What are the keys to getting value out of client planning?

Like most things in life, the real challenge in account planning is not WHAT to do but HOW to do it.

Results are generated through client planning by understanding circumstances and building and executing strategies. The HOW of client planning depends on solid intelligence gathering, careful analysis of the information, and well intentioned, well executed action.

Information gathering and validation

The phrase “garbage in garbage out” definitely applies to client planning. Before analysis and execution begin, the client team must capture and validate the following information:

• Client strategy, objectives, plans
• 1,2,3 years out
• How does their business model work?
• Do they plan to expand to new locations?
• Are they developing any new products / services?
• How does R&D fit into their plans?
• What is happening in their industry and with their primary competitors?
• Who are their key customers?
• What does their financial future look?
• What type of employee relations concerns do they have?
• What are their top three priorities right now? Why?
• How is their legal department organized?
• How do they use outside counsel? How will that change over time?
• Who are the key stakeholders for legal services?
• How do they make decisions?
• How profitable is our relationship with this client?

Information gathering must also focus on how the client views the relationship with your firm. Client satisfaction surveys are efficient tools for gathering this information.

Besides using formal tools like surveys, face-to-face conversations with key client stakeholders are a must. These conversations can be used to validate what you know and what ideas you may have moving forward. Senior partners need to structure conversations with questions such as

• How would you describe the relationship between our firm and your company?
• What can we do to become more of a trusted advisor?
• How can we add more value to your company?
• What would an ideal relationship look like?
• How would you recommend we tweak our approach / work style to better fir your needs?
• We see this (describe scenario) as an opportunity / problem for your firm. Do you agree?
• We see an opportunity to serve you in the following way (describe idea). What is your reaction to that?

Executed Action

Many times, the information gathering / validation step results in a conclusion that opportunity does not exist to save or grow the client. A team that reaches this conclusion in a client planning exercise should be congratulated. Law firms do not have unlimited resources. Precise criteria should be in place to select with clients move into execution stage. A benchmark to use for client planning selection could include:

• Opportunity to become trusted advisor for the Client
• Relationships with key decision stakeholders in place today or can be developed
• Your firm has a unique value proposition for this particular client
• The Client has reasonable expectations
• Fee structure indicates relationship will be profitable
• Client use of legal services will continue to be significant
• Client will remain a viable entity

Spending time / resources in places where the return will be minimal is a sure way to marginalize a client planning program.

For Client's that pass the selection criteria, the firm team must document and make public a SPECIFIC set of statements describing what will be accomplished:

• We want to be viewed as a trusted advisor by this date.
• We can do this because we have access to .................... and can help improve their business in the following manner...............................
• The specific opportunities we will pursue are ................................
• We will make investments (relationship building dinners, free work, etc) in the following areas...................................
• We will not invest in the following areas.................. because ........................
• Our vision for this client is the following…...............
• Our 12 month revenue target is .................... and our 3 month revenue target is..................................
• Our actions this month include..............................

Capturing a vision that includes specific objectives will make the client planning exercise more actionable. All client team members should use this document to guide activity and measure progress.

Client planning execution is a fluid activity. Team communication should happen frequently. Weekly check points to monitor progress should be the norm. Quarterly formal reviews validating intelligence will help adjust objectives recalibrate the activity.

Actions for Senior Firm Leadership

Client planning, done properly, can ensure the long term viability of your firm. Do a quick check point of current efforts to determine effectives:

• What intelligence do we gather BEFORE we develop plans?
• How do we validate this intelligence?
• How do we select which clients to focus on?
• How do we document our specific client objectives and action plans?
• How do we measure success?

Making the commitment to do client planning the right way will help avoid unpleasant surprises – and keep your Firm on the path to profitability.

Back to: Firm Leadership's Role in Retaining and Growing Clients

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