One of your lawyers is the main relationship partner for several firm clients. The other day, s/he just announced that s/he is leaving the firm for your competitor across town. What is your firm going to do about it? Are you going to tell the clients that you value their business, that their relationship with your firm is important, and that you have assigned a new relationship partner -- or are you going to let the clients leave and let your departing lawyer contact the clients from his/her new firm?
According to a February 2013 article, “The Lateral Report,” in The American Lawyer, 89 percent of Am Law 200 firms hired at least one lateral partner in 2011. That is potentially a lot of clients walking out your door to a competitor. Will your firm try to save its clients?
When a partner leaves, your firm’s leadership should pull a list of the departing lawyer's clients and grade them.
- Tier 1 – Highly desirable clients – Clients who are "easy" to work with; are not concerned about fees (accept your firm's pricing); pay their bills on time; their work is interesting; the firm has a deep relationship including team members who did not leave with the departing lawyer; there are potential future (profitable) legal needs; the costs of switching are high; and the clients are profitable and are most likely to bring in sustainable work.
- Tier 2 – Desirable clients – Client have most of the Tier 1 client's attributes, but not all.
- Tier 3 – Not target clients – Clients who have a few good characteristics (but not many).
- Tier 4 – Not desirable clients – Clients with unreasonable expectations; are a challenge when paying bills; are not profitable; are not easy to work with; the work is not interesting or in your firm's core area; firm switching costs are low; and there are minimal relationships left at the firm after the lawyer's departure.
Target the Tier 1 and Tier 2 clients. Look at their billings and matters. Research their industries, what their competitors are doing, and their legal needs. Find out these clients’ top business needs and concerns. Arrange for the department head and/or the firm's managing partner to make client visits.
At the client visits ask the following questions:
- How happy are you with our firm and services?
- What can our firm do to increase your satisfaction with our services?
- Do we understand your industry and keep you informed?
- Do we deliver legal advice in terms you understand?
- Does our work meet or exceed your expectations?
- How do you feel about our billing processes, fees, communications and project management?
- What can we do to improve our services?
- Would you recommend our firm to people who need the services we offer?
- If we could not accept the work due to a client conflict, who would you use for the work?
Tell each client that your firm has enjoyed working with them and wants to continue your relationship. Let them know that you have developed a plan based on their needs as you understand them including assigning a new relationship partner. Share the plan with them and ask them if it makes sense. Ask how you can continue building the plan together to best service them. Offer some added-value items, such as free monthly meetings (on the phone with appropriate team members) and free quarterly on-site visits to ensure the relationship is working out and their needs are met. Ask if there is anything else they need to feel comfortable to continue working with your firm and continue your partnership.
The client visits must be customized and well executed. The lawyers must listen to the clients and not be defensive. They must be open to new ideas and be willing to give a little in the short-term (added value services including potential write-offs for client work or meetings) with the goal being a long-term client investment.
Once you have "saved" your client, you need to exceed their expectations and continually ask for feedback. Remember: clients can fire firms at anytime. You do not want to waste your investment in your departing lawyer's clients.
In addition to saving your firm’s clients once your lawyer has left, there are other things that the marketing and business development team should do. For additional tips read the “Lawyer Departure Checklist.”
By: Helena Lawrence, Business Development Manager, Proskauer, for the March/April 2013 Issue of the Capital Ideas Newsletter.