Are you listening to your clients?

Most law firms are competent and are good at what they do. But few firms are truly competitive, by which I mean that they are able to become a leading firm in the market.

Most firms miss opportunities and lose money because they don't listen to potential clients. Active listening is a rare virtue, but in doing so you discover what is important to the client, their true motives or reasons for hiring legal services. Most of us hear but don't listen - never take it for granted that you know what a potential client wants.

Why do some firms get better contracts than others? Answer: They differentiate themselves. Differentiation can be based on proper management of the firm's brand or on the ability to listen to potential clients better than the competitor. Understanding the client is a necessary part of a successful firm's culture. A basic function of any business is to be profitable; that is, ultimately, why businesses start.

So, why do your clients hire you? You have probably never asked this before, but it is essential to know the answer.

Many clients decide which firm to hire based on price. Yet there are many firms who focus their sales pitch on service characteristics rather than on benefits from the point of view of the potential client.

Unique brand

Companies are distinguished by their brand image. Clients will judge a firm by its website, for example. There are many companies or firms with magnificent physical headquarters and a mediocre website, because they are built from the firm's point of view and not from the client's perspective. A well-built website is much more than a catalogue of products or a presentation on the company. Also, there are many companies or legal practices that communicate messages with a 'we' focus instead of a client focus. Does your message tell or inform but not persuade or sell? Try this test: Read your website and check which words are most used. Look at your website like a potential client, not a partner in the firm, and see the difference.

In addition, it is essential to consider why the client has actually hired your firm, beyond the obvious. Those who know why their clients have actually hired them hold the key to their competitiveness in the market. This is the basis for having a legal practice that is not only competent but competitive, too.

Calculated risks

The key to having a successful firm is not how much we work, but whether we do it in a smart way, based on our own strengths and values, and with the right personnel.

To get from where we are to where we would like to be we have to lose our fears and take calculated risks where there are chances of success, taking into account the available resources.

The only way to move forward is to take some risks, but this requires good self-esteem and personal attitude. Few firms want to take those risks, but most would like the rewards they bring.

Francesc Dominguez is a partner at Barton Consultants