Why Law Firms Keep Failing at Succession Planning and How to do it Right — Canadian Lawyer

Consultants say succession plans are often reactive, and law firms are better at planning for growth than for exits.

By Branislav Urosevic – Canadian Lawyer

This article, published May 29, 2025 in which I was quoted, appears in part below.

Being risk-averse, inert, and afraid are among the top reasons law firms fail to develop effective succession plans. While the topic has long been relevant, it’s become more urgent as a wave of baby boomer lawyers prepares for retirement.

That’s the warning from legal consultant Heather Suttie and Michaela Krell, the national director at the legal recruitment firm Life After Law.

Suttie says that although many lawyers know the importance of succession planning, it often takes a backseat to the daily pressures of running a legal practice – meeting deadlines, servicing clients, and managing casework.

“They focus on bringing clients in, but they don’t focus on their lawyers going out… Nobody lasts forever, and that’s why you have to have a good plan in place,” she says.

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Law firm size matters

Suttie offers a different perspective on the role of firm size in succession planning. In her view, solo and small firm lawyers are often more attuned to the need for transition because they carry the full weight of the business.

She says these practitioners manage everything – from business development to legal work to office upkeep – which gives them a deeper understanding of their firm’s long-term sustainability.

She argues that succession can be less effective in large firms due to layers of administration and a diffused sense of accountability. Planning is often assumed to be someone else’s job – until it’s too late.

“Stuff can fall through the cracks, and it’s often pushed off.”

Planning ahead of time

Suttie advocates for a strategy she calls “cohort laddering” – a long-term approach that matches law firm lawyers with their counterparts in the clients’ legal departments based on seniority and tenure.

Like steps on a ladder or rungs on an escalator, she says these cohorts move upward in tandem, building familiarity and trust as they advance in their respective roles.

As the most senior cohort in both organizations approaches retirement, the next generation – already acquainted – naturally steps into place.

For this process to work, she warns, law firms must put in time and intentional effort.

How it usually plays out

Suttie says that even in firms that get the early steps right, there’s often a stumbling block at the leadership handoff. She adds that many still default to selecting successors based on tenure alone and warns that “the person with the whitest hair is not always the best choice.”

Suttie cautions that leadership positions shouldn’t be awarded due to seniority or popularity. Successful leaders are those who understand external markets, have the right people and structure in place, and align firm strategy with client needs.

“What goes on outside the law firm is more important than what goes on inside,” she says. “Because it’s the outside that pays for the inside.”

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The full story is here on the Canadian Lawyer website.

As a follow-up, my June 2025 opinion column on Slaw will examine why succession planning is a critical yet often ignored business strategy, how failing to plan results in planning to fail with outcomes that include both client and legal talent departures, and what to do about it.