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Recent Trends in Legal Services New Business Competitions

Recent Trends in Legal Services New Business Competitions. Presentation by Ann Lee Gibson, Ph.D. By Invitation of LexisNexis Martindale-Hubbell At Simmons & Simmons London June 7, 2007. Recent Trends on the Client Side. ENHANCED PRODUCTIVITY. STRATEGIC PARTNERSHIP. Productivity Curve.

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Recent Trends in Legal Services New Business Competitions

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  1. Recent Trends in Legal Services New Business Competitions Presentation by Ann Lee Gibson, Ph.D.By Invitation of LexisNexis Martindale-Hubbell At Simmons & SimmonsLondonJune 7, 2007

  2. Recent Trends on the Client Side

  3. ENHANCED PRODUCTIVITY STRATEGIC PARTNERSHIP Productivity Curve RISK/REWARD SHARING VALUE-BASED BILLING PERFORMANCE MEASUREMENTS WORK PROCESS REENGINEERING APPLIED TECHNOLOGY LAW FIRM CONVERGENCE HOURLY RATE REDUCTIONS Source: A New Era—The DuPont Legal Model, page 17

  4. More RFPs issued lately • In the last 2 years, most Am Law firms have received 2 to 3 times more RFPs than before. • RFPs are being issued by banks, manufacturers, pharmas, telecoms, investment funds, etc. • Clients now start with a short list of firms.

  5. RFPs expensive for clients too • A few bad consultants are out there advising companies – creating RFQs (not RFPs) that don’t distinguish among firms and too-long, onerous processes. • Some companies are fascinated with really bad Excel worksheets as RFP response templates. • Recent RFP horror stories – consultants fired and rehired, RFPs with hundreds of questions, no interviews conducted, winning firms fired months after being hired, etc.

  6. Clients want … • Lower legal costs • Great firms, not just hot lawyers • Legal knowledge systems • Improved legal processes • Lawyer diversity

  7. Recent Trends on the Law Firm Side

  8. Entrepreneurs still distinguish themselves • Those with inside knowledge have a big advantage. • Savvy solutions (not just qualifications) can beat incumbents. • Still boils down to sales ability – however that translates well to the client.

  9. Firms investing in tactical competitions resources • Proposal writers, editors, project managers • Researchers and competitive intelligence analysts • More business development managers • Expertise and qualifications databases • Proposal templates and boilerplate • Proposal and document automation software

  10. Firms starting to get more systematic with competitions • Is this RFP worth the effort? • If we do decide to compete, what should we do first, second, third … eighteenth? • What role must firm management play in determining pricing decisions, business conflict assessments, staffing?

  11. Firms still not strategic enough • How does this RFP (and this client and this type of work) align with our business plan? • What is the firm’s appetite for managing its business plans? • Who in the firm is answering the hard questions: • Where is the money? • Who’s got the most interesting work? • What are clients paying the most money for?

  12. Pricing still hard to talk about • Most firms discount fees, even those that deny it. • Hourly rates are still rising – many Am Law firms’ top partners’ hourly rates pushing $1,000 / hour. • Clients still lobby for alternative pricing, but most accept discounted hourly rates and volume discounts.

  13. What firms are doing (a little) better • Research and competitive intelligence – everybody’s doing research, and some firms are actually developing actionable intel. • Interviews – create two-way conversations about this client’s issues. • Proposals – offer solutions and legal approaches responsive to this client’s challenges.

  14. What firms still need to (greatly) improve • Don’t wait for RFPs – go pitch your best clients now. • Decide if RFP is worth the effort. • Interview prospective client to learn vital intel before they compete. • Use RFP opportunities to pitch higher value work. • Debrief all competitions, win or lose.

  15. Download atwww.annleegibson.com

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