Chief legal officers at corporations across the country said the economic downturn has had a significant impact on their departments and responsibilities, according to the ninth annual survey by the Association of Corporate Counsel, based in D.C.
More than half the respondents said they’re feeling the pinch in relation to budgetary constraints, forcing them to evaluate where cuts must occur without exposing the company to undue risk.
The survey polled 5,355 of its members holding the title of chief legal officer or general counsel. It received 619 responses. More than half of the respondents work at companies that employ 1,000 or less and whose annual revenue is under $500 million.
ACC President Frederick J. Krebs said the role of the CLO is more important than ever.
“The economic landscape has changed the way CLOs must manage their legal departments in order to respond to increasing demands,” he said in a statement.
Almost 80 percent of respondents have implemented practices to create cost/time efficiencies and/or generate value for their department. Nearly half have increased the use of paralegals and support staff, and 44 percent said they use contact management systems.
Just one in four expect to hire over the next 12 months. Two-fifths of those said they’ll seek generalist or specialist lawyers or senior level managers.
Transactional work is the single area in which respondents expect to spend the most time in the coming months.
The majority of respondents believe there is a disconnect between the current billable-house model used by law firms and the service or value-focus model favored by corporate law departments. Many pointed to alternative fee arrangements as the best way for outside counsel to improve relationships.
