12 Ways to Avoid Competing on Price Alone for New Legal Work©

1. Strategically review and assess the firm’s current RFP intake and response process. Make no mistake – it is a process that is ripe for efficiency improvements and can be optimized using Six Sigma techniques.
2. Proactively and regularly discuss fees/costs/budgets with key clients – use annual reviews, focus groups and a dedicated, in-house or external professional to plan, and have these conversations regularly.
3. Educate all lawyers and relevant staff on how to select which RFPs to respond to, the firm’s qualification criteria, and how to plan and have strategic conversations/communications. Institutionalize an accompanying pipeline and follow-up process.
4. Create and maintain a competitive rate and pricing database within the firm, using relevant outside subscription resources such as TyMetrix, Peer Monitor, Serengeti, Sky Analytics, Real Rate, etc.
5. Learn about and educate lawyers on the pricing process, and stress to lawyers that the firm and the client might interpret differently the meaning of the following terms: price, cost, total cost, value, estimate, quote, budget, realization, bill and invoice from both the firm and clients’ perspectives.
6. Educate lawyers on how to scope and budget a case or matter, and provide them with coaching assistance with RFPs.
7. Hire a dedicated, experienced sales professional to create a proactive client development strategy and program – identify key clients and targets of greatest value, those at risk, and wish-list clients. Create a proactive strategic communication effort to secure and enhance the relationships and/or request to be added to relevant RFP distribution lists.
8. Identify and focus on relevant high-value, niche, exclusive markets and services. Work proactively to get on relevant RFP distribution lists.
9. Create and internally market a pricing and billing tool kit for all lawyers in your firm. Doing so will minimize nonbillable time spent on billing, invoicing, pricing and reporting.
10. Create, maintain, use and educate all lawyers and relevant staff on inventories/menus and/or databases for the following:                                                                                   a. Value-added features, services and options                      b. Pricing analytics, AFA options, total cost, break-even        c. Estimates, budgeting, billing options, templates and communications                                                                        d. Prior work product/knowledge
11. Develop value-added services and new services, and bundle, package, and/or repackage services or products.
12. Identify new markets and buyers in a data-driven, trackable manner, then create and implement a proactive positioning strategy and outreach program.