Outside counsel relationships are foundational to a corporate legal department’s success, but they’re also under increasing pressure. Law department leaders face tighter budgets, heavier workloads, and new mandates to demonstrate value. Meanwhile, law firms are navigating their own profitability challenges and evolving client demands. All players need practical, concrete ways to enhance the value of the relationship.
To help legal operations professionals turn these pressures into opportunities, Wolters Kluwer ELM Solutions and In-House Connect hosted a webinar, “The Relationship Equation Part II: How to Use Data and Process to Create Stronger Law Firm Partnerships.” The discussion brought together legal operations and legal procurement experts Alex Guajardo, global director of commercial strategy at Bryan Cave Leighton Paisner LLP, and John Burke, managing director and head of outside counsel management at UBS, and I acted as host.
Our guests explored how structured communication and data sharing can make outside counsel relationships more productive and cost-effective. Here are five key takeaways from our conversation.
Takeaway #1: Metrics, meetings, and missed opportunities
Despite widespread use of e-billing systems, many legal departments still struggle to define and communicate clear performance metrics to law firms. The Blickstein Group 2024 Law Department Operations Survey found that regular, structured relationship meetings with law firms remain rare, and the ones that do happen often lack consistency and follow-through.
The reasons are understandable: administrative burden, limited bandwidth, and a natural reluctance to challenge the status quo. But the benefits of more structured interactions are clear. Bi-directional evaluations help both sides:
- Align on expectations
- Identify what’s working—and what’s not
- Set the stage for continuous improvement
Takeaway #2: Using RFPs to enhance relationships
There’s a common belief that RFPs create transactional relationships and strain law firm partnerships. But panelists argued the opposite: When designed thoughtfully, RFPs can foster deeper collaboration.
Engaging law firm pricing professionals early in the RFP process helps clients improve matter scoping, surface innovative pricing strategies, and ensure firms understand the business and legal context behind the work. Other benefits include:
- Increased use of alternative fee arrangements (AFAs)
- Greater transparency into staffing and diversity commitments
- Clearer communication around expectations and deliverables
RFPs shouldn’t be seen as a threat. They can be a foundation for long-term trust and efficiency.
Takeaway #3: What data should be shared with law firms and why
Legal ops teams don’t need to share everything, but providing the right insights at the right time can dramatically improve law firm engagement.
Key data points to consider sharing with firms include:
- The firm’s share of the department’s overall legal spend
- Success rate in RFPs or matter assignments
- Feedback on why they did or didn’t receive work
- Post-matter billing compliance metrics
Transparency helps firms understand how they’re being evaluated, what matters most to the legal department, and how they can improve their service.
Takeaway #4: The value equation – redefining what matters
Value in legal services isn’t always about the lowest cost. Often, it’s about whether the law firm delivers on the client’s needs, whether that’s winning a case, closing a deal, or mitigating risk efficiently.
Panelists encouraged firms to be proactive in showing how they contribute strategically, not just financially. At the same time, legal departments should recognize high-impact efforts that may not show up on an invoice, such as strategic input from senior attorneys or support for client-driven initiatives, like pro bono work or diversity programs.
Redefining value through a broader lens helps foster stronger, more strategic partnerships.
Takeaway #5: Legal ops can lead the way
One of the webinar’s central messages was that legal operations teams are uniquely positioned to drive change in outside counsel relationships. They bring the data, process expertise, and operational mindset needed to create structure and accountability without losing sight of the human element.
By focusing on transparency, metrics, and continuous feedback, legal ops professionals can help move outside counsel relationships from transactional to transformational.
As legal departments face increasing complexity and cost pressure, the ability to build strong, data-informed relationships with law firms is more important than ever. The good news: many tools already exist, and legal ops teams are in the driver’s seat.
Watch the full webinar to hear directly from the experts and dive deeper into the strategies discussed above: The Relationship Equation Part II: How to Use Data and Process to Create Stronger Law Firm Partnerships
In addition, watch part one of the series for even more expert perspective on how to build and maintain positive outside counsel relationships: The Relationship Equation Part 1 - Building Stronger Partnerships Between In-House Counsel and Law Firm Attorney
