Tcl - Competitive Intelligence: an Effective Tool for Law Firms - April 2007 - Law Practice Management

• Publication year: 2007
• Pages: 51
• Citation: Vol. 36 No. 4 Pg. 51

36 Colo.Law. 51 Colorado Lawyer 2007.

2007, April, Pg. 51. TCL - Competitive Intelligence: An Effective Tool for Law Firms - April 2007 - Law Practice Management

The Colorado Lawyer
April 2007
Vol. 36, No. 4 [Page 51]

Departments
Law Practice Management

Competitive Intelligence: An Effective Tool for Law Firms

by Wanda J. McDavid

Wanda J. McDavid is the Vice-President and Director of Business Development for Access/Information, Inc. - (303) 778-7677, wanda.mcdavid@access-information.com. She is a member of the Colorado Association of Law Libraries and the Special Libraries Association.

Law Practice Management articles print six times per year. This department provides information on law practice management topics to assist lawyers in managing their law practices. The members of the Mile High Chapter of the Association of Legal Administrators who review and schedule article submissions for publication are: Gail Kristen Berg - Stern Elkind & Curray, (303) 692-0111 kristen.berg@secimmigration.com; and Cindy Muniz - Lowe, Fell & Skogg, LLC, (720) 932-2627 cmuniz@lfslaw.com.

Competitive intelligence (CI) is defined as "the practice of examining the external competitive environment including direct rivals, customers, suppliers, economic/regulatory issues and more, to support the development of more resilient, robust strategies and tactics."(fn1) According to the Society of Competitive Intelligence Professionals (SCIP), the CI process involves gathering, analyzing, and managing information about the external business environment.(fn2) It should be pointed out that other terms sometimes are used to describe this process; for example, CI might be referred to as "strategic information," "competitor analysis," or "market intelligence."

Many organizations (and some law firms) have a long track record of using CI to monitor industy trends, understand their competitors, and develop informed business strategies. However, only recently has the legal industry as a whole developed an interest in CI. Numerous market trends have led to growing interest in competitive intelligence. Trends that law firms specifically are dealing with include: increased competition in the legal field; a greater willingness from clients to shift allegiances based on service, areas of expertise, and technological advances; a growing number of law firm mergers; and a reduction in the number of law firms companies are hiring.(fn3)

Law firm managers and marketers interested in developing a CI plan for their firm should be aware that the CI process is complex and firm-specific. Each firm's CI plan will be unique and should be based on the distinct needs of the firm. This article is intended to help law firm managers and marketers become familiar with the overall CI process. It includes discussion of the legal and ethical considerations of CI; lists key elements of a CI plan; and provides information on conducting CI research on clients and competitors, including resources available for research. It also discusses problems managers and marketers might face at the onset of the CI process, as well as where they can find help in developing a CI strategy for their firm.

Ethical and Legal Issues

CI is an ethical and legal business practice. It is not industrial espionage, and it does not involve pretexting (gathering information under false pretenses).(fn4) When gathering information about competitors, organizations must follow established laws and ethics. The SCIP has developed the following Code of Ethics for individuals engaged in the CI process:

to continually strive to increase the recognition and respect of the profession

to comply with all applicable laws, domestic and international

to accurately disclose all relevant information, including one's identity and organization, prior to all...