Clients too often ignore law firm incentives and market power. They also substitute management for leadership.
Editor’s note: This post returns to a subject first addressed here in Posts 029, 030, 031: successful law firm convergence and the management of law firm panels. In this article, Dan looks back over AdvanceLaw’s work in the intervening five years and identifies four of the most common and consequential flaws in corporate law firm panels. What follows draws on input from the staff of AdvanceLaw, where Dan is a Managing Director.
Why law firm panels matter
Law firm panels are a primary client strategy for controlling legal spend, but they also help stimulate innovation. Innovation matters because panels wouldn’t be worth the effort if they didn’t produce better performance, which requires changes in how things get done. Yet as Legal Evolution has documented in its posts on diffusion theory (tip: start with Post 001 and read chronologically), many forces resist innovation in legal services, and those forces can only be overcome by sustained change management efforts from both law firms and clients. Neither firms nor clients will commit to this effort if their relationship is temporary or poorly defined, so structured approaches like law firm panels are necessary to create the conditions under which innovation is at least possible.
Continue Reading The four fatal flaws of law firm panels (297)