That’s a million dollar question (often quite literally) and the folks at Bloomberg Law have a well-researched answer. Watch this interview between Lisa Hart Shepherd, CEO of legal market research firm Acritas, and Bloomberg’s Spencer Mazyck:
Acritas interviewed 2,500 counsel in 45 different countries (including GC in some of the largest firms in the world) for this particular market study. The findings, in short:
Why do general counsel fire law firms?
1. Pricing: can be the overall price level; the value delivered, relative to that overall price; billing practices … summed up as “law firms being too expensive”
2. Expertise: a general lowering of quality; or, inconsistency (say with new opening of a new office); or lacking in specialty knowledge … summed up as “some kind of breakdown in the quality of legal advice.”
3. Relationships: tied to lateral hires away from law firms, or a partner’s retirement…
Watch the entire video for additional insights regarding what matters most to general counsel – and ways law firms can keep business. It’s an interesting interview!
I had the pleasure of speaking on an LMA Technology panel recently with Elizabeth Duffy, a VP at Acritas – the topic: law firm brand visibility in the digital age. Then as now with the above video/study, terrific market insights from Acritas.