Convince audience to plan for life's transitions. Retirement is not an ending, but a beginning, a self-renewal.

1. The Legal Connection
Transition Planning for Attorneys
Lunch-n-Learn webinar
January 7, 2015
@12:30 PM ET
Stephen Gallagher, MSOD
Principal,
LeadershipCoach
www.leadershipcoach.us
sgallagher@leadershipcoach.us
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2. Stephen P. Gallagher
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3. The Aging of the Workforce
and why care?
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4. Aging of the Workforce
The number of people age 65+ will more
than double, increasing from 13% of total
population in 2010 to 21% of total in
2050.
THE AGING US WORKFORCE
A Chartbook of Demographic Shifts
Stanford Center on Longevity
July 2013
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5. 5
Four Stages of Aging
• 65 – 74 Young old
• 75 – 84 Middle old
• 85 – 94 Old old
• 95+ Frail old
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6. Aging of the Workforce
More than a quarter of all Americans and two out
of every three older Americans have multiple
chronic conditions, and treatment for this
population accounts for 66% of the country’s
health care budget.
The State of Aging and Health in America 2013
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7. 7
Retirement
The traditional meaning of retirement has
been a single event – “withdrawal” from an
office or active service; to seek privacy or
seclusion.”
Webster’s Dictionary
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8. Structuring a Retirement Plan for
Senior Lawyers
• Research shows that most people spend more
time planning for a two-week vacation than for
their retirement.
• While financial planning is important, it’s just as
important to think about all the other aspects of
life that are impacted by retirement.
• How to handle changing relationships with family
and friends, or the desire for personal
development and growth?
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9. WHO SHOULD BEGIN THIS
JOURNEY ?
How do you transition away from
full-time law practice – possibly
towards full retirement?
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10. 10
New Thinking About Retirement Planning
• Many lawyers who are reaching towards the
final stages of their careers do not necessarily
wish to hang up their briefcases and leave the
law.
• You need to begin thinking of retirement as a
series of developmental steps taken over a
period of time.
• There are no set formulas for developing a
Transition Plan.
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11. Transition
Transition is the inner process through
which people come to terms with a change.
The process takes place over a period of
time as they let go of the way things used to
be and reorient themselves to the way that
things are now.
William Bridges, author of
“Managing Transition: Making the Most of Change”
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12. Transition
ENDING - Letting go of the old ways.
NEUTRAL - Going through an in-between time
when the old is going but the new is not fully
operational.
NEW BEGINNING - This is when people
develop the new identity, experience the new
energy, and discover the new sense of purpose.
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13. Endings, Neutral Zone and New
Beginnings
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14. 14
Transition/Succession Planning
• Could it be that the same senior partners
that many firms are now looking to sunset
may become the untapped resources firms
will need to lead the talent pool of the
future?
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15. Who is in our Virtual Room?
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16. 16
William McArthur - Founding Partner –
Age 74
• Great Rainmaker in his day.
• Tends to promise more than the
firm can deliver.
• People he works with are
growing concerned about his
health and his billable hours.
• He has been known to fall
asleep in client meetings.
• Promises to live forever.

17. 17
Richard Bart- Founding Partner –
Age 70
• Has never really kept time.
• Prefers working alone.
• Richard has driven many
associates out the door over
the years.
• His one partner, Stephen
Cave has accused him of
retiring 10-years ago, without
telling anyone.
• Promises to live forever.

18. 18
Stephen Cave – Founding Partner –
Age 68
• Richard Bart’s partner and his
brother-in-law.
• Always involves associates in
client meetings.
• Strong billable hours, but he
would like to transition away
from full-time practice.
• His greatest fear is that the
firm would fold if he stepped
away
– probably true!

19. 19
Al the Partner – Lateral Hire – Age 80
• Comes to the office for several
hours one or two days a week.
• Was highly regarded in his area
of practice.
• Very involved in community
activities.
• Has not planned well financially
for retirement
• Has few outside interests

20. 20
James Smith – 58 year old – Partner
• Has aging parents who live in
Ontario – their health is starting
to deteriorate
• Feeling sandwiched
• Has a spouse who has just
retired and wants to travel
• Doesn’t want to retire
completely, but wants to work
fewer hours and be able to take
blocks of time off

21. 21
Duke of Hamilton – Partner 10
Years
• Appears to be the logical next
choice to run the Firm.
• Has absolutely no interest in
administrative affairs of the
Firm.
• Currently experiencing
difficulties in his personal life.

22. 22
Mary – Partner Eight Years
Has Other Interests Outside the Law
• Has a growing book of
business.
• Commits considerable time to
charity work.
• Hoping to qualify for the Nova
Scotia Women's Keelboat
Championship Team

23. 23
Sue – Partner 4-Years
• Talented young partner who
has two children in second
grade and kindergarten.
• One of her goals this year is to
be appointed to the
Compensation Committee.
• Believes in mandatory
retirement for all senior
partners at age 65.
• Plans to amass a fortune by
age 50, so she can retire early.

24. 24
Let’s agree on what Transition Planning
Should be
• be the beginning of something different.
• hold new prospects of growth for each of
us.
• be approached as a new journey taking
place over a period of time.
• be set in motion way before you intend to
use it.
• be shared with family, friends and
business partners.
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25. Let the Journey Begin
One of my goals for us today is to
convince you to commit to start a
transition plan for yourself that would
include setting specific action goals that
you can work on over the next several
months.
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26. 26
Self-Exploration
Exercise I
• When you imagine being retired, what picture comes to
mind?
• What do you anticipate adding to your life when you
retire?
• What do you envision giving up when you retire?
• What ideas do you have about what your retirement
should be?
• Imagine not retiring. What image comes to mind? Is it
positive? Negative?
• Whose retirements have you observed?

27. Managing Transition is not always
for retirement, but it is for Renewal
• Transition management is based on the
idea that the best way to get people
through transition is to affirm their
experience and to help them to deal with
change.
• Transition management is not always for
retirement, but it is always used for
renewal purposes.
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28. Managing Transition
Transitioning away from a full-time law
practice, selling a practice or closing a law
practice should be organized and guided
by a simple but comprehensive written
plan so that all necessary steps are taken.
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29. Washington State Bar
Association
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2001 2011 Percent Change
ACTIVE MEMBERS 22,392 28,864 28.90%
ACTIVE IN WASHINGTON 19,267 23,611 22.50%
WESTERN WASHINGTON 16,690 20,566 23.20%
EASTERN WASHINGTON 2,577 3,045 18.10%
OVER 60 YEARS OLD 1,617 6,616 309.10%
21 TO 30 YEARS OLD 1,638 2,138 30.50%
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30. 30
Nova Scotia Barristers’ Society
2008 - Member Survey
481 of our 1825 practicing members
(26.35%) have been practicing for more
than 27 years.
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31. 31
Nova Scotia Barristers’ Society
2008 - Member Survey
Of the sole practitioners with more than 27
years at the bar:
– 80.4% have no plan in place to deal with existing clients
– 77.3% have no arrangements to deal with long-term storage of
files
– 70.0% have no plans in place to deal with current staff
– 64.5% have no plans in place to deal with financial demands of
practice (e.g. – rent and other payables/inability to practice)
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32. 32
Why Establish a Transition Plan?
-To protect your client’s interests
-To maximize the value of your practice
-To minimize financial risk and emotional
upset to your family
- For sole practitioners, this program is
particularly important.
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33. 33
How do you see your own Transition
Taking Place?
 Reduced hours?
 New associates or partners?
 Sale?
 Close out?
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34. 34
How do you see your own Transition
Taking Place?
 Office and File Organization
 Trust account balances
 File Retention and Destruction Policies
 Insurance
 Assisting Lawyer
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35. 35
Each Approach is Different

36. Special Needs of Sole
Practitioners
Assisting Lawyers
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37. an Assisting Lawyer
An individual who will step into your
practice and deal with it on either an
emergency or a long-term basis in the
event of your disability or death.
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38. Let the Journey Begin
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39. Months 1, 2 and 3
Compile list of names, addresses, phone
numbers, and email addresses for all staff.
Keep this in a secure place outside the
office, and make this available to another
person.
Compile master list of all clients and all
open matters.
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40. Months 1, 2 and 3
Secure all computer records and make
sure you have a backup copy stored
outside the office.
Document the procedures for restoring
these files.
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41. Months 1, 2 and 3
Examine trust account to make sure all
documentation is up-to-date.
Pay particular attention to balances that
you have been holding for more than 30
days.
Examine leases and service contracts and
other outstanding liabilities.
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42. Months 1, 2 and 3
For all new work, prepare a memo
outlining the relevant facts, deadlines,
opposing lawyer(s), and important
elements involved.
Select a manageable number of active
matters each week, and prepare a memo
outlining facts about each case (five a
week).
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43. Months 1, 2 and 3
Select a manageable number of closed
files each week and remove them from
Active Matter list.
Work to resolve any open question related
to outstanding bills.
If you have partners, make sure another
partner assumes responsibility for each
client and every open matter. (five a week)
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44. Months 1, 2 and 3
Identify a colleague who agrees to serve
as your Assisting Lawyer, so you can
begin working together on developing
succession plans.
Discuss how the Assisting Lawyer will be
paid and at what rate.
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45. Months 1, 2 and 3
Develop a written plan or checklist for
yourself to follow.
Begin sharing your transition plan with
family, key friends and clients.
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46. Months 1, 2 and 3
Stay away from the office for specified
periods of time, to allow others to assume
greater responsibility.
Did I say begin sharing your transition plan
with family, key friends and clients.
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47. Gallagher’s Transition
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48. 48
Transition Planning Resources
• Planning Ahead Guide, New York State Bar
Association publication
• Turning Out Your Lights: Planning for Closing
your Law Practice, North Carolina Bar
Association
• Rich Dad, Poor Dad by Robert T. Kiyosaki
• Younger Next Year: A Guide to Living Like 50
Until You're 80 and Beyond by Chris Crowley
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49. Thank you for participating
in today’s program
Stephen P. Gallagher
sgallagher@leadershipcoach.us
610-660-0218
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