“Life is a series of natural and spontaneous changes. Don’t resist them; that only creates sorrow. Let reality be reality. Let things flow naturally forward in whatever way they like.”
Laozi
Chinese Philosopher
Succession (a friendly word for moving on) in business happens in one of four ways:
- Decision by management
- Unforeseen intervening events beyond the control of management or the individual
- Decision by an individual
- By mandate under a contract
If management precipitates the decision, it will invariably surprise the individual and create animosity. At that point, planning is nearly impossible. While the wisdom of the decision may be wholly justified, no one likes to be told it’s time to leave by colleagues who are, more often than not, younger than they are. No matter how you spin it, it is the equivalent of being fired. Terminating an equity partner in a law firm usually requires cause and a vote of the partnership, so disgruntled management will instead try to force a lawyer out by reductions in salary or benefits. Nothing could be more demeaning, even when the reductions are justified. As far as I’m concerned, the worst of the four reasons succession occurs is management’s decision (or indecision).
The saddest cause of change is, of course, unforeseen events: illness, death, disbarment, crushing losses, or colleague departures that result in lost business are some examples. No one can plan well for these events, but letting fate take its course is as poor a plan as one could have.
While a decision by an individual is fine, that decision often comes too late. None of us believes we are a commodity that expires. I certainly thought that way. Lawyers think they can hold on forever if they keep their wits or at least their health. You might call them the “Energizer Bunnies.” While some accept the inevitable departure decision gracefully, the “Energizer Bunnies” are probably too late for a smooth change.
The last reason is embedded in the firm’s contract with a partner, particularly among those with equity status. Most partnership agreements have provisions addressing departure and mandate a change in status at a set point in time. While firms need to be careful with such provisions under employment protection laws, they can deal with it through careful planning. If all the parties know about it, partners must comply. The smart ones plan for it. I firmly believe a contractual mandate is the best option. Had losing equity status not been embedded in my partnership agreement, I would have probably delayed the inevitable to a point where the timing would have been bad for both the firm and me.
