| Primus inter pares |
The key areas covered are standing out from the crowd – how the most successful firms are weathering the economic downturn by focusing on a handful of critical service factors and cutting back on areas clients don’t perceive as important; the billable hour – how the balance of bargaining power has changed and what clients are doing to take advantage; and adding value – which marketing activities add, or in some cases, detract value. The report is the product of six months of research. Face-to-face interviews were conducted with general counsel and heads of legal of 50 FTSE-100 listed companies along with telephone interviews with those of 30 FTSE-250. The respondents each selected two firms to make comment on and score - a ‘First Among Equals’ firm and a panel firm. Their verbatim comments refer to 84 different firms with most references offering insight and opinion about the UK’s top 30 firms.
 Foreword Professor Stephen Mayson, Director of the Legal Services Policy InstituteThis report contains a wealth of detail and makes fascinating reading. It is published just as law firms’ financial results for 2008-09 are being released. What these results bring home is how sensitive law firms' profitability is to falls in turnover, with a large number of firms reporting declines in both. If a firm has been used to a net margin of 30%, and turnover falls by 10% then, other things being equal, profitability will fall by a third – and of course if costs have continued to rise, the squeeze will be even greater. Some firms that have been able to maintain or even increase their fee income are nevertheless reporting a fall in profits. In a market that has too many firms and too many lawyers for the work available, and too many partners for the profit being made, it's absolutely crucial that firms focus on delivering value for money to clients and managing the cost base in the face of declining work volume and tough competition. DOWNLOAD THE FULL FOREWORD AND LIST OF CONTENTS…
Other Nisus Consulting FTSE studies: Mission Impossible, published March 2006 The Trusted Advisor, published December 2007 |
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Containing feedback from 50 of the FTSE-100 and another 30 of the FTSE-250, Primus inter pares offers insight on improving service and value delivery in the legal profession.
