Copyright ©, 1996-2009, The WJF Institute. Sales Lessons Law Firms Can Learn from the Corporate World: Bringing in More Business Using Key Client Teams

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


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


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


Key Account Management and Leadership Structure

International account manager

Sales team

Technical team

Administrative team

HQ management and support


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


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


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


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


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


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


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


What Your Firm Can Adopt and Adapt


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?


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


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.


Marketing Math to Help Develop Team Tactics and Strategies


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


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



Flannery LLP


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


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


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


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


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


Key Client Management Opportunities


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


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


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


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


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


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


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.


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


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


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


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


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.


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


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


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


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?


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?


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


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)


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


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?


What and how to report (cont’d)Competitive activity

Resources needed

Team status

Next milestone / meeting


Rule: Reward success, reward failure, punish inaction


Practical Ideas on Closing the Knowing / Doing Gap


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


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


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]

Documents

Copyright ©, 1996-2009, The WJF Institute. Sales Lessons Law Firms Can Learn from the Corporate World: Bringing in More Business Using Key Client Teams