Auditing Law Firm Relationships

Financial auditing, however, has little, if any value in terms of actually managing performance. It is essentially a “trailing” activity: It confirms post hoc what has occurred, usually too late to influence the activities that led to the outcome. Further, it indicates what has occurred but provides little insight into why it happened.

Most businesses find it far more valuable to have “leading” indicators of performance that can provide insight into the “whys.” And client research is a valuable tool that when used alongside other internally focused methods, helps assess the effectiveness of a firm’s operations and identifies emerging issues for attention.

Still, client research is used infrequently by law firms as a whole: We are regularly surprised to find even very sizeable firms which have never conducted independent research on their own client base. We know of few that use client research in a systematic way of complementing other management tools to flag emerging opportunities or problems, and to monitor the health of one of the most vital assets of their business, client relationships. This is a serious omission.

In essence, client research is simply a structured approach to finding out from clients how adequately the firm currently meets their needs and expectations, how well it performs on these criteria compared to competitors, how clients see their needs developing in the future, and what the firm needs to do to strengthen its position.

Questions like these are raised in many of the interactions between a law firm and its clients to some extent or another. By and large, however, the focus of such interactions is on completing the current matter and, therefore, tends to be a task-oriented, shorter-term focus. In addition, partners may have little time or inclination to focus on higher-level issues. Even when they do receive valuable input from clients it is often somewhat anecdotal (Is this a one-time occurrence or an indicator of an ongoing trend?) and there may be no structured way of sharing this information with a wider group of partners.

Human nature can also conspire against obtaining more critical information: A client may feel reluctant to be fully frank in giving feedback face-to-face to a partner (who may, after all, have become a friend) and even if such criticism is given unambiguously, the partner may not “hear” what is being said. He may become defensive in reflecting on it, and convince himself that it is invalid, or addressed at his firm rather than himself, or is the client`s fault anyway.

Clients’ views are always extremely important, but few firms have any formal, structured process for capturing their perspective more broadly to ensure that a firm will continue to meet the needs and expectations of its clients better than competing practices.

So why don’t firms conduct client research more systemically?

There does seem to be a good deal of misunderstanding about the value of client research within law firms. A widespread view is that it is some kind of “extra” since no external research firm can understand the partners’ clients better than the partners do themselves. Some of the arguments we hear against conducting client research include:

• “Our partners know the market very well; they certainly know our clients better than anyone. They talk with them and do business with them regularly, and they naturally act on this knowledge. How can researchers tell us anything we don’t know already?”
• “Conducting research via questionnaires or interviews will upset our clients. They’ll see it as a nuisance and an intrusion.”
• “It will reflect badly on us. Our clients will be surprised that we’ve called people in to do this work. They’ll wonder what is wrong.”
• “We don’t need to spend more time finding out about our clients. It`s our non-clients we should research. We would like to know why they don’t hire us.”

All these types of objections assume that a firm already has the information it needs, or that the knowledge each individual partner and associate has already is sufficient to ensure that the relationships are optimally managed.
Our experience contradicts this benign view of the world. We find that even in extremely well-run firms with an excellent team of partners who share a strong sense of client care in service management and delivery, a formal client research program will produce new insights and increase everyone’s sensitivity to the key concerns of clients. Where the firm or practice group is less well-run, the findings can be a life-saver.

Types of Research

There are several types of research programs which may be suitable for understanding client perspectives. Three of the more commonly used

• Market or sector buyer studies, which aim at researching representative samples of the market including non-clients as well as clients;
• Client-focused usage and attitude studies, which concentrate on a selection of clients (and often referrers, too) to explore how they perceive a particular firm`s image, current capabilities and potential in relation to their own needs and wants, and in comparison with competitor firms; and
• Client satisfaction surveys, which are usually periodic studies with the specific aim of monitoring clients’ service expectations and their level of satisfaction with the firm`s service performance, and which supplement the normal regular interaction between a client and its service partner.

The market-level studies are often syndicated among a number of unidentified participating firms in order to share costs and to benefit from a wide sample of buyers, usually several dozen or more. The scale of the study means respondents must give answers within a strongly structured questionnaire, mostly pre-coded for analysis. This quantitative approach is useful for capturing general buyer perceptions of the market, but tends to gloss over or submerge the particular views of any one set of clients.

In contrast, participants in usage and attitude studies will include a significant focus on actual clients, while client satisfaction studies are drawn only from a firm’s own client base.

Both can usually achieve virtually 100-percent response rate if a partner who is well known to the client makes the initial contact and the study is seen as a serious contribution to enhancing service performance. The use of mailed or e-mailed survey questionnaires is widespread, but can be perceived as trivializing the assessment process, particularly when they adopt a “tick box” approach like those of hotel and airline companies.

Both usage and attitude studies and client satisfaction studies can include some quantitative rating scales to compare a client’s experience of service performance with the expectations they hold across a range of relevant criteria, or with their experience of service provided by key competitors.

Such criteria might fall under several headings, such as understanding of the client’s business, quality of working relationships, and service delivery characteristics, among other things. The focus of such studies will be on the client’s actual experience over the past one or two years, or after the completion of a major transaction.

Client satisfaction studies should follow some regular cycle of assessment, with the firm’s most important clients being surveyed most often and a sample of less vital clients surveyed on a recurring, rolling basis.

Partners need a clear understanding of how clients perceive the firm. Such an understanding can inform decisions about how partners should be developing the firm and its services; identify areas in which it is currently failing to deliver; identify areas in which it is vulnerable to losing clients to competitors, and enable partners to begin to shape the firm to meet clients’ future needs.

Conclusion

The feedback process requires skilled management if partners are to receive the findings in a constructive way, even if most of them readily accept that “the voice of the client” demands attention. The quality of the information must be high enough and the messages clear enough that even uncomfortable feedback is accepted and acted upon.
 

Interested in Learning More About Legal Hiring? Read the Definitive Guide: How to Hire a Legal Recruiter for Your Law Firm: How Law Firms Recruit Attorneys Using Legal Recruiters

About Harrison Barnes

Harrison Barnes is a prominent figure in the legal placement industry, known for his expertise in attorney placements and his extensive knowledge of the legal profession.

With over 25 years of experience, he has established himself as a leading voice in the field and has helped thousands of lawyers and law students find their ideal career paths.

Barnes is a former federal law clerk and associate at Quinn Emanuel and a graduate of the University of Chicago College and the University of Virginia Law School. He was a Rhodes Scholar Finalist at the University of Chicago and a member of the University of Virginia Law Review. Early in his legal career, he enrolled in Stanford Business School but dropped out because he missed legal recruiting too much.

Barnes' approach to the legal industry is rooted in his commitment to helping lawyers achieve their full potential. He believes that the key to success in the legal profession is to be proactive, persistent, and disciplined in one's approach to work and life. He encourages lawyers to take ownership of their careers and to focus on developing their skills and expertise in a way that aligns with their passions and interests.

One of how Barnes provides support to lawyers is through his writing. On his blog, HarrisonBarnes.com, and BCGSearch.com, he regularly shares his insights and advice on a range of topics related to the legal profession. Through his writing, he aims to empower lawyers to control their careers and make informed decisions about their professional development.

One of Barnes's fundamental philosophies in his writing is the importance of networking. He believes that networking is a critical component of career success and that it is essential for lawyers to establish relationships with others in their field. He encourages lawyers to attend events, join organizations, and connect with others in the legal community to build their professional networks.

Another central theme in Barnes' writing is the importance of personal and professional development. He believes that lawyers should continuously strive to improve themselves and develop their skills to succeed in their careers. He encourages lawyers to pursue ongoing education and training actively, read widely, and seek new opportunities for growth and development.

In addition to his work in the legal industry, Barnes is also a fitness and lifestyle enthusiast. He sees fitness and wellness as integral to his personal and professional development and encourages others to adopt a similar mindset. He starts his day at 4:00 am and dedicates several daily hours to running, weightlifting, and pursuing spiritual disciplines.

Finally, Barnes is a strong advocate for community service and giving back. He volunteers for the University of Chicago, where he is the former area chair of Los Angeles for the University of Chicago Admissions Office. He also serves as the President of the Young Presidents Organization's Century City Los Angeles Chapter, where he works to support and connect young business leaders.

In conclusion, Harrison Barnes is a visionary legal industry leader committed to helping lawyers achieve their full potential. Through his work at BCG Attorney Search, writing, and community involvement, he empowers lawyers to take control of their careers, develop their skills continuously, and lead fulfilling and successful lives. His philosophy of being proactive, persistent, and disciplined, combined with his focus on personal and professional development, makes him a valuable resource for anyone looking to succeed in the legal profession.

About BCG Attorney Search

BCG Attorney Search matches attorneys and law firms with unparalleled expertise and drive, while achieving results. Known globally for its success in locating and placing attorneys in law firms of all sizes, BCG Attorney Search has placed thousands of attorneys in law firms in thousands of different law firms around the country. Unlike other legal placement firms, BCG Attorney Search brings massive resources of over 150 employees to its placement efforts locating positions and opportunities its competitors simply cannot. Every legal recruiter at BCG Attorney Search is a former successful attorney who attended a top law school, worked in top law firms and brought massive drive and commitment to their work. BCG Attorney Search legal recruiters take your legal career seriously and understand attorneys. For more information, please visit www.BCGSearch.com.