Law Firm 4.0 Blog

Bits and Pieces from James Kane's LMA Keynote Presentation - March 15, 2012

Like nearly 1,000 other LMA members last Thursday morning, I listened to our conference opener keynote, James Kane, speak about "loyalty."

It could be the best keynote I've ever heard in my life.

Thanks to Mark Usellis and Jill Weber, conference co-chairs, and Betsi Roach, LMA Executive Director (plus the conference committee and ACI) for bringing him to LMA.

Loyalty is old news as a topic. But it clearly remains elusive, as evidenced by the 4,346 books that appear in an Amazon book search for "loyalty." We love reading about it (or at least writing about it), and we hope that spending more time thinking and talking about it will move the loyalty needle to us over our personal and professional competitors. We believe we are loyal and we desperately want others to be loyal to us.

But are they? And are we?

Jim Kane described four relationship levels that are theoretically familiar to all of us, but I don't think it's human nature to analyze whether our friends/clients reside on one level or another. The four levels are as follows (and I am likely paraphrasing here, since I was furiously jotting down notes):

1. On the bottom is "antagonistic" - or, "I hate you." Ugh, we all want to avoid that.
2. Next is "transactional." Many lawyer/client and other relationships are like this. Essentially, you are viewed as "fine," but the person isn't loyal to you. They pay you for performing a service and they might be satisfied with you - but they aren't loyal.
3. Next up is "predisposed" - or "neutral." It means the person likes you, but that could change if something bad happens.
4. Finally, on the top is "loyal." People give you opportunities when they are loyal, they are advocates for you and pass positive messages about you on to someone else.

He spoke about the difference between loyalty and satisfaction. Kane said that satisfaction is a mood, and it's about the past. The person is focusing on what you've done for them and whether it satisfied them.

Loyalty, on the other hand, is a behavior and is about the future. It's about what that person can (and will) do for you. Loyalty is anyone saying, "You make my life easier. You make my life better." It is a measurement of what makes up your relationship beyond performing services and receiving money for it. Such as, trust, belonging, purpose and fulfillment.

Trust, Kane said, equals competency, character, consistency and capacity. All four of these elements must be present for someone to really trust you in a business setting. He added, "You get no credit for being trustworthy. It's the expectation." I recall him suggesting that people who say they are trustworthy are clearly missing the point about trust. He used Ford's advertising slogan a few years ago as an example: "Quality is Job 1." We all laughed when Kane admonished Ford for using a basic expectation that we consumers have (that the automobile that I am buying will actually and consistently go) as something special or unique.

He also used certain of Comcast's value statements/promises as poor examples or ineffective ways of engendering trust. They are:

• "We will treat your home with courtesy and respect."
• And, "We are here for you 24/7."

Kane chided Comcast and said, "You don't get credit for these things! You are a cable company! We expect this from you!"

The only way to build trust is to align your expectations with your client's. Trust is simply all about understanding and managing expectations.

Here are a few more snippets from his presentation:

1. When you make a donation to charity, give your clients credit. They are the ones that make it possible for you to make the donation.
2. Recognition - how well do you really know your client? He said at least six times - with heat and passion - how much he hates US Airways. Kane, in his introduction said that he flew nearly 180,000 miles last year on US Airways. Not because he is loyal, but because, in Philadelphia, they hold him hostage.
   
   He noted that he doesn't eat meat or chicken, but that every time he flies (always in first class), the flight attendant asks him, "Mr. Kane, what would you like for lunch/dinner - chicken or chicken?" Every time he tells them he doesn't eat it and asks what else they have. They never make a note of it and never remember.
   
   In contrast, he told a story about Singapore Airlines (a favorite of most experienced global travelers). When the flight attendant approached him about a beverage, he asked if they had Island Chill water. She said they did not. Two days later when he was back on Singapore Airlines for his return flight, the flight attendant brought him (yes, you guessed it) a bottle and said, "Mr. Kane, here is your Island Chill water."
   
   Singapore Airlines completely gets recognition. They care about it and demonstrate it in countless small, but meaningful ways.
   
   That builds trust. That builds loyalty.
3. Lawyers, when you have a client coming to your office, inform your receptionist so your client can be warmly greeted by name. The fact that your client is arriving at your office at the time your appointment is scheduled shouldn't be a surprise to anyone.
4. Be insightful. Look beyond the obvious. It's the most critical thing you can do, Kane says.
5. Be proactive. Don't confuse being courteous with proactivity. Do something that your client never thought he needed. Here is an example: A man who forgot his mother's birthday went into a flower shop. Sheepish, he needed to place a rush order. The flowers were delivered and mother was happy. That was the flower shop doing its job - and being courteous.
   
   Eleven months later, the forgetful man received a postcard from the florist reminding him of his mother's birthday in a few days. That was proactive.
6. Identity. This especially resonates with me. Share things about yourself, and your listeners will find something in you that they like (because it's familiar to them).
   
   Kane started his presentation with a fast-paced series of declarative statements about himself, illustrated with pictures, logos and such. It was stunningly effective and funny, and the audience, one-by-one, bought into Jim Kane because each of us connected to something that he said. He revealed a lot about his childhood, background, sensibilities, likes and dislikes - it felt like the discharge of an automatic weapon in its rapid fire.
   
   He said that if he took an MRI of our brains before he started that introduction, it would look like a flat-line. After it, the MRI would look entirely different -- it would light up like a Christmas tree because of the various hormones that were activated in our brain chemistry. Because we were connecting with him.

The short description on his home page best synthesizes what he does:

Merging the worlds of business, neuroscience, and behavioral psychology, James Kane has been recognized as one of the leading researchers and consultants in the science of loyalty and the role it plays in human relationships and the communities we form.

He has two books: The Loyalty Switch, and a new one, Virtually Loyal (the secret to making your digital relationships loyal). I am buying both.

What law firms can learn from my wonderful experience at Davio's in Philadelphia.

For the second year in a row, I spent Valentine's Day in Philadelphia, the City of Brotherly Love. (Appropriate enough on this holiday where "love" is front and center.) And, for the second year in a row, I had dinner at Davio's.

Davio's is billed as a Northern Italian Steakhouse. Last year, I sat at the bar alone having dinner. Given that devoted couples were surrounding me, I felt a bit like I had a giant "L" in the middle of my forehead. But the bartender - and the patrons at the bar - were welcoming, warm and fun.

First point I want to make to law firms: Davio's was certainly defined by its great food and service. But it was also defined by its clientele - not a snooty person in the bunch. How is your firm defined by your clients? Do they represent the best of your firm?

That was last year. For Valentine's Day 2012, I invited a Philadelphia friend, Cheryl Disch, to join me (I was still worried about the "L" carrying over from last year). We sat at the bar, and we agreed it was one of the finest experiences we've had in a long time.

What made it great? Here is a list:

1. I ordered a Pinot Noir and the bartender said that the Merlot was a part of Happy Hour and he thought I might enjoy it. I was game, so he helped me save $10 for each glass of wine I ordered.
2. He brought a signature appetizer as a thank-you for being there (much more generous than the typical amuse bouche) - the Philly Cheese Steak Spring Rolls - Davio's is known for them. They are as extraordinary as they sound.
3. My friend arrived and another bar server recommended a different type of calamari than what she first ordered - giving her another option. She chose what he suggested and was thrilled with it.
4. We lingered a long time - much longer than the loving couples - talking over wine and dinner. They checked on us in a courteous way, but we never felt prodded or rushed.
5. Before our check arrived, we were each given a long-stemmed red rose and a cellophane bag of fresh delights, such as chocolate-dipped strawberries, biscotti and more. It was probably clear that we were business friends, not a "couple" in the Valentine sense of the word, but we appreciated the restaurant's attention and generosity just the same.
6. Then, our check was presented. We turned to each other and were stunned at how reasonable our bill was. My friend double-checked it to ensure all our selections were represented.

What else can law firms learn from our experience?

1. Corporate counsel always say they hate surprises. No, they don't - they just hate the bad kind. Surprise your clients with the service-equivalent of an amuse bouche or lower-priced Merlot (which was excellent, by the way).
2. Surprise your clients by submitting an invoice that is lower than your clients expect. It's not that hard.
3. Be sensitive to the pace of your clients - don't impose your Type-A impatience or Type-B laissez-faire tempo on your relationship. Adapt to their styles and speed.
4. Whether your clients are internal or external, ensure that the experience they have with you is positive start-to-finish. One of my favorite quotes about the lawyer-client relationship was by a general counsel of the European arm of a Fortune 100 company. He said, "My lawyers commit little acts of murder every day."
   
   What does that mean? Unmet expectations, missed deadlines, unreturned phone calls, and otherwise a series of relationship disappointments.
   
   Don't do that.

Last week I blogged about my disappointing experience at Del Frisco's in New York. It's a pleasure to share this Davio's story with you.

What law firms can learn from my disappointing experience at Del Frisco's in New York.

I met LMA friends after work at Del Frisco's last week in New York.  It appeared that most of Manhattan was in the tight surroundings - we were elbow-to-elbow and four or five rows of people back from the bar.  Patience and a booming voice were required.

That isn't the lesson for today's post, though.

We sat down for dinner and I wanted something lighter than traditional steakhouse fare.  I asked our server if I could have a wedge salad cut up with a tenderloin steak sliced on top.  (I convinced myself that this was indeed "daintier.")  Our server paused and said, "Hmmm, I don't know if we can do that.  I don't think the chef will do that."  So I asked her to visit with him about it. 

She never returned with a report from the kitchen, and when we next saw her, she placed a full wedge on one plate and a steak on another plate in front of me - with no reference to my original request.  Here is how I saw this:

1. The chef was too busy or too rigid to take two standard menu items and combine them to make a patron happy.
2. The server had no power or authority to make me happy while she was taking our orders. I can think of countless restaurants where servers would say, "Of course! My pleasure."
3. She forgot to report in about the unsatisfactory conversation in the kitchen, or was embarrassed that she had no power and that he was so unaccommodating.  He, in fact, made her look bad and she wasn't happy about that.  Our service progressively got worse.
4. The food wasn't that great, especially for the price.
5. I am now blogging about it.

Law firm leaders:  Please embrace a client service culture to such a degree that each partner is empowered and accountable to keep clients happy.  Please instill a culture of flexibility, and nimble thought and action on the spot. This proves that management respects and trusts both its lawyers and its clients.  Please encourage your various departments who serve clients --especially finance and billing, IT and all the secretaries and assistants -- to understand that their job is to serve clients, to help clients feel welcome and special (internal and external clients).

And if clients ask you to change how you do something (think: salad + steak = a steak salad), do what you can to adjust to their requirements and desires.  The pay-off will be immediate satisfaction and ultimately, greater loyalty.

 

 

How would you transform the legal industry?

Ayelette Robinson, Director of Knowledge Technology at Littler Mendelson, did a guest post on the 3 Geeks and a Law Blog a couple days ago asking, "How would you transform the legal industry?"  It got me thinking and I thought I'd carry her idea to my blog and pose it to all of you before you start your weekend. 

Here is her original question and my comment on her post. 

How Would You Transform the Legal Industry?

What resource (technological or not) would you invent to transform the legal industry?

This question isn't about what you think will transform the industry, but rather what you would, if you were all-powerful, create to do so.

Share your thoughts. And don't just step outside the box, get so far away from it that you can barely see it with a telescope.

And here's what I think:

How would I transform the legal industry? At some of the toniest restaurants, the kitchens are entirely open and visible. Patrons see all the chefs scurrying about at a dizzying pace, can peer across some specially designed barrier and watch all sorts of food prep, from searing tuna to whipping foam to garnishing a plate.

We have talked around transparency the last few years - buyers of legal services clamor for it. I envision a law firm set up like this kitchen - an entirely open environment, where clients enter the law firm space, work side by side with their lawyers, share resources, experience and intelligence.  Technology projects, at their heart, would be about openness and collaboration.

Everything in today's law firm would require rethinking - not the least of which is the architecture and office design. No more private offices for individuals. This isn't about throwing privacy and confidentiality out the window - it's about balancing transparency and privacy to better serve our clients.

Please share your ideas!

A Toast to Differentiation: What law firms can learn from Blue Hill at Stone Barns

(Guest post by Lise Anne Schwartz)

Regular visitors to this blog know that Deborah is a connoisseur of fine food, wine and restaurants. So when she visited New York last week, the pressure was on to find a unique dining experience for us to share. I took her to Blue Hill at Stone Barns, a restaurant on a working farm 30 miles from New York City.

Blue Hill gets virtually all its produce, meat and poultry from its own four-season farm and other local organic farms. It is among the pioneers of the locavore movement in the Northeast, where food is sold and served as close as possible to its source.

Like top law firms, fine dining establishments sell a pricey product in a crowded and largely undifferentiated market. But some manage to stand out and earn a reputation for adding value to the dining experience. We think Blue Hill’s success in this regard holds a few valuable lessons for law firms.

1. Looks count.  Our first steps into the dining room at Blue Hill told us what to expect. The room is large, with dark beams and trim against a high-peaked ceiling, heavy cream draperies, and a huge wooden farm table showcasing grown-on-the-grounds ingredients. Thick white linens, small votives and white plates dress the tables. Against this clean, elegant backdrop, creative vegetable presentations shine (smoked kale, roasted baby carrots and tiny, jewel-like radishes “growing” on a miniature twig tree, anyone?). The restaurant’s promise is immediately clear—unpretentious, rustic elegance, creativity and appreciation of simple, fresh ingredients.

A law firm often makes its first visual impression through its website. What kind of experience does your firm’s website promise? Does it effectively preview what it’s like to do business with you?  Is the voice consistent – do you sound like “one firm?” Can visitors easily navigate where they want to go? Does your design showcase important content or overwhelm it?

2. Get personal.  Blue Hill has no set menu; rather, the chef writes an individual menu for each table (and sometimes each diner) based on your food preferences and what’s fresh on the farm. All you have to do is answer a few questions and then decide whether to order five, eight or 12 (yes, 12!) courses. We diners feel like we are eating food thoughtfully prepared by a personal chef, not generic dishes the kitchen puts out on autopilot – day after day, week after week.

Good legal service is the same way. Sophisticated law firm clients, like sophisticated diners, come in with an idea of what they do and don’t want.  If I tell you I don’t want sweetbreads, I won’t be happy if you serve them to me, no matter how well-prepared they are.

On the other hand, if you give me a meal I could have created at home, I’ll feel like I didn’t get my money’s worth. Successful lawyers really hear what the client wants—and then use it as a jumping off point to provide better service and results than expected. That’s the kind of value-add that makes clients line up to pay premium prices.

Deborah adds:  Speaking of getting personal, let’s talk about written proposals and pitches.  The volume of requests in 2011 as reported by marketing and business development professionals was up two to four times over 2009.  This upward trajectory is expected to continue.

Creating a “one-size-fits-most” pitch packet is not getting personal.  You can bet that it will not make your prospect feel special, important or well served by your firm.  Marketers know this, of course; the key is convincing your lawyers to step back and design a presentation effective and tailored enough for the prospect to say, “You understand me.  I’d like to hear/see more.”  There are technology tools that automate the process so you can focus your time and attention on being the right strategic fit for your prospect.

3. Give a little bit.  Before we began our parade of courses (we chose five), the chef treated us to three separate amuse bouches—small appetizers meant to welcome diners and awaken palates. A particular favorite was tiny beet and goat cheese sliders served on top of a tall crystal stem filled with sesame seeds. The presentation was wonderfully simple and elegant.  We felt like valued guests, not people the restaurant was trying to milk for money.

What can you give away, either through your website or face-to-face? A training course? A quarterly status meeting? A set of form documents?  Everything you give away should preview what it’s like to do business with you.  Set the stage for what’s to come—awaken the palates of your prospects and clients.

4. Educated cross-selling.  Cross-selling is the oat bran of today—the magic bullet, the cure-all for hard-to-grow law firm business.  Everyone struggles with it, and sadly, it is frequently ineffective.

Blue Hill had something to cross-sell us, too: a series of wines perfectly paired to each of our five courses. But unlike most law-firm cross-selling, the server who artfully pitched us the pairings knew a lot about what she was selling. She had visited the vineyards (from France and Germany to Italy and California), seen the growing methods, tasted the products and talked with chefs and sommeliers about how the wines would enhance the sum of all the flavors. (Are you familiar with biodynamic wine growing methods?) 

We know a good bit about wines, but because of her soft-handed style, she enhanced what we knew.  She didn't make us feel like neophytes, yet we felt smarter at the meal's conclusion than when we arrived.

Imagine if lawyers knew this much about their partners’ practices before trying to cross-sell them. You’d have a trusted source actively participating in the sale instead of just saying, “You should meet my partner so-and-so; she really knows real estate.” Building—and using—an experience database for your firm can make this kind of cross-selling raw material a lot easier to come by.

As you can tell by the photo above, the educated cross-selling worked. We ordered, and loved, the wine pairings.

Differentiation works, whether at Blue Hill at Stone Barns or in your law firm.  It just takes care and diligence to make it pay off.

Lise Anne Schwartz is a New York-based copywriter and the President of Bold Language.  She is a former SEC lawyer and pastry chef.

Perfect Mashed Potatoes

I am thankful for everyone who reads my blog and all who care enough about it to pass it on to others.  As I sit in the Philadelphia Admiral's Club waiting for my delayed flight to take off in this driving rain, I write this as a sincere thank you. 

I have two things to share with you - a recipe (the title gives it away, but there is a story) and a Thanksgiving poem.

My mother's last Christmas was in 2007, and I spent more than a week with her that year in frosty Minnesota.  I love mashed potatoes - they are my favorite comfort food.  My mother, while extraordinary in so many ways, wasn't a stand-out cook.  My love to cook came from some other remote family gene. All my adult years, I experimented with mashed potatoes, trying to find the perfect balance of fluffy and creamy.  This final holiday I had with mom, I prepared these and she named them, "Perfect Mashed Potatoes."

There are several winning secrets to this recipe, but I think the one thing that ensures that people will rave is using the ricer.

PERFECT MASHED POTATOES
By Deborah McMurray

4 lbs. potatoes - Yukon Gold or Russets
3 tsp. sea salt (divided use)
1 1/3 cup whole milk (I use skim milk for everything, but not for these)
1 stick unsalted butter
1/2 tsp. ground white pepper (really, use white pepper)
Special equipment:  the potato ricer or food mill

Peel the potatoes and cut into 1-inch cubes. Transfer to a Dutch oven or other large cast iron pan, add enough cold water to cover, add 2 teaspoons salt, then bring to a boil. Reduce heat and simmer partially covered,10 to 20 minutes, until potatoes are very fork tender. 

Drain potatoes in a colander, then return to pan and cook over medium heat 1 to 2 minutes, shaking the pan until it and the potatoes are dry.  Transfer potatoes to a bowl and keep hot, covered.

At the same time the potatoes are cooking, heat the milk, butter, white pepper and remaining 1 teaspoon salt in saucepan over medium heat until the butter is melted. Set aside until after the potatoes are riced (in the next step).

Force the potatoes through ricer or food mill into a large, clean pan. Using a heatproof rubber spatula or wooden spoon, gently stir in half the milk mixture, stir, then add as much of the rest of the milk mixture as you desire for the perfect consistency. Stir just until combined. Serves 8

______

My dear friend and literally world-famous legal marketing consultant, Leigh Dance, sent me this poem from the Writers Almanac. 

TURKEYS
By Mary Mackey

One November
a week before Thanksgiving
the Ohio river froze
and my great uncles
put on their coats
and drove the turkeys
across the ice
to Rosiclare
where they sold them
for enough to buy
my grandmother
a Christmas doll
with blue china eyes

I like to think
of the sound of
two hundred turkey feet
running across to Illinois
on their way
to the platter
the scrape of their nails
and my great uncles
in their homespun leggings
calling out gee and haw and git
to them as if they
were mules

I like to think of the Ohio
at that moment
the clear cold sky
the green river sleeping
under the ice
before the land got stripped
and the farm got sold
and the water turned the color
of whiskey
and all the uncles
lay down
and never got up again

I like to think of the world
before some genius invented
turkeys with pop-up plastic
thermometers
in their breasts
idiot birds
with no wildness left in them
turkeys that couldn't run the river
to save their souls

"Turkeys" by Mary Mackey, from Breaking the Fever. © Marsh Hawk Press, 2006. Reprinted with permission by the Writers Almanac.

Happy Thanksgiving!

 

What lawyers can learn from the high standards at Niman Ranch

Last night I attended a special event at Abacus, one of my favorite Dallas restaurants -- a Niman Ranch dinner hosted by chef Kent Rathbun and Niman Ranch farmer, Paul Willis.  If you enjoy four and five-star restaurants, you will be familiar with Niman Ranch products and its mission of:  "... raising livestock traditionally, humanely and sustainably to produce the finest tasting food in the world."

In addition to enjoying a fabulous meal of Niman Ranch Pork Cheeks braised in Shiner Bock Beer (with creamy onion-smoked brussel sprouts), Jalapeno Beer Battered Lobster with Niman Ranch "Ham Hock Mac," Hickory Grilled Niman Ranch Lamb T-Bone (with toasted garlic-balsamic glaze and carnival cauliflower puree) and Niman Ranch Prime Ribeye Filet with Crispy Morel Mushroom Sauce . . . (is your mouth watering yet?) . . . I learned a lot about how Niman Ranch does business.  And big business they do.

Niman Ranch works with 676 (and growing) sustainable U.S. family farmers and ranchers, and the sophisticated infrastructure enables them to distribute products throughout the U.S., Bermuda and the Carribbean.

Paul Willis, an Iowa farmer, quoted Bill Niman (who is no longer affiliated with the company) - and it was these quotes that made me think about lawyers.  Willis said, The reason that pork - the other white meat - is so tasteless today is because we've had "the chickenization of pigs." 

OK, that wasn't the quote that prompted me to think about lawyers.  But I appreciated the comparison of pigs to chickens, and frankly, the explanation about why, in fact, today's pork is so bland. (The reason is farmers underfeed them low-fat foods and keep them in containment buildings with no space to move or grow.)

"I'm not raising porkchops, I'm raising animals."  That's the one.  I ask law firm management to substitute this:  "I'm not raising billable hours, I'm raising people."  People who happen to be lawyers who care deeply for their clients.  Some of the sustainable principles that fuel companies like Niman Ranch could be applied to law firms.  The opposite of sustainable farming is "factory farming."  While profits may be higher with a factory-like business model, we have seen the quality of life for lawyers and staff, and the satisfaction and loyalty of clients suffer. 

It's just something to consider.

 

Cranberry-Orange Relish (by John Engels)

My good friend and co-author, Leigh Dance, sent this to the allies this morning.  It's completely delicious.

Wishing you the warmest and happiest of Thanksgivings!

Cranberry-Orange Relish

by John Engels

A pound of ripe cranberries, for two days
macerate in a dark rum, then do not
treat them gently, but bruise,
mash, pulp, squash
with a wooden pestle
to an abundance of juices, in fact
until the juices seem on the verge

of overswelling the bowl, then drop in
two fistsful, maybe three, of fine-
chopped orange with rind, two golden
blobs of it, and crush
it in, and then add sugar, no thin
sprinkling, but a cupful dumped
and awakened with a wooden spoon

to a thick suffusion, drench of sourness, bite of color,
then for two days let conjoin
the lonely taste of cranberry,
the joyous orange, the rum, in some
warm corner of the kitchen, until
the bowl faintly becomes
audible, a scarce wash of sound, a tiny
bubbling, and then
in a glass bowl set it out
and let it be eaten last, to offset
gravied breast and thigh
of the heavy fowl, liverish
stuffing, the effete
potato, lethargy of pumpkins

gone leaden in their crusts, let it be eaten
so that our hearts may be together overrun
with comparable sweetnesses,
tart gratitudes, until finally,
dawdling and groaning, we bear them
to the various hungerings
of our beds, lightened
of their desolations.

"Cranberry-Orange Relish" by John Engels, from Sinking Creek. © The Lyons Press, 1998. Reprinted with permission. (buy now)