LSAG Legal Briefs - Vol 2

SUCCESSION PLANNING – GENERATIONAL AGE BREAKDOWN: (PEW RESEARCH CENTER)

to maintain and grow profits for the shareholders of the firm. In 2018, 50% of respondents noted that their partners cooperate in their personal succession plan but need a bit of a push to do so. We saw an increase this year from 23% to 29% in firms’ “partners fully cooperating in succession planning” while indicating they are “happy to be a part of turning over their legacy.” The major reason that partners are hesitant to cooperate with succession planning remains the same as in past years – they simply do not want to retire. The second reason for hesitancy is due to financial reasons (which actually dropped from 23% to 17% this year) and the third reason is due to “lack of trust in turning their clients over to someone else.” This “lack of trust” response shows a 3% drop from 17% to 14%, confirming that attorney trust is being built from within, and therefore increasing attorneys’ comfort in turning over their business. Ego continues to play a big role in succession planning which directly impacts the willingness of attorneys and their firms to develop true succession plans. Diversity, Female Attorneys & Inclusion Initiatives With great optimism, the 2019 survey saw a 7% increase in firms noting that “now more than ever, diversity demands are impacting business opportunities and we take it very seriously.” No doubt this is impacting the way firms are looking at recruiting and retaining legal talent of all ages, genders, races, and more. However, it is also apparent that diversity is enough of a priority for legal sector clients that it factors prominently into the law firm selection process. There was a significant drop of firms noting that “client demands for

1928 (74-91)

1946 (55-73)

1965 (39-54)

1981 (22-38)

1997 (<22)

BABY BOOMERS

SILENT

GENERATION X

MILLENNIALS

GENERATION Z

SUCCESSION PLANNING – FIRMS WITH SUCCESSION PLANS IN PLACE:

Across the board we saw increased involvement in younger attorneys being integrated into succession planning from 31% to 34%.

Somewhat, we are working o it 25%

Somewhat, we are working on it 25%

No, we do not have a plan 14%

No, we do not have a plan 14%

27%

27%

Other 1%

Other 1%

Yes, w hav a formal plan th t is closely coordinated

Yes, we have a formal plan that is closely coordinated

Yes, but the plan is not formal or mandate this time 3 %

Yes, but the plan is not formal or mandated at this time 33%

HOW DIVERSE IS YOUR FIRM? (CONSIDERING RACE, GENDER, SEXUAL ORIENTATION, AND RELIGION)

5%

1

8%

5

19%

28%

4

2

3

40%

1

2

3

4

5

Not diverse at all

Somewhat diverse

Very diverse

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