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When it comes to the future of their law firms, solo practitioners and small law firm owners frequently delay or entirely avoid doing what is necessary for succession planning. Numbers don’t lie. Thomson Reuters’ State of U.S. Small Law Firms reports that succession planning is a focus for less than a quarter of law firms. I would also strongly suspect that even if 25% say they are “focusing” on succession planning, I’d be shocked if more than 10% were doing anything about it.
Procrastinating on succession planning can lead to significant complications, including financial loss, client and staff confusion, and emotional distress for loved ones. Let’s explore some of the reasons why lawyers procrastinate. After that, I will discuss how to overcome these barriers.
The psychological discomfort created by succession planning cannot be overstated. Contemplating one’s mortality and one’s inevitable death is never pleasant. It is human nature for lawyers (and others) to delay planning to avoid the distress, fear, and worry surrounding death.
Of course, the unsettling emotions caused by retirement and the potential loss of power, control, identity, and status hardly make the situation any better. Further, succession planning conversations can create conflicts among a firm’s remaining partners and, occasionally, among family members because of historical family dynamics.
Succession planning can seem overwhelming. The process often involves valuing a firm’s practice, determining successors, contacting clients, retaining professionals, and drafting various legal documents. You’ve probably heard of “paralysis by analysis?” That means being unable to move forward or take action because of either overthinking a situation or feeling incompetent to make the decisions inherent in succession planning.
As I’ve written before, lawyers, just like everyone else, have a 100% mortality rate. Even if you feel and look pretty good at 70 or even 75, that’s hardly a guarantee that you will feel or look the same when you are 80 or 85. Declining health—your own or a spouse’s—could limit your ability to practice, perhaps suddenly.
Thinking that you have time down the road to deal with succession planning is often wishful thinking. Don’t continue to kick the can down the road. There may not be as much time as you think.
Lawyers tend to get tremendous satisfaction from achieving their clients’ goals and, consequently, experience FOMO (fear of missing out) on helping clients. While doing so, they ignore the FOMO of the peace of mind factor that succession planning generates. That is, knowing that clients, staff, and loved ones have been protected. Lawyers completely disregard the positive impact of succession, viewing it as a burden instead of a positive and beneficial process.
Another significant factor contributing to succession planning procrastination is the lack of knowledge. How many CLEs have you seen promoted about the topic? Not many, I suspect. Without knowing what to do, lawyers feel uncertain about how to proceed best. Furthermore, fears of the time commitment and cost create two more roadblocks to procrastination.
Finally, for some, procrastination is simply in their DNA. They have been delaying things their entire life. Why should succession planning be any different? It’s not.
Knowing the reasons behind procrastination is a big step towards overcoming it. Here are additional concrete ways to defeat it.
Solo practitioners and small law firm owners frequently procrastinate succession planning. The whys are uncomfortable emotional feelings, perceived difficulty, and ignorance. Understanding these challenges and employing specific tactics to deal with them can overcome it and ensure that their legacy remains intact.
Ultimately, succession planning is a gift of peace of mind to oneself, clients, staff, and most of all, to loved ones, providing peace of mind. I have helped over 200 lawyers in more than 30 practice areas plan for the future of their law practice. To learn more about how to get started, give me a call at (612)524-5837 or connect with me online.