Another good article from Janet Stanton, Partner, at Adam Smith, Esq. on the power for any law firm invited to pitch to say NO to an existing or prospective client. This is where in my view business developement team in law firms should act as main gatekeepers and reiterate the firm’s strategy so long as a clear one has been articulated …
Now to the article:
At far too many law firms, client or matter intake consists of a perfunctory credit and conflicts check, and you’re off to the races. This forfeits the opportunity to intentionally and purposefully manage the pipeline of future work your firm does—a potent and potentially transformative business discipline. Without it, as we have seen repeatedly, firms often find the hasty approach produces large, durable, and unforeseen “conflict shadows,” indigestible write offs, and even—at worst—more than their fair share of malpractice saber-rattling.
Wouldn’t a better approach be to make intake purposeful and intentional?
Hard to argue with, but:
- In practice, what does “purposeful and intentional” mean? Or, more simply, what does “strategic” mean?
- What if it treads on the toes of the powerful?
- And as the inevitable corollary: “Purposeful? Sez who?”
Saying “no” is the hardest part
The aim of this article is to explain what strategic client/matter intake means in practice, and to offer thoughts on why a firm might want to go through the (real, undeniable) resistance of introducing discipline and rigor to what has traditionally been every partner’s sandbox. Make no mistake: We understand quite well that saying “no” to some work is often hard, but we emphatically believe it’s necessary if firms want to be steering their own course rather than having it set for them by the random accident of what clients come knocking.
Getting a solid grasp on the rationale behind why a firm might want to do this takes us back to first principles.
As a general matter, internal strategic clarity serves as a filter or roadmap to guide business decisions across the firm (from investment and recruiting/staffing to governance principles, to compensation, marketing, IT, etc.). Externally, it sends a clear message to the market; clients know what your firm stands for.
More pointedly vis-à-vis client/matter intake, a critical tool in managing your competitive position in the law firm marketplace is to actively manage the work you do. Different types of work, consistently pursued and engaged in, will place your firm in different competitive tranches—like it or not. Unless you are choosy about the work you do, you may find yourself viewed by clients as without compelling distinction and/or at odds with your firm’s aspirations. Strategy means saying, “no
Over time, intake determines the future course of the firm. Not all clients or matters are of equal value to the firm. Hence, thoughtful criteria around client/matter intake are indispensable to the firm’s long-run health, reputation, and (frankly) revenue, and profitability growth.
Read the full article here: https://adamsmithesq.com/2024/06/why-does-intake-matter-its-the-future-of-your-firm/
