INSIGHT: When and How to Include Client Discussions in Strategic Planning

Recent surveys have shown that a higher percentage of law firms are spending a more significant amount of time and resources on strategic planning than just five years ago. Whether working with an outside consultant or developing the plan internally, it is critical to include client input in the process.

Anecdotally, I’ve noticed a significant uptick in strategic planning assignments in my own consulting practice and those of my friendly competitors. Whether working with an outside consultant or developing the plan internally, it is critical to include client input in the process.

I’ve found clients are very happy to provide feedback and reactions to strategies the firm is contemplating. Client insights often have significant impact on a firm’s ultimate strategic plans.

Client Interview Questions Differ From Feedback Questions

Client discussions undertaken at the beginning of the planning process can quickly dispel assumptions that are not borne out by the clients’ direct feedback.

Consider a recent project I worked on with a mid-sized firm. Prior to my consultation work, the firm had been developing a strategic plan and reached some initial conclusions about practices they might expand or eliminate. They hired me to review their strategic plan, provide my thoughts, and help them come up with a timeline and a list of tactical execution steps.

As part of my work, I asked not only to review the usual information (financials, profitability and utilization reports, competitive analyses and economic forecasting) but also to interview a broad swath of partners and a dozen or so clients.

The firm strategic planning committee pushed back on the need to speak with their clients. They felt that they had, in fact, gathered that information in a recent client interview program they conducted to collect what I would call “report card” information about the practices and specific lawyers.

I pressed hard on this issue, and in particular, talked about the kinds of questions you might ask during an interview and how they differed from other kinds of client feedback discussions.

Client Interviews Provide Insights on Trends, Values

Strategic planning-related client interviews focus more on the outlook clients have about their own needs, what trends they may be seeing, their perception of the firm’s strength and brand, and how they make hiring decisions. The firm allowed me to speak to four clients in an initial batch and, depending upon the learnings from those discussions, they would determine whether I could continue.

The feedback was so compelling in those first discussions that by the end of the project, I had spoken with 37 different individuals at 22 different companies.

The client input was not only generous and insightful, but was, in many ways, completely at odds with what the strategic planning committee thought the clients were expecting from the firm.

Important clients spoke eloquently of the value of the interconnectivity of the practices and how that was an important reason they remained working with this firm.

The firm decided to slim down only two of the areas they had originally slated for elimination. Additionally, it became clear that clients did not expect to expand their work with one of the practices the firm had tapped for expansion. Therefore, any expansion of the practice would be reliant upon attracting new clients. While the firm ultimately went forward with the plan to expand that practice area, the partners had a clear-eyed understanding of the challenges involved and developed an aggressive plan to attract new clients for that kind of work.

This was not an isolated episode. For example, I’ve seen firms oversimplify strategic planning and assume they will grow revenues simply by cross-selling additional services to their largest clients. In some instances, client interviews have revealed that hiring decisions for those additional services were made by people with whom the firm had no relationship, sometimes taking place in different regions of the country or globe. In other instances, client interviews uncovered trends in client needs that surprised these firms.

I have also found that client interviews can be extremely helpful near the end of the planning process. Almost every firm I’ve worked with has some clients who are also alumni of the firm. These clients, in particular, may be well-situated to provide candid, thought-provoking feedback.

Partners may feel more comfortable discussing components of a confidential strategic plan with clients who are former colleagues. Sometimes it also pays to ask the opinion of clients who have close or long ties to the firm. It is a sign of respect to seek help on an important subject, namely the future of your firm. And in the process, you may learn something from clients who run businesses and may have valuable lessons to share.

Even if your firm doesn’t have clients who are alumni, you likely have a tiny handful of clients whose views your partners will respect and with whom you may trust with such a discussion.

Strategic plans provide a helpful road map for firms to achieve their goals. Client input can help ensure those plans are nuanced, grounded and realistic.

This column does not necessarily reflect the opinion of The Bureau of National Affairs, Inc. or its owners.

Author Information

Yolanda Cartusciello is a partner at PP&C Consulting, advising law firms on strategic planning, business development , and marketing function organization. She is also the former chief marketing officer of Debevoise & Plimpton and Cleary Gottlieb Steen & Hamilton.