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The Picture of a Law Firm in Germany

Keith D. Bain, Professional Marketing Magazine, Oktober 2001

Image

"a representation of the external form of a person or thing ... the character or reputation of a person or thing as generally perceived" (The Oxford English Reference Dictionary)

Introduction

Image - long an integral facet of corporate life - has only recently cast its shadow over the legal community. Most notably in Germany, law firms used to be seen as grey and conservative. It is no coincidence that one recent recruiting advertisement in Germany played on this issue: "Do you really believe that law firms are stuffy and the employees plain and boring? We'll show you they're not!"

Law firms in Germany still have much to do in sharpening their image if they want to win the war for top legal talent - arguably one of the major problems they face. According to a recent study, not even half of students questioned at various faculties in Germany expected to join a major law firm; one-third of these could not decide which firm to opt for. The impression among students is that law firms all look the same.

Notwithstanding image problems, most law firms in Germany have actually undergone a positive metamorphosis over the last decade. Not even the stuffiest of firms has withstood the combined effects of deregulation, globalisation and greater transparency within the legal community. Standing in front of the mirror that once promised eternal success, law firms in Germany suddenly had to ask themselves: Is it time to cast off that conservative image and boogie on down to the free legal market?!

Frankfurt Forum

It is with these images in mind that 36 members of the Professional Marketing Forum Germany gathered at the offices of Hengeler Mueller in Frankfurt on July 5, 2001 to discuss the image of law firms in Germany within the framework of a presentation by Dr. Imai-A. Roehreke of Roehreke Image + Strategie based in Munich. Dr. Roehreke's presentation looked at how to develop, nurture and adapt a law firm's image, with a focus on media relations.

Media Relations

It is through the media that images are largely developed. Dr. Roehreke alerted forum members to the fact that the 'media' per se does not exist, initially prompting questioning glances from the one or two journalists present. What Dr. Roehreke meant is that we are dealing here not with a faceless bureaucracy but with real people, with whom professional lines of communication need to be opened and maintained. This is the pre-requisite and foundation for nurturing a law firm's image. Forum members - many with years of practice in handling lawyers - were relieved to learn from Dr. Roehreke that people in the media are, in some respects, no different to lawyers: they cannot know everything; they want to be taken seriously; they criticise but hate being criticised; they are always working under major time constraints; they can be provocative; they hate being treated like a child; if you have a problem with them, they want to hear it directly from you; and lie to them at your peril - they've got that 'elephant thing' about them.

Dr. Roehreke stressed the need to heed these traits when dealing with the media. Most significantly, with professional lines of communication in place, media relations calls for an efficient and regular flow of useful and appropriate information. A serious (and busy) journalist has no time to read the fifth press release of the day from Billamore & Associates, exclaiming that their 'Tiddles' has won the "Office Cat of the Year" award. Nor take numerous follow-up calls offering a personal interview or enquiring as to when the story might run. This could do a law firm's image more harm than good. Efficient and effective media relations involves using lines of communication sensibly and sparingly.

Strategic Positioning

Dr. Roehreke proceeded to explain to forum members to what extent image-building is a question of 'strategic positioning': who or what are we? what do we have to offer? how does this benefit the client? where do we want to be in 10 years time? what image, in effect, do we wish to portray? How do we as a law firm wish to be perceived...? The answers to these questions - and the key to strategic positioning - stem to a large extent from external demands faced by law firms, arising from market conditions, clientele, and the professional environment.

Market Conditions

In a market of increased competition and similar products and services, law firms have had to 'differentiate' themselves from competitors, focusing more than ever before on image-building in making use of various tools such as association, advertising, marketing or branding.

Association

Often, active use of the term 'differentiation' (or difference) has been made: "One person can make a difference", read one advertisement, explaining how an English football manager and US film star (among others) made that major difference in their lifetime. Here, the association with (i) a British national hero and (ii) an international screen legend can be interpreted as an attempt to portray the law firm not just as different from, but more exclusive than, its competitors.

Advertising

Law firms have tried to advertise in Germany, but German Bar rules are stricter than most. The infamous placing of a full-page advertisement in a major daily German newspaper back in January 2000 - to herald a three-way merger between German, UK and US firms - produced the desired effect, but had regulators dishing out appropriate punishments. This certainly affected the image of the law firm concerned.

Marketing

Most law firms actively engage in some form of pro-active marketing. The current favoured form in Germany appears to be writing articles on every conceivable legal trend, placed in the legal columns of national newspapers. In this way, firms attempt to position themselves as 'experts' in the chosen field. Market studies frequently suggest that clients regard legal article writing to be one of the more impressive forms of marketing, however - given the sheer explosion of articles in the last year - there is now a distinct impression that you can have too much of a good thing.

Branding

Law firms in Germany have (re)branded themselves. For some, this has been a matter of necessity, born of merger. It has sometimes proven complicated, with the firm being known under different names in different jurisdictions and corresponding image repercussions. Some German firms - long known and loved for their unpronounceable and rather eccentrically elongated names - have thrown off the shackles of conservatism by chopping bits off. This applies, for instance, to the hosts of this particular forum meeting, dropping two of its four names in view of the fact that the shorter form had become standard usage throughout the media. The shorter name had developed into a brand and portrayed an image synonymous in the marketplace with specialisation in high-end legal advice in complex business transactions.

Clientele

Some law firms have positioned themselves as so-called 'one-stop-shops', emulating the corporate world in 'going global', arguably justified by client demands. "A successful cross-border acquisition", declared one firm upon its merger with a German counterpart - "Just what you'd expect from us." Do corporates expect law firms to merge and go global? Do they imagine law firms to be supranational institutions? And do they take account of the one-stop-shop image? Some may indeed. Yet a recent survey of German companies suggests otherwise. For instance, a major cross-section of German corporations interviewed maintained that little, if any, attention is paid to image advertising. One interviewed party claimed: "You can certainly achieve something in our field with image advertising. But more so in terms of recruiting than actual client work. The heads of the top 100 companies in the world may notice an advertisement, but that's about the length of it. Clients hire lawyers they trust or have been recommended or do a good job."

Other independent research has frequently come to similar conclusions. Clients seem to place little importance on glossy brochures, dazzling newsletters and high-tech websites - they are more impressed, for instance, by lawyers speaking at seminars and conferences.

One survey, moreover, reveals there to be a lack of enthusiasm among German clients for the image of the global law firm. Indeed, the majority of responses indicate a strong, abiding relationship between clients and individual lawyers within a law firm, irrespective of global status and the image the firm portrays. A mere one-fifth of those questioned stated that the firm per se was the critical factor in selecting legal services. A law firm's image in Germany - in the eyes of the clientele - appears to be born of high-class individual lawyers providing the best quality and service.

Professional Environment

The professional environment is a major factor affecting the ability to develop, nurture and adapt a law firm's image, particularly in Germany.

A recent court decision prohibited the publication of law firm rankings, which had become a familiar sight over the last few years. Many law firms use these rankings - highlighting the 'best' or recommended firms in specific practice areas - to promote their image.

German courts have also recently resolved that mailings, newsletters and the like may not be sent to non-clients, only to recognised clients of the law firm concerned.

And one law firm recently removed the interminable list of partners that commonly adorns German letterhead, claiming that the list had become so long that there was little space left for any text message. German regulators intervened, stating that it was not sufficient for the firm simply to indicate on its letterhead that a list of partners could be viewed at the firm's head office.

At a time when globalisation of legal services is the rage, there may be a tendency to overlook to what extent local jurisdictions still play a significant role. The maxim 'think global, communicate local' would appear to be a genuine guiding principle, encouraging law firms to combine an international approach with sufficient understanding and sensitivity for local issues. Certainly, in view of the cited examples, it is this approach that would appear to be best suited in the German legal marketplace

Corporate Image

Dr. Roehreke then devoted attention to how law firms can learn from the corporate world in building or indeed defending an image, particularly in controversial circumstances. Corporates often make elementary mistakes when attempting to handle awkward, media-intensive situations. These include: say nothing and hope the problem goes away; play things down by claiming it has been blown out of proportion; or indeed - and this is what the BSE scandal became synonymous for - 'blame someone else'. Dr. Roehreke recommended a more positive, pro-active strategy, embracing the following elements: admit mistakes; draw consequences; communicate openly; take preventive measures.

One typical example, at the time of writing, is the Bayer/Lipobay controversy. In the aftermath of the news breaking, Bayer published an open letter in major daily German newspapers, described by market analysts as an attempt to 'win back the offensive through communicating directly with the public'. In communicating openly, Bayer attempted to bring to the fore information that, as the company claimed, had been overlooked in the heat of the argument. Bayer thus took measures to protect its image by 'changing reality'. Dr. Roehreke explained that, if the image does not correspond to reality, then reality needs to be changed, not the image. Reality is namely the gap between the two. The gap in the case of Bayer/Lipobay was the 'lost' information delivered through Bayer's open letter in the press. Bayer also drew consequences. Although initially adamant that its proposed US listing would still take place this year, Bayer announced its delay until September 2002 - openly taking account of public opinion.

Conclusions

A 'test' conducted with forum members to conclude the meeting - in which they were asked to write down what image certain brand names conjured up in their minds - brought several intriguing issues to the fore.

One German company, although highly successful, was unknown among the 36-strong group. Logically, if you are not known, you cannot have an image. Thankfully, all the law firms represented at the forum meeting are known entities and have a certain image. Yet it is not enough just to be known. Some of the companies in the test elicited contrasting responses with respect to their image. One company was described as pioneering and conservative at the same time. Thus, a company's image can be wholly diffuse, even though it is well-known. The student survey demonstrates that, although law firms are well-known, their images are not necessarily clear-cut.

Developing, nurturing and adapting a law firm's image is certainly not a question of resources. Some firms literally throw money into marketing and PR, but it may not be well-spent. The forum test revealed that the image of Accenture, although having recently channelled millions into rebranding, was still not clear-cut for several forum members.

Developing, nurturing and adapting an image takes time. It starts with excellent media relations, which equally take time to put in place. It embraces strategic positioning of the law firm in the marketplace, taking into account - first and foremost - the requirements of clients and the professional environment in which the law firm operates. Local and international elements have to be optimally combined. Increasingly, a law firm's image needs to be shaped to appeal to the lawyers of tomorrow.

If anything, the abiding factor in law firm image-building is quality and service and the reputation of lawyers themselves. As the former managing partner of one of the world's most renowned law firms, Slaughter and May, exclaimed in an interview earlier this year with a UK magazine: "The best thing you can do for the image of a law firm is to do an excellent job and be seen to do a first-rate job."

Now who would want to argue with that?

Keith D. Bain
-PR Manager-
Hengeler Mueller


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