What clients want - law firm profits speak volumes about clients' priorities
I don't pay much attention to pronouncements made by general counsel about cost and value. It's a maxim that has generally stood me in good stead at Legal Week. If you did take those public statements at face value, you would have concluded a lot of things: rates are coming down; clients are instructing mid-tiers for much of their work; sophisticated clients are now experts in managing costs and measuring value. The awkward point is that these trends are either not happening in the field or, at least, their prominence is greatly exaggerated. So the most accurate indicator of clients' priorities – the one that never steers me wrong – is the same as it was years ago: our annual table of financial results of the largest UK law firms. This measures the outcomes of thousands of buying decisions made by clients every year. If demand is flat-lining, it's there. If clients are getting tough on rates in certain areas, that is where you will see the result.
November 23, 2011 at 07:03 PM
3 minute read
I don't pay much attention to pronouncements made by general counsel about cost and value. It's a maxim that has generally stood me in good stead at Legal Week. If you did take those public statements at face value, you would have concluded a lot of things: rates are coming down; clients are instructing mid-tiers for much of their work; sophisticated clients are now experts in managing costs and measuring value. The awkward point is that these trends are either not happening in the field or, at least, their prominence is greatly exaggerated.
So the most accurate indicator of clients' priorities – the one that never steers me wrong – is the same as it was years ago: our annual table of financial results of the largest UK law firms. This measures the outcomes of thousands of buying decisions made by clients every year. If demand is flat-lining, it's there. If clients are getting tough on rates in certain areas, that is where you will see the result.
Because the simple point is that for years there has been a huge gulf between what clients publicly say they want – much of it entirely justified – and what they do when it comes to the crunch. Law firms are many things, but dumb they are not. They are masters of playing along with vaguely-worded wish lists that they sense are not going to be enforced but also very quick to start hopping when they see the client is asking for something that they fully intend to get.
A recent report from Nabarro nicely illustrates the nature of this dialogue between client and external adviser – a peculiar form of communication infused with hidden meaning and ambiguity. The report – 'General counsel: vague about value?'– focuses largely on the struggle of in-house legal teams to implement their ambitions of demonstrating value, winning internal respect and improving efficiency.
We reported the findings last week, but the gist is simple: many clients haven't created basic tools to measure efficiency, value or performance, either in their own teams or outside advisers. Other research backs up that point, with this year's Client Satisfaction Report from our independent research arm finding that cost and billing practices are once again the area in which clients are the least happy.
The Nabarro report also underlines one of the reasons why I remain cynical about most of the grander claims made for market-disrupting shifts in the legal industry. Clients so far lack the will or resources to stomach the short-term upheaval required to move away from the traditional hourly-rate model.
It's become a common complaint among managing partners that they invest time and effort creating alternative billing options only to find that clients revert to the comfort of the status quo. I guess it's easier to talk revolution on the conference circuit than it is to implement on a Monday morning. Clients can get what they want, but they have to want it enough.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllBroadcom Hires From Nuclear Giant to Appoint French Legal Head
GCs Say They are Getting 'Edged Out' of UK Boardrooms
'I Won’t Name the Firm, But...'—Barratt Redrow's Legal Head on External Counsel Red Flags
Trending Stories
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250