The Standard in Attorney
Search and Placement
A
Short Guide to
Client
Interaction
for Law Firms
The Standard in Attorney
Search and Placement
Table of Contents
Overview ................................................................................................................................... 1
Issues Faced Between Clients and Their Lawyers ................................................................. 2
Taking Action Based on Client Preferences ............................................................................ 6
Talk and Listen to Your Clients ................................................................................................ 8
The Emphasis on New Clients and Partner Compensation ................................................... 10
Law Firm Client Feedback Strategies ..................................................................................... 15
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Overview
This short guide to client interaction was put together specifically with law firms in mind. It covers
several important aspects of client interaction in law firms, including issues faced between clients
and their lawyers, taking action based on client preferences, how to talk and listen to your clients,
the emphasis on new clients and partner compensation, and client feedback strategies for law
firms. We hope you find this guide a valuable resource as you interact with clients in your law
firm.
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Issues Faced Between Clients and Their Lawyers
The dissonance between what lawyers think they’re selling and what clients want to buy is often
stunning. Nor is the problem limited to law firms dealing with relatively new clients. It’s the most
highly institutionalized relationships between law firms and very large business companies that
are often best characterized as ships passing in the night.
Ad hocism
Clients perceive that law firms are disorganized. Why do they care? Because they believe that
their cases and transactions are not well managed. They may have great confidence in the
lawyering skills of their relationship partners. But these relationship partners too often are seen
as unwilling or incapable of project management—organizing a team of lawyers and paralegals
all of whom understand what needs to be done, and what their respective roles should be.
Instead, clients perceive that their matters languish in the inboxes of their relationship partners
until just before (or —worse—after) the deadline. Then, the bulk of the work is done inefficiently
by the senior partner alone, or delegated by the infamous “dump and run” method on junior
lawyers who know nothing about the client and may not even know enough about the legal issues
involved.
Generationalism
Long-standing institutional relationships between a law firm and a company often lead to
anomalies between the age of the company’s chief legal officer and that of the relationship
partner. For example, I am familiar with one situation where a company recently hired an
extraordinarily energetic, entrepreneurial general counsel in his mid-forties. The relationship
partner of one of its principal outside firms has held his position for 25 years, since he, too, was
in his mid-forties. Unfortunately all around, he is now approximately 65. The general counsel
and the relationship partner have little in common. The former is looking for new approaches,
alternative fee arrangements, and the same level of energy he devotes. Needless to say, he’s not
getting it from the relationship partner.
But the problem isn’t confined to institutional client relationships. I often see law firms failing to
attract the information technology, dot-com startup clients so highly prized these days, because
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the leading partners in corporate finance and other related areas are decades older than, and
cultural light years separated from the high-tech startup client leadership. The same is often
true in older industries as well. Law firms that send older lawyers into financial institutions to
do securitization or even loan documentation often are working alongside corporate officers a
generation younger than they are.
Law firms continue to be relatively hierarchical. Junior associates draft a memo, which then
is reviewed by a more senior associate who may add some footnotes and make certain the
citations are correct, and finally it gets up to the partner. Legal departments tend to be flatter
organizations. In-house lawyers and business managers often want to talk directly to the person
doing the work. In this example, it’s not clear who will have deepest understanding of the issues.
The law firm hierarchy may get in the way of putting the right lawyer in touch with the right person
in the client’s organization.
Cycle time
The business world moves faster and faster. While clients obviously want to keep legal risks to
a minimum, they can’t afford to maintain the languid pace needed by outside lawyers to reduce
the legal risks in a given transaction to zero. There’s a delicate balance between churning out
documents with insufficient regard for protecting one’s client, and stewing over tertiary legal
issues to the point that the transaction itself is put at risk. As one information technology chief
legal officer recently put it, “When you’re in the high-tech industry, you’re moving fast. Getting it
done quickly is better than getting it done perfectly. It takes too long.” The days are gone when
most clients want to waste either the time or the money negotiating the number of commas in a
sentence that go into that legal opinion.
Containing the Legal Function
The legal function of any business is a cost center, not a profit center. This difference is a key
one to which many outside lawyers aren’t sensitive. The job of a good chief legal officer is to
minimize this cost center. In the abstract, the job of law firm senior partners is to maximize the
legal function of each and every client. When a client senses that his outside lawyers are doing
unnecessary work on his behalf, he is justifiably unhappy.
These days, enlightened outside counsel meet with their clients on a regular basis to evaluate
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the work and attempt to determine how to make the workflow more efficient and less costly. The
most enlightened even propose how aspects of their current work could more efficiently be done
in-house. Some suggest how better planning, or variations in the sequencing of outside work
could save time and money.
Outside counsel who propose creative means of containing the legal function make themselves
very popular. There are various ways to do so. Effective compliance programs, and legal
audits are only the most obvious. In addition, we often help find activities in the legal function
that should more appropriately be done elsewhere in the company, or disappeared altogether.
For example, in many businesses, lawyers are called upon to give advice because they are
intelligent, or are good writers, but the work itself is not technically law-related. Well and good to
have lawyers serving as wise counselors on general matters. But there are no free lunches. If the
company’s senior management is willing to pay the extra cost for work done by outside counsel
(or inside counsel for that matter) that could as easily (if not as well) be done by people in
marketing, or advertising, or sales, that’s fine. But once the point is made that the legal function
may be bigger and more costly than necessary, most senior management will prefer to see the
work done elsewhere.
Disappearing legal work is also a means for outside lawyers to ingratiate themselves with clients.
We worked with a company that found, with the help of outside counsel, that for years lawyers
were preparing and filing enormously complex reports with the U.S. Internal Revenue Service but
the IRS neither required nor even read the material. Once the discovery was made, the savings
were enormous.
There may be a virtual industry waiting for outside counsel to assist in the area of contract
management. Traditionally, contracts were assumed to be a part of the legal function. But
technology permits companies to distinguish between the great volume of routine contracts
it must negotiate and administer, and the occasional ones that are either huge or extremely
specialized. The latter obviously require legal expertise, but the former do not, except in an
oversight capacity. Today, companies are interested in finding help in developing their contract
management capabilities. Most would not instantly think of turning to outside counsel, who
are not generally known either for sophisticated management expertise, or for an interest in
minimizing the legal function. But there is no reason why clients would not be enormously
impressed by law firms that developed expertise in contract management.
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Access
Hard as it is to believe, many clients can’t find eir outside lawyers when they need them. They
continue to complain that they give a transaction to counsel and it is as if the matter disappears into
a black hole. If they don’t themselves follow up, they will hear nothing. Phone calls are not promptly
returned, briefings as the matter progresses are not offered, even invoices are frequently delayed.
One general counsel of a bustling technology startup recently said, “I need my outside lawyers to
have their laptops with them so I can send them e-mails at 11 at night and maybe get a response.”
This simple statement suggests several fundamental issues that many outside lawyers have yet
to confront. The first is technology. The world is now fully wired via the Internet. Communications
and data exchange can be accomplished 24 hours a day, seven days a week. But how many law
firms insist that all their lawyers not only use laptops, but also understand their potential and exploit
it? The next issue is access during unconventional hours. Especially when transactions involve
several time zones, there is no such thing as regular business hours. Finally, there’s the need not
only for access but “response.” In earlier eras, lawyers could research and cogitate until they were
wholly confident in their position. No more. If the client is putting the deal together at 11 at night, the
outside lawyer better be prepared to respond.
Relationships
Relationships between outside lawyers and clients mean more than friendship or even service.
Today, businessmen and women expect their lawyers to understand their businesses and to be
available to provide strategic legal counsel based on deep understanding of the business. Today,
one of the principal drivers of the movement toward expanding the use of in-house lawyers is the
ability to align those lawyers with business units and create transparent relationships between
lawyers who fully understand the business issues and the business managers themselves.
How can outside lawyers compete? It requires a different orientation toward clients. If outside
lawyers only involve themselves with their clients when they are asked to act in regard to a
particular transaction, they are not likely to develop three-dimensional business knowledge. It’s
only when lawyers are willing to spend non-chargeable time in the client’s offices, on the factory
floor, and in business meetings that they will develop an intimate understanding of the business.
One chief legal officer has said that she wants her outside lawyers, associates and partners alike,
to be on her company’s website every day, and also to be on the websites of her competitors,
developing a deep understanding of her business and also of her industry.
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Pricing
If I were writing this piece five years ago, pricing would have been the first, perhaps the only
issue worth discussing. In this buoyant economy, however, clients continue to look for value,
but they are also looking for service. Pricing today is merely a component of service. Alternative
pricing arrangements may or may not result in savings to the client. In fact, they may result in
more profit for the law firm. What’s truly important about alternative pricing is that good pricing
proposals require considerable thought about service delivery. They require planning, budgeting,
assembling a consistent team, training that team, and constant communications with the client as
to how well the arrangement is working.
Conclusion
So how do law firms begin to “get it” in their dealings with outside counsel? In a nutshell, the
answer is to put yourself in the position of the client’s chief legal officer, or another businessman
if there is no in-house lawyer. Think of the purchase of legal service as not dissimilar to the
purchase or manufacture of any goods or services. Companies are always compelled to decide
what to “make,” and what to “buy.” Should an automobile company make its own windshield
wipers, or buy from suppliers? The likelihood is that such decisions will be reviewed from time to
time, and circumstances might change. But these days companies base such decisions on what
is in their strategic interests. Outside vendors may have the ability to provide more specialized,
more sophisticated, higher quality goods or services in certain areas. But they must understand
that whatever they are providing must be high quality, high value, and delivered just in time. They
must also understand that they are in a joint venture with their customer or client, and that their
interests must coincide. Rather than ships passing in the night, they must be part of the same
crew on the same vessel, heading towards the same destination.
Taking Action Based on Client Preferences
Way back when, lawyers served as holistic counselors to their clients, offering sage advice in
a host of areas, including those considered outside of the purview of “legal advice.” Today, the
picture is a bit different. Many lawyers are specialists in a particular practice area and advise
their clients in a narrow and specific manner. However, in interviews with hundreds of law firm
clients, it is apparent that clients are seeking an entirely different type of advice. One of the most
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frequently cited characteristics that clients desire in their lawyer is pragmatic, practical business
advice—advice that keeps them on the straight and narrow path legally, but also takes into
account the realities of their particular business, culture, situation, and/or industry. Lawyers who
can reclaim the role of “business counselor” will have a distinct competitive advantage.
Inherent in the approach described above is a deep and thorough knowledge of the client. But,
when presenting this advice to lawyers, the oft-asked question is: “What is the best way to gain
the requisite in-depth knowledge needed to be able to serve as a business counselor?” The
following list describes some things you can do, but beware -- most of this should be done on
your dime, not the client`s—consider it “investment time”:
•
Read, read, read—Read everything you can about your client including things such as
annual reports, company marketing pieces, the company`s Web site, etc. The important
point is—don`t limit your reading to the documents pertaining to the particular case or
transaction at hand.
•
Interview—Spend time interviewing people who serve a key role with your client (e.g.,
department chairs, Board of Directors, CEO, etc.) to learn about their jobs and the direction
and/or challenges the company is facing. A side benefit is that this will help to start
deepening the layers of relationships within the client company.
•
Attend meetings—With your client`s approval, attend internal meetings such as manager`s
or Board meetings (clarify up front if you`re doing this in your capacity as counselor or if it`s
your investment time). Also, participate in regular shareholder conferences and hear what
the analysts are saying about your client.
•
Industry participation—Get involved with associations and groups that service your client`s
industry. Attend conferences, subscribe to publications, and participate in events. Attending
events or conferences with your client is a great way to spend quality time together.
•
Just ask—Finally, ask your clients—let them know of your interest and desire to learn as
much as possible about their business and/or industry, and you will likely get excellent and
worthwhile suggestions.
In conclusion, once you have gained this knowledge, be sure to manage it appropriately—share
what you`ve learned with others in your firm who also work with your client.
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Talk and Listen to Your Clients
Now, more than ever. If your firm has ever considered conducting formal client feedback
interviews, but has been unable to overcome the obstacles to implementing them, now is the
most critical time in recent history to reconsider—there`s no time to waste. The effect of a unique
confluence of events makes this process imperative to ensuring that the firm makes informed
business decisions about its future.
The urgency of this is driven by several factors:
•
The uncertainty about the future demand for professional services firms, law firms included.
Clients are making their own plans in light of the fact that the country has gone to war. They
are planning for worldwide changes that may occur. Is it business as usual or not? Can we
safely work? How much has life—and business—changed as a result of September 11? It is
likely, due to the recent tragic events and our country`s response, that some businesses will
scale back initiatives that drive the need for legal services.
•
Economic uncertainty abounds, with half of the economists forecasting a long hard haul
and the other half a quick turnaround. A recent article in USA Today explained that many
economists are making predictions based on their own anecdotal experiences. One went to
the theater in New York and because it was crowded, predicted a quick recovery. Another
went to an empty amusement park and stayed at an empty hotel, and thus predicted a longer
recession. If they are wandering around in the dark, how are we to figure out what to expect?
•
Recently, numerous studies have been released touting corporate America`s dissatisfaction
with their outside counsel. This is a challenge, but also an opportunity for firms to
distinguish themselves in words and deeds.
•
A new breed of law firms as well as new and aggressive competitors from outside the
legal industry have cropped up. Client feedback is invaluable in determining the creative
strategies necessary for ensuring that the firm’s platform—a composite of its practice mix,
geographic location, and expertise—is viable and enhances its market positioning relative
to all of its competitors.
•
As the end of the year approaches, clients will review their legal services expenditures
for the past year and make plans and budgets for the next year. In itself, this is nothing
unusual. Nevertheless, it takes on a larger significance as it occurs in concert with the other
factors.
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Benefits Abound. With so much uncertainty around us, it is bad business to try to guess what
strategic decisions your clients are making. You must ask your clients, and the best way to do so
in a way that yields meaningful information is through face-to-face interviews. As always, there
are many benefits to be gained from client interviews, including:
•
•
•
•
•
•
•
•
discovering new business or service opportunities;
uncovering problems and concerns;
conveying that the firm truly values the client relationship;
determining client reactions to a new idea or strategy;
learning why clients chose your firm and other law firms they use;
engendering goodwill with clients;
determining client satisfaction; and
educating clients about the firm;
“It really improved our relationships with our clients,” says Aniello Bianco, Managing Director of
Chadbourne & Parke, whose firm recently conducted a series of client interviews.
More than satisfaction. There is a common misconception that the sole purpose of face-toface client interviews is to assess client satisfaction. While they are effective at gauging this
information, if satisfaction is the only area covered in your interviews, then you are missing a
valuable opportunity to learn so much more. With the proper approach, client interviews elicit
information in a host of areas that will allow a firm to appropriately respond and plan to meet
ever-changing client needs. The broad range of issues that should be covered include:
•
•
•
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•
•
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Philosophy and approach to hiring professional service providers
The client`s strategic plans and direction
Assessment of “value drivers”
Price/billing issues
Long-range needs
Use of your competitors
Satisfaction with firm/individuals
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•
•
•
Firm`s strengths, weaknesses, and reputation
Changing client needs/understanding of the full realm of your services
Reaction to marketing approaches and new initiatives
Time and cost. While client interviews can be time-consuming and are not inexpensive, firms
that engage in the process virtually always conclude that they have received a high return on
their investment dollars.
Finally. Who knows what the future holds for your firm or your clients? None of us have an actual
crystal ball, but by engaging in a meaningful dialogue with your clients, you will surely be better
prepared to forecast—and plan for—your future. Get off that fence. Both you and your clients will
benefit significantly by having that dialogue.
The Emphasis on New Clients and Partner Compensation
There are as many variations of partner compensation plans as there are law firms. Most are well
intended and targeted at rewarding those efforts that the firm values, or thinks it should value,
most.
Many types of efforts are required for a law firm to be successful—getting new clients or work,
providing high-quality client service, managing the firm and its practice groups, and developing
new services or products, among others. While the firm needs all of these efforts, very few
partners are capable of performing all of them equally well.
An effective compensation plan requires a delicate structural balance that values and
appropriately rewards all efforts needed by the firm. Such a structure allows each partner to focus
on and contribute her best skills to the best of her abilities. The net result for the firm is a wellrounded collection of contributions that covers all client-related and internal needs. However,
when this equilibrium among rewarded efforts falls out of balance—when one specific effort
becomes synonymous with “contribution” —than some partners are forced to ignore their most
valuable contributive effort(s) to the firm and focus on one that they may be poorly suited to
undertake. As a result, the firm suffers any number of unintended and unwanted consequences.
Origination (bringing new work into the firm) is an important and integral factor in any firm’s
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prosperity and longevity. It is also the one factor most likely to be overemphasized when
remunerating partners.
Getting New Work
For a handful of partners, originating work comes naturally. These “rainmakers” may be wellconnected with the business community, widely recognized as experts in their fields, or just
plain lucky. Whatever the reason, opportunities appear to find them, and they have a seemingly
endless pipeline of opportunities.
For many partners, and, in particular, younger partners, originating clients is a challenging and
sometimes personally daunting task. While their real value to the firm may be as a manager,
thought leader, or technical specialist, such efforts typically are not as highly valued as
originations. Furthermore, origination opportunities for these partners are often not plentiful and
the pressure to create and close new ones is strong. Therefore, success may require the use
of business generation tactics designed to create opportunities that would not exist otherwise
as they compete with the natural rainmakers, and with each other, for new work. Unfortunately,
these tactics may also benefit the individual partner over the firm.
Basic Dimensions
To create a new client opportunity, such tactics typically address one of the three basic
dimensions of management—cost, quality, or time.
•
Cost: When dealing with a cost-conscious potential client, origination-focused partners
typically employ the tactic of discounted billing rates or fixed fees. The firm will benefit, in
theory, by expanding the opportunity into additional work – more volume at the discounted
or fixed rate and/or new work at standard or premium rates—in the future.
•
Quality: In this context, quality does not refer to the legal capabilities of the service
providers, whom we assume to be competent. Rather, quality refers to the nature of the
work itself.
Most large clients have a full spectrum of service needs—from the high-value boardroom-level
work that is entrenched with a few select firms to the lesser value, more fee-sensitive commodity-
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level work that is highly portable. Likewise, law firms should have an understanding of the types
of work that fit their practice.
Portable commodity level work creates opportunities for origination-focused partners who
typically employ one of two tactics—leveraging the ego of the partnership (to add a recognizable
client name to the firm’s client list when the work doesn’t fit the firm’s practice), or reducing
or fixing fees. The firm will benefit, in theory, by developing the initial foot in the door at the
commodity level into the more strategic, less fee-sensitive work.
•
Time: Time is money, for both the client and the law firm. A client that is short on time
creates opportunities for origination-focused partners who typically employ the tactic
of over-committing the firm’s capacity (assuming that the firm is operating at or near
capacity—otherwise, this is a moot point). This tactic involves re-prioritization of existing
work or overextension of resources, thereby risking current client relationships in order
to meet aggressive and possibly unrealistic deadlines. The firm benefits, in theory, by
impressing the client with unusual responsiveness and dedication that is rewarded with an
expansion of the relationship in the future.
From the firm’s perspective, the use of these tactics is generally acceptable as long as they
support the firm’s goals and they have a high likelihood of leading to associated long-term
opportunities. These tactics become highly problematic and risky for the firm, however, when the
individual’s goals are placed ahead of the firm’s because there is little likelihood that the longterm opportunities will develop.
It is easy to oversell the future opportunity of additional or better work. The reality is that
future opportunities rarely occur. Clients tend to lock firms into their relative starting positions.
Therefore, without strong oversight from practice management to evaluate the true future
potential of the opportunity, to determine the type(s) of work to accept, and to monitor the use
of the firm’s resources, the firm may end up with nothing more than a transaction billed at a
discount—and a partner who benefits personally from the origination credit.
Unfortunately, strong oversight from practice management is not prevalent in firms that
overemphasize originations because a) management activities are typically not highly valued;
b) if managers exist, they are influenced by the factors that drive the other counterproductive
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behaviors; c) the big originators typically end up running these firms; and d) there is significant
resistance to practice management from the partners, who don’t want to be hindered by the firm’s
strategy.
An additional problem is that many firms do not know how to properly determine the threshold
of profitability for various types of work. As such, the discounted deal being offered may actually
detract from the firm’s profitability, rather than marginally contribute to it or at least break-even.
Impact on Client Service
Most origination-focused compensation systems include a mechanism or process for allocating
some origination credits to other partners as “compensation” for their investment in an
originator’s client. If this mechanism is perceived as being fair and does not involve difficult
internal negotiations with the originators, then all partners are motivated to work on others’
matters and everyone, including the clients, benefit.
If the mechanism is not perceived as being fair, however, then one of two unintended behaviors
will result. Either the firm will experience resistance from partners toward working on others’
matters because proper credit is not forthcoming, or partners will hoard work without involving
others who may reap too much benefit from their involvement. Both behaviors lead individual
partners to work to their own personal capacity and for their own good rather than working for the
collective good of the partnership.
The hoarding of work involves several troublesome behaviors—each of which is intended to limit
the involvement of other partners. These behaviors include such questionable practices as:
•
•
•
performing work that is the practice specialty of another partner in the firm;
•
resisting practice management—which should discourage all of the preceding practices.
assigning partner-level work to senior associates;
limiting cross-selling opportunities and making the client a personal client rather than
institutionalizing the relationship;
Neither the client nor the firm benefits from such practices—but the sad reality is that the
originating partner can.
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Net Impact to the Firm
The collective impact of a compensation system that overemphasizes originations builds over
time as each symptom develops and then feeds into the next:
•
Evaporation of teamwork—as partners vie for new work against other law firms and each
other while minimizing the sharing of work credits with others, the partnership tends to
devolve into a collection of individual practitioners, thereby reducing the collective strength
of the partnership.
•
Decline in the client base—absent a team environment, the firm loses opportunities to bring
in the solid, large clients who expect to benefit from the full strength of the firm—not just the
individual talent of their relationship partner. Therefore, growth comes from a larger number
of smaller clients who tend to be more fee-sensitive than larger clients.
•
Conflicts may arise as the addition of smaller clients increases the risk that the firm may not
be able to take on a future larger client opportunity, which further locks the client base into
its self-perpetuating decline.
•
Decline in internal development can follow as partners compete for new work, they
increasingly ignore internal investments such as recruiting, training, and mentoring
associates, which fosters a further decline in the firm’s current and future capabilities.
•
Economic erosion can follow from the unintended and unwanted consequences associated
with over-emphasizing originations (e.g., discounted fees for marginal work, more smaller,
fee sensitive-clients, work hoarding, a decline in the competitive capabilities of the firm) is
substantial. Average profits per partner can be reduced 50 percent or more from the firm’s
potential profitability level.
Conclusion
Bringing new high-quality clients to the firm is worthy of significant recognition. Making it the
featured contribution in the reward system for partners, however, can create an unbalanced
environment that has many unwelcome consequences for the firm, forces some partners to use
questionable (from the firm’s perspective) selling tactics to be competitive within the system, and
can ultimately lead the firm into a position of decline from which it cannot recover.
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Can a firm overvalue originations and succeed? Of course, but it is not likely. A small boutique
firm typically includes a collection of specialists with comparable skills and opportunities to
originate. Also, small to mid-sized firms built largely through lateral hiring represents a collection
of lawyers brought in with their own books of business, or originations within the context of the
new firm. These firms typically reach a point where their compensation system limits their further
growth potential, and a new system is required.
Can a firm change its system to a more balanced remuneration system? Of course, and many
have already successfully done so. The partners in these firms appreciate their new, balanced
compensation playing fields and the freedom to focus more on what they do best—which is often
not originating work.
Law Firm Client Feedback Strategies
Obtaining client feedback serves many purposes—from helping firms make decisions based
on fact to testing assumptions for initiatives to providing a mechanism for comparison with
competitors. Most important a feedback program assesses client satisfaction and provides a road
map for improvement.
For client feedback to be a worthwhile endeavor, law firms need to approach it in a strategic
manner. Current scenarios are typically “hit or miss”—dabbling, if you will. Efforts are scattered
and occasional—a survey here, an interview there. Consistency is rare and follow-up, sadly, even
more rare.
What is the solution? Institutionalizing the process. Law firms can learn how to do so by looking
at other industries.
How To Institutionalize
There are a number of ways that a feedback program can be institutionalized:
Written Rules and Guidelines. Don’t leave the choices of when and how feedback will be
obtained to chance or whim. Have written rules and procedures, and mandate the process.
Specify the steps, feedback mechanisms and all details, then implement without exception.
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Brand Your Program. Just as you brand a firm, product or service, brand your feedback
program. Develop core values for the program, identify specific goals, and then develop a
campaign (with collateral materials, logo, tagline, and the like) to communicate this. An excellent
example is the Arthur Andersen “ExCeed” program. This branded program is a cycle with four
phases: (1) understanding the client’s needs and expectations, (2) building the understanding
into their plan of service, (3) continually improving the approach towards that service, (4) and
measuring performance against the plan.
Involve Everyone in the Effort. Train everyone in the firm to be involved in some aspect of
your feedback program. The Ritz-Carlton’s “Guest Recognition Program” shows how effectively
this can be done. In keeping with the Ritz-Carlton “mystique,” guests are not asked for their
preferences. Rather, these are noted as they occur by all employees of the hotel chain.
The employee then writes up a “guest preference tab,” and the information is entered into a
systemwide database.
For example, a guest checks into a Ritz-Carlton in San Francisco and, upon check-in, requests
an “egg crate” to be used under the mattress. Next week this same guest checks into a RitzCarlton in Atlanta. Guess what’s waiting for them under their bed?
This preference was anticipated in Atlanta because the housekeeper in San Francisco who
handled the first request noted the preference and submitted it to the company’s database. This
type of employee participation is considered a normal, expected part of the job.
Do Something with the Results. You would fail in your client-feedback efforts if you obtained
the information but did nothing with it. Yet this is all too often the case with information obtained
during client surveys or interviews. This actually does more harm than good because a false
expectation of positive change was established in the mind of the client when you did the survey.
Often, follow-up does not occur because the person receiving the results either did not like or
did not agree with the feedback. This is very dangerous, and there are ways to prevent this from
happening. For example do not solicit feedback from a client unless you’ve first established hardand-fast rules about who will see the feedback and what steps will next be taken, no matter what
the client says. Also, be sure someone takes responsibility for ensuring that follow-up is handled.
Don’t let it slip through the cracks.
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Determine an “Acceptability” Scale. Before you gather feedback, decide what constitutes
acceptable responses. The tolerance level will have to be decided by each firm, but try to be
tough. A response of satisfactory should never be enough. Instead, it should serve as a catalyst
for a discussion with the client or within the firm about what needs to be done to raise that rating
to the next level and beyond.
Types of Feedback
Law firms can also learn a lot about feedback methodologies from other industries. For example:
Point of Purchase. Marriott hotels use point-of-purchase by having feedback cards throughout
their hotels—e.g. at the front desk, in guest rooms, and in the restaurant. In Atlanta, Hartsfield
Airport has huge sandwich boards throughout each concourse asking travelers to complete a
brief satisfaction survey. Law firms can solicit point-of-purchase feedback, too. A few examples
include reply cards in the lobby or questionnaires included with bills.
During “Prospecting.” When you’re meeting prospective clients, you can also gather feedback.
During a conversation, as a prospect reveals things such as service preferences or industry
issues, take a moment to write these on the back of their business card. Don’t worry about
being obvious—you should be. It’s a compliment to them that you’re considering what they say
important enough to write down. Real estate brokers and other sales professionals utilize this
prospecting technique.
At the Start of the Engagement. When you go to a doctor’s office for the first time, what do
they typically ask you to do? Complete a questionnaire that provides information critical to your
treatment. Similarly, when your firm has new clients, spend some time—preferably face-toface—and ask them for their preferences before you begin “treating” them. If they hate voice mail
or have a specific format preference for their bills, it’s helpful to learn these things up front. Don’t
wait until they are disgruntled to learn the best way to serve them.
At the Conclusion of Matters. Check satisfaction at the conclusion of each matter. This helps
ensure that expectations have been met. In the auto industry, when your car is serviced at the
dealer, it’s common to receive a phone call a few days later to inquire about your satisfaction.
Law firms can and should do the exact same thing.
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Throughout the Relationship. Throughout the course of the relationship, it’s important to
assess satisfaction and keep abreast of changes in the client’s company and industry. This can
be handled by written surveys, but the preferred method is a combination of informal client visits
and more formal face-to-face satisfaction assessments.
At Seminars. Keypad technology allows participants to vote using handheld devices. This
technology is used at many seminars today. It’s relatively easy and inexpensive and provides
a chance to assess demographics of an audience, benchmark best practices and be sure the
seminar is delivering as promised. Law firms are now using this technology, which is prevalent in
many other industries and on game shows.
On-line. One way to make your firm’s web site more dynamic and interactive is to have feedback
mechanisms—questionnaires or surveys—on the site itself. Besides being a way to gather
important information, it publicly affirms your commitment to listening to your audience(s). Visit
Microsoft’s web site and you’ll see many on-line feedback tools.
Delivering exceptional service, meeting the needs of clients and prospects, and developing
innovative products and services can all be accomplished more expediently and appropriately by
a strategic approach to client feedback.
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