Tuesday, October 28, 2008

Impediments to Business Development

There are many reasons why attorneys may not develop new business. Here are just a few of them:
  1. Managing Partners do not provide clear instructions. Simple. If attorneys are not directed to generate more revenues from current clients or open new accounts, chances are they won't.
  2. Attorneys are not trained in proper business development techniques. Most people take a few lessons from a professional instructor and/or read a few books when they want to learn chess, golf, or cooking. This applies to news business generation as well. Lawyers need a few basic lessons to point them in the right direction.
  3. New business is not measured, meaning there are no consequences if business is not generated. Employees do what you inspect, not what you expect.
  4. New business is not rewarded. Celebrating the successes and punishing the failure definitely has an impact. The right compensation plan will strongly reinforce your intentions.
  5. Internal dissension causes distractions. The more the law firm team is united in its efforts to get more business, the more successful this initiative will be. Furthermore, there should be agreement on the type of business that is sought.
  6. Attorneys are too busy. They may be cranking out 2,000 billable hours per year, but is it on the right account for the best rates? If your firm is busy, this is the perfect opportunity to choose the engagements that are best for you.

If your law firm does not maintain a healthy sales pipeline, it may find itself suddenly at a loss for new revenue as work in process is completed or cases settle. Don't get caught in this situation!

A well organized, strategic business development campaign that sets clear goals and rewards success can have a significant impact on the bottom line.

No comments: