Woody Allen’s famous quip, “I don’t want to achieve immortality through my work. I want to achieve it through not dying,” perfectly expresses the kind of wishful thinking that often gets in the way of preparing for the future. Architecture firm principals in particular have a reputation for finding excuses to put off firm succession planning until they are nearly into their 60s. In some cases, this is already too late—planning for a smooth transition of both the leadership and ownership of a firm ought to begin 10 years or more before the retirement of a principal in order that all the benefits of such a change can be realized. The most obvious reason for a succession plan is to compensate principals fairly for the firm they’ve built with their entrepreneurial spirit, including the physical assets and intellectual property they own, and for the money they’ve invested in their businesses. But ownership-transfer planning should be part of the firm’s overall strategic plan. Both require that the firm develop and cultivate talented employees in areas beyond design and project management, such as marketing, human resources, financial management, and technology. Another meaningful consequence of a smooth leadership transition is that it allows the successors continued access to the marketplace. When a principal leaves a firm abruptly because of an ill-conceived succession plan, the reputation of the business may suffer tremendously.

And finally, contingency plans developed as part of a succession plan can act as a hedge against the unexpected. There is always the possibility that a principal could depart on short notice for any number of reasons, or that an event resulting in a principal’s disability or death could occur. Planning for the possibility of such a drastic turn of events is necessary to ensure the continued healthy operation of the firm—if not its survival—and to reassure clients that its obligations to them will be met. In the event of such a catastrophe, it will be necessary for the firm to follow through with its projects in a manner that is consistent with its principals’ values.