Still No Substitute for Strong Client Relationships (Perspective)

Editor’s Note: The author is the managing partner of a large law firm and a member of President-Elect Donald Trump’s Inaugural Committee.

Flat demand, a hyper-competitive market and relentless pricing pressure have triggered a wave of changes in the legal industry. Many firms are using software to work more efficiently, hiring MBAs to manage their operations and finances or reorganizing their staffing models. Others have tried to sweeten the deal for clients by offering alternative pricing arrangements (often, in reality, code for discounted fees).

All of those can be worthy endeavors. But amidst all of this innovation and disruption, I fear that firms are losing sight of the most effective and vital method for retaining clients: building relationships with them.

When you have good relationships you understand what clients need, what they’re up against and what their problems are. That allows you to be proactive, to offer them solutions before they ask and to head off issues that might send you scrambling for a solution that is bad for your firm’s business.

Unfortunately, industry research indicates there’s a lot to be desired in the relationship between corporate legal departments and their outside counsel. A recent survey conducted by legal consultancy Altman Weil reveals a high level of dissatisfaction among chief legal officers and general counsel; their primary gripes are problematic service, cost and efficiency.

What stands out to me is the alleged tone deafness exhibited by some firms. Consider these findings:

• 5 percent of dissatisfied clients asked for changes but did not get the results they wanted
• 7 percent did not ask for changes but scaled back or dropped their firms entirely because of inadequate service
• 1 percent believe it is not their job to ask for changes and just expect their legal counsel to improve

For any firm that works hard at building and maintaining good client relationships, these percentages should be much lower. As clients demand more efficiency, predictability and cost-effectiveness in the legal services they purchase, firms would be wise to preemptively address these expectations. Rather than waiting to be called upon and reacting to problems, attorneys should be soliciting feedback from clients and acting on it.

And the best way to ask for that feedback is to walk into a client’s office and humbly ask for it. I spend a lot of time traveling across the country meeting with clients, thanking them for their business and having candid conversations about how we are doing. This helps me keep my finger on the relationship’s pulse; it gives me — and my relationship partners — a clear understanding of how we are perceived and how our performance is measured. The clients appreciate the fact they have a direct line to the firm managing partner. These touch points typically affirm that they value our service and sometimes they lead to new work on matters that would not have otherwise been apparent or available.

Of course, I occasionally encounter a sullen client — which is a good thing. As a passionate problem-solver, I seize those opportunities to build (or rebuild) trust and confidence. For instance, I recently sat down with a client who was about to move their work to another firm. They raised some fair concerns that we were able to quickly address through a deliberate and pragmatic process.

Course corrections are part of any healthy business relationship, and close communication with the client allows you to make them before you’re run off the road. It also shows them how fiercely committed you are to improving their experiences and outcomes.

The bottom line is, while every firm should be thinking about ways to operate better and smarter, before they rush to overhaul business models and cost structures, most attorneys should consider picking up the phone or jumping on a plane. Improving our client relationships, and changing our industry, isn’t a matter of technology or processes. It is a matter of listening and understanding what it means to deliver value, on the client’s terms.