A Haven For Straight Talk: <b>Mystery Shopper</b>

Pay no attention to that man behind the curtain …

Story 1: I was treated to lunch recently by a 4th-year associate at a large corporate law firm. She was on a fund-raising committee and wanted to pick my brain for ideas about free or cheap prizes for an associate raffle. I suggested use of primo parking spots, bar dues paid for a year and a lunch with firm management. She nodded while jotting down the first two, but the last one made her look up at me with the “Are you mad?!?” face. When I asked for clarification, she told me that while the associates respected and admired the firm's most senior partners, the idea of trying to engage them in conversation over lunch was frankly terrifying.

Story 2: I was talking to an associate from another firm about a marketing training program they'd begun a year or so ago. I wanted to know how it was going, and he told me that it was going slowly, but OK. The one big surprise was the overwhelming assumption on the part of the associates that being asked to learn about marketing must mean that the firm was in financial trouble, which it ain't. “We've just learned to make that clear at the get-go,” he told me.

Story 3: I was talking on the phone recently with a guy I used to work with in the retail-marketing world. He'd gone back to school for his law degree and is now a 3rd-year associate at a big Chicago firm. He was telling me that he enjoyed it, but was annoyed at how puny the raises had been the last couple years. “What really bakes my beans,” he griped, “is that there are so few associates in this firm compared to partners.”

“I don't follow you,” I said.

“This isn't one of those big meat-grinder firms with 10 associates to every partner. We've only got about one-and-a-half associates for every partner. There are so few of us associates! They can afford to pay us more!”

Being that he was exactly wrong, I explained to him the concept of leverage. How a firm with more associates per partner makes more profit for the partners and has more money available for associate salaries.

“Wow,” he replied. “That's counterintuitive.”

The term “buy-in” is incredibly appropriate.

At most firms, the transition to partnership requires that an attorney “buy into” the organization. The amount varies considerably, but it is often more than a year's salary. And partners almost always pay for their benefits out of pocket. And partners' draws are often wildly inconsistent from month to month. The eventual financial rewards of partnership can be huge, but the first couple years aren't easy.

And what do law firms do to prepare associates for partnership? If the three stories above are any indication, partners terrify associates, lead them to believe that marketing is a sign of corporate weakness and fail to educate them on the basics of firm finance. All that in preparation for the day when they'll be asked to “buy into” the partnership. If you're asking somebody to buy something, they're a customer. And firms should treat associates like customers from the day they begin interviewing until the day they make partner.

Why? Because you're asking them to commit their financial and personal futures to your organization. Because they are your front-line customers. If they don't buy what you're selling, how can they turn around and offer meaningful value to the firm's clients?

Churn 'em and Burn 'em

One of my favorite terms from retail marketing is “churn,” the percentage of your customers that leave and go to a competitor. In some industries, all the players practice an unspoken philosophy of “churn 'em and burn 'em.” Let 'em switch at a rate of 30% a year, since they churn to you as fast as they churn away. Why spend lots of money on customer retention when it's a closed system? I don't agree with the philosophy, but it's an interesting way of looking at your customers ' continuously disappointed buyers who roam from one competitor to another in the vain hope of finding a better experience.

Does that sound like the philosophy your firm takes towards its associates? If so, you're throwing money down a hole, ruining people's lives and damaging your marketing program more effectively than if your tagline was “We're overpriced and irritating.”

Marketing's Role

In a May 2000 newsletter article, Altman Weil principal Donald Oppenheim estimated that associate turnover can be as high as 40% per year, and probably averages around 15%. That same month, Hildebrandt published an article in their “Managing Partner” magazine stating that up to 80% of associates leave the first firm they work for within 7 years. These statistics suggest a huge gap that needs to be addressed.

Marketing's job is to improve the value proposition in an economic transaction. By thinking of associates as clients of the firm, you can begin thinking of ways to improve the processes of recruiting, acculturation, training and eventual promotion. For example:

• Measure the success rate of associates vs. the partners who interviewed them, and of associates from particular schools (both undergrad and law), and of associates in particular groups.
• Survey associate satisfaction at least once a year, publish the results and act on them.
• Market the different groups in the firm to associates as if you were trying to “win” them.
• Have real mentor relationships, and multiple mentors for each associate.
• Train associates in the realities of firm business; operations, finance, marketing, facilities, etc.
• Trumpet firm successes to the associates; company pride is a huge generator of satisfaction
• Include associates in management discussions, committees, etc.
• Make sure that associates are exposed to as wide a variety of work and partners as possible

A decade or so ago, associate salaries shot up astoundingly as firm's used bigger pots of cash to lure the best and brightest. What we're finding out is that money may buy entry, but not loyalty. Fancier benefits and more casual days aren't working, either.

There are entire books yet to be written about the right way to market your firm to its associates. Start by thinking of them as clients of the firm, and more of them will buy, and “buy into,” the value you offer.

Pay no attention to that man behind the curtain …

Story 1: I was treated to lunch recently by a 4th-year associate at a large corporate law firm. She was on a fund-raising committee and wanted to pick my brain for ideas about free or cheap prizes for an associate raffle. I suggested use of primo parking spots, bar dues paid for a year and a lunch with firm management. She nodded while jotting down the first two, but the last one made her look up at me with the “Are you mad?!?” face. When I asked for clarification, she told me that while the associates respected and admired the firm's most senior partners, the idea of trying to engage them in conversation over lunch was frankly terrifying.

Story 2: I was talking to an associate from another firm about a marketing training program they'd begun a year or so ago. I wanted to know how it was going, and he told me that it was going slowly, but OK. The one big surprise was the overwhelming assumption on the part of the associates that being asked to learn about marketing must mean that the firm was in financial trouble, which it ain't. “We've just learned to make that clear at the get-go,” he told me.

Story 3: I was talking on the phone recently with a guy I used to work with in the retail-marketing world. He'd gone back to school for his law degree and is now a 3rd-year associate at a big Chicago firm. He was telling me that he enjoyed it, but was annoyed at how puny the raises had been the last couple years. “What really bakes my beans,” he griped, “is that there are so few associates in this firm compared to partners.”

“I don't follow you,” I said.

“This isn't one of those big meat-grinder firms with 10 associates to every partner. We've only got about one-and-a-half associates for every partner. There are so few of us associates! They can afford to pay us more!”

Being that he was exactly wrong, I explained to him the concept of leverage. How a firm with more associates per partner makes more profit for the partners and has more money available for associate salaries.

“Wow,” he replied. “That's counterintuitive.”

The term “buy-in” is incredibly appropriate.

At most firms, the transition to partnership requires that an attorney “buy into” the organization. The amount varies considerably, but it is often more than a year's salary. And partners almost always pay for their benefits out of pocket. And partners' draws are often wildly inconsistent from month to month. The eventual financial rewards of partnership can be huge, but the first couple years aren't easy.

And what do law firms do to prepare associates for partnership? If the three stories above are any indication, partners terrify associates, lead them to believe that marketing is a sign of corporate weakness and fail to educate them on the basics of firm finance. All that in preparation for the day when they'll be asked to “buy into” the partnership. If you're asking somebody to buy something, they're a customer. And firms should treat associates like customers from the day they begin interviewing until the day they make partner.

Why? Because you're asking them to commit their financial and personal futures to your organization. Because they are your front-line customers. If they don't buy what you're selling, how can they turn around and offer meaningful value to the firm's clients?

Churn 'em and Burn 'em

One of my favorite terms from retail marketing is “churn,” the percentage of your customers that leave and go to a competitor. In some industries, all the players practice an unspoken philosophy of “churn 'em and burn 'em.” Let 'em switch at a rate of 30% a year, since they churn to you as fast as they churn away. Why spend lots of money on customer retention when it's a closed system? I don't agree with the philosophy, but it's an interesting way of looking at your customers ' continuously disappointed buyers who roam from one competitor to another in the vain hope of finding a better experience.

Does that sound like the philosophy your firm takes towards its associates? If so, you're throwing money down a hole, ruining people's lives and damaging your marketing program more effectively than if your tagline was “We're overpriced and irritating.”

Marketing's Role

In a May 2000 newsletter article, Altman Weil principal Donald Oppenheim estimated that associate turnover can be as high as 40% per year, and probably averages around 15%. That same month, Hildebrandt published an article in their “Managing Partner” magazine stating that up to 80% of associates leave the first firm they work for within 7 years. These statistics suggest a huge gap that needs to be addressed.

Marketing's job is to improve the value proposition in an economic transaction. By thinking of associates as clients of the firm, you can begin thinking of ways to improve the processes of recruiting, acculturation, training and eventual promotion. For example:

• Measure the success rate of associates vs. the partners who interviewed them, and of associates from particular schools (both undergrad and law), and of associates in particular groups.
• Survey associate satisfaction at least once a year, publish the results and act on them.
• Market the different groups in the firm to associates as if you were trying to “win” them.
• Have real mentor relationships, and multiple mentors for each associate.
• Train associates in the realities of firm business; operations, finance, marketing, facilities, etc.
• Trumpet firm successes to the associates; company pride is a huge generator of satisfaction
• Include associates in management discussions, committees, etc.
• Make sure that associates are exposed to as wide a variety of work and partners as possible

A decade or so ago, associate salaries shot up astoundingly as firm's used bigger pots of cash to lure the best and brightest. What we're finding out is that money may buy entry, but not loyalty. Fancier benefits and more casual days aren't working, either.

There are entire books yet to be written about the right way to market your firm to its associates. Start by thinking of them as clients of the firm, and more of them will buy, and “buy into,” the value you offer.