Client Speak: Trusted Advisor? It's More a Question of WHY Rather Than WHO

A crucial piece of CI is knowing the identity of a key client's Trusted Advisor (or “TA” for short). WHO s/he is may be readily discoverable. But understanding WHY that individual is considered a TA is a far more important intelligence ingredient, almost regardless of whether or not the TA happens to be one of your own firm's client service professionals.

The purpose of this article is to share with you what our Client Feedback interviews have revealed about attaining the status of TA in a much more concise manner than the various books that have been written on the subject. And I don't mean to disparage in any way the highly respected and well-researched works of others. My primary intent is not only to explain the WHY, but also to provide a shortcut for those of you who are looking for an appropriately representative and more accessible listing.

This listing of qualities incorporates the TA criteria that client executives would presumably apply in determining whom to turn to in matters of utmost significance. Who is the first-call? Whose counsel is most often sought?

TA Criteria

In addition to the books about TA, there have also been numerous white papers and articles. And whole programs have been structured around the subject. I'll try not to repeat most of what they say. But there will be some overlap.

First, allow me to reflect back to several years ago when a senior partner ' and outstanding client handler ' at a major multinational firm challenged me to come up with a listing of requisite qualifications for a “world-class Relationship Partner.” He said he would develop his own list and we would then compare the lists to see whose was better.

While I was familiar with some of the TA bibliography, I tried to put that out of my mind and set forth a list based solely on what I had gleaned from the thousands of Client Feedback interviews we had conducted. When my list was about a yard long, I realized I'd have to be more selective. It also became apparent that there were some obvious categories to which various of the items on the list should be allocated for it to be most useful.

After much culling and allocating, the TA criteria I finally arrived at consisted of three categories, each with roughly eight distinctive qualities. Over the past few years, I've made only minor refinements to the list, but have not made any changes to the categories or the number of qualities ' they've always totaled around 24.

Incidentally, the senior partner preferred my list. He never showed me his.

The 3 Categories and 24 Qualities

Being considered as a TA, or ideally the TA, is the goal of many of the Lead Partners I've worked with. Those who have achieved that status not only possess various desirable personal characteristics, but also demonstrate essential client service capabilities. Taken together, these characteristics and capabilities have helped create certain necessary and favorable impressions in the minds of their clients. Listed below (not necessarily in the order of importance) are the characteristics, capabilities and impressions that have made these partners uniquely successful:

Personal Characteristics

• Candor
• Ethics and integrity
• Intelligence and pragmatism
• Independence and objectivity
• Professionalism
• Technical competence
• Listening skills
• People-handling skills.

Client Service Capabilities

• Understanding the client ' its business, its goals, its people, its culture.
• Volunteering technical and business insights and ideas ' being proactive.
• Delivering quality people and quality work when and where necessary.
• Coordinating and controlling all services worldwide.
• Being involved, visible, available, responsive.
• Managing expectations.
• Representing the firm ' firm information, all services, best practices.
• Impartially evaluating firm and client personnel.

Clients' Impressions

• Inspires confidence.
• Has the client's interests at heart.
• “Treats me as [his/her] most important client.”
• Enjoyable to do business with and to be with ' “I like her.”
• Deals effectively at all levels within a client's organization.
• Exceeds expectations.
• Is sensitive to fees and their relationship to the significance of the work.
• Adds value.

While there is probably much more that can be added, for the most part the balance of my initial yard-long list can be subsumed under one or more of the qualities listed. That's not necessarily to say that the list is exhaustive. But I also don't believe more is necessary. Furthermore, lacking one or two of the listed qualities might conceivably disqualify a prospective TA candidate.

So is this a complete list? I'll let you decide. And if you feel it's deficient in any way, kindly let me know. But, whether you agree or not, there is one additional and critical element for you to be mindful of, and that is the role of the firm itself.

The Indispensable Role of the Firm

It is almost a truism that the highest accolade that a client executive can bestow on a client service professional is to refer to him/her as one who has earned the client executive's trust and, thus, has become a TA. Many interviewees have remarked that a Lead Partner's “clout” within his/her own firm is an essential element in being perceived as a TA: “Can [my Lead Partner] put together an 'A Team' for whenever and wherever I need it?” However, the Lead Partner's perceived “clout” is often determined not just by his personal standing within the firm, but also by the firm's culture and style of management.

For example, in discussing the firm that was serving them, senior members of management of a significant multinational client had the following observations: “[We] really don't know how [the firm] functions. How they measure people and organize their teams is not evident. It seems that it is left entirely up to the Lead Partner and how strong he is with other partners [and other offices]. We sense that the firm is making it up as it goes along.” In contrast, they remarked that two competing firms “both seem much more organized in terms of process, and their top-down approach is much more efficient and well managed.”

Accordingly, to be considered as a TA most often will require more than just the necessary attentiveness and contributions by the Lead Partner. What more is needed will be the absolute support and commitment of the firm. In other words, with regard to a specific client or client executive, the TA label has to be earned not just by the Lead Partner but by the firm as well.

TA's Importance Today

Dramatic changes have occurred in the legal marketplace, all the way from how personnel are acquired to how legal services are bought and paid for. And many forecast that changes will continue to reshape the way legal business is done. One way to ameliorate the impact on client relationships is to continuously strive to maintain an aura of trust, particularly with the firm's key clients.

The effect of these marketplace changes on fees and billing, in particular, has been the subject of considerable discussion. However, as I indicated in my article on Alternative Fee Arrangements that appeared in the July 2009 issue of this publication: “Where there is quality work, candor, evident value provided, effective engagement management and relationship management, and ' most importantly ' trust, then fees will never be a problem. And AFAs will either be unnecessary or will be easily arrived at. Why? Because whatever issues arise will be resolved to each party's benefit and satisfaction as a result of the mutual respect and understanding that has been developed.”

Similarly, in the March 2009 second edition of his comprehensive “The LegalBizDev Guide to Alternative Fees,” Jim Hassett asserted, ” ' when you set a fixed fee, you will have to come up with your best guess, and move on. Then keep the agreement as simple as possible, because fixed price agreements work best in an atmosphere of trust.”

But keep in mind that relationships based on trust are unique and must be continuously nourished. Also, TAs are distinctive. There aren't great numbers of them. And in the present environment, where it's becoming increasingly more difficult to obtain and retain clients, it's important to know whether you're one. If so, use that edge to secure your position with those current clients, and also focus those same qualities on prospective clients who may not have such an existing relationship.

But What About Tomorrow?

“The best of times is now, is now, is now” proclaims the lyrics to one of the hit songs from a recently opened Broadway musical. Unfortunately, there aren't many in the legal profession who would agree. However, other lyrics from the same song would be hard to refute: ” ' as for tomorrow, well, who knows, who knows, who knows? ' tomorrow is too far away.” But that hasn't stopped the prognosticators. There are many mixed messages out and about opining on what will befall the legal profession going forward.

For example, in a recent presentation to the New York Chapter of the Legal Marketing Association on April 15, Bruce MacEwen stated that AFAs do not necessarily equate to lower profits. Rather, they are but one result of clients wishing to elevate their law firm relationships to a more businesslike level. However, in explaining why detailed bills were required, one General Counsel confided in Bruce that he didn't trust his attorney and added, “I don't want to get ripped off.”

Bruce recommended that firms reemphasize the importance of the TA role. While that may not get them back to where they were in the past few years, Bruce contends that it will at least assure the firms' survival and profitability. On balance, he was more optimistic about the future than many others, at least with regard to the U.S. market.

A more somber perspective and different viewpoint on the future of TAs was put forth in a recent report by the UK firm Eversheds entitled “Law Firm of the 21st Century: The clients' revolution.” Based on a survey of 130 General Counsel and 80 law firm partners, presumably drawn from a global universe, the report provides no geographic breakdown except as regards the use of AFAs, where it notes a distinct difference between the UK and both the U.S. and continental Europe.

No similar geographic distinction, if indeed one exists, is referred to in the following excerpt from the Eversheds' report regarding the subject of this article: “With the credit crisis and recession, the boundaries of the client-lawyer relationship are being redrawn. General Counsel are more likely to occupy the role of trusted adviser to the business. Although law firms still aspire to this role, they are seen by the in-house lawyer as service providers and, at best, close collaborators. This dynamic is demonstrated by a reduction in loyalty among General Counsel: 73% admitted to either changing or reducing the number of their external legal advisers as a result of the recession. Over half said as their in-house capabilities increased, they would only look to external lawyers as a source of highly specialized advice.”

You'll have to decide which of the foregoing and the many other possibly conflicting prognostications are the most relevant based on the unique circumstances of your particular firm, and then proceed accordingly. All things considered, striving for TA status still appears to be very much a no-lose situation with potentially a considerable amount to gain.

Marketing's Role

Almost everyone looks for and wishes s/he had a TA, at least sometime during their working or professional lives. When we start out, we call them mentors. Years later, after we attain the success and stature we think we deserve, they may take different forms ' e.g., eminent colleagues, fellow senior partners, managing partner or, even, “members of my board of directors.”

So, whatever milestone one reaches, it's most useful to have a TA to turn to as a confidant for candid, objective and knowledgeable advice and counsel. Thus, as you observe client service professionals progressing along the path from mentees to hopefully becoming a TA, is it realistic for professional services marketing professionals to aspire to progress along a similar path? Well, why not?

Presumably your client list as a marketing professional will be much different. Instead of external clients, it will include primarily those very same client service professionals who are looking to attain TA status. And one of your principal responsibilities should be to help get them there. Use the above list and, if they're successful, you in turn may well become their TA. By then, you will be well on your way to “a seat at the table.”

I trust that the list of 24 qualities will help get you there. Go for it!

Donald E. Aronson is CEO of D. E. Aronson Associates LLC and a member of this newsletter's Board of Editors. Located in New York City, he can be reached at 212-874-4181 or [email protected]. Copyright ' 2010 by D. E. Aronson Associates LLC.

A crucial piece of CI is knowing the identity of a key client's Trusted Advisor (or “TA” for short). WHO s/he is may be readily discoverable. But understanding WHY that individual is considered a TA is a far more important intelligence ingredient, almost regardless of whether or not the TA happens to be one of your own firm's client service professionals.

The purpose of this article is to share with you what our Client Feedback interviews have revealed about attaining the status of TA in a much more concise manner than the various books that have been written on the subject. And I don't mean to disparage in any way the highly respected and well-researched works of others. My primary intent is not only to explain the WHY, but also to provide a shortcut for those of you who are looking for an appropriately representative and more accessible listing.

This listing of qualities incorporates the TA criteria that client executives would presumably apply in determining whom to turn to in matters of utmost significance. Who is the first-call? Whose counsel is most often sought?

TA Criteria

In addition to the books about TA, there have also been numerous white papers and articles. And whole programs have been structured around the subject. I'll try not to repeat most of what they say. But there will be some overlap.

First, allow me to reflect back to several years ago when a senior partner ' and outstanding client handler ' at a major multinational firm challenged me to come up with a listing of requisite qualifications for a “world-class Relationship Partner.” He said he would develop his own list and we would then compare the lists to see whose was better.

While I was familiar with some of the TA bibliography, I tried to put that out of my mind and set forth a list based solely on what I had gleaned from the thousands of Client Feedback interviews we had conducted. When my list was about a yard long, I realized I'd have to be more selective. It also became apparent that there were some obvious categories to which various of the items on the list should be allocated for it to be most useful.

After much culling and allocating, the TA criteria I finally arrived at consisted of three categories, each with roughly eight distinctive qualities. Over the past few years, I've made only minor refinements to the list, but have not made any changes to the categories or the number of qualities ' they've always totaled around 24.

Incidentally, the senior partner preferred my list. He never showed me his.

The 3 Categories and 24 Qualities

Being considered as a TA, or ideally the TA, is the goal of many of the Lead Partners I've worked with. Those who have achieved that status not only possess various desirable personal characteristics, but also demonstrate essential client service capabilities. Taken together, these characteristics and capabilities have helped create certain necessary and favorable impressions in the minds of their clients. Listed below (not necessarily in the order of importance) are the characteristics, capabilities and impressions that have made these partners uniquely successful:

Personal Characteristics

• Candor
• Ethics and integrity
• Intelligence and pragmatism
• Independence and objectivity
• Professionalism
• Technical competence
• Listening skills
• People-handling skills.

Client Service Capabilities

• Understanding the client ' its business, its goals, its people, its culture.
• Volunteering technical and business insights and ideas ' being proactive.
• Delivering quality people and quality work when and where necessary.
• Coordinating and controlling all services worldwide.
• Being involved, visible, available, responsive.
• Managing expectations.
• Representing the firm ' firm information, all services, best practices.
• Impartially evaluating firm and client personnel.

Clients' Impressions

• Inspires confidence.
• Has the client's interests at heart.
• “Treats me as [his/her] most important client.”
• Enjoyable to do business with and to be with ' “I like her.”
• Deals effectively at all levels within a client's organization.
• Exceeds expectations.
• Is sensitive to fees and their relationship to the significance of the work.
• Adds value.

While there is probably much more that can be added, for the most part the balance of my initial yard-long list can be subsumed under one or more of the qualities listed. That's not necessarily to say that the list is exhaustive. But I also don't believe more is necessary. Furthermore, lacking one or two of the listed qualities might conceivably disqualify a prospective TA candidate.

So is this a complete list? I'll let you decide. And if you feel it's deficient in any way, kindly let me know. But, whether you agree or not, there is one additional and critical element for you to be mindful of, and that is the role of the firm itself.

The Indispensable Role of the Firm

It is almost a truism that the highest accolade that a client executive can bestow on a client service professional is to refer to him/her as one who has earned the client executive's trust and, thus, has become a TA. Many interviewees have remarked that a Lead Partner's “clout” within his/her own firm is an essential element in being perceived as a TA: “Can [my Lead Partner] put together an 'A Team' for whenever and wherever I need it?” However, the Lead Partner's perceived “clout” is often determined not just by his personal standing within the firm, but also by the firm's culture and style of management.

For example, in discussing the firm that was serving them, senior members of management of a significant multinational client had the following observations: “[We] really don't know how [the firm] functions. How they measure people and organize their teams is not evident. It seems that it is left entirely up to the Lead Partner and how strong he is with other partners [and other offices]. We sense that the firm is making it up as it goes along.” In contrast, they remarked that two competing firms “both seem much more organized in terms of process, and their top-down approach is much more efficient and well managed.”

Accordingly, to be considered as a TA most often will require more than just the necessary attentiveness and contributions by the Lead Partner. What more is needed will be the absolute support and commitment of the firm. In other words, with regard to a specific client or client executive, the TA label has to be earned not just by the Lead Partner but by the firm as well.

TA's Importance Today

Dramatic changes have occurred in the legal marketplace, all the way from how personnel are acquired to how legal services are bought and paid for. And many forecast that changes will continue to reshape the way legal business is done. One way to ameliorate the impact on client relationships is to continuously strive to maintain an aura of trust, particularly with the firm's key clients.

The effect of these marketplace changes on fees and billing, in particular, has been the subject of considerable discussion. However, as I indicated in my article on Alternative Fee Arrangements that appeared in the July 2009 issue of this publication: “Where there is quality work, candor, evident value provided, effective engagement management and relationship management, and ' most importantly ' trust, then fees will never be a problem. And AFAs will either be unnecessary or will be easily arrived at. Why? Because whatever issues arise will be resolved to each party's benefit and satisfaction as a result of the mutual respect and understanding that has been developed.”

Similarly, in the March 2009 second edition of his comprehensive “The LegalBizDev Guide to Alternative Fees,” Jim Hassett asserted, ” ' when you set a fixed fee, you will have to come up with your best guess, and move on. Then keep the agreement as simple as possible, because fixed price agreements work best in an atmosphere of trust.”

But keep in mind that relationships based on trust are unique and must be continuously nourished. Also, TAs are distinctive. There aren't great numbers of them. And in the present environment, where it's becoming increasingly more difficult to obtain and retain clients, it's important to know whether you're one. If so, use that edge to secure your position with those current clients, and also focus those same qualities on prospective clients who may not have such an existing relationship.

But What About Tomorrow?

“The best of times is now, is now, is now” proclaims the lyrics to one of the hit songs from a recently opened Broadway musical. Unfortunately, there aren't many in the legal profession who would agree. However, other lyrics from the same song would be hard to refute: ” ' as for tomorrow, well, who knows, who knows, who knows? ' tomorrow is too far away.” But that hasn't stopped the prognosticators. There are many mixed messages out and about opining on what will befall the legal profession going forward.

For example, in a recent presentation to the New York Chapter of the Legal Marketing Association on April 15, Bruce MacEwen stated that AFAs do not necessarily equate to lower profits. Rather, they are but one result of clients wishing to elevate their law firm relationships to a more businesslike level. However, in explaining why detailed bills were required, one General Counsel confided in Bruce that he didn't trust his attorney and added, “I don't want to get ripped off.”

Bruce recommended that firms reemphasize the importance of the TA role. While that may not get them back to where they were in the past few years, Bruce contends that it will at least assure the firms' survival and profitability. On balance, he was more optimistic about the future than many others, at least with regard to the U.S. market.

A more somber perspective and different viewpoint on the future of TAs was put forth in a recent report by the UK firm Eversheds entitled “Law Firm of the 21st Century: The clients' revolution.” Based on a survey of 130 General Counsel and 80 law firm partners, presumably drawn from a global universe, the report provides no geographic breakdown except as regards the use of AFAs, where it notes a distinct difference between the UK and both the U.S. and continental Europe.

No similar geographic distinction, if indeed one exists, is referred to in the following excerpt from the Eversheds' report regarding the subject of this article: “With the credit crisis and recession, the boundaries of the client-lawyer relationship are being redrawn. General Counsel are more likely to occupy the role of trusted adviser to the business. Although law firms still aspire to this role, they are seen by the in-house lawyer as service providers and, at best, close collaborators. This dynamic is demonstrated by a reduction in loyalty among General Counsel: 73% admitted to either changing or reducing the number of their external legal advisers as a result of the recession. Over half said as their in-house capabilities increased, they would only look to external lawyers as a source of highly specialized advice.”

You'll have to decide which of the foregoing and the many other possibly conflicting prognostications are the most relevant based on the unique circumstances of your particular firm, and then proceed accordingly. All things considered, striving for TA status still appears to be very much a no-lose situation with potentially a considerable amount to gain.

Marketing's Role

Almost everyone looks for and wishes s/he had a TA, at least sometime during their working or professional lives. When we start out, we call them mentors. Years later, after we attain the success and stature we think we deserve, they may take different forms ' e.g., eminent colleagues, fellow senior partners, managing partner or, even, “members of my board of directors.”

So, whatever milestone one reaches, it's most useful to have a TA to turn to as a confidant for candid, objective and knowledgeable advice and counsel. Thus, as you observe client service professionals progressing along the path from mentees to hopefully becoming a TA, is it realistic for professional services marketing professionals to aspire to progress along a similar path? Well, why not?

Presumably your client list as a marketing professional will be much different. Instead of external clients, it will include primarily those very same client service professionals who are looking to attain TA status. And one of your principal responsibilities should be to help get them there. Use the above list and, if they're successful, you in turn may well become their TA. By then, you will be well on your way to “a seat at the table.”

I trust that the list of 24 qualities will help get you there. Go for it!

Donald E. Aronson is CEO of D. E. Aronson Associates LLC and a member of this newsletter's Board of Editors. Located in New York City, he can be reached at 212-874-4181 or [email protected]. Copyright ' 2010 by D. E. Aronson Associates LLC.