strategy

‘5 Tips to deliver exceptional client services’

The Legal Marketing Association (LMA)’s Strategies + Voices blog has some great insights into what clients’ value in a recent post (16 September 2021) – ‘5 tips to deliver exceptional client service’ by Natasha Tucker.

The post starts out by stating that:

the tips shared are based on internal client feedback interviews and discussions conducted by the author with companies in the oil and gas, chemicals, banking and telecommunications industries in North America.

And the 5 ‘tips’ are:-

  1. Care and Connection
  2. Trust and Honesty
  3. Price and Value
  4. Experience and Expertise
  5. Team and Resourcing

I’l go on record as saying I thought Tucker’s post was excellent. It turned my mind, however, to whether we in Australia would consider the same criteria as being critical to the delivery of exceptional client service?

So here are my thoughts:

  1. Care and Connection – absolutely spot on. Here in Australia this would come under the banner of ‘responsiveness’, but many of the points Tucker makes are echoed in Australia.
  2. Trust and Honesty – I would say this is a given here in Australia and not really talked about too much. Which is to say, in my experience, clients here don’t see trust and honesty as playing a big part in the perception of excellent client service delivery – because without it, you ain’t my law firm!
  3. Price and Value – I struggled with this one because clearly price is important. And many would argue it is critical to the perception that the client has received good value. But here’s the thing, in Australia ‘price’ is an after-fact – the lawyer’s invoice comes after the deal is completed. So while price certainly plays a retrospective role in whether the client received exceptional client service, it is not a real time barometer – the client could believe they were getting excellent service until they receive the invoice and see how much they paid for that service! So I’m going to disagree with this one.
  4. Experience and Expertise – again, I think this is increasingly a ‘given’ here in Australia. Sure it will have some effect on the delivery of client service, but the cases where it does will largely be the 1 to 2% of ‘top-end’ matters.
  5. Team and resourcing – absolutely critical.

Noting that it is easy to be critical without being helpful, here are a couple of issues that I see as being of increasing importance in the delivery of exceptional client service here in Australia:-

  1. Technology – increasingly clients want your technology to talk to their technology. If they want a Teams meeting and you say your internal systems only allow you to do Zoom meetings, they get frustrated. They are not getting exception client service. Likewise, while ‘client portals’ were all the rage 10 years ago, clients today want this information delivered in their tech echo-system and do not want to have to log-on to your platform to access this.
  2. Process – linked somewhat to technology, clients today look for clear processes from their firms. For example, large institutional clients want one bill per month – not 20 different bills for each of the various internal service lines in your firm that may have acted on their matters. Process however extends to other areas, such as Legal Project Managers, Client Account Managers – so-called ‘non-lawyers’ who can keep the lawyers honest and on track.
  3. Values – increasingly clients want to work with law firms who share their values, and they see this as part of the client service delivery. For example, if the client is passionate about the environment and your law firm doesn’t have a stance on this issue, then you’re likely going to have some issues. In short, in my view, the days of firms saying what they stand for has nothing to do with the service they provide are over – what you stand for is very much a part of the service you deliver in 2021!
  4. Mentorship – clients have always enjoyed working with law firms that are able to mentor the in-house team. What’s changed is that these days this is a formal – out in the open – discussion; and it includes the tough discussion about how law firms manage their own internal mentorship, staff wellbeing and overall happiness.
  5. Retained knowledge – this is a critical one to me. Most law firms have worked with clients for longer periods than the in-house legal team has. Their time with the client either pre-dates the creation of an in-house team or else General Counsel at the in-house team has moved on and that information has been lost. I cannot over emphasis therefore how important private practice law firms can be as the font of knowledge (for legal matters) for their client. But here’s the thing, at this level you are commercial confidants and so relying on legal conflicts as the rationale as to why you can act against a client will sure as Hell kill and perception of ‘exceptional client service’!

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

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This week’s photo credit is to Rohan Makhecha on Unsplash

#ICYMI – Weekly Digest Issue 279

This week’s Digest was sent out to subscribers earlier today.

Theme of the Big 3 this week was tenders, with me highlighting:-

Other notable standouts this week were:-

For someone who has been in this game as long as I, surprise of the week was:-

As usual, great amount of content in this week’s wrap so check it out here. And if you don’t already subscribe and want to, you can do that here.

Have a great weekend all!

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Report: ‘Five simple steps to transform your firm’

Last week I spent some time reading Macquarie Bank’s recently published ‘Law 2024: the future of legal business’ report.

Overall it’s an interesting read and probably worth 45 or so minutes of your time (lots of graphics should mean it won’t take that much longer of your time), but it was the last section on ‘Five simple steps to transform your firm’ (which funny enough has very few graphics) that really grabbed my attention. I thought they were useful tips/insights to keep in mind, so I thought I would share them here:

  • Assess where your firm demonstrates value to clients – understanding where you provide value to a client will inform how you create a sustainable business model.
  • Implement innovative practices – finding opportunities where you can innovate processes within firms will keep it competitive over the long-term.
  • Harness the power of data and analytics – having a better knowledge of where your firm spends its time will help in understanding where potential client value can be added.
  • Construct, and embrace an employee value proposition – having a central purpose will go a long way towards unifying four generations of employees at very different stages of their careers.
  • Embrace diversity and inclusion – bringing a variety of perspectives to your firm will help in retaining your team at a time when loyalty is at premium.

Take a look at the report – let me know if you don’t agree with any of these or if you have any you would add, and enjoy your week!

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Photo by Nick Fewings on Unsplash

#ICYMI – Weekly Digest Issue 278

This week’s Digest has been sent out to subscribers. Some of my highlight’s from the week were:

There has been so much great content this week – check it all out here.

If you don’t already, you can subscribe here.

Have a great weekend all!

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A lesson law firms can learn from Apple’s approach to discounting

What’s your law firm’s approach to discounting?

As far as I’m aware, Apple has never allowed retailers to discount (or have any other say in) its products pricing.

Ever.

As far as I have understood it, Apple’s rational for this because it has always insisted that it – and it alone – has complete control over its pricing.

Why is this important?

In short, because while you will see retailers heavily discounting every other computer software and hardware manufacturers’ products during this year’s EOFY (lockdown) sales, no such offer is made on Apple products.

You don’t see red ink on Apple product price tags.

Ever.

So what can law firms learn from this approach?

  1. Always understand the value you provide to your clients
  2. Never underestimate your worth
  3. Always retain control over your pricing

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Photo credit to Tamanna Rumee on Unsplash

What will the business of law look like in a post COVID-19 world?

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uncertainty’:

The state of not being definitely known or perfectly clear; doubtfulness or vagueness.

Oxford English Dictionary

As we start to talk about the path/way out of COVID-19 lockdown, a number of pre-eminent thinkers in legal consulting have begun discussing what shape and form this might look like for our industry.

Notable among these have included:

  • Richard Susskind + Mark Cohen debating the future of the legal industry as excellently reported by Ron Friedmann on his Prism Legal blog
  • Patrick Lamb discussing ‘The Next Normal: Is There a Roadmap That Gets Us There?’
  • The team on the LawVision Insights Blog giving their views on ‘The Legal Profession in a “Post-COVID” World’, and
  • the excellent and very comprehensive series of blogs by Jordan Furlong under the themed title of ‘Pandemic’.

Then again, as Patrick Dransfield said in Asia Law Portal (Who knows what the future will hold?’) – nobody really knows what the future holds.

But isn’t that why we, as business developers, are hired? To try and give some insights to our partners on how the industry might look?

With that in in mind, for what it is worth , here are my two cents on some of things we may look forward to over the next 18 months:

  • The industry will remain fundamentally the same – as it was pre COVID-19 pandemic days unless there are structural changes to the business model. And, as I understand it, the trust partnership business model that is currently used in most common law jurisdictions makes the talk of change easier than the reality of change (in that nobody today would likely start a new law firm under a partnership trust structure).
  • Technology and working from home will play role – it goes without saying that both technology and working from home will play a part in the future, but how big that role will be in an industry built on presentism still remains to be seen.
  • Uncertainty will feature heavily –  we are flying blind here and most of us have no experience to drawn on. Even those of us who have been through this several times have now come to accept this time is different.
  • Consolidation will likely feature prominently – with The Law Society Gazette (England and Wales) reporting in the past week that ‘71% of high street firms face collapse‘ I would foresee a similar scenario playing out here in Australia. Only I doubt it will apply to high street firms, who should do well out of the expected growth in wills & estates and family law matters, as much as it will likely apply to the middle market where there still remain far too many firms representing far too few clients.
  • There will be an increase in lateral hiring – for the reasons above.
  • Cashflow/credit facilities will help – Warren Buffet is reported to have said that “Only when the tide goes out do you discover who’s been swimming naked.” Well, the tide has never been lower and we will see in the coming days who still has the ear of their banker. Arguably those with big trust accounts and/or on the panel of one or more Big4 bank panels will benefit.
  • How much office space do law firms really need? – it will be interesting to see if rent footprint decreases. Rental space – and whether to remove parts of the business to less expensive rental footprints (see Herbert Smith Freehills to Macquarie Park and McCabe Curwoods to Chatswood for example) – has been an issue for some time and one of the big take outs from this may well be a lot more Hot-desking!
  • The Big4 see opportunity – as EY reported this week, the Big4 are not going away. If anything, as this chart shows, they’ll be upscaling their charge

Screen Shot 2020-05-03 at 8.37.41 pm

  • A need to be even more client and sector focusses – with the team at Adam Smith, Esq looking at the following areas of need:
    • Insolvency, restructuring and distressed assets
    • Private equity (I’m not 100% sold on PE in Oz)
    • Regulatory investigations and dispute resolution a/k/a litigation
    • M&A
    • Tech and all the ancillary practices it spawns, including IP

From an Australian law perspective I would add Insurance law (going to be more claims made) and all forms of Government (Government will be spending big on Infrastructure, Health, Education and others).

But all of the above are my views and so to finish this post I’m going to turn to one of the great take-outs of this week for me – a post by Trish Carroll who interviewed 12 final year law students to find out how they were feeling in the middle of Covid – ‘Is Covid-19 the mother of all disruptors for the legal profession?‘ – and this is about as close as we will get to how the future of law will look.

As always though, interested in your thoughts/views/feedback.

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“This is not just a stop-gap solution…”

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…or is it?

For the past couple of weeks, one of the most common themes I’ve been seeing about COVID-19, insofar as it relates to the legal profession, is how it has changed, and continues to change, the industry/profession. COVID-19, I’m being led to believe, is a “game changer”.

To this end, I have seen (and read) articles that I would not thought possible three to four months ago written about:

  • the changing nature of remote working in the profession, and
  • the importance of Zoom/Skype and Microsoft’s Teams,

to name but a few.

But I want us to stop here, take a step back, and ask: “Is this really likely to be the long-term outcome?

When I ask this, keep in mind that this is a profession that has fought tooth and nail to keep to the same business operating model for over 30 years (if not 100) despite having already recently lived through one of the worst global economic downturns of all time (the GFC).

So I ask: “What can we really say is different this time?

For sure we can say we have given our business continuity plans (BCPs) a tough workout. And, to be fair, I’d bet that even the most conservative of BCPs didn’t factor in a COVID-19 event.

And while we now know that most of our workforce can work remotely and, ironically enough, with the use of timesheets, we can also claim that they remain ‘productive’ whilst working from home – whatever that term may actually mean to a knowledge worker, does this truly foreshadow a change in the manner in which the industry is going to be managed?

My take is this:- while all of the above is true, it is taking place in circumstances that most of us had not predicted and many of us feel uncomfortable even being in (I’d bet there are very few people out there who are happy being locked up at home for four weeks – family or no family).

But this is a far cry from saying we will see the dawn of a ‘new normal’ whenever normality (whatever that may look like without a vaccine, which I am told is no sure thing) returns.

Because, while it’s critical that understanding our purpose is now more important than ever, and while we cannot hope to survive if we do not look to find the solutions our clients seek and need – which (as I mentioned last week) will be changing – in a post-COVID-19 world these will not necessarily bring about a change to the structure of how a law firm operates and is managed.

As any reader of this blog would know, it has been my long and strongly held view that to see real change to the business model of law, we need to start with the way in which we incentives and reward our partners and employees.

And to start this process we need to start to truly align our firm’s internal incentives/rewards to those of our customers so that we start to help create value for our customers. In short, our incentives/rewards must be aligned with our customers’ needs and incentives.

And yet nothing I have read in the thousands – possibly even tens of thousands – of words on how COVID-19 will change the legal profession has this even come close to being suggested or even discussed.

So my take from all of this is this:

If we want what we are currently going through to be truly more than a mere ‘stop-gap’ solution, if what we want from a post-COVID-19 world is true structural and ongoing change in the profession, then we need to start to have a conversation around the fact that the way in which we incentives and reward our staff is broken and worry a little less about where our staff are doing their job from.

And right now is the time to be having this conversation.

Failing which, all we really have is a stop-gap solution.

These are just my views, as always interested in your thoughts/views/feedback.

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Game: ‘Questions to ask your deal team about why your customer is happy to pay your fee?’

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Came across the bones of a really interesting game you can play with your deal team at your next after action deal debrief/lessons learnt meeting.
Handout a piece of paper to each of your deal team members and ask them to rank, in order of priority, the top 5 reasons – from the following list – why the customer is happy to pay your fees in full (no discounts/write-offs, etc allowed):
  1. Demonstrated an understanding of the customer’s business/industry throughout the deal
  2. Demonstrated an understanding of relevant law
  3. Responsiveness to customer’s requests – phone/email/meetings
  4. Built good rapport and a trusting relationship during the deal (was in the trenches with the customer)
  5. Used expertise to help save the customer money (either on the deal or fees)
  6. Used Legal Project Management techniques to stay within the deal scope and didn’t allow scope creep without first taking to the customers
  7. Used technology, AI, Legal Process Outsourcing and value adds to make the customer’s life easier during the deal
  8. Offered the customer a great discount
  9. Hourly rate was attractive to the customer
  10. Any other reason(s)

Remember, they can only pick 5. And they need to be in order of priority.

I would love to hear feedback on which five were the most popular chosen.

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Thinking of starting a podcast?

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Over the past week I’ve had three different people inform me that they were starting podcasts and ask me if I would be willing to be interviewed. Honoured as I am by such requests, I did also wonder why such interest in me and podcasts more broadly?

In mulling this over I recalled a recent podcast (5 June 2019, Podcast #227) between Sam Glover and Bob Ambrogi on ‘The State of Legal Blogging & Podcasting‘ on the Lawyerist podcast.  Listening to this again today it struck me how many great tips these two give out (for free) to anyone looking to start a podcast; some of which are (fast forward to 29 minutes into Sam’s talk to really get the best out of these):

  • are podcast a fad or here to stay?
  • has the revenue model for podcasts been worked out?
  • have we really thought through the market penetration issue (more people don’t listen to podcasts than do)?
  • is there too much content already out there? if there is, what are you doing to be a little bit different?
  • how often should you be producing material – daily, weekly, monthly?
  • should you be framing your podcast with music at the start and end?
  • what equipment should you be using?

Taking all that on board and still want to produce a podcast? Then these are three things that Sam and Bob say in their podcast that should also be considered:

  1. it’s more work than you think it is going to be
  2. it’s really tough to build a subscriber base
  3. the right people over lots of people (love this saying)

On that last point, independent of Sam and Bob’s chat, I also heard this week that the average podcast lasts 7 issues.

To help you overcome this, Bob makes a brilliant suggestion in the podcast – if you are attending a conference take your recording equipment with you. And someone who does that really, really well is Ari Kaplan.

I hope you enjoy all the links. Listen to them – they are great (and free!); and, as always, love to hear your thoughts/views/feedback.

Secondments, labour arbitrage and a new race to the bottom

Follow me:

  • In-house teams have been the biggest ‘growth’ area in legal post 2008 and some in-house teams are now bigger than the law firms they previously outsourced worked to
  • Most GCs report to the CFO
  • GCs are increasingly under pressure from the CFO to reduce their ‘cost’ (including bonuses now linked to reducing cost – note: not external legal spend)
  • GCs have effectively two cost centres: ‘labour’ or ‘ external legal spend’
  • Procurement tells GCs they can reduce both ‘labour’ and ‘spend’ at the same time – secondments (heavily discounted at daily or weekly rates in RFPs – don’t need to advise out and don’t need to hire in-house!)
  • Law firms enter the discounted labour arbitrage market

And a new race to the bottom starts*…

As always, interested in your thoughts/views/feedback.

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*welcome to the party LoD