What Really Matters—Auditing Your Client Base
A core analysis is a powerful method for determining where the strength of the firm lies and where real opportunities exist for developing more business, profitably. It provides information allowing you to increase revenues and profits through improved resource allocation and reduced waste. After an audit of its client base, the firm can concentrate its efforts where they are most likely to lead to success. The core analysis provides an improved platform for planning, decision making, and management, and sets the stage for increased firm profitability.
With the clarity provided by an analysis of key clients over time and the identification of industry clusters, the firm’s focus can be sharpened—the firm can get better at what it is good at. For example, the firm’s current key clients are the most likely to have a relationship with the firm which will allow further business development through partnering arrangements, and the core analysis will solidify The firm’s information about those clients.
Surveys of clients indicate that inadequate client service is the most-often cited reason for firing a law firm. Having identified its most important clients, The firm can form client teams or key client accounts, create partnering arrangements, and conduct client service reviews—with those key clients first, in order to make certain that where it counts most, client service is impeccable.
Expertise in an industry or a practice area is the primary reason cited for choosing a firm in the first place. Information from the core analysis will help the firm determine where it currently has depth to showcase, and where it may need to broaden its reach in alignment with the market’s needs.
A Full Core Analysis Includes:
Following the RULES for Law Firm Profitability — Article in LMA’s Strategies: The Journal of Legal Management, March 2004