By Barry Schneider

Mr. Schneider is a principal with SAGE PDI, Inc. (www.sagelawyermarketing.com), and a veteran business development advisor for lawyers and law firms, as well as other professionals. He can be reached at bschneider@sageprofessional.com or 214-315-3212.

Wilton McDonald II had some special challenges in building up a small legal practice. Hired in November 2006 by a small to mid-sized firm in Grand Cayman as a senior associate, he was charged with bringing in his own work and full responsibility for the Investment Funds Department.

He couldn’t rely on a flourishing client base; billable hours for the department in January of 2007 were 43, total. Add to that challenge a clientele which is not local but global, and a daunting set of competing law firms.

What did it take to master this challenge? How did he build a successful business for the firm within two years, and position himself to surpass his goal of US$ 2 million in annual billings for the Investment Funds Department? Our judges were impressed by the intelligence and commitment he brought to it, how well he took control of what he did, and how he challenged himself with rigorous goals by which he measured his progress.

Making it Work

In the face of all this, Mr. McDonald began with the right attitude. He found he had a zest for acting entrepreneurially. When offered the chance to leave a large firm and seize the opportunity to make something big happen, he eagerly did so. He knew he had to work hard at it, but he was open to integrating the getting of business with his practice of law and his daily life.

Even though he had full support from his new partners, and the latitude to set a marketing and work program in place, he knew he had some hard work before him. He admits that most lawyers can find this daunting: “In the profession, a lot of people expect to be given work. That’s like little birds waiting to be fed by the mother bird. But that’s not how it works in a small firm. There especially you have to feed yourself.”

As he set his course, he knew he needed four things to be successful:

1. A sound plan, with a clear-eyed view of where his best opportunities were
2. Delivering superior value to his clients
3. Taking advantage of all his connections
4. Working hard and smart to make it happen

Let’s look at what he did:

1. A sound plan

“The first Christmas, in 2006, was hell, what with so much planning to do,” he noted. He had to weigh several factors:

• The right target market

He knew that he would be serving small to medium-sized law firms, and hedge fund startup companies/investment managers, those who come to the Caymans to establish funds and require local counsel and other fiduciary services such as registered office and registrar and transfer agency services. One big question, of course, was where to find them.

So he spent a lot of time evaluating his current contacts – who they were? How good his relationships were? How useful they could be? Where could they take him?

At the same time, he did his homework on where activity was growing. “My first step was to do research on funds and identify territories where growth was occurring, where the investment managers were moving. I knew I had to be selective on countries,” he said. On his list were Poland, which he expected to visit since it was his wife’s native country, and Luxembourg, where he had ties through the Terralex network of firms; two of the large developing countries represented in the B.R.I.C. acronym made sense (Brazil, where he had openings by tapping clients of the firm; and Russia, as an outgrowth of visits to Poland); and the financial centers of Hong Kong and Dubai. He avoided other established arenas and less volatile spots like New York, London and so on, partly because of the competitive situation.

• Competitive angle

McDonald understood where his firm fit among the only eight major players in the Caymans. So, in targeting market opportunities, he shrewdly bypassed the strengths of the other firms. He commented, “Hedge fund specialists here form a very small legal fraternity, and two household names stand out amongst all other firms. It would be hard to go directly for the big clients who already know the biggest names, and be competitive at the start. It was very clear to me that I needed to pursue the less institutional clients, alternative options. I needed to build in areas that weren’t sewn up, like family trusts or small management company startups without a track record.”

• Building on his own best assets

By his background, he was comfortable with relationship building: “I just like to connect with people. I had a religious background, with my father as pastor.  And when I taught at my alma mater In Jamaica, I found I enjoyed instructing, but even more so listening to people.”

He was also quite organized, a planner: “As a teacher, I needed to develop study plans, which was very similar to what I did in planning the marketing of our services.”

Starting this program in his early 30s, he brought a bit more seasoned perspective and deeper background than most associates, including a rich educational background, with degrees in business and the law, along with work in commercial aspects of the law. “So people saw I had the depth; I was grounded,” McDonald said.

Plus he knew their business inside and out because he had previously worked as an accountant with KPMG and others: “Turns out that that auditing so many funds gave me insight into financial systems and the different funds themselves; so carrying that 20kilo audit bag made me authoritative and credible to prospective clients.

To top it off, he offered clients a unique regulatory know-how. He had served as assistant registrar of companies for the government, as well as a government auditor. As he puts it, “without the substance you’re lost.”

• Setting goals to test progress

His two year plan was ambitious enough, but he felt it was doable: “To increase staff complement to 5 or more persons within hedge funds team at TBCO and to achieve annual revenue target of US$2 million, to grow registrar and transfer agency (RTA) business which was a non starter when I joined firm in fall 2006 – and enhance his prospects for making partner at the firm.”

But he didn’t let those guide him. Instead he set much more immediate goals for hours, numbers of relationships and strategic alliances, etc. so he could “evaluate how I was doing on that path, and correct what I was doing if I needed to.” So he started with weekly financial targets and activity goals. As he grew more comfortable with the direction he was going, he changed that to monthly and now quarterly targets.

2. Delivering superior value to his clients

McDonald understood completely what it would take to make his clients satisfied with his work and, even more, how to deliver superior value.

• Quality control

He personally hired and trained his own team of legal and clerical staff to be able to deliver. He noted, “It was pretty intensive – what with getting the business and doing the work – until I could  feel comfortable delegating to my team.”

• Using the know-how of local regulatory agencies and personal connections in the service of his clients

According to McDonald, “I maintain a strong rapport with members of government, particularly those who work in the financial services arm and statutory bodies who were former work colleagues and persons I reported to as a former senior internal auditor and assistant registrar of companies. With these connections, I can really deliver for my clients. The access lets me work through issues more rapidly, but even better for clients I can offer extraordinary speed:  while others are taking 2 -3 weeks to complete the process, I can do it in 3-5 days.”

• Responsiveness
  
  “It’s not always easy, but I am always on call to get back to clients when they need me so I can keep them satisfied,” he said
  
  
• Pricing flexibility

As a small firm, in a kind of oligopoly where fees run high, he found opportunities to price his service more flexibly when warranted to help build the client base.

3. Taking advantage of all his connections

As noted before, a major planning parameter for Wilton was how he could use his existing network of relationships. Once he got going on the plan, he continually worked these relationships to his benefit.

• International network

The opportunities with Terralex (a network of independent law firms) have been critical as much for service and legal support as for referral/networking opportunities. As many have found, a small firm can seem quite large if it takes advantage of these member networks. As McDonald put it, “With over 200 member firms in 100 countries, I found I had a great resource in the areas I targeted. So I got in touch with those people at the outset, and then was able to use as a local resource, such as preparing memos of law in their country. Sure, I’ve worked with them to set up meetings and conferences, and have gotten referrals from them. But the best part is that I’m not just a Cayman firm, but a member of larger organization.”

• Client referrals

As McDonald noted, “Once I started getting clients who experienced the high quality of our service, I began to see referrals so that now I’m seeing about a third of business coming from referrals from our clients. It almost seems that I don’t need to shake the tree with them; I get calls from clients volunteering to help me with referrals. But they remember me, as I do keep in personal touch with many, asking them how things are, what’s going on. And then stay in touch with all of them monthly through my personal newsletter, so I can keep on their radar.”

4. Working hard and smart

McDonald knew that starting something new would take a commitment of hard work, not just the right direction and tools, particularly with the truly global reach of his targets. He estimates that he spends 2- 3 hours daily and 6- 8 hours on the weekend, just on business development.

Much of the work required was to build the practice from almost nothing, since even a year and a half after launching this effort, still about a third of business comes from “blazing and chopping the trail for new clients.” As he approaches new countries, “I identify good potential clients and reach out to them through direct contact (cold emails and calling) and through speaking at seminars. I’ve been able to build my reputation in those forums and from publishing articles that I can distribute to prospects.”

And McDonald felt comfortable integrating his personal life with the needs of the business, even using spare time on vacation for the purpose. Not surprisingly, he started in Poland and nearby countries because his wife’s family was in Poland, and they would visit regularly. For him, it was a matter of just being open to making business happen no matter where. He said, “Opportunities abound wherever you are. I took a cruise this year, and did get plenty of relaxation, but I also left with three solid contacts, and passed out biz cards to several more. I’m just open to ask questions and listen hard…and use my own style, cordial, but sharp.  Of course, I never try to oversell myself, especially to people on vacation. It’s really what you do once the door is open that matters, and I always find some way to follow up…within 24 hours.”

His organizing ability made a big difference in being efficient, not just hard working. In preparing for his recent Brazil trip, for example, the organization was “machine-like; we followed up meetings with team debriefings, a mailing of follow-up info packages and materials customized to the specific needs and interests of the people I met, and then scheduled personal follow-ups.”

Results:

• McDonald's billable hours skyrocketed (starting point was 43 hours in January, 2007)

	2008	2007
Q1	1031	339
Q2	1194	554
Q3		697
Q4		800

 

• More than doubled the maximum previous departmental billings to US$1.2 million in 2007. Already in just the first half of 2008, he has exceeded US$1.3 million; at the current rate of $230K per month well on pace to exceed his goal of US$2.0 million for this year.
  
• Now serving over 400 clients, many of small size. But also secured major clients in Russia and Dubai which are now using TBCO as exclusive legal service provider in the Cayman Islands, and other fund administrators in the UK and Bahamas.
  
• Cemented ties with Terralex law firms in the UK, Panama and Luxembourg; extended relationships into Brazil and elsewhere
  
• Turned this way of doing business into a habit, now “part of his life. It’s engrained now in how I think and act. It’s become a natural part of my whole psyche.”
  
• And, it would seem, well on his way to making partner.

Advice for lawyers in small firms

McDonald’s success speaks for itself as an example of how an individual lawyer, even at a small firm, can transform a practice even in the face of truly daunting challenges. With a rigorous plan and tough goals, industrious relationship building, basic marketing methods, a passion for client service, and then putting in the hard work, then – as he puts it - “The sky’s the limit.”

Here is his bottom-line advice to others:

“You do have to be bold enough to go out there and develop a plan. Yes, it’s daunting, especially in a small firm; but pound for pound you can be competitive if you find a plan that fits you and be honest with yourself about the market you’re in. Target sensibly. Accept that you’re in a small firm; but that doesn’t make you inferior.

“Know your resources, financial and human, what you’ll be using in your plan. If you need expertise, then get it in, since without the substance you’re lost. I’d been around the block myself in this business, so I knew I could deliver, and I had built contacts I could use as well.

“Once you make your plans, with target markets and resources, set goals for yourself, and evaluate how you’re doing. You need the feedback on your plan – monthly, quarterly – so you can alter it as needed and refine the resources you need.

“Don’t lock yourself in. Think and begin to operate outside borders, meaning all kinds of borders. We’re always working outside our physical borders, as the bulk of our fund clients reside outside of Cayman. But opportunity for you can come from anywhere…other practices areas like IP or industries, other locations, other sources of business.

“Prepare to work hard, put the effort in, especially while you’re building from your plan. Be open to business development in whatever you’re doing, whether working with clients or on vacation.

“Yes, the sky’s the limit.”

© 2008 PBDI/SAGE PDI. This article comes from the September 2008 Issue of ORIGINATE!, the online monthly newsletter (with ongoing support resources) dedicated to helping individual lawyers develop business successfully in order to build their careers. The contents of this anniversary issue are complimentary; otherwise articles are usually available to subscribers only. Find out more about subscribing at www.pbdi.org/originate.