is differentiation a white elephant bdl

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The more law firms we work with the more we discuss differentiation. I think it’s fair to say alongside the even more amorphous ‘added value’ it may be the most talked about yet least clearly defined subject linked to business development in law today. OK, firms buy in to it, firms understand the importance of it, firms can see the potential advantages of it, and firms are even willing to spend time, money and resources to find out what theirs is. But what is differentiation really? Well the first question I’d ask is does differentiation actually exist? Can awaydays, round table discussions and externally facilitated fact finding missions really uncover that one silver bullet that - once fired - will raise you into the legal stratosphere, head and shoulders above your competitors? I’d say not. In fact I’d go one step further and say I’m starting to think true differentiation is just a very well-heeled white elephant ... not that I have hard evidence, just an uncomfortable gastric twinge! 22 www.bdlinlaw.com Business Development in Law What Clients Want ISSUE 8 BDL Differentiation has been a hot topic for some time but does it exist? Doug McPherson of Size 105 Boots doesn’t think so. He does however think that there are two workable alternatives that are hugely achievable for any firm.

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Page 1: Is differentiation a white elephant bdl

The more law firms we work withthe more we discuss differentiation.I think it’s fair to say alongside theeven more amorphous ‘added value’it may be the most talked about yetleast clearly defined subject linkedto business development in lawtoday.

OK, firms buy in to it, firms understand the importance of it,firms can see the potential advantagesof it, and firms are even willing tospend time, money and resources tofind out what theirs is. But what isdifferentiation really?

Well the first question I’d ask isdoes differentiation actually exist?Can awaydays, round tablediscussions and externally facilitatedfact finding missions really uncoverthat one silver bullet that - oncefired - will raise you into the legal stratosphere, head and shouldersabove your competitors? I’d saynot. In fact I’d go one step furtherand say I’m starting to think truedifferentiation is just a very well-heeled white elephant ... not that I have hard evidence, just an uncomfortable gastrictwinge!

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Business Development in Law What Clients Want

ISSUE 8 BDL

Differentiation has been a hot topic for some timebut does it exist? Doug McPherson of Size 105Boots doesn’t think so. He does however thinkthat there are two workable alternatives that arehugely achievable for any firm.

Page 2: Is differentiation a white elephant bdl

Yes there are firms who, because of history, staff or sheer hard work (but more likely clever marketing) have established themselves as thego-to firm in a particular niche. While that’s a laudable not to mention eminently achievableobjective, what it’s not is differentiation in thetrue sense. Other firms will still practice thesame areas of law; they’ll just do it without creating the same level of market awareness orwithout the type of profile or celebrity of a MrLoophole or a Mark Stephens.

Other firms boast sector specialisations or full-service coverage or a ‘client comes first’ ethos or the ability to work alongside or as part of yourbusiness but these claims still aren’t unique toany firm. Therefore – by definition – they’re notstrong enough messages to differentiate you from other firms because the messages aren’tDIFFERENT! If you don’t believe me, Googleany one of those types of phrases in invertedcommas and see how many legal websites theyappear on!

And before you think I’m picking on the legalprofession, I’m really not. It’s the same through-out the consultancy world, the publishing world,the retail world ... in fact any world where promotional activity is required. The sad thing is, in the same way as modern music only seemsable to borrow from and re-hash the past, themore websites/brochures/newsletters I read, themore it looks like the same dearth of originalityand reliance upon recycling has infected themajority of law firms.

So what does that leave? In my opinion it gives

firms two options:

1. Increase service levels Do all the things your competitors do but dothem better.

First and foremost you’re paid to provide legaladvice but, if you made a few tweaks, could you provide your clients with more pertinent (i.e. better) and more critical advice more quickly (i.e. better)?

Could you use the knowledge you have in-housemore openly to better educate your clients andgenerally make their lives easier ... without them having to ask first? Could you use yourexperience in a certain sector or with a certaintype of client to assume what they need from you and actually offer it to them before they have to ask - before the probable problemsbecome actual problems? That in itself is trueadded value and sits at the top of the ‘wish lists’ the purchasers of legal services share withus when we interview them on behalf of ourclients.

As one head of legal at a large PLC told me justlast week:

“Law firms think added value is what they giveaway for free. It isn’t. Added value is them understanding my business so they can tell mewhat I need to do before I know I need to thinkabout doing it.”

How do you achieve this state of client-lawyerESP? Simple. You become closer to yourclients, find out about their businesses, spendtime with them on their premises, ring them upbetween matters, and find time to spend withthem socially.

Once you’ve worked out what to offer a client

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Page 3: Is differentiation a white elephant bdl

the next stage is to find out how to deliver it.Who likes email? Who likes letters? Who likesa phone call? Who wants to be told immediatelyeven if it’s Sunday teatime or who will wait until9am on the next working day?

Of equal importance, find out what your clients think about the type of response they get if they call you. Are they met with enthusiasm or ennui? Is the response timeacceptable or could it be improved? Are theytold when you’ll call back and if there’s going tobe a delay, are they told why and how long thatdelay will be?

It is no longer acceptable to serve the clientsaccording to what you’ve always done or worse, according to what suits you depending on what’s on your plate at that time. Your clientsare coveted by other firms and they’re beingapproached by other firms. Yes they have loyaltyto you but service is an emotive subject whenyou’re paying for a service, and one forgottencall or a missed deadline could be the straw thatgives your camel a significant spinal injury.

Without a high volume of (expensive) changesI’m sure there are ways you could become more responsive, more approachable and deliver yourservices in the way your client really wants youto. You could develop delivery and reportingmechanisms that align themselves more closelyto your clients working practices so your relationship supports rather than dictates the waytheir business runs.

If it all sounds like a huge and painful investmentthen lie back and think of the returns. These are changes that will – without expectation - increaseyour client retention and the lifetime value of each client at the same time.

2. Specialise While many firms say they have specialist teamsfor specialist areas, the depth of knowledgebehind those teams is often found lacking.

However being able to demonstrate sectorknowledge and a strong track record in servingsaid sector won’t just win work, it’ll allow you tomaximise the hourly rates you can charge foreach piece of work.

Specialisation also makes marketing easier,cheaper and more effective. If you know which industries you want to work with you can construct very targeted wish lists and useyour knowledge and experience to best effect inyour written material, in your initial meetingsand in subsequent pitch situations. You will becredible and immediately recognised as the bestoption for the client.

Likewise you’ll know which events to target.You’ll know where you can find rooms full ofpotential clients in your sector whether it’s a networking group, a conference, a seminar or a lunch club. Even better, once you can establishyourself in the sector’s open events, you’ll startbuilding up relationships that will get you intothe closed events – those organised privately bythe influential figures in your sector, those ‘in theknow’.

Having access to these audiences will make networking more enjoyable and more fruitful.You will no longer have to skip round the roomtrying to find someone with potential, avoidingthe other solicitors and the person who bored you rigid last month. On average by honing inon recognised industry events you will reduce the likelihood of meeting a client down from50:1 to 3:1.

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Page 4: Is differentiation a white elephant bdl

And if you choose conferences or similar youwill be learning what’s going on in your sectorand that is of just as much value. Clients wantyou to understand their world and what’s shapingit, they want you to be able to call on key facts,quote trends and name drop appropriate industryfigures. It is all knowledge that will not onlyunderline your suitability to take on their work,it’ll also push you way ahead of the competitorswho can only call on their understanding of thelaw to help them market themselves.

My lap-top will soon stop me using these lettersin this order but while I can (!) I want to sayagain that your technical ability is no longerenough. You need to create visibility in thespaces you want to work in then tell your storywell so potential clients can immediately see you are not all smoke and mirrors, that youunderstand your sector and you have a provablesuccess record helping the people in that sector.

Another way of building up that repository ofknowledge is to subscribe to the leading titles in

your chosen sector or a least find the leadingwebsites. Read the news and the articles, asmuch for the language as the content. Mr Cash‘n’ Carry is mentioned elsewhere in this issue but his insistence on paying more for the sameadvice but phrased right is vital to the wholedebate on establishing sector credentials. He spends an extra £150 an hour for the samelegal advice but delivered in the right language,with the right knowledge and punctuated with the right reference points.

And the really good news – if your BD is moretargeted and more effective, you won’t need tospend as much time doing it!

I understand differentiation is an attractive aimbut is it a realistic aim given the time andresource you have available and the increasingcompetition you face? Maybe it’s time to concentrate on increasing the quality of serviceyour clients receive instead. It’s a more attainablegoal and it might just end up being the real difference between you and your competitors.

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Business Development in Law What Clients Want

ISSUE 8 BDL

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