Bloomberg Law
March 30, 2015, 12:54 PM UTC

5 Things GCs Want From Outside Counsel

Katherine Magnuson

Illustration by Geralt (Pixabay)

Editor’s Note: This post is written by a senior vice president of Rubenstein, a strategic communications and reputation management firm that works with corporate law firm professionals and in-house counsel.

By Katherine Magnuson, Senior Vice President, Rubenstein Associates, Inc.

Did you know it might increase your business from general counsel if you stopped publishing client alerts and cut back on the number of legal ranking nominations you submit?

When developing new business from in-house corporate counsel, it is important to target some basic, common needs of many GCs. Outside counsel and their marketing professionals can get bogged down generating sophisticated marketing materials, hosting events and nominating their lawyers for awards. Sticking to a few simple criteria for a good working relationship with in-house lawyers will put you ahead of competitors.

Below are five key do’s and don’ts.

GCs do want budgets for every single matter. They do NOT want to pay to train law firm associates.

While the billable hour will never fully disappear, alternative fee arrangements are standard practice now. Corporate counsel often need or prefer legal risk sharing arrangements, budget caps, contingency fees, success-based fees or structures other than standard hourly billing, depending on the specific circumstances or matter.

“We don’t expect our law firms to work for free,” saysGeorge Whipple, Managing Director, Executive Compensation and Employment Law Practice Group, at Credit Suisse. “But for each matter, we need a budget and fair, predictive costs for legal services. We owe our bank a clear understanding of and explanation for the legal fees we authorize.”

Whipple continues: “In appropriate instances, I ask counsel to provide a list of all the specific team members on my matters and explain their roles, rates and how their time will be allocated. We are not in business to train junior lawyers.”

Create a financial model for general counsel, one that they can feel comfortable presenting to their boss and that clearly outlays fair fees for legal and business counsel. Investing in client matters will strengthen partnerships and help to drive successful outcomes. Only a senior legal team member has the experience to properly budget a matter, which should include a cushion for unexpected and miscellaneous costs that arise in any project. Of course these arrangements must remain entirely confidential.

GCs do want phone calls with tailored advice. They do NOT want broad subject client alerts that do not apply to their daily issues.

“I delete almost every law firm alert that comes into my email these days,” saysJulia Houston, SVP, US Legal at Equifax Inc., based in Atlanta. “Even if I had the time to read them, they are often just a detailed factual summary of legislation or a court decision. I need practical advice about how something impacts my business.”

Many GCs echo this sentiment. Most client alerts contain dated news with information already widely available, and competing firms often duplicate content. Your law firm’s advantage is lost in a sea of other data and information that GCs must sift through daily. Client newsletters may not be generating a return on the amount of time, marketing staff and resources it takes to publish them. Unless you can point to metrics and feedback that your alert is well-read by the right audience, its publication may be a waste of marketing resources.

A well-timed phone call to corporate counsel with prescient and actionable advice can make all the difference in your relationship and prevent unnecessary litigation or unnecessary fees in the future, saving your client’s money and corporate reputation. This approach may seem like a move to diminish your billings from the client, but it will more likely generate trust, good will and repeat business.

GCs do want to pay their outside counsel for compliance and litigation prevention. They do NOT want to be caught off guard by a legal issue that could negatively impact their business.

Compliance costs have risen dramatically over the past few decades, and most recently in the U.S., since the mortgage crisis. “This past year I spent approximately 65% of my working time on compliance rather than transactions and seeking new deal opportunities, and I am at a boutique entity,” says Lance Orchid, General Counsel for Taylor Frères Americas, an investment bank. Orchid explains: “I need to minimize our legal fees, so I appreciate manuals, guides and signposts to comply with all SEC regulations and banking laws. That helps me excel at my job.”

Partner with your client as though you were an internal compliance officer, member of the in-house legal team and senior management by predicting and planning for future issues and pitfalls. Ask yourself how your services can remove obstacles to the growth and development of the company’s business, reputation and revenues.

GCs do want the best legal counsel for their matter; they do NOT necessarily want the cheapest bidder.

Are you spending an extraordinary amount of (non-billable) time on legal list and rankings submissions or new client business proposals and fancy pitch books that are never read? Lawyering remains a people business, and relationships hinge on an attorney’s capabilities to deliver what the client needs.

Legal rankings can offer a point of reference, but Spencer Murphy, General Counsel at marine transportation company Canal Barge, says, “We will pay for the lawyers who best understand our business when we are faced with novel, or even for run-of-the-mill, legal issues. Our industry requires a certain amount of specialized knowledge for lawyers to provide truly effective counsel. It’s worth it to me to know that I have the most experienced and efficient lawyers on my side. At the end of the day it’s our company’s reputation on the line, and, inside Canal Barge, I am accountable for the performance of our outside lawyers.”

He adds, “I am less concerned about firms quoting markedly lower fees than their competitors than I am about finding lawyers who have a complete understanding of our company’s challenges, issues and economics. We’re focused on getting value, not just cost-savings.”

In legal beauty contests it’s a priority to put forth distinguishing factors and experience along with realistic fee assessments. In-house counsel need, above all, to have confidence in their counsel.

GC’s do need proven track records and referrals; they are NOT necessarily aware of industry accolades.

Murphy admits he’s rarely felt the need to check a lawyer’s Chambers ranking before retention. “I connect with outside counsel in a variety of ways, at networking, industry and CLE events, but a lawyer’s results, track record, industry knowledge and personal relationships and above all – success for clients - are the most important factors to me. Plus, I have to get along well enough to work together, and that’s a subjective, personal take that no ranking can capture.”

While marketing your practice is imperative in today’s competitive legal market, most GCs say they hire lawyers based on their reputations, records and recommendations. Do become the best at your area of the law, partner with clients to succeed together, and your accomplishments will market your practice and the firm to win premium engagements.

In summary, when appealing to general counsel for new business or to strengthen existing relationships:

  • Bill in a fashion appropriate to the client and matter


  • Inform clients about prevention and preparation as soon as you become aware of an issue in their business


  • Check the return on your investment in marketing initiatives and materials


  • Be the best at what you do and charge accordingly


  • Focus on building solid partnerships and referral relationships over the need to be included in every legal ranking

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