Law Firm SurveysPart One: The Major Surveys Compared

Part One: The Major Surveys Compared

The Association of Legal Administrators sponsored a panel discussion entitled 'Law Firm Surveys ' The Good, The Bad, and The Ugly' at their 2003 annual convention in San Diego.  The panel included Don Williams (Chief Operating Officer ' Schwabe Williamson & Wyatt, P.C.), Pete Peterson (former Legal Administrator for several Midwest law firms and current law firm consultant with the Law Firm Business Institute), and Bill Bachman (Executive Director ' Bingham McCutchen LLP). Mike Short (Director ' Hildebrandt International) moderated the discussion. Among other topics, the panelists advised attendees on the surveys available, key considerations when choosing a survey, data comparability issues, and survey data interpretation.

This three-part article will summarize that discussion. Part One is a general overview and comparison of the major surveys currently available for U.S. law firms. Part Two will advise further on how to select a survey, and Part Three will explain how to get the most out of survey participation.

Law firm managers are inundated annually with requests to participate in myriad surveys. These surveys range from a few major national survey programs to many small regional and local surveys on a wide variety of topics.

Surveys Varied in Scope

The smaller surveys, sometimes sponsored by local ALA chapters, are fairly distinct. Given the typically narrow focus of such surveys (eg, on compensation, technology, or billing rates) and their low participation cost, the decision to participate is easy for law firm managers. Differences among the major national surveys are more subtle, however, and further investigation is required to justify the higher costs (in both time and money) to participate in these programs.

The panelists recognized three programs as 'major' annual surveys open to all U.S. law firms:

• The Survey of Law Firm Economics, sponsored by Altman Weil Publications.
• The Flash Report on Law Firm Economics', sponsored by Hoffman Alvary & Company LLC.
• The Law Firm Statistical Survey, sponsored by Pricewaterhouse- Coopers LLP.

The panelists briefly acknowledged Citibank's Annual Survey of Law Firm Financial Statements as a major annual survey, but indicated that it is not generally available to all U.S. law firms. Citibank primarily targets clients of their services and other large law firms.

Points of Comparison

In deciding whether to participate in surveys, law firm managers typically consider the following criteria:

• Target population for the survey.
• Size range (by attorney count) of participating firms.
• Historical participation base.
• Cost.
• Delivery date.
• Types of comparison groups offered.
• Report focus and content.

Table 1 on page 4 uses these same criteria to compare the three major surveys.

The panelists generally concurred that The Survey of Law Firm Economics (Altman Weil Publications) is better suited for solo practitioners and smaller firms. Larger firms tend to participate in one or more of the other surveys ' including Citibank's survey.

Beyond the basic differences between surveys highlighted above, the panel discussed more subtle distinctions, primarily regarding the content of survey final reports. For example:

• Citibank's survey is balance sheet oriented.
• PricewaterhouseCooper's survey is very detailed in its income statement analyses. For example, expenses are shown by functional administrative department to avoid misleading comparisons that might otherwise result from outsourcing.
• While Hoffman Alvary & Company's survey includes income statement analyses, it features analyses of specific management topics such as the drivers of revenue by practice area, client base statistics, and partner compensation.

Significant Differences

The panelists concluded that the major surveys are significantly different, with each survey tending to reflect the primary focus of its sponsoring organization. As a group, the major surveys offer their target audience of U.S. law firms valuable options to choose from when selecting a source for comparative information.

Part One: The Major Surveys Compared

The Association of Legal Administrators sponsored a panel discussion entitled 'Law Firm Surveys ' The Good, The Bad, and The Ugly' at their 2003 annual convention in San Diego.  The panel included Don Williams (Chief Operating Officer ' Schwabe Williamson & Wyatt, P.C.), Pete Peterson (former Legal Administrator for several Midwest law firms and current law firm consultant with the Law Firm Business Institute), and Bill Bachman (Executive Director ' Bingham McCutchen LLP). Mike Short (Director ' Hildebrandt International) moderated the discussion. Among other topics, the panelists advised attendees on the surveys available, key considerations when choosing a survey, data comparability issues, and survey data interpretation.

This three-part article will summarize that discussion. Part One is a general overview and comparison of the major surveys currently available for U.S. law firms. Part Two will advise further on how to select a survey, and Part Three will explain how to get the most out of survey participation.

Law firm managers are inundated annually with requests to participate in myriad surveys. These surveys range from a few major national survey programs to many small regional and local surveys on a wide variety of topics.

Surveys Varied in Scope

The smaller surveys, sometimes sponsored by local ALA chapters, are fairly distinct. Given the typically narrow focus of such surveys (eg, on compensation, technology, or billing rates) and their low participation cost, the decision to participate is easy for law firm managers. Differences among the major national surveys are more subtle, however, and further investigation is required to justify the higher costs (in both time and money) to participate in these programs.

The panelists recognized three programs as 'major' annual surveys open to all U.S. law firms:

• The Survey of Law Firm Economics, sponsored by Altman Weil Publications.
• The Flash Report on Law Firm Economics', sponsored by Hoffman Alvary & Company LLC.
• The Law Firm Statistical Survey, sponsored by Pricewaterhouse- Coopers LLP.

The panelists briefly acknowledged Citibank's Annual Survey of Law Firm Financial Statements as a major annual survey, but indicated that it is not generally available to all U.S. law firms. Citibank primarily targets clients of their services and other large law firms.

Points of Comparison

In deciding whether to participate in surveys, law firm managers typically consider the following criteria:

• Target population for the survey.
• Size range (by attorney count) of participating firms.
• Historical participation base.
• Cost.
• Delivery date.
• Types of comparison groups offered.
• Report focus and content.

Table 1 on page 4 uses these same criteria to compare the three major surveys.

The panelists generally concurred that The Survey of Law Firm Economics (Altman Weil Publications) is better suited for solo practitioners and smaller firms. Larger firms tend to participate in one or more of the other surveys ' including Citibank's survey.

Beyond the basic differences between surveys highlighted above, the panel discussed more subtle distinctions, primarily regarding the content of survey final reports. For example:

• Citibank's survey is balance sheet oriented.
• PricewaterhouseCooper's survey is very detailed in its income statement analyses. For example, expenses are shown by functional administrative department to avoid misleading comparisons that might otherwise result from outsourcing.
• While Hoffman Alvary & Company's survey includes income statement analyses, it features analyses of specific management topics such as the drivers of revenue by practice area, client base statistics, and partner compensation.

Significant Differences

The panelists concluded that the major surveys are significantly different, with each survey tending to reflect the primary focus of its sponsoring organization. As a group, the major surveys offer their target audience of U.S. law firms valuable options to choose from when selecting a source for comparative information.