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Brazilian study on the   Marco Antonio P. Gonçalves
relationship between legal    June 17, 2010
departments and law firms
Parties responsible for the study

• Developed by Marco Antonio and Alessandra
  Gonçalves, with the support of Fórum de Departamentos
  Jurídicos.

• Commissioned by LexisNexis Martindale-Hubbell.
A bit of background on the study

• Online questionnaire between August-October 2009.

• 112 respondent companies.

• 54% of Brazilian origin.

• 44% with annual revenue above R$ 1 billion
  (approximately US$ 550 million).

• Many sectors represented: services, consumer goods,
  energy, telecom, pharmaceutical, construction, retail etc.
Number of internal lawyers & law firms hired

• Legal departments




• Law firms
Status of internal lawyers & law firms hired

• Legal departments




• Law firms
Status of internal lawyers & law firms hired

• On the increase in the number of internal lawyers:

 "Increase in demand, expansion of the range of activities
 and increase in the complexity of the matters handled by
 the departments." - GC in the energy sector

• On the decrease in the number of law firms hired:

 "Except for the barrier represented by the geographic
 scope and, in some cases the level of specialisation, the
 tendency is towards reduction, and never towards
 exclusivity.“ - GC in the consumer goods sector
Legal budget X size of law firms hired
Authority for hiring law firms
Preferential billing arrangements
Distribution of legal matters
Practice areas regularly hired
Sources for identifying law firms
Criteria for hiring law firms
Understanding the business dynamics

• GC in the paper and pulp sector:

 "One of the biggest problems for law firms is still the lack
 of understanding of the business dynamics and the
 effective necessities of the company. Support is, more
 often than not, technically perfect, but its adjustment to
 the interests involved is very rare."
Reasons for firing law firms
Responding to the client's expectations

• GC in the digital industry sector:

 "One of the most important qualities for lawyers of law
 firms is to be diligent in their responses and to be able to
 understand the urgency of a client in a given moment.
 To offer an accurate estimate regarding the completion
 of the task, to advise in a preventive way and to offer
 counselling when it is considered that a task can be
 carried out by the legal department of a company is
 essential. We do not want to pay for something that we
 can do ourselves."
Long-term concerns
A final thought on what GCs are looking for

• GC in the telecom sector:

 "We do not believe in law firms. We believe in lawyers and
 people who exceed themselves day after day. I do not give
 a job to a firm, but to a person or a group of these persons.
 Those who win me over are brilliant and consistent people
 who receive work and manage it exceptionally. There is also
 a lot to do with personal relationships in this scenario. It is
 worthless to be brilliant but to think too highly of oneself to
 dispatch a petition or to be present at meetings here in the
 company. It is not worth feeling offended about revisions or
 suggestions. Exceptional yes, stellar no."
How to obtain the full
report of the study?

• Freely available for members of
  the "Lawyers of Brazil" group
  within Connected, the social
  network of Martindale-Hubbell.




• Join at:
  www.martindale.com/connected
Thank you!
Marco Antonio P. Gonçalves
goncalves@marketinglegal.com.br

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Brazilian study on the relationship between legal departments and law firms

  • 1. Brazilian study on the Marco Antonio P. Gonçalves relationship between legal June 17, 2010 departments and law firms
  • 2. Parties responsible for the study • Developed by Marco Antonio and Alessandra Gonçalves, with the support of Fórum de Departamentos Jurídicos. • Commissioned by LexisNexis Martindale-Hubbell.
  • 3. A bit of background on the study • Online questionnaire between August-October 2009. • 112 respondent companies. • 54% of Brazilian origin. • 44% with annual revenue above R$ 1 billion (approximately US$ 550 million). • Many sectors represented: services, consumer goods, energy, telecom, pharmaceutical, construction, retail etc.
  • 4. Number of internal lawyers & law firms hired • Legal departments • Law firms
  • 5. Status of internal lawyers & law firms hired • Legal departments • Law firms
  • 6. Status of internal lawyers & law firms hired • On the increase in the number of internal lawyers: "Increase in demand, expansion of the range of activities and increase in the complexity of the matters handled by the departments." - GC in the energy sector • On the decrease in the number of law firms hired: "Except for the barrier represented by the geographic scope and, in some cases the level of specialisation, the tendency is towards reduction, and never towards exclusivity.“ - GC in the consumer goods sector
  • 7. Legal budget X size of law firms hired
  • 13. Criteria for hiring law firms
  • 14. Understanding the business dynamics • GC in the paper and pulp sector: "One of the biggest problems for law firms is still the lack of understanding of the business dynamics and the effective necessities of the company. Support is, more often than not, technically perfect, but its adjustment to the interests involved is very rare."
  • 15. Reasons for firing law firms
  • 16. Responding to the client's expectations • GC in the digital industry sector: "One of the most important qualities for lawyers of law firms is to be diligent in their responses and to be able to understand the urgency of a client in a given moment. To offer an accurate estimate regarding the completion of the task, to advise in a preventive way and to offer counselling when it is considered that a task can be carried out by the legal department of a company is essential. We do not want to pay for something that we can do ourselves."
  • 18. A final thought on what GCs are looking for • GC in the telecom sector: "We do not believe in law firms. We believe in lawyers and people who exceed themselves day after day. I do not give a job to a firm, but to a person or a group of these persons. Those who win me over are brilliant and consistent people who receive work and manage it exceptionally. There is also a lot to do with personal relationships in this scenario. It is worthless to be brilliant but to think too highly of oneself to dispatch a petition or to be present at meetings here in the company. It is not worth feeling offended about revisions or suggestions. Exceptional yes, stellar no."
  • 19. How to obtain the full report of the study? • Freely available for members of the "Lawyers of Brazil" group within Connected, the social network of Martindale-Hubbell. • Join at: www.martindale.com/connected
  • 20. Thank you! Marco Antonio P. Gonçalves goncalves@marketinglegal.com.br