The Complete Lawyer

Large corporate clients nationwide are the ultimate prize. Their substantial legal budgets—$20.5 million on average—create a wealth of opportunity. Establishing a few core relationships with these high-spending buyers can be a boon for a law firm of any size. And there is plenty to go around.

Today’s large corporate buyers use nine law firms for the bulk of their legal work. On average, two of these firms are primary law firms (clients’ first string, the “go-to” firms) and seven are secondary (integral to the business with access to significant matters). Primary law firms generally capture upwards of 15% of corporate legal budgets –$3 to $4 million annually on average, and more than $40 million at the high end. Secondary law firms earn anywhere from $600,000 to over $1 million—from a single client.1

With this amount of money at stake, each individual client relationship is critical. All attorneys want what’s best for their clients. Yet even the best intentions can be muddled by a firm strategy that does not outpace the competition.

The BTI Consulting Group’s analysis of client relationships reveals that 13 law firms—the BTI Power Elite—boast more, high-quality relationships than their peers. This select group of law firms enjoys a greater number of primary relationships, higher client satisfaction and a more distinguished reputation in the eyes of their clients, according to direct feedback from more than 400 corporate counsel at large and Fortune 1000 organizations.2 While these 13 law firms represent some of the nation’s biggest and best, attorneys from law firms of all sizes can benefit from the four powerful strategies these top performers use to wow their clients and pull ahead of the pack.

Give Clients What They Want

Targeting developing market needs may sound simple, but few law firms regularly anticipate client needs to stay one step ahead of everyone else. Many law firms stress their practice instead of targeting needs. Market needs typically fall into one of three categories:

Industry-specific

• Develop customized marketing content designed specifically for each industry sector
• Mobilize your law firm’s existing practice groups to target clients by industry
• Target specific companies within each industry for marketing and new business development
• Rely on industry research to define emerging opportunities and top-of-mind issues

Melding practices into needs

• Craft the right mix of practice offerings to capitalize on needs
• Pinpoint gaps in your law firm’s current strategy and practice mix
• Target practice groups with the best fit and long-term prospects for development
• Learn which needs are prime for growth in the upcoming year
• Tap legal services forecasts to pinpoint high-growth areas by practice and industry

Client-specific

• Conduct annual reviews with clients to identify upcoming goals and needs
• Solicit feedback from current clients to understand what is keeping them up at night
• Align recruitment and staffing decisions with client needs

Law firms that provide services in areas where a need exists are perceived as high value. Deliver on emerging and unmet client needs to leverage growth opportunities, cement client relationships and differentiate your firm from the competition.

Be Aggressive

Law firms that care about relationships make client acquisition and development the backbone of their growth strategy. They outline explicit steps and metrics to reach their goals. Each initiative is tied back to the overall growth strategy of the firm. Metrics are backed by big budgets and big rewards.

Examples include:

Modified compensation systems with key metrics linked directly to new client development

• Number of new originations
• Dollar value of new business portfolios
• Hours spent on client development
• Win targeted clients

Absorb new clients through competitive growth measur

• Lateral hiring initiatives
• Acquisitions and mergers

Hyper-focus on cross-selling to existing clients by setting discrete goals

• Introduce clients to partners from practice areas in which there is a known need using a value-added approach
• Provide proactive advice on a new matter—at no cost to the client
• Establish firm goals to provide service in one new practice area to your key clients

Habitually Over-Deliver

Law firms that establish the best relationships also go above and beyond expectations. To build and bolster these relationships:

Set up Google alerts for clients

Use Associates and librarians to track client news

Track the company, industry and key competitors at a minimum

Send proactive updates to clients on:

Emerging risks

Regulatory changes

Host off-site strategy sessions with the client

Develop and share best practices of top clients with other clients for litigation management strategies and ensuring compliance with changing regulations, for example:

Ask clients to evaluate your entire case team

Solicit and act on client feedback systematically and regularly

Rely on client feedback to guide strategies, offerings and investments

Use key milestones as a natural point for clients to assess your progress

Offer constructive criticism to the General Counsel

Be aware that as overall client satisfaction continues to rise, this approach may simply allow you to keep pace. Think about developing new strategies to truly distinguish yourself or your firm.

Reinvent Yourself

A select group of law firms increased their share of primary relationships by adopting client-focused strategies. These firms:

• Provide client service delivery
• Institute client service metrics across the firm
• Include client service activities in Partner goals
• Provide tools to partners to boost client service
• Train attorneys and staff in client focus
• Adopt client service teams to better serve existing clients

o Focus on the goals of the client

o Define accountability and leadership

o Have a dedicated budget

o Include clients as an integral part of the program

o Rely on measurable performance metrics

Maintain a market focus

More importantly, these law firms showed the strategic discipline to stick with their strategies for three years. The dividends are now coming in. Each of these four high-impact strategies is proven to drive stronger client relationships. Commit yourself today to adopting just one of the many tactical examples presented. Your clients will thank you.

FOOTNOTES

1. The BTI Consulting Group’s 8th Annual Survey of Corporate Counsel to be published in an upcoming webinar, Best Practices in Managing Outside Counsel (November 2008)

2. BTI Power Rankings: The Client Relationship Scorecard for Law Firms (2008)