BTI Litigation Outlook 2018 Executive Summary

©2017 The BTI Consulting Group, Inc. All rights reserved.

2018Compelling Research. Compelling Results.

BTI Litigation OutlookChanges, Trends and Opportunities for Law FirmsChanges, Trends and Opportunities for Law Firms

BTI Litigation Outlook 2018Executive Summary

©2017 The BTI Consulting Group, Inc. All rights reserved. +1.617.439.0333 www.bticonsulting.com BTI Litigation Outlook 2018:

Changes, Trends and Opportunities for Law Firms

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Litigation Outlook 2018: Spending—and Settlement Rates—Surge

After 5 years of spending declines, the litigation market reverses course. Growth for law firms remains tricky as clients resolve matters at the highest levels to date and cut 5 law firms from their litigation rosters. Winning new work in today’s litigation market requires a deep understanding of how clients’ demands and expectations are changing so you can position your firm in the areas with the most opportunity. BTI’s 7th annual series on trends in the litigation market uncovers how client behavior—and spending—is changing in 2018. BTI’s Litigation Outlook will help you identify clients’ newest needs and walk you through how to provide solutions before your competitors realize the same opportunities exist.

6 Trends Shaping Litigation in 2018 | 2 Litigation Forecast 2018 | 9 Industry Assessment for 2018 | 28 How Clients Use Law Firms for Litigation | 31 Litigation Powerhouses: Law Firms Leading the Litigation Market | 33 The BTI Fearsome Five | 52 About BTI | 55 Methodology | 64



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6 Trends Shaping Litigation in 2018

1. Large Companies Are Adding $1 Billion in Litigation Spending to Their Legal Budgets

2. Top CLOs Expect a 10% Increase in Litigation Matters They Face

3. Settlements Reach a Record High

4. Complex Matters to Remain at Peak Levels

5. Product Liability and Commercial Litigation Will See Especially Strong Increased Spending

6. Clients Cut Litigation Law Firm Rosters by Just Over 20%

http://www.bticonsulting.com/litigation-outlook-reports-highlights/



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Litigation Forecast 2018 OPPORTUNITY ROADMAP



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How to Use BTI’s Litigation Forecast 2018

Identify Growing (and Shrinking) Market Segments Vertical axis measures 2018 growth potential

• Practices above the projected average growth line will grow faster than the overall market

• Practices below the growth line are growing slower than the market

Pinpoint Premium Rate Opportunities Horizontal axis identifies relative average rates

• Practices on the right side of the chart garner higher average hourly rates

• Practices on the left side of the chart experience greater rate pressure

Understand Extent of Opportunities Bubble size measures market size

• The size of each practice bubble measures the total corporate counsel spending in the litigation segment

= $1 Billion Market Opportunity

PROJECTED GROWTH LINE

Higher Growth Lower Rates

Higher Growth Higher Rates

Lower Growth Higher Rates

Lower Growth Lower Rates



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RATE PRESSURE

= $1 Billion Market Opportunity

PREMIUM RATES MARKET RATES

GR

OW

TH P

RO

SPEC

TS

HIGHER GROWTH

NEGATIVE GROWTH

TACTICAL PRACTICES PRIORITY PRACTICES

OPPORTUNISTIC PRACTICES CORNERSTONE PRACTICES

BTI’s Litigation Forecast 2018




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Industry Assessment for 2018 BTI OPPORTUNITY ZONE



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How to Use BTI’s Opportunity Zone Chart

BTI Hot Opportunities The intersection of industries and litigation segments

tagged for prime growth and higher-than-market rates

Market Neutral The intersection of industries and litigation segments

expected to see average or neutral growth

Pressure Points The intersection of industries and litigation segments expected to experience price sensitivity or pushback

The BTI Opportunity Zone chart is a comprehensive look at growth prospects by cross section of industry and litigation segments. This chart is your roadmap for understanding how different client organizations will react to service offerings and rates in the upcoming year. Use this guide to better leverage resources, assemble right-sized pricing structures, and target hot opportunities.



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BTI Opportunity Zones 2018: Opportunities by Industry and Litigation Segment

IP Litigation Class Actions Securities and

Finance Litigation Employment

Litigation Product Liability

Litigation Commercial

Litigation

Banking

Chemicals

Consumer Goods

Energy

Financial Services

Food

Health Care

High Tech

Insurance

Manufacturing

Pharmaceuticals

Professional Services

Retail Trade

Telecom

Transportation

Utilities

Wholesale Trade

BTI Hot Opportunity: Higher Need, Higher Rates

Pressure Point: Pressure on Rates

Market Neutral




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How Clients Use Law Firms for Litigation TRENDS AND LAW FIRM LEADERS



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Litigation Powerhouses: Law Firms Leading the Litigation Market

As litigation (of all types) continues to become more complex, corporate counsel turn to law firms they know and trust—and can sell to their leadership with little debate. The firms on the following pages are the ones corporate counsel tell us they are currently turning to for their most pressing litigation needs. If your firm is among these elite, and stands out among the 650 firms serving large clients, congratulations are in order—but BTI urges you to quickly plan for how you intend to protect this position from those looking to unseat you in the upcoming year.

IP Litigation | 34 Class Actions | 36 Securities and Finance Litigation | 38 Complex Employment Litigation | 40 Everyday Employment Litigation | 42 Product Liability Litigation | 45 Complex Commercial Litigation | 47 Everyday Commercial Litigation | 49 The BTI Fearsome Five | 52




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About The BTI Consulting Group HOW WE CAN HELP YOUR FIRM



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Who We Are

For details on how to FUEL PROFITS through

Clientelligence® see page 15

BTI conducts more independent and custom-commissioned research on how clients measure client service than virtually anyone.

Our goal is to help our clients improve client focus, improve performance, and grow.

We benchmark how Fortune 1000 companies buy, how professional services firms sell, and how to manage service provider performance. Through more than 14,000 independent interviews with C-level executives and systematic analysis, BTI has helped professionals boost client service for over 25 years.

BTI examines the market from the client’s perspective.

Our proprietary methods include open-ended interviews with high-level executives and decision makers, carried out by highly trained senior interviewers. These are not to be confused with check-off-the-box surveys. Our reports and findings are based on what your clients and users say: We don’t put words in their mouths and we don’t look to third parties to report what your clients are saying.

BTI is the leading provider of strategic, client-based research to the legal community.

BTI has helped more than 250 law firms and professional services firms improve client service through compelling research and advice. We conduct the only continuous benchmarking market study in the legal services industry, now in its 18th year.

Clients use BTI’s insightful, custom client feedback surveys to drive change, create urgency, and substantially boost performance.

For details on how to DRIVE GROWTH with

Client Feedback see page 13



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Please contact Michael B. Rynowecer at +1 617 439 0333 or [email protected] to learn more about BTI’s custom research & services.

Only BTI can help you immediately drive growth, profits, and increase retention through high-impact client feedback. BTI research shows strategic use of in-depth client feedback translates into:

• 33% higher profits • 19.5% rate premiums across all staffing levels • 2x the fees from a single client • 33% higher client retention

BTI works directly with you to design a custom client feedback program to drive new business. Start now.

Drive Profits and Growth

Conduct Your Client Feedback with BTI

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These insights from BTI Litigation Outlook are the first step in learning how to profit from the changes in the litigation market. Now what? BTI’s customized client feedback programs give you an unparalleled opportunity to ask the questions no one else does to get the answers no one else knows—directly from your clients. With custom client feedback you can:

Learn Precisely What Clients Need from Your Litigation Department

Drive Growth with Each Client ● Gain Access to Higher-Rate Work ● Discover a Path to Dramatically More Work

Enjoy Higher Rates ● Improve Client Retention BTI has helped professional services firms boost client service—for 28 years. BTI is the leading provider of strategic research to the legal community—performing more client and market research about law firms than virtually anyone. BTI has helped more than 250 law firms and professional services firms improve client service through compelling research and advice. We conduct the only continuous benchmarking market study in the legal services industry, now in its 18th year, offering you an unmatched window into the market and your clients.

Please contact Michael B. Rynowecer, BTI President, at +1 617.439.0333 or at [email protected] with your questions, thoughts, and comments,

or to learn more about BTI’s custom client research and services.

BTI Jumpstarts Your Firm’s Litigation Results

mailto:[email protected]?subject=BTI Legal Spending and Staffing Benchmarks 2015



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Clientelligence

IMMEDIATELY FUEL GROWTH AND PROFITS

Pinpoint your strengths—and weaknesses— in the activities proven to drive growth

THE 17 ACTIVITIES DRIVING GROWTH

Quadrant I: Relationship Bliss 1. Commitment to help 2. Client focus 3. Understanding the client’s business 4. Providing value for the dollar

Quadrant II: Price of Admission 5. Legal skills 6. Quality 7. Meeting core scope 8. Keeping clients informed 9. Dealing with unexpected changes 10. Handling problems

Quadrant III: Relationship Builders

11. Breadth of services 12. Helping advise on business issues 13. Regional reputation 14. Unprompted communication 15. Bringing together resources

Quadrant IV: Business Magnets

16. Anticipating the client’s needs 17. Innovative approach

BTI’s more than 25 years of research pinpoint the 17 activities responsible for driving the absolute best client relationships. In essence, they are how clients define client service excellence and what clients expect out of the firms with whom they have the best relationships. The best-in-class performances in these activities are proven to drive superior financial performance. There’s only 1 way to determine if you are hitting the best-in-class threshold: Ask. Client feedback allows you to unequivocally pinpoint where you are excelling and where you need systematic improvements in your relationships. The best feedback initiatives not only assess how you and your firm perform, but also look at the performance of the competitors also serving your clients. At the end of the day, what does it matter if a client thinks you are doing great, if a competitor is doing better?

LEARN MORE ABOUT THE 17 ACTIVITIES AND

BTI’S BEST-SELLING BOOK: CLIENTELLIGENCE:

HOW SUPERIOR CLIENT RELATIONSHIPS

FUEL GROWTH AND PROFITS

www.bticonsulting.com/17

http://www.bticonsulting.com/17



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BUSINESS DEVELOPMENT

BTI looks at PERFORMANCE in new ways—driving adoption of new tactics and better results. Strategic Business Planning Client-focused Business Practices Custom Training

Please contact Michael B. Rynowecer at +1 617 439 0333 or [email protected] to learn more about BTI’s custom research & services.

MARKET ASSESSMENT

Establish a DIFFERENTIATED position—with less risk, lower costs, and a greater chance of success. Brand Health & Market Awareness Studies New Market Entry Assessments

STRATEGIC PLANNING

Assess your options to find the GROWTH best suited to your firm: from least risk to highest return and anything in between. Financial and Market Performance Competitive Analysis

CLIENT INSIGHT BRIEFINGS

Tailored to your firm and chock full of CLIENT-BASED insights, perspectives and facts, BTI briefings draw from our research and experience to help you boost client satisfaction, increase client retention, and improve your performance. We can design our briefing to include specific feedback on your firm. Offered both in person and via the web.

USE BTI’S SERVICES AND RESEARCH TO:

Drive new business immediately

Keep competitors out of your client base

Find your strengths…and weaknesses

Learn what clients really want from you

Additional Services to Help Our Clients BTI PROVIDES A BROAD RANGE OF SERVICES FOR OUR CLIENTS, INCLUDING:




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Train Attorneys • Guide Business Development • Inform Strategy • Calibrate Market Trends Against Firm Tactics

BTI Research and Publications ADDITIONAL DATA AND INSIGHTS

BTI Practice Outlook 2018 – to be released October 2017 BTI’s Practice Outlook outlines how clients are changing their spending and use of law firms—by practice—in 2018. Learn how to use the distinctive characteristics of 17 different practice areas to target the best opportunities for your firm and beat out competitors.

BTI Client Service A-Team 2018 – to be released November 2017 17 activities drive superior client relationships. 4 matter most. Discover how clients rate more than 300 law firms—by name—in these key activities, including Client Focus, Commitment to Help, Legal Skills, and Provides Value for the Dollar.

BTI Industry Power Rankings 2017 More than 950 top legal decision makers at the world’s leading organizations rank more than 500 law firms in 18 industries based on the strength of their client relationships.

BTI Client Service All-Stars 2017 319 attorneys step up to meet—and exceed—clients’ expectations and earn recognition, by name, from corporate counsel for delivering the absolute best client service.

You can order these and the full line-up of compelling BTI research and reports at www.bticonsulting.com.

http://www.bticonsulting.com/



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This copy of BTI Litigation Outlook 2018 is licensed to you for private, noncommercial use for internal, company purposes. No portion of this information may be copied or transmitted in any form, shape or manner without the prior written consent of The BTI Consulting Group, Inc., of Wellesley, MA. Any violation of this license may be punishable by applicable federal statutes and subject the user to additional and compensatory licensing fees. Copyright ©The BTI Consulting Group, Inc., 2017.

Address any questions to: The BTI Consulting Group, Inc. 396 Washington Street, Suite 314 Wellesley, MA 02481 +1 617 439 0333

Terms of Use



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Contact BTI

Questions? Research inquiries? Interested in becoming a BTI Client?

For more information on BTI’s research, seminars, training, or workshops, please call:

+1.617.439.0333

Email Michael B. Rynowecer, BTI President, directly at: [email protected]

Email Jennifer Dezso, BTI Principal, directly at: [email protected]

Reach BTI on the web at: www.bticonsulting.com

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Methodology INDEPENDENT, UNBIASED RESEARCH, BASED SOLELY ON CLIENT FEEDBACK



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Methodology and Approach INDEPENDENT, UNBIASED RESEARCH, BASED SOLELY ON CLIENT FEEDBACK

2018 Survey Participant Demographics

350 in-depth telephone interviews Interviews

Conducted between February 20 and July 3, 2017

Time Frame

Respondents receive a complimentary report of legal benchmarks and metrics

Incentives

OVERVIEW

$12.9 billion

$6.9 billion

Average Revenue Median Revenue

ORGANIZATIONS WITH HIGHEST LEVELS OF LEGAL SPENDING

REPRESENTATIVE

OF MORE THAN 15

INDUSTRY SEGMENTS

Banking

Chemicals

Consumer Goods

Energy

Financial Services

Food & Agriculture

Health Care

High Tech

Insurance

Investment Banks

Manufacturing

Pharmaceuticals

Professional Services

Retail Trade

Telecom

Transportation

Wholesale Trade

BTI Litigation Outlook 2018 is based solely on in-depth telephone interviews with leading legal decision makers. This comprehensive analysis trends data from more than 4,800 corporate counsel client interviews conducted over the span of 18 years. This research is independent and unbiased—no law firm or organization other than BTI sponsors this study. Each year, BTI reaches out to a strategically designed group of top legal decision makers at large organizations with $1 billion or more in revenue. We target the decision makers in the industries who spend the most on legal affairs as well as thought leaders and innovative Chief Legal Officers. Our survey also includes Chief Legal Operating Officers and business executives who hire and influence the selection and hiring of law firms. Participants are granted confidentiality at the individual and organizational level.

• Head of Litigation • Chief and Vice President of Litigation • General Counsel/Chief Legal Officer • Direct report to General Counsel

LEGAL DECISION MAKERS RESPONSIBLE FOR LITIGATION

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