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In case you missed it, the following is an excerpt from an interview I did recently with super rainmaker John C. Yates, partner-in-charge of the technology practice at Morris, Manning & Martin that was featured in the Daily Report and reprised on last Friday’s law.com. The video that accompanies this excerpt is here.
Q: How do you get new clients?
A: I'm reminded of one company that was just an idea in the mind of two entrepreneurs when I met them. They were referred to me by a Boston venture fund, and they wanted to start a technology business immediately. During our initial phone call they outlined their grandiose plans to build a billion-dollar company -- even though they had no technology, employees or money. Given this outrageous billion-dollar goal, my colleague in the room motioned to hang up the phone. I shook my head, muted the phone and said, "Let's stick with 'em -- they're young but maybe they'll make it."
We met with the entrepreneurs several days later and determined they were the ideal client. They fit the target profile for our corporate technology group. They were looking for a firm that could provide value-added legal services, and we emphasized our experience in providing our clients with significant benefits and efficient legal solutions.
Eighteen months later, as a result of a team effort involving our tech, M&A, tax and employment attorneys, our client went from idea to ecstasy -- the company was sold for $3.25 billion. It was a truly miraculous outcome, and it doesn't happen very often. It was particularly rewarding when the client turned to me at the closing and said, "You really helped us get here -- we couldn't have done it without you and your team." I recently visited with the client, who is now a venture capitalist in Silicon Valley. He still recalled the whole experience and was appreciative of the hard work of our team.
Q: Have you ever lost a client?
A: Losing a client is one of the hardest, and possibly one of the most instructive, experiences an attorney can have. It's hard, obviously, because you lose someone that you probably cared for, someone that's generating revenues for you, and someone on your client list.
On the other hand, it can be instructive to honestly ask yourself, "How did this happen?" On a few occasions -- fortunately not many -- I've had to reflect on that question. I've concluded the common thread in losing a client is often that you haven't paid close enough attention to them. It's like any relationship. Problems arise where you don't communicate, you're not in dialogue with the client, and you're not finding out about their problems and concerns. Proper client communication can be very simple. In some instances e-mail communication may work, but in most situations the face-to-face meeting with the client is critical.
When an attorney looks back and says, "How did I miss that opportunity?" or "How did I lose that client?" it usually comes back to the simple fact that you didn't pay close enough attention to the client.
Q: Have you ever fired a client?
A: I have fired a client before. I must confess, it wasn't easy but it needed to be done. In short, we got to the point that we had a difference of opinion and needed to part ways. I recall the setting -- I was in a meeting with one of my colleagues, and he said that he was going to sit right next to me and kick me in case I changed my mind.
It's very difficult to fire a client. However, it's periodically required to do so, sometimes for reasons that we all know can exist in the practice of law. For example, there may be conflicts of interest that arise, payment issues, or the client may be engaged in activities that cause you to be too uncomfortable.
In some instances, quite frankly, the client may not be treating the people on your team respectfully. It's extremely important in business development to have a team orientation if you really want to be successful and grow a practice beyond yourself.
If there's client disrespect, behavior you can't condone, have a heart to heart with the client. If your client won't change that behavior, you're better off without them. Again, at the end of the day, it's the team orientation that will bring about long-term success in business development.
Q: Have you ever turned down a potential new client?
A: Earlier in my career, I thought that every prospect referred to me was the ideal client. Early in every attorney's career there's an enthusiasm and excitement about bringing in a new client, any client. Later in your career, you're often confronted by a prospect that really isn't in your legal "sweet spot" but who wants to retain your services. The temptation to take on new business of any kind is strong.
What I determined very quickly in my career is that every prospect is not an ideal client. The reality is, and this is very hard to do, you have to turn down a lot more than you decide to pursue. I'm not as good at this as I should be.
My clients have taught me a number of lessons about taking on new business. One of the keys is to build a qualified target prospect list and then be very selective about how you spend your time, and more importantly, your money to pursue the targets. There are a lot of prospective clients in the world, but you have to sit back and ask yourself, "Who is that ideal client, and where should I be spending my resources?"
Another consideration is to never burn a bridge. A prospect that may not be a suitable client today may be your most ideal client years from now.
Q: Looking back at losing a piece of business, what are some of the things you would do differently?
A: There's an instructive element to studying the issues surrounding a client you may have lost or a prospect who didn't select your firm.
Every business developer reflects on those situations where you made a presentation you felt was right on, you hit on all cylinders, and you have a solution to all the prospect's legal needs. You walk out of the pitch high-fiving your colleagues. And then you find out the prospect selects another firm.
When this first happened to me, I learned that, even though we may feel positive, there are often extraneous factors that come into play that we have to consider -- things that are, frankly, beyond our control in the face-to-face discussion with the prospect. In some instances, there may be an existing relationship that the prospect has with someone else that you're not aware of; or another firm, director or influencer may be able to exert unique leverage on that prospect to get them to select another law firm.
To address this contingency, research the prospect's material connections with other people in their business and friendship communities. Analyze their strategic partners, trusted advisers and business relationships. Then, let those trusted partners and advisers know that you had a good meeting with the prospect and that you have a real value-added solution to the prospect's legal needs; and ask the trusted partner or adviser to put in the good word for you with the prospect.
The key lessons to be learned are simple ones. Work together as a team to pursue new business. Pay attention to your clients, and listen to them often. And carefully select prospects -- research their relationships and seek referrals from your strategic partners.
Until next time,
Robin
After more than 16 years providing business development coaching and with 40 percent of my practice devoted to coaching law and accounting firm managing partners and other firm leaders, I have found that MPs, OMPs and PTLs need more than a traditional coaching program. They need an approach that is unique to their situation. That is why I am so pleased to introduce new programs designed specifically for them.
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