2011 Redwood User Conference September 19-21 The Ritz-Carlton Hotel Philadelphia, PA

1. Sales Lessons Law Firms Can Learn from the Corporate World: Bringing in More Business Using Key Client Teams 2011 Redwood User Conference September 19-21 The Ritz-Carlton Hotel Philadelphia, PA William J. Flannery, J.D. The WJF Institute

2. Today you’ll see, hear and learn … • Sales Lessons from the Global 1000 • What your firm can adopt and adapt • How technology can help you develop tactics and strategy • Key client management opportunities • Practical ideas on how to close the knowing/doing gap

3. How The Global 1000 Segment Customers All segments require face-to-face meetings with decision makers

4. Key Account Management and Leadership Structure • International account manager • Sales team • Technical team • Administrative team • HQ management and support

5. Key accounts are different • High revenue / profit customers act and are different • Need more resources globally • Best sites for beta testing, test marketing, etc. • Leaders in their industry and early adopters

6. Key accounts are managed differently • Top 20-30 accounts get c-level attention • Managed by VP of global accounts • Constant vigilance by senior management • Work to create loyalty • No one owns the customer

7. Marketing strategy and plans • Well-articulated global strategy for growth • Clear, global team account planning process • Teams develop global best practices • Global teams with local tactics and strategy • Different tactics and strategy for each customer • Scaleable to the size of the enterprise • Advertising / branding is global and local • Competitive analysis is global and local • Pricing is global

8. Team building and maintenance • Well-trained teams – trained as teams • Well-defined roles for all • Career paths for all team members • Individual defections managed by team • Post-merger sales force integration is immediate

9. Team’s relationship with the customer • Team is visible to the customer often – daily • Global account teams help manage the customer’s global business • Customer doesn’t defect with defectors

10. Feedback and support • Team gives business units information about: • Competitive information • New product requirements • Changes in business environment • Pricing and team performance • Company provides team with: • Global technology support • Global marketing support • Sales and product training

11. Measurement and compensation • Drives strategy with compensation / recognition • Rewards and recognizes teams • Not individuals • Measures primarily team performance • Individual measurements are secondary • Doesn’t tolerate “Lone Ranger” behavior

12. What Your Firm Can Adopt and Adapt

13. What and why adopt and adapt? • Client-focused teams • Global marketing planning methodology • Measurements • Leadership and client relationship management training • Team-based reward and recognition • Technology support – for CRM, RFPs • Global / local strategy and tactics • Key clients cannot be managed informally

14. Adopt and Adapt?, cont’d • The firm’s assets (clients) need disciplined financial management • Outsourcing, preferred suppliers, “convergence” and “partnering” initiatives by the clients • To gain profitable market share • To differentiate your firm and its offerings • To be part of the client’s team you must act like a team • Partners won’t leave if they can’t take key clients • “It’s the client, …….” and they have the money

15. How Buyers Buy Law Firm’s Actions Awareness • Marketing • Business Development Interest Desire Hire Rule: Your Mission In Marketing and Business Development Is To Change The Buyer’s Behavior.

16. Marketing Math to Help Develop Team Tactics and Strategies

17. Flannery LLPLogic Solutions, Inc.Revenue in $000

18. Flannery LLPLogic Solutions, Inc.Revenue in $000

19. Flannery LLPLogic Solutions, Inc.Revenue in $000

20. Flannery LLPRevenue History$000

21. Flannery LLPRevenue History$000

22. Flannery LLPKey Client Revenue Analysis$000

23. Revenue and Market Share of Clients

24. Key Client Management Opportunities

25. What is this thing called Client Relationship Management? • Managing all of your firm’s contacts and efforts to increase profitable market share within a client

26. How most firms spend their money • Bar activities • Public relations and community involvement • Written articles and speeches • Brochures and newsletters • Entertainment • Prospective client seminars • Branding and advertising

27. How law firms should spend their marketing resources Focus, Focus, Focus most of the resources on the firm’s key clients Face-to-face meetings with clients Ongoing training for lawyers and client-focused teams Client opinion surveys Use RFPs, presentations, proposals and meetings to put your competitors’ business into play Client service training for support staff Leadership training for the team leaders

28. Return on investment is measured in dollars, not activities • Profit by client • Greater use of the firm’s resources • Greater client loyalty • Know the cost of acquiring the work

29. Where To Get The Highest ROI For Your Firm’s Marketing and Business Development Efforts

30. High Client-Focused Matter(s) Practice Groups Industry Groups Teams Increased Profits From Marketing and Business Development Tactics Profits Low High Marketing / Business Development Coordination / Actions

31. Your Firm’s Client and Business Development Process Plan Interview • Plan, Organize in Teams, • Research, Goals, CSIP • Styles, Pace • Priorities • Process Information • Perceptions • Client Focused Service Improvement Plans • Communicate Solutions • And Benefits In Presentations, • Proposals and Meetings • Rapport and Trust Building • Build Relationships • Transfer Trust Design Solutions Process Questions Decision Retain Client New Business New Client Rule: The Successful Firms Will Need To Adopt and Adapt A Firm-Wide Client Development and Relationship Management Process.

32. Increase client satisfaction and loyalty • Increase revenue and profit • Protect or expand relationship • Increase market share Goals

33. Where To Focus Firm EffortsSteps To Success Date of Action • Building strong relationships, face-to-face • Discovering and developing client needs • Enhancing business and financial skills • Using the WJF Institute CD&RM Process • Firm-wide business development approach • Trained client-focused teams • Technology support for teams • Accountability and measurement systems • Client interviewing and team management • Leading and selecting client teams • Increasing profitable market share • Specific plans for each opportunity • Client, industry and geographic focus • Driving client loyalty • Increasing the use of more practice areas • Client team status reporting systems • Evaluate team performance and leadership • Evaluate client profitability • Change recognition and compensation • Financial plans and controls Individual Skills CD&RM Workshop Team Skills Lead & Manage Business Dev. Using Key Client Teams Client-Focused Plan Development CSIP Day Law Firm Management Overview Team Status Report

34. Firm Management Commitment Target Top 150 Clients Management Action Change Training / Teams / People / Systems / Technology Train The Teams The WJF Institute Map Reassess Teams / Client Profitability Client Service Improvement Plans Management Oversight And Team Accountability Manage Process / Knowledge Measure Performance

35. What you will need to get started • Highly skilled team members • Team selection criteria • A clear process for creating goals and action plans • Roles for all team members • Rules for good behavior • Reward and recognition system • Technology support • Clear firm-wide: • CD&RM Process • Client Service Improvement Planning Process • Rule:If firm management does not drive the client focused team effort it will FAIL.

36. Why teams focused on key clients? • “That’s where the easy money is” • 80% of the firm’s revenue in the top key clients • They are targets for competitors—protect tactics • Key tactic by high-profit businesses for decades • Leading-edge users of a legal service • Require a lot more attention • They invest in your firm • Fund your “product” development efforts

37. Why teams focused on key clients? • Serve as your best references • Drives clients’ use of your firm’s resources more effectively • Creates firm-wide client loyalty • Neutralizes client hoarding by individuals • Reduces impact of partner defections • Post-merger or lateral integration as opportunities are at closest point to your high-revenue clients – client teams

38. Characteristics of a well-run key client program • Most lawyers and staff organized in key client teams • All practice areas represented in the teams initially • Clear planning process in place (CSIP) • Measurable goals – increase in profitable market share • Costs-benefit analysis of team • Cooperation and integration of firm’s resources • Reward and recognition of teams and members • Management inspection of team performance

39. What every team member needs to do: client needs assessment interviews • Please answer the following questions about each of your client needs assessment interviews: • Who were the individuals in the client’s organization that you visited and what information was learned on the “client needs interview”? • What new opportunities were discovered in your own practice areas during the client needs interviews? • What new opportunities were discovered in practice areas other than your own during the client needs interviews?

40. What every team member needs to do: client needs assessment interviews 4. What are the plans to following up on these opportunities, especially in new practice areas? 5. What additional support do you need and what is the next milestone? 6. How much time and resources have been spent and what is the likelihood of getting the business? In other words, what is the Return On Investment (ROI)? 7. If you experienced success, what might we (the Firm) learn from your individual success?

41. Characteristics of dysfunctional client management and business development teams in law firms • Failure of the firm’s management to drive results through inspection of team performance • No real accountability or avoidance of accountability • Lack of commitment from management and team members • Fear • Absence of trust amongst team members • Low or non-existent skills for business development • Poor team leadership and followership skills • No clear or vague measurements for teams

42. Characteristics of dysfunctional client management and business development teams in law firms • Too much focus on selling vs. client needs • No rules and roles for effective team behavior • No effective team recognition or rewards system • No clear business development account planning methodology • Failure to execute and lack of sanctions for poor execution • CMO or business development staff not experienced in teams and large key client management • Partner paralysis (firm in trouble) • No pain (partner complacency)

43. What and how to report the team progress to firm management • Brief description of the goals of the plan • Original goals • Updated goals • Revenue for the team • Past • Projected • Current revenue rate (YTD) • Realization

44. What and how to report (cont’d) • Practice group utilization • Original usage • Current expansion • Projected • Client’s level of satisfaction with the firm • Past • Current • Continuous improvement plan?

45. What and how to report (cont’d) • Competitive activity • Resources needed • Team status • Next milestone / meeting

46. Rule: Reward success, reward failure, punish inaction

47. Practical Ideas on Closing the Knowing / Doing Gap

48. Practical Ideas Train the members of the team so that they know how to “play the game as a team” as the unskilled will kill the opportunity Create a spreadsheet plotting clients against practice areas, and enter revenues by client for the past several years of your top key clients Create five teams focused on key clients Meet and develop a client specific plan for each team Rate your own and your team’s effectiveness by increases in client loyalty, revenue and additional practice group use

49. Practical Ideas • Use technology to manage and drive team efforts • Recognize and reward TEAM efforts and results • Use these client-focused teams to integrate laterals, acquisitions and mergers

50. Please send us your evaluations and comments:William J. Flannery, J.D.The WJF Institute11044 Research BoulevardBuilding A, Suite 110Austin, TX 78759 512-338-1758Fax 512-219-1200flannery@wjfinstitute.comwww.wjfinstitute.com