Incoming Law Firm Leaders Are Not Prepared for Industry’s Transformative Period

The Cost of Lawyer Leadership: What’s at Stake?

And make no mistake, the stakes are high. Industry experts estimate Big Law is losing over $10 billion per year in attrition and turnover. Seventy-six percent of lawyers say work environment contributes to mental health issues (ALM Intelligence) and productivity metrics — the good old billable hour — have dipped significantly over the past seven years. Compounding these financial and well-being concerns are mounting pressures on lawyers and professionals including such uncontrollable forces as generational change. Against this backdrop, law firms have an opportunity to distinguish themselves by investing — now — in succession planning. The firms that recognize leadership as a cultivated skill rather than an innate trait will be the ones that thrive.

What Leadership Succession Looks Like

There are four critical components to ensuring effective leadership for law firms:

1. Preparedness. Developing Current and Future Leaders
2. Willingness. Building a Culture of Collaboration
3. Measurement. Performance Management for Leadership Success
4. Reward. Compensation and Incentives for Leadership Transition

Step 1: Preparedness — Developing Current and Future Leaders

Effective leadership isn’t a natural byproduct of legal expertise — it is a skill that must be deliberately taught and nurtured. Law firms that acknowledge this reality and invest in leadership development are those best positioned for long-term success. An added advantage? Firms that prioritize leadership development for current leaders alongside those entering new roles demonstrate the power of lifelong learning and personal responsibility for investing in growth each and every day.

• Deploy assessments. Leadership begins with self-awareness. Psychometric tools, such as personality and leadership style assessments, help individuals recognize their leadership strengths, weaknesses and areas for improvement. Firms that incorporate structured self-assessments empower potential leaders to understand their impact and build emotional intelligence. These assessments not only help individual growth but also enable firms to create balanced leadership teams that complement one another’s strengths and give leaders insights to better understand not only themselves but one another.
• Link leadership training to strategic goals. Leadership training is not a standalone effort. The most successful organizations integrate it into their broader strategic plans, ensuring that future leaders align with the firm’s evolving vision, core values and long-term objectives. By embedding leadership development into day-to-day workflows and mentorship structures, firms reinforce leadership skills as an essential element of career progression. Training that includes business development, employee engagement, client relationship management and change management, equips future leaders with the necessary tools to navigate industry shifts effectively.
• Make the investment. Leadership development requires time, financial resources and mentorship. Firms must allocate budgets for leadership training programs, workshops and coaching to cultivate the next generation of leaders. Without meaningful investment, they risk being caught unprepared when key partners retire or transition out — leading to instability and loss of firm continuity. When firms make leadership training part of their culture rather than an afterthought, they create a strong, sustainable pipeline for future leaders. Establishing structured mentorship programs and cross-generational knowledge-sharing initiatives can strengthen leadership development efforts.

With millennials now dominating the workforce and Gen X comprising a smaller proportion of law firm leadership, firms must intentionally build their leadership pipelines rather than relying on the assumption that the next generation will naturally step up. Structured succession planning ensures a seamless transition of leadership while maintaining firm stability and client confidence.