Finding the Balance in the Business of Law

The economics—and practice—of law have undergone significant change in recent years, with shifting (and often opposite) consequences for law firms and corporate law departments and an increasing role for legal process outsourcing. Understanding the dynamics of today’s legal landscape—and the options for managing costs, leveraging legal spend or growing to meet demands—requires a data-driven view of both the challenges and opportunities.

Data comes from:

Peer Monitor Index (PMI), a composite index score, representing the quarter-over-quarter change in drivers of law firm profitability, including rates, demand, productivity and expenses. Positive factors driving firm profitability will produce a higher score. A score exceeding 65 generally indicates a healthy operating environment.
ACC/Serengeti Managing Outside Counsel Survey
ACC Chief Legal Officers (CLO) 2013 Survey
Pangea3, Thomson Reuters legal outsourcing solution provider. Out of the $400 billion total global legal services market, the current LPO market size of $1.1 billion represents only a fraction of an estimated $20 billion market of ‘outsourceable’ legal work. Robust future market growth of the LPO market is forecast at 30% in the next three years.

Expert Insights

The General Counsel’s General Counsel

Susan Hackett

CEO/CLO, Legal Executive Leadership, LLC

“We work in a time of incredible disruption in the legal marketplace. What defines value and success today is different and changing daily, or at least varies from firm to firm, client to client and matter to matter. Legal business and service delivery models of the past are being re-written as lawyers struggle to find new ways to offer that which is both profitable and aligned with the client’s interests. It’s like changing the tires on the bus while it’s moving. But even when it’s not clear exactly how each of us will deliver sustainable, profitable, value-driven services in the future, one thing is certain: change is the only constant in today’s marketplace … and if you don’t like change, you’ll like irrelevance even less.”

The Peer Monitor

Mark Medice

Senior Director, Peer Monitor, Thomson Reuters Legal

“Our Peer Monitor data has provided a lens into the challenges faced by law firms over the past several years—and also into the progress made in increasing efficiency and in reinventing business models for greater profitability. Looking to the year ahead and improved economic trends, structural change to the industry may still drive a highly competitive (and increasingly global) market. Increased client sophistication will raise the bar for expected service levels, and value will be the critical measure.”

Change Into Opportunity