Zimmermann discussed this volatile new marketplace at the monthly educational program of the Rocky Mountain Chapter of the Legal Marketing Association.
Zimmermann is a general counsel, former CEO and man- agement consultant with Zeughauser Group (
www.con-
sultzg.com), a leading legal industry consultancy.
“2008 and 2009 were challenging years for law firms,” said Zimmermann. “During the first half of 2010, there was reason for optimism for many firms – but demand has been unsteady at best, and performance across the industry continues to be mixed.
“In this highly competitive market, where general coun- sel have more choices and are less loyal than ever before, lawyers and law firms must do everything it takes to retain and expand their existing client relationships – especially by investing wisely in client-care programs,” said Zimmer- mann.
“One of the best ways to try to ‘bullet proof’ clients (and expand your relationships with them) is to invest in an ongoing and systematic program of client service inter- views,” said Zimmermann.
“Marketing professionals understand the value of CSIs, but many partners do not,” said Zimmermann. “Longstand- ing ‘disconnects’ between client and lawyer expectations have been amplified by the market challenges facing the legal industry. CSIs are one of the most effective ways to discover (and remedy) these disconnects -- before it’s too
“According to the Association of Corporate Coun- sel, the single most important thing a law firm can do is to provide alternative fees and value-based billing options,” said Zimmermann.
“Clients like to see retainers, for example, because this arrangement offers predictable cost from month to month. Hourly rates will endure for bet-the-com- pany work and more specialized, high-value work, but general counsel increasingly want to see alter- native fee arrangements proposed for commodity work. They might not always opt for alternative fees, but they like to see them offered.
When persuading partners, show – don’t tell
Law firm partners resist CSIs for many reasons. In particular, they erroneously think that they know everything there is to know about the client, they are in denial (they don’t want to know if a client is unhappy) or they don’t want others in the firm to now that the client is dissatisfied.
“It is important to position CSIs correctly,” said Zimmermann. “Do not position them as a ‘check- up’ or ‘report card’ on any given lawyer. Rather, position them as a way to provide better service, acquire intelligence on competitors and find new work.
“In Zeughauser Group’s experience, general
“General Counsel have more choices and are less loyal than ever before.”
General counsel are from Mars; lawyers are from la-la land
Not surprisingly in this economy, cost has dominated the conversation between legal departments and law firms. According to Inside Counsel magazine, 46 percent of general counsel agree that reducing costs is essential to improving law firm relationships. Only eight percent of law firms see this issue as important.
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general counsel like to participate and find CSIs very therapeutic,” said Zimmermann. “At the end of an interview, we often hear ‘I hope you will be coming back to do this again next year.’”
The CSI should not be conducted by the relationship partner. “The client will not be as candid with this person,” said Zimmermann. “CSIs can be conducted by the firm’s chairman or a senior partner – someone whose attention will ‘honor’ the client and whose
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