Legal Practices Evolve with the Three Ps of Success

John Chisholm's recent webinar in the PracticeEvolve’s INTEL Series has spotlighted a critical trio for law firm success: Purpose, Positioning, and Pricing. These core elements are essential in creating a unique space in a competitive market. 

Purpose marks the starting point. In Chisholm's view, the era of being a 'Full Service' law firm is over. Today's leading firms know their 'why' and let that understanding drive every decision. Purpose is about pinpointing your firm's existence beyond profit – it's the driving force that guides your business and resonates with your clients.

Positioning is next. It's about playing to your strengths and knowing your audience. Chisholm clearly lays out the benefits: By identifying your ideal clients and focusing on your core areas of expertise, you can enhance win ratios, optimise resources, and improve your profit margins. In essence, know where you stand and stand out there.

Pricing cannot be overlooked. It's not just about the figures but the value behind them. Aligning your pricing with the value perceived by clients and your firm's unique positioning can be a game-changer. This approach not only underscores the worth of your services but also cements client trust and loyalty.

Chisholm encourages every firm to consider five foundational questions that pave the way for clarity and action:

1. What's our 'why'? This is about the mission that propels you forward.
2. Who do we serve? Understanding your client base is pivotal to your narrative.
3. What's valuable to our clients? It's essential to recognise what your clients seek and value.
4. How do we measure success? It's about aligning performance with your strategic vision.
5. What’s our game plan? With the previous answers in hand, a targeted strategy can be developed.

Chisholm also highlighted the innovative mindset adopted by forward-thinking firms:

• They tailor pricing strategies around client needs rather than merely the work done.
• They acknowledge the subjective nature of value and reflect it in their pricing.
• They engage in meaningful discussions about value with clients to ensure alignment.
• They agree on pricing and scope before embarking on tasks to avoid surprises.
• They prioritise outcomes over activities, focusing on what truly matters for the client.
• They set prices based on the anticipated value, which builds robust client relations.
• They ensure their pricing reflects the firm’s positioning and client objectives.
• They appreciate how client behaviour affects purchasing decisions and adapt accordingly.
• They recognise pricing expertise as a core skill vital to the firm’s competitiveness.
• They commit to After Action Reviews, learning and evolving from each case.

To grasp the nuances of these strategies, Chisholm's session is available on demand. The insights shared provide a robust framework for differentiation and a value-based approach to pricing.

Looking ahead, the INTEL Series will present Melissa Lyon on May 16th. Lyon’s session promises to unveil the principles of legal design thinking, offering a new lens to view strategy, innovation, and client engagement. This is an opportunity to equip your firm for the future.