A study in post-merger success: effective planning, technology and CRM

Managing the process and aftermath of merger is a far from easy task that frequently results in failure rather than increased profitability and enhanced geographic reach. Caroline Poynton talks to Gillian Khan, marketing director at Berwin Leighton Paisner (BLP), about how an effective client relationship management (CRM) strategy combined with the proper CRM technology infrastructure can help firms ensure business as usual despite the distractions caused by merger.

Law firms undergoing mergers face an array of challenges. The mechanics of integrating disparate administrative functions, organisational cultures, IT systems and client bases can for some time, distract firms from the business at hand. If executed improperly, a merger can negatively impact core relationships, resulting in decreased client loyalty and even client defections.

As merger mania continues at a break-neck pace, an increasing number of law firms are looking to the sophisticated IT infrastructure they have developed as a means to buffer their client bases from the disruptions that a merger can cause. Specifically, they have found that next-generation client relationship management (CRM) software, capable of delivering relationship intelligence, has proved to be an excellent means to safeguard the existing client relationships of the merged entity and even discern new revenue opportunities that were previously hidden. Relationship intelligence is defined as a firm-wide asset that reveals complex connections between people, companies, relationships, experience and expertise, empowering lawyers to leverage who and what they know to differentiate themselves from the competition, enhance client service and uncover opportunities to offer additional services to the client.

In May 2001, Berwin Leighton merged with Paisner & Co to form one of the largest firms in the UK. By instituting a carefully planned and executed client relationship management strategy, bolstered by a robust CRM technology infrastructure, they say that they have been able to leverage the combined entity’s strength while still providing an individualised, one-to-one service.

Client care

Ironically, client care can become one of the first casualties when two organisations merge. The enormous logistics involved in combining the firms’ IT systems, processes and cultures into a cohesive unit can distract critical resources away from client relationships and send the wrong message as to what’s to be expected following the merger.

BLP was determined to prevent the goodwill and strong brands that Berwin Leighton and Paisner & Co had nurtured with clients for years lapse as a result of their recent business combination. Subsequent to the merger, the firm undertook extensive strategic planning in the area of CRM and business development to ensure that the firm’s clients continued to receive a high level of service. BLP also believed technology would play an integral part in the strategic plan and chose Interface Software’s InterAction, for the firm’s CRM technology infrastructure.

According to Gillian Khan, BLP’s marketing director, no stones were left unturned as the firm’s management team and marketing department formulated their CRM strategy. They initiated client meetings and research and commissioned a client service auditor to undertake a review of the more visible client experiences with the firm. “This included often-overlooked ‘soft’ client experiences,” says Khan. “How is the client received when they walk into our reception area? What happens when they telephone? We knew we had to ensure the most positive client experience, or all of our other efforts would be pointless. Our research also included client reaction to the merger, information that allowed us to develop and refine our CRM strategy.”

BLP discovered some common threads as a result of their research: clients appreciated regular communications from their lawyers, especially when they involved updates on relevant legal issues and clients wanted their law firms to understand their business and strategies.

Armed with a clear picture of their clients’ needs, BLP embarked upon aligning their CRM programme with real client needs and expectations. The programme includes the assignment of the most appropriate client relationship managers – partners charged with client care and execution of the client plan. An ongoing training programme is being designed and rolled out to ensure that all firm contingents – from fee-earners to PAs – are working in tandem to maximise the client experience.

BLP’s CRM strategy aims to ensure that nothing is overlooked. “Our lawyers are very focused on providing excellent client service,” explains Khan, “but sometimes they are unsure of what each individual client plan should include. Reviews and workshops help them to draw up a focused client service plan with a client calendar, ensuring they frequently check in on clients, and provide the additional services that each individual wants.”

Spending time and resources collecting detailed client information would have little impact if the firm could not centrally manage this information and make it quickly and easily available to the lawyers and staff who use it. Accordingly, an important aspect of BLP’s client-care programme is the relationship intelligence provided by the firm’s CRM software system. “Everybody in the firm is linked through the system,” says Khan. “It lets us store critical information about all aspects of the client relationship. It starts with client intake and extends to relationships by capturing such data as client history and who knows who. If we didn’t have access to this type of intelligence, executing our strategy would be more difficult and time consuming.”

Developing client relationships

Ensuring a satisfied and well-serviced client base is an essential component of BLP’s post-merger strategy. Equally important is the firm’s ability to leverage the firm’s broader service capability with their existing clients.

For instance, BLP’s key-account-planning sessions allow relationship managers and their account teams to analyse the client relationship and determine where opportunities might exist to introduce additional services. Khan says that the relationship intelligence delivered by the firm’s CRM system is essential to the success of these planning sessions. “In addition to industry and client research we access our CRM system reports that profile the client, their history with the firm and who at BLP knows who within the client organisation,” says Khan. Armed with this information, the team can then develop a business development strategy.

BLP is still in the early stages of their key-account-planning sessions but early indications are that their efforts are paying off.

According to Khan, an ambitious CRM strategy that enjoys top-down support from management is critical. That, combined with their CRM system, has resulted in a stronger post-merger organisation that is leveraging its combined strengths. “It actually boils down to relationships. It is amazing how frequently we find that two or three lawyers from the firm hold key relationships that can make the difference between securing client loyalty and winning and losing additional work. Our CRM system does an excellent job at exposing these critical interrelationships, which ensures that we bring together the most appropriate team for our strategy sessions.”

Leaving nothing to chance

As part of their post-merger CRM plan, BLP was careful to establish clear metrics for evaluating their success. Participants can employ these metrics to evaluate their progress and make any adjustments if necessary. Khan says that employing straightforward measurement is critical. “For each step in our client relationship programme, we developed a detailed action plan against which we could measure results. For instance, we monitor our success at achieving actions against the client plan, how many times we have undertaken a review for each client, how well we performed compared to our account goals, who successfully cross-sold services, and new client take-on.”

Success after a merger rarely comes by chance. In BLP’s case, it has involved careful strategic planning, support from lawyers and staff, the right technology, and painstaking execution of their plan. And in the final round up, it will be the ongoing scrutiny of this strategy that will help to ensure that they stay the course.

Gillian Khan is marketing director at the London-based firm, Berwin Leighton Paisner. She can be contacted at: gillian.khan@blplaw.com..