Business Development

Business DevelopmentSuccess Strategies for the Global Firm

Charles A. MaddockAltman Weil Inc.

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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.

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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

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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?

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Looking at:

clients

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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

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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

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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

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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

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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

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Looking at:

lawyers

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Lawyers as MarketersVisual AuditoryEmpathic CerebralCreative LogicalOptimistic SkepticalCollaborative AutonomousExecutives OwnersSynergize PersuadeReflective Urgent

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Success Strategies

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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

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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

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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

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…and which tools don’t

U.S.• Brochure• Advertising

(trade)• Advertising (legal)

EU/Asia• Brochure• Advertising

(trade)• Advertising (legal)

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Build from clients first:

SuccessStrategy

• Client Teams.• Technology integration.• Corporate Counsel

Conferences.• Annual Legal Plan.• Reverse seminars.• Annual Client Audit.

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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

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Involve the right lawyers• Find a role.• Provide tools and direction.• Test.• Train.• Evaluate.• Compensate.

– For effort.– For success.

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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.

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The billable hour is your year.The non-billable hour is your future.

David Maister

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Questions?

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Contact:

Charles A. MaddockPrincipalAltman Weil, Inc.(610) 886-2000camaddock@altmanweil.com