Verbatim: What Clients Say
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2009: Time for a Pivotal Change
Your clients, especially your top billing clients, are the lifeblood of your firm. However, the latest survey of law firm leaders of the Am Law 200 revealed that only 2% of the responding firms made the effort in 2008 to meet with their top 20 billing clients, to discuss their firms' performance, according to the December issue of The American Lawyer magazine. Forty-eight percent only met with five or fewer clients for this purpose. And, all but three firms represented in the Am Law 200 survey are raising their billing rates this year.
The American Lawyer also surveyed in-house counsel who are members of the networking site Legal OnRamp. "The vast majority of the LOR respondents," wrote Editor-in-Chief Aric Press, "reported that their outside firms don't even bother with client satisfaction surveys."
This is the year when alternative billing may actually begin to replace the traditional and ever-increasing hourly rate. "One of the most striking aspects of the LOR results," Press added, "was the contrast between the willingness of clients to speak harshly about their law firm vendors - fix your cost buddy, or get lost - and the rarity of an actual law firm dismissal. In this sample, on average, billion dollar companies shed an average of 1.8 law firms a year - a result skewed by one company that cleaned out 20. Is it little wonder then that law firms don't change their ways?"
Association of Corporate Counsel President Frederick Krebs connected the points for this issue of Verbatim. "Surveys reflect a snapshot in time," Krebs said. "Given the current economic conditions and the pressure on clients, I would be very surprised if a significant percentage of firms went ahead with planned rate increases in today's environment. That strikes me as very foolhardy.
"Firms should be looking to cut their bills, rates and costs. The law firms and companies participating in the ACC Value Challenge-a movement to reconnect value and cost for legal services-recognize the need to develop new ways to do business. Law firms that fail to change will not survive.”
Strategic Client Interviews will give you the information you need to become the best firm your clients' money can buy.
For more information on Strategic Client Interviews, contact Joyce Smiley at 561-775-9755, or jsmiley@jkscompany.com. On the Web at www.jkscompany.com.
Verbatim is published electronically by JKS & Company LLC/Strategic Client Interviews. Copyright 2008 JKS & Company LLC. All rights reserved.
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email: jsmiley@jkscompany.com
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