The First Law Firm Value Consultancy
By focusing on operational "trees"--marketing, business development, pricing--law firm leaders are missing the "forest" that connects all these operations: VALUE. For any professional services firm, VALUE is the source and summit of success. Law firms have been ignoring this not-so-secret weapon for too long. VALUE is VITAL.
Value Vantage works with law firm leaders to grow revenue and profits by harnessing the power of VALUE. Starting with a broad vantage, we help firm leaders to be conscious about their VALUE, to identify opportunities to create VALUE, to improve how they sell and price VALUE, and ensure they meet clients' expectations of VALUE.
12 DIMENSIONS of VALUE
Value Assessment
A law firm must understand why it is in business and how it is distinct from its competitors. A Value Assessment identifies the core attributes of your firm. It is not a SWOT Analysis.
Value Communication
Defining, selling, and delivering Value requires a unique set of messaging. Law firms need to develop strong and effective Value Communication.
Value Destroyers
Law firms invest a great deal of resources into converting Buyers into Clients. When firms fall short of client expectations, they destroy Value. Top Destroyers include Budgets, Deadlines, and Staffing.
Value Drivers
Buyers seek Value. They are motivated by specific interests (aka Drivers). The challenge for law firms is to uncover each Buyer's Drivers. Then firms can begin to create a Value match.
Value Equation
A law firm needs to understand how its services add Value. The Value Equation measures how your attributes benefit your client more than the costs a client must absorb.
Value Erosion
Value diminishes over time. A "value-add" eventually devolves to a "table stake." The Kano Curve provides a visual guide. Law firms must manage Value Erosion.
Value Migration
Clients tend to evolve their definition of Value as their business and industry evolve. Law firms also evolve over time. Both cause Value Migration, which hinders unfocused law firms.
Value Monetization
Once a law firm invests in understanding its Value, it must understand how to monetize its Value. This includes lawyers, practice groups, and even products.
Value Pricing
The rise of AFAs has increased the focus on Value Pricing. When clients and firms focus on Benefits rather than Costs, Value becomes the driver of Price Negotiations.
Value Propositions
Law firms that include Value in the sales process rely on Value Propositions to communicate with Buyers, which requires defining VPs and training partners how to use VPs.
Value Strategy
A law firm's Value Strategy identifies its central characteristic (e.g., bigger, cheaper, faster, nicer, smarter, stronger, responsive, results).
Value Tug-O-War
Clients and law firms seek Value equally. How much Value each gets starts with Price: clients have a ceiling and firms have a floor. The Value Tug-O-War will determine who wins.
VALUE IS VITAL
Law firm leaders have devoted too much time on the trees without understanding the many dimensions of Value.
IT'S TIME TO FOCUS ON THE FOREST.
GETTING STARTED
Below are three resources that provide an excellent introduction to the many dimensions of Value.
Defining Value
This ALA article provides a concise introduction to "Driving Revenue" with Value and Value Propositions.
Talking Value
This book chapter takes law firm leaders on a journey to improve their firms by "Learning to Talk Value."
Value Bike
This ABA article illustrates, literally, how Relationships and Work Product connect to drive Value.
The Legal Industry's Chief Value Officer
Patrick Johansen is the "Voice of Value" for Law Firms
For nearly a decade, Patrick has worked with law firm leaders on value-related activities: marketing, business development, pricing, billing, collections, client care, and strategy. During that time, he has developed one of the most advanced understandings of Value in the industry. He is a member of the Creating Value Alliance.
Patrick Johansen, Chief Value Officer, Value Vantage
Email: patrick@lawfirmvalue.com
Mobile: 312-504-4142
