1. Copyright ©, 1996-2009, The WJF Institute. Sales Lessons Law Firms Can Learn from the Corporate World: Bringing in More Business Using Key Client Teams William J. Flannery, J.D. The WJF Institute Legal Marketing Association – Richmond Chapter November 18, 2009 Richmond, VA

2. Copyright ©, 1996-2009, The WJF Institute. Today you’ll see, hear and learn … Sales Lessons from the Global 1000 What your firm can adopt and adapt How technology can help you develop tactics and strategy Key client management opportunities Practical ideas on how to close the knowing/doing gap

3. Copyright ©, 1996-2009, The WJF Institute. How The Global 1000 Segment Customers % of RevenueActions Key Clients (Top 150)80% - 90%Global Account Teams Team Leaders Technology Support ROI Analysis Training Global Account Planning Clients Other Than The Top 150 Product/Services Local Geographic 5% - 10%Grow and/or Throw out New Clients?? %Referrals Cold Calls Advertising Branding Campaigns Industry Marketing All segments require face-to-face meetings with decision makers

4. Copyright ©, 1996-2009, The WJF Institute. Key Account Management and Leadership Structure International account manager Sales team Technical team Administrative team HQ management and support

5. Copyright ©, 1996-2009, The WJF Institute. Key accounts are different High revenue / profit customers act and are different Need more resources globally Best sites for beta testing, test marketing, etc. Leaders in their industry and early adopters

6. Copyright ©, 1996-2009, The WJF Institute. Key accounts are managed differently Top 20-30 accounts get c-level attention Managed by VP of global accounts Constant vigilance by senior management Work to create loyalty No one owns the customer

7. Copyright ©, 1996-2009, The WJF Institute. Marketing strategy and plans Well-articulated global strategy for growth Clear, global team account planning process Teams develop global best practices Global teams with local tactics and strategy Different tactics and strategy for each customer Scaleable to the size of the enterprise Advertising / branding is global and local Competitive analysis is global and local Pricing is global

8. Copyright ©, 1996-2009, The WJF Institute. Team building and maintenance Well-trained teams – trained as teams Well-defined roles for all Career paths for all team members Individual defections managed by team Post-merger sales force integration is immediate

9. Copyright ©, 1996-2009, The WJF Institute. Team’s relationship with the customer Team is visible to the customer often – daily Global account teams help manage the customer’s global business Customer doesn’t defect with defectors

10. Copyright ©, 1996-2009, The WJF Institute. Feedback and support Team gives business units information about: Competitive information New product requirements Changes in business environment Pricing and team performance Company provides team with: Global technology support Global marketing support Sales and product training

11. Copyright ©, 1996-2009, The WJF Institute. Measurement and compensation Drives strategy with compensation / recognition Rewards and recognizes teams Not individuals Measures primarily team performance Individual measurements are secondary Doesn’t tolerate “Lone Ranger” behavior

12. Copyright ©, 1996-2009, The WJF Institute. What Your Firm Can Adopt and Adapt

13. Copyright ©, 1996-2009, The WJF Institute. Client-focused teams Global marketing planning methodology Measurements Leadership and client relationship management training Team-based reward and recognition Technology support – for CRM, RFPs Global / local strategy and tactics Key clients cannot be managed informally What and why adopt and adapt?

14. Copyright ©, 1996-2009, The WJF Institute. Adopt and Adapt?, cont’d The firm’s assets (clients) need disciplined financial management Outsourcing, preferred suppliers, “convergence” and “partnering” initiatives by the clients To gain profitable market share To differentiate your firm and its offerings To be part of the client’s team you must act like a team Partners won’t leave if they can’t take key clients “It’s the client, …….” and they have the money

15. Copyright ©, 1996-2009, The WJF Institute. How Buyers BuyLaw Firm’s Actions Awareness Interest Desire Hire Marketing Business Development Rule:Your Mission In Marketing and Business Development Is To Change The Buyer’s Behavior.

16. Copyright ©, 1996-2009, The WJF Institute. Marketing Math to Help Develop Team Tactics and Strategies

17. Copyright ©, 1996-2009, The WJF Institute. Flannery LLP Logic Solutions, Inc. Revenue in $000 IP & TechCorp. Employ- ment Law Environ- mental Litiga- tion T&E Planning TaxTotal Flannery LLP 401818021015463

18. Copyright ©, 1996-2009, The WJF Institute. IP & TechCorp. Employ- ment Law Environ- mental Litiga- tion T&E Planning TaxTotal Flannery LLP Sosa LLP Flannery LLP Sosa LLP Flannery LLP 4018180652101415463 Flannery LLP Logic Solutions, Inc. Revenue in $000

19. Copyright ©, 1996-2009, The WJF Institute. Flannery LLP Logic Solutions, Inc. Revenue in $000 IP & TechCorp. Employ- ment Law Environ- mental Litiga- tion T&E Planning TaxTotal Flannery LLP Sosa LLP Flannery LLP 602220065220171460

20. Copyright ©, 1996-2009, The WJF Institute. Flannery LLP Revenue History $000 ClientIP & Tech Corp EmployEnvironLitigati on T&E Plan’g TaxTOTALS Logic Solutions, Inc. 401818021015463 ABC Manufacturing 751735228799335 Strategic Systems 99946929291 ZEO Computers 101335444566213 Lawn Games, Inc. 100 First United Bank 22 Totals 22414225266466452091,521

21. Copyright ©, 1996-2009, The WJF Institute. ClientIP & Tech Corp EmployEnvironLitiga tion T&E Plan’g TaxTOTALS Logic Solutions, Inc. 401818021015463 ABC Manufacturing 751735228799335 Strategic Systems 99946929291 ZEO Computers 101335444566213 Lawn Games, Inc. 100 First United Bank 22 Totals 22414225266466452091,521 Flannery LLP Revenue History $000

22. Copyright ©, 1996-2009, The WJF Institute. Client 2007 Revenue2008 Revenue 2009 Proj. Rev. Client’s Legal Budget Our Piece of Their Budget Logic Solutions, Inc. 40046330020,000.023 ABC Manufacturing 30033520010,000.020 Strategic Systems 10029108,000.000 ZEO Computers 10021307,000.000 Lawn Games, Inc. 10100203,000.006 First United Bank 2221,000.002 Totals 9121,36852249,000.001 Flannery LLP Key Client Revenue Analysis $000

23. Copyright ©, 1996-2009, The WJF Institute. Revenue and Market Share of Clients

24. Copyright ©, 1996-2009, The WJF Institute. Key Client Management Opportunities

25. Copyright ©, 1996-2009, The WJF Institute. What is this thing called Client Relationship Management? Managing all of your firm’s contacts and efforts to increase profitable market share within a client

26. Copyright ©, 1996-2009, The WJF Institute. How most firms spend their money Bar activities Public relations and community involvement Written articles and speeches Brochures and newsletters Entertainment Prospective client seminars Branding and advertising

27. Copyright ©, 1996-2009, The WJF Institute. Focus, Focus, Focus most of the resources on the firm’s key clients Face-to-face meetings with clients Ongoing training for lawyers and client-focused teams Client opinion surveys Use RFPs, presentations, proposals and meetings to put your competitors’ business into play Client service training for support staff Leadership training for the team leaders How law firms should spend their marketing resources

28. Copyright ©, 1996-2009, The WJF Institute. Return on investment is measured in dollars, not activities Profit by client Greater use of the firm’s resources Greater client loyalty Know the cost of acquiring the work

29. Copyright ©, 1996-2009, The WJF Institute. Where To Get The Highest ROI For Your Firm’s Marketing and Business Development Efforts % of Firm’s RevenueActions Key Clients (Top 150)80% - 90%Client Teams, Client Team Leaders Technology ROI Analysis Client Opinion Surveys Training, CSIP Industry Conferences Clients Other Than The Top 150 Geographic Teams Practice Groups Individual Efforts 5% - 10%Some Of The Above, Plus Association Memberships Speeches, Articles Small Group Seminars Community Involvement Public Relations New Clients?? %Referrals Reverse Cold Calls, Cold Calls Advertising, Identity Campaigns Industry Groups

30. Copyright ©, 1996-2009, The WJF Institute. Client-Focused Matter(s) Practice Groups Industry Groups Teams Increased Profits From Marketing and Business Development Tactics Marketing / Business Development Coordination / Actions Profits High Low

31. Copyright ©, 1996-2009, The WJF Institute. Your Firm’s Client and Business Development Process Plan Interview Design Solutions Decision Plan, Organize in Teams, Research, Goals, CSIP Styles, Pace Priorities Process Information Perceptions Client Focused Service Improvement Plans Communicate Solutions And Benefits In Presentations, Proposals and Meetings Rapport and Trust Building Build Relationships Transfer Trust Retain Client New Business New Client Process Question Rule:The Successful Firms Will Need To Adopt and Adapt A Firm-Wide Client Development and Relationship Management Process.

32. Copyright ©, 1996-2009, The WJF Institute. 1. Increase client satisfaction and loyalty 2. Increase revenue and profit 3. Protect or expand relationship 4. Increase market share StrengthsWeaknesses Client Perceptions OpportunitiesProblems Enhance or Inhibit Objectives (Created from SWOP) Priority Action Plans WhoWhen H=30 days M=90 days L=120 days NTD Goals

33. Copyright ©, 1996-2009, The WJF Institute. Where To Focus Firm Efforts Steps To Success Building strong relationships, face-to-face Discovering and developing client needs Enhancing business and financial skills Using the WJF Institute CD&RM Process Firm-wide business development approach Trained client-focused teams Technology support for teams Accountability and measurement systems Client interviewing and team management Leading and selecting client teams Increasing profitable market share Specific plans for each opportunity Client, industry and geographic focus Driving client loyalty Increasing the use of more practice areas Client team status reporting systems Evaluate team performance and leadership Evaluate client profitability Change recognition and compensation Financial plans and controls Team Skills Lead & Manage Business Dev. Using Key Client Teams Individual Skills CD&RM Workshop Client-Focused Plan Development CSIP Day Law Firm Management Overview Team Status Report

34. Copyright ©, 1996-2009, The WJF Institute. The WJF Institute Map Firm Management Commitment Target Top 150 Clients Train The Teams Client Service Improvement Plans Manage Process / Knowledge Measure Performance Management Oversight And Team Accountability Reassess Teams / Client Profitability Change Training / Teams / People / Systems / Technology Management Action

35. Copyright ©, 1996-2009, The WJF Institute. Agenda Workshop: Day One Introduction and Framework For The Future The CD&RM Process Overview Conducting Client Needs Interviews Understanding the Client Decision Making Process How To Get Decisions Review and Summary Videos: Day Two Mock Client Simulation Presenting or Proposing Solutions Case Study and Video Interviews 30-Minute One-on-One Video 45-Minute Review Team Presentations: Day Three Case Study Team Presentations 30-Minutes per Team Team Strategy Discussions Follow-Up Plan

36. Copyright ©, 1996-2009, The WJF Institute. What you will need to get started Highly skilled team members Team selection criteria A clear process for creating goals and action plans Roles for all team members Rules for good behavior Reward and recognition system Technology support Clear firm-wide: CD&RM Process Client Service Improvement Planning Process Rule:If firm management does not drive the client focused team effort it will FAIL.

37. Copyright ©, 1996-2009, The WJF Institute. Why teams focused on key clients? “That’s where the easy money is” 80% of the firm’s revenue in the top key clients They are targets for competitors—protect tactics Key tactic by high-profit businesses for decades Leading-edge users of a legal service Require a lot more attention They invest in your firm Fund your “product” development efforts

38. Copyright ©, 1996-2009, The WJF Institute. Why teams focused on key clients? Serve as your best references Drives clients’ use of your firm’s resources more effectively Creates firm-wide client loyalty Neutralizes client hoarding by individuals Reduces impact of partner defections Post-merger or lateral integration as opportunities are at closest point to your high-revenue clients – client teams

39. Copyright ©, 1996-2009, The WJF Institute. Characteristics of a well-run key client program Most lawyers and staff organized in key client teams All practice areas represented in the teams initially Clear planning process in place (CSIP) Measurable goals – increase in profitable market share Costs-benefit analysis of team Cooperation and integration of firm’s resources Reward and recognition of teams and members Management inspection of team performance

40. Copyright ©, 1996-2009, The WJF Institute. What every team member needs to do: client needs assessment interviews Please answer the following questions about each of your client needs assessment interviews: 1.Who were the individuals in the client’s organization that you visited and what information was learned on the “client needs interview”? 2.What new opportunities were discovered in your own practice areas during the client needs interviews? 3.What new opportunities were discovered in practice areas other than your own during the client needs interviews?

41. Copyright ©, 1996-2009, The WJF Institute. What every team member needs to do: client needs assessment interviews 4.What are the plans to following up on these opportunities, especially in new practice areas? 5.What additional support do you need and what is the next milestone? 6.How much time and resources have been spent and what is the likelihood of getting the business? In other words, what is the Return On Investment (ROI)? 7.If you experienced success, what might we (the Firm) learn from your individual success?

42. Copyright ©, 1996-2009, The WJF Institute. Characteristics of dysfunctional client management and business development teams in law firms Failure of the firm’s management to drive results through inspection of team performance No real accountability or avoidance of accountability Lack of commitment from management and team members Fear Absence of trust amongst team members Low or non-existent skills for business development Poor team leadership and followership skills No clear or vague measurements for teams

43. Copyright ©, 1996-2009, The WJF Institute. Characteristics of dysfunctional client management and business development teams in law firms Too much focus on selling vs. client needs No rules and roles for effective team behavior No effective team recognition or rewards system No clear business development account planning methodology Failure to execute and lack of sanctions for poor execution CMO or business development staff not experienced in teams and large key client management Partner paralysis (firm in trouble) No pain (partner complacency)

44. Copyright ©, 1996-2009, The WJF Institute. What and how to report the team progress to firm management Brief description of the goals of the plan Original goals Updated goals Revenue for the team Past Projected Current revenue rate (YTD) Realization

45. Copyright ©, 1996-2009, The WJF Institute. What and how to report (cont’d) Practice group utilization Original usage Current expansion Projected Client’s level of satisfaction with the firm Past Current Continuous improvement plan?

46. Copyright ©, 1996-2009, The WJF Institute. What and how to report (cont’d) Competitive activity Resources needed Team status Next milestone / meeting

47. Copyright ©, 1996-2009, The WJF Institute. Rule: Reward success, reward failure, punish inaction

48. Copyright ©, 1996-2009, The WJF Institute. Practical Ideas on Closing the Knowing / Doing Gap

49. Copyright ©, 1996-2009, The WJF Institute. Practical Ideas Train the members of the team so that they know how to “play the game as a team” as the unskilled will kill the opportunity Create a spreadsheet plotting clients against practice areas, and enter revenues by client for the past several years of your top key clients Create five teams focused on key clients Meet and develop a client specific plan for each team Rate your own and your team’s effectiveness by increases in client loyalty, revenue and additional practice group use

50. Copyright ©, 1996-2009, The WJF Institute. Practical Ideas Use technology to manage and drive team efforts Recognize and reward TEAM efforts and results Use these client-focused teams to integrate laterals, acquisitions and mergers

51. Copyright ©, 1996-2009, The WJF Institute. Please send us your evaluations and comments: William J. Flannery, J.D. The WJF Institute 11044 Research Boulevard Building A, Suite 110 Austin, TX 78759 512-338-1758 Fax 512-219-1200 flannery@wjfinstitute.com www.wjfinstitute.com flannery@wjfinstitute.com www.wjfinstitute.com