Selecting a Law Firm: The Client-Centric Approach
By James J. Stapleton, Managing Principal of Client Sciences
Choosing a law firm is a significant decision for any company. How you approach this selection process can dramatically affect both the quality of legal services you receive and the financial terms you negotiate. This article contrasts two distinct approaches: the method that law firms generally prefer and the strategy that benefits clients the most.
The Law Firm Selection Process as Preferred by Law Firms
Influence Through Passive Exposure Law firms often desire that you become familiar with their firm through various passive channels. This includes exposure via media appearances, speaking engagements, their website, awards, citations, and directory listings. By immersing you in their brand’s visibility and reputation, they hope to build brand loyalty and sway your decision-making through indirect influence rather than direct engagement. They would prefer that you come to the conclusion that they are the right firm, rather than having to argue their case. In short, they want you to chase them, rather than the other way around.
Limiting Your Options Ideally, firms want you to consider a minimal number of options. The optimal number is one, preferably just their firm. Fewer competitors mean fewer concessions they need to make and a higher chance of securing the engagement at profitable rates. They prefer a personal connection over a structured, competitive proposal process, where they can rely upon a relationship that may sidestep the complexities of formal RFPs and leverage the power of the relationship to their benefit.
Working Sessions Over Formal Proposals Law firms favor engaging with potential clients through informal discussions or working sessions rather than a formal RFP process. They want to understand your needs in a less structured setting, which allows them to tailor their pitch more fluidly and often leads to a more favorable outcome for them.
Agreement to Their Terms Firms would like you to agree to their proposed hourly rates and payment terms without extensive (or ideally any) negotiation. By setting the terms upfront and securing a commitment early, they reduce the likelihood of protracted discussions about costs both initially and over the course of the engagement, and it increases the odds of a profitable engagement.
Immediate Commitment Law firms prefer clients to sign engagement letters and provide retainers quickly. This streamlined approach helps them secure the client’s business without further delays or competing offers.
How Clients Should Approach the Selection Process
Develop a Comprehensive RFP. Clients should craft a detailed Request for Proposal (RFP) that clearly outlines their needs, preferences, and expectations. The RFP should include preferred cost structures, a summary of legal needs, and service preferences. This document will guide firms in presenting their proposals and ensure that you receive information tailored to your specific requirements.
Explore a Range of Options Clients benefit from researching and considering a variety of law firms, as well as alternatives to traditional firms. By evaluating a broad spectrum of options, including potentially cost-effective, yet high-quality alternatives, clients can ensure they are not limiting themselves to just a few choices. For each discrete legal service, we suggest that you consider at least seven different sources to get a comprehensive view of available options.
Use a Competitive Evaluation Methodology Implement a competitive evaluation process where each firm is assessed using consistent criteria. Although evaluating proposals can be inherently subjective, aim to make the process as objective as possible. This structured approach helps in comparing firms on a level playing field and ensures a fair assessment.
Assess Key Attributes Focus on the attributes that are most critical to your in-house counsel. This might include factors such as legal strategy, formal expertise, industry experience, client service quality, and alignment with your company’s values and needs. Bonus points if a law firm has the business acumen to aid you above and beyond legal work.
Make an Empirical Decision After evaluating multiple alternatives, make a decision based on empirical evidence and careful consideration. Key criteria should include fit with your organization, fee structures, service quality, team composition, client satisfaction, understanding of your business issues, and the firm’s strategic and creative thinking. Consider how well the firm understands your company’s culture, management style, priorities, and industry.
Conclusion
Whether you end up selecting the same firm using either approach, the client-centric method gives you greater control over the selection process and its outcomes. By conducting a comprehensive RFP, exploring multiple options, and using a competitive evaluation process, you can secure a more cost-effective and tailored legal solution. While law firms might prefer a less formal and more exclusive approach, clients who take charge of the process often achieve better terms and a stronger alignment with their legal needs. Remember, firms are eager to compete for your business, and a structured approach can help ensure you get the best value and service.
James J. Stapleton is the Managing Principal of Client Sciences. Mr. Stapleton spent several decades building multiple AmLaw 100 law firms and large accounting firms including PwC and Arthur Andersen, during which time he managed over 7,500 transitions between law firms on behalf of clients.
Client Sciences works with clients to reduce legal fees, optimize relationships with your law firms and streamline your internal legal processes. Mr. Stapleton can be reached at 408.440.7660 or via e-mail at james.stapleton@clientsciences.com.
