2007 Leigh Dance

[email protected] – March 2007

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2007 Leigh Dance

Global Legal Services Buying Trends: How to Leverage Them Into Wins For Your Firm

Leigh Dance June 2007 - London

ELD International, Inc.

[email protected] – June 7 2007

[email protected] – March [email protected] – June 2007

[email protected] – March [email protected] – June 2007


Global Law Functions Focus on Improvement In 6 Areas

1. Productivity and process improvement across legal function

2. Use of data for all aspects: reporting, budgeting, forecasting, tracking

3. Improving value from outside lawyers4. Improving value from in-house lawyers 5. Lower costs and greater control of disputes6. Better depth and breadth on compliance


TREND: Overload of marketing and pitches to largest global companies

Why are large global companies today’s target?Numerous multi-jurisdictional transactionsNeed for support in more than one geographyHigh profile, sophisticated, complex problemsPrecisely the work the aspirationally ‘global’ firms

want and need to justify investments


TREND: Overload of marketing and pitches to largest global companiesClients ……receive dozens too many event invitations…and hundreds too many newsletters/client

alerts: few specific to their needs or sector…will rarely respond without follow up…always want more time with peers (prefer

to keep outside lawyers out)


OPPORTUNITY: Overload of marketing + pitches to largest global companies

Your firm should…Take very good care of your current global

corporate clients – deepen/broaden your contactsExecute carefully targeted and highly

differentiated marketing initiativesBring corporate counsel together with each other,

not only to hear youGive them info to make their work easier


OPPORTUNITY: Overload of marketing + pitches to largest global companies

Your firm should… Present information in tables and formats easy

to digestAdapt your communications to their systemsSpotlight personal professional relationships –

they countLook for windows: circumstances change

constantly inside large globals


TREND: Regulatory Scrutiny and the Risks of a High Profile

Global corporate clients face… Increased pressure to ensure complianceChallenges to help the company keep its

promises and also achieve business goalsNeed to reduce threats, manage crisesDangerous stakes: unforgiving

enforcement and aggressive media


TREND: Regulatory Scrutiny and the Risks of a High Profile

Clients face…Huge increase in reporting responsibilitiesNeed to understand changing laws and how they

are being enforced worldwideObligation to find and solve problems to surviveAbility to get to the bottom of a ‘situation’ fastActions to avoid ‘creep’ of regulatory inquiries


OPPORTUNITY: Regulatory Scrutiny and the Risks of a High Profile

Your marketing should…Emphasize firm name, reputation, firm integrityCommunicate empathy – don’t scare the horsesUnderstand client compliance demands and

provide component of compliance support Communicate specific talent in geographies,

sectors and practice nichesAssist in identifying and monitoring threats


OPPORTUNITY: Regulatory Scrutiny and the Risks of a High Profile

Your marketing should…Present information consistent with compliance

reporting needsProvide legal and regulatory info and connect dots

to the client’s compliance pressure points Demonstrate fast response, solid project

managementProvide ‘dealroom’ context for crisis management


TREND: Procurement managers are invading corporate law departmentsCorporate counsel face…Arrival of procurement since all other major

corporate expense areas have been addressedConstant demand to prove value, yet little

reward for doing soA procurement manager’s tendency to look at

legal service purchase like buying widgets


TREND: Procurement managers are invading corporate law departmentsCorporate counsel face…Procurement managers tactic to utilize

competition among firms to reduce costsDemand for measurable proof of value,

reporting that demonstrates worth: transparency

Pressure for convergence squared


OPPORTUNITY: Procurement mgrs are invading corporate law departmentsYour marketing and business development

should…Prepare to be one step ahead: measure and

prove your value proactivelyImprove transparency in budgets and estimates

and allocation of resourcesDemonstrate and promote efficienciesOffer some value-added services free


Global Law Functions Focus on Improvement In 6 Areas

1. Productivity and process improvement across legal function

2. Use of data for all aspects: reporting, budgeting, forecasting, tracking

3. Improving value from outside lawyers4. Improving value from in-house lawyers 5. Lower costs and greater control of disputes6. Better depth and breadth on compliance


EXAMPLE: Counsel to Counsel – Paris - 9 May 07

Increasing control over M&A costs (European 50 company)Gather and track data for all law firm providers so as to

have alternative measures than hourly ratesBreak jobs into phases, estimate hours per phase, build

a cost modelKeep responsibility within legal to calculate costs of

transactionsProvide data to Procurement ahead of requests

2. Use of data for reporting, budgeting, forecasting, tracking


OPPORTUNITY: Procurement mgrs are invading corporate law departmentsYour business development should in essence…

Do a far better job of making the value proposition

- Billable hour is the devil we know

- Lawyers lack experience/autonomy to propose alternative pricing

- Breakdown in cross-border situations


OPPORTUNITY: Procurement mgrs are invading law departments

Your marketing messages should emphasise :

The needs to reduce risk trumps cost - low-risk choice,

- better coverage of legal services needs,

- improved corporate governance


TREND: In-house counsel tiring of client competitions, proposal processesClients face…Time consuming process, difficult to control Creation of tensions and disincentives in

future law firm relationshipsInefficient– prefer to just get the work doneErosion of power over purchasing, and

independence of choice


OPPORTUNITY: In-house counsel tiring of client competitions, proposal processesYour marketing should…Identify and market differently the practices

that tend to fall outside scope of panelsBuild solid relationships with client to pitch

informally in advance of RFT/RFPContinue evaluating cost/benefit of

participating in RFTs, RFPs


Global Legal Services Buying Trends: How to Leverage Them Into Wins For Your Firm

E. Leigh Dance June 2007

[email protected]


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2007 Leigh Dance