Law Practice Management Asked and Answered Blog

Category: Aging

May 20, 2015

Law Firm Succession – Coming to Terms With Aging

Question:

I am the managing partner in a 12 attorney firm in Chicago. We have 6 partners and 6 associate. We a boutique litigation firm. Three of our partners are in their mid to late 60s and should be thinking about retirement but they seem to be in denial? How to we begin to addresses this issue?

Response:

Several years ago I was giving a presentation to an ALA (Association of Legal Administrators) Chapter and after the presentation an administrator came up to me and asked, “what kind of financial incentives can we put in place to encourage some of our senior attorneys to retire”? I responded by saying “help them identify some hobbies.” While my comment was partially in jest, many attorneys,
especially baby boomers, have invested so much into their careers and law practices they have not had either the desire or time to invest into other areas of interest.

The more difficult components of retirement include:

For some people the best way to retire may be to continue working.      

For others, rather than being a time of easing back and retiring into old age or continuing to work in one’s old job or career, it can be a time of personal growth and an opportunity to explore other interests, callings, and vocations. It can be a time of freedom to do what you always wanted to do but could not because you had to earn money and the pressure of work prevented you from pursuing you dreams and interests that were in tune with you values and beliefs. Here is a list of a few areas that lawyers approaching retirement might want to explore:

  1. Teaching courses at a local law school or university
  2. Pro-bono work
  3. Writing
  4. Photography, gardening, travel, or other hobbies
  5. Serving as a director on a profit or non-profit board
  6. Counseling
  7. Volunteering

Retirement planning begins with taking the time to think about how one will use their time.
If you live fifteen years beyond your retirement your will have 28,800 hours that will have to be filled with retirement activities. (five days a week, eight hours a day, 48 weeks, for fifteen years)

Find ways to encourage your senior attorneys to explore and think about their future and explore other interests - both at home and at the firm.

Click here for our blog on succession

Click here for out articles on various management topics

John W. Olmstead, MBA, Ph.D, CMC

 

Jul 22, 2014

Law Firm Attorney Retirement – How Law Firms Are Coping With Aging Attorneys

Question:

I am the Director of Administrator in a 45 attorney law firm in Miami. Twenty of these attorneys are partners and ten of the partners are in their late fifties and mid to late sixties. While we have a semi-retirement program in place it is not mandatory and many of our senior attorneys are unwilling to address issues pertaining to succession and transition of their practices. Do you have any thoughts or ideas you can share regarding creating incentives for senior attorneys to address and deal with the issue of retirement?

Response:

Larger law firms are moving away from mandatory retirement. However, many large law firms still have mandatory retirement. According to a recent survey approximately 57% of law firms with over 100 attorneys have mandatory retirement programs. At the other end of the spectrum many smaller firms that never had mandatory retirement are beginning to incorporate some form of mandatory retirement in their agreements. In firms of all sizes and whether they have mandatory retirement programs or not – getting senior attorneys to deal and cope with aging is a challenge. Here are a few thoughts:

  1. Begin planting seeds to get senior attorneys thinking about retirement and the next stage of their lives.
  2. Conduct educational programs designed to help senior attorneys visualize their retirement years.
  3. Help provide senior attorneys with a reason to want to retire.
  4. Provide career life coaching services to senior attorneys and help them develop other interests and hobbies.
  5. Help senior attorneys develop individualized retirement/succession plans.
  6. Provide financial incentives to those that retire by say age 70 in payout agreements.
  7. Implement phased retirement/wind-down options/approaches.
  8. Consider optional roles in the firm for senior attorneys after they retire and surrender their equity interests.
  9. Insure that the firm has in place competency/peer reviews for all attorneys including senior partners and Of Counsel attorneys.
  10. Insure that the firm has a program that effectively deals with underperforming attorneys.

Aging is a difficult time for all of us and it is normal not to want to think about age related issues much less to begin planning. Your role will be to help senior attorneys take baby steps and come to terms with aging in general.

Click here for our blog on succession

Click here for out articles on various management topics

John W. Olmstead, MBA, Ph.D, CMC

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