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ACLA/CLANZ Legal Department Benchmarking Report

 

 

 

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SUPPLEMENTARY MATERIALS (PDF)

 

PRESENTATION SLIDES (4MB)

Ron Pol’s presentations to general counsel, updated with AU & NZ figures. Not a summary of the report. Instead, a sharp focus on practical applications of selected findings; to add immediate value for strategic and operational performance.

 

PART 5: LEGAL SPEND

34 – Business drivers affecting legal department growth (respondent comments)

 

PART 7: EXTERNAL LEGAL PROVIDERS

69 – Litigation management challenges (additional data tables)
72 – Terminating law firm relationships (additional data tables)

 

PART 8: IMPROVING LAW FIRM RELATIONSHIPS

80 – The ‘A Team’ – great lawyers (exceptional lawyers listed)
81 – Helping law firms deliver value (respondent comments)

 

ARTICLES

 

Lifting the General Counsel brand Lessons from the CFO. Lawyers adding strategic value can take the test to see how they help advance the GC brand.
Time for General Counsel to stop talking and take action - Selected findings and action points from the Benchmarking Report
How many lawyers are too many? – using metrics to find the 'right' size legal department
Ready, Fire, Aim - Beyond great strategy; the importance of rapid implementation
Other articles about the Legal Department Benchmarking Report
Other articles about the legal function

 

RETURN ON INVESTMENT (ROI) - ONLINE CALCULATOR

 Online ROI calculator – Already know the amount and percentage of savings achieved as a result of using strategies drawn from the Benchmarking Report resources? Want to quickly identify in less than 30 seconds your return on investment?

Help illustrate that the legal team is not only focused on law, but also your organisation’s business of law.

 

FIGURES (JPG)

 

SECTION 3: RESPONDENTS

2.1 – Public/private sector
2.2 – Public/private sector – Australia
2.3 – Public/private sector – New Zealand
4.1 – Revenue/turnover – All respondents – National
4.2 – Revenue/turnover – All respondents – Global
4.3 – Revenue/turnover – Australia – National
4.4 – Revenue/turnover – Australia – Global
4.5 – Revenue/turnover – New Zealand – National
4.6 – Revenue/turnover – New Zealand – Global
5.1 – FTE employees – All respondents – National
5.2 – FTE employees – All respondents – Global
5.3 – FTE employees – Australia – National
5.4 – FTE employees – New Zealand – National
7.1 – Head office – Australia – Public/private
7.2 – Head office – New Zealand – Public/private

 

SECTION 4: ROLES AND RESPONSIBILITIES

9.1 – Legal department size – Australia
9.2 – Legal department size – New Zealand
10.1 – Relative legal department size
11.1 – CLO reporting – Australia/New Zealand
11.2 – CLO reporting – Australia – Public/private
11.3 – CLO reporting – New Zealand – Public/private
12.1 – CLO management responsibilities
14.1 – Chief legal officer title
17.1 – Reporting structures – Australia – Public/private
17.2 – Reporting structures – New Zealand – Public/private
18.1 – Geographic structures – Australia – Public/private
18.2 – Geographic structures – New Zealand – Public/private
19.1 – Legal department structures matrix – Australia/New Zealand
22.1 – Lawyers’ alignment by work type/business unit – Australia
22.2 – Lawyers’ alignment by work type/business unit – New Zealand
23.1 – Hours worked – Australia – Public/private
23.2 – Hours worked – New Zealand – Public/private

 

SECTION 5: LEGAL SPEND

25.1 – Direct internal legal costs – Australia
25.2 – Direct internal legal costs – New Zealand
27.1 – Time recording – Australia/New Zealand and Public/private
27.2 – Charge-backs of internal legal costs – Australia/New Zealand
27.3 – Charge-backs of internal legal costs – Public/private
27.4 – External charge-backs – Australia/New Zealand
27.5 – External charge-backs – Public/private
28.1 – External legal costs – Australia
28.2 – External legal costs – New Zealand
31.1 – Total legal spend – Australia
31.2 – Total legal spend – New Zealand
32.1 – Relative total legal spend
33.1 – Legal department growth – Australia/New Zealand
33.2 – Legal department growth – Public/private

 

SECTION 6: PERFORMANCE MANAGEMENT

36.1 – Most pressing issue
37.1 – Complex work – Australia
37.2 – Complex work – New Zealand
38.1 – Routine work – Australia
38.2 – Routine work – New Zealand
39.1 – Legal department technologies – Australia/New Zealand
39.2 – Legal department technologies – Public/private
40.1 – Top 10 monitoring tools
45.1 – Pressure to reduce costs – Legal department
45.2 – Pressure to reduce costs – Law firms
46.1 – Cost reductions achieved – Australia and New Zealand

 

SECTION 7: EXTERNAL LEGAL PROVIDERS

49.1 – Law firms used – Australia/ New Zealand
49.2 – Law firms used – Public/private
50.1 – Legal spend concentration – Australia/ New Zealand
50.2 – Legal spend concentration – Public/private
50.3 – Legal spend concentration – Large/small
51.1 – Law firm arrangements – Australia/New Zealand
51.2 – Law firm arrangements – Public/private
52.1 – Selecting panel firms – Australia/New Zealand
52.2 – Selecting panel firms – Public/private
53.1 – Law firm change – Specialist/boutique firms
53.2 – Law firm change – National full service firms
53.3 – Law firm change – Local/regional full service firms
53.4 – Law firm change – Overseas law firms
54.1 – Service criteria
54.2 – Selecting firms – Top 7 criteria
55.1 – Lead law firm competitors – Australia/New Zealand
55.2 – Lead law firm competitors – Public/private
55.3 – Lead law firm competitors – Large/small legal departments
55.4 – Lead law firm competitors – Large corporates ($1b+ revenues)
56.1 – Top 16 terms of engagement – Australia
56.2 – Top 16 terms of engagement – New Zealand
56.3 – Top 16 terms of engagement – Public sector
56.4 – Top 16 terms of engagement – Private sector
59.1 – Matter budgets – Australia/New Zealand
59.2 – Matter budgets – Public/private
60.1 – Budget compliance – Australia/New Zealand
60.2 – Budget compliance – Public/private
61.1 – Rebates – Australia/New Zealand
61.2 – Rebates – Public/private sector
61.3 – Rebates – Large/small legal departments
63.1 – Standard hourly rates – Australia/New Zealand
63.2 – Discounted hourly rates – Australia/New Zealand
63.3 – Fixed fees per matter/transaction – Australia/New Zealand
64.1 – Fixed fees per matter/transaction
64.2 – Fixed fees for stages of matters/transactions
64.3 – Hourly rates with value component
64.4 – Retainers
64.5 – Value billing
64.6 – Contingency fees
65.1 – Expected non-hourly rates
66.1 – Barriers to alternative fees – Australia/New Zealand
68.1 – Generate early resolution
68.2 – Scope matters early
68.3 – Communicate changes
68.4 – Project management methods
68.5 – Real time transparency
70.1 – Reviewing law firms
71.1 – Barriers to changing firms – Australia/New Zealand
71.2 – Barriers to changing firms – Public/private sector
71.3 – Barriers to changing firms – Large/small legal departments and large corporates

 

SECTION 8: IMPROVING LAW FIRM RELATIONSHIPS

73.1 – Most impressive things would like to see consistently from law firms
74.1 – Improve working relationships – Australia/New Zealand
74.2 – Improve working relationships – Public/private
75.1 – Law firm pressures – Improve value and predictability
75.2 – Law firm pressures – Improve efficiencies in staffing legal work
75.3 – Law firm pressures – Focus more on value than time alone
75.4 – Law firm pressures – Alternative fee arrangements
75.5 – Law firm pressures – Reduce proposed rate increases
75.6 – Law firm pressures – Reduce hourly rates
75.7 – Law firm pressures – Reduce third party costs
76.1 – Improving RFP responses
77.1 – Firms serious about change – Australia/New Zealand

 

TABLES (JPG)

SECTION 3: RESPONDENTS

2.1 – Public/private sector divisions
3.1 – Industry groupings
4.1 – Revenue/turnover
5.1 – FTE employees
5.2 – FTE employees – Australia/New Zealand

 

SECTION 4: ROLES AND RESPONSIBILITIES

9.1 – Legal department size
10.1 – Relative legal department size – Industry groupings
10.2 – Relative legal department size – Industries
13.1 – Legal department organisation levels
15.1 – Top 10 job titles reporting to chief legal officer
16.1 – Legal department non-fulltime lawyers
20.1 – Legal department seniority – Australia
20.2 – Legal department seniority – New Zealand
21.1 – Legal department specialisation – Australia
21.2 – Legal department specialisation – New Zealand
22.1 – Lawyers’ alignment by work type/business unit – Australia
22.2 – Lawyers’ alignment by work type/business unit – New Zealand
22.3 – Degree of alignment by work type/business unit – Australia
22.4 – Degree of alignment by work type/business unit – New Zealand

 

SECTION 5: LEGAL SPEND

25.1 – Direct internal legal costs – Australia – Public/private
25.2 – Direct internal legal costs – New Zealand – Public/private
26.1 – Indirect internal legal costs – Australia – Public/private
26.2 – Indirect internal legal costs – New Zealand – Public/private
28.1 – External legal costs – Australia – Public/private
28.2 – External legal costs – New Zealand – Public/private
30.1 – External legal fees specialisation – Australia
30.2 – External legal fees specialisation – New Zealand
31.1 – Total legal spend – Australia – Public/private
31.2 – Total legal spend – New Zealand – Public/private

 

SECTION 6: PERFORMANCE MANAGEMENT

36.1 – The 6 most pressing issues
37.1 – Complex work outsourced/insourced – Australia
37.2 – Complex work outsourced/insourced – New Zealand
38.1 – Routine work outsourced/insourced – Australia
38.2 – Routine work outsourced/insourced – New Zealand
40.1 – Secondary monitoring practices
42.1 – Internal costs per lawyer – Australia
42.2 – Internal costs per lawyer – New Zealand
43.1 – Fully loaded hourly in-house counsel cost (worked hours) – Australia
43.2 – Fully loaded hourly in-house counsel cost (worked hours)
          – New Zealand

43.3 – Fully loaded hourly in-house counsel cost (chargeable hours) – Australia
43.4 – Fully loaded hourly in-house counsel cost (chargeable hours) – New Zealand
44.1 – Lawyers per 1000 FTE employees – Australia
44.2 – Lawyers per 1000 FTE employees – New Zealand
44.3 – FTE employees per FTE lawyer – Australia
44.4 – FTE employees per FTE lawyer – New Zealand
44.5 – Lawyers per $billion of revenue/turnover
44.6 – Total legal costs as percentage of annual revenue
44.7 – Total legal costs per $billion of revenue/turnover
44.8 – Total legal costs per 1000 FTE employees
44.9 – Ratio of total internal legal costs – Australia
44.10 – Ratio of total internal legal costs – New Zealand

 

SECTION 7: EXTERNAL LEGAL PROVIDERS

53.1 – Law firm change
53.2 – Law firm change – Australia/New Zealand
53.3 – Law firm change – Public/private sectors
54.1 – Service selection criteria
54.2 – Relationship criteria
57.1 – Value add benefits – Australia/New Zealand
57.2 – Value add benefits – Public/private sector
57.3 – Value add benefits – Large/small legal department
58.1 – Top 12 methods for controlling external costs – Australia/New Zealand
58.2 – Top 12 methods for controlling external costs – Public/private sector
58.3 – Top 12 methods for controlling external costs – Large/small legal departments
62.1 – Hourly billing – Australia/New Zealand
62.2 – Hourly billing – Public/private
62.3 – Hourly billing – Large/small legal departments
63.1 – Alternative fee arrangements – Australia
63.2 – Alternative fee arrangements – New Zealand
63.3 – Alternative fee arrangements – Public sector
63.4 – Alternative fee arrangements – Private sector
66.1 – Barriers to alternative fee arrangements
68.1 – Law firm transaction management – New Zealand
68.2 – Law firm transaction management – Australia
68.3 – Law firm transaction management – Public sector
68.4 – Law firm transaction management – Private sector
69.1 – Litigation management challenges
72.1 – Terminating law firms

 

SECTION 8: IMPROVING LAW FIRM RELATIONSHIPS

73.1 – Most impressive things would like to see consistently from law firms
78.1 – Value challenge
78.2 – Value challenge – Australia
78.3 – Value challenge – New Zealand
78.4 – Value challenge – Public sector
78.5 – Value challenge – Private sector



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