In many companies, the Legal Department has gotten new colleagues from legal procurement. For law firm marketers and business developers, this means a whole new set of buyers and influencers to handle. But how much do they really influence and what does legal procurement want?
The legal procurement trade organization, Buying Legal Council, just conducted a survey to find out. Here are some early findings:
What level of legal services purchases does procurement influence? The survey suggests that the vast majority, 86 percent, influences purchasing commoditized, routine legal services, such as debt collection, minor litigation and non-complex contracts. Just under half, 45 percent, influence the purchase of high-end complex legal services, such as high-stakes litigation. And 64 percent influence “bread and butter” legal services, those between high-end and commodities. (More than one answer to this question was possible.)
In short: few legal services today are left untouched by legal procurement. The less complicated the service, the more numerous the competitors, and the more frequently it is bought, the more likely it is that procurement will be involved in selecting the firms.
In fact, procurement plays different roles when it comes to selecting firms: 65 percent of survey respondents stated that “Procurement is responsible for pricing negotiations”, pointing to the traditional buying center role of “buyer”. It was followed by “Procurement is responsible for the framework agreement” and “Procurement is responsible for negotiating the terms and conditions”.
We also wanted to know which factors are critical when deciding which legal services providers to select. “Experience with similar matters” was the clear winner. It was closely followed by “Industry experience”. Procurement values experience as being “closest to the pin”. To them, this suggests that the firm will not need to spend a lot of time and research effort on the topic (and charge the client for it), but is able to hit the ground running and hopefully, have found efficiency in the context (which again, it is hoped, should benefit the client). Next came “Service excellence” and “Familiarity with our organization and its business”. Clients appreciate firms that are familiar with how the company works and who are able to deliver a better service, going beyond what is perhaps expected and standard. “Value for money” – this might surprise some – in the context, only scored fifth place.
What else does Legal Procurement expect? Learn more about it at the 2016 Buying Legal Council Legal Procurement Conference in New York on Tuesday, March 15, and rub shoulders with legal procurement and operations professionals who influence over a combined $5+ billion in legal spend.
Click here for the program, and secure your ticket today!