The High-Stakes BD Gamble Law Firms Can’t Resist

Buying meme stocks is a lot like responding to RFPs. Meme stocks bring ultra-high risk with a small chance of ultra-high returns. Somebody may make a lot of money — and be celebrated for it — but most everybody else loses.

BTI research reveals more than 70% of clients report no material change in their law firm lineup 12 months after an RFP award — absent a firm who may have fallen out of favor. Despite these odds —  few law firms can resist the urge to respond to any and every RFP they see.

And — expect a lot more RFPs — it will almost double from last year. Our research uncovers 2 reasons:

1. Law firms partners working on current matters seem largely uninterested in pursuing new work
2. Client service plummeted last year and remains at a low — motivating clients to look for new firms

The numbers look like this:

• Definite plan to issue an RFP: 21% this year — 11% last year
• Haven’t rejected the idea yet: 41% — 10.2% last year
• Nope — wont do it: 48%  — 78.6% last year

Two Big Take-Aways

Making Your RFP Response Glow

These 21% of clients dislike reviewing RFP responses more than the law firms preparing them. But their hope springs eternal — one good idea makes it all worth the effort. That’s right — just a single idea.

In a sea of mind-numbing statistics characterizing RFP responses — a new idea glows. 2 major strategies stand out for making your RFP glow bright:

1. 1. 1. Offer up ideas — share your best ideas about the issue or approach — adding in as much risk assessment as you can

1. 1. 2. Use the pitch to develop ideas with your potential client — start brainstorming with the client right then and there. The ideas you create with potential clients create bonds and action plans. It creates a working team on the spot.

More than 3/4 of corporate counsel are hiring without RFPs

BTI research reveals a crucial insight: 79% of clients plan to hire without fuss and fanfare — with no RFP.

Clients are looking at every outside counsel interaction through a potential hiring filter. These corporate counsel are evaluating your ideas, approach, commitment, and savvy. It’s a demanding filter — and largely unrecognized by attorneys.

Corporate legal departments are facing the broadest spectrum of acute needs arising in a generation. They can’t field all the skills needed with in-house staff. Outside counsel is the only resource — and clients are hiring as such.

Oddly, attorneys are more comfortable with the risk profile of an RFP — they want to buy the meme stock. But, attorneys opting for the less glamorous approach of developing business on a one-to-one basis with clients are working the odds in their favor. Clients have more needs than resources.

Clients seize upon even a kernel of a good idea — they will help you shape the idea to meet their needs. And now you are a team. All you have to do is serve it up.

Any good stock investor recommends investing a minimal portion of your portfolio in a meme stock. The same goes for business development. Be selective in directing your RFP efforts — and go all in on the high-quality picks.

It’s rare for business development to offer this much potential. Just as it’s rare to get in early on a meme stock before it soars. Use the odds in your favor.

Ramp up business development — and make your potential client’s day brighter with one compelling new idea in your RFP response or casual conversation.