October 23, 2012

Quantify to Communicate Real Value

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Rising to the Challenge



Law Firm Strategy

By Patrick J. McKenna

When you're describing your services, clients want you to identify what adds value to them and to demonstrate how you deliver that value. Your mission is to communicate to your client whats being achieved as a direct result of retaining you—and how the outcome more than offsets the cost of the services provided.

Whenever possible, quantify your outcome in a meaningful framework, using factors such as potential revenue generated; better terms obtained; value of brand image or intellectual property protected; investigations, fines or litigation avoided; quicker speed in closing transactions; money saved; or importance toward helping achieve a corporate goal.

State the value in specifics.

Here are some examples of how you can quantify:

  • "This settlement will save you up to $1 million in protracted litigation expenses and preserve your companys character by keeping you out of the press."

  • "Filing for both permits now, before deciding on the project specifications, enables you to be operational months sooner. An early opening could generate about $500,000 in additional revenue and certainly justify the cost of the two applications."

  • "Selling these assets will reduce your onerous debt. Although seemingly drastic, the improvement in cash flow should protect you from having to declare bankruptcy."

  • "We have reorganized the transaction to ensure that the royalty rights remain in your hands. This change should yield up to $75,000 in licensing fees annually."

At the end of every matter and to truly satisfy clients, your job involves identifying a specific value outcome for each legal service you deliver.