Business Development
Success Strategies for the Global Firm

          Charles A. Maddock
           Altman Weil Inc.
Business development:
facts
•    It’s difficult for many lawyers.
•    Most law firms start at the wrong place.
•    Brand...
Looking at:

                                trends



© Copyright Altman Weil, Inc.
The AmLaw “Global Ten” : 2000
             Baker & McKenzie        2,300
             Clifford Chance         1,795
      ...
The AmLaw “Global Ten” : 2003
             Baker & McKenzie   3,241
             Clifford Chance    2,922
             Fre...
Significant competitive capabilities
                •     institutional client base
                •     service sector ...
Looking at:

                                clients



© Copyright Altman Weil, Inc.
Facts about clients
       North America                       EU
  They employ 34 firms          • 42% decreased
  on ave...
How Clients Choose
  Source: Altman Weil Client Surveys

                                                    33
Firm reput...
How satisfied are clients?
   Completely satisfied                                      60

          Mostly satisfied    ...
Satisfaction Drives Loyalty,
Loyalty Drives Profits
                                                                     A...
Why are they dissatisfied?

1. Responsiveness.
2. Failure to control expenses and
   disbursements.
3. Mishandled critical...
Looking at:


                                lawyers



© Copyright Altman Weil, Inc.
Lawyers as Marketers
                 Visual          Auditory
                 Empathic        Cerebral
                 ...
Success Strategies




© Copyright Altman Weil, Inc.
Market Segmentation
Look at clients this way...
                                 Fire

                                NC,...
Define your niche
           Applying the      Customizing the
             Body of            Body of                 Gre...
Know the selection process
            U.S.                         EU/Asia
•    Expertise                  •   Expertise
...
Know the client service cycle
                  OPPORTUNITIES



  ADVOCATES                       SUSPECTS


            ...
Know what tools work…
             U.S.                        EU/Asia
 •    Outside referrals         •   Outside referra...
…and which tools don’t
        U.S.                          EU/Asia
• Brochure                      • Brochure
• Advertis...
Build from clients first:

                                • Client Teams.
  Success                       • Technology in...
Know and use your brand

•    Size                       “The essence of
•    Quality                    marketing is
•   ...
Involve the right lawyers
   •     Find a role.
   •     Provide tools and direction.
   •     Test.
   •     Train.
   • ...
Success strategies
•    The right lawyers doing the right things.
•    Leverage relationships.
•    Know and protect your ...
The billable hour is
         your year.
         The non-billable hour is
         your future.

         David Maister

...
Questions?



© Copyright Altman Weil, Inc.
Contact:
Charles A. Maddock
Principal
Altman Weil, Inc.
(610) 886-2000
camaddock@altmanweil.com


© Copyright Altman Weil,...
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Business Development

  1. 1. Business Development Success Strategies for the Global Firm Charles A. Maddock Altman Weil Inc.
  2. 2. Business development: facts • It’s difficult for many lawyers. • Most law firms start at the wrong place. • Branding can work but often doesn’t. • Clients are more demanding. • Firms “sell” the wrong things. • The simplest strategy works best. © Copyright Altman Weil, Inc.
  3. 3. Looking at: trends © Copyright Altman Weil, Inc.
  4. 4. The AmLaw “Global Ten” : 2000 Baker & McKenzie 2,300 Clifford Chance 1,795 PricewaterhouseCoopers 1,663 Arthur Andersen 1,500 Eversheds 1,290 Jones Day 1,191 Skadden Arps 1,125 Linklaters & Alliance 1,116 Freshfields 1,104 Allen & Overy 1,089
  5. 5. The AmLaw “Global Ten” : 2003 Baker & McKenzie 3,241 Clifford Chance 2,922 Freshfields 2,644 Linklaters 2,250 Allen & Overy 2,025 Eversheds 1,844 DLA 1,753 Skadden Arps 1,727 Jones Day 1,722 Lovells 1,658
  6. 6. Significant competitive capabilities • institutional client base • service sector teams • Size/capacity • leverage Does your firm offer Does your firm offer • capital these to its clients? these to its clients? • brand names • sophisticated marketing • cutting edge technology • competitive intelligence • international capabilities © Copyright Altman Weil, Inc.
  7. 7. Looking at: clients © Copyright Altman Weil, Inc.
  8. 8. Facts about clients North America EU They employ 34 firms • 42% decreased on average. spending on law firms. Convergence • 61% outsource for continuing. specialty services • Increased metrics and • 70% routinely monitor accountability. outside counsel. Selection factors • 72% use uniform task- changing based billing © Copyright Altman Weil, Inc.
  9. 9. How Clients Choose Source: Altman Weil Client Surveys 33 Firm reputation Historical 58 relationship Firm specialty 25 Attorney's 34 reputation 0 10 20 30 40 50 60 © Copyright Altman Weil, Inc.
  10. 10. How satisfied are clients? Completely satisfied 60 Mostly satisfied 34 Somewhat satisfied 4 Neither sat or dissat 1 Somewhat dissatisfied Mostly dissatisfied Completely dissatisfied 0 20 40 60 © Copyright Altman Weil, Inc.
  11. 11. Satisfaction Drives Loyalty, Loyalty Drives Profits Apostles Zone of affection Zone of indifference Zone of defection 1991 Xerox study 1 2 3 4 5 Extremely Somewhat Slightly Satisfied Very dissatisfied satisfied satisfied satisfied Source: Time-based Competition © Copyright Altman Weil, Inc.
  12. 12. Why are they dissatisfied? 1. Responsiveness. 2. Failure to control expenses and disbursements. 3. Mishandled critically important matters. 4. Lack of desired results. 5. Unreasonably high billable hours. Source: Altman Weil/ACCA 2003 CLO Study © Copyright Altman Weil, Inc.
  13. 13. Looking at: lawyers © Copyright Altman Weil, Inc.
  14. 14. Lawyers as Marketers Visual Auditory Empathic Cerebral Creative Logical Optimistic Skeptical Collaborative Autonomous Executives Owners Synergize Persuade Reflective Urgent © Copyright Altman Weil, Inc.
  15. 15. Success Strategies © Copyright Altman Weil, Inc.
  16. 16. Market Segmentation Look at clients this way... Fire NC, NP NC, EP EC, NP EC, EP © Copyright Altman Weil, Inc.
  17. 17. Define your niche Applying the Customizing the Body of Body of Grey Hair Rocket Science Knowledge Knowledge Client Efficient Making informed Complex issue; “Bet your Problem solutions to choice; guidance client has no company” issue common through process experience problems Key Efficient, low User-friendly Real time diagnosis Innovative and Skill cost delivery; advice; relieves and judgment novel solutions established anxiety methodology CSF Established Established Experience in Highest level methodology; methodology and similar problems; diagnostic skills; efficient, low low cost delivery technical, functional state of the art cost delivery plus relationship knowledge knowledge Profit High volume, Above average High fees; low Premium fees; Driver high leverage fees, good leverage leverage very low leverage; may refer work Selling Better, faster, We’ll help you with We’ve seen similar Smartest brains Prop cheaper choice and give problems; trust us, around ongoing support we’ll help you
  18. 18. Know the selection process U.S. EU/Asia • Expertise • Expertise • High quality work • High quality work • Lawyer reputation • Local market • Fee structure knowledge • Local market • Languages spoken knowledge • Lawyer reputation © Copyright Altman Weil, Inc.
  19. 19. Know the client service cycle OPPORTUNITIES ADVOCATES SUSPECTS SERVICE MARKETING PROSPECTS SATISFIED CLIENTS SELLING CLIENTS QUALIFIED PROSPECTS
  20. 20. Know what tools work… U.S. EU/Asia • Outside referrals • Outside referrals • In-house referrals • In-house referrals • Beauty contests • Beauty contests • Lawyer articles • Lawyer articles • Firm-sponsored • Auditor referrals conferences • Internet directories • Internet directories © Copyright Altman Weil, Inc.
  21. 21. …and which tools don’t U.S. EU/Asia • Brochure • Brochure • Advertising • Advertising (trade) (trade) • Advertising (legal) • Advertising (legal) © Copyright Altman Weil, Inc.
  22. 22. Build from clients first: • Client Teams. Success • Technology integration. Strategy • Corporate Counsel Conferences. • Annual Legal Plan. • Reverse seminars. • Annual Client Audit. © Copyright Altman Weil, Inc.
  23. 23. Know and use your brand • Size “The essence of • Quality marketing is • Experience building a • Pricing brand in the • Location minds of consumers.” • Superior service • Other Al Ries © Copyright Altman Weil, Inc.
  24. 24. Involve the right lawyers • Find a role. • Provide tools and direction. • Test. • Train. • Evaluate. • Compensate. – For effort. – For success. © Copyright Altman Weil, Inc.
  25. 25. Success strategies • The right lawyers doing the right things. • Leverage relationships. • Know and protect your brand. • Niche and segment market. • Research. • Invest time first, then money. © Copyright Altman Weil, Inc.
  26. 26. The billable hour is your year. The non-billable hour is your future. David Maister © Copyright Altman Weil, Inc.
  27. 27. Questions? © Copyright Altman Weil, Inc.
  28. 28. Contact: Charles A. Maddock Principal Altman Weil, Inc. (610) 886-2000 camaddock@altmanweil.com © Copyright Altman Weil, Inc.

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