Service With A Smile: Cutting Client Services Means Cutting Profits

Faced with the most difficult economic conditions in years, many law firms are looking for ways to maintain a competitive edge ' without negatively impacting cost structures. Investing in client service is a strategy that reaps both long- and short-term benefits.

Historically, firms in other industries target client service as an area ripe for cuts in poor economic times. Front line support personnel such as administrators and client service reps are treated as “nice to haves” and are usually the first to go. Client service training initiatives are either scaled back or eliminated entirely. While these cuts may initially impact the bottom line, they eventually chase customers away.

Imagine if you checked into a luxury hotel such as the Ritz Carlton and had to park your own car or carry your bags to your room. Would you find it odd that an institution known for its great level of service would eliminate key customer facing positions? Of course you would. The Ritz Carlton is able to charge a premium because of its great service, and endures great customer loyalty because of it. The Ritz Carlton does a fabulous job of consistently finding and training service minded personnel across its multitude of properties and is thriving today ' in spite of economic conditions.

We would all agree that it is a very challenging time for law firms. Demand is down and competition for clients has never been tougher. Clients are scrutinizing all legal expenses and are better educated on how they buy legal services. Customer loyalty, especially for commodity type legal services, is at an all time low.

Clients hire law firms for a multitude of reasons; expertise, thought leadership, experience solving a specific problem, contacts, etc. Clients fire law firms for one primary reason: they are dissatisfied with the quality of service (ie, the relationship). If you dig further into the reasons for dissatisfaction, reasons identified include: fees not explained properly, fees much higher than initial expectations, work not up to expectations, speed of service inadequate, and poor level of communication. A client service-minded staff can minimize all of these issues.

The key elements of building a client service-minded staff include 1) senior level commitment; 2) hiring staff with a service/relationship orientation; and 3) properly on-boarding/equipping/ rewarding staff to succeed.

No firm will develop a client service-minded staff without the commitment of the senior leadership team. The firm management must state a desire to be known as a client-driven organization and behave accordingly. This team must also define the specifics of an “operating model” that defines how they will operate as a client-driven organization. At a minimum, specifics should include: vision for the firm, how client service will be used as a differentiator, service pledge to clients, how service will be delivered to clients and expectations of employees.

No client service operating model will succeed unless staffed with the appropriate people. A law firm is a service business and must be staffed with service-oriented people.

Most law firms hire staff strictly by looking at credentials. This practice could be flawed for a service minded firm. Think for a minute of how much time partners, associates, paralegals or administrative assistants interface with clients on a weekly basis. Each “client touch” has one of two results: 1) the interaction “sells” the client on your firm; or 2) “unsells” the client on your firm.

How do you find staff that recognizes each client interaction can impact the relationship? Service-oriented people tend to be good listeners, can multitask and have strong desire to deliver results.

A simple review of the candidate's background can provide insight into their service orientation. Look for people who at some point in their career performed a job where the pay was in direct correlation to the level of service they delivered (example – waiter/ waitress, retail sales, etc.). Performing in this type of environment develops acute awareness of customer needs and reinforces service delivery skills.

Other background experiences to look for include leadership positions in team-oriented organizations such as sports teams, publications and charitable organizations. Leadership opportunities help develop awareness of an overall mission and sensitivity to the needs of multiple constituencies.

Also, the interview process should be a strong indicator of the candidate's ability to work well in your operating model. Does the candidate consistently and proactively drive the recruiting process? Do they understand your expectations and articulate why they are the right fit for your organization? Have they built rapport with your interview team and developed internal champions?

Once hired, your staff must be equipped to succeed in your operating model. Initial training (for ALL employees) should include: understanding of vision and operating model, firm strategy/capabilities/clients, why clients hire your firm, what clients expect, how your role delivers value to clients and how to handle common client situations you will encounter in your job (irate client, etc).

Most firms overestimate their people's initial ability to understand the nuances of their job. Assuming everyone will handle a client situation the correct way is a bad assumption. For each position, identify common client situations encountered and document the appropriate way to manage the situation. This exercise will pay huge dividends in client satisfaction and minimize “react mode” client scrambles.

Employees also need a resource to access from time to time that will supplement initial training. Many firms have documented their “way” (policies and processes) and allow easy and timely access to this resource.

To reinforce expectations set in your operating model, employees' compensation and reward system must be tied to client satisfaction. Establishing simple feedback systems whereby the firm surveys or asks clients to comment on their experience and overall satisfaction can enable this. Some firms will establish variable pay bonus pools for staff that are funded by revenue growth within existing clients. There are also more elaborate feedback systems available. Tools such as multi-rater, 360-degree surveys can access client input about specific individuals.

A critical success factor in all client service initiatives is to ensure consistency across your firm. The operating model, hiring, training, and reward systems must be standard across offices and practices to ensure that customers encounter a consistent experience every time they interact with your firm.

Look back at some of your firm's recent client interaction failures. How much short -term momentum did you lose? How much of a distraction were these failures to the leadership?

Why Make Client Service A Priority?

Leaders of client service-minded organizations usually have more time to spend on strategy, thought leadership, and relationship building. With a competent and caring staff, the leadership team rarely has to deal with client satisfaction issues. Just think of the peace of mind (and benefits) you could have has if your entire staff was client service-minded, oriented and trained. Consider the possibilities for new revenue for this model and the choice is simple.

Mike Stankus is the Founder and Managing Partner of Akina, a consulting and training firm that helps professional services firms improve their client service and development skills.

Faced with the most difficult economic conditions in years, many law firms are looking for ways to maintain a competitive edge ' without negatively impacting cost structures. Investing in client service is a strategy that reaps both long- and short-term benefits.

Historically, firms in other industries target client service as an area ripe for cuts in poor economic times. Front line support personnel such as administrators and client service reps are treated as “nice to haves” and are usually the first to go. Client service training initiatives are either scaled back or eliminated entirely. While these cuts may initially impact the bottom line, they eventually chase customers away.

Imagine if you checked into a luxury hotel such as the Ritz Carlton and had to park your own car or carry your bags to your room. Would you find it odd that an institution known for its great level of service would eliminate key customer facing positions? Of course you would. The Ritz Carlton is able to charge a premium because of its great service, and endures great customer loyalty because of it. The Ritz Carlton does a fabulous job of consistently finding and training service minded personnel across its multitude of properties and is thriving today ' in spite of economic conditions.

We would all agree that it is a very challenging time for law firms. Demand is down and competition for clients has never been tougher. Clients are scrutinizing all legal expenses and are better educated on how they buy legal services. Customer loyalty, especially for commodity type legal services, is at an all time low.

Clients hire law firms for a multitude of reasons; expertise, thought leadership, experience solving a specific problem, contacts, etc. Clients fire law firms for one primary reason: they are dissatisfied with the quality of service (ie, the relationship). If you dig further into the reasons for dissatisfaction, reasons identified include: fees not explained properly, fees much higher than initial expectations, work not up to expectations, speed of service inadequate, and poor level of communication. A client service-minded staff can minimize all of these issues.

The key elements of building a client service-minded staff include 1) senior level commitment; 2) hiring staff with a service/relationship orientation; and 3) properly on-boarding/equipping/ rewarding staff to succeed.

No firm will develop a client service-minded staff without the commitment of the senior leadership team. The firm management must state a desire to be known as a client-driven organization and behave accordingly. This team must also define the specifics of an “operating model” that defines how they will operate as a client-driven organization. At a minimum, specifics should include: vision for the firm, how client service will be used as a differentiator, service pledge to clients, how service will be delivered to clients and expectations of employees.

No client service operating model will succeed unless staffed with the appropriate people. A law firm is a service business and must be staffed with service-oriented people.

Most law firms hire staff strictly by looking at credentials. This practice could be flawed for a service minded firm. Think for a minute of how much time partners, associates, paralegals or administrative assistants interface with clients on a weekly basis. Each “client touch” has one of two results: 1) the interaction “sells” the client on your firm; or 2) “unsells” the client on your firm.

How do you find staff that recognizes each client interaction can impact the relationship? Service-oriented people tend to be good listeners, can multitask and have strong desire to deliver results.

A simple review of the candidate's background can provide insight into their service orientation. Look for people who at some point in their career performed a job where the pay was in direct correlation to the level of service they delivered (example – waiter/ waitress, retail sales, etc.). Performing in this type of environment develops acute awareness of customer needs and reinforces service delivery skills.

Other background experiences to look for include leadership positions in team-oriented organizations such as sports teams, publications and charitable organizations. Leadership opportunities help develop awareness of an overall mission and sensitivity to the needs of multiple constituencies.

Also, the interview process should be a strong indicator of the candidate's ability to work well in your operating model. Does the candidate consistently and proactively drive the recruiting process? Do they understand your expectations and articulate why they are the right fit for your organization? Have they built rapport with your interview team and developed internal champions?

Once hired, your staff must be equipped to succeed in your operating model. Initial training (for ALL employees) should include: understanding of vision and operating model, firm strategy/capabilities/clients, why clients hire your firm, what clients expect, how your role delivers value to clients and how to handle common client situations you will encounter in your job (irate client, etc).

Most firms overestimate their people's initial ability to understand the nuances of their job. Assuming everyone will handle a client situation the correct way is a bad assumption. For each position, identify common client situations encountered and document the appropriate way to manage the situation. This exercise will pay huge dividends in client satisfaction and minimize “react mode” client scrambles.

Employees also need a resource to access from time to time that will supplement initial training. Many firms have documented their “way” (policies and processes) and allow easy and timely access to this resource.

To reinforce expectations set in your operating model, employees' compensation and reward system must be tied to client satisfaction. Establishing simple feedback systems whereby the firm surveys or asks clients to comment on their experience and overall satisfaction can enable this. Some firms will establish variable pay bonus pools for staff that are funded by revenue growth within existing clients. There are also more elaborate feedback systems available. Tools such as multi-rater, 360-degree surveys can access client input about specific individuals.

A critical success factor in all client service initiatives is to ensure consistency across your firm. The operating model, hiring, training, and reward systems must be standard across offices and practices to ensure that customers encounter a consistent experience every time they interact with your firm.

Look back at some of your firm's recent client interaction failures. How much short -term momentum did you lose? How much of a distraction were these failures to the leadership?

Why Make Client Service A Priority?

Leaders of client service-minded organizations usually have more time to spend on strategy, thought leadership, and relationship building. With a competent and caring staff, the leadership team rarely has to deal with client satisfaction issues. Just think of the peace of mind (and benefits) you could have has if your entire staff was client service-minded, oriented and trained. Consider the possibilities for new revenue for this model and the choice is simple.

Mike Stankus is the Founder and Managing Partner of Akina, a consulting and training firm that helps professional services firms improve their client service and development skills.