What In-House Counsel Want From Law Firm Partners

Editor’s Note: The author of this post is a legal industry analyst who founded Ari Kaplan Advisors, a company that advises lawyers on professional development.

By Ari Kaplan, Founder of Ari Kaplan Advisors

For the past seven years, I have been interviewing corporate counsel from Fortune 1000 companies annually to benchmark their perspectives about the impact of technology on the corporate law department, how in-house teams are streamlining operations, cost control strategies, enhancing efficiency, eDiscovery, cyber security, and other issues.

My research shows that the rise of talented administrative leaders and procurement professionals, as well as the interest in engaging both law firms and outside vendors to support most matters, is redefining the architecture of the modern legal department. Successful partners recognize that in order to thrive in this new era, they must master the art of budgeting, demonstrate value and efficiency, promote talent, and cultivate client relationships more fully than ever before. Here are a few ideas for giving your team a competitive advantage:

Begin With Budgeting Basics

Cost control has become a critical issue, but not simply to reduce expenses. In-house teams that adhere to a budget are able to highlight their ability to simultaneously produce excellent work while protecting the company’s bottom line, which is an essential formula for the company’s corporate leadership.

To help clients achieve this goal, discuss budgeting at the outset. This provides an instant level of transparency and adds predictability wherever possible. Although litigation is inherently uncertain, identify how your team can structure your approach to minimize the variability. In a crowded and competitive market, this initial gesture will distinguish you immediately.

If your prospective client uses an e-billing and matter management system, ask about historical costs and strategies. This technology contains a vast amount of data that can help gauge future activities based on past practice. Also, many in-house leaders expect creativity in tactics. As such, consider how you can use alternative fees and stratified staffing models that provide contract attorneys or litigation support members with substantive roles.

In addition, share billing and budgeting details with your entire team. This will instill a sense of early ownership so that each lawyer or support staff member, regardless of role or experience, understands the collective responsibility to produce the highest quality results in the most efficient manner possible. Many law firms are also using tools that help track time so that valuable hours are not missed and to evaluate performance.

These efforts appeal to cost-conscious clients and help firms justify the role of junior professionals, whose work can be the subject of write-offs. Savvy firms even highlight the work of their newer lawyers and include their names on memoranda or other documents. They also compliment their associates to clients in an effort to help build trust.

Focus on Efficiency and the Wind Tunnel Effect

A few years ago, I was in a cab headed from the airport to a morning meeting in the center of a major city. It was rush hour and traffic was moving slowly. Despite the obvious delays, I noticed a police officer standing on the highway’s median with a radar gun used to detect speeders. This seemed to be an extraordinary example of inefficiency.

Aware that some organizations have similar staffing issues, in-house counsel expect their law firms to incorporate proven project management principles that enable them to demonstrate status as well as success. Simply letting a client know a result, regardless of whether that result was ideal, can often dramatically impact an impression. Dynamic law firm partners recognize that while you may not be able to dictate the outcome, you can always control the nature of your communication.

Some firms issue a monthly newsletter-style report that demonstrates the hands-on involvement of their team members or highlights how they are leveraging technology to build efficiency. As the Suffolk/Flaherty Legal Tech Audit movement shows, it is critical for law firms to train their lawyers to be productive. After all, there is an entire ecosystem of mobile apps that permit instant transcription of dictated material, list making, and other tasks that enhance productivity. In addition, with the wide availability of do-it-yourself tools, clients want to know what they should be paying for and what they can manage internally.

Focus on Holistic Representation

As the trend of corporate law departments engaging both a market leading law firm and a well-respected outside vendor to join forces increases, partners must recognize that their clients want them to create an anti-silo atmosphere. Those who succeed most often display a holistic representation style. They demonstrate comfort collaborating with an array of organizations for the benefit of the company.

They also routinely assess the level of collaboration amongst the lawyers in their own firms. Start by conducting an anonymous poll to gauge the perceptions of collaboration within your organization. In my anecdotal research, I have not found a material number of lawyers in any organization rating collaboration within their firms as outstanding, yet it is essential to maximize efficiency.

Consider conducting an internal marketing campaign that emphasizes the capabilities of each lawyer or each group depending on the size of the firm. Greater education on skill sets can result in new ideas for client offerings, as well as ultimately produce a more inclusive organization. While it may be impractical, some firms even rotate associates to offer exposure to multiple practice areas as a means of setting a strong foundation, despite the obvious inefficiencies in doing so. And, while some geographically dispersed firms can feel collaboratively challenged, technology has flattened the landscape to permit seamless communication and information transfers to help overcome this perceived obstacle.

Align Your Culture

Beyond the work and the firm’s performance, the relationship with your client contact is paramount. Take every opportunity to foster interaction and build trust. Experienced partners find meaningful connections that offer organic follow-up possibilities. They might include collaborating with clients on industry, political, social, or charitable endeavors.

Try to identify what is important to those with whom you are working. For instance, some firms contribute to industry-related political action committees. Many spend time fundraising for charities with which their clients are connected. Others attend sporting events or local cultural activities. While there are instances when this type of participation is not appropriate, such as where your politics conflict or if it is prohibited by corporate policy, it is certainly something to be considered.

By combining transparency, technology, and talent to each engagement, law firm partners will reinvent their legal representation to offer corporate counsel recognition as well as results.