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While economists, who have little skin in the game other than academic interest, quibbled over equations and the interpretation of data, the rest of us knew that the recession was happening as far back as fourth quarter 2007. What’s more, 2009 will be a catastrophic year, with blood flowing thigh-deep in the halls of commerce. No sector will be immune and that includes professional services, particularly the legal community. What’s an attorney to do?
In times of plenty, which the law world has seen its fair share of during the last decade, business development basics get forgotten in the rush to keep up with the business at hand. Essentially, lawyers mutate into high-end, highly paid order takers. Why work the phone or the relationship when there are more than enough billable hours to keep partner committees happy? But what happens when clients cut back and the phone rings less often, as seems to be occurring at an alarming pace? In these recessionary times, the advice is universal and the meaning unequivocal . . . “It’s the basics, stupid!”
Reassure Your Clients
In the attorney-client dynamic, the relationship is what sustains us in good times and saves us in bad. For attorneys with unexpected time on their hands, it’s imperative that they rekindle the relationship with existing clients, particularly the loyal ones who got them where they are today. In these days of confusion, uncertainty and fear, clients need to experience reassurance at every turn and from every quarter. They need to hear a metaphorical rendition of the words “I love you!” As news and business cycles deliver calamity by the hour, the demand for informed opinion and advice is paramount, particularly so when it comes to legal matters. You need to supply the drip-drip of constant communication (you to them), an added dose of commitment to the client cause (going the extra mile as a business advisor) and a healthy dollop of rekindled-chemistry (by relating personally as well as professionally). Invest in the clients. Call them, spend more time with them (as people and business associates), and educate yourself about the relevant parts of their business that previously failed to warrant your scarce time or attention. Be relentless in the pursuit of opportunity. This solicitous attitude will mean that not every hour gets billed. That’s why it’s called investment.
Do What You Didn’t Have Time For When Work Was Plentiful
In terms of hard-core business development activity, start doing the things that were neglected in flush times. Write opinions and white papers, plan and attend conferences, conduct thought leadership meetings, join civic boards, participate in association meetings, prowl client corridors for opportunity, and make follow-up calls. Internally, train associates; explore cross-selling opportunities; and review existing client-firm relationships through quality assurance process, assessment and feedback. This “blocking and tackling” stuff works; it’s in the arsenal of the most successful rainmakers who practice the art with the perseverance of The Terminator. And the beauty of a downturn, if it can be called that, is that it frees up previously unavailable time for business development duties. There’s no excuse for inactivity and inaction.
Cut With A Scalpel, Not A Cleaver
One final piece of advice: Don’t stop spending on business development support. Yes, it’s what you would expect to hear from a business development acolyte. Cutting the marketing budget is a mandate that every business development department will receive in 2009. If forced to cut, trim the accumulated fat, but never cut into the muscle or sever an artery. These times call for precision surgery.
The first things to go:
• Excessive client/customer meals and entertainment. They’re not doing it either, nor do they expect it right now
• Unnecessary travel. Try to fill the void with videoconferencing
• The perks that don’t deliver—subscriptions, clubs, etc.
• Expensive collateral materials that are rarely read and are often out-of-date the minute they come off the printing press
• Consultants who contribute little to the marketing budget ROI
If that’s not enough to meet the targeted cut, be prepared to trim the bigger line-items, but not to the extent that the marketing effort becomes stalled and the momentum gained from previous marketing investment is lost. Don’t over-react or cut wantonly. Instead, focus the funds, return to the basics and don’t make a spending decision without demanding ROI and accountability.
Assuming that economist and recent Nobel Prize recipient Paul Krugman is right, expect this recession to linger well into 2010. Silver bullets will be non-existent. Heightened business development skills will be a necessity, not a luxury. And there will be need for an attitude adjustment within the attorney ranks. The new mantra is opportunity—with existing clients, prospects and business sectors that were previously overlooked. With the Federal government plowing $2-3 trillion into the economy in bailout money and infrastructure development, particularly in the green technologies and energy alternatives, there’s a distinct whiff of opportunity in the air.
