March 2010

What Do Clients Want?

by Ann Kruse and Colleen Yamaguchi

George interviewed four law firms before choosing one to help him start up his technology company (all situations described in this article are real; the names have been changed). All four firms had the necessary level of technical expertise. In the end, he selected the lawyer who “invested in building the relationship.” That investment showed in several ways:

• Time spent getting to know George and his new business idea.
• Giving a discounted rate up front to help George get started.
• Creating a shared understanding of how they would work together. After a couple of hours talking with his lawyer, George “had a good sense of what it would be like to work with the firm.”

Ken, general counsel for a national company, works with many lawyers around the country, from mega- to small firms. He values a lawyer who quickly picks up what he’s grappling with and the kind of advice that will help him do his job. For Ken, that often means an off-the-cuff summary of significant issues and pragmatic guidance as to whether it’s worth pursuing the matter further.

What frustrates him is the technician with a narrow perspective who focuses only on what can go wrong with each scenario Ken presents. He values the lawyer who offers new ideas and solutions and who anticipates what would be helpful for him and his company. “Sheer technical brilliance” is not enough.

Susan looks for lawyers who invest in their relationship by learning about her company’s business and way of operating. As senior attorney for a major global company, she favors firms that develop a team with depth to service her account. She is willing to invest in her outside counsel by providing them with insights into her company. In turn, she expects that information to be shared with other attorneys through training and mentoring, so that all lawyers on the team understand the company’s business, preferences, and points of view. This “seamless transition” greatly benefits Susan, and she prefers the law firm that makes it happen. One of her pet peeves is partners who hoard clients. She appreciates the senior partner who exercises good judgment in determining when and to what extent to be personally involved, and when to delegate to lawyers with lower billing rates.

Priya is a business owner who is thinking about “cutting the cord” with the law firm she has been using. At first she was impressed by her lawyer’s expertise. But she sees the senior partner on the team doing a lot of “project management” work. She wants to know that the fees she is paying are providing her with real value. Her attorney has not been willing or able to engage in a meaningful conversation with her that will give her that assurance.

The authors of this article have spoken with business owners, executives, and senior in-house counsel to understand what attracts and repels them when it comes to choosing lawyers and law firms, particularly in this economy. While fees and competence are important to those who purchase legal services, they also mentioned other key, and often decisive, factors.

One theme stood out in terms of what clients want: Clients most appreciate lawyers and law firms who demonstrate a willingness to “partner” with them. This shows primarily in three ways.

1. Clients want to know that their lawyers understand and care about them, their business, their issues — in other words, lawyers who “get” them. They want their lawyer to:

• Spend time getting to know key factors affecting their client’s business and operations.
• Be able to figure out, when their client calls, what is needed and when, and then deliver accordingly.
• Put themselves in the client’s shoes so that they can respond in a way that is not just technically correct, but also helpful.

2. The one-on-one relationship is important. Even when the relationship is institutional, the individual in-house lawyer will likely, when given the chance, choose to work with the lawyer (not necessarily the law firm) with whom he has the best personal connection. Lawyers develop loyal clients by engendering trust. They do this by (a) consistently being on point with advice that is responsive to their client’s needs; (b) showing self-awareness as to strengths and limitations and not “winging” it when they are out of their depth; and (c) being genuine (not a “schmoozer”).

3. While clients are concerned about fees, they focus primarily on value. They tolerate high fees when they are confident in the value they are receiving and when they know their lawyer is being judicious in deciding the extent of work to be done and who on the team handles what work. Value is a function of perception, and a lawyer who can appreciate the larger concerns of his or her client will be better equipped to address the issue of value without becoming defensive.

What turns clients off? Quite simply, not being helpful. Our interviewees were very vocal about this! They dislike lawyers who:

• Respond narrowly to just the questions asked directly, who only poke holes in proposals, and who don’t think about other scenarios or possibilities or the “big picture.” This leaves the client feeling exposed and stressed. They prefer — and feel supported and strengthened by — counsel who offers other possible solutions.
• Take a formal legal opinion approach in responding to every request for advice. Often the client prefers the lawyer’s off-the-cuff, pragmatic reaction to the situation.
• Deal only in theory or whose every answer starts, “It all depends.” Clients operate in a world where decisions and actions are required. Lawyers who don’t help their clients make decisions and take action will frustrate more than help their clients and will not be seen as valuable.
• Are not appropriately supervised or mentored, leading to unpolished work and having little insight into the client.
• Write or communicate poorly in a way that is not sensitive to the needs and demands of their client. This can include overly long e-mails, writing in “legalese” rather than plain English, or being off point.
• Are abrasive or arrogant, acting as though the client should appreciate the privilege of working with them.
• Are not available, especially if they are not forthright about their tight schedules.
• Don’t solicit feedback, or upon receiving feedback, don’t make modifications in response to it.
• Are not sensitive to the financial limitations of a “bootstrap start-up.”
• Do work that has no clear value for the client, fail to communicate the value of their work, or who, as senior lawyers, do work that could be assigned to a more junior (and less expensive) lawyer.

In addition to what we heard in our interviews, we found additional insight in the 2008 Managing Outside Counsel Survey, a collaboration between the Association of Corporate Counsel (ACC) and Serengeti Law, which provides law departments with a widely used system for electronic billing and matter management.

Among the 337 corporate law departments that participated in the survey, over 40 percent reported that they have terminated relationships with some of their outside counsel during the prior year. Specific reasons for termination included lack of responsiveness, costs that were too high, and poor work product or results. Of particular interest, notes Serengeti’s Rob Thomas, the author of the survey report, is that one-third of the respondents now cite “communication and personality issues” as a major reason for termination.

According to Thomas, “An important message for law firms is that they should consider redirecting at least part of the time and money that they are spending on new client marketing to assess and address existing client concerns.”

There is no one formula lawyers can follow to attract or retain clients. Instead, each lawyer has to be sensitive to the needs and preferences of the individual client. This requires tuning in to clients and effectively communicating, not simply about the legal issues, but also about the relationship and how things are going.

Lawyers who take the time to really listen to their clients, who pick up on cues and feedback, and who respond not solely on the narrow legal issues presented but more broadly in a way that is helpful to that client, will be better able to understand how they can add value for their client and then communicate the value that justifies their fees.

As a profession, we lawyers do not take naturally to seeking, accepting, and acting upon feedback. We tend to be perfectionists who want to cover every base and not show vulnerability. In avoiding feedback, however, we decrease our ability to relate to and best serve our clients. The lawyers and law firms who serve clients most effectively have the mindset that “feedback is good” and take the time to (1) seek out feedback from clients and (2) acknowledge and respond to the feedback by reporting changes that will be and have been made. This is fundamental to understanding clients’ expectations and how we, as counsel, are doing in meeting those expectations.

In today’s market, with abundant talent and computerization that can increasingly level the playing field, lawyers can no longer differentiate themselves based simply on technical expertise. What matters more is how they discern and respond to client needs and the nature of the relationships they build.

Colleen Yamaguchi, J.D., MBA, is a lawyer and professional certified coach focusing on leadership, professional development, and transition. In coaching professionals to help them in their careers, and in her leadership development work, she draws on her 20-plus years’ experience as an international transactions lawyer, both as partner in global law firms and as senior in-house counsel. She can be reached at 206-228-4827 and c.yamaguchi@comcast.net. She is located in Seattle. Ann Kruse, J.D., MSO, is a lawyer and leadership development expert. She is the creator of the Client-Centered Advisor Program, which helps lawyers develop deep, enduring, and high-trust relationships with clients. Her website is www.annrkuse.com. She can be contacted at 425-391-1882 or ann@annkruse.com. She is located in Sammamish. The authors thank Mary Jane Pioli for contributing perspectives from clients she interviewed. Mary Jane is an executive coach, group facilitator, and business strategist whose practice includes coaching lawyers.