Law firm benchmarking works similarly and provides valuable context to data on your different suppliers. As GCs seek to reduce legal fees by approximately 14-18% by 2024, now is the time for legal services to develop this critical expenditure management process. By comparing your own external advisor`s information with current market data and internal legal expenses, you can safely determine where you are getting the most bang for your buck and where you are spending more than you objectively should. Law firm rates are rising. According to The American Lawyer, average avocado rates increased by 5.7% in 2021 and many companies were targeting price increases between 5% and 10% in 2022. Benchmarking won`t control for factors like inflation, but it will help you stretch your legal dollars and accumulate savings in an uncertain economic environment. What data points do we want or need? For law firm benchmarking, you typically focus on analyzing expenses such as budget and installment expenses, but you can also look at things like life cycles or diversity between timekeepers. Continuous benchmarking improves the results you get through this process. Your business will constantly reach new levels of performance and growth by observing and exceeding the standards of your industry and competitors. The in-depth benchmark analysis provides legal partners with information such as: TCFD Recommendations and Other ESG Reporting Frameworks, Standards and Benchmarks Sustainability Toolkit We have created a sustainability toolkit designed to help practitioners advise companies on sustainability by bringing together content from different Lexis®PSL practice areas (under subscription reserve). For more information, see: Toolkit for Sustainable Business. Environmental, social and governance (ESG) issues have been high on the corporate agenda in recent years, with society, media, customers, employees and investors increasingly balancing the measurable and comparable aspects of ESG when evaluating a company or board. As a result of this increased focus on ESG aspects, companies are subject to an increasing number of legal and regulatory requirements regarding their reporting on ESG issues.

As companies` reporting on ESG issues has evolved, various voluntary reporting frameworks and standards have emerged to support and shape the way companies measure, assess and report on ESG issues to investors and other stakeholders. This practical guide looks at key ESG reporting frameworks and initiatives to create a global universal framework within which companies can report on ESG issues. For more information on ESG reporting in general, see the Investor Group`s Practical Notes: CSR, ESG and Human Rights Reports and Initiatives, as well as the Investor Group`s Environmental, Social and Governance (ESG) Guidance. Task Force on Climate-related Financial Disclosures In December 2015, the G20 Financial Stability Board established an industry-led task force on climate-related strategies used in benchmarking to help companies outperform their industry competitors on a variety of indicators such as customer satisfaction and revenue. Many corporate legal departments save money by bringing work in-house instead of outsourcing it to expensive companies. But this approach of blindly putting work on the plates of in-house lawyers without checking the price data will cost you dearly. Deloitte found that 69% of general counsel surveyed admitted that their lawyers were doing “too much paperwork,” and this overload of menial tasks can quickly lead in-house lawyers to retire, burn out, or even resign. And these three consequences weigh heavily on the bottom line.

And remember, the purpose of law firm benchmarking isn`t just to say, “You`re doing something wrong.” It`s about creating a fair standard for evaluating performance and doing what`s best for the business. At best, you`ll have an open conversation that will lead to better performance and partnership. In the worst-case scenario, if there is no improvement, you will at least have evidence to support the end of the relationship and the hiring of a new company. (1) An index of market-leading common stocks, bonds or sectors that serves as an indicator of broader market sentiment and movement. Tradeable benchmarks, which typically have significant LIQUIDITY and tight BIDOFFER spreads, are often used as indexing, pricing or hedging benchmarks for other securities or derivatives. (2) An index used to measure the relative performance of other ASSETS, securities or PORTFOLIOS. (1) Also known as BELLWETHER. Check out our article “When to give work to internal or external lawyers” for more helpful tips to help you manage your legal endowment.

The sooner you start comparing your law firms, the sooner you can improve your legal expenses. Taking the time ahead of time to determine your research and data analysis process will give you a solid foundation that will serve you well as you grow your team. Law firm benchmarking helps you identify tax-smart opportunities, such as outsourcing repetitive, low-level work, such as document review, to traditional vendors or other legal service providers (ALSPs). This then allows in-house lawyers to focus on more challenging strategic work that supports their career goals – and the company. Diversity and Inclusion (D&I) – Law firms` self-assessment of gender balance and maternity, paternity or adoption leave measures This precedent can be used by a company to compare its data across a number of possible D&I actions and track progress over a period of time. for example by providing them a year later. Then, compile your findings into a report that covers how your legal fees are tracked using average rates and other data. Points and where it can be improved. If you have access to comprehensive legal software, you can do so with just a few clicks. If you`re working with a spreadsheet or legacy tool, you`ll need to do more manual data compilation on your end. Legal Business Monitor is an online tool that allows users to access law firm performance criteria.