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The Business Intelligence to Competitive Intelligence Continuum
Law firm leaders are faced with myriad decisions every day, from the mundane to the strategic. Each is an exercise in risk management. Not too many years ago, good decisions made by smart lawyers were sufficient. Law firms were raising their fees substantially every year and attorney incomes were soaring.
Those good old days ended for most firms shortly after 2008, when the market for corporate legal services shifted from being supply-driven to demand-driven. Now, corporate buyers are largely calling the shots, and excellent decision-making by law firm leaders is required as firms work to maintain their profitability.
At the same time, a host of Alternative Legal Service Providers (ALSPs) has arisen, giving corporate legal departments three alternatives for most work: keep using their law firms, bring it in-house, or use one of the ALSPs. In many cases, the buyers are “disaggregating” large disputes and deals, allocating some of the work to law firms (e.g., IP prosecution), sending some to the ALSPs (e.g., eDiscovery) and keeping some in-house (e.g., overarching legal strategy). For more on ALSPs, see, “Alternative Legal Services Providers: Changing Buyer Perceptions,” in the June 2017 issue of A&FP.
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