Currently there are almost 1.2 million lawyers licensed in the United States of America with more law students graduating every year. As the industry becomes more competitive and aggressive, building client development skills early on can protect your career and make you a more valuable resource. This presentation reviews the importance of client development and the skills you will need to develop as you enter the legal market.
Michael Blachly Director of Client Development Looper Reed & McGraw, P.C.
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Thank you. I spend 50% of my time coaching lawyers on client development and working with them to implement their individual client development plans. I have Two main goals today: To create a philosophical change in the way you think of client development as a major part of your job as an attorney.� To provide you some of the tools you can utilize in your client development efforts as a new associate These are tools that you can utilize whether you are going to a big firm or a small firm. In addition, these are tools are very similar to the tools you utilize in searching for a job. [TEXAS LAWYER]
Attorneys & Sales
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So most lawyers feel a bit of panic when it comes to generating business. Law schools teach you to be a lawyer. But they don’t typically teach how to manage your practice, understand business and how to best handle client development. What was your major in undergraduate school? Did you ever work at a job that involved sales? This is not unusual for the legal industry. Most lawyers going have never had formal training on sales or majored in a business focused major. When it comes to marketing, it is all about real world practice. So why is this something you need to be concerned about at this stage of your career?
Law Firms Today …
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Lawyers in U.S.
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According to the ABA, there are 1,225,452 lawyers actively practicing in the United States with 40,000 more graduating from law school every year. Approximately a 2% increase
Law Firms Today …
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Lawyers in Texas
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In Texas, there are approximately 89,900 licensed attorneys Texas Population in 2012 was just over 26 million people. (26,059,203 ) 289 people per lawyer and that number is decreasing every year In fact the 2009 was the first year I started giving this presentation at SMU, the number was 344 people per lawyer (a 16% decrease over 4 years). But the good news is the number of businesses is increasing as is the regulations and compliance So it’s not like the old days …
Law Firms Today
Old Times vs Modern Times
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In the old days: You graduated from law school Returned to your home town Hung up your shingle Everyone knew you and knew that you were a lawyer Lawyers in those days practiced all types of law whether it was real estate law, family law or criminal law Back then, You do good work and the phone would ring. Over time it changed to: it was not what you know, but who you know. Now it is Who Knows What you Know
Lawyers Need To Understand …
You are the Lawyer doing the Work
You are the Sales Representative
You are the Account Manager
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This is unique to the legal industry. Most service industries break this up into teams where an expert in that particular area handles it.
So What is Client Development?
Building Your Relationships
Building Your Expertise
Building Your Name
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It’s basically letting the industry in which you practice know that you exist, what you do and why you are great at it.
Where to Start?
What Separates You From The Pack?
Define Your Target Market
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Niche Industry � Unique Practice Skill (E-Discovery, Maritime Law, Employment)� Build a Tribe (Around you or a hobby)
Where Do You Start?
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Defining a target market puts the border around the puzzle so you know where to work.
Accounting / CPA Firms Advertising Industry Aerospace Industry Agriculture Industry
Airline Industry Automotive Industry
Banking & Financial Services Industry Biotechnology Industry
Call Centers Industry Cargo Handling Industry
Chemicals Industry Computer / Software / IT Industry
Construction Industry Consulting Industry
Consumer Products Industry Cosmetics Industry Defense Industry
Education Industry Electronic Games Industry
Electronics Industry Energy / Oil & Gas Industry
Entertainment & Leisure Industry Fashion & Apparel Industry
Food, Beverage & Tobacco Industry Health Care Industry
Home Furnishings Industry
Hospitality Industry Insurance Industry
Legal Industry Manufacturing Industry
Media / Broadcasting Industry Mining, Forestry & Resources Industry Motion Picture & Television Industry
Music Industry Online Services Industry
Pharmaceuticals Industry Publishing Industry
Real Estate Industry - Commercial Real Estate Industry - Industrial
Real Estate Industry - Residential Retail & Wholesale Industry
Securities & Commodity Exchanges Service Industry Sports Industry
Staffing Firms / Outsourcing Industry Technology Industry
Telecommunications Industry Tourism Industry
Toy / Children Focused Industry Transportation / Railroad Industry
Utilities / Waste Management Industry
Niche Industries…
Define Your Target Market
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Niche Industry � Unique Practice Skill (E-Discovery, Maritime Law, Employment)� Build a Tribe (Around you or a hobby)
• The Firm Brand • Your Partners
• Friends • Family
• Other Lawyers • Existing Clients • CPAs • Doctors
• You’re The Best at What You Do!
• Industries (health care, construction, oil and gas)
Niche Market & Reputation
External Referrals
Internal Firm Referrals
Close Relationships
Referrals
Where Does Business Come From?
Sponsorships
Advertising Branding
Speaking at Events
Social Functions
Publish Articles
Developing New
Relationships Maintaining
Relationships
Blogs
Social Networks/ LinkedIn
Bio on Firm Website
Phone Calls & Emails
Announcements
Personal Letters
Educational Materials
How can one person do all of this!
Attorney
Web Development
Organizations & Committees
Lunches & Dinners
Direct Mail
Public Relations
Networking & Referrals
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So, what client development tools are available to a typical attorney: Attorney Public Relations (Speaking Events, Publish Articles) Web Development (Blogs, Google Alerts, Bio on Firm Website, Social Networking) Directing Mailing (Personal Letters, Educational Materials, Announcements Branding (Sponsorships, Advertising) Networking & Referrals (Social Functions, Joining Organizations & Committees, Lunches & Dinners) Phone Calls & Emails (Developing New Relationships, Maintaining Relationships) SO HOW CAN ONE PERSON DO ALL THIS!
So What is Client Development
The Right Mix Can Result In Clients Coming In The Door
Article You Published
Your Networking
Efforts
A Speech You Gave
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Well the answer is you can’t do everything (at least at this stage of your life). So you have to find the right mix for you.
The Tools to Make it Happen
Make a Plan!
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Profile Building Internet Presence Professional / Bar Organizations Community / Civic Activities Trade & Industry Associations Articles / Alerts / Media Relationship Building Get Organized Existing Clients Potential Clients Existing / Potential Referral Sources Internal Marketing Activities Education & Personal Improvement Legal Education Business & Industry Education Personal Development Firm In-House Education
A Down & Dirty Business Plan
Niche & Practice
•Identify & Learn Practice – You need to be good at what you do first. •Identify & Learn Niche Market – Identifying a market niche is KEY to making the rest of this process easier •Get Involved in Niche Market – Join organizations, attend events, build relationships with industry media, speak at events, get involved in the leadership, write a blog.
Referrals
•Identify Referral Sources – Clients, past clients, LRM, CPAs, doctors, friends, family, personal activities, classmates, etc. •Build Relationships – Take to lunch or ballgame, help them out, keep in touch. •Make Sure to Communicate What You Do – Give them literature, explain your practice.
Prospect Clients
•Learn About Their Company and Industry – Read 10k filings, OneSource reports, Google alerts, industry publications, visit their office, use third party contacts who may know more details, learn what keeps them up at night. •Learn About Their Personal Life – Family names, birthdays, vacations, hobbies (record it all so you can take advantage of it), make them a friend. •Listen to Their Problems and Close the Deal
Clients
•Keep in Constant Communication With Them – Keep them updated on the process and the budget. Even after the legal matter is over, keep the relationship active through lunches and mailings. •Cross Sell Other Areas of the Firm – It is proven that cross-selling solidifies the client relationship even more. •Recognize Top Tier Clients – Give them a gift, consider alternative fees or discounts.
The Tools to Make it Happen
Become a Networking Guru
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Some people are naturals. Others are not. You have to be out there. Find groups to be involved in. GET INVOLVED!!! Build a database to remember names, birthdays, spouse and children’s names, hobbies, etc.
The Tools to Make it Happen
Utilize the Internet
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Firm Bio LinkedIn Social Media Blogs
The Tools to Make it Happen
Speak & Publish
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Internal Presentations Client Presentations Industry Presentations Draft an article, then give a presentation on it.
The Tools to Make it Happen
Create A System
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Business Plan Client Database (Tiered)
Status Contact Name Company
Freq
uenc
y
Rel
atio
nshi
p
Posi
tion
Ove
rall
Rat
ing
Last Contact Date / Kind Recent Action Legal Needs
Client Diane Smith ABC Company 8 8 6 22 5/20/08 Phone Took to lunch. Discussed partnership agreement. Following up in two weeks.
Prospect Michael Jones XYZ Company 2 1 3 6
Went to lunch. No business discussed but plan to follow up in two weeks to take to a basketball game.
Referral Andy Jones 124 CPA Firm 7 4 8 19
0
0
0
0
The Tools to Make it Happen
Priority Contact Sheet
What Stage Are You In?
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So what stage are you in? These are the various stages through your career.
What Stage Are You In?
Associates: Learning to be a Great Lawyer Your Main Client is Your Boss and the Firm Create a mailing list of future potential
clients/referrals Join the local Bar Association (and get involved) Develop A Business Plan Stay on Top of Current Events Engage in at least one face-to-face marketing effort
per week
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Learn To Be A Great Lawyer: Your main priority is just learning how to be a lawyer. Take every opportunity to learn and hone your lawyering skills. Arrive on time and stay until the jobs done. Ask thoughtful questions. Pay close attention to detail. Meet deadlines. Seek feedback about your performance. Find a good mentor to help you with your business skills and time management. Your Main Client Is Your Boss and the Firm: Treat your supervising attorney as your client. For now, they are your client. Get to know what they want, what they need and find ways to exceed their expectations. Learn about the firm and get to know the other attorneys. Build a Referral Database: Keep in touch with your old and new contacts. Build an excel database filled with your old classmates and friends from high school, college and law school. As you join organizations such as the local bar associations or young lawyers association, add people you meet there to your database. Mark those that you think are most likely to go far in business or send you a lot of business and regularly work those relationships. Join the Local Bar Association Join the local bar association and/or the young lawyers association. GET INVOLVED! Don’t just join, but find a way to be active. Otherwise, you just paid a lot of money for a newsletter. Develop a Business Plan: Develop a Business Plan that outlines your goals and objectives. Review it monthly and create action items to make sure you accomplish your goals. Stay on Top of Current Events: Subscribe and read business publications and newspapers. This should be a daily practice and will help you understand the business world and allow you to find opportunities for your client. Setup Google Alerts to send you daily emails about the areas you are interested. You should set one up for your name, each client and your client contact’s name, as well as industry topics. iGoogle allows you to see news every time you open your browser. This all gives you knowledge of the industry in which you practice and hopefully a few tidbits that you can pass on to your client. Face to Face Meetings: Have lunch w/ your clients. Make it a goal for at least one lunch per week. Take your clients to sporting events or social events.
What Stage Are You In?
Senior Associates: Still Learning to be a Great Lawyer Define and Promote your “niche” Add to database of potential clients/referrals Visit client’s facilities, factories, stores Get involved in trade associations related to your
niche Write at least two articles per year Present a speech to legal or industry group Engage in at least two face-to-face marketing effort
per week
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Find Your Niche: It will take several years but you will need to find your niche in the legal industry. You can’t be all things to all people. So you will have to focus your practice on a specific area of the law or business industry. You are more likely to be successful if you are an employment law attorney focusing on the hospitality industry than if you were a general commercial litigator. And once you find your niche, let the world know! Join Organizations/Network: As you develop your practice, join organization in the industries in which you practice (i.e., oil and gas, real estate, construction, etc). Stay on Top of Current Events: As your practice niche forms, subscribe to and consider publishing in those industry publications. Write/Speak: It might be a few years before you can do this but look for opportunities to speak at events or publish articles in the media on your area of expertise. This will help build your credibility as an expert in your field.
What The Client Wants
The Client Wants An Exceptional Experience
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So what does the client want? The ultimate goal is to provide your client with an exceptional experience. So rather than me telling you what the client wants, here it is in their own words:
What The Client Wants
“Don’t take client calls or use your blackberry while you are in meetings with me unless it’s a true emergency. Make me ‘feel’ as if I am your only and most important client even if I’m not.” “Return calls promptly or have someone else return it in your absence to let me know when you’ll return the call.”
Source: WickerPark Group
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These are actual comments from law firm clients courtesy of the WickerPark Group who does nothing but analyze client feedback. Bottom Line - You are there for the client
What The Client Wants
“Clients are good at taking bad news - when they aren’t surprised.” “In-house counsel hate to be surprised. Surprises are the worst.” “Communicate with me directly as soon as you think things will be different than expected with fees, outcomes, results.”
Source: WickerPark Group
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Bottom Line - Be Honest / Communicate
What The Client Wants
“Think ahead. Look to the future and tell me what you think are upcoming issues and trends that will impact my business and how. Then, tell me what I should do about it.” “Demonstrate you understand my business. Spend time on site with my legal department and business people, take a facility tour, attend industry meetings with me and read my trade publications.”
Source: WickerPark Group
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Bottom Line - Know your client’s industry and their business
What The Client Wants
“Show me that you’re thinking about me. When you send me an article or legal update tell me why and how it might affect my business.” “[partner] was amazing. He is our go-to and we wouldn’t think of calling anybody else at this point. We especially appreciated the off the clock strategy session with our CEO last December.”
Source: WickerPark Group
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Bottom Line - Look for opportunities for your client that is off the clock or free of charge. This ups your value. Provide an exceptional experience.
To Tools to Make it Happen
Questions
In Summary
Find Your Passion
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Bottom line is to find your passion in client development. It will make it that much for fun, enjoyable and you won’t procrastinate on it.
