The advisor of last resort?

2 12 2009

Speaking with the general counsel of a large multi-national recently, I was struck by the number of opportunities that her external advisors had to impress her. Many law firms often complain that it is hard to develop close, long term relationships with clients because the clients only contact them when they have a problem; the “advisor of last resort”.

Call for the advisor of last resort?

I think there are two key points to consider here. The first is that this highlights the fact that lawyers are largely used to solve client problems. Now this might sound like a no-brainer, but there are millions of companies worldwide trying to sell goods and services for which the client need is not so clearly defined. If a client has a definite problem, then the law firm has a distinct opportunity to help them. Note that “help” is the critical word. Buying and using the legal service shouldn’t be difficult for the client, and if done right can lead to a real sense of gratitude from the client. The bigger the problem and the better the service, the truer this is.

The second point is that many of these problems can be nipped in the bud early, or indeed prevented altogether, if the client has the right advice upfront. Rather than waiting for the client to arrive with a problem, law firms can sieze the advantage and proactively go and talk to clients and prospects about this, rather than sitting and waiting for the phone to ring. Note however there is a big difference between initiating a dialogue with a client about a problem they are facing or may be about to face, and going to talk to a client to tell them about a service the law firm can sell them. It may sound like semantics, but in reality it is about ethos and intention, and the law firms that get this right, have the opportunity to build trusted and enduring relationships with clients that many other suppliers and advisors would envy.