In legal knowledge management and IT circles, the concept of Legal Project Management as a discipline has been a hot topic for the last two years. In marketing circles, … not so much. Amidst client development programs, service offering launches and the support and evaluation of new business opportunities, few law firm marketers seem to be thinking about how firm processes and technologies can reshape the fundamental value proposition of a firm.

But lawyers and marketing professionals who are thinking about how to reposition their firms to thrive in the future should consider the role Legal Project Management can play in that effort. Differentiating a law firm is harder now than ever before. The market is converging. The gap between the top firms and the rest of the playing field is widening. The firms at the top are getting the choice matters and are cherry picking the talent. There are few areas in which the rest of the field can still compete…. with one exception.

Firms of any size have the opportunity to demonstrate their unique value to clients by working more efficiently. Legal Project Management (LPM) principles provide the framework around which to do this.

LPM applies traditional project management concepts to the control and management of legal cases or matters. As explained by Jim Hassett in the July/August issue of Managing Partner (subscription required), there are eight elements of LPM:

• Setting the objective and defining the scope
• Identifying and scheduling activities
• Assigning tasks and managing the team
• Planning and managing the budget
• Assessing risks to the budget and schedule
• Managing quality
• Managing client communication and expectations
• Negotiating changes with clients

These elements are inherently part of any case or matter. The difference with LPM is that these steps are managed in an ongoing and consistent way. From a marketing standpoint, that translates into the following opportunities:

1. Enhanced Client Communication. Survey after survey reveal that client communication (or lack of it) is a primary driver of corporate decision making when it comes to hiring a law firm. With LPM, law firms have the tools they need to stay responsive and address issues in a proactive way with clients. LPM provides the tools for planning and managing a budget. It allows you to better manage quality. It also allows you to address unanticipated changes that invariably occur during the course of most matters.
2. Demonstrate ROI. The consistency that LPM brings to the table means there is an opportunity to demonstrate a quantifiable return on investment to clients — something very few firms have mastered successfully. Consider having the ability to conduct a post-matter client debrief in which you can evaluate the actual costs incurred against the original estimated budget, and then using that hard data to discuss ways in which you and the client might be able to improve management of a particular type of matter in the future.
3. Alternative Fee Arrangements. As we all know, everyone wants AFAs, but few people know how to put them together confidently. Fewer still know how to do so profitably. LPM provides the tools to effectively looking at the true cost of a matter, and the tools for better managing the matter during the project.

LPM as a discipline has the opportunity to make a lasting impact on how lawyers do business. But we all know change is slow to come, particularly if left up to the lawyers alone. Marketing professionals should get involved with their knowledge managers, IT and pricing colleagues to help drive this change.

Reflections on the impact of the emerging Global 25: Part 3

The first time I heard the term, ‘lawyer’s lawyer’ was during an interview with a senior partner about what made his firm different. His response was that they were “lawyer’s lawyers.”

He was referring to the reputation the firm’s lawyers held within the legal community — among their peers, their opponents and the bench. Being a ‘lawyer’s lawyer’ validates something that drives most every lawyer I know: The need to be recognized for being really good at what they do.

Unfortunately, it is no longer enough to be a ‘lawyer’s lawyer.’ It is not that subject matter expertise and professionalism are not important. They are. But those qualities are merely the price of entry. Lawyers today need to do more. They need to be ‘client’s lawyers.’

Client’s lawyers are true strategic partners. They focus on matter management, providing value-added services, forging strong client relationships.

Inside the law firm, they may not bill the most hours. But they are finding ways to make the work they do more efficient for their clients. Perhaps most significant is that they repeatedly bring in new business from the same clients over and over.

There is no question that the attributes of a ‘lawyer’s lawyer’ are important, but the true rainmakers of the future are those who can manage work effectively and build client relationships. Firms need to stop focusing on hours billed and mere reputation and start looking at the qualities lawyers hold as it relates to building repeatable business from profitable clients. That’s where the talent focus needs to shift.

As the gap between the emerging Global 25 and the rest of the firms widens, firms on the outside looking in need to rethink they way the value their own lawyers. Firms need to look at their partnership criteria and make sure that being a “client’s lawyers” is equal to, if not more important than, being a “lawyer’s lawyer.”

That’s the true point of differentiation.

Reflections on the emerging Global 25: Part 2

Legal is a profession, not an industry. Law firms are different; They don’t sell widgets.

These are the theorems I was first introduced to when I started covering law practice management for the ABA Journal after graduating from law school in 1998.

I challenged the first when I saw lawyers taking stock in lieu of fees during the dot com era. Clearly the “double comma” revenue lawyers that sprouted up after a successful IPO proved being a profession and an industry are not mutually exclusive. Lawyers are in the business of making money. Revenues from legal services are estimated at $210 billion in the United States alone.

With the gap widening between the Global 25 and the rest of the law firms, it’s time to challenge the second theorem. These elite firms will get the most profitable work and will be able to cherry pick the best talent from the other firms.

The rest are going to have to compete for the remainder of the work – much of which is being commoditized. Instead of fighting the inevitable, firms have an opportunity to provide more value to their clients by finding ways to productize what they do. Law firms outside of the Global 25 will need to fundamentally rethink the way they deliver legal services. They need to start selling widgets.

By selling widgets, I’m suggesting lawyers look to productize their services in a way that better demonstrates value and is priced accordingly. Whether you call it value-based billing or an alternative fee arrangement, its about packaging legal services in a way in which clients understand what they are getting for what price.

What’s more, it may actually mean that lawyers get paid for doing less work than they would if billing by the hour. Let’s face it, the things lawyers provide that add the most value — making a vilified defendant look sympathetic or opening doors a client might not even know exist — cannot be billed in six minute increments. So instead, there is pressure to make the “stuff” of lawyering — the documents, the briefs, the filings — to be created in an inefficient way in order to create enough billable hours to make the work profitable. In the end, whether it takes 10 hours or 100 hours, the “stuff” that is produced — so long as it is right — is worth the same. Why penalize those who produce the work more efficiently?

By billing at a flat rate or on a project basis, lawyers and their firms will be incentivized to work more efficiently on the paper work and to focus their efforts on the areas that truly make lawyers valuable — their role as a strategic partner.

Why not sell the widgets and differentiate yourself on the distinct strategic services you provide?

I recently started attending a networking group comprised largely of professional services executives. In talking with one of the founders of the organization, he noted that they’ve had a hard time keeping attorneys as active members.

He personally invited about 25 different attorneys to participate. They attended a few events but slowly dropped even though the organization itself had grown tremendously.

He believes, and I agree, that most lawyers just don’t understand how to network effectively and would benefit by taking a lesson from their counterparts outside the legal profession.

The Strategy of Networking

Networking is as much science as it is art. Too many lawyers think about networking as a single act rather than a process with rules that must be followed.

Rule #1: Engage

Networking is about building relationships with people who need your services or can refer you business.

A networking event is merely the first stage of this process. It’s a place people go to make introductions. That’s it. You don’t have to sell. You don’t have to buy. All you have to do is engage.

If that is outside your comfort zone — and you aren’t alone if it is — try this formula: Smile. Say, “My name is…” and ask a question. Chat for a couple minutes an learn what the person does and whether they are someone who might be of value in developing your business. Exchange business cards. Move on to another person.

Rule #2. Follow-Up

An introduction alone is not a relationship. That takes place after the event is over, starting with the follow-up.

Don`t wait for people to reach out to you. Send a short email to the people you met. Tell them you enjoyed meeting them. Mention something specific that you discussed. Offer yourself up as a resource in their efforts to grow their business. If they are a strategic contact — and not everyone is — suggest coffee or lunch.

Rule #3: Connect

Coffee or lunch is where the real relationship begins. This is a connection, not a sale. Your goal is to find out if this person can help you. Do this by learning everything you can about them and identifying how you can help them. The more you do for them, the more likely they will want to help you. Again, you need to follow-up.

Rule #4: Reciprocate

Chances are, if you are networking properly, the person you met is going to try to help you with another introduction, a referral or a business development idea. This is where the most important rule of networking comes in to play.

You have to reciprocate.

Relationships are a valuable commodity and sharing them is an investment that comes with a certain amount of risk. The people you are networking with are there for the same reason you are. They deserve the same return on investment as you.

“[INSERT LAW FIRM NAME] is a full-service law firm with market-leading strengths in the energy, financial services, real estate, technology, pharmaceutical, and [insert industry] sectors. Our multidisciplinary teams handle business transactions, M&A, intellectual property, corporate governance, complex litigation and anything else that could come your way. In other words, we do anything for anyone.”

With the exception of the last sentence, this description or a near facsimile could be found on any of hundreds of law firm websites around the globe.

Well-intended writers — usually at the direction of attorneys — often try to appeal to the widest possible audience of existing and prospective clients. The impact is just the opposite. The description ends up so broad that the message appeals to no one.

Buyers of legal services are more sophisticated than ever. They don’t have time to waste. And the competition for their attention is fierce. Too often law firms fail to reach their target audiences because they try to be everything to everyone.

Through market segmentation, law firms can gain greater insight into what drives the unique audiences they serve to buy legal services.

Market Segmentation

Simply defined, a market segment is a group of people who have similar demands and needs based on common characteristics, such as a shared demographic, geography, psychographic or behavior. As a result, the way a segment makes buying decisions is typically the same.

With an understanding of what drives and motivates a segment, you can create messages and identify specific marketing tactics that will allow you to get the attention of your audience.

A simple exercise to better understand a market segment is to consider the following:

1) What are the unique challenges facing this segment?

2) What specific benefits does our firm offer this segment?

3) How does this segment communicate?

Do this with two-to-three different segments and compare the results. Then look at the key messages your firm uses to market. Do they apply to the segments you’ve identified?

The reality is one-size marketing usually fits none.

My husband ran the Boston Marathon on Monday. Even as a spectator, it was a pretty amazing experience. Steve finished with a PR of 2:50:26, placing him 646 overall out of 27,000 runners. He smiled the whole time he was running.

Training for the race was time consuming. He qualified last October at the Chicago marathon. Since then, he’s had a plan in place that included weekly running goals for mileage and for time, group runs with friends who have more race experience than he does, and weekly visits to an active release therapist to help keep him healthy.

He did this while balancing work and family obligations. It was hard work, but he set a goal and was determined to see it through.

One of the biggest excuses I hear about marketing and business development is that there is not enough time. I say excuse not because I don’t think people are busy. We are. We all have demands on our time and we have to prioritize.

But time is a funny thing. There is never enough of it. But when you really want something, you’ll find a way to do it. You can find away to make it to your kid’s ball game. You can find a way to write that article for an industry publication. You can find a time to take your client to lunch.

And once you do all of that, you can think about running a marathon. After all, isn’t that what life is anyway?

It was a good week at work. One of my clients launched a major business development initiative. Another finalized materials for a marketing campaign to promote a new service line. A third got through a tedious set of meetings in preparation for a CRM deployment.

I even got my taxes done.

All of these projects — especially my taxes — could have been done weeks ago. What got in the way? Excessive planning.

Listen, no one believes in planning more than me. I’ve made a career out of  it. But when it comes to marketing and business development, there are times when planning gets in the way of progress.

Plans are not legal briefs. They do not require you to spot every single issue at hand — just the most important ones. They don not require every potential objection to be anticipated. They just need to be rational.

Plans are a simply a road map that define what you want to accomplish, how you are going to go about doing it, and what success will look like when you are done. If something doesn’t work, you can alter the course or change the approach to improve the results. For marketing and business development, the journey is half the fun.

Some times you just need to dive in and do it.

A great leader I know used to conclude his staff presentations by saying, “They say that showing up is half of life. I thank you for showing up today.”

There is a lot to be said by that statement. Showing up is important. It means you care enough to take time out of your day to consider, and maybe even engage, in important discussions. It gives your voice a chance to be heard. You can offer solutions. It beats doing nothing, but it is only half.

The other part requires you to roll up your sleeves and do the hard work. It takes time. It takes effort. It takes risk. It’s hard. But it is half of life. Too many people, lawyers, law firms only show up.

It’s a tough legal climate out there. The economy seems to be turning, albeit slowly, for the better. Opportunities appear to be on the horizon. For those that spent the downturn showing up to talk about what they needed to, it’s not going to be enough.

It’s time to put plans to action. It’s time to make the investment. It’s time to execute. Don’t let half your life go by.

One month ago today I was confined to a hotel room with severe back pain. It was the aftermath of Legal Tech New York and I was supposed to be on a plane back to San Diego. Instead, the hotel doctor was giving me a Cortizone shot and ordering me not to move. I’m 41. I run. I do yoga. I drink spinach smoothies for breakfast. This should not have happened.

Thanks to the miracle of modern medicine and a new active release therapist, I’m fully recovered and I went back to the gym for the first time this week. It’s hard. I feel slothy and out of shape. Because I am out of my routine, even the simplest activities seem to take a lot of effort. But I know the most important thing to do this first week back is be consistent. I don’t need to run a marathon, but I need 60 minutes a day doing something. When my alarm goes off at 5 a.m. and I want to roll over and go back to sleep, I say to myself, “If not now, when?”

This new mantra has a law firm application. Since the start of the year, I’ve been involved in a number of discussions about how to motivate attorneys to contribute to firm marketing and business development activities. The plans are in place. The heads are nodding. But the work isn’t getting done. For some reason the motivation isn’t there.

As partners, doesn’t the need to grow or at least maintain a thriving practice provide enough motivation to find ways to build business — both as an individual contributor and as an owner? It would seem that if the demand for legal services is down and more attorneys are competing for the same dollars that there would be a sense of urgency to raise your firm profile and create a more disciplined approach to growing business.

After all, if not now, when?

In the quest for the perfect law firm business model, I’m often asked about the best way to balance the practice of law with the time needed to develop new business.

While there is no silver bullet, here are three first steps to consider when developing a plan to grow your practice.

1) Start with the partnership.

If your firm has a strong business development culture, your equity partners are regularly out there marketing themselves and your firm. But do a gut check. Typically 20% of partners generate 80% of a firm’s business. That may mean that more attention should be focused on helping rainmakers generate more rain. However, it does not mean that they are the only ones who need to be marketing.

Every attorney in the firm has a responsibility to dedicate non-billable time on helping the firm grow. In my experience, not every attorney needs a personal business plan. Non-rainmaker attorney time may be better spent supporting specific marketing and business development initiatives at the firm or practice group level.

2) Evaluate your current workload.

Where does your work come from currently? If it’s another partner that is feeding you work, how can your support her business development goals? If you rely on referrals, what are you doing to stay in touch with those referral sources? If you are trying to develop a new area of practice, what speaking or writing opportunities are available to you to raise your visibility before prospective clients?

3) What is your current utilization?

To meet your professional goals (firm or personal), how much of your time are you willing to work?

What percentage of that time must be spent on billable matters to meet your minimum financial goals?

How much time is left?

If the answer is zero, you need to rethink your business plan. There are only 24 hours in every day. To maintain a steady pipeline of business, you need to make time to do it. That means spending less time on current clients or devoting more non-work time toward your business development efforts.

It’s all about balance.