Client Speak: Client Feedback ' The 12 Essential Steps

Over the past year, my articles in this column have primarily focused on the benefits and insights that can be derived from a well planned and well executed Client Feedback program.

These prior articles discussed such vital issues as: Alternative Fee Arrangements; the relative importance of Quality Work versus Quality Service; the nine prerequisites for successful Cross-Selling and Convergence; the necessary attributes of a Trusted Advisor; and, the substantial value that Client Feedback can provide above and beyond just an assessment of Client Satisfaction ' or Dissatisfaction ' and Loyalty.

In contrast, this article ' in two parts ' will deal with the Client Feedback process itself, specifically the 12 essential steps involved. This first part lists the 12 steps and then describes steps 1 through 4a (pre-interview planning); Part Two will appear in the November issue of this newsletter and will provide details on steps 5 through 12 (the interviews and the post-interview procedure). Part Two will also discuss the advisability of periodic Summary Reports prepared for firm Management after a number of individual Client Feedback Reports have been completed.

The 12 Essential Steps

The following lists each of the 12 steps ' both preceding and following the interviews, as well as those pertaining to the interviews themselves. While all are crucial in attaining the desired end-result, how each step is implemented and by whom will obviously have a distinct effect on the outcome.

1. Orientation I ' Interviewer and Firm Management

2. Designation of a Firm Sponsor

3. Methodology and Selection of Interview Candidates

4. Orientation II ' Interviewer, Firm Sponsor (optional) with each Designated Lead Partner

4a. (Optional) Pre-Interview Client Meeting with the Interviewer and Firm Sponsor

5. Invitation to the Interviewees to Participate

6. Scheduling the Interviews

7. Development of Interview Guide

8. Conducting the Interviews

9. Interview Debriefings

10. Client Feedback Report

11. Follow-Up Activity

12. Post-Follow-Up-Activity Feedback

In discussing the 12 steps, I will be assuming that the intent is to obtain feedback from senior executives of a firm's most important clients, hereinafter referred to as “Key” or “Tier 1″ clients. Accordingly, the focus will be on interviews as opposed to written or online surveys. That's not meant to discourage consideration of surveys as part of an overall Client Feedback program when and where appropriate. (See description of step 3, below.)

1. Orientation I ' Interviewer And Firm Management

This is really a two-way orientation. To the extent necessary, the interviewer will gain a general familiarity of the relevant aspects of the firm's organization, including its cultural norms, client service standards, strategic aspirations and competitive concerns. Management will also disclose what it would like to gain from the process, as well as those practice areas, industry groups, geographic locations and/or firm initiatives about which it is seeking client reactions.

In turn, the interviewer will describe the alternative interview and survey methodologies, outline his or her preferences and approach, and explain the benefits that can be derived from the process so as to appropriately set Management's expectations

Because this orientation is usually conducted face-to-face, meeting the interviewer enables the firm to assess the type of impression s/he will make on its clients and, thereby, provide the proper level of confidence that the Client Feedback process ' and the firm's evident support for it ' will be perceived by its clients in a positive manner (see also the description of steps 4 and 4a, below).

(Because I could be perceived as having a bias in assessing the pros and cons of using in-house personnel as opposed to a third party to conduct the interviews, I have declined to do so. However, whoever is designated as the interviewer, it is generally agreed that s/he should be independent of the client service team. On the subject of an in-house versus a third-party interviewer, your opinion would be useful ' see the final section of this article, below.)

2. Designation of a Firm Sponsor

Even where interviews are to be conducted by a third party, there will normally be considerable in-house effort necessary to ensure that the process runs smoothly and efficiently. Therefore, someone at the Partner level ' or, at least, the senior C-suite level ' with the proper degree of clout and authority should be appointed by Management as the overall Client Feedback Sponsor (“Firm Sponsor”).

The responsibilities of the Firm Sponsor include not only providing enthusiastic support for the process but also imparting the necessary oversight to ensure that the Lead Partners for each of the clients whose executives are to be interviewed perform those tasks necessary to enable the Client Feedback process to be organized and executed promptly and efficiently.

Aside from the additional responsibility for designating or approving the selected clients ' in consultation with firm Management ' the Firm Sponsor may also have to assist in encouraging the respective Lead Partners to have their clients participate in the program. Other possible areas where the Firm Sponsor may need to have some degree of involvement include the selection of interviewees, review and discussion of the Client Feedback Reports' findings and recommendations, and monitoring the planning for and implementation of necessary follow-up activities.

At the appropriate time, the Firm Sponsor may want to consider having the Client Feedback process ' and the rationale for it ' communicated to the firm's Partners, and possibly other personnel, as evidence of firm Management's support.

3. Methodology and Selection of Interview Candidates

For interviews with senior executives of a firm's Key clients, we believe that maximum value is derived from one-on-one in-person interviews. In comparison, the only greater benefit that phone interviews provide pertains to cost and convenience. While these are obviously important considerations, we have found that the enhanced benefit and value of in-person interviews will normally exceed the cost and convenience differential.

Our experience indicates that in-person interviews generate an enhanced degree of candor, reveal important visual as well as verbal feedback, result in more willingness on the part of the interviewee to share sensitive information, provide assurance of the interviewee's undivided attention (i.e., no multitasking), and create a more favorable impression of the importance that the firm ascribes to the process. Further, executives we have interviewed seem to prefer being interviewed in person.

Only in those situations where it is not possible or practical to schedule an in-person interview do we conduct Tier 1 client interviews with senior executives by phone. For other interviews ' including those involving Tier 2 and Tier 3 clients ' we recommend consideration of phone interviews and/or written or online surveys, as appropriate to the situation.

(I recognize that there are some who feel there is an advantage to phone interviews, aside from just cost and convenience. So, here your input is again requested, this time as to the relative benefits and value of in-person versus phone interviews ' see the final section of this article, below.)

Client Candidates

Most law firms, regardless of size, will have no more than 40 to 50 Key clients. In determining those to be selected for Client Feedback, the Firm Sponsor ' in consultation with firm Management ' will want to make his initial selections based on various attributes such as the following (not necessarily listed in order of priority):

• actual and potential client fees for all applicable services of the firm;
• importance of the client to the firm, giving consideration to such factors as the various services provided and where, as well as any unique client or service characteristics;
• size and prominence of the client or a matter/case in which the client was or is involved;
• prominence and influence of the client's senior executives in the business and legal communities;
• the number and stature of other law firms providing, or which have recently provided, important services to the client;
• clients who anticipate, or have recently experienced, a change in their General Counsel or other important senior executive(s);
• a client where there has been or will be a change in the Lead Partner or other key member of the client service team;
• a client or matter/case where there are known to exist or have existed engagement problems or relationship issues;
• a model or great client.

As for the Lead Partners whose clients are ultimately selected for Client Feedback, we recommend that these partners not be given the option of whether or not to participate. However, you may wish to initiate the Client Feedback process with clients whose Lead Partners are the strongest supporters of the process.

Interviewee Candidates

Among the potential interviewees should be key decision makers, key influencers in the decision to hire, retain and terminate outside counsel, and those who are or will be responsible for areas within the client's organization that have or will have need for the type of services the firm can provide.

In addition to those in the client's Law Department, there are other company personnel who are likely to be logical candidates for interviews due to the nature and significance of the relationship. These could include members of the Board, corporate management, and senior executives from applicable subsidiary and divisional business units.

The number of interviewees at each client could range from just one or two to as many as 10 or more. But it is not the number of interviewees that matters as much as selecting the right ones to get valid feedback on such issues as how the firm has performed, how it stacks up versus the competition, and how the firm's ability compares to its reputation and/or its own self-image.

4. Orientation II 'Interviewer, Firm Sponsor (optional) with Each Designated Lead Partner

Subsequent to the orientation meeting with firm Management (as described in step 1, above), there should be separate orientation sessions with each of the Lead Partners for each client at which interviews are to be conducted.

The purpose of these sessions is to answer any questions the Lead Partners have about the Client Feedback process and to provide them the opportunity to indicate any issues they believe should be pursued.

In addition, these orientation sessions are intended to reveal relevant information about each selected client, such as: a) the nature of the client's business; b) the history of the relationship and a current assessment of it; c) the type of services currently being provided and the fees; d) other law firms providing important services to the client, an estimate of their fees, and an evaluation of each relationship; e) any problems or issues that have arisen or that exist between the client and the client service team, other firm representatives, or the firm itself; and f) relevant background on each of the interviewees.

These sessions also enable the interviewer to determine whether or not each Lead Partner possesses the requisite degree of enthusiasm for the process. Furthermore, the information acquired during these Lead Partner orientations allows the interviewer's approach to be tailored to each client and, more importantly, to each interviewee.

Following these orientation sessions, we normally provide the Firm Sponsor and each Lead Partner with a written description of the Client Feedback process, including its purpose and benefits, along with other useful materials related to the process, such as the key areas of inquiry and the background and experience of the interviewer and our firm. This will prove particularly useful in step 5 ' Invitation to the Interviewees to Participate ' which will be described in Part Two of this article.

4a. (Optional) Pre-Interview Client Meeting with the Interviewer And Firm Sponsor

The need for this meeting with the key contact at the client (or “Client Sponsor” ' who would often be the General Counsel) would depend on the wishes of the Lead Partner, the nature of the client relationship and the number of client executives to be interviewed.

Such a meeting should be considered especially where there are to be a significant number of interviewees at a single client ' say seven to eight or more ' and several of these will be senior C-suite executives.

5 through 12

To be described in Part Two of this article.

What Do You Think?

In the description of steps 1 and 3 above, your opinion was requested as to two important aspects of the Client Feedback process, namely:

a. Is it preferable to have in-person Client Feedback interviews conducted by firm personnel independent of the client service team or by a third party ' and why?

b. Is there greater Client Feedback value and benefit to be derived from in-person interviews or from phone interviews ' and why?

A summary of your responses will be included in Part Two of the article that will appear in the November issue of this newsletter.

Donald E. Aronson is CEO of D. E. Aronson Associates LLC and a member of this newsletter's Board of Editors. Don's firm conducts market research by interviewing executives of professional services firms' Key clients with a primary focus on Client Feedback. Located in New York City, he can be reached at 212-874-4181 or [email protected]. Copyright ' 2010 by D. E. Aronson Associates LLC.

Over the past year, my articles in this column have primarily focused on the benefits and insights that can be derived from a well planned and well executed Client Feedback program.

These prior articles discussed such vital issues as: Alternative Fee Arrangements; the relative importance of Quality Work versus Quality Service; the nine prerequisites for successful Cross-Selling and Convergence; the necessary attributes of a Trusted Advisor; and, the substantial value that Client Feedback can provide above and beyond just an assessment of Client Satisfaction ' or Dissatisfaction ' and Loyalty.

In contrast, this article ' in two parts ' will deal with the Client Feedback process itself, specifically the 12 essential steps involved. This first part lists the 12 steps and then describes steps 1 through 4a (pre-interview planning); Part Two will appear in the November issue of this newsletter and will provide details on steps 5 through 12 (the interviews and the post-interview procedure). Part Two will also discuss the advisability of periodic Summary Reports prepared for firm Management after a number of individual Client Feedback Reports have been completed.

The 12 Essential Steps

The following lists each of the 12 steps ' both preceding and following the interviews, as well as those pertaining to the interviews themselves. While all are crucial in attaining the desired end-result, how each step is implemented and by whom will obviously have a distinct effect on the outcome.

1. Orientation I ' Interviewer and Firm Management

2. Designation of a Firm Sponsor

3. Methodology and Selection of Interview Candidates

4. Orientation II ' Interviewer, Firm Sponsor (optional) with each Designated Lead Partner

4a. (Optional) Pre-Interview Client Meeting with the Interviewer and Firm Sponsor

5. Invitation to the Interviewees to Participate

6. Scheduling the Interviews

7. Development of Interview Guide

8. Conducting the Interviews

9. Interview Debriefings

10. Client Feedback Report

11. Follow-Up Activity

12. Post-Follow-Up-Activity Feedback

In discussing the 12 steps, I will be assuming that the intent is to obtain feedback from senior executives of a firm's most important clients, hereinafter referred to as “Key” or “Tier 1″ clients. Accordingly, the focus will be on interviews as opposed to written or online surveys. That's not meant to discourage consideration of surveys as part of an overall Client Feedback program when and where appropriate. (See description of step 3, below.)

1. Orientation I ' Interviewer And Firm Management

This is really a two-way orientation. To the extent necessary, the interviewer will gain a general familiarity of the relevant aspects of the firm's organization, including its cultural norms, client service standards, strategic aspirations and competitive concerns. Management will also disclose what it would like to gain from the process, as well as those practice areas, industry groups, geographic locations and/or firm initiatives about which it is seeking client reactions.

In turn, the interviewer will describe the alternative interview and survey methodologies, outline his or her preferences and approach, and explain the benefits that can be derived from the process so as to appropriately set Management's expectations

Because this orientation is usually conducted face-to-face, meeting the interviewer enables the firm to assess the type of impression s/he will make on its clients and, thereby, provide the proper level of confidence that the Client Feedback process ' and the firm's evident support for it ' will be perceived by its clients in a positive manner (see also the description of steps 4 and 4a, below).

(Because I could be perceived as having a bias in assessing the pros and cons of using in-house personnel as opposed to a third party to conduct the interviews, I have declined to do so. However, whoever is designated as the interviewer, it is generally agreed that s/he should be independent of the client service team. On the subject of an in-house versus a third-party interviewer, your opinion would be useful ' see the final section of this article, below.)

2. Designation of a Firm Sponsor

Even where interviews are to be conducted by a third party, there will normally be considerable in-house effort necessary to ensure that the process runs smoothly and efficiently. Therefore, someone at the Partner level ' or, at least, the senior C-suite level ' with the proper degree of clout and authority should be appointed by Management as the overall Client Feedback Sponsor (“Firm Sponsor”).

The responsibilities of the Firm Sponsor include not only providing enthusiastic support for the process but also imparting the necessary oversight to ensure that the Lead Partners for each of the clients whose executives are to be interviewed perform those tasks necessary to enable the Client Feedback process to be organized and executed promptly and efficiently.

Aside from the additional responsibility for designating or approving the selected clients ' in consultation with firm Management ' the Firm Sponsor may also have to assist in encouraging the respective Lead Partners to have their clients participate in the program. Other possible areas where the Firm Sponsor may need to have some degree of involvement include the selection of interviewees, review and discussion of the Client Feedback Reports' findings and recommendations, and monitoring the planning for and implementation of necessary follow-up activities.

At the appropriate time, the Firm Sponsor may want to consider having the Client Feedback process ' and the rationale for it ' communicated to the firm's Partners, and possibly other personnel, as evidence of firm Management's support.

3. Methodology and Selection of Interview Candidates

For interviews with senior executives of a firm's Key clients, we believe that maximum value is derived from one-on-one in-person interviews. In comparison, the only greater benefit that phone interviews provide pertains to cost and convenience. While these are obviously important considerations, we have found that the enhanced benefit and value of in-person interviews will normally exceed the cost and convenience differential.

Our experience indicates that in-person interviews generate an enhanced degree of candor, reveal important visual as well as verbal feedback, result in more willingness on the part of the interviewee to share sensitive information, provide assurance of the interviewee's undivided attention (i.e., no multitasking), and create a more favorable impression of the importance that the firm ascribes to the process. Further, executives we have interviewed seem to prefer being interviewed in person.

Only in those situations where it is not possible or practical to schedule an in-person interview do we conduct Tier 1 client interviews with senior executives by phone. For other interviews ' including those involving Tier 2 and Tier 3 clients ' we recommend consideration of phone interviews and/or written or online surveys, as appropriate to the situation.

(I recognize that there are some who feel there is an advantage to phone interviews, aside from just cost and convenience. So, here your input is again requested, this time as to the relative benefits and value of in-person versus phone interviews ' see the final section of this article, below.)

Client Candidates

Most law firms, regardless of size, will have no more than 40 to 50 Key clients. In determining those to be selected for Client Feedback, the Firm Sponsor ' in consultation with firm Management ' will want to make his initial selections based on various attributes such as the following (not necessarily listed in order of priority):

• actual and potential client fees for all applicable services of the firm;
• importance of the client to the firm, giving consideration to such factors as the various services provided and where, as well as any unique client or service characteristics;
• size and prominence of the client or a matter/case in which the client was or is involved;
• prominence and influence of the client's senior executives in the business and legal communities;
• the number and stature of other law firms providing, or which have recently provided, important services to the client;
• clients who anticipate, or have recently experienced, a change in their General Counsel or other important senior executive(s);
• a client where there has been or will be a change in the Lead Partner or other key member of the client service team;
• a client or matter/case where there are known to exist or have existed engagement problems or relationship issues;
• a model or great client.

As for the Lead Partners whose clients are ultimately selected for Client Feedback, we recommend that these partners not be given the option of whether or not to participate. However, you may wish to initiate the Client Feedback process with clients whose Lead Partners are the strongest supporters of the process.

Interviewee Candidates

Among the potential interviewees should be key decision makers, key influencers in the decision to hire, retain and terminate outside counsel, and those who are or will be responsible for areas within the client's organization that have or will have need for the type of services the firm can provide.

In addition to those in the client's Law Department, there are other company personnel who are likely to be logical candidates for interviews due to the nature and significance of the relationship. These could include members of the Board, corporate management, and senior executives from applicable subsidiary and divisional business units.

The number of interviewees at each client could range from just one or two to as many as 10 or more. But it is not the number of interviewees that matters as much as selecting the right ones to get valid feedback on such issues as how the firm has performed, how it stacks up versus the competition, and how the firm's ability compares to its reputation and/or its own self-image.

4. Orientation II 'Interviewer, Firm Sponsor (optional) with Each Designated Lead Partner

Subsequent to the orientation meeting with firm Management (as described in step 1, above), there should be separate orientation sessions with each of the Lead Partners for each client at which interviews are to be conducted.

The purpose of these sessions is to answer any questions the Lead Partners have about the Client Feedback process and to provide them the opportunity to indicate any issues they believe should be pursued.

In addition, these orientation sessions are intended to reveal relevant information about each selected client, such as: a) the nature of the client's business; b) the history of the relationship and a current assessment of it; c) the type of services currently being provided and the fees; d) other law firms providing important services to the client, an estimate of their fees, and an evaluation of each relationship; e) any problems or issues that have arisen or that exist between the client and the client service team, other firm representatives, or the firm itself; and f) relevant background on each of the interviewees.

These sessions also enable the interviewer to determine whether or not each Lead Partner possesses the requisite degree of enthusiasm for the process. Furthermore, the information acquired during these Lead Partner orientations allows the interviewer's approach to be tailored to each client and, more importantly, to each interviewee.

Following these orientation sessions, we normally provide the Firm Sponsor and each Lead Partner with a written description of the Client Feedback process, including its purpose and benefits, along with other useful materials related to the process, such as the key areas of inquiry and the background and experience of the interviewer and our firm. This will prove particularly useful in step 5 ' Invitation to the Interviewees to Participate ' which will be described in Part Two of this article.

4a. (Optional) Pre-Interview Client Meeting with the Interviewer And Firm Sponsor

The need for this meeting with the key contact at the client (or “Client Sponsor” ' who would often be the General Counsel) would depend on the wishes of the Lead Partner, the nature of the client relationship and the number of client executives to be interviewed.

Such a meeting should be considered especially where there are to be a significant number of interviewees at a single client ' say seven to eight or more ' and several of these will be senior C-suite executives.

5 through 12

To be described in Part Two of this article.

What Do You Think?

In the description of steps 1 and 3 above, your opinion was requested as to two important aspects of the Client Feedback process, namely:

a. Is it preferable to have in-person Client Feedback interviews conducted by firm personnel independent of the client service team or by a third party ' and why?

b. Is there greater Client Feedback value and benefit to be derived from in-person interviews or from phone interviews ' and why?

A summary of your responses will be included in Part Two of the article that will appear in the November issue of this newsletter.

Donald E. Aronson is CEO of D. E. Aronson Associates LLC and a member of this newsletter's Board of Editors. Don's firm conducts market research by interviewing executives of professional services firms' Key clients with a primary focus on Client Feedback. Located in New York City, he can be reached at 212-874-4181 or [email protected]. Copyright ' 2010 by D. E. Aronson Associates LLC.