© ccg 2013 measuring the roi of business development — even if it’s possible, does anyone care?...
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© CCG 2013
Measuring the ROI of Business Development — Even if it’s Possible,
Does Anyone Care?
Timothy B. CorcoranCorcoran Consulting Group
August 7, 2013
© CCG 2013
Who am I?• Over 20 years of expertise in law firm management,
marketing, business development and technology, product management and consultative selling
• Advises law firm leaders in business development, legal project management, process improvement. Also advises legal vendors on product development, market strategy and sales force readiness
• Formerly a senior consultant with Altman Weil; Director of Practice Development for a global law firm; CEO of a NASDAQ-traded legal technology company; and a senior executive with both LexisNexis and Thomson Reuters
• Fellow, College of Law Practice Management • Fellow, Center for International Legal Studies• President-elect, LMA International Board of Directors• Author of Corcoran’s Business of Law blog• Columnist, Marketing the Law Firm journal and PSMG
Magazine (UK)• Host, In-House Legal podcast• Yellow Belt certification, Legal Lean Sigma
Timothy B. Corcoran
Principal
Corcoran Consulting
Group, LLC
© CCG 2013
Who moved my cheese?
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Remember when everything was working well?
Demand
Rates
PPP
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“Post hoc, ergo propter hoc”
Cause Effect
Or was it?
“After it, therefore because of it”
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Law is shifting from a demand to a supply economy
Location, location, location
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Have the R.U.L.E.S. changed?
Old school New school?
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Envisioning a different future
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What matters now?
• Client focus
• Predictability
• Communication / managing expectations
• Efficiency
• Yada, Yada, Yada
• Legal expertise
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New rules, new vocabulary
I Love Lucy, “Paris at Last,” S5E18, 1956
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Lawyers and marketers and CFOs speak different dialects
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ROI = return on investment
ROI is relative, not absolute
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Measures of ROI
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Where does ROI matter?
• Prospecting
• Events and Sponsorships
• Pitches, Proposals & RFP responses
• Social Media
• Resource allocation
• Departmental reporting
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Which dollars do we chase?
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Stage 1 Stage 2 Stage 3 Stage 4 Stage 5Initial Contact Fact Gathering Needs Analysis Proposal Close
Bay Bank, Joe Reed; Lazlo Mendel et al, BioVate Labs Banco de Espana Tolliver IndustriesCatch up lunch Tony Monte, ptnr Antitrust defense Airport development Patent litigation
Lit co-counsel oppty Ron Keltner - NYC Kent Linert - NYC Steve Testke - ChiMitre Inc, Sue Glade; next mtg 7/23/09Met at ABA CLE Brighton Bank Ltd $725,000 / Aug 09 $110,000 / Jul 09
Stuart Grady - London S'western PowerNoCal Power, Jeff debt restructuring Water filtration plant Ritter CorpLisso; Ref by ASD&R Brent Day - Houston Whistleblower def.
Sun Apparel proposal due 7/20/09 Aimee Mann - AtlantaConvo Destin, Gene Chas. Marin - AtlantaInello; New GC mtg RIF Major Ventures, LLP $275,000 / Jul 09
xchange delistingCity Construction, Ed Quantralis Torango, Silber - NYCFlister; RFP rec'd Silber - NYC meet CFO 7/7/09
option backdatingRaytheon, Lucy Arroz;Webinar attendee AirPeru
Jose Denon - AtlantaClifton Pubs; Neil class action defenseNolan; inbound call
GE Aircraft; Bo Little;Network referral
Identify and repeat efforts that win business
80% probability of closing within 3 weeks, leading to $100k billables in Q1, $150k in Q2, $50k in Q3
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Propose solutions to business problems
Business Issue
BioVate ex-VP of Engineering filed sexual harassment claim, seeking class action status
Impact to Business
Potential negative PR impact with customers, suppliers, trade press
Expensive to defend ($____), though allegations are unfounded
Recommended Actions
Additional round of P/E or VC financing needed
Cash flow/liquidity squeeze by Q4 at present run rate
Explore financing alternatives and issue offering
BioVate has several high-growth products at risk of IP infringement in growing 3rd world markets
Loss of revenue ($____) from clones Expensive to file ($____) IP protection
in all markets Difficult to enforce valid IP protected
in some markets
BioVate to vigorously protect IP in key primary markets
BioVate to monitor IP infringement in 3rd world using 3rd party tool
Selective high-profile enforcement for deterrence
Aggressively pursue summary judgment
If fail, seek settlement over trial Inoculate against future actions by
presenting employee training
Capabilities statements and brochures are often a waste of time and money. Customized proposals win business.
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Which practices deserve attention?
Repetitive
Important
Strategic
Repetitive
Repetitive
Supply Rates
There is an inevitable and inexorable migration of products and services from leading edge to common place, whether the provider likes it or not
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Which partners deserve attention?
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Where should we spend our time?
• Plot all activities
• Plot all practices
• Track marketer time against all practices
• Compare to strategy plan
• Review resource allocation with firm management
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Submit Articles
Speak at Conferences
Networking & Education
Demonstrating Expertise
Leading ExpertBoard
Committees
Attend Meetings, Educational sessions
Visibility & Credibility
Memberships and Associations value chain
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Event ROI: What do we need to know?
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Event ROI: A lot more than we track today!
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Event ROI: The numbers don’t lie!
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Which publications generate traffic?
Sep. 15 (5067)
Sep. 16 (4908)
Sep. 18 (8642)
Sep. 19 (8643)
Sep. 21 (8658)
Sep. 22 (8664)
Oct. 6 (9805)
Oct. 7 (7936)
Oct. 16 (8847)
Oct. 22 (8658)
0
500
1000
1500
2000
2500
Alerts
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Share of Voice
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Pitches, Proposals, RFPs – The Great Time Suck
The usual process
• Always in a rush
• 95% about us
• Deal lists, representative matters, bios
• Never call to clarify
• Last second drop-in of mystical pricing
The usual result
• Who cares? We pitch what the partners tell us to pitch!
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Pitches, Proposals and RFPs – Model of Efficiency
Winning Characteristics
• Early
• Client prep call/test close
• 95% about the client
• Clear problem statement
• Potential alternative solutions
• Proposed project plan
• Proposed budget
Regression analysis – an internal Chambers?
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Measure & report on metrics that matter to clients
The ACC Value Challenge
Understands Objectives/Expectations 4.5
Legal Expertise 4.6
Efficiency/Process Management 4.2
Responsiveness/Communication 4.4
Predictable Cost/budgeting skills 4.0
Results delivered/execution 4.4
© CCG 2013
The death of asymmetric information
Repetitive Repetitive
© CCG 2013
The death of asymmetric information
Repetitive Repetitive
© CCG 2013
The death of asymmetric information
Repetitive Repetitive
© CCG 2013
The death of asymmetric information
Repetitive Repetitive
© CCG 2013
The death of asymmetric information
Repetitive Repetitive
© CCG 2013
The death of asymmetric information
Repetitive Repetitive
© CCG 2013
For more information
© CCG 2013
Timothy B. Corcoran
Principal
Corcoran Consulting Group, LLC
609.557.7311
CorcoranLawBizblog.com
Twitter.com/tcorcoran