Transitioning a Firm's Client Base in Six Steps

by Joel A. Rose

Every client, no matter how large or small, usually has one point person who has the greatest role in selecting and retaining the law firm. And every firm, no matter how large or small, is usually connected to each of its clients by one person, almost always a partner, whose links are a little stronger than anyone else’s.

The links between client and law firm most often include:

(1) High-quality work, produced timely and at a reasonable price.

(2) Shared attitudes toward the client’s important issues, i.e., client whose futures are affected by major social and political issues prefer lawyers who share their values, not merely advocate them, no matter how effectively the lawyer does so.

(3) Personal ties based on family relationships, shared community interests and personal friendships.

The personal relationship factor is the one over which law firms have the most control, since there are plenty of competitors who can and do produce high-quality, timely, reasonably priced legal work. Further, the firm’s attitude and beliefs about major issues are what they are, and your client base will naturally develop in accordance with them.

The successful transitioning of a client has several components to it, as follows:

Start Early: Have a plan, set it up early and know which partners will be responsible for making it happen. Ideally, if the client is big enough to justify the investment of lawyers’ time, there should be at least two partners - a client team - who have a personal relationship with the client’s key person or people. Introduce these partners at an early point and do not keep “rotating” faces. If those lawyers are several years apart in age, the continuity will be natural and easier to maintain. When a lawyer retires from the firm, the linkage with someone else will already be in place, and the likelihood of the client leaving will be reduced.

Pay attention to the client’s signals and messages: Client entertainment is not a one way street. If your client seems to favor one of your lawyers by inviting him or her to the superbox at the stadium or to a charity gala, then clearly, this lawyer is your relationship manager, or one of them, regardless of what you think.

Start the transition before the client realizes you are doing so: When you know the relationship partner’s plans for retirement, commence the transition process at least a year or two in advance, selecting the replacement. The likely new relationship partner should be included in the luncheons, golf outings and other client relation events, as well as in important meetings involving the client’s legal work. Observe carefully how the candidate and the client respond to each other. If the personal chemistry is not working, you will need to try a second or third candidate until the right person is identified.

Keep the current relationship partner anxiety-free: He or she must be your willing ally in the transition process, not a reluctant or resistant foe. To that end, add rather than substitute a relationship partner. Both the existing and the new relationship partners should continue in those roles, even after you believe the new person is securely established.

The partner who knows that he or she is training an addition to the role instead of his or her own replacement will be much more cooperative and helpful. Certainly, the original relationship partner sees what is happening (if he or she is so stupid that he or she doesn’t see it, he or she wouldn’t be in the role), but his or her eventual departure should be (or appear to be) on a mutual acceptable timetable.

Avoid negative consequences for the outgoing partner: Do not reduce compensation because the relationship partner spends less time at his or her task. You want him or her to spend less time so that the new person has the opportunity to work at the relationship. In fact, we are proponents of rewarding the responsible partner for making the successful transition happen. Give that partner a goal to transition by a certain date and provide a bonus or other incentive if the transition goes well. Do not take away the perks that the relationship partner truly enjoys. Buy an extra ticket to the ballgame or the theater so that the relationship partner does not experience a tangible and possibly embarrassing reduction in his role in the firm.

Select the right replacement partner, base not only on personal qualities, but also on legal practice areas: The most capable and charming creditors’ rights practitioner may be a poor choice as a relationship partner for your silicon Valley or entertainment industry clients. While it is not necessary that the relationship partner also be primarily responsible for the client’s legal work, it is essential that the partner do at least some of it and know something in the practice area.

The new relationship partner can succeed only if there is some common ground with the client. This is not often true when the first relationship partner, or the originating attorney had some other tie to the client, i.e., law school classmate, neighbor, common hospital board, or golf club membership, etc. which brought the client to the firm initially. It is important, however, when a pre-existing tie with the new relationship partner does not exist.