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Thursday, May, 13, 2010

Kathy G. Gallo (Marshall Goldsmith Partners LLC) examines leadership succession planning in law firmsonstruction projects to end in dispute

PLI: What are the primary challenges of effective succession planning, development, and execution for law firms?

KATHY G. GALLO: Our views on the challenges of effective succession planning, development, and execution are informed by our work with many corporate leadership transitions and by more limited experience with professional service firms. Though unique in specific ways, most succession efforts share some common challenges.

Rarely is adequate thought, time and effort put into succession planning ahead of the need, for reasons including

Unlike more technical or hard skills (e.g. finance, operations, marketing, legal) what effective leadership is — and in particular, how one develops leadership skills — is not top of mind for many of those who make or influence leadership succession decisions
In general, we are much more comfortable measuring what a leader has achieved than how they have achieved it. This is especially true at the senior levels of many organizations, where limited or no objective performance evaluations are conducted beyond an assessment of quantifiable business metrics (e.g. sales, market share, EPS, billable hours, etc.).
This reflects the lack of well defined and well accepted competency models which include specific leadership skills and behaviors for senior roles. Some exceptions include mature management consulting and accounting firms with unambiguous up-or-out policies.
Even in organizations where there are well established competency models in place, other more emotional concerns prevent proper planning for succession

Assumed consequences for prematurely signaling to a preferred successor(s) (e.g. inappropriate behavior of the successor, loss of valued leaders who expected or hoped for the role, general distraction created by campaigning, rumors, etc.);
Fear that prematurely signaling externally creates an expectation that if unmet or changed subsequently, will lead to concerns that there is a "problem" (e.g. financial analysts, media, customers, or clients expecting one outcome and then learning of another);
The near impossibility of keeping confidential almost any meaningful succession effort.

Even when succession planning is conducted in a timely way, the challenge of properly assessing and developing a preferred candidate(s) is often given inadequate attention.

Although a "readied" successor requires many different types of attention and support, there is often no clear development plan, or if there is a plan, there is insufficient accountability for executing it
A robust development plan includes at least the following elements

An objective and holistic assessment of candidates’ readiness, with identified development needs communicated candidly to candidates, including when feasible, an honest assessment of prospects for succession. [Note — Where there is an intent to also consider external candidates, internal candidates should be made aware. In almost every case that we’ve seen where an attempt was made to keep awareness of an external search from internal candidates, internal candidates have become aware through their personal networks, breaches of confidentiality internally, or through a search firm’s disclosure) leading internal candidates to distrust of the process overall and in some cases to leave prior to a decision.]
Specific plans for providing support of

Incremental experience that would enhance a candidate’s readiness (e.g. new role responsibilities, assignment to a project or committee, assuming leadership for a key strategic decision)

Development of new or different skills/ behaviors (e.g. through media training, leadership coaching)

Addressing the unmentionables (e.g. attire, grooming, etiquette)

Apprenticeship — what can be learned from the incumbent? (e.g. mistakes, triumphs, relationship strategies, stories)

Exposure — who needs to meet or see more of the candidate? (e.g. firm members at large, key customers/clients, investors, capital markets, Board)
Some sense of the decision making (e.g. process, timing, influencers)

One additional element of effective leadership succession that is often neglected is the need to provide appropriate support for the outgoing leader, especially in cases where he/she is leaving the organization

Transitioning out of a senior-most role is an emotional event which most transitioning leaders have no prior experience with
Some are so ready to move on (or return to a "doing" role) that they emotionally leave before the transition takes place
In other cases, senior-most leaders have very mixed emotions about leaving and are prone to swoop in and out of involvement leading up to, or even during the transition
Increasingly, when asked to provide succession readiness coaching, our coaching efforts are spread between the successor and the incumbent

In law firms, the prevailing practice of naming a new Firm Chairman seems to focus on appointing an individual known to be an exceptionally good lawyer and/or client developer to assume the role.

This practice may lead to appointment of unprepared leaders who have simply been focused on other priorities
With such previous records of success, a leader will likely believe that he/she can "figure it out"
As with any role at the top, there may be early blind spots or a reluctance to ask for help

Best practice would include, at a minimum, providing targeted leadership coaching to identified succession candidates, using well developed techniques for behavioral change.

Identify a few, important development goals (e.g. develop a more inspiring presence in front of large audiences; expand proficiency with delegation; develop ability to coach and develop direct reports);
Share the goals with colleagues who have the appropriate line of site and a willingness to help you develop — and ask them to help;
Be willing to take some risks in practicing new behaviors and to stay disciplined to the point of sustained change;
Assess whether the desired changes are being noticed.

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