Is your firm customer obsessed?

I have written before (here, here, here, and here) about how a law firm's focus should be on its customers (clients) first and profits second. In this post in the weblog A VC, the author (a New York City venture capitalist) writes about the companies he likes to invest in:

I like to say the way you start a company is you build something for not a lot of money, sell it to a few brave customers who you then develop deep relationships with, listen to them very closely, follow their lead and improve your product and develop new products around your customers feedback, and soon enough you'll have a good business that will be profitable and loved by its customers. It's not easy to do but that's the model I like best.

Elsewhere, in article in Fortune Magazine (registration may be required) talks about Jay Leno's focus on his fans:

One reason he does not use an agent anymore is that he doesn't want anyone to speak for him and possibly offend a client or fan. "That's really what this business is about," Leno says. "Contact with the customers. Because it's really feast or famine. You meet a guy on the elevator and you say hello. Well, for the rest of your career, you are the greatest guy in the world. But if you go, 'Excuse me, I'm busy,' you are just an asshole. Lyndon Johnson used to say that every handshake is worth 250 votes, and it's really true, especially in television. (From the Church of the Customer)

Lastly, in this post John Moore reviews a Harvard Business Review article, "The One Number You Need to Grow," penned by Frederick Reichheld.

Reichheld’s research indicates that there is a strong correlation between a company’s growth rate and the percentage of it’s customers who are willing to recommend the company to a friend.

Moore quotes Reichheld, "You only have to ask your customers one question: How likely is it that you would recommend [company x] to a friend or a colleague." Do you ask you clients that question?

Making Donuts, Part II

Getting a lot more traffic from the search engines lately, and found out why. Google "how to make donuts" and this site is number two. If you change the search string to "time to make the donuts," this weblog moves to number one. All because of this post. I know that blogging is a way to drive search engine traffic to your site, but this is ridiculous.

According to Rick Bruner, President of Executive Summary Consulting, "Blog" should stand for "Better Listings On Google." (Thanks to Kevin O'Keefe for the Bruner quote.)

How "Unique" is your law firm?

Jeremy Blachman, a 2L at Harvard Law School, in Jeremy's Weblog compiles this list of "unique" statements from law firm web sites. Jeremy has removed the law firm names and shortened sentences, but assures his readers that these are accurate:

The nature of our practice and our unique firm culture sets us apart from the rest.

What makes our firm unique are its fantastic people.

Our attorneys and staff have created a unique firm culture which nurtures mentoring and the exchange of ideas.

We possess a unique combination of experienced lawyers with backgrounds in various legal fields.

Our clients appreciate our unique combination of specialized expertise and broad experience.

Our firm's culture is a unique blend of the conservative and entrepreneurial.

Our exciting practice and unique collegial ambiance distinguish us from other law firms.

We have a unique ability to offer our attorneys unlimited opportunity for personal, professional and financial growth.

We have a unique Pro Bono Policy that demonstrates the Firm's support for pro bono.

There is a unique spirit at work here, a collective "can do" attitude that empowers every member of our Firm.

At our firm, your first reward is the unique opportunity to explore your interests and build your practice.

Our attorneys and staff have a passion for justice and a unique commitment to the needs of our clients.

We don't think you will find another law firm anywhere that has such a unique combination of excellent lawyers, challenging and diverse practice opportunities, decent people, and a genuine sense of community.

One of the things that makes us unique — and uniquely effective for our clients — is that our people live in the real world, not inside dusty law books.

A law student or graduate should be wary of a firm that is one-sided and does not present a balanced mix of quality legal work, people, and lifestyle. We believe we have succeeded in achieving such a balance, which makes us unique in today's legal community.

If the unique firm we have described here is one that appeals to you, we encourage you to contact us about career opportunities.

What is your strategy?

Thanks to Paul Williams at Brand Autopsy for this post about a marketing agency satire website. I think their strategy could have been written for lawyers:

Our main strategy is to convince people that we do stuff they can't do themselves, and that we deserve lots of money for it. The best way to do this is to always look good, and always sound like we know something you don't. If you're still not convinced, we'll show you lots of market research and cost analysis and global positioning strategy reports to confuse you and hopefully convince you that we're so knowledgeable you couldn't possibly succeed without us. Because you can't. So don't even try.

I personally like their take on solutions:

When we deliver your new business strategies to you, they'll be in really snazzy binders that look nice sitting on big, round meeting tables, so you'll know you got your money's worth. When your project has been completed, we'll give you several follow-up phone calls to give the appearance that we even remember who you are or what we sold you.

And client satisfaction:

Our clients are always satisfied with our service. If you knew who any of them were, you could confirm this for yourself, but, since you don't, you'll just have to take our word on this one too. Client satisfaction is always our first priority. Well...actually...maybe something like third or fourth. But we really do take care of our clients. More or less, anyway.

Techshow Registration

I just registered for Techshow yesterday. As Jeff Beard points out in LawTech Guru today, February 26 is the last day for "early bird" registration and the $100 discount that comes with it. However, if you miss the deadline, try calling (800)888-8300, extension 5909, and mention priority code TS100 to get the "early bird" discount until March 12. I got this info in a flyer from the ABA yesterday, so this should work. ABA Law Practice Management members get an additioanl $100 bucks off, for a total conference cost of $595.00.

Also, if you are going, don't use the Sheraton downtown to stay. Get on Hotwire and search for Chicago hotels in the North Michigan Avenue/Water Tower Place or Magnificant Mile/Wacker Drive areas and your hotel will be no more than a $4.00 cab ride from the conference site. I got the 4.5 star Swissotel across from the Sheraton for $103 per night. At last check, ABA's "discounted" hotel rates for the Sheraton were $177 per night!

UPDATE: Just got this tip: Go here and enter your arrival and departure dates and you should get the Sheraton for $129.00 per night. Thanks, Patricia Joyce.

New York Times Link Generator

David at ethicalEsq. gave me this great tip today. When linking to a New York Times article, run the original URL for the story through the New York Times Link Generator to get a weblog-safe link with no subscription issues. David credits Howard Bashman for this pointer.

More non-legal stuff.

I was surfing last night and came across a few more weird things. On Retrocrush, a site that bills itself as, "The World's Finest Pop Culture Website," I found this list (with photos) of the Fifty Coolest Apes of All Time. I can't believe Mon-ChiChi beat out Chim Chim.

Now back to our regularly scheduled programming.

Need more ideas?

Not sure if this goes under humor or not, but this site is a fascinating daily read. A new idea every day. Take a look at the archives and top ten. My favorite:

Allow voters in political elections to cast a vote against a candidate. Voters would still have only one vote each but each "against" vote would nullify a "for" vote. This system would give voters who are disenchanted with party politics, and perhaps unlikely to vote at all, at least the chance to express their feelings about a party they really do not want to be in power.

Only a few ideas have a political bent. Most are just interesting, or just plain weird. The one about a gun-shaped remote control you could aim at the TV to change channels by pulling the trigger was just like the idea I had in law school twelve years ago -- just ask my roommate.

The New York Times on Business Lawyers:

This article in today's New York Times (registration required) talks about the sometimes rocky relationship small businesses can have with big firm lawyers. According to the article, "There is a yawning gap between [small companies'] practical requirements and the legal culture. Small companies must watch costs and focus on cash flow, while law firms can lose sight of the cost effectiveness of their work and may be driven by the perverse incentives inherent in hourly billing." Small business owners were quoted about their relationships with lawyers:

"Lawyers for small companies take on a patronizing role."

"They (lawyers) will consume as much time as they possibly can and will assume as great a role in a transaction as they can."

"You find that the whole deal is negotiated, and you haven't even seen it."

"An attorney, to me, is like an expensive pen. It's a tool. You should negotiate the business points yourself. They should document what you've negotiated."

"They (lawyers) tend to fascinate themselves with all of sorts of trivial things,"

"They (the law firm) did a great job, but I knew when I walked into a gleaming conference room with Dean & DeLuca pastries that there would be problems."

At hourly rates exceeding $500, "it can cost $20,000 or $30,000 to have a question answered and a couple of letters written."

"You don't want to hit a flea with a sledgehammer."

The article also gives some tips small businesses should follow when hiring a lawyer:

• Ask for a flat fee. If the lawyer will bill only by the hour, get a cap. Request frequent updates on how much time has accrued.

• Insist on approving all staffing. Require the lawyer you hired, rather than a green associate, to do the important work; a busy, but experienced lawyer will generally be cheaper than an underused young lawyer, even at a higher hourly rate.

• Do not allow more than one lawyer to attend a hearing or deposition. Do not pay for travel time or for ordinary overhead like photocopies and phone calls.

• If the bill contains the names of lawyers and paralegals you have never met, work you did not ask for or fees out of proportion to the problem the lawyer was hired to solve, do not be afraid to question it.

In general, Ms. Lodenkamper said, small-business owners should stay away from larger law firms."You want either a sole practitioner or a small firm," she said. "If you get into a large law firm, you're going to get a lot of theory and 70-page contracts."

The article is right on, and should be required reading for all business lawyers.

I'll have what he's having.

This might not be the best reason to start your own business. Warning, may induce laughter.

Words matter

You would think that lawyers (above all other professionals) value language and realize the effect our words can have on our clients. This article discusses how certain words can limit a salesperson's liklihood of closing a deal. The lessons are helpful for lawyers as well -- if for no other reason than to remind us of the significance our clients place on the language we use. The words:

1.Contract. Even though salespeople generally have good associations with this word because it implies a sale, most customers have a negative view of it. To most, it means something binding, lawyers, maybe even court -- yuck! Replace it with the word "agreement."

2. Sign. This is unsettling for the same reasons as "contract." Many people are warned by their parents not to sign anything -- they might be signing their life away. Replace "sign" with "approval." "I just need your approval here," you say, while pointing to the appropriate spot on the agreement, "and we're all set."

3. Buy. Buying something is the painful part of the shopping process. It's where we part with our money. Owning, even enjoying, is what consumers want and what smart salespeople talk about.

4. No! I was taught a long time ago to avoid saying no to a prospective customer because it puts a speed bump into the sales process. Fair enough, but there are times where you have to say no to prospects. For example, let's say a prospect tells you that your product is the same as all the others, and your product is actually different, even superior. Not disagreeing is essentially agreeing with him and could be damaging to the sale, especially if your product is priced higher. "Actually" is a respectful alternative.

5. Quote, estimate or bid. These words should be avoided, especially if your product is superior and higher-priced than others. These words suggest the purchaser is going to shop around, get multiple quotes and probably choose the lowest price.

6. Cheap. Cheap implies poor quality. Just yesterday, a TV show was discussing consumer trends. A lucky retailer was chosen for an in-store interview (you can't buy advertising better than this) and was asked by the reporter what people were buying. His answer: "They seem to be buying the cheap stuff."

Via the FreshInc. weblog.

Another post on the same topic comes from Joyce Wycoff in her Good Morning Thinkers weblog. Good stuff.

Business insight from drug dealers?

Fascinating series of posts here and here at Brand Autopsy about what drug dealers can teach us about marketing and business.

Before you automatically dismiss this as outlandish and ridiculous – think for a second. Drug dealers must design their business in the same ways that legitimate businesses do. From procurement of product to making strategic real estate (location) decisions to acquiring customers … the parallels between street corner selling and running a legitimate business are endless.

Lessons come from the book Dealing Crack -- at popular booksellers (and street corners) near you.

Maybe the billable hour isn't so bad after all.

David at ethicalEsq notes that competition is coming to Chicago law firms.

The Law.com Daily NewsWire says that major competition over lawyer fees is coming soon to Chicago, as Detroit's largest firm, Dykema Gossett, is acquiring a 78-lawyer Chicago firm (bringing its total to over 400 lawyers) -- and, "says it plans to keep average partner rates near $300 an hour -- about half of big firm rates" in Chicago.

Tongue planted firmly in cheek, David says, "This warms my antitruster-consumer-advocate heart. Any chance of trickle-down competition for the masses?"

Gee, if I could get $300 per hour and convince my clients that it was a good deal, this hourly billing thing wouldn't seem so bad. On the other hand, if we were in India, then that $300 buys the whole day (and maybe even the week), at least according to this article on outsourcing legal research to India attorneys. (Thanks to Carolyn at MyShingle.com for the India story).

Motivating Legal Employees II

This post from The Nub relates how the managers of a BMW Mini Plant in England have saved nearly twenty million dollars in the last two years by listening to their employees:

Every employee has a target of implementing three ideas a year to improve the business. 11,064 ideas were put into practice from a total of 14,333 submitted in 2003, an 80% implementation rate.

When is the last time you asked your employees for an idea to improve your practice?

Motivating Legal Employees

I think I am a pretty good boss. I have one full-time employee, and my mother works for me on Fridays. My secretary is great at what she does, but she doesn't have the time to do all of my legal-related work and pay the bills, deal with vendors, etc. Therefore, in the next two months I will be hiring at least two more part-timers, including a business manager to help me run my firm, and a customer-relations/marketing manager to help me keep my clients happy. I do not want to hire any more full-time staff only because I can attract a higher-caliber person if I am able to be flexible with work hours and scheduling. I told this to my secretary (who has become a close friend) last week. Though she seemed OK with the idea, I worry that she will feel a bit shoved aside when I delegate some of the tasks she is presently performing to someone better suited to do them.

Here are some tips on motivating employees that I ran across in an article on Training Zone (registration may be required).

Step 1: Set achievable targets. Targets must be realistic, fair and relevant to the individuals’ job responsibilities. If a significant uplift in performance is required, it must be justified. The best way of setting targets is often to ask individuals to set their own. This frequently results in figures greater than originally specified by the director. This approach means that commitment to achieving the target is greater because the figures are ‘mine’ not ‘yours’. They actually become ‘ours’.

Step 2: Have lots of winners. Nothing succeeds like success. Being able to recognise and reward all those who have succeeded provides a more positive environment than one with lots of losers

Step 3: Make rewards frequently. Make awards frequently throughout the programme. If the campaign is for a year, shorten the payout horizon to monthly or quarterly. The award values need not be huge, but the motivation value is. This keeps interest levels high.

Step 4: Have a 'most improved' award. A participant who has a poor performance in a month or a quarter, can be re-vitalised by the opportunity to qualify for an award in the next period, based on improvement. This method encourages participants to keep trying,

Step 5: Have an employee of the month. In a sales environment, it might be for the most orders taken or new accounts opened. This allows Mr/Mrs Average to compete more fairly.

Step 6: Encourage sustained effort. Nothing de-motivates Mr/Mrs Average more than to see Mr High-Flyer streaking ahead from the start, leaving all in his wake. However, if everyone starts afresh each quarter, or each month, with plusses and minuses wiped out, everyone has a chance to compete on equal terms.

Step 7: Present the awards with style. Do not under-estimate the power of public presentation. Mr/Mrs Average will value the experience of being recognised by you and his peers.

I hope that I can keep everyone happy. One thing that I will be doing is letting my secretary sit in on the interviews. I will solicit her feedback before making a hire. Thanks to The Nub for the link.

Quote of the Week

We are what we repeatedly do. Excellence, then, is not an act, but a habit. - Aristotle

Trading Up

Ran across the Business Evolutionist Blog today and found this post on Trading Up, the book by Michael Silverstein and Neil Fiske. John Strande highly recommends the book and has gotten me to order it. I'll let you read his post, but one of Strande's readers suggests that the lessons in the book seem equally applicable to selling both goods and services. I'll post my thoughts on the book (and applying its ideas to legal practice) once I finish it.

Managing Client Expectations

Another great example from Priceless: Turning Ordinary Products into Extraordinary Experiences is Xerox. Xerox was receiving numerous complaints from its customers that repairs weren't happening fast enough, so they revamped their service-delivery process.

Under the new approach, each time the customer called in she was allowed to identify her need on a scale from routine to critical. Service personnel would then arrive faster for a critical call than a less urgent one. By involving the customer in the service delivery process Xerox not only increased customer satisfaction but surprisingly found fewer service personnel were needed. Rather than take advantage of the situation and define every call as critical, the customer was more interested in having a choice than instantaneous response.

As a lawyer, I find that my clients are willing to give me extra time to complete a task when I tell them I am swamped -- but they are most understanding when I tell them when the assignment begins, and not when it is due. If I am able to get the project done before I promised, they are doubly happy. David at ethicalEsq knows all about Underpromising and Overdelivering.

My reason for living.

In a comment to my recent post, Evan at Notes from the (Legal) Underground wanted a picture of my daughter. Well this one is from several months ago. I'll upload a few more to a Typepad photo album soon.

Putting Customers First

In Priceless: Turning Ordinary Products into Extraordinary Experiences, authors Diana LaSalle and Terry A. Britton look at how businesses can create value-adding experiences around any product or service. One of the companies they highlight is Deerpath Medical Associates in suburban Chicago

Every morning, Monday througth Saturday, its offices open at 7:00 A.M. For the next forty-five minutes, any patient can walk in and sign up to see a doctor that morning. . . . To handle the load, two or three doctors from the group are assigned each morning to see patients. . . . Because patients can easily access a physician six days a week, they are less likely to self-doctor or wait until a minor ailment becomes a serious illness. They are also less likely to jump ship for a group that doesn't offer such convenience.

In a later chapter, the authors cite Frederick F. Reichheld's book The Loyalty Effect, and his statistic that, "an increase in customer loyalty of just 5 percent can increase profitability 35 to 95 percent." Certainly a staggering statistic, and I've not read the book to know if Reichheld argues that the reverse is also true -- that is, does a 5 percent decrease in customer loyalty have as significant an impact upon profitability?

What lessons can lawyers take from Deerpath? How can we increase customer loyalty? Step one would be to return those telephone calls.