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Opportunities knock as 2014 unfolds. Join BTI as we discuss new opportunities and how client service leaders are upping their game. We will dissect the market in rich, robust detail—so you can pinpoint the opportunities best for you and your firm. We’ll delve into powerful findings from more than 300 brand new, in-depth interviews with General Counsel—and over a decade of research and experience—to offer a new perspective on what’s in store. You’ll learn: The corporate legal spending outlook for 9 major practices. Who makes the brand new BTI Client Service 30 and why it changed so much. New CMO budget, spending and productivity metrics. How law firms measure up on client service—by name. BTI’s exclusive, unvarnished analysis of law firms’ market share gains and losses. And much more… BTI’s annual webinar attracts more than 600 law firm leaders worldwide—don’t miss out on your opportunity to discover what the best-performing law firms are doing to stay ahead of the competition. View the full webinar: http://www.youtube.com/watch?v=v3uvnLLQUJM Visit BTI: www.bticonsulting.com Questions? Contact Michael B. Rynowecer, BTI's President at mrynowecer at bticonsulting.com.
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©2014 The BTI Consulting Group Wellesley, MA 02481 Tel: +1 617 439 0333 www.bticonsulting.com
The BTI Consulting Group
396 Washington Street, Suite 314 Wellesley, MA 02481
Tel: +1 617 439 0333 Fax: +1 617 439 9174
www.bticonsulting.com [email protected]
Prepared by:
BTI Market Outlook and Client Service Review 2014
January 16, 2014
Webinar
Compelling Research. Compelling Results.
Page 1
©2014 The BTI Consulting Group Wellesley, MA 02481 Tel: +1 617 439 0333 www.bticonsulting.com Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group
The BTI Approach
Strategic Insight: Changes,
Opportunities, Threats
Corporate Counsel Needs: Now and How They
Will Change
Expectations for Relationships
Drivers Behind Client Satisfaction and Client Service
RESULTS HOW OUR CLIENTS BENEFIT
Higher Profits
Improved Client Service
30 Years’ Experience and Insight
Analysis
Market and Financial of 200-Plus Law Firms
Structured Trend
In-Depth Interviews
4,000 Corporate Counsel
250 Major Law Firm
Leadership Partners
More than 200 Top Business Executives of Fortune 1000 and
Large Companies
Strategic and
Tactical Analysis Higher Growth
Improved Retention
Compelling Research. Compelling Results.
Page 2
©2014 The BTI Consulting Group Wellesley, MA 02481 Tel: +1 617 439 0333 www.bticonsulting.com Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group
U.S. Legal Market Exceeds $100 Billion Mark
Corporate Legal Departments $39.8 Billion 39.8%
Spending on Outside Counsel
$60.2 Billion 60.2%
The $100.1 Billion Market for Legal Services
Source: BTI Premium Practices Forecast 2014: Survey of Corporate Legal Spending
Compelling Research. Compelling Results.
Page 3
©2014 The BTI Consulting Group Wellesley, MA 02481 Tel: +1 617 439 0333 www.bticonsulting.com Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group
Corporate Counsel Shift Spending In-house, New Competition…
In-house Corporate Counsel Spending $ Billions
$0
$10
$20
$30
$40
$33.5
$39.8 2011
2013
Compelling Research. Compelling Results.
Page 4
©2014 The BTI Consulting Group Wellesley, MA 02481 Tel: +1 617 439 0333 www.bticonsulting.com Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group
55.7%
52.8% 51.3%
50.0%
31.2% 33.4%
35.5%
39.5%
20%
30%
40%
50%
60%
2010 2011 2012 2013
Global Organizations A Bright Spot
U.S. Corporate Legal Market for Outside Counsel Percent of Outside Counsel Market
Fortune 1000
Global 500
Source: BTI Premium Practices Forecast 2014: Survey of Corporate Legal Spending
Compelling Research. Compelling Results.
Page 5
©2014 The BTI Consulting Group Wellesley, MA 02481 Tel: +1 617 439 0333 www.bticonsulting.com Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group
Premium Practices Roadmap for 2014
Regulatory
Employment
Bankruptcy
Securities
Bet-the-Company
Tax
Class Actions
Real Estate
Litigation
IP Litigation
Restructuring
M&A
Investigations
Environmental
IP Corporate
Relative Rates
TACTICAL PRACTICES PRIORITY PRACTICES
CORNERSTONE PRACTICES OPPORTUNISTIC PRACTICES
High Growth 10.0%
Negative Growth -4.0%
1.1% Average Growth
Routine Rates Premium
Gro
wth
Pro
spect
s
= $2 Billion Market Opportunity
Source: BTI Premium Practices Forecast 2014: Survey of Corporate Legal Spending
Moderate Growth
Compelling Research. Compelling Results.
Page 6
©2014 The BTI Consulting Group Wellesley, MA 02481 Tel: +1 617 439 0333 www.bticonsulting.com Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group
Matters to Surge, Spending Flat
150
200
250
300
350
$10.0
$15.0
$20.0
$25.0
$30.0
2011 2012 2013 2014(Projected)
Litigation Activity and Litigation Spending Billions Matters
Source: BTI Litigation Outlook 2014: Changes, Trends and Opportunities for Law Firms
Litigation Spending
Total Matters
Compelling Research. Compelling Results.
Page 7
©2014 The BTI Consulting Group Wellesley, MA 02481 Tel: +1 617 439 0333 www.bticonsulting.com Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group
Resolution Rates Remain High
22.2%
36.9%
41.6%
36.5% 39.7%
0%
25%
50%
75%
2009 2010 2011 2012 2013 2014…
Trend in Resolution Rates Percent of Active Matters Settled
Source: BTI Litigation Outlook 2014: Changes, Trends and Opportunities for Law Firms
Compelling Research. Compelling Results.
Page 8
©2014 The BTI Consulting Group Wellesley, MA 02481 Tel: +1 617 439 0333 www.bticonsulting.com Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group
$24.8 $25.4
$27.2
$25.4 $26.6
$30.0
$32.2 $32.8
$28.1
$30.3 $30.1
$32.7 $33.3
$10.5 $11.6
$14.0 $14.6
$16.9
$19.5 $20.5 $20.8
$18.5 $18.7 $19.1 $19.8 $19.7
42.2% 45.7%
51.4%
57.6%
63.4% 65.0% 63.5% 63.3%
65.9% 61.6%
63.6% 60.6% 59.2%
0%
25%
50%
75%
100%
$0
$10
$20
$30
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Outside Counsel Spending
Total Legal Affairs Spending
$ Millions Outside Counsel as % of Total Spending
A Predator’s Paradise Outside Counsel Spending Flat
Source: BTI Premium Practices Forecast 2014: Survey of Corporate Legal Spending
Compelling Research. Compelling Results.
Page 9
©2014 The BTI Consulting Group Wellesley, MA 02481 Tel: +1 617 439 0333 www.bticonsulting.com Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group
Harsh Law Firm Self Ranking on Essential Skills
6.93
7.82
1
4
7
10
Marketing and BusinessDevelopment Efforts
OverallClient Service
Self Performance Rating
High
Average
Median
Low
Compelling Research. Compelling Results.
Page 10
©2014 The BTI Consulting Group Wellesley, MA 02481 Tel: +1 617 439 0333 www.bticonsulting.com Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group
2.20%
2.10% 2.10%
2.01% 2.06%
2.34% 2.42% 2.50%
2.60%
2.44%
2.17% 2.14% 2.28%
2.57%
2.84%
2.64% 2.57%
2.93% 2.81%
1.5%
2.0%
2.5%
3.0%
2006 2007 2008 2009 2010 2011 2012 2013
Law Firms Invest In Marketing and BD Muscle
Average Marketing Budgets Percentage of Revenue
Expressed as a percent of revenue, including salaries, what is your marketing budget for 2012?
AmLaw 100
AmLaw 101-200
Outside AmLaw 200
Compelling Research. Compelling Results.
Page 11
©2014 The BTI Consulting Group Wellesley, MA 02481 Tel: +1 617 439 0333 www.bticonsulting.com Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group
Hand-to-Hand Combat: 11 Core Law Firms Compete Every Day for Work
Law Firm Utilization Number of Law Firms
0
10
20
30
40
2
9
36
Primary Law Firms
Secondary Law Firms
All Others
Core law firms account for approximately 80% of outside
counsel spending
Handle small, technical or routine
cases
Compelling Research. Compelling Results.
Page 12
©2014 The BTI Consulting Group Wellesley, MA 02481 Tel: +1 617 439 0333 www.bticonsulting.com Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group
Benchmarking Key Client Service Metrics: Reaching Clientopia
Financial Investment
Emotional Investment
Clientopia The Ideal State of the Client Relationship
First Primary Core Firm First Recommended
ClientopiaTM
Compelling Research. Compelling Results.
Page 13
©2014 The BTI Consulting Group Wellesley, MA 02481 Tel: +1 617 439 0333 www.bticonsulting.com Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group
31.4% of Clients are Truly Satisfied with Their Leading Law Firm
31.4% of corporate counsel recommend their
primary law firm first
Clientopia The Ideal State of the Client Relationship
Compelling Research. Compelling Results.
Page 14
©2014 The BTI Consulting Group Wellesley, MA 02481 Tel: +1 617 439 0333 www.bticonsulting.com Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group
Clients See as
Abundant in the Market
Clients See as
Scarce in the Market
Ability to Differentiate
17 Activities to Develop Superior Client Relationships
Importance
High
Low
Not Important Very Important
Commitment to Help
Quality Products
Deals with Unexpected Changes
Handles Problems
Client Focus
Keeps Clients Informed
Meets Core Scope
Provides Value for the Dollar
Unprompted Communication
Helps Advise on Business Issues
Regional Reputation
Brings Together National Resources
Innovative Approach
Breadth of Services
Anticipates the Client’s Needs
Legal Skills
Understands the Client’s Business
Compelling Research. Compelling Results.
Page 15
©2014 The BTI Consulting Group Wellesley, MA 02481 Tel: +1 617 439 0333 www.bticonsulting.com Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group
650 Core Law Firms Serve the Fortune 1000; Just 336 Stand Out for Superior Client Service
Best-in-Class BTI Client Service 30
30 Law Firms 4.6%
Law Firms Honored in the Client
Service A-Team 306 Law Firms
47.1%
Other Core Law Firms Serving the Fortune 1000 314 Law Firms 48.3%
Compelling Research. Compelling Results.
Page 16
©2014 The BTI Consulting Group Wellesley, MA 02481 Tel: +1 617 439 0333 www.bticonsulting.com Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group
The 2014 BTI Client Service Top 30: The Cream of the Crop
BTI Client Service Rank
BTI Client Service Score
BTI Client Service Rank
BTI Client Service Score
16. Holland & Knight
17. Hogan Lovells
18. Littler Mendelson
19. Norton Rose Fulbright
20. Greenberg Traurig
21. Jackson Lewis
22. K&L Gates
23. Foley & Lardner
24. Alston & Bird
25. McGuireWoods
26. Venable
27. DLA Piper
28. Ogletree, Deakins
29. Thompson Coburn
30. Husch Blackwell
171.80
151.44
151.05
146.17
144.61
141.11
141.03
138.08
137.50
129.50
127.36
122.03
115.55
104.48
103.59
1. Skadden, Arps
2. Jones Day
3. Sidley Austin
4. Morgan Lewis
5. Kirkland & Ellis
6. Morrison & Foerster
7. Latham & Watkins
8. Thompson Hine
9. Faegre Baker Daniels
10. Gibson, Dunn & Crutcher
11. Reed Smith
12. Mayer Brown
13. Bryan Cave
14. Seyfarth Shaw
15. McDermott Will & Emery
374.67
274.87
255.33
254.58
252.05
247.03
229.34
212.04
204.79
197.88
196.58
192.78
190.08
186.37
172.47
Highlighted firms boast more than 12 years as part of The BTI Client Service 30
Compelling Research. Compelling Results.
Page 17
©2014 The BTI Consulting Group Wellesley, MA 02481 Tel: +1 617 439 0333 www.bticonsulting.com Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group
Superior Client Service Changes the Nature of Client Relationships
Number of Practices Delivered to Clients
0
2.5
5
1.0
1.8
3.2
Secondary Law Firms Primary Law Firms With Superior Client Service
Primary Law Firms
Compelling Research. Compelling Results.
Page 18
©2014 The BTI Consulting Group Wellesley, MA 02481 Tel: +1 617 439 0333 www.bticonsulting.com Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group
Benefits Enjoyed by Law Firms Consistently Delivering the Best Client Service
Higher Profits Rate Premiums Across All Staff Levels
Fees From a Single Client
Higher Client Retention
2x
Higher Growth 0%
25%
50%
33.0%
25.6%
50.0%
39.0%
35.9%
Compelling Research. Compelling Results.
Page 19
©2014 The BTI Consulting Group Wellesley, MA 02481 Tel: +1 617 439 0333 www.bticonsulting.com Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group
Superior Client Service Initiatives: Garnering Buy-in
Superior Client Service Initiatives
Make the client service initiative your partners’ idea
› Ask partners to rank the priority and benefit of client service tactics
› Use the results to design your initiative—mostly
Use your next retreat to create the demand
› Strategically designed breakout groups to drive client service
• Partners:
– Identify obstacles to delivering superior client service
– Pinpoint strategies to overcome obstacles
– Delineate best actions to implement
› High-impact interactions
• Short
• Specific
• Actions vetted by partners
• NO navel gazing
Compelling Research. Compelling Results.
Page 20
©2014 The BTI Consulting Group Wellesley, MA 02481 Tel: +1 617 439 0333 www.bticonsulting.com Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group
Superior Client Service Initiatives: Garnering Buy-in
Superior Client Service Initiatives
Use client feedback scores as evidence of need to outperform competitors in your client base
› Overall performance score
› Scores on BTI 17 Activities
› Scores compared to other law firm serving your clients
› Metrics to put a stake in the ground
› Probe as to “why” to help partners to understand
Compelling Research. Compelling Results.
Page 21
©2014 The BTI Consulting Group Wellesley, MA 02481 Tel: +1 617 439 0333 www.bticonsulting.com Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group
Number One Obstacle According to Law Firms: Resistance
Getting Support for Client Feedback
Create a sense of urgency, need and value
Include in: strategic plan, partner annual goals, practice-specific goals
Gain feedback from high-profile, large-scale clients first
Ask partners which questions they think make the most sense to ask
› Provide sample survey documents and questions
Embrace friendly and influential partners who support client feedback
› Provide results
Invite partners to present changes resulting from client feedback at every firm-sponsored meeting
› Leadership follows up on results
The average Am Law 200 firm has over 11% of client billings at risk in their largest clients
Compelling Research. Compelling Results.
Page 22
©2014 The BTI Consulting Group Wellesley, MA 02481 Tel: +1 617 439 0333 www.bticonsulting.com Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group
5 Rules to Maximize Opportunity in a Slow-Growth Economy
Rules for Market Share Gains
1. Deliver superior (not good) client service
70% of Leaders deliver superior client service
2. Assign a senior partner to be accountable for client service
3. Don’t dabble—commit substantial resources on a systematic basis
4. Treat your 50 largest clients as 50 markets of one
Each client is an unique market opportunity
Each opportunity requires a custom approach for success
5. Act now—we are only at the beginning of the maturation of the
legal industry
Compelling Research. Compelling Results.
Page 23
©2014 The BTI Consulting Group Wellesley, MA 02481 Tel: +1 617 439 0333 www.bticonsulting.com Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group
Steps to Take Tomorrow
Immediate Impact Activities
Form a triage team with your clients to jointly assess new matters and needs as they come in
› Once a month or biweekly, depending on client
Offer to sit on clients’ new product development committees
› Help spot IP opportunities; both strategic and defensive
Swarm clients with online value-added tools:
› Checklists
› Guidelines
› Self assessments
Compelling Research. Compelling Results.
Page 24
©2014 The BTI Consulting Group Wellesley, MA 02481 Tel: +1 617 439 0333 www.bticonsulting.com Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group
What’s New in BTI Research and Reports
Upcoming Reports
The BTI Client Service All-Stars 2014
New! The BTI IP and IP Litigation Outlook
New! BTI’s Rate Study
The BTI Brand Elite 2014
BTI’s How Clients Hire: The Role of Legal Directories and Online Lawyer Profiles
Just-Released Research
The BTI Client Service A-Team 2014
BTI Premium Practices Forecast
BTI’s Strategic Review and Outlook
The BTI Litigation Outlook
Compelling Research. Compelling Results.
Page 25
©2014 The BTI Consulting Group Wellesley, MA 02481 Tel: +1 617 439 0333 www.bticonsulting.com Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group
BTI’s Key Services
We can help you with everything
from high-impact client feedback
to full-scale client service initiatives
Contact:
Michael B. Rynowecer
Jennifer Petrone Dezso
Compelling Research. Compelling Results.
Page 26
©2014 The BTI Consulting Group Wellesley, MA 02481 Tel: +1 617 439 0333 www.bticonsulting.com Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group
Follow BTI
LMA Annual Conference 2014 Clientelligence: The Cold, Hard Facts on What Your Clients Really Want from Your Firm Thursday, April 3, 2014 4:15 – 5:15 PM Orlando, FL
Twitter: @bticonsulting and @themadclientist Follow BTI Consulting on LinkedIn Like BTI Consulting on Facebook
Compelling Research. Compelling Results.
Page 27
©2014 The BTI Consulting Group Wellesley, MA 02481 Tel: +1 617 439 0333 www.bticonsulting.com Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group
Thank You
www.TheMadClientist.com
Michael B. Rynowecer
+1 508.651.5048
Jennifer Petrone Dezso
+1 512.243.8037
To find out how BTI can help you with your client research or strategic planning, contact Michael B. Rynowecer or Jennifer Petrone Dezso
©2014 The BTI Consulting Group Wellesley, MA 02481 Tel: +1 617 439 0333 www.bticonsulting.com
The BTI Consulting Group
396 Washington Street, Suite 314 Wellesley, MA 02481
Tel: +1 617 439 0333 Fax: +1 617 439 9174
www.bticonsulting.com [email protected]
Prepared by:
BTI Market Outlook and Client Service Review 2014
January 16, 2014
Webinar