Need-to-Know News - November 24th, 2004
How to Run a Marketing Department

By Stephen Ruben, Valuelaw Consulting Inc., New York, N.Y.  Stephen can be reached at 212.255.2989, stephen.ruben@valuelaw.com and www.valuelaw.com.

A panel of five law firm marketers discussed, debated and explored the questions and quandaries of staffing a law firm marketing department at a Web seminar broadcast recently by Law Journal Newsletters. 

 

The panelists included:

  • Moderator Betiayn Tursi, the Director of American Lawyer Media, Law Journal Newsletters, in New York.
  • Linda Sedloff Orton, President of Intelligent Marketing Solutions Inc. in New York
  • John Asperger, Director of Marketing & Communications for Mayer, Brown, Rowe & Maw in Chicago.
  • Roberta Montafia, Chief Marketing Officer of Day, Berry & Howard of Hartford CT.
  • Craig Levinson,  Director of business Development and Marketing at Brown Raysman Millstein Felder & Steiner LLP of New York, N.Y.
  • Sandra Napoli-D’Arco, Director of Marketing and Communications at Freeborn & Peters LLP in Chicago, IL

Linda Sedloff Orton, President of Intelligent Marketing Solutions Inc. in New York, began by discussing the who, what, when and where of a marketing needs assessment (“MNA”).  She suggested that an MNA be conducted after a change in either management or marketing partner and before hiring outside consultants, inside senior staff or before commencing a major project. The goals of an MNA include gaining knowledge, making changes in people or projects, increasing revenues, improving relationships and the all-important appeasing partners or clients. 

 

The 10 ways to create marketing departments

 

John Asperger, Director of Marketing & Communications for the global firm Mayer, Brown, Rowe & Maw LLP gave and expanded on his list of ways to build a marketing department:

 

  1. Align expenses with resources.  Will what the firm spends be sufficient to meet their expectations?
  2. Don’t get ahead of the firm. Be aware that revenue per attorney is the goal not marketing output.
  3. Empower people ensure that decision-making is spread around and a avoid hierarchical structure.
  4. Create what is needed by the firm’s culture.  For example, if a lawyer is academically oriented and can write well, encourage the lawyer to write in publications as a marketing vehicle.
  5. Use internal resources before going to outside marketing consultants or experts (with the exception of certain obvious technical, printing, creative and artistic resources that are not part of internal resources).
  6. When hiring staff, Asperger look for the best person based on character, experience and other personal and professional traits rather than trying to find the perfect specialist for each position.
  7. Recognize that constant battling with the lawyers is counterproductive.  Being right is not as important as being respected by the partners so that you can live to fight another day. Sometimes you just have to give in!
  8. Be a guerilla, not a redcoat.  The firm is not about you, it’s about them. Learn to operate behind the scenes and never claim credit for a new client or other firm successes.
  9. If you are in a firm that has many offices or is global in nature, think of the firm as a whole in your marketing efforts.  Don’t get caught up with the more provincial concerns of your own office but keep a global view.
  10. Create a marketing department that shows enthusiasm and creativity, and is a fun place to work where people care about their work and exceed expectations.

Shifting responsibilities

 

Roberta Montafia, Chief Marketing Officer of Day, Berry & Howard of Hartford, CT, spoke on how responsibilities of law firm marketers are shifting from  

·        directory listings, tombstone advertising brochures, seminars, newsletters, civic involvement, and bar journal articles, to

·        the more sophisticated demands of today including competitive intelligence, client surveys, research driven advertising, custom RFPs, client service teams, sales training, financial analysis (retention/profitability) and prospecting.

 

She asserted that marketing department size is a function of maintaining a balance between the functions, the financial resources and the firm’s expectations.  In the foreseeable future Montafia sees:

·        Increasing sophistication.

·        A greater demand for and scrutiny of value from the marketing department.

·        The continuation of placement of specialists as departments grow. 

·        Higher salaries to reward increased productivity and to keep good people. 

·        A growing place for outsourcing resources to meet the needs of specific projects.

 

 

She concluded that CMOs ought to focus on obtaining and retaining quality people, clarifying the role and expectations of each department member, and recognizing that each individual must demonstrate the value of their efforts as a return on investment.

 

Communicating with management


 

Craig Levinson,  Director of Business Development and Marketing at Brown Raysman Millstein Felder & Steiner LLP of New York, N.Y., gave a well-crafted talk on communicating with firm management and when to outsource, and opined on a model for communicating with management.  He suggested that there were three main components:

  • Manage partners’ expectations on each significant task.
  • Build a financial case for each new staff hiring. 
  • Sell internally by using sales tactics to position marketing expenditures as returns on investment rather than as costs.

 

His rationale for managing expectations on a task-by-task basis is twofold.  First if management consistently signs off on the objectives, the resources and the time required for each task, they are more likely to understand the need for more staff at a later point. Additionally, you can more easily answer concerns, address resources and task time later if the expectations are agreed to and put to writing at the outset. 

 

Hiring staff

 

To manage expectations Levinson uses a protocol called MOST-T provided to him by Mike O’Horo of Sales Results Inc. in Arlington, VA, which stands for:

  • MISSION: What is to be accomplished (e.g., narrow the mission to realistic proportions?)
  • OBSTACLES: What are the barriers to competition?
  • SITUATION: e.g. Is the task environment hostile or supportive?
  • TALENT & RESOURCES: Do you have the personnel, funds, other support required to be successful?
  • TIMING: What are the time parameters for the task? Are they realistic?
To secure a budget that increases the size of the department, management must be sold on the likely financial benefits on an ongoing basis.  Partners must be made aware that:   
 
  • With growth comes increased spending and increased marketing, e.g., increased staffing.
  • Surveys have shown that 2/3 of competitive law firms spend between 2% and 7% of revenues on marketing.
  • Your firm’s spending should not be far behind the main competitors, or your firm will be left behind
  • If your firm’s marketing expenditure is at 2% of revenues or less, you can make a compelling case for more hires.

When attempting to make a specific hire one must also make a financial case.  Examine the costs of a new hire’s salary and overhead vs. the cost of outsourcing that work.  If, for example, the salary and overhead costs of a designer are far less (or more) than the cost of an outside design firm, then a financial case is made.

 

Levinson asserted that if one desires to retain the services of an outside consultant (e.g. a sales consultant) for specific limited tasks, one will require sales skills of his or her own to influence that decision. The partners will generally focus only on the cost of a consultant. A skilled marketing director can guide them through an investigative process, where the partners see the losses incurred from not taking action to address a recurring problem.  At his firm, he got the partners to recognize the underutilization of their rolodexes and the resulting amount of dollars (in the millions) that was being left on the table.  Once the partners saw the potential returns, the initial investment in an outside consultant did not seem as daunting.

 

Hands-on managing

 

Sandra Napoli-D’Arco, Director of Marketing and Communications at Freeborn & Peters LLP in Chicago, IL, talked of the value of being a hands-on marketing executive within the firm, within the department and within industries. She  recommends:

 

 Within the firm you:

  • Get involved in committee and practice group meetings.
  • Communicate with practice group coordinators. 
  • Attend the annual partner’s retreat. 
  • Make daily rounds within office -- don’t sit in your office.
  • Be a player.   Approach every initiative from a strategic point of view.

Within the marketing fepartment itself you:

  • Empower the marketing team by allowing them to take ownership of projects
  • Be aware of all initiatives entering and leaving department
  • Sign off on everything prior to leaving the department.
  • Develop departmental performance standards that everyone on the marketing team buys into.
  • Keep organized separate files for RFPs, presentations, ads, sponsorships, PR, etc. so that all previous projects are easy to locate.

Within industries you:

  • Know your competitors, their strengths and weaknesses and competitive advantages and disadvantages.
  • Know the legal and legal marketing industries and be able to share valuable information with partners.
  • Stay on top of client industries, current trends, growth data, potential needs for (reductions in the need for) legal services and share that information with partners.
  • Identify other industry trends that may apply to your firm.

Napoli-D’Arco spoke powerfully of the necessity for the department to stay on message. She emphasized that communication between the head of marketing and the marketing team is crucial.  Each member of the team needs to be on the same page at all times, speaking the same language.  Mixed signals are deadly to the credibility of the department and the firm.

 

Excellent internal communication doesn’t happen automatically.  She holds weekly departmental meetings.  Discussions revolve around the prior week’s initiatives and projects in the pipeline. To increase the understanding of what’s going on outside the marketing department, partners from different practice areas are invited to talk about their practice group, targets, goals, etc.

 

You can’t be hands-on unless you have easy access to everything that is occurring.  So all projects are logged in an Excel.  This process allows marketing to provide realistic expectations based on concrete information.

 

Napoli-D’Arco emphasized the importance of the team being organized. With many projects coming in and out, it is very easy to drop the ball.  She recommends teaching staff or sending them to a seminar to learn organizational skills.



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