Most law firms handle rate increases the same way: they send an email or letter notifying clients of a standard percentage hike — often with little to no prior discussion.

How do clients react? Emotionally.

I hear it all the time — clients feel blindsided and frustrated. To them, pricing is about fairness, and fairness is inherently emotional. When a rate increase arrives unexpectedly, without prior dialogue, clients perceive it as arbitrary and unjustified, even if the increase itself is reasonable.

The Cost of a Surprise Increase

I recently worked with a law firm that had a strong relationship with one of its largest clients. The client valued the firm's legal expertise, responsiveness, and industry knowledge. Yet, when I sat down with this client and intently listened to their thoughts and perceptions, they shared with me a serious concern:

“We love working with this firm, but their rates are becoming a major issue. If they keep indiscriminately increasing them without taking more time to understand us and our business, they'll put me in a difficult position.”

The firm had no idea frustration was building. Worse, they were about to send a standard email announcing a 10% rate increase. If they had followed through, I am fairly confident that this would have been a great former client. Luckily, I was able to stop the firm and coach this client's legal team on how to approach this rate hike issue before they did irreparable damage to the client relationship. Whew!

Raising rates is necessary, but how you do it matters. Here's how to approach it in a way that strengthens — not weakens — your client relationships.

1. Start the Conversation Early

A rate increase should never be the first pricing conversation you have with a client in a given year. Instead, schedule in-person (or live) discussions at least annually — long before pricing adjustments come into play.

These meetings aren't about announcing rate hikes. They're about listening and understanding the client's business challenges. Ask questions like:

• What are your top business and legal challenges this year?
• How can we better support you?
• What internal pressures are you facing regarding legal spend?

At these listening sessions, never forget — a successful meeting is when the client does 80% of the talking. These conversations give you valuable insight while also allowing you to highlight the firm's investments in talent, technology, and service enhancements that create value.

2. Know Where You Stand with Clients

Getting ahead of the issue means understanding exactly how your key clients perceive your firm — before pricing becomes a point of contention.

One of the best ways to do this is through independent client interviews. A neutral third party (like myself) can gather candid insights clients might not share directly with their attorneys.

With this knowledge, you can position a rate increase in a way that aligns with their expectations. You'll know if they see your firm as a critical partner — or if they're already questioning the cost.

3. Show Clients the Value They're Getting

Don't assume clients automatically see the value behind their legal spend. It's up to the firm to communicate it. Throughout the year, relationship partners should proactively share updates, such as:

• New talent: “We've expanded our team with top-tier lateral hires to deepen our expertise in your industry.”
• Technology investments: “We've implemented new tools to streamline workflows and improve efficiency for your matters.”
• Client service enhancements: “We're rolling out new initiatives to enhance responsiveness and business support.”
• AI: “We're putting this amazing new technology to work — for you. Here's how we're utilizing AI for your situations.”
• Industry knowledge: “We're using technology to track all trends in your industry. Here are one or two articles that you may not have seen relating to your business.”

These updates help build a narrative that reinforces the firm's commitment to delivering value — long before rates are discussed.

4. Have Clients Be Part of the Discussion

Most — if not all — corporate legal departments are under pressure to control costs. Show some empathy. These General Counsels and law department heads are under immense pressures. If law firms don't engage them in pricing discussions, they leave in-house counsel with no ability to justify the increases with their bosses.

To avoid this, firms should:

• Listen to your clients about certain pressures they are under internally.
• Discuss with them a strategy for communicating needed increases to their superiors.
• Clearly review the business rationale behind pricing adjustments.
• Tie rate increases to tangible improvements in service, expertise, and efficiency.
• Ensure clients feel involved in the discussion — not just on the receiving end of a notice.

When clients understand why rates are increasing and have been part of the conversation beforehand, they're far more likely to accept the change without pushback.

Final Thoughts

No client appreciates an unexpected price hike. The keys to maintaining strong relationships while keeping your firm profitable are transparency, proactive communication, and meaningful dialogue.

By staying ahead of the conversation, reinforcing value throughout the year, and making clients part of the discussion, law firms can implement rate increases with far less friction — while strengthening trust and long-term loyalty.

Let's Talk

If your firm is considering a rate increase, now is the time to start the conversation with your key clients. I can help you gather the insights needed to approach it strategically — before it becomes a problem. Email me at fmoore@yourbigriver.com.

Over the past decade, I've had the privilege of working with many successful Managing Partners and other law firm leaders, mostly from midsize firms ranging from New York to Atlanta to Houston. These exceptional smart, engaging men and women are able to effectively lead their firms while also continuing to run their own books of business. How they get it all done — and do it so well — is impressive.

I've also been intrigued with their leadership style — a bit different than what I have been used to in my professional career. With the business leaders that I worked with, their focus was more on inspiring their troops to all work together and push their team's limit to achieve more for themselves, and their company. With law firm leaders, their leadership energies are reluctantly tied up in more tactical firm issues such as partner compensation, increasing associate's salary levels, and boosting firm profitability.

This difference got me to thinking — is it time for law firm leaders to re-think how they are leading their law firms? And, is now the opportunity for law firms to pursue fresh ideas for freeing up their leaders' time and their tactical management obligations?

Increasingly, today's AI world requires that for a relationship oriented law firm to continue to be successful, their firm leaders must have the needed time to direct their personal leadership efforts in a more meaningful, people-first way for the benefit of the firm, and for the firm's clients.

How Business Leaders Lead

I have been fortunate in my career. I have had the great experience of working closely with some impressive business CEOs and Presidents. I was able to witness — from a front row seat — the incredible leadership abilities of these visionaries up close during my strategic branding/positioning days in New York and Dallas.

These leaders consistently focused on the fundamental qualities that make an organization great:

• Company Vision
• Organizational Culture
• Earned Reputation

These business leaders did not assume that past success would translate in a rosey future. They were always reading the tea leaves and adapting their organizations in a people-first way.

It may be time for law firm leaders to shift and pay more attention to these key strategic areas — inspiring vision, motivating culture, and building outstanding client relationships — which foster an even stronger firm reputation.

As my friend and former client Hugh Fain of the law firm Spotts Fain points out: “Law schools don't teach law firm management like business schools teach corporate management.” Hugh agrees that leaders of firms today need to work on learning and finding ways to focus more on these corporate leadership priorities, such as “vision, mission, growth, wellness and overall firm morale, culture and camaraderie.”

Is Technology Getting in the Way of Putting People First?

Kirsten Keegan Vasquez, a partner with the legal recruiting firm Major, Lindsey and Africa, in a recent article in The American Lawyer relates: “Change is happening faster than ever in the [legal] industry (and) the navigation of industry change requires different leadership skills.”

In this emerging world of AI and digital communications, law firm leaders need to serve more as a counterbalance and increase their focus on inspiring personal leadership. Law firm leaders must take it on themselves to promote values, tell meaningful stories, and find ways to personally listen to clients more. In other words, the human, personal connection, in the face of AI, is going to be more important than ever.

This will be important for effectively addressing current and future key performance indicators such as:

• Retaining your best lawyers
• Attracting the best law school graduates
• Enhancing client loyalty

However, achieving them requires a thoughtful, strategic, and highly personal approach. As technology continues to reshape the legal industry, there's a growing risk of law firm cultures becoming more impersonal. Lawyers and clients alike are increasingly relying on digital conveniences — email, Zoom, texting, AI — at the expense of genuine human connection. Now is the time for firms to prioritize personal engagement while at the same time smartly leveraging these advancements, where and when appropriate.

Lean Into Your Competitive Advantage

A firm's authentic culture and the ability of its partners to develop strong, personal client relationships will serve as most important competitive advantages in the years ahead. Law firm leaders must lead their teams in culture enhancement. And, he or she must also engage their fellow partners in the ongoing conversation regarding the importance of strong, personal client relationships and how to achieve this in their firm's unique way. This continual focus on these two areas — culture and relationships — will continue to set the firm authentically apart from its competition as technology tries to commoditize the legal industry.

Free Up Your Law Firm Leaders to Lead

As any law partner knows, law firm leaders already have more than enough on their respective plates. Do they really need — can they manage — more “to-dos?” The answer is “yes,” but with help.

Let an Executive Director manage and focus more on the tactical leadership issues such as partner compensation and profitability. And, if you don't have an Executive Director — hire one, or assign an existing capable member of your administrative staff to this role.

Executive Directors should do more managing. Managing Partners should do more leading. Managing Partners should be freed from many of their financial and administrative duties, allowing them the time and energy to focus on what they do best — inspiring, motivating, and connecting with their people.

People-Based Leadership

It's time for:

• More listening to associates, partners and clients.
• Constantly asking both inside and outside their executive office: “How can we become a better firm?”
• Consistently evaluating: “Are we living the firm's values as well as we should?”
• Telling stories to remind people of the specialness of their firm. What they stand for. Why they exist.
• Always demonstrating to clients that the firm really appreciates their business and the special personal relationship that the firm has with this client.

That's people-based leadership. That's what law firms need more of now.

A Humble, Yet Bold Law Firm Leader

There is one leader of an AmLaw 100 firm that I have always admired. Their identity will be protected as — knowing this person as I do — I realize that they do not like being put up on a pedestal and getting credit for things. But I witnessed this individual's inspiring leadership firsthand. And it made an impression on me.

I saw how the partners and the staff at this firm's multiple offices reacted to this law firm leader. This person made them feel proud about their firm and their work. It seemed like everyone at the firm had a personal relationship with this guiding force of this impressively large, national firm.

I also heard firsthand from this firm's clients who consistently praised this Managing Partner's personal, engaging approach. One client — who made a point to say “We are by no means near being their biggest client” — shared how this incredibly busy, high profile Managing Partner made it a priority to personally stop by their office once or twice a year just to check in, and simply ask genuine, caring questions such as: “How is your business going?” “What kind of challenges are you facing these days?” “How are you personally doing?” “How can we help?”

This client was blown away by how this very powerful law firm leader would humbly care about her and her company's well-being. And, importantly, this leader made sure appropriate actions were immediately taken to address any concerns or suggestions that they may have made. It goes without saying, this kind of leadership builds relationships and fosters loyalty — inside the firm, and out.

The Business Case

This isn't just a search for “feel good” shepherding of law firms. Another law firm friend and client, Chip Nunley, partner at Hunton Andrews Kurth, points to the business benefits for law firms prioritizing strong, people-based leadership. Chip relates:

“[In the business world,] companies with strong CEOs are usually industry segment leaders. So it is with law firms. Those law firms with strong leaders, who are freed up to lead, attract and retain great lawyers perform well in diverse markets and business cycles, and build and maintain a stable of loyal, appreciative clients.”

Every great law firm deserves inspiring leadership — especially now. Law firms should do their best to help their Managing Partners succeed in being an effective, inspiring and people-first firm leader that all lawyers, staff and clients want to follow.

I was having lunch with a long time business acquaintance who is a senior partner at an impressive, influential law firm late last year.

His firm — which I knew well — was comprised of a tight-knit group of principled, sharp, collegial, caring professionals. I, along with many of my business associates, have always been impressed with this firm — especially with their quality of people — their values and culture. Their esprit de corps.

As we sat down at our table, he excitedly asked: “Have you heard the news? Our firm is merging — we're going to become an even bigger, major player.”

Perhaps regrettably, I immediately reacted: “Wow, exciting — are you a bit worried that you will lose the firm's soul?”

What I got back was a furrowed brow and an awkward moment of silence. I could tell that my instinctive response seriously bothered my friend, as he has been a loyal and dedicated leader of his firm for all of his professional life. I wish, for his sake, I would have kept my mouth shut.

But truth is truth. Frankly, I was immediately concerned that this firm may be forging ahead and, in their effort to further leverage their firm's success, they were at risk of starting to lose their hard earned, immensely valuable “magic” that they had impressively achieved over the years. I certainly hoped not.

Stay True to Who You Are

I follow and work with a lot of excellent professional services firms. Really great, inspiring law, investment, and accounting firms. These firms are healthy, thriving organizations comprised of impressive, collaborative and principled partners, associates, and staff. Their culture is strong and — whether they realize it or not — their collaborative culture is one of their true competitive advantages.

These firms that I have been fortunate to work with are led by values-based leaders. And, they have an impressive collection of loyal clients who truly care about the firm's continued success. I know that because that's my job — sitting down and having conversations with the most valued clients of these firms.

When I see these soulful, purposeful firms with engaged leaders, excited and inspired younger partners/associates, and caring loyal clients, I think to myself: “This is the professional services firm holy grail. Why would any organization want to risk moving away from this special place and its authentic inspiring essence?”

In my mind, it's where you want to be so that:

1. Your loyal clients will never think of leaving and jeopardizing such irreplaceable trusting and personal relationships with your focused, values-based team,
2. Your principled professionals will continue to want to work there, and,
3. The brightest and most promising law and business school graduates will be excited to build their professional careers there.

Yes, of course my friend's firm should grow. That is the natural outcome of a successfully executed organization. But, as you grow, you must stay vigilant to protecting the potential downsides of growth. You must guard against walking away from those things that truly got you to where you are.

How do you hold onto an engaged, passionate, and collaborative group of people — including management, partners, associates and staff — who work seamlessly together as a caring, dedicated team …as you grow?

Staying the course and doubling down on the important things such as firm values, culture and vision is, in my mind, the absolute right next step for an expanding professional services firm that is thriving and is looking towards its promising future. After all, your firm's authentic essence is your primary point of difference versus your competitors. Never forget that.

Be Wary of Diving into the “Red Waters”

With the move to “the next level,” everything increases — profit pressures, competitive pressures, recruiting pressures, etc., etc. These are the “red waters” that Chan Kim and Renée Mauborgne allude to in their business classic: Blue Ocean Strategy.

What is easy to get lost during this hectic time of growth and expansion is those “softer things” like maintaining a collaborative culture, or continually reinforcing more meaningful client relationships. Again, the real stuff that separates your firm from your competition. The stuff that is the real glue for your people and your clients.

What do we stand for? Why do we exist? How should we always be as a firm?

I have always loved the quote: “Hard skills will get you in, but soft skills will get you far.”

Previously, in the firm's initial growing period, this essence — your values, your culture, your visions — just came natural — it was like second nature to the firm. NOW, in a time of real growth and expansion, focusing on these core principles reaches a new stage. There must be a more intentional effort to introduce firm initiatives to hold onto your essence. Or, inevitably, this will all take a back seat to the firm's newer, more pressing needs.

Having Your Cake, and Eating It Too

There are great examples of professional service firms that have grown impressively to be major national players while maintaining a strong values-based culture and outstanding, deeper relationships with their clients. Look no further than the law firms of Alston & Bird and Perkins Coie, and the investment firm Baird. (Each of these firms has sustained a long time presence on Fortune's “100 Best Companies to Work For” list — Perkins Coie, 22 straight years; Baird, 21; Alston & Bird, 13.) These firms will tell you this ability to hold onto their “magic” as they grew did not come without a lot of focused, hard work. And — they will also tell you — that this enduring firm-wide work was, and still is, definitely worth it.

Where to Start

Start by listening to your clients. I mean REALLY listening.

Your loyal clients will uncover and clarify your firm “specialness” better than anyone. And, they will reinforce the critical importance of the firm holding onto this magic. These client insights will be really important for all of your people — your leadership, your partners, your associates, your staff — to hear. It will emphasize to the troops why everyone needs to engage in the work ahead to always hold onto our firm's values, culture and vision as you grow.

If you want sincere, unvarnished, truthful, meaningful client feedback — and of course, you do — then have an unbiased third party conduct these conversations with your clients. When done correctly, clients just naturally feel more comfortable in offering their true feelings and perspectives to someone who is not from the firm. Importantly, this should not feel to your valued clients like “research,” but more of an engaging, thoughtful conversation about something they care about — your firm.

Nobody (including your clients) likes to be researched, but everyone loves to be heard.

So, listen to your clients. Make sure they feel truly heard. They will clarify what your firm's essence really is. And then, everyone at the firm can learn from these clients' invaluable insights.

Engage with a good cross-section of your clients, and uncover authentic insights by probing and seeking their unvarnished perceptions among seven key areas:

• Areas where the firm does particularly well
• Clients' authentic feelings about how well the firm does in addressing their pressing needs (business and personal)
• How they see the firm's culture and values, and does that matter to them?
• Perceptions regarding the firm's overall value
• Perception on how the firm is positioned for the future — particularly their future needs
• How the firm does in terms of building tight, “trusted advisor” relationships
• Ways the firm could improve

You will be amazed at the insights that your clients will offer. These invaluable client insights should illuminate your firm's direction forward and keep you from losing your firm's way and disorienting the dreams of your people and your clients.

Take the Path Less Chosen

Here's the deal: With smart vision and doing the right things — your firm will continue to achieve its aspirations and “play more in the big leagues.” The special and more meaningful avenue is to play in these big leagues on your terms.

Do the hard work. Uncover those things that are great about your firm right now and then involve everyone in achieving the challenging — but in the long run — more rewarding goal of holding on to your magic. I will bet that you… and all your colleagues … and your most loyal clients will be glad that in the end you chose the path less taken.

Law firms have always marched to the beat of a slightly different drum. And given their historical success, why change their ways? After all, it has always worked for them.

But, times are a changin. And in significant ways. Changes that law firms must get in line with if they want to continue to succeed.

What Is Your Firm Known For?

I think we can all agree that American businesses have certainly changed their beliefs about what is important to be a successful organization these days. American business leaders have intentionally and consistently steered their ships in the areas of vision, purpose, culture, and “giving back.”

American business top management understands that the success equation has changed in their world from the traditional “top-down” approach — still in play for most law firms — to the more caring, listening, “bottom-up” direction of today's more enlightened organizations. Many of today's and tomorrow's business issues, such as AI and cybersecurity, are just more suited for bright, younger minds. Future leading, successful companies must attract these young minds and, as such, build their organizations on the issues that these young minds care about — purpose, culture, vision, and giving back.

Moving Beyond Profit as Motive

Modern successful businesses have moved far beyond Milton Friedman's proclamation: “Companies exist solely to create profit for shareholders.” But for many law firms, that Friedman edict still applies. And their “shareholders” are, of course, themselves — the partners of the law firm.

This is a short-sighted strategy. It is certainly less enticing to the younger generation and is an increasing “turn-off” to clients and potential clients.

And of recent concern, the clients of law firms are recognizing this lack of vision and purpose behind their law firms — especially as they see how their organizations have made serious steps to change what is important. These clients really don't see a similar change occurring with their law firm… and that is not good. As one client told me:

“All our outside partners organizations must share similar values to our organization, or we will cease to do business with them.”

Make no mistake, those “outside partner organizations” include their law firms.

So, things at law firms must change. And it has to start at the top.

Funny thing. Fifty-plus years ago, law firms were the “purpose drivers.” They were the venerable leaders of their communities and beyond. They were the visible “movers and shakers” that made the way for parks to be built, non-profit powerhouses to be formed, and hospitals to step up their game. They were the ones at the forefront of making good things happen in society. When you heard some of these leading law firms — your mind conjured up images of smart, powerful, respected people making right for the world.

Now, more time than not, it's corporations that make things happen as the law firms step out of the limelight and take a more minor, supporting role.

The Rise of the Mid-Sized Law Firm

It's time — especially for midsize law firms — to return to being more visionary, purposeful, and culture-driven. Become the law firm known for having caring, selfless “trusted advisor” people who truly leverage their talents to help their community and others.

Managing Directors and law firm CEOs need to inspire and create a clear vision for how their firm should be seen. The culture needs to be intentionally steered and become a magnet for the smart, more caring people coming out of law firms today.

For more help in how law firms can get where they need to be, turn to your successful business clients. Let their CEOs counsel you on becoming a more relevant and inspiring organization for today and tomorrow. Listen to your clients and ask for their help. They want to see you continue to succeed as they succeed. They have some insights that you need.

While reviewing numerous law firm websites recently, I observed a recurring theme in their messaging: a commitment to “listening” to client needs. Phrases like “We listen closely to our clients' needs and goals,” and “Our team approaches every client with empathy and compassion” are commonplace. These aspirations are commendable and crucial, especially in an era where authentic client feedback is a cornerstone of success in the ever-evolving AI landscape.

However, one must ponder: Do these firms truly listen? David Maister, the late renowned management consultant, famously critiqued professional services in his book The Trusted Advisor, stating, “Stated simply, professional service firms don't listen to their clients enough.”

The Need for a Chief Client (Listening) Officer

Many law firms believe they are listening to their clients when it comes to tactical interactions, such as case specifics or when clients present new business opportunities. Yet, when it comes to proactive and empathetic listening — truly understanding clients' underlying thoughts, perspectives, and fears — the practice is alarmingly rare.

Here lies the substantial value of appointing a Chief Client (Listening) Officer (CCO), especially for midsize law firms. Contrary to the belief that only large, “Big Law” firms can justify such a role, midsize firms, battling for relevance and competitive edge, perhaps need it most.

Successful mid sized law firms, I have found, tend to have a deeper, more special relationship with their valued clients than more transactional Big Law firms. These “special” client relationships are a critical component of why these midsize firms are so respected and why the firm originally prospered and why it continues to experience success.

But what exactly is that “specialness?” Is it still valid? Ask your clients. It's important to clarify this — especially in teaching your up-and-coming, younger partners. They are the ones who are going to be responsible for holding on to the firm's specialness. They need to clearly understand what “it” is — from the client's perspective.

Redefining Client-Centric Focus

Appointing a dedicated CCO — or contracting with a Fractional CCO — moves beyond mere lip service to genuine client-centric advocacy. This role isn't just another executive title; it's a fundamental pivot toward nurturing deep, meaningful client relationships beyond the superficial metrics of systematic surveys or impersonal data-gathering.

Benefits of a Chief Client (Listening) Officer

• Enhanced Relationship Building: Regular, genuine dialogue with clients does more than any survey could to maintain and deepen trust. It shifts the focus from transactional interactions to developing a thorough understanding of client needs and expectations.
• Increased Client Retention: Open conversations can reveal “blind spots” that routine interactions might miss. These insights are often pivotal, addressing unmet needs before they escalate into reasons for the client to leave.
• Opportunistic Business Development: While the primary goal of a CCO should be to listen authentically, such interactions frequently unearth new business opportunities as clients feel more engaged and understood.
• Valuable Training Insights: Feedback gathered can significantly enhance training programs, aligning them more closely with what clients value most about their legal advisors.

Implementing a Chief Client (Listening) Officer

Opting for a Fractional CCO can be a cost-effective strategy that also brings an unbiased perspective to the feedback-gathering process. Clients are often more open with someone who is not directly tied to the firm, providing more candid and valuable insights. (What we call “the unvarnished truths.”)

However, the selection of the individual for this role is vital. They must:

• Be Highly Comfortable with C-Level Executives: The right candidate should engage effortlessly with top executives in a way that fosters peer-to-peer dialogue. It's essential that these interactions are never perceived as research but as genuine listening — creating an environment where clients can speak freely and feel understood.
• Be a Skilled Conversationalist: This role requires someone who can make conversations enjoyable and engaging, not burdensome. Clients should look forward to these interactions, feeling valued and attentively heard.
• Be a Trusted Confidant: Clients need to trust that their discussions are confidential. The appointed officer must assure clients that their feedback will remain anonymous unless explicitly stated otherwise, with all information aggregated into a general feedback report.
• Be a Strategic Listener: The ideal candidate must listen with intent, capable of identifying and interpreting strategic insights from client conversations. These insights should guide the firm's strategic decisions.

Conclusion

The role of a Chief Client (Listening) Officer is not just an administrative formality but a strategic necessity. In today's competitive legal landscape, where client loyalty and engagement are paramount, having a CCO could well be the linchpin in a firm's client relations strategy.

To explore this concept further and receive a list of the Top 12 Questions Your CCO Should be Asking, email Fred.