22% of clients are disrupting the market right now. These are the new GCs. Half of these have been in place for less than 12 months. Another half have been in place 23 months—just enough to get their sea legs. We see 2 big implications for law firms:
This is only the beginning of a trend. The growth rate in retiring baby boomers will increase before it drops—expect a steady stream of new GCs. Plan ahead and develop a standard set of protocols to welcome all new GCs—and build yourself some serious relationships with this untapped source of new business.
Almost every new GC puts out an RFP for legal services somewhere between 18 and 24 months into their tenure. Take control and offer to help write the RFP. Avoid the RFP by introducing yourself and befriending the new GC early on. Help with onboarding and start the conversation about complexity.
Here is what these new GCs are thinking and facing:
Starting When Risk is the Highest it’s Ever Been
The new GCs entire tenure started as the surge in risk and uncertainty hit the market. This is their version of normal. They look at life solely through a high-risk filter—quickly assessing situations, comfortable with intuition combined with data, and are looking for someone to share opinions with. They know their success demands they make decisions and make them quickly.
Comfortable with Complexity
The new GCs dive into complexity head first. They want to sort it out into its component parts and solve the core issues. They want outside counsel who is comfortable dealing with complexity and unequivocal in their approach—and advice.
Total Cost is More Important Than Hourly Cost
New GCs look at the big picture when it comes to cost. Hourly rates don’t mean low cost. These new GCs figure out which firms will deliver and what the total budget will be—the firm with the lowest hourly cost rarely offers the lowest total cost.
New GCs know they are in the best position to spot redundancy, overlapping communications, and processes where their useful life is over but still in practice. They are diving in and making changes in the work process and communications with one goal—streamline. This ability to improve efficiency is unique to new GCs.
Double Whammy—an Acquired Company
A number of new GCs are stepping into merged companies who just made acquisitions. This dual challenge of being new to 2 companies brings out the best in these new GCs as they focus on integrating people and systems—on top of sorting out risks and legal issues.
You Can’t Get Me If You Don’t Talk to Me
New GCs tell BTI they are downright shocked at how few law firms reach out to them when they initially take the reins. These new GCs have their own agendas. Any law firm who fails to reach out is unintentionally telling new GCs they don’t want to get to know them.
A few law firms step up and not only welcome and say hello to new GCs—they also work to provide a successful onboarding experience. The firms share current priorities, history, back story, and offer counsel on how to be successful. These partners are cherished.
BTI’s exclusive research shows the number of new GCs has doubled from 11% in 2014. As we discuss at the beginning of this post—this trend is on the rise. Use it to your advantage.