How to encourage partners to embrace a cross-selling model

In a recent blog entry, one of my colleagues on the editorial board suggested that, as a general rule, cross-selling within law firms doesn’t work. I happen to agree with the author on various points, as many firms seem to have existing barriers in place that prevent the sharing of work across their respective partnerships.

That said, I disagree in principle that cross-selling is an unattainable accomplishment, as I strongly believe that some firms are structured and managed in such a way as to reward individuals for the sharing of clients. Those firms have been able to shape firm culture to embrace, rather than fight, the concept of cross-selling.

To be successful, law firms must find a way to:

a)      recognise and communicate the inherent benefits of cross-selling, and

b)      develop legitimate incentives for sharing work throughout the partnership.

At our law firm, servicing clients across a multitude of offices and practices isn’t simply a plaintive entreaty from management; we view it instead as a necessary and critical component of our firm’s ongoing growth as a global organisation.

K&L Gates has invested heavily to enter new markets and practices in order to serve clients more broadly, but this growth has also been fuelled by a strong commitment from our lawyers that they will take full advantage of the global platform. As a result, rather than hoarding clients and working for themselves, partners actively reach out to colleagues throughout the firm to cultivate deeper internal relationships.

We closely track and measure a variety of cross-selling metrics and have observed steady and significant gains over time. From a return on investment perspective, there have been measurable benefits to individuals as well as to the firm overall.

Much has been written in the pages of Managing Partner and elsewhere on the topic of how to change culture. There is no obvious or definitive answer to that question, but I believe that, in order for shifts in culture to occur, firms must have an appropriate base structure in place.

For some organisations, firm culture may be more malleable than others, whereas for other firms, their culture may have become so ossified over time that it is entirely possible that any significant change to the culture could also lead to the death of the organisation itself.

Perhaps setting a goal of modifying behaviours is more achievable than attempting to change a culture that is already firmly entrenched.

 

Key considerations

There are a number of factors that could potentially affect the plans of a firm to develop an effective cross-selling culture, including but not limited to the following.

1. Size of firm

Smaller firms may have a natural advantage over larger firms, for the simple fact that there are less people who need to adopt and embrace the change. It’s far easier, after all, to change direction in a 14-foot motorboat than it is to turn the Queen Mary 2 around.

2. Length of time in a particular market

It may be more difficult for firms that have been operating for a relatively long time to change behaviours than for firms that have shorter histories.

Likewise, if a firm has gone through rapid growth in a relatively short amount of time, this may allow the organisation to fluidly adapt its culture to fit the new makeup of the firm.

3. Structure

Some firms operate within a model that doesn’t allow for easy communication or collaboration across offices. If offices operate as separate profit pools, for instance, they have less incentive to be collaborative than if profits are maintained in a central pool, a system through which all players have a shared stake in the same game.

4. Incentives

Firms need to make sure that they are properly rewarding partners for sharing their clients. By ensuring that lawyers who maintain the primary client relationship get some measure of credit for work that they originate but don’t necessarily service directly, there is a built-in model of success for all parties involved.

As law firms attempt to modify firm culture and shift historic attitudes and behaviours, it might be worth considering the above factors before embarking on any particular path.