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Transcript of Business Development
Business DevelopmentSuccess Strategies for the Global Firm
Charles A. MaddockAltman Weil Inc.
© Copyright Altman Weil, Inc.
Business development: facts• It’s difficult for many lawyers.• Most law firms start at the wrong place.• Branding can work but often doesn’t.• Clients are more demanding.• Firms “sell” the wrong things.• The simplest strategy works best.
© Copyright Altman Weil, Inc.
Looking at:
trends
The AmLaw “Global Ten” : 2000Baker & McKenzieBaker & McKenzie 2,3002,300
Clifford ChanceClifford Chance 1,7951,795
EvershedsEversheds 1,2901,290
Linklaters & AllianceLinklaters & Alliance 1,1161,116
Skadden ArpsSkadden Arps 1,1251,125
Jones DayJones Day 1,1911,191
Allen & OveryAllen & Overy 1,0891,089
FreshfieldsFreshfields 1,1041,104
Arthur Andersen 1,500
PricewaterhouseCoopers 1,663
The AmLaw “Global Ten” : 2003Baker & McKenzieBaker & McKenzie 3,2413,241
Clifford ChanceClifford Chance 2,9222,922
EvershedsEversheds 1,8441,844
Linklaters Linklaters 2,2502,250
Skadden ArpsSkadden Arps 1,7271,727
Jones DayJones Day 1,7221,722
Allen & OveryAllen & Overy 2,0252,025
FreshfieldsFreshfields 2,6442,644
DLADLA 1,7531,753
LovellsLovells 1,6581,658
© Copyright Altman Weil, Inc.
Significant competitive capabilities• institutional client base• service sector teams• Size/capacity• leverage• capital• brand names• sophisticated marketing• cutting edge technology• competitive intelligence• international capabilities
Does your firm offer these to its clients?Does your firm offer these to its clients?
© Copyright Altman Weil, Inc.
Looking at:
clients
© Copyright Altman Weil, Inc.
Facts about clientsNorth America
They employ 34 firms on average.Convergence continuing.
• Increased metrics and accountability.Selection factors changing
EU• 42% decreased
spending on law firms.• 61% outsource for
specialty services• 70% routinely monitor
outside counsel.• 72% use uniform task-
based billing
© Copyright Altman Weil, Inc.
How Clients ChooseSource: Altman Weil Client Surveys
34
25
58
33
0 10 20 30 40 50 60
Attorney'sreputation
Firm specialty
Historicalrelationship
Firm reputation
© Copyright Altman Weil, Inc.
How satisfied are clients?
1
434
60
0 20 40 60
Completely dissatisfied
Mostly dissatisfied
Somewhat dissatisfied
Neither sat or dissat
Somewhat satisfied
Mostly satisfied
Completely satisfied
© Copyright Altman Weil, Inc.
1Extremely
dissatisfied
2Somewhatsatisfied
3Slightlysatisfied
4Satisfied
5Very
satisfied
Apostles
1991 Xerox study
Zone of affection
Zone of indifference
Zone of defection
Source: Time-based Competition
Satisfaction Drives Loyalty, Loyalty Drives Profits
© Copyright Altman Weil, Inc.
Why are they dissatisfied?
1. Responsiveness.2. Failure to control expenses and
disbursements.3. Mishandled critically important matters.4. Lack of desired results.5. Unreasonably high billable hours.Source: Altman Weil/ACCA 2003 CLO Study
© Copyright Altman Weil, Inc.
Looking at:
lawyers
© Copyright Altman Weil, Inc.
Lawyers as MarketersVisual AuditoryEmpathic CerebralCreative LogicalOptimistic SkepticalCollaborative AutonomousExecutives OwnersSynergize PersuadeReflective Urgent
© Copyright Altman Weil, Inc.
Success Strategies
© Copyright Altman Weil, Inc.
Market Segmentation
EC, EP
EC, NP
NC, EP
NC, NP
Fire
Look at clients this way...
Smartest brains around
We’ve seen similar problems; trust us, we’ll help you
We’ll help you with choice and give ongoing support
Better, faster, cheaper
SellingProp
Premium fees; very low leverage; may refer work
High fees; low leverage
Above average fees, good leverage
High volume, high leverage
ProfitDriver
Highest level diagnostic skills; state of the art knowledge
Experience in similar problems; technical, functional knowledge
Established methodology and low cost delivery plus relationship
Established methodology; efficient, low cost delivery
CSF
Innovative and novel solutions
Real time diagnosis and judgment
User-friendly advice; relieves anxiety
Efficient, low cost delivery; established methodology
KeySkill
“Bet your company” issue
Complex issue; client has no experience
Making informed choice; guidance through process
Efficient solutions to common problems
ClientProblem
Rocket ScienceGrey HairCustomizing the
Body of Knowledge
Applying the Body of
Knowledge
Define your niche
© Copyright Altman Weil, Inc.
Know the selection processU.S.
• Expertise• High quality work• Lawyer reputation• Fee structure• Local market
knowledge
EU/Asia• Expertise• High quality work• Local market
knowledge• Languages spoken• Lawyer reputation
Know the client service cycle
MARKETINGSERVICE
SELLING
SUSPECTS
OPPORTUNITIES
PROSPECTS
QUALIFIEDPROSPECTS
CLIENTS
SATISFIEDCLIENTS
ADVOCATES
© Copyright Altman Weil, Inc.
Know what tools work…U.S.
• Outside referrals• In-house referrals• Beauty contests• Lawyer articles• Firm-sponsored
conferences• Internet directories
EU/Asia• Outside referrals• In-house referrals• Beauty contests• Lawyer articles• Auditor referrals• Internet directories
© Copyright Altman Weil, Inc.
…and which tools don’t
U.S.• Brochure• Advertising
(trade)• Advertising (legal)
EU/Asia• Brochure• Advertising
(trade)• Advertising (legal)
© Copyright Altman Weil, Inc.
Build from clients first:
SuccessStrategy
• Client Teams.• Technology integration.• Corporate Counsel
Conferences.• Annual Legal Plan.• Reverse seminars.• Annual Client Audit.
© Copyright Altman Weil, Inc.
Know and use your brand
• Size• Quality• Experience• Pricing• Location• Superior service• Other
“The essence ofmarketing is building a brand in the minds of consumers.”
Al Ries
© Copyright Altman Weil, Inc.
Involve the right lawyers• Find a role.• Provide tools and direction.• Test.• Train.• Evaluate.• Compensate.
– For effort.– For success.
© Copyright Altman Weil, Inc.
Success strategies
• The right lawyers doing the right things.• Leverage relationships.• Know and protect your brand.• Niche and segment market.• Research.• Invest time first, then money.
© Copyright Altman Weil, Inc.
The billable hour is your year.The non-billable hour is your future.
David Maister
© Copyright Altman Weil, Inc.
Questions?
© Copyright Altman Weil, Inc.
Contact:
Charles A. MaddockPrincipalAltman Weil, Inc.(610) [email protected]