Some time ago, clients recognised that by downsizing the number of firms on their panel, they could buy legal services more effectively. Now they are wanting to down-size their legal budgets full stop. The power driving this cost-cutting diet is the financial director, supported by the procurement department. Law firms urgently need to realise a strategy to preserve profitability and avoid the slide towards price competition.
FTSE 100 companies are consistent in their praise for the service the legal profession provides; they are impressed with the depth of resource and expertise that allows a 24/7 service in the biggest firms, the professional standards that are so meticulously maintained and the efforts particular partners go to to provide a good service. So if everything is so rosy in the garden, why the need for a sponsored slim? Unfortunately, in the competitive dynamics of the modern market, professionalism and expertise is not enough.
