25 GCs Signed Open Letter to Learn From Client-Firm Relationships
These clients worked closely with AdvanceLaw on a real-time data study of which client and firm behaviors drive satisfaction and results. The insights are powerful.
A Few Highlights from the GC Thought Leaders Experiment
Introduction to the GC Thought Leaders Experiment
Why a Fortune 200 GC migrated all his work from certain firms
A Chief Legal Officer on Psychology and Law Firm Relationships
We looked at data from dozens of in-house legal departments, hundreds of law firms, and thousands of matters to determine which attributes (e.g., flat fees, firm size, relationship length, legal spend, convergence, feedback, rates) influence performance (e.g., quality, responsiveness, expertise, solutions focus) on actual legal work. This is not an opinion survey; it’s regression analysis to learn which behaviors drive results.
The Big Market Problem No One Talks About
The legal market fails to reward the best firms and lawyers. This is because clients don’t share performance information. As noted by the world’s leading scholar on market disruption, Clay Christensen, GCs must rely on pedigree as a proxy for quality, rather than actual performance.
The result is stark: firms receiving the most work (Am Law 1-20) are, on average, scoring lower on solutions-focus (the #1 thing GCs seek) vs. other major firms (Am Law 21-200). And a market that fails to reward performance breeds complacency and creates little incentive to innovate.
Our Approach: Performance Leads to More Work from 300 GCs
With our member GCs, we vet firms for innovation and client service, suggesting star lawyers for major matters, portfolios, and panels. Strong feedback earns more work from our GCs (who spend $10B on outside counsel), so firms have a large market incentive to outperform. This is the win-win: counsel keen to excel, and clients receiving top service and quality assurance.
Does It Work?
We share performance scores with our GCs (including by type of work and geography). The scores are impressive. In fact, through our GC Thought Leaders Experiment, we can compare counsel performance on matters through AdvanceLaw with matters by incumbents. On every measure, counsel performance through the AdvanceLaw system is better, as reflected below.
The transmission of market information in legal – which should send clients in droves to the most innovative law firms – is broken.
“You have to hand it to Firoz Dattu. The former Paul Weiss lawyer and founder of AdvanceLaw sure knows how to whip up a crowd.”
Video excerpt of our founder with Tom Gardner (Motley Fool CEO) and Derek van Bever (HBS Professor) on why disruption is hard.
Things should change from you don’t get fired for hiring a white shoe firm to you don’t get fired for using AdvanceLaw.
This is the most rigorous law firm vetting and selection process that I have ever seen.