Maybe the question should be, how much should you be budgeting for legal research? The difference is knowing how to get to the targeted goal. Law firms are looking closely at products and services that are no longer relevant. Yes, there may be some new resources that are needed, but in order to stay competitive, unnecessary expenses need to go.
How do you figure out the best way to remove the excess?
- Knowledge of the subject matter to plan and strategize.
- Review the past to compare – what has worked and what hasn’t.
- Seek out the solution and get management support.
- Time and data will work to your advantage.
It is also important to understand why changes need to be made. Some firms are fortunate to get reimbursed for a portion of legal research costs, but the recovery rate is declining as clients become more strict about the charges they’re willing to pay. You can be sure that your clients are reviewing their budgets at this time as well.
What do you think your clients might be focusing on to cut back on expenses?
- Reduce office space?
- Layoffs/Outsource services – reception, filing, business development?
- Less business travel, more virtual meetings?
- Services that could be used every two or three years?
Many times it is about saving money. I don’t believe clients are necessarily looking to reduce legal fees, not intentionally anyway. If anything, legal work could increase due to all of the changes going on. Since clients are cutting back, most likely they will want a firm that is interested in operating the same way.
Any business would want a partner who is aligned with their interests and able to produce results. Knowing what needs to be done is part of the process. The trickier part is the commitment and execution. Those decisions may not always be popular but sometimes are necessary. Are you ready to make the best decisions on those non-essential expenses?
Legal Counsel Consulting will analyze and negotiate legal research contracts to get the necessary resources at the best rates.
If there is any way I can help or if you would like to schedule a brief conversation, please feel free to contact me.