Why Companies Change Law Firms and How To Capitalize

Businesses often consider new legal counsel in response to various situations.  This blog will:

• Identifying and circumventing potential triggers for such transitions for law firms and partners
• When companies do decide to change firms how you can swoop in and win a new client

Distinct strategies apply to each scenario, yet the overarching objective for law firms and partners is to become a top contender for potential new clients. To achieve this, the market must recognize:

• Your existence as a beneficial resource for their legal needs
• What sets you, your partners, and your firm apart
• The confidence you’ve instilled regarding your capabilities, prompting them to give your law firm a chance to earn their business

The situations that cause companies to seek new Law firms and Legal Counsel:

1. Current Dissatisfaction with Legal Services:

1. Law firms and partners must deliver superior work; this fosters growth through referrals and increased client engagement.
2. Poor Client management: Make sure the client team:
   1. Understand client & business goals 
   2. Building rapport through understanding client communication preferences and cultural dynamics 
   3. Aligning the firm’s team with the client’s in-house legal team in terms of values and style
   4. Offering consistent billing that resonates with the client’s financial expectations and schedules to prevent billing surprises

How to Maximize the opportunity when a potential client is unhappy with their current law firm:

• The goal is to make the short list and get invite to pitch for the business. To do that:
  • Lead with industry knowledge and become a recognized thought leader.
  • Identify who the key companies and decision makers are in your sector and industries and introduce yourself and them firm. Make yourself known by network intentionally, targeting companies and general counsels in your sweet spot.
  • Clarify your services to your target market, ensuring they have confidence in your ability to deliver as a law firm or partner.

2. Movement of General Counsel or Legal Decision Makers:
   • A new in-house legal leader will often seek to make their mark, potentially bringing in new external counsel for their law firms and partners.
   • Maintain solid relationships and consistently support your clients throughout their career paths as law firms and partners.  

Leveraging the Opportunity When a Client moves to a New Company:

• Be an indispensable resource for clients in both good times and challenging ones. This can pay off for law firms and partners when clients transition to new roles.
• Never underestimate the future influence of today’s junior staff s the may be tomorrow’s legal leaders; maintain good relations and play the long game. Avoid bridge burning.

3. Need for Niche Legal Expertise:
   • Keep abreast of your client’s expanding needs and ensure they understand your firm’s and partners’ full capabilities.
   • If your firm or partners lack certain expertise, proactively offer referrals, reinforcing your role as a valued business advisor.

How to Capitalize when a Company needs Niche Specialized Legal Counsel

• Promote yourself as a specialist in your field through speaking, writing, and networking. Expertise is often perceived—so shape perceptions in your favor as law firms and partners.
• Inform colleagues and partnering firms of your expertise to ensure your firm and partners are on the shortlist for pitches.
• Use a Beach Head Strategy to grow the account: once you are in with a firm for specialized work, look for opportunities to grow the account

4. The Importance of Diversity for Law Firms and Partners:
   • Take a proactive stance on DEI efforts. Ensure clients are aware of what your firm and partners are doing.
   • If you’re a diverse partner, choose the right moment to discuss your firm’s DEI actions.
   • Address any DEI shortcomings directly, outlining steps towards progress for law firms and partners.

Utilizing Diversity as an Asset:

• If your firm excels in diversity, weave this into your firm’s story.
• If diversity is a work in progress, address it openly and discuss the firm’s commitment to evolution. Clients respect genuine efforts towards change.

Summary: Law firms and partners face unique opportunities for growth when companies seek new legal representation. By delivering exceptional service, building solid relationships, and demonstrating specialized expertise, law firms and partners can position themselves favorably in the market. Transparent communication about diversity and inclusion initiatives further strengthens a firm’s appeal. Proactive and strategic engagement is key for law firms and partners looking to capitalize on industry changes.