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Share Your Trade Secrets - Giving New Principals the “Skinny” on How to Succeed

You’ve helped groom your star associates for years and now you’re ready to reward them for their hard work and commitment by naming them principal. But you know it’s only the beginning. Associates have many adjustments to make if they’re going to successfully transition from associate to principal.

You can help by encouraging new principals to take control of their long-term success now by setting goals, developing skills, bringing in new business and measuring their own progress.

Training

Being promoted to principal means the associate must change his or her mindset about issues that affect the practice’s growth and development of client relationships. It’s about thinking like an owner. So it’s important to train new principals to think and act like owners in everything they do, particularly in the following areas:

Strategic plan and firm management. Don’t leave the task of strategic development to senior principals. Include new principals by coaching them on firm goals, market group plans and any broad client strategies that are in the works, such as cross-selling the firm’s specialty. Also, address issues affecting firm management, whether it’s associate turnover or aging receivables.

You may need to work with each potential principal to develop a personal business and marketing plan. The process will help new principals focus on their strengths and weaknesses as they relate to better understanding and serving your clients’ businesses and needs.

Billable and non-billable time. Outline the practice’s expectations of its principals’ contributions outside of billable activities. For example, determine if new principals will be assigned to a practice planning committee, mentoring new associates or pro bono work. Next, spell out how your practice compensates principals for their time in these kinds of non-billable activities.

Time management. To avoid burnout, ensure new principals know how to manage their work and personal time. If they are having difficulties in this area, refresh new principals on the essentials of project management skills, teambuilding and delegation. Having a trusted team of associates to support them and developing essential skills will help them preserve their family time and personal life when the pressure is on.

Strengths and Weaknesses

New principals need to understand their strengths and weaknesses. This is particularly important as they develop their respective niches and determine which roles and responsibilities to undertake to advance their careers and contribute to the firm’s success.

Encourage new principals to be honest with themselves about the areas in which they struggle. Is it time management, delegation, communication, public speaking, leadership or generating business? Once they identify these areas, they can find ways to improve. For example, if an associate isn’t comfortable networking but writes well, he or she can author articles for legal journals, thereby increasing the practice’s credibility and visibility.

Rainmaking is typically a challenge for new principals, so be sure peers and senior principals coach all new principals on methods that are in keeping with each new principal’s personality, talent and comfort level. Your firm can also help new principals polish their talents and skills by evaluating their speaking engagements, training seminars and other work.

Setting Goals and Self-evaluations

New principals should have a good sense of where they want to be in one year and five years. To achieve these aspirations, it’s important that new principals develop goals and write them down. In addition to listing long-term objectives, they should break down these goals into smaller, more measurable ones, such as weekly and monthly assignments. Also, encourage new principals to evaluate their progress regularly.

At some point, new principals may question the value of their work or find it less fulfilling. Teach them to evaluate their fulfillment by asking these questions:

• Am I doing work that’s challenging and satisfying?
• Am I enjoying my relationships with clients?
• Is my participation in outside activities, such as charitable boards or political events, rewarding?
• Am I contributing to the success of the firm?

Answering these questions can help motivate new principals to pursue different kinds of work and clients while challenging themselves to increase performance.

Long-term Success

The opportunities for new principals to excel and contribute to your practice’s success are endless. Do your part by teaching them to shift their thinking from an associate to that of an owner and implement proactive strategies to help them hone their skills, sharpen their leadership qualities and set goals. This will help put — and keep — your new principals on a path to long-term professional and personal success.

Sidebar: New Principal Track Options

Companies are changing the road to becoming a principal in a number of ways. For instance, some are lengthening the track to become principal to 10 to 12 years to allow more time to evaluate associates. The extended period also gives associates additional time to prove themselves and determine if being a principal is right for them.

Other practices are bestowing a “senior associate” title on associates who are near the end of their track, qualifying them for potential principals. At this point, they’re given additional training to prepare them for the business development and management responsibilities a principal handles.

Non-equity principals, also referred to as salaried or income principals, are another option. This kind of two-tiered position can be transitional or it can be a permanent career option. This model allows a company to reserve equity status for its top performers.

The traditional single-tier track to becoming principal still remains an important part of many firms’ cultures. Hiring the right associates and investing in their development for the long term is essential in this model.

However you define your road to success, be sure to include support mechanisms that teach principal-hopefuls early in the process about the role and responsibilities of being a principal and how A/E firms are managed. These include one-time activities, such as principal orientation and executive coaching, and long-range programs, such as mentoring and principal training and development.

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