Walker Clark
Worldview Archives
Transitioning to an Institutional Law Firm
Although there might be exceptions, “institutional” law firms appear to have been most successful in attracting and retaining international clients.
These are law firms that either never were traditional family firms nor were built on the vision, reputation, and hard work of a single founder. As a general rule, they are usually best capitalized to make long-term strategic investments. They also are most likely to have reliable and efficient decision-making processes. They have management structures and systems in place that, although not perfect, assure a reasonably consistent delivery of the highest level of professional excellence and client service.
Any law firm, regardless of size, can become an institution in its legal services market.
At the Crossroads
Around the world, many first-generation law firms have reached a pivotal juncture. Their founders—now in their fifties or early sixties—are beginning to contemplate retirement and the future of the practices they built.
Without a well-informed and realistic plan, a successful legacy can quickly dissolve once the founder steps away.
The Vortex Just Over the Horizon: Strategy, Succession, and Governance
Most of these firms are midsize firms (for their respective markets) that have enjoyed fast growth and financial success over the past 15 to 20 years. Their partners feel, with considerable justification, that they "are at the top of their games."
As these same partners look into the middle distance of 2020 to 2025, the most perceptive of them see serious problems ahead. Another of our clients recently referred to this as "our vortex — a place just over the horizon were several forces could come together in a way that could put in jeopardy everything that we have achieved and maybe even sink us."
The Succession Balance
First-generation law firms face a special challenge when planning and managing the transition of the firm from the founding partners to the "next generation.”
How strong is your bridge to the future?
We expect to see an unprecedented number of law firms go through their first generational transition of leadership between now and the mid-2020s, as founding partners retire and the next generation assumes leadership of the firm.
This will not be a smooth transition for many small and midsize law firms, especially in emerging and recently emerged legal markets in Asia, Africa, and Latin America.
This post is not about the Chambers and Partners Awards for Excellence.
Like some of you, when I reviewed this year's short list for the Chambers and Partners Awards for Excellence for Latin America, at first I was a little surprised by some of the very good firms that were not finalists for these prestigious and coveted awards.
This post is not an attempt to debate or explain the short list selection criteria that the awards team at Chambers and Partners uses. Instead, I want to share two observations about the firms that did, and did not, make the list.
