In the latest instalment of a continuing series on law firm marketing, Sebastian Fox outlines the three key issues that a firm should address in its marketing plan

At least once a year law firms haul their business plans out of a desk drawer and the regular cycle of setting the new plan begins again.


But why plan at all? Of course, most people would agree that from a financial point of view, planning is essential to the current and future well-being of the firm. But it is no less important to have a marketing plan in place.



However, experience shows that in many cases putting a marketing plan together is often seen as an unwelcome chore and a distraction from day-to-day business (see [2005] Gazette, 26 May, 1). And often, once the marketing plan is complete, it is put aside and forgotten until the next planning cycle comes around.



This is unfortunate, since real value can arise from - and pitfalls can be avoided by - going through the planning process and keeping the marketing plan in sight throughout the year. The benefits that accrue from properly developed and executed marketing plans include: focusing resources on the parts of the firm and activities where they will make the most impact, avoiding duplication of effort, and targeting of clients and co-ordination of activities to meet the wider firm's objectives.


There are three key issues to address when constructing a marketing plan: where are we now? where do we want to get to? and how are we going to get there?


These issues can be applied at a number of levels, be it for the firm as a whole or for individual departments or practice areas. And while it is possible that the answers will differ according to which part of the business is being considered, the thoughts and ideas that should arise from asking the questions will start to clarify whether everyone is pulling in the same direction or not.




Where are we now?


In some ways, this is the most difficult question to answer. Data is available in the legal press that shows how larger firms are performing. This can be used to make rough comparisons on how other firms are doing in terms of profitability, staff ratios and costs.


But a more simple way is to evaluate your firm's performance against the objectives set the previous year. Perhaps you have a set of measures that you track each year, known as key performance indicators (KPIs) and you have specific objectives for each of these. For example, you have targeted an increase in margin from the current position to 20%.


Whatever measures you choose, it is critical that you have as accurate a picture as possible of where you stand; if your starting point is incorrect, it is unlikely that the 'how do we get there' part will be right.




Where are we going?


The question of where the firm is going can be answered in a number of different ways. For instance, it can simply be a statement of intent about how the firm will grow or what type of business it will focus on.


However, if you have KPIs in place, it may equally be a case of revising these in light of what has been achieved in the past year.


Some firms have a clear objective ('We will be the number one firm for personal injury in the local area'), while others will focus on achieving a certain level of fee income and profitability. Whatever your objectives, the key point is to decide how you are going to measure or recognise that you have reached them.


A well-known acronym is SMART targets (specific, measurable, achievable, realistic, timebound), which means in its simplest terms, for example: we will achieve fee income of £1.5 million and a margin of 25% by 31 December 2005. Importantly, this is measurable.


It is also crucial that the objectives set for each department or team all build to the same overall, firm-wide objective. This ensures that everyone is focused on delivering their part of the wider plan, while at the same time doing the things that are right for their part of the business.




Getting there


The 'getting there' part of the plan forms the strategy (the broad themes that will deliver the objectives) and the tactics (the detailed activities that will be carried out).


Much has been written in academic and business publications about strategies and why they fail. The principal reason for strategy failure is a simple one - the strategies were not implemented. Either the plan was forgotten or people decided to do completely different things from those stated.


The best plans - and the most achievable - are those that have a few clear strategies and no more than three or four tactics to implement them. The key here is that it is much better to concentrate on fewer activities and do these well, rather than dissipating your efforts with many small things that do not have an impact.


The strategies and tactics themselves depend very much on each firm and its own individual situation and objectives; it is impossible to generalise. Do not be tempted to include lots of detail in a marketing plan running to many pages. It is much more difficult to write a short plan that is only a few pages at most, but this forces you to focus on what is really important and ensures that the key actions are not lost in reams of detail.


Think about how you will monitor ongoing progress against the marketing plan. The market is never static - assumptions you made were incorrect, or a competitor does something unexpected. In either case, the impact is not as planned. In these instances, it is perfectly acceptable to alter the plan to accommodate the changed circumstances.


All marketing plans should be sufficiently flexible to allow you to fine-tune them as the year progresses. Ongoing monitoring of the plan also allows you to build knowledge, so come the following year's planning time, you are that much better placed to answer the question: 'where are we now?'


A simple marketing plan that covers the three basic questions and enables you to measure and monitor progress can bring clear, focused strategies - and real benefits to your business.


Sebastian Fox is a marketing consultant and is a former marketing director at national law firm Eversheds