client development

What 5 pieces of advice would you give your younger self?

My son was born 10 June 2021. Since then, I have been in lockdown for 10 weeks (just starting week 11), homeschooled all of term 3 (currently 8 weeks, start of week 9), have three children under the age of 7 at home 24/7 (including the newborn), and with two working parents to schedule this madhouse around!

All of which is to say, I have been remiss in not blogging for a while, but hopefully you get the picture.

Anyhow, during this time of madness I came across an interesting article by Bhavisha Mistry on the Legal Cheek blog – ‘5 pieces of advice I’d give to my younger self’. Bhavisha is a College of Legal Practice programme committee member trying to help out aspiring lawyers.

Bhavisha’s article got me thinking, ‘What 5 pieces of advice would I give my younger self?’. So, here goes my attempt at an answer:

  1. Expect the unexpected: Having been through the Asian Financial Crisis (1997/1998), the dot.com bubble bust (2001), SARS (2002), the Global Financial Crisis (2008) and now COVID (2019), one thing I can tell you is that the ‘unexpected’ happens on a pretty regular basis. Plan for it and always have a ‘Plan B’, because there are likely going to be more uncertain days than certain.
  2. Back yourself: If you’re starting out in this profession, you’re just about to go through some of the most boring and mundane [very long] days of your life. Having been a massive over-achiever up to this part of your life, you will now go through an apprenticeship that will make you question why you bothered. You’ll hear a lot of comments about “paying attention to detail”. All I can say is:- back yourself and stick with it. There will be challenges. There will be dark days when you question your sanity. But back yourself, because you are here for a reason – and never, ever, be willing to compromise on your personal values to please your peers.
  3. Always be willing to learn new things: While the profession of law probably hasn’t changed all that much since the days of Charles Dickens, the business of law is changing all the time. Always be willing to learn new skills that help you improve how you conduct the business of law – whether that be Legal Project Management (LPM), Design Thinking, AI or whatever fad is still to come our way. Read. Listen to podcasts. Attend webinars/seminars/conferences. And be willing to pay for this if you need to.
  4. Business Development and Marketing are important skills: Following on from 3, know how to market yourself in a P2P (person-to-person) industry is important. Look at your customer buying journey/cycle. See where you need to be and when – and that may be on LinkedIn, but equally it may be having your hair-cut on Saturday when the barber/hairdresser is busy with friendly chat. It could be talking to other lawyers (for referrals), but equally it could mean staying well from them. But having an understanding of this is critical, because it will help you with one of the most important skills you need to succeed in this business: the ability to build relationships with people – both internally [in your firm] and externally.
  5. Budgets are a joke: I’ll leave the best for last, when you start out at a firm you’ll be assigned a budget. That budget is likely going to be 4+ times what you are being paid. It is going to look like a lot of money. You a probably going to think: “If I had that much money I could buy an apartment”. Here’s the thing, these budgets are meaningless. Why do I say they are meaningless? Because at this stage of your career, you’ll have no control over whether you can achieve budget. You’ll have no control over whether you can achieve utilisation. So, if anyone from Finance or Management says you are not making budget, refer them to your supervising partner – because that’s where the buck stops!

As always, the above represent my own thoughts only and would love to hear yours in the comments below.

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What do clients value most when dealing with their lawyers?

Last week I posted on the recent publication of the 2016 LexisNexis Bellwether Report (this year titled ‘The Riddle of Perception’) – with specific reference to the disconnect within the Report between opportunities lawyers identify and approaches they plan to take.

Looking at the Report further, when asked: “How do you rate the service given/received in terms of value for money?” – 30 % of lawyers thought they offered “excellent” value for money, whereas only 8% of clients agreed.

Probably more worryingly, 46% (almost half!) of law firms believed they provided a “very good” service, and only 19% of clients agreed.

And of extreme concern to law firms? – 32% (or almost a third!) of clients thought the service provide by law firms was “average“, whereas [not too surprisingly] only 5% of law firms agreed.

 

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Clearly a disparity remains between the service that lawyers believe they are providing and those that clients feel they are receiving.

And herein lies the problem: as we all know, “value” is subjective, in the eye of the recipient. In other words, it really doesn’t matter what “value” law firms believe they are delivering, but what the client believes they are receiving trumps all.

So, “What do clients value most when dealing with lawyers?“:-

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Well, fortunately that question is answered in the Report too.

Takeout from this?

Just because a lawyer agrees to provide a discount doesn’t mean they’re providing greater value!

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#BizDevTip: Clients don’t give you work just because they like the sound of your voice on the phone

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Yesterday I read a quote in the Australian Financial Review (AFR) that really resonated with me as a business development coach to law firm partners and senior lawyers.

The quote in question was by Aris Kekedjian – who is Vice-President & Managing Director, Global Business Development/M&A at GE – and was made in relation to the recent divestment of GE Capital and its assets.

What Kekedjian said was this:

“People don’t wire you billions of dollars because they like your voice on the phone.”

Precisely.

Now, just print that quote off and put it next to your phone please.

#BigLaw is far from dead

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Has the death knell of #BigLaw been rung too early?

Despite all rhetoric to the contrary, three reports published within the past week would suggest that the business model of #BigLaw is far from dead.

  1.  Citi Private Bank’s Law Firm Group report*

The first, published in the American Lawyer, was Citi Private Bank’s Law Firm Group‘s quarterly report on financial performance in the legal industry.

While this report headlined as ‘Despite Growth, Law Firm Forecast Dims for 2015‘, it is worth noting the following three paragraphs from the report:

“Looking at the results by firm size, the Am Law 100 firms saw demand and revenue momentum build. For the Am Law 1-50, part of the positive momentum is due to some moderation in 2014 results from the first quarter to the first half. The Am Law 100 firms are also better poised than smaller firms for near-term revenue growth, given that they had comparably larger inventory increases (especially in accounts receivable) at the end of the second quarter.

The Second Hundred was the only segment that saw a drop in demand. It also had the lowest increase in inventory (2.3 percent), so the third quarter will likely be particularly challenging for these firms.

Despite the momentum generated by the largest firms, it was the niche/boutique firms that had the strongest first half overall. Revenue was up 7.0 percent on the strength of a shortened collection cycle (compared with a lengthening for the Am Law 100 and Second Hundred segments), as well as modest increases in demand and rates. The niche/boutique firms also posted the smallest increase in expenses, 1.9 percent, creating a substantial widening of the profit margin. Because of the accelerated inventory turnover and only modest improvement in demand, however, inventory for these firms was up only 2.8 percent. These smaller firms may therefore find the second half of the year more challenging than the first half.”

So, while mid-tier firms appear to see revenue in decline, the top-end of town was actually seeing demand and revenue momentum build.

[* The results of this report are based on a sample of 177 firms (83 Am Law 100 firms, 45 Second Hundred firms and 49 niche/boutique firms)]

2.  BTI Consulting report**

The second report is a snippet from BTI’s Annual Survey of General Counsel and goes under the bye-line: ‘Large Law Edges Out Mid-Sized Firms for New Work, with Higher Rates‘.

Here, BTI Consulting’s research found that:

“60% of law firm hires went to larger law firms (650 lawyers or more) in the last year. Clients report hiring large law as a result of increased and more pointed attention—think industry knowledge and more specific discussion of company issues. Think less about your firm statistics and more about the people to whom you are talking.”

Possibly more damning, however, was the observation that:

“The onus is on mid-sized firms to do better. Clients expect mid-sized firms to bring more client focus and more business understanding than large law—but are not always getting what they expect. And, mid‑sized firms have to demonstrate vastly better understanding of their potential clients’ targeted objectives than large law.”

[** Research is based on 280 in-depth interviews with corporate counsel at companies larger than $750 million in revenue as part of BTI’s ongoing Annual Survey of General Counsel.]

3. CommBank Legal Market Pulse Conducted by Beaton Research + Consulting

The last report is a little closer to home, Q4 2014 results from CommBank’s Legal Market Pulse conducted by Beaton Research + Consulting.

I’ll most likely review the findings of this report more closely in a post later this week – and it may even be interesting to compare them against previous Q2  & Q3 reports – but for the purposes of this post I believe we don’t really need to go past the following infographic from the report:

CBA Q42014 Graph

which would certainly seem to indicate that “top-tier” firms are far happier with overall FY2014 results than their “mid-tier” cousins.

Bringing it all together

So, what does this mean?

To my mind what these three reports cumulatively evidence is this:- while #NewLaw may have arrived, and while it may be here to stay, what is increasingly clear is that #BigLaw is not the market segment that needs to be concerned with this development.

Nope, dig a little deeper and I think you’ll find that it is actually Managing Partners in firms with revenue in the A$20-A$70 million range who will be having a lot more restless nights sleep…

Does your law firm have a ‘Big Ideas Project’

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Last week I read about ‘The Big Ideas Project‘, a product of the Progressive Change Institute. I have to admit to being an admirer of projects like The Big Idea Project; but news today that Clifford Chance had appointed Amsterdam managing partner Bas Boris Visser as its first ‘global head of innovation and business change’ got me to thinking:

I wonder how many law firms have adopted a Big Ideas Project to help them decide what innovation and business change they need to be adopting and implementing if they’re to be more client-facing?

And, more specifically,:

If law firms aren’t adopting something like this internally – why not?

#BizDevTip: The 10% Rule…

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…states that:

only 10% of the people who follow,  connect or read what we have to say on Social Media give a damn about our particular brand of message.

The rest are just making up the numbers.

Or, is it the case that we really believe there is a Silent Majority who are listening to our story, what we have to say:

where 90% of the people who follow, connect or read what we write and say on Social Media really care about our particular brand of message?

So, next time you write something for consumption by, and distribution to, others on Social Media, I would like to recommended that you ask yourself:

  • Why am I writing this?
  • Who am I writing this for?
  • And does it make any difference to me if nobody reads this?

Because you may be seriously jeopardising your sanity and wasting a whole lot of your time if you take this Social Media thing all too seriously.