This article was written by Rachel Nickless, Leadership Online Editor for the Australian Financial Review (AFR). It was published on 2 March 2007.

Skills Before Thrills

After shelling out millions on branding and marketing, law firms are going back to basics and urging their lawyers to develop a better relationship with clients. The trend is affecting everything, from the way lawyers are being trained to recruitment strategies and sales budgets.

"We want to spend less money on glossy corporate brochures telling clients about the firm and put more effort into developing insightful thought leadership relevant to the specific issues that our clients face," said Minter Ellison chief executive Guy Templeton.

His firm started focusing on helping its lawyers develop better client service skills 18 months ago. At the same time it launched a program to boost lawyers' commercial understanding in six key industries.

"Our research shows we have the highest brand awareness of any firm, but that's not the only reason clients choose a firm," he said. “While the firm's total spending on marketing and business development has not changed, there's a 20 percent shift from general marketing to very specific and targeted business development."

The move by Minter Ellison confirms new research findings (Nov 2006) on law firms from marketing and business development firm PTB Consulting (now Prodonovich Advisory). Sue-Ella Prodonovich, principal of PTB, said the popular trend towards business development was because branding had given clients an "empty awareness" of firms in a highly competitive marketplace.

"Over the past five to seven years, law firms invested significantly in building their brand," she said. "While buyers of legal services are more aware of the number of firms they can choose from, they don't know what these firms stand for, what differentiates them.”

Law firms hated the term ‘sales’, but their new enthusiasm for business development was sales by another name, she said.

It involved everything from client segmentation analysis, prioritising clients and prospects, key client programs, to one-on-one meetings with potential and existing clients to pitch strategies.

Executive recruitment firm Seldon Gill Consulting has also released a survey of 75 senior marketing directors across Australia and Asia. The survey found firms were investing more time and resources on getting closer to their clients than ever before.

Graham Seldon said "80 percent of participants said almost all of their time is spent on client development over general marketing communications activities, supporting the view that there has been a shift away from the soft side of marketing - such as websites, newsletters and internal communications".

Law firms are changing their approach to business development training as a result. Jane Hanks, a senior consultant with PTB Consulting, said firms were "moving down a rung; traditionally they just trained partners but now they are training senior associates [in business development]".

Freehills is taking it a step further. Its national human resources director Adele Brady said Freehills graduates would receive business development skills training "to help young lawyers establish and develop relationships with their clients". There was also a much greater emphasis on ensuring graduates understand clients' businesses to "present legal advice in a commercially relevant way".

"Previously we touched on it a bit but it was seen as more of a partner issue," Ms Brady said.

Ms Prodonovich said a number of law firms were also considering following accounting firm PwC’s lead in setting up rotations with the business development team. The focus on client relationships was also affecting the types of lawyers firms were recruiting, as there was now an increased emphasis on emotional intelligence, not just high IQs.

Many firms are now eager to recruit business development staff from other industries which have a stronger sales culture.

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Sue-Ella is the Principal of Prodonovich Advisory, a business dedicated to helping professional services firms sharpen their business development practices, and attract and retain good clients.

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