Spring 2015 issue of Horizons

LAW FIRMS

The Impact of Client Service Measurements on Firm Profitability Many law firms say they have a commitment to client service, but until it is tied to partner compensation, it would be difficult for any service quality program to become institutionalized throughout the firm. The implementation of a consistently applied service quality program will help a law firm continuously improve. Clients will bring matters to the firm’s attention that firm management were not aware existed. Some matters may represent improvement opportunities for client service teams, but opportunities to explore further can also present themselves, leading to new work. Even if no follow-up opportunities are present when soliciting feedback from clients, a formalized program will create deeper relationships and create raving fans of the firm, which will result in additional future work. At an overall firm level, work won from existing clients tends to be more profitable than winning work from brand new clients because the marketing and “pursuit” hours are not necessary since the relationships have already been established. In addition, satisfied clients that turn into raving fans usually result in referrals, which is the easiest way to develop relationships with new prospects. The impact of developing a program to measure client satisfaction provides attorneys ways to enhance their profitability by helping them understand where their strengths and weaknesses are in addition to whether their technical abilities are having maximum impact on the clients they serve. While the tools and methods are straightforward, they are often underutilized throughout the profession. By implementing and consistently applying them, not only can a firm consider its technical abilities a hallmark, but it can add superior client service to its resume, as well.

If enough responses are received, firm management can use the responses to evaluate individual partner performance. If some partners do not have as many client responses attributable to them as others, it may be necessary to have partners reach out to their clients to request the completion of their questionnaires in order to provide firm management with the required information. An evaluation of each partner’s ability to provide superior client service can also be made a required element of every firm’s partner compensation system. The power of using questionnaires to supplement this evaluation process can provide additional support for a firm’s compensation committee when determining a partner’s compensation adjustment. Client Visits Conducted by Firm Executives Another tool to consider when developing a firm’s service quality program is, on a sample basis, having one of the members of the firm’s executive committee (i.e. the managing partner or chairman) reach out to clients to make appointments to visit with them face-to-face. The purpose of the meeting between the client and the firm executive would be to obtain feedback directly from the client regarding the firm’s performance on the project or engagement in addition to providing the opportunity to another member of the firm to become a business partner with the client. When clients are engaged by other partners and leaders within the firm, the relationship is usually made stronger simply due to the client being granted such special attention. The client will think “the firm must really care about our relationship if they are sending the managing partner or chairman out to discuss the project they completed for us.” Feedback solicited from the client during this meeting should be directly communicated from the firm executive to the partner and to the team that completed the project or resolved the client’s matter.

page 52 | horizons Spring 2015