Five tips to boost your client relationships.

• Author: Rynowecer, Michael B.
• Position: LIFEBOATS IN THE ECONOMIC STORM - Report

Corporate counsel are redefining risk as you read this. We watched the spectacular f all of bedrock financial institutions and global companies. As the dust settles, corporate boards moved from "Can it happen to us?" to "Don't let it happen to us" and "Be prepared for when it does. "The net impact is risk avoidance.

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Corporate boards, project managers, CFOs and risk managers are adamant in believing cost control equals risk control. In a world dominated by risk avoidance, it is not surprising to see the outcry for cost control. In BTI's recent research, corporate counsel share that their top goal--by a factor of four--is to control cost. Accountability drives control. Control reduces risk.

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Corporate counsel can no longer work with law firms remaining unaccountable for a budget. It's the risk avoidance as much as the money. And top management believes they are inseparable. The real message management is sending: Embrace cost control as a risk management tool.

BTI research suggests 66 law firms are benefiting from these seemingly ominous market trends. While many law firms grapple with the sudden shifts in client spending patterns, a select group anticipated the move to risk avoidance and cutbacks. These savvy 66 developed tools to help clients cut costs.

In addition to slashing expenses, the average company cut nine law firms--nearly 17 percent--from its current roster of legal service providers in 2009. This convergence is expected to last through 2012 as corporate counsel anticipate making additional cuts of up to 26 percent. Unlike convergence of prior years, corporate counsel report they lack the time and inclination to deal with law firms not prepared to meet the new cost and accountability demands with enthusiasm. This includes the law firms asking for a guarantee of hours for their discounts.

Firms looking to stay on their clients' current rosters should work with corporate counsel to reduce costs and avoid risk. These firms can benefit from four of the more potent and proven tools to help clients. These include:

[1] Budgeting

* Provide clients with an expected budget upfront;

* Inform clients of changes to budgets before they receive the bill; and

* Review large invoices in draft form with clients--no surprises.

[2] Offering flexible staffing options

* Initiate dialogue around use of associates;

* Discuss performance during the case process; and

* Offer to revisit staffing on current...