like practicing, and don’t have any kind of succession plan that they can rely on (and, maybe wouldn’t even know how to create one, even if they wanted to).  Meanwhile, the younger associate is not necessarily business-savvy, and starts hanging on for an opportunity, for as long as they can stand to.  But, because these discussions often don’t get serious (firm finances are never shared, for example), both parties tend to end up in bad relationships, where bitterness, usually leads to the (eventual) ugly departure of the associate. 

I’ve seen it happen so many times. 

 

So, if you’re reading this, and you’re a small law firm owner, or a partner – and, you want to start talking to associates about equity or non-equity partner roles: understand the end game.  Know what your real offer is going to be to your associate & get comfortable with what you’re giving away (if it’s equity) or going into (retirement).  Don’t yank your associates’ chains; offer them a real transition plan.  (Or, don’t.)  Neither is a law firm ever ‘too small’ to have partner track for exceptional performers. 

 

For associates, it’s important to vet how serious a partnership or firm transition offer is.  Some marks of that seriousness would be a willingness to share firm financial information, a written transition plan or a formal partnership track with specific requirements outlined.  If the offer is ephemeral, pretend it doesn’t exist, and make your career decisions accordingly. 

 

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Need help untangling law firm transitions?  Give us a call! 

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