By Jared Hostmeyer, Senior Director of Product Management, Core Solutions, Wolters Kluwer ELM Solutions
Three letters inevitably cause anxiety in even the hardiest of litigators: RFP.
Corporate legal departments (CLDs) and law firms know they're in for hours of work to create or review a carefully crafted response with the proper documentation, fee structure, strategic thinking, and more. Law firms often struggle to understand selection criteria, billing arrangements, deadlines, and expectations. Then, CLDs must comb through and differentiate between likely dozens of responses already reviewed as part of a winnowing down by procurement and/or legal team members.
Fortunately, CLDs have digitally modernized many of their RFP processes, making it easier for firms to respond and be selected. They are using data-driven predictive analytics to better target the right firms from the start, along with automation and easy-to-navigate user interfaces to make responding to RFPs less cumbersome. Some are also leveraging generative AI to quickly assess how law firm proposals align with RFP criteria.
The move to modernize RFPs is beneficial for both parties. CLDs can develop RFPs in a more targeted and streamlined manner, which reduces the amount of time and guesswork associated with RFP creation. Law firms that receive an RFP have likely already been carefully vetted by corporate legal teams and ideally are being asked highly relevant questions for the matter at hand, which gives them an automatic foot in the door.
Firms can then create customized, thoughtful responses that put them in a position to win the business. Meanwhile, CLDs will have an easier time finding the best firm at the best rate for the best outcomes.
Here are two key ways the modernization of RFPs is helping CLDs and law firms build better and more profitable relationships.
1. Use RFPs to build new relationships and make needs and expectations clear
While many criteria go into the selection of outside counsel, one of the most important is trust. CLDs want to know that their firms can successfully manage their matters and deliver acceptable outcomes on time and within budget. Similarly, law firms want to be a collaborative partner, rather than a vendor that needs to be closely managed.
While trust is a big reason why CLDs often turn to firms they've used in the past, sometimes those firms may not be the most appropriate partner for new matters or matters being handled in new markets. RFPs allow CLDs to explore the best outside counsel options and give law firms the opportunity to develop new and potentially long-lasting relationships with companies they have never worked with before.
CLDs can use modern RFP systems to clearly define their strategy, staffing, and billing expectations upfront, ensuring everyone's on the same page before the process begins. New firms can craft tailored and targeted responses that demonstrate their viability as a great partner and frame their expertise to correlate with exactly what the CLD wants. At the same time, existing firms can use an RFP to show their accomplishments and the value they’ve brought to the partnership.
Once RFPs are submitted, CLDs can use Artificial Intelligence (AI) to summarize responses and match them with the initial request to speed up the process of narrowing down contenders to those with the most compliant responses and get to a decision faster. They can quickly look for deciding factors like experience, certifications, and more, to ensure firms’ offerings match up with the CLD’s expectations and needs.
2. Use metrics to show a commitment to transparency and accountability
While much of a legal RFP focuses on "soft data" (i.e., subjective questions around "What are the three things that make your firm stand out," "What makes your staffing great," etc.), it's just as essential to provide metrics a CLD can use to make its determination and measure against future performance. This information allows the CLD to select firms based on hard numbers instead of guesswork, presenting another way to identify the correct match.
For instance, a firm may set itself apart by showing its ability to accurately scope the budget and timeline of a matter according to its size based on past budgets, average time to closure, win rates, and other metrics. The CLD will know that the firm is thoughtfully considering the appropriate actions to resolve the matter successfully and as expeditiously and economically as possible.
Sharing metrics for performance at the outset of a relationship sets the stage for transparency, which is essential to the success of any matter. CLDs can periodically check to ensure their chosen firm is remaining true to its commitment, while the firm can refer to the metrics to make sure it’s hitting or exceeding its promised numbers and showing value.
It’s time for CLDs and law firms to stop being dragged down by RFPs. There’s no need to fear them anymore. Today’s process is more streamlined, data-driven, and targeted, resulting in less work and greater success for everyone involved.
For more on RFPs as a tool for strategic sourcing and vendor management, download our Guide to using RFPs to source law firms for legal matters.
