Gary Ruff, general counsel of Tenet Healthcare, makes some comments in Corp. Bd. Mbr., Vol. 12, 2nd Quarter 2009 at 42, about the new attitude of law firms in response to the economic doldrums. Ruff says that “They’re willing to consider a variety of fee arrangements, as long as it’s…
My article just came out in the National Law Journal, June 12, 2009, on incumbent law firms. I defined them as firms that (i) have represented you for several years (ii) in multiple matters (iii) for significant fees. I think five years of representation is a minimum to be anointed…
Put this in your pipe and smoke it. Let’s assume a law firm is handling several matters at the same time for a law department. Let’s assume they agree that periodically, perhaps every fifth month, the firm describes for each matter what it did but not its hours, rates, or…
Maybe the rumors of the death of online auctions for outside counsel are premature. It has been reported that Dell, at least its European legal function, is conducting a review of its external counsel “by purely electronic means according to a set of strict rules.” This from Corp. Counsel, Vol.…
“If just a handful of legal departments within the Fortune 500 were to agree to use a publicly available law-firm evaluation system, it would be a tremendous resource that would benefit everyone who hires outside counsel.” Jeff Carr, the hyperactive general counsel of FMC Technologies, writes this in the ACC…
From a panel I moderated at the SuperConference, two thoughtful questions arose. How important is it that the law department have worked extensively with the law firm that provides a seconded lawyer? The consensus view of the panelists was that some kind of closeness greatly increases the chances that the…
Advertising agencies are being pushed to adopt value billing instead of hourly billing, according to The Economist, May 16, 2009 at 72. Coca-Cola has started a “value-based” compensation system for its advertisers. Under the new system, Coke guarantees to cover advertising agencies’ costs, plus a bonus of up to 30…
For your next competitive bid, ask the firms to submit two proposals. The second one should be blinded, the name of the firm and all information identifying the firm being concealed. I hear you muttering, “You are crazy, Rees!” But think of the gross impressions and prejudices lawyers have of…
The percentage of a department’s fees paid to its top law firms is one common way to describe law firm concentration. For example, 75 percent of a department’s fees went to 10 percent of its firms (See my post of May 3, 2006: at UPS, 25 core law firms represented…
Among the many ways managers decide which firm or lawyer to retain, the in-person interview is probably the most effective. As with interviews of prospective hires, many techniques help those managers do a better job (See my post of Nov. 24, 2007: coaches on how to interview; Feb. 8, 2006:…