BTI Benchmarking Corporate Counsel Management Strategies

Transcription

1 BTI Benchmarking Corporate Counsel Management Strategies March 2011 Prepared by The BTI Consulting Group 2011 The BTI Consulting Group, Inc. All rights reserved.

2 Executive Summary Introduction Value is the buzzword of Whether looking internally at streamlining processes and driving efficiency or seeking better case management and rates from outside counsel corporate counsel are driven to boost the value they receive. This laser focus on value drives the key trends and emerging developments in today s legal market. BTI delineates new ideas and actions taking place in the General Counsel s office to promote higher value internally and from outside counsel. Our thanks go to the nearly 300 corporate counsel who made this research possible. 1

3 Executive Summary Cost Control Still Dominates, But Value Drives Decisions Controlling cost for the 5 th straight year remains corporate counsels number 1 goal. At the same time, finding value more than doubles in importance to the second most important goal. The increased emphasis on value is driving a major shift in how General Counsel are approaching legal management. Slashing costs and resources has slowed. As the economy levels and cost-cutting initiatives from 2009 and 2010 take effect, corporate counsel are looking to boost the value they deliver without further reducing their already limited budgets. General Counsel look to strategic changes restructuring, use of technology, auditioning new law firms and alternative fee arrangements as some of the new approaches corporate counsel are adopting in order to drive value without further straining resources. 2

4 Executive Summary Increased Competition in the Legal Market Benefits Corporate Counsel Corporate counsel push their drive for value back to their outside law firms. Gone are the days of annual rate increases and premium billing. Corporate counsel have the upper hand and a shift in outside counsel relationships is underway. Hard-hitting rate negotiations, requirements for alternative fee arrangements and demands for superior client service delivery are the new norm. Law firm rosters have grown significantly in the past year as corporate counsel seek out the firms best-suited to meet their new demands. This increased competition amongst law firms allows corporate counsel to: Find the most cost-effective firms delivering the highest value Replace former primary providers with firms delivering higher levels of client service Turn to niche providers to efficiently manage high-priority, specialty needs 3

5 Table of Contents Click on any title to go directly to the chapter Executive Summary 1 1. Controlling Costs 6 2. Managing Outside Counsel Managing the Legal Department 29 The Best Law Firms 33 Most Recommended Firms 34 Law Firms Best at Client Service: The BTI Client Service A-Team 37 About BTI 38 Research Methodology and Approach 40 4

6 How the Changing Legal Market is Impacting Corporate Counsel BTI research shows General Counsel making significant changes in three key areas. BTI asked leading corporate counsel to share their insights on the core issues, trends, and best practices: 1. Controlling Costs A Focus on Value Working with Outside Counsel to Manage Costs Alternative Billing: How and How Much It s Being Used 2. Managing Outside Counsel Legal Spending in a Holding Pattern Law Firms Auditioning for a Permanent Spot on Corporate Counsels Rosters Making the Most of the Competitive Legal Market 3. Managing the Legal Department Changing the Legal Department through Restructuring Aggressively Managing Costs and Risk 5

7 1. Controlling Costs: Three Major Strategies to Tighten Billing and Budget Practices A Focus on Value Value is the new buzzword of Steep cost cutting measures from 2009 are still felt, but with lean budgets, corporate counsel are looking for new ways to boost the value they receive from their outside counsel. The winning law firms demonstrate their ability to work cost-effectively, help streamline processes and maintain the same quality and timeliness as before the time of rate pressures. Working with Outside Counsel to Manage Costs Some corporate counsel are politely discussing discounts with their law firms. Others are simply demanding rate concessions. The only difference between the demand and the discussion is the level of decorum. Corporate counsel are angling for lower rates. Alternative Billing: How and How Much It s Being Used While the prevalence of alternative fees is high nearly 80% of corporate counsel are using them in some form the actual implementation of AFAs is limited. Only 20% of outside counsel spending is covered by alternative fee arrangements. AFAs are a gateway to discussing ways corporate counsel and their outside law firms can work together to boost the value delivered. 6

8 Controlling Costs Remains the Top Driver of Corporate Counsel Decisions and Actions; Delivering More Value Nearly Triples in Importance What is your most important goal for the General Counsel s office next year? Controlling costs remains the top General Counsel objective for 2011 Top Goals for 2010 and 2011 Percent of Corporate Counsel Fewer corporate counsel name cost control as a top goal in 2011; points to: - A leveling economy Control Legal Costs 32.9% 43.3% - Cost reduction strategies implemented in 2010 proving effective Deliver More Value 9.3% 26.0% Delivering value nearly triples in importance since 2010 Corporate counsel are under mandates to: - Operate efficiently - Streamline processes - Maintain timeliness and quality under new cost and resource pressures Mitigate Risk Support Business Goals Assess Legal Department Staffing 5.5% 8.2% 12.3% 11.0% 11.3% - Find competitive advantage - Help drive revenue Manage and Avoid Litigation 4.1% 9.3% Note: Chart does not add up to 100%. Responses smaller than 4% excluded. 7

9 Value Leapfrogs into the Highest Ranks as One of Clients Driving Goals: Top Goals for Legal Departments What is your most important goal for the General Counsel s office next year? Controlling costs remains corporate counsel s top goal for the 5 th consecutive year Compliance drops from the top 4 goals for the first time since 2006 Overtaken by corporate counsel s drive for tighter management over their legal departments: - Cost management - Value - Risk mitigation Goal 1 Goal 2 Goal Provide Exceptional Service Mitigate Risks Control Legal Costs Ensure Compliance Control Legal Costs Mitigate Risks Control Legal Costs Support Business Goals Ensure Compliance Control Legal Costs Mitigate Risks Deliver more value rises to clients number 2 goal for the first time in over 7 years Ensure Compliance Control Legal Costs Ensure Compliance Support Business Goals Control Legal Costs Support Business Goals Ensure Compliance Control Legal Costs Deliver More Value Mitigate Risk Goal 4 Support Business Goals Support Business Goals Provide Exceptional Service Support Business Goals Provide Exceptional Service Manage and Avoid Litigation Support Business Goals Compliance drops from the top 4 for the first time since

10 Corporate Counsel Looking to Law Firms to Help Control Costs Through Discounts, Alternative Fee Arrangements and Tighter Management of Cases Could you please tell me about any cost reduction initiatives you have implemented in the past 12 to 18 months? Almost half of General Counsel are working with their outside counsel to reduce overall costs Top methods include: - Negotiated discounts and rate freezes Negotiated Deeper Discounts and Rate Cuts Cost Controlling Strategies Percent of Corporate Counsel 26.0% - Alternative fee arrangements - Consolidation of outside counsel Tighter Management of Overhead Costs 13.0% - Stricter budgets and monitoring of costs Corporate counsel also forced to look at reducing internal costs in this economy Tighter management of overhead costs and line item reductions (e.g., travel) Bringing work in-house Increased Use of AFAs Bring Work In-House Reduced In-House Staff 7.8% 7.8% 11.7% Hiring freezes or cuts Compensation freezes or cuts Tighter Management of OC 6.5% Consolidate Outside Counsel 5.2% Note: Chart does not add up to 100%. Responses smaller than 5% excluded. 9

11 Prevalence of Alternative Fees High, Actual Implementation is Limited Alternative fees are in use by 79.6% of corporate counsel as a key cost control tactic Yet, only 20.2% of spending is covered by alternative billing arrangements While a hot topic, use of alternative fees is still limited due to : Complex and multi-variable matters difficult to place under AFA Ease-of-use and tradition of hourly rates Perceived risk associated with the unknown 100% 75% 50% Cost Controlling Strategies Percent of Corporate Counsel 20.4% 79.8% 79.6% of Corporate Counsel Use Alternative Billing 25% 0% Percent of Corporate Counsel Using Each Type of Billing Alternative Billing 20.2% of Outside Counsel Spending is Covered by Alternative Billing Percent of Outside Counsel Spending Under Each Type of Billing Traditional Billing 10

12 Alternative Fee Arrangements Expected to Increase as More Corporate Counsel and Law Firms Experiment and Expand Usage Do you expect this amount to increase or decrease over the next 12 months? Why? Corporate counsel and law firms continue to experiment with alternative fee arrangements Main benefits of AFAs include: Experimenting and Continuing Use of AFAs Drivers Increasing Corporate Counsel s Use of AFAs Percent of Corporate Counsel Using AFA 21.3% Way to combat rising costs of legal services Provides cost predictability and more effective case management Promotes value and efficiency on the part of the law firm Focus on Cost Control Cost Predictability 14.6% 15.7% Better Value and Efficiency 11.2% Successful Experience 10.1% More Law Firms Adopting 7.9% Note: Chart adds up to more than 100%. Responses smaller than 7% excluded. 11

13 2. Managing Outside Counsel: Three Key Shifts in Spending, Usage and Relationships Legal Spending in a Holding Pattern Outside counsel spending, after doubling between 2001 and 2007, now hovers just below 2006 levels. Corporate counsel are demanding, at a minimum, law firms keep their rates in check. Most in-house counsel are fiercely negotiating discounts, experimenting with alternative fee arrangements or bringing their routine matters in-house for cost savings. The savviest in-house counsel are doing some combination of all three. Cost control and value remain constant themes in legal budgets for 2010 and Law Firms Auditioning for a Permanent Spot on Corporate Counsels Rosters The number of law firms corporate counsel rely on spikes in Law firm rosters expand by more than a dozen firms. Competition is ferocious among outside law firms and corporate counsel reap the benefits. In-house counsel are turning to multiple law firms to find the firms providing the best value, client service and legal advice. However, corporate counsel expect to return to smaller roster sof law firms in 3 years. Making the Most of the Competitive Legal Market Corporate counsel have the economic upper-hand in today s legal market. Law firms seeking work are showing more flexibility than ever before. Use this time to find the firms that: Offer cost predictability through the use of pre-determined budgets and alternative fee arrangements Distribute hard-hitting, relevant research free of charge to help you better manage business issues Proactively recommend risk management strategies and tactics to keep your company ahead of emerging risks and issues 12

14 Legal Spending Slow to Revive Internal Spending Climbs as Outside Counsel Spending Remains Steady Legal budgets climb for the first time since the economic downturn Money flows back to in-house spending Outside counsel spending in line with 2009 levels Percent of budgets dedicated to outside counsel shrinks Credit 3 reasons: - Internal legal departments add staff - Routine work heads in-house - Corporate counsel pressure law firms for deeper discounts and rate freezes $35 $26 $18 $9 Changes in Outside Counsel Spending as Percent of Total Spending $ Millions $24.8 $25.4 $14.3 $ % $ % $11.6 $27.2 $ % $14.0 $25.4 $ % $14.6 $26.6 $ % $16.9 $30.0 $ % $19.5 $32.3 $32.8 $11.8 $ % 63.3% $20.5 $20.8 $30.4 $11.7 $25.8 $ % 71.7% $18.5 $ % 75% 50% 25% $ In-house spending Outside counsel spending Outside counsel as a percent of total budget 0% 13

15 Outside Counsel Spending Remains Stagnant Outside counsel spending levels off after extreme drops in 2009 Cost-sensitive corporate counsel keep outside counsel costs in check by: Challenging law firms to freeze rates and offer discounts Evaluating cases more thoroughly to tackle only the most high-priority needs Handling routine work in-house to more effectively manage outside counsel expenses See the following slides for detailed information on spending by company size and industry $26 Average Spending on Outside Counsel Services $ Millions $14.0 $14.6 $16.9 $19.5 $20.5 $20.8 $18.5 $18.7 $

16 Fortune 100 Organizations Spend Nearly 7 Times More on Outside Counsel than Other Fortune Companies Approximately how much do you estimate your organization spends on outside counsel annually? Spending on outside counsel largely dependent on company size Fortune 100 companies spend, on average, $120 million on outside counsel annually 7 times more than organizations outside the Fortune 100 Spending on outside counsel dramatically lower by Fortune organizations Lower legal spending due to: - Less liability due to fewer resources - Fewer high-profile, bet-the-company matters driving high legal costs Average Outside Counsel Spending by Company Size $ Millions $120.0M 0 $17.4M $7.7M Fortune 100 Fortune Fortune

17 Largest Companies Spend 5 Times More on Outside Counsel than Smaller Organizations Approximately how much do you estimate your organization spends on outside counsel annually? Spending on outside counsel largely dependent on company revenue Companies with $10 billion or more in revenue spend, on average, $55 million on outside counsel annually 5 times more than organizations with less annual revenue Spending on outside counsel dramatically lower by organizations with less than $10 billion in revenue Lower legal spending due to: - Less liability due to fewer resources - Fewer high-profile, bet-the-company matters driving high legal costs Average Outside Counsel Spending by Company Revenue $ Millions $55.0M $11.0M $3.9M $10 Billion and Up $3.0B $9.9B $1.0B $2.9B 16

18 Healthcare and Pharmaceutical Companies Top Spenders on Outside Counsel Approximately how much do you estimate your organization spends on outside counsel annually? 3 industry groups spend substantially more on outside counsel services than others Outside counsel spending more than 3 times higher than other industries - Healthcare and pharmaceuticals - Banking, financial services and insurance - Energy and utilities Key drivers of higher spending include: - Highly regulated industries - Active transactional work - Recent increase in class actions and betthe-company work Average Outside Counsel Spending by Industry $ Millions $56.5 $37.1 $ Healthcare & Pharmaceuticals Banking, Financial Services, Insurance Energy & Utilities $9.0 $8.6 High Tech & Telecomm Manufacturing, Industrial Manufacturing, Chemicals $7.7 Retail, Wholesale, Consumer Goods 17

19 Corporate Counsel Rely on 15 Core Law Firms to Handle the Bulk of Their Legal Work A typical large organization relies on 53 different law firms 15 of these comprise the core group Core law firms account for approximately 80% of outside counsel spending 38 other firms handle smaller, technical or jurisdiction-specific cases Average Number of Law Firms Used by Typical Large Organization Number of Law Firms 38 Most large organizations have 1 to 3 primary law firms Primary law firms are major providers - Longest relationships - Typically get 15% to 25% of spending on outside counsel Core law firms Primary Law Firms Secondary Law Firms Everyone else 18

20 Corporate Counsel Law Firm Rosters Spike in 2010; Expected to Return to 2009 Levels by 2013 Corporate counsel turn to more law firms in 2010 for 3 main reasons Find the most cost-effective firms delivering the highest value Replace former primary providers with firms delivering higher levels of client service Turn to niche providers to efficiently manage high-priority, specialty needs Convergence on the horizon as corporate counsel report: Tighter management and oversight of outside counsel activities Less time to oversee large rosters Ability to drive better rates and higher value through the consolidation of firms Law Firm Utilization Number of Law Firms 9 All Others Secondary Primary Projected

21 Spending with a Single Primary Law Firm Returns to Previous Levels How much do you spend with your primary law firm? After a spike in 2009, spending with a primary provider returns to levels in prior years $5 Average Spending with a Single Primary Provider $ Millions Increasing number of law firms on corporate counsel rosters (see page 15) competing for limited dollars Corporate counsel continue to dedicate bulk of their spending to their primary law firms These law firms deliver: - Keen understanding of their business - Strategic legal and business advice - Proactive solutions to emerging issues $3 $3.3 $3.0 $3.3 $3.3 $3.6 $3.2 $

22 Fortune 100 Organizations Dedicate Nearly $7 Million More to Their Primary Legal Providers than Other Organizations How much do you spend with your primary law firm? Trends in primary spending mimic overall outside counsel spending trends Fortune 100 companies spend, on average, $11 million with their leading primary law firm Nearly 3 times more than other Fortuneranked companies Spending on outside counsel dramatically lower by Fortune organizations Average Spending with a Single Primary Provider by Company Size $ Millions $11.0M 5 $4.5M $1.7M 0 Fortune 100 Fortune Fortune

23 Exclusive An Inside Look at the New World of Litigation Litigation and Its Role in Today s Legal Market 2008 and 2009 were defined by risk avoidance and deferments, but 2010 ushers in a new attitude towards litigation. Litigation activity sparks as financial fallout cases linger, supply-chain suits heat up and deferred cases come online. Litigation accounts for 35.5% of corporate counsel legal budgets and in-house counsel are expected to keep the volume up. The number of new cases is set to rise nearly 20% over 2010 levels and resolution is a key priority. The following section details what you need to know about: How corporate counsel are spending on litigation matters The number of litigation matters on the horizon Resolution rates for past and current litigation matters Which law firms your peers recommend to help you manage your litigation work 22

24 The Big Spenders: 14.3% of Companies Account for 80% of Litigation Spending Extreme spenders dedicate more than $75 million per year, on average, to litigation A typical large company spends $3.2 million annually Big spenders: Hail from Fortune 100 and Global % 75% Spending Breakdown by Company Type Percent 85.7% Typical Company: $3.2 Million on average Span industries: - Big pharmaceuticals - Oil and gas giants - Manufacturing 50% Big Spenders: $75.8 Million on average Spend the most on bet-the-company matters 25% 0% 14.3% Percent of Companies Percent of Litigation Spending Source: BTI s Survey of Litigation Counsel

25 Commercial and Employment Litigation Account for More than Half of Litigation Spending And how do you estimate this outside counsel spending breaks down, by percentage, into the following types of litigation: Commercial litigation captures 1 in 3 litigation dollars Contracts and disputes Creditors and collections Dissolutions, buyouts and financial arrangements Other business litigation Commercial Litigation Employment Litigation Litigation Spending Breakdowns Percent of Corporate Counsel Litigation Spending 18.9% 32.4% Employment litigation hits 18.9% of litigation budgets Wage and hour disputes spark growth IP Litigation Product Liability Litigation 12.1% 11.8% Top-dollar securities litigation issues just shy of 10% Class actions and torts average just 2.0% of budgets Concentrated in the hands of a small number of large companies Securities or Finance-related Litigation Class Actions and Torts 2.0% 9.4% Note: Chart does not add up to 100%. Responses smaller than 2% excluded. Source: BTI s Survey of Litigation Counsel

26 Corporate Counsel Expect Bump in New Matters for 2011 Corporate counsel brace for new matters in next 12 months Per company 150 Average Number of New Litigation Matters Number of Matters Trumps last year s new matters New matters primarily complex and routine Few corporate counsel anticipate a rise in bet-the-company cases New Matters in Past 12 Months New Matters in Next 12 Months Source: BTI s Survey of Litigation Counsel

27 Resolution Rates Surge: Up 30% and Heading Higher; 1 in 3 Matters Targeted for Closure Corporate counsel laser-focused on boosting resolution rates (settlement) and clearing dockets Minimizes risk Lowers costs Reduces litigation reserve 50% Resolution Rates Percent of Matters Resolved Corporate counsel resolved 22.2% of last year s active matters Over 100 cases per company 25% 36.9% Companies actively approach current and new matters with plans to stamp out 1 in 3 On the hunt for law firms who can deliver: Early case assessment Aggressive stance on risk-taking Analysis of historical outcomes Speedy closure Quick, informed decision making Strategic judgment 0% 22.2% Source: BTI s Survey of Litigation Counsel

28 Corporate Counsel Identify the Most Recommended Firms for Litigation Client service comes into play long before I hire a law firm, explains a Fortune 500 General Counsel. In fact, few clients will invite a firm to the table without a proven history of delivering superior client service. More than 65% of new hires stem from referrals or recommendations from other corporate counsel. The following list of 24 firms are the ones corporate counsel recommend above all others in an unprompted manner for litigation work. General Counsel have put their emotional investment in these firms. 27

29 Jones Day Leads Corporate Counsels List of Recommended Law Firms for Litigation Could you tell me which firm you would recommend for litigation to someone else in your industry? The Most Recommended Law Firm for Litigation Jones Day Predominant Recommended Law Firms for Litigation Foley & Lardner Reed Smith Fulbright & Jaworski Sidley Austin Gibson, Dunn & Crutcher Thompson Hine Littler Mendelson Strongly Recommended Law Firms for Litigation Alston & Bird Kirkland & Ellis Bingham McCutchen Latham & Watkins Bradley Arant Boult Cummings McDermott Will & Emery Bryan Cave Morgan Lewis Crowell & Moring Ogletree, Deakins, Nash, Smoak & Stewart Fisher & Phillips Seyfarth Shaw Howrey Sherman & Howard Kelley Drye & Warren Skadden, Arps, Slate, Meagher & Flom Source: BTI s Survey of Litigation Counsel

30 3. Managing the Legal Department: General Counsel Implement Key Changes to Boost Efficiency and Mitigate Risk Changing the Face of the Legal Department The time for change is now saw dramatic cuts in internal legal department staffing. Many in-house counsel took the opportunity to snatch up the droves of good people on the market to help with productivity and performance. Restructuring, adding in-house attorneys and bringing work in-house are setting the tone for legal departments in Risk management and cost control go hand in hand. According to BTI research, General Counsel are aggressively attacking both of these key activities through: Tight management of overheard costs (i.e., travel) Clearing litigation dockets Aggressive early case assessments Bringing work in-house Close monitoring of outside counsel activities and expenditures 29

31 Restructuring the Top Change Corporate Counsel Making to Legal Departments What is the single biggest change you have made to your legal department in the past year? Nearly one-third of corporate counsel are restructuring their legal departments to better address their legal needs. Top methods include: Allowing attorneys and support staff to take on greater responsibility Shifting lines of reporting to ensure greater accountability of employees and outside counsel Restructure Legal Department/ New Management Additional In-House Staff Changes to How Corporate Counsel Manage Legal Departments Percent of Corporate Counsel 15.4% 30.8% Economic conditions continue to impact how corporate counsel manage their departments Adding in-house staff to handle more work being brought in-house Hiring freezes or cuts Implementing strict management of costs Leveraging technology to streamline processes and procedures In-House Staff Reductions Cost Control Initiatives Bring More Work In-House Technology Implementations 5.1% 7.1% 6.4% 14.7% Note: Chart does not add up to 100%. Responses smaller than 5% excluded. 30

32 Internal Legal Departments Growing; Corporate Counsel Add Attorneys and Staff to Handle Increasing Internal Workloads How many attorneys does it take to manage and implement all aspects of your company s legal services company-wide? Corporate counsel boost staff including in-house attorneys More routine work heading in-house Push to resolve more matters and reduce litigation costs Matters deferred in 2009 back on the docket 60 Trend in Legal Department Staffing Average Number of FTEs and In-House Attorneys Legal Full-Time Equivalents 60 Corporate counsel still feeling the pinch from slashed departments Remains a top goal for corporate counsel to address Keeps corporate counsel up at night Second largest change corporate counsel are making to legal departments Attorneys

33 Internal Departments Remain Thin in the Wake of Major Staffing Cutbacks How many attorneys does it take to manage and implement all aspects of your company s legal services company-wide? Largest companies continue to keep internal legal departments leanly staffed Smaller and mid-size companies have maintained in-house attorney levels on average, while larger companies started cutting attorneys in 2007 and continued through Trend in Number of In-House Attorneys Average Number of In-House Attorneys Fortune Fortune Fortune

34 The Best Law Firms: Most Recommended Firms Flat outside counsel spending and demands for client service at an all-time high means competition among law firms is fierce. Corporate counsel are reevaluating outside counsel relationships and looking for firms offering keen understanding of their business issues, thought-leading approaches to handling legal matters and total commitment. The list of the 35 most recommended firms by corporate counsel includes those firms which you and your peers recommend above all others in an unprompted manner. General Counsel are willing to stake their own reputation by offering referrals for these firms. 33

35 35 Law Firms Make the List of Law Firms Most Recommended by Corporate Counsel The Most Recommended Law Firm Jones Day Predominant Recommended Law Firms Baker & McKenzie Baker Botts Bryan Cave Faegre & Benson Foley & Lardner Holland & Knight Kutak Rock Mayer Brown Morgan Lewis Pillsbury Winthrop Shaw Pittman Sidley Austin Strongly Recommended Law Firms Alston & Bird Hunton & Williams Squire, Sanders & Dempsey Baker Hostetler Jackson Lewis Stoel Rives Bingham McCutchen K&L Gates Thompson Coburn Crowell & Moring Kilpatrick Townsend & Stockton Troutman Sanders DLA Piper Latham & Watkins Tucker Ellis & West Dorsey & Whitney Ogletree, Deakins, Nash, Smoak & Stewart Vinson & Elkins Fisher & Phillips Quarles & Brady White & Case Howrey Shearman & Sterling Source: BTI s Survey of Litigation Counsel

36 The Best Law Firms: The BTI Client Service A-Team The BTI Client Service A-Team is the definitive list of law firms which differentiated themselves through excellence in client service in This fact-based, comprehensive analysis draws on more than 2,800 interviews with corporate counsel conducted over the span of 10 years. This year s analysis relies on nearly 300 independent, one-on-one interviews with corporate counsel to delineate by name and rank precisely how more than 300 law firms perform along the 17 activities driving superior client relationships. BTI scores every firm based on corporate counsel s unprompted feedback, using our corporate counsel-driven ranking of the importance and influence of each of the 17 client service activities Corporate counsel recognize 333 law firms for superior client service in The BTI Client Service A-Team

37 650 Core Law Firms Serve the Fortune 1000; Just 333 Stand Out for Superior Client Service 650 core law firms serve large and Fortune 1000 companies Of these, corporate counsel nominate just 333 for superior client service this year A mere 30 distinguish themselves as the absolute best The BTI Client Service 30 is the cream of the crop of The BTI Client Service A-Team Law Firms Honored in the BTI Client Service A-Team 303 Law Firms 46.6% Best-in-Class BTI Client Service Law Firms 4.6% Other Core Law Firms Serving the Fortune Law Firms 48.8% 36

38 The BTI Client Service Top 30: The Cream of the Crop in Delivering Superior Client Service BTI Client Service Rank The BTI Client Service 30 BTI Client Service Score BTI Client Service Rank BTI Client Service Score 1. Jones Day Dorsey & Whitney Thompson Hine Bryan Cave Alston & Bird Baker Botts Sidley Austin Bradley Arant Boult Cummings Fulbright & Jaworski Hogan Lovells Kirkland & Ellis Ogletree, Deakins, Nash, Smoak & Stewart Foley & Lardner Bingham McCutchen Skadden, Arps, Slate, Meagher & Flom Stoel Rives Morgan Lewis Eimer Stahl Reed Smith Ropes & Gray Holland & Knight Lathrop & Gage Frost Brown Todd Thompson Coburn Gibson, Dunn & Crutcher Latham & Watkins Baker & McKenzie Pillsbury Winthrop Shaw Pittman Faegre & Benson Littler Mendelson

39 About BTI BTI is the leading provider of strategic research to the legal community performing more market research about law firms than virtually anyone. BTI has helped more than 150 law firms and professional services firms improve client service through compelling research and advice. We conduct the only continuous benchmarking market study, now in its 11 th year, in the legal services industry. BTI provides strategic benchmarking to more than 800 General Counsel at Fortune 1000 companies. More than 70 of the 100 largest law firms use BTI s services and research to: Implement robust client feedback programs Assess brand awareness and market positioning Target market opportunities Establish best practices and benchmarks to drive performance BTI conducts custom client surveys as part of world-class client feedback programs to drive consistent client service delivery for leading professional services firms. 38

40 BTI Research and Publications The Survey of Client Service Performance for Law Firms: The BTI Client Service A-Team 2011 The only ranking based 100% on direct, unprompted corporate counsel feedback on law firm client service performance. Discover how corporate counsel rate more than 330 law firms in 17 key activities including Client Focus, Commitment to Help, Legal Skills and Provides Value for the Dollar. Learn which firms rank best, The BTI Client Service 30, and which firms have enjoyed an unprecedented 10 years on this exclusive list. The BTI Client Service All-Star Team for Law Firms attorneys win client recognition for unsurpassed client service in an environment of ambiguity and turmoil. These are The BTI Client Service All-Stars. BTI awards special recognition to 24 attorneys for nominations 2 or more years in a row The BTI Client Service All-Star MVPs. The complete list of BTI Client Service All-Stars, based on nearly 300interviews with corporate counsel at large and Fortune 1000 companies, is available to you. BTI Premium Practices Forecast 2011: Survey of Corporate Legal Spending The legal market is showing signs of stabilization after a 10.8% free fall in Get immediate insights into where the market is headed in 16 practices and over a dozen industries based on candid, direct feedback from nearly 300 corporate counsel at large and Fortune 1000 companies. You can order these and other compelling BTI research or publications at 39

41 Research Methodology and Approach This fact-based, comprehensive analysis draws on more than 2,800 interviews conducted over the span of 10 years. BTI interviewed nearly 300 corporate counsel this year at large and Fortune 1000 companies. Our interviews were conducted between June 1, 2010 and September 17, This analysis includes interviews with: 19.0% of the Fortune % of the Global 500 Average revenue of $17.6 billion - Median revenue of $4.1 billion BTI conducts all interviews using multiple techniques. These include: Structured questions Quantitative questions Forward-looking questions Experience-based questions Our interview team averages more than 15 years experience interviewing C-level and top executives. 40

42 Contact BTI Please contact Michael B. Rynowecer, BTI President at or at with your questions, thoughts and comments. 41

43 The BTI Consulting Group 396 Washington Street Suite 314 Wellesley, MA Tel: (617) Fax: (617)