Successfully Finding, Hiring and Managing Marketing Consultants and Agencies

How to Find Them

The best way to find consultants is through referrals from colleagues. Ask your fellow marketers at other firms who they have used and to describe their experiences with them. You can also attend local LMA (Law Marketing Association) meetings ' where you'll often find as many law firm consultants as in-house marketing people. “Googling” and web searches can also reap a host of potential candidates, but narrowing down the candidate field is best done by asking trusted colleagues who they've worked with and their experiences with those consultants.

Once you narrow your candidate list down to a manageable two-three (but no more than four), the next thing you should do is to put together an RFP that outlines what you're looking for and what you expect the consultant to do.

Selecting the Right Firm

There are lots of criteria you need to consider in hiring a consultant. Some of the more important ones include:

• Personal connection: If there's not a good personal connection from the start, your relationship with the consultant can have an impact on the results the two of you can achieve. You don't need to be “BFFs” with your consultant, but you need to
  like and respect one another.
• Understanding your business: Make sure that the consultant really understands your firm and your business. If you hire a consultant who hasn't worked with other law firms before (and that can be beneficial in some situations), make sure you spend up-front time getting the consultant up-to-speed about the legal industry and your firm.
• Demonstrated success with either other law firms or other professional services: Although it's not critical that the consultant has law firm experience, it can be very helpful if the consultant has worked with other professional service firms.
• Location and size: Where consultants are located and how big (or small) the company is doesn't really matter: most of your work with them may be done by phone and e-mail (so their location is somewhat irrelevant) and remember, it's often better to be a big client to a small firm than a small client to a big firm.
• Conflicts of interest: If you're going to work with a consultant who either only works with law firms or has a lot of law firm clients, it's important to understand how the consultant handles conflicts. Be careful not to select a consultant or agency that has too many similar clients. If you're going to be working on a project that involves confidential or proprietary information, you may consider having the consultant sign a non-disclosure agreement (NDA).
• Budget: Decide how much you want to spend ' it's important for the consultant to understand the financial scope of what you want to do. If you already have a budget for the project, you can include that in your RFP (consultants really like knowing upfront what it is you want to spend). If you don't include a budget in your RFP, expect to get a wide variety of pricing ' and be careful not to eliminate a consultant just because his or her pricing came in at the top.
• Your team: Ask the consultant specifically who will be: 1) managing your account; and 2) doing the actual work. If you're paying for a Senior Consultant, you should get work done by a Senior Consultant, not an entry-level person. Don't fall for a “bait-and-switch” pitch.
• References: You should make sure that you request references in your RFP. Ask for both current and previous clients, and then call them and talk to them about their experiences with the consultant you're considering. Realize that a consultant will only give you references that will provide a “glowing” review, so try and ask some really tough questions, like, “If you hired her again, what would you do differently?” “What was the one thing you think he could have done better for you?” or, “What would you have liked to have known about the consultant before you hired him/her?”

Negotiating the Deal

After you've selected the consultant you want to hire, the next thing you do is negotiate the contract. Some things to keep in mind as you negotiate:

• Retainers vs. hourly or per project fees: Some consultants only work on a retainer basis. If that's the case with the consultant you want to hire, tell him/her you would like to start with a three- six-month trial program and then review achievements at the end of that time before you commit for a longer relationship. If you can get him to do an initial discrete project initially that's either billed hourly or as a flat fee, that will provide you with an idea of how
  efficiently he works.
• Length of the contract: Be careful not to lock yourself into a “long-term relationship.” Many consultants will want at least a year's commitment, so be prepared to negotiate downward.
• Out-of-pocket expenses: These are the hardest expenses to determine, but the consultant should give you a sense of what you can expect here. These costs include everything from postage and shipping to travel and photocopying. You may ask that any out-of-pocket expenses above a certain dollar amount (say, $100) need to be pre-approved by you before the consultant incurs the expense.
• Mark-ups for additional services: Some consultants (especially graphic designers and ad agencies) typically add a slight mark-up to any additional services they handle on your behalf. For example, if your graphic designer works directly with the printer on a printed piece, it would be typical for her to add a percentage of the printer's cost to the bill she submits to you. It's kind of like a “handling fee. Some printers also give designers different pricing than they would if the printer billed you directly.

Managing the Consultant

Hiring the consultant is just the beginning. The hard part comes next: managing the consultant. Everyone has his or her own management style, but the most important keys to successfully managing a consultant are:

• Regular/constant communication.
• Clear articulation of the scope of the project or activity that you are hiring the consultant for.
• What a successful conclusion to the project looks like.
• Mutual agreement on a timeline and deliverables.

Measuring Success

Probably the most important way to measure the success of a consultant is for both parties to be clear going into the relationship what is expected of both. At the outset, you should sit down with your consultant or agency and map out some SMART (it's an old acronym. but helpful ' Specific, Measureable, Actionable, Realistic, and Trackable) goals and a timeline. As the client, it will be your responsibility to watch and chart the consultant's progress toward these goals ' but it's the consultant's responsibility to make sure the goals are achieved and that progress is regularly reported back to you.

John J. Buchanan, a member of this newsletter's Board of Editors, is the Director of Media & Public Relations at Perkins Coie LLP in San Francisco. He may be reached at 415-344-7122 or via e-mail at [email protected].

While it might seem that hiring consultants and outside agencies to provide additional support is a quick and easy solution to a marketing challenge, finding, hiring and managing outside resources can be tricky. There's no one perfect solution for finding the right consultant, making a “good hire” and then effectively managing that resource, but there are a few guidelines that can, at least, set you on the right path.

Types of Consultants

For law firms, there are a number of general types of consultants or agencies to whom you might look outside your marketing department. Some of the more common ones include graphic designers, advertising agencies, public relations firms, general marketing/branding consultants, business development coaches, digital marketing experts (including CRM, e-mail marketing and websites), and social media consultants. The specifics of hiring varies by the type of consultant, but there are a few good rules of thumb that are helpful in selecting the right consultant for your particular situation

How to Find Them

The best way to find consultants is through referrals from colleagues. Ask your fellow marketers at other firms who they have used and to describe their experiences with them. You can also attend local LMA (Law Marketing Association) meetings ' where you'll often find as many law firm consultants as in-house marketing people. “Googling” and web searches can also reap a host of potential candidates, but narrowing down the candidate field is best done by asking trusted colleagues who they've worked with and their experiences with those consultants.

Once you narrow your candidate list down to a manageable two-three (but no more than four), the next thing you should do is to put together an RFP that outlines what you're looking for and what you expect the consultant to do.

Selecting the Right Firm

There are lots of criteria you need to consider in hiring a consultant. Some of the more important ones include:

• Personal connection: If there's not a good personal connection from the start, your relationship with the consultant can have an impact on the results the two of you can achieve. You don't need to be “BFFs” with your consultant, but you need to
  like and respect one another.
• Understanding your business: Make sure that the consultant really understands your firm and your business. If you hire a consultant who hasn't worked with other law firms before (and that can be beneficial in some situations), make sure you spend up-front time getting the consultant up-to-speed about the legal industry and your firm.
• Demonstrated success with either other law firms or other professional services: Although it's not critical that the consultant has law firm experience, it can be very helpful if the consultant has worked with other professional service firms.
• Location and size: Where consultants are located and how big (or small) the company is doesn't really matter: most of your work with them may be done by phone and e-mail (so their location is somewhat irrelevant) and remember, it's often better to be a big client to a small firm than a small client to a big firm.
• Conflicts of interest: If you're going to work with a consultant who either only works with law firms or has a lot of law firm clients, it's important to understand how the consultant handles conflicts. Be careful not to select a consultant or agency that has too many similar clients. If you're going to be working on a project that involves confidential or proprietary information, you may consider having the consultant sign a non-disclosure agreement (NDA).
• Budget: Decide how much you want to spend ' it's important for the consultant to understand the financial scope of what you want to do. If you already have a budget for the project, you can include that in your RFP (consultants really like knowing upfront what it is you want to spend). If you don't include a budget in your RFP, expect to get a wide variety of pricing ' and be careful not to eliminate a consultant just because his or her pricing came in at the top.
• Your team: Ask the consultant specifically who will be: 1) managing your account; and 2) doing the actual work. If you're paying for a Senior Consultant, you should get work done by a Senior Consultant, not an entry-level person. Don't fall for a “bait-and-switch” pitch.
• References: You should make sure that you request references in your RFP. Ask for both current and previous clients, and then call them and talk to them about their experiences with the consultant you're considering. Realize that a consultant will only give you references that will provide a “glowing” review, so try and ask some really tough questions, like, “If you hired her again, what would you do differently?” “What was the one thing you think he could have done better for you?” or, “What would you have liked to have known about the consultant before you hired him/her?”

Negotiating the Deal

After you've selected the consultant you want to hire, the next thing you do is negotiate the contract. Some things to keep in mind as you negotiate:

• Retainers vs. hourly or per project fees: Some consultants only work on a retainer basis. If that's the case with the consultant you want to hire, tell him/her you would like to start with a three- six-month trial program and then review achievements at the end of that time before you commit for a longer relationship. If you can get him to do an initial discrete project initially that's either billed hourly or as a flat fee, that will provide you with an idea of how
  efficiently he works.
• Length of the contract: Be careful not to lock yourself into a “long-term relationship.” Many consultants will want at least a year's commitment, so be prepared to negotiate downward.
• Out-of-pocket expenses: These are the hardest expenses to determine, but the consultant should give you a sense of what you can expect here. These costs include everything from postage and shipping to travel and photocopying. You may ask that any out-of-pocket expenses above a certain dollar amount (say, $100) need to be pre-approved by you before the consultant incurs the expense.
• Mark-ups for additional services: Some consultants (especially graphic designers and ad agencies) typically add a slight mark-up to any additional services they handle on your behalf. For example, if your graphic designer works directly with the printer on a printed piece, it would be typical for her to add a percentage of the printer's cost to the bill she submits to you. It's kind of like a “handling fee. Some printers also give designers different pricing than they would if the printer billed you directly.

Managing the Consultant

Hiring the consultant is just the beginning. The hard part comes next: managing the consultant. Everyone has his or her own management style, but the most important keys to successfully managing a consultant are:

• Regular/constant communication.
• Clear articulation of the scope of the project or activity that you are hiring the consultant for.
• What a successful conclusion to the project looks like.
• Mutual agreement on a timeline and deliverables.

Measuring Success

Probably the most important way to measure the success of a consultant is for both parties to be clear going into the relationship what is expected of both. At the outset, you should sit down with your consultant or agency and map out some SMART (it's an old acronym. but helpful ' Specific, Measureable, Actionable, Realistic, and Trackable) goals and a timeline. As the client, it will be your responsibility to watch and chart the consultant's progress toward these goals ' but it's the consultant's responsibility to make sure the goals are achieved and that progress is regularly reported back to you.

John J. Buchanan, a member of this newsletter's Board of Editors, is the Director of Media & Public Relations at Perkins Coie LLP in San Francisco. He may be reached at 415-344-7122 or via e-mail at [email protected].