your sector-based approach: specificity drives strategy

In today's dynamic legal landscape, staying ahead of the curve is not just about providing top-notch legal services. It's about understanding your clients on a profound level and crafting a strategy that aligns with their needs. The sector-based approach is one such strategy that is gaining traction across the legal industry. But why should law firms consider this approach, and how can they embark on this transformative journey?

Why Should a Firm Consider a Sector-Based Approach?

This is an excellent question and an important one, particularly if law firms are approaching this as a strategic imperative versus a business development or marketing activity. Firms should consider a sector-based approach for three compelling reasons:

1. Client-Centric Focus: First and foremost, a sector-based approach is designed around the client. After all, it's the client companies that make up sectors/industries. So there is a shift in mindset from a firm-focused perspective to a client-centric conversation. It's about answering the question of how a law firm can best support clients in spotting opportunities and addressing pain points.

2. Effective Collaboration: Second, a sector-based approach is an effective collaboration framework. Collaboration is the gateway to higher-value matters, greater client loyalty, and increased firm profits. Fostering collaboration is achieved through a sector-specific strategy, which brings together lawyers from different practices and with different specializations with the sole purpose of helping solve problems for clients in a particular industry.

3. Competitive Advantage: It makes good business sense to understand a client's business, and it can give a law firm a huge competitive edge, particularly those willing to treat it as a strategic imperative. Once sectors, sub-sectors, and key clients within those have been identified, the roadmap for a law firm to target and position itself in front of those ideal audiences becomes all the more clear. Firms that have embraced this approach are consistently among the top-grossing in the world.

The strong "why" behind a sector approach prioritizes clients, brings together lawyer teams to collaboratively solve problems, and gives firms an edge in the marketplace.

How Can Law Firm Leaders Get Started? Where Do They Begin?

Once the "why" is answered, the "how" comes into play. It's critical to do some internal heavy lifting first. For that, we use a Design-Build-Run Framework.

• Design: This phase includes mapping the firm's entire client base to an industry classification system, conducting a SWOT analysis of the firm's sector strengths, and establishing a financial framework for incentives and compensation for industry/sector leaders, dedicated budgets for teams, and KPIs to measure success.

• Build: This involves identifying and appointing team leaders, recruiting working group members with industry expertise, and rolling out a firm-wide communications campaign that clearly articulates the "why" and "how" and offers opportunities for contributions.

• Run: Once the infrastructure is in place, industry teams are empowered and operationalized as functional business units responsible for going to market, driving demand, and delighting clients.

To design, build out, and run a holistic, enterprise-wide sector approach takes time, approximately 9-12 months for the internal infrastructure piece.

How Do You Go-to-Market with a Sector-Specific Strategy?

Once the internal infrastructure has been set up, it's time to go-to-market with a sector-specific strategy. We utilize the segmentation-targeting-positioning (STP) framework as a guide.

• Segment: Analyze which segments to prioritize and focus on, typically 3-5 max. Orrick, Herrington & Sutcliffe LLP's focus on tech, energy/infra, and finance is an excellent example of this approach.

• Target: Edge your investment toward attractive sub-industries within promising sectors. The more granular, the better. Kirkland & Ellis' focus on private equity within the broader financial sector is a successful example.

• Position: After fully understanding your buyers, their position in the industry, and their opportunities and pain points, position your products/services to be accretive to the client's business and solve their problems.

How Do You Measure Success?

There are several quantifiable metrics to gauge success:

• Percentage growth year over year in a particular industry

• Individual client revenue and profitability statistics

• Performance at the client level, such as the number of sustaining and growing clients year over year in a particular industry

• Track the number of cross-selling opportunities that have been realized by the industry program. Measure the percentage of clients who have engaged multiple practice areas within the firm

• Regularly survey clients within the industry program to gauge their satisfaction

• Assess the program's thought leadership recognition within the industry

• Document and share success stories and cases studies from clients within the industry program

Biggest Opportunities and Challenges

The biggest opportunities of implementing a sector-specific strategy include a client-centered focus and the framework it provides for involving specific lawyer teams within a law firm. It also facilitates lateral partner integration and a BD mentoring framework for partner-track counsel.

The biggest challenges include resource allocation and hesitancy to focus on a few sectors and sub-industries within them. But, remember, specificity paves the way for success.

In conclusion, Zig Ziglar said, "Don't become a wandering generality. Be a meaningful specific." Firms should be bold and get specific about sub-industries where they have significant strengths or compelling market opportunities. Specificity sets the #stage for success, stronger client relationships, greater collaboration, and a formidable competitive advantage.

Megan Senese authors article in Bloomberg Law: Win the Tug of War for Law Talent with These Strategies

Brian Carrozza, Courtney Cook Hudson, and Megan Senese say Big Law firms should re-evaluate their firm management and strategy to retain top talent and build a culture of transparency, communication, and collaboration.

Increased competition for shrinking profit margins has only escalated the war for talent. Forty-four percent of lateral partners cite a lack of confidence in firm management and strategy, according to a recent Major, Lindsey & Africa report.

It’s imperative for legal marketing, business development, and other business operations professionals to be equipped with the right strategies, tactics, and tools to integrate new partners and other attorneys.

How can law firms attract, integrate, and retain top talent across all levels while gaining a competitive advantage?

Recruit

The Major, Lindsey & Africa report found a lack of confidence in firm management and strategy to be the number one reason why law firm partners consider leaving their firms. Effective integration of laterals into their new firms was the single best predictor of satisfaction.

Stakeholders should collaborate to craft messaging that speaks to the firm’s differentiators, value propositions, and core principles, emphasizing how a particular attorney or practice fits into the firmwide strategy. They also should explain how the firm allocates resources to support growth, enhance client service, and drive revenue, and why the firm’s culture and reputation are unique.

While an enthusiastic and upbeat tenor is essential, it’s critical that firms not overpromise but rather use the initial opportunity to set a tone and manage expectations.

Throughout the process, openness, honesty, and transparency are essential.

Integrate

To prepare a successful lateral integration plan, it’s important for the new partner’s business development liaison to work from the same foundation of information as the legal recruiting team, which includes the lateral’s resume, lateral partner questionnaire, and offer letter.

Arming business development liaisons with billable hours and origination goals for new lawyers will help position the liaison as a strategic adviser on day one. A liaison’s first meeting with a lateral should include an assessment of immediate needs about their book of business to ensure seamless client service and surface opportunities to expand portable relationships.

Consider why the lateral was hired—their niche expertise, specific client needs, regional presence for example—and make internal introductions accordingly. The business development liaison and the lateral should have incentives to work collaboratively to map out a client development plan, estimate revenue, identify potential service gaps, and support goals with specific strategies and tactics.

Create a written process to ensure consistent lateral experiences. A 12-month integration plan for new lawyers may include:

• Probing questions to ask during each integration session/meeting

• Guidelines for time-boxing goals

• Templates for organizing and prioritizing client outreach

• Business mentoring resources

The business development liaison should provide status updates to firm leadership and other stakeholders after each meeting. The most successful laterals are engaged and actively participate in regular coaching/integration calls.

During these calls, the liaison should have or obtain a grasp on resources provided to support the lateral, satisfaction with the firm, sense of being valued, client growth opportunities, bandwidth and utilization, and cross-selling successes or frustrations. Flagging issues in real time allows liaisons and firm leaders to remove roadblocks.

Retain

The legal landscape is witnessing an all-out battle as firms vie to attract fresh lateral partners and attorneys, simultaneously grappling with retaining their existing talent pool and navigating competing pricing demands. As legal expertise evolves across generations, the playbook for retaining lawyers is transforming.

Delving into the motivations and core values of why a lateral partner is looking for a new opportunity is paramount to pursuing high retention levels. It’s important for the hiring committee and other stakeholders to understand these motivations.

Understandably, many law firms are hyper-focused on onboarding, integrating, and growing relationships with new clients that have ported over with a lateral. But firms also should be thinking about how to integrate laterals into at least a handful of significant existing client relationships.

One of the best ways to ensure lateral longevity is to think of cross-selling as a two-way street. To whom can the new lawyer introduce new colleagues, and vice versa? The idea of cross-selling should be broadened beyond client relationships to include adding the new lawyer to business development initiatives, affinity groups, and client teams without jumping through bureaucratic approval processes. These steps should help new lawyers feel a sense of inclusion.

Gone are the days when law firms could merely rely on their brand reputation to ensure that newly onboarded attorneys would be satisfied. Taking a moment to understand why lawyers are leaving or remaining with their current firms will illuminate the competitive landscape and help build a better lateral program.

The current climate requires a substantial investment of time and resources beyond front-loaded messaging with little impact. Firms need to build a culture of transparency, communication, collaboration, and dedication to turn retention strategies into actions and actions into loyalty.

Click here to read on BloombergLaw.com

Reproduced with permission. Published September 26. Copyright 2023 Bloomberg Industry Group 800-372-1033.

spotlight: Lora Krsulich

stage supports business development from behind the scenes to guide lawyers to help their clients shine.

today's spotlight features Lora Krsulich (Litigation Associate Susman Godfrey LLP). Lora's energetic and empathetic approach shines through in her legal work and with her clients.

we are ecstatic to share Lora's spotlight today.

podcast: megan senese + powerhouse women show

Aliza Freud and SheSpeaks Inc. created a platform with The Powerhouse Women Show for women to talk and share their stories in an authentic way.

Authentic storytelling is a core pillar of how stage works to support our lawyers and legal marketing departments who want to show up differently.

leveraging existing clients for revenue growth

Acquiring new clients is a challenge; the time and investment can be significant.

But here's a game-changer: instead of constantly seeking new business opportunities, why not tap into the goldmine already in your client base?

Start by engaging with your existing clients to discover how you can provide more value. Ask them what challenges they are currently facing or what additional support they might need.

By initiating these open-ended questions, you not only strengthen your existing relationships but uncover your clients' core needs, demonstrating that you care.

Investing in your current clients isn't just about retention; it's about driving growth through understanding and meeting their evolving needs.

read more here

podcast: kathleen hilton + wonder women

remaining open to others in sales and #businessdevelopment is a powerful and essential trait that can make a significant difference in building strong relationships and trust and ultimately driving successful outcomes.

when you are open and genuine with your clients, that builds #trust. when people feel that you are transparent and honest, they are more likely to feel comfortable doing business with you. (how to hack: prioritize those with whom you find an #authentic connection. deprioritize relationships that feel like work.)

being open means actively listening to your client's needs, concerns, and feedback. by truly understanding the client's requirements, you can tailor your approach to meet their specific needs, increasing the chances of closing a deal. (how to hack: embrace the 80/20 rule, avoid anticipatory listening -- especially tough for #lawyers who are trained to problem solve - but do-able!)

being open allows you to connect with your customers on a deeper level. when you show #empathy and understanding, that fosters a sense of connection and rapport. this emotional connection can set you apart from competitors and make customers more inclined to choose you over others. (how to hack: adopt a go-giver mindset; what can you give or share with this person that will help them?)

listen here

Megan Senese + Jennifer Ramsey collaborates with Nexl

Co-founders + principals of stage, Jennifer Ramsey and Megan Senese, joined Nexl’s Chief Growth Officer Ben Chiriboga during Nexl’s OneFirm webinar showcasing the transformative potential of collaboration within law firms.

They discussed the power of collaboration and t and tools necessary to enhance client retention and success in law firms. 

spotlight: Patrick Cusick

every week stage spotlights #lawyers and #legalmarketing professionals as the main characters.

today's spotlight is on Patrick Cusick (Director, Law Firm Services Armanino LLP). Patrick is kind, curious, and wonderful at networking.

we are delighted to share Patrick's spotlight.

Megan Senese authors article in Law360: Perfecting Outreach Cadence Between Lawyers And Clients

Megan Senese authored a Law360 article describing the obstacles that get in the way of creating a regular communication cadence with clients and prospects.

Billable work, mentorship, and myriad other obligations get in the way of creating a regular communication cadence with clients and prospects. Perhaps three months have passed before a lawyer has had the space to reengage with their client.

Once the lawyer is ready to reconnect, panic might set in. The lawyer may be trying to figure out how to reactivate a rapport, thinking about what excuse is needed to reach out, or simply what to say in outreach communication.

This lack of cadence is among the top concerns articulated by lawyers and marketing professionals. Too often, fear and uncertainty drive lawyers into the safety of stasis and silence — avoiding non-matter-centric communication. Let's break down the concerns.

• What do I say?

• It will take too much time.

• What if the client doesn't respond? Rejection!

• What if I am bothering them?

• I want to reach out, but I need to figure out where to start.

• What if I say something wrong?

• What if I have nothing impactful or insightful to say?

Here are some potential approaches to reaching out to a dormant relationship.

Connect With Empathy

The new equation to building business is relationships plus empathy. The view of business relationships between lawyers and their clients is evolving. Moving out of transactional modality and into personal relationships by being human, i.e., professional, personal and friendly, is one way to gain a competitive edge. One way to connect with empathy is to determine a contact's communication style and preferred way to receive information, from formal legal opinions to informal check-in notes. Leveraging this understanding will reduce uncertainty, since the lawyer will know for sure whether their client likes to receive client alerts or loves to be entertained. It is best practice to ask client contacts about their communication and information preferences and not make assumptions. While most general counsel appreciate receiving notes, invitations and industry-specific articles tailored to their needs, others might not. For example, a general counsel might only want to play golf with their outside firms, while another may favor involvement in their preferred charitable organization, and yet another might delight in having their family invited to activities. Clients want commercial advice Megan Senese from outside counsel, yet prefer different activities for relationship building.

Once the client's preferences are determined, a law firm marketing professional can collaborate and draft outreach templates as a starting point for lawyers to customize further. Using a template addresses the lack of time that lawyers often encounter as an obstacle for reaching out.

Tailoring the note demonstrates that one genuinely cares about the client's well-being and values the business relationship by creating a personal connection, remembering family members' names, sending a note or celebrating their successes.

Showing empathy and understanding fosters a sense of connection and a bond with that client. Forging the emotional connection will set the lawyer apart from competing law firms and make clients more inclined to choose that lawyer over others.

At this three-month inflection point, the outreach is about personally checking in with the client and demonstrating that the lawyer understands the challenges and demands the client may have faced during the past three months.

It is less about what the client can do for the lawyer and all about how the lawyer can help that client. It is about becoming a resource for people while also learning about them. When contacting a client, starting with a personal touch can be helpful.

The note could mention how long it has been since the last connection. It might share a personal anecdote, and invite the client to join the lawyer in an activity that the client enjoys. Alternatively, the note can be as simple as a friendly check-in on the person's wellbeing.

Consistency Is Key

After making the first reconnection outreach, consider a mindset shift toward building long-term relationships in each meeting and interaction instead of thinking there is only one opportunity for the deal or transaction.

An empathetic and systematic approach to building relationships reduces the pressure and stress around winning work. Create a streamlined schedule or simple chart at the onset for reaching out to contacts. Initially, this might look like setting up calendar reminders to reach out to specific contacts or setting up news alerts to track clients' company news. Many relationship management systems can also aid with automating but also pay attention to the power of a handwritten note and the human touch. As each relationship builds, outreach and communication will become more organic and free-flowing. Maintaining a consistent communication cadence is crucial to building solid client relationships.

After the initial outreach, following up and continuing to communicate with compassion is essential. When clients are shown that their business is truly valued by their lawyer and that their success is a top priority, a stronger and more meaningful connection is established and can lead to greater loyalty and long-term partnerships. A communication breakdown can occur when follow-up plans are not meaningful or tailored, resulting in dormant and stale relationships.

Staying in touch and providing relevant updates is meaningful to build trust and ensure clients feel supported throughout their customer journey. Demonstrating a deep investment in clients as individuals can reduce the risk of them choosing a competitor for important matters.

Actively Listen

Lawyers should arrive at client conversations prepared and informed about the contact, the client's activities, and their industry's opportunities and challenges. Preparation enables the lawyer to ask informed questions. Listen when reconnecting with the client, prospect or contact.

Be curious, open and engaged. Asking "How might I help?" is a beautifully open-ended and empathetic question. Then listen and immerse in the conversation. Avoid predictive listening — meaning do not jump to solutions or problem-solving on the spot in response to what the person is sharing.

Be Authentic

Tell stories to connect and establish an understanding, credibility, and trust with your clients. Show the value you can bring to the people you interact with daily. Authenticity draws people in as we emerge from pandemic life and search for something real. How to be authentic is the parallel question. Not necessarily because people do not know how to be themselves but because they have been trained to be professional, typically a specific professional archetype. Often, how people define the term professional does not equal authenticity, but that is now changing to allow space for clients and lawyers to be themselves.

The lawyer can rebuild and strengthen their client relationship by employing empathy in reconnection. When demonstrating empathy toward a client, the lawyer shows the client they are valued and that there is a commitment to their success and well-being.

Click here to read on Law360.com

Reproduced with permission. Published August 30. Copyright 2023 Law360