NEW REALITIES TRANSFORMING DELIVERY OF LEGAL SERVICES: Industry Report by Robert Half Legal Shows Law Offices Focused on Operating Cost-Effectively

MENLO PARK, Calif., May 25 /PRNewswire/ -- Law firms and corporate legal departments are progressively redefining the way they provide and use legal services, and the recent economic crisis has added impetus to this transition, according to a just-released industry report from Robert Half Legal, a specialized provider of lawyers, paralegals and other highly skilled legal professionals.

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The report, Delivering Maximum Value in a Cost-Conscious Legal Era, presents the latest research from Robert Half Legal's tenth annual Future Law Office project. Research highlights published by the legal staffing firm also are the focus of a new episode in The Robert Half Legal Report podcast series. Key Future Law Office findings include:

• Reducing outside legal spending is a top priority for corporate legal departments. Twenty-five percent of in-house counsel surveyed by Robert Half Legal said their legal department plans to decrease its work with outside firms in the next 12 months.
• Law firms are rethinking many service delivery processes to align their operations with how much corporate clients are willing to pay. Twenty-two percent of lawyers polled by our company said the greatest challenge for their firms today is dealing with increased competition for business, while 19 percent cited meeting revenue goals.
• To increase value to clients and control expenses, firms are replacing traditional operational models such as billable hours and lockstep compensation with alternative approaches, including flexible fee arrangements and performance-based compensation.

For its Future Law Office project, Robert Half Legal commissions surveys of lawyers, interviews well-respected professionals in the field of law, conducts research to assess how law offices might operate in the future, and obtains the insights of key Robert Half Legal staffing and recruiting professionals throughout the company's branch network in North America.

A Period of Unprecedented Change

"Among all the trends we have identified in our Future Law Office research, the increasing need for law offices to provide more value-added and cost-effective legal services is the most prominent," said Charles Volkert, executive director of Robert Half Legal. "Legal departments are being pressured to reduce their spending on outside counsel and boost efficiency. In response, law firms are revamping their legal services delivery processes to retain clients and improve profitability."

Law Firms Re-examine Their Worth to Clients

Research conducted for the Future Law Office identified the most pressing issues facing law firms. Twenty-two percent of lawyers surveyed said the greatest challenge for their firms today is dealing with increased competition for business, while 19 percent are most concerned about meeting revenue goals. Lawyers also are focused on finding ways to effectively market and advertise their services (17 percent), managing and developing practice groups (12 percent), hiring and retaining highly skilled staff (11 percent), and dealing with the effects of the recession (5 percent).

"Law firms are balancing the need to keep fees competitive while still providing a high value to clients," Volkert said. "In an effort to control expenses and operate more like the businesses they serve, firms are adopting more flexible strategies in the way they compensate employees and bill clients. For instance, it's not uncommon for firms to offer performance and merit-based pay instead of basing compensation solely on seniority."

Corporate Legal Departments Focus on Efficiency and Savings

Legal departments are implementing cost-cutting measures that include bringing additional work in-house and becoming more selective about projects they source to outside counsel.

One-quarter (25 percent) of in-house counsel surveyed by Robert Half Legal said their legal department plans to decrease its work with outside firms in the next 12 months, while 61 percent predict no change. Ten percent forecast increased work with outside firms.

"While handling more work internally reduces outside counsel costs, there is a point of diminishing returns," Volkert said. To avoid stretching staff too thin, he suggests employing more flexible staffing models to include legal project professionals, and taking advantage of the unusual amount of top talent in the market by making strategic hires.

To download a complimentary copy of the complete report, Delivering Maximum Value in a Cost-Conscious Legal Era, listen to the podcast, or for more information about the Future Law Office project, please visit www.roberthalflegal.com/futurelawoffice.

About Robert Half Legal

Robert Half Legal provides law firms and corporate legal departments with project and full-time professionals, including lawyers, paralegals and legal support personnel. Robert Half Legal offers online job search services at www.roberthalflegal.com.

SOURCE Robert Half Legal