Is “trusted advisor“’“ really the one and only success route for an attorney? The author argues that there are — and have always been — three different types of client relationships and three other sustainable models for professionals besides trusted advisor. It is a widespread belief among attorneys that the one and only kind of […]
The post Lawyer-Client Relationships: Three Successful Alternatives to the Trusted Advisor Role appeared first on Articles, Tips and Tech for Law Firms and Lawyers.
Is “trusted advisor“’“ really the one and only success route for an attorney? The author argues that there are — and have always been — three different types of client relationships and three other sustainable models for professionals besides trusted advisor.
Table of contents
It is a widespread belief among attorneys that the one and only kind of client relationship a service provider should strive for is that of a “trusted advisor.” Everything else is perceived as falling short of this ideal or, worse, leaving lawyers vulnerable to displacement by AI overlords.
Is ‘Trusted Advisor’ Really the One and Only Success Route?
In their bestselling classic “The Trusted Advisor,” David Maister, Charles Green and Robert Galford proposed four client-advisor relationships and encouraged professionals to aspire to reach the pinnacle, namely the highest status of trusted advisors. However, to this day, there seems to be a substantial number of lawyers and firms that haven’t obtained such standing. Hence, continued interest in the topic.
What intrigues me is that this apparent shortcoming does not seem to undermine a lawyer’s ability to continue making good money. Indeed, in 24 years since the publication of the book, as well as the nonstop buzz, there’s been plenty of opportunity for every lawyer to become a trusted advisor. Through workshops, training and coaching, trusted advisor status could have become a new normal. Those who would have failed at achieving it should have closed their practices by now.
So, why do we keep hearing the same-old, same-old when the idea of nurturing trust-based relationships is already commonsense knowledge among legal professionals?
It appears to me that there are — and have always been — three different types of client relationships and three other success routes for professionals besides being the trusted advisor.
Four Successful Types of Lawyer Client Relationships
Based on the breadth of business issues and depth of personal relationship dimensions, Maister, Green and Galford proposed the following four types of relationships: service-based, needs-based, relationship-based and trust-based. I refer to such typology as follows:
- 1. Service provider
- 2. Problem-solver
- 3. Insightful ally
- 4. Trusted advisor
While trusted advisor seems most preferable, authors Maister, Green and Galford themselves state: “[T]here are times when it is perfectly appropriate and right for a relationship to be service-based or needs-based.”
Four Primary Buyer Types
Pricing specialists Thomas Nagle and Reed Holden identify four primary buyer types:
- 1. Price buyer
- 2. Convenience buyer
- 3. Value buyer
- 4. Relationship buyer
While these labels don’t capture buyer behavior particularly well, there appears to be an isomorphism between the four buyer types and the four client-advisor relationships.
Figure 1 represents a visual map of these correspondences.
The reason behind such a representation rests with three fundamental dimensions that govern buyer-seller interactions: 1) degree of differentiation, 2) interest in relationships, and 3) degree of uncertainty. The latter dimension plays a key role in defining sales strategies available to law firms during negotiations with different buyer types. In addition, this dimension governs a vital component in value creation and capture activities, namely problem finding.
FIGURE 1. Mapping Buyer Types and Client-Advisor Relationships
| Octant | Buyer Type | Client-Advisor Relationship | |
|---|---|---|---|
| 1 | 2 | Price buyer | Service provider |
| 3 | 4 | Convenience buyer | Insightful ally |
| 6 | 7 | Value buyer | Problem solver |
| 5 | 8 | Relationship buyer | Trusted advisor |
The fact is, many law firms remain in business regardless of trusted advisor status. Since there are four primary buyer types — price, convenience, value and relationship — the other client-advisor relationships are viable alternatives for successful law practices.
The mapping proposed in Figure 1 (above) helps match relationship types with buyer types.
Understanding how to read this map will allow attorneys to identify win-win opportunities in which neither party to the transaction takes advantage of the other.
Reading the Map
The map exhibits matches between buyer types and client-advisor relationships where real win-win contractual engagements are attainable.
For example, displayed in octants 1 and 2, service providers can work profitably with price buyers, often providing bare-bones services to satisfy a buyer’s need for lower fees. Should a client wish to pay less, the wool and meat — some valuable service offering components — should remain unserved. If, that is, the attorney wants to make a standard profit.
In octants 6 and 7, the value buyer will typically want to work with attorneys who are capable of customizing their services — hence, higher fees and an expectation of special solutions tailored to unique client problems.
According to the map, if you’re already a trusted advisor, it makes absolutely no sense to work with price buyers. It’s madness to think that investing time and resources in understanding the client, becoming a safe haven for hard issues, or giving considerate advice will ever pay off when the client exclusively wants one thing — the lowest price.
However, as a service provider, it is prudent to sell bare-bones service to a price buyer. Everyone wins.
Yes, I understand the argument: “We have to take responsibility for our clients who know little to nothing about the intricacies of our craft.” However, such thoughtfulness is often underappreciated, unwanted or worse — rejected. Then there’s the sustainability of your practice. While rivals give clients what they want and turn a profit, you might be getting paid the same while giving away your additional time, knowledge and skills for free.
Profitably Managing the Buyer-Seller Relationship
There are a total of four different ways to manage buyer-seller relationships profitably. The trusted advisor is just one of them. As the map suggests, the most beneficial client type for a trusted advisor is a relationship buyer. This is something attorneys should take into account while qualifying prospects. If yours is a practice that wants to serve clients in the capacity of a trusted advisor — and thus build out such a reputation — you should turn down other buyer types as much as possible. To be intentional about this, you may want to rank order your clients. Obviously, for a trusted advisor, your A clients will (mostly) be relationship buyers, while your F clients will be price buyers.
Conclusions
Fueled by what many clients perceive as self-aggrandizement and pompousness, that trusted advisor’s badge is often self-assigned. Such a symbol, however, must have substance to back it up.
If you already have access to price buyers, have the same perceptual frames as they do, and your practice can make good money this way, there is absolutely no need to become a real trusted advisor. Transitioning to another relationship type should change your clientele makeup.
Of course, one may call themselves a trusted advisor regardless of client composition. Whatever makes one feel warm in a dark suit, as they say. However, in my experience, it is best to have a clear understanding of the type of practice one is building and not confuse the practice with oneself.
From a business standpoint, there are three other success routes you can proudly take besides being a “trusted advisor.” Different practice types serve different clients.
Resources
“The Trusted Advisor by D.H. Maister, C.H. Green and R.M. Galford. (Free Press, 2000).
“Negotiating with Backbone: Eight Sales Strategies to Defend Your Price and Value,” 2nd edition, by R.K. Holden (Pearson Education, 2016).
“The Strategy and Tactics of Pricing: A Guide to Growing More Profitably,” 4th edition, by T.T. Nagle and J.E. Hogan (Pearson Education, 2006).
