There is a very interesting debate going on at the moment over on the Law Society Gazette’s LinkedIn group about the role of non-lawyers, and whether 2010 will see an influx of new external talent into firm management. Any LinkedIn members would be well advised to check it out, and to get involved.
The consensus, if there is one, seems to be that many law firms need a more commercial approach to management – and that bringing in more talent to operational roles is a key element in this.
However, top class professionals in finance, marketing, HR, IT, as well as business management generally, will not accept being treated as ‘second class citizens’. Firms need to think very seriously about their management and ownership structures if they are to attract and retain people of the requisite calibre. Value creation does not begin with the legal work, and the value that these people add must be recognised.
The key issue in managing the relationship between solicitors and non-legal staff is communication. Lawyers have a completely different mindset from accountants, marketers, IT or HR specialists. Often, the mindset engendered by legal training leads people to value faultless arguments and a focus on problems rather than opportunities, which can be unhelpful in achieving the compromise needed for successful management.
Non-legal professionals need to understand this mindset, and vice versa, in order for communication to be successful. Above all, lawyers need to recognise that the other professionals with different backgrounds and functions in their midst are every bit as valuable to the business as their fee earning staff.
Whether or not 2010 sees a further shift towards non-lawyers, it is a question for firms of how they organise their management. Often, the best option can be to bring in the expertise on a retained basis, so long as this expertise is provided by someone who knows the legal market and the ‘lawyer mindset’ inside out.
Thursday, 24 December 2009
Wednesday, 2 December 2009
Developing Business through the Database
It is commonplace to hear that cash in the legal market is in short supply – and, with the possibility of the economy emerging from recession in the next year, firms looking to grow again will have an even greater need for cash to stay solvent. Tighter budgets aside, how does this impact on the day to day operations of business developers?
It is one of the less exciting facts of business development that it is far more expensive and time-consuming, for example, to attend networking events to get a new client’s business, than to get business from an existing client. Therefore, any firm wanting to increase sales without significantly increasing costs should concentrate on their existing clients. And the key to this – the client database.
Investing in the Database
The client database is not particularly glamorous, but it is without doubt your most valuable tool for maintaining sales while those around you suffer. Above all, the database needs to be as complete and accurate as possible. This is the only way to be sure that you are targeting the right people for the right services.
This means that the database must be cleansed and maintained, and once it is up to date, information collection should be limited at first. Too many database exercises fail because of over-ambitious collection targets. Only basic and essential marketing information need enter the database, such as contact details and services provided. Marital status, home ownership and employment position would be an excellent start for a private client database. Building a relationship is important, so home as well as work email and other family contacts may be appropriate.
Professional Standards
Information collection is a question for individual departments and teams, but setting standards up front is a vital task. Professionals generally respond well to the concept of standards, especially when they have been involved in setting those standards. Therefore, every team should get together and set the standards of database maintenance to which they will all adhere. This is especially important for the initial client interview when, by its very nature, there is more freedom to ask wider ranging questions. Having achieved this buy-in, there can be no complaints when individuals are expected to explain any cases of non-compliance.
Certain standards will apply to all fee earners, regardless of their practice area. Information must be collected at the first meeting, using a standard form (which will have been created using the standards defined by the team). All necessary fields will be completed.
Trusting in the Database
The biggest obstacle to effective database management is a lack of trust – not of the system itself, but of the other fee earners who will be using the information stored in it. Partners in law firms are notorious for ‘hoarding’ clients, demonstrating an inherent lack of trust in their colleagues. If the firm is to develop its business successfully, this barrier must be broken down. Cross-selling is a crucial part of business development, especially when times are tough, and having a well-managed, up to date database is central to this.
Lack of trust is endemic within legal partnerships, and the issue of database management is symptomatic of this. So it is important that, when setting the standards for data collection, procedures and guidelines to usage are agreed. Data owners must have confidence that the information they provide is going to be respected. However, something as seemingly basic as the database can play an important part in overcoming this challenge – and promoting cross-selling and business development in the process. That is surely worth investing in.
It is one of the less exciting facts of business development that it is far more expensive and time-consuming, for example, to attend networking events to get a new client’s business, than to get business from an existing client. Therefore, any firm wanting to increase sales without significantly increasing costs should concentrate on their existing clients. And the key to this – the client database.
Investing in the Database
The client database is not particularly glamorous, but it is without doubt your most valuable tool for maintaining sales while those around you suffer. Above all, the database needs to be as complete and accurate as possible. This is the only way to be sure that you are targeting the right people for the right services.
This means that the database must be cleansed and maintained, and once it is up to date, information collection should be limited at first. Too many database exercises fail because of over-ambitious collection targets. Only basic and essential marketing information need enter the database, such as contact details and services provided. Marital status, home ownership and employment position would be an excellent start for a private client database. Building a relationship is important, so home as well as work email and other family contacts may be appropriate.
Professional Standards
Information collection is a question for individual departments and teams, but setting standards up front is a vital task. Professionals generally respond well to the concept of standards, especially when they have been involved in setting those standards. Therefore, every team should get together and set the standards of database maintenance to which they will all adhere. This is especially important for the initial client interview when, by its very nature, there is more freedom to ask wider ranging questions. Having achieved this buy-in, there can be no complaints when individuals are expected to explain any cases of non-compliance.
Certain standards will apply to all fee earners, regardless of their practice area. Information must be collected at the first meeting, using a standard form (which will have been created using the standards defined by the team). All necessary fields will be completed.
Trusting in the Database
The biggest obstacle to effective database management is a lack of trust – not of the system itself, but of the other fee earners who will be using the information stored in it. Partners in law firms are notorious for ‘hoarding’ clients, demonstrating an inherent lack of trust in their colleagues. If the firm is to develop its business successfully, this barrier must be broken down. Cross-selling is a crucial part of business development, especially when times are tough, and having a well-managed, up to date database is central to this.
Lack of trust is endemic within legal partnerships, and the issue of database management is symptomatic of this. So it is important that, when setting the standards for data collection, procedures and guidelines to usage are agreed. Data owners must have confidence that the information they provide is going to be respected. However, something as seemingly basic as the database can play an important part in overcoming this challenge – and promoting cross-selling and business development in the process. That is surely worth investing in.
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