Page 96 - 2019 - Leaders in Legal Business (q)
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benchmarking outside counsel’s value and the desire to streamline operations, improve
efficiencies, find better ways to structure both fee arrangements and budgeting, and increase
predictability and transparency.
When souring legal services, procurement commonly takes a process-driven, business-to-
business approach used in other “categories” or areas of spending. Legal procurement supports in-
house counsel with decision-grade data and develops the purchasing strategy, process, and criteria,
as well as in negotiation and contract development phases, engagement letter, retainer, or
framework agreements. Typically, procurement issues requests for proposals (RFPs) and manages
the proposal process. This can take the form of matter-specific RFPs or panel RFPs for a group of
preferred providers.
Many legal procurement professionals today are also responsible for fee negotiations.
Procurement’s expertise in negotiating favorable economics and contracts for their employers has
the potential to put law firms under significant and often new pressure to deliver more for less in
the future.
Procurement is often also responsible for monitoring firms’ billing behavior and adherence
to billing guidelines. Legal procurement checks firms’ compliance to billing agreements, and —
if necessary — intervenes. What’s more, procurement conducts post-purchase performance
evaluations. The above-mentioned GlaxoSmithKline case study describes the pharmaceutical
company’s approach of firm evaluations, asking both in-house counsel and outside counsel to
evaluate outside counsel’s performance on a given matter using a set number of dimensions (such
as overall management of a matter).3
Does Procurement Influence the Purchasing of Your Type of Legal Services?
Legal procurement professionals typically source and manage “ancillary” legal services
including e-Discovery, court reporting, medical records, or registered agent services. They are
often responsible for shortlisting the providers, evaluating the offers, and even selecting the
providers.
Routine legal services such as document review and due diligence are also commonly
sourced by legal procurement. However, it is more common that in-house counsel are involved in
shortlisting different providers and making the final decision.
At more and more companies, legal procurement is even involved in sourcing complex,
high-value, high-stakes legal services. It typically leads the procurement process, ensuring that
robust criteria for evaluation and selection are established and applied in compliance with
corporate policies. Today, procurement is also regularly involved in sourcing, managing, and
influencing so-called “bread and butter” legal services (those between high-stakes work and more
routine, repetitive work).
Procurement is involved in a broad range of legal services from litigation, transactional,
and — to a somewhat lesser degree — advisory work, in a wide range of practice areas: from
commercial law, M&A, real estate, and employment, to intellectual property law, and more.
While legal procurement professionals often decides on ancillary legal services providers,
they rarely — if ever — make the final decision on which firm to choose, nor do they have the
ability to veto in-house counsel’s decision. Although procurement may make suggestions about
firms to invite to tender for work, it is generally the legal department’s prerogative to name the
firms it deems capable and appropriate to do the work, and to establish which legal and subject
3 See Gardner & Silverstein, supra note 2.
81
efficiencies, find better ways to structure both fee arrangements and budgeting, and increase
predictability and transparency.
When souring legal services, procurement commonly takes a process-driven, business-to-
business approach used in other “categories” or areas of spending. Legal procurement supports in-
house counsel with decision-grade data and develops the purchasing strategy, process, and criteria,
as well as in negotiation and contract development phases, engagement letter, retainer, or
framework agreements. Typically, procurement issues requests for proposals (RFPs) and manages
the proposal process. This can take the form of matter-specific RFPs or panel RFPs for a group of
preferred providers.
Many legal procurement professionals today are also responsible for fee negotiations.
Procurement’s expertise in negotiating favorable economics and contracts for their employers has
the potential to put law firms under significant and often new pressure to deliver more for less in
the future.
Procurement is often also responsible for monitoring firms’ billing behavior and adherence
to billing guidelines. Legal procurement checks firms’ compliance to billing agreements, and —
if necessary — intervenes. What’s more, procurement conducts post-purchase performance
evaluations. The above-mentioned GlaxoSmithKline case study describes the pharmaceutical
company’s approach of firm evaluations, asking both in-house counsel and outside counsel to
evaluate outside counsel’s performance on a given matter using a set number of dimensions (such
as overall management of a matter).3
Does Procurement Influence the Purchasing of Your Type of Legal Services?
Legal procurement professionals typically source and manage “ancillary” legal services
including e-Discovery, court reporting, medical records, or registered agent services. They are
often responsible for shortlisting the providers, evaluating the offers, and even selecting the
providers.
Routine legal services such as document review and due diligence are also commonly
sourced by legal procurement. However, it is more common that in-house counsel are involved in
shortlisting different providers and making the final decision.
At more and more companies, legal procurement is even involved in sourcing complex,
high-value, high-stakes legal services. It typically leads the procurement process, ensuring that
robust criteria for evaluation and selection are established and applied in compliance with
corporate policies. Today, procurement is also regularly involved in sourcing, managing, and
influencing so-called “bread and butter” legal services (those between high-stakes work and more
routine, repetitive work).
Procurement is involved in a broad range of legal services from litigation, transactional,
and — to a somewhat lesser degree — advisory work, in a wide range of practice areas: from
commercial law, M&A, real estate, and employment, to intellectual property law, and more.
While legal procurement professionals often decides on ancillary legal services providers,
they rarely — if ever — make the final decision on which firm to choose, nor do they have the
ability to veto in-house counsel’s decision. Although procurement may make suggestions about
firms to invite to tender for work, it is generally the legal department’s prerogative to name the
firms it deems capable and appropriate to do the work, and to establish which legal and subject
3 See Gardner & Silverstein, supra note 2.
81
