You may have already read the Office of Bar Counsel’s article on succession planning. Or, you may have seen our program on succession planning in collaboration with the Board of Bar Overseers (BBO), Office of the General Counsel.
If you are struggling with succession planning, you can at least get your practice ready for a smooth transition in case of sale, retirement, or disruptors such as death, or disability. Even if you are not mentally ready to start on an actual succession plan, there are steps you can take that will help you have a smooth transition. The Ohio Board of Professional Conduct recommends that you follow these best practices:
- Routinely back up all digital records of the practice. Learn more about backups here.
- Maintain a calendaring system with all court and filing deadlines and follow-up dates.
- Maintain current time and billing records.
- Properly maintain IOLTA records and ledgers. Mass. R. of Prof. C. 1.15 governs trust accounts. Read the latest on trust accounts from the OBC and, as the article states, clean up your trust accounts NOW! Need a refresher on trust accounting? Watch this trust account training from the OBC. Please note that Rule 1.15 has been amended, and the changes will take effect on September 1, 2024. See Mass. R. Prof. C. 1.15 (effective date September 1, 2024).
- Thoroughly document client files and keep them organized.
- Follow the firm’s client file retention and destruction policy. Don’t have one? The Office of Bar Counsel (OBC) at the BBO recommends something like: “[Lawyer] will maintain [Client’s] file for [6] years after this matter is concluded. [Client] may request the file at any time during, upon conclusion of, or after conclusion of, this matter. [Six] years after the conclusion of this matter, the file may be destroyed without further notice to [Client].” You should include this policy in your fee agreements. If you have not already done so, communicate this policy to current and former clients in writing. Mass. R. of Prof. C. 1.15A governs client files. Explore OBC’s articles on this topic and clean up your client files NOW! New Rule on Client Files Will Provide Clear Guidance for Lawyers and Talking Trash Recycled (Again). Please note that Rule 1.15A has been amended, and the changes will take effect on September 1, 2024. See Mass. R. Prof. C. 1.15A (effective date September 1, 2024).
- Create and maintain an office procedures manual. You do not need to write a manifesto. A clear and detailed outline could suffice. You can use Microsoft Word’s dictation feature (shown below) to start creating your manual (go to the Home tab; the dictate button should appear in the ribbon).
You can also use artificial intelligence (AI) to get your first draft of the manual. Remember that you should not be entering confidential or sensitive information into open-source AI tool. Another option is to obtain templates like the ones offered by the American Bar Association in its book Law Office Policies, Procedures, and Operations Manual, 7th edition.
The Ohio Board of Professional Conduct also recommends that your office procedures manual document at least:
- The names and contact information for office personnel, financial institutions, accountants, landlords, vendors, and insurance providers. Make sure you include where to find important documents, like insurance policies, leases, and financial documents.
- Time and billing procedures and software.
- How to generate a list of active (and closed) client files, including client names, addresses, and phone numbers.
- How are files organized and where they are stored.
- The firm’s client file retention and destruction policy.
- How to access the firm’s calendaring system.
- Where and how client ledgers and other IOLTA records are maintained.
- How the firm determines conflicts of interest.
Other items that you should keep in mind, per the Ohio Board of Professional Conduct, and that you may include in your manual are:
- How to access information about the status of open cases.
- The location of accounts payable/receivable information and billing/collection practices.
- Detailed information (leases, insurance, taxes, etc.) needed to close a practice.
If you have employees, you should include in your manual or somewhere else how to make the next payroll.
If there is a disruption in your practice, someone would also need access to log-in and password information for office computers, mobile devices, voicemail, cloud storage, billing systems, calendaring system, email (including server addresses and passwords), online banking, social media accounts, your website, and other websites the law office relies upon on a daily basis. When it comes to electronic information that is password protected, industry leaders recommend that you use a password management tool. You should shop around and do your research when selecting a password management tool.
If you use two-factor/multi-factor authentication, it is recommended that you also address how to access information using that service. For example, addressing how to access your personal device or email in order to complete the two-factor/multi-factor authentication process and saying who runs the application(s) on your end if it is not you. It is also recommended that you “download backup or account recovery codes” and “include information on who’s running these digital assets.” Some authentication services provide backup or recovery codes at the time you set up the service. These codes are like a safety net in case you lose access to your primary authentication method (like your phone). You should explore whether it makes sense for you to record these codes somewhere for someone else to access in case of a disruption in your practice. Remember, these codes are like spare keys for your digital accounts. Keep them safe!
You should also contact your bank in advance to determine what documents are acceptable for transferring IOLTA and operating accounts to a successor lawyer or designee in case of a disruption to your practice.
If your practice is incorporated and you are the sole member, you should seek legal advice on whether the corporation needs to address when and how a successor lawyer needs to step in.
If your office manual contains sensitive information, remember to keep it in a safe place!
Need a checklist and a form to get you started? Consider this Checklist on How Prepared is your Practice and Law Office List of Contacts developed by the North Carolina Bar Association. For more practical tips and further guidance, you can schedule a free and confidential consultation with a law practice management advisor at LCL.
RELATED RESOURCES:
Succession Planning Resources (LCLMA)
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Lawyers, law students, and judges in Massachusetts can discuss concerns with a licensed therapist, law practice advisor, or both. Find more on scheduling here.
