Growth Strategies for the Modern Law Firm

Growth is an imperative for any successful business. Law firms facing rising costs, pricing pressure, and the need to invest in staff, resources, and service delivery are finding that growth is not as easy to achieve as formerly, and that market share must be wrestled from the competition.

Since the economic downturn law firms that once saw growth as easy and inevitable are finding that the only way to achieve this is now to wrest market share from the competition. There is no one "right" way to do this; some firms have opted for a determined policy of buying market share and recruiting lateral talent, while others rely on more organic growth.With contributions from a wide range of thought leaders and industry experts, Growth Strategies for the Modern Law Firm provides advice on a number growth options available, and shares practical guidance designed to help firm leaders to formulate and implement a profitable, sustainable growth strategy.Topics covered include:Aligning strategy, culture, and performance management with a growth agendaUtilizing a key relationship management program to retain and grow clients and referral sourcesImplementing listening programs to better serve clients, and create a platform for differentiation and growthMaking cross-selling a cornerstone of growth strategies and firm cultureCritical success factors that enable lateral hiring to be a key to client growthCreativity and innovations impact on growth strategies for legal departmentsSystematic programs for lawyer business developmentOrganic growth strategies through focusing practice specialtiesHolistic approaches to improving client experience that drives client growthand much more...

Executive summary viiPart 1: Insight and PracticeChapter 1: Aligning strategy, culture, and performance management with a growth agenda . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3By Andrew Hedley, director of Hedley ConsultingThe growth imperative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3Strategic overview – The nature of growth . . . . . . . . . . . . . . . . . . . . . . . . . . 5Exploring strategic options and choices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8Positioning and Ansoff’s generic strategies . . . . . . . . . . . . . . . . . . . . . . . . . 8Client retention and growth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10Sales pursuit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10Pricing strategy and robust financial hygiene . . . . . . . . . . . . . . . . . . . . . . . 11Culture and performance management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12The recipe for growth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13Chapter 2: Designing a key relationship program– Getting started and process overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15By Robert Pay, director of business development (global shared services) at Alvarez & MarsalWhy a key relationship program? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15Preconditions for successful adoption of a KRP..................... 17Getting buy-in for the concept . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17The design process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20Setting the program objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22Relationship program design team . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22Launching the concept . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28Piloting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33Launch . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36Barriers to key relationship programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37Chapter 3: Let your clients be the guide to your strategic success . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45By Susan Pettit, founder and managing director of Client CentralThe problem . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46The guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47The plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49The results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54Chapter 4: Crafting a cross-selling culture shift: An eight-phased approach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57By David H. Freeman, J.D., CEO of the David Freeman Consulting GroupChange the game . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57Cross-serving as a catalyst for change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58The eight phases of a cross-serving culture shift . . . . . . . . . . . . . . . . . . . 59Chapter 5: Lateral hiring can be key to client growth – If you do it right . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67By Ian Turvill, chief marketing officer of Freeborn & Peters LLPCritical success factor 1 – Develop and communicate an explicit strategy for lateral hires . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67Critical success factor 2 – Recognize that successful integration begins long before and extends far after the hire date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68Critical success factor 3 – Apply close scrutiny to performance versus plan and make course corrections over time . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80Chapter 6: Why creativity and innovation are the key to growth strategies for legal departments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81By Deepa Tharmaraj, legal director at Dell IncCreativity and innovation.................................................. 82Why would an in-house legal team need to innovate? . . . . . . . . . . 84How will in-house legal departments innovate? . . . . . . . . . . . . . . . . . . . 87What tools are available to help us unlock the innovativeideas? ............................................................................ 90Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92Part 2: Case StudiesCase study 1: Fast forward – Driving top-line revenue for your law firm . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97By Jill Weber, chief marketing and business development officer at Stinson Leonard StreetAn innovative idea . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98An integrated approach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99The power of first impressions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103The “Valley of Despair” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104A packaged product . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106Case study 2: Stewarts Law’s organic growth strategy . . . . . . . . . . . . . 109By John Cahill, managing partner and co-founder of Stewarts LawAbout Stewarts Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109Our product . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109Our people . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110Our profitability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111Improving product, people, and profitability . . . . . . . . . . . . . . . . . . . . . . . . 113The other stuff . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113The results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114Postscript . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115