The Power of One

Landmark research reveals that having a single individual accountable for firm-wide client service boosts profits per attorney by up to 41.2%. This article discusses the critical success factors that drive this exceptional ROI ' and learn how to define this role at your firm to deliver measurable results with lasting impact.

The BTI Consulting Group performed a comprehensive analysis of how over 160 distinct, yet interrelated, marketing activities impact firm revenue, profitability and growth. This research, based on more than 140 interviews with Chief Marketing Officers, Managing Partners, Directors of Business Development and other marketing executives, definitively identified the marketing practices that deliver the best returns. Of these, the practice of having a single individual accountable for firm-wide client service stands out as the single most powerful driver behind higher profits per attorney.

What's in a Name?

While exact titles, job descriptions and responsibilities vary by firm, 'single individuals accountable for firm-wide client service performance' share three distinct, defining characteristics:

• They champion their firms' efforts to improve client service;
• They control a budget dedicated to the advancement of client service; and
• At least 25% of their compensation is tied directly to their firms' client service performance.

These three unique characteristics empower the client service executive to truly impact client service performance. Missing even one of these key elements compromises the effectiveness of the client service executive.

Client service executives are tasked with the ongoing challenge of benchmarking, monitoring and improving client service. Their typical job responsibilities include providing client-focused tools and programs, generating strategies to improve client service performance, delineating gaps between performance and client expectations and regularly tracking and monitoring client satisfaction. Many also conduct a number of annual interviews with key clients to gauge client service performance and anticipate changes in clients' goals and needs.

Client service executives are typically drawn from the ranks of the most well respected attorneys in the firm. They generally have strong innate abilities to work with people and are recognized for their personal connections and savvy with their own client base. Most are born leaders ' others are naturally drawn to them for their kinetic energy or unique style. Few tackle the job full-time. The best client service executives dedicate between 20% and 30% of their time to boosting firm-wide client service (the remainder of their time is split between billable hours and their own client development activities).

Compensation is critical to the success of a client service executive. Tying compensation to performance provides incentive and accountability. It compels the client service executive to define accurate, time-tested benchmarks of client service and satisfaction. It promotes continuous, regular attention to clients ' to their goals, objectives, needs and expectations. It is this intense, single-minded focus on clients that BTI credits with the incredible, positive impact that client service executives have on their firms' financial performance.

Four Key Behaviors of Client-Focused Law Firms

BTI's research reveals that law firms that designate a single individual as accountable for firm-wide client service performance enjoy profits per attorney up to 41.2% higher than those that do not. They also espouse four key programs that help promote and drive this exceptional return:

1. Systematic, regular client feedback;
2. Changes tied to client feedback;
3. A culture of reward and recognition; and
4. Established performance metrics.

These behaviors are the core of a client-focused law firm. Many client service executives spearhead the adoption of these key practices as part of their effort to improve client service.

Systematic, Regular Client Feedback

At the crux of any client-focused law firm's objectives is to better understand and serve clients. What better way to achieve this lofty goal than to communicate with clients? Best-in-class client feedback programs establish regular, systematic processes to gather and catalogue information about clients. These typically involve:

• Client interviews;
• Conducted in person or by telephone;
• By a third-party, marketing professional or senior law firm executive, such as the client service executive or Managing Partner;
• Every 18-24 months;
• Client satisfaction metrics;
• Gauge and benchmark client service performance;
• Assess progress of internal initiatives;
• Help evaluate the performance of the client service executive;
• Questions targeting clients;
• Goals and objectives;
• Expectations of law firms;
• Changing needs and priorities; and
• Most pressing concerns.

Clients respond best to interviews that incorporate questions about their own needs, goals and objectives. They answer most honestly and insightfully when interacting directly with another person. Clients translate this approach as an expression of interest and investment in them, their priorities and their concerns. In this way, the act of soliciting client feedback becomes an act of client service in itself, boosting client satisfaction and generating immediate return.

New Programs Tied to Client Feedback

A general counsel once reported to us that working with his law firm is like the movie 'Groundhog Day' ' that the law firm kept asking him what was wrong but nothing ever changed. Client-focused law firms break this never-ending cycle by acting on the criticism and advice they receive from clients. Specifically, they map out a plan to address each of the key issues identified by clients ' both good and bad.

For problem areas, savvy law firms typically adopt a two-pronged ap-proach. The first tackles the challenge head-on, pinpointing and recognizing the core of the matter and devising the best possible solution. The second involves communication, both with clients and internally. Many problems can be solved in the short-term. However, for deeper, more challenging hurdles, it is vital to respond to clients' concerns while institutional changes are being made.

Proactive law firms devise new tactics and strategies to take advantage of growing opportunities within the client base. These programs target practice areas, industries, regions and even add-on services that revealed themselves in client research as having high growth prospects.

A Culture of Reward and Recognition

Napoleon Bonaparte once mused: 'A soldier will fight long and hard for a bit of colored ribbon.' Client-focused law firms do not overlook the power of reward and recognition. It is often the client service executive who takes the reigns in nurturing and promoting this aspect of a law firm's culture. Client-focused law firms excel at recognizing and honoring all members of their firms for delivering exceptional client service.

Some examples of how client-focused law firms celebrate success:

• Leaders publicly laud the performance of Associates and support staff;
• Newsletters honor attorneys and professionals for client service excellence;
• Client service is a key part of each attorney's performance review; and
• Managing Partners reward client service executives and others for raising the bar in client satisfaction.

Established Performance Metrics

Client service executives are adamant about instituting key metrics to measure and track client service performance. Not surprising, considering that at least 25% of their compensation is tied to firm-wide client service performance. This level of accountability is a key driver in the development of creative and effective ways to measure improvements in client service performance.

Metrics provide a baseline as well as a constant point of reference. They are invaluable tools in strategic planning and goal setting. Client service executives rely on metrics to assess their own performance, establish firm-wide targets and pinpoint areas of client service strength and weakness. The most proven, effective metrics of client service performance include:

• Client satisfaction;
• Recommendation rates;
• Client retention;
• Realization rates;
• Profit margins by client; and
• Practice area penetration.

Getting Started

Now that you've got all of the ingredients, how do you embark on your own journey of designating a client service executive and boosting profits per attorney?

• Find the right person. Remember the key attributes of a client service executive: a respected individual and natural leader with exceptional people skills, a strong 'EQ,' exemplary client relationships and a passion for delivering superior client service.
• Empower the right person. A budget provides the client service executive with the degree of autonomy essential to achieving the firm's client service goals. Calculate the ideal budget by multiplying gross profits by 1%-2%. (Keep in mind that proven returns as a direct result of this single individual are more than 40%.)
• Hold them accountable. A compensation component that is not optional. The success of the client service executive relies on accountability. Without it, your firm's client service performance is left to the whim of serendipity.

Above all else, set a course and give it time to succeed. While the journey may be bumpy at times, methodology is proven and the rewards are great. Who knows, you may even increase your per-attorney profitability to 41.2%.

Landmark research reveals that having a single individual accountable for firm-wide client service boosts profits per attorney by up to 41.2%. This article discusses the critical success factors that drive this exceptional ROI ' and learn how to define this role at your firm to deliver measurable results with lasting impact.

The BTI Consulting Group performed a comprehensive analysis of how over 160 distinct, yet interrelated, marketing activities impact firm revenue, profitability and growth. This research, based on more than 140 interviews with Chief Marketing Officers, Managing Partners, Directors of Business Development and other marketing executives, definitively identified the marketing practices that deliver the best returns. Of these, the practice of having a single individual accountable for firm-wide client service stands out as the single most powerful driver behind higher profits per attorney.

What's in a Name?

While exact titles, job descriptions and responsibilities vary by firm, 'single individuals accountable for firm-wide client service performance' share three distinct, defining characteristics:

• They champion their firms' efforts to improve client service;
• They control a budget dedicated to the advancement of client service; and
• At least 25% of their compensation is tied directly to their firms' client service performance.

These three unique characteristics empower the client service executive to truly impact client service performance. Missing even one of these key elements compromises the effectiveness of the client service executive.

Client service executives are tasked with the ongoing challenge of benchmarking, monitoring and improving client service. Their typical job responsibilities include providing client-focused tools and programs, generating strategies to improve client service performance, delineating gaps between performance and client expectations and regularly tracking and monitoring client satisfaction. Many also conduct a number of annual interviews with key clients to gauge client service performance and anticipate changes in clients' goals and needs.

Client service executives are typically drawn from the ranks of the most well respected attorneys in the firm. They generally have strong innate abilities to work with people and are recognized for their personal connections and savvy with their own client base. Most are born leaders ' others are naturally drawn to them for their kinetic energy or unique style. Few tackle the job full-time. The best client service executives dedicate between 20% and 30% of their time to boosting firm-wide client service (the remainder of their time is split between billable hours and their own client development activities).

Compensation is critical to the success of a client service executive. Tying compensation to performance provides incentive and accountability. It compels the client service executive to define accurate, time-tested benchmarks of client service and satisfaction. It promotes continuous, regular attention to clients ' to their goals, objectives, needs and expectations. It is this intense, single-minded focus on clients that BTI credits with the incredible, positive impact that client service executives have on their firms' financial performance.

Four Key Behaviors of Client-Focused Law Firms

BTI's research reveals that law firms that designate a single individual as accountable for firm-wide client service performance enjoy profits per attorney up to 41.2% higher than those that do not. They also espouse four key programs that help promote and drive this exceptional return:

1. Systematic, regular client feedback;
2. Changes tied to client feedback;
3. A culture of reward and recognition; and
4. Established performance metrics.

These behaviors are the core of a client-focused law firm. Many client service executives spearhead the adoption of these key practices as part of their effort to improve client service.

Systematic, Regular Client Feedback

At the crux of any client-focused law firm's objectives is to better understand and serve clients. What better way to achieve this lofty goal than to communicate with clients? Best-in-class client feedback programs establish regular, systematic processes to gather and catalogue information about clients. These typically involve:

• Client interviews;
• Conducted in person or by telephone;
• By a third-party, marketing professional or senior law firm executive, such as the client service executive or Managing Partner;
• Every 18-24 months;
• Client satisfaction metrics;
• Gauge and benchmark client service performance;
• Assess progress of internal initiatives;
• Help evaluate the performance of the client service executive;
• Questions targeting clients;
• Goals and objectives;
• Expectations of law firms;
• Changing needs and priorities; and
• Most pressing concerns.

Clients respond best to interviews that incorporate questions about their own needs, goals and objectives. They answer most honestly and insightfully when interacting directly with another person. Clients translate this approach as an expression of interest and investment in them, their priorities and their concerns. In this way, the act of soliciting client feedback becomes an act of client service in itself, boosting client satisfaction and generating immediate return.

New Programs Tied to Client Feedback

A general counsel once reported to us that working with his law firm is like the movie 'Groundhog Day' ' that the law firm kept asking him what was wrong but nothing ever changed. Client-focused law firms break this never-ending cycle by acting on the criticism and advice they receive from clients. Specifically, they map out a plan to address each of the key issues identified by clients ' both good and bad.

For problem areas, savvy law firms typically adopt a two-pronged ap-proach. The first tackles the challenge head-on, pinpointing and recognizing the core of the matter and devising the best possible solution. The second involves communication, both with clients and internally. Many problems can be solved in the short-term. However, for deeper, more challenging hurdles, it is vital to respond to clients' concerns while institutional changes are being made.

Proactive law firms devise new tactics and strategies to take advantage of growing opportunities within the client base. These programs target practice areas, industries, regions and even add-on services that revealed themselves in client research as having high growth prospects.

A Culture of Reward and Recognition

Napoleon Bonaparte once mused: 'A soldier will fight long and hard for a bit of colored ribbon.' Client-focused law firms do not overlook the power of reward and recognition. It is often the client service executive who takes the reigns in nurturing and promoting this aspect of a law firm's culture. Client-focused law firms excel at recognizing and honoring all members of their firms for delivering exceptional client service.

Some examples of how client-focused law firms celebrate success:

• Leaders publicly laud the performance of Associates and support staff;
• Newsletters honor attorneys and professionals for client service excellence;
• Client service is a key part of each attorney's performance review; and
• Managing Partners reward client service executives and others for raising the bar in client satisfaction.

Established Performance Metrics

Client service executives are adamant about instituting key metrics to measure and track client service performance. Not surprising, considering that at least 25% of their compensation is tied to firm-wide client service performance. This level of accountability is a key driver in the development of creative and effective ways to measure improvements in client service performance.

Metrics provide a baseline as well as a constant point of reference. They are invaluable tools in strategic planning and goal setting. Client service executives rely on metrics to assess their own performance, establish firm-wide targets and pinpoint areas of client service strength and weakness. The most proven, effective metrics of client service performance include:

• Client satisfaction;
• Recommendation rates;
• Client retention;
• Realization rates;
• Profit margins by client; and
• Practice area penetration.

Getting Started

Now that you've got all of the ingredients, how do you embark on your own journey of designating a client service executive and boosting profits per attorney?

• Find the right person. Remember the key attributes of a client service executive: a respected individual and natural leader with exceptional people skills, a strong 'EQ,' exemplary client relationships and a passion for delivering superior client service.
• Empower the right person. A budget provides the client service executive with the degree of autonomy essential to achieving the firm's client service goals. Calculate the ideal budget by multiplying gross profits by 1%-2%. (Keep in mind that proven returns as a direct result of this single individual are more than 40%.)
• Hold them accountable. A compensation component that is not optional. The success of the client service executive relies on accountability. Without it, your firm's client service performance is left to the whim of serendipity.

Above all else, set a course and give it time to succeed. While the journey may be bumpy at times, methodology is proven and the rewards are great. Who knows, you may even increase your per-attorney profitability to 41.2%.