Why Is Law Firm Business Development Research Still So Manual?
Business development teams at law firms are asked questions every day that sound relatively straightforward.
What do we know about this company? Who at the firm knows the general counsel? Have we pitched them before? What has happened at the company recently? Which lawyers have relevant experience? Do we represent any of their investors, executives or portfolio companies? Who should be in the meeting?
Finding the answers often requires pulling information from several different places. The information may already exist, but it can be spread across different systems, public sources, lawyers' inboxes and the knowledge of people throughout the firm. Someone still has to find it, determine what matters and put the pieces together in a way that helps a lawyer decide what to do next.
This is where business development research can become much more useful.
Start With the Business Development Question
The research should start with what the lawyer is trying to accomplish.
Preparing for an introductory meeting with a prospective client requires different information from preparing for a pitch. Researching an existing client for a relationship review is different from identifying companies that may be good prospects for the firm.
If a lawyer is meeting the general counsel of a prospective client next week, the most useful research may include what has changed at the company, the general counsel's background, existing relationships between the company and the firm, relevant matters the firm has handled and developments that could be useful to know before the conversation.
Prospecting requires a different approach. Which companies are experiencing developments that could create legal needs? Which companies align with the firm's experience? Does anyone at the firm already have a relationship with the company or its leadership? Is something happening now that gives a lawyer a natural reason to reach out?
Knowing what the lawyer is trying to accomplish makes it much easier to determine what information will actually be useful.
Company Research Is Only One Part of the Picture
Company information is often the first place business development research begins. Recent acquisitions, financings, leadership changes, new products, geographic expansion, litigation, regulatory developments and other business activity can all provide useful context.
The next step is understanding why a particular development matters and whether it connects to something the firm can help with.
A company entering a new market may encounter employment, regulatory, real estate, tax or other legal issues. An acquisition can create needs involving financing, integration, executive compensation, technology or regulatory matters. A new general counsel may bring different priorities, relationships and outside counsel preferences.
Connecting what is happening at the company with the firm's experience makes the research much more useful to the lawyer receiving it.
Relationship Research Can Change the Approach
Before someone reaches out to a prospect, it is worth finding out whether a relationship already exists somewhere within the firm.
A partner in another office may know the CEO. A lateral lawyer may have worked with the general counsel at a previous firm. Someone may have served on a board with one of the executives. Another lawyer may have represented the company's investor, founder or another member of the leadership team.
Knowing about those relationships can influence who reaches out, how the outreach is made and what context the lawyer has going into the conversation.
The nature of the relationship matters too. Seeing that two people know each other is helpful. Knowing how they know each other, when they last interacted and whether someone would be comfortable making an introduction provides much more context.
Relationship intelligence adds another layer to business development research by helping firms understand the connections around a company and the people behind them.
Look at What the Firm Already Knows
Law firms often have useful information about a company long before a new research request comes in.
The firm may have pitched the company previously. A lawyer may have met one of its executives at a conference. Another practice may already represent a related organization. Someone may have had a conversation with the company several years ago that provides useful background today.
There may also be relevant information in past matters, experience databases, CRM records, pitch materials and business development notes.
Looking at what the firm already knows can save time and provide context that would be difficult to find through external research alone. A previous pitch may show which practices were of interest. An old meeting note may identify a relationship worth revisiting. Work for an investor, portfolio company or related organization may provide another connection to the company.
This information becomes especially useful when it is reviewed alongside what is happening at the company now.
Research the People as Carefully as the Company
Business development research should also include the people involved.
Before an important meeting, look at who will be in the room. Where have they worked? How long have they been with the company? What are their responsibilities? Have they worked with anyone at the firm before? Are there previous employers, professional organizations, boards or other connections that provide useful context?
Changes in leadership can also create reasons to revisit a relationship. A new general counsel, CFO or other senior executive may already know lawyers at the firm from a previous role. Someone who moves from an existing client to another company can create a new connection. A leadership change at a current client may also be a good time to review who else at the organization has relationships with the firm.
Looking at the people alongside the company provides a fuller picture before outreach or an important meeting.
Give Lawyers Information They Can Use
A longer research report is not necessarily a more useful one.
A lawyer preparing for a meeting usually needs the information that is most relevant to the conversation. That might include recent company developments, background on the people attending, existing firm relationships, relevant firm experience, previous interactions with the company and several issues worth knowing about before the meeting.
The research can also identify possible next steps. Is there someone at the firm who could make an introduction? Is another lawyer's experience particularly relevant? Has something happened at the company that gives the lawyer a timely reason to reach out? Was something discussed in a previous conversation that should be revisited?
A concise briefing that helps a lawyer prepare for the conversation and identify what to do next can be much more valuable than a large amount of information without context.
Capture What Happens After the Research
Some of the most useful business development information comes out of the meeting itself.
A lawyer may learn that a company is considering an acquisition, entering a new market, hiring a senior executive or reviewing outside counsel. A client may mention an issue that another lawyer at the firm could help with. A prospect may ask for an introduction or additional information.
Capturing those details gives the firm more context for the next conversation and helps make sure agreed-upon follow-up happens.
This can be as straightforward as recording a few useful notes after an important meeting: what the client or prospect discussed, what matters to them, what follow-up was promised and who is responsible for it.
Over time, those details help build a much better picture of the relationship.
Look at the Questions the BD Team Is Answering Repeatedly
The questions lawyers ask the business development team can tell you a lot about where information is difficult to find.
Who do we know there?
What has happened at the company recently?
Have we pitched them before?
Who represents them now?
Which of our lawyers has relevant experience?
What portfolio companies do they own?
Who should I bring into this meeting?
If the same questions require significant research every time they come up, it is worth looking at how those answers are being assembled.
Take several recent research requests and trace the process. Which systems did the team search? Which public sources were used? Did someone have to email several people to find a relationship? How much time did the research take? Was useful information found after the meeting or pitch had already happened?
Looking at a few real examples can help identify where information could be easier to find and where the research process could be more efficient.
Make Business Development Research Easier to Act On
Most law firms already have a tremendous amount of information about their clients, prospects, relationships and experience. The challenge is connecting the right information when someone needs it.
A company development is more useful when a lawyer can understand why it matters. A relationship is more useful when the firm knows the context behind it. Internal knowledge is more valuable when the people working on an opportunity can find it at the right time.
When those pieces come together, business development teams can spend more time helping lawyers understand the opportunity, prepare for conversations and determine the right next step.
How Gatsby Can Help
Gatsby helps law firms turn scattered company and relationship information into useful intelligence for business development, client growth and relationship management.
Gatsby Intel helps firms research companies and use that information for prospecting, client development and other business development activities. Gatsby Aware helps firms better understand the relationships that exist across their organization.
Together, company and relationship intelligence can give business development teams and lawyers a more complete picture of an opportunity. What is happening at the company? Who does the firm know? What does the firm already know about the organization? Is there a timely reason to engage? Who is best positioned to reach out?
Having more of that context available can reduce the amount of time spent piecing together information and help teams focus on what to do with it.
Frequently Asked Questions
What is law firm business development research?
Law firm business development research brings together information that can help lawyers and business development teams prepare for client conversations, identify prospective clients and pursue new opportunities. It can include company developments, information about key people, existing firm relationships, relevant experience, previous interactions and other information that provides useful context.
What should be included in research before a client or prospect meeting?
The information will depend on the purpose of the meeting, but a useful briefing may include recent company developments, background on the people attending, existing firm relationships, relevant legal experience, previous interactions with the organization and issues that may be useful to discuss.
How is relationship intelligence different from company research?
Company research provides information about the organization and what is happening within the business. Relationship intelligence provides information about the people and connections surrounding the organization. Looking at both can help a firm understand why there may be an opportunity and who may be best positioned to pursue it.
How can law firms make business development research more efficient?
Start by looking at the questions the business development team answers repeatedly and how the information is currently found. Review which systems are searched, which people need to be contacted and how much time it takes to assemble the answer. This can help identify information that could be easier to access and steps in the process that are being repeated unnecessarily.
How can business development research lead to new opportunities?
Useful research can identify a development at a company, connect it with relevant firm experience and show whether someone at the firm already has a relationship with the right person. From there, the business development team can help determine an appropriate next step, whether that is outreach, an introduction, a meeting or follow-up on an existing conversation.