BTI Market Outlook and Client Service Review 2014 Webinar

5,972 views

Published on

Opportunities knock as 2014 unfolds.

Join BTI as we discuss new opportunities and how client service leaders are upping their game. We will dissect the market in rich, robust detail—so you can pinpoint the opportunities best for you and your firm.

We’ll delve into powerful findings from more than 300 brand new, in-depth interviews with General Counsel—and over a decade of research and experience—to offer a new perspective on what’s in store. You’ll learn:

The corporate legal spending outlook for 9 major practices.

Who makes the brand new BTI Client Service 30 and why it changed so much.

New CMO budget, spending and productivity metrics.

How law firms measure up on client service—by name.

BTI’s exclusive, unvarnished analysis of law firms’ market share gains and losses.

And much more…

BTI’s annual webinar attracts more than 600 law firm leaders worldwide—don’t miss out on your opportunity to discover what the best-performing law firms are doing to stay ahead of the competition.

View the full webinar: http://www.youtube.com/watch?v=v3uvnLLQUJM

Visit BTI: www.bticonsulting.com

Questions? Contact Michael B. Rynowecer, BTI's President at mrynowecer at bticonsulting.com.

Published in: Business, Career
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
5,972
On SlideShare
0
From Embeds
0
Number of Embeds
4,191
Actions
Shares
0
Downloads
64
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

BTI Market Outlook and Client Service Review 2014 Webinar

  1. 1. BTI Market Outlook and Client Service Review 2014 Webinar January 16, 2014 Prepared by: The BTI Consulting Group 396 Washington Street, Suite 314 Wellesley, MA 02481 Tel: +1 617 439 0333 Fax: +1 617 439 9174 www.bticonsulting.com info@bticonsulting.com ©2014 The BTI Consulting Group  Wellesley, MA 02481  Tel: +1 617 439 0333  www.bticonsulting.com
  2. 2. The BTI Approach RESULTS In-Depth Interviews 4,000 Corporate Counsel Strategic Insight: Changes, Opportunities, Threats 250 Major Law Firm Leadership Partners More than 200 Top Business Executives of Fortune 1000 and Large Companies Analysis Market and Financial of 200-Plus Law Firms Strategic and Tactical Analysis Corporate Counsel Needs: Now and How They Will Change Expectations for Relationships HOW OUR CLIENTS BENEFIT Improved Client Service Higher Growth Improved Retention Structured Trend 30 Years’ Experience and Insight Drivers Behind Client Satisfaction and Client Service ©2014 The BTI Consulting Group  Wellesley, MA 02481  Tel: +1 617 439 0333  www.bticonsulting.com Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group Higher Profits Compelling Research. Compelling Results. Page 1
  3. 3. U.S. Legal Market Exceeds $100 Billion Mark Spending on Outside Counsel Corporate Legal Departments $60.2 Billion 60.2% $39.8 Billion 39.8% The $100.1 Billion Market for Legal Services Source: BTI Premium Practices Forecast 2014: Survey of Corporate Legal Spending ©2014 The BTI Consulting Group  Wellesley, MA 02481  Tel: +1 617 439 0333  www.bticonsulting.com Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group Compelling Research. Compelling Results. Page 2
  4. 4. Corporate Counsel Shift Spending In-house, New Competition… In-house Corporate Counsel Spending $ Billions $40 $39.8 2011 2013 $33.5 $30 $20 $10 $0 ©2014 The BTI Consulting Group  Wellesley, MA 02481  Tel: +1 617 439 0333  www.bticonsulting.com Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group Compelling Research. Compelling Results. Page 3
  5. 5. Global Organizations A Bright Spot U.S. Corporate Legal Market for Outside Counsel 60% Percent of Outside Counsel Market 55.7% Fortune 1000 52.8% 51.3% 50.0% 50% 39.5% 40% 31.2% Global 500 35.5% 33.4% 30% 20% 2010 2011 2012 2013 Source: BTI Premium Practices Forecast 2014: Survey of Corporate Legal Spending ©2014 The BTI Consulting Group  Wellesley, MA 02481  Tel: +1 617 439 0333  www.bticonsulting.com Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group Compelling Research. Compelling Results. Page 4
  6. 6. Premium Practices Roadmap for 2014 Growth Prospects High Growth 10.0% PRIORITY PRACTICES TACTICAL PRACTICES Regulatory Bankruptcy Class Actions M&A Moderate Growth 1.1% Average Growth IP Litigation Tax Employment Restructuring Environmental Corporate Bet-the-Company IP Investigations Real Estate Securities Negative Growth -4.0% Litigation CORNERSTONE PRACTICES Routine Rates OPPORTUNISTIC PRACTICES Relative Rates Premium = $2 Billion Market Opportunity Source: BTI Premium Practices Forecast 2014: Survey of Corporate Legal Spending ©2014 The BTI Consulting Group  Wellesley, MA 02481  Tel: +1 617 439 0333  www.bticonsulting.com Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group Compelling Research. Compelling Results. Page 5
  7. 7. Matters to Surge, Spending Flat Litigation Spending Total Matters Litigation Activity and Litigation Spending $30.0 Billions Matters 350 $25.0 300 $20.0 250 $15.0 200 $10.0 150 2011 2012 2013 2014 (Projected) Source: BTI Litigation Outlook 2014: Changes, Trends and Opportunities for Law Firms ©2014 The BTI Consulting Group  Wellesley, MA 02481  Tel: +1 617 439 0333  www.bticonsulting.com Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group Compelling Research. Compelling Results. Page 6
  8. 8. Resolution Rates Remain High Trend in Resolution Rates 75% Percent of Active Matters Settled 50% 41.6% 36.9% 25% 36.5% 39.7% 22.2% 0% 2009 2010 2011 2012 2013 2014… Source: BTI Litigation Outlook 2014: Changes, Trends and Opportunities for Law Firms ©2014 The BTI Consulting Group  Wellesley, MA 02481  Tel: +1 617 439 0333  www.bticonsulting.com Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group Compelling Research. Compelling Results. Page 7
  9. 9. A Predator’s Paradise Outside Counsel Spending Flat $ Millions Outside Counsel as % of Total Spending Total Legal Affairs Spending Outside Counsel Spending $32.2 $30 $32.7 $30.3 $30.0 $24.8 $25.4 $25.4 $26.6 63.4% 65.0% 63.5% $19.5 45.7% $20.5 $20.8 $18.5 60.6% 59.2% $19.8 $19.7 61.6% $18.7 $19.1 50% $16.9 $14.0 $10.5 63.6% 65.9% 51.4% 42.2% $30.1 75% 63.3% 57.6% $20 $33.3 $28.1 $27.2 $10 $32.8 100% $14.6 $11.6 25% $0 0% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Source: BTI Premium Practices Forecast 2014: Survey of Corporate Legal Spending ©2014 The BTI Consulting Group  Wellesley, MA 02481  Tel: +1 617 439 0333  www.bticonsulting.com Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group Compelling Research. Compelling Results. Page 8
  10. 10. Harsh Law Firm Self Ranking on Essential Skills 10 Self Performance Rating High Average Median 7.82 7 Low 6.93 4 1 Marketing and Business Development Efforts ©2014 The BTI Consulting Group  Wellesley, MA 02481  Tel: +1 617 439 0333  www.bticonsulting.com Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group Overall Client Service Compelling Research. Compelling Results. Page 9
  11. 11. Law Firms Invest In Marketing and BD Muscle Expressed as a percent of revenue, including salaries, what is your marketing budget for 2012? AmLaw 100 AmLaw 101-200 Average Marketing Budgets 3.0% Outside AmLaw 200 Percentage of Revenue 2.84% 2.64% 2.60% 2.5% 2.50% 1.5% 2006 2.57% 2.34% 2.17% 2.10% 2.10% 2.14% 2.01% 2007 2008 2010 2.42% 2.28% 2.06% 2009 2.81% 2.57% 2.44% 2.20% 2.0% 2.93% ©2014 The BTI Consulting Group  Wellesley, MA 02481  Tel: +1 617 439 0333  www.bticonsulting.com Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group 2011 2012 2013 Compelling Research. Compelling Results. Page 10
  12. 12. Hand-to-Hand Combat: 11 Core Law Firms Compete Every Day for Work Law Firm Utilization Number of Law Firms 40 36 Handle small, technical or routine cases 30 Core law firms account for approximately 80% of outside counsel spending 20 9 10 2 0 Primary Law Firms Secondary Law Firms ©2014 The BTI Consulting Group  Wellesley, MA 02481  Tel: +1 617 439 0333  www.bticonsulting.com Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group All Others Compelling Research. Compelling Results. Page 11
  13. 13. Benchmarking Key Client Service Metrics: Reaching Clientopia First Primary Core Firm Financial Investment First Recommended Clientopia TM Emotional Investment Clientopia The Ideal State of the Client Relationship ©2014 The BTI Consulting Group  Wellesley, MA 02481  Tel: +1 617 439 0333  www.bticonsulting.com Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group Compelling Research. Compelling Results. Page 12
  14. 14. 31.4% of Clients are Truly Satisfied with Their Leading Law Firm 31.4% of corporate counsel recommend their primary law firm first Clientopia The Ideal State of the Client Relationship ©2014 The BTI Consulting Group  Wellesley, MA 02481  Tel: +1 617 439 0333  www.bticonsulting.com Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group Compelling Research. Compelling Results. Page 13
  15. 15. 17 Activities to Develop Superior Client Relationships High Understands the Client’s Business Clients See as Scarce in the Market Breadth of Services Brings Together National Resources Client Focus Regional Reputation Provides Value for the Dollar Commitment Helps Advise on Business Issues to Help Unprompted Communication Anticipates the Client’s Needs Ability to Differentiate Deals with Unexpected Changes Keeps Clients Informed Innovative Approach Handles Problems Quality Products Legal Skills Clients See as Abundant in the Market Meets Core Scope Low Not Important Importance ©2014 The BTI Consulting Group  Wellesley, MA 02481  Tel: +1 617 439 0333  www.bticonsulting.com Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group Very Important Compelling Research. Compelling Results. Page 14
  16. 16. 650 Core Law Firms Serve the Fortune 1000; Just 336 Stand Out for Superior Client Service Best-in-Class BTI Client Service 30 30 Law Firms 4.6% Law Firms Honored in the Client Service A-Team 306 Law Firms 47.1% ©2014 The BTI Consulting Group  Wellesley, MA 02481  Tel: +1 617 439 0333  www.bticonsulting.com Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group Other Core Law Firms Serving the Fortune 1000 314 Law Firms 48.3% Compelling Research. Compelling Results. Page 15
  17. 17. The 2014 BTI Client Service Top 30: The Cream of the Crop BTI Client Service Rank BTI Client Service Score BTI Client Service Rank BTI Client Service Score 1. 2. Skadden, Arps Jones Day 374.67 274.87 16. Holland & Knight 17. Hogan Lovells 171.80 151.44 3. Sidley Austin 255.33 18. Littler Mendelson 151.05 4. Morgan Lewis 254.58 19. Norton Rose Fulbright 146.17 5. 6. Kirkland & Ellis Morrison & Foerster 252.05 247.03 20. Greenberg Traurig 21. Jackson Lewis 144.61 141.11 7. 8. Latham & Watkins Thompson Hine 229.34 212.04 22. K&L Gates 23. Foley & Lardner 141.03 138.08 9. Faegre Baker Daniels 204.79 24. Alston & Bird 137.50 10. Gibson, Dunn & Crutcher 197.88 25. McGuireWoods 129.50 11. Reed Smith 196.58 26. Venable 127.36 12. Mayer Brown 192.78 27. DLA Piper 122.03 13. Bryan Cave 190.08 28. Ogletree, Deakins 115.55 14. Seyfarth Shaw 186.37 29. Thompson Coburn 104.48 15. McDermott Will & Emery 172.47 30. Husch Blackwell 103.59 Highlighted firms boast more than 12 years as part of The BTI Client Service 30 ©2014 The BTI Consulting Group  Wellesley, MA 02481  Tel: +1 617 439 0333  www.bticonsulting.com Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group Compelling Research. Compelling Results. Page 16
  18. 18. Superior Client Service Changes the Nature of Client Relationships Number of Practices Delivered to Clients 5 3.2 2.5 1.8 1.0 0 Secondary Law Firms Primary Law Firms ©2014 The BTI Consulting Group  Wellesley, MA 02481  Tel: +1 617 439 0333  www.bticonsulting.com Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group Primary Law Firms With Superior Client Service Compelling Research. Compelling Results. Page 17
  19. 19. Benefits Enjoyed by Law Firms Consistently Delivering the Best Client Service 2x 50.0% 50% 39.0% 35.9% 33.0% 25.6% 25% 0% Higher Profits Rate Premiums Across All Staff Levels Fees From a Single Client ©2014 The BTI Consulting Group  Wellesley, MA 02481  Tel: +1 617 439 0333  www.bticonsulting.com Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group Higher Client Retention Higher Growth Compelling Research. Compelling Results. Page 18
  20. 20. Superior Client Service Initiatives: Garnering Buy-in Superior Client Service Initiatives  Make the client service initiative your partners’ idea › Ask partners to rank the priority and benefit of client service tactics › Use the results to design your initiative—mostly  Use your next retreat to create the demand › Strategically designed breakout groups to drive client service • Partners: – Identify obstacles to delivering superior client service – Pinpoint strategies to overcome obstacles – Delineate best actions to implement › High-impact interactions • Short • Specific • Actions vetted by partners • NO navel gazing ©2014 The BTI Consulting Group  Wellesley, MA 02481  Tel: +1 617 439 0333  www.bticonsulting.com Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group Compelling Research. Compelling Results. Page 19
  21. 21. Superior Client Service Initiatives: Garnering Buy-in Superior Client Service Initiatives  Use client feedback scores as evidence of need to outperform competitors in your client base › Overall performance score › Scores on BTI 17 Activities › Scores compared to other law firm serving your clients › Metrics to put a stake in the ground › Probe as to “why” to help partners to understand ©2014 The BTI Consulting Group  Wellesley, MA 02481  Tel: +1 617 439 0333  www.bticonsulting.com Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group Compelling Research. Compelling Results. Page 20
  22. 22. Number One Obstacle According to Law Firms: Resistance Getting Support for Client Feedback  Create a sense of urgency, need and value  Include in: strategic plan, partner annual goals, practice-specific goals  Gain feedback from high-profile, large-scale clients first  Ask partners which questions they think make the most sense to ask › Provide sample survey documents and questions  Embrace friendly and influential partners who support client feedback › Provide results  Invite partners to present changes resulting from client feedback at every firm-sponsored meeting › Leadership follows up on results The average Am Law 200 firm has over 11% of client billings at risk in their largest clients ©2014 The BTI Consulting Group  Wellesley, MA 02481  Tel: +1 617 439 0333  www.bticonsulting.com Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group Compelling Research. Compelling Results. Page 21
  23. 23. 5 Rules to Maximize Opportunity in a Slow-Growth Economy Rules for Market Share Gains 1. Deliver superior (not good) client service  70% of Leaders deliver superior client service 2. Assign a senior partner to be accountable for client service 3. Don’t dabble—commit substantial resources on a systematic basis 4. Treat your 50 largest clients as 50 markets of one  Each client is an unique market opportunity  Each opportunity requires a custom approach for success 5. Act now—we are only at the beginning of the maturation of the legal industry ©2014 The BTI Consulting Group  Wellesley, MA 02481  Tel: +1 617 439 0333  www.bticonsulting.com Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group Compelling Research. Compelling Results. Page 22
  24. 24. Steps to Take Tomorrow Immediate Impact Activities  Form a triage team with your clients to jointly assess new matters and needs as they come in › Once a month or biweekly, depending on client  Offer to sit on clients’ new product development committees › Help spot IP opportunities; both strategic and defensive  Swarm clients with online value-added tools: › Checklists › Guidelines › Self assessments ©2014 The BTI Consulting Group  Wellesley, MA 02481  Tel: +1 617 439 0333  www.bticonsulting.com Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group Compelling Research. Compelling Results. Page 23
  25. 25. What’s New in BTI Research and Reports Upcoming Reports  The BTI Client Service All-Stars 2014  New! The BTI IP and IP Litigation Outlook  New! BTI’s Rate Study  The BTI Brand Elite 2014  BTI’s How Clients Hire: The Role of Legal Directories and Online Lawyer Profiles Just-Released Research  The BTI Client Service A-Team 2014  BTI Premium Practices Forecast  BTI’s Strategic Review and Outlook  The BTI Litigation Outlook ©2014 The BTI Consulting Group  Wellesley, MA 02481  Tel: +1 617 439 0333  www.bticonsulting.com Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group Compelling Research. Compelling Results. Page 24
  26. 26. BTI’s Key Services We can help you with everything from high-impact client feedback to full-scale client service initiatives Contact: Michael B. Rynowecer mrynowecer@bticonsulting.com Jennifer Petrone Dezso jpetrone@bticonsulting.com ©2014 The BTI Consulting Group  Wellesley, MA 02481  Tel: +1 617 439 0333  www.bticonsulting.com Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group Compelling Research. Compelling Results. Page 25
  27. 27. Follow BTI LMA Annual Conference 2014 Clientelligence: The Cold, Hard Facts on What Your Clients Really Want from Your Firm Thursday, April 3, 2014 4:15 – 5:15 PM Orlando, FL Twitter: @bticonsulting and @themadclientist Follow BTI Consulting on LinkedIn Like BTI Consulting on Facebook ©2014 The BTI Consulting Group  Wellesley, MA 02481  Tel: +1 617 439 0333  www.bticonsulting.com Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group Compelling Research. Compelling Results. Page 26
  28. 28. Thank You www.TheMadClientist.com To find out how BTI can help you with your client research or strategic planning, contact Michael B. Rynowecer or Jennifer Petrone Dezso Michael B. Rynowecer mrynowecer@bticonsulting.com +1 508.651.5048 ©2014 The BTI Consulting Group  Wellesley, MA 02481  Tel: +1 617 439 0333  www.bticonsulting.com Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group Jennifer Petrone Dezso jpetrone@bticonsulting.com +1 512.243.8037 Compelling Research. Compelling Results. Page 27
  29. 29. BTI Market Outlook and Client Service Review 2014 Webinar January 16, 2014 Prepared by: The BTI Consulting Group 396 Washington Street, Suite 314 Wellesley, MA 02481 Tel: +1 617 439 0333 Fax: +1 617 439 9174 www.bticonsulting.com info@bticonsulting.com ©2014 The BTI Consulting Group  Wellesley, MA 02481  Tel: +1 617 439 0333  www.bticonsulting.com

×