The survey – ‘The Selection and Retention of Law Firms in Western Europe'  – researched 219 heads of legal across 16 Western European countries and revealed a surprisingly low level of fundamental client service activities. Over half of respondents said their law firms had never conducted a formal satisfaction review with them. Of those who did, nearly three in four law firms did not share any outcomes with their clients.
The research confirmed that while  a mix of business acumen, a good reputation in the marketplace and the ability to deliver a quality service helped firms get retained, the ‘people’  factor was also hugely important with one in two wanting a ‘trusted advisor’.
The survey also confirmed the importance of the general counsel in appointing external law firms with just one in 20 organisations using their procurement department but even then the final decision was with the general counsel. In five per cent of companies, the CEO or Chairman had the final say.

Chemistry and knowledge

The notion that many firms may rely on their brand power or board member connections to hang on to a lucrative client despite providing a poor service was also dispelled, as the vast majority of respondents regarded being ‘well connected’ as a weak justification for continuing to use a firm.
Cost was also low on the list of firm-hiring issues, although the survey did reveal substantial differences between nations. Chemistry and knowledge continued to take precedence in most cases however.

Feedback

A major influence which was found to often be ignored or disregarded was the value which can be gained from feedback. A small majority of clients evaluated their law firm’s performance and a large majority said they plan do so in the future. Not all respondents said they would share the information gained with the firm evaluated, but most said the data would be used in deciding whether or not to retain a firm.
Respondents also said they would be happy to give feedback to their law firms, but less than half reported that they had been asked to do so. Of those that had been asked to give feedback, only a handful said that the firm had assessed the feedback and advised on how it will be acted upon.
The survey covered a wide range of legal budgets, with one tenth spending less than €100,000 per year, while the top 5 per cent spent in excess of €26 million. Forty three per cent of respondents also state that they expected their overall spending to remain consistent.

‘Trusted advisors’

There were also some country differences with speed of response a top priority for Swiss corporates whilst ‘Trusted advisors’ were more valued by French corporates and, at a time of economic turmoil in Spain, unsurprisingly the Spanish showed a great interest in costs. The Belgians, however, valued client service above all else whilst the UK were interested in the ‘people’ factor.
Commenting on the survey, Emma Callanan, chair of the Association of Corporate Counsel, Europe, Irish Chapter, said : “Like Atticus Finch, who remarked that you need to step into a person’s shoes and see things from their point of view, a law firm should do the same. There are only a small number of firms that do this well.”


To download the report in full, click here.