2017 Chief Legal Officer Survey - Altman Weil · The same pattern holds true for planned outside counsel spending in 2018. While in aggregate 40% of departments say they plan increases

2017

Chief Legal Officer Survey An Altman Weil Flash Survey

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SUMMARY & ANALYSIS

© 2017 Altman Weil, Inc. 2017 Chief Legal Officer Survey - i

2017 Chief Legal Officer Survey

Each year since 2000, the Chief Legal Officer Survey has provided insights into the

state of in-house law departments from the perspective of their chief lawyers. Now in its

eighteenth year, the 2017 survey identifies long-term trends, highlights new and

emerging issues, and explores the reasons behind the findings.

The Chief Legal Officer (CLO) position is a complex job encompassing law, business

and leadership roles – and the law departments they lead are not monolithic. They

range from solo shops with one lawyer who wears all hats, to departments with 1,000 or

more lawyers that have a vast array of resources and an equal number of challenges.

This year, for the first time, the survey includes breakouts by department size to provide

more depth and insight on management approaches and spending decisions. In doing

this, we have been able to identify where department size is a factor and where it does

not appear to be material. We also asked not only about the management tactics law

departments are using in a variety of areas, but also whether or not each effort has

resulted in a significant improvement in performance.

The report includes data on department personnel and operations as well as outside

counsel management – and throughout the survey these internal and external elements

intersect. The push and pull of interdependence between law departments (as clients)

and law firms (as their primary service providers) is evident. At the same time, non-law-

firm vendors and evolving technology tools play a growing role, offering new alternatives

to the traditional 'law firm-client' pairing.

Law Department Staffing

Thirty-eight percent of law departments plan to add in-house lawyers in the next 12

months, according to the survey. That is 4.5 times more than the 8% that plan to

decrease their in-house lawyer staff, continuing a recent trend of law department

growth. Of those planning an increase, 68% said they plan to add lawyers to cover an

overall increase in workload; 49% will do so to fill open positions, and 29% will hire to

cover new areas of law. A little over a third (36%) of all departments plan to increase

lawyer staff for a more calculated reason – to save money on outside counsel costs.

SUMMARY & ANALYSIS

© 2017 Altman Weil, Inc. 2017 Chief Legal Officer Survey - ii

The Law Department Operations Manager (LDO) position (akin to law firm COOs and

executive directors) is relatively new, but it is gaining traction. This year, 37% of law

departments report having either a full-time or part-time administrator up from 33% last

year. Three quarters of all departments with 50 or more lawyers report having an LDO

on staff. These professionals oversee day-to-day operations in the department and

manage financial issues, including outside counsel spend, technology and people.

For most law departments with even ten lawyers or more, there can be significant value

in transferring administrative functions to a specially qualified professional. Although

many CLOs will default to adding another lawyer if they have added resources, it is

worth assessing the benefits of freeing up lawyer time from administrative tasks to focus

more on practicing law.

Improving Internal Efficiency

Of ten options to improve law department efficiency, the most common response, from

58% of all respondent departments, is a greater use of technology tools. The

preference for this tactic directly correlates to department size, with 55% of 1-lawyer

departments using it, while 81% do so in departments with over 50 lawyers. This

differential is not surprising considering the investment of money and time required to

purchase and effectively implement new tech tools.

The second most frequently deployed efficiency technique is greater use of paralegals

and other para-professionals, reported by 45% of all departments. Here, there is no

significant difference based on department size.

We also asked how effective each of the ten efficiency tactics had been in improving

performance. The tactic with the highest effectiveness score is outsourcing to

non-law-firm vendors – although it was second to last in frequency, used by only 19% of

all departments. This is also a tactic used much more by large departments, likely

because outsourcing also requires a significant up-front investment to set up and

manage and makes most sense if it can be applied to a critical mass of work over an

extended period of time.

In contrast, the second most effective technique is also the second most frequently

used – i.e., a greater use of paralegals and other para-professionals. This is an

effective, familiar, and easy-to-implement tactic available to all law departments.

SUMMARY & ANALYSIS

© 2017 Altman Weil, Inc. 2017 Chief Legal Officer Survey - iii

We recommend that law department leaders look at each pairing of tactic and

effectiveness, considering the investment required and the outcomes reported, in order

to identify where potential opportunities may exist to improve their department’s

performance.

Controlling Costs

We asked Chief Legal Officers about 14 cost control techniques and the effectiveness

of each. In this category, the most frequently used tactics are: price reductions from

outside counsel (named by 64% of departments); improved internal efficiencies (in 58%

of departments), requiring outside counsel budgets; and, alternative or fixed fees (the

latter two in 51% of departments each). The use of all cost control tactics on the list has

a direct correlation with department size, with larger departments more likely to pursue

each option.

Interestingly, outsourcing to non-law-firm vendors again took the top spot as most

effective tactic for those that use it to control costs. For departments in which

outsourcing is a viable option, it clearly has proven potential.

The second, third and fourth most effective cost control tactics all target outside law

firms: shifting law firm work to lower-priced firms, reducing the total amount of work sent

to outside counsel, and shifting law firm work to in-house lawyers. Each of these tactics

is an example of labor arbitrage in which CLOs are rethinking who should do their work

and how it should be done.

The Law Department Budget

We asked CLOs about the change in their total law department budgets from 2016 to

2017, as well as detail on changes to internal spend and spend on outside counsel and

vendors. Overall 45% of departments increased total spend in 2017; 36% decreased

their budgets; and, 19% made no change.

A majority of law departments increased their internal budgets in 2017. Fifty-six percent

of all departments report an increase, while only 22% report a decrease. This continues

a multi-year trend in which increases in this category have significantly outpaced

decreases. For the first time since 2013, law department vendor budgets also saw

more increases than decreases – with 20% of departments upping their vendor spend,

while 12% decreased it.

SUMMARY & ANALYSIS

© 2017 Altman Weil, Inc. 2017 Chief Legal Officer Survey - iv

Outside counsel spend is the only category in which more departments cut their

budgets in 2017 than those that increased it. Forty-one percent of law departments

report decreasing outside counsel spend, while 32% report an increase. However, the

differential between decreases and increases has been narrowing each year since

2015.

The survey found a noteworthy turnaround in law department predictions about future

outside counsel spending. When asked about their plans for 2018, 40% of law

departments indicate they plan to increase their outside budgets next year as opposed

to 33% that anticipate a decrease. This is the first time since 2007 that more

departments plan increases than decreases in outside counsel spending.

This anticipated change of direction in outside counsel spending in 2018 may be an

extension of the narrowing gap between decreases and increases in actual spending

reported over the last three years. It will be interesting to see if this prediction about

future spending pans out in real changes next year.

Department Size and Spending Trends

On spending, department size is a clear determinative factor. For total legal spend in

2017 and in each budget sub-category, the largest law departments diverge sharply

from departments of other sizes. For example, in law departments with over 50

lawyers, only 22% increased their total spend in 2017, while 59% decreased the budget.

At the other end of the spectrum in one-lawyer departments, 77% increased total spend

and only 12% decreased spend.

The same pattern holds true for planned outside counsel spending in 2018. While in

aggregate 40% of departments say they plan increases and 33% plan decreases, the

results by department size tell a more nuanced story. In one-lawyer departments, 70%

plan to increase outside spend in 2018, and 5% plan a decrease. In 2 to 10 lawyer

departments, 44% plan to spend more on outside counsel, and 25% plan a decrease;

and, in 11 to 50 lawyer departments, 36% plan an increase and 39% plan a decrease.

In departments with more than 50 lawyers, only 22% plan to increase outside counsel

spend while 53% plan a decrease.

Why are so many more large law departments able to hold the line on spending

increases? Larger departments have more lawyers to cover workloads, can afford

more sophisticated technology, are more likely to have outsourcing capabilities, likely

wield more leverage over law firms, and more often than not employ an LDO and staff

SUMMARY & ANALYSIS

© 2017 Altman Weil, Inc. 2017 Chief Legal Officer Survey - v

to manage processes and metrics. All of these tools equip larger departments to work

more efficiently and to control inside and outside costs more effectively. Smaller

departments are simply less flexible and have fewer tools at their disposal.

Negotiating Power

Virtually all law departments receive discounts on standard law firm rates that range

from an average of 1% to 15% or more, with a median of 10% – a number that holds

true across all department sizes. But what obstacles, if any, do departments face in

getting greater discounts?

The top reason, given by 55% of CLOs, is that they believe they do not have enough

buying power to negotiate more effectively. The next most frequent response, from

51% of departments, is that law firms resist giving greater discounts. An additional 30%

of departments say they don't push harder for discounts because they don't want to

damage good relationships with their outside counsel.

To get a better idea of how much negotiating power law departments really might have,

we asked what percentage of their outside fees last year were for work that could have

been done by many different law firms. The median response across all department

sizes is 41% to 50% of their outside spend. We also asked what percentage of fees

went to work that was not price sensitive, and received a median response of 21% to

30%.

A number of factors are in play here. It seems that law departments do, in fact, have

considerable negotiating power which they may underestimate. However, there are

many costs and considerations in retaining law firms that go beyond pure dollars and

cents. There is value in continuity, institutional knowledge and relationships that may

equal or surpass a few added percentage points on the discount scale. This is an area

where Chief Legal Officers need to thoughtfully assess which law firms merit their

loyalty, and when there may be strategic gain in negotiating more aggressively or

looking for alternative providers.

Outside Counsel Management

We asked law departments what they routinely do to manage outside counsel. Eighty-

one percent say they require budgets for major matters; 79% provide guidelines for

billing, expenses, matter staffing and matter management; and, 67% negotiate fixed,

capped or alternative fees.

SUMMARY & ANALYSIS

© 2017 Altman Weil, Inc. 2017 Chief Legal Officer Survey - vi

It's noteworthy that although 79% of departments indicate they provide standard billing

and management guidelines to their law firms, only 60% say they routinely enforce the

guidelines provided. When we followed up with a question about which outside counsel

management techniques are most effective, the number one response was to enforce

these guidelines.

To set standards and then fail to enforce them is an obvious and unnecessary omission

– and one that should not stand in any law department that is serious about effectively

managing law firms.

In considering what changes and improvements they would most like to see from

outside counsel, CLOs in departments of all sizes prioritize costs over process. Their

top three choices all focus on containing costs, including: greater overall cost

reductions, identified by 51% of all respondents; improved budget forecasting, chosen

by 46% of CLOs; and, non-hourly pricing structures, chosen by 39% of CLOs. Their

second tier of priorities address how their work is done, including: modification of work

to match legal risk levels (31%), more efficient project management (30%), and more

efficient project staffing (29%).

This preference for cost control over process efficiency is borne out in another question.

Forty-five percent of CLOs say they have shifted a portfolio of work worth $50,000 or

more from one law firm to another in the last year in order to get lower fees. In contrast,

only 28% have made a similar change to achieve greater matter management

efficiency. It is easier for law departments to demand cost reductions from providers

and let them determine how to achieve lower fees.

Understanding Law Department Challenges

In a final question, we asked CLOs to rate three key groups of stakeholders on their

knowledge and understanding of the challenges of leading a law department. Using a

scale of 0 to 10 in which 0 equals 'no understanding, 5 is 'intermediate understanding,'

and 10 equals 'sophisticated understanding,' law department leaders rate non-law-firm

vendors at an average of 4.2, their organization's executives at 5.7, and their outside

counsel at 6.1.

It's striking that neither category of service providers – vendors or law firms – are

perceived to have anything approaching a sophisticated understanding of their

customers and clients, and surely that is a source of dissatisfaction for Chief Legal

Officers. While it should not be the job of the CLO to proactively educate providers on

SUMMARY & ANALYSIS

© 2017 Altman Weil, Inc. 2017 Chief Legal Officer Survey - vii

their department’s needs and priorities, such an understanding is another factor law

departments can and should consider in making future purchasing decisions.

The 2017 Survey

The Chief Legal Officer Survey has been conducted and published annually by Altman

Weil since 2000, most recently in September and October 2017. Two hundred and

eighty responses were received for the 2017 survey, 21% of the 1,332 law departments

invited to participate. Demographic and budgetary data on responding law departments

is included in the survey report.

The survey report follows and is online at www.altmanweil.com/CLO2017.

SUMMARY & ANALYSIS

© 2017 Altman Weil, Inc. 2017 Chief Legal Officer Survey - viii

Survey Methodology

The large majority of survey questions were posed in a multiple-choice format and

responses are reported as received. Question text is transcribed in the following report

exactly as it appeared in the survey. Where there were special instructions, rating

scales, or supplemental definitions, that information is also included.

Free text data submitted by respondents was reviewed and, in a handful of cases,

edited to correct obvious typographical errors. For numeric entries, we made a small

number of corrections where the intended response was clear. In a few instances we

omitted a data point as impossible to derive from the information provided.

About Altman Weil

Founded in 1970, Altman Weil, Inc. is dedicated exclusively to the legal profession. It

provides management consulting services to law firms, law departments and legal

vendors worldwide. The firm is independently owned by its professional consultants,

who have backgrounds in law, industry, finance, marketing, administration and

government.

More information on Altman Weil can be found at www.altmanweil.com.

2017 CHIEF LEGAL OFFICER SURVEY

© 2017 Altman Weil, Inc. An Altman Weil Flash Survey - 1

The Chief Legal Officer Position

Please estimate how your time was allocated over the last 12 months.

(Responses must equal 100%.)

Other corporate management responsibilities defined for this question as: “Compliance, HR, Security, etc.”

OTHER (representative comments)

Risk management

Board activities

Corporate Secretary

Government affairs / legislative advocacy

Professional activities / development

Community activity

35.0%

23.6%

19.6%

18.3%

0%

100%

Other

Managing the Law Department

Other corporate management responsibilities

Practicing law

Advising executives / Corporate strategy

Legend, top to bottom, corresponds to percentages top to bottom



The Law Department's Greatest Value

Beyond effectively solving legal problems that arise, what does your CEO and/or

Board of Directors value most in your Law Department’s performance?

Rank the following activities from 1 to 6: 1= Most valuable to 6 = Least valuable.

OTHER (representative comments)

Deep knowledge of the business and regulatory environment

Serving as an ethics sounding board

Strategy development

Corporate governance

70.4%

71.1%

48.8%

43.6%

29.9%

32.2%

25.9%

20.9%

40.0%

37.3%

40.3%

37.8%

3.7%

8.0%

11.2%

19.1%

29.9%

30.0%

0% 20% 40% 60% 80% 100%

Managing compliance

Controlling legal spend

Availability & responsiveness

Managing legal risk

Advising company leaders

Supporting businessobjectives

Ranked below top 3 Ranked 2 or 3 Ranked #1



Law Department Workforce – Next 12 Months

Within the next 12 months do you plan to increase or decrease your Law Department

workforce?

TREND: Increase or decrease in-house lawyer workforce in the next 12 months

3.9%

5.7%

7.5%

8.4%

76.5%

67.4%

76.0%

51.6%

17.0%

23.5%

12.6%

37.5%

0% 20% 40% 60% 80% 100%

Support staff

Paralegals

Contract lawyers

In-house lawyers

Not sure Decrease No change Increase

41.4%

38.1% 37.7%

42.0% 42.6%

37.9% 37.2% 37.5%

9.2%5.7%

7.4%5.4%

11.5%

6.0%

8.5% 8.4%

0%

10%

20%

30%

40%

50%

2010 2011 2012 2013 2014 2015 2016 2017

Increase Decrease

Trend data compiled from 2010 - 2017 Chief Legal Officer Surveys.

4.5 times as many

departments plan

increases to

in-house lawyer

staff, as plan

decreases in the

next 12 months.

OUTLOOK 2018



Reasons for In-House Hiring

Asked of the 37.5% of departments that plan to add in-house lawyers in the next 12 months:

If you plan to hire one or more in-house lawyer in the next 12 months, what are the

primary reasons? (Check all that apply.)

2.9%

14.5%

14.5%

29.0%

36.2%

48.6%

68.1%

0% 20% 40% 60% 80%

To take advantage of our superiorinstitutional knowledge

To handle new responsibilities of thedepartment

To expand our workforcegeographically

To handle a new area of legal expertise

To save money on outside counsel

To fill open position/s

To cover increased overall workload

OTHER (representative responses)

Succession planning

To support a growing line of business

FOLLOW-UP QUESTION…

OUTLOOK 2018



Law Department Operations Managers Do you have an administrator or other business manager who manages law

department operations?

BY DEPARTMENT SIZE: Department has a Law Department Administrator

26.8%

10.3%59.3%

3.7%

Yes, full-time

Yes, part-time

No

No, but we plan to in the next 12 months

Yes

Full-Time Yes

Part-Time No Plan to

1 lawyer 0.0% 10.0% 90.0% 0.0%

2-5 lawyers 9.1% 5.5% 81.8% 3.6%

6-10 lawyers 9.8% 4.9% 80.5% 4.9%

11-50 lawyers 33.3% 13.6% 49.4% 3.7%

51-100 lawyers 55.0% 25.0% 20.0% 0.0%

100+ lawyers 70.6% 5.9% 11.8% 11.8%



Law Department Operations Managers – Background

Where did your law department administrator / business manager come from?

What is your law department administrator's educational background?

9.2%

11.8%

29.0%

50.0%

0% 10% 20% 30% 40% 50% 60%

A law firm

Another law department

Within the company / organization (but notfrom the law department)

Within the law department

2.3%

5.8%

8.1%

18.6%

18.6%

22.1%

57.0%

0% 10% 20% 30% 40% 50% 60%

CPA

Less than a Bachelor's degree

Other graduate degree

Paralegal certification or training

MBA

JD

Bachelor's degree



Law Department Operations Managers – Time Allocation

Please estimate the percentage of time your department administrator / business

manager spends on each of the following functions.


Practicing law

Records management

Outside counsel relationship management

Initiatives to drive down costs, increase efficiency and client satisfaction

Strategy and planning

Paralegal responsibilities

Special projects

24.3%

20.1%

16.9%

15.1%

11.7%

11.9%

0%

100%

Other

People management

Technology management

Outside Counsel spend tracking and analysis

Financial management

Day-to-day operations

Legend, top to bottom, corresponds to percentages top to bottom



Law Department Management – Efficiency

In the last 12 months, have you done any of the following to increase your law

department’s efficiency in its delivery of legal services? (Check all that apply.)

6.1%

9.5%

19.1%

20.2%

24.1%

27.9%

38.6%

44.7%

44.7%

45.0%

57.6%

0% 10% 20% 30% 40% 50% 60%

None

Hired a Law Department Operations Manager

Outsourcing to non-law-firm vendors

Project staffing with contract / temporary lawyers

Project management methods

Knowledge management efforts

Collection and analysis of management metrics

Redesign workflow processes

Internal restructuring / reorganization of resources

Greater use of paralegals and otherparaprofessionals

Greater use of technology tools

Efficiency tactics



Efficiency Tactics – By Department Size

In the last 12 months, have you done any of the following to increase your law

department’s efficiency in its delivery of legal services? (Check all that apply.)

1 lawyer 2-10

lawyers 11-50

lawyers 51 lawyers

or more

Greater use of technology tools 55.0% 50.5% 62.0% 81.1%

Greater use of paralegals / paraprofessionals 40.0% 48.4% 43.0% 37.8%

Restructure / reorganize internal resources 20.0% 35.8% 50.6% 67.6%

Redesign workflow processes 40.0% 36.8% 50.6% 46.0%

Collection and analysis of management metrics 25.0% 30.5% 46.8% 56.8%

Knowledge management efforts 30.0% 19.0% 24.1% 46.0%

Project management methods 15.0% 16.8% 31.7% 27.0%

Project staffing with contract / temporary lawyers 20.0% 14.7% 22.8% 27.0%

Outsource to non-law-firm vendors 10.0% 14.7% 16.5% 37.8%

Hire a Law Department Operations Manager 0.00% 0.00% 12.7% 18.9%



Efficiency Tactics – Resulting in Significant Improvement

For each of the initiatives you’ve undertaken to improve efficiency in the last 12

months, has it resulted in a significant improvement in efficiency of legal service

delivery?

7.0%

9.0%

6.7%

14.0%

54.9%

50.0%

46.8%

48.2%

34.7%

37.5%

33.3%

14.0%

25.6%

26.5%

38.0%

41.0%

48.4%

50.0%

58.7%

62.5%

63.2%

72.0%

72.7%

73.5%

0% 20% 40% 60% 80% 100%

Knowledge management efforts

Collection and analysis of managementmetrics

Project management methods

Redesign workflow processes

Greater use of technology tools

Hired a Law Department OperationsManager

Internal restructuring / reorganizationof resources

Project staffing with contract /temporary lawyers

Greater use of paralegals and otherparaprofessionals

Outsourcing to non-law-firm vendors

No Too soon to tell Yes



Efficiency Tactics – Comparison of Use and Results

This chart combines findings from the two prior questions. Each bar shows the percentage

of law departments using that tactic. Data points on the line show the percentage of those

departments using each tactic that report it has delivered a significant improvement in

performance.

27.9% 38.6% 24.1% 44.7% 57.6% 9.5% 44.7% 20.2% 45.0% 19.1%

38.0%41.0%

48.4% 50.0%

58.7%62.5% 63.2%

72.0% 72.7% 73.5%

Knowledgemanagement

Managementmetrics

Projectmanagement

Redesignworkflow

processes

Technologytools

HiredOperationsManager

Restructure/reorganizeresources

Contract /temporarylawyers

Greater useparalegals /

para-professionals

Outsourcingto

non-law-firmvendors

�� % using tactic � Of those using tactic, % experiencing significant improvement in efficiency



Law Department Management – Cost Control

In the last 12 months, have you done any of the following to control law department

costs? (Check all that apply.)

2.8%

9.5%

11.4%

12.6%

20.1%

26.8%

30.3%

33.5%

33.5%

35.8%

39.8%

50.8%

50.8%

58.3%

63.8%

0% 10% 20% 30% 40% 50% 60% 70%

None

Reduced in-house non-lawyer staff

Instituted a law firm convergence program

Reduced in-house lawyer staff

Outsourced to non-law-firm vendors

Used contract or temporary lawyers

Shifted in-house work from lawyers to paralegalsor other paraprofessionals

Shifted law firm work to lower-priced firms

Modified work done to match legal risk levels

Reduced total amount of work sent to outsidecounsel

Shifted law firm work to in-house lawyer staff

Used alternative or fixed fee arrangements

Required budgets from outside counsel

Improved efficiency of internal procedures

Received price reductions from outside counsel

Cost control tactics



Cost Control Tactics – By Department Size

In the last 12 months, have you done any of the following to control law department costs? (Check all that apply.)

1 lawyer 2-10

lawyers 11-50

lawyers 51 lawyers

or more

Received price reductions from outside counsel 40.0% 60.4% 69.6% 78.4%

Improved efficiency of internal procedures 40.0% 55.2% 67.1% 67.6%

Required budgets from outside counsel 30.0% 52.1% 55.7% 56.8%

Used alternative or fixed fee arrangements 25.0% 40.6% 65.8% 70.3%

Shifted law firm work to in-house lawyers 20.0% 37.5% 40.5% 56.8%

Reduced total work sent to outside counsel 35.0% 34.4% 38.0% 46.0%

Modified work done to match legal risk levels 25.0% 28.1% 43.0% 37.8%

Shifted law firm work to lower-priced firms 15.0% 36.5% 36.7% 32.4%

Shifted in-house work to paralegals 15.0% 31.3% 31.7% 35.1%

Used contract or temporary lawyers 30.0% 15.6% 32.9% 46.0%

Outsourced to non-law-firm vendors 15.0% 12.5% 21.5% 35.1%

Reduced in-house lawyer staff 5.0% 11.5% 16.5% 16.2%

Instituted a law firm convergence program 10.0% 4.2% 17.7% 18.9%

Reduced in-house non-lawyer staff 5.0% 8.3% 10.1% 18.9%



Cost Control Tactics – Resulting in Significant Improvement

For each of the initiatives you’ve undertaken to control costs in the last 12 months, has it resulted in a significant improvement cost control?

8.1%

20.5%

25.0%

12.9%

8.7%

13.1%

49.3%

30.7%

41.4%

36.9%

13.2%

31.9%

22.6%

21.7%

23.3%

15.0%

17.2%

20.2%

13.4%

9.8%

42.6%

48.8%

55.2%

59.5%

61.8%

63.9%

64.5%

69.6%

70.5%

71.9%

78.8%

79.8%

82.9%

84.3%

0% 20% 40% 60% 80% 100%

Improved efficiency of internal procedures

Required budgets from outside counsel

Instituted a law firm convergence program

Modified work done to match legal risk levels

Used contract or temporary lawyers

Shifted in-house work from lawyers to paralegalsor other paraprofessionals

Reduced in-house lawyer staff

Reduced in-house non-lawyer staff

Used alternative or fixed fee arrangements

Received price reductions from outside counsel

Shifted law firm work to in-house lawyer staff

Reduced total amount of work sent to outsidecounsel

Shifted law firm work to lower-priced firms

Outsourced to non-law firm vendors




Cost Control Tactics – Comparison of Use and Results




performance.

58% 51% 11% 34% 27% 30% 13% 10% 51% 64% 40% 36% 34% 20%

43%

49%

55%60%

62%64% 65%

70% 71% 72%

79% 80%83% 84%

Improvedinternal

efficiency

Requireoutsidecounselbudgets

Law firmconver-gence

program

Modifywork

to matchrisk level

Contractor templawyers

Shift workfrom

inhouselawyers

toparalegals

Reduceinhouselawyerstaff

Reduceinhouse

non-lawyerstaff

Alt. orfixedfees

Pricecutsfrom

outsidecounsel

Shift workfrom

law firmsto inhouse

lawyers

Reducework sent

tooutsidecounsel

Shift lawfirm workto lowerpricedfirms

Outsourceto

non-lawfirm

vendors

�� % using tactic � Of those using tactic, % experiencing significant improvement in cost control



Outsourcing What types of work have you outsourced to non-law-firm vendors in the last 12 months that you used to give to law firms? (Check all that apply.)

What is the approximate total dollar value of the work shifted from law firms to non-

law-firm vendors in the last 12 months?

Minimum 1st Quartile Median 3rd Quartile Maximum Average Total

2017 $2,000 $65,000 $200,000 $500,000 $5,000,000 $496,377 $38,221,000

77 law departments, constituting 71% of those who reported shifting work away from law firms, provided the dollar value of that work. Three data points were omitted as impossible to interpret.

58.3%

6.2%

7.7%

8.9%

10.8%

21.2%

25.1%

0% 10% 20% 30% 40% 50% 60%

None

Legal research

Patent / IP work

Contract management

Due diligence

Document review

Litigation discovery (including e-discovery)


42% of law departments said they

had shifted at least one type of work

to non-firm vendors in the last year.

58% had not.



Data Analytics – Internal Data Collection

How do you collect data on your law department's outside counsel spending? (Check all that apply.)

BY LAW DEPARTMENT SIZE

6.2%

37.8%

48.6%

57.7%

0% 10% 20% 30% 40% 50% 60%

Other

Excel or other spreadsheets

Accounts payable reports

Matter management software

1 lawyer 2-10

lawyers 11-50

lawyers 51 lawyers

or more

Matter management software 21.1% 37.2% 74.1% 80.6%

Accounts payable reports 63.2% 56.4% 42.0% 47.2%

Excel or other spreadsheets 52.6% 48.9% 32.1% 19.4%



Data Analytics – Internal Analysis of Outside Spend Data

How effectively does your law department analyze and apply the data available to you on outside counsel spending?

1.3%2.1%

4.6%

8.3%9.6%

19.6%

17.5%

15.0% 14.6%

5.0%

2.5%

0%

5%

10%

15%

20%

25%

0 1 2 3 4 5 6 7 8 9 10

0 = Not effective 10 = Highly effective

Effectiveness of law department’s data analysis

Median: 6



Data Analytics – Outside Spend Analysis Provided by Law Firms Considering the ten law firms that receive the largest proportion of your outside

counsel spend, in the last 12 months how many of those firms have provided you

with an analysis of spending data that was useful to your law department?

In your department's outside counsel evaluation criteria, how much weight do you assign to a law firm's ability to provide useful data analytics?

68.2%

10.7%7.0%

5.0%1.7% 2.9% 1.2% 0.4% 0.8% 0.0%

2.1%

0%

20%

40%

60%

80%

0 1 2 3 4 5 6 7 8 9 10

28.5%

11.4%

16.2%13.6%

5.7%

10.1%

3.5%6.1%

3.5%0.9% 0.4%

0%

10%

20%

30%

40%

0 1 2 3 4 5 6 7 8 9 10

Number of your top ten law firms that provide useful data analysis

0 = None of our top ten firms 10 = All of our top ten firms

Importance of law firms' ability to provide useful data analysis as evaluation criterion

0 = Not at all important 10 = Highly important

Median: 0

Median: 2



Data Security Considering the ten law firms that receive the largest proportion of your outside counsel spend, in the last 12 months how many of those firms have you asked to comply with specific data security measures?

BY DEPARTMENT SIZE: Firms asked to comply with data security measures

61.7%

2.9%5.0% 4.6%

1.7% 1.3% 0.8% 0.8% 0.4% 0.0%

20.8%

0%

20%

40%

60%

80%

0 1 2 3 4 5 6 7 8 9 10

Number of your top ten law firms asked to comply with data security measures

0 = None of our top ten firms 10 = All of our top ten firms

MEDIAN AVERAGE

1 lawyer 0 0.3

2-5 lawyers 0 1.6

6-10 lawyers 0 1.4

11-50 lawyers 0 3.0

51-100 lawyers 0 4.3

100+ lawyers 10 7.5

All departments 0 2.6



Law Department Budget Allocation 2017

Please estimate the percentage of your total 2017 Law Department budget (internal and external legal spend) that each of the following components comprise. (Responses must equal 100%.)

Definitions:

Internal expenditures: e.g., Department compensation and benefits; contract lawyers, facilities, technology

and other operating costs

Outside Counsel: Total expenditures to outside law firms

Non-Law-Firm Vendor: Expenditures for legal matters, e.g., e-discovery, document review, due diligence,

legal research, etc.

TREND – Law Department budget allocation

45.6%

49.3%

5.2%

Internal expenditures

Outside Counsel

Non-law firm vendors

Trend data compiled from the 2013 - 2017 Chief Legal Officer Surveys.

Internal Outside Counsel

Non-firm vendor

2013 44.4% 49.6% 6.0%

2014 42.6% 50.3% 7.1%

2015 41.4% 52.4% 6.1%

2016 44.4% 49.4% 6.2%

2017 45.6% 49.3% 5.2%



Law Department Budget Changes: 2016 to 2017 Please estimate the percentage increase or decrease in your Law Department budget from 2016 to 2017.

6.6%

10.8%

8.5%

12.2%

7.0%

21.3%

7.5%

17.8%

10.3%

19.0%

68.0%

26.8%

22.0%

28.4%

13.0%

13.2%

41.6%

6.6%

8.9%

8.9%

9.5%

4.0%

10.3%

5.6%

0% 20% 40% 60% 80% 100%

Total law department budget

Vendor budget

Outside counsel budget

Internal budget

�� Down 1% to 5% �� No change �� Up 1% to 5%

�� Down 6% to 10% �� Up 6% to 10%

�� Down over 10% � Up over 10%

Decrease Increase



Law Department Budget Changes 2016 to 2017: By Department Size

IN-HOUSE BUDGET

OUTSIDE COUNSEL BUDGET

15.7%

28.0%

36.4%

23.5%

28.1%

16.0%

18.2%

76.5%

56.2%

56.0%

45.5%

0% 20% 40% 60% 80% 100%

1 lawyer

2-10 lawyers

11-50 lawyers

51+ lawyers

Decrease No change Increase

11.8%

34.8%

48.6%

54.5%

29.4%

32.6%

20.3%

24.2%

58.8%

32.6%

31.1%

21.2%

0% 20% 40% 60% 80% 100%

1 lawyer

2-10 lawyers

11-50 lawyers

51+ lawyers




Law Department Budget Changes 2016 to 2017: By Department Size

VENDOR BUDGET

TOTAL BUDGET

10.5%

14.9%

16.7%

58.8%

76.7%

61.2%

63.3%

41.2%

12.8%

23.9%

20.0%

0% 20% 40% 60% 80% 100%

1 lawyer

2-10 lawyers

11-50 lawyers

51+ lawyers


11.8%

28.9%

41.7%

59.4%

11.8%

25.6%

12.5%

18.8%

76.5%

45.6%

45.8%

21.9%

0% 20% 40% 60% 80% 100%

1 lawyer

2-10 lawyers

11-50 lawyers

51+ lawyers




TREND: Change in Law Department Budget

Charts show what percentage of departments increased their budget, and what percentage

decreased their budget in each category. The balance of departments, to total 100%, made

no change in the budget category and is omitted in these charts.

IN-HOUSE BUDGET

OUTSIDE COUNSEL BUDGET

56.2%

46.1%

56.6%54.4%

50.9% 50.1%

56.1%

17.1%

27.6%

17.3%

24.8% 25.2%27.4%

22.0%

0%

10%

20%

30%

40%

50%

60%

70%

2011 2012 2013 2014 2015 2016 2017

Increase Decrease

45.8%

34.2%

28.9%26.1%

31.6% 31.6% 32.4%25.4%

39.0%

47.0% 48.0%

43.5%40.9% 40.8%

0%

10%

20%

30%

40%

50%

60%

70%

2011 2012 2013 2014 2015 2016 2017

Increase Decrease


More than twice as

many departments

increased in-house

budgets this year,

as those that made

cuts – continuing a

multi-year trend.

In 2017 more law

departments

decreased outside

counsel spending

than increased

that part of their

budget – but the

differential has

been shrinking

since 2015.



TREND: Change in Law Department Budget Charts show what percentage of departments increased their budget, and what percentage

decreased their budget in each category. The balance of departments, to total 100%, made

no change in the budget category and is omitted in these charts.

VENDOR BUDGET

TOTAL BUDGET

21.9% 20.9%

15.5% 16.3% 16.3%20.0%

12.8% 13.9% 14.8% 15.6% 15.4%12.0%

0%

10%

20%

30%

40%

50%

60%

70%

2012 2013 2014 2015 2016 2017

Increase Decrease

55.8%

46.3%

36.8%

41.7% 41.8%

45.9% 44.5%

25.9%

34.1%36.9%

40.4% 41.6%

36.8% 36.4%

0%

10%

20%

30%

40%

50%

60%

70%

2011 2012 2013 2014 2015 2016 2017

Increase Decrease


This year, for the

first time since

2013, significantly

more law

departments made

increases in their

vendor budgets,

compared to those

making decreases.

For the second

year in a row, more

departments report

an increase in their

overall budget,

compared to those

reporting

decreases.



Outside Counsel Spend – Planned for 2018

In your fiscal year 2018 budget, have you/will you increase or decrease your overall spend on outside counsel?

5.5% 8.5% 18.5% 28.0% 22.1% 9.6% 7.8%

0% 20% 40% 60% 80% 100%

Outside Counsel spend 2018

�� Decrease 1% to 5% �� No change �� Increase 1% to 5%

�� Decrease 6% to 10% �� Increase 6% to 10%

�� Decrease over 10% � Increase over 10%

32.5% plan to decrease 39.5% plan to increase

OUTLOOK 2018



Outside Counsel Spend – Planned for 2018

BY DEPARTMENT SIZE: Planned change in outside counsel spend in 2018

BY ORGANIZATION REVENUE: Planned change in outside counsel spend in 2018

5.0%

25.0%

38.5%

52.8%

25.0%

31.3%

25.6%

25.0%

70.0%

43.8%

35.9%

22.2%

0% 20% 40% 60% 80% 100%

1 lawyer

2-10 lawyers

11-50 lawyers

51+ lawyers


20.4%

23.6%

38.6%

50.0%

76.5%

26.5%

31.5%

27.3%

23.1%

11.8%

53.1%

44.9%

34.1%

26.9%

11.8%

0% 20% 40% 60% 80% 100%

Under $1B

$1B to $5B

$5.1B to 10B

$10.1 B to $20B

Over $20B


OUTLOOK 2018



TREND: Plan to increase / decrease Outside Counsel spend in the following year This chart shows what percentage of departments planned to increase their outside counsel

spend in the next year, and what percentage planned to decrease outside counsel spend.

The balance of departments, to total 100%, planned no change and is omitted in this chart.

24.4%

15.8%

19.6%

16.3%

13.9%

17.6%

7.9%

12.6% 12.2%

14.5%13.8%

15.0%14.2%

19.8%

21.8%

39.5%

19.1%17.3%

19.6% 19.8%

17.6%

15.9%

26.2%

40.4%

29.1%

34.1%

28.6%

29.1%

26.2%

39.9%

35.2%

32.5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Increase Decrease


For the first time

since 2007,

more law

departments

plan to increase

outside counsel

spend in the

coming year,

compared to

those planning

to decrease

outside counsel

spend.



Reallocation of Outside Counsel Spend

Asked of the 32.5% of departments that plan to decrease outside counsel spend in 2018:

If you plan to decrease your spend on outside counsel in the next 12 months, how

will you cover the work? (Check all that apply.)

6.8%

19.3%

27.3%

45.5%

45.5%

72.7%

0% 20% 40% 60% 80%

Contract lawyers

Non-law-firm vendors

In-house non-lawyer staff

Lower-cost law firms

Less work overall

In-house lawyer staff

Less work overall – "due to changing business priorities, preventative law efforts, higher risk tolerance, etc." Non-law-firm vendors – “e.g., for e-discovery, document review, due diligence, legal research, etc.”


Use of technology


OUTLOOK 2018



Discounts on Outside Counsel Rates If you received discounts on standard rates from outside counsel in the last 12

months, what was the average price reduction received?

TREND: Average Price Reductions from Outside Counsel by year

12.2%

59.7%

21.4%

6.6%

0%

10%

20%

30%

40%

50%

60%

70%

1% to 5% 6% to 10% 11% to 15% Over 15%

7%

61%

24%

8%8%

58%

24%

10%12%

60%

21%

7%

0%

10%

20%

30%

40%

50%

60%

70%

1% to 5% 6% to 10% 11% to 15% Over 15%

2015

2016

2017

Median: 10%



Outside Counsel Rates – Obstacles to Greater Discounts What obstacles, if any, do you face in getting greater discounts from outside counsel? (Check all that apply.)


11.5%

9.8%

12.3%

13.1%

17.2%

30.3%

50.8%

54.9%

0% 10% 20% 30% 40% 50% 60%

None

Too hard to enforce

Not enough internal pressure to pursuegreater discounts

Not fair to push too hard

Not enough time/resources to do more

Don't want to damage goodrelationships

Law firms resist

Not enough buying power to negotiatemore effectively

1 lawyer 2-10

lawyers 11-50

lawyers 51 lawyers

or more

Not enough buying power to negotiate effectively 52.6% 61.1% 61.5% 33.3%

Law firms resist 31.6% 51.6% 50.0% 66.7%

Don't want to damage good relationships 47.4% 28.4% 28.2% 33.3%

Not enough time/resources to do more 21.1% 20.0% 12.8% 19.4%

Not fair to push too hard 10.5% 12.6% 15.4% 11.1%

Not enough internal pressure to pursue 26.3% 11.6% 6.4% 13.9%

Too hard to enforce 5.3% 8.4% 15.4% 2.8%

None 10.5% 8.4% 11.5% 13.9%



Outside Counsel Rates – Negotiating Power Approximately what percentage of your outside counsel fees last year was for work

that could have been done by many different law firms (i.e., work where you had

significant negotiating power over fees)?

Approximately what percentage of your outside counsel fees last year was for work

that was not price sensitive (i.e., work so important that costs were not an issue)?

0.4%2.1%

5.0%7.0%

13.2%10.7%

12.8%

48.8%

0%

10%

20%

30%

40%

50%

0% 1%-5% 6%-10% 11%-20% 21%-30% 31%-40% 41%-50% Over 50%

11.6%

7.0%

14.1%16.1%

17.4%

11.2% 10.7%12.0%

0%

10%

20%

30%

40%

50%

0% 1%-5% 6%-10% 11%-20% 21%-30% 31%-40% 41%-50% Over 50%

Median: 21% - 30%

Median: 41% - 50%



Outside Counsel Management Tactics

Does your law department routinely do any of the following to manage outside counsel? (Check all that apply.)


1 lawyer 2-10

lawyers 11-50

lawyers 51 lawyers

or more

Require budgets for major matters 68.4% 77.2% 85.9% 89.2%

Provide guidelines for billing/expenses/staffing etc. 42.1% 64.1% 96.2% 94.6%

Negotiate fixed, capped, or alternative fees 42.1% 64.1% 73.1% 78.4%

Enforce guidelines for billing/expenses/staffing etc. 31.6% 52.2% 62.8% 83.8%

Perform data analysis on outside spend 10.5% 33.7% 39.7% 54.1%

Provide post-matter feedback 36.8% 38.0% 37.2% 37.8%

Require defined level of technology proficiency 5.3% 6.5% 7.7% 18.9%

9.2%

36.7%

37.5%

59.6%

66.7%

78.8%

80.8%

0% 20% 40% 60% 80% 100%

Require defined level of technologyproficiency

Provide post-matter feedback

Perform data analysis of your outside spend

Enforce guidelines for billing, expenses,matter staffing, matter management

Negotiate fixed, capped or alternative fees

Provide guidelines for billing, expenses,matter staffing, matter management

Require budgets for major matters

Outside Counsel Management tactics



Outside Counsel Management Tactics – Significant Improvement

For each of the outside counsel management techniques your law department uses,

has it resulted in a significant improvement in outside counsel performance?

31.8%

17.8%

18.4%

22.3%

24.9%

13.3%

15.5%

27.3%

27.8%

26.4%

18.1%

12.7%

12.0%

9.2%

40.9%

54.4%

55.2%

59.6%

62.4%

74.7%

75.4%

0% 20% 40% 60% 80% 100%

Require defined level of technologyproficiency

Perform data analysis of your outsidespend

Provide post-matter feedback

Require budgets for major matters

Provide guidelines for billing,expenses, matter staffing, matter

management

Negotiate fixed, capped or alternativefees

Enforce guidelines for billing,expenses, matter staffing, matter

management




Outside Counsel Management Tactics – Comparison of Use and Results




performance.

9.2% 37.5% 36.7% 80.8% 78.8% 66.7% 59.6%

40.9%

54.4% 55.2%59.6%

62.4%

74.7% 75.4%

Requiretechnologyproficiency

Performdata analysis

of outside spend

Providepost-matterfeedback

Requirebudgets for

major matters

Provideguidelines for

billing, expensesstaffing, mattermanagement

Negotiatefixed, capped oralternative fees

Enforceguidelines for

billing, expensesstaffing, mattermanagement

�� % using tactic � Of those using tactic, % experiencing significant improvement in performance



Law Firm Service Improvements

Of the following service improvements and innovations, please select up to three that

you would most like to see from your outside counsel. (Select up to three.)

12.0%

15.8%

20.1%

25.2%

28.6%

29.9%

31.2%

38.5%

46.2%

51.3%

0% 10% 20% 30% 40% 50% 60%

Technology efficiencies

Preventative law strategies

Improved communication and responsiveness

Greater effort to understand our business

More efficient project staffing

More efficient project management

Modification of work to match our legal risk

Non-hourly based pricing structures

Improved budget forecasting

Greater cost reduction



Reasons for Switching Law Firms In the last 12 months, have you shifted a portfolio of work worth $50,000 or more from

one law firm to another for any of the following reasons? (Check all that apply.)

0.0%

0.0%

6.9%

9.0%

20.0%

22.1%

27.6%

28.3%

42.1%

44.8%

48.3%

0% 10% 20% 30% 40% 50% 60%

Technology sophistication

Data security concerns

Predictable fees

Inability to handle our geographic scope

Size or depth of firm resources

Our key partner(s) changed firms

Conflicts

Managing matter efficiency

Legal expertise

Lower fees

Client service

Reasons for switching law firms


Failure to provide practical, actionable, effective advice

Lack of commitment to diversity and inclusion

Consolidation of work to garner leverage and efficiencies



Inside / Outside Relationship – Law Firm Change Efforts

In your opinion, in the current legal market, how serious are law firms about changing

their legal service delivery model to provide greater value to clients (as opposed to

simply cutting costs)?

TREND: Law Firms’ Seriousness About Changing Service Delivery Model

5.6%

11.5%

23.9%

17.1%

12.4%

20.1%

5.1%

3.4%

0.9%0.0% 0.0%

0%

5%

10%

15%

20%

25%

30%

0 1 2 3 4 5 6 7 8 9 10

0 = Not at all serious 10 = Doing everything they can


BY YEAR

Median Average

2013 3 3.6

2014 3 3.4

2015 3 3.4

2016 3 3.4

2017 3 3.2

BY DEPARTMENT SIZE

Median Average

1 lawyer 2.5 2.8

2-5 lawyers 3 3.3

6-10 lawyers 3 3.0

11-50 lawyers 3 3.3

50-100 lawyers 3 3.3

100+ lawyers 3 3.4

Median: 3



Inside / Outside Relationship – Pressure on Law Firms

In your opinion, in the current legal market, how much pressure are corporations

putting on law firms to change the value proposition in legal service delivery (as

opposed to simply cutting costs)?

TREND: Level of Pressure on Law Firms to Change Value Proposition

0.9%1.7%

9.8%

14.9%

6.0%

21.7%

14.0% 14.0%

11.9%

3.8%

1.3%

0%

5%

10%

15%

20%

25%

0 1 2 3 4 5 6 7 8 9 10

BY YEAR

Median Average

2013 5 5.4

2014 5 5.3

2015 6 5.6

2016 6 5.5

2017 5 5.2

Trend data compiled from 2013 – 2017 Chief Legal Officer Surveys.

BY DEPARTMENT SIZE

Median Average

1 lawyer 5 4.7

2-5 lawyers 5 4.8

6-10 lawyers 5 5.3

11-50 lawyers 5 5.4

51-100 lawyers 6 5.9

100+ lawyers 5 5.7

0 = No pressure 10 = Intense pressure

Median: 5



Law Department Performance – Initiatives Requiring Greater Resources

What is the most important internal task, project or initiative that is going undone

because your law department doesn't have the resources (i.e. funding, people, time,

or corporate support) to address it? (Open-ended question)

We categorized all free-text responses for the following chart.

5.0%

5.0%

1.1%

1.7%

1.7%

1.7%

3.9%

3.9%

3.9%

5.6%

6.1%

6.7%

7.2%

10.6%

11.7%

12.2%

12.2%

0% 5% 10% 15%

None

Other

Intellectual property protection

Departmental restructuring

Knowledge management

Shifting more work in-house

Management metrics

Spend management

Hiring lawyers

Technology improvement

Information governance

Strategy and planning

Compliance

Risk management

Operational efficiency

People development

Contract management




What is the most important internal task, project or initiative that is going undone

because your law department doesn't have the resources (i.e. funding, people, time,

or corporate support) to address it? (Open-ended question)

We categorized free-text responses and have included a selection of comments from the

top categories presented in order of most-frequently cited topics.

Contract Management

Contract workflow and management technology

Partnering with individual departments to develop contract templates

Implementing a contract database

Technology upgrade for contract retention and management

People Development

More proactive education and training of leaders and staff

Education of business people on legal issues

Management and training handbooks

Training, promotion, advancement, succession

Operational Efficiency

Simplification and standardization of agreements and processes to increase efficiency

Internal operations audits

Process automation and creating more self-service tools using workflows and AI

Policy development and implementation




Risk Management

Integration of corporate-wide risk management programs

Proactive training on legal risk topics at a business unit level

Thinking strategically about longer-term risks

Compliance

Compliance audits

Long-range planning for compliance improvements

Proactive compliance training and monitoring

Strategy and Planning

Creation of a strategic plan for the legal department for the next five years

Longer-term view of industry changes and impact on company strategy

Proactive research and strategy re changing legislative landscape

Information Governance

Information governance (universe includes data privacy, data security, records management)

Records management and retention program

Privacy concerns




Technology improvement

Technology improvements: Matter management, e-billing, IS security, contractual ecosystem

Automation of e-discovery

Faster acceleration and breadth of AI, robotics and predictive models

Hiring

Workload is increasing and we would like to make some hires but do not have the funding.

Providing expertise and counseling in a very specific area of law to increase value for the company

Recruitment of under-represented minorities

Spend Management

Tracking legal spend across the company

Insist on budgeting from outside counsel and monitor compliance

Completion of transition to 100% non-hourly based billing from law firms

Management Metrics

Development of metrics to test performance of legal department

Scorecard/review of law firm performance on a regular basis

Implementing better metrics around law firm billing and spend



BONUS QUESTION – Understanding Law Department Challenges

On average, how would you characterize each of the following stakeholders'

knowledge and understanding of the challenges of leading a law department?

Rate 0 to 10: 0 = No understanding; 5 = Intermediate understanding; 10 = Sophisticated understanding

0%

5%

10%

15%

20%

25%

0 1 2 3 4 5 6 7 8 9 10

NON-LAW-FIRM VENDORS

0 1 2 3 4 5 6 7 8 9 10

ORGANIZATION EXECUTIVES

0 1 2 3 4 5 6 7 8 9 10

OUTSIDE COUNSEL

NON-LAW-FIRM VENDORS ORGANIZATION EXECUTIVES OUTSIDE COUNSEL

Median Average Median Average Median Average

5 4.2 6 5.7 6 6.1

2017

Chief Legal Officer Survey

Participant Demographics

2017 CLO SURVEY – PARTICIPANT DEMOGRAPHICS


Law Department Demographics – Lawyers

How many in-house attorneys are in your department (in all locations)?

Minimum 1st Quartile Median 3rd Quartile Maximum Average

Lawyers 1 5 11 26 1,400 39

What percentage of the lawyers in your department are based outside the US?

7.3%

8.6%

34.6%

17.5%

23.5%

8.6%

0% 10% 20% 30% 40%

100+ lawyers

51-100 lawyers

11 - 50 lawyers

6 - 10 lawyers

2 - 5 lawyers

1 lawyer

13.7%

12.5%

4.7%

3.4%

4.3%

61.4%

0% 10% 20% 30% 40% 50% 60% 70%

Over 50%

26% - 50%

16% - 25%

11% - 15%

6% - 10%

0% - 5%



Law Department Demographics – Organization Revenue

What are your organization’s annual revenues?


Revenue $8M $1B $3.3B $8B $150B $7.3B

SIZE / REVENUE CORRELATION:

7.4%

11.8%

19.7%

39.3%

21.8%

0% 10% 20% 30% 40%

Over $20B

$10.1B to $20B

$5.1B to $10B

$1B to $5B

Under $1B

32.0%

3.7%

8.9%

24.4%

50.0%

20.0%

29.0%

12.0%

41.2%

40.7%

55.6%

39.0%

6.0%

11.8%

29.6%

8.9%

5.6%

47.1%

25.9%

4.4%

0% 20% 40% 60% 80% 100%

Over $20B

$10.1B to $20B

$5.1B to $10B

$1B to $5B

Under $1B

1 lawyer 2-5 lawyers 6-10 lawyers 11-50 lawyers 51-100 lawyers 100+ lawyers



Law Department Demographics – Average Total Legal Spend

What is the average of your law department's total legal spend (inside and outside, including all legal costs borne by the department) over the last two years?


Spend $60,000 $3M $10M $25M $650M $25M

13.0%

9.9%

24.5%

18.5%

27.2%

7.1%

0% 10% 20% 30% 40%

Over $50M

$25.1M to $50M

$10.1M to $25M

$5.1M to $10M

$1.1M to $5M

Under $1M

Documents

2017 Chief Legal Officer Survey - Altman Weil · The same pattern holds true for planned outside counsel spending in 2018. While in aggregate 40% of departments say they plan increases