Slowly, law firms are evolving into sales organizations. Ready or not psychologically, that’s where they’re heading. However slowly (agonizingly to some, perhaps), it’s going to happen. Why? Because they have no choice. The immutable laws of the market demand that all products and services mature, which means that eventually, they all get so good that there are no meaningful differences among offerings. When everyone’s “product” is great, who gets the business? It comes down to the relative effectiveness and impact of their respective sales forces.
In every mature category, every company has good products. Look at the new car category. The least expensive, bare-bones new economy car has the whole package – power, steering, suspension, braking and overall performance, and fit and finish – that 20 years ago were found only in elite European luxury cars. Despite the demonstrable excellence of virtually all automotive products, a lot of manufacturers are hurting. They have proved that no product, no matter how good, sells itself, and the best product doesn’t always win. (Remember Beta, acknowledged by engineers to be the superior video format? The “inferior” VHS made them extinct because they marketed and sold VHS better.)
Professional services are different, you say? Let’s see.
Whenever lawyers or legal media put together “Best Of” lists, the implication is that there is a meaningful difference between #1, #20 and #50 in a category. Take M&A, for instance. In terms of legal capability, what AmLaw 100 firm couldn’t handle 90% of corporate acquisitions or divestitures? I’m not trivializing anyone’s skill, dedication, focus or commitment. I’m merely recognizing the fact that we have lawyers in our ResultsPath training program in firms of virtually every description throughout the U.S. – not just in financial centers such as NY, Chicago or Boston – that have been selected by Fortune 500 companies to assess, guide and execute those transactions.
Even if you argue that above a certain transaction value, say $50 billion, the list of firms that are legitimately considered for such work is small. OK, let’s call it a half-dozen. Within that elite tier, buyers know that if they had to, they could throw a dart at the list and use a randomly chosen firm without worry. So, where’s the product differentiation, the basis for buyer preference?
Let’s look at the four remaining Big Accounting/Consulting firms. What does PwC know that Deloitte or KPMG doesn’t? Is there any actual risk in selecting KPMG instead of Accenture?
That lawyers have escaped this harsh reality for a little longer than accountants, bankers, IT consultants, etc. has merely been accidental good fortune – emphasis on past tense. It is arguable, however, that the day of reckoning is nigh, if not already here.
The only controllable, sustainable basis for differentiation is the excellence of your sales force – and by extension, your sales support functions, e.g., marketing, research, intelligence gathering, data mining, etc. Yeah, you have to keep up, quality-wise, but it merely keeps you in the game. To win, you better get serious about creating a sales force that can make a difference.
So, what do you think?
