Law Firm Business Development: The Process by Ellen Sefton
- Tree of Knowledge Research
- Aug 15, 2014
- 5 min read
In the 1997 movie, The Rainmaker, Danny DeVito plays Deck Shiffler, a law school graduate who fails the bar 6 times and now works as a slightly unscrupulous insurance assessor. Shiffler says to Rudy Baylor, a newly minted lawyer played by Matt Damon, “You know what a Rainmaker is kid? The bucks are gonna be falling from the sky.” We know it just does not happen like that for most of us.
Some practicing lawyers believe marketing professional services is improper or that only those with outgoing and charismatic personalities will become successful rainmakers. These beliefs are self-limiting, defining “rainmaking” with very narrow terms. If we change the language we use to describe client development from “rainmaking/marketing” to “business development”, we also change the paradigm. The model adjusts from glad-handing to something that is structured, planned, and implemented with intention.
Successful business development requires a disciplined approach that begins with a formal Plan. Creating an effective Plan usually requires buy in from the top. Practice group and individual Plans are most effective if they cascade from the firm’s overall Plan, but you can still create and implement a successful Plan even if your firm is highly decentralized and offers limited support.
What are the steps?
Step #1: Establish the Team responsible for creating and implementing a successful Plan:
Create a firm culture that positions business development as an important priority in which everyone is a stakeholder, not just the lawyers.
Determine if the firm has adequate manpower with the required experience to successfully write and implement a Plan. Existing lawyers and staff rarely have the know-how or time to accomplish the job. As a result, firms often outsource the development of a Plan without regard for its implementation. Paying a consultant to develop a Plan without considering the manner in which the Plan will be employed makes little sense.
Involve the entire Team (partners, associates, staff and consultants) in the Plan’s development and implementation. This is a FABULOUS opportunity to turn all Team members into stakeholders. Deter-mine how the Team will be rewarded for realizing its Goals.
Step #2: Create a Plan using the following process:
Define your Objective. An Objective is one sentence that explains the main purpose for creating the Plan. It should be quantitative and include both short-term (1 year) and long-term (5 year) targets.
Determine your Goals. Goals explain what you hope to accomplish with the Plan over the next year. They are most often functional categories (e.g. build an infrastructure that supports the development and production of new business) and not quantitative. A Plan should be limited to 4—6 Goals.
Establish the broad Strategies required to achieve your Goals. Strategies are big-picture actions (e.g. identify and establish contractual relationships with at least 2 experienced lawyers who can independently execute transactions on an as- needed basis freeing up the managing partners’ time to implement business development activities). Identifying 2—4 Strategies for each Goal is important.
Create the distinct Tactics necessary to achieve your Strategies. Think of Tactics as achievable clear-cut steps (e.g. write a job posting for an experienced contract transactional lawyer). Every Strategy should have a minimum of 2 Tactics sup-porting it, but the number in excess of 2 should not be limited. Each Tactic should track projected costs and target start and completion dates.
Support Tactics with Research that includes developing dossiers on existing and potential clients; conducting statistical analysis of market and industry trends; identifying opportunities to network; determining and analyzing the competition; assessing changes in the law or pending legislation; uncovering unmet needs in the marketplace; etc.
Use on-going Process Management to effectively implement the Plan. Even the best Plan will fall short if not managed and modified throughout its duration. Factors such as changes in the marketplace, work and personal demands on the lawyers, changes in manpower or the practice, discovery of new opportunities, etc. influence the initial Plan and must be accounted for during its on-going implementation.
Step #3: The following steps should be considered during Process Management:
Assign someone to oversee assignments and move the Team forward in executing the Plan. If the firm does not have the manpower to assign someone internally, consider hiring a consultant to oversee Process Management.
Meet with the Team monthly through the duration of the Plan to review accomplishments, discuss new and missed opportunities, modify Tactics, and assess progress. Financial targets and the completion of assigned Tactics should be re-viewed during the monthly meeting.
Determine if the focus of the Plan should be modified due to market conditions, changes in the practice, manpower needs, etc. Although successful Plans should be fluid, it is important to stay focused on the over-riding Objective and only modify Tactics that will not ultimately affect the bottom line negatively.
Conduct separate meetings with stakeholders to discuss the progress each is making implementing their assignments. Discuss challenges, new opportunities, and modify Tactics as needed. Any adjustment of Tactics should be discussed with the Team and then documented in the Plan.
At the end of the Plan’s allocated timeframe, a final meeting should be conducted with all stakeholders. This is a time to determine if the Plan achieved its Objective and Goals. The Team must assess what it did well and where there might be future opportunities to do things better. The success of the Team will ultimately be measured quantitatively in new revenue brought into the firm or assignments met.
Creating and implementing a Business Development Plan might seem like a huge undertaking, requiring too much of your valuable time; however, the thoughtful development and execution of a Business Development Plan can focus “rainmaking” where it has the largest impact, improve service to existing clients, increase revenue from new business, and result in a collaborative and engaged Team.
The “bucks” may not magically “fall from the sky,” but you will be able to trust your ability to consistently generate business and grow your practice.
About Ellen Sefton:
For over 20 years, Ellen has worked as a director of business development in national and regional law firms, a strategy consultant/coach, and an administrator in law schools and colleges. Her law firm clients range in size from solo practitioners to firms with over 1,000 attorneys in multiple offices throughout the United States and Europe. Ellen can bring to your organization or practice a successful track record creating and implementing innovative programs that generate revenue, exceed targeted outcomes, while supporting your larger mission and values.
To contact Ellen about creating a Business Development Plan tailored to your firm’s unique qualities and objectives call or email:
(904) 248-9268
ellensefton@outlook.com
