Approximately 30% to 40% of law firm attorneys are composed of senior partners. Law firm bottom lines could significantly benefit if firms created a solid plan to maximize the revenue they bring into their firms.
It is obvious that they have the experience, connections, and ability to mentor more junior lawyers. Senior partners are also responsible for generating a significant amount of the revenue that comes into their firms. So why don’t firms have a deeper focus and commitment to tap into expanding their potential to generate more revenue and success?
The most obvious place to focus is the lowest-hanging fruit to support these senior partners. These gambits are:
- Provide high-level business development (BD) coaching to successful rainmakers who would like to significantly increase their book of business. There are a myriad of consultants who provide BD coaching. When a firm selects a coach to work with this coveted group of successful partners, consideration should be given to hiring a former practicing attorney who developed a significant book while practicing and has the wisdom and chops to work with these mature and successful attorneys.
Retired partners who have proven their success often make impactful coaches offering suggestions, strategies, and tactics to catapult these senior partners to grow their business to a much higher level. Working with accomplished senior partners who are motivated to grow their business is the obvious place for these experienced and successful consultants to dig in.
- Working with senior partners close to retirement to assist them in successfully transitioning their book of business to the next generation of partners is critical to a firm’s revenue growth. All too often, partners retire with little or no notice. Clients are less likely to stay with a firm with no retirement succession plan in place. It takes time and effort to slowly transition business to the next generation of partners and create strong relationships with clients.
When retiring partners disappear on short notice, law firms often have to replace lost or dissatisfied clients’ business. According to Bain & Company, it costs 6% to 7% more to obtain new clients than it does to retain existing ones. Senior partners are the golden ticket for retaining business by crafting solid Retirement Succession Plans.
What is your firm’s management committee doing to tap into this revenue before it is lost?
