I frequently write about how law firms can increase top-line revenue as a result of focusing on the commercial interests of clients. In fact, I was recently interviewed by Lee Pacchia of Bloomberg Law where I argued that BigLaw Growth is not dead, as has been widely accepted in the legal services sector as undisputed fact. There are countless ways law firms can grow top-line revenue and profit. Here’s one:
A case in point
I read a recent article in The American Oil & Gas Reporter about a renaissance in the U.S. manufacturing sector which outlined that as a result of “domestic tax, tort and regulatory policies, [it's] 20 percent more expensive to manufacture in the United States than in any of its nine largest trading partners–excluding the cost of labor”. The article provides just one example of where law firms can actively seek to advance the commercial interests of clients — while generating law firm revenue. You may say the task is too difficult and the market is saturated with lawyers. Both are false. The problems are daunting but can be tackled incrementally. The potential client base: You’d be amazed at how many companies never hear from professional services providers – let alone have someone approach them on the basis of helping them achieve heretofore unrealized major objectives. Trade associations already doing this? Plenty of industry sectors have multiple lobbying efforts going at one time. Make your law firms efforts the best among them.
How to do it
But in order to secure work associated with the example above – law firms need to align their business development thinking and action, as well as their services offer – around meeting the commercial needs of potential clients. I have outlined in detail in previous blogposts about how firms can do this.
I am very aware of the particular challenges associated with the case I’ve highlighted. However I would point out that this opportunity can be tackled incrementally. I’ve done this sort of thing numerous times when working to secure new clients for law firms. Sure there are plenty of reasons for lawyers to be critical and say it can’t be done. What lawyers need to do instead is see the opportunity not the danger – and take the actions necessary to be a true commercial partner to clients. Not just legal counsel. I’ve worked with highly sophisticated rainmaking partners who would seize the very opportunity I’ve outlined. They wouldn’t look at this cynically – they’d see it as the multi-pronged opportunity that it is.
What next?
The case I’ve outlined highlights how law firms with diversified services offers can capture clients more effectively than law firms that simply offer legal services. Washington, DC law firms maintain hybrid law and lobbying practices. Those practices would be well positioned to provide the necessary services to help the US manufacturing sector at least chip away at the 20% cost basis disadvantage they face when seeking to be competitive in domestic and international markets.
In this case specifically, a US hybrid law/lobbying firm business development team would identify via proprietary database research (CRM) a universe of domestic manufacturers ideal for representation. The service offer made to these manufacturers would be the amelioration of existing litigation risk, as well as the possibility of creating a new industry lobbying group around the issue to press for legislative and regulatory relief. Even some change would be beneficial and justify the spend by the newly developed client base. How to reach out to them? Blogging on the issue, direct mail, tailored local seminars, cold contacting around the issue, among others. Generate a solid lead list of potential clients around these efforts. The opportunity is multi-pronged and would involve a number of legal practice groups - and would result not only in new work around the opportunities I’ve outlined – but would in addition lead to further discussions on addtional, unrelated opportunities with these prospective clients. The business development initiative I outline here always leads to additional discussions around additonal opportunities. Prospective clients like to hear from lawyers who understand the commercial world and bring tangible solutions to them.
Moving forward
I’ve provided a stream of consciousness outline of what law firms can do to offer commercial solutions to companies with an aim to generating more legal work. It should provide food for thought about what sort of thinking law firm leaders ought to be engaged in in order to secure more work. It does involve establishing sophisticated internal business development units to perform the research, identification, pursuit and capture of clients around these complex issues and the services offers which would serve to help those clients and in turn generate new revenue streams for your law practice.
I know it works. I’ve done it. And so should your law firm. Get commercial and defy the conventional wisdom that law firm growth is dead. It’s far from dead. It’s alive and well – if law firms choose to enter the marketplace where it can be realized. This is one example of thousands where a law firm can meet the market with a diversified services offer. Find your niche and plunge into the commercial world. You’ll never look back if you do.
