Marketing the Legal Mind: A Search For Leadership - 2014

Table of Contents

Note to the Reader

Acknowledgments

Dedication

PREFACE: Truth In Branding And Why It Matters

PART 1: PAID TO THINK

CHAPTER 1: The Challenge

Sharing the Pain

Business of Law

Legal Skills vs. Marketing Skills

Service

The Client’s Point of View

Thinking in Domains

Examination and Discovery

CHAPTER 2: The Client Experience

Marketing a Service

Service Is a Process, Not an End

The Zone of Contact

Positive Experiences

The Emotional Side

Knowledge Sharing

Service Based on Character

The Trust Factor

Accountability

CHAPTER 3: Becoming Client-Centric

Fulfilling Clients’ Emotional Needs

Marketing Gone Wrong

Emotional Vulnerability

Fear Is Multidimensional

Fear-Based Campaigns

Greed-Based Campaigns

Appealing to Ego: Romancing the Client

Focusing on Finding Solutions

Context Marketing™

Life Context

Becoming Client-Centric

Measuring Perceived Value

Loyal Clients/Lost Clients

Practical Concerns

Know Your Clients’ Dreams

Serving Businesses

The Big Fee Myth

PART 2: THINKING ABOUT THINKING

CHAPTER 4: Thinking Like a Lawyer

Thinking Like a Lawyer

How Many Cases?

Remembering Richard…

Left Brain/Right Brain

CHAPTER 5: The Self Inside the Lawyer

The Lawyer Personality

Thinking/Judging

Introversion/Sensing

Moving Beyond Our Interpretations

Select Your Point of View with Care

Language and Perception

PART 3: REINVENTING YOUR FIRM

CHAPTER 6: The Art of Firm Sculpting

Know Thy Firm

Developing New Questions

The Illusion of the Status Quo

Why We Need Clarity

Steps to Achieving Change

The Five Stages Toward Reinvention

1. Search for Leadership

2. Forming Your Inner Team (the Key Partners)

3. Finding Your Firm’s Vision

4. Drafting Your Firm’s Master Charter (and Creating Derivative Charters)

5. Bringing the Rest on Board (and Creating Strategic Action Plans)

CHAPTER 7: A Search for Leadership

The Partner Pole

You the Leader?

Genetics of Leadership

A Leader

The Best Leaders Are Perspective-Driven

Playing at Top Performance Levels

Knowing Your Game

Powerful Leaders Are Great Listeners

Listen to the Clients You Already Have

CHAPTER 8: Forming Your Inner Team

Going Beyond Conventional Approaches

The Size Factor

Small Firms

Midsize Firms

Large Firms

Who Will Lead the Leaders in Reshaping the Firm?

The Copycat

The Super Administrator

The Workhorse

The Rainmaker

The Best Type of Managing Partner

Beware of Toxic Partners (Toxics)

The Big Decision

CHAPTER 9: Finding Your Firm’s Vision

Where Is Your Firm Now?

Challenges?

Discovering the Big Challenges: Going to the Source

Finding More Challenges: Speaking with Your Clients

The Four-Step Inquiry

Examples of the Four-Step Inquiry

Facilitating the Four-Step Process

CHAPTER 10: Drafting Your Master Charter

The Power of Language

Your Charter

The Jefferson Test

The Defining Process

Begin with the Envisioned Charter, Then Work Backward

Bridging the Gaps with Strategic Action Plans

Putting It All Together

CHAPTER 11: Bringing the Rest on Board

A Great Master Charter Can Provide a False Sense of Security

Derivative Charters

How Change Doesn’t Happen

From Theory to Practice

Honoring the Process of Change

Making the Vision Relevant to Everyone

Starting the Change Process with Carefully Measured Steps

Success and Failure

A Funny Thing about Success…

Finding Success Is about Our Mind-Sets

Fighting Complacency

Keep the Firm Energized

Grow Leadership

Creating Leadership Teams

Teams and Technology

CHAPTER 12: Counselor-at-Law

Blind Advocacy

How to Achieve a Good Lawyer-Client Relationship

What Does It Mean for Clients to Count on Their Lawyers?

Epilogue

Afterword

References, Resources and Recommendations

What Professionals Are Saying About

Marketing the Legal Mind

A compelling and analytical roadmap to growing your law practice and a must-read for law firm leaders…

—TIMOTHY CORCORAN, MARTINDALE-HUBBELL

FORMER V.P. MARKET PLANNING

Henry Dahut’s book is wonderful and thought-provoking.

—LINDA HAZELTON, CHAIR EDUCATION COMMITTEE,

LEGAL MARKETING ASSOCIATION

This book is a must read for all lawyers. Henry Dahut really understands the art of law firm marketing.

—PERRY VISCOUNTY, LATHAM & WATKINS LLP,

PARTNER & CHAIR OF GLOBAL MARKETING COMMITTEE

This is a great book...it belongs with the classics of law firm management and service marketing...

—PM FORUM MAGAZINE, STEVE BARRETT, MARKETING STRATEGIST,

FORMER CMO OF PAUL HASTINGS

"This fascinating work combines business theory, human nature and even brain science in a compelling way.

—ARNOLD DEUTCH, M.D., UCLA CLINICAL PROFESSOR,

DEPARTMENT OF PSYCHIATRY AND NEUROLOGY

Henry’s book is a must read for any professional interested in excelling at law firm marketing…

—ALEISHA GRAVIT, CMO OF AKIN GUMP

This book guides lawyers step-by-step through the big-think and deep-think that are the essential foundations of successful legal marketing efforts.

—ANDREW ELOWITT, JD, MBA., FORMER CHAIR,

LAW PRACTICE MANAGEMENT COMMITTEE, STATE BAR OF CALIFORNIA

A must-read! This book presents compelling arguments for why legal professionalism must include business professionalism if law firms are to grow and prosper…

—HARRY RUFFALO, PROFESSOR,

UNIVERSITY OF WISCONSIN SCHOOL OF LAW,

AUTHOR OF A STUDENTS INTRODUCTION TO THE BUSINESS OF LAW

Henry Dahut brings marketing home from the lawyer’s perspective. He challenges the whole concept of traditional rainmaking. —JOSEPH ZELLMER III, ESQ.

This is a bold and unifying approach to law firm marketing. It is essential reading for anyone who is considering a leadership role at their firm. —JONATHAN MAILE, ESQ.

This book is a must-read if you’re a lawyer and should be mandatory if you’re thinking of becoming one.

—MATTHEW BEAUCHAMP, ESQ.

As a lawyer you will enjoy reading this book, but as a legal professional you will also be struck by the challenges it presents. —JOHN GILLIGAN, ESQ.

You may not agree with everything in this book, but you’ll find yourself nodding with delight all the way through.

—MONTI REYNOLDS, ESQ.

If you manage a law firm, read this book. Dahut’s insights into the evolution of firm marketing are vital for building a successful and thriving practice. —JESSE SANTANA, ESQ.

Henry Dahut has put his finger on a significant insight: We must learn to fully understand the clients’ perspective and therefore their heartfelt expectations of us.

—RITA A. KAHLENBERG, ESQ.

The challenges partners face in marketing and managing their firm are so vividly described and realistic, it’s hard not to get heartburn when reading this book.

—KENNETH DRAKE, ESQ.

This man understands the unique personal and professional challenges facing our profession. —BILL LIGHT, ESQ.

This book should be required reading in law school along with property and contracts. —MYRON MOSKOVITZ, ESQ.

This book made me feel good to be a lawyer.

—MICHAEL ANGELOFF, ESQ

A SEARCH

FOR LEADERSHIP

2014

Henry Alan Dahut

LMG Press

Marketing The Legal Mind

Revised Edition 2014

All rights reserved. No part of this book may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording or by any information storage and retrieval system, without the written permission from the author, except for the inclusion of brief quotations in a review.

This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that neither the publisher nor the author is engaged in rendering legal advice or other professional service for which the reader may rely, and therefore, the publisher and the author hereby disclaim any warranty, expressed or implied, or resulting damages arising from any of the matters covered in this publication.

© 2004 by Henry Dahut

Revised 2014

e-book first published February 2013

e-Pub e-book first published December 2014

ISBN: 978-0-9911136-3-7

Published by LMG Press

Note to the Reader

In my research for this book, more than one hundred lawyers, mostly partners, were interviewed nationwide. Over half of them belonged to large and established law firms. The rest were from regional firms and small practices. Early in the interview process, it became abundantly clear that if we were to have frank and open discussions concerning the lawyers’ individual struggles in dealing with the many personal and professional challenges of managing and marketing their firms, we would need to ensure them total confidentiality. To this end, we promised that neither the lawyers’ identities nor those of their firms would be disclosed or otherwise identified in the book. Consequently, where necessary, most of the individuals’ names, and even their firms’ regions and cities, were changed to ensure complete and absolute anonymity.

Acknowledgments

This book would not be possible without the willingness of so many of my legal colleagues to have frank and candid discussions about their personal and professional lives. At times our interviews touched on topics that were uncomfortable to discuss. Yet nearly all of them, to their great credit, pushed on and openly discussed their struggles in dealing with the many challenges of managing and marketing their firms.

I am also grateful for many friends inside and outside the profession of law and for the many scholars who have given me important feedback and encouragement. The material has been forming in my mind for a number of years, and many people have helped me along the way. I am grateful to them all, but here I am limited to naming only a few.

In particular, I would like to thank, in alphabetical order, the following people for their support, encouragement and generosity of thought: Stephen Albright, Michael Angeloff, Alice Barrett, Donna Beech, Stuart Berkeley, Gully Burns, Richard Chernick, Danniel Deublein, Arnold Deutch, Kenneth Drake, Paul Dubrow, Tammera Easter, John Gilligan, Frederico Grosso, Rita Ann Kahlenberg, Salman Khattack, Alan Kritzer, Lew Landau, Erica Levitt, William Light, Jonathan Maile, Lloyd Mann, Michael Michaels, Eugene Miller, Myron Moskovitz, Gregory Novotny, William Osterman, Charles Parselle, Celeste Prince, Todd Rash, William Relling, Jesse Santana, Jill Shigut, Laureen Vagonovitch, Lawrence Waldinger, and Joseph Zellmer.

For the development, design and production of this book I am also grateful to: Dunn+Associates (Kathi Dunn and Ron Hobie Hobart), Rowan Design (Christer S. Rowan), Michael Helms, Dan Poynter and Para Press, Danniel Deublein, Carolyn Wendt, Graffolio (Sue Knopf), and Barbara DeGennaro.

To Those Who Choose To Be

Healers Of Human Conflict

"You don’t have to fail

to become extinct;

you just need

to succeed less often."

CHARLES DARWIN

PREFACE:

Truth In Branding And Why It Matters

The economics of the legal market have changed considerably since the first edition of this book was published in 2004.

Over the last ten years, we have witnessed advances in law practice technology, the expanding roles of paralegals, and the outsourcing of legal work. Yet despite all of these cost-cutting and timesaving advantages, many law firms, especially the large ones, remain struggling for their very survival.

Only a decade ago, law firms were enjoying remarkable levels of growth and prosperity. Firm coffers were full and firms were spending significant sums of money on promoting themselves in order to enter new markets and acquire premium business. Some firms even began experimenting with branding.

In those days, branding was mostly viewed as just another form of advertising and promotion. In truth, firm leadership rarely understood the branding process or what the concept of branding was actually intended to accomplish. But it didn’t really matter, revenue was climbing and profitability remained strong. But what so many of these firms didn’t expect was that, in just a few years, our economy would be shaken by a deep and fierce recession, one which would shake the financial foundations of even the most profitable of firms.

For law firms, the recession that began in 2007 had, by 2010, penetrated the most sacred of realms—the proverbial benchmark of a firms standing and achievement—profits-per-partner.

For many firms, especially mega-firms, the decline in law partner profits were reaching record lows and it wasn’t long until the legal landscape was littered with failed firms both large and small.

In an attempt to deflect further losses, firms began to lay off associates and staff in record number. But the problems went much deeper. There simply were too many lawyers and not enough premium work to go around. It was a clear case of overcapacity, and it was also clear it was not going to improve anytime soon.

More than twelve of the nation’s major law firms, with more than 1,000 partners between them, had completely failed in a span of about seven years. Against this background, law schools were still churning out thousands of eager law graduates every year. Highly trained young men and women who were starved for the chance to enter a profession that once held the promise of wealth, status and stability.

As partner profits dwindled, partner infighting grew rampant. Partner would compete against partner for the same piece of business. The collegial team-driven identity and progressive culture that firms spent millions of dollars promoting as their firm’s unique brand and culture had vanished as quickly as it was created.

While financial times were tough, in truth many of the big firms had the resources to survive the downturn. Instead, partners with big books of business were choosing to take what they could and joined other firms—demoralizing those left behind.

To understand why this was happening, we must first remove ourselves from the specific context and internal politics of any one firm and consider the larger picture.

The failure and decline of firms was not only a crisis of economics and overcapacity, it was also a crisis of character, identity, values and leadership.

Sadly, the brand identity many of these firms pronounced as their own did not match up against the reality of who they actually were. In other words, for many firms, the brand identity they created was illusory—and illusory brands ultimately fracture in times of financial stress and instability.

The branding process, which I refer to in the book as firm sculpturing, was all too often viewed by firm leadership as just another clever form of market positioning, a process by which the firm created a compelling identity and then leveraged that identity against its competitors. Whether or not that identity was truthful was not really a matter of great concern.

While firms were branding and promoting themselves as dedicated, client-centric, congenial, team players, collaborative, principled, honorable, honest and forward thinking—in short, as a firm driven by its cherished beliefs and core values—in truth that brand identity rarely matched-up against the real identity. And not surprisingly, everyone inside and outside the firm knew it.

In the language of marketing, you could say it was a case of brand misidentification. In the language of psychology, it resembled a form of neurosis, disassociation and, ultimately, a profound detachment from reality.

Ultimately, the branding process must also be a transformative process in search of the firms highest and most cherished values. It is, and must be, a process of reinvention at every level of the firm—especially its leadership.

The transformative process is fundamental to building a true and enduring brand. Without it, firms run the risk of communicating an identity that does not represent them, and this is the danger, especially when the firm is tested against the stress of difficult times.

How this miscommunication of identity was allowed to happen varied widely from firm to firm. But generally speaking, while firm leadership was initially supportive of