InhouseBlog.com » Cost Containment http://www.inhouseblog.com In-House Counsel News and Jobs Since 2005 Tue, 22 May 2012 23:13:20 +0000 en hourly 1 Business Integrity to unveil NDA QuickStart at 12th Annual InsideCounsel SuperConference http://www.inhouseblog.com/business-integrity/ http://www.inhouseblog.com/business-integrity/#comments Sat, 21 Apr 2012 13:54:45 +0000 Editors http://www.inhouseblog.com/?p=27601 Monday, April 24th kicks off the 12th annual Inside Counsel Super Conference. This year’s theme is: Elevate, Innovate, Change—From Legal Advisor to Strategic Partner. No longer just providing legal counsel, in-house attorneys have become strategic business partners within their companies. Supporting that theme, Business Integrity, a silver sponsor at the event, will be unveiling its [...]

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Monday, April 24th kicks off the 12th annual Inside Counsel Super Conference. This year’s theme is: Elevate, Innovate, Change—From Legal Advisor to Strategic Partner. No longer just providing legal counsel, in-house attorneys have become strategic business partners within their companies. Supporting that theme, Business Integrity, a silver sponsor at the event, will be unveiling its new ContractExpress QuickStart solution for contract automation and management. According to Business Integrity, NDA QuickStart package is a fast and effective way for corporate legal departments to automate the creation and management of non-disclosure agreements and confidentiality agreements, accelerating business.

ContractExpress brings self-service contract creation to business users by presenting them with an easy to use, browser based, business oriented questionnaire. ContractExpress’ approval process enforces compliance by allowing a business user to access a signature ready, locked PDF version of the NDA, but only if their answers are complete and compliant – as defined by Legal.

The latter functionality is already available in ContractExpress. The QuickStart bit applies to the implementation of the solution. Business Integrity’s team will work with you to automate your confidentially agreement template and train your legal and business staff, getting you off the ground “in less than a month”. In particular, state-of-the-art NDA content already configured for ContractExpress is available from Business Integrity’s content partner, Koncision Contract Automation.

Business Integrity is also offering a discount to anyone that signs up for a demo during the conference and subsequently signs up for the product by May 30th. To learn more stop by their table at the conference or email them at sales.us@business-integrity.com if you’re not going to attend.

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]]> http://www.inhouseblog.com/business-integrity/feed/ 0 Biglaw Billing Rates – Priciest Partners Had an Average Hourly Rate of $873 an Hour Last Year http://www.inhouseblog.com/biglaw_billing_rates/ http://www.inhouseblog.com/biglaw_billing_rates/#comments Tue, 17 Apr 2012 12:58:41 +0000 Editors http://www.inhouseblog.com/?p=27220 A new study shows a growing divide between law firm partners who charge the highest and lowest fees. Partners whose hourly fees put them in the top quarter of lawyers raised their billing rates 4.9 percent last year to an average of $873 an hour, the Wall Street Journal (sub. req.) reports. The rate increase was much smaller for partners whose fees put them in the bottom 25 percent. They raised hourly rates just 1.3 percent and charged an average of $204. “That disparity between who can raise prices—and who can't—spotlights a growing segmentation in the $100 billion corporate legal…

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Ouch! Don’t try to calculate what a simple phone call or email costs. It’s too painful and Biglaw billing rates are on the rise.

A new study shows a growing divide between law firm partners who charge the highest and lowest fees. Partners whose hourly fees put them in the top quarter of lawyers raised their billing rates 4.9 percent last year to an average of $873 an hour, the Wall Street Journal (sub. req.) reports.

[via: Priciest Partners Had an Average Hourly Rate of $873 an Hour Last Year at the ABA Journal]

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]]> http://www.inhouseblog.com/biglaw_billing_rates/feed/ 0 Alternative Fee Arrangements Continue to Grow http://www.inhouseblog.com/alternative_fee_arrangements-3/ http://www.inhouseblog.com/alternative_fee_arrangements-3/#comments Tue, 10 Apr 2012 12:21:04 +0000 Editors http://www.inhouseblog.com/?p=26806 With apologies to Mark Twain for the butchered paraphrase: Reports of the billable hour’s death have been greatly exaggerated. But fixed fees and other alternative billing arrangements are indeed slowly eroding hourly billing’s dominion over the $100 billion global corporate legal market. The WSJ took a look at the growth of such arrangements since the recession, in this story in today’s paper. Corporate clients like working off the clock for two reasons: it can save money on legal bills, and it offers greater predictability for in-house law departments trying to stick with their budget. Alternative fees are becoming more common even in areas such as litigation — once seen as a tricky thing to price out because of its unpredictability. “For us, it’s no longer a necessity just because of the recession. It’s now part of the normal process,” says Xerox Corp. general counsel Don H. Liu. Even big law firms, which were typically more immune to pricing pressure from clients, have expanded their offerings in this department. Their share of revenue from alternative-billing arrangements is expected to hit 13.4% this year, nearly double what it was in 2008, according to a Citi Private Bank survey of managing partners from 40 U.S. firms (see page 13 here). The economic downturn helped spur the wider embrace of alternative billings, as WSJ noted back in 2009. Its popularity only spread, as more companies took up novel ways of getting law firms to bid contracts, including the use of reverse online auctions. Mind you, the bulk of most legal work is still done through hourly billing, and not all GCs are on board with fixed fees or complex arrangements that award bonuses — or discounts — depending on the outcome of a matter. Then there is the approach taken by the elite Wall Street firm of Wachtell, Lipton, Rosen & Katz. Wachtell charges clients per transaction for its high-end services. The firm has been doing that for decades, and the approach is one many law firms used to take before the rise of the billable hour in the 1970s.

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Is your law department using alternative fee arrangements?

With apologies to Mark Twain for the butchered paraphrase: Reports of the billable hour’s death have been greatly exaggerated. But fixed fees and other alternative billing arrangements are indeed slowly eroding hourly billing’s dominion over the $100 billion global corporate legal market.

[via: Watch Out, Billable Hour: Alternative Fee Arrangements Continue to Grow at the WSJ Law Blog]

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]]> http://www.inhouseblog.com/alternative_fee_arrangements-3/feed/ 1 In-House Counsel Working to Maximize Outside Counsel Value http://www.inhouseblog.com/cost_containment-2/ http://www.inhouseblog.com/cost_containment-2/#comments Thu, 05 Apr 2012 12:56:03 +0000 Editors http://www.inhouseblog.com/?p=26592 As corporate law departments continue feeling pressure from management to justify costs, performance metrics for outside counsel matter as much as relationships with firms.

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As corporate law departments continue feeling pressure from management to justify costs, performance metrics for outside counsel matter as much as relationships with firms.

[via: In-House Counsel Working to Maximize Outside Counsel Value at CorpCounsel]

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]]> http://www.inhouseblog.com/cost_containment-2/feed/ 0 Alternative Fee Arrangements Are a Tool, Not a Strategy http://www.inhouseblog.com/alternative_fee_arrangements-2/ http://www.inhouseblog.com/alternative_fee_arrangements-2/#comments Thu, 22 Mar 2012 12:44:27 +0000 Editors http://www.inhouseblog.com/?p=25758 Earlier this year, I met Pat Lamb, one of our fearless leaders in the New Normal, for coffee near his office. Given his success in delivering high-quality legal services under alternative fee arrangements, I wanted to hear his thoughts about their use in practice. Pat emphasized that lawyers should be paid for successful outcomes and not for quantity of work. We talked about my own early experience with an AFA in which my outside counsel arrived at a flat fee by multiplying the number of hours they expected to put into the matter by their traditional hourly rate. We agreed…

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More thoughts on the appropriate use of alternative fee arrangements:

Earlier this year, I met Pat Lamb, one of our fearless leaders in the New Normal, for coffee near his office. Given his success in delivering high-quality legal services under alternative fee arrangements, I wanted to hear his thoughts about their use in practice. Pat emphasized that lawyers should be paid for successful outcomes and not for quantity of work.

[via: Alternative Fee Arrangements Are a Tool, Not a Strategy at the ABA Journal]

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]]> http://www.inhouseblog.com/alternative_fee_arrangements-2/feed/ 0 Law Firm Rates Continue Upward Climb http://www.inhouseblog.com/law_firm_rates-2/ http://www.inhouseblog.com/law_firm_rates-2/#comments Wed, 07 Mar 2012 11:04:22 +0000 Editors http://www.inhouseblog.com/?p=24849 Hourly billing rates increased last year, reaching an average of $661 for partners and senior counsel. The average for that group was $639 in 2010, according to an analysis by the Daily Report Online. The average for associates was $445 in 2011, compared to $439 in 2010. “Certainly hourly rates were alive and well in 2011,” the story says. “And, although the average cost for an hour's counsel has not increased at the same pace as gasoline and eggs, rates have continued to sneak upward past many indicators, even during the Great Recession of 2009." The publication compiled about 6,000…

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Forget gas prices, law firm rates keep on chugging upward in an inexorable fashion regardless of market conditions:

Hourly billing rates increased last year, reaching an average of $661 for partners and senior counsel. The average for that group was $639 in 2010, according to an analysis by the Daily Report Online.

[via: Hourly Billing Rates Continue Upward Climb; Partner and Senior Counsel Average Is $661 at the ABA Journal]

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]]> http://www.inhouseblog.com/law_firm_rates-2/feed/ 0 Clear Data on Rising Law Firm Rates as Firms Get Larger http://www.inhouseblog.com/law_firm_rates/ http://www.inhouseblog.com/law_firm_rates/#comments Tue, 24 Jan 2012 10:06:40 +0000 Editors http://www.inhouseblog.com/?p=22494 Want to know where law firm rates are going as law firms get larger? Rees Morrison has some data over at the Law Department Management Blog. [via: Clear data on the rising rates of law firms as they grow larger at the Law Department Management Blog] Like this post? Subscribe to InhouseBlog's FREE weekly email [...]

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Want to know where law firm rates are going as law firms get larger? Rees Morrison has some data over at the Law Department Management Blog.

[via: Clear data on the rising rates of law firms as they grow larger at the Law Department Management Blog]

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]]> http://www.inhouseblog.com/law_firm_rates/feed/ 0 WSJ column proposes solution to rising legal fees http://www.inhouseblog.com/rising_legal_fees/ http://www.inhouseblog.com/rising_legal_fees/#comments Fri, 20 Jan 2012 08:22:24 +0000 Editors http://www.inhouseblog.com/?p=22289 It’s simple math, according to John O. McGinnis and Russell D. Mangas. The high cost of law school leads to a limited supply of lawyers, and results in big legal bills for clients and few legal services for the middle class.

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A solution to rising legal fees? Or one that will lead to even more new lawyers looking for work?

It’s simple math, according to John O. McGinnis and Russell D. Mangas. The high cost of law school leads to a limited supply of lawyers, and results in big legal bills for clients and few legal services for the middle class.

[via: WSJ column proposes solution to rising legal fees at InsideCounsel]

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]]> http://www.inhouseblog.com/rising_legal_fees/feed/ 0 An in-your-face-firm view of what law departments ought not to be charged for http://www.inhouseblog.com/cost_containment/ http://www.inhouseblog.com/cost_containment/#comments Wed, 11 Jan 2012 13:33:54 +0000 Editors http://www.inhouseblog.com/?p=21404 “Whatever does not add tangible value to client projects is overhead that clients should not be directly or indirectly paying for.” That was the aggressive tagline on a slide by Lee Cheng, the general counsel of Newegg. I did not...

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Is your law department paying for things it should not be? Cost containment will be a key driver in 2012:

“Whatever does not add tangible value to client projects is overhead that clients should not be directly or indirectly paying for.” That was the aggressive tagline on a slide by Lee Cheng, the general counsel of Newegg.

[via: An in-your-face-firm view of what law departments ought not to be charged for at the Law Department Management Blog]

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]]> http://www.inhouseblog.com/cost_containment/feed/ 0 Law Firm Billing Rates Increase Only Slightly http://www.inhouseblog.com/law_firm_billing_rates-2/ http://www.inhouseblog.com/law_firm_billing_rates-2/#comments Wed, 21 Dec 2011 10:19:59 +0000 Editors http://www.inhouseblog.com/?p=21054 Large law firms increased billing rates by an average of 4.4 percent in 2011, the third year of modest increases. The National Law Journal surveyed the nation’s 250 largest law firms to determine the average billing rate, a blend of associate and partner rates. The increase was 2.5 percent in 2009 and 2.7 percent in 2010. Those increases “paled in comparison to the go-go, pre-recession days when firms could charge between 6 and 8 percent more each year,” the story says.

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An holiday gift for all in-house counsel – law firm rates billing rates are not increasing like they used to:

Large law firms increased billing rates by an average of 4.4 percent in 2011, the third year of modest increases.

[via: Law Firm Billing Rates Increase Only Slightly for Third Straight Year at the ABA Journal]

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]]> http://www.inhouseblog.com/law_firm_billing_rates-2/feed/ 0 Startup Analyzes Corporate Law Department Spending http://www.inhouseblog.com/law_department_spending/ http://www.inhouseblog.com/law_department_spending/#comments Thu, 17 Nov 2011 15:39:23 +0000 Editors http://www.inhouseblog.com/?p=19005 Technology startup Sky Analytics opened its spending benchmarking service for corporate legal departments this week, with a focus on simplicity.

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Technology startup Sky Analytics opened its law department spending benchmarking service for corporate legal departments this week, with a focus on simplicity.

[via: Startup Analyzes Corporate Legal Department Spending at CorpCounsel]

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]]> http://www.inhouseblog.com/law_department_spending/feed/ 0 GC Mark J. Ohringer is ‘Law Firms’ Biggest Competitor’ http://www.inhouseblog.com/mark_j_ohringer/ http://www.inhouseblog.com/mark_j_ohringer/#comments Tue, 01 Nov 2011 13:22:25 +0000 Editors http://www.inhouseblog.com/?p=18100 Fed-up with “sky-high” fees at outside firms, Jones Lang LaSalle general counsel Mark J. Ohringer says he now spends 75 percent of his budget on non-law firm resources. “I’m law firms’ biggest competitor,” Ohringer said during a program at the 2011 Futures Conference on Friday, “and I don’t think they see it that way.” Jones Lang, a global real estate and investment management firm, has boosted its in-house capabilities by 60 lawyers in the past few years, and Ohringer says he won’t hesitate to add more as the company’s needs increase. Speaking at the conference held at Chicago-Kent Law School…

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Fed-up with “sky-high” fees at outside firms, Jones Lang LaSalle general counsel Mark J. Ohringer says he now spends 75 percent of his budget on non-law firm resources. “I’m law firms’ biggest competitor,” Ohringer said during a program at the 2011 Futures Conference on Friday, “and I don’t think they see it that way.”

[via: ‘I’m Law Firms’ Biggest Competitor,’ GC Says at the ABA Journal]

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]]> http://www.inhouseblog.com/mark_j_ohringer/feed/ 0 Study shows rise in law firm billing rates http://www.inhouseblog.com/law_firm_billing_rates/ http://www.inhouseblog.com/law_firm_billing_rates/#comments Tue, 01 Nov 2011 09:29:30 +0000 Editors http://www.inhouseblog.com/?p=18058 As more companies make the push to cut outside spend and bring more legal work in-house, law firms are starting to feeling the crunch.

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As more companies make the push to cut outside spend and bring more legal work in-house, law firms are starting to feeling the crunch.

[via: Study shows rise in law firms’ billing rates at InsideCounsel]

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]]> http://www.inhouseblog.com/law_firm_billing_rates/feed/ 0 Legal Cost Containment – No Payment for Work by 1st Years http://www.inhouseblog.com/legal_cost_containment/ http://www.inhouseblog.com/legal_cost_containment/#comments Tue, 18 Oct 2011 08:33:23 +0000 Editors http://www.inhouseblog.com/?p=16884 Corporate legal departments are beginning to take a hard line on costs these days, and one of the first places they’re cracking down is in paying for the high hourly costs of first- and second-year law firm associates.

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Legal cost containment doesn’t just mean giving your in-house team more work:

Corporate legal departments are beginning to take a hard line on costs these days, and one of the first places they’re cracking down is in paying for the high hourly costs of first- and second-year law firm associates.

[via: Corporate legal departments refusing to pay for work by first-year associates at InsideCounsel]

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]]> http://www.inhouseblog.com/legal_cost_containment/feed/ 1 Lowering Legal Spending by Increasing In-House Workloads http://www.inhouseblog.com/lowering_legal_spending/ http://www.inhouseblog.com/lowering_legal_spending/#comments Mon, 17 Oct 2011 07:05:58 +0000 Law.com http://www.inhouseblog.com/?p=16594 Corporations across America have spent a lot of time trimming the fat during the last several years. But when it comes to their in-house law departments, bulking up the workload is increasingly being seen as the best way to do more with less.

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Feeling busier? You are not alone – as corporations bent on lowering legal spending are doing so by increasing the work that you do:

Corporations across America have spent a lot of time trimming the fat during the last several years. But when it comes to their in-house law departments, bulking up the workload is increasingly being seen as the best way to do more with less.

[via: Lowering Legal Spending by Increasing In-House Workloads at CorpCounsel]

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]]> http://www.inhouseblog.com/lowering_legal_spending/feed/ 0 Top Ten Tips for Leveraging Legal Research Technology to Control Legal Costs http://www.inhouseblog.com/containing_costs_with_legal_research_technology/ http://www.inhouseblog.com/containing_costs_with_legal_research_technology/#comments Mon, 26 Sep 2011 18:17:54 +0000 Editors http://www.inhouseblog.com/?p=12687 Looking for cost containment tips? Every legal department should be – here are some tips to leverage legal research technology to contain costs. Lydia Flocchini of Thomson Reuters (home of WestLawNext) has some related tips in an article at the Association of Corporate Counsel: In this ever-changing and leaner economic environment, corporate legal departments expect [...]

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Looking for cost containment tips? Every legal department should be – here are some tips to leverage legal research technology to contain costs. Lydia Flocchini of Thomson Reuters (home of WestLawNext) has some related tips in an article at the Association of Corporate Counsel:

In this ever-changing and leaner economic environment, corporate legal departments expect outside counsel to deliver more effective and efficient legal services at a lower cost. Simultaneously, in-house counsel are investigating expense management initiatives as well as solutions for increasing efficiency and productivity. One way both are achieving these goals is by leveraging cutting-edge legal research technology.

[via Top Ten Tips for Leveraging Cutting-Edge Legal Research Technology to Control Legal Costs and Drive Client Value - Association of Corporate Counsel (ACC)]

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]]> http://www.inhouseblog.com/containing_costs_with_legal_research_technology/feed/ 0 General counsel survey highlights cutbacks and ‘production line’ approach http://www.inhouseblog.com/general_counsel_survey/ http://www.inhouseblog.com/general_counsel_survey/#comments Wed, 14 Sep 2011 08:45:09 +0000 Editors http://www.inhouseblog.com/?p=9852 Rising demands on businesses to cuts costs will see general counsel dramatically re-engineer their legal functions over the next decade, according to new research from Oxford University's Said Business School. The report was compiled from interviews with fifty-two general counsel from a range of bluechip businesses in the US and the UK, including Citi, BP, Barclays, Goldman Sachs, Shell, HSBC and Sony Ericsson.

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General counsel are making it clear – costs are going to be cut and legal services delivery will have to change in the coming years:

Rising demands on businesses to cuts costs will see general counsel dramatically re-engineer their legal functions over the next decade, according to new research from Oxford University’s Said Business School. The report was compiled from interviews with fifty-two general counsel from a range of bluechip businesses in the US and the UK, including Citi, BP, Barclays, Goldman Sachs, Shell, HSBC and Sony Ericsson.

[via: Survey of top general counsel highlights panel cutbacks and 'production line' approach at LegalWeek]

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]]> http://www.inhouseblog.com/general_counsel_survey/feed/ 0 How Law Departments Can Do More for Less http://www.inhouseblog.com/law-departments/ http://www.inhouseblog.com/law-departments/#comments Thu, 30 Jul 2009 11:50:15 +0000 Law.com http://www.inhouseblog.com/?p=1123 These days, little is of more concern to a company’s legal function than its ability to control the cost of outside legal services. The person who serves as the top manager of a company’s outside lawyers and law firms is often the law department business manager. If performed well, such a position will add significant [...]

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These days, little is of more concern to a company’s legal function than its ability to control the cost of outside legal services. The person who serves as the top manager of a company’s outside lawyers and law firms is often the law department business manager. If performed well, such a position will add significant value to the management of a company’s legal function, says consultant James Wilber, who describes how a manager with the proper skills and authority can be cost-effective.

[via How Law Departments Can Do More for Less]

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]]> http://www.inhouseblog.com/law-departments/feed/ 0 Corporate Counsel Are Reducing Ranks of Secondary Outside Firms, Survey Reports http://www.inhouseblog.com/corporate_counsel_are_reducing_ranks_of_secondary_outside_firms/ http://www.inhouseblog.com/corporate_counsel_are_reducing_ranks_of_secondary_outside_firms/#comments Tue, 21 Jul 2009 07:02:09 +0000 Law.com http://www.inhouseblog.com/?p=1076 Corporations are using fewer law firms because short-staffed corporate legal departments have little time to manage outside firms, not just because consolidating work is cheaper, according to a new law firm survey by BTI Consulting Group. Also, companies’ increasing demands for flexibility in billing, staffing and communicating create opportunities for smaller firms, and BTI research [...]

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Corporations are using fewer law firms because short-staffed corporate legal departments have little time to manage outside firms, not just because consolidating work is cheaper, according to a new law firm survey by BTI Consulting Group. Also, companies’ increasing demands for flexibility in billing, staffing and communicating create opportunities for smaller firms, and BTI research shows the same companies making a marked migration to smaller firms.

[via Corporate Counsel Are Reducing Ranks of Secondary Outside Firms, Survey Reports.]

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]]> http://www.inhouseblog.com/corporate_counsel_are_reducing_ranks_of_secondary_outside_firms/feed/ 0 A blook — blog book — on management of outside counsel http://www.inhouseblog.com/blook--blog-book--management-counsel/ http://www.inhouseblog.com/blook--blog-book--management-counsel/#comments Thu, 02 Apr 2009 06:47:21 +0000 Editors http://www.inhouseblog.com/2009/04/blook--blog-book--management-counsel.html Rees Morrison, consultant and blogger, has compiled, organized, commented on, indexed, and back-referenced 471 of his thoughtful posts on outside counsel management.  The 290-page PDF, which you can find much more about on his website, ReesMorrison.com, normally costs $75 but readers of InhouseBlog are entitled to a $15 discount.  The six chapters cover (1) when do you [...]

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Rees Morrison, consultant and blogger, has compiled, organized, commented on, indexed, and back-referenced 471 of his thoughtful posts on outside counsel management.  The 290-page PDF, which you can find much more about on his website, ReesMorrison.com, normally costs $75 but readers of InhouseBlog are entitled to a $15 discount.

 The six chapters cover (1) when do you need outside counsel, (2) how do you find them, (3) what billing arrangements make sense, (4) how do you manage them, (5) how do you evaluate their performance, and (6) what other considerations apply.  Within each chapter, the posts are organized according to a two-level taxonomy.  Write Rees with any questions you have about the blook.

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]]> http://www.inhouseblog.com/blook--blog-book--management-counsel/feed/ 0 GCs Give More Scrutiny to Legal Bills, Spurring More Fee Disputes http://www.inhouseblog.com/gcs-give-scrutiny-legal-bills-spurring-fee-disputes/ http://www.inhouseblog.com/gcs-give-scrutiny-legal-bills-spurring-fee-disputes/#comments Thu, 14 Aug 2008 11:47:56 +0000 Editors http://www.inhouseblog.com/2008/08/gcs-give-scrutiny-legal-bills-spurring-fee-disputes.html Is your law department in cost-cutting mode? Los Angeles lawyer Gerald Knapton has been there and done that. He’s an expert in fee disputes and cost containment, and in this economic climate, attorneys with his skills are in high demand: “I’m busier now than I have ever been,” Knapton told the Daily Journal (sub. req.). [...]

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Is your law department in cost-cutting mode? Los Angeles lawyer Gerald Knapton has been there and done that. He’s an expert in fee disputes and cost containment, and in this economic climate, attorneys with his skills are in high demand:

“I’m busier now than I have ever been,” Knapton told the Daily Journal (sub. req.). Knapton says the reason is the inefficient law firm billing model that charges clients for inexperienced associates. But several others interviewed by the Daily Journal pointed to the economy and said it is leading to an increase in billing disputes.

GCs Give More Scrutiny to Legal Bills, Spurring More Fee Disputes | ABA Journal – Law News Now

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