Behaving badly? Delivering behavioural change for successful CRM

Effective client-relationship management (CRM) has become something of a Holy Grail, as many firms still struggle to get their lawyers singing off the same hymn sheet when it comes to interacting with clients. Gillian Khan, marketing director at Berwin Leighton Paisner, details some practical strategies for overcoming the challenges of implementing firm-wide behavioural change for top-quality client service.

By now most law firms are trying to operate some form of CRM programme or, at least, have recognised the need to focus much of their marketing attention on existing clients. The primary objective of a CRM programme is to improve overall client care and service, resulting in increased client retention. In addition, developing closer working relationships with clients enables the development of new lines of business.

Anyone who has tried to introduce a CRM programme will understand that it usually requires a fairly major shift in behaviour on behalf of all people who have contact with the client. However, achieving any kind of behavioural change within a large organisation is a very long and usually difficult process, and requires the participation and buy-in of everybody in the firm.

Assessing the factors behind successful behavioural change

When introducing a new marketing concept into a law firm, there are a number of steps to take to ensure people engage with the process and adopt the desired behaviour. CRM is so close to the interface with the client that it is essential to ensure that the right people are involved and that, particularly with a large client company, behaviours throughout the team change in the same direction. One of the secrets to success is to work to a realistic timetable and to manage expectations within the firm.

Awareness and understanding

The first step in the process is to raise the awareness and understanding of the

CRM concept so that everybody involved knows why it is a crucial part of their everyday life. If insufficient attention is paid to this part of the process and actions are introduced too early, no-one will engage with the programme. Backing up the education process with facts and figures is a must. The introduction of our formal CRM programme, back in 2001, was linked with an address from one of our major clients, which highlighted particularly important aspects on client care, from their perspective. It was also backed up with analysis of our financial performance with our top-200 clients, together with independent face-to-face and web-based feedback from many of our top clients who were on the programme. Without providing proper facts and figures, it is merely a concept rather than a reality.

Engaging interest

As with every new concept, once the interest of a number of the key people has been captured, it is possible to proceed with a programme. It is sensible to assume that not everybody will get on board at the same time. The early objective must be to get some quick wins to convince more people of the merits of the programme.

Action

This is always the tricky bit. Actually doing what you need to do is imperative, particularly in relation to actions arising from direct client feedback, which, if it is not responded to, can become a negative marketing activity. If you ask clients for their opinions and then do not follow through their wishes, you are in a worse situation than if you had not asked. Lack of responsiveness is one of the biggest irritants for clients. In our experience, this aspect needs constant work and monitoring to ensure it is proactive and effective.

Ensuring consistency and discipline across the firm

While the CRM programme is usually focused on a small number of clients, the principles and process can be used on clients beyond the programme.

Change takes a long time to achieve and it is therefore necessary to continually review the programme and adjust it, responding to successes and failures.

We are in the process of undertaking our third review. From our experience so far, I would list the main challenges that need to be achieved for a successful programme as:

Achieving real buy-in and active support at board level, so that partners and assistants see CRM as a vital contributor to the firm’s success;
Ensuring that CRM is not seen as a marketing-department activity. To be effective, it must be adopted by the fee-earning community and become an important part of their day-to-day activities with their clients;
Systemising the programme, but doing it in such a way that the system is usable, rather than prescriptive, and guides partners in their duties by providing them with suggestions and ideas. It is essential that each client be treated individually and that the programme works for them and their business;
Ensuring that CRM is part of every practice area’s business and marketing plan. It should provide a focus for their strategy;
Defining a clear role for client-relationship partners (CRPs) so that they understand what is expected of them and the role they are fulfilling;
Agreeing how client reviews should be done, whether by using an independent organisation, by senior partners (not the CRP) or by the CRP. In reality, there is a need for a number of different reviews throughout the year so the ideal solution may be a combination of all three options;
Tying CRM in with the firm’s policies and programmes for recognition and reward.

If CRM if to become effective in an organisation, it has to be part of the appraisal and remuneration system, particularly for partners.

If the above factors are addressed, there is a greater chance of getting consistent behaviour throughout the firm.

Developing an effective strategy

The first stage in determining an effective strategy is to decide how many and what types of clients will be included in the formal programme. It is important to stress that the CRM process and the tools can be used for clients outside the formal programme.

The main difference is that the clients on the programme are subject to a more formalised approach to research, planning and monitoring.

There are various approaches to deciding which clients should be included in a formal CRM programme and, indeed, how many. Some firms focus their programme on their top-10 largest clients; others cover as many as 100 clients. Currently, we have around 50 clients on our programme, including 11 key clients. A client could be suitable for the programme for a number of reasons, including:

Crown-jewels clients: those who are crucial to the firm’s business and whose loss would severely affect the business. These are typically the largest clients of the firm;
Strategic clients: those who fit with your own firm’s strategic aim, for example, if you are growing a particular area of practice, then a client who requires those services on a regular basis would fit this category;
Referral clients: those that are good to have on your client list and that would encourage other similar organisations to consider your firm as a supplier. These would typically fit with the type of firm that you are;
Growth potential clients: those where there is an opportunity to increase the amount of work done for them, either in the same area of work or by cross selling other services to the client.

These are by no means the only reasons to include a client on the programme, but are a good starting point. The final list needs to be agreed either by the board or by a committee of senior partners of the firm to ensure buy-in at the top level.

Having determined which clients should be on the programme, appropriate CRPs should be assigned to each client. The first stage of our process with any new client to the programme is an independent interview with the client to assess our service levels, uncover any issues and consider activities that are important to the client. This is also done on a regular basis with those already on the programme. An action plan is then drawn up for the client and implemented by the CRP and client team.

The marketing team assist CRPs with actions, offer training and coaching, and monitor and evaluate the progress made with each of the clients on the programme.

There will be some clients on the programme who fall into the ‘key account’ category for whom a more in-depth approach will be required. For key accounts, we typically have workshops of all interested parties in the firm, where we consider the client organisation in detail, undertake a detailed assessment of our performance, weigh up issues that may need addressing and opportunities that may be available. From the workshop, a client strategy is drawn up detailing actions required going forward.

These plans need very careful monitoring and regular team meetings to ensure a co-ordinated approach across the firm. Key accounts tend to be the larger clients who are served by different practice groups throughout the firm so, by their very nature, need more careful co-ordination.

One of the essential elements of a successful programme, and an effective route to achieving buy-in throughout the firm, is constant feedback and communication of activity and, most importantly, results. In our experience, this needs to be formalised.

Implementing your strategy: Practical guidance and lessons learnt

We have worked out, and further perfected in our most recent review, a process that all CRPs can follow. This process is supported with documentation, including a job description for CRPs, a checklist of activities that can be considered for any client, a discussion guide based on subjects covered by our independent interviewers that can be used for quarterly, bi-annual or annual reviews and an action-plan template.

Overcoming opposition to change

Having worked in professional services for many years, I have realised that, when trying to introduce something new or different, the mere fact that there is a need to influence so many people makes it imperative to understand and accept that successful change demands a realistic and often long-term timetable. It is, I believe, impossible to achieve lasting cultural change within a short period of time. There will be a number of fears and anxieties that need to be addressed. As an example, when presenting at external conferences on the subject of CRM, the question I am asked most often is what firms should do if the client requests a change in the CRP or members of the client team. This is an example of an issue that is very difficult to address and which causes much anxiety within any firm. Achieving a degree of confidence in the ability to make those changes is a very difficult aspect of CRM.

In fact, it sometimes takes something disastrous, like the loss of a client through failing to act, to make people realise that it is critical. Part of this issue is gaining an understanding among partners and assistants that not everybody is suitable to deal with every client. Clients are made up of people with varied needs and personalities and need to be matched with the profile and personality of the client partner and even of the team working with them. However, it is easy to understand that this can be a very difficult issue to overcome and why caution and patience is required. And this is just one example of an issue that could arise.

A co-ordinated approach

Because a formal CRM programme is usually concentrated on a small number of clients, it is important to ensure that any other projects taking place in the firm that relate to client care are co-ordinated with the programme. For example, there will be other clients for whom the CRM process could be applicable, for example, projects that work on similar issues in training, coaching, targeting programmes and general marketing activity. It is very important that CRM is adopted throughout the firm, becoming part of the everyday life of how the firm works with its clients. It is essential that it is not isolated and seen as something that the marketing department does.

We have been working on our programme for three years and are constantly reviewing and improving the way it operates. It is something that is never finished; it needs constant updating and reinvigorating.

Gillian Khan is marketing director at Berwin Leighton Paisner. She can be contacted at gillian.khan@blplaw.com