bti world-class client feedback 2014 webinar

Compelling Research. Compelling Results. ©2014 The BTI Consulting Group Wellesley, MA 02481 Tel: +1 617 439 0333 www.bticonsulting.com Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group For Internal Use Only

My Client Said…What? Quotes from the BTI Client Files

“I appreciate the partnership. We enjoy the relationship.

We’d want to do more work with them.” President; Middle-market Software Company



The Partner Said… “We’ve tapped out this client.

We’re getting all the work we possibly can. There’s only so much work available.”

The Client Said… “I’d like to use them more, I just don’t know

what their other capabilities are. I only know the people I work with.”

Senior Vice President; Global Pharma Powerhouse



“They provide us with good results, but I question whether they think

holistically about my issues, not just in the legal sense.

They need to look at brand impact, government relations, consumer

issues—to name a few.” General Counsel;

Fortune 500 Consumer Goods Company



The Client Said… “Next year our goal is to cut litigation

spending by 15%.” Head of Litigation; Leading Chemicals Manufacturer

The Partner Said… “Litigation is our sweet spot with this client.

There’s always plenty of work.”



“As I listen to myself, I can’t believe I did not include them in my RFP

for my global panel. I am going to send them the RFP

as soon as I am done talking to you.” Chief Legal Officer; Leading High-tech Organization



“They have really slipped— their work takes forever,

they are always behind the ball.” Regional Director; Fortune 1000 Financial Services Company



The Client Said… “I consider them an 8.5 out of 10 in

understanding my business... The other firm we use is 9.5.”

General Counsel; Multinational Auto Parts Manufacturer

The Partner Said… “This is one of our best relationships.

I would be stunned if you heard anything but great things about us.”



“They think more about their playbook

than our objectives. They need to take a step

back and ask, "What's the best way to

solve this in a practical manner?”

Senior Vice President; National Healthcare Provider



“We didn’t hire them for our last major litigation

because they never offered us an AFA.

My company is going to be using 100% AFAs

by 2015.” Associate General Counsel;

International Manufacturing Giant



The Client Said… “They understand my business and are

completely in tune with our needs. They’ve set the bar high.”

Chief Financial Officer; Megabrand Retailer

The Partner Said… “We have a great relationship

with this client.”



“We will not use them for our work again.”

Global General Counsel; Global 500 Energy Company


Satisfaction Maintains the Status Quo

CLIENT SATISFACTION IS THE ENEMY OF SUPERIOR CLIENT SERVICE

TM

Satisfaction (săt′ĭs-făk′shən) Etymology: from Latin satisfacere – to do enough

It’s enough to get you by and keep you in the game. Usually, it’s enough to avoid getting replaced…

at least until someone better comes along.


POSITIONING

Think Big: Measure More than Satisfaction

CLIENT STRENGTH AND VULNERABILITY

COMPETITIVE BENCHMARKS

OPPORTUNITY ASSESSMENTS

WALLET SHARE ANALYSIS

HIRING PATTERNS


Strategic Weaponry: Arming Yourself with Relevant Data

DATA TO DRIVE PERFORMANCE

Number of law firms used Premium rate opportunities Major goals and objectives

Role of each law firm – including yours

Comparative benchmarks to other firms

Competitor insight – by name and behaviors

Current and future priorities Client expectations Institutional strengths

Client service performance scores What drives clients crazy Spending with law firms

Client wallet share Points of value Firm-wide weaknesses

Cross-selling potential Obstacles to growth Untapped opportunities

Relationship diagnosis Hiring triggers True differentiators

Overall performance ranking Advice to improve 17 activities score compared

to other firms your clients use


Client Feedback Superior Client Service Financial Benefits

Higher Profits Rate Premiums Across All Staff Levels

Fees From a Single Client

Higher Client Retention

2x

Higher Growth 0%

25%

50%

33.0%

19.5%

50.0%

33.1% 35.6%


Clientopia on the Rise: Law Firms Upping Their Client Service Game

40.1% of clients recommend their leading primary firm first

Clientopia The Ideal State of the Client Relationship


BTI National Average 40.1%

70.0%

50.0%

35.6%32.1%

24.2%

0%

50%

100%

Firm A Firm B Firm C Firm D Firm E

Where Does Your Firm Fall on the Spectrum?

Firm-specific Clientopia Rates Percent of Clients Who Recommend Their Leading Primary Law Firm First


Clients See as

Abundant in the Market

Clients See as

Scarce in the Market

Ability to Differentiate

17 Activities Drive Superior Client Relationships 4 Drive Superior Service Score

Importance

High

Low

Less Important Very Important

Commitment to Help

Quality Products

Deals with Unexpected Changes

Handles Problems

Client Focus

Keeps Clients Informed

Meets Core Scope

Provides Value for the Dollar

Unprompted Communication

Helps Advise on Business Issues

Regional Reputation

Brings Together National Resources

Innovative Approach

Breadth of Services

Anticipates the Client’s Needs

Legal Skills

Understands the Client’s Business


Top 4 Activities Proven to Drive Clientopia

0.67

0.48

0.640.63

-1.0

-0.5

0.0

0.5

1.0

Provides Value

for the Dollar

Clientopia Correlation Coefficient

Commitment to Help Client Focus Understanding the

Client’s Business

Perfect Positive

Correlation

Perfect Negative

Correlation


18.2

33.2

25.6

13.1

19.4

24.523.824.1

0

25

50

75

Client Focus Commitment to Help Understands the Client's

Business

Value for the Dollar

Firm-Wide Metrics Proven to Incite Partner Enthusiasm

Activities to Drive Superior Financial Rewards BTI Client Service Score

High

Firm Z Average

Competitor X Average

Low


STAGE 1: NON-BELIEVERS

• Opt-out of gaining client insight

The 4 Stages of Embracing Client Feedback





STAGE 2: TEST PILOTS

• Find closet supporters • Celebrate insight • Support zealots • Embrace the curious • Highlight change and success

• Phased approach as partners gain interest

• Present results to executive committee









STAGE 3: STRATEGISTS

• Build the business case › Financial metrics › Warning signs › Firm-specific data

• Included in business development plans

• Use the 80/20 rule for revenue coverage

• Present results to partnership • Develop robust follow-up plan

› Improvement › Opportunity › Client-specific changes

• Train partners in: › Areas to improve firm-wide › Leveraging client feedback









STAGE 3: STRATEGISTS

• Build the business case › Financial metrics › Warning signs › Firm-specific data

• Included in business development plans

• Use the 80/20 rule for revenue coverage

• Present results to partnership • Develop robust follow-up plan

› Improvement › Opportunity › Client-specific changes

• Train partners in: › Areas to improve firm-wide › Leveraging client feedback

STAGE 4: LEADERS

• Built into: › Strategic plan › Partner goals

• Follow-up incorporated in partner goals

• Ongoing outreach every 12-24 months › Benchmark firm-wide

performance

• Present results to all staff levels

• Improvement goals: › Firm-wide › By client

• Provide coaching and support: › Firm-wide best practices › Client-specific

• Basis for leadership interviews and visits

• Develop – and monitor – client service standards


Pick the Approach to Best Meet Your Needs

APPROACH COST PROS CONS BEST FOR

In-person $$$$ • In-depth insights (quantitative and qualitative)

• Ability to probe and adjust • High personal touch

• Difficult to reach scale • Strong interviewing skills required • Unless using a 3rd party, responses

are skewed positive • Difficult to obtain firm-wide insight

Relationship development, at-risk triage

Telephone $$ • Most objective responses • In-depth insights (quantitative and

qualitative) • Ability to probe and adjust • High personal touch • Broad reach • Firm-wide and client-specific insights

• Strong interviewing skills required

Assessing performance,

identifying opportunity

Online $ • Broad reach • Lends itself to quantitative analysis • Ability to adjust

• Response bias (best and worst) • Lacks personal connection • Limited length • Lacks qualitative insights • Unable to probe

End-of-matter assessments

Mail $$ • Broad reach • Lends itself to quantitative analysis

• Lowest response rates • Response bias (best and worst) • Lacks personal connection • Limited length • Lacks qualitative insights • Unable to probe or adjust

?


If You Only Had 7 Questions…

1. What is the single biggest change you are making to how you manage your legal matters?

2. Which law firms do you consider to be your primary providers? (Order of response matters)

3. What is the most innovative thing you’ve seen a law firm do in the past 12 months?

a. Could you share with me which firm this was?

4. Which law firms do you recommend to your peers? (Order of response matters)

5. On a scale of 1 to 10, with 10 being the absolute best, how do you rate our firm in the following activities:

a. Commitment to help

b. Understanding your business

c. Providing value for the dollar

d. Client focus

6. Now I’d like you to rate another one of your primary firms on these same activities.

7. What do we do that just drives you crazy?

©2014 The BTI Consulting Group, Inc. All rights reserved. For internal use only


How BTI Clients Embrace Client Feedback

High-impact Strategies

Largest clients are a market of one

› In-depth research at a single client organization

Firm-wide consistency drives brand

› Client service standards and training – at all staff levels

SWAT teams repair and grow relationships

› Client-specific action plans

Performance benchmarking creates market leaders

› Assess metrics and client needs every 12-24 months


BTI’s Client Feedback Approach

Project Kick-off

• Review and refine goals • Craft custom instrument • Provide:

› Introductory letters − Clients − Partners − FAQs for partners

• Project timeline › Deliverables › Key milestones

Client Outreach

• Weekly project updates • Client interview

transcripts • Preliminary results

› By week 3 • Immediate notification:

› Opportunities › At-risk relationships

• Thank you notes sent day of interview

Results and Follow-up

• Firm-wide benchmarking • Client-specific insights • Recommendations • Implementation plans • Present firm-wide results

› Executive committee › Partnership › Attorneys and staff

• Ongoing coaching


Developing World-Class Client Feedback Initiatives

TODAY’S PRESENTATION

A recording of today’s webinar will be available

on BTI’s website.

www.bticonsulting.com

A copy of the slides will be emailed to you by

tomorrow morning.

CONTACT

Michael B. Rynowecer President

508.651.5048 [email protected]

Jennifer Petrone Dezso Principal

512.243.8037 [email protected]

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