When I joined the Legal Operators’ Feast & Forum NYC Roundtable event, I knew we were in for a rich and insightful conversation. My previous blog introduced some of the key data we shared with participants—data that highlighted the growing cost pressures and evolving priorities facing legal operations professionals today. But what truly brought the event to life were the dynamic discussions among attendees, who shared their real-world challenges, strategies, and successes.
I had the privilege of facilitating these conversations and witnessing firsthand the power of peer-driven dialogue. In this post, I’ll share some of the key takeaways from those open discussions, focusing on three critical areas: building stronger relationships with outside counsel, managing panel firms effectively, and optimizing RFP processes.
Establishing cost-effective collaboration
One of the most compelling discussions centered on the question of how to build strong, cost-conscious relationships with outside counsel. Participants explored fee arrangements, alternative billing models, and performance metrics, uncovering both challenges and opportunities, noting the following:
Tailored selection: Outside counsel selection depends heavily on industry and departmental needs or culture. There is no one-size-fits-all approach.
Support from legal ops: Legal operations teams play a pivotal role in:
- Providing analytics and reporting to support cost containment
- Assisting with pricing negotiations, especially in larger organizations
Performance reviews: While performance reviews can be administratively burdensome, focusing on key firms with the highest spend helps focus the effort to maximize impact. Providing detailed performance evaluations alongside organizational information was identified as a best practice.
Beyond pricing: Cost containment isn’t just about negotiating rates. Attendees shared other successful strategies, including:
- Making in-house attorneys accountable for their budgets
- Using an onboarding process that acts as a deterrent to adding new firms unnecessarily
- Leveraging billing guidelines and RFPs to promote compliance
Building and managing the right panel of law firms
Another key topic of discussion was how to create a high-performing, diverse panel of law firms that aligns with both legal and business goals. The conversation touched on selection criteria, managing panel firms, and driving adoption among in-house attorneys. Key takeaways included:
Benefits of panel firms: Participants highlighted several advantages of using panel firms, including:
- Reducing administrative burden through fewer onboarding processes
- Simplifying rate negotiations while achieving better pricing
Selection challenges: Selecting the right firms for a panel is no small feat. Best practices shared included:
- Using historical data to inform decisions
- Identifying all legal work being performed across the organization, even outside the legal department
- Encouraging in-house attorneys to act as “panel owners”
Tailored panels: The type of panel firms needed varies by organization and industry. Some divide firms by global, regional, or practice-specific criteria. It is important for each organization to use the structure that best meets its needs.
Formalizing the process: Establishing clear expectations and processes was a recurring theme. Some legal teams have success:
- Embedding panel firm usage into matter intake workflows
- Setting performance expectations for in-house attorneys to ensure panel firm adoption
Optimizing RFPs to secure competitive terms
Finally, the group explored the benefits and challenges of structuring RFPs to align with legal needs, secure competitive pricing, and set clear expectations.
Encouraging scoping: RFPs encourage in-house attorneys to scope their matters effectively, improving budget and spend forecasting.
Direct engagement: Many attendees shared that RFPs often go directly to law firm pricing professionals, streamlining cost control.
Helpful to law firms: RFPs can set expectations for law firms and provide insight to them on why work was not awarded.
Challenges of RFPs: Despite the benefits, RFPs are not without their hurdles:
- Administrative burdens and delays in engagement decisions were common concerns.
- Tracking AFAs across tools remains a challenge for many organizations.
Streamlining with technology: Tools like LegalCollaborator were noted for their ability to streamline RFP processes and integrate AFA data into platforms like TyMetrix® 360° or Passport®.
The Feast & Forum NYC roundtable was a powerful reminder of the value of collaboration and knowledge-sharing among legal ops professionals. Attendees left with practical guidance to help tackle cost pressures, enhance vendor management, and drive innovation. I look forward to continuing these conversations and encourage you to explore Wolters Kluwer’s Legal Leaders Exchange podcast for more from legal ops experts and professionals.
