BTI Consulting Group hosted a webinar last week detailing findings from its 2011 Litigation Trends survey. My favorite slide of the presentation was titled “Clients Blind to Law Firm Changes.”

The slide depicts a two-bar graph. One bar reflects the percentage of litigators who believe they are delivering more value to clients. The other depicts the percentage of clients who say they are getting more value. The findings are revealing: More than a third of litigators believe they provide more value to clients, yet less than 12% of clients say they are getting more.

What’s more, it is client service and satisfaction — not depth of experience, reputation and legal skills — that are driving litigation hiring decisions by a margin of 2-1, according to BTI.

Where does your firm stand? Here are a couple ways to find out:

1) Ask your clients. If you don’t have a formal client service plan in place, get one. If your current program has fallen off the priority list, move it back up to the top.

2) Talk to each other. Identify specific ways in which you and your colleagues have solved a problem that is unique or different. Define areas outside of your legal expertise that your firm offers clients that others don’t.

3) Create a plan with specific goals around value and execute on it. Once that is done, ask clients to validate your efforts.

It is time for law firms to do a gut check. Are your lawyers truly bringing more value to clients or do they just think they are?

Happy New Year everyone! My hiatus from posting was brought to my attention earlier this week when a client mentioned she hadn’t received any blog updates in awhile. Well, I’m back and hope to stay on track throughout the year.

I’ve spent the last day or so catching up on commentary about what the future holds for law firms. Richard Susskind has predicted greater acceptance of cloud technology and greater influence of the iPad. Larry Bodine opines “innovate or die” will be the new law firm watchword. Jerome Kowalski predicts the current system of legal education and training of lawyers will undergo revolutionary changes.

These observations clearly hold merit. So for my 2011 forecast, I add merely a corollary: If, to paraphrase Jonathon Livingston Seagull, “every problem is an opportunity in disguise,” then I predict great opportunities for law firms in the coming year.

Even with an increased demand for services, law firms will continue to face rough waters in the year ahead.

The underlying problems — illuminated, not caused, by the economic crisis — of failing to adopt new technology, to shore up billing and compensation plans, and to respond better to the needs of a more sophisticated legal market is in fact an opportunity.

The firms that do leverage new technology such as cloud computing, that do innovate, that do undergo revolutionary change in the way they train lawyers who will be the ones who ultimately survive and create a new model for practicing law.

I hope your firm is one of them. Have a great year!

It’s that time of year when we try to tie up loose ends in a neat little bow start thinking about what lies ahead. I love the new year and the feeling of being able to start fresh with new goals and a new energy to accomplish them.

In working with clients on planning for 2011, I’ve noticed a difference in the way my law firm clients think about business development and the way my corporate clients do. Corporate clients tend to start by thinking about what they want to accomplish and move backward from there. Lawyers tend to say, “I want to do x” and then evaluate what it will cost second, without necessarily taking into account what they want to accomplish. The corporate approach ties the goal to the objective so you can measure return on investment.

For example, I work with a legal vendor who is focused on creating regional marketing plans that can be tied specifically to the performance of the sales representatives in each territory. The company itself has big plans. They are bringing new products and services to the market. They are planning a major market expansion. But their strategies for raising visibility and increasing revenue focus on the basics.

Here are three ideas I think law firms would benefit from incorporating:

1. Tradeshows: Develop formal business development strategies for any tradeshow to which you commit. This includes gaining access to attendee lists in advance of programs, where possible, so the attorneys attending can target specific people they want to meet. Schedule a post-event debrief in advance of the event. Make sure to include all relevant parties, including marketing, the attendees and any practice group leaders. Evaluate the quality of the event, direct prospecting that was done there and specific follow up that needs to be done, who will do it, and when.

2. National Sponsorships: If you invest in a national sponsorship, make sure you maximize your sponsorship dollars and take advantage of every potential benefit possible. Work with the organization’s sponsorship chair. They want your dollars and will work with you to help you achieve your specific goals. If they won’t, reconsider the investment.

3. Require your attorneys to “play to pay.” Make active participation in an organization a requirement for membership or sponsorship. This means going beyond showing up at a monthly meeting. It means taking on a leadership position or committee role that will allow the attorney to engage with members. It’s the relationships you develop that are going to determine the value of your investment.

These are not innovative concepts. They simply are proven basic techniques that will strengthen your business development foundation.

The holiday season is officially upon us. Thanksgiving is always a reminder to me that I have two switches in life: on and off. There is not much in between. I eat or I don’t eat. And so far this year, my eating switch is on.

They say the average American gains seven pounds during the holiday season. I think I gained at least that much over Thanksgiving alone.

The start of the holiday season also means the countdown to the end of the year collections for most firms. As a marketing person, this is usually my cue to duck and cover and avoid any incoming attorneys. But it is also a time where day-to-day marketing efforts slow and some long-term planning can actually take place.

So, before shutting down for the year, take a little time to think about what lies ahead. There is no better time than now to start planning to make 2011 your best year ever.

I am the daughter of a salesman. My dad sold Marley Cooling Towers for more than 40-years before his retirement about a decade ago. He was good at it.

Cooling towers are the giant box-shaped structures you see on large buildings. They are used to regulate heating and air conditioning units by cooling hot water so it can be reused as a coolant.

Cooling Towers and legal services fall on two distinct ends of the sales spectrum, but they do share a couple things in common.

Like legal services, cooling towers are not particularly sexy. Just as most folks don’t relish the thought of needing a lawyer, there aren’t many folks out there saying, “Gee I can’t wait to buy my new cooling tower this year.”

They also aren’t something sold in mass quantities. Like law firms, they have a long sale cycle and one major client can have the power to make or break your year.

My dad taught me that selling is part of anything you do in life. It really comes down to four steps — introducing yourself, asking questions, demonstrating what you do or have to offer, and asking for what you want. Translated in official sales jargon, the steps are: 1) Open 2) Needs Assessment 3) Demonstration 4) Close.

My first career was as a newspaper reporter, and every day I was out there selling. I needed information and I sold my own credibility to get it. I got to know people. I asked questions of them. I built rapport, and I asked them what I needed. I knew I had closed when I got my story.

As a marketing and business development consultant, my ability to sell continues to define my success. Being a lawyer is no different. Whether you have the word sales in your title or not, your business is selling. And there is nothing wrong with that.

Take your mind out of the gutter. The word I am talking about is Sales.

Over the last decade I have attended hundreds of law firm marketing seminars and conferences where the topic of sales is on the agenda. The theme is universally similar — Should law firms do it and, if so, how?

The subject of law firm sales always makes me smile. Given that — with the exception of the recent economic downtown — law firms have seen their revenues and profits rise exponentially over the last 20 years, I’m still surprised at the unwillingness of lawyers to acknowledge that selling is an inherent part of what they do.

As Weston Anson, author of “The Attorney’s Guide to the Business Mind,” states in his book — All business is selling:

“All economics is driven primarily by business and commercial interests. And all business is, indeed, driven by sales. Therefore, successful economics equals successful sales. This gross oversimplification does not gloss over a basic truth: that is, wihtout successful sales and marketing programs in place at all levels in any organization — from law firms to Procter & Gamble — planning is fundamentally unsound. Without strong sales and marketing, there is not a strong business base…”

As a licensed attorney, I have deep respect and admiration for the legal profession and the code of professional conduct that goes along with it. The world is changing and it is of great vital importance that we work to uphold the foundation on which the profession was built. But we should not fear the vocabulary. Being an ethical lawyer and recognizing that selling is an essential part of the business are not mutually exclusive.

The debate in firms should not be whether to do it or what to call it, it should be about how to do it in a way that allows lawyers to provide the highest standard of legal representation. But whether you call it marketing or business development or even what it is — sales — it is an essential part of the business of law.

Last week was the first week I went without posting a blog. I also turned down a golf outing with a former colleague who is now a prospective client. My excuse? I’m too busy.

It’s true. October was a great month for my business. I have a new client ramping up and my existing clients are keeping me as busy as they ever have. And, I have a life. I have commitments to my family, friends and community that can’t be ignored.

But can I afford to say I am too busy to market myself and continue to develop new business? No.

I’m not alone. I have prospective clients tell me all of the time that they want to utilize my services but business is so busy that they can’t afford the time. And although I empathize, it’s simply not an excuse.

It’s when business is good that marketing and business development is more important than ever. It’s a time when you have the financial resources to invest in future business and for you to start filling your business development pipeline for when the current wave slows down.

The market for legal services is not a place of instant gratification. It takes time to identify the right prospective targets. It takes time to create new relationships. It takes more time to nurture those relationships until they are at a point where they are ready to buy.

Yes, it is a busy time of year and things are only going to get busier. But there are lots of ways to fit marketing and business development into your schedule. For me, I’m taking a Sunday afternoon to write a few blog posts, so I have them in reserve in the event I get too busy. And although golf is out of the question, I may at least be able to squeeze in some networking time on the 19th hole.

What’s your plan?

It’s been another tough year for law firms as demand for legal services continues to wane. The instinct to cut costs and wait out the storm remains strong, but for many firms there is precious little room to maneuver.

Instead of retracting, start thinking about how you are going to position yourself for 2011.

Here are three questions you should ask to start that analysis:

1) Where are the opportunities? Understand what is going on in your market and identify where the highest demand for work will be over the next 12 to 36 months.

2) What are your firm’s strengths? Look at your skill set. Where are your firm’s sweet spots and how can you leverage them for more business?

3) Where is the overlay between what your firm does well and where the needs are?

With this simple analysis, you can begin the discussion about the types of investments you need to make to better align your strengths with market needs.

There is no such thing as shrinking your way to growth, so it is time to start planning for what you plan to do in 2011 to meet your goals.

With Labor Day behind us, I can’t help but think about how quickly rest of the year will go. For me, fall is a time to evaluate what’s working and what isn’t, and to adjust as needed to finish the year strong and start off next year on the right foot.

Much of the work I do with law firm involves Client Teams. I attended an event recently that has me rethinking my emphasis on team dynamics. The program, Helping People Win at Work, featured Garry Ridge, President of WD-40.

Two points resonated:

1. For people to be successful, they need to know what success looks like in a specific way. A manager should not just assign responsibilities. The manager should define what success looks like and provide the tools/support to help them be successful (Ridge’s mantra is “Don’t Mark My Paper, Help Me Get an A”).

2. Organizations shouldn’t work in teams, they should work in tribes. In a tribe, there is a chief and a circle of senior elders. The chief leads the elders and the elders lead the functional managers and so on down the chain. The chief’s job is to help make the elders successful in doing their jobs. In this way, the chief will be more successful than a captain trying to lead a group of functional equivalents.

This paradigm shift from team to tribe got me thinking about law firms. Partnerships often struggle with organizational dynamics and decision making because of the flat hierarchical structure. Firm leaders often lack the authority to act on the best interest of the firm because, titles aside, they are still partners. As a result, most law firm leaders spend a lot of time trying to build consensus, taking a team-oriented approach.

Although most law firms have yet to fully recover from the economic downturn, there remain incredible opportunities to transform their business model and take advantage of new ways to generate revenue. The challenge is prioritizing them and getting those ideas to action. And, once those priorities are set, communicating them and providing the partnership the tools they need to be successful.

It’s time for law firms to think tribal. Partnerships need to give their leaders — their chiefs — the authority to make hard decisions and to define the expectations of the practice group and office leaders — their elders. The chiefs then need to help the elders get an “A” as they work to implement the firm’s strategic plan. This is the only way firms will be able to make real change in the way they do business.

If, as Cicero said, man is his own worst enemy, then partners are posing the biggest risk to the sustainability of large law firms. From my vantage point, individual attorney, practice group and other internal silos are preventing most firms from making needed change in the way they do business.

With the latest Hildebrant Baker Robbins Peer Monitor (Q2 2010) reporting that the outlook for the legal industry as flat, law firms can no longer expect economic improvement will solve their profitability challenges.

The report concludes:

“The challenge to firms will be in their willingess to innovate, experiment and change long-standing firm traditions in order to find new avenues of growth and profitability.”

The time is now for firms to address their proverbial enemy head on.

An article in the June issue of the Harvard Business Review suggests one of the best ways to force a change in thinking is to reorganize.

In “Change for Change’s Sake,” authors Freek Vermeulen, Phanish Puranam and Ranjay Gulati argue that by periodically reorienting organizations around different criterian, “the firm gets the best of both worlds.”

In one case, Cisco System changed its business unit structure (a.k.a. practice groups in the law firm world) into a centralized structure organized by function (e.g. marketing, sales, R&D).
The reorganization created new teams who were able to work together and exchange ideas with peers across the company. Because each member of the new team still maintained ties with their old networks, the knowledge base of each new team expanded as each team member had a set of trusted advisors they could call upon to validate ideas.

As a result, communication and collaboration increased across the company.

The authors argue:

“When a firm reorganizes in this way, the old networks and culture do not suddenly vanish; employees often maintain their old patterns of interaction for quite a while… so at least for the near term, employees cooperate along both informal and formal networks. As a consequence, the firm gets the best of both worlds.”

For law firms, new client development structures offer a way to reorganize attorneys to break existing silos and encourage the development of new relationships.

If attorneys are organized around practice groups, this may be the time to create industry or client teams. If a robust client team program is in place, consider creating new teams but comprised in a new way.

Law firms can no longer take a “wait and see” approach to profitability. Change is needed — if for no other reason that for the sake of it.