Business Plans in the New Legal Environment: Setting Unified Goals
By Steve Nelson

In a previous article about drafting lawyers’ business plans, I outlined this five-step approach.

• Why will they buy?
• Who will buy?
• What will they buy?
• Why will they buy it from you?
• How do you get them to buy it from you?

While this is still a valuable outline in terms of articulating how one’s expertise can be marketable, recent developments mandate that lawyers go well beyond this in developing a business plan. Over the last six years, the legal market has become increasingly competitive, and firms have both increased their expectations for lawyer business development and shortened the time frame to produce results. In many firms, business development plans play an important role in compensation, and in some firms such plans are required of partners, of counsel, and even senior associates. As a result, firms are requiring that business development plans include general levels of activities and specific targets.

The 14-point approach to developing a business plan
In recent projects working with attorneys putting together a short-term business plan, our firm has developed a 14-point approach. Success is based on commitment to specific activities and execution of those activities, rather than on making vague references to speaking and writing and general networking.

1. The plan should first describe the lawyer’s expertise and its relevance, following the process outlined in my previous article. The rest of the plan should include the following topics:

2. Clients/Targets. In this section, the attorney should
a. List the current clients, the services that are expected to be provided by the attorney in the next year, and what additional business could be sought.
b. List the leading targets for new business, based on contacts, leads, or opportunities. This section should also indicate the help that might be needed to land new business, such as the fact that other firm lawyers might have to accompany him/her on the pitch. For certain types of practitioners, such as white-collar litigators, a key constituency is other lawyers, so there needs to be attention paid to whether there are certain lawyer contacts that need to be mined.

3. Challenges. Indicate the hurdles presented in obtaining these or other business opportunities. For example, clients may be migrating to providers with lower billing rates. Perhaps clients or their investment bankers are insisting on a “brand-name” firm to provide sophisticated corporate services. This is a great opportunity for attorneys to begin a dialogue with others at the firm to address institutional issues that affect business development.

4. Maximizing Leads and Networking Contacts. This should cover everything from what publications attorneys read to keep up with legal, business and industry trends, to what to do with business cards that one picks up at networking events. Attorneys tend to concentrate on the legal publications to stay current with recent cases and other developments. But attorneys need to do more – they need to decide what business publications to read, and then read them, regularly. In addition to following the trends in industry, staying current could help them pick up leads about new companies, or even consider new lines of business. Attorneys should think of it this way: If you were to sit next to your top prospect at a meeting or industry lunch, what would you talk to them about? (Hint: It’s not your expertise.)

Attorneys also need a good system to organize the data they receive, and need a regular time period each week that they are entering that data. Too often, business people just throw the business cards they receive in a drawer, with the idea that they’ll organize it someday. If attorneys don’t follow up on leads within at least a week, they’re missing the boat – and that boat will really never come back.

5. Business Associations. This should indicate not only the associations in which lawyers are involved, but also their commitment to a particular level of involvement. Just going to meetings isn’t enough. To get the most out of these organizations, deeper involvement is needed, whether it is in a membership committee (always a good idea since it requires one to contact everyone in the group on a regular basis), program work, or writing for an association newsletter. At the same time, one has to consider the value of particular organizations. If the lawyer isn’t making the right kind of contacts, he or she is better off devoting time elsewhere rather than keeping a half-hearted tie to the group.

6. Networking Groups. These can be formal or informal breakfast or lunch meeting clubs designed to keep up with developments in a particular industry, trade leads, or otherwise help each other with business. Effective groups can consist of anywhere from five to 20 people, each of whom provide a different service. Thus, many groups might have---in addition to a lawyer---an accountant, an investment banker, a real estate broker, a marketing consultant, a journalist, etc. If one can’t find or join a particular group, we recommend starting his or her own.

7. Civic Associations or Philanthropic Organizations. I wouldn’t recommend anyone to get involved in these organizations solely for the purpose of business development. However, that said, those who have a sincere interest in the vision and objectives of particular organizations can also benefit by meeting people with similar interests, some of whom may become strong networking contacts.

8. Personal Relationships (Schools, Sports, etc.). People, including this writer, often find it difficult or awkward to talk about business to fellow parents on the soccer field or friends at a block party. But one should at least know (which means find out) what everyone does for a living. Then, when it’s appropriate, one can always follow up with them at their office. And always bring business cards.

9. Media Opportunities. Depending on whether your firm has internal media people or an external media consultant or PR firm, or you’re on your own, lawyers can benefit by being in the press. If there’s no one to help, find the top reporters for publications that one’s clients read, and contact them. While it is easier to use a network to get a referral, one shouldn’t be afraid to cold-call them. When I was a legal journalist, I was always looking for sources to keep me informed on what was going on in the profession, and I welcomed the few people who cold-called me offering me either a story idea or a even a lunch. Ultimately, having direct contact with the press is a lot more effective than going through the firm’s public relations people after the initial contact is made, although the PR people, if any, should be involved; and one needs to be sure that the message is consistent with any message the firm wants to give.

10. Writing Opportunities. With the information explosion, there are infinitely more outlets than ever before for publishing opportunities. And as one public relations expert once told me, “It’s not about the circulation, but about the reprint rights.” So while it’s nice to get an article on the hidden perils of Sarbanes-Oxley, for example, published in Forbes, even if one can’t find a publisher and has to settle for publication in a firm newsletter or on a website, it can be quite useful because clients and prospects can be alerted by e-mail. One other tip: while lawyers might automatically send the article to existing clients, they might want to merely alert longer-term prospects to the article by e-mail or by phone. That way, they can find out who’s really interested in the topic, and open up a person-to-person dialogue about the issue.

11. Speaking Opportunities. This is a tried-and true business development opportunity. Sometimes, however, for those just beginning to establish a reputation, it’s tough to break in. As an initial step, one might offer to help find other speakers or work on the conference materials. Also, lawyers should address whether they need some public speaking training or coaching. A speaking engagement is not very productive if people come away thinking that the speaker is boring or verbose.

12. Methodology for Communication with Clients, Prospects, or Sources of Referral. As discussed earlier, serious consideration must be given to (1) making sure that there’s a good database of contacts, and (2) how best to communicate with them. This is one area where the firm’s marketing department should be of great help.

13. Internal Marketing. This is often ignored by both new laterals and long-time lawyers at firms. Given the rapid increase in the size of law firms today (isn’t it ironic that a 500- lawyer firm is now regarded as midsized?), relatively few lawyers in a firm will know that many of their colleagues’ backgrounds. So it’s incumbent that lawyers plan to attend as many interoffice functions as possible, to get involved in relevant practice groups and industry-focused groups, and to illustrate their interest in helping other lawyers within the firm. Remember that this is a two-way street.

14. Goals. No business plan is worth its salt unless there are measurable goals. These should include practice goals, financial goals and specific activity goals. Some of the activity goals will be incorporated in the topics above (e.g., I will write 3 articles, I will form a networking group, I will call two business reporters). Lawyers should be realistic, and set goals that will make them stretch.

Stephen Nelson, a former practicing attorney and legal journalist, is Managing Principal at The McCormick Group, an executive search firm based in Arlington, VA. In addition to conducting searches for lawyers and non-lawyers in law firms nationwide, he has handled business development consulting projects for law firms. Steve can be reached at 703.841.1700 or snelson@tmg-dc.com.

Steve would like to thank Stewart Hirsch for his insights and ideas. Hirsch, a former in-house lawyer, is a Boston-area client-development coach and trainer focusing on the legal industry. He can be reached at 781.784.5280 or s.hirsch@strategicrelationships.com.

Reprinted with permission from PROFESSIONAL DEVELOPMENT QUARTERLY
The author may reproduce and distribute this article without limitation, including by republication elsewhere. Copyright © 2006 Evelyn Gaye Mara. Address subscriptions and correspondence to Professional Development Services, P.O. Box 150306, Alexandria, VA 22315-9998, 703.719.7030, maraeg@profdev.com.