Next Generation Next Destination

TRANSITIONING OUT IN RECESSION TIMES

The severe recessionary economy has led to creation of a variety of working arrangements as people consider every opportunity to keep working. Some recently laid off people find project work with their former full-time employer, providing a source of income and a way to keep involved, while the employer benefits from the services without having to increase  full-time headcount.

For individuals on the older end of the spectrum it is not exactly phased retirement, but it shares some of the characteristics. The individual is no longer a partner or executive in a senior position, but in addition to performing services directly may be transferring knowledge that otherwise would have been lost to the next generation.

While this has the potential for a win-win, the transition can be tricky, especially for the individual assuming the new, usually reduced, status. Expectations need to be clarified. The working agreement probably should be reveiwed by an employment lawyer for protection and clarification. Emotional discomfort through a readjustment period can be expected. Relationships with former colleagues are likely to change and the office politics may appear different. Others may resent that they didn't get the work.

In this situation, expect to have to prove yourself and the value of your work, especially if the responsibilities are different from the former ones. You need to show you are a team player and put in extra effort. But be careful not to feel you are taken advantage of (or let that happen).

On the positive side, these phasing out or project work arrangements can provide desirable flexibility to individuals who have worked intensely for many years. They enable a person to stay gainfully employed, still engaged in work that may be challenging and personally meaningful and connected to colleagues.

Can you share experiences from your own organization?

Phyllis Weiss Haserot   www.pdcounsel.com

SUCCESSION PLANNING: PITFALLS FOR ASPIRING LEADERS

The previous post looked at what emotional obstacles can get in the way of an incumbent making a gracious transfer. Now let's look at what can trip up the heir apparent who expects or is expected to take over. Marshall Goldsmith says in his book, Succession: Are You Ready?  that smooth sailing can be threatened by poor relationships with a range of key stakeholders. These include:

*  Difficult relationships with peer competition who may want the spot - what's in it for them to back someone else? * 

*  Ambitious direct reports; they must be treated well.

*  Key clients of the firm must be cultivated, not alienated in any way.

*  Rapport with suppliers, such as bankers, who can act as partners must be built and nurtured.

*  The incumbent must like the aspiring leader in order to lend that important support.

*  Good relationships with any board of directors or advisers are also crucial as they can be very influential in choosing successors.

If the candidate or heir apparent alienates any of these influencers, they may be cut down in their tracks. A warning: Don't start acting like or assuming you will be tapped for leadership. Arrogance, a slip of the tongue or an unguarded e-mail can kill an aspiring leader's chances.

LOSS OF IDENTITY IN SUCCESSION & TRANSITIONING

Few people talk about "the human drama of succession" according to Marshall Goldsmith, one of the world's most respected executive coaches, in a recent teleclass and in his new book, Succession: Are You Ready?   I think it's the pivotal factor and falls into what we call the "personal bucket" of transitioning planning. Why do many incumbents find it so hard to "let go" and leave willingly and gracefully?

There are 3 fairly obvious factors:

*  They see money as a measure of their worth (rather than what it can buy)

*  Loss of power and attention

*  Feeling like a "used to be" - loss of status

And 4 that go deeper into the individual's emotional make-up:

*  Loss of their meaningfulness and impact

*  Interruption of their ability to contribute - potential contribution

*  Loss of the happiness they felt in the job

*  Loss of relationships at work.

All 7 add up to a loss of personal identity. It can be so severe that they can sort of "freak out" near the end of their tenure.

Phyllis Weiss Haserot    www.pdcounsel.com

MAGIC CIRCLE PARTNERS STILL RETIRE EARLY

The very prosperous London-based law firm Slaughter and May announced that 52 year old corporate partner Christopher Saul was elected to a five year term as the firm's leader, known as the "senior partner." He is a lifer at the firm and in May will succeed Tim Clark, another corporate partner, who has led the firm for seven years.

Clark will retire from the firm after practicing there for 34 years. but at age 57, he is not retiring from work. He says he is considering a number of job offers, but none of them are in the legal sector. With the firm's 2006 profits-per-partner of $2.5 million, he is likely to be in good financial shape whatever choice of next destination he makes.

So far it is not unusual for partners in the Magic Circle (highest ranked London-based law firms) to retire from the firm early but not retire from work. These Baby Boomers have a lot of good years ahead of them for new careers.

However, in the case of Clark and Saul, only five years apart in age, the baton is not passing to the next generation, and the management philosophy and strategy appears to be remaining the same.

Phyllis Weiss Haserot       www.pdcounsel.com

SUCCESSION AND PARTNER TRANSITIONING PLANNING: A COMPELLING ISSUE FOR OUR TIMES

"Demographics are our destiny," reinvention is the new retirement," "win the talent wars" and be "the employer of choice."  Recognizing the challenges and opportunities, Practice Development Counsel's *Next Generation, Next Destination* program was developed by Phyllis Weiss Haserot and Richard T. McDermott in 2005 to achieve advance transitioning planning to benefit both senior partners and the professional growth of younger partners as well as their firms overall.

Welcome!!! Visit and subscribe to this blog for continuing insights on how to do it right and make your organization a better, more profitable and more successful workplace for all the generations of workers and clients. Please offer your comments and contribute to the discussion.

GENERATIONAL CHANGES IN MANAGEMENT

While my research has not uncovered any source that has tracked the ages of Managing Partners, Chairs and CEOs, my empirical observations indicate that we have been seeing in the last year or two a shift in newly selected top management from the older Baby Boomers in their late 50s and early 60s to the younger end of the Baby Boomer spectrum, approximately age 43 to 49. Of course there are management changes somewhere every year, but my gut - and my eyes and ears - tell me we are in the midst of a greater shift. [More about this to come in future posts.]

So I took notice this morning when I read of the election of a new chairman of McGuireWoods LLP, a large law firm with several offices and based in Richmond, VA. The new chairman, Richard Cullen, is 58 - and he succeeds the 72 year old chair, Robert Burrus, who served as chairman for 16 years. So this represents a generational shift, but not to the younger Boomers.

Significantly also, Mr. Burrus is continuing to practice law. It appears that his firm continues to value his contributions and has no mandatory retirement age requirements. Many firms that don't require people to retire from the firm by a certain age, often age 65 or so, no longer permit the individuals to hold office or vote as an equity partner beyond that age even if they can continue to practice with the firm.

Have you noticed any particular age related management trends?

Phyllis Weiss Haserot   Practice Development Counsel   www.pdcounsel.com