We all remember what impact the Great Recession had on large corporate legal departments. Like every company unit in a downturn, most legal teams felt extreme pressure to hold down costs. However, our data shows that despite a two-year dip in profits for Big Law partners, rates and hours continued to climb.
That’s why it’s interesting to see the culture shift explained over at Law.com, where Legaltech News reporter Victoria Hudgins describes how corporate legal departments are shifting emphasis and investment into legal data solutions.
“There are many ways we need to be nimble as a law department,” said James Michalowicz, senior manager for legal ops at TE Connectivity. “We need to be lean, and the technologies we’ve invested in allows us to be that way and allows for better positioning when a recession does occur.”
We agree, and we’re here to help legal teams weather any coming storm — recession or not.
Bodhala recently hosted an industry dinner that gathered top lawyers from premier private equity firms. At the dinner, a top PE lawyer with a major asset management firm told us that the cost of their premier firm partners, after years of rate increases, are beginning to be seen by the firms as problematic, even with budgets in the black. These are the best economic times possible for private equity, he said. “When things slow, legal will be viewed as a cost center that must make big cuts. What are PE legal departments putting in place to get ahead of this so it does not present a corporate risk at that time?”
We can help.
Bodhala, a groundbreaking legal technology platform created by lawyers to transform the half-a-trillion dollar global legal industry, was born in the aftermath of the Great Recession. While the economic downturn highlighted many needs for immediate cost controls, the advent of big data showed there’s hope to solve for many bad behaviors in Big Law: block billing, unexpected rate increases, lack of timely billing data, and inappropriate staffing decisions.
We recognized then that there needed to be a shift in the dynamic between legal departments and their outside counsel. Backed up by not only anecdotal evidence but with millions of dollars saved by our clients every year, we have already helped move the status quo forward.
Our proprietary benchmarking metrics and rate review algorithms generate detailed insights into every aspect of legal spend. An intuitive dashboard puts the information you need to make more cost-effective decisions about legal service providers at your fingertips, effectively boosting efficiency and reducing your bottom line.
Contact us today to talk about how we can be that shield for any clouds that may roll in: https://www.bodhala.com/demo-bodhala
You might have found yourself thinking outside legal bills are a pain to reconcile. You’re not alone! In the first entry in our series on the legal department of the future, we help you avoid the 3 biggest legal billing problems our clients face.