Associate Programs Feel the Pinch of Law Firm Budget Cuts

"Law Firms Curtail Associate Programs as Economy Slows," is the topic of a 4/14/08 article on page B1 of The Wall Street Journal.

As the economy slows, some firms are trimming expenses in the associate area. Examples include the law firm of Thelen Reid, which recently dismissed 26 associates from its staff of 550 lawyers. The firm also shortened its summer associate program from 8 to 11 weeks. Pillsbury Winthrop, an 800 attorney law firm based in New York, is also giving summer associates two weeks less time (from 12 to 10 weeks). Chicago-based Sonnenschein Nath actually rescinded offer letters to two summer associates and two first-year associates in the Charlotte, NC office.

A bottom line focus is absolutely essential, and cutting expenses is one way to manage personnel costs. A top line emphasis is also essential. More law firms should consider providing their associates with business development training as a means of opening additional avenues for new revenue.

Young lawyers a few years out of law school tend to have a strong electronic network of friends and acquaintances, even if they do spend a lot of hours behind a desk. This Facebook generation can tap into college chums and law school buddies who may be working at global Fortune 500 companies or fast-growing upstarts that need legal service.

Frequently associates simply don't know the basic steps of identifying an ideal client, determining legal needs, talking about possible solutions, or closing a sale. Investing in a few hours of business development training for associates is likely to generate a strong return on investment in the near term.

Now is a good time to get "all hands on deck" in looking for revenue opportunities.

Law Firm Marketing Mistake: Failure to Invite the Connection

Almost every law firm web site we visit has a menu option entitled something like "Practice Areas." Once you click on the link you are presented with anywhere from 5 to 20 different legal practice areas; some even have sub-practice areas.

"So what's wrong with this?," you ask. The answer is that invariably there is NO PERSON TO CONTACT once you get to the practice page of interest. This is not a good law firm business development technique.

If I am a prospective legal client and I want to get information on the Energy Practice in your law firm, who do I call? Most law firm web sites leave me guessing. I can try to call the reception in the main office, at which point I am likely to hear lots of mumbling and/or get transferred around (I speak from experience).

I could also try to find the right contact by searching the "Attorneys" menu option on the law firm's web site, but too often I'm presented with a list of dozens of lawyers with little indication of which one can help me.

Here's the solution: always list the Practice Chair or key contact person (ideally an attorney) for each practice area on the practice page. Provide their direct dial number, email address, and a link to their bio page. This is a very simple step.

Best Practice: Vedder Price does a nice job of introducing different members of the firm. See: http://www.vedderprice.com/index.cfm/fuseaction/about.home/about.cfm

Help your prospects make contact with your attorneys! You might even get some new business or alliance partners this way.

How to Narrow your Legal Practice and Get More Business

I'm back from my blog hiatus after getting my new legal marketing book, "Courting Your Clients: The Essential Guide to Legal Marketing," ready to go to press.

Last week I had the opportunity to attend the very informative business development conference sponsored by the Legal Sales & Service Organization (www.legalsales.org) entitled "Raindance."

Cordell Parvin, of Cordell Parvin LLC and a former partner at Jenkens & Gilchrist, was one of the speakers at the Raindance conference. He told the story of how he created a highly successful legal practice in transportation law by continually narrowing his practice. Gain a deep understanding of the industry issues facing your legal clients, Parvin advises, then create a solutions-based approach that includes your services. Publicize the solution widely through speaking, legal articles, white papers, PR and other outreach efforts. This strategy worked well for Mr. Parvin, who has advised clients on Boston's "big dig," the new Denver airport and other national transportation projects.

What are the pain points in your industry? What steps should your legal clients take proactively to protect their business or family? Give this some serious thought and you are likely to come up with a business development platform that can work for you.

New 2007 Law Firm Business is at your Fingertips

Your greatest opportunity for new law firm business in 2007 is hidden in your existing accounts. New legal business obtained from current or past clients tends to be more profitable, due to a lower cost of acquisition and a higher likelihood of successful completion.

It is actually fairly simple to generate new revenue from current clients by following these five business development steps:

1. Take a client to lunch (off the clock). Invite a high-potential legal client to join you for a meal at a nice local restaurant. Demonstrate your interest in their business or personal challenges, competitive environment and 2007 plans. Listen carefully to determine how your legal expertise can help the client better achieve their goals.

2. Up-sell and cross-sell more law firm services. Many clients may not understand the full range of legal services your firm offers. For example, family law attorneys may also educate clients on wills and estates. If you handle Intellectual Property matters, encourage clients to consider proactive trade secret protection available through your employment law practice.

3. Identify and protect “at risk” accounts. In any book of business, some accounts are in danger of leaving. You can identify these accounts by a decrease in billing patterns or less frequent communication. Take action to prevent these clients from leaving and you will improve your profitability and retention rate.

4. Re-establish inactive accounts. It’s natural that over time some clients drift away. Identify these accounts and contact them to see what happened. Invite former clients to start using your law firm again, or at least to refer others who might use your legal services.

5. Conduct a client satisfaction survey. Ask your clients what you do well and where you need improvement. While this sounds scary, your clients will appreciate your interest and provide some constructive suggestions for your consideration.

Here’s another secret to successful marketing: not every client is a good client. Create an “ideal client profile” and do not accept cases that you know from experience are not right for your firm.