Legal knowledge managers have a lot to thank inhouse legal counsel for. Without their scrutiny, especially during the pitching process, I doubt that many law firms would even pay lip service to KM. Why do things for cheaper unless you really have to? Over the past few years, I?ve noticed that the questions that potential clients/inhouse counsel are asking law firms to answer during the pitching process are increasingly to do with the way the firm operates.
Expertise and relevant experience is assumed.
Some of the questions are what you?d expect, for example, what ?value added? (aka free) services can you give us that your competitors can?t. Often, the questions are less what you?d expect, for example, please give us your diversity statistics. When companies/inhouse counsel ask these questions of law firms that they may instruct, what is it that they?re really trying to find out?
I think that they?re trying to reassure themselves that the firm runs as efficiently and effectively as it can by extrapolating that if the firm complies not only with its regulatory obligations but also its ethical ones, then it has a pervasive culture of excellence. Reassuring themselves in this way is one way for inhouse counsel to try and cut through the hype that law firms spin about themselves.
I think it?s a pretty effective way. Firms that take their ethical obligations seriously (in the benefits they give their staff, the level of pro bono work they do, etc) tend to have good knowledge management programmes and, as a result, tend to be more efficient and effective in carrying out their legal services. In short, you probably get more bang for your buck if you instruct this kind of firm.
What I have noticed though is that inhouse counsel don?t really know the best questions to ask when it comes to determining whether a firm has a culture of excellence. Perhaps it?s because most inhouse counsel have been in private practice as lawyers, not on the law firm management side of things, so they haven?t been exposed to management first hand.
Here?s an example of some of the questions, the answers to which I think give a very good indication of whether the firm has a pervasive culture of excellence.
How much were your IT/KM/Learning and Development/HR budgets for last year expressed as a percentage of your turnover?
Comparing these against industry standard and industry best practice will give you a good idea of how important the firm considers these things, regardless of what they say. Also comparing these with each other will let you know where the firm?s priorities lie. No matter how firms justify their small KM/IT/L&D budgets, as with most things, you get what you pay for.
Please give details of the most recent external training course that [choose most junior member of the proffered team] has attended.
The answer to this question (if the firm answers honestly) will tell you whether the firm truly wants its lawyers to develop into the best they can. The answer will also give you a perspective on whether the firm is concentrating on providing legal services or has decided to spend time and money creating inhouse L&D programmes.
What are your maternity/paternity leave benefits?
Compare this against legal industry best practice ? both inhouse and in law firms. The answer to this will give you a good idea as to whether the firm is serious about supporting and retaining it?s best people and, therefore, giving the best service it can.
What is the pay gap between the genders expressed as a percentage? For mid level/senior associates in the London office? For support staff in the London office?
This is a useful question to ask in relation to different bands of associates because it tells you how far behind the national average the law firm is and allows you to judge whether the firm is serious about supporting its best people, even if those people are women. It also tests whether the firm will give you an honest answer to a question that it really doesn?t want to answer. Firms can give this information quite easily if they want to ? you?re not asking for individuals? details!
How many partners were made up from internal candidates (i.e. not lateral hires) in the [corporate team in the London office ? choose whichever team and office you?re interested in] in the past 5 years and list their names.
You need to make sure that you ask not only for a particular practice group that?s relevant to you but also in relation to the particular office. Firms who take the development of their lawyers seriously should have made up many more internal candidates than external. Many lateral hire partners in a particular practice group and office is an indication that the firm felt it wasn?t up to par in that particular practice group. It also means that the firm has not had any input into the development of those partners and doesn?t mind that.
How many female corporate partners do you have in your London office?
The answer to this question will often cut through the whole diversity/flexible working practices hype that most law firms spin.
Please provide a copy of each of the proposed team members? practicing certificates.
Ask this question after the list of the proposed team has been provided, especially if there are antipodean?s on the proposed team.
There are many more questions like these that should be asked of law firms and that law firms should be able to answer. The more law firms are held to account on how they spend their money and nuture their non partner lawyers, the better the provision of legal services will become.
