The Case for Business Development Professionals Within Law Firms Prepared by James J. Tullis http://www.linkedin.com/in/jtullis October 30, 2008 _____________________________________________________________________________________________________ _ _____

BACKGROUND

BACKGROUND

“ Most of America’s 1 million+ lawyers...will have mediocre financial results in 2007 compared with other professionals because they do not know how to get new business.” Law Marketing Consultant December 9, 2006

In General Only a minority of lawyers will draft a written business development plan Lawyers are analytical, detached and reflective ⅔ of lawyers are introverts but ¾ of the general population are extroverts 25% of lawyers cannot or will not sell 55% are willing to sell but don’t know how to sell Only 25% are natural rainmakers Personality is a key factor in business development

Only a minority of lawyers will draft a written business development plan

Lawyers are analytical, detached and reflective

⅔ of lawyers are introverts but ¾ of the general population are extroverts

25% of lawyers cannot or will not sell

55% are willing to sell but don’t know how to sell

Only 25% are natural rainmakers

Personality is a key factor in business development

The Caliper Personality Profile Six Traits That Distinguish Lawyers Lawyers differ from the population in 6 of 18 widely recognized personality traits while no other profession has more than two deviations 1. Skepticism : (Prove it to me) Lawyers score 90% for this trait while the general population scores 50% 2. Autonomy : (Don’t tell me what to do) Lawyers score 90% for this trait while the general public scores 50%

Lawyers differ from the population in 6 of 18 widely recognized personality traits while no other profession has more than two deviations

1. Skepticism : (Prove it to me)

Lawyers score 90% for this trait while the general population scores 50%

2. Autonomy : (Don’t tell me what to do)

Lawyers score 90% for this trait while the general public scores 50%

The Caliper Personality Profile Six Traits That Distinguish Lawyers 3. Sociability : (Initiate new connections) Lawyers score 7% on this trait while the general public scores 50% (Rainmakers within law firms score 25%) 4. Abstract Reasoning : (Problem solving) Lawyers score 82% for this trait compared with 50% for the general population 5. Urgency : (Need for closure) Lawyers score 71% for this trait compared with 50% for the general population

3. Sociability : (Initiate new connections)

Lawyers score 7% on this trait while the general public scores 50% (Rainmakers within law firms score 25%)

4. Abstract Reasoning : (Problem solving)

Lawyers score 82% for this trait compared with 50% for the general population

5. Urgency : (Need for closure)

Lawyers score 71% for this trait compared with 50% for the general population

The Caliper Personality Profile Six Traits That Distinguish Lawyers 6. Resilience : (Resistance to criticism) Lawyers score 30% for this trait compared with 50% for the general population

6. Resilience : (Resistance to criticism)

Lawyers score 30% for this trait compared with 50% for the general population

The Caliper Personality Profile Five Traits That Distinguish Rainmakers Traditional rainmakers exhibit five key traits: Ego drive : The psychological need to convince someone to do something Cognitive empathy : Taking the perspective of the buyer and asking what they need 3. High resilience : Handle rejection well 4. Service mindedness : Desire to help others 5. Conscientiousness : Meticulous, have a follow up plan, execute business development well

Traditional rainmakers exhibit five key traits:

Ego drive : The psychological need to convince someone to do something

Cognitive empathy : Taking the perspective of the buyer and asking what they need

3. High resilience : Handle rejection well

4. Service mindedness : Desire to help others

5. Conscientiousness : Meticulous, have a follow up plan, execute business development well

CURRENT TRENDS IN LAW FIRM BUSINESS DEVELOPMENT

CURRENT TRENDS IN LAW FIRM BUSINESS DEVELOPMENT

Trends The established model of expertise and reputation is proving ineffective in an increasingly competitive market Firms responding proactively are taking the lead by applying corporate sales techniques (i.e., employing dedicated business development professionals) and proving that they do add significant incremental value Three basic business development models have emerged as those most likely to be implemented in the new age

The established model of expertise and reputation is proving ineffective in an increasingly competitive market

Firms responding proactively are taking the lead by applying corporate sales techniques (i.e., employing dedicated business development professionals) and proving that they do add significant incremental value

Three basic business development models have emerged as those most likely to be implemented in the new age

Three Basic Models The Partner Model Advantage Viewed as culturally safe. Partner regarded as peer Disadvantages Moving partner from production to a non-direct revenue producing role Institutionalization of the process will take longer as the partner will likely be reluctant to clear cultural hurdles

The Partner Model

Advantage

Viewed as culturally safe. Partner regarded as peer

Disadvantages

Moving partner from production to a non-direct revenue producing role

Institutionalization of the process will take longer as the partner will likely be reluctant to clear cultural hurdles

Three Basic Models The Sales Professional Model Advantage Greatest potential for delivering the highest rewards due to singular focus on sales Disadvantage Potential reluctance on the part of attorneys to place their faith in a non-lawyer

The Sales Professional Model

Advantage

Greatest potential for delivering the highest rewards due to singular focus on sales

Disadvantage

Potential reluctance on the part of attorneys to place their faith in a non-lawyer

Three Basic Models The Evolutionary Model Advantage Marketing director has earned the trust and respect of the partners over time and therefore, the partners will more readily accept the sales process Disadvantage Potential for lawyers to disconnect from the sales process

The Evolutionary Model

Advantage

Marketing director has earned the trust and respect of the partners over time and therefore, the partners will more readily accept the sales process

Disadvantage

Potential for lawyers to disconnect from the sales process

Which model to select? Regardless of the model selected, structure, organization and teamwork are critical to success Many successful programs in place today were started through pilot programs that identified individuals or groups that had high potential for success Pilot programs need not be strategy on a large scale Starting small and demonstrating success allows the firm to absorb change in a manner comfortable to the attorneys The success of a pilot program will generate enthusiasm within the firm and foster expansion

Regardless of the model selected, structure, organization and teamwork are critical to success

Many successful programs in place today were started through pilot programs that identified individuals or groups that had high potential for success

Pilot programs need not be strategy on a large scale

Starting small and demonstrating success allows the firm to absorb change in a manner comfortable to the attorneys

The success of a pilot program will generate enthusiasm within the firm and foster expansion

Which model to select? The model selected is likely to be a variation of the three basic models Examine the alternatives and weigh them against the firm’s culture Develop a model suited to culture, history and appetite

The model selected is likely to be a variation of the three basic models

Examine the alternatives and weigh them against the firm’s culture

Develop a model suited to culture, history and appetite

The Duane Morris Business Development Model

EVALUATING THE SALES PROFESSIONAL MODEL

EVALUATING THE SALES

PROFESSIONAL MODEL

Qualifications Minimum of 7 years sales/ business development experience; preferably selling professional services Experience interacting with/ selling to CXO level executives Experience within multiple company verticals (Financial Services, Manufacturing, Real Estate, etc.) Exceptional written and verbal communications skills Strong presentation skills Executive presence

Minimum of 7 years sales/ business development experience; preferably selling professional services

Experience interacting with/ selling to CXO level executives

Experience within multiple company verticals (Financial Services, Manufacturing, Real Estate, etc.)

Exceptional written and verbal communications skills

Strong presentation skills

Executive presence

Responsibilities Identify and qualify new business opportunities and arrange meetings for appropriate partners Increase brand awareness and build client relationships Deploy firm resources to identified targets Assist attorneys with development and execution of individual business plans Assume leadership roles within industry associations, trade groups and community groups Attend and present at trade shows and seminars

Identify and qualify new business opportunities and arrange meetings for appropriate partners

Increase brand awareness and build client relationships

Deploy firm resources to identified targets

Assist attorneys with development and execution of individual business plans

Assume leadership roles within industry associations, trade groups and community groups

Attend and present at trade shows and seminars

Responsibilities Craft winning proposals Manage the follow up process Provide sales coaching

Craft winning proposals

Manage the follow up process

Provide sales coaching

Compensation Determined by salary/incentive ratio Proper salary/incentive ratio should be based on influence in purchase decisions Industry surveys suggest an average salary/incentive ratio is 70/30 Positions compensated at a 50/50 ratio indicate a significant influence on client’s buying decision Positions compensated at a 90/10 ratio indicate minimal influence on client’s buying decision

Determined by salary/incentive ratio

Proper salary/incentive ratio should be based on influence in purchase decisions

Industry surveys suggest an average salary/incentive ratio is 70/30

Positions compensated at a 50/50 ratio indicate a significant influence on client’s buying decision

Positions compensated at a 90/10 ratio indicate minimal influence on client’s buying decision

Legal Marketing Association 2005 Roles and Compensation Survey Survey conducted in 2006 based upon 2005 Salary Data Size of firms included in the survey varies from less than 50 to more than 1,000 attorneys Largest percentage of respondents work in firms between 51 and 100 attorneys 98% of respondents work in business law firms Average tenure in current position is 2.7 years with 41% of respondents being in their current position less than one year

Survey conducted in 2006 based upon 2005 Salary Data

Size of firms included in the survey varies from less than 50 to more than 1,000 attorneys

Largest percentage of respondents work in firms between 51 and 100 attorneys

98% of respondents work in business law firms

Average tenure in current position is 2.7 years with 41% of respondents being in their current position less than one year

Legal Marketing Association 2005 Roles and Compensation Survey Of the 69% of respondents who have taken a position within the last two years, 19% received a signing bonus which ranged from less than $1,000 to $20,000, the average signing bonus was $5,848 The average annual base salary for the respondents was $81,368 and ran as high as $330,000 Total compensation for the respondents averaged $89,372 and ran to a maximum of $350,000 78% percent of respondents received a bonus in 2005 ranging from $100 to $38,000, the average bonus was $6,082

Of the 69% of respondents who have taken a position within the last two years, 19% received a signing bonus which ranged from less than $1,000 to $20,000, the average signing bonus was $5,848

The average annual base salary for the respondents was $81,368 and ran as high as $330,000

Total compensation for the respondents averaged $89,372 and ran to a maximum of $350,000

78% percent of respondents received a bonus in 2005 ranging from $100 to $38,000, the average bonus was $6,082

For further information contact: James J. Tullis (302) 723-2982 [email_address]

For further information contact:

James J. Tullis

(302) 723-2982

[email_address]