Post #921

How Integrated Are You in Your Client’s Industry?

I have learned from some of the best rainmakers that the most fertile ground for building their practice within any given industry is through active trade association membership. That assertion should be obvious to anyone interested in developing a Go-To presence within a given industry, but I rarely see evidence of action. In fact, when I inquire as to which industry or trade associations the members of any industry group are active within, I will rarely elicit more than one association name and that association is usually the prized possession of one of the most senior partners in the group – “so it’s taken.”

This assumes that any given industry will only have one association representing industry participants. But as I outlined in a previous article on how industries splinter into numerous sub-industries (GET GRANULAR), there may indeed be a larger number of sub-industry groupings. The attached Ag and Food Industry illustration is one example showing 22 sub-industries groups comprising over 57 various trade groups.

Let’s remember just a few of the BENEFITS from being active in any Industry Organization:
• can enhance your professional reputation as evidenced by your investment of time and energy in being actively involved;
• offers opportunities to work with members on projects that increase your profile and exposure;
• offers a framework to connect with C-Suite decision-makers;
• provides a sounding board for identifying and exploring common problems that you can help with;
• helps you understand the internal dynamics and language of the industry, and develop your skills through participating in industry-specific educational events;
• keeps you informed of emerging trends – how the industry is growing and changing.

Meanwhile, here are some PRESCRIPTIVE ACTIONS to consider taking:
• Identify a significant problem, from the latest regulatory hurdle to disruptive consumer expectations, of great concern to member companies.
• Author and provide industry members with a prescriptive White Paper or Case Study to position yourself as a thought leader on the specific issue. 
(The association may have a listserv or email directory of members that share an interest in this chosen topic.)
• Inquire of the association whether they would host, and also participate and contribute content to, a Webinar for member firms to detail action plans and answer member’s questions to help address this issue.
• Compile a target list of members and their particular issues as your best prospects.  Explore offering in-house presentations for this group at one of their C-suite meetings or perhaps via webinar (or both).
• Consider engaging in joint marketing with one of the association’s other (non-competing) professional service member firms, that also has interests in serving this particular industry.

SO, get out there and get involved in these many Industry Associations!

Post #920

Should Lawyers Have an Ethical Obligation To Be Efficient?

I happened upon a insightful post on Artificial Lawyer posing a similar question:

https://www.artificiallawyer.com/2022/02/14/what-if-lawyers-had-an-ethical-obligation-to-be-efficient/#comment-45618

“What if lawyers had an ethical obligation to be efficient, and that failing to work as efficiently as ‘reasonably possible’ could lead to disbarment and/or financial penalties? One thing is for certain, market change would be hugely accelerated.”

This was followed by a lengthy discussion on what is meant by being efficient and what would an efficiency rule look like and how technology might be involved.

As you might well expect if you have read any of my rants about this obsession with efficiency rather than effectiveness, I could not contain myself.  So I posted the following:

“Ask a group of partners to (anonymous poll) respond to this question: "What percentage of your work could you delegate to a junior to do, given that the junior was trained to do the work with quality?" Now prepared to be shocked by the answer. I have personally done this at retreats dozens of times and the average is about 70%!

Now STOP the bullshit about Efficiency and just impose a non-negotiable rule: "Any client matter that COULD be delegated, MUST be delegated - or your billable numbers will be stripped out of your personal column.”

Now I can report that there are a couple of firms that I’m aware of that have imposed this policy knowing that anything short of being this specific about the required behavior will only be gamed by smart lawyers.

Could a firm implementing and promoting such a policy win the favor of clients and meaningfully differentiate themselves?  

What do you think? 

Post #919 

Going The Next Step: Multidisciplinary Industry Teams

(this is an excerpt from my new book – Industry Specialization: Making Competitors Irrelevant)

Many, if not most, of the complex situations for which clients employ professional firms are inherently multidisciplinary. For example, if I am going to build a new commercial real estate park, I am likely to need expert advice on law, finance, tax, economics, engineering, environmental considerations and a whole host of additional disciplines. 

Meanwhile, according to a report by LexisNexis Legal & Professional, the Big Four accounting firms are cornering the market on solutions, rather than advice. 

“Our strategy is very much rooted in the needs of the client to be offered solutions and not just advice,” says Emily Foges, Lead Partner for Legal Managed Services at Deloitte. “The vision for Deloitte Legal has always been that you bring together high-quality legal advice with legal management consulting, legal managed services and legal technology. This way you can provide a complete end-to-end service to the client and achieve the outcomes they are looking for, not just give them advice on those outcomes.” 

Over the course of working with the leader and members of a number of Industry Groups wherein we are discussing and exploring the team’s future growth strategies, amongst a deliberate sequence of questions that I’ve posed, includes this one . . . 

May I invite you to read the remainder of this article in the newly released issue of Legal Business World starting on page 38     PDF: https://lnkd.in/ery5p8gZ 

Post #918

My Newest Book 

“Industry Specialization: Making Competitors Irrelevant” https://bit.ly/3KrrXwf  

I am pleased to report a total online readership of just over 12,000 in the three weeks since it was released, according to metrics just reported to me from Legal Business World.

Post #917

Professor Gabe Teninbaum in Today’s Lawtomatic Newsletter 

graciously commented:

Patrick McKenna has a terrific new book. 

There are two things I especially liked about it: first, he's been helping law firms become more effective and efficient for a long while, and he shares several anecdotes in the book that support his theories.

Second, it's actionable: there are concrete steps that anyone can take once they've read it.  

https://tinyletter.com/gteninbaum/letters/lawtomatic-newsletter-issue-144

Post #916 

How Industry Specialization Can Help Firms Get Ahead

Aebra Coe at Law360 kindly interviewed me on the release of my new book, encouraging law firms to more aggressively approach an industry sector-focused strategy . . .

In the book, titled "Industry Specialization: Making Competitors Irrelevant," McKenna points to the virtues of organizing a law firm by industry group as opposed to practice area and lays out how firms can do so.

According to McKenna, most law firms fall short when it comes to industry specialization.

"For too many of these firms any pretense of having a real industry focus is simply a list of industries displayed on their website, without any recognition that perhaps the clients can discern the difference," McKenna said in an interview with Law360 Pulse on the new book.

Here, McKenna shares his thoughts on how to best approach industry specialization as a law firm and how to market that expertise to clients. This interview has been edited for length and clarity.

https://lnkd.in/gnvty3sj

Post #915 – January 26, 2022

Will More Law Firms Follow This Example?

Reed Smith, in looking to add perspectives from outside of the legal industry to guide its strategic thinking, just appointed three business executives to a special independent advisory board.  Apparently this board will work with the global managing partner and the rest of the firm’s senior management team.

In a discussion with American Lawyer’s Dan Packell, I reported that while this may sound “unprecedented” within the legal profession, it is quite common amongst the larger accounting firms. In fact my research indicates that those broad industry groupings most likely to engage in having a formal Advisory Board include Professional Services - 41%; Industrial and Resources – 19%; and Health and Life Sciences – 11%; 
with some 90% reporting a positive impact.

Meanwhile, it’s reported that a number of law firms, particularly in the U.K., have begun bringing on individual independent directors, who are not lawyers, to join their boards.  In published comments, I suggested that the addition of outside advisers would likely help law firms expand their “cognitive diversity” and that the next step for Reed Smith  would be to transition this group, after the board becomes comfortable, making them a natural part of their monthly meetings. Then we’re talking about a significant achievement.” 

So what do you think?  Do we have some more law firms who are ready to join in making this kind of an innovative move?

https://lnkd.in/gVfQ_49n

https://lnkd.in/gYyJZw2u

Post #914 – January 20, 2022

Do You Know the Biggest Mistake Many Firms are Making Today? 

Today, more than ever, prospects are searching for subject matter experts and trusted advisors to help solve their problems. So, for you to be successful, it takes focus, specialization, recognition and authority to stand-out in an overcrowded, highly competitive legal market with risk-avoiding, impatient buyers who can find numerous alternative providers in short order (and I’ll show you the research evidence).

In other words, you need to have a deep understanding of the critical business challenges, speak the language and have experience in solving the pain points of your targeted clients – most effectively by way of having first-hand industry knowledge. 

Read the NEW eBook “INDUSTRY SPECIALIZATION: 
MAKING COMPETITORS IRRELEVANT” to learn:

- the 12 best diagnostic questions to evaluate whether you have a genuine industry focus;
- steps to take to form a new industry group; 
- the best ways to have your people explore any industry’s revenue and growth potential;
- 7 steps to take to make your industry group efforts worthwhile;
- common failings that clients observe and discuss amongst themselves;
- 4 different kinds of meetings capable of producing high performance with your industry group; 
- 12 actions to position yourselves as recognized industry thought leaders; 
- 10 actions to effectively monitor industry trends;
- what to do if a chosen industry initiative falters;
- how to utilize sales professionals in representing your industry team to the marketplace; 
- how to develop a truly multidisciplinary industry team;
AND so much more (17 Chapters / 290 Pages)

Here is what a couple of this eBook’s initial reviewers had to say: 

Your content is absolutely on point and reflects much of our experience over the past 8 years after we aligned our firm into industry business units (with full P&L responsibility).
- Paul Eberle, Chief Executive – HUSCH BLACKWELL LLP 

The tone and directness really appealed to me. “Do this, don’t do that. Think about this, don’t forget that” is exactly what is needed and can only come from years and years and the many firms you have seen succeed or fail. No shortcuts, no magic wands but a logical, sustained and committed approach – is what’s called for. 
- Gillian Ward, Global Chief Marketing Officer – BRYAN CAVE LEIGHTON PAISNER 

Find Out How Having A REAL INDUSTRY FOCUS
Can Make A Meaningful Difference to Your Firm’s Competitive Position. 
Download Your COMPLIMENTARY PDF Copy:  https://bit.ly/3KrrXwf

Post # 913 – January 17, 2022

The Big Four Are COMING For You; So When Are We Going To Learn?

Ernest & Young’s EY Law has just laid out some ambitious growth plans for its legal business. It declared that they are aiming to add up to 800 lawyers over the coming 3 years. And upon what are they going to base that growth on, you might ask. Philip Goodstone, head of EY Law, in an interview said, “a “big differentiator” for the firm would be its FOCUS ON INDUSTRIES, including the financial services, energy, renewables including ESG, automotive and manufacturing. And from Alan Murphy who heads EY Law Ireland, comes the observation, “I think the Big Four are capable of being very strong competitors to the traditional law firm model, because I think what the Big Four have to offer makes sense to clients.”

What makes sense to clients?  That clients should actually favor firms that demonstrate industry expertise?  Does he not think that his major law firm competitors are not already well entrenched in having an industry focus? Oh, that’s right . . . I guess most really aren’t.

This news should serve to raise significant concerns amongst law firms everywhere about the plans of such powerful market players; but that said, are they even paying attention and if they are, do they understand the strategic approach of these firms focusing on client industries?

One of the major problems is that law firms and lawyers do NOT understand the intricacies of industries. As but one example, The Legal 500 is seeking submissions for its US Ranking of law firm practice and industry groups. The purpose of these rankings is “to help in-house lawyers and legal teams find the right advisors.” Amongst the list of Industries in which you can enter your firm to be considered include “Environmental” and “Native American Law.” Important areas of practice to be sure, but are these really industries and especially when you cannot help but add “Law” to the title? Then their categorizations go on to include “Media, Technology and Telecoms” . . . all lumped together as one industry? Digging deeper you can find “Cyber Law” (there is that “Law” term creeping in again) and “Fintech” included under this heading. 

Meanwhile, following from over 5,000 interviews with top legal decision-makers, my good friend, Michael Rynowecer of the BTI Consulting Group reports that “Understanding Your Client’s Industry is the SINGLE BIGGEST DIFFERENTIATOR among law firms.” 

INDUSTRY BECOMES HIGHLY RELEVANT as it becomes a proxy for understanding many aspects of your client’s business – such as: industry terminology; kinds of products and services offered; industry specific revenue sources and revenue recognition issues; common contractual terms; industry specific laws and regulations; typical business practices; types of talent employed; technologies used; and supply chain structure and practices.

So WHEN Are We Ever Going To Learn?

Post # 912 - January 13, 2022

Alterity ADR Appointment

Alterity ADR is excited to announce the addition of Patrick J. McKenna to our esteemed Advisory Board. As an internationally recognized author, strategist, lecturer, and advisor, Patrick brings a unique perspective to the Advisory Board. With decades of experience in law firm management and marketing, Patrick’s knowledge and expertise will be a valuable addition.

"I am honored to be included as a member of Alterity's esteemed advisory board, especially because I strongly support and believe in Marcie Dickson’s quest to provide a needed service focused on bringing diversity and transparency to dispute resolution."

Read our announcement here: https://loom.ly/kY9th2Y