Opportunities knock as 2014 unfolds. Join BTI as we discuss new opportunities and how client service leaders are upping their game. We will dissect the market in rich, robust detail—so you can pinpoint the opportunities best for you and your firm. We’ll delve into powerful findings from more than 300 brand new, in-depth interviews with General Counsel—and over a decade of research and experience—to offer a new perspective on what’s in store. You’ll learn: The corporate legal spending outlook for 9 major practices. Who makes the brand new BTI Client Service 30 and why it changed so much. New CMO budget, spending and productivity metrics. How law firms measure up on client service—by name. BTI’s exclusive, unvarnished analysis of law firms’ market share gains and losses. And much more… BTI’s annual webinar attracts more than 600 law firm leaders worldwide—don’t miss out on your opportunity to discover what the best-performing law firms are doing to stay ahead of the competition. View the full webinar: http://www.youtube.com/watch?v=v3uvnLLQUJM Visit BTI: www.bticonsulting.com Questions? Contact Michael B. Rynowecer, BTI's President at mrynowecer at bticonsulting.com.

1. BTI Market Outlook and
Client Service Review 2014
Webinar
January 16, 2014
Prepared by:
The BTI Consulting Group
396 Washington Street, Suite 314
Wellesley, MA 02481
Tel: +1 617 439 0333
Fax: +1 617 439 9174
www.bticonsulting.com
info@bticonsulting.com
©2014 The BTI Consulting Group  Wellesley, MA 02481  Tel: +1 617 439 0333  www.bticonsulting.com

2. The BTI Approach
RESULTS
In-Depth Interviews
4,000
Corporate Counsel
Strategic Insight:
Changes,
Opportunities,
Threats
250
Major Law Firm
Leadership Partners
More than 200 Top
Business Executives
of Fortune 1000 and
Large Companies
Analysis
Market and Financial
of 200-Plus Law Firms
Strategic
and
Tactical
Analysis
Corporate Counsel Needs:
Now and How They
Will Change
Expectations
for Relationships
HOW OUR CLIENTS
BENEFIT
Improved
Client Service
Higher Growth
Improved
Retention
Structured Trend
30 Years’ Experience
and Insight
Drivers Behind
Client Satisfaction
and Client Service
©2014 The BTI Consulting Group  Wellesley, MA 02481  Tel: +1 617 439 0333  www.bticonsulting.com
Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group
Higher Profits
Compelling Research. Compelling Results.
Page 1

3. U.S. Legal Market Exceeds $100 Billion Mark
Spending on
Outside Counsel
Corporate
Legal Departments
$60.2 Billion
60.2%
$39.8 Billion
39.8%
The $100.1 Billion Market for Legal Services
Source: BTI Premium Practices Forecast 2014: Survey of Corporate Legal Spending
©2014 The BTI Consulting Group  Wellesley, MA 02481  Tel: +1 617 439 0333  www.bticonsulting.com
Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group
Compelling Research. Compelling Results.
Page 2

4. Corporate Counsel Shift Spending In-house, New Competition…
In-house Corporate Counsel Spending
$ Billions
$40
$39.8
2011
2013
$33.5
$30
$20
$10
$0
©2014 The BTI Consulting Group  Wellesley, MA 02481  Tel: +1 617 439 0333  www.bticonsulting.com
Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group
Compelling Research. Compelling Results.
Page 3

5. Global Organizations A Bright Spot
U.S. Corporate Legal Market for Outside Counsel
60%
Percent of Outside Counsel Market
55.7%
Fortune 1000
52.8%
51.3%
50.0%
50%
39.5%
40%
31.2%
Global 500
35.5%
33.4%
30%
20%
2010
2011
2012
2013
Source: BTI Premium Practices Forecast 2014: Survey of Corporate Legal Spending
©2014 The BTI Consulting Group  Wellesley, MA 02481  Tel: +1 617 439 0333  www.bticonsulting.com
Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group
Compelling Research. Compelling Results.
Page 4

6. Premium Practices Roadmap for 2014
Growth Prospects
High
Growth
10.0%
PRIORITY PRACTICES
TACTICAL PRACTICES
Regulatory
Bankruptcy
Class Actions
M&A
Moderate
Growth
1.1%
Average
Growth
IP Litigation
Tax
Employment
Restructuring
Environmental
Corporate
Bet-the-Company
IP
Investigations
Real Estate
Securities
Negative
Growth
-4.0%
Litigation
CORNERSTONE PRACTICES
Routine Rates
OPPORTUNISTIC PRACTICES
Relative Rates
Premium
= $2 Billion Market Opportunity
Source: BTI Premium Practices Forecast 2014: Survey of Corporate Legal Spending
©2014 The BTI Consulting Group  Wellesley, MA 02481  Tel: +1 617 439 0333  www.bticonsulting.com
Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group
Compelling Research. Compelling Results.
Page 5

7. Matters to Surge, Spending Flat
Litigation Spending
Total Matters
Litigation Activity and Litigation Spending
$30.0
Billions
Matters
350
$25.0
300
$20.0
250
$15.0
200
$10.0
150
2011
2012
2013
2014
(Projected)
Source: BTI Litigation Outlook 2014: Changes, Trends and Opportunities for Law Firms
©2014 The BTI Consulting Group  Wellesley, MA 02481  Tel: +1 617 439 0333  www.bticonsulting.com
Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group
Compelling Research. Compelling Results.
Page 6

8. Resolution Rates Remain High
Trend in Resolution Rates
75%
Percent of Active Matters Settled
50%
41.6%
36.9%
25%
36.5%
39.7%
22.2%
0%
2009
2010
2011
2012
2013
2014…
Source: BTI Litigation Outlook 2014: Changes, Trends and Opportunities for Law Firms
©2014 The BTI Consulting Group  Wellesley, MA 02481  Tel: +1 617 439 0333  www.bticonsulting.com
Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group
Compelling Research. Compelling Results.
Page 7

9. A Predator’s Paradise
Outside Counsel Spending Flat
$ Millions
Outside Counsel as % of Total Spending
Total Legal Affairs Spending
Outside Counsel Spending
$32.2
$30
$32.7
$30.3
$30.0
$24.8
$25.4
$25.4
$26.6
63.4%
65.0%
63.5%
$19.5
45.7%
$20.5
$20.8
$18.5
60.6%
59.2%
$19.8
$19.7
61.6%
$18.7
$19.1
50%
$16.9
$14.0
$10.5
63.6%
65.9%
51.4%
42.2%
$30.1
75%
63.3%
57.6%
$20
$33.3
$28.1
$27.2
$10
$32.8
100%
$14.6
$11.6
25%
$0
0%
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Source: BTI Premium Practices Forecast 2014: Survey of Corporate Legal Spending
©2014 The BTI Consulting Group  Wellesley, MA 02481  Tel: +1 617 439 0333  www.bticonsulting.com
Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group
Compelling Research. Compelling Results.
Page 8

10. Harsh Law Firm Self Ranking on Essential Skills
10
Self Performance Rating
High
Average
Median
7.82
7
Low
6.93
4
1
Marketing and Business
Development Efforts
©2014 The BTI Consulting Group  Wellesley, MA 02481  Tel: +1 617 439 0333  www.bticonsulting.com
Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group
Overall
Client Service
Compelling Research. Compelling Results.
Page 9

11. Law Firms Invest In Marketing and BD Muscle
Expressed as a percent of revenue, including salaries, what is your marketing budget for 2012?
AmLaw 100
AmLaw 101-200
Average Marketing Budgets
3.0%
Outside AmLaw 200
Percentage of Revenue
2.84%
2.64%
2.60%
2.5%
2.50%
1.5%
2006
2.57%
2.34%
2.17%
2.10%
2.10%
2.14%
2.01%
2007
2008
2010
2.42%
2.28%
2.06%
2009
2.81%
2.57%
2.44%
2.20%
2.0%
2.93%
©2014 The BTI Consulting Group  Wellesley, MA 02481  Tel: +1 617 439 0333  www.bticonsulting.com
Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group
2011
2012
2013
Compelling Research. Compelling Results.
Page 10

12. Hand-to-Hand Combat:
11 Core Law Firms Compete Every Day for Work
Law Firm Utilization
Number of Law Firms
40
36
Handle small,
technical or routine
cases
30
Core law firms account for
approximately 80% of outside
counsel spending
20
9
10
2
0
Primary
Law Firms
Secondary
Law Firms
©2014 The BTI Consulting Group  Wellesley, MA 02481  Tel: +1 617 439 0333  www.bticonsulting.com
Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group
All Others
Compelling Research. Compelling Results.
Page 11

13. Benchmarking Key Client Service Metrics:
Reaching Clientopia
First Primary Core Firm
Financial
Investment
First Recommended
Clientopia
TM
Emotional
Investment
Clientopia
The Ideal State of the Client Relationship
©2014 The BTI Consulting Group  Wellesley, MA 02481  Tel: +1 617 439 0333  www.bticonsulting.com
Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group
Compelling Research. Compelling Results.
Page 12

14. 31.4% of Clients are Truly Satisfied with Their Leading Law Firm
31.4% of corporate counsel
recommend their
primary law firm first
Clientopia
The Ideal State of the Client Relationship
©2014 The BTI Consulting Group  Wellesley, MA 02481  Tel: +1 617 439 0333  www.bticonsulting.com
Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group
Compelling Research. Compelling Results.
Page 13

15. 17 Activities to Develop Superior Client Relationships
High
Understands the Client’s Business
Clients See as
Scarce
in the Market
Breadth of Services
Brings Together
National Resources
Client Focus
Regional Reputation
Provides Value for the Dollar
Commitment
Helps Advise on Business Issues
to Help
Unprompted Communication
Anticipates the Client’s Needs
Ability to
Differentiate
Deals with Unexpected Changes
Keeps Clients Informed
Innovative Approach
Handles Problems
Quality Products
Legal Skills
Clients See as
Abundant
in the Market
Meets Core Scope
Low
Not Important
Importance
©2014 The BTI Consulting Group  Wellesley, MA 02481  Tel: +1 617 439 0333  www.bticonsulting.com
Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group
Very Important
Compelling Research. Compelling Results.
Page 14

16. 650 Core Law Firms Serve the Fortune 1000;
Just 336 Stand Out for Superior Client Service
Best-in-Class
BTI Client Service 30
30 Law Firms
4.6%
Law Firms Honored
in the Client
Service A-Team
306 Law Firms
47.1%
©2014 The BTI Consulting Group  Wellesley, MA 02481  Tel: +1 617 439 0333  www.bticonsulting.com
Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group
Other Core Law
Firms Serving the
Fortune 1000
314 Law Firms
48.3%
Compelling Research. Compelling Results.
Page 15

17. The 2014 BTI Client Service Top 30:
The Cream of the Crop
BTI Client
Service Rank
BTI Client
Service Score
BTI Client
Service Rank
BTI Client
Service Score
1.
2.
Skadden, Arps
Jones Day
374.67
274.87
16. Holland & Knight
17. Hogan Lovells
171.80
151.44
3.
Sidley Austin
255.33
18. Littler Mendelson
151.05
4.
Morgan Lewis
254.58
19. Norton Rose Fulbright
146.17
5.
6.
Kirkland & Ellis
Morrison & Foerster
252.05
247.03
20. Greenberg Traurig
21. Jackson Lewis
144.61
141.11
7.
8.
Latham & Watkins
Thompson Hine
229.34
212.04
22. K&L Gates
23. Foley & Lardner
141.03
138.08
9.
Faegre Baker Daniels
204.79
24. Alston & Bird
137.50
10. Gibson, Dunn & Crutcher
197.88
25. McGuireWoods
129.50
11. Reed Smith
196.58
26. Venable
127.36
12. Mayer Brown
192.78
27. DLA Piper
122.03
13. Bryan Cave
190.08
28. Ogletree, Deakins
115.55
14. Seyfarth Shaw
186.37
29. Thompson Coburn
104.48
15. McDermott Will & Emery
172.47
30. Husch Blackwell
103.59
Highlighted firms boast more than 12 years as part of The BTI Client Service 30
©2014 The BTI Consulting Group  Wellesley, MA 02481  Tel: +1 617 439 0333  www.bticonsulting.com
Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group
Compelling Research. Compelling Results.
Page 16

18. Superior Client Service
Changes the Nature of Client Relationships
Number of Practices Delivered to Clients
5
3.2
2.5
1.8
1.0
0
Secondary Law Firms
Primary Law Firms
©2014 The BTI Consulting Group  Wellesley, MA 02481  Tel: +1 617 439 0333  www.bticonsulting.com
Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group
Primary Law Firms With
Superior Client Service
Compelling Research. Compelling Results.
Page 17

19. Benefits Enjoyed by Law Firms
Consistently Delivering the Best Client Service
2x
50.0%
50%
39.0%
35.9%
33.0%
25.6%
25%
0%
Higher Profits
Rate Premiums Across
All Staff Levels
Fees From a Single
Client
©2014 The BTI Consulting Group  Wellesley, MA 02481  Tel: +1 617 439 0333  www.bticonsulting.com
Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group
Higher Client
Retention
Higher Growth
Compelling Research. Compelling Results.
Page 18

20. Superior Client Service Initiatives:
Garnering Buy-in
Superior Client Service Initiatives
 Make the client service initiative your partners’ idea
›
Ask partners to rank the priority and benefit of client service tactics
›
Use the results to design your initiative—mostly
 Use your next retreat to create the demand
›
Strategically designed breakout groups to drive client service
• Partners:
– Identify obstacles to delivering superior client service
– Pinpoint strategies to overcome obstacles
– Delineate best actions to implement
›
High-impact interactions
• Short
• Specific
• Actions vetted by partners
• NO navel gazing
©2014 The BTI Consulting Group  Wellesley, MA 02481  Tel: +1 617 439 0333  www.bticonsulting.com
Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group
Compelling Research. Compelling Results.
Page 19

21. Superior Client Service Initiatives:
Garnering Buy-in
Superior Client Service Initiatives
 Use client feedback scores as evidence of need to outperform
competitors in your client base
›
Overall performance score
›
Scores on BTI 17 Activities
›
Scores compared to other law firm serving your clients
›
Metrics to put a stake in the ground
›
Probe as to “why” to help partners to understand
©2014 The BTI Consulting Group  Wellesley, MA 02481  Tel: +1 617 439 0333  www.bticonsulting.com
Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group
Compelling Research. Compelling Results.
Page 20

22. Number One Obstacle According to Law Firms:
Resistance
Getting Support for Client Feedback
 Create a sense of urgency, need and value
 Include in: strategic plan, partner annual goals, practice-specific goals
 Gain feedback from high-profile, large-scale clients first
 Ask partners which questions they think make the most sense to ask
›
Provide sample survey documents and questions
 Embrace friendly and influential partners who support client feedback
›
Provide results
 Invite partners to present changes resulting from client feedback at
every firm-sponsored meeting
›
Leadership follows up on results
The average Am Law 200 firm has over 11% of client billings at risk in their
largest clients
©2014 The BTI Consulting Group  Wellesley, MA 02481  Tel: +1 617 439 0333  www.bticonsulting.com
Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group
Compelling Research. Compelling Results.
Page 21

23. 5 Rules to Maximize Opportunity in a Slow-Growth Economy
Rules for Market Share Gains
1. Deliver superior (not good) client service

70% of Leaders deliver superior client service
2. Assign a senior partner to be accountable for client service
3. Don’t dabble—commit substantial resources on a systematic basis
4. Treat your 50 largest clients as 50 markets of one

Each client is an unique market opportunity

Each opportunity requires a custom approach for success
5. Act now—we are only at the beginning of the maturation of the
legal industry
©2014 The BTI Consulting Group  Wellesley, MA 02481  Tel: +1 617 439 0333  www.bticonsulting.com
Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group
Compelling Research. Compelling Results.
Page 22

24. Steps to Take Tomorrow
Immediate Impact Activities
 Form a triage team with your clients to jointly assess new matters
and needs as they come in
›
Once a month or biweekly, depending on client
 Offer to sit on clients’ new product development committees
›
Help spot IP opportunities; both strategic and defensive
 Swarm clients with online value-added tools:
›
Checklists
›
Guidelines
›
Self assessments
©2014 The BTI Consulting Group  Wellesley, MA 02481  Tel: +1 617 439 0333  www.bticonsulting.com
Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group
Compelling Research. Compelling Results.
Page 23

25. What’s New in BTI Research and Reports
Upcoming Reports
 The BTI Client Service All-Stars 2014
 New! The BTI IP and IP Litigation Outlook
 New! BTI’s Rate Study
 The BTI Brand Elite 2014
 BTI’s How Clients Hire: The Role of Legal Directories
and Online Lawyer Profiles
Just-Released Research
 The BTI Client Service A-Team 2014
 BTI Premium Practices Forecast
 BTI’s Strategic Review and Outlook
 The BTI Litigation Outlook
©2014 The BTI Consulting Group  Wellesley, MA 02481  Tel: +1 617 439 0333  www.bticonsulting.com
Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group
Compelling Research. Compelling Results.
Page 24

26. BTI’s Key Services
We can help you with everything
from high-impact client feedback
to full-scale client service initiatives
Contact:
Michael B. Rynowecer
mrynowecer@bticonsulting.com
Jennifer Petrone Dezso
jpetrone@bticonsulting.com
©2014 The BTI Consulting Group  Wellesley, MA 02481  Tel: +1 617 439 0333  www.bticonsulting.com
Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group
Compelling Research. Compelling Results.
Page 25

27. Follow BTI
LMA Annual Conference 2014
Clientelligence: The Cold, Hard Facts on What Your
Clients Really Want from Your Firm
Thursday, April 3, 2014
4:15 – 5:15 PM
Orlando, FL
Twitter: @bticonsulting and @themadclientist
Follow BTI Consulting on LinkedIn
Like BTI Consulting on Facebook
©2014 The BTI Consulting Group  Wellesley, MA 02481  Tel: +1 617 439 0333  www.bticonsulting.com
Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group
Compelling Research. Compelling Results.
Page 26

28. Thank You
www.TheMadClientist.com
To find out how BTI can help you with your client research or strategic
planning, contact Michael B. Rynowecer or Jennifer Petrone Dezso
Michael B. Rynowecer
mrynowecer@bticonsulting.com
+1 508.651.5048
©2014 The BTI Consulting Group  Wellesley, MA 02481  Tel: +1 617 439 0333  www.bticonsulting.com
Questions? Call Michael B. Rynowecer, President, The BTI Consulting Group
Jennifer Petrone Dezso
jpetrone@bticonsulting.com
+1 512.243.8037
Compelling Research. Compelling Results.
Page 27

29. BTI Market Outlook and
Client Service Review 2014
Webinar
January 16, 2014
Prepared by:
The BTI Consulting Group
396 Washington Street, Suite 314
Wellesley, MA 02481
Tel: +1 617 439 0333
Fax: +1 617 439 9174
www.bticonsulting.com
info@bticonsulting.com
©2014 The BTI Consulting Group  Wellesley, MA 02481  Tel: +1 617 439 0333  www.bticonsulting.com