law firm of the year 2007

firm hourly rates have been since 2006 and the time is now to collect fees, according to data in a new survey of in-house lawyers. The survey shows that it is safe for law firms to adapt their prices by 5.3% to 6% on an hourly basis for their corporate clients.

The survey is full of good news for law firms. It was developed by the Association of Corporate Counsel and Serengeti Law, the # 1 place for the question and e-billing, with headquarters in Bellevue, WA. Behalf of the "2007 ACC / Serengeti Managing Outside Counsel Survey Report," it was the largest survey of its kind with the responses of 263 companies legal departments.

In-house Corporate Counsel with an increase of 5.3% on average:

"" For the year 2006, the average change in external hourly rates, an increase of 6.0%, higher than last year's increase of 5.2% (compared with an increase of 5.7% in 2004, 5, 0% in 2003, 5.4% in 2002 and 6.3% in 2001). The percentage increase in the hourly rates are back up top to a level higher than in the past five years. As in previous years, in-house consultants were unrealistically optimistic about their ability to put a lid on increases in hourly rates, with the actual increase (6.0%) more than last year's forecast (4.8%). The average hourly wage increase is forecast for the year 2007 (5.3%) higher than last year of the forecast (4.8%), but lower than last year's actual increase (6.0 %).""

The remaining amount of the fee-setting power preferred law firms:

In the past, in-house consultants had some success in complying with the hourly rate increases in check. "" But in the past three years, this trend has reversed, with higher increases in hourly rates. In addition, in-house consultant project an even greater increase in hourly wages in the coming years than they projected last year. Since in-house counsel have underestimated how increased, it is likely that the increase will be even higher next year. ""

"" This new development may be indicative of a shift in the balance of bargaining power between the in-house counseling, the high quality of work and their external legal advisers, which it. "" Most (83%) in-house legal departments are tiny, with 10 or fewer lawyers, and they in general: home grown paper and manual systems for collecting information on legal issues. Many also admit that their systems lack basic safeguards, such as the verification of data, formulas and tables, and the maintenance of an audit trail.

Other results were good news for law firms:

* Dominance of hourly rates. A larger proportion of in-house counsel - 95% - keep up with the standard hourly rate for a large part of their work outside the law. Almost half of the in-house lawyers that they do not involve the use of alternative fee arrangements,

* Little-client supervision. 75% of the In-House Council is not actively or systematically mange outside advice on the budget for litigation or require that employees have at least 5 years experience.

* "Convergence" will be removed. 75% of firms do not use "" convergence, "" reducing the number of law firms with which a company works on a regular basis. "" Convergence "does not seem to be gaining momentum, the survey found, because the tactic does not meet the expectations. The tactic is used primarily for large enterprises.

* Cutting taxes is not the top priority customers. The most pressing problem, in-house advisers is the persecution of the activities that have legal implications. They are busy with Sarbanes-Oxley and high academic and executives of companies in-house consultants. These questions are the "In-House Council more assistance from outside, and less sensitive to higher hourly rates." "

* Few companies RFPs. 76% is not a request for proposals last year. "" One reason that this practice has gained momentum, the historic low firm responses to RFPs. In recent years, the response rate of approximately two responses for each RFP. "

* The expenditure is for law firms. "" The median percentage of outside legal expenses in relation to company revenue higher than last year. This year, on average, enterprises, 38% of their worldwide sales outside legal spending. "

Marketing Consulting

There is a lot of sales at law firms, for business customers. About half of the in-house counseling now declare that they have terminated relationships with some of its external consultants in the previous year, the openings for new firms to their work. Specific reasons for the termination nor with the expectations of customers, costs were too high, poor work product or results, poor communication and personality issues.

This means that law firms with corporate clients, efforts to keep them. "" An important message for law firms is that they should refocus at least part of the time and money that they are spending on new client marketing, to assess and existing customers. "

About the Survey

Seven years ago, Serengeti Law began surveying members of the ACC every year. A record number of 263 law departments responded this year, what businesses in the manufacturing, healthcare, banking / securities / Financial Services, Consumer Products and Retail Software / Internet. Respondents, the General Counsel as 62% of respondents, and an assistant general counsel / staff attorney "as 11%.

For the purposes of the survey, company size is defined as follows based on the annual worldwide turnover for the year 2006:

* "" Small "company with 100 million U.S. dollars or less.

* "" Medium "" Companies with more than 100 million U.S. dollars to over 1 billion U.S. Dollar.

* "" Large "firms with more than 1 billion U.S. Dollar.

With these definitions, the breakdown of respondents by size of enterprise is: "small" company-28, 4%, "medium" companies 38.4%, and "large" companies 33.2%.

Small firms have a median of 4 law firms, medium firms, 8 firms and large companies have 15 firms. Median external expenditure changed considerably, with small businesses to $ 300,000, medium-sized companies at $ 1.18 million, and large companies at $ 3 million.

Serengeti Tracker is the top-ranking system for the cause and e-billing at the companies and firms, as well as the most widely used system, according to recent polls. Through a Web-based platform, 180 + legal departments process invoices, budgets, status reports and documents from 100% of outside law firms.

The 150-page 2007 ACC / Serengeti Managing Outside Counsel Survey Report is available on a CD for $ 750 to http://www.serengetilaw.com/Survey/default.htm. Customers, the ACC members can for $ 500.

By Larry Bodin, a business development consultant based in Glen Ellyn, IL. He has helped law firms generate millions in new revenue by developing strategies, conducting business development retreats and individually coaching attorneys. He can be reached http://www.LarryBodine.com, and Lbodine@comcast.net 630.942.0977.