The “Activator” Approach to Business Development: How to Use Legal News Resources to Win New Business

By Madison Johnson, Esq. | Marketing Manager 

The competitive landscape for legal services has changed significantly over the past two decades. An industry that was once characterized by long-term loyalty between law firms and corporate clients has been transformed by the creation of panels of preferred firms, law firm convergence initiatives and intensifying competition in a global marketplace.

A survey by DCM Insights, a firm that helps professional services firms improve business development, documented this fundamental shift:

• Five years ago, 76% of clients preferred buying legal services from partners or firms they had used in the past;
• Today, that number has dropped to 53%; and
• Five years from now, it is projected to fall to 37%.

This evolution has caused legal profession observers to reassess the role of the “rainmaker” in the modern law firm, those skilled lawyers who identify and close new client business at the highest levels of success. A Harvard Business Review article published recently by a team of authors from DCM Insights, “What Today’s Rainmakers Do Differently,” seeks to understand the specific factors that are most correlated with positive performance in business development.

5 Partner Profiles for Business Development

The authors’ analysis revealed five distinct profiles that capture how top partners at law firms across the U.S. approach the area of business development:

Expert

This is the partner who responds to established demand by leading with deep subject-matter expertise that matches client needs. The Expert prioritizes clients with established budgets.

Confidant

This partner is highly responsive to client needs, delivers exceptional service and builds deep relationships with clients. The Confidant leverages a strong track record to get new business and emphasizes senior-most relationships.

Realist

This is the partner who focuses on setting proper expectations with the client and openly discusses budgets, fees and schedule issues. The Realist is comfortable telling the client “No” and deliberately avoids no-win situations.

Debater

This partner is very opinionated and loves to debate clients on what is best for their business interests. The Debater brings innovative solutions to the client and expects the client to agree with the plan of action.

Activator

This is the partner who leverages events and social platforms to build a robust client network, educates clients on critical trends and issues, and pro-actively engages clients on new opportunities to work together. The Activator looks for chances to introduce clients to other partners and practice areas.

Surprisingly, four of the five profiles above — which represents 78% of the partners studied — were negatively correlated with performance in business development in today’s changed marketplace for legal services. Only one profile was associated with a winning impact on competitive performance, producing a revenue-generation increase of up to 32% for the law firm: the Activator.

The “Activator”

The HBR article summarizes the “Activator Playbook” by identifying three key behaviors.

1. Activators commit to business development as a crucial part of the job.

The study found that nearly 90% of Activators report they reserve time for business development every week, while only one-third of partners in the other profiles report the same. They closely monitor industry trends, stay updated on client needs and protect time for business development from being nudged aside by other work.

2. Activators connect with prospects, clients and colleagues.

The authors explained that these partners “operate under the assumption that no client relationship is safe and understand that senior executives are less likely than they were in the past to put their thumbs on the scale for current partners, despite long-standing business and personal relationships.” They actively seek out new connections, attend industry events and engage in regular communication to stay top of mind with potential clients.

3. Activators search for ways to create value.

The study found that these partners help current and prospective clients by curating information about regulatory changes, court rulings, economic indicators and relevant news events, then pro-actively engage their contacts in conversations about potential issues and opportunities. Nearly three in four (73%) Activators search for ways to pro-actively engage clients with an opportunity, compared to just 36% of partners from the other profiles.

“In a world in which clients are less loyal to professional services firms and strong relationships are no guarantee of getting the next piece of business, Activators build robust networks of clients, prospects and colleagues,” conclude the authors. “By being pro-active in their business development approach, they are far more likely to create demand rather than end up facing off against the competition.”

Legal News Resources for Law Firms

Newsdesk is a media intelligence tool from LexisNexis that monitors media coverage on topics of interest and provides reports that enable legal professionals to quickly uncover critical insights about your firm, competitors, clients and overall market landscape. Newsdesk has won multiple CODiE Awards for its innovative technology and user-friendly delivery of information.

The Nexis Newsdesk service works around the clock, tracking media coverage worldwide, and serves up news, trends and analysis on a firm’s clients, prospects, competitors, practice areas and industry trends, making it an essential tool in your business development toolbox. Learn more or sign up for a free trial of Nexis Newsdesk.