Originally published in The Legal Intelligencer/law.com
"I think we're wholly unprepared, or we're unprepared to lead. And I think we're unprepared to be led.” —Former leader and partner at an AmLaw 100 firm
Incoming law firm leaders are not prepared—and the stakes have never been higher. As we enter one of the most transformative periods in the legal industry, marked by an uptick in the influence and power of talent, expanding adoption of artificial intelligence (AI), major political upheaval and the much-anticipated official entrance of a Big 4 accounting firm into the legal space, the importance and impact of strategic decision-making in the upper echelon of firms has never been greater. Beyond decisions related to competitive positioning and growth, leaders are being called on to make calls that may influence the very fabric of the legal realm for decades to come. There is a cost to this pressure—and few leaders are truly prepared.
Even though hundreds (or possibly thousands) of lawyers will step into leadership roles for the first time in 2025, law firms and leaders alike acknowledge they are unprepared for the transition. Professional development leaders rate their firms just 4.2 out of 10 in preparing for leadership transitions, according to "The Expanding Role of Professional Development in Law Firms" (Tilt, ALM Intelligence). Law firms are falling short in equipping new leaders with the essential tools, and resources necessary for success.
The result? An incoming cohort of leaders lacking the essential skills to effectively lead multimillion- and billion-dollar organizations through what promises to be one of the most transformative periods in recent history for the legal industry.
The Cost of Lawyer Leadership—What’s at Stake?
And make no mistake, the stakes are high. Industry experts estimate BigLaw is losing over $10 billion per year in attrition and turnover. Seventy-six percent of lawyers say work environment contributes to mental health issues (ALM Intelligence) and productivity metrics—the good old billable hour—have dipped significantly over the past seven years. Compounding these financial and well-being concerns are mounting pressures on lawyers and professionals including such uncontrollable forces as generational change. Against this backdrop, law firms have an opportunity to distinguish themselves by investing—now—in succession planning. The firms that recognize leadership as a cultivated skill rather than an innate trait will be the ones that thrive.
What Leadership Succession Looks Like
There are four critical components to ensuring effective leadership for law firms:
Preparedness–Developing Current and Future Leaders
Willingness–Building a Culture of Collaboration
Measurement–Performance Management for Leadership Success
Reward–Compensation and Incentives for Leadership Transition
Step 1: Preparedness—Developing Current and Future Leaders
Effective leadership isn’t a natural byproduct of legal expertise—it is a skill that must be deliberately taught and nurtured. Law firms that acknowledge this reality and invest in leadership development are those best positioned for long-term success. An added advantage? Firms that prioritize leadership development for current leaders alongside those entering new roles demonstrate the power of lifelong learning and personal responsibility for investing in growth each and every day.
Deploy assessments—Leadership begins with self-awareness. Psychometric tools, such as personality and leadership style assessments, help individuals recognize their leadership strengths, weaknesses and areas for improvement. Firms that incorporate structured self-assessments empower potential leaders to understand their impact and build emotional intelligence. These assessments not only help individual growth but also enable firms to create balanced leadership teams that complement one another’s strengths and give leaders insights to better understand not only themselves but one another.
Link leadership training to strategic goals—Leadership training is not a standalone effort. The most successful organizations integrate it into their broader strategic plans, ensuring that future leaders align with the firm’s evolving vision, core values and long-term objectives. By embedding leadership development into day-to-day workflows and mentorship structures, firms reinforce leadership skills as an essential element of career progression. Training that includes business development, employee engagement, client relationship management and change management, equips future leaders with the necessary tools to navigate industry shifts effectively.
Make the investment—Leadership development requires time, financial resources and mentorship. Firms must allocate budgets for leadership training programs, workshops and coaching to cultivate the next generation of leaders. Without meaningful investment, they risk being caught unprepared when key partners retire or transition out—leading to instability and loss of firm continuity. When firms make leadership training part of their culture rather than an afterthought, they create a strong, sustainable pipeline for future leaders. Establishing structured mentorship programs and cross-generational knowledge-sharing initiatives can strengthen leadership development efforts.
With Millennials now dominating the workforce and Gen X comprising a smaller proportion of law firm leadership, firms must intentionally build their leadership pipelines rather than relying on the assumption that the next generation will naturally step up. Structured succession planning ensures a seamless transition of leadership while maintaining firm stability and client confidence.
Step 2: Willingness—Building a Culture of Collaboration
Leadership transitions thrive in environments where trust and collaboration are deeply embedded in firm culture. Yet, many firms struggle with fostering a collaborative mindset, particularly when partners operate as independent silos rather than as a cohesive unit.
Understand the business case—Heidi Gardner’s research for "Smart Collaboration" shows collaboration leads to higher revenue, greater retention and stronger client relationships. Firms that frame collaboration as an essential strategy, not just a “nice to have”, gain competitive advantage. Diverse teams deliver better outcomes, more creative solutions and more informed decisions for clients. Encouraging cross-practice collaboration as a means of retaining top talent and boosting client satisfaction is a winning strategy for long-term success.
Evaluate collaborative tendencies—Some leaders naturally gravitate towards collaboration, while others must develop the skill. Psychometric tools and 360-degree feedback evaluations can help firms identify individuals who are predisposed to collaboration and those who may need additional training or support to foster a more cooperative mindset. Firms can also assess leaders’ willingness to delegate and share responsibilities—a critical factor in long-term leadership effectiveness. Leadership coaching programs can help develop these essential skills, particularly for those naturally inclined to be more wary of others.
Flex leadership styles to engage others—True leadership is not about command and control; it is about empowering others. Great leaders understand when to take charge and when to step back, allowing their teams to grow and take ownership. By introducing lawyers to the concept of leadership styles, law firms can encourage emerging leaders to flex—or change—their approach to engaging others to be more effective in dynamic situations and foster positive experiences among their teams. This strategy has an optimal impact on culture as well. For law firms, many of which are wedded to excellence and perfection, allowing transparency into mistakes and lessons learned can help to replace traditional competitive mindsets with ones dedicated to growth and encouragement.
In a remote or hybrid work environment, collaboration becomes even more crucial. Leaders must be proactive in creating opportunities for cross-team engagement, leveraging technology to bridge communication gaps and keep teams connected. Virtual collaboration tools, regular check-ins and team retreats can help maintain strong relationships despite physical distances.
Step 3: Measurement—Performance Management for Leadership Success
A well-structured performance management system aligns individual growth with firmwide objectives. However, few firms have a review model that incorporates human skills, including leadership, in a meaningful way. Fewer still have any formal system for measuring and providing feedback on the contributions and performance of partners, in particular. This dearth of a mechanism to effectively evaluate performance, especially with respect to skills critical for leading and managing the firm, has been the cause of many wasted hours debating whether Associates are truly deserving of promotion to partner or, perhaps worse, how to handle bad behavior, lone wolfs or underperforming partners. To achieve succession success, the establishment of clear expectations and a functioning mechanism to assess performance is a must.
Include leadership skills in core competencies—Make leadership a priority by adding critical leadership skills to the forefront of developmental objectives. Alongside the skills to craft an iron-clad contract, lead a powerful deposition or spearhead a due diligence effort, include the ability to delegate effectively, team engagement, time management and mentorship. Clarifying expectations to include these critical skills can ensure they warrant investment, time and attention.
Assess all attributes, not just financial performance—The best leaders are not necessarily the highest billers. When evaluating performance, firms should consider a balanced scorecard approach that includes mentorship, collaboration, innovation and business development alongside financial contributions. This ensures a holistic evaluation of a lawyer’s overall impact on the firm. It also opens the door for relevant feedback and an opportunity to identify and support high performers and future leaders with tailored coaching and growth opportunities.
Tailor expectations—Not every partner plays the same role, and not all leaders need to fit a singular mold. Firms should define clear leadership paths that allow individuals to lead in ways that suit their strengths. Some leaders may excel in client management, while others may thrive in spearheading strategy implementation or developing others.
Keep it simple—Overcomplicated performance metrics can dilute focus. Firms should hone in on the key indicators that truly drive leadership effectiveness, such as the ability to inspire teams, foster client loyalty and contribute to firm growth. Implementing real-time feedback mechanisms can further enhance leadership development efforts.
If performance metrics do not reflect leadership capabilities, firms will continue to see partners gravitate toward what they know—billing hours—rather than investing in their growth as leaders. A well-defined performance management framework ensures that leadership development remains a priority.
Step 4: Reward—Compensation and Incentives for Leadership Transition
Succession plans are often met with resistance when incentives do not align with individual interests. For any transition to be successful, both parties ultimately must adopt a “give a little, get a little” perspective and put the long-term interests of the firm before their own. That is no easy feat. Rethinking compensation models to accommodate succession is essential to ensure succession success.
Double-count contributions—Firms should reward both those stepping into senior or leadership roles and those mentoring successors. A system that acknowledges the value of succession planning ensures that senior partners are incentivized to pass on their knowledge rather than hoard responsibilities. This is, at its core, contrary to any eat-what-you-kill or purely formulaic compensation system. Subjective and closed systems will win out in the long-run as they allow for greater flexibility to accomplish succession objectives.
Make tough decisions—Some senior partners may be reluctant to relinquish control. Firms must be prepared to make difficult choices when individuals at the top are unwilling to transition leadership in a way that benefits the firm’s future. This may involve restructuring roles, adjusting compensation, or implementing phased transition plans. First try to appeal to those in these roles, emphasizing how their highest and best value to the firm has shifted and how their reluctance to loosen the reins risks loss of the very people they invested time and energy in grooming to step into the ranks.
Emphasize the ‘bigger pie’ concept—Leadership succession is not about taking away from existing partners but about expanding opportunities for everyone. When younger talent is developed, the entire firm benefits—not just the next person in line. Firms that embrace a growth mindset can create an environment where leadership transitions are seen as opportunities rather than threats.
By strategically embedding leadership development into the firm’s culture and aligning incentives with leadership progression, firms can ensure their long-term success. The best firms will not just prepare for transitions—they will embrace them as essential steps toward greater innovation and sustainability.
Reprinted with permission from the March 19th edition of the Legal Intelligencer © 2025 ALM Global Properties, LLC. All rights reserved. Further duplication without permission is prohibited, contact 877-256-2472 or asset-and-logo-licensing@alm.com.