© Sheppard Mullin Richter Hampton LLP 2006

Developing a Long-term Key Client Initiative

Amy RomakerLegal Marketing Association Annual Conference

March 11, 2010

Discussion Why start a client team program? What are the steps and who should be

involved? What should teams be doing and how do you

measure results? When and what to expect? Where do you go from here? Questions & Discussion?

Why Client Teams? Clear rationale for establishing client teams

– Strategic plan– Culture – Compensation incentives– Client oriented– Industry Focus– Executive Committee backing– Managing Partner/Administrative Partner

involved in process

Why Client Teams? Clients require an in-depth understanding of

their business and legal needs Clients are relationship driven not matter

driven when hiring law firms Clients expect high level of consistency and

internal communication and coordination Clients want efficient delivery of services Clients want their law firms to provide value

Why Client Teams? Increase face time with client

– Increase work – educate the client about firm’s capabilities

– Measure client retention Increase knowledge of client’s business

– Leverage opportunities to other clients– Internal education – create opportunities

Increase client profitability– More efficient deliver of service– Ability to leverage more work to associates

Increase attorney retention– Integrating associates and lateral on teams

The Steps Define your teams

– Top Revenue Clients – Look at your top 100 clients by revenue

– Be more strategic in the creation of new teams.• Focus our clients in industries poised for growth• Focus on clients with the most potential for growth• Relationship partner willing to participate in the program

Carefully determine team members– Review who is currently doing work for the client– Who currently manages the existing relationship – Add others based upon client needs and opportunities– Team and group research suggests a team with five to

12 members is the most effective size to be productive.

The Steps Develop client metrics and client profile

– Prepare an overview of the company for team members• Organization chart of key executives

• Organization chart of legal department (if applicable).

– Identify key issues facing the company– Find out who the competition is

• Determine what other law firms the client is using

• Determine how much and what type of business the client is doing with the competition

• Determine client’s total legal budget.

– Have a thorough understanding of the work the firm is currently performing for the client

The Steps Initial team meeting

– Team members share their knowledge about the client. • Who we know at the client.• Who are the decision makers.• What type of work are we currently doing for the client.

– Determine team protocol• Leader. • Team meetings.

• Action items – hold people accountable.– Review revenue reports generated from accounting

system.– Target new lines of service for the client.

The Steps Develop a team communication program

– Document client relationships – CRM database. – Document client history/relationship – Firm Intranet.– Maintain plan and action items – Firm Intranet– Calendar meetings - Outlook – Monitor results and develop metrics – Firm Accounting

System

Things Teams Should Do Develop an action-oriented client plan.

– Assess client needs – Determine team goals

• Increase Client Satisfaction and Loyalty• Increase Revenue/Profit• Protect and Expand Relationship• Cultivate deeper relationships at all levels.

– Determine who at the client should be the key point of contact

– Develop written plan– Regularly track action items

Things Teams Should Do Know more about our clients business and

business structure.– Industry trends– Competitive landscape– Products and services– Areas of growth

Consider what, if any, products we could develop for the client

Things Teams Should Do Developed value-added services

– Seminars– CLE programs– Form banks– Secure extranet– Identify events where we can partner with the client in

either industry or trade events, charitable events, or other social events.

– Determine what type of entertainment events would be appropriate for the team to take on as a group.

– Invite clients to participate at a team meeting– Identify media opportunities and publications in which we

want to get press regarding our activities with the client.

Things Teams Should Do Team Monitors and Report Results Team Continually Maintains Client Contact and

Updates Plan Measure client retention

– Implement a client survey and assessment program.• Annual survey• End of matter survey

Keys to Success Truly assess the client relationship or depth in an

industry from the start. Choose leadership that will:

– Be action-oriented. – Involve others and delegate responsibility.

Define roles and responsibilities for team members. Develop a solid cross-disciplinary team and involve

others not currently doing work for the client. Collect, compile and share knowledge within the

team and with the firm.

Keys to Success Acquire knowledge of the key players at the client

or industry and meet them. Regular team meetings (1/2 hour or less).

– Focused on client matters and client service improvements.

– Assessing needs and devising solutions when available.– Boosting our profile with the client.– Identifying opportunities for additional work.– Meetings with the client scheduled and very successful.

Development of metrics to measure revenue performance.

Keys to Success Development of written plan (no one size fits all). Build a better technology infrastructure to support

teams– New and Improved Pipeline pages.– Coding of clients by industry. – Improved taxonomies for type of matter tracking.

Is your client team program working? Are the key components at work?

– Strategic plan– Culture – Compensation incentives– Client oriented– Industry Focus– Executive Committee backing– Managing Partner/Administrative Partner

involved in process

What are the push backs? Perceived as a marketing or cross-selling Lack of follow through by team members Too many meetings – competition between groups No meaningful results - lack of metrics to measure

return on investment or other goal achievement Wasted time as a result of unclear roles and

responsibilities – don’t have the right leader Team interlopers are focused on “what’s in it for

me” rather than the team No tangible benefit to team members

The competition is fierce

Are you getting results? Does the team have an in-depth understanding of

client’s business and legal needs? Are team relationships at the right level? Is the team relationship driven not matter driven? Does the team have a consistent internal/external

communication program with the client? Have you set service level standards? Is the team providing value outside of legal

services? Have you created metrics to measure results?

Sample Metrics

Sample Metrics

Are you getting results? Has the team increased and tracked face time with

client? Has the team leveraged opportunities based upon

work for other clients? Has the team focused on a way to deliver more

efficient service and leverage more work to associates?

Has the team integrated associates and lateral on teams?

Is the team doing end of matter surveys? Is the team providing an annual letter to client?

Annual Letter to clientsDear ____________________:On behalf of Sheppard Mullin Richter & Hampton LLP, I would like to thank you for the opportunity to act as outside legal counsel to __________________________ during the past twelve months. The Sheppard Mullin team has enjoyed working with your very talented staff. The cooperation and teamwork between our two groups has made a real impact on the outcomes we achieved as well as the productivity and efficiency with which we achieved these results. I cannot tell you how much the efforts put forth by your staff have aided in accomplishing the outcomes __________________________desires.

As we move into next year, we look forward to our continued business relationship and the continuation of a true partnership that has formed between our two organizations. As we think to the future, I am reminded of some of the activities that have taken place over the past year. The following is a partial list of their highlights for your review and the individuals who were an integral part of the _____________________/Sheppard Mullin legal team.

Lessons Learned/Best Practices Use partners strategically Use staff and associates for process portion Firm must reward good behavior Successes need to be leveraged across teams Flexibility – no team is the same Get to the key decision makers at client Focus on adding value Focus on client satisfaction – ask how are we

doing?

Where do you go from here? Use client teams to create key differentiators for

the firm Use client teams implement service standards

firm wide Use client teams to expand within a particular

client’s industry Use client teams as your basis for creating

industry teams where you have significant industry experience

Industry Teams & Client Teams Access firm depth in particular industries More efficient use of resources

– Marketing Resources– Leverage Expertise across all clients in industry

Opportunity to Target New Clients Opportunity to participate with key clients

Why industry teams? More efficient use of resources

– Marketing Resources– Leverage Expertise across all clients in industry

Opportunity to target new clients Opportunity to participate with key clients Bringing to bear that experience across office and

practice group barriers Integrate lawyers across offices and practice

groups Differentiating the firm from other firms Great recruiting tools for lateral partners

Industry Teams Use billing systems to determine where the firm as

critical mass in particular industries Assess the types of matters we are handling for

clients in this industry Determine key partners who work in this industry Build the team around those who have interest Survey team members Create team plan with specific attainable outcomes Create metrics

Team Member Survey1. Identify 2-3 areas in which you would like to support the

team business development efforts (blogs, presentations, targeting and pitching new clients etc.):

2. Identify 2-3 areas of expertise that distinguish you within the fashion & apparel industry:

3. Identify 1-3 new legal services that you think would be attractive to fashion & apparel clients:

4. Identify a 3 - 5 target clients for 2008.5. Identify at least 3 key individuals/contacts, referrals source

who can make an introduction to your 2008 targets.6. Identify at least one business organization (for profit or

non-profit), bar association or bar group that you commit to actively participate along with a brief explanation why it makes sense for the team.

Industry Metrics

Examples of Industry team work Brochures Newsletters Blogs “Why Us” – Key differentiator statements

Questions & Discussion