Even Batman and Superman have power struggles. In legal operations, those battles often take the form of cost control versus relationship building in vendor management. In our recent Wolters Kluwer ELM Solutions client focus group, my colleague Amy Choe (Head of Professional Services Practice Management) and I explored this tension through a lighthearted superhero lens. But the insights our clients shared were anything but comic-book fiction.
Two sides of the vendor management coin
Batman: The cost crusader
The Batman archetype lives in the shadows of spreadsheets and dashboards, always asking, “Is this the best value for our spend?” He thrives on efficiency, metrics, and control, using tactics such as:
- Rate negotiations
- Invoice compliance
- Budgeting and forecasting
Superman: The relationship guardian
The Superman archetype soars above the fray, reminding us, “We’re stronger when we work together.” He focuses on trust, collaboration, and strategic alignment, emphasizing:
- Strong law firm partnerships
- Internal team morale
- Long-term goals
Neither approach alone is enough. The most effective legal operations teams form a Justice League of Legal Ops, balancing cost management with relationship strength. That means transparent, data-informed rate discussions, a collaborative cost control model, and automating basic compliance so conversations can focus on strategy, not billing errors.
How clients are rethinking cost control
When we asked attendees what comes to mind when they think about vendor management, most said “savings.” But cost control today isn’t just about driving rates down — it’s about increasing value.
Amy shared examples of clients reducing rates by scrutinizing which timekeepers do which types of work, using benchmark data to strengthen negotiations, and pre-authorizing unplanned activities to avoid surprises. We also discussed how alternative fee arrangements (AFAs) are enjoying renewed popularity as a way to focus on matter value rather than invoice disputes.
Participants noted that rate vigilance is essential. One client discovered during an audit that some firms tried to raise rates twice in a single year and had sought increases of more than 20%. Another pointed out that with more courts operating remotely, they can source attorneys from lower-cost geographies without sacrificing quality.
Some participants are intentionally broadening their law firm panels, whether by noticing strong performance from firms introduced to them via multi-party cases or by researching successful outcomes in relevant practice areas. This not only increases flexibility but also prevents over-reliance on a small number of firms.
It's a shift from the bright Batman of the 1960s with heavy-handed, “KAPOW!”-style rate negotiations, to a darker, more strategic and vigilant version now watching from the shadows, armed with data and careful planning.
Building stronger partnerships
We also explored the Superman side of vendor management, the relationship work that keeps partnerships productive over the long term.
Some clients are implementing performance surveys for relationship partners, combining numerical scores with narrative feedback, and sharing the results with firms. Others hold annual reviews with their most prolific firms, covering what’s working well, where improvements are needed, and plans for the year ahead. Retrospectives after significant matters can be equally valuable.
Some attendees are considering hosting law firm symposiums, bringing together top relationship partners to share updates, set expectations, and encourage cross-pollination among firms. While outside counsel sometimes describe this as feeling like an episode of Survivor — a reminder that they’re not the only game in town — it also creates opportunities for alignment and shared understanding.
The power of a balanced approach
Ultimately, vendor management isn’t about choosing between cost management precision and relationship-based trust-building. It’s about bringing both to the table to ensure that rate discussions and relationship conversations complement each other, rather than compete for attention.
The clients in our focus group proved that with the right mix of data, transparency, and collaboration, legal operations teams can strengthen partnerships while protecting the bottom line. That’s how you turn a power struggle into a shared mission — and maybe even save the day, with or without the cape.
To dive deeper into best practices surrounding outside counsel management, listen to my conversation with representatives from both the legal department and law firm side of the relationship in the Bringing efficiencies to outside counsel collaboration and the adoption of AFAs episode of our Legal Leaders Exchange podcast.
