Dialogue with clients - asking the right questions

Set of questions you can use to identify the client's critical success factors and way you can help them be successful

Resource: Click here to download a copy of this checklist to use during your scoping conversation

Ask about the Business Objectives

Setting our legal advice aside for the moment, what is your "endgame": e.g.
What is your definition of success with respect to legal advice?
What are the implications of the legal advice in terms of financial/share performance, operations, customers, employees, etc.? How much is it costing the company not to address this?

Key Risks

What key issues do you [law firm] anticipate? Confirm that the client is also anticipating the same issues.
Integration and realization of synergy effects, syndication, valuation of acquisition/disposal, ability to exit, refinancing, other ROI?
Regulatory compliance/approval, prevention of non-compliance, litigation, etc.
Settlement/enforcement of claims, competitor cease and desist, protection of corporate
Note: by doing this we demonstrate what it is like to work with us and the advisory relationship we will establish with them.
Are there any other major issues/challenges that you anticipate?
What would be the consequences, if any of the critical success factors already discussed are not addressed (e.g. deal failure, cost overruns and delays, business failure, reputation, share price, etc)?
Note: This should also help us to assess the importance of our advice to the client.

Service Delivery (for formal offer, or a bid, to ultimately secure a contract)

Appointment of Counsel.
Are there particular aspects of our expertise or service that led you to invite us into this pitch and which you would like to see most in our proposal?
Do you have a particular ‘scorecard’ for ranking proposals and can you share with us any of the criteria?
Who is involved in the decision-making process?
What will be the 2 or 3 most important criteria for your choice?
How familiar are the decision-makers with the Lex Mundi member firms pitching for this business?
Are there any specific reservations you have about working with Lex Mundi member firms on this project/transaction?

Approach

Discuss with the client how they want to work with the lead law firm and local counsel.
E.g. Global, regional, local firm main contacts?
Level of partner attention vs associate time?
Dedicated project coordinator vs. paying for partner/associate time?
Engagement letter(s) – one via the lead firm vs local engagements or regional.

Communication Preferences

Discuss the preferred frequency of updates.
Discuss putting in place check-in gates to revisit scope. Who should be part of these?
Discuss the use of a dedicated client portal for file sharing, real-time updates and workflow management (Kanban), and dashboards to track billable time, etc.

Costs, Budget, and Billing

What is your budget and how is it broken down into milestones with specific deadlines?
Do you have specific ways of estimating and managing costs that you would like us to use such as reporting intervals, types of invoicing (e-billing, etc)?
What fee arrangements will you consider (e.g. fixed fees, alternative fees, success fees, etc)?
N.B. We should not bring up caps if the client doesn't but if the client does bring up caps we should clarify his position about unforeseen developments and busted caps.
Are you interested in making use of technology for billing (e.g. Serengeti, Lex Mundi's HighQ Collaborate software)
Discuss requirement/preference for a single bill, aggregated bills, or local billing.
Does the invoice go to HQ or to the subsidiaries?
Discuss the frequency of invoices and invoice due dates Are there any special requirements we should be aware of that will help our invoices go through smoothly?
Discuss rendering of discounts or alternative fees, if applicable.

Deadlines

What deadlines and milestones are part of the critical path for a positive business outcome?

Employer or Business

What are the company’s annual revenues?
What are the company’s profits (losses)?
What are the company’s earnings per share (if publicly traded)?
What are the company’s gross margins?
If publicly traded, how many shares are outstanding?
Who are the company’s biggest shareholders?
Who are the company’s largest investors?
How much, if any, debt is outstanding? Is it convertible? When is it due?
How much of the company’s sales are domestic? How much international?
What kind of customers does the company sell to?
Who are the company’s biggest customers?
Are the company’s sales subject to seasonal cycles?
How does the company sell and deliver its products/services (direct sales? distribution channels?)
Are the company’s non-exempt employees unionized?
How long are the company’s product life cycles?
Who are the company’s most significant competitors?
Does the company rely on technological advantages or price competitiveness (or both) to lure customers?
What are the company’s most significant expense items (raw materials? labor? research and development?)
How much do the company’s products cost?
How big is the company’s patent portfolio and what, in general terms, is its composition?
What are the executives’ business priorities?
How many employees does the company have?
In which geographic areas does the company have offices and conduct business?
What are the company’s industry trends?
How are marketing and sales aligned in the organization?
How is the company culture viewed externally and by its employees?

To learn how to document your findings: click here