People are scared. Lawyers are asking themselves: Will AI take my job? Is this firm financially secure enough to survive a downturn? Will politics or new regulations destroy my practice area?
While these headline-grabbing issues merit due consideration, in times of significant upheaval and uncertainty, the most important thing you can do as a law firm leader is focus on the foundational elements that keep your law firm healthy. Given the relative ease with which lawyers can leave your firm—taking significant clients and reputation with them—losing important partners or groups of partners represents the single greatest threat to firm stability.
When an important partner or group of partners leaves, it can threaten a firm’s financial viability, reputation, and morale. This article outlines how to respond when such losses occur, including immediate action steps and proactive measures to strengthen the firm against future departures.
Communicate about the departure
"They didn't even tell us that Joe was leaving. I worked with him for 10 years, and then suddenly I copied him on an email and received a notice that he had left the firm. If they can't be bothered to acknowledge his contribution, I guess none of us are all that important to the firm."
Many lawyers feel demoralized by their law firm's lack of communication during partner departures. This communication vacuum represents a damaging unforced error that can increase the likelihood of additional departures. Academic research consistently confirms that employees appreciate and benefit from receiving updates from their leaders during a crisis. In contrast, silence increases speculation, anxiety, and rumors.
Partners may stay silent for many reasons. They could be busy notifying clients and managing the business aspects of the transition. They could be concerned about confidentiality, processing their own emotions, or simply don't know what to say. In such circumstances, it is helpful to agree upon a basic communication plan in advance. It can be something very simple, like the following:
On the day of departure:
Contact all partners whose practice is directly affected by the departure and notify them which partner and staff member will be taking the lead on managing various aspects of the transition.
Send an email to the firm or practice group, including these elements:
Acknowledge the departure directly: "Joe Smith is leaving the firm effective today."
Recognize the person's contributions: "Joe has been a valued member of our litigation team for seven years."
Wish them well: "We wish Joe all the best in his next chapter."
Address next steps: “If you were working with Joe on a matter, a partner will reach out in the next three business days to discuss how to proceed.”
Why graciousness matters:
If a lawyer is leaving to join a competitor, it's understandably difficult to be generous in your acknowledgment. But being petty or pretending they never existed damages your team far more than it hurts the departing lawyer. Remaining partners and associates are watching how you treat people on their way out.
Within 72 hours:
Task the firm’s financial professionals to create rough estimates regarding the financial impact of the departure, including optimistic and pessimistic estimates.
Schedule a meeting with the executive committee to address any financial concerns and next steps.
Firm leader and/or practice group leader calls partners to discuss implications of the departure, answer questions, and offer assurances regarding their role and importance to the firm.
Practice group leader calls each associate, counsel, and staff member whose work is directly affected by the departure to discuss how their work will be affected by the departure, and answer questions.
Note: The process of notifying clients and transitioning cases is beyond the scope of this article and must be conducted subject to ethical rules. The focus here is purely on maintaining communication and engagement among remaining team members.
Send a clear message that you value your lawyers and staff
Helping members of your firm feel valued is always important, but never more so than during a crisis. According to Gallup research, it is common for employees to feel that their best efforts are routinely ignored, and employees who feel unappreciated are twice as likely to say they'll quit in the next year.
While law firm leaders are already reaching out to communicate about the departure, it is also a good time to affirm to each person that they are truly and deeply valued by the firm.
Use specific examples. Tailor your words to specific individuals so they feel truly seen. For example: "I really appreciate how much you care about helping clients. You listen to them and explain issues in a way they can understand. You are unusually skilled at client management, and I want you to know we see and appreciate this."
Use the phone, video conference, or talk in person. In a crisis, connecting in real time is particularly important.
Task partners with calling the associates and staff with whom they work directly. Those partners will be better able to speak meaningfully to each person's contributions.
Strengthen the foundation before a crisis strikes
Reassuring lawyers and staff that you value them is important during any crisis and certainly in the face of departures. However, if lawyers feel disrespected or undervalued, they may view sudden compliments with cynicism. People are much more willing to tolerate difficulty and uncertainty when they work in environments where they feel genuinely appreciated. But those positive feelings must already exist when the challenge arrives. You cannot manufacture feelings in the midst of a crisis. Along with shoring up your firm's capital reserves or other fiscally responsible actions, consider that stepping up your efforts to create a culture of teamwork and appreciation is an important aspect of crisis preparedness.
Simple actions like listening to people’s concerns or saying “thank you” can go a long way towards helping team members to feel appreciated by their firms. A two-year Deloitte study of over 16,000 professionals found that three-quarters indicated that a simple "thank you" is sufficient to make them feel recognized for everyday efforts.
Every day, I talk to partners and associates who vacillate between wanting to leave their firms and feeling invested in staying. Here are examples where lawyers felt valued:
A partner is working with a toxic outside counsel who tried to damage the partner's reputation. The firm's executive committee backs up the partner 100% and fires the client.
A partner has health issues. His partners divide up responsibilities for his matters and make it as easy as possible for him to take care of his health.
Two partners have a dispute over origination credit. The managing partner takes time to listen to the more junior partner and offer advice.
A partner expresses a concern to the managing partner, who asks the partner to explain the issue at the next executive committee meeting.
When a partner is behind on finalizing time sheets, rather than sending numerous terse emails, the firm’s finance professional calls and asks if there is anything he can do to help.
Partners want to feel supported and appreciated. They want their perspectives taken into consideration. They want to feel they are in a real partnership. When people feel truly invested in their partners and their firm, they are much more willing to weather difficult times together rather than flee at the first sign of trouble. For more on creating a supportive workplace culture – the kind that improves team performance and retention, see The Business Case for Psychological Safety in Law Firms.
Conclusion
When crisis strikes—be it partner departures or other challenges—your job as a law firm leader is to deliver four essential messages to your team:
You are valued.
Here is the information you need.
We have a plan.
We will get through this together.
The future will always hold uncertainty, but when partners communicate openly among themselves and with other team members, the firm can harness its collective strengths to overcome obstacles and thrive in any environment.
Building unity begins with clear communication. Learn how 8am™ solutions for legal professionals, like 8am LawPay and 8am MyCase, can help your firm stay connected, transparent, and resilient through every challenge.