Measuring the ROI of Business Development — Even if it’s Possible, Does Anyone Care? Timothy B. Corcoran Corcoran Cons

1. Measuring the ROI of Business Development — Even if it’s Possible, Does Anyone Care? Timothy B. Corcoran Corcoran Consulting Group August 7, 2013

2. Who am I? • Over 20 years of expertise in law firm management, marketing, business development and technology, product management and consultative selling • Advises law firm leaders in business development, legal project management, process improvement. Also advises legal vendors on product development, market strategy and sales force readiness • Formerly a senior consultant with Altman Weil; Director of Practice Development for a global law firm; CEO of a NASDAQ-traded legal technology company; and a senior executive with both LexisNexis and Thomson Reuters • Fellow, College of Law Practice Management • Fellow, Center for International Legal Studies • President-elect, LMA International Board of Directors • Author of Corcoran’s Business of Law blog • Columnist, Marketing the Law Firm journal and PSMG Magazine (UK) • Host, In-House Legal podcast • Yellow Belt certification, Legal Lean Sigma Timothy B. Corcoran Principal Corcoran Consulting Group, LLC

3. Who moved my cheese?

4. Remember when everything was working well? Demand PPP Rates

5. Or was it? “Post hoc, ergo propter hoc” “After it, therefore because of it” Cause Effect

6. Law is shifting from a demand to a supply economy Location, location, location

7. Have the R.U.L.E.S. changed? Old school New school?

8. Envisioning a different future

9. What matters now? • Client focus • Predictability • Communication / managing expectations • Efficiency • Yada,Yada, Yada • Legal expertise

10. New rules, new vocabulary I Love Lucy, “Paris at Last,” S5E18, 1956

11. Lawyers and marketers and CFOs speak different dialects

12. ROI = return on investment ROI is relative, not absolute

13. Measures of ROI

14. Where does ROI matter? • Prospecting • Events and Sponsorships • Pitches, Proposals& RFP responses • Social Media • Resource allocation • Departmental reporting

15. Which dollars do we chase?

16. Identify and repeat efforts that win business 80% probability of closing within 3 weeks, leading to $100k billables in Q1, $150k in Q2, $50k in Q3

17. Propose solutions to business problems Business Issue Impact to Business Recommended Actions • BioVate has several high-growth products at risk of IP infringement in growing 3rd world markets • Loss of revenue ($____) from clones • Expensive to file ($____) IP protection in all markets • Difficult to enforce valid IP protected in some markets • BioVate to vigorously protect IP in key primary markets • BioVate to monitor IP infringement in 3rd world using 3rd party tool • Selective high-profile enforcement for deterrence • BioVate ex-VP of Engineering filed sexual harassment claim, seeking class action status • Potential negative PR impact with customers, suppliers, trade press • Expensive to defend ($____), though allegations are unfounded • Aggressively pursue summary judgment • If fail, seek settlement over trial • Inoculate against future actions by presenting employee training • Additional round of P/E or VC financing needed • Cash flow/liquidity squeeze by Q4 at present run rate • Explore financing alternatives and issue offering Capabilities statements and brochures are often a waste of time and money. Customized proposals win business.

18. Which practices deserve attention? There is an inevitable and inexorable migration of products and services from leading edge to common place, whether the provider likes it or not Strategic Rates Supply Important Repetitive Repetitive Repetitive

19. Which partners deserve attention?

20. Where should we spend our time? • Plot all activities • Plot all practices • Track marketer time against all practices • Compare to strategy plan • Review resource allocation with firm management

21. Submit Articles Speak at Conferences • Memberships and Associations value chain Visibility & Credibility Board Committees Leading Expert Demonstrating Expertise Networking & Education Attend Meetings, Educational sessions

22. Event ROI: What do we need to know?

23. Event ROI: A lot more than we track today!

24. Event ROI: The numbers don’t lie!

25. Which publications generate traffic?

26. Share of Voice

27. Pitches, Proposals, RFPs – The Great Time Suck The usual process • Always in a rush • 95% about us • Deal lists, representative matters, bios • Never call to clarify • Last second drop-in of mystical pricing The usual result • Who cares? We pitch what the partners tell us to pitch!

28. Pitches, Proposals and RFPs – Model of Efficiency Winning Characteristics • Early • Client prep call/test close • 95% about the client • Clear problem statement • Potential alternative solutions • Proposed project plan • Proposed budget Regression analysis – an internal Chambers?

29. The ACC Value Challenge Understands Objectives/Expectations 4.5 Legal Expertise 4.6 Efficiency/Process Management 4.2 Responsiveness/Communication 4.4 Predictable Cost/budgeting skills 4.0 Results delivered/execution 4.4 Measure & report on metrics that matter to clients

30. The death of asymmetric information Repetitive Repetitive

31. The death of asymmetric information Repetitive Repetitive

32. The death of asymmetric information Repetitive Repetitive

33. The death of asymmetric information Repetitive Repetitive

34. The death of asymmetric information Repetitive Repetitive

35. The death of asymmetric information Repetitive Repetitive

36. For more information

37. Timothy B. Corcoran Principal Corcoran Consulting Group, LLC 609.557.7311 tim@corcoranconsultinggroup.com CorcoranLawBizblog.com Twitter.com/tcorcoran