Chicago was fortunate to host the second-annual P3 Conference, which took place June 12-13, 2014 at the Hyatt Chicago Magnificent Mile. As marketers, we have to be nimble and learn to adapt easily. When the P3’s keynote speaker encountered some travel complications, the LMA planning team quickly adapted and pulled together a panel of legal marketers for the opening session. The panelists shared their experiences regarding pricing, project management and process improvement, involving the audience in an interactive learning session.
The panel discussed several issues, including overcoming cultural challenges and developing what profit means to your firm. The legal industry is experiencing a culture shift where firms are managing and delivering against price and moving toward profitability. However, in order to move toward profitability, the question “what does profit mean to your firm?” needs to be addressed. Do avoiding write-offs and developing long-term relationships translate to lower cost of sale, or does it just come down to better pricing? Remember, as we work toward better pricing, processes, and project management, we may get it wrong before we get it right. It becomes about collaboration and learning alongside attorneys so we can give them the confidence to make the investment.
After the general session, attendees had the choice to attend several concurrent breakout sessions over the next day and a half. The following are highlights from some of the sessions:
Jim Hassett, president of LegalBizDev, discussed results from the AmLaw 200 study on profitability, which identified key problems, including clients who demand more value, profitability falling under pressure and the need for firms to act quickly. However, solutions are not necessarily clear, since firms are not certain how to define profit, nor how to align rewards with profitability. Jim said that opinions are strong but evidence is weak about the best approaches to challenges such as project management and knowledge management because the industry keeps changing so rapidly.
Redwood Analytics presented a case study on keeping profit in focus. They have seen general behavioral shifts, including better pricing and matter budgeting, legal project management, client teaming and outsourcing. They recommend firms work toward following the four Ps:
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Preserve the relationship
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Provide value to the customer
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Protect from unexpected twists
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Profit – main focus
Vince Cordo, global director of client value at Reed Smith, LLP, led a panel discussion on client strategy and creating the “win-win.” Vince emphasized the importance of creating value by being transparent, flexible, and collaborating. Overall, he said, we need to get better at managing relationships and having candid conversations with clients.
A panel including Michael Boussy, pricing director at Ropes & Gray; Prasad Kholkute, Pacific revenue management director for United Airlines; and Brian Donlan, senior actuary at Encompass Insurance, discussed lessons in pricing and metrics that we can borrow from other industries. They noted that even in other industries, there are challenges with culture and pricing.
Kris Hesidenz, director of marketing services at Reed Smith, LLP, led a panel on pitch and proposal authorship. He said that debriefs to understand why you won or lost a proposal are one of the most valuable learning tools and should be built in to your business development process. At the start of the proposal process, he said marketers should ask “do we have at least a 50 percent chance of winning?”’ then decide whether to invest time in a response, accordingly.
An idea exchange ice breaker was a great way to share thoughts and opinions among peers.
The information presented was insightful and the networking opportunities highly valuable. The P3 conference provided a good reminder that although we are in the legal industry, it is essential to apply business basics to improve our project management, pricing and process improvement to ultimately increase our firms’ profits.
To view additional presentations from the P3 conference, click here.
Dana Early is a marketing and business development strategist at Marshall, Gerstein & Borun LLP. Dana focuses on managing the firm’s CRM system and assists practice groups with development and implementation of marketing/BD plans, business and client development projects and general marketing support. Prior to joining MGB, she had 10 years of marketing experience within the market research, M&D, and consulting industries.