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.jpg) The following is excerpted from the July 2009 report "Delivering Value-Added legal Services in Challenging Times," published by Robert Half Legal, a specialized staffing service reachable at 800.870.8367 and www.roberthalflegal.com.
Altman Weil's survey of general counsel found that 75 percent of legal departments anticipate budget reductions in 2009. "In this economy, the number-one priority is to keep the clients you've got," says Larry Bodine, a business development advisor based in Glen Ellyn, Ill., with Apollo Business Development and editor of Larry Bodine LawMarketing Blog, a professional law marketing blog. "Customer service is the way to do it.
"You can't take your clients for granted," observes Harley L. Winger, partner at the Calgary-based firm of Burstall Winger LLP. "With consolidation, there will be fewer clients, and the ones there are will be doing less fee-generating work, unless they're going into receivership. Law firms don't have as much work as they once did, so as a firm, you know the competition is talking to your clients.
Business development is urgent priority
The slowdown in business caused by the challenging economy has prompted many law firms to seek new clients. Some firms see their marketing departments as a cost center, however, and given diminished prospects for revenues, have decided to cut back on the budget allotment for new business development. For instance, a recent survey conducted by the Legal Marketing Association revealed that in 2008, firms spent less on marketing in the third quarter than they did during the same period in 2007.
But other firms view business development as an urgent priority. 83% have implemented business development training to fight the recession. This is the time to redouble efforts at business development," says Terrence Russell of Ruden McClosky. "Law firms will have to do their best to get out there and gather clients that are holding their own, are well-managed and are likely to weather this storm.
There are a few effective ways to generate business with new clients, wrote Ron Currie, national director of marketing for Gowling LaReur Henderson LLP, in Canadian Lawyer:
Set a narrow target. Select prospects with characteristics similar to those of current clients, or promote your services to companies that require your type of expertise. In this regard, however, potential conflict analysis is very important.
Tap into referrals. Firms should not be afraid to ask clients and colleagues for introductions to companies.
Follow through with prospects. Staying in regular contact with potential clients keeps a firm on their radar. Contact can be as simple as sending holiday cards and thank-you notes or links to articles, blogs and websites that would be of interest to the prospect.
Technology tools to enhance client service
"Utilitarian" and "relevant" are the guiding principles for law firms' use of technology in communicating with clients. "What clients really want is something basic and practical - information that has to do with their business," says Larry Bodine.
 Law firms should deliver that information in a way that is accessible and convenient for the client. For example, this could mean setting up a secure extranet so a legal department client can log on and quickly check the progress of a case. Or a firm might help general counsel fulfill continuing legal education requirements by providing free webinars that clients can link to from their desktops.
Better client service also means using billing technology that is compatible with the client's. "Firms should have different billing systems for different clients," Bodine says. "If a firm has a corporate client sending them $500,000 worth of business, or even $50,000 in business, I think it's worth training a clerk to compose a bill in the proper format."
Client relationship management software, such as Contact Networks' ContactNet, can help large law firms with numerous attorneys serving a client. The software automatically captures and analyzes data from a variety of sources. Attorneys can then use the program to determine which attorney has the strongest relationship with the client and be more strategic in their marketing efforts. Similar programs have been used successfully by audit firms for many years.
Clients wish lists
"Keeping in touch with clients is the most important thing a firm can do," says Harley Winger. "You may not be hearing from clients in terms of work to do, but you'd best keep in touch with them so they don't forget you. Larry Bodine advises law firms to meet with general counsel at least once a quarter, at the client's office. "Talk about their business. You're not talking law at all, you're talking about how the client makes money and what's going on at the company," he says. "The client will be thrilled that you took an interest, and chances are very good that they'll also outline some legal needs. You'll never find out about those needs unless you go to their office and start asking questions.
In addition to pro actively communicating with clients and asking about their unmet needs, firms should take care to be responsive when the client initiates contact, says Larry Bodine. This responsiveness does not have to take the form of an hours-long meeting or extensive status report. Rather, it is best shown in small but important ways. "If a client calls you, they expect a return call within 24 hours," he says. "They understand that you're busy, but if you let their calls go unanswered, it makes the client feel like they're small potatoes.'"
Clients deserve a similar prompt response when they ask for an update in the middle of a case or transaction, Bodine adds. "Clients want to know what's going on. Even if the attorney e-mails just one line saying, 'We're still waiting to hear from the other side,' clients like that. They feel like they're in the loop.
Creative solutions. "In our industry, our investments have a certain amount of risk associated with them, and there's a certain level of tolerance that's built into our structure and pricing when we're acquiring assets," says Melissa LaFlair, the general counsel of DRI Capital, Inc. "So when an attorney spends hours drafting a memo about details and case law regarding legal and technical risks that are practically very unlikely to ever materialize, the memo is not only of no benefit to us, but it is a waste of our money."
LaFlair says she prefers that outside counsel identify the greatest risks and call with expert suggestions about how her company can approach and address them. "The manner in which a law firm raises issues and solutions
In response to clients' need for strategic advice and counsel, Baker & McKenzie has organized a team of attorneys into a Global Financial Restructuring Initiative. "It's an example of our fluent, cross-practice, multijurisdictional response to the pressing business and legal needs of our clients that are being impacted by the global economic crisis," says Mike Garvey.
Alternative billing arrangements. Eighty-one percent of general counsel surveyed by Altman Weil said their top concerns are "outside counsel costs" and the "unpredictable nature of legal spending." To get better control of these wild-card factors, 65 percent of those polled said they plan to bring more work in-house, 53 percent plan to award work to lower-priced firms, and 51 percent said they will require outside counsel to offer alternative billing methods.
To get a free copy of the Robert Half research, visit:
http://www.roberthalflegal.com/FreeResources?rfmCandidate_3.dmreq=true&rfmCandidate_3.Z=0&rfmCandidate_3.A=RHLflo09CO |
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