Law firms considering a merger or recently emerging from one should take notice of a recent article published by McKinsey & Co. on why mergers fail. In its study of 193 mergers between 1990 and 1997, it found that a dismal 12% succeeded in maintaining revenue growth in line with their non-merged peers. ("Why Mergers Fail", Matthias M. Bekier, Anna J. Bogardus, and Tim Oldham, The McKinsey Quarterly, 2001 Number 4.)

The reason? McKinsey cited an over-emphasis placed on post-merger cost cutting and an under-emphasis on revenue generation. The article concludes that success is determined by an organization's ability to protect and generate revenue growth just after the merger.

What does this mean for law firms? That while taking advantage of cost cutting in the post-merger entity should be explored, it is far more important immediately to seek out new revenue opportunities resulting from the synergies of the merged entities. This is a function ideally suited for next-generation client relationship management (CRM) software capable of delivering relationship intelligence.

Below are some examples illustrating how CRM software can help your firm generate more revenue after the merger:

Uncovering New Strategic Relationships: Lawyers' ability to leverage the firm's strategic relationships with clients and contacts is fundamental in business development. After a merger, the number of potentially valuable relationships an attorney can access has just multiplied. A CRM system will instantly reveal those relationships, providing new avenues to win business.

Enhanced Cross Selling Capabilities: Cross selling serves as one of the most effective and inexpensive ways to generate revenues. To succeed at cross selling, attorneys across different practice groups must have a 360-degree view of the client's relationship with the firm. CRM software provides this birds-eye view into the client, revealing potential opportunities for new areas of representation.

Experience & Expertise Tracking: Staffing matters appropriately to accommodate the client's needs can be tricky after a merger, as new experience and expertise is now available to clients that a lawyer might not be aware of. Therefore, attorneys must have access to information about the collective experience and expertise of all professionals in the newly merged entity. The right CRM solution can make this intelligence available.

Maintaining High Standards of Client Service: After the merger client service often slips as lawyers and staff, suddenly exposed to an entirely unfamiliar client base, struggle to learn new preferences, likes and dislikes. This learning curve can be avoided with CRM software, which provides a centralized knowledge resource that enables anyone who touches the client to access critical client information.

A merger can be a shrewd business move if executed properly, with revenue growth as its primary objective. To achieve that objective, having the right infrastructure in place to aggregate, manage and share relationship intelligence is critical. The right CRM solution will help provide that infrastructure.