Clients remain deeply invested in DEI (diversity, equity, and inclusion) initiatives and succession planning within their outside counsel legal teams. The latest market research from BigHand reveals that 87% of firms surveyed report more demand for DEI in staffing, and 33% of firms have lost clients because they found other firms more aligned with their DEI criteria. However, just 19% of firms currently include DEI as a priority when resourcing matters.
Reliable, decision-grade data is actionable data, and it's essential for demonstrating commitment to DEI and effective succession planning. BigHand Impact Analytics brings truth to the table through timecard analytics, making complex data accessible. By leveraging data analytics, firms can better understand the allocation of career-advancing work and develop strategies to improve representation and promote future leaders. This proactive stance not only addresses client concerns and improves retention but also enhances the firm’s reputation as a forward-thinking strategic partner.
BigHand’s Pricing and Budgeting Trends Analysis report revealed that 48% of firms surveyed have seen a rise in the need to demonstrate the value of their services to clients. We’re also seeing clients becoming more cost-conscious, with 34% reducing the number of firms they have on their panels. If unsatisfied by the level of transparency or value provided by the firm, our latest data proves they’re happy to shop around, with 96% of law firms claiming to have lost clients in the last 12 months. Drilling deeper into that statistic, we found that 29% of firms have experienced greater than 10% client attrition in the past year. However, all panelists agreed that service delivery value is rarely defined or tracked by clients. This presents an opportunity for firms to proactively define – and then demonstrate with data – their value.
To strengthen client relationships, firms must take the initiative to articulate their value story through actionable data. It’s vital to not only showcase what the firm can offer but also to use concrete data to illustrate the impact of its DEI efforts and project outcomes. This proactive communication can differentiate a firm in a competitive market, making it clear how their approach benefits clients. Firms should regularly share insights and achievements with clients to reinforce their commitment to excellence and innovation.
Law firms and legal departments should approach DEI and legal project management (LPM) as a single, cohesive program. Both initiatives rely on similar processes and data. By integrating DEI considerations into LPM processes and monitoring, firms can improve staff engagements more mindfully at the outset and achieve better outcomes for the firm and the client. This holistic approach is a win-win: not only do firms enhance their DEI efforts, but they also improve overall project efficiency and client satisfaction.
A vital point raised was the importance of integrity in staffing and work allocation commitments made during the Request for Proposal (RFP) process. Firms simply must avoid making promises they cannot keep. This integrity is crucial in building trust with clients and setting realistic expectations. When firms over-promise but under-deliver, it jeopardizes client relationships and undermines confidence in the firm’s capabilities. Clear communication and honesty are essential for maintaining credibility.
I often refer to 'mindful staffing' - pausing and planning who will do what before making promises and diving into the work. The clear benefits of accurate work classification are pricing and cost control but work allocation data can solve more than one problem. 23% of equity partners cite a lack of professional development as a reason for leaving a firm. Once you have visibility and understanding of resource allocation, the conversation around talent development completely changes.
I touched on the importance of talent retention earlier but with 34% expecting to lose between 20% and 40% of equity partners in the next five years, this needs to be a priority for firms. From a client perspective, businesses invest a lot of money into their law firms and seeing strong talent retention is vital for confidence that a firm will deliver on staffing promises.
The panelists brought amazing use cases and examples of data-centric discussions between law firms and legal departments to deliver equity, efficiency and value. All acknowledged that these examples of communication and transparency were the exception.
Communication is the foundation of any successful initiative. None of the strategies discussed can be effective without open lines of dialogue between the law firm and the client. These discussions may be uncomfortable at first, but they are crucial. Creating a culture of transparency ensures that everyone is aligned with the firm’s goals and can contribute to a unified strategy. When law firms and legal departments truly partner and collaborate to drill into data and coalesce around value delivery, they can harness collective insights to drive progress.
In summary, by treating DEI and LPM as a single program, maintaining integrity in client communications, focusing on actionable data, proactively telling a value story, and fostering internal communication, law firms can not only enhance their relationships with clients but also create a more inclusive and effective working environment.
At BigHand, we are committed to supporting these efforts to deliver value and build stronger connections between law firms and clients. Discover how BigHand Impact Analytics unlocks key financial and DEI data at law firms.
BigHand Impact Analytics combines strategic advice and change management expertise with AI-enabled data analytics to transform legal billing data into DEI success. The solution allows firms to identify opportunities for career advancing work, supports DEI initiatives, and focuses on areas where time recording needs to be improved - ultimately creating a smoother billing and collection process, with better data insights.
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