Becoming a Trusted Advisor

By Darcie Davis, President of Davis Kingsley & Company, in Reston, VA.  She can be reached at 703.742.3761 and ddavis@daviskingsley.com.  This excerpt is reprinted with permission from a research report conducted by Davis, Kingsley,the George Mason University Schools of Management and Law, and the Greater Reston Chamber of Commerce.

Which lawyers can be trusted? In other words, can lawyers achieve a trust-based relationship wherein they provide strategic advice that influences the decisions their clients must make? We wanted to find out.

If lawyers are building trust-based relationships with clients, what are they doing to achieve such a respected position in the eyes of their clients? On the other hand, what are they doing to prevent those relationships from ever happening? We heard detailed anecdotes to support both situations.

The quick conclusion? When it comes to trust, some lawyers can be successful while others fail miserably.

We wanted to know to whom our executives turn for advice on their own internal and external pressures. At what point, if ever, can their outside counsel insert themselves into their challenges and provide strategic level advice.

Measuring the quality of the relationship

For the purpose of our study we categorized "relationships" into the following four categories and asked each executive to rate their various attorneys using our rating scale.

Level 1: Commodity based where price is the primary differentiator.

Level 2: Transaction/project based, reputation for expertise/good work. Executives welcome their input.

Level 3: Consultative, well thought out advice grounded in deep expertise and best practices. Input may influence an executive's decision.

Level 4: Highest level, trusted advisor with strategic input that influences an executive's decision. One of the first few to be called when executives have a challenge.

Results

Based on our criteria, 13% of our executives have not experienced a relationship as defined by levels 3 or 4 on our scale.

From our study, 42% have very good working relationships with their lawyers (level}) but those lawyers are not involved with the executive's strategic decision making.

One executive told us: “Strategy and attorneys don't mix.”

Despite this admonition, 54% have experienced the level 4 high level, trusted relationship with a lawyer based on the criteria that we established.

The 54% who had achieved the level 4 distinction with their lawyer, were quite descriptive when discussing what their lawyers did to work themselves into that high-level trust-based relationship. Executives were consistent with each other in discussing the traits and behaviors these lawyers demonstrated to earn their trust.

The trusted behaviors

Executives talked about their lawyers, who earned a trust-based relationship, by stating the following distinguishing characteristics, which are listed in no particular order.

·        The relationship started off strong when they demonstrated more value than what we asked for.

·        Don't tell me what I want to hear; tell me the good and the bad and give me absolute two-way candor.

·        Give me advice I need to avoid litigation in the worst case. 'Here's what can happen but here's what is likely to happen.'

·        Have the ability to put themselves in my shoes with knowledge about my business, our culture, our constraints and realities.

·        Be a business partner with broad business insights to give me business advice.

·        Readily give me billing concessions, discounted fees or services not charged.

·        They are responsive to requests on changes to their billing format, timing and detail.

·        I get quick response to my requests.

·        Our lawyers must explain things  clearly.

·        He doesn't talk down to us.

·        He demonstrates he is more interested in helping us than in making money in the short term.

·        My lawyer pays me personal attention (lunches, social outings, seminar invitations).

·        They have strategic relationships already in place (e.g. judges in certain jurisdictions).

·        They treat us as a valued client of high priority.

Quotes from three executives summarize most of what we heard from others about how they would like to be treated. These executives were talking about law firms that made it to our unpublished list of "They Understand and Demonstrate Profitable Client Service."

“When I came on board at my company, the (incumbent) lawyers immediately invited me to come over and spend a day with them. They introduced me to a lot of people and talked about substantive issues. Over time, they continually checked on me to make sure I was happy and that

everything was okay. They are always receptive to requests I make on billing format and timing. The billing disputes are all handled amicably. I'm candid and they make accommodations for me. They always talk up front about how much something will cost. I don't like to be surprised and this helps. I ask them to call me right away if the fees will exceed their estimate. I want no surprises! And this has worked well with them.”

Another executive told us, “Our lawyers are more pleased that they solved my problem than they are about upping their billings. I don't like to get a bill every time I breathe but I want to be fair. They don't charge me all the time but they are reasonable about not charging me for occasional conversations.

Another executive said, “Our attorney puts on a business hat. I ask him what he'd do if it were his business and he always advises me. He started out on the other side of the desk. Too many lawyers and accountants are more concerned about their firm's liability instead of my best interest. I'm always looking for business advice and lawyers don't get that in law school.

The entire report including a Checklist for Improvements is available online at http://www.daviskingsley.com/news/Trusting_Lawyers.pdf in a PDF file entitled "Do You Trust Your Lawyer."