On Strategic Planning

When I begin working with a new client, someone who wants to build a book of business (or a bigger book), the first thing we do is to build a strategy. I’ve written extensively in the past on the process of developing a strategy for business development. (See, for example, Chapter 3 of The Reluctant Rainmaker and the blog posts How Do You Choose Biz Dev Strategy and What’s Your Strategy?) And yet, what every client wants, quite understandably, is a plan of action items that they can do to build the practice. In fact, we talk about a business development plan more than strategy, and it’s a BD plan, not strategy, that I urge lawyers to revisit on a regular basis. What gives?
A BD plan is only as good as the strategy that underlies it. Without strategy, a plan is just an uncoordinated task list of actions that you think will bring in more business, but the actions don’t function together or reinforce one another, nor are they pointed to a specific outcome other than more business.

Succeeding in business development requires strategic planning; creating a plan that flows from your strategy comes next.
Strategic planning can be difficult (usually is, if it’s done well), and it’s easy to slip into developing a task list instead of a strategy because that creates the illusion of being more productive.

So how do you know when you’re truly engaging in strategic planning?

I ran across this terrific video from the Harvard Business Review called A Plan Is Not a Strategy. In the video, Roger Martin, former dean of the University of Toronto’s Rotman School of Management, distinguishes strategy from routine planning and highlights the fallacy of what we usually call “strategic planning.”

Martin defines strategy as an “integrative set of choices that positions you on a playing field of your choice in a way that you win.” (Emphasis added.) A strategy is coherent and doable, but it’s also built on a theory about why this is the best playing field for you and why you’re better than anyone else on this playing field. That theory can’t be proven in advance, so it’s a calculated risk that must be tested.
A plan, on the other hand, is composed of discrete, concrete action steps that you can complete. The outcome of those actions must be projected, but it is not guaranteed, and unless the individual steps are tied specifically to a strategy (do this to accomplish this aspect of the strategy), the plan lacks an internal coherence. It’s a task list that defines how to use the resources at your disposal, including your time and budget.
And so it follows that strategic planning is the process of defining a strategy and then building a plan to implement that strategy.
An example of strategic planning: Beginning at 4:05 in the video, Martin discusses how, years ago, almost all airline carriers were building plans like one another to grow their market share. More routes, better customer service, steps designed to improve on what was already existing. These carriers had a plan designed to further a long-ago defined strategy.
But Southwest was an upstart that defined a new playing field (point-to-point flights, rather than hub-and-spoke, for one example) that would allow it to reach a desired type of customer (the group of fliers who essentially wanted a more convenient mode of travel than Greyhound without dramatically increasing the cost). In other words, Southwest built a strategy, whereas other airlines simply continued to implement their growth plans. Changing the curtains, if you will, as opposed to placing the window in a new location.
A key criticism of law firms and lawyers is that they tend to follow one another, building a better version of a fairly uniform concept of how to build a practice. Although the planning is often described as strategic planning, it’s usually planning for an old strategy or creating a BD plan that isn’t closely tied to any strategy at all. When did you (or your firm) last take on a review and, if necessary, an overhaul of the strategy underlying your business development plans? Do you know what the current strategy is, beyond seeking clients who need X kind of work and can pay Y kind of dollars?
One line makes this a must-watch video: “While you’re planning, at least one competitor is working on strategy.” Query which camp you (or your firm) belongs to and what result that’s likely to achieve.
Note that I’m not saying you necessarily need to abandon your current strategy and adopt a new one. It may be that you’ve been through the hard work at least somewhat recently and have a strategy that allows you to distinguish yourself from other lawyers and law firms—to win on the playing field of your choice, to use Martin’s words. If that’s the case, check your BD plan to be sure that it’s designed to meet your strategy.
But if you haven’t recently revisited your strategy to determine whether it’s on point—or if you can’t clearly articulate the strategy underlying your BD plan—take this as your sign that it’s time to enter a true strategic planning process. Check out the video for a primer on how to develop a strategy that makes sense for you.

Don’t Surprise Your Client With Your Invoice.

Let’s talk about billing and the effect it can have on your client relationships. Billing is, of course, one of the fundamental business and ethical aspects of practicing law. But it isn’t just that: it’s also a form of relationship development, practice management, and even business development. How you manage billing shows something about your attention to detail, how you clearly and fully communicate with a client, and more.

Most of the time, invoicing is fairly routine. You have an agreement for an hourly or alternative fee arrangement, you and your team track the work you do, that work is reflected on monthly invoices that explain the work completed, you review the invoices and correct or modify them before sending them to your client, and the client pays within a reasonable amount of time.

But what if there’s a fee increase, a delayed bill, or a passage of time that leaves a client surprised by your invoice? Surprise will leave your client dismayed. The legal budget may be strained in unexpected ways, and your client contact may face unpleasant questions from a superior or a corporate Board. You’re guaranteed to get pointed questions about the invoice, and you and your client contact will spend time resolving the issue. Worst of all, trust may be damaged, maybe even broken. This change in your client relationships can further impact your business development process and growth goals.

The good news is that avoiding these problems is simple: communicate about any changes in advance.

  • Planning a fee increase? Notify your clients about the change in advance—don’t just send a bill at the new rate. I’m also hearing that some firms are increasing rates multiple times a year now, without any guideposts for when that may happen. I don’t recommend that: it creates unpredictability and brings undue attention to your fee.
  • An unusually high amount of work to be charged against an annual legal budget? As soon as you see the meter going up, reach out to discuss the work, the spend, and the client’s priorities.
  • Something slipped and you’re sending a late invoice? Give thought to how you’re going to position the tardiness, what effect it will have on the budget and perhaps other pending work, and how it reflects on you as a businessperson. In some cases, you may find that a discount or write-off, perhaps a significant one, makes sense.

The same is true if there’s a misstep in a matter you’re handling that causes your client to conclude that a fee is unduly high or unearned in light of the circumstances. Here, you likely can’t communicate in advance. You may ward off these issues if you evaluate each invoice in context before sending it to the client, but there will be times when a client’s feedback, or its intensity, is surprising. Aim for collaborative communication. Listen to the client’s concerns and emphasize that you value the relationship as you respond. The outcome of the discussion is important, but maintaining trust is likely more important than receiving.

While it’s important that you receive due compensation for your work, be aware that clients are likely watching the bills more closely now than they have in the recent past. Inflation is hitting us all, individuals and corporations alike, and expenses may be increasing without a corresponding increase in income.

Clear communication can help you to manage expectations, prevent surprises, and build or maintain a collaborative approach that leaves your client feeling comfortable that your interests are aligned. Ensuring clear and effective communications with your clients will greatly contribute to your business development strategy and future business growth.

P.S. I have two openings for the new clients this month, and then I will not be accepting new clients again until January 2023. If you’d like help in growing your book of business, let’s have a conversation. Book a complimentary consultation here.

“I’m too busy for business development!”


There’s one objection I hear more than any other from lawyers who want to grow their practices but find themselves stuck: “I’m too busy for business development!

That objection is often factual (sometimes there’s more billable work to do than any reasonable human can accomplish in a day) as well as an unassailable excuse for those who feel resistance to business development. After all, billable work comes first, right?

If you’re feeling a time pinch, consider these questions to determine how to proceed:

  1. Ask whether this busy period is a short-term situation or a long-term one. When might you reasonably expect that your load will be lighter? If it appears that this level of busyness is a new normal, you’ll need to revisit your BD plan and start fresh. A short-term adaptation can keep you moving forward according to your plan, but a long-term situation requires a fresh approach.
  2. Ask whether there’s a way to offload some of your responsibilities to create time for BD. Perhaps this would be a good time to focus your LinkedIn activity on sharing good content created by others (along with an insightful comment) rather than writing something new. Perhaps you could ask a colleague to write a newsletter article that addresses a topic of interest to your clients from another perspective so that you’re off the hook for drafting your own article. (Points as a cross-selling effort!) Or perhaps it’s shifting some personal obligations to free up time for BD.
  3. Determine how much time you can realistically devote to BD during this period and what to do for maximum effect. Whatever your answer may be to this question, block that amount of time out on your calendar and hold it as a high-priority appointment.
  4. Determine the highest value activities that you can complete in the time available. Your BD plan is a living document, so go back to it and re-examine your priorities. If you’ve decided to create a document or course to guide potential clients through an issue related to your practice, for example, you’ll need to decide whether that’s an important enough investment to devote your limited time to it. Unless you’re at the beginning of your BD journey and focusing on establishing your platform and professional brand more than working to bring in new business in the short term, you’ll reap the most benefit from person-to-person contact. Revisit your “A list” and calendar reminders to communicate with those high-value contacts. Set aside 15 minutes for a catch-up call with one of them. Schedule coffee with one of these contacts to explore mutual interests and opportunities. Remember, people are the route to new business, so when you’re busy, be sure you’re staying visible to your most valuable connections.
  5. Calendar a date to re-evaluate your workload. The mistake I see too many lawyers make is putting BD on hold “temporarily” while they’re busier than usual and never moving back to the activities they’d planned. Without some defined end to the busy period (preferably a date to revisit the workload, but possibly also a defined benchmark such as the close of discovery in a large case), it’s easy to let the busy period expand… and expand… and expand. At some point, the hiatus will become so long that resuming BD activity feels like you’re starting from scratch, and that may be a daunting prospect to face. Know how you’ll identify the end of the hiatus and trigger your return to regular BD activity.

Finally, when you’re too busy for regular BD activity, cut yourself a bit of a break—but not too much. Don’t fall prey to all-or-nothing thinking. Business development is a long game, and you will likely go through several periods of reduced activity when you’re unusually busy. As long as those periods are limited and you focus on high-value activities, you can continue moving forward with success.