The Multi-Faceted Value of Being a Good Client

I learned a valuable lesson as a fifth-year associate at a large law firm.?I was fortunate enough to be working on a significant high-profile matter with the managing partner of our office.?It was the sort of matter that any young lawyer would be thrilled to be working on, a case that involved a prominent organization as a client, press coverage, and rapid proceedings that ensured I wouldn’t be buried in paper for years.?Unfortunately, it also featured a primary client contact who was, to use a euphemism, “difficult.”?I will leave it at that.

When the matter ended, the result was excellent, which the client begrudgingly recognized – though he said it “could have been better.”?As I sat in the managing partner’s office, with the client on speakerphone, we discussed the outcome and next steps, and the client finished by saying, “Well, perhaps we can work together on matters in the future.?I’d like to discuss getting a rate discount and maybe we’ll send you more work.”?The managing partner politely thanked him, and said he looked forward to speaking further.?But after he hung up the phone, the partner looked at me, and I remember well his words: “Why on earth would I give that guy any sort of discount?!?He’s a major pain in the ass!”?We never worked with that client again, by our choice.?

During my 20-plus years as an in-house lawyer, I have spoken on numerous panels and given presentations at many legal conferences where I have done my fair share of pontificating about what clients want and expect from our outside lawyers and business partners.?Often the panels would have time set aside for us in-house attorneys to discuss our “pet peeves” regarding outside counsel.?But, I wondered, “What about being a good client?”?From that early episode as a young associate at a law firm, and throughout my career, I have recognized that being a good client carries benefits even beyond the basic value of treating your fellow human well.?Being a good client makes good lawyers want to work with you for reasons beyond just the amount of money you are paying them.?Contrary to what some people may think, lawyers also happen to be human beings – and as such they are driven by emotions, needs and desires beyond simply making a dollar.?Be a good client, treat your outside lawyers and other business partners well, and you not only will receive amazing service, you also will find them willing to go the extra mile, including offering the best possible economic terms to you to ensure they can keep you as a client.?

With this in mind, at a recent conference I presented and moderated a discussion on “How to be a Good Client.”?I offer below a few thoughts on this topic that came out of that presentation and discussion:

·????????Understand the economic needs of your outside counsel: There are myriad different internal economic models used by law firms that determine how partners are compensated, how associate bonuses are measured, how resources are allocated, how attorneys are evaluated, etc.?This puts pressure on the partners you are dealing with in terms of what sort of fee arrangements they can give clients and still be successful within their firm.?Take time to really discuss this with your main firm contact, understand the particular firm’s economic model, and work toward a “win-win” arrangement that delivers the lowest possible costs to your organization in a way that also allows your outside counsel to deliver results internally.

·????????Understand the non-economic needs of your outside counsel: As Bob Dylan said, “Everybody’s gotta’ serve somebody.”?As in-house lawyers, it matters to us that our outside lawyers make us “look good” internally to those we serve.?So it is for outside counsel as well.?Ask your outside counsel what you can do that might help them look good to their partners and colleagues.?For example, might you be able to introduce one of their partners who works in a different practice group to one of your colleagues who likewise practices in that area??Or perhaps take them up on their offer to present a CLE to your in-house organization, which can be as beneficial for them as for your team.?I even have agreed to speak as an invited guest at firm retreats to discuss the view from in-house, which not only is helpful for the firm and can be a decent “get” internally for the firm’s lawyer who arranges it, but it also benefits my organization in raising its status as an important client of the firm.?

·????????Treat your outside counsel as you treat your internal team and colleagues:?This assumes, of course, that you treat your team and colleagues with decency and respect (if not, article on Leadership to follow….).?Simple things – such as not giving artificial deadlines (e.g., not having your outside counsel work needlessly over the weekend), promptly returning phone calls and responding to emails, and simply recognizing that your outside lawyers have lives and pressures just as you do – all go a long way.?

·????????Be honest and transparent about your needs: I often tell my outside lawyers that winning a particular motion or argument on one of my matters may be higher on their hierarchy of importance than mine.?I explain to them that, though they are focused on the case and a particular motion, I must worry about so many other things, including: costs and expenses; internal business disruption and distraction; reputational risk; impact on other areas of the business.?A good client is clear about their needs and explains to their counsel where the matter the firm is handling fits into the broader mosaic of the client’s business.

·????????Be honest and transparent about whether your outside counsel is meeting your needs:?Be straight with your outside counsel when they are falling short of your expectations and have the same conversations with them that you might have with someone on your team about what they need to do to address it.?Be transparent and honest, firm and direct, but always decent and respectful.

·????????Be responsive, pay bills timely, and allow your outside counsel to call you on it if you fall short:?As in-house lawyers, we do not accept it if our outside lawyers are not responsive and if they do not timely meet key deliverables – and we have no compunction about calling out our outside counsel on these failures.?As the client, though, we may believe we can take liberties and be less-than-responsive to our outside counsel or fail to timely meet our one key deliverable to them – promptly reviewing and paying their invoices.?I certainly have been guilty of falling short in these areas at times.?My approach to address the times I fail in this regard is to make it very clear that I want and expect to be called out on these failures.?Like other in-house lawyers, when I am not responsive, or fail to timely pay invoices, it is typically due to the crush of other business – which is a reason, but not an excuse.?Give your outside counsel and business partners the green light to be as direct with you on these failures as you would be with them.

In the end, being a good client requires doing what a good person might do: being thoughtful and purposeful, and treating others as you would want to be treated.?In my more than two decades in-house I found doing that was its own reward.?But I also have witnessed the very substantial additional benefit of making yourself a desirable client, not just because you will pay your outside lawyers money (obviously, every client offers that), but because of your approach and what you offer as a client.?There’s not a huge supply of excellent clients, and by putting yourself and your organization in high demand as a client you truly can reduce the price you pay for legal services and increase the attention you receive from your outside counsel.?Being a good client therefore should be viewed not only as the right thing to do, but also as a key component in delivering on the economic needs of any in-house organization. ?