May 2, 2008
Survey Targets Business Development In Law Firms
ALM Research recently released the 2008 Law Firm Business Development Practices Survey, which targets two "tiers" of law firms: those listed in the AmLaw 200, The Global 100, and the NLJ 250 (Tier 1) and those not listed (Tier 2). Though the survey is mostly focused on large firms, the average number of attorneys for Tier 2 firms was 85, within the higher range of the mid-market.
Business development is difficult to assess in mid-size firms simply because many don't track it. However, firms do see the importance. In the 2007 Law Firm Economic Survey by LexisNexis, 25% of respondents claimed business development was the best strategy to improving profitability, second only to increasing rates. Likewise business development is one of the 5 highest rated factors for financial growth in the ALM survey. The extent to which these activities are tracked and measured will determine the extent to which firms can gauge the effectiveness of their methods.
Some other key findings:
- More firms are dedicating resources to business development that are separated from a marketing role;
- Budgets for business development have increased over the past year;
- Around 50% of respondents employ client interviews and surveys (the highest rated business development activity among respondents);
- Just under 50% employ "client service teams" focused on clients who generate the most revenue;
- Over 50% receive some sort of sales training;
- Nearly a third of Tier 2 firms reported that they were "not sure" if revenues increased, decreased or remained flat in the past year.
The last finding listed is surprising. If your firm is not tracking revenues, there is no way of knowing whether your firm is in trouble financially or not. Further, you can't accurately forecast if you don't benchmark. The importance of measuring performance can't be emphasized enough.
The above is just part of the findings of the survey. To purchase the survey, visit the ALM Research site by clicking here.
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Filed under Management, Marketing by Brian J. Ritchey
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