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Although dramatic changes in law's economic landscape have conferred far greater bargaining leverage and purchasing power on clients, in budget discussions with outside law firms, many in-house counsel just aren't asking the right questions. Clients simply cannot optimize budget planning and management without knowing the answers to these five questions:
1. Has the Budget Process Included Input from Primary Client Stakeholders?
Going beyond negotiations among lawyers on the law firm and client side, the budget must reflect input from client constituents who have “skin in the game.” This is especially important where a client business unit is paying for the legal services even though the company legal department is assigning the work to outside counsel. What may seem important (or acceptable in cost) to in-house counsel may not have the same level of acceptance by line management and business group “clients.”
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