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PM Forum - Leeds
MPF/FT Roadshow gives insight into client perspectives
Managing partners of Yorkshire law firms were given an enlightening presentation about the effectiveness of their relationships with clients when the MPF/FT Roadshow visited Leeds on 21 June.
The Roadshow has been touring the UK reporting on the findings of a comprehensive report which last March surveyed 400 clients and firm leaders - believed to be the first time that the perspectives of such a large number of CEOs have been contrasted with those of senior partners. Richard Chaplin, Founder & Executive Director of Managing Partners’ Forum, highlighted some of the more striking findings – for example, did you know that CEOs are incredibly influential in appointing a law firm? Apparently, 76 per cent of CEOs said that they were primarily responsible for selection.
Another surprising finding was that more firms over estimate the importance of price as the most critical selection factor for clients when allocating work. Another disparity was that recommendations are far less important to clients than firms believe as are reputation and brand. It also seems that clients are more adverse to external outsourcing than firms think.
When selecting lawyers for complex work, specialist legal expertise counts for less to clients than understanding the industry and having an international focus. Another ‘disconnect’ in perception is that firms anticipate far more pressure than clients for fixed fees and new types of services and are more concerned about taking on support roles to in house teams.
Healthy Relationships
For clients, healthy relationships thrive on quick solutions, know-how, trust, communications, transparency and senior or ‘C Suite’ links. Interestingly, clients felt that a relationship between the CEO and the managing partner was very important, whereas firms felt it was almost irrelevant. Understanding the client’s business and long-term goals are also key. In terms of factors which would damage the relationship, clients cited slow response, lack of transparency, inappropriate advice and a sales-orientated approach as the worst offenders. Informal discussions are the CEOs preferred way of client satisfaction.
Clients also revealed that they would welcome a broader dialogue with other functions within the firm such as technology, communications and finance which they believed could all add value to their own businesses. According to clients, firms are strongest in technological know-how, and the research showed that firms consistently underrate their performance, especially for communications and account handling which clients felt were good. In terms of channel effectiveness, firms’ use of social media, extranets and digital media is seen by clients as being the least effective. Clients also felt that the areas where firms were seeking improvements to processes used to deliver know-how were not actually the ones where clients were dissatisfied.
Apparently, only 40 per cent of firms are tracking individual fee earner performance in terms of client satisfaction and 30 per cent are not linking performance with compensation. Thirty per cent of clients say measurement of performance and client satisfaction is ‘not at all effective’; 20 per cent see sharing information about priorities as being equally ineffective.
So what can firms learn from these findings? Richard Chaplin suggested the following know-how implications:
- Create systems to provide your fee-earners with sector briefings
- Explore non-traditional know-how channels
- Re-allocate your investment in know-how processes to areas of client dissatisfaction
- Help your partners embrace a digital world
Firms can work with client implications by:
- Looking for ways to improve fee-earners’ speed of problem solving
- Improving speed and frequency of client communications
- Sharing priorities with clients
- Ensuring fee-earners deliver across all relevant client touch points
- Avoiding being too sales-orientated or expecting too much from brand/reputation
- Getting to know your equivalent at the client’s C-Suite; they will probably welcome the approach
To see the report in full, visit http://ftcorporate.ft.com/resources/
Susan Reid
Appeal PR
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