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Copyright ©, 1996-2009, The WJF Institute.
Sales Lessons Law Firms Can Learn from the Corporate World: Bringing in More Business Using Key Client Teams
William J. Flannery, J.D.The WJF Institute
Legal Marketing Association – Richmond ChapterNovember 18, 2009Richmond, VA
Copyright ©, 1996-2009, The WJF Institute.
Today you’ll see, hear and learn … Sales Lessons from the Global 1000
What your firm can adopt and adapt
How technology can help you develop tactics and strategy
Key client management opportunities
Practical ideas on how to close the knowing/doing gap
Copyright ©, 1996-2009, The WJF Institute.
How The Global 1000 Segment Customers
% of Revenue Actions
Key Clients (Top 150) 80% - 90% Global Account Teams
Team Leaders
Technology Support
ROI Analysis
Training
Global Account Planning
Clients Other Than The Top 150
Product/Services
Local Geographic
5% - 10% Grow and/or Throw out
New Clients ?? % Referrals
Cold Calls
Advertising
Branding Campaigns
Industry Marketing
All segments require face-to-face meetings with decision makers
Copyright ©, 1996-2009, The WJF Institute.
Key Account Management and Leadership Structure
International account manager
Sales team
Technical team
Administrative team
HQ management and support
Copyright ©, 1996-2009, The WJF Institute.
Key accounts are different
High revenue / profit customers act and are different
Need more resources globally
Best sites for beta testing, test marketing, etc.
Leaders in their industry and early adopters
Copyright ©, 1996-2009, The WJF Institute.
Key accounts are managed differently
Top 20-30 accounts get c-level attention
Managed by VP of global accounts
Constant vigilance by senior management
Work to create loyalty
No one owns the customer
Copyright ©, 1996-2009, The WJF Institute.
Marketing strategy and plansWell-articulated global strategy for growth
Clear, global team account planning process
Teams develop global best practices
Global teams with local tactics and strategy
Different tactics and strategy for each customer
Scaleable to the size of the enterprise
Advertising / branding is global and local
Competitive analysis is global and local
Pricing is global
Copyright ©, 1996-2009, The WJF Institute.
Team building and maintenance
Well-trained teams – trained as teams
Well-defined roles for all
Career paths for all team members
Individual defections managed by team
Post-merger sales force integration is immediate
Copyright ©, 1996-2009, The WJF Institute.
Team’s relationship with the customer
Team is visible to the customer often – daily
Global account teams help manage the customer’s global business
Customer doesn’t defect with defectors
Copyright ©, 1996-2009, The WJF Institute.
Feedback and support
Team gives business units information about:
Competitive information
New product requirements
Changes in business environment
Pricing and team performance
Company provides team with:
Global technology support
Global marketing support
Sales and product training
Copyright ©, 1996-2009, The WJF Institute.
Measurement and compensationDrives strategy with compensation / recognition
Rewards and recognizes teams
Not individuals
Measures primarily team performance
Individual measurements are secondary
Doesn’t tolerate “Lone Ranger” behavior
Copyright ©, 1996-2009, The WJF Institute.
Client-focused teams
Global marketing planning methodology
Measurements
Leadership and client relationship management training
Team-based reward and recognition
Technology support – for CRM, RFPs
Global / local strategy and tactics
Key clients cannot be managed informally
What and why adopt and adapt?
Copyright ©, 1996-2009, The WJF Institute.
Adopt and Adapt?, cont’d
The firm’s assets (clients) need disciplined financial management
Outsourcing, preferred suppliers, “convergence” and “partnering” initiatives by the clients
To gain profitable market share
To differentiate your firm and its offerings
To be part of the client’s team you must act like a team
Partners won’t leave if they can’t take key clients
“It’s the client, …….” and they have the money
Copyright ©, 1996-2009, The WJF Institute.
How Buyers Buy Law Firm’s Actions
Awareness
Interest
Desire
Hire
Marketing
Business Development
Rule: Your Mission In Marketing and Business Development Is To Change The Buyer’s Behavior.
Copyright ©, 1996-2009, The WJF Institute.
Marketing Math to Help Develop Team Tactics and Strategies
Copyright ©, 1996-2009, The WJF Institute.
Flannery LLP
Logic Solutions, Inc.Revenue in $000
IP & Tech
Corp. Employ-
ment Law
Environ-mental
Litiga-tion
T&E Plannin
gTax Total
Flannery LLP
Flannery LLP
Flannery LLP
Flannery LLP
Flannery LLP
Flannery LLP
40 18 180 210 15 463
Copyright ©, 1996-2009, The WJF Institute.
IP & Tech
Corp. Employ-
ment Law
Environ-mental
Litiga-tion
T&E Plannin
gTax Total
Flannery LLP
Flannery LLP
Flannery LLP
Sosa LLP
Flannery LLP
Sosa LLP
Flannery LLP
Flannery LLP
40 18 180 65 210 14 15 463
Flannery LLP
Logic Solutions, Inc.Revenue in $000
Copyright ©, 1996-2009, The WJF Institute.
Flannery LLP
Logic Solutions, Inc.Revenue in $000
IP & Tech
Corp. Employ-
ment Law
Environ-mental
Litiga-tion
T&E Plannin
gTax Total
Flannery LLP
Sosa LLP
Sosa LLP
Sosa LLP
Sosa LLP
Sosa LLP
Sosa LLP
Flannery LLP
60 22 200 65 220 17 14 60
Copyright ©, 1996-2009, The WJF Institute.
Flannery LLP
Revenue History$000Client IP &
TechCorp
Employ
Environ Litigation
T&E Plan’g
Tax TOTALS
Logic Solutions, Inc. 40 18 180 210 15 463
ABC Manufacturing 75 17 35 22 87 99 335
Strategic Systems 99 94 69 29 291
ZEO Computers 10 13 35 44 45 66 213
Lawn Games, Inc. 100 100
First United Bank 2 2
Totals 224 142 252 66 466 45 209 1,521
Copyright ©, 1996-2009, The WJF Institute.
Client IP & Tech
Corp Employ
Environ Litigation
T&E Plan’g
Tax TOTALS
Logic Solutions, Inc. 40 18 180
210
15 463
ABC Manufacturing 75 17 35 22 87 99 335
Strategic Systems 99 94 69 29 291
ZEO Computers 10 13 35 44 45 66 213
Lawn Games, Inc.
100
100
First United Bank 2 2
Totals 224 142 252 66466
45 209 1,521
Flannery LLP
Revenue History$000
Copyright ©, 1996-2009, The WJF Institute.
Client 2007 Revenue
2008 Revenue
2009 Proj. Rev.
Client’s Legal Budget
Our Piece of Their Budget
Logic Solutions, Inc. 400 463 300 20,000 .023
ABC Manufacturing 300 335 200 10,000 .020
Strategic Systems 100 291 0 8,000 .000
ZEO Computers 100 213 0 7,000 .000
Lawn Games, Inc. 10 100 20 3,000 .006
First United Bank 2 2 2 1,000 .002
Totals 912 1,368 522 49,000 .001
Flannery LLP
Key Client Revenue Analysis$000
Copyright ©, 1996-2009, The WJF Institute.
CLIENTS$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
Revenue and Market Share of Clients
Copyright ©, 1996-2009, The WJF Institute.
What is this thing called Client Relationship Management?
Managing all of your firm’s contacts and efforts to increase profitable market share within a client
Copyright ©, 1996-2009, The WJF Institute.
How most firms spend their moneyBar activities
Public relations and community involvement
Written articles and speeches
Brochures and newsletters
Entertainment
Prospective client seminars
Branding and advertising
Copyright ©, 1996-2009, The WJF Institute.
Focus, Focus, Focus most of the resources on the firm’s key clients
Face-to-face meetings with clients
Ongoing training for lawyers and client-focused teams
Client opinion surveys
Use RFPs, presentations, proposals and meetings to put your competitors’ business into play
Client service training for support staff
Leadership training for the team leaders
How law firms should spend their marketing resources
Copyright ©, 1996-2009, The WJF Institute.
Return on investment is measured in dollars, not activities
Profit by client
Greater use of the firm’s resources
Greater client loyalty
Know the cost of acquiring the work
Copyright ©, 1996-2009, The WJF Institute.
Where To Get The Highest ROI For Your Firm’s Marketing and Business Development Efforts% of Firm’s
RevenueActions
Key Clients (Top 150) 80% - 90% Client Teams, Client Team Leaders
Technology
ROI Analysis
Client Opinion Surveys
Training, CSIP
Industry Conferences
Clients Other Than The Top 150
Geographic Teams
Practice Groups
Individual Efforts
5% - 10% Some Of The Above, Plus
Association Memberships
Speeches, Articles
Small Group Seminars
Community Involvement
Public Relations
New Clients ?? % Referrals
Reverse Cold Calls, Cold Calls
Advertising, Identity Campaigns
Industry Groups
Copyright ©, 1996-2009, The WJF Institute.
Client-Focused
Matte
r(s)
Practic
e Groups
Industr
y Groups
T
eams
Increased Profits
From Marketing and Busin
ess Development T
actics
Marketing / Business Development Coordination / Actions
Pro
fits
High
High
Low
Copyright ©, 1996-2009, The WJF Institute.
Your Firm’s Client and Business Development Process Plan
Interview
Design
Solutions
Decision
Plan, Organize in Teams,Research, Goals, CSIP
Styles, PacePrioritiesProcess InformationPerceptions
Client Focused Service Improvement Plans
Communicate Solutions And Benefits In Presentations, Proposals and Meetings
Rapport and Trust BuildingBuild RelationshipsTransfer Trust
Retain Client New Business New Client
Process Question
Rule: The Successful Firms Will Need To Adopt and Adapt A Firm-Wide Client Development and Relationship Management Process.
Copyright ©, 1996-2009, The WJF Institute.
1. Increase client
satisfaction and loyalty
2. Increase revenue and profit
3. Protect or expand relationship
4. Increase market share
Strengths
Weaknesses
Client Perceptions
Opportunities
Problems
Enhance or Inhibit
Objectives (Created from SWOP)
PriorityAction Plans
Who When
H=30 days
M=90 days
L=120 days
NTD
Goals
Copyright ©, 1996-2009, The WJF Institute.
Where To Focus Firm EffortsSteps To Success
Building strong relationships, face-to-faceDiscovering and developing client needsEnhancing business and financial skillsUsing the WJF Institute CD&RM ProcessFirm-wide business development approach
Trained client-focused teamsTechnology support for teamsAccountability and measurement systemsClient interviewing and team managementLeading and selecting client teams
Increasing profitable market shareSpecific plans for each opportunityClient, industry and geographic focusDriving client loyaltyIncreasing the use of more practice areas
Client team status reporting systemsEvaluate team performance and leadershipEvaluate client profitabilityChange recognition and compensationFinancial plans and controls
Team SkillsLead & Manage Business Dev.
Using Key Client Teams
Individual SkillsCD&RM Workshop
Client-Focused PlanDevelopment
CSIP Day
Law FirmManagement Overview
Team Status Report
Copyright ©, 1996-2009, The WJF Institute.
TheWJF Institute
Map
Firm ManagementCommitment Target
Top 150Clients
TrainThe
Teams
Client ServiceImprovement Plans
ManageProcess / Knowledge
MeasurePerformance
ManagementOversightAnd Team
Accountability
ReassessTeams / Client
Profitability
Change Training /Teams / People /
Systems / Technology
ManagementAction
Copyright ©, 1996-2009, The WJF Institute.
AgendaWorkshop: Day One• Introduction and Framework For The Future• The CD&RM Process Overview• Conducting Client Needs Interviews• Understanding the Client Decision Making Process• How To Get Decisions• Review and Summary
Videos: Day Two Mock Client Simulation• Presenting or Proposing Solutions• Case Study and Video Interviews
30-Minute One-on-One Video45-Minute Review
Team Presentations: Day Three• Case Study Team Presentations
30-Minutes per Team
• Team Strategy Discussions• Follow-Up Plan
Copyright ©, 1996-2009, The WJF Institute.
What you will need to get startedHighly skilled team members
Team selection criteria
A clear process for creating goals and action plans
Roles for all team members
Rules for good behavior
Reward and recognition system
Technology support
Clear firm-wide:
CD&RM Process
Client Service Improvement Planning Process
Rule: If firm management does not drive the client focused team effort it will FAIL.
Copyright ©, 1996-2009, The WJF Institute.
Why teams focused on key clients?
• “That’s where the easy money is”
• 80% of the firm’s revenue in the top key clients
• They are targets for competitors—protect tactics
• Key tactic by high-profit businesses for decades
• Leading-edge users of a legal service
• Require a lot more attention
• They invest in your firm
• Fund your “product” development efforts
Copyright ©, 1996-2009, The WJF Institute.
Why teams focused on key clients?
• Serve as your best references
• Drives clients’ use of your firm’s resources more effectively
• Creates firm-wide client loyalty
• Neutralizes client hoarding by individuals
• Reduces impact of partner defections
• Post-merger or lateral integration as opportunities are at closest point to your high-revenue clients – client teams
Copyright ©, 1996-2009, The WJF Institute.
Characteristics of a well-run key client programMost lawyers and staff organized in key client teams
All practice areas represented in the teams initially
Clear planning process in place (CSIP)
Measurable goals – increase in profitable market share
Costs-benefit analysis of team
Cooperation and integration of firm’s resources
Reward and recognition of teams and members
Management inspection of team performance
Copyright ©, 1996-2009, The WJF Institute.
What every team member needs to do: client needs assessment interviewsPlease answer the following questions about each of your client needs assessment interviews:
1. Who were the individuals in the client’s organization that you visited and what information was learned on the “client needs interview”?
2. What new opportunities were discovered in your own practice areas during the client needs interviews?
3. What new opportunities were discovered in practice areas other than your own during the client needs interviews?
Copyright ©, 1996-2009, The WJF Institute.
What every team member needs to do: client needs assessment interviews4. What are the plans to following up on these
opportunities, especially in new practice areas?
5. What additional support do you need and what is the next milestone?
6. How much time and resources have been spent and what is the likelihood of getting the business? In other words, what is the Return On Investment (ROI)?
7. If you experienced success, what might we (the Firm) learn from your individual success?
Copyright ©, 1996-2009, The WJF Institute.
Characteristics of dysfunctional client management and business development teams in law firms
Failure of the firm’s management to drive results through inspection of team performance
No real accountability or avoidance of accountability
Lack of commitment from management and team members
Fear
Absence of trust amongst team members
Low or non-existent skills for business development
Poor team leadership and followership skills
No clear or vague measurements for teams
Copyright ©, 1996-2009, The WJF Institute.
Characteristics of dysfunctional client management and business development teams in law firmsToo much focus on selling vs. client needs
No rules and roles for effective team behavior
No effective team recognition or rewards system
No clear business development account planning methodology
Failure to execute and lack of sanctions for poor execution
CMO or business development staff not experienced in teams and large key client management
Partner paralysis (firm in trouble)
No pain (partner complacency)
Copyright ©, 1996-2009, The WJF Institute.
What and how to report the team progress to firm management
Brief description of the goals of the plan
Original goals
Updated goals
Revenue for the team
Past
Projected
Current revenue rate (YTD)
Realization
Copyright ©, 1996-2009, The WJF Institute.
What and how to report (cont’d)Practice group utilization
Original usage
Current expansion
Projected
Client’s level of satisfaction with the firm
Past
Current
Continuous improvement plan?
Copyright ©, 1996-2009, The WJF Institute.
What and how to report (cont’d)Competitive activity
Resources needed
Team status
Next milestone / meeting
Copyright ©, 1996-2009, The WJF Institute.
Practical Ideas
Train the members of the team so that they know how to “play the game as a team” as the unskilled will kill the opportunity
Create a spreadsheet plotting clients against practice areas, and enter revenues by client for the past several years of your top key clients
Create five teams focused on key clients
Meet and develop a client specific plan for each team
Rate your own and your team’s effectiveness by increases in client loyalty, revenue and additional practice group use
Copyright ©, 1996-2009, The WJF Institute.
Practical Ideas
Use technology to manage and drive team efforts
Recognize and reward TEAM efforts and results
Use these client-focused teams to integrate laterals, acquisitions and mergers
Copyright ©, 1996-2009, The WJF Institute.
Please send us your evaluations and comments:
William J. Flannery, J.D.The WJF Institute11044 Research BoulevardBuilding A, Suite 110Austin, TX 78759
512-338-1758Fax [email protected]