Posts Tagged ‘marketing’

“Do you come here often?”

Wednesday, September 8th, 2010

Sometimes finding the right strategic partner is like looking for a new romance in a bar. The key to success is finding points of affinity upon which to build a relationship, whether for the rest of the evening or for a lifetime.

This is a second of a series of posts about common mistakes law firms make when trying to establish a strategic alliance with another law firm.

The second big mistake is a lack of actual points of affinity between the two firms.  These relationships have to be based on more than professional friendships or an occasional referral of instructions in the past.

When our firm conducts market research to help our clients find strategic partners, we look for points of affinity that are based on current and recent events, cases, and transactions — such as the candidate firm having clients with significant business interests in the home jurisdiction of our client.

The notion of “build it and they will come” simply does not work in this situation. Two firms cannot simply set up a strategic relationship and then try to create the client base and inter-firm work flow needed to support it. The basic elements must already be there.

This is a major problem for most contemplated strategic relationships between law firms. Too many of these efforts are the products of friendly conversation and wishful thinking over drinks at a conference. While it is always good to be optimistic, it is better in this situation to be realistic.

Norman Clark

Free lunch

Monday, September 6th, 2010

A surprising number of otherwise sophisticated law firms spend a horrifying amount of time and money pursuing strategic alliances, partnerships, or other relationships with other firms. Some of these relationships work well. Most, however, produce disappointing results for both parties.

This is the first of a series of posts that outline some the mistakes that law firms make when considering a strategic relationship, whether in a one-to-one relationship or in a law firm network.

By far the biggest cluster of mistakes is poor research. Law firm partners often waste hundreds of hours every year on “road shows” to meet other law firms. Most of these meetings a little more than cold calls. Not surprisingly, they produce few benefits other than an occasional free lunch in a law firm conference room.

We advise our clients to be sure that they have thoroughly researched the law firms they want to visit and the position of those firms in their respective legal markets. When we conduct this market research for our clients, we look for points of affinity between our client and the target law firms. Before we recommend that one of our clients visit a candidate law firm, we want to be reasonably sure that there are specific reasons to believe that any relationship that emerges from that free lunch in the conference room will be productive for both firms.

Norman Clark

Does a small general practice law firm have a future in a small market?

Tuesday, August 24th, 2010

A partner from a law firm in a small legal market (under 500,000 people) in the United States asked me this question a few days ago.

The answer is really one of definition. While the term  “general practice” is relatively benign, claiming to be “full service” can be toxic for a small law firm.

Business clients, even in smaller communities, are rightfully skeptical of small firms (which, for purposes of this discussion, includes firms of up to 20 lawyers) that advertise  expertise or significant experience in dozens of practice specialties.  When probed, many of these claims are based on one case or one transaction that might have happened years ago.

Our firm works with smaller law firms, both in the United States and worldwide, to develop and execute marketing strategies that work in smaller legal markets.  Our experience and observations suggest three points that a small law firm should consider:

  • Avoid the temptation to tout yourselves as a “full service law firm.” Not only does such a claim lack credibility among sophisticated business clients and high net-worth personal clients; it can also unnecessarily raise their skepticism among the things that you really do well. And no news travels faster in a small market than the experience of a client who has been disappointed by mediocre performance or poor client service.
  • Focus on the client sectors in which you are already strong.  If some of your best clients are, for example, in the construction industry, be sure that you understand their businesses better than any of your competitors.
  • Don’t be afraid to refer a client to a competitor for work that is outside your area of expertise. Of course, there is a risk that the competitor might “steal” you client. If that happens, it probably was likely to happen even without the referral. The much higher probability is that sending a client to another firm, when you cannot give the client the best possible service, will actually increase the loyalty of that client to your firm, as well as make the client more likely to refer you to others.

The risk to small law firms that try to do it all is that you usually end up doing nothing particularly well. This is a sure formula for invisibility in the competition for the types of potential clients that your firm needs the most.

Norman Clark

Three myths about client surveys

Tuesday, June 8th, 2010

Why don’t more law firms conduct client surveys?

Our firm has been researching that issue continuously for the past five years, through surveys (of course!) and also hundreds of informal discussions with law firm managers and marketing directors.

Some law firms are simply afraid to ask for feedback.  They are not relevant to this issue because, refusing to solicit feedback in a systematic way, they are doomed to crisis-to-crisis improvisation and, ultimately, the deterioration of their client base and market position.

However, when we ask people from healthier firms why they have not conducted a formal client survey within the past five years (or, in a shocking percentage of instances, never!), we usually hear three excuses.  Each one of these reasons seems to make good business sense, but has been disproven by the experiences of successful law firms throughout the world.

“Clients already have to fill out too many surveys.  The won’t participate in ours.”

Most clients see a significant difference in a survey conducted by a hotel chain and a serious survey conducted by a law firm.  When clients fail to participate in a survey conducted by their law firms, it is frequently because:

  • The survey questions are trivial; or
  • They are not confident that their answers will make a difference.

Law firms that send out generic surveys usually learn this lesson the hard way.  Surveys that might work well in ordinary consumer businesses can completely miss the key points with respect to quality in legal services.  This is why we recommend that your survey be designed for a law firm — not a hotel chain — and  be tailored to the specific characteristics, practice specialties, and client base of your firm.

The truth is that even the busiest clients like to be asked for their opinions.  If at all possible, even busy clients will try to find time to answer serious questions.  However, questions such as “Do you like our website?” and “Are our fees fair?” (I am not making these up.) usually drive clients away.

A good law firm client survey should be as sophisticated and thoughtful as the clients to whom it is sent.

“Client surveys are too expensive and too much work.”

Like all myths, this one has a kernel of truth.  Client surveys used to be expensive and time-consuming.  With on-line survey administration and tabulation, a custom-designed survey, including an in-depth analytical report and benchmarking to other law firms, can be conducted at a cost that most law firms can recover, several times over, with one new client or one new matter. Whether you design and conduct the survey yourselves or outsource it to a firm like Walker Clark, your firm cannot afford not to conduct a client survey.

“Surveys don’t produce results.”

This myth also can be true if you merely read the survey and do nothing about it. The most important part of a client survey is the follow-up, both with the clients and internally. Even a dissatisfied client can become one of your firm’s biggest fans if you follow up specifically and systematically concerning the points of dissatisfaction.

Specific follow-up means responding promptly to the client about the client’s concerns. Systematic follow-up means making improvements in your firm’s internal operations and client relations practices to ensure that similar problems do not arise in the future.

What to expect from a survey service provider

Every Walker Clark survey, from our low-cost high-yield Snapshot survey (which we offer to any firm for a fixed fee of US$ 800) to our most sophisticated survey service, the Strategic Business Development Survey, offers these basic components:

  • A predictable fixed fee
  • Multilingual capabilities
  • Customized, firm-specific questions
  • Comparison of your results to benchmarks
  • A written analytical report with specific recommendations for follow-up
  • Post-survey advice and assistance with implementation

These features can turn a client survey from a marginal marketing exercise to a low-cost investment that pays for itself with one or two new instructions and can produce a higher return on investment than almost any other marketing activity.  They can also help your firm to identify opportunities to improve the cost-effectiveness and profitability of your internal operations, by responding to and meeting the clients’ needs and expectations better.

Visit the Walker Clark website for more information and examples.

Norman Clark

Asking courageous questions

Saturday, June 5th, 2010

“Never ask a question to which you do not already know the answer.”

This is one of the cardinal rules of trial advocacy.

Unfortunately, this rule is foolish in law firm management.

My colleagues and I frequently hear statements such as these from otherwise intelligent lawyers and business managers:

  • We can’t ask those questions of our associates or staff. That would only stir things up and make the situation worse.
  • We can’t ask those questions of our clients. We must not raise their expectations.

One of the most important skills for leaders in law firms is to ask courageous that produce answers that the firm needs to succeed. Sometimes the answers are ones that we would rather not hear, but we must hear and heed them nonetheless. This is usually the only way to get the accurate and reliable information needed to make wise, fully-informed decisions.

Sometimes there is no act more courageous than asking a question.

Good leaders stir things up.

There are few, if any businesses, that are as heavily dependent on people as are law firms. People, along with their knowledge and skills, make up at least 90% of the assets of a law firm. The other stuff — some furniture, books, and perhaps a leasehold — are comparatively worth almost nothing, because without its people, a law firm has no real value at all.

Leaders of law firms need to know how junior fee earners and staff perceive the firm and its internal issues. Relying on hunches, group-think by partners (a favorite but usually worthless pastime at partner retreats), or “what it was like when I was an associate” are deadly problem-solving strategies.

To be sure, asking for opinions about sensitive issues might “stir things up;” but that is usually the only way to see and to understand the perceptions, misunderstandings, and grievances that sometimes lurk at the bottom.

And the best way to get to the bottom of an issue is simply to ask about it.

Good law firms want to raise client expectations.

Some law firms seem to have a phobia about client feedback. In some instances the refusal to ask clients for performance feedback is the result of a deep-seated condescension — or even contempt — about the client.

For example:

  • “Why ask the clients? They really don’t know what they need. That’s why they hired us.”

In healthier law firms, however, I often hear this excuse for not soliciting client feedback:

  • “We can’t ask anything that might raise the clients’ expectations.”

Raising client expectations is exactly what law firms should be doing in today’s highly competitive legal markets.

You should set standards of client care and service delivery that are above current levels demonstrated by your competitors. The best way to do this is to ask clients to describe what “quality” means to them. What indicators, such as responsiveness and understanding of the client’s business, are most important? Even if you believe that you are performing as well as you possibly can, ask the client how you can perform even better. You might be surprised by the answer. You might wonder why you are not already doing what the client suggests.

By asking these questions and responding to them in ways that the clients can observe and measure, your law firm can raise market expectations to levels at which few, if any, of your competitors will be able to perform right now. Some of your competitors will catch up to you eventually, but during that period when you alone are performing above market expectations, you will have an almost unchallenged opportunity to win new clients and new instructions from current clients.

Simple but sophisticated tools

The art of asking questions involves much more than asking questions.

Asking a junior staff member, “How do you like the firm?” is more likely to produce a cautious, positive response than meaningful data. Most staff members are not fools. Even the best-intentioned open-ended question often will look like a trap.

Asking a client, “How did you like our firm’s performance on that matter?”  will seldom produce the specific information that is the key to understanding a possible competitive advantage or disadvantage for your firm. Many clients have never articulated their key quality indictors. Sometimes you need to lead them there.

To produce worthwhile information, the questions need to probe specific issues and potential issues. The questions should be asked in a systematic and consistent way. This is why my colleagues and I recommend three tools above all others:

  • Surveys – A well-designed survey can produce substantial volumes of data, compiled in a consistent manner, that can be very useful in understanding the seriousness and priority of an issue.  A survey is also an excellent tool for identifying potential obstacles to the implementation of a new strategy or a proposed solution to a difficult problem. Click here for more information.
  • Interviews - We usually recommend that confidential interviews be used as a follow-up to a survey. However, confidential interviews can also provide detailed and sophisticated information that cannot be produced easily within the structural limits of a survey. Therefore the confidential interview is especially powerful to identify and understand opportunities or issues in relationships with major clients.
  • Monitoring – Surveys and interviews are usually one-time activities.  They can produce useful baseline results, but cannot detect changes in opinions over time or in changing circumstances. For example, our firm’s Client Service Monitor is an outsourced service by which we assume responsibility for ongoing monitoring of client satisfaction and early detection of client service issues. This can help law firms to identify issues before they become crises and to minimize loss of clients due to dissatisfaction with the firm’s performance.

The important point is this:  regardless of which tools you use, a key tool in successful law firm management today is asking courageous questions. Ask them frequently. Ask them of your own colleagues and staff and of clients.  Ask them even when you do not know — or do not want to hear — the answer. To be sure, sometimes a courageous question might involve risk; but that risk is no greater than the underlying risk that already lurks, undetected and out of sight of your current knowledge and understanding.

Norman Clark


Two outstanding legal management events in South America in June

Thursday, May 6th, 2010

The Law Firm Management Committee of the International Bar Association will participate in two outstanding legal management conferences in South America in June.

  • Contemporary Management Issues in International Arbitration and Dispute Resolution PracticesSaturday, 12 June 2010, in Asunción, Paraguay.  This is a half-day roundtable conference aimed at the special challenges in the management of international arbitration and dispute resolution practices in law firms.  It is presented in association with CEDEP (Center for Studies in Law, Economics, and Politics), one of South America’s premier continuing professional education organizations.  It is part of the annual multi-day conference on international arbitration, which organizers expect to draw approximately 1,000 lawyers from Latin America and abroad.
  • Managing a Modern Law Firm - Monday, 14 June 2010, in Buenos Aires, Argentina.  This one-day conference, co-sponsored by the IBA Latin American Forum, will investigate four key challenges for law firms in the decades of the 2010s:  (1) a business approach to strategic development of the firm; (2) marketing; (3) associate career management; and (4) management of knowledge and know-how.

For more information, please click on the two links above.

Norman Clark

Walker Clark Central Europe Group

Monday, April 5th, 2010

Prague

Last Friday we launched our new Central Europe Group, to deliver global experience and local expertise to law firms practicing in five dynamic legal markets in Central Europe:  the Czech Republic, Hungary, Poland, Romania, and Slovakia.

The Central Europe Group originated from suggestions and comments by Walker Clark clients, as well as professional friends in the region, who are seeking a multidisciplinary approach to business strategy, management, and operations, that is not readily available from traditional consulting firms at a reasonable cost.

The Central Europe Group delivers country-specific services in:

  • Strategic planning and implementation
  • Profitability analysis and improvement
  • Establishing clear competitive advantages
  • Evaluation of mergers, networks, and other growth opportunities
  • Improving the marketing performance of the firm and each of its lawyers
  • Building the firm’s national and international visibility
  • Law firm governance and partnership structures
  • Compensation systems
  • Performance management to get the best results from each person in the firm

The Central Europe Group has also published a series of country pages with up-to-date news and analysis of the major business and economic trends affecting the business of law firms in each of the five countries. We are also publishing a series of in-depth Background Papers on each legal market. The first of these, Foundations of the Modern Czech Republic, by Daniel E. Miller, Ph.D., one of the coordinators of the Central Europe Group, was published this past weekend and is available for download from www.walkerclark.com.

If you would like a complementary consultation about how the Central Europe Group can assist your law firm, please contact me by e-mail or by telephone at +1.239.466.8370.

Norman Clark

Managing a modern law firm – 14 June 2010

Thursday, March 18th, 2010

Save the date!

The Law Firm Management Committee of the International Bar Association, in association with the IBA Latin American Regional Forum, will present a one-day conference on contemporary issues in law firm management in Buenos Aires, Argentina, on 14 June 2010.

The conference will focus on four timely subjects, each of which has a profound influence on the business performance and profitability of law firms everywhere:

  • How to write, implement and measure results of a marketing plan
  • Applying a business approach to strategic and tactical development of a law firm
  • Career management:  What do associates need?
  • Know-how management in a small or medium law firm

My Walker Clark colleague, Fernando Moreno — one of the top experts on law firm marketing strategy and tactics worldwide — will be speaking during the session on writing, implementing, and measuring the results of marketing plans.  I will participate in the session on a business approach to strategy and tactics. Other participants will include highly successful law firm leaders and managers.

This conference is designed for managing partners, practice group leaders, and law firm managers and their advisors.  For more information go to the IBA website. It also will be one of the premier networking opportunities to meet and become better known among the leaders of leading law firms throughout the Americas.

Norman Clark

A high-yield, but overlooked, marketing tool

Thursday, February 25th, 2010

As I was reading the weekly feed of law firm press releases from Latin Counsel this morning, I recalled how few law firms bother with this time-honored, but largely overlooked marketing tool.

A press release is an excellent low-cost way to improve your firm’s “targeted” visibility. By “targeted visibility” I refer to the process of getting a specific area of professional expertise in front of the eyes and into the minds of a specific audience of clients and potential clients.

Our experience in Walker Clark, LLC, has been just the opposite of the old myth that “Nobody ever reads press releases.”

For one thing, we read them — hundreds of them — every week. Walker Clark has a highly specialized market research service for law firms and corporate law departments. This requires that we must be continuously researching legal markets and law firms in other jurisdictions. Sometimes the research is focused on identifying potential strategic allies or even potential merger partners. Sometimes we are advising a law firm or law department about potential local counsel in another country. The point is that we need specific, accurate, and timely information. Press releases are one of our major sources of detailed information about a law firm’s expertise, experience, and service capabilities.

The great value of press releases is that they can take your firm beyond slogans and assertions on your website or in your brochure. They can also improve the visibility of individual professional service providers in your firm. Thanks to the scope and self-replicating nature of the internet, press releases are also one of the most cost-effective marketing tools available. The cost of publishing a press release can be almost non-existent — less than the cost of printing a single copy of a brochure.

The return can be substantial. One of our law firm clients recently told me that a single press release was the decisive factor in their beating an equally well-qualified competitor for a major project finance engagement. In fact, the fees from that project were sufficient to cover the firm’s entire marketing budget — for three years!

Nobody reads press releases? Think again.

Norman Clark

For more information about Walker Clark market research services, or to learn how our firm can help you integrate press releases into your marketing strategy, please contact me directly by e-mail or by telephone at +1-239-466-8370.  (For security purposes, the e-mail link will take you first to a validation page on a third-party website.)


A million stupid words

Thursday, February 11th, 2010

If one picture is worth a thousand words, a stupid picture is worth a million.

Yesterday, our office received a brochure from a vendor to the consulting psychology profession. It was marketing a certification program to help people improve “leadership abilities and inspire greatness throughout an entire organization.”

Every photograph in the brochure was of a person who was white and of European or American ethnic background. The only diversity was hair color. There was not a single person of color — or even someone who might faintly suggest an ancestry other than northern European. Not even someone who looked even vaguely Latino!

Is this their visualization of leaders in a “great” organization?  No Asians or Africans need apply?

And this was from a company based in California, one of the most diverse and culturally aware states in the United States!

So what subtle message is your law firm’s website transmitting?

Is this the image you want to project?

Are you visually communicating a “thousand words” about being a diverse, progressive organization that welcomes people of different backgrounds and points of view?  Are you non-verbally reassuring people who have origins elsewhere in the world that they are welcome as clients?

You might might respond, “That’s not rational.”  You would be correct. There is a non-rational component even in the decision to purchase sophisticated legal services. In today’s international legal market, in which hundreds of good law firms and thousands of excellent lawyers compete, such subtleties could make an “irrational” but nonetheless decisive difference.

The vendor who sent that offensive brochure to our firm did not mean to suggest that only white people could lead  a “great” organization.  Nonetheless that was the non-verbal suggestion that comes through, particularly to people who are not white or of European background.

In all but the most extreme cases, the exclusion of non-Europeans from websites in North America and Europe is not intentional or malicious. However, for law firms that are actively trying to attract international clients — particularly multinational companies that consider their diversity be one of their most valuable assets –  such oversights might betray an indifference to, and lack of awareness of, the world around them. For some companies, a demonstrated commitment to diversity might also be a selection criterion for their outside law firms.

If these are merely benign oversights, why all the fuss about these stock photographs of people who are not even members of the firm? Please read the next paragraph carefully

Even with the very best of intentions, lawyers in North America and Europe who have enjoyed a cultural “white privilege” or “male privilege” all of their lives sometimes fail to appreciate how such images might be viewed differently by someone who has been disqualified by ethnicity or gender from such benefits. Even in countries with extensive civil rights laws and a general cultural revulsion at discrimination and bigotry, “white privilege” and “male privilege” remain social facts.

There is nothing wrong with having pictures of  “ordinary” people (not members of the firms or clients) on a law firm website (or a management consulting firm website like www.walkerclark.com). They can communicate personal warmth, humanity, and welcome. However, be sure that these same images do not also subtly communicate a million stupid words that you would never intend and would be horrified to hear yourself utter.

Norman Clark

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