Sales and Service Strategies

The Impact of Industry Groups

Organizing your business development activities along industry lines instead of by practice groups just makes sense. That is the way clients view themselves; law firms should too. One would be hard-pressed to find someone who disagrees with this concept. So why then, are functioning industry groups the exception rather than the rule? Why can't you just organize your business development initiatives around industries and get results? The answer is basic: money and empowered leadership.

Until the issues of budget and group leadership are resolved on a firm level, industry groups will never function at full potential. Too often these groups are formed and business development activity begins to take place with no thought as to how initiatives will be funded and from what budget. The act of actually funding these industry-based initiatives can be so hampered by a budget process organized around practice groups, even the most well-intentioned give up. Multiple levels of forms and approval by people who may not even be involved can slow funding down to the point that, often, the opportunity is lost. Revamping a firm's budgeting process is no small undertaking, but a firm committed to industry-based business development must find alignment in this area.

Even more important, the firm must invest a significant amount of time making decisions about who will lead an industry group and how he or she will mesh with the existing practice group leadership. If not, there is a great danger of initiatives not getting the support they need. Lack of integration can also create situations where efforts are duplicated and resources aren't used effectively. The COO and the business development professional should have a clear map of how these industry groups will mesh with the internal practice groups and perhaps even have a long term plan for eventually organizing the firm internally around industry groups as well. Careful, strategic leadership choices, will greatly improve the success of your industry-based business development activities.

The Importance of Firm Clients and Client Teams

Law-firm compensation systems are the single largest reason why client teams, team selling, cross selling, and firm client initiatives are not as successful as they could be. It is an issue every business development professional will have to deal with. It is imperative you work with your COO to become very familiar with how the firm compensation system functions and take those rules into account when designing team-based programs. Creating a program that is misaligned with how an attorney is being evaluated on will guarantee its failure. However, just working with the compensation system isn't enough.

Forward-thinking business development professionals need to provide input and communicate with firm management about the behaviors needed to drive revenue and service clients. This input must be incorporated into any new compensation system your firm is considering to ensure lawyers are being given incentives to perform those desired functions.

The Critical Nature of Business Development Training

The involvement of senior partners and rainmakers in a firm's training program greatly increases participation from junior partners and associates. If it does not already exist, firm management and leadership should start instilling a culture of top-down leadership. It is not enough for firm leaders to say attendance at business development training programs is, if not mandatory, highly encouraged. If senior partners and firm management do not take part in and attend training, the programs, run the risk of being seen as 'something marketing does' and the underlying message that this isn't important to the success of the firm will be received loud and clear.

Internal Alignment

Can you implement these basic business development programs by sheer willpower and without this type of planning and coordination with firm management? Of course. But successful business development isn't about just having industry groups or client teams in place. Successful business development is about making those programs work for your attorneys as they service clients and secure new business.

More importantly, once this alignment with the firm's internal structure, (i.e., budgets, compensation systems, etc.) is complete, more sophisticated business development programs are possible. Strategic account management, client surveys and communication-based client partnerships are what enable attorneys in your firm to truly service the needs of their clients. This level of client understanding, partnership and service is the goal every law firm today is striving for. Taking the necessary steps to ensure everyone in your firm is working together, and organizational roadblocks to this goal are removed, will guarantee your firm is one of the few that will accomplish it.

Carolee Swallie is the Director of Business Development at Foley Hoag LLP in Boston.

Have you ever wondered why, when everyone in your firm supports the concept of business development, you just can't seem to get initiatives implemented? While business development inside a law firm isn't a new concept, many directors and CMOs have so far failed to recognize just how significant an impact these initiatives will have on the basic structure and organization of the firm. Without this understanding and without planning for incorporating these structural changes into your business development blueprint, many firm-wide initiatives have a greater chance to stall, and perhaps be tabled indefinitely. This concept goes beyond the marketing/business development department having a good relationship and working with the firm's COO. Significant effort must be put into making concrete, strategic changes to the current firm structure and operating procedures. Otherwise, the misalignment could stall implementation of business development programs and delay the desired end result of true client service and increased dollars in the firm's bottom line.

Even for the most basic business development initiatives, your success rate can be increased if you work with the COO or executive

Below are some elements of a business development plan that will have significant impact on the firm.

The Impact of Industry Groups

Organizing your business development activities along industry lines instead of by practice groups just makes sense. That is the way clients view themselves; law firms should too. One would be hard-pressed to find someone who disagrees with this concept. So why then, are functioning industry groups the exception rather than the rule? Why can't you just organize your business development initiatives around industries and get results? The answer is basic: money and empowered leadership.

Until the issues of budget and group leadership are resolved on a firm level, industry groups will never function at full potential. Too often these groups are formed and business development activity begins to take place with no thought as to how initiatives will be funded and from what budget. The act of actually funding these industry-based initiatives can be so hampered by a budget process organized around practice groups, even the most well-intentioned give up. Multiple levels of forms and approval by people who may not even be involved can slow funding down to the point that, often, the opportunity is lost. Revamping a firm's budgeting process is no small undertaking, but a firm committed to industry-based business development must find alignment in this area.

Even more important, the firm must invest a significant amount of time making decisions about who will lead an industry group and how he or she will mesh with the existing practice group leadership. If not, there is a great danger of initiatives not getting the support they need. Lack of integration can also create situations where efforts are duplicated and resources aren't used effectively. The COO and the business development professional should have a clear map of how these industry groups will mesh with the internal practice groups and perhaps even have a long term plan for eventually organizing the firm internally around industry groups as well. Careful, strategic leadership choices, will greatly improve the success of your industry-based business development activities.

The Importance of Firm Clients and Client Teams

Law-firm compensation systems are the single largest reason why client teams, team selling, cross selling, and firm client initiatives are not as successful as they could be. It is an issue every business development professional will have to deal with. It is imperative you work with your COO to become very familiar with how the firm compensation system functions and take those rules into account when designing team-based programs. Creating a program that is misaligned with how an attorney is being evaluated on will guarantee its failure. However, just working with the compensation system isn't enough.

Forward-thinking business development professionals need to provide input and communicate with firm management about the behaviors needed to drive revenue and service clients. This input must be incorporated into any new compensation system your firm is considering to ensure lawyers are being given incentives to perform those desired functions.

The Critical Nature of Business Development Training

The involvement of senior partners and rainmakers in a firm's training program greatly increases participation from junior partners and associates. If it does not already exist, firm management and leadership should start instilling a culture of top-down leadership. It is not enough for firm leaders to say attendance at business development training programs is, if not mandatory, highly encouraged. If senior partners and firm management do not take part in and attend training, the programs, run the risk of being seen as 'something marketing does' and the underlying message that this isn't important to the success of the firm will be received loud and clear.

Internal Alignment

Can you implement these basic business development programs by sheer willpower and without this type of planning and coordination with firm management? Of course. But successful business development isn't about just having industry groups or client teams in place. Successful business development is about making those programs work for your attorneys as they service clients and secure new business.

More importantly, once this alignment with the firm's internal structure, (i.e., budgets, compensation systems, etc.) is complete, more sophisticated business development programs are possible. Strategic account management, client surveys and communication-based client partnerships are what enable attorneys in your firm to truly service the needs of their clients. This level of client understanding, partnership and service is the goal every law firm today is striving for. Taking the necessary steps to ensure everyone in your firm is working together, and organizational roadblocks to this goal are removed, will guarantee your firm is one of the few that will accomplish it.

Carolee Swallie is the Director of Business Development at Foley Hoag LLP in Boston.