May 13, 2005
Is your firm overselling itself?
In the INTERACTION section of the May 2005 Corporate Legal Times, Nat Slavin tells readers, "Don't Be Fooled by Law Firm Hype".
Slavan writes, “…the most important question is the one that you should be asking yourself: Is the firm overselling itself? Most likely the answer is yes. Law firms of all sizes are under intense pressure to create a one-stop shop for their clients. And they will do anything to portray themselves as such.”
This is another bit of evidence that there are two certainties in life and business - change is constant and we are always judged by others. His comments also reflect a natural tendency of your competitors to develop the Maximizer Weakness that Peter Drucker anticipates. The maximizer law firm tries to specialize in so many different practice areas that its operating cost becomes too high and its expertise too low compared to more narrowly focused law firms.
It also validates the Rule of the Fewest that I will discuss in a few days. Here is the rub. You can’t try to be good at everything without becoming just competent in a lot of things. When you try to promote your firm as a “one-stop shop”, experienced consumers of legal services (corporate counsels) see right through it and your credibility takes a dive.
Slavan's basic message is that bigger isn’t better. Contrary to the one-stop shop image, law firms want to portray, there is a long history of specialization in this profession. It is the rare firm that can be the perfect fit for every need. Acquisitions and expansions aren’t always good. Don’t believe the hype! Ask concrete questions about the law firm’s experience and successes dealing in the new area of corporate need. If you can’t get the answers, then go hire the firm down the street.
Your law firm has to pick its areas of concentration and those areas have to be limited. They need to be the right areas (in demand, profitable, etc.). You can add and drop areas based on emerging opportunities and changing trends but you risk your core business if you try to be all things.
Excellent law firms concentrate. They practice the rule of the fewest. They know the practice areas where they can deliver superior value to clients and they know when to recommend other excellent law firms. You build your relationship when you place the client’s interest above those of the law firm. That is delivering superior value that will keep you in the ballgame and will have the corporate world recommending your firm.